8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 8, 2006

Commission File Number: 811-09744

MEDALLION FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware	04-3291176
(State or other jurisdiction of incorporation)	(IRS Employer Identification Number)

437 Madison Avenue

New York, New York 10022

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

(212) 328-2100

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

Medallion Financial Corp. (the “Company”) issued a press release to the news media announcing, among other things, the Company’s results for the second quarter of 2006.

A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information in the press release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the press release will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

99.1 Press release, dated August 8, 2006.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MEDALLION FINANCIAL CORP.
By:	/s/ Larry D. Hall
Name:	Larry D. Hall
Title:	Chief Financial Officer
Date: August 9, 2006

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Exhibit Index

Exhibit No.	Description
99.1	Press release, dated August 8, 2006.

4

EX-99.1

Exhibit 99.1

For Further Information:
At Medallion Financial Corp.	At Zlokower Company
437 Madison Avenue, New York, NY 10022	Public Relations
Andrew Murstein, President	Harry Zlokower
Larry D. Hall, CFO	David Closs
(212) 328-2100 or 1-877-Medallion	(212) 447-9292

FOR IMMEDIATE RELEASE

MEDALLION ANNOUNCES SECOND QUARTER RESULTS

Net Increase in Net Assets Increases to $0.23 per share, highest in nearly 2 years

Delinquencies Continue to decrease to an all time low

Dividend Raised to $0.17, highest in over 5 years

NEW YORK, N.Y. – August 8, 2006 - Medallion Financial Corp. (NASDAQ: TAXI), a specialty finance company with a leading position servicing the taxi industry and targeted niche markets, announced net increase in net assets resulting from operations of $4,076,000, or $0.23 per diluted share in the 2006 second quarter, up from $447,343 or $0.03 per diluted share in the 2005 second quarter, an increase of $3,628,657. Net increase in net assets resulting from operations increased to $5,862,238, or $0.33 per diluted share for the 2006 six months, up from $2,683,320, or $0.15 per diluted share for the 2005 six months, an increase of $3,179,000.

Medallion loans grew to $468,026,518, from $423,798,555 a year ago, an increase of $44,794,012 or 11%. Commercial loans were at $146,642,378, down from $155,765,264, a decrease of $9,122,886 or 6%. Excluding the sale of a divested business, Business Lenders, commercial loans increased $10,226,000 or 7%. Consumer loans grew to $103,938,426, from $76,628,773, an increase of $27,309,653 or 36%. The total yield in the quarter across the entire portfolio increased to 8.99% from 8.25% a year ago.

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Medallion Announces Earnings, Page 2

Net investment income after taxes was $2,431,000 in the 2006 second quarter, a decrease from the prior period primarily due to higher loan payoffs, as well as lower amounts of interest recoveries. However, results of the June New York city taxi medallion auction, for which we expect to generate additional fundings from new and existing customers, will be reflected in upcoming quarterly results, as those transactions begin to close. New York City medallion prices increased at the recent auction going for as much as $540,000 per taxi medallion. Net investment income was also impacted by stronger earnings at Medallion Bank, which resulted in a higher tax provision. Medallion Bank continues to be the Company’s fastest growing and lowest cost funding source. As the Company’s only significant taxpaying entity, Medallion Bank’s retained earnings resulted in increased shareholders’ equity by over $1,700,000 in the quarter.

Andrew Murstein, President of Medallion, stated, “We are pleased with our second quarter results, as the bottom line number is the highest it has been in several years. Medallion Bank is performing better than anticipated. It has contributed significantly to our earnings since opening for business less than 3 years ago. The consumer portfolio is yielding over 18%, and their 90-days past due delinquencies continued to decrease and remain below 1%.”

Larry Hall, Medallion’s Chief Financial Officer, stated, “Credit quality remains outstanding. Over 90 day delinquencies have dropped to just 1.9%. This is the lowest level they have been since our IPO over 10 years ago.”

Medallion also announced that its Board of Directors has declared and will pay a cash dividend of $0.17 per share for the quarter. The dividend will be payable on August 30, 2006 to shareholders of record on August 18, 2006. The dividend is the highest amount the company has paid in over 5 years. The Company has now declared $0.33 per share of dividends over the first six months of 2006, up from $0.25 for the first six months of 2005, an increase of 32%.

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Medallion Announces Earnings, Page 3

About Medallion Financial

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 loans financing small businesses and other targeted industries and niches. The Company and its subsidiaries have lent over $2.5 billion to the taxicab industry and small business.

# # # #

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 2005 Annual Report on Form 10-K.

(Financial Tables Follow)

Medallion Financial Corp.

Consolidated Income Statements

	Quarter Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Total investment income	$	16,497,773		$	14,137,562		$	32,944,967		$	27,103,822
Total interest expense		8,544,379			5,870,877			15,973,107			11,092,212
Net interest income		7,953,394			8,266,685			16,971,860			16,011,610
Gain on sales of loans		—			375,431			—			614,950
Other income		883,757			1,142,481			1,283,674			1,815,719
Total noninterest income		883,757			1,517,912			1,283,674			2,430,669
Salaries and benefits		2,885,872			2,786,788			5,325,105			5,750,804
Professional fees		552,201			482,121			1,162,984			987,378
Other operating expenses		1,663,441			2,077,902			3,263,928			3,949,624
Total operating expenses		5,101,514			5,346,811			9,752,017			10,687,806
Net investment income before income taxes		3,735,637			4,437,786			8,503,517			7,754,473
Income tax provision		1,304,979			684,371			2,306,550			1,241,032
Net investment income after taxes		2,430,658			3,753,415			6,196,967			6,513,441
Net realized gains (losses) on investments		2,286,887			(682,815	)		45,464			1,365,072
Net change in unrealized appreciation (depreciation) on investments		(641,479	)		(2,623,257	)		(380,193	)		(5,195,493	)
Net realized/unrealized loss on investments		1,645,408			(3,306,072	)		(334,729	)		(3,830,421	)
Net increase in net assets resulting from operations	$	4,076,066		$	447,343		$	5,862,238		$	2,683,020
Weighted average common shares outstanding
Basic		17,283,907			16,969,568			17,248,007			17,063,025
Diluted		17,799,377			17,413,963			17,760,920			17,507,421
Net investment income after income taxes per share
Basic	$	0.14		$	0.22		$	0.36		$	0.38
Diluted		0.14			0.22			0.35			0.37
Net increase in net assets resulting from operations per share
Basic	$	0.24		$	0.03		$	0.34		$	0.16
Diluted		0.23			0.03			0.33			0.15
Dividends declared per share	$	0.17		$	0.13		$	0.33		$	0.25

Medallion Financial Corp.

Consolidated Balance Sheets

	June 30, 2006		December 31, 2005
ASSETS
Medallion loans	$	468,026,518	$	449,672,510
Commercial loans		146,642,378		145,796,651
Consumer loans		103,938,426		85,678,412
Equity investments		23,576,495		24,012,508
Investment securities		19,553,841		18,092,838
Net investments		761,737,658		723,252,919
Cash		38,931,640		43,035,506
Accrued interest receivable		3,410,694		3,580,460
Fixed assets, net		718,603		614,858
Goodwill, net		5,007,583		5,007,583
Other assets		16,092,120		17,481,876
Total assets	$	825,898,298	$	792,973,202
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	3,926,554	$	4,837,461
Accrued interest payable		2,334,458		1,759,737
Floating rate borrowings		343,242,211		323,664,951
Fixed rate borrowings		308,652,473		296,357,214
Total liabilities		658,155,696		626,619,363
Total shareholders’ equity		167,742,602		166,353,839
Total liabilities and shareholders’ equity	$	825,898,298	$	792,973,202
Number of common shares outstanding		17,312,915		17,173,297
Net asset value per share	$	9.69	$	9.69
Total managed loans	$	726,803,702	$	690,280,561
Total managed assets		834,094,678		802,106,190