Medallion Financial Corp. (MM) (NASDAQ:TAXI)
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5 Years : From Jun 2008 to Jun 2013
Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company
with a leading position servicing the taxicab industry and other niche
markets, announced that net increase in net assets resulting from
operations, was $109,000 or $0.01 per diluted common share in the 2010
first quarter, down from $1,889,000 or $0.11 per share in the 2009 first
quarter. Net investment income after income taxes was $2,232,000, or
$0.13 per share, the highest in five quarters, up from $1,909,000, or
$0.11 per share in the 2009 first quarter. Net investment income after
income taxes on a combined basis with Medallion Bank was $7,022,000 or
$0.40 per share in the quarter, up from $5,761,000 or $0.33 per share in
the year ago quarter.
Medallion’s on balance sheet taxicab medallion loan portfolio was
$311,000,000 at the end of the 2010 first quarter, down from
$400,000,000 at the end of the 2009 first quarter. The decrease
reflected our ability to participate a portion of these high-quality
loans to other financial institutions which desire safe and profitable
loan growth, enabling Medallion to earn a greater spread on the retained
business, while maintaining the customer relationship. In addition, we
continue to book loans into Medallion Bank, which is not consolidated.
Our on balance sheet commercial loan portfolio was $74,000,000 at
quarter end, down from $91,000,000.
Medallion’s managed taxicab medallion loan portfolio, which includes
Medallion Bank, our unconsolidated wholly-owned portfolio investment,
and loans serviced for or by third parties, was $589,000,000, up from
$585,000,000 a year ago. Our managed commercial loan portfolio was
$133,000,000, down from $166,000,000 a year ago. Medallion Bank’s
consumer loan portfolio decreased to $182,000,000, down from
$188,000,000 a year ago. Total assets under management decreased to
$1,027,000,000, down from $1,069,000,000 a year ago.
Andrew Murstein, President of Medallion stated, “We continue to be
pleased with our core operating earnings and our continuing trends of
increased spreads and low delinquency levels. During this quarter, New
York City and Chicago medallion prices also continued to rise. It is
great to have this rock solid foundation of medallion loans in our
portfolio which have never experienced a single loss on any loan we have
originated in the history of the company.
Larry Hall, CFO, stated, “The yield on the portfolio increased to 7.99%
in the 2010 first quarter, up from 7.58% in the 2009 first quarter. On a
combined basis with Medallion Bank, the yield was 8.81% in the quarter,
down from 8.90% a year ago, a very solid performance given the declining
interest rate environment over the last two years.
“Medallion Bank, which has a low cost of funds, continues to fund much
of our growth,” Mr. Hall said. Our weighted average cost of borrowed
funds dropped to 3.89% in the quarter, down from 4.16% a year ago.
Combined with Medallion Bank, it was 2.98%, compared to 4.06% a year
ago. As a result, our net interest margin was 4.95% in 2010, up from
4.30% in 2009. Our net interest margin including Medallion Bank
increased to 6.71%, up from 5.43%. These are the highest margins we have
ever had.
“Medallion Bank’s current average cost of funds on their CD’s at the end
of the month was 1.65%. However, new CD’s issued during the month
averaged 0.55%. Thus, as the CD’s mature and are replaced, their cost of
funds should continue to drop, and our spreads should increase,” Mr.
Hall added.
“Our loan quality, which is one of the hallmarks of Medallion, remains
strong. The unrealized depreciation that we recorded in connection with
our investment in the SPAC’s at the end of 2009 was reversed and
realized during the 2010 quarter, and unrealized depreciation was
increased on a single secured mezzanine commercial loan. Even with that,
on a combined basis, including Medallion Bank, delinquent medallion
loans 90 days or more past due were 0.4%, up from 0.3% last year.
Delinquent consumer loans were 0.7%, up from 0.6% a year ago. Delinquent
commercial loans were 4.6%, down from 9.2% a year ago. For the portfolio
as a whole, delinquent loans were 1.3%, down from 2.2% a year ago.”
The Company also announced that its Board of Directors declared a
dividend of $0.15 per share on its common stock for the 2010 first
quarter. The dividend is payable on May 28, 2010 to shareholders of
record on May 21, 2010. Since the Company’s initial public offering in
1996, the Company has paid out over $146,000,000 in dividends, or $9.40
per share.
Medallion Financial Corp. is a specialty finance company with a
leading position in the origination and servicing of loans financing the
purchase of taxicab medallions and related assets. The Company
also originates and services other commercial loans in targeted niche
industries and its wholly owned portfolio company Medallion Bank also
originates and services consumer loans. The Company and its
subsidiaries have lent over $3 billion.
Please note that this press release contains forward-looking
statements that involve risks and uncertainties relating to business
performance, cash flow, costs, sales, net investment income, earnings,
and growth. Medallion's actual results may differ significantly
from the results discussed in such forward-looking statements. Factors
that might cause such a difference include, but are not limited to,
those factors discussed under the heading "Risk Factors," in Medallion's
2009 Annual Report on Form 10-K.
MEDALLION FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Dollars in thousands, except per share data)
2010
2009
Total investment income
$9,230
$10,734
Total interest expense
3,514
4,645
Net interest income
5,716
6,089
Total noninterest income
796
699
Salaries and benefits
3,056
3,114
Professional fees
591
403
Occupancy expense
334
293
Other operating expenses
299
1,069
Total operating expenses
4,280
4,879
Net investment income before income taxes
2,232
1,909
Income tax (provision) benefit
-
-
Net investment income after income taxes
2,232
1,909
Net realized losses on investments
(8,222
)
(364
)
Net change in unrealized appreciation (depreciation) on investments
(1,244
)
867
Net change in unrealized appreciation (depreciation)
on Medallion Bank and other controlled subsidiaries
7,343
(523
)
Net unrealized appreciation on investments
6,099
344
Net realized/unrealized losses on investments
(2,123
)
(20
)
Net increase in net assets resulting from operations
$ 109
$ 1,889
Net investment income after income taxes per common share
Basic
$0.13
$0.11
Diluted
0.13
0.11
Net increase in net assets resulting from operations per common
share
Basic
$0.01
$0.11
Diluted
0.01
0.11
Dividends declared per share
$0.15
$0.19
Weighted average common shares outstanding
Basic
17,575,877
17,555,799
Diluted
17,714,766
17,649,531
MEDALLION FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
March 31, 2010
December 31, 2009
Assets
Medallion loans, at fair value
$311,496
$321,915
Commercial loans, at fair value
73,522
77,922
Investment in Medallion Bank and other controlled subsidiaries, at
fair value
72,598
72,279
Equity investments, at fair value
3,176
3,017
Investment securities, at fair value
-
-
Net investments
460,792
475,133
Cash and cash equivalents
19,840
33,401
Accrued interest receivable
1,693
1,661
Fixed assets, net
289
302
Goodwill, net
5,069
5,069
Other assets, net
40,643
39,608
Total assets
$528,326
$555,174
Liabilities
Accounts payable and accrued expenses
$ 5,789
$ 7,468
Accrued interest payable
886
2,207
Funds borrowed
361,146
382,522
Total liabilities
367,821
392,197
Commitments and contingencies
-
-
Total shareholders' equity (net assets)
160,505
162,977
Total liabilities and shareholders' equity
$528,326
$555,174
Number of common shares outstanding
17,575,877
17,575,877
Net asset value per share
$9.13
$9.27
Total managed loans
$ 904,958
$ 907,116
Total managed assets
1,026,536
1,039,840
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