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 $5,917,000 or $0.30 per diluted common share in the 2012 second quarter, up $1,501,000 or 34% from $4,416,000 or $0.25 per diluted common share in the 2011 second quarter, primarily reflecting higher net realized/unrealized gains, as well as lower operating expenses and higher net interest and noninterest income. Medallion Bank, the Company’s unconsolidated wholly-owned portfolio company, had net income of $4,828,000 in the 2012 second quarter, compared to $4,132,000 in the 2011 second quarter, an increase of $696,000 or 17%, primarily reflecting higher net interest income and reduced loan losses, partially offset by higher income taxes and operating expenses, and also by lower noninterest income. 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 which are at historically low levels, and which are our least expensive source of funds. Medallion Financial’s net interest margin was 4.77% for the 2012 second quarter, compared to 4.33% in the 2011 second quarter. On a combined basis with Medallion Bank, the net interest margin was 6.32%, compared to 6.40% 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 $1,793,000 or $0.09 per diluted common share in the 2012 quarter, up $314,000 or 21% from $1,479,000 or $0.08 per share in the 2011 quarter. Andrew Murstein, President of Medallion Financial stated, “We are extremely pleased with the quarter’s results, especially since we raised almost $35,000,000 in a follow on offering led by Morgan Stanley, Stifel Nicholas, and Sandler O’Neill. Even with our higher share count we still were able to increase our per share earnings immediately due in part to continued strong loan demand and near record low delinquencies and losses. Our stock is also trading above the offering price and we feel confident in our future.