Medallion Bank (MBNKP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR FURTHER INFORMATION:

AT THE COMPANY:	AT ZLOKOWER COMPANY
Medallion Financial Corp.	Public Relations
437 Madison Avenue	Harry Zlokower/Dave Closs
New York, New York 10022	1-212-447-9292

Andrew M. Murstein, President

Larry D. Hall, CFO

1-212-328-2100

1-877-MEDALLION

FOR IMMEDIATE RELEASE:

MEDALLION FINANCIAL CORP. ANNOUNCES

2006 FOURTH QUARTER AND FULL YEAR RESULTS

• Earnings per share increased 90% in 2006 to $0.74 from $0.39 in 2005

• Delinquencies continue to drop to lowest historical levels

• Medallion loans and total managed assets reach all-time highs

• Dividend increased to $0.19 per share

NEW YORK, NY – March 19, 2007—Medallion Financial Corp. (Nasdaq: TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that earnings, or net increase in net assets resulting from operations increased to $5,844,000 or $0.33 per diluted common share in the 2006 fourth quarter, up from $603,000, or $0.03 per diluted common share in the 2005 fourth quarter. For the 2006 full year, net increase in net assets resulting from operations increased 90% to $13,108,000 or $0.74 per diluted common share from $6,862,000 or $0.39 per diluted common share in 2005.

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Medallion Announces 2006 Fourth Quarter and Full Year Results p. 2

Andrew Murstein, President of Medallion Financial stated, “We are very pleased with the year’s results, especially the results this quarter. We continued to sell off our Clear Channel position at an optimal time and thus were able to realize substantial gains. We have realized proceeds from the sale of Medallion Taxi Media, our taxi top division, valued at over $35,000,000, representing cash received on the Media sale and from the sale of Clear Channel stock, as well as the carrying value of the shares still held at year end.”

The Company also changed its accounting methodology for Medallion Bank at year-end. Historically, the Company consolidated Medallion Bank’s accounts with those of its own, but will now treat the bank as a portfolio investment, similar to the Company’s past treatment of large non-investment company subsidiaries such as Medallion Taxi Media. Although this creates changes in the reported levels of assets, liabilities, revenues, and expenses, our earnings, shareholders’ equity, and the related amounts per share are unchanged. At year end, the Company determined the fair value of its investment in Medallion Bank was approximately $47 million. As a growing significant subsidiary, Medallion Bank’s financial information is also attached to this release.

The Company’s on balance sheet taxicab medallion loan portfolio grew by 14% to $428,249,000 at December 31, 2006 from $375,263,000 at December 31, 2005. The commercial loan portfolio decreased 4% to $88,207,000 at December 31, 2006 from $91,485,000 at December 31, 2005. Total managed loans, including taxicab medallion loans and commercial loans sourced and serviced by the Company but owned by Medallion Bank, are shown in the following table. This reflected growth of the Company’s managed taxicab medallion loan portfolio by 16% to $522,193,000 at December 31, 2006, an all-time high, and of the Company’s managed commercial loan portfolio by 2% to $148,444,000 at December 31, 2006. In addition, Medallion Bank’s consumer loan portfolio increased by 30% to $111,799,000 at December 31, 2006, also an all-time high.

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Medallion Announces 2006 Fourth Quarter and Full Year Results p. 3

The following chart shows the components of the Company’s $833,639,000 managed net investment portfolio at December 31, 2006.

	On-Balance Sheet		Off-Balance Sheet (1)			Total Managed Investments
Medallion loans	$	428,249,000	$	93,944,000		$	522,193,000
Commercial loans		88,207,000		60,237,000			148,444,000
Consumer loans		0		111,799,000			111,799,000
Investment securities		9,961,000		21,683,000			31,644,000
Equity investments		16,068,000		0			16,068,000
Investments in Medallion Bank and other controlled subsidiaries		50,448,000		(46,957,000	)		3,491,000
Net investment portfolio	$	592,933,000	$	240,706,000		$	833,639,000

(1) Off-balance sheet investments are those owned by our wholly-owned unconsolidated portfolio companies, primarily Medallion Bank.

Net investment income after taxes was $965,000 or $0.05 per share in the 2006 fourth quarter, compared to $144,000 or $0.01 per share in the 2006 third quarter and $1,040,000 or $0.06 per share in the 2005 fourth quarter. Including Medallion Bank’s net investment income after taxes with our own, as was the reporting methodology in prior periods, the amounts were $3,522,000 or $0.20 per share in the 2006 fourth quarter, compared to $2,781,000 or $0.16 per share in the 2006 third quarter and $3,763,000 or $0.21 per share in the 2005 fourth quarter.

Larry Hall, the CFO of Medallion Financial stated, “During the year our liquidity sources and financing options improved. In late December 2006, we entered into a new relationship with Citibank which lowered our cost of funds. While that benefit was not meaningful in the fourth quarter, it should start to show results in 2007.”

Mr. Hall continued, “In addition to improvements in profitability and asset growth, medallion prices have also continued to grow, with corporate medallion values growing from $425,000 to $525,000 in the last 12 months. This represents the highest values ever in the history of New York City taxi medallions. The average loan-to-value ratio on our loan portfolio is now under 58%, and our customers have more equity to tap into by borrowing from us to grow their businesses.”

Mr. Hall continued, “During the year we made over $470,000,000 of investments, a record for us, which includes $125,000,000 of loans made by Medallion Bank. Loan quality remains the Company’s trademark, as loans 90 days or more past due

Medallion Announces 2006 Fourth Quarter and Full Year Results p. 4

decreased to 2.1% from 3.5% a year ago. Loans 90 days or more past due in Medallion Bank’s consumer portfolio decreased to 0.5%, down from 0.8% one year ago, and in its total portfolio loans 90 days or more past due decreased to 0.2% down from 0.3% a year ago.

The Company also announced that it is increasing its quarterly dividend to $0.19 per share from $0.15 in the 2005 fourth quarter. For the year, the Company declared dividends of $0.70 per share, up from $0.54 per share in 2005, an increase of 30%. Also, 47% of the 2006 dividend will qualify as capital gains and thus be taxed at a lower tax rate to certain investors. The current dividend will be paid on April 13, 2007, to shareholders of record on March 30, 2007. Since the Company’s initial public offering in 1996, the Company has paid in excess of $104,951,000 or $7.01 per share in dividends.

*    *    *

Medallion Financial Corp. is a specialty finance company with a leading position in the origination and servicing of loans financing the purchase of taxicab medallions and related assets. The Company also originates and services commercial and consumer loans in targeted niche industries. The Company and its subsidiaries have lent over $3 billion to its taxicab, commercial, and consumer customers.

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, and growth. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those factors discussed under the heading “Risk Factors,” in Medallion’s 2005 Annual Report on Form 10-K.

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months ended December 31,					Year ended December 31,
	2006		2005			2006			2005
			(As adjusted)						(As adjusted)
Interest income on investments	$	10,275,894	$	8,643,205		$	38,031,949		$	33,649,871
Dividends and interest income on short-term investments		205,420		224,219			1,059,099			696,309
Medallion lease income		171,220		122,750			543,867			464,750
Total investment income		10,652,534		8,990,174			39,634,915			34,810,930
Interest on floating rate borrowings		5,317,820		3,617,648			19,208,815			13,398,536
Interest on fixed rate borrowings		1,256,719		1,242,755			4,981,488			4,598,713
Total interest expense		6,574,539		4,860,403			24,190,303			17,997,249
Net interest income		4,077,995		4,129,771			15,444,612			16,813,681
Gain on sales of loans		—		46,874			—			884,608
Other income		595,443		785,441			2,646,574			3,853,094
Total noninterest income		595,443		832,315			2,646,574			4,737,702
Salaries and benefits		1,654,482		2,040,466			8,192,731			9,554,489
Professional fees		476,380		671,803			1,955,521			1,945,153
Other operating expenses		1,577,244		1,239,844			4,777,549			5,484,065
Total operating expenses		3,708,106		3,952,113			14,925,801			16,983,707
Net investment income before income taxes		965,332		1,009,973			3,165,385			4,567,676
Income tax (provision) benefit		—		30,034			—			13,924
Net investment income after income taxes		965,332		1,040,007			3,165,385			4,581,600
Net realized gains (losses) on investments		2,538,654		(1,375,007	)		3,079,718			3,606,119
Net change in unrealized appreciation (depreciation) on investments		789,219		(492,427	)		(591,405	)		(6,338,641	)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries		1,551,212		1,430,494			7,454,321			5,012,424
Net unrealized gains (losses) on investments		2,340,431		938,067			6,862,916			(1,326,217	)
Net realized/unrealized gains on investments		4,879,085		(436,940	)		9,942,634			2,279,902
Net increase in net assets resulting from operations	$	5,844,417	$	603,067		$	13,108,019		$	6,861,502
Net investment income after income taxes per common share
Basic	$	0.06	$	0.06		$	0.18		$	0.27
Diluted		0.05		0.06			0.18			0.26
Net increase in net assets resulting from operations per common share
Basic	$	0.34	$	0.04		$	0.76		$	0.40
Diluted		0.33		0.03			0.74			0.39
Dividends declared per share	$	0.19	$	0.15		$	0.70		$	0.54
Weighted average common shares outstanding
Basic		17,364,241		17,155,302			17,293,665			17,087,034
Diluted		17,770,893		17,582,240			17,761,039			17,552,228

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

	December 31, 2006			December 31, 2005
				(As adjusted)
Assets
Medallion loans, at fair value	$	428,248,589		$	375,263,403
Commercial loans, at fair value		88,206,661			91,485,479
Investment in Medallion Bank and other controlled subsidiaries, at fair value		50,448,032			40,335,393
Equity investments, at fair value		16,068,243			23,137,661
Investment securities, at fair value		9,961,111			—
Net investments ($405,817,000 at December 31, 2006and $380,267,000 at December 31, 2005 pledged as collateral under borrowing arrangements)		592,932,636			530,221,936
Cash($865,000 at December 31, 2006 and $574,000 December 31, 2005 restricted as to use by lender)		15,398,740			22,808,388
Accrued interest receivable		2,177,694			2,383,083
Fixed assets, net		525,472			454,659
Goodwill, net		5,007,583			5,007,583
Other assets, net		15,562,763			12,479,159
Total assets	$	631,604,888		$	573,354,808
Liabilities
Accounts payable and accrued expenses	$	5,057,205		$	4,326,282
Accrued interest payable		1,783,258			1,759,737
Floating rate borrowings		377,886,424			323,664,950
Fixed rate borrowings		77,250,000			77,250,000
Total liabilities		461,976,887			407,000,969
Commitments and contingent liabilities		—			—
Shareholders’ equity
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 –18,799,766 shares at December 31, 2006 and 18,546,648 shares at December 31, 2005 issued)		187,998			185,271
Treasury stock at cost (1,373,351 shares at December 31, 2006 and December 31, 2005)		(12,611,113	)		(12,611,113	)
Capital in excess of par value		176,849,296			175,259,730
Accumulated undistributed net investment income (loss)		(7,765,327	)		(5,838,235	)
Accumulated undistributed net realized gains on investments		—			—
Net unrealized appreciation (depreciation) on investments		12,967,148			9,358,186
Total shareholders’ equity		169,628,002			166,353,839
Total liabilities and shareholders’ equity	$	631,604,888		$	573,354,808
Number of common shares outstanding		17,426,415			17,173,297
Net asset value per share	$	9.73		$	9.69
Total managed loans	$	795,980,453		$	690,280,561
Total managed assets		907,132,484			802,106,190

Medallion Bank Financial Information

The following table presents MB’s statement of operations and other valuation adjustments on other controlled subsidiaries for the years ended December 31, 2006, 2005, and 2004.

	Year ended December 31,
	2006			2005			2004
Statement of operations
Investment income	$	29,956,940		$	22,376,878		$	14,301,397
Interest expense		10,453,732			6,413,605			3,244,540
Net interest income		19,503,208			15,963,273			11,056,857
Non interest income		508,601			434,146			160,697
Operating expenses		6,289,009			5,543,633			3,869,221
Net investment income before income taxes		13,722,800			10,853,786			7,348,333
Income tax provision		4,387,959			1,973,019			1,911,737
Net investment income after income taxes		9,334,841			8,880,767			5,436,596
Net realized/unrealized (losses) of Medallion Bank and other controlled subsidiaries (1)		(1,880,520	)		(3,868,343	)		(5,093,235	)
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	7,454,321		$	5,012,424		$	343,361

(1) Includes $1,450,068, ($230,649), and ($2,826,598) of net realized/unrealized gains (losses) of controlled subsidiaries other than Medallion Bank for the years ended December 31, 2006, 2005, and 2004.

The following table presents MB’s balance sheets and the net investment in other controlled subsidiaries as of December 31, 2006 and 2005.

	2006		2005
Medallion loans, at fair value	$	93,944,562	$	73,893,149
Commercial loans, at fair value		60,237,698		54,322,488
Consumer loans, at fair value		111,798,871		85,678,412
Investment securities, at fair value		21,682,923		18,092,838
Net investments ($0pledged as collateral under borrowing arrangementsat December 31, 2006and 2005)		287,664,054		231,986,887
Cash($0 at December 31, 2006 and $0 December 31, 2005 restricted as to use by lender)		14,698,918		20,227,118
Accrued interest receivable		2,435,766		1,702,018
Fixed assets, net		184,091		160,199
Other assets, net		3,958,506		5,002,719
Total assets	$	308,941,335	$	259,078,941
Accounts payable and accrued expenses	$	499,983	$	511,181
Payable to parent		267,246		324,234
Fixed rate borrowings		261,483,540		219,107,214
Total liabilities		262,250,769		219,942,629
Medallion Bank equity		46,690,566		39,136,312
Total liabilities and equity	$	308,941,335	$	259,078,941
Investment in other controlled subsidiaries	$	3,530,220	$	874,847
Total investment in Medallion Bank and other controlled subsidiaries	$	50,488,032	$	40,335,393