Medallion Financial’s wholly-owned portfolio company, Medallion Bank, reported net income of $7.6 million in Q4/14, up 72% compared to $4.4 million in Q4/13. In the 2014 full year, the bank earned $26.9 million compared to $17.4 million in the 2013 year, an increase of 55%.

The company said as it continues to use Medallion Bank as a primary funding source, it refers more loans to Medallion Bank for origination to take advantage of current short term borrowing rates which are at historically low levels, and which are the Company’s least expensive source of funds.

Medallion Financial’s net interest margin was 6.64% for the 2014 quarter, compared to 6.52% in the 2013 quarter, and was 6.54% in the full year, compared with 5.78% for 2013, primarily reflecting higher levels of interest, recoveries and dividends from Medallion Bank, as well as portfolio growth. On a combined basis with Medallion Bank, the net interest margin was 6.86% in the quarter and 7.49% in the full year, compared to 6.94% and 6.66% a year ago, reflecting the continued low cost of funds at the bank, and the bank’s higher-yielding loan portfolio. The increases in the net interest margins demonstrated the strong portfolio earning power of Medallion, and such margins remained at high levels compared to most other financial institutions.

Andrew Murstein, president of Medallion Financial stated, “We are extremely pleased with the 2014 fourth quarter and full year results. Since our IPO nearly 20 years ago, we have continued to diversify the company and find new niches where we strive to be the market leader. We have successfully done that, and in 2014 approximately 80% of our earnings came outside of the medallion lending area.”

“Our taxi medallion loans are also performing extremely well,” said Murstein. “We have always said we like to make two types of medallion loans, secure, and very secure. In 70 years we have never had a loss on a medallion loan that we have originated. Not only did we accomplish that feat again in 2014, but we ended the year with several thousand medallion loans on our books and not even one medallion loan was 90 days or more delinquent.”

To view the full Medallion Financial news release, click here.