8-K

UNITED STATES

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) November 5, 2009

Medallion Financial Corp.

(Exact name of registrant as specified in its charter)

Delaware	814-00188	04-3291176
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
437 Madison Avenue, 38th Floor, New York, New York		10022
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 328-2100

Not Applicable

(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 quarter ended September 30, 2009.

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.

Exhibit No.	Description
99.1	Press release, dated November 5, 2009.

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/    BRIAN S. O’LEARY
Name:	Brian S. O’Leary
Title:	Chief Operating Officer
Date: November 6, 2009

Exhibit Index

Exhibit No.	Description
99.1	Press release, dated November 5, 2009.

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	(212) 447-9292

FOR IMMEDIATE RELEASE

MEDALLION FINANCIAL CORP. REPORTS 2009 THIRD QUARTER RESULTS

• Medallion earns $0.16 cents per diluted common share

• Net interest margin increases to 4.62% and 6.57% when combined with Medallion Bank

• Credit quality remains excellent

• $0.19 per share dividend declared

NEW YORK, N.Y. – November 5, 2009 — Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that net increase in net assets resulting from operations was $2,889,000 or $0.16 per diluted common share in the 2009 third quarter, down from $4,118,000 or $0.23 per diluted common share in the 2008 third quarter. Net investment income after income taxes was $2,001,000, or $0.11 per share in the 2009 third quarter, down from $3,425,000 or $0.19 per share in the year ago period. Net investment income after income taxes on a combined basis with Medallion Bank was $5,946,000, or $0.34 per share in the 2009 third quarter, down from $6,774,000, or $.38 per share in the year ago period.

(more)

Medallion Financial Corp. Announces 2009 Third Quarter Results – p. 2

Medallion’s on balance sheet taxicab medallion loan portfolio was $341,783,000 at the end of the 2009 third quarter, down from $411,693,000 at the end of the 2008 quarter. The decrease resulted from our continuing ability to participate these high-quality loans to financial institutions which desire safe and profitable loan growth, and which provide Medallion a servicing fee for managing the loans. Our on balance sheet commercial loan portfolio was $81,787,000, down from $94,830,000, a year ago.

Medallion’s managed taxicab medallion loan portfolio, which includes Medallion Bank, our unconsolidated wholly-owned portfolio investment, and loans serviced for or by third parties, was $578,489,000, up from $568,972,000, a year ago. Our managed commercial loan portfolio was $142,027,000, down from $178,721,000, a year ago.

In addition, Medallion Bank’s consumer loan portfolio increased to $191,766,000, up from $184,159,000, a year ago. Total assets under management decreased slightly to $1,037,000,000 from $1,049,000,000, a year ago.

Andrew Murstein, President of Medallion stated, “We are very pleased with our continuing trends of increased spreads. During this quarter, New York City and Chicago medallion prices remained firm. The industry remains strong. Taxi medallion prices in New York were $760,000, up from $725,000 one year ago, the highest they have ever been. Very few assets have appreciated over the last year, and taxi medallions are, and continue to be, one of the safest investments.”

Larry Hall, CFO, stated, “The weighted average interest rate on our managed loan portfolio at the end of the 2009 third quarter was 9.64%, up from 9.61% a year ago, very solid performance given the continuing declining interest rate environment.

(more)

Medallion Financial Corp. Announces 2009 Third Quarter Results – p. 3

“Medallion continues to benefit from a low cost of funds. Our weighted average cost of borrowed funds dropped to 4.15% in the quarter, down from 4.54% a year ago, and was 3.47% on a managed basis, combined with Medallion Bank, compared to 4.49% a year ago. As a result, our net interest margin was 4.62%, up from 4.53% in the 2008 quarter. However, the net interest margin on a combined basis including Medallion Bank grew to 6.57%, up from 5.57% last year. That is the highest it has ever been in the history of the Company. At quarter end, our medallion portfolio yielded 6.29%, compared to borrowing costs of 1.61% on our medallion loan revolving lines of credit, a spread of 4.68% for this low-risk, high-quality loan portfolio,” Mr. Hall said.

“In addition, Medallion Bank’s current weighted average cost of funds at quarter end was 2.07%. However, new CD’s issued during September 2009 averaged 0.30%. Thus, as the older CD’s continue to mature and are replaced, spreads should increase, as long as rates remain at these low levels,” Mr. Hall added.

“Our loan quality, which continues to remain one of the hallmarks of Medallion, remains strong. While delinquencies increased slightly during the quarter, they are still quite low and well within our historical ranges. On a managed basis, including Medallion Bank, delinquent medallion loans 90 days or more past due were 0.3%, up slightly from 0.1% one year ago. Delinquent consumer loans 90 days or more past due were 1.0%, up from 0.7% a year ago. Delinquent commercial loans 90 days or more past due were 7.7%, down from last quarter’s 9.4%, and up from 0.2%, one year ago. On a combined basis, the delinquency totals were 1.8%, down from 2.2% last quarter, and up from 0.3%, one year ago.”

Mr. Hall concluded, “Lastly our liquidity remains solid. Our strong capital levels, both at Medallion and Medallion Bank, allow the Bank to raise an additional $75,000,000 through deposits , and complement the available liquidity in Medallion’s other various sources of capital.”

(more)

Medallion Financial Corp. Announces 2009 Third Quarter Results – p. 4

The Company also announced that its Board of Directors declared a dividend of $0.19 per share on its common stock for the 2009 third quarter. The dividend is payable on November 30, 2009 to shareholders of record on November 20, 2009. Since the Company’s initial public offering in 1996, the Company has paid out over $141,594,000 in dividends, or $9.10 per share.

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 other commercial loans in targeted niche industries and its wholly owned portfolio company Medallion Bank also originates and services consumer loans. The Company and its subsidiaries have lent over $3 billion.

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 2008 Annual Report on Form 10-K.

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2009			2008		2009			2008
Total investment income	$	10,196		$	11,743	$	31,544		$	38,917
Total interest expense		4,174			5,131		13,056			17,940
Net interest income		6,022			6,612		18,488			20,977
Total noninterest income		963			795		2,427			2,908
Salaries and benefits		2,857			2,708		8,846			8,052
Professional fees		467			325		1,546			1,281
Occupancy expense		308			205		882			866
Other operating expenses		1,352			744		3,615			3,040
Total operating expenses		4,984			3,982		14,889			13,239
Net investment income before income taxes		2,001			3,425		6,026			10,646
Income tax (provision) benefit		-			-		-			-
Net investment income after income taxes		2,001			3,425		6,026			10,646
Net realized gains (losses) on investments		486			108		(1,404	)		(3,869	)
Net change in unrealized appreciation (depreciation) on investments		(841	)		449		1,208			6,138
Net change in unrealized appreciation (depreciation) on Medallion Bank and other controlled subsidiaries		1,243			136		951			(499	)
Net unrealized appreciation on investments		402			585		2,159			5,639
Net realized/unrealized gains on investments		888			693		755			1,770
Net increase in net assets resulting from operations	$	2,889		$	4,118	$	6,781		$	12,416
Net investment income after income taxes per common share
Basic	$	0.11		$	0.20	$	0.34		$	0.61
Diluted		0.11			0.19		0.34			0.60
Net increase in net assets resulting from operations per common share
Basic	$	0.16		$	0.23	$	0.39		$	0.71
Diluted		0.16			0.23		0.38			0.70
Dividends declared per share	$	0.19		$	0.19	$	0.57		$	0.57
Weighted average common shares outstanding
Basic		17,575,877			17,535,249		17,567,602			17,512,245
Diluted		17,708,892			17,756,913		17,683,571			17,733,830

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

	UNAUDITED
(Dollars in thousands, except per share data)	September 30, 2009		December 31, 2008
Assets
Medallion loans, at fair value	$	341,783	$	402,964
Commercial loans, at fair value		81,787		89,611
Investment in Medallion Bank and other controlled subsidiaries, at fair value		77,544		74,750
Investment securities, at fair value		-		-
Equity investments, at fair value		2,898		3,272
Net investments ($278,695 at September 30, 2009 and $347,517 at December 31, 2008 pledged as collateral under borrowing arrangements)		504,012		570,597
Cash and cash equivalents ($0 at September 30, 2009 and December 31, 2008 restricted as to use by lender)		29,587		32,075
Accrued interest receivable		1,824		2,149
Fixed assets, net		316		411
Goodwill, net		5,069		5,069
Other assets, net		38,683		36,384
Total assets	$	579,491	$	646,685
Liabilities
Accounts payable and accrued expenses	$	7,341	$	7,074
Accrued interest payable		850		2,015
Funds borrowed		399,280		462,650
Total liabilities		407,471		471,739
Commitments and contingencies		-		-
Total shareholders’ equity (net assets)		172,020		174,946
Total liabilities and shareholders’ equity	$	579,491	$	646,685
Number of common shares outstanding		17,575,877		17,549,224
Net asset value per share	$	9.79	$	9.97
Total managed loans	$	912,282	$	945,294
Total managed assets		1,036,883		1,075,509