Good morning, everyone, and thank you for participating in our 2021 first quarter earnings call.
Joining me on today's call is our CEO, Alvin Murstein; and our CFO, Larry Hall.
As the result show, we are pleased that we continued the momentum from a strong fourth quarter into the first quarter of 2021.
Let's quickly touch upon the Medallion segment, then I will give you some highlights on the consumer and commercial segments before turning the call over to Larry Hall.
As a result of several factors, including New York City slowly beginning to open up, we have begun experiencing an uptick in demand for medallions in New York City. The company left New York City Medallion values unchanged from the prior quarter, while slightly adjusting some smaller taxi market values downward. These non-cash valuation adjustments of several million dollars along with increased net interest loss partially led to a $1.9 million loss for the Medallion lending segment this quarter, which was significantly lower than the $10.4 million loss in the year-ago quarter.
Additionally, losses for the quarter were partly mitigated by a $1.8 million gain on extinguishment of medallion-related debt resulting from our successful debt private placements in December 2020 and the 2021 first quarter.
Our efforts will continue to be on recovering as much as possible while we remain hopeful ridership will increase in the second half of the year. When looking at our consumer portfolio, Medallion Bank once again posted a strong quarter as we head into our busier months, given the seasonal volume increases we typically see in the second and third quarters. COVID-related payment deferrals were largely resolved last quarter. Loan volume continues to remain robust, resulting in the recreational and home improvement net loan portfolios growing 11% and 33% from March 31, 2020, while consumer originations were up 37% from the first quarter of last year. The consumer portfolio now represents 93% of total gross loan receivables as of March 31, 2021. In March of this year, the bank executed a non-binding term sheet with another potential fintech partner, which should be active in the next 30 days. We remain optimistic that the program at Medallion Bank will grow this year and we will see an increase in volume from our 2 partners as the economy begins to stabilize.
On the commercial side, liquidity remained strong and many of our mezzanine portfolio companies were able to access the Paycheck Protection Program last year, providing needed liquidity. The mezzanine portfolio performance is slowly recovering. The full recovery by the end of the year, the deal flow is a strong as we have seen in the 20-plus years that we've been in this business.
Let me quickly touch upon some additional first quarter highlights. Net income from the company's consumer and commercial lending segments increased to $15.1 million in 2021 compared to $4.3 million a year ago, which was lower, in part, due to provisions we took as a result of COVID-19. Medallion Bank closed the first quarter with an 18.03% Tier 1 leverage ratio and $228.6 million of total capital. Including loan collateral in the process of foreclosure and owned Chicago medallion assets, total Medallion exposure comprised 4% of our total assets as of March 31, 2021, compared to 9% at March 31, 2020.
So with that, I will now turn the call over to Larry, who will provide additional highlights on the first quarter.