Medallion Financial announced that earnings, or net increase in net assets resulting from operations was $6.6 million in the third quarter 2012, up $1.8 million or 37% from $4.8 million in the 2011 third quarter.

Medallion said its on-balance sheet taxicab medallion loan portfolio was $282 million at quarter end, down from $304 million a year ago, primarily due to the funding of most new medallion loan originations at Medallion Bank. Total managed medallion loans increased $12 million or 2% to $677 million at quarter end, up from $665 million a year ago.

Medallion said as the company 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 our least expensive source of funds.

Andrew Murstein, president of Medallion Financial, said, “We are extremely pleased with the quarter’s results. Even with our higher share count we still were able to increase our per share earnings due in part to continued strong loan demand and near record low delinquencies and losses. Over the last 10 years we have given our shareholders an average return of 18% per year including dividends. We are proud to have performed so well and we feel confident in our future.”

To read the Medallion Financial news release click here.