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) August 4, 2010

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 June 30, 2010.

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 August 4, 2010.

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 5, 2010

Exhibit Index

Exhibit No.	Description
99.1	Press release, dated August 4, 2010.

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

2010 SECOND QUARTER RESULTS

• Earnings increase 52%

• New York City taxi medallion prices continue to increase to record highs of over $800,000.

• Net interest margin increased to 4.81% in the quarter, up from 4.56% in 2009; and was 6.88%, up from 6.30%, when combined with Medallion Bank, an all time high.

• $0.15 per share dividend declared.

NEW YORK, N.Y. – August 4, 2010 — 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 $ 3,035,000 or $0.17 per diluted common share in the 2010 second quarter, up from $2,003,000 or $0.11 per diluted common share in the 2009 second quarter, an increase of 52%. Net investment income after income taxes was $2,940,000, or $0.17 per share in the 2010 second quarter, up from $2,116,000, or $0.12 per share in the 2009 second quarter, an increase of 39%. Net investment income after income taxes on a combined basis with Medallion Bank was $7,531,000, or $0.43 per share in the 2010 second quarter, up from $5,828,000, or $0.33 per share in the year ago quarter, an increase of 29%.

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Medallion Financial Corp. Announces 2010 Second Quarter Results – p. 2

Medallion’s on balance sheet taxicab medallion loan portfolio was $333,318,000, down from $375,894,000 at the end of the 2009 second quarter. The decrease resulted primarily from placing more medallion loans into Medallion Bank, an unconsolidated wholly-owned portfolio investment, whose results are not consolidated with these numbers, but whose growth is noted below, and also from our continuing ability to participate these high-quality loans to financial institutions which desire safe and profitable loan growth. In addition, Medallion earns fee income for originating and managing these loans. Our on balance sheet commercial loan portfolio was $71,669,000, down from $82,889,000 a year ago.

Medallion’s managed taxicab medallion loan portfolio, which includes Medallion Bank, and loans serviced for or by third parties, was $615,635,000 at quarter end, up from $581,920,000 a year ago. This was an all time high for the Company and reflects the Company’s continuing focus of growing the medallion business. Our managed commercial loan portfolio was $127,788,000, down from $157,840,000 a year ago, and Medallion Bank’s consumer loan portfolio was $186,557,000, down from $191,729,000. Total assets under management increased to $1,057,983,000, up from $1,052,165,000, a year ago.

Andrew Murstein, President of Medallion stated, “We are very pleased with our continuing trends of increased growth, spreads, and profits. During this quarter, New York City medallion prices remained strong. The industry remains recession-resistant. Taxi medallion prices in New York reached over $800,000 in July, which is an all time high. Very few assets have appreciated over the last few years, other than taxi medallions, and they are, and continue to be, a great investment. Medallion loans are our largest and fastest growing lending line today, and we can think of no better foundation to have in our investment portfolio.”

Larry Hall, CFO, stated, “The weighted average interest rate on our managed loan portfolio at the end of the 2010 second quarter was 9.14%, down from 9.57% a year ago. Those are very solid yields given the declining interest rate environment.

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Medallion Financial Corp. Announces 2010 Second Quarter Results – p. 3

“Medallion continues to benefit from a low cost of funds. Our weighted average cost of borrowed funds was 4.15% in the quarter, compared to 3.86% a year ago, and was 2.97% on a managed basis, combined with Medallion Bank, compared to 3.62% a year ago. Our net interest margin was 4.81%, up from 4.56% in the 2009 quarter. Furthermore, the net interest margin on a combined basis, including Medallion Bank, was the highest in our company history, 6.88%, up from 6.30% last year,” Mr. Hall said.

“In addition, Medallion Bank’s current weighted average cost of funds at quarter end was 1.42%. However, new CD’s issued during June 2010 had an average coupon rate of 0.88%. 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 very strong. On a managed basis, including Medallion Bank, delinquent medallion loans 90 days or more past due were 0.1%, down from 0.3% one year ago. Delinquent consumer loans were 0.7%, unchanged from a year ago. Delinquent commercial loans were 7.4%, down from 9.4%, a year ago. On a combined basis for all loan types, the 90 day delinquency percentages were 1.5%, down from 2.2%, a year ago.”

“Lastly we believe that with a tangible book value of $9.16 per share, and a stock price of approximately $7 per share, which is below book value, our stock represents an attractive opportunity, especially with a dividend yield of over 8% on today’s stock price. To that end, we repurchased shares in the quarter and will continue to repurchase shares pursuant to our stock repurchase program when favorable opportunities present themselves.”

The Company also announced that its Board of Directors declared a dividend of $0.15 per share on its common stock for the 2010 second quarter. The dividend is payable on September 3, 2010 to shareholders of record on August 20, 2010. Since the Company’s initial public offering in 1996, the Company has paid out over $149,496,000 in dividends, or $9.55 per share.

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Medallion Financial Corp. Announces 2010 Second Quarter Results – p. 4

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 2009 Annual Report on Form 10-K.

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands, except per share data)	2010			2009			2010			2009
Total investment income	$	9,360		$	10,613		$	18,590		$	21,347
Total interest expense		3,740			4,236			7,255			8,881
Net interest income		5,620			6,377			11,335			12,466
Total noninterest income		1,151			764			1,947			1,463
Salaries and benefits		2,750			2,875			5,807			5,990
Professional fees		687			676			1,277			1,079
Occupancy expense		346			281			680			574
Other operating expenses		48			1,193			347			2,262
Total operating expenses		3,831			5,025			8,111			9,905
Net investment income before income taxes		2,940			2,116			5,171			4,024
Income tax (provision) benefit		—			—			—			—
Net investment income after income taxes		2,940			2,116			5,171			4,024
Net realized losses on investments		(668	)		(1,526	)		(8,890	)		(1,890	)
Net change in unrealized appreciation (depreciation) on investments		(945	)		1,182			(2,188	)		2,049
Net change in unrealized appreciation (depreciation) on Medallion Bank and other controlled subsidiaries		1,708			231			9,051			(292	)
Net unrealized appreciation on investments		763			1,413			6,863			1,757
Net realized/unrealized gains (losses) on investments		95			(113	)		(2,027	)		(133	)
Net increase in net assets resulting from operations	$	3,035		$	2,003		$	3,144		$	3,891
Net investment income after income taxes per common share
Basic	$	0.17		$	0.12		$	0.29		$	0.23
Diluted		0.17			0.12			0.29			0.23
Net increase in net assets resulting from operations per common share
Basic	$	0.17		$	0.11		$	0.18		$	0.22
Diluted		0.17			0.11			0.18			0.22
Dividends declared per share	$	0.15		$	0.19		$	0.30		$	0.38
Weighted average common shares outstanding
Basic		17,560,352			17,570,909			17,568,072			17,563,396
Diluted		17,685,988			17,692,070			17,700,334			17,670,842

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)	June 30, 2010		December 31, 2009
Assets
Medallion loans, at fair value	$	333,318	$	321,915
Commercial loans, at fair value		71,669		77,922
Investment in Medallion Bank and other controlled subsidiaries, at fair value		74,104		72,279
Equity investments, at fair value		3,360		3,017
Investment securities, at fair value		—		—
Net investments		482,451		475,133
Cash and cash equivalents		20,890		33,401
Accrued interest receivable		1,612		1,661
Fixed assets, net		251		302
Goodwill, net		5,069		5,069
Other assets, net		40,505		39,608
Total assets	$	550,778	$	555,174
Liabilities
Accounts payable and accrued expenses	$	5,627	$	7,468
Accrued interest payable		2,157		2,207
Funds borrowed		382,404		382,522
Total liabilities		390,188		392,197
Commitments and contingencies		—		—
Total shareholders’ equity (net assets)		160,590		162,977
Total liabilities and shareholders’ equity	$	550,778	$	555,174
Number of common shares outstanding		17,523,153		17,575,877
Net asset value per share	$	9.16	$	9.27
Total managed loans	$	929,980	$	907,116
Total managed assets		1,057,983		1,039,840