10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 814-00188

MEDALLION FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

DELAWARE 04-3291176

(State of Incorporation)(IRS Employer Identification No.)

437 MADISON AVENUE, 38^th Floor, NEW YORK, NEW YORK 10022

(Address of principal executive offices) (Zip Code)

(212) 328-2100

(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the Registrant was required to submit and post such files).    YES  ¨    NO  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

Large Accelerated Filer	¨	Accelerated Filer	x
Non Accelerated Filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     YES  ¨    NO  x

The number of outstanding shares of registrant’s Common Stock, par value $0.01, as of November 4, 2014 was 25,162,791.

MEDALLION FINANCIAL CORP.

FORM 10-Q

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION	3
ITEM 1. FINANCIAL STATEMENTS	3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	40
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	60
ITEM 4. CONTROLS AND PROCEDURES	60
PART II - OTHER INFORMATION	60
ITEM 1. LEGAL PROCEEDINGS	60
ITEM 1A. RISK FACTORS	61
ITEM 6. EXHIBITS	73
SIGNATURES	74
CERTIFICATIONS

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BASIS OF PREPARATION

We, Medallion Financial Corp. or the Company, are a closed-end, non-diversified management investment company organized as a Delaware corporation. We have elected to be treated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. We are a specialty finance company that has a leading position in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. A wholly-owned portfolio company of ours, Medallion Bank, also originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, and trailers and to finance small-scale home improvements. Since 1996, the year in which we became a public company, we have increased our taxicab medallion loan portfolio at a compound annual growth rate of 5%, and our commercial loan portfolio at a compound annual growth rate of 2% (10% and 5% on a managed basis when combined with Medallion Bank). Since Medallion Bank acquired a consumer loan portfolio and began originating consumer loans in 2004, it has increased its consumer loan portfolio at a compound annual growth rate of 17%. Total assets under our management and the management of our unconsolidated wholly-owned subsidiaries, which includes our managed net investment portfolio, as well as assets serviced for third party investors, were $1,485,000,000 as of September 30, 2014, and $1,330,000,000 and $1,290,373,000 as of December 31, 2013 and September 30, 2013, and have grown at a compound annual growth rate of 11% from $215,000,000 at the end of 1996. Since our initial public offering in 1996, we have paid/declared distributions in excess of $224,000,000 or $13.07 per share.

We conduct our business through various wholly-owned investment company subsidiaries including:

• Medallion Funding LLC, or Medallion Funding, a Small Business Investment Company, or SBIC, our primary taxicab medallion lending company;

• Medallion Capital, Inc., or Medallion Capital, an SBIC and a regulated investment company, or RIC, which conducts a mezzanine financing business; and

• Freshstart Venture Capital Corp., or Freshstart, an SBIC and a RIC, which originates and services taxicab medallion and commercial loans.

We have formed a wholly-owned portfolio company, Medallion Servicing Corporation, or MSC, to provide loan services to Medallion Bank, also a portfolio company wholly-owned by us. We have assigned all of our loan servicing rights for Medallion Bank, which consists of servicing taxi medallion and commercial loans originated by Medallion Bank, to MSC, which bills and collects the related service fee income from Medallion Bank, and is allocated and charged by us for MSC’s share of these servicing costs.

We also conduct business through our asset-based lending division, Medallion Business Credit, an originator of loans to small businesses for the purpose of financing inventory and receivables.

In addition, we conduct business through a wholly-owned portfolio company, Medallion Bank, a bank regulated by the FDIC and the Utah Department of Financial Institutions which originates taxicab medallion, commercial, and consumer loans, raises deposits, and conducts other banking activities. Medallion Bank generally provides us with our lowest cost of funds which it raises through bank certificates of deposit issued to its customers. To take advantage of this low cost of funds, we refer a portion of our taxicab medallion and commercial loans to Medallion Bank, which then originates these loans, which are then serviced by MSC. However, the FDIC restricts the amount of taxicab medallion loans that Medallion Bank may finance to three times Tier 1 capital, or $438,726,000 at September 30, 2014. MSC earns referral and servicing fees for these activities. As a non-investment company, Medallion Bank is not consolidated with the Company, which is an investment company under the 1940 Act.

The financial information is divided into two sections. The first section, Item 1, includes our unaudited consolidated financial statements including related footnotes. The second section, Item 2, consists of Management’s Discussion and Analysis of Financial Condition and Results of Operations for the three and nine months ended September 30, 2014.

Our consolidated balance sheet as of September 30, 2014, and the related consolidated statements of operations, changes in net assets, and cash flows for the three and nine months ended September 30, 2014 and 2013 included in Item 1 have been prepared by us, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the US have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements include all adjustments, which are of a normal and recurring nature, necessary to present fairly our consolidated financial position and results of operations. The results of operations for the three and nine months ended September 30, 2014 and 2013, or for any other interim period, may not be indicative of future performance. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013.

Page 3 of 74

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)	2014			2013			2014			2013
Interest income on investments	$	6,933		$	5,997		$	18,781		$	15,439
Dividends and interest income on short-term investments(1)		4,015			3,018			10,217			8,547
Medallion lease income		431			420			1,291			1,238
Total investment income		11,379			9,435			30,289			25,224
Total interest expense(2)		2,222			2,092			6,282			6,279
Net interest income		9,157			7,343			24,007			18,945
Total noninterest income		136			181			435			804
Salaries and benefits		2,906			2,369			8,431			7,265
Professional fees		70			(105	)		623			1,291
Occupancy expense		207			195			588			587
Other operating expenses (3)		882			650			2,320			1,986
Total operating expenses		4,065			3,109			11,962			11,129
Net investment income before income taxes(1) (4)		5,228			4,415			12,480			8,620
Income tax (provision) benefit		—			—			—			—
Net investment income after income taxes		5,228			4,415			12,480			8,620
Net realized losses on investments(5)		(193	)		(596	)		(1,051	)		(515	)
Net change in unrealized appreciation (depreciation) on investments		(1,723	)		894			20			7,423
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries		3,382			1,684			9,115			3,590
Net unrealized appreciation on investments		1,659			2,578			9,135			11,013
Net realized/unrealized gains on investments		1,466			1,982			8,084			10,498
Net increase in net assets resulting from operations	$	6,694		$	6,397		$	20,564		$	19,118
Net increase in net assets resulting from operations per common share
Basic	$	0.27		$	0.29		$	0.83		$	0.89
Diluted		0.27			0.29			0.82			0.87
Distributions declared per share	$	0.24		$	0.23		$	0.72		$	0.67
Weighted average common shares outstanding
Basic		24,924,433			21,730,116			24,872,230			21,596,054
Diluted		25,118,420			22,116,793			25,107,905			21,966,709

(1) Includes $4,000 and $10,000 of dividend income for the three and nine months ended September 30, 2014 from Medallion Bank, and $3,000 and $8,500 for the comparable 2013 periods.

(2) Average borrowings outstanding were $328,731 and $310,751, and the related average borrowing costs were 2.68% and 2.70% for the 2014 third quarter and nine months, and were $320,546 and $316,624, 2.59%, and 2.65% for the comparable 2013 periods.

(3) See Note 7 for the components of other operating expenses.

(4) Includes $174 and $574 of net revenues received from Medallion Bank for the three and nine months ended September 30, 2014, and $182 and $505 for the comparable 2013 periods, primarily for servicing fees, loan origination fees, and expense reimbursements. See Notes 3 and 10 for additional information.

(5) There were no net losses on investment securities of affiliate issuers.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 4 of 74

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

	UNAUDITED
(Dollars in thousands, except per share data)	September 30, 2014			December 31, 2013
Assets
Medallion loans, at fair value	$	303,502		$	297,861
Commercial loans, at fair value (1)		64,256			60,168
Investment in Medallion Bank and other controlled subsidiaries, at fair value		127,708			108,623
Equity investments, at fair value		7,828			6,505
Investment securities, at fair value		—			—
Net investments ($241,242 at September 30, 2014 and $241,840 at December 31, 2013 pledged as collateral under borrowing arrangements)		503,294			473,157
Cash and cash equivalents ($0 at September 30, 2014 and December 31, 2013 restricted as to use by lender)		58,257			52,172
Accrued interest receivable		942			907
Fixed assets, net		318			446
Foreclosed properties		48,739			50,403
Goodwill, net		5,099			5,069
Other assets, net		3,563			12,899
Total assets	$	620,212		$	595,053
Liabilities
Accounts payable and accrued expenses	$	5,069		$	5,476
Accrued interest payable		1,303			1,124
Funds borrowed		335,809			314,958
Total liabilities		342,181			321,558
Commitments and contingencies		—			—
Shareholders’ equity (net assets)
Preferred stock (1,000,000 shares of $0.01 par value stock authorized – none outstanding)		—			—
Common stock (50,000,000 shares of $0.01 par value stock authorized – 26,763,524 shares at September 30, 2014 and 26,570,355 shares at December 31, 2013 issued)		268			266
Treasury stock at cost (1,600,733 shares at September 30, 2014 and December 31, 2013)		(14,304	)		(14,304	)
Capital in excess of par value		270,342			268,522
Accumulated undistributed net investment loss		(12,089	)		(14,782	)
Accumulated undistributed net realized gains on investments		—			—
Net unrealized appreciation on investments		33,814			33,793
Total shareholders’ equity (net assets)		278,031			273,495
Total liabilities and shareholders’ equity	$	620,212		$	595,053
Number of common shares outstanding		25,162,791			24,969,622
Net asset value per share	$	11.05		$	10.95

(1) Includes $13,058 and $12,181 of loans to controlled subsidiaries or entities under their control at September 30, 2014 and December 31, 2013.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 5 of 74

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2014			2013			2014			2013
Net investment income after income taxes	$	5,228		$	4,415		$	12,480		$	8,620
Net realized losses on investments		(193	)		(596	)		(1,051	)		(515	)
Net unrealized appreciation on investments		1,659			2,578			9,135			11,013
Net increase in net assets resulting from operations		6,694			6,397			20,564			19,118
Investment income, net		(5,921	)		(2,021	)		(13,757	)		(6,853	)
Return of capital, net		(118	)		(2,821	)		(4,094	)		(7,617	)
Realized gains from investment transactions, net		—			—			—			—
Distributions to shareholders (1)		(6,039	)		(4,842	)		(17,851	)		(14,470	)
Stock – based compensation expense		382			366			1,112			1,129
Exercise of stock options		4			595			827			3,736
Capitalized stock issuance costs (2)		—			—			(117	)		—
Treasury stock acquired		—			—			—			—
Capital share transactions		386			961			1,822			4,865
Other		—			5			1			32
Total increase in net assets		1,041			2,521			4,536			9,545
Net assets at the beginning of the period		276,990			223,342			273,495			216,318
Net assets at the end of the period(3)	$	278,031		$	225,863		$	278,031		$	225,863
Capital share activity
Common stock issued, beginning of period		26,763,176			23,569,216			26,570,355			23,251,937
Exercise of stock options		430			67,986			92,396			384,165
Issuance (forfeiture) of restricted stock, net		(82	)		(2,802	)		100,773			(1,702	)
Common stock issued, end of period		26,763,524			23,634,400			26,763,524			23,634,400
Treasury stock, beginning of period		(1, 600,733	)		(1, 600,733	)		(1,600,733	)		(1,600,733	)
Treasury stock acquired		—			—			—			—
Treasury stock, end of period		(1,600,733	)		(1,600,733	)		(1,600,733	)		(1,600,733	)
Common stock outstanding		25,162,791			22,033,667			25,162,791			22,033,667

(1) Distributions declared were $0.24 and $0.72 per share for the 2014 third quarter and nine months, and were $0.23 and $0.67 for the comparable 2013 periods.

(2) Represents additional costs associated with the December 2013 equity offering applied to capital.

(3) Includes $0 and $0 of undistributed net investment income, $0 and $0 of undistributed net realized gains on investments, and $9,611 and $9,010 of capital loss carryforward at September 30, 2014 and 2013.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 6 of 74

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended September 30,
(Dollars in thousands)	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	20,564		$	19,118
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Depreciation and amortization		354			870
(Accretion) amortization of origination (fees) costs		(56	)		151
Net change in unrealized appreciation on investments		(20	)		(7,423	)
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries		(9,115	)		(3,590	)
Net realized losses on investments		1,051			515
Stock-based compensation expense		1,112			1,129
(Increase) decrease in accrued interest receivable		(35	)		19
(Increase) decrease in other assets, net		10,245			(5,008	)
Increase (decrease) in accounts payable and accrued expenses		(406	)		2,613
(Increase) decrease in accrued interest payable		178			(722	)
Net cash provided by operating activities		23,872			7,672
CASH FLOWS FROM INVESTING ACTIVITIES
Investments originated		(94,698	)		(186,265	)
Proceeds from principal receipts, sales, and maturities of investments		83,195			181,617
(Investments in) capital returned by Medallion Bank and other controlled subsidiaries, net		(9,970	)		296
Capital expenditures		(24	)		(56	)
Net cash used for investing activities		(21,497	)		(4,408	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from funds borrowed		95,980			207,480
Repayments of funds borrowed		(75,629	)		(193,929	)
Issuance of SBA debentures		6,500			25,500
Repayments of SBA debentures		(6,000	)		(23,450	)
Capitalized stock issuance costs		(117	)		—
Proceeds from exercise of stock options		827			3,736
Payments of declared distributions		(17,851	)		(14,470	)
Net cash provided by financing activities		3,710			4,867
NET INCREASE IN CASH AND CASH EQUIVALENTS		6,085			8,131
Cash and cash equivalents, beginning of period		52,172			26,875
Cash and cash equivalents, end of period	$	58,257		$	35,006
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest	$	5,871		$	6,263
Cash paid during the period for income taxes		—			—
Non-cash investing activities – net transfer to (from) other assets		—			—

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 7 of 74

MEDALLION FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2014

(1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES

Medallion Financial Corp. (the Company), is a closed-end management investment company organized as a Delaware corporation. The Company has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC) which originates and services taxicab medallion and commercial loans.

The Company formed a wholly-owned portfolio company, Medallion Servicing Corporation (MSC), to provide loan services to Medallion Bank, also a portfolio company wholly-owned by the Company. The Company has assigned all of its loan servicing rights for Medallion Bank, which consists of servicing taxi medallion and commercial loans originated by Medallion Bank, to MSC, who bills and collects the related service fee income from Medallion Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs.

The Company also conducts business through Medallion Capital, Inc. (MCI), an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC which originates and services taxicab medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration (SBA). MCI and FSVC are financed in part by the SBA. The Company also conducts business through its asset-based lending division, Medallion Business Credit (MBC), an originator of loans to small businesses for the purpose of financing inventory and receivables.

MFC established a wholly-owned subsidiary, Taxi Medallion Loan Trust III (Trust III), for the purpose of owning medallion loans originated by MFC or others. Trust III is a separate legal and corporate entity with its own creditors who, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III, aggregating $187,613,000 at September 30, 2014, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Trust III. Trust III’s loans are serviced by MFC.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I (Fin Trust) for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $36,155,000 at September 30, 2014, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

MFC through several wholly-owned subsidiaries (together, Medallion Chicago), purchased $8,689,000 of City of Chicago taxicab medallions out of foreclosure, which are leased to fleet operators while being held for sale. The 159 medallions are carried at a fair value of $48,739,000 on the consolidated balance sheet at September 30, 2014, compared to $50,403,000 and $49,928,000 at December 31, 2013 and September 30, 2013, and are considered non-qualifying assets under the 1940 Act.

A wholly-owned portfolio investment, Medallion Bank, a Federal Deposit Insurance Corporation (FDIC) insured industrial bank, originates medallion loans, commercial loans, and consumer loans, raises deposits, and conducts other banking activities (see Note 3). Medallion Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies.

Medallion Bank is not an investment company, and therefore, is not consolidated with the Company, but instead is treated as a portfolio investment. It was initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxicab medallions (licenses), 2) asset-based commercial loans, and 3) SBA 7(a) loans. The loans are marketed and serviced by Medallion Bank’s affiliates who have extensive prior experience in these asset groups.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and other receivables, foreclosed properties, loans held for sale, and investments, among other effects.

Page 8 of 74

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, except for Medallion Bank and other portfolio investments. All significant intercompany transactions, balances, and profits have been eliminated in consolidation. As a non-investment company, Medallion Bank is not consolidated with the Company, which is an investment company under the 1940 Act. See Note 3 for the presentation of financial information for Medallion Bank and other controlled subsidiaries.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that frequently exceed the federally insured limits, and includes $1,600,000 related to compensating balance requirements of several regional banking institutions.

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, (FASB ASC 820), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 2, 11, and 12 to the consolidated financial statements.

Investment Valuation

The Company’s loans, net of participations and any unearned discount, are considered investment securities under the 1940 Act and are recorded at fair value. As part of the fair value methodology, loans are valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market exists for these loans, the fair value is determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considers factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Foreclosed properties, which represent collateral received from defaulted borrowers, are valued similarly.

Equity investments (common stock and stock warrants, including certain controlled subsidiary portfolio investments) and investment securities (US Treasuries and mortgage backed bonds), in total representing 27% of the investment portfolio at September 30, 2014 and 24% at December 31, 2013, are recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that have no ready market are determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry. Included in equity investments were marketable securities of $1,498,000 and $1,579,000 at September 30, 2014 and December 31, 2013, and non-marketable securities of $6,330,000 and $4,926,000 in the comparable periods. The $127,708,000 and $108,623,000 related to portfolio investments in controlled subsidiaries at September 30, 2014 and December 31, 2013 were all non-marketable in each period. Because of the inherent uncertainty of valuations, the Board of Directors’ estimates of the values of the investments may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

The Company’s investment in Medallion Bank, as a wholly owned portfolio investment, is also subject to quarterly assessments of fair value. The Company conducts a thorough valuation analysis as described previously, and also receives an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on an annual basis. The Company determines whether any factors give rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013, and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors has determined that Medallion Bank has little value beyond its recorded book value. As a result of this valuation process, the Company used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments, although changes in these restrictions and other applicable factors could change these conclusions in the future. See Note 3 for additional information about Medallion Bank.

A majority of the Company’s investments consist of long-term loans to persons defined by SBA regulations as socially or economically disadvantaged, or to entities that are at least 50% owned by such persons. Approximately 60% and 63% of the Company’s investment portfolio at September 30, 2014 and December 31, 2013 had arisen in connection with the financing of

Page 9 of 74

taxicab medallions, taxicabs, and related assets, of which 68% were in New York City at September 30, 2014 and December 31, 2013. These loans are secured by the medallions, taxicabs, and related assets, and are personally guaranteed by the borrowers, or in the case of corporations, are generally guaranteed personally by the owners. A portion of the Company’s portfolio (13% at September 30, 2014 and December 31, 2013) represents loans to various commercial enterprises in a wide variety of industries, including manufacturing, retail trade, information, arts, entertainment, and recreation and various other industries. Approximately 26% of these loans are made in each of Minnesota and the metropolitan New York City area, with the balance widely scattered across the United States. Investments in controlled unconsolidated subsidiaries, equity investments, and investment securities were 25%, 2%, and 0% at September 30, 2014 and 23%, 1%, and 0% at December 31, 2013.

On a managed basis, which includes the investments of Medallion Bank after eliminating the Company’s investment in Medallion Bank, medallion loans were 53% and 56% at September 30, 2014 and December 31, 2013 (74% in New York City), commercial loans were 8% and 10%, and 36% and 31% were consumer loans in all 50 states collateralized by recreational vehicles, boats, motorcycles, trailers, and home improvements. Investment securities were 2% at September 30, 2014 and December 31, 2013, and equity investments (including investments in controlled subsidiaries) were 1%.

Investment Transactions and Income Recognition

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At September 30, 2014 and December 31, 2013, net loan origination costs were $261,000 and $164,000. Net (accretion) amortization (income) expense for the three months ended September 30, 2014 and 2013 was ($8,000) and $17,000, and was ($56,000) and $151,000 for the comparable nine months periods.

Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized as an adjustment to the yield of the related investment. At September 30, 2014 and December 31, 2013, there were no premiums or discounts on investment securities, and their related income accretion or amortization was immaterial for 2014 and 2013.

Interest income is recorded on the accrual basis. Taxicab medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. At September 30, 2014, December 31, 2013, and September 30, 2013, total nonaccrual loans were $11,884,000, $16,760,000, and $18,235,000, and represented 3%, 5%, and 5% of the gross medallion and commercial loan portfolio at each period end, and were primarily concentrated in the secured mezzanine portfolio. The amount of interest income on nonaccrual loans that would have been recognized if the loans had been paying in accordance with their original terms was $9,514,000, $9,826,000, and $11,082,000 as of September 30, 2014, December 31, 2013, and September 30, 2013, of which $480,000 and $715,000 would have been recognized in the quarters ended September 30, 2014 and 2013, and $1,408,000 and $2,051,000 would have been recognized in the comparable nine months. The reduction in nonaccrual interest foregone and principal balances reflects the recognition of certain loans as realized losses, and hence removal from the nonaccrual disclosures.

Loan Sales and Servicing Fee Receivable

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (FASB ASC 860), which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company has elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $458,777,000 and $427,421,000 at September 30, 2014 and December 31, 2013, and included $428,931,000 and $402,801,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, most of which relates to servicing assets held by Medallion Bank, and determined that no material servicing asset or liability exists as of September 30, 2014 and December 31, 2013. The Company has assigned its servicing rights to the Medallion Bank portfolio to MSC, a wholly-owned unconsolidated portfolio investment. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed to and collected from Medallion Bank by MSC.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

Unrealized appreciation (depreciation) on investments is the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Unrealized appreciation (depreciation) on investments was $33,814,000, $33,793,000, and $33,381,000 as of September 30, 2014, December 31, 2013, and September 30, 2013. The Company’s investment in Medallion Bank, a wholly owned portfolio investment, is also subject to quarterly assessments of fair value. The Company conducts a thorough valuation analysis as described previously, and also receives an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank. The Company determines whether any factors give rise to valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional marketplace restrictions, such as on the ability to transfer industrial bank charters.

Page 10 of 74

As a result of this valuation process, the Company used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments, although changes in these restrictions and other applicable factors could change these conclusions in the future. See Note 3 for the presentation of financial information for Medallion Bank.

The following tables set forth the changes in the Company’s unrealized appreciation (depreciation) on investments, other than investments in controlled subsidiaries, for the 2014 and 2013 quarters shown below.

(Dollars in thousands)	Medallion Loans		Commercial Loans			Equity Investments			Foreclosed Properties			Total
Balance December 31, 2013	$	—	($	6,992	)	$	381		$	40,404		$	33,793
Net change in unrealized
Appreciation on investments		—		—			100			—			100
Depreciation on investments		—		74			195			381			650
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		312			—			—			312
Balance March 31, 2014		—		(6,606	)		676			40,785			34,855
Net change in unrealized
Appreciation on investments		—		—			640			(951	)		(311	)
Depreciation on investments		—		(394	)		(62	)		761			305
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		13			674			—			687
Balance June 30, 2014		—		(6,987	)		1,928			40,595			35,536
Net change in unrealized
Appreciation on investments		—		—			(495	)		(713	)		(1,208	)
Depreciation on investments		—		(1,173	)		559			—			(614	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		100			—			—			100
Balance September 30, 2014	$	—	($	8,060	)	$	1,992		$	39,882		$	33,814
(Dollars in thousands)	Medallion Loans		Commercial Loans			Equity Investments			Foreclosed Properties			Total
Balance December 31, 2012	$	—	($	7,844	)	$	44		$	33,757		$	25,957
Net change in unrealized
Appreciation on investments		—		—			(11	)		3,012			3,001
Depreciation on investments		—		(50	)		14			—			(36	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		—			—			—			—
Balance March 31, 2013		—		(7,894	)		47			36,769			28,922
Net change in unrealized
Appreciation on investments		—		—			505			2,853			3,358
Depreciation on investments		—		(66	)		273			—			207
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		—			—			—			—
Balance June 30, 2013		—		(7,960	)		825			39,622			32,487
Net change in unrealized
Appreciation on investments		—		—			197			475			672
Depreciation on investments		—		277			(654	)		—			(377	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		234			365			—			599
Balance September 30, 2013	$	—	($	7,449	)	$	733		$	40,097		$	33,381

Page 11 of 74

The table below summarizes components of unrealized and realized gains and losses in the investment portfolio for the three and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2014			2013			2014			2013
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	($	495	)	$	197		$	244		$	691
Unrealized depreciation		(614	)		(377	)		(800	)		(207	)
Net unrealized appreciation on investment in Medallion Bank and other controlled subsidiaries		3,382			1,684			9,115			3,590
Realized gains		—			—			—			—
Realized losses		99			599			1,099			599
Unrealized gains (losses) on foreclosed properties and other assets		(713	)		475			(523	)		6,340
Total	$	1,659		$	2,578		$	9,135		$	11,013
Net realized gains (losses) on investments
Realized gains	$	—		$	—		$	—		$	—
Realized losses		(99	)		(599	)		(1,099	)		(599	)
Other gains		—			—			49			—
Direct recoveries (chargeoffs)		(94	)		3			(1	)		84
Realized losses on foreclosed properties and other assets		—			—			—			—
Total	($	193	)	($	596	)	($	1,051	)	($	515	)

The following table provides additional information on attributes of the nonperforming loan portfolio as of September 30, 2014, December 31, 2013, and September 30, 2013.

(Dollars in thousands)	Recorded Investment  (1)		Unpaid Principal Balance		Average Recorded Investment
September 30, 2014
Medallion	$	—	$	—	$	—
Commercial (2) (3)		11,256		19,216		11,500
December 31, 2013
Medallion		—		—		—
Commercial (2) (3)		16,144		23,322		18,950
September 30, 2013
Medallion		—		—		—
Commercial (2) (3)		17,619		26,331		19,652

(1) As of September 30, 2014, December 31, 2013, and September 30, 2013, $7,434, $6,844, and $7,359 of unrealized depreciation had been recorded as a valuation allowance on these commercial loans.

(2) Interest income of $9 and $20 was recognized in the three and nine months ended September 30, 2014, compared to $2 and $61 for the comparable 2013 periods on these commercial loans.

(3) Included in the unpaid principal balance is unearned paid in-kind interest on nonaccrual loans of $7,960, $7,178, and $8,712 which is included in the nonaccrual disclosures in the section titled “Investment Transactions and Income Recognition” on page 10 as of September 30, 2014, December 31, 2013, and September 30, 2013.

The following tables show the aging of medallion and commercial loans as of September 30, 2014 and December 31, 2013.

September 30, 2014	Days Past Due												Recorded Investment > 90 Days and Accruing
(Dollars in thousands)	31 - 60		61 - 90		91 +		Total		Current		Total
Medallion loans	$	2,432	$	227	$	—	$	2,659	$	300,521	$	303,180		$—
Commercial loans
Secured mezzanine		510		—		2,018		2,528		51,737		54,265		—
Asset-based receivable		—		—		304		304		2,767		3,071		—
Other secured commercial		20		260		—		280		14,761		15,041		—
Total commercial loans		530		260		2,322		3,112		69,265		72,377		—
Total	$	2,962	$	487	$	2,322	$	5,771	$	369,786	$	375,557	$	—

December 31, 2013	Days Past Due												Recorded Investment > 90 Days and Accruing
(Dollars in thousands)	31 - 60		61 - 90		91 +		Total		Current		Total
Medallion loans	$	252	$	171	$	—	$	423	$	297,195	$	297,618	$	—
Commercial loans
Secured mezzanine		—		1,512		2,018		3,530		42,570		46,100		—
Asset-based receivable		—		—		494		494		7,309		7,803		—
Other secured commercial		51		—		—		51		13,285		13,336		—
Total commercial loans		51		1,512		2,512		4,075		63,164		67,239		—
Total	$	303	$	1,683	$	2,512	$	4,498	$	360,359	$	364,857	$	—

Page 12 of 74

A third party finance company sold various participations in asset based loans to Medallion Business Credit and Medallion Bank. In April 2013 the aggregate balance of the participations was approximately $13.8 million, $12.9 million of which were held by Medallion Bank. That amount was divided between seven separate borrowers operating in a variety of industries. In April 2013, the third party finance company became the subject of an involuntary bankruptcy petition filed by its bank lenders. Among other things, the bank lenders alleged that the third party finance company fraudulently misrepresented its borrowing availability under its credit facility with the bank lenders and are seeking the third party finance company’s liquidation. In May 2013, the bankruptcy court presiding over the third party finance company’s case entered an order converting the involuntary chapter 7 case to a chapter 11 case. The Company and Medallion Bank have placed these loans on nonaccrual, and reversed interest income. In addition, the Company and Medallion Bank have established valuation allowances against the outstanding balances. On May 31, 2013, the Company and Medallion Bank commenced an adverse proceeding against the third party finance company and the bank lenders seeking declaratory judgment that the Company’s and Medallion Bank’s loan participations are true participations and not subject to the bankruptcy estate or to the bank lender’s security interest in the third party finance company’s assets. The third party finance company and bank lenders are contesting the Company’s and Medallion Bank’s position. In April 2014, the Company and Medallion Bank received a decision from the court granting summary judgment in their favor with respect to the issue of whether the Company’s and Medallion Bank’s loan participations are true participations. The remaining issues are still being litigated. Although the Company and Medallion Bank believe the claims raised by the third party finance company and the bank lenders are without merit and will vigorously defend against them, the Company and Medallion Bank cannot at this time predict the outcome of this litigation or determine their potential exposure. At September 30, 2014, five of the seven secured borrowers had refinanced their loans in full with third parties, and the related proceeds are held in escrow pending resolution of the bankruptcy proceedings. One loan was charged off in September 2014. The one remaining loan is still outstanding. The balances related to the paid off loans have been reclassified to other assets on the consolidated balance sheet. The table below summarizes these receivables and their status with the Company and Medallion Bank as of September 30, 2014.

(Dollars in thousands)	The Company			Medallion Bank			Total
Loans outstanding	$	289		$	2,291		$	2,580
Loans charged off (1)		(190	)		(940	)		(1,130	)
Valuation allowance		(50	)		(675	)		(725	)
Net loans outstanding		49			676			725
Other receivables		560			10,642			11,202
Valuation allowance		(168	)		(3,193	)		(3,361	)
Net other receivables		392			7,449			7,841
Total net outstanding		441			8,125			8,566
Income foregone in 2014		25			36			61
Total income foregone	$	49		$	72		$	121

(1) The income foregone on the charged off loan was $20 for the Company and $96 for Medallion Bank.

The Company did not enter into any troubled debt restructurings during the quarter and nine months ended September 30, 2014 and 2013.

Goodwill

In accordance with ASC Topic 350, “Intangibles – Goodwill and Other,” the Company has determined that it is more likely than not that the relevant reporting unit’s fair value is greater than its carrying amount as of September 30, 2014 and December 31, 2013, and that impairment testing of goodwill is not required. The results of this evaluation demonstrated no impairment in goodwill for any period evaluated, and management believes, and the Board of Directors concurs, that there is no impairment as of September 30, 2014. The Company conducts annual, and if necessary, more frequent, appraisals of its goodwill, and will recognize any impairment in the period any impairment is identified as a charge to operating expenses.

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $40,000 and $43,000 for the quarters ended September 30, 2014 and 2013, and was $122,000 and $140,000 for the comparable nine months.

Page 13 of 74

Deferred Costs

Deferred financing costs, included in other assets, represents costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements. Amortization expense was $72,000 and $248,000 for the quarters ended September 30, 2014 and 2013, and was $232,000 and $730,000 for the comparable nine months. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the balance sheet for all of these purposes were $1,734,000, $1,506,000, and $1,657,000 as of September 30, 2014, December 31, 2013, and September 30, 2013.

Federal Income Taxes

The Company and each of its major subsidiaries other than Medallion Bank and Medallion Funding LLC (the RIC subsidiaries) have qualified to be treated for federal income tax purposes as regulated investment companies (RICs) under the Internal Revenue Code of 1986, as amended (the Code). As RICs, the Company and each of the RIC subsidiaries are not subject to US federal income tax on any gains or investment company taxable income (which includes, among other things, dividends and interest income reduced by deductible expenses) that it distributes to its shareholders, if at least 90% of its investment company taxable income for that taxable year is distributed. It is the Company’s and the RIC subsidiaries’ policy to comply with the provisions of the Code. The Company’s RIC qualification is determined on an annual basis, and it qualified and filed its federal tax returns as a RIC for 2013 and 2012, and anticipates qualifying and filing as a RIC for 2014. As a result, no provisions for income taxes have been recorded for the three and nine months ended September 30, 2014 and 2013. State and local tax treatment follows the federal model.

The Company has filed tax returns in many states. Federal, New York State, and New York City tax filings of the Company for the tax years 2011 through the present are the more significant filings that are open for examination.

Medallion Bank is not a RIC and is taxed as a regular corporation. Fin Trust, Medallion Funding LLC, and Trust III are not subject to federal income taxation, instead their taxable income is treated as having been earned by the Company.

Net Increase in Net Assets Resulting from Operations per Share (EPS)

Basic earnings per share are computed by dividing net increase in net assets resulting from operations available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period.

The table below shows the calculation of basic and diluted EPS.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2014		2013		2014		2013
Net increase in net assets resulting from operations available to common shareholders	$	6,694	$	6,397	$	20,564	$	19,118
Weighted average common shares outstanding applicable to basic EPS		24,924,433		21,730,116		24,872,230		21,596,054
Effect of dilutive stock options		71,355		206,440		114,008		220,905
Effect of restricted stock grants		122,632		180,237		121,667		149,750
Adjusted weighted average common shares outstanding applicable to diluted EPS		25,118,420		22,116,793		25,107,905		21,966,709
Basic earnings per share	$	0.27	$	0.29	$	0.83	$	0.89
Diluted earnings per share		0.27		0.29		0.82		0.87

Potentially dilutive common shares excluded from the above calculations aggregated 99,000 and 18,000 shares as of September 30, 2014 and 2013.

Stock Compensation

The Company follows FASB Accounting Standard Codification Topic 718 (ASC 718), “Compensation – Stock Compensation”, for its stock option and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options is reflected in net increase in net assets resulting from operations, for any new grants, using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net increase in net assets resulting from operations for any new grants, using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

Page 14 of 74

During the nine months ended September 30, 2014 and 2013, the Company issued 101,113 and 1,393 restricted shares of stock-based compensation awards, and 18,000 and 18,000 shares of other stock-based compensation awards, and recognized $382,000 and $1,112,000, or $0.02 and $0.04 per diluted common share for the 2014 third quarter and nine months, and $366,000 and $1,129,000, or $0.02 and $0.05 per share in the comparable 2013 periods, of non-cash stock-based compensation expense related to the grants. As of September 30, 2014, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,219,000, which is expected to be recognized over the next eleven quarters (see Note 5).

Derivatives

The Company manages its exposure to increases in market rates of interest by periodically purchasing interest rate caps to lock in the cost of funds of its variable-rate debt in the event of a rapid run up in interest rates. The Company entered into contracts to purchase interest rate caps on $230,000,000 of notional value of principal from various multinational banks, with termination dates ranging to September 2017. The caps provide for payments to the Company if various LIBOR thresholds are exceeded during the cap terms. Total cap purchases were generally fully expensed when paid, including $43,000 and $57,000 for the three and nine months ended September 30, 2014, and $41,000 for the nine months ended September 30, 2013, and all are carried at $0 on the balance sheet at September 30, 2014 and December 31, 2013.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current quarter’s presentation. These reclassifications have no effect on the previously reported results of operations.

(3) INVESTMENT IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES

The following table presents information derived from Medallion Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2014			2013			2014			2013
Statement of comprehensive income
Investment income	$	20,661		$	16,637		$	56,342		$	46,603
Interest expense		1,903			1,299			4,977			3,905
Net interest income		18,758			15,338			51,365			42,698
Noninterest income (expense)		91			(5	)		278			139
Operating expenses		5,012			5,138			14,449			13,482
Net investment income before income taxes		13,837			10,195			37,194			29,355
Income tax provision		(4,840	)		(2,736	)		(11,981	)		(8,225	)
Net investment income after income taxes		8,997			7,459			25,213			21,130
Net realized/unrealized losses of Medallion Bank		(2,250	)		(2,420	)		(5,898	)		(8,127	)
Net increase in net assets resulting from operations of Medallion Bank		6,747			5,039			19,315			13,003
Unrealized depreciation on Medallion Bank (1)		(4,066	)		(3,066	)		(10,197	)		(8,697	)
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank		701			(289	)		(3	)		(716	)
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	3,382		$	1,684		$	9,115		$	3,590

(1) Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury.

Page 15 of 74

The following table presents Medallion Bank’s balance sheets and the net investment in other controlled subsidiaries as of September 30, 2014 and December 31, 2013.

(Dollars in thousands)	2014		2013
Loans	$	883,289	$	749,315
Investment securities, at fair value		27,846		24,464
Net investments (1)		911,135		773,779
Cash		20,932		17,467
Other assets, net		24,944		22,568
Due from affiliates		—		—
Total assets	$	957,011	$	813,814
Other liabilities	$	3,022	$	2,249
Due to affiliates		410		866
Deposits and other borrowings, including accrued interest payable		806,676		682,913
Total liabilities		810,108		686,028
Medallion Bank equity (2)		146,903		127,786
Total liabilities and equity	$	957,011	$	813,814
Investment in other controlled subsidiaries	$	7,602	$	7,145
Total investment in Medallion Bank and other controlled subsidiaries	$	127,708		108,623

(1) Included in Medallion Bank’s net investments is $18 and $40 for purchased loan premium at September 30, 2014 and December 31, 2013.

(2) Includes $26,303 of preferred stock issued to the US Treasury under the Small Business Lending Fund Program (SBLF).

The following paragraphs summarize the accounting and reporting policies of Medallion Bank, and provide additional information relating to the tables presented above.

Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. At September 30, 2014 and December 31, 2013, the net premium on investment securities totaled $287,000 and $342,000, and $18,000 and $49,000 was amortized into interest income for the quarter and nine months ended September 30, 2014, and $19,000 and $86,000 was amortized in the comparable 2013 periods.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At September 30, 2014 and December 31, 2013, net loan origination costs were $10,427,000 and $9,553,000. Net amortization expense for the quarter and nine months ended September 30, 2014 was $844,000 and $2,398,000, and was $770,000 and $2,225,000 for the comparable 2013 periods.

Medallion Bank’s policies regarding nonaccrual of medallion and commercial loans are similar to those of the Company. The consumer portfolio has different characteristics compared to commercial loans, typified by a larger number of lower dollar loans that have similar characteristics. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. At September 30, 2014, $2,521,000 or 1% of consumer loans, $1,351,000 or 3% of commercial loans, and no medallion loans were on nonaccrual, compared to $2,266,000 or 1% of consumer loans, $2,291,000 or 4% of commercial loans, and no medallion loans on nonaccrual at December 31, 2013, and $2,185,000 or 1% of consumer loans, $12,933,000 or 20% of commercial loans, and no medallion loans on nonaccrual at September 30, 2013. The amount of interest income on nonaccrual loans that would have been recognized if the loans had been paying in accordance with their original terms was $72,000, $85,000, and $338,000 as of September 30, 2014, December 31, 2013, and September 30, 2013. See also the paragraph and table on page 13 following the delinquency table for a discussion of other past due amounts.

Medallion Bank’s loan and investment portfolios are assessed for collectability on a monthly basis, and a loan loss allowance is established for any realizability concerns on specific investments, and general reserves have also been established for any unknown factors. Adjustments to the value of this portfolio are based on the Company’s own historical loan loss data developed since 2004, adjusted for changes in delinquency trends and other factors as described previously in Note 2.

Medallion Bank raises deposits to fund loan originations. The deposits were raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into pools that are sold to Medallion Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions, and include a brokerage fee depending on the maturity of the deposit, which averages less than 0.20%, and which is capitalized and amortized to interest expense over the life of the respective pool. The total amount capitalized at September 30, 2014 and December 31, 2013 was $2,266,000 and $1,697,000, and $322,000 and $924,000 was amortized to interest expense during the quarter and nine months ended September 30, 2014, and $304,000 and $915,000 was amortized in the comparable 2013 periods. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity.

Page 16 of 74

The outstanding balances of fixed rate borrowings were as follows.

	Payments Due for the Fiscal Year Ending September 30,												September 30,		December 31,		Interest
(Dollars in thousands)	2015		2016		2017		2018		2019		Thereafter		2014		2013		Rate (1)
Deposits and other borrowings	$	303,902	$	203,278	$	145,103	$	102,515	$	51,088	$	—	$	805,886	$	682,337		0.82	%

(1) Weighted average contractual rate as of September 30, 2014.

Medallion Bank is subject to various regulatory capital requirements administered by the FDIC and State of Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on Medallion Bank’s and the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Medallion Bank must meet specific capital guidelines that involve quantitative measures of Medallion Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Medallion Bank’s capital amounts and classification are also subject to qualitative judgments by Medallion Bank regulators about components, risk weightings, and other factors.

FDIC-insured banks, including Medallion Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, Medallion Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with the Company or its affiliates.

Quantitative measures established by regulation to ensure capital adequacy require Medallion Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting Medallion Bank’s application for federal deposit insurance, the FDIC ordered that the leverage capital ratio (Tier 1 capital to average assets) be not less than 15%, and that an adequate allowance for loan losses be maintained. As a result, to facilitate maintenance of the capital ratio requirement and to provide the necessary capital for continued growth, the Company periodically makes capital contributions to Medallion Bank, including $10,000,000 in 2014 and $5,000,000 in 2013. Separately, Medallion Bank declared dividends to the Company of $4,000,000 and $10,000,000 in the 2014 third quarter and nine months, and $3,000,000 and $8,500,000 in the comparable 2013 periods.

On February 27, 2009 and December 22, 2009, Medallion Bank issued, and the US Treasury purchased under the TARP Capital Purchase Program (the CPP) Medallion Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011, Medallion Bank issued, and the US Treasury purchased 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E) for an aggregate purchase price of $26,303,000 under the Small Business Lending Fund Program (SBLF). The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. The Bank pays a dividend rate of 1% on the Series E.

The following table represents Medallion Bank’s actual capital amounts and related ratios as of September 30, 2014 and December 31, 2013, compared to required regulatory minimum capital ratios and the ratio required to be considered well capitalized. As of September 30, 2014, Medallion Bank meets all capital adequacy requirements to which it is subject, and is well-capitalized.

	Regulatory
(Dollars in Thousands)	Minimum			Well-capitalized			September 30, 2014			December 31, 2013
Tier 1 capital		—			—		$	146,242		$	127,512
Total capital		—			—			157,968			137,494
Average assets		—			—			933,488			807,331
Risk-weighted assets		—			—			931,737			792,129
Leverage ratio (1)		4	%		5	%		15.7	%		15.8	%
Tier 1 capital ratio (2)		4			6			15.7			16.1
Total capital ratio (2)		8			10			17.0			17.4

(1) Calculated by dividing Tier 1 capital by average assets.

(2) Calculated by dividing Tier 1 or total capital by risk-weighted assets.

Page 17 of 74

(4) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows.

	Payments Due for the Fiscal Year Ending September 30,												September 30,		December 31,		Interest
(Dollars in thousands)	2015		2016		2017		2018		2019		Thereafter		2014		2013		Rate (1)
Revolving lines of credit	$	—	$	—	$	127,633	$	—	$	—	$	—	$	127,633	$	131,990		1.84	%
Notes payable to banks		28,699		56,917		27,075		—		—		—		112,691		87,983		2.52	%
SBA debentures		6,500		—		—		—		3,000		52,985		62,485		61,985		3.98	%
Preferred securities		—		—		—		—		—		33,000		33,000		33,000		2.36	%
Total	$	35,199	$	56,917	$	154,708	$	—	$	3,000	$	85,985	$	335,809	$	314,958		2.52	%

(1) Weighted average contractual rate as of September 30, 2014.

(A) REVOLVING LINES OF CREDIT

In December 2008, Trust III entered into a revolving line of credit agreement with DZ Bank, to provide up to $200,000,000 of financing through a commercial paper conduit to acquire medallion loans from MFC (DZ line), which was extended in December 2013 until December 2016, and the line reduced to $150,000,000, and of which $127,633,000 was outstanding at September 30, 2014. Borrowings under Trust III’s revolving line of credit are collateralized by Trust III’s assets. MFC is the servicer of the loans owned by Trust III. The DZ line includes a borrowing base covenant and rapid amortization in certain circumstances. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. The interest rate with the 2013 extension is a pooled short-term commercial paper rate which approximates LIBOR (30 day LIBOR was 0.16% at September 30, 2014) plus 1.65%, and previously was the lesser of a pooled short-term commercial paper rate, plus 0.95%.

(B) SBA DEBENTURES

In August 2014, the SBA approved $10,000,000 of commitments for MCI for a four year term and a 1% fee, which was paid. In 2013, the SBA approved $23,000,000 and $5,000,000 of commitments for FSVC and MCI, respectively, for a four year term and a 1% fee, which was paid, and of which FSVC issued $23,000,000 of debentures, $18,150,000 of which was used to repay maturing debentures, and MCI issued $2,500,000 of debentures. In September 2010, the SBA approved a $5,000,000 commitment for MCI to issue additional debentures during a four year period upon payment of a 1% fee. The SBA also approved a $7,485,000 commitment for FSVC to issue additional debentures during a four year period upon payment of a 1% fee, for the purpose of repaying $7,485,000 of debentures which matured in September 2011, which were issued on March 1, 2011 and used to prepay the September 2011 maturing debentures. In September 2006, the SBA approved a $6,000,000 commitment for FSVC to issue additional debentures to the SBA during a four year period upon payment of a 1% fee and the infusion of $2,000,000 of additional capital. In March 2006, the SBA approved a $13,500,000 commitment for MCI to issue additional debentures to the SBA during a four year period upon payment of a 1% fee and the infusion of $6,750,000 of additional capital. In November 2003, the SBA approved an $8,000,000 commitment for FSVC, and during 2001, the SBA approved $36,000,000 each in commitments for FSVC and MCI. As of September 30, 2014, $143,985,000 of commitments had been fully utilized, $6,000,000 of remaining commitments were available, and $62,485,000 was outstanding.

The notes are collateralized by substantially all of FSVC’s and MCI’s assets, and are subject to the terms and conditions of agreements with the SBA which, among other things, restrict stock redemptions, disposition of assets, new indebtedness, distributions, and changes in management, ownership, investment policy, or operations. The debentures have been issued in various tranches for terms of ten years with interest payable semiannually.

(C) NOTES PAYABLE TO BANKS/OTHER LENDERS

The Company and its subsidiaries have entered into (i) note agreements and (ii) participation agreements with a variety of local and regional banking institutions over the years, as well as other non-bank lenders. The notes are typically secured by various assets of the underlying borrower. The Company believes the participation agreements represent legal true sales of the loans to the lender, but for accounting purposes these participations are treated as financings, and are included in funds borrowed as shown on the Company’s consolidated balance sheets.

Page 18 of 74

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of September 30, 2014.

(Dollars in thousands)

Borrower

# of Lenders / Notes

Note Dates

Maturity Dates

Type

Note Amounts

Balance Outstanding at September 30, 2014

Monthly Payment

Average Interest Rate at September 30, 2014

Interest Rate Index(1)

The Company

8/8

4/11 - 9/14

1/15 - 7/16

Revolving line of credit secured by pledged loans

$

142,500

$

84,000

Interest only

2.32% (includes unused fee)

Various(2)

Medallion Chicago

3/28

11/11 - 12/11

12/16

Term loans secured by owned Chicago medallions(3)

25,708

24,375

$121 principal & interest

3.12%

N/A

The Company

1/1

1/11

11/16

Participated loans treated as financings

3,915

3,909

Proportionate to the payments received on the participated loans

2.50%

N/A

FSVC

3/5

2/12 - 4/14

2/15 - 4/17

Participated loans treated as financings

256

252

Proportionate to the payments received on the participated loans

7.24%

N/A

MFC

2/3

2/13 - 3/13

2/16 – 3/16

Participated loans treated as financings

160

155

Proportionate to the payments received on the participated loans

9.79%

N/A

MFC

1/1

1/05

5/15

Revolving line of credit secured by pledged loans

8,000

0

Interest only

0%

Prime + 0.50%

$

180,539

$

112,691

(1) At September 30, 2014, 30 day LIBOR was 0.16%, 360 day LIBOR was 0.58%, and the prime rate was 3.25%.

(2) $92,500 of these lines can also be used by MFC ($41,500 which is available) of which $30,000 of such usage would be guaranteed by the Company. Interest rates on these lines range from LIBOR plus 2% to LIBOR plus 2.125%, and all contain prime rate options from prime minus 0.25% to prime, and one note has a floor, and three notes have an unused fee.

(3) $15,018 guaranteed by the Company.

(D) PREFERRED SECURITIES

In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bore a fixed rate of interest of 7.68% to September 2012, and thereafter a variable rate of interest of 90 day LIBOR (0.24% at September 30, 2014) plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2,000,000 of the preferred securities were repurchased from a third party investor. At September 30, 2014, $33,000,000 was outstanding on the preferred securities.

(E) COVENANT COMPLIANCE

In the normal course of business, the Company and its subsidiaries enter into agreements, or are subject to regulatory requirements, that result in loan restrictions. Certain of the Company’s debt agreements contain restrictions that require the Company to maintain certain financial ratios, including debt to equity and minimum net worth. In addition, the Company’s wholly-owned subsidiary Medallion Bank is subject to various regulatory requirements (see Note 3).

(5) STOCK OPTIONS AND RESTRICTED STOCK

The Company has a stock option plan (2006 Stock Option Plan) available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of Directors on February 15, 2006 and shareholders on June 16, 2006, provides for the issuance of a maximum of 800,000 shares of common stock of the Company. At September 30, 2014, 153,673 shares of the Company’s common stock remained available for future grants. The 2006 Stock Option Plan is administered by the Compensation Committee of the Board of Directors. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. The term and vesting periods of the options are determined by the Compensation Committee, provided that the maximum term of an option may not exceed a period of ten years.

The Company’s Board of Directors approved the 2009 Employee Restricted Stock Plan (the Employee Restricted Stock Plan) on April 16, 2009. The Employee Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC and approval of the Employee Restricted Stock Option Plan by the Company’s shareholders on June 11, 2010. The terms of the Employee Restricted Stock Plan provide for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 800,000 shares of the Company’s common stock are issuable under the Employee Restricted Stock Plan, and as of September 30, 2014, 390,881 shares of the Company’s common stock remained available for future grants. Awards under the 2009 Employee Plan are subject to certain limitations as set forth in the Employee Restricted Stock Plan. The Employee Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the Employee Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the Employee Restricted Stock Plan, whichever first occurs.

Page 19 of 74

The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan (the Amended Director Plan) on April 16, 2009, which was approved by the Company’s shareholders on June 5, 2009, and on which exemptive relief to implement the Amended Director Plan was received from the SEC on July 17, 2012. A total of 200,000 shares of the Company’s common stock are issuable under the Amended Director Plan, and as of September 30, 2014, 64,000 shares of the Company’s common stock remained available for future grants. Under the Amended Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the Amended Director Plan, the Company will grant options to purchase 9,000 shares of the Company’s common stock to an Eligible Director upon election to the Board of Directors, with an adjustment for directors who are elected to serve less than a full term. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options may not exceed ten years.

The Company’s 1996 Stock Option Plan and 1996 Director Plan terminated on May 21, 2006 and no additional shares are available for future issuance. At September 30, 2014, 453,821 options on the Company’s common stock were outstanding under the 1996 and 2006 plans, of which 420,154 options were exercisable, and there were 238,054 unvested shares of the Company’s common stock outstanding under the Employee Restricted Stock Plan.

The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $1.71 and $1.41 for the nine months ended September 30, 2014 and 2013. The following assumption categories are used to determine the value of any option grants.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014			2013
Risk free interest rate		NA		NA		1.84	%		1.24	%
Expected dividend yield		NA		NA		6.98	%		8.07	%
Expected life of option in years (1)		NA		NA		6.00			6.00
Expected volatility (2)		NA		NA		30.00	%		30.00	%

(1) Expected life is calculated using the simplified method.

(2) We determine our expected volatility based on our historical volatility.

The following table presents the activity for the stock option program under the 1996 and 2006 Stock Option Plans and the Amended Director Plan for the 2014 quarters and the 2013 full year.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2012		971,500		$	3.50-13.06	$	9.80
Granted		18,000			13.84		13.84
Cancelled		(518	)		9.22		9.22
Exercised(1)		(410,765	)		3.50-13.06		9.90
Outstanding at December 31, 2013		578,217			7.17-13.84		9.85
Granted		—			—		—
Cancelled		—			—		—
Exercised (1)		(36,966	)		7.17-11.21		9.04
Outstanding at March 31, 2014		541,251			7.17-13.84		9.91
Granted		18,000			13.53		13.53
Cancelled		(50,000	)		8.51		8.51
Exercised (1)		(55,000	)		7.17-9.07		8.90
Outstanding at June 30, 2014		454,251			7.49-13.84		10.33
Granted		—			—		—
Cancelled		—			—		—
Exercised (1)		(430	)		9.22		9.22
Outstanding at September 30, 2014 (2)		453,821		$	7.49-13.84	$	10.33
Options exercisable at September 30, 2014 (2)		420,154		$	7.49-13.84	$	10.08

(1) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $1,000 and $452,000 for the 2014 third quarter and nine months, and was $402,000 and $1,682,000 for the comparable 2013 periods.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2014 and the related exercise price of the underlying options, was $763,000 for outstanding options and $763,000 for exercisable options as of September 30, 2014. The remaining contractual life was 3.69 years for outstanding options and 3.26 years for exercisable options at September 30, 2014.

Page 20 of 74

The following table presents the activity for the restricted stock program under the 2009 Employee Restricted Stock Plan for the 2014 quarters and the 2013 full year.

	Number of Shares			Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2012		300,317		$	7.99-12.55	$	10.76
Granted		11,742			13.12-15.61		15.31
Cancelled		(4,088	)		7.99-13.12		10.12
Vested (1)		(73,703	)		11.08-12.55		11.56
Outstanding at December 31, 2013		234,268			7.99-15.61		10.72
Granted		101,113			13.46		13.46
Cancelled		—			—		—
Vested (1)		(96,987	)		7.99-13.12		8.97
Outstanding at March 31, 2014		238,394			11.08-15.61		12.61
Granted		—			—		—
Cancelled		(258	)		11.08-15.61		11.92
Vested (1)		—			—		—
Outstanding at June 30, 2014		238,136			11.08-15.61		12.60
Granted		—			—		—
Cancelled		(82	)		11.53-15.61		14.22
Vested (1)		—			—		—
Outstanding at September 30, 2014 (2)		238,054		$	11.08-15.61	$	12.60

(1) The aggregate fair value of the restricted stock vested was $0 and $1,397,000 for the 2014 third quarter and nine months, and was $0 and $401,000 for the comparable 2013 periods.

(2) The aggregate fair value of the restricted stock was $2,776,000 as of September 30, 2014. The remaining vesting period was 1.60 years at September 30, 2014.

The following table presents the activity for the unvested options outstanding under the plans for the 2014 quarters.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2013		21,667		$	11.53-13.84	$	13.54
Granted		—			—		—
Cancelled		—			—		—
Vested		—			—		—
Outstanding at March 31, 2014		21,667			11.53-13.84		13.54
Granted		18,000			13.53		13.53
Cancelled		—			—		—
Vested		(6,000	)		13.84		13.84
Outstanding at June 30, 2014		33,667			11.53-13.84		13.48
Granted		—			—		—
Cancelled		—			—		—
Vested		—			—		—
Outstanding at September 30, 2014		33,667		$	11.53-13.84	$	13.48

The intrinsic value of the options vested was $0 for the 2014 third quarter and nine months.

(6) SEGMENT REPORTING

The Company has one business segment, its lending and investing operations. This segment originates and services medallion, secured commercial, and consumer loans, and invests in both marketable and nonmarketable securities.

Page 21 of 74

(7) NONINTEREST INCOME AND OTHER OPERATING EXPENSES

The major components of noninterest income were as follows.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2014		2013		2014		2013
Prepayment fees	$	69	$	86	$	120	$	451
Servicing fees		40		44		129		152
Late charges		12		24		28		95
Management fees		—		—		75		—
Other		15		27		83		106
Total noninterest income	$	136	$	181	$	435	$	804

Prepayment fees decreased, reflecting larger than normal fees received from loan prepayments a year ago. The decreases in servicing fees in 2014 reflected the fluctuations in the servicing and loan origination activities performed for Medallion Bank. Late charges declined as delinquencies improved in all business units. Management fees initiated on a portfolio investment company in late 2013 were also earned in the 2014 first quarter.

The major components of other operating expenses were as follows.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2014		2013		2014		2013
Travel, meals, and entertainment	$	202	$	196	$	663	$	606
Miscellaneous taxes		115		30		197		83
Directors’ fees		108		101		317		304
Computer expense		95		28		187		77
Office expense		47		47		172		147
Insurance		45		51		158		141
Depreciation and amortization		40		43		122		140
Bank charges		33		31		92		99
Investment management expenses		32		39		99		118
Telephone		16		30		85		91
Other expenses		149		54		228		180
Total other operating expenses	$	882	$	650	$	2,320	$	1,986

Miscellaneous taxes, which include franchise, excise, road and other governmental assessments, were higher in 2014, and also reflected a tax benefit recognized in 2013. Computer expense increased due to higher costs regarding system upgrades and the maintenance of data centers. Other operating expenses were higher reflecting the prior year’s expense reduction efforts and the reversals of accrued liabilities, partially offset by higher expense reimbursements from Medallion Bank.

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(8) SELECTED FINANCIAL RATIOS AND OTHER DATA

The following table provides selected financial ratios and other data.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2014			2013			2014			2013
Net share data
Net asset value at the beginning of the period	$	11.01		$	10.17		$	10.95		$	9.99
Net investment income		0.21			0.20			0.50			0.39
Income tax (provision) benefit		—			—			—			—
Net realized losses on investments		(0.01	)		(0.03	)		(0.04	)		(0.02	)
Net change in unrealized appreciation on investments		0.07			0.12			0.36			0.50
Net increase in net assets resulting from operations		0.27			0.29			0.82			0.87
Issuance of common stock		0.02			0.01			(0.01	)		0.04
Repurchase of common stock		—			—			—			—
Distributions of net investment income		(0.24	)		(0.09	)		(0.55	)		(0.31	)
Distributions of net realized gains on investments		—			—			—			—
Return of capital		0.00			(0.13	)		(0.16	)		(0.35	)
Total distributions		(0.24	)		(0.22	)		(0.71	)		(0.66	)
Other		(0.01	)		—			—			0.01
Total increase in net asset value		0.04			0.08			0.10			0.26
Net asset value at the end of the period (1)	$	11.05		$	10.25		$	11.05		$	10.25
Per share market value at beginning of period	$	12.46		$	13.91		$	14.35		$	11.74
Per share market value at end of period		11.66			14.88			11.66			14.88
Total return (2)		(18	%)		34	%		(19	%)		44	%
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	278,031		$	225,863		$	278,031		$	225,863
Average net assets	$	277,265		$	224,125		$	276,068		$	220,502
Total expense ratio (3) (4)		9.00	%		9.21	%		8.84	%		10.56	%
Operating expenses to average net assets (4)		5.82			5.50			5.79			6.75
Net investment income after income taxes to average net assets(4)		7.48			7.82			6.04			5.23

(1) Includes $0.00 and $0.00 of undistributed net investment income per share and $0.00 and $0.00 of undistributed net realized gains per share as of September 30, 2014 and 2013.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,541 and $1,507, and operating expenses of $1,459 and $1,753, which formerly were the Company’s were now MSC’s for the three months ended September 30, 2014 and 2013, and were $4,435 and $4,483 of servicing fee income, and $4,354 and $5,472 of operating expenses for the comparable nine months. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11%, 7.90%, and 7.60% in the 2014 quarter, 12%, 8.61%, and 7.38% in the 2013 quarter, 11%, 7.90%, and 6.08% in the 2014 nine months, and 14%, 10%, and 4.63% in the 2013 nine months.

(9) RECENTLY ISSUED ACCOUNTING STANDARDS

In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40)”. ASU 2014-15 provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of a company’s ability to continue as a going concern within one year of the date the financial statements are issued. The company must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. As the update impacts disclosures only, it will have no impact on the Company’s financial condition or results of operations.

In August 2014, the FASB issued ASU 2014-14, “Receivables – Troubled Debt Restructuring by Creditors (Subtopic 310-40)”. The update requires that certain government-guaranteed mortgage loans, including those guaranteed by the FHA, be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure of loans that meet these criteria, a separate receivable should be recorded based on the amount of the loan balance expected to be recovered from the guarantor. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company does not make government-guaranteed mortgage loans, and as a result believes the adoption of the standard will have no impact on its financial condition or results of operations.

In August 2014, the FASB issued ASU 2014-13, “Consolidation – (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing”. ASU 2014-13 provides an alternative to Topic 820 for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity to eliminate any differences between their respective fair values. In the event a reporting entity does not elect to utilize the measurement alternative, the update clarifies

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that the fair value of the financial assets and liabilities of the consolidated collateralized financing entity should be measured using the requirements of Topic 820 and any differences should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). This update is effective for periods beginning after December 15, 2015. As a RIC, the Company already follows Topic 820 in its fair valuation processes, and as a result does not believe this update will have an impact on its financial condition or results of operations.

In June 2014, FASB issued Accounting Standards Update (ASU) 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite service Period (a consensus of the FASB Emerging Issues Task Force).” The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and would be accounted for under existing guidance in Topic 718. The update is effective for periods beginning after December 15, 2015. The Company does not believe the adoption of the standard will have a material impact on its financial condition or results of operations.

In June 2014, FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Purchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU 2014 changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The update also requires new disclosures about transfers that are accounted for as sales in transactions that are economically similar to repurchase agreements and increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The update is effective for periods beginning after December 15, 2014. The Company does not engage in these types of transactions, and as a result, does not believe that the adoption of the standard will have any impact on its financial condition or results of operations.

In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The update is effective for annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method nor has it determined the effect of the standard on its financial statements and related disclosures.

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the requirements for reporting discontinued operations, requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position, and requires additional disclosures about discontinued operations. Additionally, the update expands the disclosures about an entity’s significant continuing involvement with a discontinued operation. The update is to be applied prospectively to annual periods beginning on or after December 15, 2014. The Company does not believe the adoption of the standard will have any impact on its financial condition or results of operations.

(10) RELATED PARTY TRANSACTIONS

Certain directors, officers, and shareholders of the Company are also directors and officers of its wholly-owned subsidiaries, MFC, MCI, FSVC, and Medallion Bank, as well as of certain portfolio investment companies. Officer salaries are set by the Board of Directors of the Company.

A member of the Board of Directors of the Company since 1996 is also of counsel in the Company’s primary law firm. Amounts paid to the law firm were $19,000 and $2,000 for the 2014 and 2013 third quarters, and were $119,000 and $278,000 for the comparable nine months.

Jeffrey Rudnick, the son of one of the Company’s directors, is an officer of LAX Group, LLC (LAX), one of the Company’s portfolio companies. Mr. Rudnick receives a salary from LAX of $162,000 per year, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year end bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200.

At September 30, 2014, December 31, 2013, and September 30, 2013, MSC serviced $428,931,000, $402,801,000, and $413,035,000 of loans for Medallion Bank. Included in net investment income were amounts as described in the table below that were received from Medallion Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf.

The Company has assigned its servicing rights to the Medallion Bank portfolio to MSC, a wholly-owned unconsolidated portfolio investment. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from Medallion Bank by MSC. As a result, $1,541,000 and $4,435,000 of servicing fee income was earned by MSC in the 2014 third quarter and nine months, and $1,507,000 and $4,483,000 was earned in the comparable 2013 periods.

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The following table summarizes the net revenues received from Medallion Bank.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2014		2013		2014		2013
Reimbursement of operating expenses	$	111	$	90	$	341	$	243
Loan origination fees		59		88		222		248
Servicing fees		4		4		11		14
Total other income	$	174	$	182	$	574	$	505

(11) FAIR VALUE OF FINANCIAL INSTRUMENTS

FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet commitments, if practicable. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. Fair value estimates that were derived from broker quotes cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.

(a) Investments - The Company’s investments are recorded at the estimated fair value of such investments.

(b) Floating rate borrowings - Due to the short-term nature of these instruments, the carrying amount approximates fair value.

(c) Commitments to extend credit - The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At September 30, 2014 and December 31, 2013, the estimated fair value of these off-balance-sheet instruments was not material.

(d) Fixed rate borrowings - The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

	September 30, 2014				December 31, 2013
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Investments	$	503,294	$	503,294	$	473,157	$	473,157
Cash (1)		58,257		58,257		52,172		52,172
Accrued interest receivable (2)		942		942		907		907
Financial liabilities
Funds borrowed (2)		335,809		335,809		314,958		314,958
Accrued interest payable (2)		1,303		1,303		1,124		1,124

(1) Categorized as level 1 within the fair value hierarchy.

(2) Categorized as level 3 within the fair value hierarchy.

(12) FAIR VALUE OF ASSETS AND LIABILITIES

The Company follows the provisions of FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. The Company accounts for substantially all of its financial instruments at fair value or considers fair value in its measurement, in accordance with the accounting guidance for investment companies. See Note 2 sections “Fair Value of Assets and Liabilities” and “Investment Valuation” for a description of the Company’s valuation methodology which is unchanged during 2014.

In accordance with FASB ASC 820, the Company has categorized its assets and liabilities measured at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). The Company’s assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

As required by FASB ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a level 3 fair value measurement may include inputs that are observable (level 1 and 2) and unobservable (level 3). Therefore gains and losses for such assets and liabilities categorized within the level 3 table below may include changes in fair value that are attributable to both observable inputs (level 1 and 2) and unobservable inputs (level 3).

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Assets and liabilities measured at fair value, recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives, most US Government and agency securities, and certain other sovereign government obligations).

Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

A) Quoted prices for similar assets or liabilities in active markets (for example, restricted stock);

B) Quoted price for identical or similar assets or liabilities in non-active markets (for example, corporate and municipal bonds, which trade infrequently);

C) Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and

D) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives).

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the assets or liability (examples include certain private equity investments, certain residential and commercial mortgage-related assets (including loans, securities, and derivatives).

A review of fair value hierarchy classification is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain assets or liabilities. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in/out of the level 3 category as of the beginning of the quarter in which the reclassifications occur. The following paragraphs describe the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis.

Medallion loans and the asset-based portion of the commercial loan portfolio are primarily collateral-based lending, whereby the collateral value exceeds the amount of the loan, providing sufficient excess collateral to protect against losses to the Company. As a result, the initial valuation assessment is that as long as the loan is current and performing, its fair value approximates the par value of the loan. To the extent a loan becomes nonperforming, the collateral value has almost always been adequate to result in a complete recovery. In a case where the collateral value was inadequate, an unrealized loss would be recorded to reflect any shortfall. Collateral values for medallion loans are typically obtained from transfer prices reported by the regulatory agency in a particular local market (e.g. New York City Taxi and Limousine Commission). Collateral values for asset based loans are confirmed through daily borrowing base analysis of borrower availability, confirmations obtained from a borrower’s underlying customers, and field examinations by us or third parties engaged by us. These portfolios are generally at very low loan to collateral value ratios, and as a result, are generally not highly sensitive to changes in collateral values as only a very significant downward movement would have an impact on the Company’s valuation analysis, potentially resulting in a significantly lower fair market value measurement.

The mezzanine and other secured commercial portions of the commercial loan portfolio are a combination of cash flow and collateral based lending. The initial valuation assessment is that as long as the loan is current and performing, its fair value approximates the par value of the loan. If a loan becomes nonperforming, an evaluation is performed which considers and analyzes a variety of factors which may include the financial condition and operating performance of the borrower, the adequacy of the collateral, individual credit risks, historical loss experience, the relationships between current and projected market rates and portfolio rates of interest and maturities, as well as general market trends for businesses in the same industry. Since each individual nonperforming loan has its own unique attributes, the factors analyzed, and their relative importance to each valuation analysis, differ between each asset, and may differ from period to period for a particular asset. The valuation is highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changes significantly from one period to another, that change could result in a significantly lower or higher fair market value measurement. For example, if a borrower’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have a material impact on the valuation in the current period.

The investment in Medallion Bank is subject to a thorough valuation analysis as described previously, and the Company also receives an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value on an annual basis. The Company determines whether any factors give rise to a valuation different than recorded book

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value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors has determined that Medallion Bank has little value beyond its recorded book value. As a result of this valuation process, the Company uses the actual results of operations as the best estimate of changes in fair value, and records the results as a component of unrealized appreciation (depreciation) on investments.

Investments in controlled subsidiaries, other than Medallion Bank, and equity investments are valued similarly, while also considering available current market data, including relevant and applicable market trading and transaction comparables, the nature and realizable value of any collateral, applicable interest rates and market yields, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, and borrower financial analysis, among other factors. As a result of this valuation process, the Company uses the actual results of operations of the controlled subsidiaries as the best estimate of changes in fair value, in most cases, and records the results as a component of unrealized appreciation (depreciation) on investments. For the balance of controlled subsidiary investments and equity positions, the result of the analysis results in changes to the value of the position if there is clear evidence that it’s value has either decreased or increased in light of the specific facts considered for each investment. The valuation is highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changes significantly from one period to another, that change could result in a significantly lower or higher fair market value measurement. For example, if an investee’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have a material impact on the valuation in the current period.

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013.

2014 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Medallion loans	$	—	$	—	$	303,502	$	303,502
Commercial loans		—		—		64,256		64,256
Investment in Medallion Bank and other controlled subsidiaries		—		—		127,708		127,708
Equity investments		214		—		7,614		7,828
Foreclosed properties		—		48,739		—		48,739
Other assets		—		—		392		392
2013 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Medallion loans	$	—	$	—	$	297,861	$	297,861
Commercial loans		—		—		60,168		60,168
Investment in Medallion Bank and other controlled subsidiaries		—		—		108,623		108,623
Equity investments		280		—		6,225		6,505
Foreclosed properties		—		50,403		—		50,403
Other assets		—		9,584		392		9,976

Included in level 3 investments in Medallion Bank and other controlled subsidiaries is the investment in Medallion Bank, MSC, and investments in a start-up business engaged in media-buying consulting. Included in level 3 equity investments are unregistered shares of common stock in a publicly-held company, as well as certain private equity positions in non-marketable securities.

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the quarters and nine months ended September 30, 2014 and 2013.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investment in Medallion Bank & Other Controlled Subs			Equity Investments		Other Assets
June 30, 2014	$	318,277		$	58,702		$	123,456		$	7,002	$	392
Gains (losses) included in earnings		—			(1,266	)		7,382			62		—
Purchases, investments, and issuances		21,180			9,395			750			550		—
Sales, maturities, settlements, and distributions		(35,955	)		(2,575	)		(3,880	)		—		—
September 30, 2014	$	303,502		$	64,256		$	127,708		$	7,614	$	392
Amounts related to held assets(1)	$	—		($	1,073	)	$	7,382		$	62	$	—

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2014.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investment in Medallion Bank & Other Controlled Subs			Equity Investments			Other Assets
December 31, 2013	$	297,861		$	60,168		$	108,623		$	6,225		$	392
Gains (losses) included in earnings		—			(1,494	)		19,115			1,128			—
Purchases, investments, and issuances		81,586			12,562			11,982			550			—
Sales, maturities, settlements, and distributions		(75,945	)		(6,980	)		(12,012	)		(289	)		—
September 30, 2014	$	303,502		$	64,256		$	127,708		$	7,614		$	392
Amounts related to held assets(1)	$	—		($	1,456	)	$	19,115		$	1,078		$	—

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2014.

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(Dollars in thousands)	Medallion Loans			Commercial Loans			Investment in Medallion Bank & Other Controlled Subs			Equity Investments			Other Assets
June 30, 2013	$	294,029		$	59,229		$	100,343		$	6,471		$	—
Gains (losses) included in earnings		—			279			4,684			(478	)		—
Purchases, investments, and issuances		44,296			7,766			1,011			104			—
Sales, maturities, settlements, and distributions		(46,780	)		(4,213	)		(3,661	)		—			—
September 30, 2013	$	291,545		$	63,061		$	102,377		$	6,097		$	—
Amounts related to held assets(1)	$	—		$	37		$	4,684		($	478	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2013.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investment in Medallion Bank & Other Controlled Subs			Equity Investments			Other Assets
December 31, 2012	$	294,388		$	56,919		$	99,083		$	4,389		$	—
Gains (losses) included in earnings		40			204			12,090			266			—
Purchases, investments, and issuances		168,210			15,082			2,686			1,604			—
Sales, maturities, settlements, and distributions		(171,093	)		(10,514	)		(10,112	)		(162	)		—
Transfers in (out) (1)		—			1,370			(1,370	)		—			—
September 30, 2013	$	291,545		$	63,061		$	102,377		$	6,097		$	—
Amounts related to held assets(2)	$	—		($	79	)	$	12,090		$	266		$	—

(1) During the nine months ended September 30, 2013 $1,370 of investments in Medallion Fine Art, Inc. was reclassified as a loan.

(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2013.

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets and liabilities as of September 30, 2014 and December 31, 2013 were as follows.

(Dollars in thousands)	Fair Value at 9/30/14		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Medallion Loans	$	303,502	Precedent market transactions	Adequacy of collateral (loan to value)		0% - 96% (40%)
Commercial Loans - Asset-Based		2,928	Borrower collateral analysis	Adequacy of collateral (loan to value)		0% - 78% (42%) (1)
Commercial Loans – Mezzanine and Other		61,328	Borrower financial analysis	Financial condition and operating performance of the borrower		N/A
				Portfolio yields		3.00% - 17.00% (11.75%)
Investment in Medallion Bank		120,106	Investee book value and equity pickup	Financial condition and operating performance of the investee		N/A
Investment in Other Controlled Subsidiaries		4,400	Market comparables	Valuation indicated by private company offers		N/A
		3,202	Investee book value and equity pickup	Collateral support		N/A
				Financial condition and operating performance of the investee		N/A
Equity Investments		2,599	Investee book value	Valuation indicated by investee filings		N/A
		1,283	Market comparables	Discount for lack of marketability		10% (10%)
		3,732	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
Other Assets		392	Borrower collateral analysis	Adequacy of collateral (loan to value)		0%

(1) As of September 30, 2014, the Company had one asset based loan in the amount of $205 which had $0 collateral.

Page 28 of 74

(Dollars in thousands)	Fair Value at 12/31/13		Valuation Techniques	Unobservable Inputs	Range (Weighted  Average)
Medallion Loans	$	297,861	Precedent market transactions	Adequacy of collateral (loan to value)		0% - 89% (39%)
Commercial Loans - Asset-Based		7,476	Borrower collateral analysis	Adequacy of collateral (loan to value)		6% - 86% (63%) (1)
Commercial Loans – Mezzanine and Other		52,692	Borrower financial analysis	Financial condition and operating performance of the borrower		N/A
				Portfolio yields		3.00% -  17.00% (11.29%)
Investment in Medallion Bank		101,478	Investee book value and equity pickup	Financial condition and operating performance of the investee		N/A
Investment in Other Controlled Subsidiaries		3,750	Market comparables	Valuation indicated by private company offers		N/A
		3,395	Investee book value and equity pickup	Collateral support		N/A
				Financial condition and operating performance of the investee		N/A
Equity Investments		1,982	Investee book value	Valuation indicated by investee filings		N/A
		1,299	Market comparables	Discount for lack of marketability		10% (10%)
		2,944	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
Other Assets		392	Borrower collateral analysis	Adequacy of collateral (loan to value)		0%

(1) As of December 31, 2013, the Company had one asset based loan in the amount of $205 which had $0 collateral.

(13) INVESTMENTS OTHER THAN SECURITIES

The following table presents the Company’s investments other than securities as of September 30, 2014 and December 31, 2013.

Investment Type (Dollars in thousands)	Number of Investments			Investment Cost		Value as of 9/30/14			Value as of 12/31/13
City of Chicago Taxicab Medallions		154	(1)	$	8,411	$	47,355	(2)	$	48,972	(2)
City of Chicago Taxicab Medallions (handicap accessible)		5	(1)		278		1,384	(3)		1,431	(3)
Total Foreclosed Properties				$	8,689	$	48,739		$	50,403

⁽¹⁾  Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying asset under the 1940 Act.

⁽²⁾  Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $44,088, $0, and $44,088 as of September 30, 2014, and was $45,284, $0, and $45,284 as of December 31, 2013. The aggregate cost for Federal income tax purposes was $3,267 at September 30, 2014 and $3,688 at December 31, 2013.

⁽³⁾  Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $1,275, $0, and $1,275 as of September 30, 2014 and was $1,309, $0, and $1,309 as of December 31, 2013. The aggregate cost for Federal income tax purposes was $108 at September 30, 2014 and $122 at December 31, 2013.

(14) SUBSEQUENT EVENTS

We have evaluated subsequent events that have occurred through the date of financial statement issuance.

On October 30, 2014, the Company’s board of directors declared a $0.24 per share common stock distribution, payable on November 21, 2014 to shareholders of record on November 13, 2014.

Page 29 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2014 Acquisitions (5)		Cost  (4)		Fair Value
Medallion Loans
New York						366		74	%		3.61	%	$	66,212	$	204,662	$	204,758
	Real Cab Corp	Term Loan	07/20/07	07/20/17		1		1	%		2.81	%			$	2,545	$	2,545
	Real Cab Corp	Term Loan	08/19/14	07/20/17		1		1	%		3.31	%	$	1,627	$	1,583	$	1,583
	Real Cab Corp	Term Loan	07/20/07	07/20/17		1		*			2.81	%			$	350	$	350
	Sean Cab Corp ##	Term Loan	12/09/11	12/08/15		1		1	%		3.60	%			$	3,505	$	3,493
	Slo Cab Corp ##	Term Loan	07/20/07	07/20/17		1		1	%		2.81	%			$	1,527	$	1,527
	Slo Cab Corp ##	Term Loan	08/19/14	07/20/17		1		*			3.31	%	$	976	$	950	$	950
	Slo Cab Corp ##	Term Loan	07/20/07	07/20/17		1		*			2.81	%			$	210	$	210
	Whispers Taxi Inc ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%			$	2,121	$	2,115
	Pontios Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	1,828	$	1,808	$	1,810
	Ikaria Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	1,828	$	1,808	$	1,810
	Kos Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	1,828	$	1,808	$	1,810
	Sag Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	1,828	$	1,808	$	1,810
	Yosi Transit Inc ##	Term Loan	07/20/07	07/20/17		1		*			2.81	%			$	1,018	$	1,018
	Yosi Transit Inc ##	Term Loan	08/19/14	07/20/17		1		*			3.31	%	$	651	$	633	$	633
	Yosi Transit Inc ##	Term Loan	07/20/07	07/20/17		1		*			2.81	%			$	140	$	140
	Sifnos, Kitriani Incs ##	Term Loan	06/08/10	05/01/15		1		1	%		4.00	%			$	1,587	$	1,581
	Daytona Hacking Corp ##	Term Loan	03/26/14	03/26/17		1		1	%		3.38	%	$	1,570	$	1,553	$	1,555
	Kaderee M & G Corp ##	Term Loan	03/26/14	03/26/17		1		1	%		3.38	%	$	1,570	$	1,550	$	1,552
	Silke Hacking Corp ##	Term Loan	03/26/14	03/26/17		1		1	%		3.38	%	$	1,570	$	1,550	$	1,552
	Lety Cab Corp ##	Term Loan	10/21/10	10/20/15		1		1	%		3.13	%			$	1,519	$	1,513
	Nancy Transit Inc ##	Term Loan	03/11/13	03/11/16		1		1	%		3.50	%			$	1,516	$	1,513
	Bunty & Jyoti Inc ##	Term Loan	03/13/13	03/13/16		1		1	%		3.75	%			$	1,516	$	1,512
	Christian Cab Corp	Term Loan	11/27/12	11/27/15		1		1	%		4.00	%			$	1,502	$	1,502
	Junaid Trans Corp ##	Term Loan	04/30/13	04/30/16		1		1	%		3.75	%			$	1,495	$	1,491
	Ocean Hacking Corp ##	Term Loan	12/20/13	12/20/16		1		1	%		3.50	%			$	1,471	$	1,473
	Dayna Hacking Corp ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%			$	1,414	$	1,410
	Devin Taxi Corp ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%			$	1,414	$	1,410
	Benson Hacking Corp ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%			$	1,414	$	1,410
	Orys Trans Corp	Term Loan	07/24/13	07/24/16		1		1	%		2.75	%			$	1,400	$	1,401
	Alltaxitwo Cab Corp ##	Term Loan	07/24/13	07/24/16		1		1	%		2.75	%			$	1,400	$	1,401
	Anniversary Taxi Corp ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	1,400	$	1,400	$	1,397
	Hj Taxi Corp ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	1,400	$	1,400	$	1,397
	Apple Cab Corp ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	1,400	$	1,400	$	1,397
Various New York && ##	1.73% to 10.00%	Term Loan	12/20/00 to 09/29/14	10/04/14 to 09/10/23		333		56	%		3.69	%	$	46,736	$	156,347	$	156,487
Chicago						107		14	%		4.97	%	$	11,603	$	39,538	$	39,612
	Sweetgrass Peach &Chadwick Cap ##	Term Loan	08/28/12	08/28/15		1		1	%		5.50	%			$	1,674	$	1,668
Various Chicago ##	3.75% to 7.25%	Term Loan	01/22/10 to 09/19/14	01/18/15 to 05/30/19		106		14	%		4.95	%	$	11,603	$	37,864	$	37,944
Newark && ##	4.50% to 8.00%	Term Loan	07/25/08 to 09/18/14	07/22/14 to 01/10/23		111		9	%		5.36	%	$	7,146	$	24,727	$	24,837
Boston						58		10	%		4.69	%	$	7,814	$	27,435	$	27,460
	Chiso Trans Inc	Term Loan	11/26/13	11/26/16		1		*			4.25	%			$	826	$	828
	Chiso Trans Inc	Term Loan	04/20/12	04/20/15		1		*			5.50	%			$	585	$	585
Various Boston && ##	4.00% to 6.25%	Term Loan	06/12/07 to 07/25/14	09/17/14 to 10/08/18		56		9	%		4.69	%	$	7,814	$	26,024	$	26,047
Cambridge && ##	4.00% to 6.00%	Term Loan	05/06/11 to 07/01/14	01/26/15 to 10/08/18		14		2	%		4.83	%	$	1,087	$	5,981	$	5,994
Various Other && ##	4.75% to 11.50%	Term Loan	11/26/07 to 01/03/14	11/27/14 to 09/01/23		10		0	%		6.58	%	$	278	$	837	$	841
Total medallion loans ($230,957 pledged as collateral under borrowing arrangements) Commercial Loans						666		109	%		4.06	%	$	94,140	$	303,180	$	303,502

Page 30 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

September 30, 2014

(Dollars in thousands)		Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)		Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2014 Acquisitions (5)		Cost  (4)		Fair Value
Secured mezzanine (36% Minnesota, 10% Wisconsin, 10% North Carolina, 7% New York, 7% Oklahoma,
7% Texas, 7% Ohio, 5% Delaware, 4% Arizona and 7% all other states) (2)
Manufacturing (64% of the total)		EGC (interest rate includes PIK interest of 3 %)		Term Loan	09/30/14	09/30/19		1		1	%		15.00	%	$	3,100	$	3,100	$3,111
	+	Bluff Manufacturing (interest rate includes PIK interest of 3.5 %)		Term Loan	12/14/12	12/14/17		1		1	%		15.50	%			$	3,000	$3,007
		Animal Adventures (interest rate includes PIK interest of 2 %) (capitalized interest of $8 per footnote 2)		Term Loan	08/15/14	08/15/19		1		1	%		14.00	%	$	3,000	$	3,008	$2,995
		Quaker Bakery (interest rate includes PIK interest of 5 %) (capitalized interest of $352 per footnote 2)		Term Loan	03/28/12	03/28/17		1		1	%		17.00	%			$	2,952	$2,945
		BreathableBaby (interest rate includes PIK interest of 2 %) (capitalized interest of $8 per footnote 2)		Term Loan	08/01/14	08/01/19		1		1	%		14.00	%	$	2,500	$	2,508	$2,513
		American Cylinder (interest rate includes PIK interest of 5 %) (capitalized interest of $98 per footnote 2)		Term Loan	07/03/13	01/03/18		1		1	%		17.00	%			$	1,598	$1,598
		American Cylinder		Term Loan	07/03/13	07/03/17		1		*			10.00	%			$	800	$796
	+	Packaging Specialists (interest rate includes PIK interest of 6 %) (capitalized interest of $10 per footnote 2)		Term Loan	04/01/08	12/31/14		1		1	%		14.00	%			$	2,000	$2,000
		Dynamic Systems (interest rate includes PIK interest of 3.5 %) (capitalized interest of $152 per footnote 2)		Term Loan	12/23/10	12/23/17		1		1	%		15.50	%			$	1,977	$1,977
	+	PACA Foods &		Term Loan	12/31/10	12/31/15		1		1	%		13.00	%			$	2,189	$1,588
	+	GAF Manufacturing (interest rate includes PIK interest of 2 %) (capitalized interest of $18 per footnote 2)		Term Loan	03/06/14	03/06/19		1		1	%		14.00	%	$	1,500	$	1,518	$1,526
	+	RespirTech		Term Loan	04/25/12	04/25/17		1		1	%		12.00	%			$	1,500	$1,506
	+	Various Other && 8.00% to 14.00%		Term Loan	03/10/99 to 07/17/12	03/31/10 to 01/31/19		5		2	%		10.48	%			$	8,896	$4,399
Information (12% of the total)		US Internet		Term Loan	06/12/13	06/12/20		1		1	%		14.50	%			$	3,000	$3,017
		Centare (interest rate includes PIK interest of 2 %)		Term Loan	08/30/13	08/30/18		1		1	%		14.00	%			$	2,500	$2,485
Arts, Entertainment, and Recreation (10% of the total)		RPAC Racing (interest rate includes PIK interest of 10 %) (capitalized interest of $1,409 per footnote 2)		Term Loan	11/19/10	11/19/15		1		2	%		10.00	%			$	4,448	$4,448
Administrative and Support Services (8% of the total)	+	Staff One		Term Loan	06/30/08	03/31/16		1		1	%		3.00	%			$	2,964	$2,964
	+	Staff One		Term Loan	09/15/11	03/31/16		1		*			3.00	%			$	485	$485
		Various Other && 0.00% (capitalized interest of $44 per footnote 2)		Term Loan	01/14/05	01/14/10		1		*			0.00	%			$	628	$45
Professional, Scientific, and Technical Services (5% of the total)	+	Portu-Sunberg		Term Loan	12/31/12	12/31/17		1		1	%		12.00	%			$	2,500	$2,509
		Various Other && 10.00% (capitalized interest of $5 per footnote 2)		Term Loan	10/26/11	11/01/14		1		*			10.00	%			$	5	$5
Accommodation and Food Services (1% of the total)		Various Other && 9.25% to 10.00%		Term Loan	06/30/00 to 11/05/10	10/01/15 to 11/05/15		3		*			9.83	%			$	2,294	$620
Retail Trade (0% of the total)		Various Other && 10.00%		Term Loan	06/30/00	10/01/15		1		*			10.00	%	$	0	$	395	$36
Total secured mezzanine (2)								29		17	%		12.25	%	$	10,100	$	54,265	$46,575

Page 31 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.	% of Net Assets			Interest Rate  (1)			Original Cost of 2014 Acquisitions (5)		Cost  (4)		Fair Value
Asset-based (66% New York, 29% New Jersey and 5% all other states)
Transportation and Warehousing (31% of the total)	Various Other && 5.25% to 8.00% ##	Revolving line of credit	12/31/01 to 10/18/06	10/18/14 to 05/02/15	9		*			6.38	%			$	903	$	879
Wholesale Trade (28% of the total)	Various Other 4.50% to 6.50% ##	Revolving line of credit	01/23/99 to 06/30/14	11/06/14 to 08/15/15	3		*			4.97	%	$	15	$	873	$	822
Retail Trade (16% of the total)	Various Other 4.75% to 7.12% ##	Revolving line of credit	10/19/98 to 08/31/06	10/12/14 to 08/31/15	5		*			5.17	%			$	505	$	477
Construction (10% of the total)	Various Other 5.75% to 6.75% ##	Revolving line of credit	07/20/99 to 07/23/13	07/20/15 to 07/23/15	2		*			5.80	%			$	304	$	297
Manufacturing (7% of the total)	Various Other 5.75% to 7.25% ##	Revolving line of credit	07/07/04 to 01/27/14	11/29/14 to 07/07/15	5		*			6.35	%	$	10	$	227	$	205
Health Care and Social Assistance (4% of the total)	Various Other 5.75% to 5.81% ##	Revolving line of credit	10/02/07 to 11/09/12	10/02/14 to 11/09/14	2		*			5.77	%			$	137	$	131
Finance and Insurance (3% of the total)	Various Other && 5.50%	Revolving line of credit	02/14/08	02/14/15	1		*			5.50	%			$	99	$	96
Administrative and Support Services (1% of the total)	Various Other 5.50%	Revolving line of credit	06/30/07	06/30/15	1		*			5.50	%			$	23	$	21
Total asset-based ($2,519 pledged as collateral under borrowing arrangements)					28		1	%		5.66	%	$	25	$	3,071	$	2,928
Other secured commercial (76% New York and 24% New Jersey)
Retail Trade (79% of the total)	Medallion Fine Art Inc (interest rate includes PIK interest of 12.00%) (capitalized interest of $939 per footnote 2)	Term Loan	12/17/12	12/17/17	1		2	%		12.00	%			$	6,542	$	6,542
	Various Other && 0.00% to 10.50%	Term Loan	09/13/06 to 08/13/14	12/17/14 to 08/13/20	17		2	%		8.96	%	$	1,640	$	5,281	$	5,088
Accommodation and Food Services (19% of the total)	Dune Deck Owners Corp ##	Term Loan	04/24/07	03/31/16	1		1	%		7.00	%			$	2,071	$	2,071
	Various Other && 6.75% to 9.00%	Term Loan	11/29/05 to 06/06/14	03/16/16 to 09/06/19	3		*			8.33	%	$	375	$	870	$	773
Real Estate and Rental and Leasing (1% of the total)	Various Other 4.00% to 6.00%	Term Loan	04/22/99 to 07/15/13	04/01/15 to 07/15/16	3		*			5.22	%			$	162	$	163
Health Care and Social Assistance (1% of the total)	Various Other 7.50%	Term Loan	05/14/13	05/14/18	1		*			7.50	%			$	115	$	116
Total other secured commercial loans ($2,072 pledged as collateral under borrowing arrangements)					26		5	%		9.92	%	$	2,015	$	15,041	$	14,753
Total commercial loans ($4,591 pledged as collateral under borrowing arrangements) (2)					83		23	%		11.49	%	$	12,140	$	72,377	$	64,256
Investment in Medallion Bank and other controlled subsidiaries
Commercial Banking	Medallion Bank **	100% of common stock	05/16/02	None	1		43	%		11.24	%			$	120,106	$	120,106
Art Dealer	Medallion Fine Art, Inc.	100% of common stock	12/03/12	None	1		*			0.00	%			$	1,359	$	1,359
Real Estate	Medallion Hamptons Holding LLC	100% of membership interests	06/21/05	None	1		2	%		0.00	%			$	4,400	$	4,400
Various Other			12/20/04 to 5/23/12	None	3		1	%		0.00	%			$	1,843	$	1,843
Investment in Medallion Bank and other controlled subsidiaries, net					6		46	%		10.57	%	$	0	$	127,708	$	127,708
Equity investments
Commercial Finance	Convergent Capital, Ltd **	7% of limited partnership interest	07/20/07	None	1		1	%		0.00	%	$	0	$	967	$	2,600
NASCAR Race Team	Medallion MotorSports, LLC	75% of limited liability interest	11/24/10	None	1		1	%		0.00	%			$	1,954	$	1,794
Employee Leasing Services	Staff One	46.4% preferred stock	06/30/08	None	2		*			0.00	%			$	472	$	472
Bakery	Quaker Bakery	* of senior preferred stock	03/28/12	None	1		*			0.00	%			$	359	$	359
IT Services	Centare	7.23% of common stock, 3.88% of preferred stock	08/30/13	None	1		*			0.00	%			$	103	$	103
Various Other # +	**	* to 3.6% of LLC units	08/04/08 to 8/15/14	None	7		1	%		1.81	%			$	1,981	$	2,500

Page 32 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2014 Acquisitions (5)		Cost  (4)		Fair Value
						13		3	%		0.61	%			$	5,836	$	7,828
Investment securities
Investment securities, net
						0		0	%		0.00	%			$	0	$	0
Net Investments ($235,548 pledged as collateral under borrowing arrangements) (3)						768		181	%		6.71	%	$	106,280	$	509,101	$	503,294

(1) Represents the actual or weighted average interest or dividend rate of the respective security or portfolio as of the date indicated. Investments without an interest rate or with a rate of 0.00% are considered non-income producing.

(2) Included in secured mezzanine commercial loans and other commercial loans was $3,043 of interest income capitalized into the outstanding investment balances, in accordance with the terms of the investment contract.

(3) The ratio of restricted securities fair value to net assets is 181%.

(4) Gross unrealized appreciation, gross unrealized depreciation, and net appreciation for federal income tax purposes totaled $56,161, $11,614 and $44,547, respectively. The tax cost of investments was $458,747.

(5) For revolving lines of credit the amount shown is the cost at September 30, 2014.

* Less than 1.0%

** Not an eligible portfolio company as such term is defined in Section 2(a)(46) of the 1940 Act. The percentage value of all non-eligible portfolio companies to totaled assets of Medallion Financial on an unconsolidated basis was up to 25% and up to 29% on a consolidated basis. Under the 1940 Act, we may not acquire any non-qualifying assets, unless at the time such acquisition is made, qualifying assets, which include securities of eligible portfolio companies, represent at least 70% of our total assets. The status of these assets under the 1940 Act are subject to change. We monitor the status of these assets on an ongoing basis.

& Loan is on nonaccrual status, or past due on contractual payments, and is therefore considered non-income producing.

&& Some or all of the securities are non-income producing as per & above.

# Publicly traded but sales subject to applicable Rule 144 limitations.

## Pledged as collateral under borrowing arrangements.

+ Includes various warrants, all of which have a cost and fair value of zero at September 30, 2014.

The Summary Schedule of Investments does not reflect the Company’s complete portfolio holdings. It includes the Company’s 50 largest holdings and each investment of any issuer that exceeds 1% of the Company’s net assets. “Various Other” represents all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). Footnotes above may apply to securities that are included in “Various Other”. For further detail, the complete schedule of portfolio holdings is available (i) without charge, upon request, by calling (877) MEDALLION; and (ii) on the SEC’s website at http://www.sec.gov. Filed as Exhibit 99.1 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, filed on November 5, 2014 (File No. 814-00188)

Page 33 of 74

Medallion Financial Corp

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFIILIATES

As of and for the quarter and nine months ended September 30, 2014

Name of issuer and title of issue (Dollars in thousands)	Number of shares (all restricted unless otherwise noted)	Equity in net profit and (loss) for the three months ended September 30, 2014			Equity in net profit and (loss) for the nine months ended September 30, 2014			Amount of dividends or interest (1) for the three months ended September 30, 2014		Amount of dividends or interest (1) for the nine months ended September 30, 2014		Value as  of 9/30/14
Medallion Bank - common stock	1,000,000 shares - 100% of common stock	$	6,682		$	19,118		$	4,000	$	10,000	$	120,106
Medallion Hamptons Holding LLC - membership interest	100% of membership interest		650			572			0		0		4,400
Medallion Fine Art, Inc. - common stock (2)	1,000 shares - 100% of common stock		(200	)		(521	)		0		0		1,359
Medallion Servicing Corp. - common stock	1,000 shares - 100% of common stock		43			(16	)		0		0		715
Generation Outdoor, Inc. - common stock	1,000 shares - 100% of common stock		386			400			—		7		660
LAX Group LLC - membership interest	42% of membership interest		(179	)		(438	)		0		0		468
Total investments in Medallion Bank and other controlled subsidiaries			7,382			19,115			4,000		10,007		127,708
Medallion Motorsports, LLC - membership interest (3)	75% of membership interest		0			0			0		0		1,794
Appliance Recycling Centers of America Inc - common stock	8.86% of common stock		0			0			0		0		1,284
Summit Medical, Inc - common stock	9.25% of common stock		0			0			0		0		135
Other equity investments other than in investments in and advances to affiliates			—			—			—		—		4,615
Total equity investments			—			—			0		0		7,828
Total investments in Medallion Bank and other controlled subsidiaries and equity investments									4,000		10,007	$	135,536
Other interest and dividend income other than from investments in and advances to affiliates									15		210
Total dividend and interest income on short term investments								$	4,015	$	10,217
Total investments in and advances to affiliates													130,921
Other equity investments other than in investments in and advances to affiliates													4,615
Total investments in Medallion Bank and other controlled subsidiaries and equity investments												$	135,536

(1) Investments with an amount of $0 are considered non-income producing.

(2) Additionally, the Company has a loan due from Medallion Fine Art, Inc in the amount of $5,600 as of September 30, 2014, and which is carried at $6,539, and of which $195 and $563 of interest income was earned during the 2014 third quarter and nine months.

(3) In addition to the equity ownership, a controlled subsidiary of the Company has a $3,039 loan to an affiliate of Medallion Motorsports, LLC which is carried at $4,448, and of which $108 and $317 of interest income was earned during the quarter and nine months ended September 30, 2014.

The table below provides a recap of the changes in the investment in the respective issuers for the 2014 quarters.

Name of Issuer	Medallion Bank			Medallion Hamptons Holding LLC			Medallion Motorsports, LLC			Medallion Fine Art, Inc.			Appliance Recycling Centers of America Inc.			Medallion Servicing Corp			Generation Outdoor, Inc.			LAX Group LLC
Title of Issue	Common Stock			Membership Interest			Membership Interest (1)			Common Stock (2)			Common Stock			Common Stock			Common Stock			Membership Interest
(Dollars in thousands)
Value as of 12/31/13	$	101,478		$	3,750		$	1,954		$	1,880		$	1,299		$	822		$	439		$	254
Gross additions / investments		—			90			—			—			—			20			440			652
Gross reductions / distributions		(4,624	)		—			—			—			—			(162	)		(199	)		—
Net equity earnings in profit and loss, unrealized appreciation and depreciation		5,906			(90	)		—			(198	)		100			(59	)		(3	)		(130	)
Other adjustments		—			—			—			—			—			—			(1	)		1
Value as of 3/31/14		102,760			3,750			1,954			1,682			1,399			621			676			777
Gross additions / investments		10,000			—			—			—			—			—			30			—
Gross reductions / distributions		(2,604	)		(12	)		—			—			—			(30	)		(500	)		—
Net equity earnings in profit and loss, unrealized appreciation and depreciation		6,530			12			(50	)		(124	)		380			—			17			(129	)
Value as of 6/30/14		116,686			3,750			1,904			1,558			1,779			591			223			648
Gross additions / investments		—			—			—			—			—			81			750			—
Gross reductions / distributions		(3,262	)		—			—			—			—						(700	)		—
Net equity earnings in profit and loss, unrealized appreciation and depreciation		6,682			650			(110	)		(200	)		(495	)		43			386			(179	)
Other adjustments		—			—			—			1			—			—			1			(1	)
Value as of 9/30/14	$	120,106		$	4,400		$	1,794		$	1,359		$	1,284		$	715		$	660		$	468

(1) In addition to the equity ownership, a controlled subsidiary of the Company has a $3,039 loan to an affiliate of Medallion Motorsports, LLC which is carried at $4,448, and of which $108 and $317 of interest income was earned during the three and nine months ended September 30, 2014.

(2) Additionally, the Company has a loan due from Medallion Fine Art, Inc in the amount of $5,600 as of September 30, 2014, and which is carried at $6,539, and of which $195 and $563 of interest income was earned during the 2014 third quarter and nine months.

Page 34 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2013 Acquisitions (5)		Cost  (4)		Fair Value
Medallion Loans
New York						358		74	%		3.52	%	$	133,978	$	202,954	$	202,947
	Sean Cab Corp ##	Term Loan	12/9/2011	12/8/2015		1		1	%		3.60	%			$	3,581	$	3,566
	Real Cab Corp	Term Loan	7/20/2007	7/20/2017		1		1	%		2.81	%			$	2,545	$	2,545
	Real Cab Corp	Term Loan	7/20/2007	7/20/2017		1		*			2.81	%			$	350	$	350
	Sifnos, Van-Dim, Kitriani Incs ##	Term Loan	6/8/2010	5/1/2015		1		1	%		4.00	%			$	2,460	$	2,454
	Whispers Taxi Inc ##	Term Loan	5/28/2013	5/28/2016		1		1	%		3.35	%	$	2,197	$	2,164	$	2,156
	Slo Cab Corp	Term Loan	7/20/2007	7/20/2017		1		1	%		2.81	%			$	1,527	$	1,527
	Slo Cab Corp	Term Loan	7/20/2007	7/20/2017		1		*			2.81	%			$	210	$	210
	Lety Cab Corp ##	Term Loan	10/21/2010	10/20/2015		1		1	%		3.13	%			$	1,557	$	1,550
	Nancy Transit Inc ##	Term Loan	3/11/2013	3/11/2016		1		1	%		3.50	%	$	1,575	$	1,546	$	1,542
	Bunty & Jyoti Inc ##	Term Loan	3/13/2013	3/13/2016		1		1	%		3.75	%	$	1,575	$	1,546	$	1,541
	Junaid Trans Corp ##	Term Loan	4/30/2013	4/30/2016		1		1	%		3.75	%	$	1,550	$	1,524	$	1,519
	Christian Cab Corp	Term Loan	11/27/2012	11/27/2015		1		1	%		4.00	%			$	1,504	$	1,513
	Ocean Hacking Corp ##	Term Loan	12/20/2013	12/20/2016		1		1	%		3.50	%	$	1,500	$	1,500	$	1,502
	Devin Taxi Corp ##	Term Loan	5/28/2013	5/28/2016		1		1	%		3.35	%	$	1,465	$	1,443	$	1,438
	Dayna Hacking Corp ##	Term Loan	5/28/2013	5/28/2016		1		1	%		3.35	%	$	1,465	$	1,443	$	1,438
	Benson Hacking Corp ##	Term Loan	5/28/2013	5/28/2016		1		1	%		3.35	%	$	1,465	$	1,443	$	1,438
	Silke Hacking Corp ##	Term Loan	6/28/2013	6/28/2016		1		1	%		2.90	%	$	1,450	$	1,424	$	1,426
	Sonu-Seema Corp ##	Term Loan	12/7/2012	12/7/2015		1		1	%		3.75	%			$	1,415	$	1,410
	Lil Amandachaka Hacking Corp ##	Term Loan	7/23/2013	7/23/2016		1		1	%		3.00	%	$	1,425	$	1,407	$	1,409
	Flow Taxi Corp ##	Term Loan	7/23/2013	7/23/2016		1		1	%		3.00	%	$	1,425	$	1,407	$	1,409
	Ukraine Service Co ##	Term Loan	7/23/2013	7/23/2016		1		1	%		3.00	%	$	1,425	$	1,407	$	1,409
	Nosilla Service Co., Inc ##	Term Loan	7/23/2013	7/23/2016		1		1	%		3.00	%	$	1,425	$	1,407	$	1,409
	Orys Trans Corp ##	Term Loan	7/24/2013	7/24/2016		1		1	%		2.75	%	$	1,400	$	1,400	$	1,402
	Alltaxitwo Cab Corp ##	Term Loan	7/24/2013	7/24/2016		1		1	%		2.75	%	$	1,400	$	1,400	$	1,402
	Perem Hacking Corp ##	Term Loan	2/21/2013	2/21/2016		1		*			3.00	%	$	1,396	$	1,362	$	1,358
	S600 Service Co Inc ##	Term Loan	2/21/2013	2/21/2016		1		*			3.00	%	$	1,396	$	1,362	$	1,358
	Uddin Taxi Corp ##	Term Loan	11/14/2012	11/14/2015		1		*			5.25	%			$	1,358	$	1,353
Various New York	2.22% to 10.00%	Term Loan	12/20/00 to 12/26/13	01/15/14 to 09/10/23		331		59	%		3.56	%	$	108,444	$	161,262	$	161,313
Chicago						111		15	%		4.94	%	$	32,540	$	42,175	$	42,239
	Sweetgrass Peach &Chadwick Cap ##	Term Loan	8/28/2012	8/28/2015		1		1	%		5.50	%			$	1,696	$	1,689
	Regal Cab Company Et Al ##	Term Loan	8/29/2013	8/29/2016		1		1	%		5.00	%	$	1,400	$	1,395	$	1,391
	Chicago Medallion Nine LLC ##	Term Loan	5/2/2012	5/2/2017		1		1	%		5.75	%			$	1,373	$	1,368
Various Chicago	3.75% to 8.50%	Term Loan	01/22/10 to 12/27/13	01/18/15 to 12/27/18		108		14	%		4.89	%	$	31,140	$	37,711	$	37,791
Newark &&	4.50% to 8.00%	Term Loan	04/12/07 to 12/12/13	02/27/14 to 01/10/23		106		8	%		5.58	%	$	13,103	$	21,681	$	21,792
Boston						53		9	%		4.91	%	$	11,642	$	23,622	$	23,656
	Chiso Trans Inc	Term Loan	11/26/2013	11/26/2016		1		*			4.25	%	$	845	$	845	$	847
	Chiso Trans Inc	Term Loan	4/20/2012	4/20/2015		1		*			5.50	%			$	599	$	600
	Various Boston && 4.00% to 6.75%	Term Loan	06/12/07 to 12/20/13	01/14/14 to 10/08/18		51		8	%		4.92	%	$	10,797	$	22,178	$	22,209
Cambridge						14		2	%		5.06	%	$	3,850	$	6,008	$	6,043
	Gcf Taxi Inc, Et Al	Term Loan	12/30/2013	12/30/2016		1		1	%		6.00	%	$	1,398	$	1,397	$	1,417
	4.00% to 6.50%	Term Loan	03/19/10 to 12/11/13	05/06/14 to 10/08/18		13		2	%		4.78	%	$	2,452	$	4,611	$	4,626
Other						12		0	%		6.52	%	$	860	$	1,178	$	1,184
Various Other &&	5.00% to 11.50%	Term Loan	11/26/07 to 08/21/13	03/23/14 to 09/01/23		12		*			6.52	%	$	860	$	1,178	$	1,184
Total medallion loans ($233,789 pledged as collateral under borrowing arrangements)						654		109	%		4.02	%	$	195,973	$	297,618	$	297,861
Commercial Loans
Secured mezzanine (29% Minnesota, 10% North Carolina, 9% New York, 9% Oklahoma, 8% Texas,

Page 35 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2013 Acquisitions (5)		Cost  (4)		Fair Value
7% Wisconsin, 6% Delaware, 6% Arizona, 4% Florida, 4% California, 4% Tennessee and 4% all other states) (2) Manufacturing (56% of the total)
+	Bluff Manufacturing (interest rate includes PIK interest of 3.50%)	Term Loan		12/14/2012		12/14/2017		1		1	%		15.50	%			$	3,000	$	3,009
	Quaker Bakery (interest rate includes PIK interest of 5.00%) (capitalized interest of $243 per footnote 2)	Term Loan		3/28/2012		3/28/2017		1		1	%		17.00	%			$	2,843	$	2,834
	American Cylinder (interest rate includes PIK interest of 5.00%) (capitalized interest of $38 per footnote 2)	Term Loan		7/3/2013		1/3/2018		1		1	%		17.00	%	$	1,500	$	1,538	$	1,538
	American Cylinder	Term Loan		7/3/2013		7/3/2017		1					10.00	%	$	800	$	800	$	796
+	Packaging Specialists (interest rate includes PIK interest of 6.00%) (capitalized interest of $224 per footnote 2)	Term Loan		4/1/2008		12/31/2014		1		1	%		14.00	%			$	2,214	$	2,214
	Dynamic Systems (interest rate includes PIK interest of 3.50%) (capitalized interest of $100 per footnote 2)	Term Loan		12/23/2010		12/23/2017		1					15.50	%			$	1,925	$	1,925
+	PACA Foods &	Term Loan		12/31/2010		12/31/2015		1		1	%		13.00	%			$	2,375	$	1,774
	Process Fab & (interest rate includes PIK interest of 8.00%)	Term Loan		4/17/2008		12/31/2015		1		1	%		8.00	%			$	4,500	$	1,590
+	RespirTech	Term Loan		4/25/2012		4/25/2017		1					12.00	%			$	1,500	$	1,507
	Orchard &	Term Loan		3/10/1999		3/31/2010		1		1	%		13.00	%			$	1,390	$	1,390
+	Various Other && 12.00% to 14.00% (capitalized interest of $40 per footnote 2)	Term Loan		12/15/04 07/17/12		03/31/14 07/17/17		4		1	%		13.18	%			$	3,687	$	3,699
Information (14% of the total)	US Internet	Term Loan		6/12/2013		6/12/2020		1		1	%		14.50	%	$	3,000	$	3,000	$	3,019
	Centare (interest rate includes PIK interest of 2.00%)	Term Loan		8/30/2013		8/30/2018		1		1	%		14.00	%	$	2,500	$	2,500	$	2,482
Arts, Entertainment, and Recreation (10% of the total)	RPAC Racing (interest rate includes PIK interest of 10.00%) (capitalized interest of $1,091 per footnote 2)	Term Loan		11/19/2010		11/19/2015		1		2	%		10.00	%			$	4,131	$	4,131
Administrative and Support Services (9% of the total)	Staff One &	Term Loan		6/30/2008		3/31/2015		1		1	%		3.00	%			$	2,964	$	2,964
	Staff One &	Term Loan		9/15/2011		3/31/2015		1		*			3.00	%			$	485	$	485
	Various Other && 0.00% (capitalized interest of $44 per footnote 2)	Term Loan		01/14/05		01/14/10		1		*			0.00	%			$	628	$	43
Professional, Scientific, and Technical Services (6% of the total) +	Portu-Sunberg	Term Loan		12/31/2012		12/31/2017		1		1	%		12.00	%			$	2,500	$	2,511
	Various Other && 10.00% (capitalized interest of $46 per footnote 2)	Term Loan		10/26/11		11/01/14		1		*			10.00	%			$	46	$	46
Health Care and Social Assistance (2% of the total) +	Various Other && 7.00%	Term Loan		06/28/07		06/30/17		1		*			7.00	%			$	1,078	$	760
Accommodation and Food Services (2% of the total)	Various Other && 9.25% to 10.00%	Term Loan		06/30/00 to 11/05/10		10/01/15 to 11/05/15		3		*			9.85	%			$	2,529	$	630
Retail Trade (1% of the total)	Various Other && 10.00%	Term Loan		06/30/00		10/01/15		1		*			10.00	%			$	467	$	91
Total secured mezzanine (2)								27		14	%		11.69	%	$	7,800	$	46,100	$	39,438

Page 36 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2013 Acquisitions (5)		Cost (4)		Fair Value
Asset-based (74% New York, 20% New Jersey and 6% all other states)
Wholesale Trade (59% of the total)
	Capitalsea, LLC ##	Revolving line of credit	11/07/05	11/07/14		1		1	%		4.50	%			$	2,902	$	2,799
	Various Other && 4.75% to 6.75% ##	Revolving line of credit	01/23/99 to 11/06/13	01/14/14 to 11/30/14		10		1	%		5.67	%	$	26	$	1,686	$	1,620
Transportation and Warehousing (14% of the total)	Various Other && 5.25% to 8.00% ##	Revolving line of credit	12/31/01 to 10/18/06	05/02/14 to 12/31/14		3		*			6.27	%			$	1,116	$	1,071
Retail Trade (11% of the total)	Various Other 4.75% to 6.44% ##	Revolving line of credit	10/19/98 to 08/31/06	07/24/14 to 12/21/14		5		*			5.25	%			$	852	$	812
Construction (6% of the total)	Various Other 5.75% to 6.75% ##	Revolving line of credit	07/20/99 to 07/23/13	02/26/14 to 07/23/14		3		*			5.98	%	$	373	$	428	$	422
Manufacturing (5% of the total)	Various Other 5.75% to 6.50% ##	Revolving line of credit	07/07/04 to 06/22/10	02/18/14 to 11/29/14		5		*			6.24	%			$	388	$	354
Health Care and Social Assistance (2% of the total)	Various Other 5.75% to 5.82% ##	Revolving line of credit	10/02/07 to 11/09/12	10/02/14 to 11/09/14		2		*			5.77	%			$	173	$	152
Administrative and Support Services (2% of the total)	Various Other 5.50%	Revolving line of credit	06/30/07	06/30/14		1		*			5.50	%			$	159	$	151
Finance and Insurance (1% of the total)	Various Other && 5.50%	Revolving line of credit	02/14/08	02/14/14		1		*			5.50	%			$	99	$	94
Total asset-based ($5,977 pledged as collateral under borrowing arrangements)						31		3	%		5.32	%	$	399	$	7,803	$	7,475
Other secured commercial (73% New York, 26% New Jersey, 1% Illinois)
Retail Trade (77% of the total)	Medallion Fine Art Inc (interest rate includes PIK interest of 12.00%) (capitalized interest of $376 per footnote 2)	Term Loan	12/17/12	12/17/17		1		2	%		12.00	%			$	5,977	$	5,977
	Various Other && 0.00% to 10.50%	Term Loan	09/13/06 to 12/17/13	08/04/14 to 03/17/20		15		2	%		8.88	%	$	1,425	$	4,187	$	4,164
Accommodation and Food Services (19% of the total)	Dune Deck Owners Corp ##	Term Loan	4/24/2007	3/31/2014		1		1	%		7.25	%			$	2,074	$	2,074
	Various Other 7.50% to 9.00% &&	Term Loan	05/25/05 to 07/25/13	03/18/14 to 07/25/18		3		*			8.26	%	$	260	$	615	$	555
Real Estate and Rental and Leasing (2% of the total)	Various Other 4.00% to 6.00%	Term Loan	04/22/99 to 07/15/13	04/01/15 to 07/15/16		3		*			5.10	%	$	40	$	202	$	203
Other Services (except Public Administration) (1% of the total)	Various Other 5.50% to 6.50%	Term Loan	01/16/04 to 05/02/09	01/16/14 to 05/02/14		2		*			5.67	%			$	146	$	146
Health Care and Social Assistance (1% of the total)	Various Other 7.50%	Term Loan	05/14/13	05/14/18		1		*			7.50	%	$	150	$	135	$	136
Total other secured commercial loans ($2,074 pledged as collateral under borrowing arrangements)						26		5	%		9.89	%	$	1,875	$	13,336	$	13,255
Total commercial loans ($8,051 pledged as collateral under borrowing arrangements) (2)						84		22	%		10.60	%	$	10,074	$	67,239	$	60,168
Investment in Medallion Bank and other controlled subsidiaries
Commercial Banking	Medallion Bank **	100% of common stock	05/16/02	None		1		37	%		11.83	%			$	101,478	$	101,478
Art Dealer	Medallion Fine Art, Inc.	100% of common stock	12/03/12	None		1		1	%		0.00	%			$	1,880	$	1,880
Real Estate	Medallion Hamptons Holding LLC	100% of membership interests	06/21/05	None		1		1	%		0.00	%			$	3,750	$	3,750
Various Other			12/20/04 to 5/23/12	None		3		1	%		0.00	%			$	1,515	$	1,515
Investment in Medallion Bank and other controlled subsidiaries, net						6		40	%		11.05	%			$	108,623	$	108,623
Equity investments

Page 37 of 74

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate  (1)			Original Cost of 2013 Acquisitions (5)		Cost (4)		Fair Value
Commercial Finance	Convergent Capital, Ltd **	7% of limited partnership interest	07/20/07	None		1		1	%		0.00	%			$	1,132	$	1,981
NASCAR Race Team	Medallion MotorSports, LLC	75% of limited liability interest	11/24/10	None		1		1	%		0.00	%			$	1,954	$	1,954
Bakery	Quaker Bakery	* of senior preferred stock	03/28/12	None		1		*			0.00	%			$	359	$	359
IT Services	Centare	7.23% of common stock, 3.88% of preferred stock	08/30/13	None		1		*			0.00	%			$	103	$	103
Various Other	**	* to 9.25% of common stock	09/10/98 to 3/30/12	None		7		1	%		2.05	%			$	2,576	$	2,108
Equity investments, net						11		2	%		0.86	%			$	6,124	$	6,505
Investment securities
Investment securities, net						0		0	%		0.00	%			$	0	$	0
Net Investments ($241,840 pledged as collateral under borrowing arrangements) (3)						755		173	%		6.49	%	$	206,047	$	479,604	$	473,157

(1) Represents the actual or weighted average interest or dividend rate of the respective security or portfolio as of the date indicated. Investments without an interest rate or with a rate of 0.00% are considered non-income producing.

(2) Included in secured mezzanine commercial loans and other commercial loans was $2,202 of interest income capitalized into the outstanding investment balances, in accordance with the terms of the investment contract.

(3) The ratio of restricted securities fair value to net assets is 172%.

(4) Gross unrealized appreciation, gross unrealized depreciation, and net appreciation for federal income tax purposes totaled $46,196, $12,155 and $34,041, respectively. The tax cost of investments was $439,116.

(5) For revolving lines of credit the amount shown is the cost at December 31, 2013.

* Less than 1.0%

** Not an eligible portfolio company as such term is defined in Section 2(a)(46) of the 1940 Act. The percentage value of all non-eligible portfolio companies to totaled assets of Medallion Financial on an unconsolidated basis was up to 23% and up to 27% on a consolidated basis. Under the 1940 Act, we may not acquire any non-qualifying assets, unless at the time such acquisition is made, qualifying assets, which include securities of eligible portfolio companies, represent at least 70% of our total assets. The status of these assets under the 1940 Act are subject to change. We monitor the status of these assets on an ongoing basis.

& Loan is on nonaccrual status, or past due on contractual payments, and is therefore considered non-income producing.

&& Some or all of the securities are non-income producing as per & above.

# Publicly traded but sales subject to applicable Rule 144 limitations.

## Pledged as collateral under borrowing arrangements.

+ Includes various warrants, all of which have a cost and fair value of zero at December 31, 2013.

The Summary Schedule of Investments does not reflect the Company’s complete portfolio holdings. It includes the Company’s 50 largest holdings and each investment of any issuer that exceeds 1% of the Company’s net assets. “Various Other” represents all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). Footnotes above may apply to securities that are included in “Various Other”. For further detail, the complete schedule of portfolio holdings is available (i) without charge, upon request, by calling (877) MEDALLION; and (ii) on the SEC’s website at http://www.sec.gov. Filed as Exhibit 99.1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on March 5, 2014 (File No. 814-00188)

Page 38 of 74

Medallion Financial Corp.

Consolidated Schedule of Investments In and Advances to Affiliates

As Of And For the Year Ended 12/31/2013

Name of issuer and title of issue	Number of shares (all restricted unless otherwise noted)	Equity in net profit and (loss) for the year			Amount of dividends or interest (1)		Value as of 12/31/13
(Dollars in thousands)
Medallion Bank - common stock	1,000,000 shares - 100% of common stock		17,152			12,000	$	101,478
Medallion Hamptons Holding LLC - membership interest	100% of membership interest		814			0	$	3,750
Medallion Fine Art, Inc. - common stock (2)	1,000 shares - 100% of common stock		(492	)		0	$	1,880
Medallion Servicing Corp. - common stock	1,000 shares - 100% of common stock		(16	)		0	$	822
Generation Outdoor, Inc. - common stock	1,000 shares - 100% of common stock		26			26	$	439
LAX Group LLC - membership interest	42% of membership interest		(424	)		0	$	254
Total investments in Medallion Bank and other controlled subsidiaries			17,060			12,026	$	108,623
Medallion Motorsports, LLC - membership interest (3)	75% of membership interest		0			0	$	1,954
Appliance Recycling Centers of America Inc - common stock	8.86% of common stock		0			0	$	1,299
Summit Medical, Inc - common stock	9.25% of common stock		0			0	$	135
Other equity investments other than in investments in and advances to affiliates			—			—	$	3,117
Total equity investments			0			0	$	6,505
Total investments in Medallion Bank and other controlled subsidiaries and equity investments			17,060			12,026	$	115,128
Other interest and dividend income other than from investments in and advances to affiliates						35
Total dividend and interest income on short term investments						12,061
Total investments in and advances to affiliates							$	112,011
Other equity investments other than in investments in and advances to affiliates							$	3,117
Total investments in Medallion Bank and other controlled subsidiaries and equity investments							$	115,128

(1) Investments with an amount of 0 are considered non-income producing.

(2) Additionally, the Company has a loan due from Medallion Fine Art, Inc in the amount of $5,976 as of December 31, 2013.

(3) In addition to the equity ownership, a controlled subsidiary of the Company has a $3,039 loan to an affiliate of Medallion Motorsports, LLC which is carried at $4,131, and on which $389 of interest income was earned during 2013.

The table below provides a recap of the changes in the investment in the respective issuers for the year ended December 31, 2013.

	Value as of 12/31/12		Gross Additions / Investments		Gross Reductions / Distributions		Net equity earnings in profit and loss, unrealized appreciation  and depreciation			Other Adjustments			Value as of 12/31/13
(Dollars in thousands)
Medallion Bank - common stock	$	92,169		5,000		12,844		17,152			1		$	101,478
Medallion Hamptons Holding LLC - membership interest	$	2,696		240				814					$	3,750
Medallion Motorsports, LLC - membership interest (1)	$	454		1,500									$	1,954
Medallion Fine Art, Inc. - common stock (2)	$	2,843		900		1,370		(492	)		(1	)	$	1,880
Appliance Recycling Centers of America Inc - common stock	$	579						720					$	1,299
Medallion Servicing Corp. - common stock	$	613		1,517		1,292		(16	)				$	822
Generation Outdoor, Inc. - common stock	$	301		1,087		975		26					$	439
LAX Group LLC - membership interest	$	461		218				(424	)		(1	)	$	254

(1) In addition to the equity ownership, a controlled subsidiary of the Company has a $3,039 loan to an affiliate of Medallion Motorsports, LLC which is carried at $4,131, and on which $389 of interest income was earned during 2013.

(2) Additionally, the Company has a loan due from Medallion Fine Art, Inc in the amount of $5,976 as of December 31, 2013, the full amount of which was advanced during the year ended December 31, 2013.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

We are a specialty finance company that has a leading position in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. A wholly-owned portfolio company of ours, Medallion Bank, also originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, and trailers, and to finance small-scale home improvements. Since 1996, the year in which we became a public company, we have increased our taxicab medallion loan portfolio at a compound annual growth rate of 5%, and our commercial loan portfolio at a compound annual growth rate of 2% (10% and 5% on a managed basis when combined with Medallion Bank). Since Medallion Bank acquired a consumer loan portfolio and began originating consumer loans in 2004, it has increased its consumer loan portfolio at a compound annual growth rate of 17%. Total assets under our management and the management of our unconsolidated wholly-owned subsidiaries, which includes our managed net investment portfolio, as well as assets serviced for third party investors, were $1,485,000,000 as of September 30, 2014, and $1,330,000,000 and $1,290,373,000 as of December 31, 2013 and September 30, 2013, and have grown at a compound annual growth rate of 11% from $215,000,000 at the end of 1996.

Our loan-related earnings depend primarily on our level of net interest income. Net interest income is the difference between the total yield on our loan portfolio and the average cost of borrowed funds. We fund our operations through a wide variety of interest-bearing sources, such as revolving bank facilities, bank certificates of deposit issued to customers, debentures issued to and guaranteed by the SBA, and bank term debt. Net interest income fluctuates with changes in the yield on our loan portfolio and changes in the cost of borrowed funds, as well as changes in the amount of interest-bearing assets and interest-bearing liabilities held by us. Net interest income is also affected by economic, regulatory, and competitive factors that influence interest rates, loan demand, and the availability of funding to finance our lending activities. We, like other financial institutions, are subject to interest rate risk to the degree that our interest-earning assets reprice on a different basis than our interest-bearing liabilities.

We also provide debt, mezzanine, and equity investment capital to companies in a variety of industries, consistent with our investment objectives. These investments may be venture capital style investments which may not be fully collateralized. Medallion Capital’s investments are typically in the form of secured debt instruments with fixed interest rates accompanied by warrants to purchase an equity interest for a nominal exercise price (such warrants are included in equity investments on the consolidated balance sheets). Interest income is earned on the debt instruments.

We are a closed-end, management investment company under the 1940 Act. We have elected to be treated as a BDC under the 1940 Act. We have also elected to be treated for federal income tax purposes as a RIC under Subchapter M of the Code. As a RIC, we generally do not have to pay corporate-level federal income taxes on any net ordinary income or capital gains that we distribute to our shareholders as distributions if we meet certain source-of-income and asset diversification requirements. Medallion Bank is not a RIC and must pay corporate-level US federal and state income taxes.

Our wholly-owned portfolio company, Medallion Bank, is a bank regulated by the FDIC and the Utah Department of Financial Institutions which originates taxicab medallion, commercial, and consumer loans, raises deposits, and conducts other banking activities. Medallion Bank generally provides us with our lowest cost of funds which it raises through bank certificates of deposit issued to its customers. To take advantage of this low cost of funds, we refer a portion of our taxicab medallion and commercial loans to Medallion Bank, which then originates these loans. However, the FDIC restricts the amount of taxicab medallion loans that Medallion Bank may finance to three times Tier 1 capital, or $438,726,000 as of September 30, 2014. We earn referral fees for these activities. All of these servicing activities have been assigned to MSC. As a non-investment company, Medallion Bank is not consolidated with the Company.

Realized gains or losses on investments are recognized when the investments are sold or written off. The realized gains or losses represent the difference between the proceeds received from the disposition of portfolio assets, if any, and the cost of such portfolio assets. In addition, changes in unrealized appreciation or depreciation on investments are recorded and represent the net change in the estimated fair values of the portfolio assets at the end of the period as compared with their estimated fair values at the beginning of the period. Generally, realized gains (losses) on investments and changes in unrealized appreciation (depreciation) on investments are inversely related. When an appreciated asset is sold to realize a gain, a decrease in the previously recorded unrealized appreciation occurs. Conversely, when a loss previously recorded as unrealized depreciation is realized by the sale or other disposition of a depreciated portfolio asset, the reclassification of the loss from unrealized to realized causes a decrease in net unrealized depreciation and an increase in realized loss.

Our investment in Medallion Bank, as a wholly owned portfolio investment, is also subject to quarterly assessments of fair value. We conduct a thorough valuation analysis as described previously, and determine whether any factors give rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional marketplace restrictions, such as the ability to transfer industrial bank charters. As a result of this valuation process, we used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments, although changes in these restrictions and other applicable factors could change these conclusions in the future.

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Trends in Investment Portfolio

Our investment income is driven by the principal amount of and yields on our investment portfolio. To identify trends in the balances and yields, the following table illustrates our investments at fair value, grouped by medallion loans, commercial loans, equity investments, and investment securities, and also presents the portfolio information for Medallion Bank, at the dates indicated.

	September 30, 2014						June 30, 2014						March 31, 2014						December 31, 2013						September 30, 2013
(Dollars in thousands)	Interest Rate (1)			Investment Balances			Interest Rate (1)			Investment Balances			Interest Rate (1)			Investment Balances			Interest Rate (1)			Investment Balances			Interest Rate (1)			Investment Balances
Medallion loans
New York		3.61	%	$	204,662			3.56	%	$	217,188			3.54	%	$	211,864			3.52	%	$	202,954			3.54	%	$	198,739
Chicago		4.97			39,538			4.92			41,636			4.93			41,896			4.94			42,175			4.95			41,244
Boston		4.69			27,435			4.71			27,611			4.77			26,494			4.91			23,622			5.12			22,532
Newark		5.36			24,727			5.42			24,404			5.45			23,693			5.58			21,681			5.83			20,211
Cambridge		4.83			5,981			4.87			6,012			5.07			6,000			5.06			6,008			5.28			5,355
Other		6.58			837			6.29			1,122			6.30			1,140			6.52			1,178			6.35			3,291
Total medallion loans		4.06			303,180			4.01			317,973			4.02			311,087			4.02			297,618			4.08			291,372
Deferred loan acquisition costs					322						304						255						243						173
Unrealized depreciation on loans					—						—						—						—						—
Net medallion loans				$	303,502					$	318,277					$	311,342					$	297,861					$	291,545
Commercial loans
Secured mezzanine		12.25	%	$	54,265			11.89	%	$	46,425			11.89	%	$	46,498			11.69	%	$	46,100			12.48	%	$	51,572
Asset based		5.66			3,071			5.55			4,603			5.22			5,481			5.32			7,803			5.39			7,073
Other secured commercial		9.92			15,041			9.90			14,691			9.97			13,583			9.89			13,336			9.29			11,923
Total commercial loans		11.49			72,377			11.00			65,719			10.93			65,562			10.60			67,239			11.23			70,568
Deferred loan acquisition income					(61	)					(30	)					(41	)					(79	)					(58	)
Unrealized depreciation on loans					(8,060	)					(6,987	)					(6,606	)					(6,992	)					(7,449	)
Net commercial loans				$	64,256					$	58,702					$	58,915					$	60,168					$	63,061
Investment in Medallion Bank and other controlled subsidiaries, net(3)		10.57	%	$	127,708			10.13	%	$	123,456			10.88	%	$	110,266			11.05	%	$	108,623			12.21	%	$	102,377
Equity investments		0.61	%	$	5,836			0.69	%	$	5,286			0.58	%		6,125			0.86	%	$	6,124			0.89	%	$	5,653
Unrealized appreciation on equities					1,992						1,928						676						381						733
Net equity investments				$	7,828					$	7,214					$	6,801					$	6,505					$	6,386
Investment securities		—	%	$	—			—	%	$	—			—	%	$	—			—	%	$	—			—	%	$	—
Investments at cost(2)		6.71	%	$	509,101			6.35	%	$	512,434			6.43	%	$	493,040			6.49	%	$	479,604			6.89	%	$	469,970
Deferred loan acquisition costs					261						274						214						164						115
Unrealized appreciation on equities					1,992						1,928						676						381						733
Unrealized depreciation on loans					(8,060	)					(6,987	)					(6,606	)					(6,992	)					(7,449	)
Net investments(3)				$	503,294					$	507,649					$	487,324					$	473,157					$	463,369
Medallion Bank investments
Consumer loans		14.94	%	$	462,005			15.18	%	$	424,009			15.49	%	$	373,478			15.67	%	$	353,355			15.92	%	$	341,273
Medallion loans		3.82			385,617			3.78			388,098			3.78			366,998			3.77			349,015			3.81			346,639
Commercial loans		4.63			43,312			4.70			43,829			4.73			42,143			4.91			53,786			4.94			66,242
Investment securities		2.56			27,742			2.59			28,995			2.55			25,108			2.47			24,925			2.60			25,618
Medallion Bank investments at cost (2)		9.41			918,676			9.25			884,931			9.20			807,727			9.19			781,081			9.17			779,772
Deferred loan acquisition costs					10,427						10,162						9,632						9,553						9,605
Unrealized depreciation on investment securities					(183	)					(172	)					(405	)					(803	)					(504	)
Premiums paid on purchased securities					287						305						326						342						362
Unrealized depreciation on loans					(18,090	)					(18,116	)					(16,966	)					(16,434	)					(17,680	)
Medallion Bank net investments				$	911,117					$	877,110					$	800,314					$	773,739					$	771,555

(1) Represents the weighted average interest or dividend rate of the respective portfolio as of the date indicated.

(2) The weighted average interest rate for the entire managed loan portfolio (medallion, commercial, and consumer loans) was 8.40%, 8.15%, 8.05%, 8.05%, and 8.12% at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013.

(3) Includes $1,386, $736, $724, $814, and $869 of unrealized appreciation on Medallion Hamptons Holdings as of September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013.

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Investment Activity

The following table sets forth the components of investment activity in the investment portfolio for the periods indicated.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2014			2013			2014			2013
Net investments at beginning of period	$	507,649		$	460,340		$	473,157		$	455,010
Investments originated (1)		31,996			52,165			104,669			186,265
Repayments of investments (1)		(38,538	)		(50,626	)		(83,195	)		(181,913	)
Net realized gains (losses) on investments		(193	)		(596	)		(1,051	)		(515	)
Net increase in unrealized appreciation (2)		2,372			2,103			9,658			4,673
(Amortization) accretion of origination (costs) fees		8			(17	)		56			(151	)
Net (decrease) increase in investments		(4,355	)		3,029			30,137			8,359
Net investments at end of period	$	503,294		$	463,369		$	503,294		$	463,369

(1) Includes refinancings.

(2) Excludes net unrealized appreciation (depreciation) of ($713) and ($523) for the quarter and nine months ended September 30, 2014, and $475 and $6,340 for the comparable 2013 periods, related to foreclosed properties and other assets.

PORTFOLIO SUMMARY

Total Portfolio Yield

The weighted average yield (which is calculated by dividing the aggregate yield of each investment in the portfolio by the aggregate portfolio balance and does not include expenses and sales load for any offering) of the total portfolio at September 30, 2014 was 6.71% (5.49% for the loan portfolio), an increase of 22 basis points from 6.49% at December 31, 2013, and a decrease of 18 basis points from 6.89% at September 30, 2013. The weighted average yield of the total managed portfolio at September 30, 2014 was 8.20% (8.40% for the loan portfolio), an increase of 35 basis points from 7.85% at December 31, 2013, and an increase of 28 basis points from 7.92% at September 30, 2013. The slight changes in 2014 reflected changes in the portfolio mix.

Medallion Loan Portfolio

Our medallion loans comprised 60% of the net portfolio of $503,294,000 at September 30, 2014, compared to 63% of the net portfolio of $473,157,000 at December 31, 2013, and 63% of $463,369,000 at September 30, 2013. Our managed medallion loans of $688,017,000 comprised 53% of the net managed portfolio of $1,293,590,000 at September 30, 2014, compared to 56% of the net managed portfolio of $1,144,596,000 at December 31, 2013, and 56% of $1,138,848,000 at September 30, 2013. The medallion loan portfolio increased by $5,641,000 or 2% in 2014 (an increase of $42,047,000 or 7% on a managed basis), primarily reflecting loan portfolio growth in all markets and the sourcing of loans to Medallion Bank. Total medallion loans serviced for third parties were $28,709,000, $24,875,000, and $28,118,000 at September 30, 2014, December 31, 2013, and September 30, 2013.

The weighted average yield of the medallion loan portfolio at September 30, 2014 was 4.06%, an increase of 4 basis points from 4.02% at December 31, 2013, and a decrease of 2 basis points from 4.08% at September 30, 2013. The weighted average yield of the managed medallion loan portfolio at September 30, 2014 was 3.93%, an increase of 4 basis points from 3.89% at December 31, 2013, and unchanged from 3.93% at September 30, 2013. The slight changes in 2014 reflected changes in the portfolio mix. At September 30, 2014, December 31, 2013, and September 30, 2013, 32% of the medallion loan portfolio represented loans outside New York. At September 30, 2014, 26% of the managed medallion loan portfolio represented loans outside New York, compared to 26% at December 31, 2013 and 25% at September 30, 2013. We continue to focus our efforts on originating higher yielding medallion loans outside the New York market.

Commercial Loan Portfolio

Our commercial loans represented 13%, 13%, and 14% of the net investment portfolio as of September 30, 2014, December 31, 2013, and September 30, 2013, and were 8%, 10%, and 11% on a managed basis. Commercial loans increased by $4,088,000 or 7% during 2014 (decreased $5,785,000 or 5% on a managed basis), primarily reflecting loan repayments in the high yield mezzanine and asset-based loan portfolios, partially offset by increases in the other commercial secured loan portfolio, and in the managed loan portfolio by decreases in the asset-based loan portfolio at Medallion Bank . Net commercial loans serviced for third parties were $1,137,000 at September 30, 2014, and loans serviced by third parties were $255,000 at December 31, 2013 and $10,981,000 at September 30, 2013.

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The weighted average yield of the commercial loan portfolio at September 30, 2014 was 11.49%, an increase of 89 basis points from 10.60% at December 31, 2013, and an increase of 26 basis points from 11.23% at September 30, 2013. The weighted average yield of the managed commercial loan portfolio at September 30, 2014 was 8.92%, an increase of 85 basis points from 8.07% at December 31, 2013, and an increase of 73 basis points from 8.19% at September 30, 2013. The fluctuations primarily reflect the higher yield on the mezzanine portfolio. We continue to originate adjustable-rate and floating-rate loans tied to the prime rate to help mitigate our interest rate risk in a rising interest rate environment. At September 30, 2014, variable-rate loans represented approximately 5% of the commercial portfolio, compared to 12% and 11% at December 31, 2013 and September 30, 2013, and were 38%, 49%, and 52% on a managed basis. Although this strategy initially produces a lower yield, we believe that this strategy mitigates interest rate risk by better matching our earning assets to their adjustable-rate funding sources.

Consumer Loan Portfolio

Our managed consumer loans, all of which are held in the portfolio managed by Medallion Bank, represented 36%, 31%, and 30% of the managed net investment portfolio as of September 30, 2014, December 31, 2013, and September 30, 2013. Medallion Bank originates consumer loans secured by recreational vehicles, boats, motorcycles, and trailers, and also finances small-scale home improvements in all 50 states. The portfolio is serviced by a third party subsidiary of a major commercial bank.

The weighted average gross yield of the managed consumer loan portfolio was 14.94% at September 30, 2014, compared to 15.67% and 15.92% at December 31, 2013 and September 30, 2013. Adjustable rate loans represented 41%, 68%, and 70% of the managed consumer portfolio at September 30, 2014, December 31, 2013, and September 30, 2013.

Delinquency and Loan Loss Experience

We generally follow a practice of discontinuing the accrual of interest income on our loans that are in arrears as to payments for a period of 90 days or more. We deliver a default notice and begin foreclosure and liquidation proceedings when management determines that pursuit of these remedies is the most appropriate course of action under the circumstances. A loan is considered to be delinquent if the borrower fails to make a payment on time; however, during the course of discussion on delinquent status, we may agree to modify the payment terms of the loan with a borrower that cannot make payments in accordance with the original loan agreement. For loan modifications, the loan will only be returned to accrual status if all past due interest and principal payments are brought fully current. For credit that is collateral based, we evaluate the anticipated net residual value we would receive upon foreclosure of such loans, if necessary. There can be no assurance, however, that the collateral securing these loans will be adequate in the event of foreclosure. For credit that is cash flow-based, we assess our collateral position, and evaluate most of these relationships as ongoing businesses, expecting to locate and install a new operator to run the business and reduce the debt.

For the consumer loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off to realized losses. If the collateral is repossessed, a realized loss is recorded to write the collateral down to its net realizable value, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off as a realized loss, and any excess proceeds are recorded as a realized gain. Proceeds collected on charged off accounts are recorded as realized gains. All collection, repossession, and recovery efforts are handled on behalf of Medallion Bank by the servicer.

The following table shows the trend in loans 90 days or more past due as of the dates indicated.

	September 30, 2014					June 30, 2014					March 31, 2014					December 31, 2013					September 30, 2013
(Dollars in thousands)	Amount		%(1)			Amount		%(1)			Amount		%(1)			Amount		%(1)			Amount		%(1)
Medallion loans	$	—		0.0	%	$	—		0.0	%	$	—		0.0	%	$	—		0.0	%	$	582		0.2	%
Commercial loans
Secured mezzanine		2,018		0.5			2,018		0.6			2,018		0.6			2,018		0.6			2,182		0.6
Asset-based receivable		304		0.1			494		0.1			494		0.1			494		0.1			1,054		0.3
Other secured commercial		—		0.0			—		0.0			—		0.0			—		0.0			—		0.0
Total commercial loans		2,322		0.6			2,512		0.7			2,512		0.7			2,512		0.7			3,236		0.9
Total loans 90 days or more past due	$	2,322		0.6	%	$	2,512		0.7	%	$	2,512		0.7	%	$	2,512		0.7	%	$	3,818		1.1	%
Total Medallion Bank loans	$	2,799		0.3	%	$	3,374		0.4	%	$	3,721		0.5	%	$	3,817		0.5	%	$	14,165		1.9	%
Total managed loans 90 days or more past due	$	5,121		0.4	%	$	5,886		0.5	%	$	6,233		0.5	%	$	6,329		0.6	%	$	17,983		1.6	%

(1) Percentages are calculated against the total or managed loan portfolio, as appropriate.

A third party finance company sold various participations in asset based loans to Medallion Business Credit and Medallion Bank. In April 2013, the aggregate balance of the participations was approximately $13.8 million, $12.9 million of which were held by Medallion Bank. That amount was divided between seven separate borrowers operating in a variety of industries. In April 2013, the third party finance company became the subject of an involuntary bankruptcy petition filed by its bank lenders. Among other things, the bank lenders alleged that the third party finance company fraudulently misrepresented its borrowing

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availability under its credit facility with the bank lenders and are seeking the third party finance company’s liquidation. In May 2013, the bankruptcy court presiding over the third party finance company’s case entered an order converting the involuntary chapter 7 case to a chapter 11 case. We and Medallion Bank have placed these loans on nonaccrual, and reversed interest income. In addition, we have established valuation allowances against the outstanding balances. On May 31, 2013, we commenced an adverse proceeding against the third party finance company and the bank lenders seeking declaratory judgment that our loan participations are true participations and not subject to the bankruptcy estate or to the bank lender’s security interest in the third party finance company’s assets. The third party finance company and bank lenders are contesting our position. In April 2014, we and Medallion Bank received a decision from the court granting summary judgment in our favor with respect to the issue of whether our loan participations are true participations. The remaining issues are still being litigated. Although we believe the claims raised by the third party finance company and the bank lenders are without merit and will vigorously defend against them, we cannot at this time predict the outcome of this litigation or determine our potential exposure. At September 30, 2014, five of the seven secured borrowers had refinanced their loans in full with third parties, and the related proceeds are held in escrow pending resolution of the bankruptcy proceedings. One loan was charged off in September 2014. The one remaining loan is still outstanding. The balances related to the paid off loans have been reclassified to other assets on the consolidated balance sheet. The table below summarizes these receivables and their status with the Company and Medallion Bank.

(Dollars in thousands)	The Company			Medallion Bank			Total
Loans outstanding	$	289		$	2,291		$	2,580
Loans charged off (1)		(190	)		(940	)		(1,130	)
Valuation allowance		(50	)		(675	)		(725	)
Net loans outstanding		49			676			725
Other receivables		560			10,642			11,202
Valuation allowance		(168	)		(3,193	)		(3,361	)
Net other receivables		392			7,449			7,841
Total net outstanding		441			8,125			8,566
Income foregone in 2014		25			36			61
Total income foregone	$	49		$	72		$	121

(1) The income foregone on the charged off loan was $20 for the Company and $96 for Medallion Bank.

In general, collection efforts since the establishment of our collection department have contributed to the reduction in overall delinquencies of medallion and other secured commercial loans. Secured mezzanine delinquencies remained at the same level in recent periods as a result of continued collection efforts. The delinquencies in the asset-based and Medallion Bank loan portfolios reflects the status of the loans described in the preceding paragraph. Medallion Bank continued with low levels of delinquency in its consumer loan portfolio. We are actively working with each delinquent borrower/obligor to bring them current, and believe that any potential loss exposure is reflected in our mark-to-market estimates on each investment. Although there can be no assurances as to changes in the trend rate and further negative changes in the economy, management believes that any loss exposures are properly reflected in reported asset values.

We monitor delinquent loans for possible exposure to loss by analyzing various factors, including the value of the collateral securing the loan and the borrower’s prior payment history. Under the 1940 Act, our loan portfolio must be recorded at fair value or “marked-to-market.” Unlike other lending institutions, we are not permitted to establish reserves for loan losses. Instead, the valuation of our portfolio is adjusted quarterly to reflect our estimate of the current realizable value of our loan portfolio. Since no ready market exists for this portfolio, fair value is subject to the good faith determination of our Board of Directors. Because of the subjectivity of these estimates, there can be no assurance that in the event of a foreclosure or the sale of portfolio loans we would be able to recover the amounts reflected on our balance sheet.

In determining the value of our portfolio, the Board of Directors may take into consideration various factors such as the financial condition of the borrower and the adequacy of the collateral. For example, in a period of sustained increases in market interest rates, the Board of Directors could decrease its valuation of the portfolio if the portfolio consists primarily of long-term, fixed-rate loans. Our valuation procedures are designed to generate values that approximate that which would have been established by market forces, and are therefore subject to uncertainties and variations from reported results. Based upon these factors, net unrealized appreciation or depreciation on investments is determined based on the fluctuations of our estimate of the current realizable value of our portfolio from our cost basis.

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The following tables set forth the changes in our unrealized appreciation (depreciation) on investments, other than investments in controlled subsidiaries, for the 2014 and 2013 quarters shown below.

(Dollars in thousands)	Medallion Loans		Commercial Loans			Equity Investments			Foreclosed Properties			Total
Balance December 31, 2013	$	—	($	6,992	)	$	381		$	40,404		$	33,793
Net change in unrealized
Appreciation on investments		—		—			100			—			100
Depreciation on investments		—		74			195			381			650
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		312			—			—			312
Balance March 31, 2014		—		(6,606	)		676			40,785			34,855
Net change in unrealized
Appreciation on investments		—		—			640			(951	)		(311	)
Depreciation on investments		—		(394	)		(62	)		761			305
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		13			674			—			687
Balance June 30, 2014		—		(6,987	)		1,928			40,595			35,536
Net change in unrealized
Appreciation on investments		—		—			(495	)		(713	)		(1,208	)
Depreciation on investments		—		(1,173	)		559			—			(614	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—			—
Losses on investments		—		100			—			—			100
Balance September 30, 2014	$	—	($	8,060	)	$	1,992		$	39,882		$	33,814

(Dollars in thousands)	Medallion Loans		Commercial Loans			Equity Investments			Foreclosed Properties		Total
Balance December 31, 2012	$	—	($	7,844	)	$	44		$	33,757	$	25,957
Net change in unrealized
Appreciation on investments		—		—			(11	)		3,012		3,001
Depreciation on investments		—		(50	)		14			—		(36	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—		—
Losses on investments		—		—			—			—		—
Balance March 31, 2013		—		(7,894	)		47			36,769		28,922
Net change in unrealized
Appreciation on investments		—		—			505			2,853		3,358
Depreciation on investments		—		(66	)		273			—		207
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—		—
Losses on investments		—		—			—			—		—
Balance June 30, 2013		—		(7,960	)		825			39,622		32,487
Net change in unrealized
Appreciation on investments		—		—			197			475		672
Depreciation on investments		—		277			(654	)		—		(377	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—		—			—			—		—
Losses on investments		—		234			365			—		599
Balance September 30, 2013	$	—	($	7,449	)	$	733		$	40,097	$	33,381

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The following table presents credit-related information for the investment portfolios as of the dates shown.

(Dollars in thousands)	September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013
Total loans
Medallion loans	$	303,502		$	318,277		$	311,342		$	297,861		$	291,545
Commercial loans		64,256			58,702			58,915			60,168			63,061
Total loans		367,758			376,979			370,257			358,029			354,606
Investment in Medallion Bank and other controlled subsidiaries		127,708			123,456			110,266			108,623			102,377
Equity investments (1)		7,828			7,214			6,801			6,505			6,386
Investment securities		—			—			—			—			—
Net investments	$	503,294		$	507,649		$	487,324		$	473,157		$	463,369
Net investments at Medallion Bank and other controlled subsidiaries	$	911,117		$	877,110		$	800,314		$	773,739		$	771,555
Managed net investments	$	1,293,590		$	1,267,482		$	1,184,257		$	1,144,596		$	1,138,848
Unrealized appreciation (depreciation) on investments
Medallion loans	$	—		$	—		$	—		$	—		$	—
Commercial loans		(8,060	)		(6,987	)		(6,606	)		(6,992	)		(7,449	)
Total loans		(8,060	)		(6,987	)		(6,606	)		(6,992	)		(7,449	)
Investment in Medallion Bank and other controlled subsidiaries (2)		—			—			—			—			—
Equity investments		1,992			1,928			676			381			733
Investment securities		—			—			—			—			—
Total unrealized depreciation on investments (2)	($	6,068	)	($	5,059	)	($	5,930	)	($	6,611	)	($	6,716	)
Net unrealized depreciation on investments at Medallion Bank and other controlled subsidiaries	($	18,273	)	($	18,288	)	($	17,371	)	($	17,237	)	($	18,184	)
Managed total unrealized depreciation on investments(2)	($	24,341	)	($	23,348	)	($	23,301	)	($	23,848	)	($	24,900	)
Unrealized appreciation (depreciation) as a % of balances outstanding(3)
Medallion loans		—	%		—	%		—	%		—	%		—	%
Commercial loans		(11.14	)		(10.63	)		(10.08	)		(10.40	)		(10.56	)
Total loans		(2.15	)		(1.82	)		(1.75	)		(1.92	)		(2.06	)
Investment in Medallion Bank and other controlled subsidiaries		—			—			—			—			—
Equity investments		34.13			36.47			11.04			6.22			12.98
Investment securities		—			—			—			—			—
Net investments		(1.19	)		(0.99	)		(1.20	)		(1.38	)		(1.43	)
Net investments at Medallion Bank and other controlled subsidiaries		(1.99	%)		(2.07	%)		(2.15	%)		(2.21	%)		(2.33	%)
Managed net investments		(1.86	%)		(1.82	%)		(1.95	%)		(2.06	%)		(2.16	%)

(1) Represents common stock and warrants held as investments.

(2) Excludes $1,386, $736, $724, $814, and $869 of unrealized appreciation on Medallion Hamptons Holding, a wholly-owned subsidiary, at September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013, and September 30, 2013.

(3) Unlike other lending institutions, we are not permitted to establish reserves for loan losses. Instead, the valuation of our portfolio is adjusted quarterly to reflect estimates of the current realizable value of the investment portfolio. These percentages represent the discount or premium that investments are carried on the books at, relative to their par or gross value.

The following table presents the gain/loss experience on the investment portfolios for the three and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2014			2013			2014			2013
Realized gains (losses) on loans and equity investments
Medallion loans	$	—		$	—		$	—		$	40
Commercial loans		(193	)		(231	)		(426	)		(190	)
Total loans		(193	)		(231	)		(426	)		(150	)
Investment in Medallion Bank and other controlled subsidiaries		—			—			—			—
Equity investments		—			(365	)		(625	)		(365	)
Investment securities		—			—			—			—
Total realized gains (losses) on loans and equity investments	($	193	)	($	596	)	($	1,051	)	($	515	)
Net realized losses on investments at Medallion Bank and other controlled subsidiaries	($	2,270	)	($	1,801	)	($	4,630	)	($	4,245	)
Total managed realized losses on loans and equity investments	($	2,463	)	($	2,397	)	($	5,681	)	($	4,760	)
Realized gains (losses) as a % of average balances outstanding
Medallion loans		—	%		—	%		—	%		0.02	%
Commercial loans		(1.12	)		(1.32	)		(0.85	)		(0.37	)
Total loans		(0.20	)		(0.25	)		(0.15	)		(0.06	)
Investment in Medallion Bank and other controlled subsidiaries		—			—			—			—
Equity investments		—			(25.03	)		(14.24	)		(9.71	)
Investment securities		—			—			—			—
Net investments		(0.15	)		(0.50	)		(0.28	)		(0.15	)
Net investments at Medallion Bank and other controlled subsidiaries		(0.99	)		(0.93	)		(0.73	)		(0.78	)
Managed net investments		(0.75	%)		(0.84	%)		(0.62	%)		(0.58	%)

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The table below summarizes components of unrealized and realized gains and losses in the investment portfolio for the three and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2014			2013			2014			2013
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	($	495	)	$	197		$	244		$	691
Unrealized depreciation		(614	)		(377	)		(800	)		(207	)
Net unrealized appreciation on investment in Medallion Bank and other controlled subsidiaries		3,382			1,684			9,115			3,590
Realized gains		—			—			—			—
Realized losses		99			599			1,099			599
Net unrealized gains (losses) on foreclosed properties and other assets		(713	)		475			(523	)		6,340
Total	$	1,659		$	2,578		$	9,135		$	11,013
Net realized gains (losses) on investments
Realized gains	$	—		$	—		$	—		$	—
Realized losses		(99	)		(599	)		(1,099	)		(599	)
Other gains		—			—			49			—
Direct recoveries (charge offs)		(94	)		3			(1	)		84
Realized losses on foreclosed properties and other assets		—			—			—			—
Total	($	193	)	($	596	)	($	1,051	)	($	515	)

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Investment in Medallion Bank and Other Controlled Subsidiaries

Investment in Medallion Bank and other controlled subsidiaries represented 25%, 23%, and 22% of our total portfolio at September 30, 2014, December 31, 2013, and September 30, 2013. The portfolio company investments primarily represent the wholly-owned unconsolidated subsidiaries of ours, substantially all of which is represented by our investment in Medallion Bank, a non-pass-through, taxpaying entity. In addition, to facilitate maintenance of Medallion Bank’s capital ratio requirement and to provide the necessary capital for continued growth, we periodically make capital contributions to Medallion Bank, including $10,000,000 and $5,000,000 in 2014 and 2013. Separately, Medallion Bank declared dividends to us of $4,000,000 and $10,000,000 in the 2014 third quarter and nine months, and $3,000,000 and $8,500,000 in the comparable 2013 periods. See Note 3 of the consolidated financial statements for additional information about these investments.

Equity Investments

Equity investments were 2%, 1% and 1% of our total portfolio at September 30, 2014, December 31, 2013, and September 30, 2013. Equity investments were 1% of our total managed portfolio at September 30, 2014, December 31, 2013, and September 30, 2013. Equity investments are comprised of common stock, partnership interests, and warrants.

Investment Securities

Investment securities were 0% of our total portfolio at September 30, 2014, December 31, 2013, and September 30, 2013. Investment securities were 2% of our total managed portfolio at September 30, 2014, December 31, 2013, and September 30, 2013. The investment securities are primarily adjustable-rate mortgage-backed securities purchased by Medallion Bank to better utilize required cash liquidity.

Trend in Interest Expense

Our interest expense is driven by the interest rates payable on our short-term credit facilities with banks, bank certificates of deposit, fixed-rate, long-term debentures issued to the SBA, and other short-term notes payable. We established a medallion lending relationship with DZ Bank in December 2008 that provides for growth in the portfolio at generally lower rates than under prior facilities. In addition, Medallion Bank began raising brokered bank certificates of deposit during 2004, which were at our lowest borrowing costs. As a result of Medallion Bank raising funds through certificates of deposit as previously noted, we were able to realign the ownership of some of our medallion loans and related assets to Medallion Bank allowing us and our subsidiaries to use cash generated through these transactions to retire debt with higher interest rates. In addition, Medallion Bank is able to bid on these deposits at a wide variety of maturity levels which allows for improved interest rate management strategies.

Our cost of funds is primarily driven by the rates paid on our various debt instruments and their relative mix, and changes in the levels of average borrowings outstanding. See Note 4 to the consolidated financial statements for details on the terms of all outstanding debt. Our debentures issued to the SBA typically have terms of ten years.

We measure our borrowing costs as our aggregate interest expense for all of our interest-bearing liabilities divided by the average amount of such liabilities outstanding during the period. The following table shows the average borrowings and related borrowing costs for the three and nine months ended September 30, 2014 and 2013. Our average balances increased in the quarter reflecting recent portfolio growth and decreased in the nine months reflecting the impact of the recent equity offering and Medallion Bank’s average balances increased, reflecting the strong growth in the consumer loan portfolio. The increase in borrowing costs reflected the bottoming of interest rates and changes in our funding mix, and for Medallion Bank, also reflected a lengthening of the maturity terms of its certificate of deposits.

	Three Months Ended							Nine Months Ended
(Dollars in thousands)	Interest Expense		Average Balance		Average Borrowing Costs			Interest Expense		Average Balance		Average Borrowing Costs
September 30, 2014
Revolving lines of credit	$	642	$	126,882		2.01	%	$	1,857	$	128,365		1.93	%
Notes payable to banks		730		110,190		2.63			1,889		91,176		2.77
SBA debentures		651		58,659		4.40			1,943		58,210		4.46
Preferred securities		199		33,000		2.40			593		33,000		2.41
Total	$	2,222	$	328,731		2.68		$	6,282	$	310,751		2.70
Medallion Bank borrowings	$	1,903	$	789,520		0.96		$	4,977	$	737,201		0.90
Total managed borrowings	$	4,125	$	1,118,251		1.46		$	11,259	$	1,047,952		1.44
September 30, 2013
Revolving lines of credit	$	620	$	153,374		1.61	%	$	1,929	$	157,293		1.64	%
Notes payable to banks		575		75,091		3.04			1,637		67,265		3.25
SBA debentures		694		59,081		4.66			2,108		59,066		4.77
Preferred securities		203		33,000		2.44			605		33,000		2.45
Total	$	2,092	$	320,546		2.59		$	6,279	$	316,624		2.65
Medallion Bank borrowings	$	1,299	$	651,535		0.79		$	3,905	$	621,505		0.84
Total managed borrowings	$	3,391	$	972,081		1.38		$	10,184	$	938,129		1.45

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We will continue to seek SBA funding to the extent it offers attractive rates. SBA financing subjects its recipients to limits on the amount of secured bank debt they may incur. We use SBA funding to fund loans that qualify under Small Business Investment Act, or SBIA, and SBA regulations. We believe that financing operations primarily with short-term floating rate secured bank debt has generally decreased our interest expense, but has also increased our exposure to the risk of increases in market interest rates, which we mitigate with certain interest rate strategies. At September 30, 2014 and 2013, short-term adjustable rate debt constituted 73% and 71% of total debt, and was 21% and 24% on a fully managed basis including the borrowings of Medallion Bank.

Factors Affecting Net Assets

Factors that affect our net assets include net realized gain or loss on investments and change in net unrealized appreciation or depreciation on investments. Net realized gain or loss on investments is the difference between the proceeds derived upon sale or foreclosure of a loan or an equity investment and the cost basis of such loan or equity investment. Change in net unrealized appreciation or depreciation on investments is the amount, if any, by which our estimate of the fair value of our investment portfolio is above or below the previously established fair value or the cost basis of the portfolio. Under the 1940 Act and the SBIA, our loan portfolio and other investments must be recorded at fair value.

Unlike certain lending institutions, we are not permitted to establish reserves for loan losses, but adjust quarterly the valuation of the investment portfolio to reflect our estimate of the current value of the total investment portfolio. Since no ready market exists for our investments, fair value is subject to our Board of Directors’ good faith determination. In determining such fair value, our Board of Directors considers factors such as the financial condition of our borrowers and the adequacy of their collateral. Any change in the fair value of portfolio investments or other investments as determined by our Board of Directors is reflected in net unrealized depreciation or appreciation on investments and affects net increase in net assets resulting from operations, but has no impact on net investment income or distributable income.

Our investment in Medallion Bank, as a wholly-owned portfolio investment, is also subject to quarterly assessments of fair value. We conduct a thorough valuation analysis as described previously, and also receive an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on an annual basis. We determine whether any factors give rise to valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, our Board of Directors has determined that Medallion Bank has little value beyond its recorded book value. As a result of this valuation process, we used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments, although changes in these restrictions and other applicable factors could change these conclusions in the future.

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SELECTED FINANCIAL DATA

Summary Consolidated Financial Data

You should read the consolidated financial information below with the Consolidated Financial Statements and Notes thereto for the three and nine months ended September 30, 2014 and 2013.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2014			2013			2014			2013
Statement of operations
Investment income	$	11,379		$	9,435		$	30,289		$	25,224
Interest expense		2,222			2,092			6,282			6,279
Net interest income		9,157			7,343			24,007			18,945
Noninterest income		136			181			435			804
Operating expenses		4,065			3,109			11,962			11,129
Net investment income before income taxes		5,228			4,415			12,480			8,620
Income tax (provision) benefit		—			—			—			—
Net investment income after income taxes		5,228			4,415			12,480			8,620
Net realized losses on investments		(193	)		(596	)		(1,051	)		(515	)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries (1)		3,382			1,684			9,115			3,590
Net change in unrealized appreciation (depreciation) on investments (1)		(1,723	)		894			20			7,423
Net increase in net assets resulting from operations	$	6,694		$	6,397		$	20,564		$	19,118
Per share data
Net investment income	$	0.21		$	0.20		$	0.50		$	0.39
Income tax (provision) benefit		—			—			—			—
Net realized losses on investments		(0.01	)		(0.03	)		(0.04	)		(0.02	)
Net change in unrealized appreciation on investments (1)		0.07			0.12			0.36			0.50
Net increase in net assets resulting from operations	$	0.27		$	0.29		$	0.82		$	0.87
Distributions declared per share	$	0.24		$	0.23		$	0.72		$	0.67
Weighted average common shares outstanding
Basic		24,924,433			21,730,116			24,872,230			21,596,054
Diluted		25,118,420			22,116,793			25,107,905			21,966,709
							September 30, 2014			December 31, 2013
Balance sheet data
Net investments							$	503,294		$	473,157
Total assets								620,212			595,053
Total funds borrowed								335,809			314,958
Total liabilities								342,181			321,558
Total shareholders’ equity								278,031			273,495
Managed balance sheet data (2)
Net investments							$	1,293,590		$	1,144,596
Total assets								1,455,325			1,305,809
Total funds borrowed								1,141,695			997,295
Total liabilities								1,177,294			1,032,314

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	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Selected financial ratios and other data
Return on average assets (ROA) (3)
Net investment income after taxes		3.37	%		3.11	%		2.79	%		2.09	%
Net increase in net assets resulting from operations		4.32			4.50			4.60			4.64
Return on average equity (ROE) (4)
Net investment income after taxes		7.48			7.82			6.04			5.23
Net increase in net assets resulting from operations		9.58			11.32			9.96			11.59
Weighted average yield		8.94	%		8.13	%		8.21	%		7.37	%
Weighted average cost of funds		1.74			1.80			1.70			1.84
Net interest margin (5)		7.20			6.33			6.51			5.53
Noninterest income ratio (6)		0.11	%		0.16	%		0.12	%		0.23	%
Total expense ratio (7)		4.94			4.48			4.94			5.08
Operating expense ratio (8)		3.19			2.68			3.24			3.25
							September 30, 2014			December 31, 2013
As a percentage of net investment portfolio
Medallion loans								60	%		63	%
Commercial loans								13			13
Investment in Medallion Bank and other controlled subsidiaries								25			23
Equity investments								2			1
Investment securities								—			—
Investments to assets (9)								81	%		80	%
Equity to assets (10)								45			46
Debt to equity (11)								121			115

(1) Unrealized appreciation (depreciation) on investments represents the increase (decrease) for the period in the fair value of our investments, including the results of operations for Medallion Bank and other controlled subsidiaries, where applicable.

(2) Includes the balances of wholly-owned, unconsolidated portfolio companies, primarily Medallion Bank.

(3) ROA represents the net investment income after taxes or net increase in net assets resulting from operations, divided by average total assets.

(4) ROE represents the net investment income after taxes or net increase in net assets resulting from operations, divided by average shareholders’ equity.

(5) Net interest margin represents net interest income for the period divided by average interest earning assets, and included interest recoveries and bonuses of $1,918 and $4,160 in the three and nine months ended September 30, 2014, and $1,196 and $1,232 for the comparable 2013 periods, and also included $4,000 and $10,000 of dividends from Medallion Bank for the three and nine months ended September 30, 2014, and $3,000 and $8,500 for the comparable 2013 periods. On a managed basis, combined with Medallion Bank, the net interest margin was 7.40% and 7.16% for the three and nine months ended September 30, 2014, and was 6.96% and 6.55% for the comparable 2013 periods.

(6) Noninterest income ratio represents noninterest income divided by average interest earning assets.

(7) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average interest earning assets.

(8) Operating expense ratio represents operating expenses divided by average interest earning assets.

(9) Represents net investments divided by total assets as of the period indicated.

(10) Represents total shareholders’ equity divided by total assets as of the period indicated.

(11) Represents total funds borrowed divided by total shareholders’ equity as of the period indicated.

Consolidated Results of Operations

2014 Third Quarter and Nine Months compared to the 2013 periods

Net increase in net assets resulting from operations was $6,694,000 or $0.27 per diluted common share and $20,564,000 or $0.82 in the 2014 third quarter and nine months, up $297,000 or 5% and $1,446,000 or 8% from $6,397,000 or $0.29 per share and $19,118,000 or $0.87 in the 2013 third quarter and nine months, primarily reflecting higher net interest income, partially offset by lower net realized/unrealized gains and noninterest income, and also by higher operating expenses. Net investment income after income taxes was $5,228,000 or $0.21 per share and $12,480,000 or $0.50 in the 2014 quarter and nine months, up $813,000 or 18% and $3,860,000 or 45% from $4,415,000 or $0.20 per share and $8,620,000 or $0.39 in the 2013 quarter and nine months.

Investment income was $11,379,000 and $30,289,000 in the 2014 third quarter and nine months, up $1,944,000 or 21% and $5,065,000 or 20% from $9,435,000 and $25,224,000 in the year ago periods, and included $1,918,000 and $4,160,000 from interest recoveries and bonuses on certain investments in the 2014 quarter and nine months, compared to $1,196,000 and $1,232,000 in the 2013 periods. Also included in the 2014 quarter and nine months was $4,000,000 and $10,000,000 in dividends from Medallion Bank, compared to $3,000,000 and $8,500,000 in the comparable 2013 periods. Excluding those items, investment income increased $222,000 or 4% in the quarter and $637,000 or 4% in the nine months, primarily reflecting portfolio growth, partially offset by the repricing of the portfolios to lower current market interest rates, and the sourcing of loans to Medallion Bank. The yield on the investment portfolio was 8.94% in the 2014 quarter, up 10% from 8.13% in 2013, and was 8.21% in the 2014 nine months, up 11% from 7.37% in the 2013 nine months. Excluding the extra interest and dividends, the 2014 third quarter and nine month yields were down 5% and 3% to 4.29% and 4.37%, from 4.51% and 4.52% in the 2013 quarter and nine months, reflecting the general decrease in market interest rates and changes in the portfolio mix. Average investments outstanding were up 10% to $504,920,000 in the 2014 quarter and up 8% to $493,350,000 in the nine months, from $460,579,000 and $457,887,000 in the year ago periods, primarily reflecting portfolio growth, partially offset by loan participations sold and loan payments received.

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Medallion loans were $303,502,000 at quarter end, up $11,957,000 or 4% from $291,545,000 a year ago, representing 60% of the investment portfolio compared to 63% a year ago, and were yielding 4.06%, compared to 4.08% a year ago, reflecting the bottoming of current market interest rates. The increase in outstandings primarily reflected portfolio growth in New York, Boston, and Newark, partially offset by a decline in the Chicago and other markets. The managed medallion portfolio, which includes loans at Medallion Bank and those serviced for third parties, was $716,726,000 at quarter end, up $51,307,000 or 8% from $665,419,000 a year ago, reflecting the above and the strong overall portfolio growth at Medallion Bank. The commercial loan portfolio was $64,256,000 at quarter end, compared to $63,061,000 a year ago, an increase of $1,195,000 or 2%, and represented 13% of the investment portfolio compared to 14% a year ago. The increase primarily reflected growth in the high-yield mezzanine and other secured commercial loan portfolios, partially offset by a decrease in the asset-based loan portfolio. Commercial loans yielded 11.49% at quarter end, up 2% from 11.23% a year ago, primarily reflecting changes in the portfolio mix. The net managed commercial loan portfolio, which includes loans at Medallion Bank and those serviced for or by third parties, was $107,459,000 at quarter end, down $7,542,000 or 7% from $115,001,000 a year ago, primarily reflecting the changes described above, and further decreases and reserve increases in the asset-based loan portfolio at Medallion Bank. Approximately $11,202,000 of asset-based loans ($7,841,000 after valuation adjustments) has been reclassified to other assets awaiting the outcome of legal proceedings as described further on page 44. Investments in Medallion Bank and other controlled subsidiaries were $127,708,000 at quarter end, up $25,331,000 or 25% from $102,377,000 a year ago, primarily reflecting our equity in the earnings of Medallion Bank and other portfolio company investments, capital contributions made, and net appreciation, and which represented 25% of the investment portfolio, compared to 22% a year ago, and which yielded 10.57% at quarter end, compared to 12.21% a year ago, reflecting the dividends from Medallion Bank. See Notes 3 and 10 of the consolidated financial statements for additional information about Medallion Bank and the other controlled subsidiaries. Equity investments were $7,828,000 at quarter end, up $1,442,000 or 23% from $6,386,000 a year ago, primarily reflecting portfolio appreciation and acquisitions, partially offset by portfolio dispositions and distributions, and which represented 2% of the investment portfolio, compared to 1% a year ago, and had a dividend yield of 0.61%, compared to 0.89% a year ago. Investment securities were zero at both quarter ends. See page 41 for a table that shows balances and yields by type of investment.

Interest expense was $2,222,000 and $6,282,000 in the 2014 quarter and nine months, up $130,000 or 6% and $3,000 from $2,092,000 and $6,279,000 in the 2013 periods. The increase in interest expense was primarily due to higher cost of funds, and in the quarter also to increased borrowing levels. The cost of borrowed funds was 2.68% and 2.70% in the 2014 quarter and nine months, compared to 2.59% and 2.65% in the year ago periods, increases of 3% and 2%, reflecting the adjustable rate nature of much of our borrowings, and changes in our funding mix. Average debt outstanding was up 3% to $328,731,000 for the 2014 quarter, and was down 2% to $310,751,000 in the nine months, compared to $320,546,000 and $316,624,000 in the year ago periods, primarily reflecting increased borrowings to fund portfolio growth. See page 48 for a table which shows average balances and cost of funds for our funding sources.

Net interest income was $9,157,000 and $24,007,000 and the net interest margin was 7.20% and 6.51% for the 2014 third quarter and nine months, up $1,814,000 or 25% and $5,062,000 or 27% from $7,343,000 and $18,945,000 a year ago, which represented net interest margins of 6.33% and 5.53%, all reflecting the items discussed above.

Noninterest income, which is comprised of prepayment fees, servicing fee income, late charges, and other miscellaneous income was $136,000 and $435,000 in the 2014 third quarter and nine months, down $45,000 or 25% and $369,000 or 46% from $181,000 and $804,000 a year ago, primarily reflecting lower prepayment fees and late charges, partially offset by higher management fee income.

Operating expenses were $4,065,000 and $11,962,000 in the 2014 third quarter and nine months, up $956,000 or 31% and up $833,000 or 7% from $3,109,000 and $11,129,000 in the 2013 periods. Salaries and benefits expense was $2,906,000 and $8,431,000 in the third quarter and nine months, up $537,000 or 23% and $1,166,000 or 16% from $2,369,000 and $7,265,000 in 2013, primarily reflecting higher salaries, bonus accruals, stock-based compensation expense, and health insurance costs, partially offset by higher salary deferrals related to loan originations, and in the nine months, also by higher payroll taxes and lower salary deferrals related to loan originations. Professional fees were $70,000 and $623,000 in the quarter and nine months, up $175,000 and down $668,000 or 52% from ($105,000) and $1,291,000 a year ago, primarily reflecting the 2013 reimbursements from unconsolidated portfolio companies of legal fees associated with the realization of certain portfolio investments, and in the nine months, also by lower legal fees and consultant and accounting costs associated with 2013 efforts on the realization of certain portfolio investments, other legal matters, and various investment activities, portfolio valuations, and assistance with enhancements to the operating environment. Occupancy expense was $207,000 and $588,000 in the quarter and nine months, up $12,000 or 6% and $1,000 from $195,000 and $587,000 in the 2013 periods, reflecting a relatively stable rent environment. Other operating expenses of $882,000 and $2,320,000 in 2014 were up $232,000 or 36% and $334,000 or 17% from $650,000 and $1,986,000 a year ago, primarily reflecting higher franchise taxes, computer, and other operating expenses, partially offset by higher expense reimbursements from Medallion Bank.

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Income tax expense was $0 in the 2014 and 2013 third quarters and nine months.

Net change in unrealized appreciation on investments was $1,659,000 and $9,135,000 in the 2014 third quarter and nine months, compared to $2,578,000 and $11,013,000 in the 2013 third quarter and nine months, a decrease in appreciation of $919,000 or 36% in the quarter and $1,878,000 or 17% in the nine months. Net change in unrealized appreciation other than the portion related to Medallion Bank and the other controlled subsidiaries, was depreciation of $1,723,000 and appreciation of $20,000 in the 2014 quarter and nine months, compared to appreciation of $894,000 and $7,423,000 in the 2013 periods, resulting in decreased appreciation of $2,617,000 and $7,403,000 in the 2014 quarter and nine months. Unrealized appreciation (depreciation) arises when we make valuation adjustments to the investment portfolio. When investments are sold or written off, any resulting realized gain (loss) is grossed up to reflect previously recorded unrealized components. As a result, movement between periods can appear distorted. The 2014 activity resulted from net appreciation on Medallion Bank and other controlled subsidiaries of $3,382,000 ($9,115,000 in the nine months), reversals of unrealized depreciation associated with fully depreciated loans which were charged off of $99,000 ($425,000 in the nine months), net unrealized appreciation on equity investments of $64,000 ($937,000 of appreciation in the nine months), net appreciation on other assets of $0 ($1,141,000 in the nine months), and reversals of unrealized depreciation associated with equity investments which were sold of $0 ($674,000 in the nine months), partially offset by net unrealized depreciation on loans of $1,173,000 ($1,493,000 in the nine months) and net depreciation on foreclosed property of $713,000 ($1,664,000 in the nine months). The 2013 activity resulted from net appreciation on Medallion Bank and other controlled subsidiaries of $1,684,000 ($3,590,000 in the nine months), net appreciation on foreclosed property of $475,000 ($6,340,000 in the nine months), reversals of unrealized depreciation associated with equity investments which were charged off of $365,000 ($365,000 in the nine months), reversals of unrealized depreciation associated with fully depreciated loans which were charged off of $234,000 ($234,000 in the nine months), and by net unrealized appreciation on loans of $277,000 ($160,000 in the nine months), partially offset net unrealized depreciation on equity investments of $457,000 ($324,000 of appreciation in the nine months). The net appreciation on Medallion Bank and other controlled subsidiaries described above is net of the dividends declared by them to us of $4,000,000 and $10,000,000 in the 2014 third quarter and nine months, and were $3,000,000 and $8,500,000 in the comparable 2013 periods.

Our net realized losses on investments were $193,000 and $1,051,000 in the 2014 quarter and nine months, compared to $596,000 and $515,000 in the 2013 quarter and nine months, a decrease in realized losses of $403,000 or 68% in the quarter and an increase of $536,000 in the nine months. The 2014 activity reflected the reversals described in the unrealized paragraph above and net direct chargeoffs of loans of $94,000 ($1,000 in the nine months), partially offset by other gains on equity investments of $0 ($49,000 in the nine months). The 2013 activity reflected the reversals described in the unrealized paragraph above, partially offset by net direct recoveries of $3,000 ($84,000 in the nine months).

Our net realized/unrealized gains on investments were $1,466,000 and $8,084,000 in the 2014 quarter and nine months, compared to $1,982,000 and $10,498,000 in the 2013 periods, a decrease of $516,000 or 26% and $2,414,000 or 23% in net gains in the 2014 periods, reflecting the above.

ASSET/LIABILITY MANAGEMENT

Interest Rate Sensitivity

We, like other financial institutions, are subject to interest rate risk to the extent that our interest-earning assets (consisting of medallion, commercial, and consumer loans; and investment securities) reprice on a different basis over time in comparison to our interest-bearing liabilities (consisting primarily of credit facilities with banks and other lenders, bank certificates of deposit, and SBA debentures).

Having interest-bearing liabilities that mature or reprice more frequently on average than assets may be beneficial in times of declining interest rates, although such an asset/liability structure may result in declining net earnings during periods of rising interest rates. Abrupt increases in market rates of interest may have an adverse impact on our earnings until we are able to originate new loans at the higher prevailing interest rates. Conversely, having interest-earning assets that mature or reprice more frequently on average than liabilities may be beneficial in times of rising interest rates, although this asset/liability structure may result in declining net earnings during periods of falling interest rates. This mismatch between maturities and interest rate sensitivities of our interest-earning assets and interest-bearing liabilities results in interest rate risk.

The effect of changes in interest rates is mitigated by regular turnover of the portfolio. Based on past experience, we anticipate that approximately 40% of the taxicab medallion portfolio will mature or be prepaid each year. We believe that the average life of our loan portfolio varies to some extent as a function of changes in interest rates. Borrowers are more likely to exercise prepayment rights in a decreasing interest rate environment because the interest rate payable on the borrower’s loan is high relative to prevailing interest rates. Conversely, borrowers are less likely to prepay in a rising interest rate environment. However, borrowers may prepay for a variety of other reasons, such as to monetize increases in the underlying collateral values, particularly in the medallion loan portfolio.

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In addition, we manage our exposure to increases in market rates of interest by incurring fixed-rate indebtedness, such as ten year subordinated SBA debentures, and by setting repricing intervals or the maturities of tranches drawn under the revolving lines of credit or issued as certificates of deposit, for terms of up to five years. We had outstanding SBA debentures of $62,485,000 with a weighted average interest rate of 3.98%, constituting 19% of our total indebtedness as of September 30, 2014. Also, as of September 30, 2014, portions of the adjustable rate debt with banks repriced at intervals of as long as 90 days, and certain of the certificates of deposit were for terms of up to 59 months, further mitigating the immediate impact of changes in market interest rates.

A relative measure of interest rate risk can be derived from our interest rate sensitivity gap. The interest rate sensitivity gap represents the difference between interest-earning assets and interest-bearing liabilities, which mature and/or reprice within specified intervals of time. The gap is considered to be positive when repriceable assets exceed repriceable liabilities, and negative when repriceable liabilities exceed repriceable assets. A relative measure of interest rate sensitivity is provided by the cumulative difference between interest sensitive assets and interest sensitive liabilities for a given time interval expressed as a percentage of total assets.

The following table presents our interest rate sensitivity gap at September 30, 2014, compared to the respective positions at the end of 2013 and 2012. The principal amounts of interest earning assets are assigned to the time frames in which such principal amounts are contractually obligated to be repriced. We have not reflected an assumed annual prepayment rate for such assets in this table.

September 30, 2014 Cumulative Rate Gap (1)
(Dollars in thousands)	Less Than 1 Year			More  Than 1 and Less Than 2 Years			More Than 2 and Less Than 3 Years		More Than 3 and Less Than 4 Years		More Than 4 and Less Than 5 Years		More Than 5 and Less Than 6 Years		Thereafter			Total
Earning assets
Floating-rate	$	3,070		$	—		$	—	$	—	$	—	$	—	$	—		$	3,070
Adjustable rate		3,168			48			490		—		—		—		—			3,706
Fixed-rate		32,837			137,931			132,070		42,308		14,246		8,097		1,292			368,781
Cash		58,257			—			—		—		—		—		—			58,257
Total earning assets	$	97,332		$	137,979		$	132,560	$	42,308	$	14,246	$	8,097	$	1,292		$	433,814
Interest bearing liabilities
Revolving lines of credit	$	127,633		$	—		$	—	$	—	$	—	$	—	$	—		$	127,633
Notes payable to banks		84,005			222			28,464		—		—		—		—			112,691
SBA debentures		13,000			—			—		—		3,000		—		46,485			62,485
Preferred securities		33,000			—			—		—		—		—		—			33,000
Total liabilities	$	257,638		$	222		$	28,464	$	—	$	3,000	$	—	$	46,485		$	335,809
Interest rate gap	($	160,306	)	$	137,757		$	104,096	$	42,308	$	11,246	$	8,097	($	45,193	)	$	98,005
Cumulative interest rate gap (2)	($	160,306	)	($	22,549	)	$	81,547	$	123,855	$	135,101	$	143,198	$	98,005			—
December 31, 2013 (2)	($	143,126	)	($	72,980	)	$	78,325	$	122,575	$	146,584	$	143,584	$	102,071			—
December 31, 2012 (2)	($	181,961	)	($	163,542	)	$	8,504	$	45,211	$	78,313	$	81,009	$	63,129			—

(1) The ratio of the cumulative one year gap to total interest rate sensitive assets was (37%), (34%), and (47%), as of September 30, 2014, and December 31, 2013 and 2012, and was (21%), (28%), and (40%) on a combined basis with Medallion Bank.

(2) Adjusted for the medallion loan 40% prepayment assumption results in a cumulative one year negative interest rate gap and related ratio of ($51,649) or (12%) at September 30, 2014, compared to ($30,301) or (7%) and ($75,090) or (19%) at December 31, 2013 and 2012, and was ($51,380) or (4% ), ($97,043) or (8%), and ($213,406) or (19%) on a combined basis with Medallion Bank.

Our interest rate sensitive assets were $433,814,000 and interest rate sensitive liabilities were $335,809,000 at September 30, 2014. The one-year cumulative interest rate gap was a negative $160,306,000 or 37% of interest rate sensitive assets, compared to a negative $143,126,000 or 34% at December 31, 2013 and $181,961,000 or 47% at December 31, 2012. However, using our estimated 40% prepayment/refinancing rate for medallion loans to adjust the interest rate gap resulted in a negative gap of $51,649,000 or 12% at September 30, 2014. We seek to manage interest rate risk by originating adjustable-rate loans, by incurring fixed-rate indebtedness, by evaluating appropriate derivatives, pursuing securitization opportunities, and by other options consistent with managing interest rate risk.

On a combined basis with Medallion Bank, our interest rate sensitive assets were $1,373,422,000 and interest rate sensitive liabilities were $1,141,695,000 at September 30, 2014. The one year cumulative interest rate gap was a negative $293,293,000 or 21% of interest rate sensitive assets, compared to a negative $341,843,000 or 28% and $442,219,000 or 40% at December 31, 2013 and 2012. Using our estimated 40% prepayment/refinancing rate for medallion loans to adjust the interest rate gap resulted in a negative gap of $51,380,000 or 4% at September 30, 2014.

Interest Rate Cap Agreements

We manage our exposure to increases in market rates of interest by periodically purchasing interest rate caps to lock in the cost of funds of our variable-rate debt in the event of a rapid run up in interest rates. We entered into contracts to purchase interest rate caps on $230,000,000 of notional value of principal from various multinational banks, with termination dates ranging to September 2017. The caps provide for payments to us if various LIBOR thresholds are exceeded during the cap terms. Total cap purchases were generally fully expensed when paid, including $43,000 and $57,000 for the three and nine months ended September 30, 2014, and $41,000 for the nine months ended September 30, 2013, and all are carried at $0 on the balance sheet at September 30, 2014 and December 31, 2013.

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Liquidity and Capital Resources

Our sources of liquidity are the revolving lines of credit with DZ Bank and with a variety of local and regional banking institutions, unfunded commitments to sell debentures to the SBA, loan amortization and prepayments, private issuances of debt securities, and participations or sales of loans to third parties. As a RIC, we are required to distribute at least 90% of our investment company taxable income; consequently, we have primarily relied upon external sources of funds to finance growth. Trust III’s $150,000,000 revolving line of credit with DZ Bank had $22,367,000 of availability, $66,500,000 was available under revolving credit agreements with commercial banks, and there were $6,000,000 of unfunded commitments from the SBA.

Additionally, Medallion Bank, our wholly-owned, unconsolidated portfolio company, has access to independent sources of funds for our business originated there, primarily through brokered certificates of deposit. At the current required capital levels, it is expected, although there can be no guarantee, that deposits of approximately $19,000,000 could be raised by Medallion Bank to fund future loan origination activities, and Medallion Bank also has $25,000,000 available under Fed Funds lines with several commercial banks. In addition, Medallion Bank, as a non-RIC subsidiary of ours, is allowed to retain all earnings in the business to fund future growth.

The components of our debt were as follows at September 30, 2014. See Note 4 to the consolidated financial statements on page 18 for details of the contractual terms of our borrowings.

(Dollars in thousands)	Balance		Percentage			Rate  (1)
Revolving lines of credit	$	127,633		38	%		1.84	%
Notes payable to banks		112,691		33			2.52
SBA debentures		62,485		19			3.98
Preferred securities		33,000		10			2.36
Total outstanding debt	$	335,809		100	%		2.52
Deposits and other borrowings at Medallion Bank		805,886		—			0.82	%
Total outstanding debt, including Medallion Bank	$	1,141,695		—			1.32

(1) Weighted average contractual rate as of September 30, 2014.

Our contractual obligations expire on or mature at various dates through September 2037. The following table shows all contractual obligations at September 30, 2014.

	Payments due by period
(Dollars in thousands)	Less than 1 year		1 – 2 years		2 – 3 years		3 – 4 years		4 – 5 years		More than 5 years		Total
Revolving lines of credit	$	—	$	—	$	127,633	$	—	$	—	$	—	$	127,633
Notes payable to banks		28,699		56,917		27,075		—		—		—		112,691
SBA debentures		6,500		—		—		—		3,000		52,985		62,485
Preferred securities		—		—		—		—		—		33,000		33,000
Total	$	35,199	$	56,917	$	154,708	$	—	$	3,000	$	85,985	$	335,809
Deposits and other borrowings at Medallion Bank		303,902		203,278		145,103		102,515		51,088		—		805,886
Total, including Medallion Bank	$	339,101	$	260,195	$	299,811	$	102,515	$	54,088	$	85,985	$	1,141,695

We value our portfolio at fair value as determined in good faith by the Board of Directors in accordance with our valuation policy. Unlike certain lending institutions, we are not permitted to establish reserves for loan losses. Instead, we must value each individual investment and portfolio loan on a quarterly basis. We record unrealized depreciation on investments and loans when we believe that an asset has been impaired and full collection is unlikely. We record unrealized appreciation on equities if we have a clear indication that the underlying portfolio company has appreciated in value and, therefore, our equity investment has also appreciated in value. Without a readily ascertainable market value, the estimated value of our portfolio of investments and loans may differ significantly from the values that would be placed on the portfolio if there existed a ready market for the investments. We adjust the valuation of the portfolio quarterly to reflect our Board of Directors’ estimate of the current fair value of each investment in the portfolio. Any changes in estimated fair value are recorded in our statement of operations as net unrealized appreciation (depreciation) on investments. Our investment in Medallion Bank, as a wholly-owned portfolio investment, is also subject to quarterly assessments of its fair value. We conduct a thorough valuation analysis, and also receive an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank. We determine whether any factors give rise to valuation different than recorded book value. As a result of this valuation process, we used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the result as a component of unrealized appreciation (depreciation) on investments, although changes in the restrictions described previously,

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including the expiration in July 2013 of the prior moratorium on the acquisition of control of an industrial bank such as Medallion Bank by a “commercial firm,” and other applicable factors could change these conclusions in the future. For more information, see “Risk Factors – Risks Relating to Our Business and Structure – Our investment portfolio is, and will continue to be, recorded at fair value as determined in good faith by our Board of Directors and, as a result, there is, and will continue to be, uncertainty as to the value of our portfolio investments which could adversely affect our net asset value”.

In addition, the illiquidity of our loan portfolio and investments may adversely affect our ability to dispose of loans at times when it may be advantageous for us to liquidate such portfolio or investments. In addition, if we were required to liquidate some or all of the investments in the portfolio, the proceeds of such liquidation may be significantly less than the current value of such investments. Because we borrow money to make loans and investments, our net operating income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our interest income. In periods of sharply rising interest rates, our cost of funds would increase, which would reduce our net operating income before net realized and unrealized gains. We use a combination of long-term and short-term borrowings and equity capital to finance our investing activities. Our long-term fixed-rate investments are financed primarily with short-term floating-rate debt, and to a lesser extent by term fixed-rate debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. We have analyzed the potential impact of changes in interest rates on net interest income. Assuming that the balance sheet were to remain constant and no actions were taken to alter the existing interest rate sensitivity, and including the impact on Medallion Bank, a hypothetical immediate 1% increase in interest rates would result in an increase to the line item “net increase in net assets resulting from operations” as of September 30, 2014 by $1,274,000 on an annualized basis, compared to a positive impact of $1,311,000 at December 31, 2013, and the impact of such an immediate increase of 1% over a one year period would have been ($2,018,000) at September 30, 2014, compared to ($2,007,000) at December 31, 2013. Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size, and composition of the assets on the balance sheet, and other business developments that could affect net increase in net assets resulting from operations in a particular quarter or for the year taken as a whole. Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by these estimates.

We continue to work with investment banking firms and other financial intermediaries to investigate the viability of a number of other financing options which include, among others, the sale or spin off certain assets or divisions, the development of a securitization conduit program, and other independent financing for certain subsidiaries or asset classes. These financing options would also provide additional sources of funds for both external expansion and continuation of internal growth.

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The following table illustrates sources of available funds for us and each of our subsidiaries, and amounts outstanding under credit facilities and their respective end of period weighted average interest rates at September 30, 2014. See Note 4 to the consolidated financial statements for additional information about each credit facility.

(Dollars in thousands)	The Company			MFC			MCI			MBC		FSVC			MB			9/30/2014 Total			12/31/2013
Cash	$	36,436		$	5,621		$	5,330		$	1,894	$	8,976		$	—		$	58,257		$	52,172
Bank loans		146,409			32,530			—			—		252			—			179,191		$	160,483
Amounts undisbursed		58,500	(1)		8,000			—			—		—			—			66,500			72,500
Amounts outstanding		87,909			24,530			—			—		252			—			112,691			87,983
Average interest rate		2.33	%		3.16	%		—			—		7.24	%		—			2.52	%		2.89	%
Maturity		1/15-11/16			2/16-12/16			—			—		2/15-4/17			—			1/15-4/17			5/14-12/16
Preferred securities		33,000			—			—			—		—			—			33,000		$	33,000
Average interest rate		2.36	%		—			—			—		—			—			2.36	%		2.37	%
Maturity		9/37			—			—			—		—			—			9/37			9/37
Lines of credit		—			150,000			—			—		—			—			150,000		$	150,000
Amounts undisbursed		—			22,367			—			—		—			—			22,367			18,010
Amounts outstanding		—			127,633			—			—		—			—			127,633			131,990
Average interest rate		—			1.84	%		—			—		—			—			1.84	%		1.14	%
Maturity		—			12/16			—			—		—			—			12/16			12/16
SBA debentures		—			—			30,500			—		37,985			—			68,485		$	64,485
Amounts undisbursed		—			—			6,000			—		—			—			6,000			2,500
Amounts outstanding		—			—			24,500			—		37,985			—			62,485			61,985
Average interest rate		—			—			3.71	%		—		4.15	%		—			3.98	%		4.17	%
Maturity		—			—			9/15-3/25			—		3/15-9/23			—			3/15-3/25			3/14-3/24
Total cash and amounts remaining undisbursed under credit facilities	$	94,936		$	35,988		$	11,330		$	1,894	$	8,976		$	—		$	153,124		$	145,182
Total debt outstanding	$	120,909		$	152,163		$	24,500		$	—	$	38,237		$	—		$	335,809		$	314,958
Including Medallion Bank
Cash		—			—			—			—		—		$	20,932		$	20,932		$	17,467
Deposits and other borrowings		—			—			—			—		—			805,886			805,886			682,337
Average interest rate		—			—			—			—		—			0.82	%		0.82	%		0.65	%
Maturity		—			—			—			—		—			10/14-9/19			10/14-9/19			1/14-12/18
Total cash and amounts remaining undisbursed under credit facilities	$	94,936		$	35,988		$	11,330		$	1,894	$	8,976		$	20,932		$	174,056		$	162,649
Total debt outstanding	$	120,909		$	152,163		$	24,500		$	—	$	38,237		$	805,886		$	1,141,695		$	997,295

(1) $41,500 of this availability can be used by MFC.

Loan amortization, prepayments, and sales also provide a source of funding for us. Prepayments on loans are influenced significantly by general interest rates, medallion loan market values, economic conditions, and competition.

We have available liquidity of $22,367,000 under our revolving credit agreement with DZ Bank as of September 30, 2014. We also generate liquidity through deposits generated at Medallion Bank, borrowing arrangements with other banks, and through the issuance of SBA debentures, as well as from cash flow from operations. In addition, we may choose to participate a greater portion of our loan portfolio to third parties. We are actively seeking additional sources of liquidity, however, given current market conditions, we cannot assure you that we will be able to secure additional liquidity on terms favorable to us or at all. If that occurs, we may decline to underwrite lower yielding loans in order to conserve capital until credit conditions in the market become more favorable; or we may be required to dispose of assets when we would not otherwise do so, and at prices which may be below the net book value of such assets in order for us to repay indebtedness on a timely basis. Also, Medallion Bank is not a RIC, and therefore is able to retain earnings to finance growth.

Recently Issued Accounting Standards

In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40)”. ASU 2014-15 provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of a company’s ability to continue as a going concern within one year of the date the financial statements are issued. The company must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. As the update impacts disclosures only, it will have no impact on our financial condition or results of operations.

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In August 2014, the FASB issued ASU 2014-14, “Receivables – Troubled Debt Restructuring by Creditors (Subtopic 310-40)”. The update requires that certain government-guaranteed mortgage loans, including those guaranteed by the FHA, be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure of loans that meet these criteria, a separate receivable should be recorded based on the amount of the loan balance expected to be recovered from the guarantor. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. We do not make government-guaranteed mortgage loans, and as a result believes the adoption of the standard will have no impact on our financial condition or results of operations.

In August 2014, the FASB issued ASU 2014-13, “Consolidation – (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing”. ASU 2014-13 provides an alternative to Topic 820 for measuring the financial assets and the financial liabilities of a consolidated collateralized financing entity to eliminate any differences between their respective fair values. In the event a reporting entity does not elect to utilize the measurement alternative, the update clarifies that the fair value of the financial assets and liabilities of the consolidated collateralized financing entity should be measured using the requirements of Topic 820 and any differences should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). This update is effective for periods beginning after December 15, 2015. As a RIC, we already follow Topic 820 in our fair valuation processes, and as a result does not believe this update will have an impact on our financial condition or results of operations.

In June 2014, FASB issued Accounting Standards Update (ASU) 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite service Period (a consensus of the FASB Emerging Issues Task Force).” The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and would be accounted for under existing guidance in Topic 718. The update is effective for periods beginning after December 15, 2015. We do not believe the adoption of the standard will have a material impact on our financial condition or results of operations.

In June 2014, FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Purchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU 2014 changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The update also requires new disclosures about transfers that are accounted for as sales in transactions that are economically similar to repurchase agreements and increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The update is effective for periods beginning after December 15, 2014. We do not engage in these types of transactions, and as a result, do not believe that the adoption of the standard will have any impact on our financial condition or results of operations.

In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The update is effective for annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method nor have we determined the effect of the standard on our consolidated financial statements and related disclosures.

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the requirements for reporting discontinued operations, requires an entity to present, for each comparative period, the assets and liabilities of a disposal group that includes a discontinued operation separately in the asset and liability sections of the statement of financial position, and requires additional disclosures about discontinued operations. Additionally, the update expands the disclosures about an entity’s significant continuing involvement with a discontinued operation. The update is to be applied prospectively to annual periods beginning on or after December 15, 2014. We do not believe the adoption of the standard will have any impact on our financial condition or results of operations.

Common Stock

Our common stock is quoted on NASDAQ under the symbol “TAXI.” Our common stock commenced trading on May 23, 1996. As of November 4, 2014, there were approximately 303 holders of record of our common stock.

On November 4, 2014, the last reported sale price of our common stock was $11.30 per share, which represented a premium of 2% to the net asset value per share reported by us as of September 30, 2014. Since our initial public offering, our common stock has traded at a premium to net asset value per share more frequently than at a discount to net asset value per share, but there can be no assurance that our stock will trade at a premium in the future.

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The following table sets forth, for the periods indicated, the range of high and low closing prices for our common stock on the Nasdaq Global Select Market.

	DISTRIBUTIONS DECLARED		HIGH		LOW
2014
Third Quarter	$	0.24	$	12.73	$	11.14
Second Quarter		0.24		14.23		11.58
First Quarter		0.24		14.56		13.08
2013
Fourth Quarter	$	0.23	$	17.74	$	14.31
Third Quarter		0.23		15.11		14.06
Second Quarter		0.22		15.78		13.13
First Quarter		0.22		13.60		12.01

As a RIC, we intend to distribute at least 90% of our investment company taxable income to our shareholders. Distributions of our income are generally required to be made within the calendar year the income was earned as a RIC; however, in certain circumstances distributions can be made up to a full calendar year after the income has been earned. Investment company taxable income includes, among other things, interest, dividends, and capital gains reduced by deductible expenses. Our ability to make distributions as a RIC is restricted by certain asset coverage requirements under the 1940 Act and has been dependent upon maintenance of our status as a RIC under the Code in the past, by SBA regulations, and under the terms of the SBA debentures. There can be no assurances, however, that we will have sufficient earnings to pay such distributions in the future.

We have adopted a dividend reinvestment plan pursuant to which shareholders may elect to have distributions reinvested in additional shares of common stock. When we declare a distribution, all participants will have credited to their plan accounts the number of full and fractional shares (computed to three decimal places) that could be obtained with the cash, net of any applicable withholding taxes that would have been paid to them if they were not participants. The number of full and fractional shares is computed at the weighted average price of all shares of common stock purchased for plan participants within the 30 days after the distribution is declared plus brokerage commissions. The automatic reinvestment of distributions will not release plan participants of any income tax that may be payable on the distribution. Shareholders may terminate their participation in the dividend reinvestment plan by providing written notice to the Plan Agent at least 10 days before any given distribution payment date. Upon termination, we will issue to a shareholder both a certificate for the number of full shares of common stock owned and a check for any fractional shares, valued at the then current market price, less any applicable brokerage commissions and any other costs of sale. There are no additional fees or expenses for participation in the dividend reinvestment plan. Shareholders may obtain additional information about the dividend reinvestment plan by contacting the American Stock Transfer & Trust Company, LLC at 6201 15^th Avenue, Brooklyn, NY, 11219.

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Issuer Purchases of Equity Securities ⁽¹⁾

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs
November 5 through December 31, 2003		10,816	$	9.20		10,816	$	9,900,492
January 1 through December 31, 2004		952,517		9.00		952,517		11,329,294
January 1 through December 31, 2005		389,900		9.26		389,900		7,720,523
January 1 through December 31, 2006		—		—		—		7,720,523
January 1 through December 31, 2007		33,200		9.84		33,200		7,393,708
January 1 through December 31, 2008		7,691		9.66		7,691		7,319,397
January 1 through December 31, 2009		—		—		—		7,319,397
January 1 through December 31, 2010		177,844		6.82		177,844		6,106,354
January 1 through December 31, 2011		8,647		9.06		8,647		6,028,027
January 1 through December 31, 2012		—		—		—		6,028,027
January 1 through December 31, 2013		—		—		—		6,028,027
January 1 through September 30, 2014		—		—		—		20,000,000
Total		1,580,615		8.84		1,580,615

(1) We publicly announced our Stock Repurchase Program in a press release dated November 5, 2003, after the Board of Directors approved the repurchase of up to $10,000,000 of our outstanding common stock, which was increased by an additional $10,000,000 authorization on November 3, 2004, and which was further increased to a total of $20,000,000 in July 2014. The stock repurchase program expires 180 days after the commencement of the purchases. If we have not repurchased the common stock remaining in the repurchase authorization by the end of such period, we are permitted to extend the stock repurchase program for additional 180-day periods until we have repurchased the total amount authorized. In October 2014, we extended the terms of the Stock Repurchase Program. Purchases were to commence no earlier than November 2014 and are to conclude 180 days after the commencement of the purchases.

Control Statutes

Because Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act and we are a “financial institution holding company” within the meaning of the Utah Financial Institutions Act, federal and Utah law and regulations prohibit any person or company from acquiring control of us and, indirectly, Medallion Bank, without, in most cases, prior written approval of the FDIC or the Commissioner of Financial Institutions, as applicable. Under the Change in Bank Control Act, control is conclusively presumed if, among other things, a person or company acquires 25% or more of any class of our voting stock. A rebuttable presumption of control arises if a person or company acquires 10% or more of any class of voting stock and is subject to a number of specified “control factors” as set forth in the applicable regulations. Although Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act, your investment in Medallion Financial Corp. is not guaranteed by the FDIC and is subject to loss. Under the Utah Financial Institutions Act, control is defined as the power to vote 20% or more of any class of our voting securities by an individual or to vote more than 10% of any class of our voting securities by a person other than an individual. Investors are responsible for ensuring that they do not, directly or indirectly, acquire shares of our common stock in excess of the amount which can be acquired without regulatory approval.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in disclosure regarding quantitative and qualitative disclosures about market risk since we filed our Annual Report on Form 10-K for the year ended December 31, 2013.

ITEM 4. CONTROLS AND PROCEDURES

Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures and internal control over financial reporting pursuant to Rules 13a—15(e) and 15d – 15(e) under the Securities Exchange Act of 1934, and have concluded that they are effective as of September 30, 2014. In addition, based on our evaluation as of September 30, 2014, there have been no changes that occurred during the 2014 nine months that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We and our subsidiaries are currently involved in various legal proceedings incident to the ordinary course of our business, including collection matters with respect to certain loans. We intend to vigorously defend any outstanding claims and pursue our legal rights. In the opinion of our management and based upon the advice of legal counsel, there is no proceeding pending, or to the knowledge of management threatened, which in the event of an adverse decision would result in a material adverse effect on our results of operations or financial condition.

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ITEM 1A. RISK FACTORS

Risks Relating to Our Business and Structure

We experienced a period of capital markets disruption and severe recession beginning in 2008, and the impact of resulting changes on the financial markets may not be fully known for some time.

The global financial crisis that began in 2008 materially and adversely affected the debt and equity capital markets in the United States. The US capital markets experienced extreme volatility and disruption for an extended period of time as evidenced by a lack of liquidity in the debt capital markets, significant write-offs in the financial services sector, the repricing of credit risk in the broadly syndicated credit market, and the failure of major financial institutions. These events contributed to worsening general economic conditions that materially and adversely impacted the broader financial and credit markets and reduced the availability of credit and equity capital for the markets as a whole, and financial services firms in particular. In response to the crisis, the US and other governments and the Federal Reserve and certain foreign central banks took steps to support financial markets, including by keeping interest rates at historically low levels. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal of this support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding could negatively affect financial markets generally as well as the value and liquidity of certain securities. While recent market conditions have improved, there have been continuing periods of volatility and there can be no assurance that adverse market conditions will not repeat themselves or worsen in the future. A prolonged period of market volatility or illiquidity could have an adverse effect on our business, financial condition, and results of operations. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. Equity capital may be difficult to raise because, subject to some limited exceptions, we generally are not able to issue and sell our common stock at a price below net asset value per share. In addition, the debt capital that will be available, if at all, may be at a higher cost and on less favorable terms and conditions.

We borrow money, which magnifies the potential for gain or loss on amounts invested, and may increase the risk of investing in us.

Borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested, and therefore increase the risk associated with investing in us. We borrow from and issue senior debt securities to banks and other lenders, and through long-term subordinated SBA debentures. These creditors have fixed dollar claims on our assets that are superior to the claims of our shareholders. If the value of our assets increases, then leveraging would cause the net asset value to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could reduce the amount available for distribution payments.

As of September 30, 2014, we had $335,809,000 of outstanding indebtedness, which had a weighted average borrowing cost of 2.52% at September 30, 2014, and our wholly-owned unconsolidated portfolio companies, primarily Medallion Bank, had $805,886,000 of outstanding indebtedness at a weighted average borrowing cost of 0.82%.

Consumer lending by Medallion Bank carries a higher risk of loss and could be adversely affected by an economic downturn.

By its nature, lending to consumers carries with it a higher risk of loss than commercial lending. Although the net interest margins should be higher to compensate Medallion Bank for this increased risk, an economic downturn could result in higher loss rates and lower returns than expected, and could affect the profitability of Medallion Bank’s consumer loan portfolio.

We are dependent upon our key investment personnel for our future success.

We depend on the diligence, skill, and network of business contacts of the investment professionals we employ for sourcing, evaluating, negotiating, structuring, and monitoring our investments. Our future success will also depend, to a significant extent, on the continued service and coordination of our senior management team, particularly, Alvin Murstein, our Chairman and Chief Executive Officer, Andrew M. Murstein, our President, and Larry D. Hall, our Chief Financial Officer. The departure of Messrs. Murstein or Mr. Hall, or any member of our senior management team, could have a material adverse effect on our ability to achieve our investment objective.

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We operate in a highly regulated environment, and if we are found to be in violation of any of the federal, state, or local laws or regulations applicable to us, our business could suffer.

The 1940 Act imposes numerous constraints on the operations of BDC’s. For example, BDC’s are required to invest at least 70% of their total assets in qualifying assets, primarily securities of “eligible portfolio companies” (as defined under the 1940 Act), cash, cash equivalents, US government securities, and other high quality debt investments that mature in one year or less. Our regulatory requirements may hinder our ability to take advantage of attractive investment opportunities and, as a result, achieve our investment objective. In addition, we rely upon several exemptive orders from the SEC permitting us to consolidate our financial reporting and operate our business as presently conducted. Our failure to satisfy the conditions set forth in those exemptive orders could result in our inability to rely upon such orders or to cause the SEC to revoke the orders which could result in material changes in our financial reporting or the way in which we conduct our business. Furthermore, any failure to comply with the requirements imposed on BDC’s by the 1940 Act could have material adverse consequences to us or our investors, including possible enforcement action by the SEC and the possible loss of our ability to qualify as a RIC that is exempt from corporate-level income tax under the Code. If we do not remain a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would further significantly decrease our operating flexibility.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, was signed into law on July 21, 2010. The Dodd-Frank Act significantly changes federal financial services regulation and affects, among other things, the lending, deposit, investment, trading, and operating activities of financial institutions and their holding companies. The Dodd-Frank Act requires extensive rulemaking by various regulatory agencies. The Dodd-Frank Act requires a company that owns an industrial bank to serve as a “source of strength” to the institution. We believe that we have historically served, and will serve in the future, as a source of strength to our industrial bank subsidiary, Medallion Bank. We do not believe that the codification of this requirement under the Dodd-Frank Act will materially impact our obligations. A company that owns an industrial bank is also subject to the Dodd Frank Act “Volcker Rule.” We do not believe that the “Volcker Rule” will materially impact our operations as presently conducted. The Dodd-Frank Act rulemaking process is ongoing and any changes resulting from such process, as well as any other changes in the laws or regulations applicable to us more generally, may negatively impact the profitability of our business activities, require us to change certain of our business practices, materially affect our business model, limit the activities in which we may engage, affect retention of key personnel, require us to raise additional regulatory capital, increase the amount of liquid assets that we hold, otherwise affect our funding profile or expose us to additional costs (including increased compliance costs). Any such changes may also require us to invest significant management attention and resources to make any necessary changes and may adversely affect our ability to conduct our business as previously conducted or our results of operations or financial condition. As such, we cannot predict and may not be able to anticipate all the effects of the Dodd-Frank Act on our financial condition or operations.

We are also subject to a wide range of federal, state, and local laws and regulations, such as local licensing requirements, and retail financing, debt collection, consumer protection, environmental, health and safety, creditor, wage-hour, anti-discrimination, whistleblower and other employment practices laws and regulations and we expect these costs to increase going forward. The violation of these or future requirements or laws and regulations could result in administrative, civil, or criminal sanctions against us, which may include fines, a cease and desist order against the subject operations or even revocation or suspension of our license to operate the subject business. As a result, we have incurred and will continue to incur capital and operating expenditures and other costs to comply with these requirements and laws and regulations.

Changes in laws, regulations, or policies may adversely affect our business.

The post-financial crisis era has been marked by an increase in regulation, regulatory intensity, and enforcement. We are unable to predict all of the ways in which this change in the regulatory environment could impact our business models or objectives. The laws and regulations governing our lending, servicing, and debt collection activities or the regulatory or enforcement environment at the federal level or in any of the states in which we operate may change at any time which may have an adverse effect on our business.

We expect, however, to see an increase over time in regulatory scrutiny and enforcement in the area of consumer financial products regulation, as a result of the establishment of the Consumer Financial Protection Bureau, or the CFPB, by the Dodd-Frank Act. The CFPB is responsible for interpreting and enforcing a broad range of consumer protection laws that govern the provision of deposit accounts and the making of loans, including the regulation of mortgage lending and servicing. The CFPB undertook numerous rulemaking and other initiatives in 2012 and 2013. While Medallion Bank’s size currently falls below the threshold that would give the CFPB direct authority over it, Medallion Bank’s existing bank supervisors may pursue similar policies and make similar information requests to those of the CFPB with respect to consumer financial products and other matters within the scope of the CFPB’s authority. We believe that the CFPB’s regulatory reforms, together with other provisions of the Dodd-Frank Act, and increased regulatory supervision, may increase our cost of doing business, impose new restrictions on the way in which we conduct our business, or add significant operational constraints that might impair our profitability.

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We are unable to predict how these or any other future legislative proposals or programs will be administered or implemented or in what form, or whether any additional or similar changes to statutes or regulations, including the interpretation or implementation thereof, will occur in the future. Any such action could affect us in substantial and unpredictable ways and could have an adverse effect on our results of operations and financial condition.

Our inability to remain in compliance with regulatory requirements in a particular jurisdiction could have a material adverse effect on our operations in that market and on our reputation generally. No assurance can be given that applicable laws or regulations will not be amended or construed differently or that new laws and regulations will not be adopted, either of which could materially adversely affect our business, financial condition, or results of operations.

Federal and state law may discourage certain acquisitions of our common stock which could have a material adverse effect on our shareholders.

Because Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act and we are a “financial institution holding company” within the meaning of the Utah Financial Institutions Act, federal and Utah law and regulations prohibit any person or company from acquiring control of us and, indirectly Medallion Bank, without, in most cases, prior written approval of the FDIC or the Commissioner of the Utah Department of Financial Institutions, as applicable. Under the Change in Bank Control Act, control is conclusively presumed if, among other things, a person or company acquires 25% or more of any class of our voting stock. A rebuttable presumption of control arises if a person or company acquires 10% or more of any class of voting stock and is subject to a number of specified “control factors” as set forth in the applicable regulations. Under the Utah Financial Institutions Act, control is defined as the power to vote 20% or more of any class of our voting securities by an individual or to vote more than 10% of any class of our voting securities by a person other than an individual. Investors are responsible for ensuring that they do not, directly or indirectly, acquire shares of our common stock in excess of the amount which can be acquired without regulatory approval. These provisions could delay or prevent a third party from acquiring us, despite the possible benefit to our shareholders, or otherwise adversely affect the market price of our common stock. Although Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act, your investment in Medallion Financial Corp. is not guaranteed by the FDIC and is subject to loss.

Regulations governing our operation as a BDC may affect our ability to, and the way in which, we raise additional capital.

Our business may periodically require capital. We may acquire additional capital from the following sources:

Senior Securities and Other Indebtedness. We may issue debt securities or preferred stock, and/or borrow money from banks or other financial institutions, which we refer to collectively as senior securities, up to the maximum amount permitted by the 1940 Act. If we issue senior securities, including debt or preferred stock, we will be exposed to additional risks, including the following:

• Under the provisions of the 1940 Act, we are permitted, as a BDC, to issue senior securities only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be restricted from issuing additional debt, may be limited in making distributions on our stock, and may be required to sell a portion of our investments and, depending on the nature of our leverage, to repay a portion of our debt at a time when such sales and/or repayments may be disadvantageous. In addition to the 1940 Act, we are subject to two exemptive orders which govern how we calculate our senior securities and under which we have agreed that we will meet the applicable asset coverage ratios both individually and on a consolidated basis.

• Any amounts that we use to service our debt or make payments on preferred stock will not be available for distributions to our common shareholders.

• It is likely that any senior securities or other indebtedness we issue will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. Additionally, some of these securities or other indebtedness may be rated by rating agencies, and in obtaining a rating for such securities and other indebtedness, we may be required to abide by operating and investment guidelines that further restrict operating and financial flexibility.

• We and, indirectly, our shareholders will bear the cost of issuing and servicing such securities and other indebtedness.

• Preferred stock or any convertible or exchangeable securities that we issue in the future may have rights, preferences, and privileges more favorable than those of our common stock, including separate voting rights, and could delay or prevent a transaction or a change in control to the detriment of the holders of our common stock.

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Additional Common Stock. We are not generally able to issue and sell our common stock at a price below net asset value (less any distributing commission or discount) per share. We may, however, sell our common stock, warrants, options, or rights to acquire our common stock, at a price below the current net asset value of the common stock if our Board of Directors determines that such sale is in our best interests and that of our shareholders, and our shareholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our Board of Directors, closely approximates the market value of such securities (less any distributing commission or discount). We may also make rights offerings to our shareholders at prices per share less than the net asset value per share, subject to applicable requirements of the 1940 Act. If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our shareholders at that time would decrease and they may experience dilution. Moreover, we can offer no assurance that we will be able to issue and sell additional equity securities in the future, on favorable terms or at all.

If our investments in assets that are not “qualifying assets” are determined to exceed 30% of our total assets, we could be deemed to be in violation of the 1940 Act or could be precluded from investing in what we believe are attractive investments, which could have a material adverse effect on our business.

As a business development company, we are not permitted to acquire any assets other than “qualifying assets” unless, at the time of such acquisition, at least 70% of our total assets are qualifying assets. Our investment in Medallion Bank and City of Chicago taxicab medallions purchased out of foreclosure, which are carried in foreclosed properties on the consolidated balance sheet, are non-qualifying assets. As of September 30, 2014, the percentage of our total assets that were invested in non-qualifying assets were up to 25% on an unconsolidated basis and up to 29% on a consolidated basis.

At the end of each fiscal quarter, we may take proactive steps to prospectively preserve investment flexibility in the next quarter which is assessed against our total assets at our most recent quarter end. We can accomplish this in many ways including purchasing US Treasury bills or other investment-grade debt securities, and closing out our position on a net cash basis subsequent to quarter end. However, if such proactive measures are ineffective or our primary investments are deemed not to be qualifying assets, or if the fair value of our non-qualifying assets increases or is determined to be higher than previously determined, or if the fair value of our qualifying assets decreases or is determined to be lower than previously determined, we could be deemed in violation of the 1940 Act, or could be precluded from investing in what we believe are attractive investments or from making follow-on investments in existing portfolio companies that are non-qualifying assets, or could be required to dispose of non-qualifying assets at times or on terms that may be disadvantageous to us. Medallion Bank may also not be able to grow as quickly if we are precluded from providing additional funding to Medallion Bank. Any of the foregoing consequences could have a material adverse effect on us. In addition, if we are found to be in violation of the requirements applicable to business development companies under the 1940 Act, we could be unable to qualify as a RIC under the Code.

We will be subject to corporate-level income tax if we are unable to qualify as a RIC under Subchapter M of the Code.

To obtain and maintain RIC tax treatment under the Code, we must meet the following annual distribution, income source, and asset diversification requirements.

• The annual distribution requirement for a RIC will be satisfied if we distribute to our shareholders on an annual basis at least 90% of our net ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, and at least 90% of our net tax exempt income. Because we use debt financing, we are subject to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirement. If we are unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment and thus become subject to corporate-level income tax.

• The income source requirement will be satisfied if we obtain at least 90% of our income for each year from dividends, interest, gains from the sale of stock or securities, or similar sources.

• The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. Failure to meet those requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because most of our investments will be in private companies, and therefore will be relatively illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses.

If we do not qualify as a RIC for more than two consecutive years, and then seek to requalify and elect RIC status, we would be required to recognize gain to the extent of any unrealized appreciation on our assets unless we make a special election to pay corporate-level tax on any such unrealized appreciation recognized during the succeeding 10-year period.

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If we fail to qualify for RIC tax treatment for any reason and are subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions. In addition, the asset coverage and distribution requirements impose significant cash flow management restrictions on us and limit our ability to retain earnings to cover periods of loss, provide for future growth, and pay for extraordinary items. Additionally, we could fail to satisfy the requirement that a RIC derive at least 90% of its gross income from qualifying sources, with the result that we would not qualify as a RIC. Qualification as a RIC is made on an annual basis and, although we and some of our subsidiaries have qualified in the past, we cannot assure you that we will qualify for such treatment in the future.

The Code’s diversification requirements may limit our ability to expand our business.

RIC qualification rules require that at the end of each quarter of our taxable year, (i) at least 50% of the market value of our assets must be represented by cash, securities of other RICs, US government securities, and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of our assets and not greater than 10% of the outstanding voting securities of such issuer and (ii) not more than 25% of the value of our assets may be invested in the securities (other than US government securities or securities of other RICs) of any one issuer, any two or more issuers of which 20% or more of the voting stock is held by us and that are determined to be engaged in the same or similar trades or businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships. As of September 30, 2014, our largest investment subject to this test was our investment in Medallion Bank, representing 22% of our RIC assets. No other investments were more than 5% of our RIC assets. We will continue to monitor the levels of this and any other investment concentrations in conjunction with the diversification tests.

We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

For US federal income tax purposes, we will include in taxable income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the origination of a loan or possibly in other circumstances, or contractual payment-in-kind interest, which represents contractual interest added to the loan balance and due at the end of the loan term. Such original issue discount or increases in loan balances as a result of payment-in-kind interest will be included in income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we will not receive in cash.

Since, in certain cases, we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the annual distribution requirement necessary to achieve and maintain RIC tax treatment under the Code. Accordingly, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital, or reduce new investment originations for this purpose. If we are not able to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus become subject to corporate-level income tax.

As Medallion Bank grows, a greater portion of our business will be subject to corporate-level tax.

Medallion Bank must pay corporate-level US federal and state income taxes. As Medallion Bank grows its business, more of its income will be taxed, which will reduce the amount of cash available for distribution to us and, in turn, to our shareholders.

Our SBIC subsidiaries may be unable to meet the investment company requirements, which could result in the imposition of an entity-level tax.

Some of our subsidiaries are subject to the SBIA. Our SBIC subsidiaries that are also RICs may be prohibited by the SBIA from making the distributions necessary to qualify as a RIC. The SBA has agreed that our SBIC subsidiaries can make these distributions provided we reinvest the distributions in our SBIC subsidiaries. Normally, we would report this reinvested capital as paid-in surplus; however, the SBA has required us to categorize this reinvested capital as undistributed net realized earnings. We cannot assure you that this will continue to be the SBA’s policy or that our subsidiaries will have adequate capital to make the required adjustments. If our subsidiaries are unable to obtain a waiver, compliance with the SBA regulations may result in loss of RIC status and a consequent imposition of an entity-level tax at the subsidiary level. In the event we are granted a waiver, we will be required to reinvest the distribution into the SBIC as capital. This may result in us recognizing taxable income without receiving a corresponding amount of cash to pay the distribution. Any failure to pay the distribution could cause a loss of RIC status and the imposition of entity level tax.

Our SBIC subsidiaries are licensed by the SBA, and are therefore subject to SBA regulations.

Our SBIC subsidiaries are licensed to act as SBICs and are regulated by the SBA. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs from providing funds for certain purposes or to businesses in a few prohibited industries. Compliance with SBA requirements may cause the SBIC subsidiaries to forego attractive investment opportunities that are not permitted under SBA regulations.

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Further, SBA regulations require that a licensed SBIC be periodically examined and audited by the SBA to determine its compliance with the relevant SBA regulations. The SBA prohibits, without prior SBA approval, a “change of control” of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10% or more of a class of capital stock of a licensed SBIC. If the SBIC subsidiaries fail to comply with applicable SBIC regulations, the SBA could, depending on the severity of the violation, limit or prohibit their use of debentures, declare outstanding debentures immediately due and payable, and/or limit them from making new investments. In addition, the SBA can revoke or suspend a license for willful or repeated violation of, or willful or repeated failure to observe, any provision of the SBIA or any rule or regulation promulgated thereunder. Such actions by the SBA would, in turn, negatively affect us.

We may materially change our corporate structure and the nature of our business.

We are very much affected by the legal, regulatory, tax and accounting regimes under which we operate. We are evaluating whether those regimes and our existing corporate structure are the optimum means for the operation and capitalization of our business. As a result of these evaluations, we may decide to proceed with structural and organizational changes (certain of which may require the approval of our shareholders), which could result in material dispositions of various assets, changes in our corporate form, termination of our election to be regulated as a BDC, our conversion from an investment company to an operating company or other fundamental changes. If we were no longer an investment company, our accounting practices would change and, for example, lead to the consolidation of certain majority owned companies with which we do not now consolidate as an investment company. Additionally, if we were no longer an investment company, our shareholders would not benefit from the investor protections provided by the 1940 Act. We may incur certain costs in completing these evaluations and may receive no benefit from these expenditures, particularly if we do not proceed with any changes. No decisions have been made with respect to any such changes and there is no timetable for making any decisions, including any decision not to proceed with any such changes.

We operate in a highly competitive market for investment opportunities.

We compete for investments with other business development companies and other investment funds as well as traditional financial services companies such as commercial banks and credit unions. Many of our competitors are substantially larger and have considerably greater financial, technical, and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships, and offer better pricing and more flexible structuring than us. We may lose investment opportunities if we do not match our competitors’ pricing, terms, and structure. If we are forced to match our competitors’ pricing, terms, and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC.

We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition, and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time.

Changes in interest rates may affect our cost of capital and net investment income.

Because we borrow to fund our investments, a portion of our income is dependent upon the difference between the interest rate at which we borrow funds and the interest rate at which we invest these funds. A portion of our investments, such as taxi medallion loans, will have fixed interest rates, while a portion of our borrowings will likely have floating interest rates. As a result, a significant change in market interest rates could have a material adverse effect on our net investment income. In periods of rising interest rates, our cost of funds could increase, which would reduce our net investment income. We may hedge against interest rate fluctuations by using standard hedging instruments, subject to applicable legal requirements. These activities may limit our ability to participate in the benefits of lower interest rates with respect to the hedged portfolio. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition, and results of operations. Also, we will have to rely on our counterparties to perform their obligations under such hedges.

We depend on cash flow from our subsidiaries to make distributions to our shareholders.

We are primarily a holding company, and we derive most of our operating income and cash flow from our subsidiaries. As a result, we rely heavily upon distributions from our subsidiaries to generate the funds necessary to make distributions to our shareholders. Funds are provided to us by our subsidiaries through dividends and payments on intercompany indebtedness, but we cannot assure you that our subsidiaries will be in a position to continue to make these dividend or debt payments. The Utah Department of Financial Institutions and FDIC have the authority to prohibit or to limit the payment of dividends by Medallion Bank. In addition, as a condition to receipt of FDIC insurance, Medallion Bank entered into a capital maintenance agreement with the FDIC requiring it to maintain a 15% leverage ratio (Tier 1 capital to total assets). Medallion Bank may be restricted from declaring and paying dividends if doing so were to cause it to fall below a 15% leverage ratio.

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Medallion Bank’s use of brokered deposit sources for its deposit-gathering activities may not be available when needed.

Medallion Bank relies on the established brokered deposit market to originate deposits to fund its operations. Medallion Bank’s brokered deposits consist of deposits raised through the brokered deposit market rather than through retail branches. While Medallion Bank has developed contractual relationships with a diversified group of investment brokers, and the brokered deposit market is well developed and utilized by many banking institutions, conditions could change that might affect the availability of deposits. If the capital levels at Medallion Bank fall below the “well-capitalized” level as defined by the FDIC or the capital level currently required by the FDIC pursuant to its capital maintenance agreement or if Medallion Bank experiences a period of sustained operating losses, the cost of attracting deposits from the brokered deposit market could increase significantly, and the ability of Medallion Bank to raise deposits from this source could be impaired. Brokered deposits may also not be as stable as other types of deposits. Medallion Bank’s ability to manage its growth to stay within the “well-capitalized” level, and the capital level currently required by the FDIC pursuant to its capital maintenance agreement, which is also considerably higher than the level required to be classified as “well-capitalized”, is critical to Medallion Bank’s retaining open access to this funding source.

A decrease in prevailing interest rates may lead to more loan prepayments, which could adversely affect our business.

Our borrowers generally have the right to prepay their loans upon payment of a fee ranging from 1% to 2% for standard commodity loans, and for higher amounts, as negotiated, for larger more custom loan arrangements. A borrower is likely to exercise prepayment rights at a time when the interest rate payable on the borrower’s loan is high relative to prevailing interest rates. In a lower interest rate environment, we will have difficulty re-lending prepaid funds at comparable rates, which may reduce the net interest income that we receive. When this occurs, we will generally reinvest these proceeds in temporary investments, pending their future investment in new portfolio companies. These temporary investments will typically have substantially lower yields than the debt being prepaid, and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if a substantial number of our portfolio companies elect to prepay amounts owed to us and we are not able to reinvest the proceeds for comparable yields in a timely fashion. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our common stock.

An increase in prevailing interest rates could adversely affect our business.

The majority of our loan portfolio is comprised of fixed-rate loans. Abrupt increase in market rates of interest may have an adverse impact on our earnings until we are able to originate new loans at higher prevailing interest rate.

Our investment portfolio is, and will continue to be, recorded at fair value as determined in good faith by our Board of Directors and, as a result, there is, and will continue to be, uncertainty as to the value of our portfolio investments which could adversely affect our net asset value.

Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by our Board of Directors. Unlike other lending institutions, we are not permitted to maintain a general reserve for anticipated losses. Instead, we are required by the 1940 Act to specifically value each individual investment and record an unrealized gain or loss for any asset we believe has increased or decreased in value. Typically, there is not a public market for most of the investments in which we have invested and will generally continue to invest. As a result, our Board of Directors values our investments on a quarterly basis based on a determination of their fair value made in good faith and in accordance with the written guidelines approved by our Board of Directors. Our Board of Directors regularly reviews the appropriateness and accuracy of the method used in valuing our investments, and makes any necessary adjustments. The types of factors that may be considered in determining the fair value pricing of our investments include the nature and realizable value of any collateral, the portfolio company’s earnings and its ability to make payments on its indebtedness, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flow, comparable sales and valuations of companies similar to the portfolio company, regulatory factors that may limit the value of the portfolio company, and other relevant factors. Because such valuations, and particularly valuations of private securities and private companies, are inherently uncertain, the valuations may fluctuate over short periods of time and may be based on estimates. As a result, our determinations of fair value may differ materially from the values that would have been used if a ready market for these investments existed, and may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize upon the sale or disposition of one or more of our investments. Investors purchasing our securities in connection with an offering based on an overstated net asset value would pay a higher price than the value of our investments might warrant, and investors purchasing our securities in connection with an offering based on an understated net asset value would pay a lower price than the value of our investments might warrant. Our net asset value could be adversely affected if our determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such securities. Considering these factors, we have determined that the fair value of our portfolio is below its cost basis. As of September 30, 2014, our net unrealized depreciation on investments other than in controlled subsidiaries, foreclosed properties, and other assets was $6,068,000 or 1.19% of our investment portfolio.

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Uncertainty relating to the reporting of collateral values for our loans may adversely affect the value of our portfolio.

Medallion loans and the asset-based portion of the commercial loan portfolio are primarily collateral-based lending, whereby the collateral value exceeds the amount of the loan, providing sufficient excess collateral to protect us against losses. Collateral values for medallion loans reflect recent sales prices and are typically obtained from the regulatory agency in a particular local market. Collateral values for asset based loans are confirmed through daily analysis of funds availability based on cash collection and receivables agings, confirmations obtained from a borrower’s underlying customers, and field examinations by us or third parties engaged by us. We rely on the integrity of the collateral value benchmarks obtained by the applicable regulatory agencies and other third parties. If these benchmarks are artificially influenced by market participants we could suffer losses. A significant downward movement in collateral values would have a negative impact on our valuation analysis and could result in a significantly lower fair market value measurement of our portfolio.

We require an objective benchmark in determining the fair value of our portfolio. If the benchmarks that we currently use are deemed to be unreliable, we will need to use other intrinsic factors in determining the collateral values for our loans.

We are subject to certain financial covenants and other restrictions under our loan and credit arrangements, which could affect our ability to finance future operations or capital needs or to engage in other business activities.

Our loan and credit agreements contain financial covenants and other restrictions relating to tangible net worth, net income, leverage ratios, shareholders’ equity and collateral values. Our ability to meet these financial covenants and restrictions could be affected by events beyond our control, such as a substantial decline in collateral values. A breach of these covenants could result in an event of default under the applicable debt instrument. Such a default, if not cured or waived, may allow the creditors to accelerate the related debt and may result in the acceleration of any other debt that is subject to an applicable cross-acceleration or cross-default provision. In addition, an event of default under the credit agreements would permit the lenders under our credit facilities to terminate all commitments to extend further credit under the facilities. Furthermore, if we were unable to repay the amounts due and payable under our credit facilities, those lenders could proceed against the collateral granted to them to secure that indebtedness. In the event our lenders or holders of the related notes accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness. Based on the foregoing factors, the operating and financial restrictions and covenants in our current credit agreements and any future financing agreements could adversely affect our ability to finance future operations or capital needs or to engage in other business activities.

The lack of liquidity in our investments may adversely affect our business.

We generally make investments in private companies. Substantially all of these securities are subject to legal and other restrictions on resale or are otherwise less liquid than publicly traded securities. The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded our investments. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company.

In addition, the illiquidity of our loan portfolio and investments may adversely affect our ability to dispose of loans at times when it may be advantageous for us to liquidate such portfolio or investments. In addition, if we were required to liquidate some or all of the investments in the portfolio, the proceeds of such liquidation may be significantly less than the current value of such investments. Because we borrow money to make loans and investments, our net operating income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our interest income. In periods of sharply rising interest rates, our cost of funds would increase, which would reduce our net operating income before net realized and unrealized gains. We use a combination of long-term and short-term borrowings and equity capital to finance our investing activities. Our long-term fixed-rate investments are financed primarily with short-term floating-rate debt, and to a lesser extent by term fixed-rate debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. We have analyzed the potential impact of changes in interest rates on net interest income. Assuming that the balance sheet were to remain constant and no actions were taken to alter the existing interest rate sensitivity, and including the impact on Medallion Bank, a hypothetical immediate 1% increase in interest rates would result in an increase to the line item “net increase in net assets resulting from operations” as of September 30, 2014 by approximately $1,274,000 on an annualized basis, compared to a positive impact of $1,311,000 at December 31, 2013, and the impact of such an immediate increase of 1% over a one year period would have been approximately

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($2,018,000) at September 30, 2014, compared to ($2,007,000) at December 31, 2013. Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size, and composition of the assets on the balance sheet, and other business developments that could affect net increase in net assets resulting from operations in a particular quarter or for the year taken as a whole. Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by these estimates.

We may experience fluctuations in our quarterly results.

We could experience fluctuations in our quarterly operating results due to a number of factors, including our ability to make investments in companies that meet our investment criteria, the interest rate payable on the debt securities we acquire, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets, and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we collect and store sensitive data, including our proprietary business information and that of our customers and personally identifiable information of our customers and employees, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information and regulatory penalties, disrupt our operations and damage our reputation, which could adversely affect our business.

Terrorist attacks, other acts of violence or war, and natural disasters may affect any market for our securities, impact the businesses in which we invest, and harm our operations and profitability.

Terrorist attacks and natural disasters may harm our results of operations and your investment. We cannot assure you that there will not be further terrorist attacks against the US or US businesses or major natural disasters hitting the United States. Such attacks or natural disasters in the US or elsewhere may impact the businesses in which we invest directly, or indirectly by undermining economic conditions in the United States. In addition, a substantial portion of our business is focused in the New York City metropolitan area, which suffered a terrorist attack in 2001. Another terrorist attack in New York City or elsewhere could severely impact our results of operations. Losses resulting from terrorist attacks are generally uninsurable.

Our financial condition and results of operations will depend on our ability to manage growth effectively.

Our ability to achieve our investment objective will depend on our ability to grow, which will depend, in turn, on our management team’s ability to identify, evaluate, and monitor, and our ability to finance and invest in, companies that meet our investment criteria.

Accomplishing this result on a cost-effective basis will be largely a function of our management team’s handling of the investment process, its ability to provide competent, attentive, and efficient services, and our access to financing on acceptable terms. In addition to monitoring the performance of our existing investments, members of our management team and our investment professionals may also be called upon to provide managerial assistance to our portfolio companies. These demands on their time may distract them or slow the rate of investment. In order to grow, we will need to hire, train, supervise, and manage new employees. However, we cannot assure you that any such employees will contribute to the success of our business. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition, and results of operations.

Acquisitions may lead to difficulties that could adversely affect our operations.

By their nature, corporate acquisitions entail certain risks, including those relating to undisclosed liabilities, the entry into new markets, operational, and personnel matters. We may have difficulty integrating acquired operations or managing problems due to sudden increases in the size of our loan portfolio. In such instances, we might be required to modify our operating systems and procedures, hire additional staff, obtain and integrate new equipment, and complete other tasks appropriate for the assimilation of new business activities. We cannot assure you that we would be successful, if and when necessary, in minimizing these inherent risks or in establishing systems and procedures which will enable us to effectively achieve our desired results in respect of any future acquisitions.

Page 69 of 74

Our ability to enter into transactions with our affiliates is restricted.

The 1940 Act restricts our ability to knowingly participate in certain transactions with our affiliates. These restrictions limit our ability to buy or sell any security from or to our affiliates, or engage in “joint” transactions with our affiliates, which could include investments in the same portfolio company (whether at the same or different times). With respect to controlling or certain closely affiliated persons, we will generally be prohibited from engaging in such transactions absent the prior approval of the SEC. With respect to other affiliated persons, we may engage in such transactions only with the prior approval of our independent directors.

The SBA restricts the ability of SBICs to lend money to their officers, directors, and employees, or invest in affiliates thereof.

Medallion Bank is subject to certain federal laws that restrict and control its ability to provide or receive services between affiliates. Sections 23A and 23B of the Federal Reserve Act and applicable regulations also impose restrictions on Medallion Bank. These restrictions limit the transfer of funds by a depository institution to certain of its affiliates, including us, in the form of loans, extensions of credit, investments, or purchases of assets. Sections 23A and 23B also require generally that the depository institution’s transactions with its affiliates be on terms no less favorable to Medallion Bank than comparable transactions with unrelated third parties.

Our Board of Directors may change our operating policies and strategies without prior notice or shareholder approval, the effects of which may be adverse.

Our Board of Directors has the authority to modify or waive our current operating policies and strategies without prior notice and without shareholder approval. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results, and value of our stock. However, the effects might be adverse, which could negatively impact our ability to pay you distributions and cause you to lose all or part of your investment.

Risks Relating to Our Investments

Changes in taxicab industry regulations that result in the issuance of additional medallions or increases in the expenses involved in operating a medallion and increased competition could lead to a decrease in the value of our medallion loan collateral.

Every city in which we originate medallion loans, and most other major cities in the US, limits the supply of taxicab medallions. This regulation results in supply restrictions that support the value of medallions. Actions that loosen these restrictions and result in the issuance of additional medallions into a market could decrease the value of medallions in that market. If this were to occur, the value of the collateral securing our then outstanding medallion loans in that market could be adversely affected. For example, the New York State legislature enacted a law on December 21, 2011 which was amended on February 17, 2012 to permit cars for hire to pickup street hails in boroughs outside of Manhattan. Pursuant to this law, since June 2013 the TLC has issued 6,000 Street Hail Livery licenses and intends to begin issuing an additional 6,000 licenses later this year. We do not yet know the impact that these licenses will have on the taxicab industry. In addition, there is uncertainty in the taxi industry associated with increased competition from ridesharing and car service apps. In the event Street Hail Livery licenses and increased competition from ridesharing and car service apps materially reduce the market for taxicab services, income from operating medallions and the value of medallions serving as collateral for our loans could decrease by a material amount. This could increase our loan to value ratios, loan delinquencies, or loan defaults. We are unable to forecast with any degree of certainty whether any other potential increases in the supply of medallions will occur.

In New York City, Chicago, Boston, and in other markets where we originate medallion loans, taxicab fares are generally set by government agencies. Expenses associated with operating taxicabs are largely unregulated. As a result, the ability of taxicab operators to recoup increases in expenses is limited in the short term. Escalating expenses, such as rising gas prices and increase in interest rates, can render taxicab operations less profitable, could cause borrowers to default on loans from us, and could potentially adversely affect the value of our collateral.

A significant portion of our loan revenue is derived from loans collateralized by New York City taxicab medallions. According to New York City TLC data, over the past 20 years New York City taxicab medallions have appreciated in value from under $160,000 to $1,320,000 for corporate medallions and $1,045,000 for individual medallions. However, for sustained periods during that time, taxicab medallions have declined in value. Since December 31, 2012, the value of New York City taxicab medallions increased by 29% for individual medallions and 20% for corporate medallions.

Page 70 of 74

Lending to small businesses involves a high degree of risk and is highly speculative.

Lending to small businesses involves a high degree of business and financial risk, which can result in substantial losses and should be considered speculative. Our borrower base consists primarily of small business owners that may have limited resources and that are generally unable to obtain financing from traditional sources. There is generally no publicly available information about these small business owners, and we must rely on the diligence of our employees and agents to obtain information in connection with our credit decisions. In addition, these small businesses often do not have audited financial statements. Some smaller businesses have narrower product lines and market shares than their competition. Therefore, they may be more vulnerable to customer preferences, market conditions, or economic downturns, which may adversely affect the return on, or the recovery of, our investment in these businesses.

Our portfolio is and may continue to be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations to us or by a downturn in the particular industry.

Our portfolio is and may continue to be concentrated in a limited number of portfolio companies and industries. In addition, taxicab companies that constitute separate issuers may have related management or guarantors and constitute larger business relationships to us. As of September 30, 2014, investments in New York City taxi medallion loans represented approximately 74% of our managed taxi medallion loans. Beyond the asset diversification requirements associated with our qualification as a RIC, we do not have fixed guidelines for diversification, and while we are not targeting any specific industries, our investments are, and could continue to be, concentrated in relatively few industries. As a result, the aggregate returns we realize may be adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. If our larger borrowers were to significantly reduce their relationships with us and seek financing elsewhere, the size of our loan portfolio and operating results could decrease. In addition, larger business relationships may also impede our ability to immediately foreclose on a particular defaulted portfolio company as we may not want to impair an overall business relationship with either the portfolio company management or any related funding source. Additionally, a downturn in any particular industry in which we are invested could also negatively impact the aggregate returns we realize.

If we are unable to continue to diversify geographically, our business may be adversely affected if the New York City taxicab industry experiences a sustained economic downturn.

A significant portion of our loan revenue is derived from New York City medallion loans collateralized by New York City taxicab medallions. An economic downturn in the New York City taxicab industry could lead to an increase in defaults on our medallion loans. We cannot assure you that we will be able to sufficiently diversify our operations geographically.

An economic downturn could result in certain of our commercial and consumer loan customers experiencing declines in business activities and/or personal resources, which could lead to difficulties in their servicing of their loans with us, and increasing the level of delinquencies, defaults, and loan losses in our commercial and consumer loan portfolios.

Laws and regulations implemented in response to climate change could result in increased operating costs for our portfolio companies.

Congress and other governmental authorities have either considered or implemented various laws and regulations in response to climate change and the reduction of greenhouse gases. Existing environmental regulations could be revised or reinterpreted, new laws and regulations could be adopted, and future changes in environmental laws and regulations could occur, which could impose additional costs on the operation of our portfolio companies. For example, regulations to cut gasoline use and control greenhouse gas emissions from new cars could adversely affect our medallion portfolio companies. Our portfolio companies may have to make significant capital and other expenditures to comply with these laws and regulations. Changes in, or new, environmental restrictions may force our portfolio companies to incur significant expenses or expenses that may exceed their estimates. There can be no assurance that such companies would be able to recover all or any increased environmental costs from their customers or that their business, financial condition or results of operations would not be materially and adversely affected by such expenditures or any changes in environmental laws and regulations, in which case the value of these companies could be adversely affected.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

We invest in our portfolio companies primarily through senior secured loans, junior secured loans, and subordinated debt issued by small- to mid-sized companies. Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization, or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization, or bankruptcy of the relevant portfolio company.

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A third party finance company sold various participations in asset based loans to Medallion Business Credit and Medallion Bank. In April 2013, the aggregate balance of the participations was approximately $13.8 million, $12.9 million of which were held by Medallion Bank. That amount was divided between seven separate borrowers operating in a variety of industries. In April 2013, the third party finance company became the subject of an involuntary bankruptcy petition filed by its bank lenders. Among other things, the bank lenders alleged that the third party finance company fraudulently misrepresented its borrowing availability under its credit facility with the bank lenders and are seeking the third party finance company’s liquidation. In May 2013, the bankruptcy court presiding over the third party finance company’s case entered an order converting the involuntary chapter 7 case to a chapter 11 case. On May 31, 2013, we commenced an adverse proceeding against the third party finance company and the bank lenders seeking declaratory judgment that our loan participations are true participations and not subject to the bankruptcy estate or to the bank lender’s security interest in the third party finance company’s assets. The third party finance company and bank lenders are contesting our position. In April 2014, we received a decision from the court granting summary judgment in our favor with respect to the issue of whether our loan participations are true participations. The remaining issues are still being litigated. Although we believe the claims raised by the third party finance company and the senior lenders are without merit and will vigorously defend against them, we cannot at this time predict the outcome of this litigation or determine our potential exposure. If we are incorrect in our assessments our results of operations could be materially adversely affected. At September 30, 2014, five of the seven secured borrowers had refinanced their loans in full with third parties, and the related proceeds are held in escrow pending resolution of the bankruptcy proceedings. One loan was charged off in September 2014. The one remaining loan is still outstanding. See page 44 for additional information regarding this matter.

There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

Even though we may have structured most of our investments as senior loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt investment and subordinate all or a portion of our claim to that of other creditors. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken in rendering significant managerial assistance.

We may not control many of our portfolio companies.

We may not control many of our portfolio companies, even though we may have board representation or board observation rights, and our debt agreements may contain certain restrictive covenants. As a result, we are subject to the risk that a portfolio company in which we invest may make business decisions with which we disagree, and the management of such company may take risks or otherwise act in ways that do not serve our interests as debt investors.

We may not realize gains from our equity investments.

Certain investments that we have made in the past and may make in the future include warrants or other equity securities. In addition, we may from time to time make non-control, equity co-investments in companies in conjunction with private equity sponsors. Our goal is ultimately to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization, or public offering, which would allow us to sell the underlying equity interests.

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ITEM 6. EXHIBITS

EXHIBITS

Number	Description
10.1	Commitment Letter, dated September 2, 2014, by the Small Business Administration to Medallion Capital, Inc., accepted and agreed to by Medallion Capital, Inc. on September 9, 2014. Filed herewith.
31.1	Certification of Alvin Murstein pursuant to Rule 13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Larry D. Hall pursuant to Rule 13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Alvin Murstein pursuant to 18 USC. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Larry D. Hall pursuant to 18 USC. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
99.1	Consolidated Schedules of Investments as of September 30, 2014 and December 31, 2013. Filed herewith.

IMPORTANT INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. In connection with certain forward-looking statements contained in this Form 10-Q and those that may be made in the future by or on behalf of the Company, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this Form 10-Q were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory, and other uncertainties and contingencies, all of which are difficult or impossible to predict, and many of which are beyond the control of the Company. Accordingly, there can be no assurance that the forward-looking statements contained in this Form 10-Q will be realized or that actual results will not be significantly higher or lower. The statements have not been audited by, examined by, compiled by, or subjected to agreed-upon procedures by independent accountants, and no third-party has independently verified or reviewed such statements. Readers of this Form 10-Q should consider these facts in evaluating the information contained herein. In addition, the business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements contained in this Form 10-Q. The inclusion of the forward-looking statements contained in this Form 10-Q should not be regarded as a representation by the Company or any other person that the forward-looking statements contained in this Form 10-Q will be achieved. In light of the foregoing, readers of this Form 10-Q are cautioned not to place undue reliance on the forward-looking statements contained herein. These risks and others that are detailed in this Form 10-Q and other documents that the Company files from time to time with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and any current reports on Form 8-K must be considered by any investor or potential investor in the Company.

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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 thereunto duly authorized.

MEDALLION FINANCIAL CORP.
Date: November 5, 2014
By:	/s/ Alvin Murstein
	Alvin Murstein
	Chairman and Chief Executive Officer
By:	/s/ Larry D. Hall
	Larry D. Hall Senior Vice President and Chief Financial Officer Signing on behalf of the registrant as principal financial and accounting officer.

Page 74 of 74

EX-10.1

Exhibit 10.1

U.S. SMALL BUSINESS ADMINISTRATION

OFFICE OF INVESTMENT & INNOVATION

409 THIRD STREET, SW, SUITE 6300

WASHINGTON, D.C. 20416

COMMITMENT LETTER

License No. 05/05-5134

SEP 2 - 2014

Mr. Dean Pickerell

Medallion Capital Inc.

3000 W. County Road 42, Suite 301

Burnsville, MN 55337

Dear Mr. Pickerell:

The Small Business Administration (“SBA”) is hereby committing to reserve Leverage (as defined in Title 13 of the Code of Federal Regulations (“13 CFR”) 107.50) in the form of guaranteed Debentures in an amount equal to $10,000,000.00, to be issued by Medallion Capital, Inc. (the “Company”) on or prior to September 30, 2018, subject to the terms and conditions set forth in this Commitment Letter and in 13 CFR 107.1200-1240. As used herein, terms which are defined in 13 CFR Part 107 shall have the meanings assigned to them therein.

SBA may limit the amounts that may be drawn each year under this Commitment Letter. Each issuance of Leverage under this Commitment Letter is conditioned upon the Company’s creditworthiness (as determined by SBA) and the Company’s full compliance (as determined by SBA) with each of the other terms and conditions set forth in 13 CFR 107.1200-1240.

This Commitment Letter shall terminate automatically at 5:00 P.M. Eastern Time on September 30,2018. You must pay to SBA a non-refundable leverage fee in the amount of $100,000.00 within thirty days of the date of this letter or prior to your first draw against this commitment, whichever occurs earlier. The remaining portion of the leverage fee, in the amount of $200,000.00, will be deducted pro-rata as commitment proceeds are drawn.

By its acceptance of this Commitment Letter, the Company agrees to pay, indemnify and hold SBA harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to or arising out of this Commitment Letter.

This Commitment Letter is subject to the provisions of Part 107 of Title 13 of the Code of Federal Regulations, including without limitation 13 CFR 107.1200-1240, which are incorporated herein by reference.

This Commitment Letter has been issued in reliance upon the written representations and certifications made by the Company to SBA in connection with its application for a commitment. This Commitment Letter shall be governed by, and construed in accordance with , federal law.

Two originals of this Commitment Letter are provided so that one may be retained by the Company and the other returned to this Office, Attention: Andrew Hogue.

U.S. Small Business Administration
By:	/s/ Pravina Raghavan
	Pravina Raghavan
	Deputy Associate Administrator for Investment & Innovation

Agreed and Accepted: Medallion Capital, Inc.
By:	/s/ Dean Pickerell
Date:	9/9/14

EX-31.1

Exhibit 31.1

CERTIFICATIONS

Certification of Alvin Murstein

I, Alvin Murstein, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Medallion Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2014

By:	/s/ Alvin Murstein
	Alvin Murstein Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Larry D. Hall

I, Larry D. Hall, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Medallion Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2014

By:	/s/ Larry D. Hall
	Larry D. Hall
	Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 USC SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Medallion Financial Corp. (the “Company”) for the quarter ending September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

By:	/s/ Alvin Murstein
	Chairman and Chief Executive Officer

Date: November 5, 2014

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 USC SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Medallion Financial Corp. (the “Company”) for the quarter ending September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, based on my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

By:	/s/ Larry D. Hall
	Senior Vice President and Chief Financial Officer

Date: November 5, 2014

EX-99.1

Exhibit 99.1

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
Medallion Loans
New York						366		74	%		3.61	%	$	0	$	66,212	$	204,662	$	204,758
	Real Cab Corp	Term Loan	07/20/07	07/20/17		1		1	%		2.81	%	$	0			$	2,545	$	2,545
	Real Cab Corp	Term Loan	08/19/14	07/20/17		1		1	%		3.31	%	$	0	$	1,627	$	1,583	$	1,583
	Real Cab Corp	Term Loan	07/20/07	07/20/17		1		*			2.81	%	$	0			$	350	$	350
	Sean Cab Corp ##	Term Loan	12/09/11	12/08/15		1		1	%		3.60	%	$	0			$	3,505	$	3,493
	Slo Cab Corp ##	Term Loan	07/20/07	07/20/17		1		1	%		2.81	%	$	0			$	1,527	$	1,527
	Slo Cab Corp ##	Term Loan	08/19/14	07/20/17		1		*			3.31	%	$	0	$	976	$	950	$	950
	Slo Cab Corp ##	Term Loan	07/20/07	07/20/17		1		*			2.81	%	$	0			$	210	$	210
	Whispers Taxi Inc ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%	$	0			$	2,121	$	2,115
	Pontios Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	0	$	1,828	$	1,808	$	1,810
	Ikaria Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	0	$	1,828	$	1,808	$	1,810
	Kos Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	0	$	1,828	$	1,808	$	1,810
	Sag Taxi LLC ##	Term Loan	03/28/14	03/28/17		1		1	%		3.50	%	$	0	$	1,828	$	1,808	$	1,810
	Yosi Transit Inc ##	Term Loan	07/20/07	07/20/17		1		*			2.81	%	$	0			$	1,018	$	1,018
	Yosi Transit Inc ##	Term Loan	08/19/14	07/20/17		1		*			3.31	%	$	0	$	651	$	633	$	633
	Yosi Transit Inc ##	Term Loan	07/20/07	07/20/17		1		*			2.81	%	$	0			$	140	$	140
	Sifnos, Kitriani Incs ##	Term Loan	06/08/10	05/01/15		1		1	%		4.00	%	$	0			$	1,587	$	1,581
	Daytona Hacking Corp ##	Term Loan	03/26/14	03/26/17		1		1	%		3.38	%	$	0	$	1,570	$	1,553	$	1,555
	Kaderee M & G Corp ##	Term Loan	03/26/14	03/26/17		1		1	%		3.38	%	$	0	$	1,570	$	1,550	$	1,552
	Silke Hacking Corp ##	Term Loan	03/26/14	03/26/17		1		1	%		3.38	%	$	0	$	1,570	$	1,550	$	1,552
	Lety Cab Corp ##	Term Loan	10/21/10	10/20/15		1		1	%		3.13	%	$	0			$	1,519	$	1,513
	Nancy Transit Inc ##	Term Loan	03/11/13	03/11/16		1		1	%		3.50	%	$	0			$	1,516	$	1,513
	Bunty & Jyoti Inc ##	Term Loan	03/13/13	03/13/16		1		1	%		3.75	%	$	0			$	1,516	$	1,512
	Christian Cab Corp	Term Loan	11/27/12	11/27/15		1		1	%		4.00	%	$	0			$	1,502	$	1,502
	Junaid Trans Corp ##	Term Loan	04/30/13	04/30/16		1		1	%		3.75	%	$	0			$	1,495	$	1,491
	Ocean Hacking Corp ##	Term Loan	12/20/13	12/20/16		1		1	%		3.50	%	$	0			$	1,471	$	1,473
	Dayna Hacking Corp ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%	$	0			$	1,414	$	1,410
	Devin Taxi Corp ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%	$	0			$	1,414	$	1,410
	Benson Hacking Corp ##	Term Loan	05/28/13	05/28/16		1		1	%		3.35	%	$	0			$	1,414	$	1,410
	Orys Trans Corp	Term Loan	07/24/13	07/24/16		1		1	%		2.75	%	$	0			$	1,400	$	1,401
	Alltaxitwo Cab Corp ##	Term Loan	07/24/13	07/24/16		1		1	%		2.75	%	$	0			$	1,400	$	1,401
	Anniversary Taxi Corp ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	0	$	1,400	$	1,400	$	1,397
	Hj Taxi Corp ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	0	$	1,400	$	1,400	$	1,397
	Apple Cab Corp ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	0	$	1,400	$	1,400	$	1,397
	Kby Taxi Inc ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	0	$	1,400	$	1,400	$	1,397
	Avi Taxi Corporation ##	Term Loan	04/11/14	04/11/17		1		1	%		3.25	%	$	0	$	1,400	$	1,400	$	1,397
	Sonu-Seema Corp ##	Term Loan	12/07/12	12/07/15		1		*			3.75	%	$	0			$	1,387	$	1,383
	Flow Taxi Corp ##	Term Loan	07/23/13	07/23/16		1		*			3.00	%	$	0			$	1,376	$	1,377
	Ukraine Service Co ##	Term Loan	07/23/13	07/23/16		1		*			3.00	%	$	0			$	1,376	$	1,377
	Lil Amandachaka Hacking Corp	Term Loan	07/23/13	07/23/16		1		*			3.00	%	$	0			$	1,376	$	1,377
	Uddin Taxi Corp ##	Term Loan	11/14/12	11/14/15		1		*			5.25	%	$	0			$	1,343	$	1,340
	Perem Hacking Corp ##	Term Loan	02/21/13	02/21/16		1		*			3.00	%	$	0			$	1,333	$	1,329
	S600 Service Co Inc ##	Term Loan	02/21/13	02/21/16		1		*			3.00	%	$	0			$	1,333	$	1,329
	Concourse Cab Corp ##	Term Loan	11/14/13	11/14/16		1		*			3.75	%	$	0			$	1,309	$	1,315
	Ela Papou LLC ##	Term Loan	06/27/14	06/27/17		1		*			3.63	%	$	0	$	1,320	$	1,311	$	1,313
	Cfn Cab Corp ##	Term Loan	02/26/14	02/26/18		1		*			3.75	%	$	0	$	1,320	$	1,305	$	1,307
	Miklos Hacking Corp ##	Term Loan	02/26/14	02/26/18		1		*			3.75	%	$	0	$	1,320	$	1,305	$	1,307
	Ming Trans Corp ##	Term Loan	11/19/12	12/01/16		1		*			3.70	%	$	0			$	1,245	$	1,242
	Ride Yellow LLC ##	Term Loan	02/01/13	11/01/16		1		*			3.10	%	$	0			$	1,200	$	1,197
	Avilie Service Inc ##	Term Loan	02/11/13	02/11/16		1		*			3.00	%	$	0			$	1,145	$	1,146
	Red Army Cab Corp ##	Term Loan	02/21/13	08/21/16		1		*			3.00	%	$	0			$	1,124	$	1,121

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	New Direction Cab Corp ##	Term Loan	11/18/11	11/18/14		1		*		4.00	%	$	0			$	1,117	$	1,113
	Big Ari Taxi Corp ##	Term Loan	08/14/13	08/14/16		1		*		2.80	%	$	0			$	1,111	$	1,113
	D & G Taxi Inc ##	Term Loan	05/28/13	05/28/16		1		*		3.35	%	$	0			$	1,105	$	1,102
	Gaultier Hacking Corp ##	Term Loan	08/27/12	08/27/15		1		*		3.90	%	$	0			$	1,082	$	1,080
	Jump Service Co Inc ##	Term Loan	02/11/13	02/22/16		1		*		2.80	%	$	0			$	1,077	$	1,074
	Rs Hacking Corp ##	Term Loan	05/28/13	05/28/16		1		*		3.35	%	$	0			$	1,052	$	1,049
	Whats Yellow LLC ##	Term Loan	10/03/12	10/03/15		1		*		3.65	%	$	0			$	1,035	$	1,036
	Nelsk Taxi Inc ##	Term Loan	08/20/13	08/20/16		1		*		3.50	%	$	0			$	996	$	998
	Global Agami Cab LLC ##	Term Loan	02/27/13	06/02/17		1		*		2.88	%	$	0			$	981	$	979
	Universal Agami Transit Inc ##	Term Loan	02/27/13	06/02/17		1		*		2.88	%	$	0			$	981	$	979
	Planet Agami Cab LLC ##	Term Loan	02/27/13	06/02/17		1		*		2.88	%	$	0			$	981	$	979
	M.Y. Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	960	$	961
	Holdem Cab Corp ##	Term Loan	04/10/13	04/10/16		1		*		3.00	%	$	0			$	961	$	959
	Go Boy Cab Corp ##	Term Loan	04/10/13	04/10/16		1		*		3.00	%	$	0			$	961	$	959
	Ede Service Corp	Term Loan	08/19/14	07/20/17		1		*		3.31	%	$	0	$	976	$	950	$	950
	Typhoon Hacking Corp ##	Term Loan	05/30/13	05/30/18		1		*		3.50	%	$	0			$	942	$	944
	Hedy Hacking Corp. ##	Term Loan	05/30/13	05/30/18		1		*		3.50	%	$	0			$	942	$	944
	Nedrag Trans Corp ##	Term Loan	05/30/13	05/30/18		1		*		3.50	%	$	0			$	942	$	944
	Btr Taxi Inc ##	Term Loan	06/16/14	06/16/17		1		*		3.75	%	$	0	$	900	$	895	$	897
	Iddy Biddy Cab Corp ##	Term Loan	08/06/10	08/05/15		1		*		3.13	%	$	0			$	843	$	840
	Malcolm Hacking Corp ##	Term Loan	08/06/10	08/05/15		1		*		3.13	%	$	0			$	843	$	840
	Jbob Hacking Corp ##	Term Loan	08/06/10	08/05/15		1		*		3.13	%	$	0			$	843	$	840
	Oyaz Hacking Corp ##	Term Loan	08/06/10	08/05/15		1		*		3.13	%	$	0			$	843	$	840
	Copper One Cab Corp ##	Term Loan	02/17/12	02/12/17		1		*		3.90	%	$	0			$	829	$	830
	Asterik Cab Co Inc ##	Term Loan	02/17/12	02/12/17		1		*		3.90	%	$	0			$	829	$	830
	Agape-Mou Cab Corp ##	Term Loan	02/17/12	02/12/17		1		*		3.90	%	$	0			$	829	$	830
	Ghotra & Ghotra LLC	Term Loan	12/19/13	12/19/16		1		*		3.85	%	$	0			$	818	$	823
	Gur & Dev Taxi LLC	Term Loan	02/18/14	02/18/17		1		*		3.88	%	$	0	$	820	$	809	$	814
	Gurpreet Singh & Manpreet Sing ##	Term Loan	06/25/13	06/25/16		1		*		3.88	%	$	0			$	810	$	811
	Arman And Mehtab Padda Taxi Co ##	Term Loan	06/19/13	06/19/16		1		*		3.88	%	$	0			$	808	$	809
	Garcha Randhawa Taxi Corp ##	Term Loan	05/31/13	05/30/16		1		*		3.88	%	$	0			$	807	$	808
	Zus Trading Inc ##	Term Loan	08/09/13	08/09/16		1		*		3.85	%	$	0			$	800	$	801
	Danny Truong ##	Term Loan	07/30/14	07/30/17		1		*		3.75	%	$	0	$	809	$	790	$	786
	Dhuri And Barnala Cab Corp ##	Term Loan	06/03/13	06/03/16		1		*		3.80	%	$	0			$	785	$	786
	Ghulam Abbas ##	Term Loan	04/17/13	04/17/16		1		*		3.80	%	$	0			$	785	$	785
	Haroon Sharif ##	Term Loan	05/21/13	05/21/16		1		*		3.80	%	$	0			$	784	$	785
	Espiye Taxi Corp	Term Loan	05/23/14	05/23/17		1		*		3.75	%	$	0	$	775	$	769	$	769
	Alika Awan Trans Corp ##	Term Loan	09/04/13	09/04/16		1		*		3.85	%	$	0			$	767	$	768
	Senoz Cab Corp	Term Loan	05/23/14	05/23/17		1		*		3.85	%	$	0	$	771	$	765	$	765
	Gilberto Barrera ##	Term Loan	04/02/14	04/02/17		1		*		4.00	%	$	0	$	770	$	763	$	764
	Samiullah Zaman ##	Term Loan	04/07/14	04/07/17		1		*		4.00	%	$	0	$	763	$	755	$	757
	1212 Taxi LLC ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	750	$	751
	Binh Pham ##	Term Loan	04/23/14	04/23/17		1		*		4.00	%	$	0	$	754	$	747	$	746
	Rakesh Aggarwal & Jasvir Singh ##	Term Loan	05/07/14	05/07/17		1		*		3.85	%	$	0	$	750	$	744	$	743
	Joseph Gerard Pierre ##	Term Loan	07/07/14	07/07/17		1		*		3.75	%	$	0	$	744	$	740	$	739
	Carlos Govea ##	Term Loan	06/05/14	06/05/17		1		*		3.75	%	$	0	$	740	$	736	$	738
	Hot Wheels Taxi LLC ##	Term Loan	03/01/13	12/01/16		1		*		3.10	%	$	0			$	738	$	737
	Mandeep Multani & Ravinder Sin ##	Term Loan	03/19/14	03/19/17		1		*		3.90	%	$	0	$	740	$	736	$	735
	Carmay Latendresse ##	Term Loan	05/19/14	05/19/17		1		*		4.25	%	$	0	$	740	$	733	$	734
	Jose F Pimentel ##	Term Loan	05/14/14	05/14/17		1		*		4.00	%	$	0	$	740	$	735	$	732
	Samy Baddar ##	Term Loan	07/18/13	07/18/16		1		*		3.50	%	$	0			$	728	$	729
	Ilker Altaygil ##	Term Loan	07/18/13	07/18/16		1		*		3.50	%	$	0			$	728	$	729

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	Amr Aly Shafshak ##	Term Loan	11/04/13	11/04/16		1		*		4.13	%	$	0			$	726	$	727
	Atef A Khalil ##	Term Loan	07/09/14	07/09/17		1		*		3.85	%	$	0	$	725	$	725	$	727
	Joseph R Jean ##	Term Loan	04/15/13	04/15/16		1		*		3.75	%	$	0			$	720	$	720
	Georges Salomon ##	Term Loan	08/04/14	08/04/17		1		*		4.00	%	$	0	$	719	$	717	$	719
	Jaswinder Singh ##	Term Loan	03/29/13	03/29/16		1		*		3.80	%	$	0			$	716	$	715
	Bliss Cab Corp ##	Term Loan	10/21/10	10/20/15		1		*		3.13	%	$	0			$	713	$	710
	Leo P. Roland ##	Term Loan	12/03/13	12/03/16		1		*		3.75	%	$	0			$	707	$	708
	Aminder Pal Singh ##	Term Loan	11/21/13	11/21/16		1		*		3.75	%	$	0			$	706	$	708
	Kawarjeet Singh & Maan Singh ##	Term Loan	05/15/13	05/15/16		1		*		3.50	%	$	0			$	704	$	705
	Avtar Singh ##	Term Loan	08/29/14	08/29/17		1		*		3.75	%	$	0	$	700	$	700	$	702
	Mukhtiar Singh ##	Term Loan	08/29/14	08/29/17		1		*		3.75	%	$	0	$	700	$	698	$	700
	Bruce Schneider ##	Term Loan	05/10/13	05/10/16		1		*		4.00	%	$	0			$	700	$	699
	Nobert Auguste	Term Loan	05/02/14	05/02/17		1		*		4.15	%	$	0	$	700	$	695	$	695
	Gilzian Enterprise LLC ##	Term Loan	05/22/14	05/22/17		1		*		3.88	%	$	0	$	700	$	695	$	694
	Yvon Louissaint ##	Term Loan	02/20/14	02/20/17		1		*		3.88	%	$	0	$	700	$	690	$	692
	Strivers Way Inc ##	Term Loan	12/17/13	12/17/16		1		*		3.85	%	$	0			$	689	$	691
	Sukhdev Singh & Harpal S Bhola ##	Term Loan	12/04/13	12/04/16		1		*		3.75	%	$	0			$	684	$	685
	Balwinder Singh ##	Term Loan	09/16/13	09/16/15		1		*		3.75	%	$	0			$	683	$	684
	Marian Cab Corp ##	Term Loan	06/19/12	06/19/16		1		*		3.75	%	$	0			$	684	$	683
	Eugenio & Ayodele Trans Corp ##	Term Loan	09/26/13	09/26/16		1		*		4.25	%	$	0			$	682	$	683
	Amr & Rina Taxi Inc ##	Term Loan	07/15/13	07/15/16		1		*		3.75	%	$	0			$	679	$	680
	Parvinder Singh ##	Term Loan	08/13/13	08/13/16		1		*		3.63	%	$	0			$	680	$	679
	Preslert Louis ##	Term Loan	05/30/13	05/30/16		1		*		3.50	%	$	0			$	678	$	679
	Shanu Miah ##	Term Loan	06/20/13	06/20/16		1		*		3.63	%	$	0			$	673	$	674
	Rousseau Ductan ##	Term Loan	05/01/13	05/01/16		1		*		3.90	%	$	0			$	671	$	671
	Anwar Khalifa ##	Term Loan	08/07/14	08/07/17		1		*		4.50	%	$	0	$	670	$	668	$	668
	Kerolus Waheib Makhail	Term Loan	12/27/12	12/27/15		1		*		3.50	%	$	0			$	668	$	668
	Joseph L Flovel ##	Term Loan	10/31/13	10/30/16		1		*		3.63	%	$	0			$	663	$	667
	Joseph Paul Desir ##	Term Loan	07/28/14	07/28/17		1		*		4.10	%	$	0	$	666	$	662	$	664
	Shahdad Bhatti Cab Corp	Term Loan	08/18/14	08/18/17		1		*		4.37	%	$	0	$	662	$	661	$	662
	Jasvir S Dhaliwal ##	Term Loan	07/01/13	07/01/16		1		*		4.25	%	$	0			$	660	$	660
	Gerardo Barrera ##	Term Loan	08/08/14	08/08/17		1		*		4.00	%	$	0	$	662	$	660	$	660
	Jordan O Ohene ##	Term Loan	05/24/13	05/24/16		1		*		3.50	%	$	0			$	655	$	658
	Robell Hacking Corp ##	Term Loan	09/11/13	09/11/16		1		*		2.80	%	$	0			$	658	$	657
	Birk Cab Corp ##	Term Loan	05/22/13	05/22/16		1		*		3.50	%	$	0			$	653	$	656
	Alexander Vizueta ##	Term Loan	04/01/14	04/01/17		1		*		4.25	%	$	0	$	660	$	655	$	655
	Donald Singh ##	Term Loan	10/11/13	10/11/16		1		*		3.75	%	$	0			$	646	$	645
	Pierre Goguin Joseph ##	Term Loan	03/06/13	03/06/15		1		*		3.75	%	$	0			$	642	$	642
	Charanjeet Kaur & Manjit Singh ##	Term Loan	10/28/13	10/28/16		1		*		3.50	%	$	0			$	640	$	642
	Brunet Lucas ##	Term Loan	06/06/13	06/06/16		1		*		3.50	%	$	0			$	641	$	640
	Aujla Cab Corp ##	Term Loan	04/23/14	04/23/17		1		*		3.75	%	$	0	$	650	$	640	$	640
	Albro Hacking, Corp.	Term Loan	07/10/14	07/10/17		1		*		3.63	%	$	0	$	635	$	632	$	634
	Ny Diploma Taxi Co	Term Loan	08/19/14	07/20/17		1		*		3.31	%	$	0	$	651	$	633	$	633
	Lesly Jeanjoseph ##	Term Loan	05/08/13	05/08/16		1		*		3.50	%	$	0			$	629	$	628
	Spyridon Tzorzis ##	Term Loan	07/10/13	07/10/16		1		*		3.50	%	$	0			$	616	$	617
	Joseph W Charles	Term Loan	05/27/14	05/27/17		1		*		3.70	%	$	0	$	620	$	614	$	616
	Mohammed Hossen & Abrar Hanif ##	Term Loan	03/11/13	03/11/16		1		*		3.50	%	$	0			$	615	$	615
	Michael Avitan ##	Term Loan	04/11/13	04/11/16		1		*		3.90	%	$	0			$	614	$	615
	Man Singh ##	Term Loan	02/25/13	02/25/16		1		*		3.75	%	$	0			$	614	$	613
	Mian Cab Corp ##	Term Loan	01/21/14	01/21/17		1		*		4.00	%	$	0	$	620	$	610	$	612
	Marc C Bastien ##	Term Loan	04/11/13	04/10/16		1		*		3.65	%	$	0			$	607	$	608
	Karamjit Panchhi ##	Term Loan	08/28/13	08/28/16		1		*		3.50	%	$	0			$	608	$	607

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
	Guivarch Thimothe	Term Loan	09/19/12	09/19/15		1		*		4.50	%	$	0			$	604	$	605
	Guy Merisier ##	Term Loan	07/25/14	07/25/17		1		*		4.13	%	$	0	$	601	$	598	$	600
	Patrick Sattaur ##	Term Loan	03/15/13	03/15/16		1		*		3.63	%	$	0			$	598	$	597
	Tarek Elsaid ##	Term Loan	05/12/14	05/12/17		1		*		3.63	%	$	0	$	600	$	595	$	597
	Oradeanul Taxi Corp ##	Term Loan	01/30/13	02/01/16		1		*		3.63	%	$	0			$	593	$	593
	Turgut Duman ##	Term Loan	12/06/12	12/06/15		1		*		3.50	%	$	0			$	592	$	592
	Sushil Maggoo ##	Term Loan	12/14/12	12/14/15		1		*		3.50	%	$	0			$	592	$	592
	Manuel F Pena ##	Term Loan	11/26/13	11/26/16		1		*		3.50	%	$	0			$	587	$	589
	Humberto Ontaneda ##	Term Loan	10/17/13	10/17/16		1		*		3.50	%	$	0			$	586	$	588
	Alexander A Malamud ##	Term Loan	02/28/13	02/28/16		1		*		3.55	%	$	0			$	581	$	582
	Rafi Mohammad ##	Term Loan	02/27/13	02/27/16		1		*		3.50	%	$	0			$	577	$	576
	Roudy Moliere &Jean B Letang ##	Term Loan	12/17/12	12/17/15		1		*		4.25	%	$	0			$	577	$	576
	Erwich Chery	Term Loan	09/29/14	09/29/17		1		*		4.00	%	$	0	$	572	$	572	$	574
	Jean J Monteau ##	Term Loan	12/06/12	12/06/15		1		*		4.00	%	$	0			$	575	$	573
	Eli Parada ##	Term Loan	11/27/13	11/27/16		1		*		3.65	%	$	0			$	569	$	571
	I&I Cab Corp ##	Term Loan	03/19/13	03/19/16		1		*		3.60	%	$	0			$	568	$	568
	Newton Sodhi ##	Term Loan	05/06/13	05/06/16		1		*		3.38	%	$	0			$	567	$	565
	Rafael A Pena ##	Term Loan	09/18/13	09/18/16		1		*		4.00	%	$	0			$	548	$	550
	Sincere Cab Corp ##	Term Loan	06/21/11	06/21/16		1		*		4.50	%	$	0			$	550	$	549
	Tamimu Aliu ##	Term Loan	05/28/13	05/28/16		1		*		4.25	%	$	0			$	550	$	549
	Olmedo Nocua ##	Term Loan	08/27/14	08/27/17		1		*		3.90	%	$	0	$	550	$	549	$	549
	Fernande Paul Cab Corp ##	Term Loan	01/24/13	01/24/16		1		*		3.50	%	$	0			$	546	$	547
	Luis E Perez ##	Term Loan	03/19/14	03/19/17		1		*		3.75	%	$	0	$	550	$	544	$	546
	Dominique Ismael ##	Term Loan	03/10/14	03/10/17		1		*		3.88	%	$	0	$	551	$	545	$	545
	Dani Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	541	$	541
	Magloire David ##	Term Loan	09/09/13	09/09/15		1		*		3.95	%	$	0			$	540	$	541
	Amjad Abbas ##	Term Loan	12/19/13	12/19/16		1		*		3.40	%	$	0			$	540	$	540
	Ulrick Racine ## &	Term Loan	03/08/13	03/08/16		1		*		3.50	%	$	0			$	537	$	536
	Shabir Khalid ##	Term Loan	05/29/13	05/29/16		1		*		3.25	%	$	0			$	530	$	529
	Albert A Agyemang ##	Term Loan	07/09/13	07/09/16		1		*		3.50	%	$	0			$	530	$	529
	Muhammad Saqib ##	Term Loan	10/04/11	10/04/14		1		*		3.50	%	$	0			$	529	$	527
	Jaswinder Sharma ##	Term Loan	11/02/11	11/02/14		1		*		3.50	%	$	0			$	524	$	522
	Frantz Louhis & Joseph Paul ##	Term Loan	06/08/12	06/08/15		1		*		4.25	%	$	0			$	522	$	521
	Jasvinder Chhoker + Dam Singh	Term Loan	11/10/11	12/05/15		1		*		3.50	%	$	0			$	520	$	519
	Ahmed Elsayed ##	Term Loan	11/22/13	11/22/16		1		*		3.50	%	$	0			$	506	$	507
	Momar Diagne ##	Term Loan	05/12/14	05/12/17		1		*		4.50	%	$	0	$	500	$	496	$	498
	Avner Ben-Levy ##	Term Loan	05/29/12	05/29/15		1		*		4.25	%	$	0			$	496	$	495
	Louis A Alphonse ##	Term Loan	02/21/13	02/21/16		1		*		3.75	%	$	0			$	490	$	490
	M Irshad Chaudhry & Mhd Ramzan ##	Term Loan	03/21/11	03/21/16		1		*		3.50	%	$	0			$	492	$	489
	Harold Torres ##	Term Loan	02/12/13	02/12/16		1		*		3.50	%	$	0			$	485	$	485
	Romain Eustache ##	Term Loan	02/26/13	02/26/16		1		*		4.00	%	$	0			$	482	$	482
	Frands Fequiere ##	Term Loan	01/03/13	01/03/16		1		*		3.75	%	$	0			$	482	$	481
	Joseph Jean ##	Term Loan	03/14/12	03/14/15		1		*		4.50	%	$	0			$	481	$	481
	Mohammad Azhar ##	Term Loan	02/24/14	02/24/17		1		*		3.75	%	$	0	$	488	$	478	$	478
	Chuhar Singh ##	Term Loan	06/06/13	06/06/16		1		*		3.38	%	$	0			$	468	$	471
	Abdullah Zivali ##	Term Loan	03/22/13	03/22/16		1		*		3.50	%	$	0			$	468	$	469
	Gustavo E Cabrejos ##	Term Loan	10/15/12	10/15/15		1		*		3.90	%	$	0			$	469	$	468
	Rahul Amin ##	Term Loan	06/11/14	06/26/17		1		*		3.63	%	$	0	$	465	$	462	$	462
	Shubal C Ghose ##	Term Loan	12/18/12	12/18/15		1		*		3.75	%	$	0			$	460	$	459
	W.B.L.S Taxi Inc	Term Loan	08/09/12	11/01/16		1		*		3.10	%	$	0			$	450	$	451
	Santokh Bangay ##	Term Loan	12/10/12	12/10/15		1		*		3.50	%	$	0			$	445	$	444
	Lelio Bresier & Jeanne Bresier ##	Term Loan	03/06/13	03/06/16		1		*		3.50	%	$	0			$	442	$	443

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
	Ny Berts Cab Corp ##	Term Loan	07/02/13	07/02/16		1		*		3.90	%	$	0			$	439	$	440
	Mokbul Choudhury ##	Term Loan	08/25/14	08/25/17		1		*		4.00	%	$	0	$	436	$	435	$	437
	Jasvir Singh	Term Loan	11/27/12	11/27/22		1		*		4.25	%	$	0			$	424	$	428
	David Mashkabov ##	Term Loan	10/26/11	10/24/14		1		*		4.00	%	$	0			$	429	$	427
	Dady Hamel ##	Term Loan	12/26/13	12/26/16		1		*		3.50	%	$	0			$	427	$	427
	M&J Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	422	$	423
	Maya Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	422	$	423
	Mtr Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	422	$	423
	Neomi & Z Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	422	$	423
	Saba Moshe Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	422	$	423
	Gonel Seraphin & Evelyne Serap ##	Term Loan	12/09/11	12/09/14		1		*		4.25	%	$	0			$	422	$	420
	Jacob Kuruvilla ##	Term Loan	11/11/09	12/05/17		1		*		3.75	%	$	0			$	413	$	411
	Anba Taxi Inc ##	Term Loan	06/21/11	06/21/16		1		*		4.50	%	$	0			$	412	$	411
	Corsi Cab Corp ##	Term Loan	06/21/11	06/21/16		1		*		4.50	%	$	0			$	412	$	411
	Carlot Dalce ##	Term Loan	07/09/13	07/09/16		1		*		3.00	%	$	0			$	411	$	411
	King “D” Taxi Inc ##	Term Loan	01/17/12	01/17/15		1		*		3.00	%	$	0			$	411	$	410
	Crossbow Taxi Inc ##	Term Loan	01/17/12	01/17/15		1		*		3.00	%	$	0			$	411	$	410
	Petia Cab Corporation ##	Term Loan	01/17/12	01/17/15		1		*		3.00	%	$	0			$	411	$	410
	King Verin Taxi Inc ##	Term Loan	01/17/12	01/17/15		1		*		3.00	%	$	0			$	411	$	410
	Cleopatra Cab Corp ##	Term Loan	01/17/12	01/17/15		1		*		3.00	%	$	0			$	411	$	410
	Pierre Jeune ##	Term Loan	12/14/12	12/14/15		1		*		3.50	%	$	0			$	407	$	408
	Eduard Neyman	Term Loan	05/24/13	05/24/20		1		*		4.00	%	$	0			$	404	$	406
	Daca Taxi Inc ##	Term Loan	06/02/11	06/02/17		1		*		3.68	%	$	0			$	406	$	405
	Verity Taxi Inc ##	Term Loan	02/08/13	02/08/18		1		*		3.60	%	$	0			$	400	$	402
	Y Joey Taxi Inc ##	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	400	$	401
	Pierre Cadet ##	Term Loan	03/19/13	03/19/16		1		*		3.30	%	$	0			$	395	$	396
	Yberto Santana ##	Term Loan	02/27/14	02/27/17		1		*		3.75	%	$	0	$	402	$	394	$	394
	Bucur Express Cab Corp ##	Term Loan	06/02/11	06/02/17		1		*		3.68	%	$	0			$	390	$	389
	Essa & Soliman Transit Inc ##	Term Loan	04/19/13	04/19/16		1		*		3.25	%	$	0			$	380	$	380
	Anthony Okyere Duah ##	Term Loan	06/10/11	06/10/17		1		*		3.63	%	$	0			$	379	$	378
	Shah M Rahman ##	Term Loan	11/25/13	11/25/16		1		*		3.75	%	$	0			$	377	$	377
	Serge Bonny ##	Term Loan	03/11/13	03/11/16		1		*		3.25	%	$	0			$	370	$	370
	Surjit Singh ##	Term Loan	10/25/13	10/25/18		1		*		3.80	%	$	0			$	367	$	369
	Tarafdar Abul & Tarafdar Luthf	Term Loan	08/13/10	08/13/16		1		*		7.00	%	$	0			$	362	$	362
	Rehmet Khan ##	Term Loan	03/24/14	03/24/17		1		*		3.50	%	$	0	$	371	$	358	$	360
	Double Cab Corp ##	Term Loan	07/13/12	07/13/15		1		*		3.75	%	$	0			$	359	$	359
	Malkit Singh ##	Term Loan	08/01/12	08/01/15		1		*		4.50	%	$	0			$	343	$	342
	Nour-Ditmars Zamalek Corp ##	Term Loan	04/01/11	04/01/16		1		*		3.75	%	$	0			$	339	$	338
	Georges Desrosiers ##	Term Loan	07/23/14	07/23/17		1		*		4.50	%	$	0	$	334	$	333	$	334
	Elsayed A Hassan ##	Term Loan	11/28/11	11/28/14		1		*		4.25	%	$	0			$	326	$	325
	Bj Cab Corp/Note 1 Of 2	Term Loan	06/12/13	06/12/16		1		*		3.63	%	$	0			$	315	$	318
	Bj Cab Corp/Note 2 Of 2	Term Loan	06/12/13	06/12/16		1		*		3.63	%	$	0			$	315	$	316
	Jean B Guerrier ##	Term Loan	08/08/12	08/08/15		1		*		3.75	%	$	0			$	298	$	298
	Zorro Taxi Inc ##	Term Loan	12/20/13	12/20/16		1		*		3.25	%	$	0			$	296	$	298
	Joubert Toussaint ##	Term Loan	01/10/14	01/10/17		1		*		4.00	%	$	0	$	300	$	295	$	297
	Medora Moreira &Juan Mendoza ##	Term Loan	02/18/11	02/18/16		1		*		3.25	%	$	0			$	297	$	295
	Kornos Taxi Inc ##	Term Loan	09/04/12	09/04/15		1		*		4.00	%	$	0			$	287	$	287
	Paros Taxi LLC	Term Loan	03/28/14	03/28/17		1		*		3.50	%	$	0	$	1,870	$	285	$	287
	Platform Taxi Service/Mbank	Term Loan	05/04/12	05/12/17		1		*		5.57	%	$	0			$	280	$	280
	Mohammmed H Iqbal ##	Term Loan	09/14/12	09/14/15		1		*		3.75	%	$	0			$	273	$	273
	Kesef Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	251	$	251
	Jened Cab Corp ##	Term Loan	03/13/12	01/13/17		1		*		3.50	%	$	0			$	237	$	237

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
	Daniel Victor ##	Term Loan	05/06/13	05/06/16		1		*		3.50	%	$	0			$	225	$	225
	Ede Service Corp	Term Loan	07/20/07	07/20/17		1		*		2.81	%	$	0			$	210	$	210
	Lissade Aurelus ##	Term Loan	05/01/13	05/01/16		1		*		3.75	%	$	0			$	204	$	204
	Frank Nobile ##	Term Loan	11/26/12	11/26/17		1		*		3.75	%	$	0			$	190	$	191
	Mohammad Ashraf Ali ##	Term Loan	01/17/12	01/09/15		1		*		3.25	%	$	0			$	191	$	190
	Jackie L Chaiken & Michael Cha ##	Term Loan	03/26/13	03/26/16		1		*		3.50	%	$	0			$	185	$	186
	Wan Sang Lau & Mary Quan Lau ##	Term Loan	03/20/13	03/20/16		1		*		3.25	%	$	0			$	183	$	183
	Roman Fermin ##	Term Loan	08/09/13	08/09/16		1		*		3.50	%	$	0			$	175	$	176
	Abdul H Abid ##	Term Loan	04/24/14	04/24/19		1		*		4.00	%	$	0	$	185	$	171	$	173
	Ede Service Corp/Mfun	Term Loan	07/24/07	07/20/17		1		*		2.81	%	$	0			$	151	$	151
	Ny Diploma Taxi Co	Term Loan	07/20/07	07/20/17		1		*		2.81	%	$	0			$	140	$	140
	Bella Hacking Corp	Term Loan	06/25/04	06/25/16		1		*		6.00	%	$	0			$	137	$	136
	Joseph Bologna ##	Term Loan	10/06/10	10/01/16		1		*		3.25	%	$	0			$	136	$	135
	Nicolae Blidariu	Term Loan	02/29/08	02/28/23		1		*		6.50	%	$	0			$	134	$	135
	Mode Service Corp	Term Loan	06/02/11	06/01/21		1		*		6.00	%	$	0			$	124	$	123
	Diin Taxi LLC/Mbnk	Term Loan	05/07/14	05/07/17		1		*		6.50	%	$	0	$	129	$	129	$	122
	Sunu Miah And M Jahangi/Mbnk	Term Loan	05/12/14	05/12/17		1		*		6.25	%	$	0	$	111	$	110	$	117
	Esg Hacking Corp/Mbnk	Term Loan	03/12/14	03/12/17		1		*		6.25	%	$	0	$	108	$	107	$	107
	Jeffrey Hacking Corp/Mbnk	Term Loan	03/12/14	03/12/17		1		*		6.25	%	$	0	$	108	$	107	$	107
	Mama Of 5 Hacking Corp/Mbnk	Term Loan	03/12/14	03/12/17		1		*		6.25	%	$	0	$	108	$	107	$	107
	Tlg Hacking Corp/Mbnk	Term Loan	03/12/14	03/12/17		1		*		6.25	%	$	0	$	108	$	107	$	107
	Papa Of 5 Hacking Corp/Mbnk	Term Loan	03/12/14	03/12/17		1		*		6.25	%	$	0	$	108	$	107	$	107
	Param Preet Cab Corp/Mbnk	Term Loan	05/30/14	05/30/17		1		*		6.50	%	$	0	$	90	$	97	$	104
	Ny Diploma Taxi Corp/Mfun	Term Loan	07/24/07	07/20/17		1		*		2.81	%	$	0			$	101	$	101
	Gagandeep Multani LLC/Mbnk	Term Loan	05/22/14	05/22/17		1		*		6.50	%	$	0	$	91	$	95	$	99
	Anastasios Tsiklidis	Term Loan	04/15/11	01/15/18		1		*		3.60	%	$	0			$	95	$	96
	D&P Baidwan LLC/Mbnk	Term Loan	05/20/14	05/20/17		1		*		6.50	%	$	0	$	91	$	95	$	95
	Muktar Hussain & K Hussain/Mbn	Term Loan	05/13/14	05/13/17		1		*		8.44	%	$	0	$	86	$	85	$	92
	United Four Stars LLC/Mbnk	Term Loan	06/04/14	06/04/17		1		*		8.57	%	$	0	$	84	$	83	$	90
	Hanu Manu Taxi Inc/Mbnk	Term Loan	05/19/14	05/19/17		1		*		6.00	%	$	0	$	90	$	89	$	89
	Mk Multani LLC/Mbnk	Term Loan	05/22/14	05/22/17		1		*		6.50	%	$	0	$	86	$	86	$	89
	Norberto Cardona ##	Term Loan	03/30/12	03/30/17		1		*		4.00	%	$	0			$	87	$	88
	Pj Moe LLC/Mbnk	Term Loan	07/08/14	07/08/17		1		*		8.44	%	$	0	$	80	$	80	$	87
	Ramdas 4 Taxi LLC/Mbnk	Term Loan	05/27/14	05/27/17		1		*		6.50	%	$	0	$	84	$	84	$	84
	Gni Taxi LLC	Term Loan	06/09/14	05/28/17		1		*		6.50	%	$	0	$	84	$	83	$	83
	Kero Taxi Corp/Mbnk	Term Loan	05/30/14	05/30/17		1		*		8.19	%	$	0	$	81	$	80	$	83
	Prabhneet Cab Corp/Mbnk	Term Loan	05/12/14	05/12/17		1		*		6.00	%	$	0	$	83	$	82	$	82
	Arjun & Simran LLC/Mbnk	Term Loan	05/21/14	05/21/17		1		*		6.50	%	$	0	$	83	$	82	$	82
	Hargobind Taxi LLC/Mbnk	Term Loan	05/23/14	05/23/17		1		*		6.00	%	$	0	$	81	$	81	$	81
	Soho Cab Corp	Term Loan	02/11/14	02/11/17		1		*		3.38	%	$	0	$	1,570	$	79	$	81
	Wilfrid Barreau	Term Loan	12/29/09	12/29/16		1		*		5.75	%	$	0			$	79	$	79
	Boris Ushman ##	Term Loan	05/21/03	04/13/15		1		*		5.75	%	$	0			$	78	$	78
	William G Ward ##	Term Loan	04/29/13	04/29/16		1		*		3.25	%	$	0			$	75	$	75
	Bu Taxi LLC/Mbank	Term Loan	12/29/10	11/01/16		1		*		3.10	%	$	0			$	75	$	75
	Calcium One Service Inc	Term Loan	02/23/07	02/23/17		1		*		1.73	%	$	0			$	71	$	71
	Ede Service Corp	Term Loan	07/20/07	07/20/17		1		*		2.81	%	$	0			$	69	$	69
	Jean Pierre Trans Inc	Term Loan	02/26/14	02/26/18		1		*		3.75	%	$	0	$	1,320	$	66	$	68
	Tyme Cab Corp	Term Loan	06/26/14	06/26/17		1		*		3.60	%	$	0	$	1,300	$	65	$	67
	Davinder Singh/Mbnk	Term Loan	04/23/14	04/23/17		1		*		8.58	%	$	0	$	65	$	64	$	64
	Chahal & Nahal LLC	Term Loan	04/21/14	04/21/17		1		*		6.50	%	$	0	$	62	$	61	$	61
	Ruckman Hacking Corp	Term Loan	08/30/13	02/22/16		1		*		2.80	%	$	0			$	60	$	61
	Sonnet Service Co Inc	Term Loan	08/30/13	02/22/16		1		*		2.80	%	$	0			$	60	$	61

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	Y Mommy Taxi Inc/Mbank	Term Loan	12/23/10	11/01/16		1		*		3.10	%	$	0			$	60	$	60
	Birk Cab Corp	Term Loan	05/08/14	05/08/19		1		*		6.50	%	$	0	$	60	$	57	$	59
	Granny Hacking Corp	Term Loan	03/07/13	03/07/18		1		*		3.50	%	$	0			$	54	$	58
	Balwinder Singh/Mbnk	Term Loan	04/09/14	04/09/17		1		*		8.71	%	$	0	$	51	$	51	$	58
	Ar Rahman Express Cab Corp/Mbn	Term Loan	06/17/14	06/17/17		1		*		8.71	%	$	0	$	50	$	50	$	58
	Ptah Cab Corp	Term Loan	03/12/14	03/12/17		1		*		3.00	%	$	0	$	1,100	$	55	$	57
	Appoint Cab Corp/Mbank	Term Loan	12/06/10	06/06/17		1		*		6.62	%	$	0			$	56	$	56
	Cora Hacking Corp	Term Loan	03/07/13	03/07/18		1		*		3.50	%	$	0			$	54	$	56
	Goodspeed Transit Inc	Term Loan	08/14/13	08/14/16		1		*		2.80	%	$	0			$	54	$	56
	Rrc Express Corp/Mbnk	Term Loan	05/14/14	05/14/17		1		*		8.71	%	$	0	$	49	$	49	$	56
	Y Daddy Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	55	$	55
	Salih Boncukcu/Mbnk	Term Loan	06/18/14	06/18/17		1		*		8.96	%	$	0	$	50	$	50	$	54
	Network Agami Cab Corp	Term Loan	02/27/13	06/02/17		1		*		2.88	%	$	0			$	49	$	50
	Calcium One Service Inc	Term Loan	02/23/07	02/23/17		1		*		1.73	%	$	0			$	49	$	49
	Sushil Maggoo	Term Loan	06/27/13	06/27/17		1		*		3.75	%	$	0			$	47	$	49
	Orbit Agami Cab LLC	Term Loan	11/05/10	10/01/16		1		*		2.88	%	$	0			$	48	$	48
	Nirvair Trans LLC/Mbnk	Term Loan	02/04/14	02/04/17		1		*		8.50	%	$	0	$	49	$	48	$	48
	Jagjit Singh/Mbnk	Term Loan	02/14/14	02/14/17		1		*		8.58	%	$	0	$	49	$	48	$	48
	Ny Diploma Taxi Co	Term Loan	07/20/07	07/20/17		1		*		2.81	%	$	0			$	46	$	46
	Pakt Medallions LLC/Mbnk	Term Loan	08/26/14	08/26/17		1		*		8.46	%	$	0	$	46	$	45	$	45
	Justin Hacking Corp	Term Loan	08/14/13	08/14/16		1		*		2.80	%	$	0			$	42	$	44
	Hshmul Taxi LLC/Mbnk	Term Loan	03/17/14	03/17/17		1		*		6.50	%	$	0	$	40	$	39	$	39
	Nosea Taxi LLC	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	38	$	39
	Bursa Cab Corp/Note 1	Term Loan	03/23/01	09/10/23		1		*		6.00	%	$	0			$	37	$	37
	Zahav Taxi LLC/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	37	$	37
	Balwinder Singh	Term Loan	02/19/14	02/07/19		1		*		5.25	%	$	0	$	40	$	34	$	36
	Jose F Pimentel ##	Term Loan	05/14/14	05/14/19		1		*		4.25	%	$	0	$	35	$	33	$	35
	Yme Transit Inc	Term Loan	08/14/13	08/14/16		1		*		2.80	%	$	0			$	31	$	33
	Bursa Cab Corp/Note 2	Term Loan	03/23/01	09/10/23		1		*		6.00	%	$	0			$	31	$	31
	Y Mike Taxi Inc	Term Loan	01/06/11	11/01/16		1		*		3.10	%	$	0			$	30	$	31
	M.M.Y Taxi Inc	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	30	$	30
	Y Mati Taxi Inc/Mbnk	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	30	$	30
	N&A Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	30	$	30
	Y Meir Taxi Inc/Mbnk	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	30	$	30
	Y Michal Taxi Inc/Mbnk	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	30	$	30
	S&M Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	30	$	30
	Fido Cab Corp	Term Loan	08/14/13	08/14/16		1		*		2.80	%	$	0			$	26	$	28
	Eddy Joseph ##	Term Loan	12/20/00	12/02/15		1		*		4.00	%	$	0			$	27	$	27
	Barth Taxi LLC/Mbank	Term Loan	11/24/10	11/20/15		1		*		6.63	%	$	0			$	25	$	25
	Brandon Taxi LLC/Mbank	Term Loan	11/24/10	11/20/15		1		*		6.63	%	$	0			$	25	$	25
	Donald Singh	Term Loan	07/30/14	07/30/17		1		*		5.00	%	$	0	$	22	$	21	$	22
	Ronen Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	21	$	21
	Mry Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	21	$	21
	Opera Taxi Inc/Mbank	Term Loan	07/16/12	11/01/16		1		*		3.10	%	$	0			$	21	$	21
	Mohammed Abdu & H Hedru/Mbank	Term Loan	08/11/06	02/05/16		1		*		5.71	%	$	0			$	20	$	20
	Yegal Express Cab Co/Mbank	Term Loan	11/10/10	08/28/20		1		*		6.38	%	$	0			$	20	$	20
	Vosiem Hacking Corp	Term Loan	08/14/13	08/14/16		1		*		2.80	%	$	0			$	17	$	19
	Harold Torres ##	Term Loan	10/01/13	11/01/17		1		*		4.00	%	$	0			$	16	$	18
	Devinder P Singh & Guneet/Mbnk	Term Loan	02/19/14	02/19/17		1		*		6.50	%	$	0	$	16	$	16	$	16
	Surlak Taxi LLC/Mbnk	Term Loan	04/25/14	04/25/17		1		*		8.66	%	$	0	$	16	$	16	$	16
	Jean M Venord/Mbank	Term Loan	02/11/10	04/10/15		1		*		6.38	%	$	0			$	12	$	12
	Y.A.M. Associates Corp	Term Loan	04/30/13	10/24/15		1		*		4.25	%	$	0			$	6	$	7

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	Joubert Toussaint ##	Term Loan	08/21/14	02/21/17		1		*			4.25	%	$	0	$	5	$	5	$	7
	Nestor R Trivino	Term Loan	02/22/12	02/22/15		1		*			10.00	%	$	0			$	6	$	6
	Guy Fouyolle ##	Term Loan	08/18/11	08/18/15		1		*			4.75	%	$	0			$	5	$	5
	Sonia M Trivino	Term Loan	02/22/12	02/22/15		1		*			10.00	%	$	0			$	5	$	5
Chicago						107		14	%		4.97	%	$	0	$	11,603	$	39,538	$	39,612
	Sweetgrass Peach &Chadwick Cap ##	Term Loan	08/28/12	08/28/15		1		1	%		5.50	%	$	0			$	1,674	$	1,668
	Regal Cab Company Et Al ##	Term Loan	08/29/13	08/29/16		1		*			5.00	%	$	0			$	1,373	$	1,369
	Chicago Medallion Nine LLC ##	Term Loan	05/02/12	05/02/17		1		*			5.75	%	$	0			$	1,339	$	1,335
	Blue Eyes Cab Corp ##	Term Loan	07/19/12	07/19/15		1		*			4.88	%	$	0			$	1,231	$	1,227
	Lucky Seven Chicago One Inc ##	Term Loan	07/19/12	07/19/15		1		*			4.88	%	$	0			$	1,231	$	1,227
	Michael Two Cab Corp ##	Term Loan	07/12/12	04/25/16		1		*			4.50	%	$	0			$	1,020	$	1,017
	Johns Cabs Corp ##	Term Loan	04/12/12	04/12/15		1		*			5.00	%	$	0			$	997	$	994
	Harriet C Inc ##	Term Loan	10/19/12	10/19/16		1		*			5.25	%	$	0			$	904	$	902
	Chicago Medallion Two LLC ##	Term Loan	12/02/11	12/02/16		1		*			5.75	%	$	0			$	854	$	852
	Chicago Medallion Three LLC ##	Term Loan	12/02/11	12/02/16		1		*			5.75	%	$	0			$	854	$	852
	Chicago Medallion Four LLC ##	Term Loan	12/02/11	12/02/16		1		*			5.75	%	$	0			$	854	$	852
	Chicago Medallion One LLC ##	Term Loan	12/02/11	12/02/16		1		*			5.75	%	$	0			$	854	$	852
	Lmb Taxi V Inc ##	Term Loan	07/12/12	04/25/16		1		*			4.50	%	$	0			$	850	$	847
	Lmb Taxi Iv Inc ##	Term Loan	07/12/12	04/25/16		1		*			4.50	%	$	0			$	850	$	847
	Tribeca Two Cab Corp ##	Term Loan	05/09/13	05/09/16		1		*			3.75	%	$	0			$	813	$	814
	Santorini Six Cab Corp ##	Term Loan	05/09/13	05/09/16		1		*			3.75	%	$	0			$	813	$	814
	Santorini Five Cab Corp	Term Loan	05/09/13	05/09/16		1		*			3.75	%	$	0			$	813	$	814
	Santorini Four Cab Corp	Term Loan	05/09/13	05/09/16		1		*			3.75	%	$	0			$	813	$	814
	Rahwa & Bros Cab Co, Et Al ##	Term Loan	04/11/14	04/11/19		1		*			5.00	%	$	0	$	738	$	728	$	727
	Carol Of Illinois Enterprises	Term Loan	09/19/14	09/19/17		1		*			5.00	%	$	0	$	714	$	714	$	710
	Chicago Medallion Seven LLC ##	Term Loan	05/02/12	05/02/17		1		*			5.75	%	$	0			$	669	$	668
	Met Cab Co ##	Term Loan	08/29/13	08/29/16		1		*			5.00	%	$	0			$	588	$	590
	Ray Cab Company ##	Term Loan	08/29/13	08/29/16		1		*			5.00	%	$	0			$	588	$	590
	N And M Valdof Hacking Corp ##	Term Loan	05/01/13	05/01/16		1		*			4.50	%	$	0			$	551	$	552
	Coffee Taxi LLC ##	Term Loan	10/10/13	10/10/16		1		*			4.25	%	$	0			$	517	$	518
	Mikhalia Cabs Nine Inc ##	Term Loan	07/12/12	04/25/16		1		*			4.50	%	$	0			$	510	$	509
	Kayla Hacking Corp ##	Term Loan	07/12/12	04/25/16		1		*			4.50	%	$	0			$	510	$	509
	Taxi For Less Inc	Term Loan	09/19/14	09/19/17		1		*			5.25	%	$	0	$	500	$	500	$	502
	Mike Taxi Corp ##	Term Loan	05/01/13	05/01/16		1		*			4.50	%	$	0			$	498	$	499
	Natasha Transportation Inc ##	Term Loan	05/01/13	05/01/16		1		*			4.50	%	$	0			$	498	$	499
	Natalia Taxi Corp ##	Term Loan	05/01/13	05/01/16		1		*			4.50	%	$	0			$	497	$	498
	Cozy Cab Co ##	Term Loan	08/29/13	08/29/16		1		*			5.00	%	$	0			$	490	$	492
	Dell Cab Corp ##	Term Loan	08/29/13	08/29/16		1		*			5.00	%	$	0			$	490	$	492
	Moo Moo Cab Co ##	Term Loan	08/14/13	08/14/16		1		*			4.00	%	$	0			$	468	$	469
	Musanour Cab Inc ##	Term Loan	09/27/13	09/27/18		1		*			5.25	%	$	0			$	464	$	466
	Blue Valentine Cab Corp	Term Loan	04/10/13	04/10/16		1		*			4.00	%	$	0			$	459	$	460
	Tumblin Dice Taxi Inc	Term Loan	04/10/13	04/10/16		1		*			4.00	%	$	0			$	459	$	460
	Little Wing Cab Corp	Term Loan	04/10/13	04/10/16		1		*			4.00	%	$	0			$	308	$	309
	American Buffalo Cab Corp	Term Loan	04/10/13	04/10/16		1		*			4.00	%	$	0			$	306	$	307
	Dome Cab Corp ##	Term Loan	08/29/13	08/29/16		1		*			5.00	%	$	0			$	294	$	296
	Valasia Cab Co ##	Term Loan	01/18/12	01/18/15		1		*			5.00	%	$	0			$	264	$	263
	Chicago Seven Inc/Mbnk	Term Loan	07/19/12	07/19/15		1		*			7.25	%	$	0			$	250	$	250
	Patriot Trans Inc	Term Loan	09/19/14	06/19/17		1		*			4.50	%	$	0	$	244	$	244	$	246
	Karbala Express Inc ##	Term Loan	02/26/13	02/26/18		1		*			6.00	%	$	0			$	243	$	243
	Les & Thera LLC	Term Loan	05/08/13	05/08/17		1		*			5.25	%	$	0			$	239	$	240
	Zeyrefda Inc ##	Term Loan	05/17/13	05/17/18		1		*			5.50	%	$	0			$	236	$	238

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	Nakfa Corp ##	Term Loan	06/17/13	06/17/18		1		*		4.88	%	$	0			$	236	$	237
	Interwoodex Inc ##	Term Loan	11/07/13	11/07/18		1		*		5.00	%	$	0			$	235	$	237
	Tekezze Inc	Term Loan	12/11/13	12/11/18		1		*		5.00	%	$	0			$	235	$	237
	Adom Enterprise, Inc ##	Term Loan	09/27/13	09/27/18		1		*		5.25	%	$	0			$	234	$	236
	Helen Habte Corp ##	Term Loan	10/01/13	10/01/18		1		*		5.25	%	$	0			$	234	$	236
	Tad Taxi Co ##	Term Loan	11/13/13	11/13/18		1		*		5.00	%	$	0			$	234	$	236
	Shere Corp ##	Term Loan	07/26/13	07/26/18		1		*		5.25	%	$	0			$	233	$	235
	Tahoora Transportation Inc. ##	Term Loan	07/26/13	07/26/18		1		*		5.25	%	$	0			$	233	$	235
	Asmara Inc ##	Term Loan	04/11/13	04/11/18		1		*		5.50	%	$	0			$	232	$	234
	Aniba Management & Services In ##	Term Loan	09/27/13	09/27/18		1		*		5.25	%	$	0			$	232	$	234
	Alex Z Cab Corp	Term Loan	04/22/13	04/22/18		1		*		5.50	%	$	0			$	231	$	233
	Nike Yomi Inc ##	Term Loan	08/06/13	08/06/18		1		*		5.25	%	$	0			$	228	$	230
	Three Kids Corp	Term Loan	04/15/13	04/15/18		1		*		5.50	%	$	0			$	228	$	230
	Annabelle Cab Corporation ##	Term Loan	02/14/14	02/14/19		1		*		5.00	%	$	0	$	230	$	226	$	227
	Nour Enterprise Inc ##	Term Loan	09/16/13	09/16/18		1		*		5.75	%	$	0			$	223	$	225
	Yenemekoya Inc ##	Term Loan	06/28/13	06/28/18		1		*		5.25	%	$	0			$	217	$	219
	C Dortch Inc ##	Term Loan	12/04/13	12/04/16		1		*		4.25	%	$	0			$	215	$	216
	Showcase Sports Management Cor ##	Term Loan	01/22/10	01/11/16		1		*		5.00	%	$	0			$	216	$	215
	Alkarim Chicago Inc ##	Term Loan	11/27/13	11/27/18		1		*		5.50	%	$	0			$	210	$	212
	Rahel Express Inc ##	Term Loan	12/27/13	12/27/18		1		*		5.25	%	$	0			$	201	$	203
	Grapevine Taxi LLC ##	Term Loan	10/10/13	10/10/16		1		*		4.25	%	$	0			$	198	$	199
	Jiffy Cab Co ##	Term Loan	08/29/13	08/29/16		1		*		5.00	%	$	0			$	196	$	198
	Pireas Taxi Corp ##	Term Loan	06/07/13	06/07/16		1		*		4.50	%	$	0			$	195	$	196
	Life Cab Corp ##	Term Loan	09/18/13	09/18/18		1		*		5.25	%	$	0			$	188	$	190
	Kalib 2010 Inc ##	Term Loan	07/16/13	07/16/17		1		*		5.50	%	$	0			$	175	$	177
	Naneffe Inc ##	Term Loan	03/15/13	03/15/18		1		*		5.50	%	$	0			$	171	$	172
	Alem B Cab Inc ##	Term Loan	01/22/13	01/22/18		1		*		5.50	%	$	0			$	169	$	170
	Adi Express Inc ##	Term Loan	09/21/12	09/21/17		1		*		5.75	%	$	0			$	161	$	162
	Wubshet Inc ##	Term Loan	09/25/13	09/25/18		1		*		5.25	%	$	0			$	154	$	156
	Semhar Corp ##	Term Loan	01/31/12	01/31/17		1		*		5.50	%	$	0			$	153	$	153
	Significant Trans Inc ##	Term Loan	04/06/12	04/06/17		1		*		6.50	%	$	0			$	152	$	152
	Jpg Cab Corp	Term Loan	04/23/12	04/23/17		1		*		6.50	%	$	0			$	140	$	141
	Sabina Cab Inc	Term Loan	04/19/13	04/19/18		1		*		5.50	%	$	0			$	134	$	136
	Antar Trans Inc	Term Loan	01/17/14	01/17/19		1		*		5.00	%	$	0	$	133	$	131	$	133
	Ultra Investment Corp ##	Term Loan	03/22/11	03/22/16		1		*		6.50	%	$	0			$	124	$	124
	Asmara Cab Company ##	Term Loan	12/01/11	12/01/16		1		*		6.00	%	$	0			$	124	$	124
	Delina Cab Inc	Term Loan	01/22/13	01/22/18		1		*		5.50	%	$	0			$	116	$	117
	Bedford Cab Two Corp	Term Loan	07/30/10	03/14/16		1		*		4.50	%	$	0			$	115	$	115
	Paik Cab Co	Term Loan	05/30/14	05/30/19		1		*		5.00	%	$	0	$	110	$	109	$	111
	Addis Flower Taxi Cab Service	Term Loan	02/27/14	02/27/19		1		*		5.50	%	$	0	$	111	$	109	$	111
	Imc Cab Corp	Term Loan	08/27/10	03/14/16		1		*		4.50	%	$	0			$	110	$	110
	Bashiru Habib	Term Loan	07/09/14	07/09/18		1		*		6.25	%	$	0	$	105	$	105	$	107
	Moses J Frank	Term Loan	04/26/13	04/26/18		1		*		7.00	%	$	0			$	105	$	106
	Yemi Taxi Corp ##	Term Loan	08/01/13	08/01/18		1		*		5.25	%	$	0			$	92	$	94
	Tyrone Henderson	Term Loan	03/12/14	03/12/19		1		*		6.50	%	$	0	$	92	$	91	$	93
	Tigray Cab Inc	Term Loan	03/28/13	03/28/18		1		*		5.50	%	$	0			$	89	$	91
	Measho Cab Corp	Term Loan	06/16/11	06/16/16		1		*		5.50	%	$	0			$	87	$	88
	Sny Cab Inc ##	Term Loan	12/14/11	12/14/16		1		*		6.00	%	$	0			$	64	$	65
	Oia Cab Corp	Term Loan	08/01/14	08/01/17		1		*		4.15	%	$	0	$	1,175	$	59	$	61
	Hudson Cab Corp	Term Loan	05/22/14	05/22/17		1		*		4.13	%	$	0	$	1,150	$	58	$	60
	Tribeca Three Cab Corp	Term Loan	05/22/14	05/22/17		1		*		4.13	%	$	0	$	920	$	47	$	49
	Madison Cab Corp	Term Loan	05/22/14	05/22/17		1		*		4.13	%	$	0	$	928	$	47	$	49

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	Laight Taxi Corp	Term Loan	05/22/14	05/22/17		1		*			4.13	%	$	0	$	928	$	47	$	49
	Santorini Two Cab Corp	Term Loan	08/01/14	08/01/17		1		*			4.15	%	$	0	$	940	$	47	$	49
	Stny Taxi Corp	Term Loan	08/01/14	08/01/17		1		*			4.15	%	$	0	$	940	$	47	$	49
	Greenwich Cab Corp	Term Loan	05/22/14	05/22/17		1		*			4.13	%	$	0	$	690	$	35	$	37
	Bashiru Habib/B Note	Term Loan	07/09/14	07/09/18		1		*			6.25	%	$	0	$	35	$	34	$	36
	Ali Taxi Corp ##	Term Loan	08/13/13	08/13/18		1		*			5.25	%	$	0			$	32	$	34
	Francis King Boat Inc	Term Loan	04/17/13	04/17/18		1		*			5.50	%	$	0			$	30	$	32
	St Petersburg Taxi LLC	Term Loan	05/22/14	05/22/17		1		*			4.13	%	$	0	$	460	$	23	$	25
	Any Cab Two Corp	Term Loan	05/22/14	05/22/17		1		*			4.13	%	$	0	$	460	$	23	$	25
Newark						111		9	%		5.36	%	$	0	$	7,146	$	24,727	$	24,837
	Viergella Inc ##	Term Loan	02/20/14	02/20/18		1		*			4.75	%	$	0	$	1,400	$	1,383	$	1,380
	Rachel LLC	Term Loan	04/25/13	04/25/18		1		*			5.25	%	$	0			$	722	$	722
	Cherubin Vincent &	Term Loan	01/23/14	01/23/18		1		*			5.25	%	$	0	$	650	$	645	$	647
	K And N Taxi LLC	Term Loan	09/26/13	09/26/16		1		*			4.80	%	$	0			$	636	$	638
	A.M.E. Transit Limited Liabili ##	Term Loan	01/10/13	01/10/18		1		*			5.25	%	$	0			$	580	$	579
	Briana Taxi LLC	Term Loan	01/23/14	01/23/18		1		*			5.00	%	$	0	$	360	$	355	$	357
	Saintvillien & Larochelle LLC	Term Loan	11/14/13	11/14/18		1		*			4.90	%	$	0			$	341	$	343
	Airport Travel LLC	Term Loan	01/23/14	01/23/18		1		*			4.75	%	$	0	$	330	$	325	$	327
	Two Daughters Taxi LLC ##	Term Loan	06/12/14	06/12/18		1		*			5.25	%	$	0	$	325	$	323	$	324
	Mr. Milicent & Sons, LLC ##	Term Loan	04/24/14	04/24/17		1		*			4.80	%	$	0	$	318	$	317	$	319
	P.C. Taxi Corp	Term Loan	06/13/13	06/13/17		1		*			6.00	%	$	0			$	307	$	309
	Clair 282 LLC ##	Term Loan	09/12/13	09/12/17		1		*			5.00	%	$	0			$	301	$	303
	1 Hope LLC	Term Loan	09/26/13	09/26/17		1		*			5.50	%	$	0			$	293	$	295
	Carvin Taxi Inc ##	Term Loan	12/12/13	12/12/16		1		*			4.75	%	$	0			$	293	$	294
	Cmgv #2 Taxi Inc ##	Term Loan	12/12/13	12/12/16		1		*			4.75	%	$	0			$	293	$	294
	Dern #2 Taxi Inc ##	Term Loan	12/12/13	12/12/16		1		*			4.75	%	$	0			$	293	$	294
	Romise Taxi LLC	Term Loan	04/25/13	04/25/18		1		*			5.25	%	$	0			$	291	$	293
	Owned By Mr Vincent LLC &	Term Loan	01/10/13	01/10/17		1		*			5.50	%	$	0			$	291	$	292
	Bidon Taxi Inc ##	Term Loan	11/14/13	11/14/17		1		*			5.25	%	$	0			$	290	$	292
	Lagrande Taxi Corp ##	Term Loan	02/14/13	02/14/17		1		*			5.50	%	$	0			$	291	$	291
	B Gene And Fil LLC	Term Loan	01/10/13	01/10/17		1		*			5.25	%	$	0			$	290	$	291
	Center Taxi LLC ##	Term Loan	08/15/13	08/15/17		1		*			5.50	%	$	0			$	287	$	289
	Angel Taxi LLC	Term Loan	08/14/14	08/14/18		1		*			5.25	%	$	0	$	284	$	284	$	283
	Dorvilma LLC ##	Term Loan	02/14/13	02/14/16		1		*			5.25	%	$	0			$	282	$	282
	Hg & Zg Corporation	Term Loan	10/25/12	10/25/17		1		*			5.25	%	$	0			$	278	$	279
	Magdala Corp ##	Term Loan	08/16/13	08/16/17		1		*			5.25	%	$	0			$	273	$	273
	One At A Time Time Transport I ##	Term Loan	09/20/12	09/20/16		1		*			5.25	%	$	0			$	272	$	272
	Jovin Taxi Inc ##	Term Loan	01/10/13	01/10/17		1		*			5.00	%	$	0			$	271	$	272
	Maitre Joa LLC	Term Loan	09/12/13	09/12/17		1		*			5.25	%	$	0			$	267	$	269
	Simone Francois ##	Term Loan	04/25/13	04/25/17		1		*			5.50	%	$	0			$	263	$	265
	Hg & Zg Corporation	Term Loan	10/25/12	10/25/17		1		*			5.25	%	$	0			$	259	$	260
	Kesh & Kelo LLC ##	Term Loan	04/25/13	04/25/17		1		*			5.00	%	$	0			$	255	$	257
	Three Sons 2 Taxi Inc ##	Term Loan	05/09/13	05/09/17		1		*			5.50	%	$	0			$	252	$	254
	Peter Doe	Term Loan	08/14/14	08/14/18		1		*			5.25	%	$	0	$	250	$	250	$	252
	D,D Trans Inc	Term Loan	09/18/14	09/18/18		1		*			4.75	%	$	0	$	250	$	250	$	250
	St Abraam Corp	Term Loan	04/25/13	04/22/18		1		*			5.00	%	$	0			$	249	$	249
	Nahla Taxi Inc ##	Term Loan	04/24/14	04/24/18		1		*			5.50	%	$	0	$	250	$	247	$	249
	Rowfida Incorporated ##	Term Loan	12/12/13	12/12/17		1		*			4.75	%	$	0			$	244	$	246
	Timax 426 Inc	Term Loan	11/14/13	11/14/17		1		*			5.25	%	$	0			$	244	$	246
	Laboule LLC	Term Loan	09/18/14	09/18/18		1		*			5.25	%	$	0	$	244	$	244	$	243
	Les & Thera Transportation LLC	Term Loan	07/12/13	07/12/17		1		*			5.25	%	$	0			$	241	$	243

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	Sonson Taxi Inc ## &	Term Loan	10/25/12	10/25/17		1		*		5.50	%	$	0			$	239	$	240
	Luckner Etienne ##	Term Loan	10/25/12	10/25/16		1		*		5.50	%	$	0			$	236	$	236
	T-Bozo Trans LLC	Term Loan	04/25/13	04/25/17		1		*		5.25	%	$	0			$	233	$	235
	Grec Taxi Corp	Term Loan	12/08/11	12/08/15		1		*		6.00	%	$	0			$	231	$	232
	Anasta.S. Taxi LLC	Term Loan	04/25/13	04/25/17		1		*		5.25	%	$	0			$	227	$	229
	Wilner Novaly &	Term Loan	08/12/10	07/22/14		1		*		7.50	%	$	0			$	227	$	227
	M.K. Taxi Inc	Term Loan	01/23/14	01/23/18		1		*		4.50	%	$	0	$	233	$	224	$	226
	Semsema Trans Corporation	Term Loan	09/18/14	09/18/18		1		*		5.00	%	$	0	$	225	$	225	$	225
	E H 88 Taxi Corp ##	Term Loan	06/12/14	06/12/17		1		*		4.75	%	$	0	$	225	$	223	$	223
	Mpaul 596 LLC	Term Loan	04/25/13	04/25/17		1		*		5.25	%	$	0			$	221	$	223
	Ekny Fils-Aime ##	Term Loan	10/17/11	10/17/16		1		*		6.25	%	$	0			$	221	$	222
	Zoune Taxi #2 Inc ##	Term Loan	01/10/13	01/10/17		1		*		5.75	%	$	0			$	218	$	219
	Jacob Joseph	Term Loan	04/25/13	04/25/17		1		*		5.00	%	$	0			$	216	$	218
	S.J.L.T Joujean Inc	Term Loan	03/15/12	03/15/16		1		*		6.00	%	$	0			$	216	$	217
	Dmd Taxi LLC	Term Loan	09/26/13	09/26/17		1		*		4.75	%	$	0			$	213	$	215
	Boss Carmel Taxi Inc ##	Term Loan	11/14/13	11/14/17		1		*		5.50	%	$	0			$	209	$	211
	Erick Fleuridor	Term Loan	07/19/12	07/19/15		1		*		5.50	%	$	0			$	209	$	210
	Chell 11 Corp	Term Loan	07/10/14	07/10/18		1		*		5.25	%	$	0	$	204	$	204	$	206
	Joseph Duverneau ##	Term Loan	02/17/11	02/17/15		1		*		7.00	%	$	0			$	204	$	203
	Joseph And Jamar Inc ##	Term Loan	10/07/10	10/07/14		1		*		7.50	%	$	0			$	201	$	200
	Chavensky Cab Inc	Term Loan	12/12/13	12/12/17		1		*		5.00	%	$	0			$	196	$	198
	Saintilia Charles	Term Loan	09/18/14	09/18/18		1		*		5.25	%	$	0	$	196	$	196	$	196
	Stany Inc	Term Loan	05/12/11	05/12/15		1		*		6.75	%	$	0			$	195	$	195
	Clermise LLC	Term Loan	09/18/14	09/18/18		1		*		5.25	%	$	0	$	193	$	193	$	193
	Daniele Taxi LLC ##	Term Loan	05/15/14	05/15/18		1		*		5.75	%	$	0	$	194	$	191	$	193
	Thomas Lahens	Term Loan	07/11/13	07/11/17		1		*		4.90	%	$	0			$	185	$	186
	Herve Dameus & James Dameus ##	Term Loan	01/25/11	01/20/15		1		*		7.50	%	$	0			$	182	$	182
	S Gladys Taxi LLC ##	Term Loan	06/12/14	06/12/18		1		*		6.00	%	$	0	$	181	$	180	$	181
	Mfc Taxi Corp ##	Term Loan	09/20/11	09/19/16		1		*		6.50	%	$	0			$	180	$	180
	Erick Fleuridor	Term Loan	10/25/12	10/25/16		1		*		5.50	%	$	0			$	178	$	179
	Micheline Luxeus ##	Term Loan	12/13/12	12/13/17		1		*		5.50	%	$	0			$	178	$	179
	Serge Previlon LLC	Term Loan	08/15/13	08/15/18		1		*		5.25	%	$	0			$	173	$	175
	Marie Jeanne Philemon	Term Loan	07/07/11	07/07/15		1		*		6.50	%	$	0			$	169	$	169
	Just 8 Taxi #2 Inc ##	Term Loan	09/20/11	09/19/15		1		*		6.00	%	$	0			$	163	$	163
	Cassandra & Joseph Sejour Inc	Term Loan	04/09/10	03/13/18		1		*		4.50	%	$	0			$	163	$	162
	Monise Lubintus	Term Loan	12/12/13	12/12/17		1		*		4.50	%	$	0			$	160	$	161
	Charata Taxi Inc	Term Loan	12/12/13	12/12/17		1		*		4.50	%	$	0			$	151	$	153
	A.N.T.K. LLC	Term Loan	04/25/13	04/25/18		1		*		5.50	%	$	0			$	150	$	152
	Pierre Family 084 LLC	Term Loan	07/12/13	07/12/17		1		*		5.00	%	$	0			$	147	$	149
	Saintvillien & Larochelle LLC	Term Loan	11/14/13	11/14/18		1		*		4.63	%	$	0			$	146	$	148
	Antoines Dortin	Term Loan	08/14/14	08/14/18		1		*		5.25	%	$	0	$	148	$	147	$	147
	534 Taxi LLC	Term Loan	08/14/14	08/14/18		1		*		5.25	%	$	0	$	146	$	146	$	147
	Ahmad Taxi Inc	Term Loan	06/09/11	06/09/16		1		*		6.75	%	$	0			$	138	$	139
	424 Taxi LLC	Term Loan	01/20/12	01/20/17		1		*		7.00	%	$	0			$	138	$	139
	Charles K Agesilas	Term Loan	08/14/14	08/14/21		1		*		6.50	%	$	0	$	137	$	136	$	137
	Forward Taxi Corp	Term Loan	03/15/12	03/15/17		1		*		6.00	%	$	0			$	133	$	134
	R & Z Trans Service Inc	Term Loan	01/10/13	01/10/23		1		*		5.00	%	$	0			$	132	$	134
	Yves Frantz Philemon	Term Loan	01/20/11	01/20/15		1		*		7.50	%	$	0			$	124	$	124
	Alhayat Taxi Inc	Term Loan	02/14/13	02/14/17		1		*		5.00	%	$	0			$	118	$	117
	0127 Incorporated ##	Term Loan	07/19/12	07/19/16		1		*		5.50	%	$	0			$	114	$	115
	Olga Morales	Term Loan	03/15/12	03/15/16		1		*		6.00	%	$	0			$	112	$	113
	Cosmos 2 Taxi Corporation ##	Term Loan	11/14/13	11/14/18		1		*		5.00	%	$	0			$	109	$	111

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
	Louibert Julien	Term Loan	06/18/14	06/16/21		1		*			5.50	%	$	0	$	113	$	107	$	109
	Hercule Jean-Baptiste	Term Loan	06/13/13	06/13/17		1		*			5.00	%	$	0			$	105	$	107
	Don Taxi Inc/Mbnk	Term Loan	01/23/14	01/23/18		1		*			6.50	%	$	0	$	105	$	103	$	103
	Gerald Jean-Louis ##	Term Loan	04/25/13	04/25/17		1		*			5.25	%	$	0			$	98	$	99
	E-Z-4-U Inc	Term Loan	01/19/12	01/19/16		1		*			6.00	%	$	0			$	93	$	94
	Gethsemane Inc	Term Loan	02/20/14	02/20/19		1		*			4.50	%	$	0	$	88	$	85	$	87
	Clameus Estimable	Term Loan	05/06/10	06/06/18		1		*			5.25	%	$	0			$	85	$	85
	Praise The Lord Taxi Inc	Term Loan	05/20/11	05/20/15		1		*			6.75	%	$	0			$	82	$	82
	Pola Trans Inc ##	Term Loan	07/19/12	07/19/17		1		*			5.50	%	$	0			$	78	$	78
	Mr Clean Sdam Taxi LLC	Term Loan	06/09/11	06/09/15		1		*			6.75	%	$	0			$	75	$	75
	Fraline Taxi Inc ##	Term Loan	09/18/14	09/18/19		1		*			5.50	%	$	0	$	62	$	62	$	63
	Reyes Okoroagu ##	Term Loan	11/14/13	11/14/17		1		*			4.75	%	$	0			$	48	$	50
	Pegy Taxi Corp	Term Loan	02/17/11	02/17/17		1		*			6.50	%	$	0			$	48	$	49
	Pierre Sterling	Term Loan	01/19/12	01/19/17		1		*			6.00	%	$	0			$	47	$	48
	Webert Joseph	Term Loan	02/17/11	02/17/17		1		*			6.50	%	$	0			$	38	$	39
	Farar LLC ##	Term Loan	03/13/14	03/13/19		1		*			5.25	%	$	0	$	35	$	32	$	34
	Jean Belony	Term Loan	06/09/11	06/09/16		1		*			6.50	%	$	0			$	30	$	31
	100 Taxi #2 Corp	Term Loan	07/25/08	07/25/15		1		*			8.00	%	$	0			$	19	$	19
Boston						58		10	%		4.69	%	$	0	$	7,814	$	27,435	$	27,460
	Chiso Trans Inc	Term Loan	11/26/13	11/26/16		1		*			4.25	%	$	0			$	826	$	828
	Chiso Trans Inc	Term Loan	04/20/12	04/20/15		1		*			5.50	%	$	0			$	585	$	585
	Johnson Holdings Inc	Term Loan	04/23/14	04/23/17		1		*			4.50	%	$	0	$	1,401	$	1,388	$	1,390
	Gabriel Trans Holdings Inc	Term Loan	04/23/14	04/23/17		1		*			4.50	%	$	0	$	1,131	$	1,121	$	1,123
	Sasun Cab Inc	Term Loan	02/20/13	02/20/16		1		*			4.50	%	$	0			$	926	$	927
	Southside Enterprises Inc ##	Term Loan	12/28/12	12/28/16		1		*			4.00	%	$	0			$	884	$	882
	Mish Inc ##	Term Loan	12/28/12	12/28/16		1		*			4.00	%	$	0			$	884	$	877
	Arinze Trans Inc ##	Term Loan	04/22/14	04/22/17		1		*			4.50	%	$	0	$	727	$	719	$	718
	Chidi Trans Inc ##	Term Loan	11/17/11	11/17/14		1		*			6.00	%	$	0			$	666	$	664
	Baton Moise Cab Inc ##	Term Loan	04/14/14	04/14/17		1		*			4.90	%	$	0	$	630	$	625	$	627
	Ngozi Trans Inc.	Term Loan	12/31/12	12/31/15		1		*			4.50	%	$	0			$	625	$	626
	Oke Auguste Cab Inc ##	Term Loan	01/31/14	01/31/17		1		*			4.90	%	$	0	$	630	$	623	$	625
	Chidi Trans Inc	Term Loan	04/20/12	04/20/15		1		*			5.50	%	$	0			$	620	$	620
	Arinze Trans Inc	Term Loan	02/05/10	02/05/16		1		*			4.25	%	$	0			$	580	$	580
	Chenal Cab Inc	Term Loan	12/03/13	12/03/16		1		*			5.00	%	$	0			$	538	$	540
	Britney Cab Inc	Term Loan	12/18/13	12/18/16		1		*			5.00	%	$	0			$	538	$	540
	Farb Inc ##	Term Loan	02/20/13	02/20/16		1		*			5.13	%	$	0			$	533	$	532
	Ser-Vil Cab Inc	Term Loan	03/28/14	03/28/17		1		*			4.63	%	$	0	$	534	$	528	$	530
	Amazing Grace Cab Inc	Term Loan	02/06/14	02/06/17		1		*			4.25	%	$	0	$	522	$	513	$	515
	God-Will Inc	Term Loan	02/11/14	02/11/17		1		*			4.25	%	$	0	$	518	$	508	$	510
	Jason Cab Inc ##	Term Loan	03/15/13	03/15/16		1		*			4.88	%	$	0			$	507	$	508
	Memory Cab Company Inc ##	Term Loan	01/14/11	01/14/17		1		*			4.13	%	$	0			$	507	$	505
	Margo Cab Inc ##	Term Loan	01/16/13	01/16/16		1		*			4.00	%	$	0			$	500	$	499
	S.P.B. Taxi Inc	Term Loan	09/18/13	09/18/16		1		*			5.75	%	$	0			$	493	$	495
	Myra Inc	Term Loan	08/12/13	08/12/16		1		*			5.75	%	$	0			$	492	$	493
	Saint Inc	Term Loan	08/12/13	08/12/16		1		*			5.75	%	$	0			$	492	$	493
	Good Time Cab Inc ##	Term Loan	03/20/14	03/20/17		1		*			4.13	%	$	0	$	500	$	492	$	492
	Loren Cab Inc ##	Term Loan	03/20/14	03/20/17		1		*			4.13	%	$	0	$	500	$	492	$	492
	Bailey Cab Inc ##	Term Loan	11/09/12	11/09/15		1		*			5.50	%	$	0			$	484	$	485
	Odat Taxi, Inc. ##	Term Loan	03/07/13	03/07/16		1		*			5.50	%	$	0			$	464	$	463
	Theo Cab Inc ##	Term Loan	03/07/13	03/07/16		1		*			5.50	%	$	0			$	464	$	463
	Ruth Cab Inc	Term Loan	11/26/13	11/26/16		1		*			4.25	%	$	0			$	459	$	461

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
	Tomorrow’S Tree Inc	Term Loan	10/08/13	10/08/18		1		*			4.25	%	$	0			$	456	$	458
	Dadou Cab Inc	Term Loan	11/16/12	11/16/15		1		*			5.38	%	$	0			$	449	$	450
	Joyful Ride Inc ##	Term Loan	12/28/12	12/28/16		1		*			4.00	%	$	0			$	442	$	442
	P&P Dumerant Corp ##	Term Loan	10/25/13	10/25/16		1		*			4.25	%	$	0			$	439	$	441
	Eldali Transportation Inc	Term Loan	11/09/12	11/26/16		1		*			4.25	%	$	0			$	438	$	438
	Jv Taxi Inc ##	Term Loan	03/15/13	03/15/16		1		*			4.75	%	$	0			$	430	$	430
	Djbell Love Inc ##	Term Loan	09/27/12	09/27/15		1		*			5.00	%	$	0			$	415	$	414
	God Is Able Inc ##	Term Loan	02/11/14	02/11/17		1		*			4.00	%	$	0	$	402	$	395	$	395
	H And H Taxi Inc ##	Term Loan	10/11/13	10/11/16		1		*			4.25	%	$	0			$	374	$	376
	Ngozi Trans Inc. ##	Term Loan	04/20/12	04/20/15		1		*			5.50	%	$	0			$	346	$	345
	Jesus Denis Cab Inc	Term Loan	03/22/13	03/22/16		1		*			4.50	%	$	0			$	339	$	340
	Urzal Taxi Inc	Term Loan	07/29/13	07/29/16		1		*			4.25	%	$	0			$	322	$	323
	Ngozi Trans Inc.	Term Loan	12/31/12	12/31/15		1		*			4.50	%	$	0			$	313	$	314
	Shemarjamalie Cab Inc ##	Term Loan	02/17/12	02/17/15		1		*			6.15	%	$	0			$	313	$	313
	Jre Taxi Inc ##	Term Loan	07/25/14	07/25/17		1		*			4.70	%	$	0	$	289	$	287	$	289
	Boband Cab Inc ##	Term Loan	11/06/12	06/06/17		1		*			4.00	%	$	0			$	288	$	287
	Louine Cab Inc &	Term Loan	11/30/12	11/30/15		1		*			4.50	%	$	0			$	285	$	286
	Sarhad Coach Inc	Term Loan	07/23/13	05/25/16		1		*			4.00	%	$	0			$	280	$	281
	Phatricksey Cab Inc ##	Term Loan	07/14/11	07/14/17		1		*			5.25	%	$	0			$	256	$	255
	Stanley & Rachelle Cab Inc	Term Loan	05/23/11	05/23/17		1		*			4.25	%	$	0			$	170	$	170
	Dabola Cab Inc ##	Term Loan	11/10/11	07/10/16		1		*			4.25	%	$	0			$	170	$	169
	Kena Cab Inc	Term Loan	11/06/12	11/06/15		1		*			4.75	%	$	0			$	72	$	73
	Sasun Cab Inc	Term Loan	02/20/13	02/20/16		1		*			4.50	%	$	0			$	32	$	33
	Theo Cab Inc	Term Loan	05/01/14	05/01/18		1		*			5.00	%	$	0	$	30	$	28	$	30
	Sunshine Cab Inc ##	Term Loan	06/12/07	06/12/18		1		*			5.00	%	$	0			$	19	$	19
	Marthine Cab Inc	Term Loan	09/17/10	09/17/14		1		*			6.25	%	$	0			$	1	$	1
Cambridge						14		2	%		4.83	%	$	0	$	1,087	$	5,981	$	5,994
	Gcf Taxi Inc, Et Al	Term Loan	12/30/13	12/30/16		1		*			6.00	%	$	0			$	1,370	$	1,370
	Gcf Taxi Inc	Term Loan	10/08/13	10/08/18		1		*			4.00	%	$	0			$	656	$	658
	Eureka Cab Inc	Term Loan	07/01/14	07/01/17		1		*			4.25	%	$	0	$	432	$	431	$	433
	Patrick Cab Inc And Saad Inc &	Term Loan	03/29/13	03/29/16		1		*			4.88	%	$	0			$	405	$	406
	Hope-Lynn Cabworks Inc ##	Term Loan	03/22/13	03/22/16		1		*			4.00	%	$	0			$	380	$	380
	Lynn Maha Taxi Inc	Term Loan	05/13/13	05/13/16		1		*			5.00	%	$	0			$	372	$	373
	Mgf Taxi Inc	Term Loan	05/06/11	05/06/17		1		*			4.00	%	$	0			$	356	$	356
	Desdunes Cab Inc	Term Loan	09/21/12	09/21/15		1		*			5.00	%	$	0			$	332	$	333
	Drumman Trans Inc	Term Loan	12/07/12	12/07/15		1		*			4.50	%	$	0			$	330	$	331
	Sam Taxi Inc	Term Loan	03/12/14	03/12/17		1		*			4.50	%	$	0	$	330	$	325	$	327
	Raad Taxi Inc ##	Term Loan	05/30/14	05/30/17		1		*			4.50	%	$	0	$	325	$	321	$	322
	Marcia And Everton Cab Inc ##	Term Loan	11/09/12	11/09/15		1		*			4.00	%	$	0			$	282	$	282
	Walger Inc	Term Loan	01/26/12	01/26/15		1		*			5.50	%	$	0			$	274	$	274
	Taxi Technology Inc ##	Term Loan	12/11/13	12/11/16		1		*			5.00	%	$	0			$	147	$	149
Other						10		0	%		6.58	%	$	0	$	278	$	837	$	841
	Tjp Inc ##	Term Loan	01/03/14	01/03/17		1		*			4.75	%	$	0	$	278	$	274	$	275
	Wiljean Marcelin	Term Loan	08/21/13	09/01/23		1		*			6.75	%	$	0			$	166	$	168
	Jean C Mathurin/Norcal	Term Loan	01/15/13	02/01/18		1		*			8.50	%	$	0			$	162	$	162
	Hantin Trans/Aventura Taxi	Term Loan	06/16/10	06/16/17		1		*			8.25	%	$	0			$	94	$	95
	Zelalem S. Alemu	Term Loan	04/28/08	04/28/18		1		*			5.00	%	$	0			$	75	$	74
	Elzira & Luc Cab Inc.	Term Loan	08/17/10	02/17/18		1		*			8.25	%	$	0			$	32	$	32
	Elysse Corporation &	Term Loan	09/10/10	03/10/18		1		*			8.25	%	$	0			$	23	$	24
	Odney Cab Inc/Mbank &	Term Loan	12/22/10	12/22/15		1		*			11.50	%	$	0			$	7	$	7

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
		Oddy Transportation Services I	Term Loan	11/26/07	11/27/14		1		*			8.00	%	$	0			$	2	$	2
		Durosier Xavier/Mbank	Term Loan	08/16/10	07/01/15		1		*			7.25	%	$	0			$	2	$	2
Total medallion loans ($230,957 pledged as collateral under borrowing arrangements)							666		109	%		4.06	%	$	0	$	94,140	$	303,180	$	303,502
Commercial Loans
Secured mezzanine (36% Minnesota, 10% Wisconsin, 10% North Carolina, 7% New York, 7% Oklahoma,
7% Texas, 7% Ohio, 5% Delaware, 4% Arizona and 7% all other states) (2)
Manufacturing (64% of the total)		EGC (interest rate includes PIK interest of 3 %)	Term Loan	09/30/14	09/30/19		1		1	%		15.00	%	$	0	$	3,100	$	3,100	$	3,111
	+	Bluff Manufacturing (interest rate includes PIK interest of 3.5 %)	Term Loan	12/14/12	12/14/17		1		1	%		15.50	%	$	0			$	3,000	$	3,007
		Animal Adventures (interest rate includes PIK interest of 2 %)	Term Loan	08/15/14	08/15/19		1		1	%		14.00	%	$	8	$	3,000	$	3,008	$	2,995
		Quaker Bakery (interest rate includes PIK interest of 5 %)	Term Loan	03/28/12	03/28/17		1		1	%		17.00	%	$	352			$	2,952	$	2,945
		BreathableBaby (interest rate includes PIK interest of 2 %)	Term Loan	08/01/14	08/01/19		1		1	%		14.00	%	$	8	$	2,500	$	2,508	$	2,513
		American Cylinder (interest rate includes PIK interest of 5 %)	Term Loan	07/03/13	01/03/18		1		1	%		17.00	%	$	98			$	1,598	$	1,598
		American Cylinder	Term Loan	07/03/13	07/03/17		1		*			10.00	%	$	0			$	800	$	796
	+	Packaging Specialists (interest rate includes PIK interest of 6 %)	Term Loan	04/01/08	12/31/14		1		1	%		14.00	%	$	10			$	2,000	$	2,000
		Dynamic Systems (interest rate includes PIK interest of 3.5 %)	Term Loan	12/23/10	12/23/17		1		1	%		15.50	%	$	152			$	1,977	$	1,977
	+	PACA Foods &	Term Loan	12/31/10	12/31/15		1		1	%		13.00	%	$	0			$	2,189	$	1,588
	+	GAF Manufacturing (interest rate includes PIK interest of 2 %)	Term Loan	03/06/14	03/06/19		1		1	%		14.00	%	$	18	$	1,500	$	1,518	$	1,526
	+	RespirTech	Term Loan	04/25/12	04/25/17		1		1	%		12.00	%	$	0			$	1,500	$	1,506
	+	Door Engineering	Term Loan	12/15/04	04/30/16		1		*			13.00	%	$	0			$	1,050	$	1,049
		Orchard &	Term Loan	03/10/99	03/31/10		1		*			13.00	%	$	0			$	1,390	$	1,390
		Process Fab & (interest rate includes PIK interest of 8 %)	Term Loan	04/17/08	12/31/15		1		*			8.00	%	$	0			$	4,500	-$	4
		Storflex (interest rate includes PIK interest of 2 %)	Term Loan	07/17/12	01/31/19		1		*			14.00	%	$	0			$	1,000	$	1,008
	+	Waltek	Term Loan	03/31/06	03/31/16		1		*			12.00	%	$	0			$	956	$	956
Information (12% of the total)		US Internet	Term Loan	06/12/13	06/12/20		1		1	%		14.50	%	$	0			$	3,000	$	3,017
		Centare (interest rate includes PIK interest of 2 %)	Term Loan	08/30/13	08/30/18		1		1	%		14.00	%	$	0			$	2,500	$	2,485
Arts, Entertainment, and Recreation (10% of the total)		RPAC Racing (interest rate includes PIK interest of 10 %)	Term Loan	11/19/10	11/19/15		1		2	%		10.00	%	$	1,409			$	4,448	$	4,448
Administrative and Support Services (8% of the total)	+	Staff One	Term Loan	06/30/08	03/31/16		1		1	%		3.00	%	$	0			$	2,964	$	2,964
	+	Staff One	Term Loan	09/15/11	03/31/16		1		*			3.00	%	$	0			$	485	$	485
		Ecological Systems (ESI) &	Term Loan	01/14/05	01/14/10		1		*			0.00	%	$	44			$	628	$	45
Professional, Scientific, and Technical Services (5% of the total)	+	Portu-Sunberg	Term Loan	12/31/12	12/31/17		1		1	%		12.00	%	$	0			$	2,500	$	2,509

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014  Acquisitions (5)		Cost (4)		Fair Value
	McCaully &	Term Loan	10/26/11	11/01/14		1		*			10.00	%	$	5			$	5	$	5
Accommodation and Food Services (1% of the total)	Javier & David &	Term Loan	11/05/10	11/05/15		1		*			9.25	%	$	0			$	509	$	508
	Multiconcepts &	Term Loan	06/30/00	10/01/15		1		*			10.00	%	$	0			$	946	$	53
	Star &	Term Loan	06/30/00	10/01/15		1		*			10.00	%	$	0			$	839	$	59
Retail Trade (0% of the total)	Retail &	Term Loan	06/30/00	10/01/15		1		*			10.00	%	$	0			$	395	$	36
Total secured mezzanine (2)						29		17	%		12.25	%	$	2,104	$	10,100	$	54,265	$	46,575
Asset-based (66% New York, 29% New Jersey and 5% all other states)
Transportation and Warehousing (31% of the total)	Fleet Radio Dispatch Corp. ##	Revolving line of credit	12/31/01	12/31/14		1		*			6.00	%	$	0			$	603	$	589
	Chauffeured Services Unlimited &	Revolving line of credit	05/02/06	05/02/15		1		*			8.00	%	$	0			$	205	$	199
	Big Daddy Drayage, Inc.	Revolving line of credit	10/18/06	10/18/14		1		*			5.25	%	$	0			$	95	$	91
Wholesale Trade (28% of the total)	Atlantic Veal & Lamb, Inc. ##	Revolving line of credit	08/15/01	08/15/15		1		*			5.50	%	$	0			$	582	$	568
	Capitalsea, LLC ##	Revolving line of credit	11/07/05	11/07/14		1		*			4.50	%	$	0			$	238	$	205
	Pride of Neptune, Inc. ##	Revolving line of credit	01/14/02	01/14/15		1		*			4.75	%	$	0			$	184	$	179
	Banner Smoked Fish, Inc. ##	Revolving line of credit	03/27/01	03/27/15		1		*			5.25	%	$	0			$	54	$	52
	Benco Inc.	Revolving line of credit	11/06/13	11/06/14		1		*			6.25	%	$	0			$	35	$	38
	Snow Shoe Refractories, LLC	Revolving line of credit	11/30/11	11/30/14		1		*			6.00	%	$	0			$	30	$	28
	A.E. Seafood Distributors Inc d/b/a Oceanline Seafood	Revolving line of credit	06/30/14	06/30/15		1		*			6.50	%	$	0	$	15	$	17	$	20
	Two Cousins Fish Market, Inc.	Revolving line of credit	01/23/99	01/23/15		1		*			5.25	%	$	0			$	1	$	0
	Newburg Egg Corp. ##	Revolving line of credit	03/16/99	03/16/15		1		*			6.00	%	$	0			-$	268	-$	268
Retail Trade (16% of the total)	The Dependable Food Corp. ##	Revolving line of credit	10/19/98	10/19/14		1		*			4.75	%	$	0			$	321	$	313
	CNC Associated N.Y.	Revolving line of credit	07/24/01	07/24/15		1		*			5.75	%	$	0			$	111	$	108
	Cyrus R. Fox, Inc. ##	Revolving line of credit	08/31/06	08/31/15		1		*			5.75	%	$	0			$	37	$	25
	Colt, Inc.	Revolving line of credit	10/12/04	10/12/14		1		*			7.12	%	$	0			$	22	$	18
	I & E Tire Corp. ##	Revolving line of credit	12/21/98	12/21/14		1		*			5.75	%	$	0			$	14	$	13
Construction (10% of the total)	Triple A. Supplies, Inc. ##	Revolving line of credit	07/20/99	07/20/15		1		*			5.75	%	$	0			$	288	$	280
	Mathusek, Incorporated	Revolving line of credit	07/23/13	07/23/15		1		*			6.75	%	$	0			$	16	$	17
Manufacturing (7% of the total)	Fine Line Graphics, Inc.	Revolving line of credit	11/29/05	11/29/14		1		*			6.50	%	$	0			$	105	$	100
	Absecon Mills, Inc. ##	Revolving line of credit	07/07/04	07/07/15		1		*			6.25	%	$	0			$	74	$	63
	Douglass Industries, Inc. ##	Revolving line of credit	07/07/04	07/07/15		1		*			6.25	%	$	0			$	33	$	29
	JLM Couture Inc.	Revolving line of credit	06/22/10	06/22/15		1		*			5.75	%	$	0			$	13	$	8
	International Rollforms, Inc	Revolving line of credit	01/27/14	01/27/15		1		*			7.25	%	$	0	$	10	$	2	$	5
Health Care and Social Assistance (4% of the total)	Mrs. Mary’s Place HCS Inc. ##	Revolving line of credit	10/02/07	10/02/14		1		*			5.75	%	$	0			$	90	$	86
	Heart to Heart Health Care	Revolving line of credit	11/09/12	11/09/14		1		*			5.81	%	$	0			$	47	$	45
Finance and Insurance (3% of the total)	RAS Group, Inc. &	Revolving line of credit	02/14/08	02/14/15		1		*			5.50	%	$	0			$	99	$	96
Administrative and Support Services (1% of the total)	Raritan Building Service Corp	Revolving line of credit	06/30/07	06/30/15		1		*			5.50	%	$	0			$	23	$	21

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
Total asset-based ($2,519 pledged as collateral under borrowing arrangements)						28		1	%		5.66	%	$	0	$	25	$	3,071	$	2,928
Other secured commercial (76% New York and 24% New Jersey)
Retail Trade (79% of the total)	Medallion Fine Art Inc (interest rate includes PIK interest of 12.00%)	Term Loan	12/17/12	12/17/17		1		2	%		12.00	%	$	939			$	6,542	$	6,542
	Guyonamar Food Corp	Term Loan	03/17/11	03/17/16		1		*			9.25	%	$	0			$	601	$	596
	Antonio Rosado	Term Loan	03/15/12	03/15/17		1		*			9.50	%	$	0			$	562	$	555
	La Conga Food Market Inc	Term Loan	10/09/12	01/09/20		1		*			9.00	%	$	0			$	490	$	486
	A Food Mart Inc	Term Loan	06/03/14	06/03/20		1		*			9.00	%	$	0	$	420	$	407	$	403
	Anthony Supermarket LLC	Term Loan	04/02/13	07/02/18		1		*			9.00	%	$	0			$	403	$	399
	Fresco Bagels & Supermarket In	Term Loan	08/13/14	08/13/20		1		*			9.00	%	$	0	$	400	$	396	$	392
	Hansel Batista	Term Loan	02/06/14	05/06/20		1		*			9.00	%	$	0	$	410	$	394	$	390
	La Conga Meat Market Inc	Term Loan	12/17/13	03/17/20		1		*			9.00	%	$	0			$	376	$	372
	Ar Supermarket LLC	Term Loan	08/02/13	08/02/18		1		*			8.50	%	$	0			$	348	$	345
	616 Broadway LLC	Term Loan	02/10/11	12/17/14		1		*			8.50	%	$	0			$	308	$	308
	324 Gem Meat Market Inc &	Term Loan	04/03/14	07/03/19		1		*			9.00	%	$	0	$	410	$	405	$	251
	F.J.P. Meat Market Inc	Term Loan	02/06/12	09/06/17		1		*			9.50	%	$	0			$	237	$	236
	Drr Enterprises LLC	Term Loan	10/28/08	10/17/18		1		*			10.50	%	$	0			$	138	$	138
	Moderne Barn Wines&Spirits Inc	Term Loan	05/09/13	05/09/18		1		*			4.75	%	$	0			$	114	$	115
	New Era Meat Supermarket LLC	Term Loan	09/13/06	09/16/16		1		*			10.00	%	$	0			$	59	$	59
	G&C Grocery Inc &	Term Loan	05/19/08	08/23/15		1		*			0.00	%	$	0			$	23	$	23
	Julio Castillo &	Term Loan	08/18/08	03/03/15		1		*			9.50	%	$	0			$	20	$	20
Accommodation and Food Services (19% of the total)	Dune Deck Owners Corp ##	Term Loan	04/24/07	03/31/16		1		1	%		7.00	%	$	0			$	2,071	$	2,071
	El Mangu Sabroso Restaurant In	Term Loan	06/06/14	09/06/19		1		*			9.00	%	$	0	$	375	$	375	$	371
	Bistro Caterers Corporation	Term Loan	07/25/13	07/25/18		1		*			9.00	%	$	0			$	235	$	234
	El Tropico Family Rest Ii LLC &	Term Loan	11/29/05	03/16/16		1		*			6.75	%	$	0			$	260	$	168
Real Estate and Rental and Leasing (1% of the total)	Thursday Morning Inc	Term Loan	04/01/10	04/01/15		1		*			6.00	%	$	0			$	75	$	75
	Rala Management	Term Loan	04/22/99	09/01/15		1		*			4.75	%	$	0			$	63	$	63
	T.P. Hon LLC	Term Loan	07/15/13	07/15/16		1		*			4.00	%	$	0			$	24	$	25
Health Care and Social Assistance (1% of the total)	Craig Feuerman M.D. P.C.	Term Loan	05/14/13	05/14/18		1		*			7.50	%	$	0			$	115	$	116
Total other secured commercial loans ($2,072 pledged as collateral under borrowing arrangements)						26		5	%		9.92	%	$	939	$	2,015	$	15,041	$	14,753
Total commercial loans ($4,591 pledged as collateral under borrowing arrangements) (2)						83		23	%		11.49	%	$	3,043	$	12,140	$	72,377	$	64,256
Commercial Banking	Medallion Bank **	100% of common stock	05/16/02	None		1		43	%		11.24	%	$	0			$	120,106	$	120,106
Art Dealer	Medallion Fine Art, Inc.	100% of common stock	12/03/12	None		1		*			0.00	%	$	0			$	1,359	$	1,359
Real Estate	Medallion Hamptons Holding LLC	100% of membership interests	06/21/05	None		1		2	%		0.00	%	$	0			$	4,400	$	4,400
Loan Servicing	Medallion Servicing Corp.	100% of common stock	11/05/10	None		1		*			0.00	%	$	0			$	715	$	715

Medallion Financial Corp.

Consolidated Schedule of Investments

September 30, 2014

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2014 Acquisitions (5)		Cost (4)		Fair Value
Professional Sports Team		Lax Group LLC	42% of membership interests	05/23/12	None		1		*			0.00	%	$	0			$	468	$	468
Advertising		Generation Outdoor, Inc.	100% of common stock	12/20/04	None		1		*			0.00	%	$	0			$	660	$	660
Investment in Medallion Bank and other controlled subsidiaries, net							6		46	%		10.57	%	$	0	$	0	$	127,708	$	127,708
Equity investments Commercial Finance		Convergent Capital, Ltd **	7% of limited partnership interest	07/20/07	None		1		1	%		0.00	%	$	0			$	967	$	2,600
NASCAR Race Team		Medallion MotorSports, LLC	75% of limited liability interest	11/24/10	None		1		1	%		0.00	%	$	0			$	1,954	$	1,794
Appliance Recycler #		Appliance Recycling Centers of America, Inc.	8.86% of common stock	09/10/98	None		1		*			0.00	%	$	0			$	0	$	1,283
Employee Leasing Services		Staff One	46.4% preferred stock	06/30/08	None		2		*			0.00	%	$	0			$	472	$	472
Bakery		Quaker Bakery	* of senior preferred stock	03/28/12	None		1		*			0.00	%	$	0			$	359	$	359
IT Services		Centare	7.23% of common stock, 3.88% of preferred stock	08/30/13	None		1		*			0.00	%	$	0			$	103	$	103
Banking		Bridge Bancorp Inc.**	*	03/30/12	None		1		*			0.00	%	$	0			$	76	$	70
Machinery Manufacturer	+	Reel Power International, Inc.	2.65% of common stock	08/04/08	None		1		*			0.00	%	$	0			$	318	$	318
Real Estate Investment		CIM Commercial Trust Corp**	*	12/30/10	None		1		*			3.97	%	$	0			$	902	$	144
Surgical Instruments		Summit Medical, Inc.	9.25% of common stock	11/01/10	None		1		*			0.00	%	$	0			$	135	$	135
Stuffed Toy Manufacturer		Animal Adventure	1.6% LLC common units	08/15/14	None		1		*			0.00	%	$	0			$	300	$	300
Baby Sleep Products		BreathableBaby	3.6% LLC units	08/01/14	None		1		*			0.00	%	$	0			$	250	$	250
Equity investments, net							13		3	%		0.61	%	$	0	$	0	$	5,836	$	7,828
Investment securities
Investment securities, net							0		0	%		0.00	%	$	0	$	0	$	0	$	0
Net Investments ($235,548 pledged as collateral under borrowing arrangements) (3)							768		181	%		6.71	%	$	3,043	$	106,280	$	509,101	$	503,294

(1) Represents the actual or weighted average interest or dividend rate of the respective security or portfolio as of the date indicated. Investments without an interest rate or with a rate of 0.00% are considered non-income producing.

(2) Included in secured mezzanine commercial loans and other commercial loans was $3,043 of interest income capitalized into the outstanding investment balances, in accordance with the terms of the investment contract.

(3) The ratio of restricted securities fair value to net assets is 181%.

(4) Gross unrealized appreciation, gross unrealized depreciation, and net appreciation for federal income tax purposes totaled $56,161, $11,614 and $44,547, respectively. The tax cost of investments was $458,747.

(5) For revolving lines of credit the amount shown is the cost at September 30, 2014.

* Less than 1.0%

** Not an eligible portfolio company as such term is defined in Section 2(a)(46) of the 1940 Act. The percentage value of all non-eligible portfolio companies to totaled assets of Medallion Financial on an unconsolidated basis was up to 25% and up to 29% on a consolidated basis. Under the 1940 Act, we may not acquire any non-qualifying assets, unless at the time such acquisition is made, qualifying assets, which include securities of eligible portfolio companies, represent at least 70% of our total assets. The status of these assets under the 1940 Act are subject to change. We monitor the status of these assets on an ongoing basis.

& Loan is on nonaccrual status, or past due on contractual payments, and is therefore considered non-income producing.

# Publicly traded but sales subject to applicable Rule 144 limitations.

## Pledged as collateral under borrowing arrangements.

+ Includes various warrants, all of which have a cost and fair value of zero at September 30, 2014.

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
Medallion Loans
New York								358		74	%		3.52	%	$	0	$	133,978	$	202,954	$	202,947
	Sean Cab Corp ##	Term Loan		12/09/11		12/08/15		1		1	%		3.60	%					$	3,581	$	3,566
	Real Cab Corp	Term Loan		07/20/07		07/20/17		1		1	%		2.81	%					$	2,545	$	2,545
	Real Cab Corp	Term Loan		07/20/07		07/20/17		1		*			2.81	%					$	350	$	350
	Sifnos, Van-Dim, Kitriani Incs ##	Term Loan		06/08/10		05/01/15		1		1	%		4.00	%					$	2,460	$	2,454
	Whispers Taxi Inc ##	Term Loan		05/28/13		05/28/16		1		1	%		3.35	%			$	2,197	$	2,164	$	2,156
	Slo Cab Corp	Term Loan		07/20/07		07/20/17		1		1	%		2.81	%					$	1,527	$	1,527
	Slo Cab Corp	Term Loan		07/20/07		07/20/17		1		*			2.81	%					$	210	$	210
	Lety Cab Corp ##	Term Loan		10/21/10		10/20/15		1		1	%		3.13	%					$	1,557	$	1,550
	Nancy Transit Inc ##	Term Loan		03/11/13		03/11/16		1		1	%		3.50	%			$	1,575	$	1,546	$	1,542
	Bunty & Jyoti Inc ##	Term Loan		03/13/13		03/13/16		1		1	%		3.75	%			$	1,575	$	1,546	$	1,541
	Junaid Trans Corp ##	Term Loan		04/30/13		04/30/16		1		1	%		3.75	%			$	1,550	$	1,524	$	1,519
	Christian Cab Corp	Term Loan		11/27/12		11/27/15		1		1	%		4.00	%					$	1,504	$	1,513
	Ocean Hacking Corp ##	Term Loan		12/20/13		12/20/16		1		1	%		3.50	%			$	1,500	$	1,500	$	1,502
	Devin Taxi Corp ##	Term Loan		05/28/13		05/28/16		1		1	%		3.35	%			$	1,465	$	1,443	$	1,438
	Dayna Hacking Corp ##	Term Loan		05/28/13		05/28/16		1		1	%		3.35	%			$	1,465	$	1,443	$	1,438
	Benson Hacking Corp ##	Term Loan		05/28/13		05/28/16		1		1	%		3.35	%			$	1,465	$	1,443	$	1,438
	Silke Hacking Corp ##	Term Loan		06/28/13		06/28/16		1		1	%		2.90	%			$	1,450	$	1,424	$	1,426
	Sonu-Seema Corp ##	Term Loan		12/07/12		12/07/15		1		1	%		3.75	%					$	1,415	$	1,410
	Lil Amandachaka Hacking Corp ##	Term Loan		07/23/13		07/23/16		1		1	%		3.00	%			$	1,425	$	1,407	$	1,409
	Flow Taxi Corp ##	Term Loan		07/23/13		07/23/16		1		1	%		3.00	%			$	1,425	$	1,407	$	1,409
	Ukraine Service Co ##	Term Loan		07/23/13		07/23/16		1		1	%		3.00	%			$	1,425	$	1,407	$	1,409
	Nosilla Service Co., Inc ##	Term Loan		07/23/13		07/23/16		1		1	%		3.00	%			$	1,425	$	1,407	$	1,409
	Orys Trans Corp ##	Term Loan		07/24/13		07/24/16		1		1	%		2.75	%			$	1,400	$	1,400	$	1,402
	Alltaxitwo Cab Corp ##	Term Loan		07/24/13		07/24/16		1		1	%		2.75	%			$	1,400	$	1,400	$	1,402
	Perem Hacking Corp ##	Term Loan		02/21/13		02/21/16		1		*			3.00	%			$	1,396	$	1,362	$	1,358
	S600 Service Co Inc ##	Term Loan		02/21/13		02/21/16		1		*			3.00	%			$	1,396	$	1,362	$	1,358
	Uddin Taxi Corp ##	Term Loan		11/14/12		11/14/15		1		*			5.25	%					$	1,358	$	1,353
	Daytona Hacking Corp ##	Term Loan		06/28/13		06/28/16		1		*			2.90	%			$	1,364	$	1,346	$	1,348
	Concourse Cab Corp ##	Term Loan		11/14/13		11/14/16		1		*			3.75	%			$	1,335	$	1,333	$	1,342
	Kby Taxi Inc ##	Term Loan		05/17/13		05/17/16		1		*			3.50	%			$	1,300	$	1,300	$	1,296
	Anniversary Taxi Corp ##	Term Loan		05/17/13		05/17/16		1		*			3.50	%			$	1,300	$	1,300	$	1,296
	Hj Taxi Corp ##	Term Loan		05/17/13		05/17/16		1		*			3.50	%			$	1,300	$	1,300	$	1,296
	Apple Cab Corp ##	Term Loan		05/17/13		05/17/16		1		*			3.50	%			$	1,300	$	1,300	$	1,296
	Avi Taxi Corporation ##	Term Loan		05/17/13		05/17/16		1		*			3.50	%			$	1,300	$	1,300	$	1,296
	Ming Trans Corp ##	Term Loan		11/19/12		12/01/16		1		*			3.70	%					$	1,270	$	1,266
	Ride Yellow LLC ##	Term Loan		02/01/13		11/01/16		1		*			3.10	%			$	1,200	$	1,200	$	1,196
	Avilie Service Inc ##	Term Loan		02/11/13		02/11/16		1		*			3.00	%			$	1,183	$	1,162	$	1,164
	Red Army Cab Corp ##	Term Loan		02/21/13		08/21/16		1		*			3.00	%			$	1,177	$	1,148	$	1,144
	Big Ari Taxi Corp ##	Term Loan		08/14/13		08/14/16		1		*			2.80	%			$	1,152	$	1,139	$	1,141
	New Direction Cab Corp ##	Term Loan		11/18/11		11/18/14		1		*			4.00	%					$	1,140	$	1,137
	D & G Taxi Inc ##	Term Loan		05/28/13		05/28/16		1		*			3.35	%			$	1,142	$	1,124	$	1,121
	Jump Service Co Inc ##	Term Loan		02/11/13		02/22/16		1		*			2.80	%			$	1,123	$	1,099	$	1,096
	Gaultier Hacking Corp ##	Term Loan		08/27/12		08/27/15		1		*			3.90	%					$	1,096	$	1,095
	Whats Yellow LLC ##	Term Loan		10/03/12		10/03/15		1		*			3.65	%					$	1,059	$	1,060
	Rs Hacking Corp ##	Term Loan		05/28/13		05/28/16		1		*			3.35	%			$	1,052	$	1,052	$	1,049
	Yosi Transit Inc	Term Loan		07/20/07		07/20/17		1		*			2.81	%					$	1,018	$	1,018
	Nelsk Taxi Inc ##	Term Loan		08/20/13		08/20/16		1		*			3.50	%			$	1,025	$	1,016	$	1,018
	Global Agami Cab LLC ##	Term Loan		02/27/13		02/27/16		1		*			3.00	%			$	1,000	$	991	$	988
	Universal Agami Transit Inc ##	Term Loan		02/27/13		02/27/16		1		*			3.00	%			$	1,000	$	991	$	988
	Planet Agami Cab LLC ##	Term Loan		02/27/13		02/27/16		1		*			3.00	%			$	1,000	$	991	$	988
	Holdem Cab Corp ##	Term Loan		04/10/13		04/10/16		1		*			3.00	%			$	1,000	$	982	$	979
	Go Boy Cab Corp ##	Term Loan		04/10/13		04/10/16		1		*			3.00	%			$	1,000	$	982	$	979
	Nedrag Trans Corp ##	Term Loan		05/30/13		05/30/18		1		*			3.50	%			$	975	$	961	$	963
	Typhoon Hacking Corp ##	Term Loan		05/30/13		05/30/18		1		*			3.50	%			$	975	$	961	$	963
	Hedy Hacking Corp. ##	Term Loan		05/30/13		05/30/18		1		*			3.50	%			$	975	$	961	$	963
	M.Y. Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*			3.10	%					$	960	$	961
	Mixfuel Transit LLC ##	Term Loan		10/31/06		10/31/16		1		*			3.00	%					$	890	$	890
	Lowvolt Transit LLC ##	Term Loan		10/31/06		10/31/16		1		*			3.00	%					$	890	$	890
	Kinetic Transit LLC ##	Term Loan		10/31/06		10/31/16		1		*			3.00	%					$	890	$	890
	Neutron Transit LLC ##	Term Loan		10/16/06		10/16/16		1		*			3.00	%					$	890	$	890
	Proton Transit LLC ##	Term Loan		10/16/06		10/16/16		1		*			3.00	%					$	890	$	890

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest	Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
	Rechargeable Transit LLC ##	Term Loan		10/16/06		10/16/16		1		*		3.00	%				$	890	$	890
	Quark Transit LLC ##	Term Loan		10/16/06		10/16/16		1		*		3.00	%				$	890	$	890
	Juiced Transit LLC ##	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	890	$	886
	Isotope Transit LLC ##	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	890	$	886
	Composite Transit LLC ##	Term Loan		11/03/06		11/03/16		1		*		3.00	%				$	890	$	886
	Blend Transit LLC ##	Term Loan		11/03/06		11/03/16		1		*		3.00	%				$	890	$	886
	Hybrid Transit LLC ##	Term Loan		10/23/06		10/23/16		1		*		2.67	%				$	890	$	886
	Iddy Biddy Cab Corp ##	Term Loan		08/06/10		08/05/15		1		*		3.13	%				$	864	$	860
	Malcolm Hacking Corp ##	Term Loan		08/06/10		08/05/15		1		*		3.13	%				$	864	$	860
	Jbob Hacking Corp ##	Term Loan		08/06/10		08/05/15		1		*		3.13	%				$	864	$	860
	Oyaz Hacking Corp ##	Term Loan		08/06/10		08/05/15		1		*		3.13	%				$	864	$	860
	Copper One Cab Corp ##	Term Loan		02/17/12		02/12/17		1		*		3.90	%				$	853	$	855
	Agape-Mou Cab Corp	Term Loan		02/17/12		02/12/17		1		*		3.90	%				$	853	$	855
	Asterik Cab Co Inc	Term Loan		02/17/12		02/12/17		1		*		3.90	%				$	853	$	855
	Ghotra & Ghotra LLC	Term Loan		12/19/13		12/19/16		1		*		3.85	%		$	833	$	833	$	843
	Gurpreet Singh & Manpreet Sing ##	Term Loan		06/25/13		06/25/16		1		*		3.88	%		$	835	$	826	$	828
	Arman And Mehtab Padda Taxi Co ##	Term Loan		06/19/13		06/19/16		1		*		3.88	%		$	835	$	824	$	826
	Garcha Randhawa Taxi Corp ##	Term Loan		05/31/13		05/30/16		1		*		3.88	%		$	835	$	823	$	825
	Zus Trading Inc ##	Term Loan		08/09/13		08/09/16		1		*		3.85	%		$	820	$	814	$	816
	Dhuri And Barnala Cab Corp ##	Term Loan		06/03/13		06/03/16		1		*		3.80	%		$	810	$	800	$	802
	Haroon Sharif ##	Term Loan		05/21/13		05/21/16		1		*		3.80	%		$	810	$	799	$	800
	Ghulam Abbas ##	Term Loan		04/17/13		04/17/16		1		*		3.80	%		$	810	$	797	$	798
	Gohar Cab Corp	Term Loan		10/11/13		10/11/16		1		*		3.85	%		$	786	$	784	$	794
	Alika Awan Trans Corp ##	Term Loan		09/04/13		09/04/16		1		*		3.85	%		$	786	$	782	$	784
	1212 Taxi LLC ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	750	$	751
	Samy Baddar ##	Term Loan		07/18/13		07/18/16		1		*		3.50	%		$	750	$	743	$	745
	Ilker Altaygil ##	Term Loan		07/18/13		07/18/16		1		*		3.50	%		$	750	$	742	$	744
	Joseph Gerard Pierre ##	Term Loan		12/02/13		12/02/16		1		*		3.00	%		$	740	$	740	$	742
	Amr Aly Shafshak ##	Term Loan		11/04/13		11/04/16		1		*		4.13	%		$	740	$	738	$	739
	Hot Wheels Taxi LLC ##	Term Loan		03/01/13		12/01/16		1		*		3.10	%		$	740	$	738	$	737
	Btr Taxi Inc ##	Term Loan		04/15/13		04/15/16		1		*		3.50	%		$	750	$	737	$	735
	Rakesh Aggarwal & Jasvir Singh ##	Term Loan		11/06/13		11/06/16		1		*		3.85	%		$	735	$	733	$	735
	Binh Pham ##	Term Loan		12/18/13		12/18/16		1		*		4.00	%		$	730	$	730	$	729
	Bliss Cab Corp ##	Term Loan		10/21/10		10/20/15		1		*		3.13	%				$	731	$	728
	Jaswinder Singh ##	Term Loan		03/29/13		03/29/16		1		*		3.80	%		$	744	$	730	$	728
	Joseph R Jean ##	Term Loan		04/15/13		04/15/16		1		*		3.75	%		$	736	$	725	$	725
	Leo P. Roland ##	Term Loan		12/03/13		12/03/16		1		*		3.75	%		$	720	$	720	$	722
	Jacob Apoh ##	Term Loan		12/11/13		12/11/16		1		*		3.75	%		$	720	$	720	$	722
	Kawarjeet Singh & Maan Singh ##	Term Loan		05/15/13		05/15/16		1		*		3.50	%		$	730	$	719	$	721
	Aminder Pal Singh ##	Term Loan		11/21/13		11/21/16		1		*		3.75	%		$	720	$	719	$	721
	Atef A Khalil ##	Term Loan		11/26/13		11/26/16		1		*		3.75	%		$	709	$	708	$	710
	Gilberto Barrera ##	Term Loan		08/16/13		08/16/16		1		*		3.75	%		$	710	$	704	$	706
	Strivers Way Inc ##	Term Loan		12/17/13		12/17/16		1		*		3.85	%		$	700	$	700	$	702
	Sukhdev Singh & Harpal S Bhola ##	Term Loan		12/04/13		12/04/16		1		*		3.75	%		$	700	$	698	$	700
	Bruce Schneider ##	Term Loan		05/10/13		05/10/16		1		*		4.00	%		$	700	$	700	$	699
	Balwinder Singh ##	Term Loan		09/16/13		09/16/15		1		*		3.75	%		$	700	$	696	$	698
	Marian Cab Corp ##	Term Loan		06/19/12		06/19/16		1		*		3.75	%				$	698	$	696
	Samiullah Zaman ##	Term Loan		08/21/13		08/21/16		1		*		3.63	%		$	700	$	693	$	695
	Eugenio & Ayodele Trans Corp ##	Term Loan		09/26/13		09/26/16		1		*		4.25	%		$	695	$	693	$	694
	Parvinder Singh ##	Term Loan		08/13/13		08/13/16		1		*		3.63	%		$	700	$	694	$	693
	Georges Salomon ##	Term Loan		06/13/13		06/13/16		1		*		3.50	%		$	700	$	692	$	693
	Preslert Louis ##	Term Loan		05/30/13		05/30/16		1		*		3.50	%		$	700	$	691	$	692
	Amr & Rina Taxi Inc ##	Term Loan		07/15/13		07/15/16		1		*		3.75	%		$	700	$	690	$	692
	Shanu Miah ##	Term Loan		06/20/13		06/20/16		1		*		3.63	%		$	695	$	686	$	688
	Jasvir S Dhaliwal ##	Term Loan		07/01/13		07/01/16		1		*		4.25	%		$	700	$	686	$	686
	Rousseau Ductan ##	Term Loan		05/01/13		05/01/16		1		*		3.90	%		$	693	$	684	$	684
	Kerolus Waheib Makhail	Term Loan		12/27/12		12/27/15		1		*		3.50	%				$	681	$	681
	Joseph L Flovel ##	Term Loan		10/31/13		10/30/16		1		*		3.63	%		$	680	$	673	$	678
	Birk Cab Corp ##	Term Loan		05/22/13		05/22/16		1		*		3.50	%		$	683	$	672	$	677
	Robell Hacking Corp ##	Term Loan		09/11/13		09/11/16		1		*		2.80	%		$	680	$	675	$	674
	Jordan O Ohene ##	Term Loan		05/24/13		05/24/16		1		*		3.50	%		$	675	$	667	$	672
	Donald Singh ##	Term Loan		10/11/13		10/11/16		1		*		3.75	%		$	662	$	659	$	658
	Jean Pierre Trans Inc ##	Term Loan		10/21/10		10/20/15		1		*		3.13	%				$	660	$	657

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest	Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
	Cfn Cab Corp ##	Term Loan		10/21/10		10/20/15		1		*		3.13	%				$	660	$	657
	Charanjeet Kaur & Manjit Singh ##	Term Loan		10/28/13		10/28/16		1		*		3.50	%		$	655	$	652	$	654
	Miklos Hacking Corp ##	Term Loan		10/21/10		10/20/15		1		*		3.13	%				$	655	$	652
	Carmay Latendresse ##	Term Loan		09/17/13		09/17/16		1		*		4.25	%		$	650	$	646	$	648
	Gur & Dev Taxi LLC ##	Term Loan		05/10/13		05/10/16		1		*		3.40	%		$	657	$	648	$	647
	Joseph Paul Desir ##	Term Loan		11/19/13		11/19/16		1		*		3.75	%		$	646	$	645	$	647
	Wisly Noel ##	Term Loan		07/25/13		07/25/16		1		*		3.63	%		$	650	$	642	$	644
	Pierre Goguin Joseph ##	Term Loan		03/06/13		03/06/15		1		*		3.75	%		$	642	$	642	$	643
	Lesly Jeanjoseph ##	Term Loan		05/08/13		05/08/16		1		*		3.50	%		$	650	$	641	$	640
	Brunet Lucas ##	Term Loan		06/06/13		06/06/16		1		*		3.50	%		$	641	$	641	$	639
	Carlos Govea ##	Term Loan		02/28/13		02/28/16		1		*		3.50	%		$	646	$	633	$	632
	Anwar Khalifa ##	Term Loan		07/11/13		07/11/16		1		*		3.75	%		$	642	$	633	$	632
	Nobert Auguste ##	Term Loan		01/09/13		01/09/16		1		*		4.15	%		$	645	$	632	$	631
	Ravinder Singh & Mandeep Multa ##	Term Loan		12/19/12		12/19/15		1		*		3.75	%				$	631	$	630
	Spyridon Tzorzis ##	Term Loan		07/10/13		07/10/16		1		*		3.50	%		$	635	$	628	$	630
	Mohammed Hossen & Abrar Hanif ##	Term Loan		03/11/13		03/11/16		1		*		3.50	%		$	640	$	628	$	628
	Michael Avitan ##	Term Loan		04/11/13		04/11/16		1		*		3.90	%		$	635	$	625	$	627
	Man Singh ##	Term Loan		02/25/13		02/25/16		1		*		3.75	%		$	640	$	627	$	626
	Marc C Bastien ##	Term Loan		04/11/13		04/10/16		1		*		3.65	%		$	630	$	621	$	622
	Karamjit Panchhi ##	Term Loan		08/28/13		08/28/16		1		*		3.50	%		$	626	$	621	$	620
	Alexander Vizueta ##	Term Loan		09/12/13		09/12/16		1		*		4.25	%		$	620	$	617	$	619
	Guivarch Thimothe	Term Loan		09/19/12		09/19/15		1		*		4.50	%				$	616	$	617
	Shahdad Bhatti Cab Corp ##	Term Loan		04/11/13		04/11/16		1		*		4.25	%		$	625	$	616	$	615
	Sincere Cab Corp ##	Term Loan		06/21/11		06/21/16		1		*		4.50	%				$	611	$	609
	Oradeanul Taxi Corp ##	Term Loan		01/30/13		02/01/16		1		*		3.63	%		$	620	$	605	$	606
	Turgut Duman ##	Term Loan		12/06/12		12/06/15		1		*		3.50	%				$	604	$	605
	Sushil Maggoo ##	Term Loan		12/14/12		12/14/15		1		*		3.50	%				$	604	$	605
	Manuel F Pena ##	Term Loan		11/26/13		11/26/16		1		*		3.50	%		$	600	$	600	$	602
	Yvon Louissaint ##	Term Loan		12/17/12		12/17/15		1		*		3.75	%				$	600	$	601
	Humberto Ontaneda ##	Term Loan		10/17/13		10/17/16		1		*		3.50	%		$	600	$	598	$	600
	Joseph W Charles ##	Term Loan		04/17/13		04/17/16		1		*		3.75	%		$	610	$	600	$	599
	Patrick Sattaur ##	Term Loan		03/15/13		03/15/16		1		*		3.63	%		$	600	$	599	$	598
	Guy Merisier ##	Term Loan		08/20/13		08/20/16		1		*		4.00	%		$	600	$	596	$	598
	Alexander A Malamud ##	Term Loan		02/28/13		02/28/16		1		*		3.55	%		$	604	$	593	$	595
	Rafi Mohammad ##	Term Loan		02/27/13		02/27/16		1		*		3.50	%		$	600	$	589	$	588
	Erwich Chery ##	Term Loan		11/01/13		11/01/16		1		*		3.70	%		$	587	$	585	$	587
	Roudy Moliere &Jean B Letang ##	Term Loan		12/17/12		12/17/15		1		*		4.25	%				$	587	$	586
	Eli Parada ##	Term Loan		11/27/13		11/27/16		1		*		3.65	%		$	579	$	579	$	581
	Newton Sodhi ##	Term Loan		05/06/13		05/06/16		1		*		3.38	%		$	587	$	578	$	576
	Jose F Pimentel	Term Loan		11/27/12		11/27/15		1		*		4.00	%				$	575	$	576
	Jean J Monteau ##	Term Loan		12/06/12		12/06/15		1		*		4.00	%				$	575	$	573
	Gerardo Barrera ##	Term Loan		12/23/13		12/23/16		1		*		3.75	%		$	573	$	573	$	573
	Bhai Bhai Taxi Corp	Term Loan		06/02/11		10/01/15		1		*		3.75	%				$	571	$	571
	I&I Cab Corp ##	Term Loan		03/19/13		03/19/16		1		*		3.60	%		$	568	$	568	$	569
	Rafael A Pena ##	Term Loan		09/18/13		09/18/16		1		*		4.00	%		$	565	$	559	$	561
	Tamimu Aliu ##	Term Loan		05/28/13		05/28/16		1		*		4.25	%		$	567	$	560	$	559
	Fernande Paul Cab Corp ##	Term Loan		01/24/13		01/24/16		1		*		3.50	%		$	570	$	557	$	559
	Mian Cab Corp ##	Term Loan		01/22/13		01/22/16		1		*		4.00	%		$	570	$	558	$	557
	Amjad Abbas ##	Term Loan		12/19/13		12/19/16		1		*		3.40	%		$	555	$	555	$	555
	Ulrick Racine ##	Term Loan		03/08/13		03/08/16		1		*		3.50	%		$	555	$	548	$	547
	Muhammad Saqib ##	Term Loan		10/04/11		10/04/14		1		*		3.50	%				$	545	$	543
	Shabir Khalid ##	Term Loan		05/29/13		05/29/16		1		*		3.25	%		$	556	$	544	$	543
	Hasina Farazi & Rafiul Farazi ##	Term Loan		02/25/13		02/25/16		1		*		3.50	%		$	555	$	543	$	542
	Jasvinder Chhoker + Dam Singh	Term Loan		11/10/11		12/05/15		1		*		3.50	%				$	542	$	542
	Magloire David ##	Term Loan		09/09/13		09/09/15		1		*		3.95	%		$	540	$	540	$	542
	Dani Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*		3.10	%				$	541	$	541
	Albert A Agyemang ##	Term Loan		07/09/13		07/09/16		1		*		3.50	%		$	550	$	541	$	541
	Pierre Chery ##	Term Loan		09/24/12		09/24/15		1		*		4.00	%				$	538	$	539
	Ptah Cab Corp ##	Term Loan		05/25/11		05/01/16		1		*		3.00	%				$	540	$	538
	Albro Hacking, Corp. ##	Term Loan		10/21/10		10/20/15		1		*		3.13	%				$	537	$	535
	Jaswinder Sharma ##	Term Loan		11/02/11		11/02/14		1		*		3.50	%				$	537	$	534
	Frantz Louhis & Joseph Paul ##	Term Loan		06/08/12		06/08/15		1		*		4.25	%				$	530	$	530
	Dominique Ismael ##	Term Loan		05/07/13		05/07/16		1		*		3.75	%		$	529	$	521	$	521

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest	Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
	Ahmed Elsayed ##	Term Loan		11/22/13		11/22/16		1		*		3.50	%		$	521	$	519	$	521
	Olmedo Nocua ##	Term Loan		01/25/13		01/25/16		1		*		3.50	%		$	530	$	518	$	517
	Avner Ben-Levy ##	Term Loan		05/29/12		05/29/15		1		*		4.25	%				$	506	$	505
	Louis A Alphonse ##	Term Loan		02/21/13		02/21/16		1		*		3.75	%		$	510	$	500	$	501
	M Irshad Chaudhry & Mhd Ramzan ##	Term Loan		03/21/11		03/21/16		1		*		3.50	%				$	504	$	500
	Avtar Singh ##	Term Loan		11/22/11		11/07/14		1		*		3.50	%				$	499	$	497
	Mukhtiar Singh ##	Term Loan		11/22/11		11/22/14		1		*		3.50	%				$	499	$	497
	Frands Fequiere ##	Term Loan		01/03/13		01/03/16		1		*		3.75	%		$	510	$	495	$	494
	Harold Torres ##	Term Loan		02/12/13		02/12/16		1		*		3.50	%		$	505	$	494	$	494
	Romain Eustache ##	Term Loan		02/26/13		02/26/16		1		*		4.00	%		$	500	$	492	$	492
	Chuhar Singh ##	Term Loan		06/06/13		06/06/16		1		*		3.38	%		$	500	$	488	$	492
	Joseph Jean ##	Term Loan		03/14/12		03/14/15		1		*		4.50	%				$	490	$	490
	Gustavo E Cabrejos ##	Term Loan		10/15/12		10/15/15		1		*		3.90	%				$	490	$	488
	Malkiat S Multani	Term Loan		06/01/11		06/07/14		1		*		3.25	%				$	487	$	487
	Abdullah Zivali ##	Term Loan		03/22/13		03/22/16		1		*		3.50	%		$	500	$	484	$	485
	Momar Diagne ##	Term Loan		04/30/13		04/30/16		1		*		4.00	%		$	482	$	476	$	476
	Shubal C Ghose ##	Term Loan		12/18/12		12/18/15		1		*		3.75	%				$	470	$	469
	Mohammad Azhar ##	Term Loan		06/01/12		06/01/15		1		*		4.00	%				$	464	$	463
	Kang & Dhillon Taxi Inc ##	Term Loan		12/03/10		07/07/14		1		*		3.50	%				$	463	$	461
	Ny Berts Cab Corp ##	Term Loan		07/02/13		07/02/16		1		*		3.90	%		$	470	$	458	$	460
	Jasvir Singh	Term Loan		11/27/12		11/27/22		1		*		4.25	%				$	456	$	460
	Anba Taxi Inc ##	Term Loan		06/21/11		06/21/16		1		*		4.50	%				$	458	$	457
	Corsi Cab Corp ##	Term Loan		06/21/11		06/21/16		1		*		4.50	%				$	458	$	457
	Santokh Bangay ##	Term Loan		12/10/12		12/10/15		1		*		3.50	%				$	457	$	456
	Lelio Bresier & Jeanne Bresier ##	Term Loan		03/06/13		03/06/16		1		*		3.50	%		$	460	$	451	$	452
	W.B.L.S Taxi Inc	Term Loan		08/09/12		11/01/16		1		*		3.10	%				$	450	$	451
	David Mashkabov ##	Term Loan		10/26/11		10/24/14		1		*		4.00	%				$	440	$	438
	Dady Hamel ##	Term Loan		12/26/13		12/26/16		1		*		3.50	%		$	435	$	435	$	435
	Gonel Seraphin & Evelyne Serap ##	Term Loan		12/09/11		12/09/14		1		*		4.25	%				$	430	$	428
	Saba Moshe Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	422	$	423
	Mtr Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	422	$	423
	Maya Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	422	$	423
	M&J Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	422	$	423
	Neomi & Z Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	422	$	423
	Eduard Neyman	Term Loan		05/24/13		05/24/20		1		*		4.00	%		$	430	$	419	$	421
	Pierre Jeune ##	Term Loan		12/14/12		12/14/15		1		*		3.50	%				$	419	$	421
	Carlot Dalce ##	Term Loan		07/09/13		07/09/16		1		*		3.00	%		$	425	$	420	$	420
	Jacob Kuruvilla ##	Term Loan		11/11/09		12/05/17		1		*		3.75	%				$	421	$	419
	Rahul Amin ##	Term Loan		08/26/13		08/26/16		1		*		3.50	%		$	420	$	418	$	418
	Daca Taxi Inc ##	Term Loan		06/02/11		06/02/14		1		*		3.90	%				$	413	$	411
	King “D” Taxi Inc ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	Nautilus Service Cor ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	Run Service Corp ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	Crossbow Taxi Inc ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	Petia Cab Corporation ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	King Verin Taxi Inc ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	Cleopatra Cab Corp ##	Term Loan		01/17/12		01/17/15		1		*		3.00	%				$	411	$	410
	Pierre Cadet ##	Term Loan		03/19/13		03/19/16		1		*		3.30	%		$	410	$	402	$	403
	Verity Taxi Inc ##	Term Loan		02/08/13		02/08/18		1		*		3.60	%		$	400	$	400	$	403
	Luis E Perez ##	Term Loan		01/17/13		01/17/16		1		*		3.50	%		$	410	$	401	$	401
	Y Joey Taxi Inc ##	Term Loan		01/06/11		11/01/16		1		*		3.10	%				$	400	$	401
	Essa & Soliman Transit Inc ##	Term Loan		04/19/13		04/19/16		1		*		3.25	%		$	414	$	398	$	398
	Bucur Express Cab Corp ##	Term Loan		06/02/11		06/02/14		1		*		3.90	%				$	397	$	396
	Anthony Okyere Duah ##	Term Loan		06/10/11		06/10/14		1		*		5.00	%				$	386	$	385
	Shah M Rahman ##	Term Loan		11/25/13		11/25/16		1		*		3.75	%		$	385	$	384	$	385
	Surjit Singh ##	Term Loan		10/25/13		10/25/18		1		*		3.80	%		$	385	$	382	$	384
	Serge Bonny ##	Term Loan		03/11/13		03/11/16		1		*		3.25	%		$	385	$	378	$	378
	Double Cab Corp ##	Term Loan		07/13/12		07/13/15		1		*		3.75	%				$	367	$	368
	Tarafdar Abul & Tarafdar Luthf	Term Loan		08/13/10		08/13/16		1		*		7.00	%				$	365	$	365
	Malkit Singh ##	Term Loan		08/01/12		08/01/15		1		*		4.50	%				$	349	$	349
	Nour-Ditmars Zamalek Corp ##	Term Loan		04/01/11		04/01/14		1		*		4.90	%				$	349	$	348
	Elsayed A Hassan ##	Term Loan		11/28/11		11/28/14		1		*		4.25	%				$	342	$	341
	Yberto Santana ##	Term Loan		09/05/12		09/05/15		1		*		4.25	%				$	341	$	341

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest	Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
	Rehmet Khan ##	Term Loan		02/11/13		02/11/16		1		*		3.50	%		$	351	$	326	$	327
	Bj Cab Corp/Note 1 Of 2	Term Loan		06/12/13		06/12/16		1		*		3.63	%		$	325	$	321	$	326
	Bj Cab Corp/Note 2 Of 2	Term Loan		06/12/13		06/12/16		1		*		3.63	%		$	325	$	321	$	323
	Georges Desrosiers ##	Term Loan		06/26/12		06/26/15		1		*		5.00	%				$	319	$	319
	Jened Cab Corp ##	Term Loan		03/13/12		01/13/17		1		*		3.50	%				$	312	$	312
	Zorro Taxi Inc	Term Loan		12/20/13		12/20/16		1		*		3.25	%		$	309	$	309	$	311
	Jean B Guerrier ##	Term Loan		08/08/12		08/08/15		1		*		3.75	%				$	306	$	307
	Medora Moreira &Juan Mendoza ##	Term Loan		02/18/11		02/18/16		1		*		3.25	%				$	308	$	306
	Kornos Taxi Inc ##	Term Loan		09/04/12		09/04/15		1		*		4.00	%				$	292	$	292
	Platform Taxi Service/Mbank	Term Loan		05/04/12		05/12/17		1		*		5.57	%				$	287	$	287
	Mohammmed H Iqbal ##	Term Loan		09/14/12		09/14/15		1		*		3.75	%				$	283	$	283
	Chaim Tepper ##	Term Loan		02/10/11		02/10/14		1		*		5.25	%				$	283	$	282
	Joubert Toussaint ##	Term Loan		09/21/12		09/21/15		1		*		4.00	%				$	277	$	277
	Tarek Elsaid ##	Term Loan		05/27/11		04/25/16		1		*		3.00	%				$	252	$	251
	Kesef Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*		3.10	%				$	251	$	251
	Daniel Victor ##	Term Loan		05/06/13		05/06/16		1		*		3.50	%		$	235	$	231	$	231
	Ede Service Corp	Term Loan		07/20/07		07/20/17		1		*		2.81	%				$	210	$	210
	Lissade Aurelus ##	Term Loan		05/01/13		05/01/16		1		*		3.75	%		$	211	$	208	$	208
	Mohammad Ashraf Ali ##	Term Loan		01/17/12		01/09/15		1		*		3.25	%				$	199	$	199
	Roman Fermin ##	Term Loan		08/09/13		08/09/16		1		*		3.50	%		$	200	$	193	$	194
	Wan Sang Lau & Mary Quan Lau ##	Term Loan		03/20/13		03/20/16		1		*		3.25	%		$	204	$	193	$	193
	Frank Nobile ##	Term Loan		11/26/12		11/26/17		1		*		3.75	%				$	190	$	192
	Ali Akbar ##	Term Loan		03/04/10		10/11/14		1		*		3.75	%				$	190	$	189
	Bella Hacking Corp	Term Loan		06/25/04		06/25/16		1		*		6.00	%				$	190	$	189
	Jackie L Chaiken & Michael Cha ##	Term Loan		03/26/13		03/26/16		1		*		3.50	%		$	185	$	185	$	187
	Gasless Transit LLC/Bnote	Term Loan		10/23/06		10/23/16		1		*		2.67	%				$	175	$	175
	Electron Transit LLC/B Note	Term Loan		10/23/06		10/23/16		1		*		2.67	%				$	175	$	175
	Fusion Transit LLC/B Note	Term Loan		10/23/06		10/23/16		1		*		2.67	%				$	175	$	175
	Atom Transit LLC/B Note	Term Loan		11/03/06		11/03/16		1		*		3.00	%				$	175	$	175
	Duracell Transit LLC/B Note	Term Loan		11/03/06		11/03/16		1		*		3.00	%				$	175	$	175
	Abdul H Abid ##	Term Loan		06/09/09		06/09/14		1		*		6.38	%				$	173	$	172
	Ede Service Corp/Mfun	Term Loan		07/24/07		07/20/17		1		*		2.81	%				$	151	$	151
	Nicolae Blidariu	Term Loan		02/29/08		02/28/23		1		*		6.50	%				$	146	$	147
	Yosi Transit Inc	Term Loan		07/20/07		07/20/17		1		*		2.81	%				$	140	$	140
	Ny Diploma Taxi Co	Term Loan		07/20/07		07/20/17		1		*		2.81	%				$	140	$	140
	Joseph Bologna ##	Term Loan		10/06/10		10/01/16		1		*		3.25	%				$	140	$	139
	Mode Service Corp	Term Loan		06/02/11		06/01/21		1		*		6.00	%				$	139	$	138
	Anastasios Tsiklidis	Term Loan		04/15/11		01/15/18		1		*		3.60	%				$	114	$	116
	Norberto Cardona ##	Term Loan		03/30/12		03/30/17		1		*		4.00	%				$	110	$	111
	Wilfrid Barreau	Term Loan		12/29/09		12/29/16		1		*		5.75	%				$	102	$	102
	Ny Diploma Taxi Corp/Mfun	Term Loan		07/24/07		07/20/17		1		*		2.81	%				$	101	$	101
	Boris Ushman ##	Term Loan		05/21/03		04/13/15		1		*		5.75	%				$	89	$	89
	Kinetic Transit LLC/B Note	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	85	$	85
	Mixfuel Transit LLCb Note	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	85	$	85
	Lowvolt Transit LLC	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	85	$	85
	Juiced Transit LLC/B Note	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	85	$	85
	Isotope Transit LLC/B Note	Term Loan		10/31/06		10/31/16		1		*		3.00	%				$	85	$	85
	Proton Transit LLC/B Note	Term Loan		10/16/06		10/16/16		1		*		3.00	%				$	85	$	85
	Neutron Transit LLC/B Note	Term Loan		10/16/06		10/16/16		1		*		3.00	%				$	85	$	85
	Quark Transit LLC/B Note	Term Loan		10/16/06		10/16/16		1		*		3.00	%				$	85	$	85
	Rechargeable Transit LLC/Bnote	Term Loan		10/16/06		10/16/16		1		*		3.00	%				$	85	$	85
	Hybrid Transit LLC/B Note	Term Loan		10/23/06		10/23/16		1		*		2.67	%				$	85	$	85
	William G Ward ##	Term Loan		04/29/13		04/29/16		1		*		3.25	%		$	86	$	81	$	81
	Bu Taxi LLC/Mbank	Term Loan		12/29/10		11/01/16		1		*		3.10	%				$	75	$	75
	Calcium One Service Inc	Term Loan		02/23/07		02/23/17		1		*		2.22	%				$	71	$	71
	Ede Service Corp	Term Loan		07/20/07		07/20/17		1		*		2.81	%				$	69	$	69
	Ruckman Hacking Corp	Term Loan		08/30/13		02/22/16		1		*		2.80	%		$	1,200	$	60	$	62
	Sonnet Service Co Inc	Term Loan		08/30/13		02/22/16		1		*		2.80	%		$	1,200	$	60	$	62
	Y Mommy Taxi Inc/Mbank	Term Loan		12/23/10		11/01/16		1		*		3.10	%				$	60	$	60
	Sushil Maggoo	Term Loan		06/27/13		06/27/17		1		*		3.75	%		$	65	$	58	$	60
	Kaderee M & G Corp	Term Loan		06/28/13		06/28/16		1		*		2.90	%		$	1,158	$	58	$	60
	Soho Cab Corp	Term Loan		06/28/13		06/28/16		1		*		2.90	%		$	1,158	$	58	$	60
	Goodspeed Transit Inc	Term Loan		08/14/13		08/14/16		1		*		2.80	%		$	1,142	$	57	$	59

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
	Granny Hacking Corp	Term Loan		03/07/13		03/07/18		1		*			3.50	%			$	1,050	$	54	$	59
	Appoint Cab Corp/Mbank	Term Loan		12/06/10		04/06/14		1		*			7.96	%					$	57	$	57
	Composite Transit LLC	Term Loan		11/03/06		11/03/16		1		*			3.00	%					$	56	$	56
	Blend Transit LLC/B Note	Term Loan		11/03/06		11/03/16		1		*			3.00	%					$	56	$	56
	Cora Hacking Corp	Term Loan		03/07/13		03/07/18		1		*			3.50	%			$	1,050	$	54	$	56
	Y Daddy Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	55	$	55
	Network Agami Cab Corp	Term Loan		02/27/13		02/27/16		1		*			3.00	%			$	1,000	$	50	$	52
	Calcium One Service Inc	Term Loan		02/23/07		02/23/17		1		*			2.22	%					$	49	$	49
	Orbit Agami Cab LLC	Term Loan		11/05/10		10/01/16		1		*			2.88	%					$	48	$	48
	Justin Hacking Corp	Term Loan		08/14/13		08/14/16		1		*			2.80	%			$	894	$	45	$	47
	Ny Diploma Taxi Co	Term Loan		07/20/07		07/20/17		1		*			2.81	%					$	46	$	46
	Samiullah Zaman	Term Loan		12/02/13		12/02/17		1		*			4.50	%			$	43	$	42	$	44
	Eddy Joseph	Term Loan		12/20/00		12/02/15		1		*			4.00	%					$	42	$	42
	Bursa Cab Corp/Note 1	Term Loan		03/23/01		09/10/23		1		*			6.00	%					$	41	$	41
	Nosea Taxi LLC	Term Loan		01/06/11		11/01/16		1		*			3.10	%					$	38	$	39
	Y.A.M. Associates Corp	Term Loan		10/18/11		04/18/14		1		*			6.00	%					$	38	$	38
	Zahav Taxi LLC/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	38	$	38
	Bursa Cab Corp/Note 2	Term Loan		03/23/01		09/10/23		1		*			6.00	%					$	33	$	33
	Yme Transit Inc	Term Loan		08/14/13		08/14/16		1		*			2.80	%			$	619	$	31	$	33
	Y Mike Taxi Inc	Term Loan		01/06/11		11/01/16		1		*			3.10	%					$	30	$	31
	Y Meir Taxi Inc/Mbnk	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	30	$	30
	Y Michal Taxi Inc/Mbnk	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	30	$	30
	S&M Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	30	$	30
	N&A Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	30	$	30
	Y Mati Taxi Inc/Mbnk	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	30	$	30
	M.M.Y Taxi Inc	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	30	$	30
	Fido Cab Corp	Term Loan		08/14/13		08/14/16		1		*			2.80	%			$	524	$	26	$	28
	Barth Taxi LLC/Mbank	Term Loan		11/24/10		11/20/15		1		*			6.63	%					$	25	$	25
	Brandon Taxi LLC/Mbank	Term Loan		11/24/10		11/20/15		1		*			6.63	%					$	25	$	25
	Mohammed Abdu & H Hedru/Mbank	Term Loan		08/11/06		02/05/16		1		*			5.71	%					$	22	$	22
	Yegal Express Cab Co/Mbank	Term Loan		11/10/10		08/28/20		1		*			6.38	%					$	22	$	22
	Opera Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	21	$	21
	Ronen Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	21	$	21
	Mry Taxi Inc/Mbank	Term Loan		07/16/12		11/01/16		1		*			3.10	%					$	21	$	21
	Harold Torres ##	Term Loan		10/01/13		11/01/17		1		*			4.00	%			$	20	$	19	$	21
	Vosiem Hacking Corp	Term Loan		08/14/13		08/14/16		1		*			2.80	%			$	343	$	17	$	19
	Sonia M Trivino	Term Loan		02/22/12		02/22/15		1		*			10.00	%					$	13	$	14
	Nestor R Trivino	Term Loan		02/22/12		02/22/15		1		*			10.00	%					$	13	$	14
	Jean M Venord/Mbank	Term Loan		02/11/10		04/10/15		1		*			6.38	%					$	13	$	13
	Y.A.M. Associates Corp	Term Loan		04/30/13		10/24/15		1		*			4.25	%			$	15	$	11	$	13
	Guy Fouyolle ##	Term Loan		08/18/11		08/18/15		1		*			4.75	%					$	10	$	10
	Y.A.M. Associates Corp	Term Loan		11/14/11		05/14/14		1		*			6.00	%					$	6	$	6
	Joubert Toussaint/B Note	Term Loan		03/04/13		09/04/15		1		*			5.00	%			$	5	$	4	$	6
	Two Filoi Taxi Inc	Term Loan		01/15/04		01/15/14		1		*			5.75	%					$	4	$	4
	Jorge R Sahad/Mbank	Term Loan		04/27/10		02/03/15		1		*			8.83	%					$	4	$	4
Chicago								111		15	%		4.94	%	$	0	$	32,540	$	42,175	$	42,239
	Sweetgrass Peach &Chadwick Cap ##	Term Loan		08/28/12		08/28/15		1		1	%		5.50	%					$	1,696	$	1,689
	Regal Cab Company Et Al ##	Term Loan		08/29/13		08/29/16		1		1	%		5.00	%			$	1,400	$	1,395	$	1,391
	Chicago Medallion Nine LLC ##	Term Loan		05/02/12		05/02/17		1		1	%		5.75	%					$	1,373	$	1,368
	Lucky Seven Chicago One Inc ##	Term Loan		07/19/12		07/19/15		1		*			4.88	%					$	1,252	$	1,248
	Blue Eyes Cab Corp ##	Term Loan		07/19/12		07/19/15		1		*			4.88	%					$	1,252	$	1,247
	Oia Cab Corp ##	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	1,050	$	1,035	$	1,036
	Michael Two Cab Corp ##	Term Loan		07/12/12		04/25/16		1		*			4.50	%					$	1,037	$	1,033
	Johns Cabs Corp ##	Term Loan		04/12/12		04/12/15		1		*			5.00	%					$	1,014	$	1,010
	Harriet C Inc ##	Term Loan		10/19/12		10/19/16		1		*			5.25	%					$	918	$	915
	Chicago Medallion Two LLC ##	Term Loan		12/02/11		12/02/16		1		*			5.75	%					$	885	$	882
	Chicago Medallion Three LLC ##	Term Loan		12/02/11		12/02/16		1		*			5.75	%					$	885	$	882
	Chicago Medallion Four LLC ##	Term Loan		12/02/11		12/02/16		1		*			5.75	%					$	885	$	882
	Chicago Medallion One LLC ##	Term Loan		12/02/11		12/02/16		1		*			5.75	%					$	885	$	882
	Lmb Taxi V Inc ##	Term Loan		07/12/12		04/25/16		1		*			4.50	%					$	865	$	862
	Lmb Taxi Iv Inc ##	Term Loan		07/12/12		04/25/16		1		*			4.50	%					$	865	$	862
	Santorini Four Cab Corp ##	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	840	$	828	$	829

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest	Original Cost  of 2013 Acquisitions (5)		Cost  (4)		Fair Value
	Santorini Five Cab Corp ##	Term Loan		05/09/13		05/09/16		1		*		3.75	%		$	840	$	828	$	829
	Santorini Six Cab Corp ##	Term Loan		05/09/13		05/09/16		1		*		3.75	%		$	840	$	828	$	829
	Tribeca Two Cab Corp ##	Term Loan		05/09/13		05/09/16		1		*		3.75	%		$	840	$	828	$	829
	Stny Taxi Corp ##	Term Loan		05/09/13		05/09/16		1		*		3.75	%		$	840	$	828	$	829
	Carol Of Illinois Enterprises ##	Term Loan		03/28/13		03/28/18		1		*		5.50	%		$	701	$	689	$	688
	Chicago Medallion Seven LLC ##	Term Loan		05/02/12		05/02/17		1		*		5.75	%				$	686	$	684
	Coffee Taxi LLC ##	Term Loan		10/10/13		10/10/16		1		*		4.25	%		$	640	$	638	$	640
	Rahwa & Bros Cab Co, Et Al ##	Term Loan		01/08/13		01/08/18		1		*		5.50	%		$	657	$	640	$	639
	Ray Cab Company ##	Term Loan		08/29/13		08/29/16		1		*		5.00	%		$	600	$	598	$	600
	Met Cab Co ##	Term Loan		08/29/13		08/29/16		1		*		5.00	%		$	600	$	598	$	600
	N And M Valdof Hacking Corp	Term Loan		05/01/13		05/01/16		1		*		4.50	%		$	569	$	560	$	561
	Mikhalia Cabs Nine Inc ##	Term Loan		07/12/12		04/25/16		1		*		4.50	%				$	519	$	518
	Kayla Hacking Corp ##	Term Loan		07/12/12		04/25/16		1		*		4.50	%				$	519	$	518
	Natasha Transportation Inc	Term Loan		05/01/13		05/01/16		1		*		4.50	%		$	515	$	507	$	508
	Mike Taxi Corp	Term Loan		05/01/13		05/01/16		1		*		4.50	%		$	514	$	506	$	507
	Natalia Taxi Corp	Term Loan		05/01/13		05/01/16		1		*		4.50	%		$	513	$	505	$	506
	Dell Cab Corp ##	Term Loan		08/29/13		08/29/16		1		*		5.00	%		$	500	$	498	$	500
	Cozy Cab Co ##	Term Loan		08/29/13		08/29/16		1		*		5.00	%		$	500	$	498	$	500
	Moo Moo Cab Co ##	Term Loan		08/14/13		08/14/16		1		*		4.00	%		$	480	$	476	$	478
	Musanour Cab Inc ##	Term Loan		09/27/13		09/27/18		1		*		5.25	%		$	480	$	476	$	478
	Blue Valentine Cab Corp	Term Loan		04/10/13		04/10/16		1		*		4.00	%		$	475	$	468	$	469
	Tumblin Dice Taxi Inc	Term Loan		04/10/13		04/10/16		1		*		4.00	%		$	475	$	468	$	469
	Grapevine Taxi LLC ##	Term Loan		10/10/13		10/10/16		1		*		4.25	%		$	320	$	319	$	321
	Little Wing Cab Corp	Term Loan		04/10/13		04/10/16		1		*		4.00	%		$	319	$	314	$	315
	American Buffalo Cab Corp	Term Loan		04/10/13		04/10/16		1		*		4.00	%		$	317	$	312	$	313
	Dome Cab Corp ##	Term Loan		08/29/13		08/29/16		1		*		5.00	%		$	300	$	298	$	300
	Valasia Cab Co ##	Term Loan		01/18/12		01/18/15		1		*		5.00	%				$	268	$	267
	C Dortch Inc ##	Term Loan		12/04/13		12/04/16		1		*		4.25	%		$	265	$	265	$	267
	Taxi For Less Inc	Term Loan		05/06/13		05/06/17		1		*		5.25	%		$	265	$	262	$	264
	Chicago Seven Inc/Mbnk	Term Loan		07/19/12		07/19/15		1		*		7.25	%				$	255	$	255
	Karbala Express Inc ##	Term Loan		02/26/13		02/26/18		1		*		6.00	%		$	250	$	246	$	246
	Taxi For Less Inc ##	Term Loan		09/20/12		09/20/16		1		*		5.25	%				$	244	$	244
	Les & Thera LLC	Term Loan		05/08/13		05/08/17		1		*		5.25	%		$	245	$	242	$	244
	Zeyrefda Inc ##	Term Loan		05/17/13		05/17/18		1		*		5.50	%		$	245	$	241	$	243
	Nakfa Corp ##	Term Loan		06/17/13		06/17/18		1		*		4.88	%		$	245	$	241	$	243
	Tekezze Inc	Term Loan		12/11/13		12/11/18		1		*		5.00	%		$	240	$	240	$	242
	Adom Enterprise, Inc ##	Term Loan		09/27/13		09/27/18		1		*		5.25	%		$	240	$	239	$	241
	Tad Taxi Co ##	Term Loan		11/13/13		11/13/18		1		*		5.00	%		$	240	$	239	$	241
	Interwoodex Inc ##	Term Loan		11/07/13		11/07/18		1		*		5.00	%		$	240	$	239	$	241
	Shere Corp ##	Term Loan		07/26/13		07/26/18		1		*		5.25	%		$	240	$	238	$	240
	Tahoora Transportation Inc. ##	Term Loan		07/26/13		07/26/18		1		*		5.25	%		$	240	$	238	$	240
	Aniba Management & Services In ##	Term Loan		09/27/13		09/27/18		1		*		5.25	%		$	240	$	238	$	240
	Helen Habte Corp ##	Term Loan		10/01/13		10/01/18		1		*		5.25	%		$	240	$	238	$	240
	Alex Z Cab Corp	Term Loan		04/22/13		04/22/18		1		*		5.50	%		$	240	$	236	$	238
	Asmara Inc ##	Term Loan		04/11/13		04/11/18		1		*		5.50	%		$	240	$	236	$	238
	Three Kids Corp	Term Loan		04/15/13		04/15/18		1		*		5.50	%		$	236	$	232	$	234
	Nike Yomi Inc ##	Term Loan		08/06/13		08/06/18		1		*		5.25	%		$	233	$	232	$	234
	Nour Enterprise Inc ##	Term Loan		09/16/13		09/16/18		1		*		5.75	%		$	230	$	228	$	230
	Yenemekoya Inc ##	Term Loan		06/28/13		06/28/18		1		*		5.25	%		$	225	$	222	$	224
	Showcase Sports Management Cor ##	Term Loan		01/22/10		01/11/16		1		*		5.00	%				$	223	$	222
	Alkarim Chicago Inc ##	Term Loan		11/27/13		11/27/18		1		*		5.50	%		$	220	$	219	$	221
	Rahel Express Inc	Term Loan		12/27/13		12/27/18		1		*		5.25	%		$	205	$	205	$	207
	Jiffy Cab Co ##	Term Loan		08/29/13		08/29/16		1		*		5.00	%		$	200	$	199	$	201
	Pireas Taxi Corp ##	Term Loan		06/07/13		06/07/16		1		*		4.50	%		$	200	$	198	$	200
	Life Cab Corp ##	Term Loan		09/18/13		09/18/18		1		*		5.25	%		$	193	$	192	$	194
	Kalib 2010 Inc ##	Term Loan		07/16/13		07/16/17		1		*		5.50	%		$	180	$	178	$	180
	Naneffe Inc ##	Term Loan		03/15/13		03/15/18		1		*		5.50	%		$	177	$	174	$	175
	Alem B Cab Inc ##	Term Loan		01/22/13		01/22/18		1		*		5.50	%		$	177	$	172	$	173
	Annabelle Cab Corporation ##	Term Loan		07/30/12		07/30/16		1		*		5.75	%				$	172	$	172
	Tedom Inc	Term Loan		10/29/12		10/29/17		1		*		5.50	%				$	168	$	170
	Adi Express Inc ##	Term Loan		09/21/12		09/21/17		1		*		5.75	%				$	165	$	166
	Wubshet Inc ##	Term Loan		09/25/13		09/25/18		1		*		5.25	%		$	160	$	159	$	161
	Semhar Corp ##	Term Loan		01/31/12		01/31/17		1		*		5.50	%				$	157	$	157

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions  (5)		Cost  (4)		Fair Value
	Significant Trans Inc ##	Term Loan		04/06/12		04/06/17		1		*			6.50	%					$	156	$	157
	Harris 6741 Inc	Term Loan		03/02/11		03/02/16		1		*			5.50	%					$	145	$	146
	Jpg Cab Corp	Term Loan		04/23/12		04/23/17		1		*			6.50	%					$	143	$	144
	Sabina Cab Inc	Term Loan		04/19/13		04/19/18		1		*			5.50	%			$	140	$	137	$	139
	Asmara Cab Company ##	Term Loan		12/01/11		12/01/16		1		*			6.00	%					$	131	$	132
	Ultra Investment Corp ##	Term Loan		03/22/11		03/22/16		1		*			6.50	%					$	127	$	127
	Antar Trans Inc	Term Loan		04/23/13		04/23/18		1		*			5.50	%			$	124	$	122	$	124
	Delina Cab Inc	Term Loan		01/22/13		01/22/18		1		*			5.50	%			$	125	$	120	$	122
	Bedford Cab Two Corp	Term Loan		07/30/10		03/14/16		1		*			4.50	%					$	117	$	117
	Imc Cab Corp	Term Loan		08/27/10		03/14/16		1		*			4.50	%					$	115	$	115
	Moses J Frank	Term Loan		04/26/13		04/26/18		1		*			7.00	%			$	107	$	106	$	108
	Yemi Taxi Corp ##	Term Loan		08/01/13		08/01/18		1		*			5.25	%			$	100	$	98	$	100
	Tigray Cab Inc	Term Loan		03/28/13		03/28/18		1		*			5.50	%			$	95	$	92	$	94
	Paik Cab Co	Term Loan		05/26/10		05/26/15		1		*			8.50	%					$	93	$	93
	Measho Cab Corp	Term Loan		06/16/11		06/16/16		1		*			5.50	%					$	91	$	92
	Addis Flower Taxi Cab Service	Term Loan		05/23/11		05/23/16		1		*			6.50	%					$	80	$	81
	Sny Cab Inc ##	Term Loan		12/14/11		12/14/16		1		*			6.00	%					$	75	$	76
	Tyrone Henderson	Term Loan		06/25/13		06/25/18		1		*			7.25	%			$	68	$	67	$	69
	Any Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	1,260	$	64	$	65
	Deka Cab Corp (Chicago)	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	1,050	$	54	$	55
	Hudson Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	1,050	$	54	$	55
	Tribeca Three Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	840	$	43	$	44
	Deka Three Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	840	$	43	$	44
	Santorini Two Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	840	$	43	$	44
	Laight Taxi Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	840	$	41	$	42
	Madison Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	840	$	41	$	42
	Francis King Boat Inc	Term Loan		04/17/13		04/17/18		1		*			5.50	%			$	40	$	36	$	38
	Ali Taxi Corp ##	Term Loan		08/13/13		08/13/18		1		*			5.25	%			$	35	$	34	$	36
	Greenwich Cab Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	630	$	32	$	33
	Any Cab Two Corp	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	420	$	22	$	23
	St Petersburg Taxi LLC	Term Loan		05/09/13		05/09/16		1		*			3.75	%			$	420	$	21	$	22
	Mai Sheka Inc	Term Loan		06/27/11		06/27/16		1		*			5.50	%					$	18	$	19
Newark								106		8	%		5.58	%	$	0	$	13,103	$	21,681	$	21,792
	Rachel LLC	Term Loan		04/25/13		04/25/18		1		*			5.25	%			$	743	$	732	$	732
	K And N Taxi LLC	Term Loan		09/26/13		09/26/16		1		*			4.80	%			$	650	$	647	$	649
	A.M.E. Transit Limited Liabili ##	Term Loan		01/10/13		01/10/18		1		*			5.25	%			$	600	$	589	$	588
	Saintvillien & Larochelle LLC	Term Loan		11/14/13		11/14/18		1		*			4.90	%			$	350	$	349	$	351
	P.C. Taxi Corp	Term Loan		06/13/13		06/13/17		1		*			6.00	%			$	317	$	313	$	315
	Clair 282 LLC ##	Term Loan		09/12/13		09/12/17		1		*			5.00	%			$	310	$	308	$	310
	Cmgv #2 Taxi Inc ##	Term Loan		12/12/13		12/12/16		1		*			4.75	%			$	300	$	300	$	301
	Carvin Taxi Inc ##	Term Loan		12/12/13		12/12/16		1		*			4.75	%			$	300	$	300	$	301
	Dern #2 Taxi Inc	Term Loan		12/12/13		12/12/16		1		*			4.75	%			$	300	$	300	$	301
	1 Hope LLC	Term Loan		09/26/13		09/26/17		1		*			5.50	%			$	300	$	299	$	301
	Romise Taxi LLC	Term Loan		04/25/13		04/25/18		1		*			5.25	%			$	300	$	296	$	298
	Bidon Taxi Inc ##	Term Loan		11/14/13		11/14/17		1		*			5.25	%			$	297	$	296	$	298
	Lagrande Taxi Corp ##	Term Loan		02/14/13		02/14/17		1		*			5.50	%			$	300	$	296	$	297
	Owned By Mr Vincent LLC	Term Loan		01/10/13		01/10/17		1		*			5.50	%			$	300	$	295	$	297
	B Gene And Fil LLC	Term Loan		01/10/13		01/10/17		1		*			5.25	%			$	300	$	295	$	297
	Center Taxi LLC ##	Term Loan		08/15/13		08/15/17		1		*			5.50	%			$	296	$	293	$	295
	Hg & Zg Corporation	Term Loan		10/25/12		10/25/17		1		*			5.25	%					$	285	$	286
	Dorvilma LLC ##	Term Loan		02/14/13		02/14/16		1		*			5.25	%			$	290	$	285	$	285
	Magdala Corp ##	Term Loan		08/16/13		08/16/17		1		*			5.25	%			$	283	$	281	$	281
	Aspil Taxi #2 Corp	Term Loan		12/12/13		12/12/17		1		*			4.50	%			$	280	$	280	$	281
	United Seven Trans Inc	Term Loan		06/14/12		06/14/17		1		*			5.75	%					$	278	$	280
	One At A Time Time Transport I ##	Term Loan		09/20/12		09/20/16		1		*			5.25	%					$	279	$	279
	Jovin Taxi Inc ##	Term Loan		01/10/13		01/10/17		1		*			5.00	%			$	280	$	275	$	277
	Levangile Milcent ##	Term Loan		12/13/12		12/13/16		1		*			5.25	%					$	277	$	275
	Maitre Joa LLC	Term Loan		09/12/13		09/12/17		1		*			5.25	%			$	274	$	272	$	274
	Simone Francois ##	Term Loan		04/25/13		04/25/17		1		*			5.50	%			$	273	$	269	$	271
	Mido Taxi Inc ##	Term Loan		10/25/12		10/25/16		1		*			5.25	%					$	270	$	270
	Kesh & Kelo LLC ##	Term Loan		04/25/13		04/25/17		1		*			5.00	%			$	275	$	267	$	269
	Hg & Zg Corporation	Term Loan		10/25/12		10/25/17		1		*			5.25	%					$	266	$	267

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized Interest	Original Cost  of 2013 Acquisitions  (5)		Cost  (4)		Fair Value
	Three Sons 2 Taxi Inc ##	Term Loan		05/09/13		05/09/17		1		*		5.50	%		$	264	$	259	$	261
	St Abraam Corp	Term Loan		04/25/13		04/22/18		1		*		5.00	%		$	260	$	255	$	256
	Alix Junior Exavier LLC ## &	Term Loan		05/09/13		05/09/17		1		*		5.25	%		$	255	$	252	$	253
	Rowfida Incorporated ##	Term Loan		12/12/13		12/12/17		1		*		4.75	%		$	250	$	250	$	252
	Timax 426 Inc	Term Loan		11/14/13		11/14/17		1		*		5.25	%		$	250	$	249	$	251
	Les & Thera Transportation LLC	Term Loan		07/12/13		07/12/17		1		*		5.25	%		$	249	$	246	$	248
	Sonson Taxi Inc ##	Term Loan		10/25/12		10/25/17		1		*		5.50	%				$	243	$	244
	Luckner Etienne ##	Term Loan		10/25/12		10/25/16		1		*		5.50	%				$	242	$	243
	T-Bozo Trans LLC	Term Loan		04/25/13		04/25/17		1		*		5.25	%		$	245	$	240	$	242
	Grec Taxi Corp	Term Loan		12/08/11		12/08/15		1		*		6.00	%				$	237	$	238
	Anasta.S. Taxi LLC	Term Loan		04/25/13		04/25/17		1		*		5.25	%		$	236	$	231	$	233
	Wilner Novaly	Term Loan		08/12/10		07/22/14		1		*		7.50	%				$	231	$	231
	M.K. Taxi Inc	Term Loan		04/14/11		04/14/15		1		*		6.75	%				$	230	$	231
	Rosemond Mathurin ##	Term Loan		12/13/12		12/13/17		1		*		5.25	%				$	230	$	231
	Mpaul 596 LLC	Term Loan		04/25/13		04/25/17		1		*		5.25	%		$	230	$	227	$	229
	Ekny Fils-Aime ##	Term Loan		10/17/11		10/17/16		1		*		6.25	%				$	226	$	227
	Jacob Joseph	Term Loan		04/25/13		04/25/17		1		*		5.00	%		$	230	$	224	$	226
	Zoune Taxi #2 Inc ##	Term Loan		01/10/13		01/10/17		1		*		5.75	%		$	230	$	224	$	226
	S.J.L.T Joujean Inc	Term Loan		03/15/12		03/15/16		1		*		6.00	%				$	221	$	222
	Dmd Taxi LLC	Term Loan		09/26/13		09/26/17		1		*		4.75	%		$	220	$	218	$	220
	Erick Fleuridor	Term Loan		07/19/12		07/19/15		1		*		5.50	%				$	215	$	216
	Boss Carmel Taxi Inc ##	Term Loan		11/14/13		11/14/17		1		*		5.50	%		$	213	$	213	$	215
	Joseph Duverneau ##	Term Loan		02/17/11		02/17/15		1		*		7.00	%				$	209	$	209
	Joseph And Jamar Inc ##	Term Loan		10/07/10		10/07/14		1		*		7.50	%				$	206	$	206
	Semsema Trans Corporation	Term Loan		05/17/12		05/17/17		1		*		6.00	%				$	204	$	206
	Chavensky Cab Inc	Term Loan		12/12/13		12/12/17		1		*		5.00	%		$	200	$	200	$	202
	Stany Inc	Term Loan		05/12/11		05/12/15		1		*		6.75	%				$	200	$	201
	United Seven Trans Inc	Term Loan		06/14/12		06/14/17		1		*		5.75	%				$	196	$	198
	Thomas Lahens	Term Loan		07/11/13		07/11/17		1		*		4.90	%		$	195	$	191	$	192
	Herve Dameus & James Dameus ##	Term Loan		01/25/11		01/20/15		1		*		7.50	%				$	187	$	187
	Micheline Luxeus ##	Term Loan		12/13/12		12/13/17		1		*		5.50	%				$	185	$	186
	Mfc Taxi Corp ##	Term Loan		09/20/11		09/19/16		1		*		6.50	%				$	185	$	185
	Chell 11 Corp	Term Loan		08/12/10		08/05/14		1		*		7.00	%				$	183	$	183
	Serge Previlon LLC	Term Loan		08/15/13		08/15/18		1		*		5.25	%		$	182	$	179	$	181
	Erick Fleuridor	Term Loan		10/25/12		10/25/16		1		*		5.50	%				$	177	$	179
	Marie Jeanne Philemon	Term Loan		07/07/11		07/07/15		1		*		6.50	%				$	173	$	174
	Just 8 Taxi #2 Inc ##	Term Loan		09/20/11		09/19/15		1		*		6.00	%				$	169	$	169
	Cassandra & Joseph Sejour Inc	Term Loan		04/09/10		04/09/14		1		*		7.75	%				$	167	$	167
	Monise Lubintus	Term Loan		12/12/13		12/12/17		1		*		4.50	%		$	166	$	166	$	167
	Saintilia Charles ##	Term Loan		09/13/10		09/13/14		1		*		7.50	%				$	165	$	165
	Adieula Figaro ##	Term Loan		10/06/11		10/06/15		1		*		6.00	%				$	160	$	160
	Charata Taxi Inc	Term Loan		12/12/13		12/12/17		1		*		4.50	%		$	158	$	158	$	160
	Pierre Family 084 LLC	Term Loan		07/12/13		07/12/17		1		*		5.00	%		$	160	$	155	$	157
	A.N.T.K. LLC	Term Loan		04/25/13		04/25/18		1		*		5.50	%		$	156	$	153	$	155
	Saintvillien & Larochelle LLC	Term Loan		11/14/13		11/14/18		1		*		4.63	%		$	152	$	151	$	153
	Antoines Dortin ##	Term Loan		08/12/10		08/12/14		1		*		7.50	%				$	148	$	148
	R & Z Trans Service Inc	Term Loan		01/10/13		01/10/23		1		*		5.00	%		$	160	$	145	$	147
	Ahmad Taxi Inc	Term Loan		06/09/11		06/09/16		1		*		6.75	%				$	144	$	145
	424 Taxi LLC	Term Loan		01/20/12		01/20/17		1		*		7.00	%				$	143	$	144
	Forward Taxi Corp	Term Loan		03/15/12		03/15/17		1		*		6.00	%				$	139	$	141
	Charles Agesilas ##	Term Loan		07/10/09		07/10/14		1		*		7.50	%				$	139	$	138
	Yves Frantz Philemon	Term Loan		01/20/11		01/20/15		1		*		7.50	%				$	129	$	130
	Renelus Dieujuste ##	Term Loan		12/03/09		11/13/14		1		*		5.25	%				$	129	$	128
	0127 Incorporated ##	Term Loan		07/19/12		07/19/16		1		*		5.50	%				$	127	$	128
	Cosmos 2 Taxi Corporation ##	Term Loan		11/14/13		11/14/18		1		*		5.00	%		$	124	$	123	$	125
	Alhayat Taxi Inc	Term Loan		02/14/13		02/14/17		1		*		5.00	%		$	131	$	124	$	123
	Olga Morales	Term Loan		03/15/12		03/15/16		1		*		6.00	%				$	116	$	117
	Hercule Jean-Baptiste	Term Loan		06/13/13		06/13/17		1		*		5.00	%		$	116	$	112	$	114
	E-Z-4-U Inc	Term Loan		01/19/12		01/19/16		1		*		6.00	%				$	107	$	108
	Don Taxi Corp ##	Term Loan		09/02/10		09/02/14		1		*		7.50	%				$	105	$	105
	Louibert Julien	Term Loan		06/19/09		06/19/14		1		*		7.00	%				$	104	$	104
	Gerald Jean-Louis ##	Term Loan		04/25/13		04/25/17		1		*		5.25	%		$	103	$	101	$	103
	Clameus Estimable	Term Loan		05/06/10		05/06/14		1		*		7.50	%				$	87	$	87

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions  (5)		Cost  (4)		Fair Value
	Praise The Lord Taxi Inc	Term Loan		05/20/11		05/20/15		1		*			6.75	%					$	85	$	86
	Gethsemane Inc	Term Loan		02/27/09		02/27/14		1		*			7.68	%					$	85	$	85
	Pola Trans Inc ##	Term Loan		07/19/12		07/19/17		1		*			5.50	%					$	80	$	80
	Mr Clean Sdam Taxi LLC	Term Loan		06/09/11		06/09/15		1		*			6.75	%					$	78	$	79
	Pierre Sterling	Term Loan		01/19/12		01/19/17		1		*			6.00	%					$	61	$	62
	Pegy Taxi Corp	Term Loan		02/17/11		02/17/17		1		*			6.50	%					$	61	$	62
	Reyes Okoroagu ##	Term Loan		11/14/13		11/14/17		1		*			4.75	%			$	50	$	50	$	52
	Webert Joseph	Term Loan		02/17/11		02/17/17		1		*			6.50	%					$	49	$	50
	Jean Belony	Term Loan		06/09/11		06/09/16		1		*			6.50	%					$	42	$	43
	Saeiid LLC	Term Loan		09/06/11		09/06/16		1		*			6.25	%					$	37	$	38
	100 Taxi #2 Corp	Term Loan		07/25/08		07/25/15		1		*			8.00	%					$	32	$	32
	Abanob Trans Inc	Term Loan		06/14/07		06/14/14		1		*			8.00	%					$	12	$	12
	Graciela Carbajal	Term Loan		05/10/07		05/10/14		1		*			8.00	%					$	6	$	6
	Marie C Taxi Inc	Term Loan		04/12/07		04/12/14		1		*			8.00	%					$	7	$	7
Boston								53		9	%		4.91	%	$	0	$	11,642	$	23,622	$	23,656
	Chiso Trans Inc	Term Loan		11/26/13		11/26/16		1		*			4.25	%	$	0	$	845	$	845	$	847
	Chiso Trans Inc	Term Loan		04/20/12		04/20/15		1		*			5.50	%	$	0			$	599	$	600
	Sasun Cab Inc	Term Loan		02/20/13		02/20/16		1		*			4.50	%	$	0	$	975	$	951	$	953
	Southside Enterprises Inc ##	Term Loan		12/28/12		12/28/16		1		*			4.00	%	$	0			$	903	$	901
	Mish Inc ##	Term Loan		12/28/12		12/28/16		1		*			4.00	%	$	0			$	901	$	899
	Johnson Holdings Inc	Term Loan		07/23/13		07/23/16		1		*			4.25	%	$	0	$	790	$	783	$	785
	Chidi Trans Inc ##	Term Loan		11/17/11		11/17/14		1		*			6.00	%	$	0			$	680	$	678
	Ngozi Trans Inc.	Term Loan		12/31/12		12/31/15		1		*			4.50	%	$	0			$	641	$	643
	Chidi Trans Inc	Term Loan		04/20/12		04/20/15		1		*			5.50	%	$	0			$	634	$	635
	Arinze Trans Inc	Term Loan		02/05/10		02/05/16		1		*			4.25	%	$	0			$	595	$	595
	Arinze Trans Inc	Term Loan		04/20/12		04/20/15		1		*			5.50	%	$	0			$	593	$	594
	Margo Cab Inc ##	Term Loan		01/16/13		01/16/16		1		*			4.00	%	$	0	$	650	$	573	$	572
	Chenal Cab Inc	Term Loan		12/03/13		12/03/16		1		*			5.00	%	$	0	$	550	$	550	$	552
	Britney Cab Inc	Term Loan		12/18/13		12/18/16		1		*			5.00	%	$	0	$	550	$	550	$	552
	Farb Inc ##	Term Loan		02/20/13		02/20/16		1		*			5.13	%	$	0	$	550	$	542	$	541
	Jason Cab Inc ##	Term Loan		03/15/13		03/15/16		1		*			4.88	%	$	0	$	530	$	518	$	520
	Memory Cab Company Inc ##	Term Loan		01/14/11		01/14/14		1		*			6.25	%	$	0			$	518	$	516
	Gabriel Trans Holdings Inc	Term Loan		04/20/12		04/20/15		1		*			5.50	%	$	0			$	511	$	512
	B&M Cab Inc ##	Term Loan		12/20/13		12/20/16		1		*			4.13	%	$	0	$	500	$	500	$	500
	Myra Inc	Term Loan		08/12/13		08/12/16		1		*			5.75	%	$	0	$	500	$	497	$	499
	Saint Inc	Term Loan		08/12/13		08/12/16		1		*			5.75	%	$	0	$	500	$	497	$	499
	S.P.B. Taxi Inc	Term Loan		09/18/13		09/18/16		1		*			5.75	%	$	0	$	500	$	497	$	499
	Bailey Cab Inc ##	Term Loan		11/09/12		11/09/15		1		*			5.50	%	$	0			$	495	$	496
	Ruth Cab Inc	Term Loan		11/26/13		11/26/16		1		*			4.25	%	$	0	$	470	$	470	$	472
	Odat Taxi, Inc. ##	Term Loan		03/07/13		03/07/16		1		*			5.50	%	$	0	$	480	$	471	$	471
	Theo Cab Inc ##	Term Loan		03/07/13		03/07/16		1		*			5.50	%	$	0	$	480	$	471	$	471
	Tomorrow’S Tree Inc	Term Loan		10/08/13		10/08/18		1		*			4.25	%	$	0	$	465	$	464	$	466
	Dadou Cab Inc	Term Loan		11/16/12		11/16/15		1		*			5.38	%	$	0			$	455	$	457
	Joyful Ride Inc ##	Term Loan		12/28/12		12/28/16		1		*			4.00	%	$	0			$	450	$	450
	P&P Dumerant Corp ##	Term Loan		10/25/13		10/25/16		1		*			4.25	%	$	0	$	450	$	448	$	450
	Eldali Transportation Inc	Term Loan		11/09/12		11/26/16		1		*			4.25	%	$	0			$	448	$	448
	Jv Taxi Inc ##	Term Loan		03/15/13		03/15/16		1		*			4.75	%	$	0	$	450	$	440	$	440
	Djbell Love Inc ##	Term Loan		09/27/12		09/27/15		1		*			5.00	%	$	0			$	425	$	424
	H And H Taxi Inc ##	Term Loan		10/11/13		10/11/16		1		*			4.25	%	$	0	$	385	$	383	$	385
	Ngozi Trans Inc. ##	Term Loan		04/20/12		04/20/15		1		*			5.50	%	$	0			$	356	$	355
	Jesus Denis Cab Inc	Term Loan		03/22/13		03/22/16		1		*			4.50	%	$	0	$	355	$	347	$	349
	Jmf Cab Inc ##	Term Loan		03/27/12		03/27/15		1		*			5.70	%	$	0			$	341	$	340
	Urzal Taxi Inc	Term Loan		07/29/13		07/29/16		1		*			4.25	%	$	0	$	335	$	331	$	333
	Ngozi Trans Inc.	Term Loan		12/31/12		12/31/15		1		*			4.50	%	$	0			$	321	$	323
	Shemarjamalie Cab Inc ##	Term Loan		02/17/12		02/17/15		1		*			6.15	%	$	0			$	319	$	320
	Boband Cab Inc ##	Term Loan		11/06/12		11/06/15		1		*			4.75	%	$	0			$	294	$	293
	Louine Cab Inc	Term Loan		11/30/12		11/30/15		1		*			4.50	%	$	0			$	291	$	293
	Sarhad Coach Inc	Term Loan		07/23/13		05/25/16		1		*			4.00	%	$	0	$	292	$	288	$	290
	Jre Taxi Inc ##	Term Loan		08/26/11		08/26/14		1		*			6.00	%	$	0			$	282	$	281
	Phatricksey Cab Inc ##	Term Loan		07/14/11		07/14/14		1		*			5.50	%	$	0			$	259	$	258
	Chardon Taxi Inc	Term Loan		10/20/11		10/20/14		1		*			6.75	%	$	0			$	251	$	252
	Stanley & Rachelle Cab Inc	Term Loan		05/23/11		05/23/14		1		*			6.00	%	$	0			$	174	$	174

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions  (5)		Cost (4)		Fair Value
		Dabola Cab Inc ##	Term Loan		11/10/11		11/10/14		1		*			5.50	%	$	0			$	174	$	174
		Mwinkteana Cab Inc ##	Term Loan		05/10/11		05/10/14		1		*			6.00	%	$	0			$	157	$	157
		Kena Cab Inc	Term Loan		11/06/12		11/06/15		1		*			4.75	%	$	0			$	75	$	76
		Sasun Cab Inc	Term Loan		02/20/13		02/20/16		1		*			4.50	%	$	0	$	40	$	36	$	38
		Sunshine Cab Inc ##	Term Loan		06/12/07		06/12/18		1		*			5.00	%	$	0			$	22	$	22
		Marthine Cab Inc	Term Loan		09/17/10		09/17/14		1		*			6.25	%	$	0			$	6	$	6
Cambridge									14		2	%		5.06	%	$	0	$	3,850	$	6,008	$	6,043
		Gcf Taxi Inc, Et Al	Term Loan		12/30/13		12/30/16		1		1	%		6.00	%	$	0	$	1,398	$	1,397	$	1,417
		Gcf Taxi Inc	Term Loan		10/08/13		10/08/18		1		*			4.00	%	$	0	$	670	$	667	$	669
		Andrew Cab Inc And Saad Inc	Term Loan		03/29/13		03/29/16		1		*			4.88	%	$	0	$	425	$	417	$	419
		Patrick Cab Inc And Saad Inc	Term Loan		03/29/13		03/29/16		1		*			4.88	%	$	0	$	425	$	416	$	418
		Hope-Lynn Cabworks Inc ##	Term Loan		03/22/13		03/22/16		1		*			4.00	%	$	0	$	400	$	391	$	391
		Lynn Maha Taxi Inc	Term Loan		05/13/13		05/13/16		1		*			5.00	%	$	0	$	382	$	378	$	380
		Mgf Taxi Inc	Term Loan		05/06/11		05/06/14		1		*			6.50	%	$	0			$	365	$	365
		Desdunes Cab Inc	Term Loan		09/21/12		09/21/15		1		*			5.00	%	$	0			$	340	$	341
		Drumman Trans Inc	Term Loan		12/07/12		12/07/15		1		*			4.50	%	$	0			$	338	$	340
		Sam Taxi Inc	Term Loan		03/19/10		03/10/16		1		*			4.25	%	$	0			$	300	$	300
		Marcia And Everton Cab Inc ##	Term Loan		11/09/12		11/09/15		1		*			4.00	%	$	0			$	289	$	289
		Walger Inc	Term Loan		01/26/12		01/26/15		1		*			5.50	%	$	0			$	281	$	282
		Raad Taxi Inc	Term Loan		06/26/12		06/26/15		1		*			5.50	%	$	0			$	278	$	279
		Taxi Technology Inc ##	Term Loan		12/11/13		12/11/16		1		*			5.00	%	$	0	$	150	$	151	$	153
Other									12		0	%		6.52	%	$	0	$	860	$	1,178	$	1,184
		Komboya Trans Inc	Term Loan		04/23/13		04/23/16		1		*			5.25	%	$	0	$	267	$	264	$	266
		Tjp Inc ##	Term Loan		02/22/13		02/22/16		1		*			5.25	%	$	0	$	250	$	246	$	247
		Wiljean Marcelin &	Term Loan		08/21/13		09/01/23		1		*			6.75	%	$	0	$	171	$	171	$	173
		Jean C Mathurin/Norcal	Term Loan		01/15/13		02/01/18		1		*			8.50	%	$	0	$	172	$	167	$	167
		Hantin Trans/Aventura Taxi	Term Loan		06/16/10		06/16/17		1		*			8.25	%	$	0			$	115	$	116
		Zelalem S. Alemu	Term Loan		04/28/08		04/28/18		1		*			5.00	%	$	0			$	90	$	89
		Getrot Michel	Term Loan		03/07/08		03/23/14		1		*			7.75	%	$	0			$	46	$	46
		Elzira & Luc Cab Inc.	Term Loan		08/17/10		02/17/18		1		*			8.25	%	$	0			$	38	$	38
		Elysse Corporation	Term Loan		09/10/10		03/10/18		1		*			8.25	%	$	0			$	25	$	26
		Oddy Transportation Services I	Term Loan		11/26/07		11/27/14		1		*			8.00	%	$	0			$	7	$	7
		Odney Cab Inc/Mbank	Term Loan		12/22/10		12/22/15		1		*			11.50	%	$	0			$	7	$	7
		Durosier Xavier/Mbank	Term Loan		08/16/10		07/01/15		1		*			7.25	%	$	0			$	2	$	2
Total medallion loans ($233,789 pledged as collateral under borrowing arrangements)									654		109	%		4.02	%	$	0	$	195,973	$	297,618	$	297,861
Commercial Loans
Secured mezzanine (29% Minnesota, 10% North Carolina, 9% New York, 9% Oklahoma, 8% Texas,
7% Wisconsin, 6% Delaware, 6% Arizona, 4% Florida, 4% California, 4% Tennessee and 4% all other states) (2)
Manufacturing (56% of the total)	+	Bluff Manufacturing (interest rate includes PIK interest of 3.50%)	Term Loan		12/14/12		12/14/17		1		1	%		15.50	%	$	0			$	3,000	$	3,009
		Quaker Bakery (interest rate includes PIK interest of 5.00%)	Term Loan		03/28/12		03/28/17		1		1	%		17.00	%	$	243			$	2,843	$	2,834
		American Cylinder (interest rate includes PIK interest of 5.00%)	Term Loan		07/03/13		01/03/18		1		1	%		17.00	%	$	38	$	1,500	$	1,538	$	1,538
		American Cylinder	Term Loan		07/03/13		07/03/17		1		*			10.00	%	$	0	$	800	$	800	$	796
	+	Packaging Specialists (interest rate includes PIK interest of 6.00%)	Term Loan		04/01/08		12/31/14		1		1	%		14.00	%	$	224			$	2,214	$	2,214
		Dynamic Systems (interest rate includes PIK interest of 3.50%)	Term Loan		12/23/10		12/23/17		1		1	%		15.50	%	$	100			$	1,925	$	1,925
	+	PACA Foods &	Term Loan		12/31/10		12/31/15		1		1	%		13.00	%	$	0			$	2,375	$	1,774
		Process Fab & (interest rate includes PIK interest of 8.00%)	Term Loan		04/17/08		12/31/15		1		1	%		8.00	%	$	0			$	4,500	$	1,590
	+	RespirTech	Term Loan		04/25/12		04/25/17		1		1	%		12.00	%	$	0			$	1,500	$	1,507
		Orchard &	Term Loan		03/10/99		03/31/10		1		1	%		13.00	%	$	0			$	1,390	$	1,390
	+	Door Engineering	Term Loan		12/15/04		12/31/14		1		*			13.00	%	$	0			$	1,050	$	1,046
	+	Storflex (interest rate includes PIK interest of 2.00%)	Term Loan		07/17/12		07/17/17		1		*			14.00	%	$	0			$	1,000	$	1,010
	+	Waltek &	Term Loan		03/31/06		03/31/14		1		*			12.00	%	$	20			$	992	$	992
	+	DMI Acquisition (interest rate includes PIK interest of 2.00%)	Term Loan		06/22/12		06/22/15		1		*			14.00	%	$	20			$	645	$	651

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions  (5)		Cost (4)		Fair Value
Information (14% of the total)		US Internet	Term Loan		06/12/13		06/12/20		1		1	%		14.50	%	$	0	$	3,000	$	3,000	$	3,019
		Centare (interest rate includes PIK interest of 2.00%)	Term Loan		08/30/13		08/30/18		1		1	%		14.00	%	$	0	$	2,500	$	2,500	$	2,482
Arts, Entertainment, and Recreation (10% of the total)		RPAC Racing (interest rate includes PIK interest of 10.00%)	Term Loan		11/19/10		11/19/15		1		2	%		10.00	%	$	1,091			$	4,131	$	4,131
Administrative and Support Services (9% of the total)		Staff One &	Term Loan		06/30/08		03/31/15		1		1	%		3.00	%	$	0			$	2,964	$	2,964
		Staff One &	Term Loan		09/15/11		03/31/15		1		*			3.00	%	$	0			$	485	$	485
		Ecological Systems (ESI) &	Term Loan		01/14/05		01/14/10		1		*			0.00	%	$	44			$	628	$	43
Professional, Scientific, and Technical Services (6% of the total)	+	Portu-Sunberg	Term Loan		12/31/12		12/31/17		1		1	%		12.00	%	$	0			$	2,500	$	2,511
		McCaully &	Term Loan		10/26/11		11/01/14		1		*			10.00	%	$	46			$	46	$	46
Health Care and Social Assistance (2% of the total)	+	Will Vision &	Term Loan		06/28/07		06/30/17		1		*			7.00	%	$	0			$	1,078	$	760
Accommodation and Food Services (2% of the total)		Javier & David &	Term Loan		11/05/10		11/05/15		1		*			9.25	%	$	0			$	520	$	518
		Star &	Term Loan		06/30/00		10/01/15		1		*			10.00	%	$	0			$	958	$	59
		Multiconcepts &	Term Loan		06/30/00		10/01/15		1		*			10.00	%	$	0			$	1,051	$	53
Retail Trade (1% of the total)		Retail &	Term Loan		06/30/00		10/01/15		1		*			10.00	%	$	0			$	467	$	91
Total secured mezzanine (2)									27		14	%		11.69	%	$	1,826	$	7,800	$	46,100	$	39,438
Asset-based (74% New York, 20% New Jersey and 6% all other states)
Wholesale Trade (59% of the total)		Capitalsea, LLC ##	Revolving line of credit		11/07/05		11/07/14		1		1	%		4.50	%					$	2,902	$	2,799
		Newburg Egg Corp. ##	Revolving line of credit		03/16/99		03/16/14		1		*			6.00	%					$	345	$	334
		Atlantic Veal & Lamb, Inc. ##	Revolving line of credit		08/15/01		08/15/14		1		*			5.50	%					$	310	$	300
		REL International	Revolving line of credit		04/11/07		04/11/14		1		*			5.25	%					$	272	$	259
		Pride of Neptune, Inc. ##	Revolving line of credit		01/14/02		01/14/14		1		*			4.75	%					$	250	$	242
		Magic Moments &	Revolving line of credit		01/23/08		01/23/14		1		*			6.75	%					$	190	$	183
		Snow Shoe Refractories, LLC	Revolving line of credit		11/30/11		11/30/14		1		*			6.00	%					$	120	$	109
		Southstream Seafoods, Inc	Revolving line of credit		06/01/12		06/01/14		1		*			6.25	%					$	90	$	84
		Banner Smoked Fish, Inc. ##	Revolving line of credit		03/27/01		03/27/14		1		*			5.25	%					$	54	$	52
		Two Cousins Fish Market, Inc.	Revolving line of credit		01/23/99		01/23/14		1		*			5.25	%					$	23	$	22
		Benco Inc.	Revolving line of credit		11/06/13		11/06/14		1		*			6.25	%			$	26	$	32	$	35
Transportation and Warehousing (14% of the total)		Fleet Radio Dispatch Corp. ##	Revolving line of credit		12/31/01		12/31/14		1		*			6.00	%					$	765	$	740
		Chauffeured Services Unlimited &	Revolving line of credit		05/02/06		05/02/14		1		*			8.00	%					$	205	$	198
		Big Daddy Drayage, Inc.	Revolving line of credit		10/18/06		10/18/14		1		*			5.25	%					$	146	$	133
Retail Trade (11% of the total)		The Dependable Food Corp. ##	Revolving line of credit		10/19/98		10/19/14		1		*			4.75	%					$	460	$	445
		CNC Associated N.Y.	Revolving line of credit		07/24/01		07/24/14		1		*			5.75	%					$	170	$	164
		Cyrus R. Fox, Inc. ##	Revolving line of credit		08/31/06		08/31/14		1		*			5.75	%					$	149	$	136
		Colt, Inc.	Revolving line of credit		10/12/04		10/12/14		1		*			6.44	%					$	47	$	42
		I & E Tire Corp. ##	Revolving line of credit		12/21/98		12/21/14		1		*			5.75	%					$	26	$	25
Construction (6% of the total)		Triple A. Supplies, Inc. ##	Revolving line of credit		07/20/99		07/20/14		1		*			5.75	%					$	256	$	248
		Walsh Electrical Contracting	Revolving line of credit		02/26/13		02/26/14		1		*			6.25	%			$	363	$	144	$	142
		Mathusek, Incorporated	Revolving line of credit		07/23/13		07/23/14		1		*			6.75	%			$	10	$	28	$	32
Manufacturing (5% of the total)		Absecon Mills, Inc. ##	Revolving line of credit		07/07/04		07/07/14		1		*			6.25	%					$	210	$	197
		Douglass Industries, Inc. ##	Revolving line of credit		07/07/04		07/07/14		1		*			6.25	%					$	128	$	122
		Matthew Die Division LLC	Revolving line of credit		02/18/10		02/18/14		1		*			6.25	%					$	28	$	26
		JLM Couture Inc.	Revolving line of credit		06/22/10		06/22/14		1		*			5.75	%					$	11	$	8
		Fine Line Graphics, Inc.	Revolving line of credit		11/29/05		11/29/14		1		*			6.50	%					$	11	$	1

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost  of 2013 Acquisitions  (5)		Cost (4)		Fair Value
Health Care and Social Assistance (2% of the total)	Mrs. Mary’s Place HCS Inc. ##	Revolving line of credit		10/02/07		10/02/14		1		*			5.75	%					$	125	$	109
	Heart to Heart Health Care	Revolving line of credit		11/09/12		11/09/14		1		*			5.82	%					$	48	$	43
Administrative and Support Services (2% of the total)	Raritan Building Service Corp	Revolving line of credit		06/30/07		06/30/14		1		*			5.50	%					$	159	$	151
Finance and Insurance (1% of the total)	RAS Group, Inc. &	Revolving line of credit		02/14/08		02/14/14		1		*			5.50	%					$	99	$	94
Total asset-based ($5,977 pledged as collateral under borrowing arrangements)								31		3	%		5.32	%	$	0	$	399	$	7,803	$	7,475
Other secured commercial (73% New York, 26% New Jersey, 1% Illinois)
Retail Trade (77% of the total)	Medallion Fine Art Inc (interest rate includes PIK interest of 12.00%)	Term Loan		12/17/12		12/17/17		1		2	%		12.00	%	$	376			$	5,977	$	5,977
	Guyonamar Food Corp	Term Loan		03/17/11		03/17/16		1		*			9.25	%					$	651	$	647
	Antonio Rosado	Term Loan		03/15/12		03/15/17		1		*			9.50	%					$	599	$	595
	La Conga Food Market Inc	Term Loan		10/09/12		01/09/20		1		*			9.00	%					$	542	$	537
	Anthony Supermarket LLC	Term Loan		04/02/13		07/02/18		1		*			9.00	%			$	500	$	467	$	463
	La Conga Meat Market Inc	Term Loan		12/17/13		03/17/20		1		*			9.00	%			$	400	$	400	$	396
	Ar Supermarket LLC	Term Loan		08/02/13		08/02/18		1		*			8.50	%			$	375	$	367	$	364
	616 Broadway LLC	Term Loan		02/10/11		12/17/14		1		*			8.50	%					$	322	$	323
	F.J.P. Meat Market Inc	Term Loan		02/06/12		09/06/17		1		*			9.50	%					$	286	$	285
	Drr Enterprises LLC	Term Loan		10/28/08		10/17/18		1		*			10.50	%					$	159	$	159
	Moderne Barn Wines&Spirits Inc	Term Loan		05/09/13		05/09/18		1		*			4.75	%			$	150	$	134	$	135
	New Era Meat Supermarket LLC	Term Loan		09/13/06		09/16/16		1		*			10.00	%					$	79	$	79
	Mi Favorita Food Corp &	Term Loan		08/13/09		12/26/14		1		*			9.25	%					$	51	$	51
	39-04 Skillman LLC & G&A Auto	Term Loan		08/04/11		08/04/14		1		*			6.00	%					$	46	$	46
	G&C Grocery Inc &	Term Loan		05/19/08		08/23/15		1		*			0.00	%					$	45	$	45
	Julio Castillo	Term Loan		08/18/08		03/03/15		1		*			9.50	%					$	39	$	39
Accommodation and Food Services (19% of the total)	Dune Deck Owners Corp ##	Term Loan		04/24/07		03/31/14		1		1	%		7.25	%					$	2,074	$	2,074
	Bistro Caterers Corporation	Term Loan		07/25/13		07/25/18		1		*			9.00	%			$	260	$	256	$	255
	El Tropico Family Rest Ii LLC &	Term Loan		11/29/05		03/18/14		1		*			7.50	%					$	278	$	219
	Pc One Inc	Term Loan		05/25/05		03/25/15		1		*			8.50	%					$	81	$	81
Real Estate and Rental and Leasing (2% of the total)	Rala Management	Term Loan		04/22/99		09/01/15		1		*			4.75	%					$	90	$	90
	Thursday Morning Inc	Term Loan		04/01/10		04/01/15		1		*			6.00	%					$	77	$	77
	T.P. Hon LLC	Term Loan		07/15/13		07/15/16		1		*			4.00	%			$	40	$	35	$	36
Other Services (except Public Administration) (1% of the total)	2617 S Wabash Ave Realty LLC	Term Loan		01/16/04		01/16/14		1		*			5.50	%					$	121	$	121
	Newco Laundry Systems I Inc	Term Loan		05/02/09		05/02/14		1		*			6.50	%					$	25	$	25
Health Care and Social Assistance (1% of the total)	Craig Feuerman M.D. P.C.	Term Loan		05/14/13		05/14/18		1		*			7.50	%			$	150	$	135	$	136
Total other secured commercial loans ($2,074 pledged as collateral under borrowing arrangements)								26		5	%		9.89	%	$	376	$	1,875	$	13,336	$	13,255
Total commercial loans ($8,051 pledged as collateral under borrowing arrangements) (2)								84		22	%		10.60	%	$	2,202	$	10,074	$	67,239	$	60,168
Commercial Banking	Medallion Bank **	100% of common stock		05/16/02		None		1		37	%		11.83	%	$	0			$	101,478	$	101,478
Art Dealer	Medallion Fine Art, Inc.	100% of common stock		12/03/12		None		1		1	%		0.00	%	$	0			$	1,880	$	1,880
Real Estate	Medallion Hamptons Holding LLC	100% of membership interests		06/21/05		None		1		1	%		0.00	%	$	0			$	3,750	$	3,750
Loan Servicing	Medallion Servicing Corp.	100% of common stock		11/05/10		None		1		*			0.00	%	$	0			$	822	$	822

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2013

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date	Maturity Date	No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized Interest		Original Cost of 2013 Acquisitions (5)		Cost (4)		Fair Value
Professional Sports Team		Lax Group LLC	42% of membership interests	5/23/2012	None		1		*			0.00	%	$	0			$	254	$	254
Advertising		Generation Outdoor, Inc.	100% of common stock	12/20/04	None		1		*			0.00	%	$	0			$	439	$	439
Investment in Medallion Bank and other controlled subsidiaries, net							6		40	%		11.05	%	$	0	$	0	$	108,623	$	108,623
Equity investments
Commercial Finance		Convergent Capital, Ltd **	7% of limited partnership interest	07/20/07	None		1		1	%		0.00	%	$	0			$	1,132	$	1,981
Banking		FNBNY, Inc.	*	03/30/12	None		1		*			0.00	%	$	0			$	750	$	75
Appliance Recycler #		Appliance Recycling Centers of America, Inc. **	8.86% of common stock	09/10/98	None		1		*			0.00	%	$	0			$	0	$	1,299
NASCAR Race Team		Medallion MotorSports, LLC	75% of limited liability interest	11/24/10	None		1		1	%		0.00	%	$	0			$	1,954	$	1,954
Bakery		Quaker Bakery	* of senior preferred stock	03/28/12	None		1		*			0.00	%	$	0			$	359	$	359
Machinery Manufacturer	+	Reel Power International, Inc.	2.65% of common stock	08/04/08	None		1		*			0.00	%	$	0			$	318	$	318
Real Estate Investment		PMC Commercial Trust **	*	12/30/10	None		1		*			5.81	%	$	0			$	902	$	281
Surgical Instruments		Summit Medical, Inc.	9.25% of common stock	11/01/10	None		1		*			0.00	%	$	0			$	134	$	135
IT Services		Centare	7.23% of common stock, 3.88% of preferred stock	08/30/13	None		1		*			0.00	%	$	0			$	103	$	103
Employee Leasing Services		Staff One	46.4% preferred stock	06/30/08	None		2		*			0.00	%	$	0			$	472	$	0
Equity investments, net							11		2	%		0.86	%	$	0	$	0	$	6,124	$	6,505
Investment securities
Investment securities, net							0		0	%		0.00	%	$	0	$	0	$	0	$	0
Net Investments ($241,840 pledged as collateral under borrowing arrangements) (3)							755		173	%		6.49	%	$	2,202	$	206,047	$	479,604	$	473,157

(1) Represents the actual or weighted average interest or dividend rate of the respective security or portfolio as of the date indicated. Investments without an interest rate or with a rate of 0.00% are considered non-income producing.

(2) Included in secured mezzanine commercial loans and other commercial loans was $2,202 of interest income capitalized into the outstanding investment balances, in accordance with the terms of the investment contract.

(3) The ratio of restricted securities fair value to net assets is 172%.

(4) Gross unrealized appreciation, gross unrealized depreciation, and net appreciation for federal income tax purposes totaled $46,196, $12,155 and $34,041, respectively. The tax cost of investments was $439,116.

(5) For revolving lines of credit the amount shown is the cost at December 31, 2013.

* Less than 1.0%

** Not an eligible portfolio company as such term is defined in Section 2(a)(46) of the 1940 Act. The percentage value of all non-eligible portfolio companies to totaled assets of Medallion Financial on an unconsolidated basis was up to 23% and up to 27% on a consolidated basis. Under the 1940 Act, we may not acquire any non-qualifying assets, unless at the time such acquisition is made, qualifying assets, which include securities of eligible portfolio companies, represent at least 70% of our total assets. The status of these assets under the 1940 Act are subject to change. We monitor the status of these assets on an ongoing basis.

& Loan is on nonaccrual status, or past due on contractual payments, and is therefore considered non-income producing.

# Publicly traded but sales subject to applicable Rule 144 limitations.

## Pledged as collateral under borrowing arrangements.

+ Includes various warrants, all of which have a cost and fair value of zero at December 31, 2013.