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. REPORTS

2011 THIRD QUARTER RESULTS

• Earnings increased 39% to $0.27 per diluted common share from $0.20 in 2010

• Managed assets were in excess of $1.1 billion

• Medallion Bank continued its run of record profits

• Quarterly dividend raised to $0.19 per share

NEW YORK, NY – November 2, 2011. 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 was $4,835,000 or $0.27 per diluted common share in the 2011 third quarter, up $1,367,000 or 39% from $3,468,000 or $0.20 per diluted common share in the 2010 third quarter.

Medallion Bank, the Company’s unconsolidated wholly-owned portfolio company, had net income of $4,581,000 in the 2011 third quarter, compared to $3,212,000 in the 2010 third quarter, an increase of $1,369,000 or 43%, primarily reflecting improved net interest income and reduced loan losses compared to the prior year. As the Company continues to use Medallion Bank as a primary funding source it refers more loans to Medallion Bank for origination to take advantage of current short term borrowing rates. For the quarter, the Bank’s cost of funds was 1.07%, compared to 1.68% a year ago, and new deposits are being placed at coupon rates as low as 0.15%.

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Medallion Financial Announces 2011 Third Quarter Results p. 2

Andrew Murstein, President of Medallion Financial stated, “We are extremely pleased with the quarter’s results, continuing a recent string of sequential and year over year profit growth. Profits are rising, and business remains strong in all of our lines of business. Additionally, our loan to value ratio on our entire medallion portfolio is under 50%.”

Medallion Financial’s net interest margin remained strong at 3.97% for the 2011 third quarter, compared to 4.77% in the 2010 quarter, reflecting portfolio repricing. On a combined basis with Medallion Bank, the net interest margin was 6.47%, compared to 6.55% a year ago, reflecting the continued low cost of funds at the Bank, and the Bank’s higher-yielding loan portfolio. Net investment income after income taxes was $1,376,000 or $0.08 per diluted common share in the 2011 quarter, down $992,000 from $2,368,000 or $0.13 per diluted common share in the 2010 quarter, primarily as a result of the Company referring additional loans for origination to Medallion Bank whose earnings are not included in net investment income after taxes, but whose results, which approximate our fair value adjustment on the Bank, are reflected in our net increase in net assets resulting from operations.

Larry D. Hall, Chief Financial Officer of Medallion Financial stated, “We remain intently focused on the credit quality of our loan portfolios. Unlike many other financial institutions, our credit quality has not only remained very good, but has improved, even in these turbulent times. Loans more than 90 days past due, on a combined basis with Medallion Bank, were at 1.2% at September 30, 2011, down from 1.4% at year end and 1.6% a year ago.

“Medallion Financial’s capital and liquidity levels remained strong with over $129,000,000 of availability from our existing cash and funding sources and Medallion Financial’s leverage continues to be well under the industry norms with a debt to equity ratio of only 2.09 to 1. In addition, Medallion Bank had about $106,000,000 of deposit-raising capacity. The Company and the Bank remain well-positioned for future growth.”

Medallion Financial’s on-balance sheet taxicab medallion loan portfolio decreased to $304,000,000 from $327,000,000 a year ago, due to the funding of most new loan originations by Medallion Bank, and the Company’s sale of loan participations to third party banks. As a result, total managed medallion loans increased 6% to $665,000,000 from $629,000,000 a year ago.

Medallion Financial’s on-balance sheet commercial loan portfolio was $59,000,000 at quarter end, down from $65,000,000 a year ago. The managed commercial loan portfolio was essentially flat at $119,000,000, and Medallion Bank’s consumer loan portfolio increased 6% to $197,000,000 from $187,000,000 a year ago. Overall, total managed assets increased 5% to $1.114 billion from $1.060 billion a year ago.

The Company’s net asset value per share increased to $9.59, up from $9.23 a year ago, in part due to improved profitability in Medallion Bank, which is a taxable C Corp. and is entitled to retain its after tax earnings. The Company also announced an increase in the dividend to $0.19 per share for the 2011 third quarter, up from $0.15 per share in the 2010 third quarter, bringing the total amount to $0.70 over the last four quarters. This equates to a yield of approximately 6% based on the most recent closing price of the Company’s stock. The current dividend will be paid on November 23, 2011, to shareholders of record on November 16, 2011. Since the Company’s initial public offering in 1996, the Company has paid in excess of $164,000,000 or $10.40 per share in dividends.

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Medallion Financial Announces 2011 Third Quarter Results p. 3

Medallion Financial Corp. is a specialty finance company with a leading position in the origination and servicing of loans financing the purchase of taxicab medallions and related assets. The Company also originates and services loans in other commercial industries, and its wholly-owned portfolio company, Medallion Bank, also originates and services consumer loans. The Company and its subsidiaries have lent over $3.9 billion to its taxicab industry, small business, and other 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 2010 Annual Report on Form 10-K.

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2011			2010			2011		2010
Total investment income	$	8,029		$	9,553		$	26,040	$	28,143
Total interest expense		3,431			3,838			10,276		11,093
Net interest income		4,598			5,715			15,764		17,050
Total noninterest income		218			1,340			953		3,287
Salaries and benefits		2,101			2,722			6,060		8,529
Professional fees		220			451			743		1,729
Occupancy expense		235			352			688		1,032
Other operating expenses		884			1,162			3,529		1,509
Total operating expenses		3,440			4,687			11,020		12,799
Net investment income before income taxes		1,376			2,368			5,697		7,538
Income tax (provision) benefit		—			—			—		—
Net investment income after income taxes		1,376			2,368			5,697		7,538
Net realized gains (losses) on investments		686			(186	)		1,270		(9,076	)
Net change in unrealized appreciation (depreciation) on investments		(74	)		(689	)		20		(2,877	)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries		2,847			1,975			6,544		11,026
Net unrealized appreciation on investments		2,773			1,286			6,564		8,149
Net realized/unrealized gains (losses) on investments		3,459			1,100			7,834		(927	)
Net increase in net assets resulting from operations	$	4,835		$	3,468		$	13,531	$	6,611
Net investment income after income taxes per common share
Basic	$	0.08		$	0.14		$	0.33	$	0.43
Diluted		0.08			0.14			0.33		0.42
Net increase in net assets resulting from operations per common share
Basic	$	0.28		$	0.20		$	0.78	$	0.38
Diluted		0.27			0.20			0.77		0.37
Dividends declared per share	$	0.19		$	0.15		$	0.54	$	0.45
Weighted average common shares outstanding
Basic		17,403,007			17,472,385			17,402,520		17,535,826
Diluted		17,643,075			17,579,269			17,600,230		17,659,628

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)	September 30, 2011		December 31, 2010
Assets
Medallion loans, at fair value	$	303,943	$	323,126
Commercial loans, at fair value		59,020		76,866
Investment in Medallion Bank and other controlled subsidiaries, at fair value		85,264		78,735
Equity investments, at fair value		4,755		4,789
Investment securities, at fair value		—		—
Net investments		452,982		483,516
Cash and cash equivalents		18,887		17,303
Accrued interest receivable		1,110		1,441
Fixed assets, net		530		419
Goodwill, net		5,069		5,069
Other assets, net		45,788		42,564
Total assets	$	524,366	$	550,312
Liabilities
Accounts payable and accrued expenses	$	6,192	$	5,102
Accrued interest payable		775		1,913
Funds borrowed		349,887		380,532
Total liabilities		356,854		387,547
Commitments and contingencies		—		—
Total shareholders’ equity (net assets)		167,512		162,765
Total liabilities and shareholders’ equity	$	524,366	$	550,312
Number of common shares outstanding		17,467,204		17,400,233
Net asset value per share	$	9.59	$	9.35
Total managed loans	$	982,140	$	967,690
Total managed assets		1,113,595		1,093,379