Medallion Financial, a specialty finance company with a leading position servicing the taxicab industry, announced that net income, or net increase in net assets resulting from operations was $5.6 million in the 2011 fourth quarter, up from $4.7 million in the 2010 fourth quarter. For the 2011 full year, net increase in net assets resulting from operations was $19.2 million, up from $11.3 million in 2010.

The company noted that 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 costs as low as 0.4%. Medallion Financial’s net interest margin was 7.00% in the 2011 fourth quarter, up from 4.72% one year ago. The net interest margin for the year was 5.10%, up from 4.81% for the prior year. On a combined basis with Medallion Bank, the net interest margin increased to 6.68%, up from 6.59%, reflecting the reduced cost of funds at the bank. The net interest margins were the highest in the history of the Company.

Andrew Murstein, president of Medallion Financial said, “We are extremely pleased with the year’s operating results. We continued to see strong taxi medallion collateral values demonstrated through price appreciation in taxi medallions throughout 2011. Prices in 2011 for corporate medallions in New York City increased during the year and reached $1,000,000 per medallion. We continue to experience zero losses on any New York City taxi medallion loan we have originated.”

Medallion Financial’s on-balance sheet taxicab medallion loan portfolio was $307 million at year end, down from $323 million a year ago, primarily due to the funding of most new medallion loan originations in Medallion Bank, and the company’s sale of loan participations to third party banks.

Total managed medallion loans increased $29 million or 4% to $677 million at year end, up from $648 million a year ago.

To read the Medallion Financial news release click here.