Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Mar. 03, 2023 | |
Document and Entity Information [Line Items] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | MEDALLION FINANCIAL CORP | |
Entity Central Index Key | 0001000209 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,319,836 | |
Entity Public Float | $ 124,245,741 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-37747 | |
Entity Tax Identification Number | 04-3291176 | |
Entity Address, Address Line One | 437 MADISON AVENUE, 38th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 328-2100 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MFIN | |
Security Exchange Name | NASDAQ | |
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement for its 2023 Annual Meeting of Shareholders, for which a Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2022 , are incorporated by reference into Part III of this Form 10-K. | |
Auditor Firm ID | 339 | |
Auditor Name | Mazars USA LLP | |
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and cash equivalents | [1] | $ 33,172 | $ 64,482 |
Federal funds sold | 72,426 | 60,002 | |
Investment securities | 48,492 | 44,772 | |
Equity investments | 10,293 | 9,726 | |
Loans | 1,916,953 | 1,488,924 | |
Allowance for loan losses | [2] | (63,845) | (50,166) |
Net loans receivable | 1,853,108 | 1,438,758 | |
Goodwill | 150,803 | 150,803 | |
Loan collateral in process of foreclosure | [3] | 21,819 | 37,430 |
Intangible assets, net | 22,035 | 23,480 | |
Property, equipment, and right-of-use lease asset, net | 13,168 | 11,762 | |
Accrued interest receivable | 12,613 | 10,621 | |
Income tax receivable | 2,095 | 833 | |
Other assets | 19,855 | 20,388 | |
Total assets | 2,259,879 | 1,873,057 | |
Liabilities | |||
Deposits | [4] | 1,607,110 | 1,250,880 |
Long-Term Debt | [5] | 214,320 | 219,973 |
Deferred tax liabilities, net | 26,753 | 18,210 | |
Operating lease liabilities | 8,408 | 9,053 | |
Accrued interest payable | 4,790 | 3,395 | |
Short-Term Debt | 5,000 | 0 | |
Accounts payable and accrued expenses | [6] | 22,974 | 15,718 |
Total liabilities | 1,889,355 | 1,517,229 | |
Commitments and contingencies | |||
Stockholders’ equity | |||
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding) | 0 | 0 | |
Common stock (50,000,000 shares of $0.01 par value stock authorized - 28,663,827 shares at December 31, 2022 and 28,124,629 shares at December 31, 2021 issued) | 287 | 281 | |
Additional paid in capital | 283,663 | 280,038 | |
Treasury stock (5,602,154 shares at December 31, 2022 and 2,951,243 December 31, 2021) | (45,538) | (24,919) | |
Accumulated other comprehensive income (loss) | (3,349) | 1,034 | |
Retained earnings | 66,673 | 30,606 | |
Total stockholders’ equity | 301,736 | 287,040 | |
Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | |
Total equity | 370,524 | 355,828 | |
Total liabilities and equity | $ 2,259,879 | $ 1,873,057 | |
Number of shares outstanding | 23,061,673 | 25,173,386 | |
Book value per share | $ 13.08 | $ 11.40 | |
[1] Includes no restricted cash requirement as of December 31, 2022 and restricted cash of $ 3.0 million as of December 31, 2021 . As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $ 7.5 million and $ 7.4 million as of December 31, 2022 and 2021 . Includes $ 3.8 million and $ 3.2 million of deferred financing costs as of December 31, 2022 and 2021 . Refer to Note 5 for more details. Includes $ 3.2 million and $ 4.0 million of deferred financing costs as of December 31, 2022 and 2021 . Refer to Note 5 for more details. Includes the short-term portion of lease liabilities of $ 2.2 million and $ 2.2 million as of December 31, 2022 and 2021 . Refer to Note 6 for more details. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 28,663,827 | 28,124,629 |
Treasury stock, shares | 5,602,154 | 2,951,243 |
Restricted cash | $ 0 | $ 3 |
Loan collateral in process of foreclosure, financed sales collateral to third parties | 7.5 | 7.4 |
Short term lease liabilities | 2.2 | 2.2 |
Deposits [Member] | ||
Deferred financing costs | 3.8 | 3.2 |
Long-Term Debt [Member] | ||
Deferred financing costs | $ 3.2 | $ 4 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Interest and fees on loans | $ 195,074 | $ 157,990 | $ 143,701 | |
Interest and dividends on investment securities | 1,547 | 976 | 1,208 | |
Medallion lease income | 0 | 0 | 53 | |
Total interest income | [1] | 196,621 | 158,966 | 144,962 |
Interest on deposits | 22,666 | 17,543 | 22,330 | |
Interest on long-term debt | 13,387 | 12,907 | 9,815 | |
Interest on short-term borrowings | 132 | 690 | 2,006 | |
Total interest expense | [2] | 36,185 | 31,140 | 34,151 |
Net interest income (loss) | 160,436 | 127,826 | 110,811 | |
Provision for loan losses | 30,059 | 4,622 | 69,817 | |
Net interest income (loss) after loss provision | 130,377 | 123,204 | 40,994 | |
Other income (loss) | ||||
Gain on sale of loans and medallion | 5,448 | 1,788 | 1,019 | |
Gain (loss) on equity investments | 2,779 | 17,379 | (2,985) | |
Write-down of loan collateral in process of foreclosure | (657) | (5,592) | (24,523) | |
Gain on extinguishment of debt | 0 | 4,626 | 0 | |
Sponsorship and race winnings, net | 0 | 12,567 | 20,042 | |
Other income | 1,956 | 798 | 511 | |
Total other income (loss), net | 9,526 | 31,566 | (5,936) | |
Other expenses | ||||
Salaries and employee benefits | 31,130 | 31,591 | 28,172 | |
Professional fees | 13,054 | 5,311 | 8,047 | |
Loan servicing fees | 8,371 | 7,013 | 6,737 | |
Collection costs | 5,314 | 5,279 | 5,454 | |
Rent expense | 2,378 | 2,454 | 2,833 | |
Regulatory fees | 2,418 | 1,872 | 1,822 | |
Amortization of intangible assets | 1,445 | 1,445 | 1,445 | |
Race team related expenses | 0 | 9,559 | 8,366 | |
Other expenses | 7,943 | 8,375 | 9,163 | |
Total other expenses | 72,053 | 72,899 | 72,039 | |
Income (loss) before income taxes | 67,850 | 81,871 | (36,981) | |
Income tax (provision) benefit | (17,963) | (24,217) | 10,074 | |
Net income (loss) after taxes | 49,887 | 57,654 | (26,907) | |
Less: income attributable to the non-controlling interest | 6,047 | 3,546 | 7,876 | |
Total net income (loss) attributable to Medallion Financial Corp. | $ 43,840 | $ 54,108 | $ (34,783) | |
Basic net income (loss) per share | $ 1.86 | $ 2.20 | $ (1.42) | |
Diluted net income( loss) per share | $ 1.83 | $ 2.17 | $ (1.42) | |
Weighted average common shares outstanding | ||||
Basic | 23,583,049 | 24,599,804 | 24,445,452 | |
Diluted | 23,927,342 | 24,943,169 | 24,445,452 | |
[1] Included in interest and investment income is $ 0.7 million , $ 0.8 million , and $ 1.2 million of paid-in-kind interest for the years ended December 31, 2022, 2021, and 2020 . Average borrowings outstanding were $ 1.7 billion , $ 1.4 billion and $ 1.3 billion as of December 31, 2022, 2021, and 2020 and the related average borrowing costs were 2.17 % , 2.28 % , and 2.71 % for the years ended December 31, 2022, 2021, and 2020 . |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest paid in kind | $ 0.7 | $ 0.8 | $ 1.2 |
Average borrowings outstanding | $ 1.7 | $ 1.4 | $ 1.3 |
Average borrowing costs rate | 2.17% | 2.28% | 2.71% |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) after taxes | $ 49,887 | $ 57,654 | $ (26,907) |
Other comprehensive income (loss), net of tax | (4,383) | (978) | 1,013 |
Total comprehensive income (loss) | 45,504 | 56,676 | (25,894) |
Less: comprehensive income attributable to the non-controlling interest | 6,047 | 3,546 | 7,876 |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | $ 39,457 | $ 53,130 | $ (33,770) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Noncontrolling Interest [Member] | ||
Balance at Dec. 31, 2019 | $ 334,468 | $ 276 | $ 275,511 | $ (24,919) | $ 11,281 | $ 999 | $ 263,148 | $ 71,320 | ||
Balance, shares at Dec. 31, 2019 | 27,597,802 | (2,951,243) | ||||||||
Net income (loss) | (26,907) | (34,783) | (34,783) | 7,876 | ||||||
Distributions to non-controlling interest | (6,043) | (6,043) | ||||||||
Stock-based compensation | $ 2,030 | $ 2 | 2,028 | 2,030 | ||||||
Issuance of restricted stock, net, shares | 229,408 | |||||||||
Forfeiture of restricted stock, net, shares | (8,755) | |||||||||
Issuance of restricted stock units, net, shares | 10,416 | |||||||||
Exercise of stock options,shares | [1] | 0 | ||||||||
Net change in unrealized gains on investments, net of tax | $ 1,013 | 1,013 | 1,013 | |||||||
Ending balance at Dec. 31, 2020 | 304,561 | $ 278 | 277,539 | $ (24,919) | (23,502) | 2,012 | 231,408 | 73,153 | ||
Ending balance, shares at Dec. 31, 2020 | 27,828,871 | (2,951,243) | ||||||||
Net income (loss) | 57,654 | 54,108 | 54,108 | 3,546 | ||||||
Distributions to non-controlling interest | (6,516) | (6,516) | ||||||||
Disposition of RPAC | (1,395) | (1,395) | ||||||||
Stock-based compensation | 2,261 | $ 3 | 2,258 | 2,261 | ||||||
Issuance of restricted stock, net, shares | 258,120 | |||||||||
Forfeiture of restricted stock, net, shares | (21,940) | |||||||||
Issuance of restricted stock units, net, shares | 15,508 | |||||||||
Exercise of stock options,value | $ 241 | 241 | 241 | |||||||
Exercise of stock options,shares | 44,070 | [1] | 44,070 | |||||||
Net change in unrealized gains on investments, net of tax | $ (978) | (978) | (978) | |||||||
Ending balance at Dec. 31, 2021 | $ 355,828 | $ 281 | 280,038 | $ (24,919) | 30,606 | 1,034 | 287,040 | 68,788 | ||
Ending balance, shares at Dec. 31, 2021 | 25,173,386 | 28,124,629 | (2,951,243) | |||||||
Net income (loss) | $ 49,887 | 43,840 | 43,840 | 6,047 | ||||||
Distributions to non-controlling interest | (6,047) | (6,047) | ||||||||
Stock-based compensation | 3,476 | $ 6 | 3,470 | 3,476 | ||||||
Issuance of restricted stock, net, shares | 522,475 | |||||||||
Forfeiture of restricted stock, net, shares | (29,359) | |||||||||
Issuance of restricted stock units, net, shares | 22,337 | |||||||||
Exercise of stock options,value | $ 155 | 155 | 155 | |||||||
Exercise of stock options,shares | 23,745 | [1] | 23,745 | |||||||
Purchase of common stock (in Shares) | (2,650,911) | |||||||||
Purchase of common stock | $ (20,619) | $ (20,619) | (20,619) | |||||||
Dividend paid on common stock | (7,773) | (7,773) | (7,773) | |||||||
Net change in unrealized gains on investments, net of tax | (4,383) | (4,383) | (4,383) | |||||||
Ending balance at Dec. 31, 2022 | $ 370,524 | $ 287 | $ 283,663 | $ (45,538) | $ 66,673 | $ (3,349) | $ 301,736 | $ 68,788 | ||
Ending balance, shares at Dec. 31, 2022 | 23,061,673 | 28,663,827 | (5,602,154) | |||||||
[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, wa s $ 0.1 million, $ 0.2 million, and $ 0 for the years ended December 31, 2022, 2021, and 2020 . |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders Equity (Parenthetical) | Dec. 31, 2022 $ / shares |
Statement of Stockholders' Equity [Abstract] | |
Dividends payable amount per share | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income (loss) after taxes | $ 49,887 | $ 57,654 | $ (26,907) | |||
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities: | ||||||
Provision for loan losses | 30,059 | 4,622 | 69,817 | |||
Paid-in-kind interest income | (724) | (814) | (1,188) | |||
Depreciation and amortization | 5,229 | 6,519 | 7,714 | |||
Amortization of origination fees, net | 8,707 | 7,996 | 6,022 | |||
(Decrease) increase in deferred and other tax liabilities, net | 7,281 | 18,327 | (8,776) | |||
Net change in value of loan collateral in process of foreclosure | 5,738 | 8,966 | 31,926 | |||
Net realized (gains) losses on sale of investments | (2,779) | (17,380) | 4,305 | |||
Stock-based compensation expense | 3,476 | 2,261 | 2,030 | |||
Gain on extinguishment of debt | 0 | (4,626) | 0 | |||
Increase in accrued interest receivable | (1,992) | (283) | (1,676) | |||
Gain on disposition of RPAC | 0 | (715) | 0 | |||
Decrease (increase) in other assets | (3,919) | (5,354) | 2,223 | |||
Decrease (increase) in accounts payable and accrued expenses | 6,382 | 2,694 | (7,206) | |||
(Decrease) Increase in accrued interest payable | 1,395 | (1,141) | 422 | |||
Net cash provided by operating activities | 108,740 | 78,726 | 78,706 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans originated | (1,000,785) | (760,790) | (506,106) | |||
Proceeds from principal receipts, sales, and maturities of loans | 535,067 | 464,448 | 321,831 | |||
Purchases of investments | (20,713) | (19,354) | (15,580) | |||
Proceeds from disposition of RPAC, net | 0 | 17,676 | 0 | |||
Proceeds from principal receipts, sales, and maturities of investments | 14,762 | 35,647 | 15,399 | |||
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 22,664 | 24,052 | 13,499 | |||
Net cash used for investing activities | (449,005) | (238,321) | (170,957) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from time deposits and funds borrowed | 839,104 | 805,577 | 668,577 | |||
Repayments of time deposits and funds borrowed | (483,671) | (627,263) | (526,064) | |||
Treasury stock repurchased | (20,619) | 0 | 0 | |||
Distributions to non-controlling interests | (6,047) | (6,516) | (6,043) | |||
Cash dividend paid on common stock | (7,543) | 0 | 0 | |||
Proceeds from the exercise of stock options | 155 | 241 | 0 | |||
Net cash provided by financing activities | 321,379 | 172,039 | 136,470 | |||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (18,886) | 12,444 | 44,219 | |||
Cash and cash equivalents, beginning of period | 124,484 | [1] | 112,040 | [1] | 67,821 | |
Cash and cash equivalents, end of period | [1] | 105,598 | 124,484 | 112,040 | ||
SUPPLEMENTAL INFORMATION | ||||||
Cash paid during the period for interest | 31,976 | 29,867 | 31,204 | |||
Cash paid during the period for income taxes | 8,848 | 5,479 | 104 | |||
NON-CASH INVESTING | ||||||
Loans transferred to loan collateral in process of foreclosure, net | 12,791 | 15,888 | 47,254 | |||
Loans transferred to other foreclosed property | $ 0 | $ 0 | $ 1,800 | |||
[1] Includes federal funds sold. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization of Medallion Financial Corp. and its Subsidiaries | (1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES Medallion Financial Corp., or the Company, is a specialty finance company organized as a Delaware corporation that reports as a bank holding company, but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The 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. The Bank was formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles, or “RVs”, boats and other consumer recreational equipment and to finance home improvements such as replacement windows and roofs. Prior to 2014, the Bank originated commercial loans to finance the purchase of taxi medallions, all of which are serviced by the Company. The loans are financed primarily with time certificates of deposit which are originated nationally through a variety of brokered deposit relationships. In 2019, the Bank began building a strategic partnership program that targets relationships with financial technology, or fintech, companies to offer loans and other financial services to customers. The Bank entered into an initial partnership in 2020 and continues to evaluate and launch additional partnerships. The Company also conducts business through its subsidiaries Medallion Capital, Inc., or MCI, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; Medallion Funding LLC, or MFC, an SBIC, which historically was the Company's primary taxi medallion lending company; and Freshstart Venture Capital Corp., or FSVC, an SBIC that originated and services medallion and commercial loans. MCI, MFC, and FSVC, as SBICs, are regulated by the Small Business Administration, or SBA. MCI and FSVC are financed in part by the SBA. The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or 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, aggre gating $ 34.0 million at December 31, 2022 , 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (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, or GAAP, 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 loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls thro ugh a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. 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 exceed the federally insured limits. As of December 31, 2022, cash also includes $ 1.3 million of interest-bearing funds deposited in other banks, that are mainly callable, with original terms of 3 to 5 years . Fair Value of Assets and Liabilities The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or 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 14 and 15 to the consolidated financial statements. Equity Investments The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $ 10.3 million and $ 9.7 million as of December 31, 2022 and 2021, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2022 , cumulative impairment of $ 2.4 million had been recorded with respect to these investments. During 2021, the Company purchased $ 2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of December 31, 2022 and 2021, the fair value of these securities were $ 1.7 million and $ 2.0 million and are included in other assets on the consolidated balance sheet. The following table presents the unrealized portion related to the equity securities held as of December 31, 2022. Year Ended December 31, (Dollars in thousands) 2022 2021 Net losses recognized during the period on equity securities $ ( 226 ) $ ( 50 ) Less: Net gains (losses) recognized during the period on equity — — Unrealized losses recognized during the reporting period on $ ( 226 ) $ ( 50 ) Investment Securities The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. 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. The net premium on investment securities totaled $ 0.1 million and $ 0.3 million as of December 31, 2022 and 2021 , and $ 0.1 million, $ 0.1 million, and $ 0.3 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020 . ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. Loans The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of December 31, 2022 and 2021, net loan origination costs were $ 34.9 million and $ 26.1 million . Net amortization to income for the years ended December 31, 2022, 2021, and 2020 were $ 8.7 million , $ 8.0 million , and $ 6.0 million . Interest income is recorded on the accrual basis. 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. The consumer loan portfolio has different characteristics, typified by a larger number of smaller dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation 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. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, 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. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $ 8.9 million or 0.47 % of the total loan portfolio as of December 31, 2022, as compared to $ 4.0 million , or 0.28 % as of December 31, 2021. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Recreation loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt recreation loans is to take an immediate 40 % write down of the loan balance. Loan collateral in process of foreclosure primarily includes medallion loans that have reached 120 days past due and have been charged-down to their net realizable value, in add ition to consumer repossessed collateral in the process of being sold. For New York City medallion loans in the process of foreclosure, the Company continued to utilize a net value of $ 79,500 when assessing net realizable value for these medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time . The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower, to the liquidation of the collateral securing the loans. The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or 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 had 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 $ 19.5 million and $ 20.5 million at December 31, 2022 and 2021. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of December 31, 2022 and 2021 . Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result of COVID-19, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six-month deferral period with borrowers, and therefore deemed all such loans as impaired in the third quarter of 2020. As a result, all medallion loans were placed on nonaccrual and reserved down to collateral value, net of liquidation costs, which was $ 79,500 for New York City medallions. Th e Company continued to use $79,500 as its internally determined value for assessing net realizable value for these medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance. Goodwill and Intangible Assets The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2022 and 2021, the Company had intangible assets of $ 22.0 million and $ 23.5 million . During 2021 , the Company disposed of its investment in RPAC Racing LLC, or RPAC, resulting in the removal of $ 26.2 million of intangible assets. The Company recognized $ 1.4 million of amortization expense on the intangible assets for each of the years ended December 31, 2022 and 2021. Additional ly, loan portfolio premiums of $ 12.4 million were determined as of April 2, 2018, of which $ 0 and $ 0.5 million were outstanding as of December 31, 2022 and 2021 , and of which $ 0.5 million, $ 2.2 million, and $ 3.0 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022 and 2021 , concluding that there was no impairment of these assets. The following table details of the intangible assets as of December 31, 2022 and 2021: December 31, (Dollars in thousands) 2022 2021 Brand-related intellectual property $ 16,775 $ 17,874 Home improvement contractor relationships 5,260 5,606 Total intangible assets $ 22,035 $ 23,480 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 $ 0.4 million, $ 0.3 million, and $ 0.4 million for the years ended December 31, 2022, 2021, and 2020 . Deferred Costs Deferred financing costs represent 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 and life of the respective pool. Amortization expense was $ 2.6 million, $ 2.4 million, and $ 2.6 million for the years ended December 31, 2022, 2021, and 2020. 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 amount on the Company’s balance sheet for all of these purposes were $ 7.0 million and $ 7.1 million as of December 31, 2022 and 2021 . Income Taxes Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense. Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share are computed by dividing net income (loss) resulting from operations available to common stockholders 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. Year Ended December 31, (Dollars in thousands, except share and per share data) 2022 2021 2020 Net income (loss) available to common stockholders $ 43,840 $ 54,108 $ ( 34,783 ) Weighted average common shares outstanding applicable 23,583,049 24,599,804 24,445,452 Effect of dilutive stock options 67,825 92,602 — Effect of restricted stock grants 276,469 250,763 — Adjusted weighted average common shares outstanding applicable to diluted EPS 23,927,342 24,943,169 24,445,452 Basic income (loss) per share $ 1.86 $ 2.20 $ ( 1.42 ) Diluted income (loss) per share 1.83 2.17 ( 1.42 ) Potentially dilutive common shares excluded from the above calculations aggregated 347,963 shares, 421,190 , and 934,003 shares as of December 31, 2022, 2021, and 2020 . Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, 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 are reflected in net income 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 income 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. During the years ended December 31, 2022, 2021, and 2020 , the Company issued 522,475 , 258,120 , and 229,408 restricted shares of stock-based compensation awards, issued 0 , 317,398 , and 444,557 shares of other stock-based compensation awards, and issued 129,638 , 16,803 , and 47,156 restricted stock units; and recognized $ 3.5 million, $ 2.3 million, and $ 2.0 million, or $ 0.15 , $ 0.09 , and $ 0.08 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2022 , the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $ 3.9 million, which is expected to be recognized over the next 9 quarters. Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the 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, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions with, such as certain purchases of assets, the Company or its affiliates. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15 %, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2022, the Bank’s Tier 1 leverage ratio was 16.2 % . The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory December 31, (Dollars in thousands) Minimum Well-Capitalized 2022 2021 Common equity tier 1 capital $ 242,049 $ 193,459 Tier 1 capital 310,837 262,247 Total capital 334,913 281,211 Average assets 1,917,904 1,495,726 Risk-weighted assets 1,888,530 1,482,678 Leverage ratio (1) 4.0 % 5.0 % 16.2 % 17.5 % Common equity tier 1 capital ratio (2) 7.0 6.5 12.8 13.1 Tier 1 capital ratio (3) 8.5 8.0 16.5 17.7 Total capital ratio (3) 10.5 10.0 17.7 19.0 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of December 31, 2022 and 2021 reflect the capital conservation buffer of 2.5 %. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 2022 and 2021 . Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losse s modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company adopted Topic 326 on January 1, 2023. The Company anticipates the adoption will increase in the Company's allowance for loan losses (allowance for credit losses under CECL) by $ 11.6 million for consumer loans and a $ 2.2 million increase with respect to the Company's commercial loans. The medallion loan allowance will not be affected. With the adoption of CECL, the Company expects that there will be earlier recognition of credit losses, including a near-term effect of larger loan loss provisions, compared to the incurred losses accounting standard. In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements, or Topic 205: Depository and Lending, or Topic 942: and Financial Services – Investment Companies, or Topic 946: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This new standard amends certain Securities and Exchange Commission, or the SEC, paragraphs from the Codification in response to the issuance of SEC Final Rule No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses and SEC Rule No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The Company has assessed the impact of the update and determined it does not have a material impact on the accompanying financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses, or Topic 326: Troubled Debt Restructurings and Vintage Disclosures, or ASU 2022-02. The main objective of this new standard is to amend ASU 2016-13 in response to feedback received from the post-implementation review process. The amendments update ASU 2016-13 to require that an entity measure and record the lifetime expected credit losses on an asset upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. The amendments also require the disclosure of current period gross write-offs, by year of origination, for financing receivables. ASU 2022-02 was effective upon the adoption of ASU 2016-13. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement, or Topic 820: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2016-13. This new standard is effective for the fiscal years beginning after December 31, 2023 and clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company has assessed the impact of the update and determined it does not have a material impact on the accompanying financial statements. Reclassifications Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Investments [Abstract] | |
Investment Securities | (3) INVESTMENT SECURITIES The following tables present details of fixed maturity securities available for sale as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ 43,286 $ — $ ( 4,933 ) $ 38,353 State and municipalities 11,015 13 ( 889 ) 10,139 Total $ 54,301 $ 13 $ ( 5,822 ) $ 48,492 December 31, 2021 (Dollars in thousands) Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ 35,469 $ 672 $ ( 403 ) $ 35,738 State and municipalities 9,025 60 ( 51 ) 9,034 Total $ 44,494 $ 732 $ ( 454 ) $ 44,772 The amortized cost and estimated market value of investment securities as of December 31, 2022 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2022 (Dollars in thousands) Amortized Fair Due in one year or less $ — $ — Due after one year through five years 9,625 9,222 Due after five years through ten years 9,303 8,170 Due after ten years 35,373 31,100 Total $ 54,301 $ 48,492 The following tables show information pertaining to securities with gross unrealized losses as of December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows. Less than Twelve Months Twelve Months and Over December 31, 2022 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ ( 731 ) $ 12,321 $ ( 4,202 ) $ 26,023 State and municipalities ( 286 ) 4,628 ( 603 ) 3,502 Total $ ( 1,017 ) $ 16,949 $ ( 4,805 ) $ 29,525 Less than Twelve Months Twelve Months and Over December 31, 2021 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ ( 403 ) $ 16,330 $ — $ — State and municipalities ( 9 ) 2,124 ( 42 ) 1,956 Total $ ( 412 ) $ 18,454 $ ( 42 ) $ 1,956 As of December 31, 2022 and 2021 , the Company had 57 and 15 securities with unrealized losses that have not been recognized in income because the issuers' bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
Loans and Allowance for Loan Losses | (4) LOANS AND ALLOWANCE FOR LOAN LOSSES The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2022 and 2021. As of December 31, 2022 2021 (Dollars in thousands) Amount As a Amount As a Recreation $ 1,183,512 62 % $ 961,320 65 % Home improvement 626,399 33 436,772 29 Commercial 92,899 5 76,696 5 Medallion 13,571 1 14,046 1 Strategic partnership 572 * 90 * Total gross loans 1,916,953 100 % 1,488,924 100 % Allowance for loan losses ( 63,845 ) ( 50,166 ) Total net loans $ 1,853,108 $ 1,438,758 (*) Less than 1%. The following tables show the activity of the gross loans for the years ended December 31, 2022 and 2021. (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – December 31, 2021 $ 961,320 $ 436,772 $ 76,696 $ 14,046 $ 90 $ 1,488,924 Loan originations 513,062 392,543 28,172 605 49,526 983,908 Principal payments, sales, maturities, and recoveries ( 259,326 ) ( 196,203 ) ( 6,610 ) ( 419 ) ( 49,044 ) ( 511,602 ) Charge-offs ( 27,055 ) ( 6,393 ) ( 6,083 ) ( 314 ) — ( 39,845 ) Transfer to loan collateral in process of foreclosure, net ( 12,444 ) — — ( 347 ) — ( 12,791 ) Amortization of origination costs ( 10,470 ) 1,763 — — — ( 8,707 ) Amortization of loan premium ( 213 ) ( 322 ) — — — ( 535 ) FASB origination costs, net 18,638 ( 1,761 ) — — — 16,877 Paid-in-kind interest — — 724 — — 724 Gross loans – December 31, 2022 $ 1,183,512 $ 626,399 $ 92,899 $ 13,571 $ 572 $ 1,916,953 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – December 31, 2020 $ 792,686 $ 334,033 $ 65,327 $ 37,768 $ 24 $ 1,229,838 Loan originations 441,921 258,038 36,415 — 10,997 747,371 Principal payments, sales, maturities, and recoveries ( 252,293 ) ( 153,044 ) ( 25,873 ) ( 1,363 ) ( 10,931 ) ( 443,504 ) Charge-offs ( 14,712 ) ( 2,949 ) — ( 15,287 ) — ( 32,948 ) Transfer to loan collateral in process of foreclosure, net ( 10,431 ) — — ( 5,457 ) — ( 15,888 ) Amortization of origination costs ( 9,678 ) 1,671 13 ( 2 ) — ( 7,996 ) Amortization of loan premium ( 221 ) ( 346 ) — ( 1,615 ) — ( 2,182 ) FASB origination costs, net 14,048 ( 631 ) — 2 — 13,419 Paid-in-kind interest — — 814 — — 814 Gross loans – December 31, 2021 $ 961,320 $ 436,772 $ 76,696 $ 14,046 $ 90 $ 1,488,924 The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2022 and 2021. December 31, (Dollars in thousands) 2022 2021 Allowance for loan losses – beginning balance $ 50,166 $ 57,548 Charge-offs Recreation ( 27,055 ) ( 14,712 ) Home improvement ( 6,393 ) ( 2,949 ) Commercial ( 6,083 ) — Medallion ( 314 ) ( 15,287 ) Total charge-offs ( 39,845 ) ( 32,948 ) Recoveries Recreation 13,785 12,131 Home improvement 2,761 2,398 Commercial 47 — Medallion 6,872 6,415 Total recoveries 23,465 20,944 Net charge-offs (1) ( 16,380 ) ( 12,004 ) Provision for loan losses 30,059 4,622 Allowance for loan losses – ending balance (2) $ 63,845 $ 50,166 (1) As of December 31, 2022 , cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 244.2 million, some of which represent collection opportunities for the Company. (2) As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. The following tables set forth the allowance for loan losses by type as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Amount Percentage Allowance as Allowance as Recreation $ 41,966 66 % 3.55 % 130.60 % Home improvement 11,340 18 1.81 35.29 Commercial 1,049 1 1.13 3.26 Medallion 9,490 15 69.93 29.53 Total $ 63,845 100 % 3.33 % 198.69 % December 31, 2021 (Dollars in thousands) Amount Percentage Allowance as Allowance as Recreation $ 32,435 64 % 3.37 % 91.18 % Home improvement 7,356 15 1.68 20.68 Commercial 1,141 2 1.49 3.21 Medallion 9,234 19 65.74 25.96 Total $ 50,166 100 % 3.37 % 141.03 % The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Total nonaccrual loans $ 32,133 $ 35,571 $ 61,767 Interest foregone for the year 1,267 1,620 3,311 Amount of foregone interest applied to principal for the year 375 432 602 Interest foregone life-to-date 2,419 3,623 5,252 Amount of foregone interest applied to principal life-to-date 1,204 942 792 Percentage of nonaccrual loans to gross loan portfolio 1.7 % 2.4 % 5.0 % Percentage of allowance for loan losses to nonaccrual loans 198.7 % 141.0 % 93.0 % The following tables present the performance status of loans as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Performing Nonperforming Total Percentage of Recreation $ 1,173,846 $ 9,666 $ 1,183,512 0.82 % Home improvement 625,820 579 626,399 0.09 Commercial 84,165 8,734 92,899 9.40 Medallion — 13,571 13,571 100.00 Strategic partnership 572 — 572 — Total $ 1,884,403 $ 32,550 $ 1,916,953 1.70 % December 31, 2021 (Dollars in thousands) Performing Nonperforming Total Percentage of Recreation $ 955,763 $ 5,557 $ 961,320 0.58 % Home improvement 436,640 132 436,772 0.03 Commercial 60,366 16,330 76,696 21.29 Medallion — 14,046 14,046 100.00 Strategic partnership 90 — 90 — Total $ 1,452,859 $ 36,065 $ 1,488,924 2.42 % For those loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming. The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2022 and 2021, all of which had an allowance recorded against the principal balance. December 31, 2022 2021 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related With an allowance recorded Recreation $ 9,666 $ 9,666 $ 343 $ 5,557 $ 5,557 $ 188 Home improvement 579 579 10 132 132 2 Commercial 8,734 8,823 963 16,330 16,360 1,141 Medallion 13,571 14,686 9,490 14,046 14,958 8,837 Total nonperforming loans with an allowance $ 32,550 $ 33,754 $ 10,806 $ 36,065 $ 37,007 $ 10,168 Year Ended December 31, 2022 2021 (Dollars in thousands) Average Interest Income Average Interest Income With an allowance recorded Recreation $ 9,093 $ 401 $ 5,618 $ 515 Home improvement 514 4 108 — Commercial 13,381 — 16,816 93 Medallion 16,019 — 17,538 — Total nonperforming loans with an allowance $ 39,007 $ 405 $ 40,080 $ 608 The following tables show the aging of all loans as of December 31, 2022 and 2021. December 31, 2022 Days Past Due Recorded (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Accruing Recreation $ 31,781 $ 11,877 $ 7,365 $ 51,023 $ 1,095,072 $ 1,146,095 $ — Home improvement 3,266 1,256 579 5,101 623,776 628,877 — Commercial — — 74 74 93,396 93,470 — Medallion 142 393 885 1,420 12,151 13,571 — Strategic partnership — — — — 572 572 — Total $ 35,189 $ 13,526 $ 8,903 $ 57,618 $ 1,824,967 $ 1,882,585 $ — (1) Excludes $ 34.9 million of capitalized loan origination costs. December 31, 2021 Days Past Due Recorded (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Accruing Recreation $ 20,037 $ 6,569 $ 3,818 $ 30,424 $ 901,435 $ 931,859 $ — Home improvement 1,517 479 132 2,128 436,803 438,931 — Commercial 1,795 — 74 1,869 74,827 76,696 — Medallion 215 7,125 — 7,340 6,706 14,046 — Strategic partnership — — — — 90 90 — Total $ 23,564 $ 14,173 $ 4,024 $ 41,761 $ 1,419,861 $ 1,461,622 $ — (1) Excludes loan premiums of $ 0.5 million and $ 26.8 million of capitalized loan origination costs. The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 339 % and 295 % as of December 31, 2022 and 2021. The following table shows the TDRs which the Company entered into during the year ended December 31, 2022. (Dollars in thousands) Number of Loans Pre- Post- Recreation loans 80 1,203 1,203 Medallion loans 2 252 252 As of December 31, 2022 , no medallion loans and two commercial loans were modified as TDRs in the previous 12 months. Modified medallion loans and commercial loans had a respective investment value of $ 0.9 million and $ 5.3 million. As of December 31, 2022 , 63 recreation loans modified as TDRs were in default and had an investment value of $ 0.9 million. The following table shows the TDRs which the Company entered into during the year ended December 31, 2021. (Dollars in thousands) Number of Loans Pre- Post- Recreation loans 56 668 585 Medallion loans 11 3,071 3,071 As of December 31, 2021 , one medallion loan modified as TDRs in the previous 12 months were in default and had an investment value of $ 0.2 million. As of December 31, 2021 , 31 recreation loans modified as TDRs were in default and had an investment value of $ 0.3 million. The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 (Dollars in thousands) Recreation Medallion (1) Total Loan collateral in process of foreclosure – December 31, 2021 $ 1,720 $ 35,710 $ 37,430 Transfer from loans, net 12,444 347 12,791 Sales ( 7,707 ) ( 2,668 ) ( 10,375 ) Cash payments received — ( 12,289 ) ( 12,289 ) Collateral valuation adjustments ( 5,081 ) ( 657 ) ( 5,738 ) Loan collateral in process of foreclosure – December 31, 2022 $ 1,376 $ 20,443 $ 21,819 (1) As of December 31, 2022 , medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets. Year Ended December 31, 2021 (Dollars in thousands) Recreation Medallion (1) Total Loan collateral in process of foreclosure – December 31, 2020 $ 1,432 $ 53,128 $ 54,560 Transfer from loans, net 10,431 5,457 15,888 Sales ( 6,951 ) ( 2,928 ) ( 9,879 ) Cash payments received — ( 14,173 ) ( 14,173 ) Collateral valuation adjustments ( 3,192 ) ( 5,774 ) ( 8,966 ) Loan collateral in process of foreclosure – December 31, 2021 $ 1,720 $ 35,710 $ 37,430 (1) As of December 31, 2021 , medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets. |
Funds Borrowed
Funds Borrowed | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (5) FUNDS BORROWED The following table presents outstanding balances of funds borrowed. Payments Due for the Year Ending December 31, (Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter December 31, 2022 (1) December 31, 2021 (1) Interest (2) Deposits (3) $ 508,218 $ 419,560 $ 384,720 $ 149,329 $ 147,845 $ — $ 1,609,672 $ 1,253,288 1.91 % Retail and privately placed notes — 36,000 — 31,250 53,750 — 121,000 121,000 7.66 SBA debentures and borrowings 5,000 7,762 14,000 14,000 2,000 25,750 68,512 69,963 3.08 Preferred securities — — — — — 33,000 33,000 33,000 6.86 Total $ 513,218 $ 463,322 $ 398,720 $ 194,579 $ 203,595 $ 58,750 $ 1,832,184 $ 1,477,251 2.43 % (1) Excludes deferred financing costs of $ 7.0 million and $ 7.1 million as of December 31, 2022 and 2021 . (2) Weighted average contractual rate as of December 31, 2022 . (3) Balance excludes $ 1.3 million and $ 0.8 million of strategic partner reserve deposits as of December 31, 2022 and 2021 . (A) DEPOSITS Substantially all deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $ 250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15 %. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. The Bank did no t have any uninsured deposits as of December 31, 2022 and 2021. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions and, as of December 31, 2022 and 2021, the Bank had $ 12.4 million and $ 8.7 million in listing service deposit balances. The following table presents the maturity of the deposit pools, which excludes strategic partner reserve deposits, as of December 31, 2022. (Dollars in thousands) December 31, 2022 Three months or less $ 152,517 Over three months through six months 117,179 Over six months through one year 238,522 Over one year 1,101,454 Total deposits $ 1,609,672 (B) PRIVATELY PLACED NOTES In February 2021, the Company completed a private placement to certain institutional investors of $ 25.0 million aggregate principal amount of 7.25 % unsecured senior notes due February 2026 , with interest payable semiannually. In March 2021, an additional $ 3.3 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $ 3.0 million principal amount of such notes was issued to certain institutional investors. The Company used the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt. In December 2020, the Company completed a private placement to certain institutional investors of $ 33.6 million aggregate principal amount of 7.50 % unsecured senior notes due December 2027 , with interest payable semiannually. In February and March 2021, an additional $ 8.5 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $ 11.7 million principal amount of such notes was issued to certain institutional investors. The Company used the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt. In March 2019, the Company completed a private placement to certain institutional investors of $ 30.0 million aggregate principal amount of 8.25 % unsecured senior notes due 2024 , with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including repaying certain borrowings under its notes payable to banks at a discount which led to a gain of $ 4.1 million in 2019. In August 2019, an additional $ 6.0 million principal amount of such notes was issued to certain institutional investors. (C) SBA DEBENTURES AND BORROWINGS Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1 % fee, of which the fee was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $ 33.5 million in principal into a new loan by the SBA to FSVC in the principal amount of $ 34.0 million, or the SBA Loan. In connection with the SBA Loan, FSVC executed a Note, or the SBA Note, with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $ 34.0 million. The SBA Loan bears interest at a rate of 3.25 % and all remaining unpaid principal and interest are due on April 30, 2024 , the maturity date. As of December 31, 2022, there were $ 4.8 million commitments available, and $ 68.5 million was outstanding, including $ 2.8 million under the SBA Note. On July 31, 2020, MCI accepted a commitment from the SBA for $ 25.0 million in debenture financing. As part of the acceptance, MCI paid the SBA a 1 % commitment fee. The commitment expires September 24, 2024 . As of December 31, 2022 , $ 20.2 million of the commitment had been drawn, including $ 8.5 million to replace debentures which matured in 2021. (D) PREFERRED SECURITIES In June 2007, the Company issued and sold $ 36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $ 35.0 million of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR ( 4.77 % at December 31, 2022 ) plus 2.13 %. With the cessation of LIBOR in 2023, interest will be calculated using the Secured Overnight Financing Rate (SOFR) adjusted by a relevant spread adjustment of approximately 43 basis points , 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, $ 2.0 million of the preferred securities were repurchased from a third-party investor. As of December 31, 2022, $ 33.0 million was outstanding on the preferred securities. (E) COVENANT COMPLIANCE From time to time, the Company may enter into debt agreements which may contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios and minimum net worth. As of December 31, 2022 , the Company did not have any borrowing agreements that contained any such restrictions |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
leases | (6) LEASES The Company has leased premises that expire at various dates through November 30, 2030 subject to various operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach, in which no adjustments have been made to the prior year balances. The following table presents the operating lease costs and additional information for the years ended December 31, 2022, 2021, and 2020. December 31, (Dollars in thousands) 2022 2021 2020 Operating lease costs $ 2,216 $ 2,287 $ 2,384 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 2,378 2,454 2,821 Right-of-use asset obtained in exchange for lease liability ( 187 ) ( 118 ) 251 The following table presents the breakout of the operating leases as of December 31, 2022 and 2021. December 31, (Dollars in thousands) 2022 2021 Operating lease right-of-use assets $ 9,723 $ 10,045 Other current liabilities 2,239 2,159 Operating lease liabilities 8,408 9,053 Total operating lease liabilities 10,647 11,212 Weighted average remaining lease term 5.5 years 5.4 years Weighted average discount rate 5.66 % 5.54 % The following table presents maturities of the lease liabilities as of December 31, 2022 . (Dollars in thousands) 2023 $ 2,518 2024 2,526 2025 2,505 2026 2,440 2027 1,212 Thereafter 1,290 Total lease payments 12,491 Less imputed interest 1,844 Total operating lease liabilities $ 10,647 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) INCOME TAXES The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C of the Internal Revenue Code, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries in which it holds 80% or more of the outstanding equity interest measured by both vote and fair value. The following table sets forth the significant components of the Company's deferred and other tax assets and liabilities as of December 31, 2022 and 2021. December 31, (Dollars in thousands) 2022 2021 Goodwill and other intangibles $ ( 43,397 ) $ ( 43,894 ) Provision for loan losses 9,945 11,057 Net operating loss carryforwards (1) 3,730 12,167 Accrued expenses, compensation, and other assets 3,819 2,579 Unrealized gains on other investments 1,445 2,176 Total deferred tax liability ( 24,458 ) ( 15,915 ) Valuation allowance ( 2,295 ) ( 2,295 ) Deferred tax liability, net $ ( 26,753 ) $ ( 18,210 ) (1) As of December 31, 2022 , the Company had an estimated $ 11.1 million of net operating loss carryforwards, $ 1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035 , which had a net carrying value of $ 1.4 million of December 31, 2022 . The following table shows the components of the Company's tax (provision) benefit for the years ended December 31, 2022, 2021, and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Current Federal $ ( 5,213 ) $ ( 3,550 ) $ — State ( 560 ) ( 1,563 ) ( 260 ) Deferred Federal ( 8,090 ) ( 13,686 ) 7,702 State ( 4,100 ) ( 5,418 ) 2,632 Net (provision) benefit for income taxes $ ( 17,963 ) $ ( 24,217 ) $ 10,074 The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2022, 2021, and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Statutory Federal income tax (provision) benefit at 21 % $ ( 14,249 ) $ ( 17,193 ) $ 7,766 State and local income taxes, net of federal income tax benefit ( 2,787 ) ( 3,363 ) 1,518 Valuation allowance against net operating losses — ( 1,833 ) 1,228 Change in effective state income tax rates and accrual 811 ( 1,691 ) ( 405 ) Income attributable to non-controlling interest — 628 460 Non-deductible expenses ( 1,987 ) ( 178 ) ( 453 ) Other 249 ( 587 ) ( 40 ) Total income tax (provision) benefit $ ( 17,963 ) $ ( 24,217 ) $ 10,074 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of December 31, 2022. The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2019 through the present are the more significant filings that are open for examination. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options and Restricted Stock | (8) STOCK OPTIONS AND RESTRICTED STOCK The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020, and subsequently on April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 14, 2022. A total of 5,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 3,295,129 remained issuable as of December 31, 2022. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first. The Company had a stock option plan, or the 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, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan was administered by the Compensation Committee of the Board of Directors. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. The term and vesting periods of the options were determined by the Compensation Committee, provided that the maximum term of an option could not exceed a period of ten years . The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the SEC on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years . The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan, or 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 were issuable under the Amended Director Plan. No additional shares are available for issuance under the Amended Director Plan. 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 would 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 were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options could not exceed ten years . Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2022 , 1,061,849 options on the Company’s common stock were outstanding under the Company’s plans, of which 548,426 options were exercisable. Additionally, there were 857,288 unvested shares under the Company’s restricted common stock plan, 114,946 unvested restricted stock units and 61,642 vested restricted stock units under the Company’s restricted stock plans. 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 were $ 3.50 , and $ 3.09 per share for the years ended December 31, 2021 and 2020 . There were no options granted during the year ended December 31, 2022 . The following assumption categories are used to determine the value of any option grants. Year Ended December 31, 2022 2021 2020 Risk free interest rate — 0.97 % 1.23 % Expected dividend yield — — — Expected life of option in years (1) — 6.25 6.25 Expected volatility (2) — 53.98 % 51.03 % (1) Expected life is calculated usin g the simplified method. (2) The Company determines its expected volatility based on the Company's historical volatility . The following table presents the activity for the stock option programs for the years ended December 31, 2022, 2021, and 2020. Number of Exercise Weighted Outstanding at December 31, 2019 550,040 $ 2.14 - 13.53 $ 6.58 Granted 444,557 4.89 - 6.68 6.24 Cancelled ( 42,928 ) 2.22 - 13.53 6.91 Exercised (1) — — — Outstanding at December 31, 2020 (2) 951,669 2.14 - 12.55 6.41 Granted 317,398 6.79 6.79 Cancelled ( 113,310 ) 4.89 - 11.53 6.64 Exercised (1) ( 44,070 ) 5.21 - 7.25 5.58 Outstanding at December 31, 2021 (2) 1,111,687 2.14 - 12.55 6.41 Granted — — — Cancelled ( 26,093 ) 4.89 - 12.55 7.08 Exercised (1) ( 23,745 ) 4.89 - 7.25 6.51 Outstanding at December 31, 2022 (2) 1,061,849 $ 2.14 - 9.38 $ 6.51 Options exercisable at December 31, 2020 178,307 $ 2.14 - 12.55 $ 6.33 December 31, 2021 320,922 2.14 - 12.55 6.53 December 31, 2022 548,426 2.14 - 9.38 6.51 (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, wa s $ 0.1 million, $ 0.2 million, and $ 0 for the years ended December 31, 2022, 2021, and 2020 . (2) The aggregate intrinsic value, which represents the difference betwee n the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $ 0.7 million for outstanding options and $ 0.4 million for exercisable options as of December 31, 2022 . The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022 . The following table presents the activity for the restricted stock programs for the years ended December 31, 2022, 2021, and 2020. Number of Grant Weighted Outstanding at December 31, 2019 284,879 $ 3.95 - 7.25 $ 6.01 Granted 229,408 4.89 - 6.68 6.21 Cancelled ( 8,755 ) 3.95 - 7.25 6.93 Vested (1) ( 89,392 ) 3.95 - 6.55 5.37 Outstanding at December 31, 2020 416,140 4.39 - 7.25 6.24 Granted 258,120 6.79 - 8.40 7.38 Cancelled ( 21,940 ) 4.89 - 7.25 5.98 Vested (1) ( 158,994 ) 4.39 - 7.25 6.16 Outstanding at December 31, 2021 (2) 493,326 4.89 - 7.25 6.87 Granted 522,475 6.86 - 7.68 7.46 Cancelled ( 29,373 ) 4.89 - 8.40 7.32 Vested (1) ( 129,140 ) 4.89 - 7.25 6.53 Outstanding at December 31, 2022 (2) 857,288 $ 4.89 - 7.25 $ 7.27 (1) The aggregate fair value of the restricted stock vested was $ 1.0 million, $ 1.1 million, and $ 0.6 million for the years ended December 31, 2022, 2021, and 2020 . (2) The aggregate fair value of the restricted stock was $ 6.1 million as of December 31, 2022 . The remaining vesting period was 2.17 years at December 31, 2022 . During the year ended December 31, 2022 , the Company granted 129,638 restricted stock units (RSUs) with a vesting date of June 14, 2023 at a grant price of $6. 75 and during the year ended December 31, 2021 granted 16,803 RSUs with a vesting date of June 17, 2022 with a grant price of $ 8.87 . For the RSUs granted in 2022 and 2021, u nitholders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of December 31, 2022 , there were 176,588 RSUs outstanding, including 61,642 which had previously vested. The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2022. Number of Exercise Price Weighted Outstanding at December 31, 2021 790,765 $ 4.89 - 7.25 $ 6.52 Granted — — — Cancelled ( 20,370 ) 4.89 - 7.25 6.34 Vested ( 256,972 ) 4.89 - 7.25 6.55 Outstanding at December 31, 2022 513,423 $ 4.89 - 7.25 $ 6.52 The intrinsic value of the options vested was $ 0.3 million for the year ended December 31, 2022 and less than $ 0.1 million for the years ended December 31, 2021 and 2020 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | (9) SEGMENT REPORTING The Company has five business segments, which include four lending and one non-operating segments, which are reflective of how Company management makes decisions about its business and operations. The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank and loans are made to borrowers residing nationwide. The highest concentrations of recreation loans are in Texas and Florida at 16 % and 11 % of loans outstanding and with no other states over 10 % as of December 31, 2022. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 58 % , 19 % , and 14 % of the segment portfolio with no other product lines exceeding 10 % as of December 31, 2022. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being roofs, swimming pools, and windows at 37 % , 23 % , and 12 % , with no other product lines exceeding 10 % . The highest concentrations of home improvement loans are in Texas and Florida at 10 % and 10 % , of loans outstanding and with no other states over 10 % as of December 31, 2022. The commercial lending segment focuses on enterprise wide industries, including manufacturing and various other industries, in which 44 % of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, substantially all of which are located in the New York City metropolitan area as of December 31, 2022. The Company's corporate and other investments segment is a non-operating segment that includes items not allocated to the Company's operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. Additionally, through December 1, 2021, the date of disposition, the Company had another non-operating segment, RPAC, a race car team. As part of segment reporting, capital ratios for all operating segments have been normalized as a percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment primarily represents the mezzanine lending business, with certain legacy commercial loans (immaterial to total) allocated to corporate and other investments. The following table presents segment data as of and for the year ended December 31, 2022. Year Ended December 31, 2022 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 139,145 $ 44,703 $ 9,348 $ 632 $ 2,793 $ 196,621 Total interest expense 17,932 7,697 3,040 508 7,008 36,185 Net interest income (loss) 121,213 37,006 6,308 124 ( 4,215 ) 160,436 Provision (benefit) for loan losses 22,802 7,616 5,963 ( 6,474 ) 152 30,059 Net interest income (loss) after loss provision 98,411 29,390 345 6,598 ( 4,367 ) 130,377 Other expense, net ( 30,463 ) ( 13,500 ) ( 1,604 ) ( 6,179 ) ( 10,781 ) ( 62,527 ) Net income (loss) before taxes 67,948 15,890 ( 1,259 ) 419 ( 15,148 ) 67,850 Income tax (provision) benefit ( 17,989 ) ( 4,207 ) 333 ( 111 ) 4,011 ( 17,963 ) Net income (loss) after taxes 49,959 11,683 ( 926 ) 308 ( 11,137 ) 49,887 Income attributable to the non-controlling interest 6,047 Total net income attributable to Medallion Financial Corp. $ 43,840 Balance Sheet Data Total loans net $ 1,141,546 $ 615,059 $ 91,850 $ 4,081 $ 572 $ 1,853,108 Total assets 1,154,680 618,923 101,447 24,648 360,181 2,259,879 Total funds borrowed 936,789 502,131 82,304 19,997 292,214 1,833,435 Selected Financial Ratios Return on average assets 4.71 % 2.23 % ( 0.90 )% 0.74 % ( 3.12 )% 2.40 % Return on average equity 26.83 12.72 ( 5.28 ) 4.03 ( 18.62 ) 13.74 Return on average stockholders' equity * * * * * 14.92 Interest yield 13.28 8.64 10.78 14.05 N/A 11.06 Net interest margin 11.57 7.16 7.28 2.76 N/A 9.05 Reserve coverage 3.55 1.81 1.13 69.93 N/A 3.33 Delinquency status (1) 0.64 0.09 0.08 6.52 N/A 0.47 Charge-off ratio (2) 1.27 0.70 6.96 ( 145.76 ) N/A 0.99 (1) Loans 90 days or more past due. (2) Negative balances indicate recoveries for the period (*) Line item is not applicable to segments. The following table presents segment data as of and for the year ended December 31, 2021. Year Ended December 31, 2021 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion RPAC (2) Corporate and Other Investments Consolidated Total interest income (loss) $ 118,305 $ 34,204 $ 6,592 $ ( 1,483 ) $ — $ 1,348 $ 158,966 Total interest expense 9,993 4,153 2,720 5,914 546 7,814 31,140 Net interest income (loss) 108,312 30,051 3,872 ( 7,397 ) ( 546 ) ( 6,466 ) 127,826 Provision (benefit) for loan losses 7,671 2,750 — ( 7,752 ) — 1,953 4,622 Net interest income (loss) after loss provision 100,641 27,301 3,872 355 ( 546 ) ( 8,419 ) 123,204 Sponsorship and race winnings — — — — 12,567 — 12,567 Race team related expenses — — — — ( 9,559 ) — ( 9,559 ) Other income (expense), net ( 30,156 ) ( 11,640 ) 3,101 ( 1,991 ) ( 5,108 ) 1,453 ( 44,341 ) Net income (loss) before taxes 70,485 15,661 6,973 ( 1,636 ) ( 2,646 ) ( 6,966 ) 81,871 Income tax (provision) benefit ( 18,699 ) ( 4,155 ) ( 1,850 ) 433 ( 1,498 ) 1,552 ( 24,217 ) Net income (loss) after taxes 51,786 11,506 5,123 ( 1,203 ) ( 4,144 ) ( 5,414 ) 57,654 Income attributable to the non-controlling interest 3,546 Total net income attributable to Medallion Financial Corp. $ 54,108 Balance Sheet Data Total loans net $ 928,885 $ 429,416 $ 73,713 $ 4,812 $ — $ 1,932 $ 1,438,758 Total assets 896,223 371,781 103,631 42,011 — 459,411 1,873,057 Total funds borrowed 710,616 294,786 82,169 69,221 — 328,358 1,485,150 Selected Financial Ratios Return on average assets 6.00 % 3.01 % 5.85 % ( 1.15 )% 20.35 % ( 1.89 )% 3.33 % Return on average equity 30.01 15.04 29.23 ( 5.75 ) 885.29 ( 13.62 ) 17.64 Return on average stockholders' equity * * * * * * 21.24 Interest yield 13.94 9.30 10.41 ( 18.77 ) N/A N/A 11.48 Net interest margin 12.76 8.17 6.12 ( 93.60 ) N/A N/A 9.26 Reserve coverage 3.37 1.68 1.49 65.74 N/A N/A 3.37 Delinquency status (1) 0.41 0.03 0.10 — N/A N/A 0.28 Charge-off ratio 0.30 0.15 — 95.40 N/A N/A 0.85 (1) Loans 90 days or more past due. (2) The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale. (*) Line item is not applicable to segments. The following table presents segment data as of and for the year ended December 31, 2020. Year Ended December 31, 2020 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion RPAC Corporate and Other Investments Consolidated Total interest income (loss) $ 110,706 $ 27,273 $ 6,926 $ ( 1,518 ) $ — $ 1,575 $ 144,962 Total interest expense 13,013 5,699 2,538 3,610 163 9,128 34,151 Net interest income (loss) 97,693 21,574 4,388 ( 5,128 ) ( 163 ) ( 7,553 ) 110,811 Provision for loan losses 23,736 3,778 — 42,276 — 27 69,817 Net interest income (loss) after loss provision 73,957 17,796 4,388 ( 47,404 ) ( 163 ) ( 7,580 ) 40,994 Sponsorship and race winnings — — — — 20,042 — 20,042 Race team related expenses — — — — ( 8,366 ) — ( 8,366 ) Other expense, net ( 27,341 ) ( 9,611 ) ( 3,196 ) ( 30,366 ) ( 7,973 ) ( 11,164 ) ( 89,651 ) Net income (loss) before taxes 46,616 8,185 1,192 ( 77,770 ) 3,540 ( 18,744 ) ( 36,981 ) Income tax (provision) benefit ( 12,004 ) ( 2,108 ) ( 299 ) 19,520 ( 889 ) 5,854 10,074 Net income (loss) after taxes 34,612 6,077 893 ( 58,250 ) 2,651 ( 12,890 ) ( 26,907 ) Income attributable to the non-controlling interest 7,876 Total net loss attributable to Medallion Financial Corp. $ ( 34,783 ) Balance Sheet Data Total loans net $ 765,338 $ 328,876 $ 62,037 $ 12,725 $ — $ 3,314 $ 1,172,290 Total assets 777,605 340,494 80,622 124,554 33,711 285,425 1,642,411 Total funds borrowed 621,735 272,284 65,924 98,636 8,689 244,987 1,312,255 Selected Financial Ratios Return on average assets 4.59 % 2.07 % 1.07 % ( 33.21 )% 7.98 % ( 5.06 )% ( 1.67 )% Return on average equity 22.93 10.35 5.17 ( 165.21 ) ( 363.66 ) ( 23.29 ) 8.43 Return on average stockholders' equity * * * * * * ( 14.06 ) Interest yield 14.90 9.66 10.51 ( 2.11 ) N/A N/A 11.32 Net interest margin 13.15 7.62 6.66 ( 7.14 ) N/A N/A 8.65 Reserve coverage 3.45 1.54 0.00 66.31 N/A N/A 4.68 Delinquency status (1) 0.70 0.05 0.11 3.57 N/A N/A 0.57 Charge-off ratio 1.95 0.44 0.04 59.38 N/A N/A 5.00 (1) Loans 90 days or more past due. (*) Line item is not applicable to segments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) COMMITMENTS AND CONTINGENCIES (A) EMPLOYMENT AGREEMENTS The Company has employment agreements with certain key officers for either a one-, two-, three- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year of each five-year term, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one or two-year term (as applicable); however, there is currently one agreement that renews after two years for additional one- year terms. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period. Employment agreements expire at various dates through 2027 , with future minimum payments under these agreements of approximately $ 11.8 million as follows: (Dollars in thousands) 2023 $ 4,128 2024 2,493 2025 2,131 2026 2,131 2027 888 Thereafter — Total $ 11,771 (B) OTHER COMMITMENTS As of December 31, 2022 the Company had no other commitments. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. (C) SEC LITIGATION On December 29, 2021, the SEC filed a civil complaint in the U.S. District Court for the Southern District of New York against the Company and its President and Chief Operating Officer alleging certain violations of the antifraud, books and records, internal controls and anti-touting provisions of the federal securities laws. The litigation relates to certain issues that occurred during the period 2015 to 2017, including (i) the Company’s retention of third parties in 2015 and 2016 concerning posting information about the Company on certain financial websites and (ii) the Company’s financial reporting and disclosures concerning certain assets, including Medallion Bank, in 2016 and 2017, a period when the Company had previously reported as a business development company (BDC) under the Investment Company Act of 1940. Since April 2018, the Company does not report as a BDC, and has not worked with such third parties since 2016. The Company does not expect to change previously reported financial results. The Company filed a motion to dismiss the complaint on March 22, 2022, the SEC filed an amended complaint on April 26, 2022 and the Company filed a motion to dismiss the amended complaint on August 5, 2022. The SEC is seeking injunctive relief, disgorgement plus pre-judgment interest and civil penalties in amounts unspecified, as well as an officer and director bar against the Company’s President and Chief Operating Officer. The Company and its President and Chief Operating Officer intend to defend themselves vigorously and believe that the SEC will not prevail on its claims. Nevertheless, depending on the outcome of the litigation, the Company could incur a loss and other penalties that could be material to the Company, its results of operations and/or financial condition, as well as a bar against its President and Chief Operating Officer. In addition, the Company has and expects to further incur significant legal fees and expenses in defending such charges by the SEC and the Company may be subject to shareholder litigation relating to these SEC matters. (D) OTHER LITIGATION AND REGULATORY MATTERS The Company and its subsidiaries are subject to inquiries from certain regulators and are currently involved in various legal proceedings incident to the normal course of business, including collection matters with respect to certain loans. The Company intends to vigorously defend any outstanding claims and pursue its legal rights. In the opinion of management, based on the advice of legal counsel, except for the pending SEC litigation, as described above, there is no proceeding pending, or to the knowledge of management threatened, which in the event of an adverse decision could result in a material adverse impact on the financial condition or results of operations of the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (11) RELATED PARTY TRANSACTIONS Certain directors, officers, and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company. Jeffrey Rudnick, the son of one of the Company’s directors, served as the Company’s Senior Vice President at a salary of $ 239,000 and 195,000 per year during 2022 and 2021, which was increased to $ 250,950 effective January 1, 2023. Mr. Rudnick received an annual cash bonus of $ 85,000 , $ 75,000 , and $ 32,500 as well as an equity bonus in the amount of $ 50,000 , $ 45,019 , and $ 30,000 for the years ended December 31, 2022, 2021, and 2020 . |
Stockholders'_Shareholders' Equ
Stockholders'/Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Stockholders'/Shareholders' Equity | (12) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY On April 29, 2022, the Company's board of directors authorized a new stock repurchase program, pursuant to which the Company was authorized to repurchase up to $ 35 million of its shares, which was increased to $ 40 million on August 10, 2022. Such new repurchase program replaced the previous one, which was terminated . During the year ended December 31, 2022 the Company repurchased 2,650,911 shares of its common stock at an aggregate cost of $ 20,618,843 . Accordingly, as of December 31, 2022, up to $ 19,998,012 of shares remain authorized for repurchase under the Company's stock repurchase program. There were no purchases during the years ended December 31, 2021 and 2020. The following table presents the Company’s purchases for the year ended December 31, 2022. Total Shares of Common Stock Repurchased Average Price Paid per Share Total Maximum Value of Shares Yet to Be Purchased January 1 - January 31 — $ — $ — $ 22,874,509 February 1 - February 28 — — — 22,874,509 March 1 - March 31 67,660 9.12 616,855 22,257,654 April 1 - April 30 — — — 22,257,654 May 1 - May 31 1,056,933 7.87 8,316,012 26,683,988 June 1 - June 30 215,217 7.71 1,658,542 25,025,447 July 1 - July 31 — — — 25,025,447 August 1 - August 31 734,547 7.93 5,822,227 24,203,219 September 1 - September 30 319,323 7.54 2,408,673 21,794,546 October 1 - October 31 257,231 6.98 1,796,534 19,998,012 November 1 - November 30 — — — 19,998,012 December 1 - December 31 — — — 19,998,012 Total 2,650,911 $ 7.78 20,618,843 $ 19,998,012 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | (13) EMPLOYEE BENEFIT PLANS The Company has a 401(k) Investment Plan, or the 401(k) Plan, which, effective June 1, 2022, covers all full-time and part-time employees of the Company who have attained the age of 18 and have a minimum of thirty (30) days of service. Under the 401(k) Plan, an employee may elect to defer not less than 1 % of total annual compensation, up to the applicable limits set forth in the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. Once eligible f ull-time employees have completed a minimum of ninety (90) days of service, and part time employees have worked at least 1,000 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to fifty percent of the first 8% of the employee’s annual contribu tions, subject to legal limits. Prior to June 1, 2022, the 401(k) Plan covered full- and part-time employees of the Company aged 21 and older that had completed a minimum of thirty (30) days of service, with the Company matching one-third of the first 6% of the contributions of eligible employees that had completed at least one (1) year of service (in the case of full-time employees) or 1,000 hours (in the case of part-time employees). T he Company’s 401(k) plan expense was approximately $ 0.3 million, $ 0.3 million, and $ 0.2 million for the years ended December 31, 2022, 2021, and 2020 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (14) 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) Cash and cash equivalents – Book value equals fair value. (b) Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes. (c) Investment securities – The Company’s investments are recorded at the estimated fair value of such investments. (d) Loans receivable – The Company’s loans are recorded at book value which approximated fair value. (e) Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value. (f) 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 December 31, 2022 and 2021, the estimated fair value of these off-balance-sheet instruments was not material. (g) Fixed rate borrowings – The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt. December 31, 2022 2021 (Dollars in thousands) Carrying Fair Carrying Fair Financial assets Cash, cash equivalents, and federal funds sold (1) $ 105,598 $ 105,598 $ 124,484 $ 124,484 Equity investments 10,293 10,293 9,726 9,726 Investment securities 48,492 48,492 44,772 44,772 Loans receivable 1,853,108 1,853,108 1,438,758 1,438,758 Accrued interest receivable (2) 12,613 12,613 10,621 10,621 Equity securities (3) 1,724 1,724 1,950 1,950 Financial liabilities Funds borrowed 1,833,434 1,833,434 1,478,001 1,478,001 Accrued interest payable (2) 4,790 4,790 3,395 3,395 (1) Categorized as level 1 within the fair value hierarchy, excluding $ 1.3 million as of December 31, 2022 and $ 1.3 million as of December 31, 2021 of interest-bearing deposits categorized as level 2. See Note 15. (2) Categorized as level 3 within the fair value hierarchy. See Note 15 . (3) Included within other assets on the balance sheet. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and liabilities | (15) 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. 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 (levels 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 (levels 1 and 2) and unobservable inputs (level 3). 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, and 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. Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented. 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 December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 48,492 — 48,492 Equity securities 1,724 — — 1,724 Total (1) $ 1,724 $ 49,742 $ — $ 51,466 (1) Total unrealized losses of $ 4.4 million , net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2022 related to these assets. December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 44,772 — 44,772 Equity securities 1,950 — — 1,950 Total (1) $ 1,950 $ 46,022 $ — $ 47,972 (1) Total unrealized losses of $ 1.0 million , net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,293 $ 10,293 Impaired loans — — 32,133 32,133 Loan collateral in process of foreclosure — — 21,819 21,819 Total $ — $ — $ 64,245 $ 64,245 December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,726 $ 9,726 Impaired loans — — 35,571 35,571 Loan collateral in process of foreclosure — — 37,430 37,430 Total $ — $ — $ 82,727 $ 82,727 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 non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2022 and 2021. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments $ 10,020 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 273 Precedent market transaction Offering price $ 8.73 / share Impaired loans 32,133 Market approach Historical and actual loss experience 0.00 % - 6.55 % 60 % of balance Transfer prices (2) $ 0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 21,819 Market approach Transfer prices (2) $ 0.0 - 79.5 Collateral value (3) $ 2.5 - 54.1 (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments $ 9,453 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 273 Precedent market transaction Offering price $ 8.73 / share Impaired loans 35,571 Market approach Historical and actual loss experience 1.50 % - 6.00 % 60 % of balance Transfer prices (2) $ 0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 37,430 Market approach Transfer prices (2) $ 0.0 - 79.5 Collateral value (3) $ 3.6 - 49.8 (1) Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities. (2) Represents amount net of liquidation costs. (3) Relates to the recreation portfolio. |
Medallion Bank Preferred Stock
Medallion Bank Preferred Stock (Non-controlling Interest) | 12 Months Ended |
Dec. 31, 2022 | |
Medallion Bank Preferred Stock (Non-controlling Interest) | (16) MEDALLION BANK PREFERRED STOCK (Non-controlling interest) On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $ 46.0 million aggregate liquidation amount, yielding net proceeds of $ 42.5 million, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8 % per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be three-month Secured Overnight Financing Rate, or SOFR ) plus a spread of 6.46 % per annum. On July 21, 2011, the Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E for an aggregate purchase price of $ 26.3 million under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $ 1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9 % on the Series E. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Statements | (17) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS The following shows the condensed financial information of Medallion Financial Corp. (parent company only). Condensed Balance Sheets December 31, (Dollars in thousands) 2022 2021 Assets Cash $ 20,669 $ 40,540 Investment in bank subsidiary (1) 479,496 367,945 Investment in non-bank subsidiaries 83,727 88,018 Income tax receivable 22,835 18,763 Loan collateral in process of foreclosure 2,001 5,811 Net loans receivable 2,538 3,302 Other assets 7,603 8,674 Total assets $ 618,869 $ 533,053 Liabilities Long-term borrowings (2) $ 151,808 $ 151,103 Deferred tax liabilities 38,091 35,799 Intercompany payables 33,378 39,703 Other liabilities 25,068 19,408 Total liabilities 248,345 246,013 Total stockholders’ equity 370,524 287,040 Total liabilities and equity $ 618,869 $ 533,053 (1) Includes $ 172.8 million and $ 174.3 million of goodwill and intangible assets of the Company which relate specifically to the Bank. (2) Includes $ 2.1 million and $ 2.9 million of deferred financing costs as of December 31, 2022 and 2021 . Condensed Statements of Operations Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Interest and dividend income $ 24,631 $ 16,446 $ 4,773 Interest expense 11,289 11,209 8,602 Net interest income (loss) 13,342 5,237 ( 3,829 ) Provision (benefit) for loan losses ( 353 ) ( 4,718 ) 5,127 Net interest income (loss) after provision for loan losses 13,695 9,955 ( 8,956 ) Other expense, net ( 18,423 ) ( 6,224 ) ( 22,062 ) Income (loss) before income taxes and undistributed earnings of subsidiaries ( 4,728 ) 3,731 ( 31,018 ) Income tax benefit 7,940 4,452 10,454 Income (loss) before undistributed earnings of subsidiaries 3,212 8,183 ( 20,564 ) Undistributed earnings (losses) of subsidiaries 40,628 45,925 ( 14,219 ) Net income (loss) attributable to parent company $ 43,840 $ 54,108 $ ( 34,783 ) Condensed Statements of Other Comprehensive Income (Loss) Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Net (income) loss $ 43,840 $ 54,108 $ ( 34,783 ) Other comprehensive income (loss) ( 4,383 ) ( 978 ) 1,013 Total comprehensive income (loss) attributable to Medallion $ 39,457 $ 53,130 $ ( 33,770 ) Condensed Statements of Cash Flow Year Ended December 31, (Dollars in thousands) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss)/net decrease in net assets resulting from operations $ 43,840 $ 54,108 $ ( 34,783 ) Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations Equity in undistributed (earnings) losses of subsidiaries ( 64,300 ) ( 60,304 ) 6,622 (Benefit) provision for loan losses ( 353 ) ( 4,718 ) 5,127 Depreciation and amortization 2,740 4,485 5,357 Change in deferred and other tax assets/liabilities, net ( 1,780 ) ( 5,666 ) ( 3,317 ) Net change in loan collateral in process of foreclosure 64 1,619 4,940 Net change in unrealized depreciation on investments — — 3,493 Gain on extinguishment of debt — ( 2,204 ) — Net realized gains on sale of investments — ( 11,701 ) — Stock-based compensation expense 3,476 2,261 2,031 Decrease (increase) in other assets 1,055 ( 1,150 ) 2,299 Increase in deferred financing costs ( 39 ) ( 1,504 ) ( 1,233 ) Decrease in intercompany payables ( 6,325 ) ( 11,649 ) ( 3,552 ) (Decrease) increase in other liabilities 5,430 ( 1,894 ) 2,336 Net cash used for operating activities ( 16,192 ) ( 38,317 ) ( 10,680 ) CASH FLOWS FROM INVESTING ACTIVITIES Loans originated ( 92 ) — ( 14 ) Proceeds from principal receipts, sales, and maturities of loans and investments 723 28,552 1,193 Purchases of investments — ( 90 ) ( 2,304 ) Proceeds from sale and principal payments of loan collateral in process of foreclosure 3,697 666 1,276 Investment in subsidiaries ( 4,750 ) ( 3,500 ) Dividends from subsidiaries 24,750 19,000 7,597 Net cash provided by investing activities 24,328 44,628 7,748 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed — 51,400 33,600 Repayments of funds borrowed — ( 51,155 ) ( 1,402 ) Treasury stock repurchased ( 20,619 ) — — Dividends paid to shareholders ( 7,543 ) — — Proceeds from the exercise of stock options 155 241 — Net cash (used for) provided by financing activities ( 28,007 ) 486 32,198 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 19,871 ) 6,797 29,266 Cash and cash equivalents, beginning of period 40,540 33,743 4,477 Cash and cash equivalents, end of period $ 20,669 $ 40,540 $ 33,743 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | (18) VARIABLE INTEREST ENTITIES During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had historically been consolidated as a subsidiary of MFC, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III was a VIE since the key decision-making authority rested in the servicing agreement (where MFC was the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights were considered a variable interest. This conclusion was supported by a qualitative assessment that Trust III did not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $ 25.3 million recorded as well as a new promissory note payable by MFC of $ 1.4 million issued in settlement of the limited guaranty. Subsequent to deconsolidation, the Company’s interest in Trust III was accounted for as an equity investment and had a value of $ 0 through its transfer to a third party in the 2021 third quarter. In addition, the Company remained the servicer of the assets of Trust III for a fee, until its disposition. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (19) SUBSEQUENT EVENTS The Company has evaluated the effects of events that have occurred subsequent to December 31, 2022 , through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US, or GAAP, 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 loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls thro ugh a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. |
Cash and Cash Equivalents | 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 exceed the federally insured limits. As of December 31, 2022, cash also includes $ 1.3 million of interest-bearing funds deposited in other banks, that are mainly callable, with original terms of 3 to 5 years . |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or 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 14 and 15 to the consolidated financial statements. |
Equity Investments | Equity Investments The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $ 10.3 million and $ 9.7 million as of December 31, 2022 and 2021, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2022 , cumulative impairment of $ 2.4 million had been recorded with respect to these investments. During 2021, the Company purchased $ 2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of December 31, 2022 and 2021, the fair value of these securities were $ 1.7 million and $ 2.0 million and are included in other assets on the consolidated balance sheet. The following table presents the unrealized portion related to the equity securities held as of December 31, 2022. Year Ended December 31, (Dollars in thousands) 2022 2021 Net losses recognized during the period on equity securities $ ( 226 ) $ ( 50 ) Less: Net gains (losses) recognized during the period on equity — — Unrealized losses recognized during the reporting period on $ ( 226 ) $ ( 50 ) |
Investment Securities | Investment Securities The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. 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. The net premium on investment securities totaled $ 0.1 million and $ 0.3 million as of December 31, 2022 and 2021 , and $ 0.1 million, $ 0.1 million, and $ 0.3 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020 . ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. |
Loans | Loans The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of December 31, 2022 and 2021, net loan origination costs were $ 34.9 million and $ 26.1 million . Net amortization to income for the years ended December 31, 2022, 2021, and 2020 were $ 8.7 million , $ 8.0 million , and $ 6.0 million . Interest income is recorded on the accrual basis. 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. The consumer loan portfolio has different characteristics, typified by a larger number of smaller dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation 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. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, 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. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $ 8.9 million or 0.47 % of the total loan portfolio as of December 31, 2022, as compared to $ 4.0 million , or 0.28 % as of December 31, 2021. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Recreation loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt recreation loans is to take an immediate 40 % write down of the loan balance. Loan collateral in process of foreclosure primarily includes medallion loans that have reached 120 days past due and have been charged-down to their net realizable value, in add ition to consumer repossessed collateral in the process of being sold. For New York City medallion loans in the process of foreclosure, the Company continued to utilize a net value of $ 79,500 when assessing net realizable value for these medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time . The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower, to the liquidation of the collateral securing the loans. The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or 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 had 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 $ 19.5 million and $ 20.5 million at December 31, 2022 and 2021. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of December 31, 2022 and 2021 . |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result of COVID-19, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six-month deferral period with borrowers, and therefore deemed all such loans as impaired in the third quarter of 2020. As a result, all medallion loans were placed on nonaccrual and reserved down to collateral value, net of liquidation costs, which was $ 79,500 for New York City medallions. Th e Company continued to use $79,500 as its internally determined value for assessing net realizable value for these medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2022 and 2021, the Company had intangible assets of $ 22.0 million and $ 23.5 million . During 2021 , the Company disposed of its investment in RPAC Racing LLC, or RPAC, resulting in the removal of $ 26.2 million of intangible assets. The Company recognized $ 1.4 million of amortization expense on the intangible assets for each of the years ended December 31, 2022 and 2021. Additional ly, loan portfolio premiums of $ 12.4 million were determined as of April 2, 2018, of which $ 0 and $ 0.5 million were outstanding as of December 31, 2022 and 2021 , and of which $ 0.5 million, $ 2.2 million, and $ 3.0 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022 and 2021 , concluding that there was no impairment of these assets. The following table details of the intangible assets as of December 31, 2022 and 2021: December 31, (Dollars in thousands) 2022 2021 Brand-related intellectual property $ 16,775 $ 17,874 Home improvement contractor relationships 5,260 5,606 Total intangible assets $ 22,035 $ 23,480 |
Fixed Assets | 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 $ 0.4 million, $ 0.3 million, and $ 0.4 million for the years ended December 31, 2022, 2021, and 2020 . |
Deferred Costs | Deferred Costs Deferred financing costs represent 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 and life of the respective pool. Amortization expense was $ 2.6 million, $ 2.4 million, and $ 2.6 million for the years ended December 31, 2022, 2021, and 2020. 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 amount on the Company’s balance sheet for all of these purposes were $ 7.0 million and $ 7.1 million as of December 31, 2022 and 2021 . |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense. |
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share are computed by dividing net income (loss) resulting from operations available to common stockholders 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. Year Ended December 31, (Dollars in thousands, except share and per share data) 2022 2021 2020 Net income (loss) available to common stockholders $ 43,840 $ 54,108 $ ( 34,783 ) Weighted average common shares outstanding applicable 23,583,049 24,599,804 24,445,452 Effect of dilutive stock options 67,825 92,602 — Effect of restricted stock grants 276,469 250,763 — Adjusted weighted average common shares outstanding applicable to diluted EPS 23,927,342 24,943,169 24,445,452 Basic income (loss) per share $ 1.86 $ 2.20 $ ( 1.42 ) Diluted income (loss) per share 1.83 2.17 ( 1.42 ) Potentially dilutive common shares excluded from the above calculations aggregated 347,963 shares, 421,190 , and 934,003 shares as of December 31, 2022, 2021, and 2020 . |
Stock Compensation | Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, 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 are reflected in net income 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 income 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. During the years ended December 31, 2022, 2021, and 2020 , the Company issued 522,475 , 258,120 , and 229,408 restricted shares of stock-based compensation awards, issued 0 , 317,398 , and 444,557 shares of other stock-based compensation awards, and issued 129,638 , 16,803 , and 47,156 restricted stock units; and recognized $ 3.5 million, $ 2.3 million, and $ 2.0 million, or $ 0.15 , $ 0.09 , and $ 0.08 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2022 , the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $ 3.9 million, which is expected to be recognized over the next 9 quarters. |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the 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, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions with, such as certain purchases of assets, the Company or its affiliates. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15 %, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2022, the Bank’s Tier 1 leverage ratio was 16.2 % . The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory December 31, (Dollars in thousands) Minimum Well-Capitalized 2022 2021 Common equity tier 1 capital $ 242,049 $ 193,459 Tier 1 capital 310,837 262,247 Total capital 334,913 281,211 Average assets 1,917,904 1,495,726 Risk-weighted assets 1,888,530 1,482,678 Leverage ratio (1) 4.0 % 5.0 % 16.2 % 17.5 % Common equity tier 1 capital ratio (2) 7.0 6.5 12.8 13.1 Tier 1 capital ratio (3) 8.5 8.0 16.5 17.7 Total capital ratio (3) 10.5 10.0 17.7 19.0 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of December 31, 2022 and 2021 reflect the capital conservation buffer of 2.5 %. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 2022 and 2021 . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losse s modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company adopted Topic 326 on January 1, 2023. The Company anticipates the adoption will increase in the Company's allowance for loan losses (allowance for credit losses under CECL) by $ 11.6 million for consumer loans and a $ 2.2 million increase with respect to the Company's commercial loans. The medallion loan allowance will not be affected. With the adoption of CECL, the Company expects that there will be earlier recognition of credit losses, including a near-term effect of larger loan loss provisions, compared to the incurred losses accounting standard. In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements, or Topic 205: Depository and Lending, or Topic 942: and Financial Services – Investment Companies, or Topic 946: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This new standard amends certain Securities and Exchange Commission, or the SEC, paragraphs from the Codification in response to the issuance of SEC Final Rule No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses and SEC Rule No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The Company has assessed the impact of the update and determined it does not have a material impact on the accompanying financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses, or Topic 326: Troubled Debt Restructurings and Vintage Disclosures, or ASU 2022-02. The main objective of this new standard is to amend ASU 2016-13 in response to feedback received from the post-implementation review process. The amendments update ASU 2016-13 to require that an entity measure and record the lifetime expected credit losses on an asset upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. The amendments also require the disclosure of current period gross write-offs, by year of origination, for financing receivables. ASU 2022-02 was effective upon the adoption of ASU 2016-13. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement, or Topic 820: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2016-13. This new standard is effective for the fiscal years beginning after December 31, 2023 and clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company has assessed the impact of the update and determined it does not have a material impact on the accompanying financial statements. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Unrealized Portion Related to Equity Securities | The following table presents the unrealized portion related to the equity securities held as of December 31, 2022. Year Ended December 31, (Dollars in thousands) 2022 2021 Net losses recognized during the period on equity securities $ ( 226 ) $ ( 50 ) Less: Net gains (losses) recognized during the period on equity — — Unrealized losses recognized during the reporting period on $ ( 226 ) $ ( 50 ) |
Schedule of Intangible Assets | The following table details of the intangible assets as of December 31, 2022 and 2021: December 31, (Dollars in thousands) 2022 2021 Brand-related intellectual property $ 16,775 $ 17,874 Home improvement contractor relationships 5,260 5,606 Total intangible assets $ 22,035 $ 23,480 |
Summary of the Calculation of Basic and Diluted EPS | The table below shows the calculation of basic and diluted EPS. Year Ended December 31, (Dollars in thousands, except share and per share data) 2022 2021 2020 Net income (loss) available to common stockholders $ 43,840 $ 54,108 $ ( 34,783 ) Weighted average common shares outstanding applicable 23,583,049 24,599,804 24,445,452 Effect of dilutive stock options 67,825 92,602 — Effect of restricted stock grants 276,469 250,763 — Adjusted weighted average common shares outstanding applicable to diluted EPS 23,927,342 24,943,169 24,445,452 Basic income (loss) per share $ 1.86 $ 2.20 $ ( 1.42 ) Diluted income (loss) per share 1.83 2.17 ( 1.42 ) |
Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios | The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory December 31, (Dollars in thousands) Minimum Well-Capitalized 2022 2021 Common equity tier 1 capital $ 242,049 $ 193,459 Tier 1 capital 310,837 262,247 Total capital 334,913 281,211 Average assets 1,917,904 1,495,726 Risk-weighted assets 1,888,530 1,482,678 Leverage ratio (1) 4.0 % 5.0 % 16.2 % 17.5 % Common equity tier 1 capital ratio (2) 7.0 6.5 12.8 13.1 Tier 1 capital ratio (3) 8.5 8.0 16.5 17.7 Total capital ratio (3) 10.5 10.0 17.7 19.0 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Investments [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | The following tables present details of fixed maturity securities available for sale as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ 43,286 $ — $ ( 4,933 ) $ 38,353 State and municipalities 11,015 13 ( 889 ) 10,139 Total $ 54,301 $ 13 $ ( 5,822 ) $ 48,492 December 31, 2021 (Dollars in thousands) Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ 35,469 $ 672 $ ( 403 ) $ 35,738 State and municipalities 9,025 60 ( 51 ) 9,034 Total $ 44,494 $ 732 $ ( 454 ) $ 44,772 |
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity | The amortized cost and estimated market value of investment securities as of December 31, 2022 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2022 (Dollars in thousands) Amortized Fair Due in one year or less $ — $ — Due after one year through five years 9,625 9,222 Due after five years through ten years 9,303 8,170 Due after ten years 35,373 31,100 Total $ 54,301 $ 48,492 |
Summary of Securities with Gross Unrealized Losses | The following tables show information pertaining to securities with gross unrealized losses as of December 31, 2022 and 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows. Less than Twelve Months Twelve Months and Over December 31, 2022 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ ( 731 ) $ 12,321 $ ( 4,202 ) $ 26,023 State and municipalities ( 286 ) 4,628 ( 603 ) 3,502 Total $ ( 1,017 ) $ 16,949 $ ( 4,805 ) $ 29,525 Less than Twelve Months Twelve Months and Over December 31, 2021 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of US federal agencies $ ( 403 ) $ 16,330 $ — $ — State and municipalities ( 9 ) 2,124 ( 42 ) 1,956 Total $ ( 412 ) $ 18,454 $ ( 42 ) $ 1,956 As of December 31, 2022 and 2021 , the Company had 57 and 15 securities with unrealized losses that |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
Summary of Inclusive Capitalized Loans | The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2022 and 2021. As of December 31, 2022 2021 (Dollars in thousands) Amount As a Amount As a Recreation $ 1,183,512 62 % $ 961,320 65 % Home improvement 626,399 33 436,772 29 Commercial 92,899 5 76,696 5 Medallion 13,571 1 14,046 1 Strategic partnership 572 * 90 * Total gross loans 1,916,953 100 % 1,488,924 100 % Allowance for loan losses ( 63,845 ) ( 50,166 ) Total net loans $ 1,853,108 $ 1,438,758 (*) Less than 1%. |
Schedule of Activity of Gross Loans | The following tables show the activity of the gross loans for the years ended December 31, 2022 and 2021. (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – December 31, 2021 $ 961,320 $ 436,772 $ 76,696 $ 14,046 $ 90 $ 1,488,924 Loan originations 513,062 392,543 28,172 605 49,526 983,908 Principal payments, sales, maturities, and recoveries ( 259,326 ) ( 196,203 ) ( 6,610 ) ( 419 ) ( 49,044 ) ( 511,602 ) Charge-offs ( 27,055 ) ( 6,393 ) ( 6,083 ) ( 314 ) — ( 39,845 ) Transfer to loan collateral in process of foreclosure, net ( 12,444 ) — — ( 347 ) — ( 12,791 ) Amortization of origination costs ( 10,470 ) 1,763 — — — ( 8,707 ) Amortization of loan premium ( 213 ) ( 322 ) — — — ( 535 ) FASB origination costs, net 18,638 ( 1,761 ) — — — 16,877 Paid-in-kind interest — — 724 — — 724 Gross loans – December 31, 2022 $ 1,183,512 $ 626,399 $ 92,899 $ 13,571 $ 572 $ 1,916,953 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – December 31, 2020 $ 792,686 $ 334,033 $ 65,327 $ 37,768 $ 24 $ 1,229,838 Loan originations 441,921 258,038 36,415 — 10,997 747,371 Principal payments, sales, maturities, and recoveries ( 252,293 ) ( 153,044 ) ( 25,873 ) ( 1,363 ) ( 10,931 ) ( 443,504 ) Charge-offs ( 14,712 ) ( 2,949 ) — ( 15,287 ) — ( 32,948 ) Transfer to loan collateral in process of foreclosure, net ( 10,431 ) — — ( 5,457 ) — ( 15,888 ) Amortization of origination costs ( 9,678 ) 1,671 13 ( 2 ) — ( 7,996 ) Amortization of loan premium ( 221 ) ( 346 ) — ( 1,615 ) — ( 2,182 ) FASB origination costs, net 14,048 ( 631 ) — 2 — 13,419 Paid-in-kind interest — — 814 — — 814 Gross loans – December 31, 2021 $ 961,320 $ 436,772 $ 76,696 $ 14,046 $ 90 $ 1,488,924 |
Summary of Activity in Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2022 and 2021. December 31, (Dollars in thousands) 2022 2021 Allowance for loan losses – beginning balance $ 50,166 $ 57,548 Charge-offs Recreation ( 27,055 ) ( 14,712 ) Home improvement ( 6,393 ) ( 2,949 ) Commercial ( 6,083 ) — Medallion ( 314 ) ( 15,287 ) Total charge-offs ( 39,845 ) ( 32,948 ) Recoveries Recreation 13,785 12,131 Home improvement 2,761 2,398 Commercial 47 — Medallion 6,872 6,415 Total recoveries 23,465 20,944 Net charge-offs (1) ( 16,380 ) ( 12,004 ) Provision for loan losses 30,059 4,622 Allowance for loan losses – ending balance (2) $ 63,845 $ 50,166 (1) As of December 31, 2022 , cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 244.2 million, some of which represent collection opportunities for the Company. (2) As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. |
Summary of Allowance for Loan Losses by Type | The following tables set forth the allowance for loan losses by type as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Amount Percentage Allowance as Allowance as Recreation $ 41,966 66 % 3.55 % 130.60 % Home improvement 11,340 18 1.81 35.29 Commercial 1,049 1 1.13 3.26 Medallion 9,490 15 69.93 29.53 Total $ 63,845 100 % 3.33 % 198.69 % December 31, 2021 (Dollars in thousands) Amount Percentage Allowance as Allowance as Recreation $ 32,435 64 % 3.37 % 91.18 % Home improvement 7,356 15 1.68 20.68 Commercial 1,141 2 1.49 3.21 Medallion 9,234 19 65.74 25.96 Total $ 50,166 100 % 3.37 % 141.03 % |
Summary of Total Nonaccrual Loans and Foregone Interest | The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Total nonaccrual loans $ 32,133 $ 35,571 $ 61,767 Interest foregone for the year 1,267 1,620 3,311 Amount of foregone interest applied to principal for the year 375 432 602 Interest foregone life-to-date 2,419 3,623 5,252 Amount of foregone interest applied to principal life-to-date 1,204 942 792 Percentage of nonaccrual loans to gross loan portfolio 1.7 % 2.4 % 5.0 % Percentage of allowance for loan losses to nonaccrual loans 198.7 % 141.0 % 93.0 % |
Summary of Performance Status of Loan | The following tables present the performance status of loans as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Performing Nonperforming Total Percentage of Recreation $ 1,173,846 $ 9,666 $ 1,183,512 0.82 % Home improvement 625,820 579 626,399 0.09 Commercial 84,165 8,734 92,899 9.40 Medallion — 13,571 13,571 100.00 Strategic partnership 572 — 572 — Total $ 1,884,403 $ 32,550 $ 1,916,953 1.70 % December 31, 2021 (Dollars in thousands) Performing Nonperforming Total Percentage of Recreation $ 955,763 $ 5,557 $ 961,320 0.58 % Home improvement 436,640 132 436,772 0.03 Commercial 60,366 16,330 76,696 21.29 Medallion — 14,046 14,046 100.00 Strategic partnership 90 — 90 — Total $ 1,452,859 $ 36,065 $ 1,488,924 2.42 % For those loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming. |
Summary of Attributes of Nonperforming Loan Portfolio | The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2022 and 2021, all of which had an allowance recorded against the principal balance. December 31, 2022 2021 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related With an allowance recorded Recreation $ 9,666 $ 9,666 $ 343 $ 5,557 $ 5,557 $ 188 Home improvement 579 579 10 132 132 2 Commercial 8,734 8,823 963 16,330 16,360 1,141 Medallion 13,571 14,686 9,490 14,046 14,958 8,837 Total nonperforming loans with an allowance $ 32,550 $ 33,754 $ 10,806 $ 36,065 $ 37,007 $ 10,168 Year Ended December 31, 2022 2021 (Dollars in thousands) Average Interest Income Average Interest Income With an allowance recorded Recreation $ 9,093 $ 401 $ 5,618 $ 515 Home improvement 514 4 108 — Commercial 13,381 — 16,816 93 Medallion 16,019 — 17,538 — Total nonperforming loans with an allowance $ 39,007 $ 405 $ 40,080 $ 608 |
Summary of Aging of Loans | The following tables show the aging of all loans as of December 31, 2022 and 2021. December 31, 2022 Days Past Due Recorded (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Accruing Recreation $ 31,781 $ 11,877 $ 7,365 $ 51,023 $ 1,095,072 $ 1,146,095 $ — Home improvement 3,266 1,256 579 5,101 623,776 628,877 — Commercial — — 74 74 93,396 93,470 — Medallion 142 393 885 1,420 12,151 13,571 — Strategic partnership — — — — 572 572 — Total $ 35,189 $ 13,526 $ 8,903 $ 57,618 $ 1,824,967 $ 1,882,585 $ — (1) Excludes $ 34.9 million of capitalized loan origination costs. December 31, 2021 Days Past Due Recorded (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Accruing Recreation $ 20,037 $ 6,569 $ 3,818 $ 30,424 $ 901,435 $ 931,859 $ — Home improvement 1,517 479 132 2,128 436,803 438,931 — Commercial 1,795 — 74 1,869 74,827 76,696 — Medallion 215 7,125 — 7,340 6,706 14,046 — Strategic partnership — — — — 90 90 — Total $ 23,564 $ 14,173 $ 4,024 $ 41,761 $ 1,419,861 $ 1,461,622 $ — (1) Excludes loan premiums of $ 0.5 million and $ 26.8 million of capitalized loan origination costs. |
Summary of TDRs | The following table shows the TDRs which the Company entered into during the year ended December 31, 2022. (Dollars in thousands) Number of Loans Pre- Post- Recreation loans 80 1,203 1,203 Medallion loans 2 252 252 The following table shows the TDRs which the Company entered into during the year ended December 31, 2021. (Dollars in thousands) Number of Loans Pre- Post- Recreation loans 56 668 585 Medallion loans 11 3,071 3,071 |
Summary of Activities of the Loan Collateral Process of Foreclosure Related to Recreation and Medallion Loans | The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 (Dollars in thousands) Recreation Medallion (1) Total Loan collateral in process of foreclosure – December 31, 2021 $ 1,720 $ 35,710 $ 37,430 Transfer from loans, net 12,444 347 12,791 Sales ( 7,707 ) ( 2,668 ) ( 10,375 ) Cash payments received — ( 12,289 ) ( 12,289 ) Collateral valuation adjustments ( 5,081 ) ( 657 ) ( 5,738 ) Loan collateral in process of foreclosure – December 31, 2022 $ 1,376 $ 20,443 $ 21,819 (1) As of December 31, 2022 , medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets. Year Ended December 31, 2021 (Dollars in thousands) Recreation Medallion (1) Total Loan collateral in process of foreclosure – December 31, 2020 $ 1,432 $ 53,128 $ 54,560 Transfer from loans, net 10,431 5,457 15,888 Sales ( 6,951 ) ( 2,928 ) ( 9,879 ) Cash payments received — ( 14,173 ) ( 14,173 ) Collateral valuation adjustments ( 3,192 ) ( 5,774 ) ( 8,966 ) Loan collateral in process of foreclosure – December 31, 2021 $ 1,720 $ 35,710 $ 37,430 (1) As of December 31, 2021 , medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets. |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances of Funds Borrowed | The following table presents outstanding balances of funds borrowed. Payments Due for the Year Ending December 31, (Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter December 31, 2022 (1) December 31, 2021 (1) Interest (2) Deposits (3) $ 508,218 $ 419,560 $ 384,720 $ 149,329 $ 147,845 $ — $ 1,609,672 $ 1,253,288 1.91 % Retail and privately placed notes — 36,000 — 31,250 53,750 — 121,000 121,000 7.66 SBA debentures and borrowings 5,000 7,762 14,000 14,000 2,000 25,750 68,512 69,963 3.08 Preferred securities — — — — — 33,000 33,000 33,000 6.86 Total $ 513,218 $ 463,322 $ 398,720 $ 194,579 $ 203,595 $ 58,750 $ 1,832,184 $ 1,477,251 2.43 % (1) Excludes deferred financing costs of $ 7.0 million and $ 7.1 million as of December 31, 2022 and 2021 . (2) Weighted average contractual rate as of December 31, 2022 . (3) Balance excludes $ 1.3 million and $ 0.8 million of strategic partner reserve deposits as of December 31, 2022 and 2021 . |
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits | December 31, 2022. (Dollars in thousands) December 31, 2022 Three months or less $ 152,517 Over three months through six months 117,179 Over six months through one year 238,522 Over one year 1,101,454 Total deposits $ 1,609,672 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs and Additional Information | The following table presents the operating lease costs and additional information for the years ended December 31, 2022, 2021, and 2020. December 31, (Dollars in thousands) 2022 2021 2020 Operating lease costs $ 2,216 $ 2,287 $ 2,384 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 2,378 2,454 2,821 Right-of-use asset obtained in exchange for lease liability ( 187 ) ( 118 ) 251 |
Schedule of Breakout of Operating leases | The following table presents the breakout of the operating leases as of December 31, 2022 and 2021. December 31, (Dollars in thousands) 2022 2021 Operating lease right-of-use assets $ 9,723 $ 10,045 Other current liabilities 2,239 2,159 Operating lease liabilities 8,408 9,053 Total operating lease liabilities 10,647 11,212 Weighted average remaining lease term 5.5 years 5.4 years Weighted average discount rate 5.66 % 5.54 % |
Schedule of Maturities of the Lease Liabilities | . (Dollars in thousands) 2023 $ 2,518 2024 2,526 2025 2,505 2026 2,440 2027 1,212 Thereafter 1,290 Total lease payments 12,491 Less imputed interest 1,844 Total operating lease liabilities $ 10,647 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Deferred and Other Tax Assets and Liabilities | The following table sets forth the significant components of the Company's deferred and other tax assets and liabilities as of December 31, 2022 and 2021. December 31, (Dollars in thousands) 2022 2021 Goodwill and other intangibles $ ( 43,397 ) $ ( 43,894 ) Provision for loan losses 9,945 11,057 Net operating loss carryforwards (1) 3,730 12,167 Accrued expenses, compensation, and other assets 3,819 2,579 Unrealized gains on other investments 1,445 2,176 Total deferred tax liability ( 24,458 ) ( 15,915 ) Valuation allowance ( 2,295 ) ( 2,295 ) Deferred tax liability, net $ ( 26,753 ) $ ( 18,210 ) (1) As of December 31, 2022 , the Company had an estimated $ 11.1 million of net operating loss carryforwards, $ 1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035 , which had a net carrying value of $ 1.4 million of December 31, 2022 . |
Summary of Components of Tax (Provision) Benefit | The following table shows the components of the Company's tax (provision) benefit for the years ended December 31, 2022, 2021, and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Current Federal $ ( 5,213 ) $ ( 3,550 ) $ — State ( 560 ) ( 1,563 ) ( 260 ) Deferred Federal ( 8,090 ) ( 13,686 ) 7,702 State ( 4,100 ) ( 5,418 ) 2,632 Net (provision) benefit for income taxes $ ( 17,963 ) $ ( 24,217 ) $ 10,074 |
Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit | The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2022, 2021, and 2020. Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Statutory Federal income tax (provision) benefit at 21 % $ ( 14,249 ) $ ( 17,193 ) $ 7,766 State and local income taxes, net of federal income tax benefit ( 2,787 ) ( 3,363 ) 1,518 Valuation allowance against net operating losses — ( 1,833 ) 1,228 Change in effective state income tax rates and accrual 811 ( 1,691 ) ( 405 ) Income attributable to non-controlling interest — 628 460 Non-deductible expenses ( 1,987 ) ( 178 ) ( 453 ) Other 249 ( 587 ) ( 40 ) Total income tax (provision) benefit $ ( 17,963 ) $ ( 24,217 ) $ 10,074 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Assumption Categories Used to Determine Value of Option Grants | The following assumption categories are used to determine the value of any option grants. Year Ended December 31, 2022 2021 2020 Risk free interest rate — 0.97 % 1.23 % Expected dividend yield — — — Expected life of option in years (1) — 6.25 6.25 Expected volatility (2) — 53.98 % 51.03 % (1) Expected life is calculated usin g the simplified method. (2) The Company determines its expected volatility based on the Company's historical volatility . |
Summary of Activity for Stock Option Programs | The following table presents the activity for the stock option programs for the years ended December 31, 2022, 2021, and 2020. Number of Exercise Weighted Outstanding at December 31, 2019 550,040 $ 2.14 - 13.53 $ 6.58 Granted 444,557 4.89 - 6.68 6.24 Cancelled ( 42,928 ) 2.22 - 13.53 6.91 Exercised (1) — — — Outstanding at December 31, 2020 (2) 951,669 2.14 - 12.55 6.41 Granted 317,398 6.79 6.79 Cancelled ( 113,310 ) 4.89 - 11.53 6.64 Exercised (1) ( 44,070 ) 5.21 - 7.25 5.58 Outstanding at December 31, 2021 (2) 1,111,687 2.14 - 12.55 6.41 Granted — — — Cancelled ( 26,093 ) 4.89 - 12.55 7.08 Exercised (1) ( 23,745 ) 4.89 - 7.25 6.51 Outstanding at December 31, 2022 (2) 1,061,849 $ 2.14 - 9.38 $ 6.51 Options exercisable at December 31, 2020 178,307 $ 2.14 - 12.55 $ 6.33 December 31, 2021 320,922 2.14 - 12.55 6.53 December 31, 2022 548,426 2.14 - 9.38 6.51 (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, wa s $ 0.1 million, $ 0.2 million, and $ 0 for the years ended December 31, 2022, 2021, and 2020 . (2) The aggregate intrinsic value, which represents the difference betwee n the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $ 0.7 million for outstanding options and $ 0.4 million for exercisable options as of December 31, 2022 . The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022 . |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the years ended December 31, 2022, 2021, and 2020. Number of Grant Weighted Outstanding at December 31, 2019 284,879 $ 3.95 - 7.25 $ 6.01 Granted 229,408 4.89 - 6.68 6.21 Cancelled ( 8,755 ) 3.95 - 7.25 6.93 Vested (1) ( 89,392 ) 3.95 - 6.55 5.37 Outstanding at December 31, 2020 416,140 4.39 - 7.25 6.24 Granted 258,120 6.79 - 8.40 7.38 Cancelled ( 21,940 ) 4.89 - 7.25 5.98 Vested (1) ( 158,994 ) 4.39 - 7.25 6.16 Outstanding at December 31, 2021 (2) 493,326 4.89 - 7.25 6.87 Granted 522,475 6.86 - 7.68 7.46 Cancelled ( 29,373 ) 4.89 - 8.40 7.32 Vested (1) ( 129,140 ) 4.89 - 7.25 6.53 Outstanding at December 31, 2022 (2) 857,288 $ 4.89 - 7.25 $ 7.27 (1) The aggregate fair value of the restricted stock vested was $ 1.0 million, $ 1.1 million, and $ 0.6 million for the years ended December 31, 2022, 2021, and 2020 . The aggregate fair value of the restricted stock was $ 6.1 million as of December 31, 2022 . The remaining vesting period was 2.17 years at December 31, 2022 . |
Summary of Activity for Unvested Options Outstanding | The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2022. Number of Exercise Price Weighted Outstanding at December 31, 2021 790,765 $ 4.89 - 7.25 $ 6.52 Granted — — — Cancelled ( 20,370 ) 4.89 - 7.25 6.34 Vested ( 256,972 ) 4.89 - 7.25 6.55 Outstanding at December 31, 2022 513,423 $ 4.89 - 7.25 $ 6.52 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following table presents segment data as of and for the year ended December 31, 2022. Year Ended December 31, 2022 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 139,145 $ 44,703 $ 9,348 $ 632 $ 2,793 $ 196,621 Total interest expense 17,932 7,697 3,040 508 7,008 36,185 Net interest income (loss) 121,213 37,006 6,308 124 ( 4,215 ) 160,436 Provision (benefit) for loan losses 22,802 7,616 5,963 ( 6,474 ) 152 30,059 Net interest income (loss) after loss provision 98,411 29,390 345 6,598 ( 4,367 ) 130,377 Other expense, net ( 30,463 ) ( 13,500 ) ( 1,604 ) ( 6,179 ) ( 10,781 ) ( 62,527 ) Net income (loss) before taxes 67,948 15,890 ( 1,259 ) 419 ( 15,148 ) 67,850 Income tax (provision) benefit ( 17,989 ) ( 4,207 ) 333 ( 111 ) 4,011 ( 17,963 ) Net income (loss) after taxes 49,959 11,683 ( 926 ) 308 ( 11,137 ) 49,887 Income attributable to the non-controlling interest 6,047 Total net income attributable to Medallion Financial Corp. $ 43,840 Balance Sheet Data Total loans net $ 1,141,546 $ 615,059 $ 91,850 $ 4,081 $ 572 $ 1,853,108 Total assets 1,154,680 618,923 101,447 24,648 360,181 2,259,879 Total funds borrowed 936,789 502,131 82,304 19,997 292,214 1,833,435 Selected Financial Ratios Return on average assets 4.71 % 2.23 % ( 0.90 )% 0.74 % ( 3.12 )% 2.40 % Return on average equity 26.83 12.72 ( 5.28 ) 4.03 ( 18.62 ) 13.74 Return on average stockholders' equity * * * * * 14.92 Interest yield 13.28 8.64 10.78 14.05 N/A 11.06 Net interest margin 11.57 7.16 7.28 2.76 N/A 9.05 Reserve coverage 3.55 1.81 1.13 69.93 N/A 3.33 Delinquency status (1) 0.64 0.09 0.08 6.52 N/A 0.47 Charge-off ratio (2) 1.27 0.70 6.96 ( 145.76 ) N/A 0.99 (1) Loans 90 days or more past due. (2) Negative balances indicate recoveries for the period (*) Line item is not applicable to segments. The following table presents segment data as of and for the year ended December 31, 2021. Year Ended December 31, 2021 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion RPAC (2) Corporate and Other Investments Consolidated Total interest income (loss) $ 118,305 $ 34,204 $ 6,592 $ ( 1,483 ) $ — $ 1,348 $ 158,966 Total interest expense 9,993 4,153 2,720 5,914 546 7,814 31,140 Net interest income (loss) 108,312 30,051 3,872 ( 7,397 ) ( 546 ) ( 6,466 ) 127,826 Provision (benefit) for loan losses 7,671 2,750 — ( 7,752 ) — 1,953 4,622 Net interest income (loss) after loss provision 100,641 27,301 3,872 355 ( 546 ) ( 8,419 ) 123,204 Sponsorship and race winnings — — — — 12,567 — 12,567 Race team related expenses — — — — ( 9,559 ) — ( 9,559 ) Other income (expense), net ( 30,156 ) ( 11,640 ) 3,101 ( 1,991 ) ( 5,108 ) 1,453 ( 44,341 ) Net income (loss) before taxes 70,485 15,661 6,973 ( 1,636 ) ( 2,646 ) ( 6,966 ) 81,871 Income tax (provision) benefit ( 18,699 ) ( 4,155 ) ( 1,850 ) 433 ( 1,498 ) 1,552 ( 24,217 ) Net income (loss) after taxes 51,786 11,506 5,123 ( 1,203 ) ( 4,144 ) ( 5,414 ) 57,654 Income attributable to the non-controlling interest 3,546 Total net income attributable to Medallion Financial Corp. $ 54,108 Balance Sheet Data Total loans net $ 928,885 $ 429,416 $ 73,713 $ 4,812 $ — $ 1,932 $ 1,438,758 Total assets 896,223 371,781 103,631 42,011 — 459,411 1,873,057 Total funds borrowed 710,616 294,786 82,169 69,221 — 328,358 1,485,150 Selected Financial Ratios Return on average assets 6.00 % 3.01 % 5.85 % ( 1.15 )% 20.35 % ( 1.89 )% 3.33 % Return on average equity 30.01 15.04 29.23 ( 5.75 ) 885.29 ( 13.62 ) 17.64 Return on average stockholders' equity * * * * * * 21.24 Interest yield 13.94 9.30 10.41 ( 18.77 ) N/A N/A 11.48 Net interest margin 12.76 8.17 6.12 ( 93.60 ) N/A N/A 9.26 Reserve coverage 3.37 1.68 1.49 65.74 N/A N/A 3.37 Delinquency status (1) 0.41 0.03 0.10 — N/A N/A 0.28 Charge-off ratio 0.30 0.15 — 95.40 N/A N/A 0.85 (1) Loans 90 days or more past due. (2) The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale. (*) Line item is not applicable to segments. The following table presents segment data as of and for the year ended December 31, 2020. Year Ended December 31, 2020 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion RPAC Corporate and Other Investments Consolidated Total interest income (loss) $ 110,706 $ 27,273 $ 6,926 $ ( 1,518 ) $ — $ 1,575 $ 144,962 Total interest expense 13,013 5,699 2,538 3,610 163 9,128 34,151 Net interest income (loss) 97,693 21,574 4,388 ( 5,128 ) ( 163 ) ( 7,553 ) 110,811 Provision for loan losses 23,736 3,778 — 42,276 — 27 69,817 Net interest income (loss) after loss provision 73,957 17,796 4,388 ( 47,404 ) ( 163 ) ( 7,580 ) 40,994 Sponsorship and race winnings — — — — 20,042 — 20,042 Race team related expenses — — — — ( 8,366 ) — ( 8,366 ) Other expense, net ( 27,341 ) ( 9,611 ) ( 3,196 ) ( 30,366 ) ( 7,973 ) ( 11,164 ) ( 89,651 ) Net income (loss) before taxes 46,616 8,185 1,192 ( 77,770 ) 3,540 ( 18,744 ) ( 36,981 ) Income tax (provision) benefit ( 12,004 ) ( 2,108 ) ( 299 ) 19,520 ( 889 ) 5,854 10,074 Net income (loss) after taxes 34,612 6,077 893 ( 58,250 ) 2,651 ( 12,890 ) ( 26,907 ) Income attributable to the non-controlling interest 7,876 Total net loss attributable to Medallion Financial Corp. $ ( 34,783 ) Balance Sheet Data Total loans net $ 765,338 $ 328,876 $ 62,037 $ 12,725 $ — $ 3,314 $ 1,172,290 Total assets 777,605 340,494 80,622 124,554 33,711 285,425 1,642,411 Total funds borrowed 621,735 272,284 65,924 98,636 8,689 244,987 1,312,255 Selected Financial Ratios Return on average assets 4.59 % 2.07 % 1.07 % ( 33.21 )% 7.98 % ( 5.06 )% ( 1.67 )% Return on average equity 22.93 10.35 5.17 ( 165.21 ) ( 363.66 ) ( 23.29 ) 8.43 Return on average stockholders' equity * * * * * * ( 14.06 ) Interest yield 14.90 9.66 10.51 ( 2.11 ) N/A N/A 11.32 Net interest margin 13.15 7.62 6.66 ( 7.14 ) N/A N/A 8.65 Reserve coverage 3.45 1.54 0.00 66.31 N/A N/A 4.68 Delinquency status (1) 0.70 0.05 0.11 3.57 N/A N/A 0.57 Charge-off ratio 1.95 0.44 0.04 59.38 N/A N/A 5.00 (1) Loans 90 days or more past due. (*) Line item is not applicable to segments. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Employment Agreements | future minimum payments under these agreements of approximately $ 11.8 million as follows: (Dollars in thousands) 2023 $ 4,128 2024 2,493 2025 2,131 2026 2,131 2027 888 Thereafter — Total $ 11,771 |
Stockholders'_Shareholders' E_2
Stockholders'/Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |
Schedule of Repurchase Agreements | The following table presents the Company’s purchases for the year ended December 31, 2022. Total Shares of Common Stock Repurchased Average Price Paid per Share Total Maximum Value of Shares Yet to Be Purchased January 1 - January 31 — $ — $ — $ 22,874,509 February 1 - February 28 — — — 22,874,509 March 1 - March 31 67,660 9.12 616,855 22,257,654 April 1 - April 30 — — — 22,257,654 May 1 - May 31 1,056,933 7.87 8,316,012 26,683,988 June 1 - June 30 215,217 7.71 1,658,542 25,025,447 July 1 - July 31 — — — 25,025,447 August 1 - August 31 734,547 7.93 5,822,227 24,203,219 September 1 - September 30 319,323 7.54 2,408,673 21,794,546 October 1 - October 31 257,231 6.98 1,796,534 19,998,012 November 1 - November 30 — — — 19,998,012 December 1 - December 31 — — — 19,998,012 Total 2,650,911 $ 7.78 20,618,843 $ 19,998,012 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Summary of Carrying Values and Fair Values of Financial Instruments | The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt. December 31, 2022 2021 (Dollars in thousands) Carrying Fair Carrying Fair Financial assets Cash, cash equivalents, and federal funds sold (1) $ 105,598 $ 105,598 $ 124,484 $ 124,484 Equity investments 10,293 10,293 9,726 9,726 Investment securities 48,492 48,492 44,772 44,772 Loans receivable 1,853,108 1,853,108 1,438,758 1,438,758 Accrued interest receivable (2) 12,613 12,613 10,621 10,621 Equity securities (3) 1,724 1,724 1,950 1,950 Financial liabilities Funds borrowed 1,833,434 1,833,434 1,478,001 1,478,001 Accrued interest payable (2) 4,790 4,790 3,395 3,395 (1) Categorized as level 1 within the fair value hierarchy, excluding $ 1.3 million as of December 31, 2022 and $ 1.3 million as of December 31, 2021 of interest-bearing deposits categorized as level 2. See Note 15. (2) Categorized as level 3 within the fair value hierarchy. See Note 15 . (3) Included within other assets on the balance sheet. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | 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 December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 48,492 — 48,492 Equity securities 1,724 — — 1,724 Total (1) $ 1,724 $ 49,742 $ — $ 51,466 (1) Total unrealized losses of $ 4.4 million , net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2022 related to these assets. December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 44,772 — 44,772 Equity securities 1,950 — — 1,950 Total (1) $ 1,950 $ 46,022 $ — $ 47,972 (1) Total unrealized losses of $ 1.0 million , net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets. |
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022 and 2021. December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,293 $ 10,293 Impaired loans — — 32,133 32,133 Loan collateral in process of foreclosure — — 21,819 21,819 Total $ — $ — $ 64,245 $ 64,245 December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,726 $ 9,726 Impaired loans — — 35,571 35,571 Loan collateral in process of foreclosure — — 37,430 37,430 Total $ — $ — $ 82,727 $ 82,727 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities | The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2022 and 2021. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments $ 10,020 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 273 Precedent market transaction Offering price $ 8.73 / share Impaired loans 32,133 Market approach Historical and actual loss experience 0.00 % - 6.55 % 60 % of balance Transfer prices (2) $ 0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 21,819 Market approach Transfer prices (2) $ 0.0 - 79.5 Collateral value (3) $ 2.5 - 54.1 (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments $ 9,453 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 273 Precedent market transaction Offering price $ 8.73 / share Impaired loans 35,571 Market approach Historical and actual loss experience 1.50 % - 6.00 % 60 % of balance Transfer prices (2) $ 0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 37,430 Market approach Transfer prices (2) $ 0.0 - 79.5 Collateral value (3) $ 3.6 - 49.8 (1) Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities. (2) Represents amount net of liquidation costs. (3) Relates to the recreation portfolio. |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | The following shows the condensed financial information of Medallion Financial Corp. (parent company only). Condensed Balance Sheets December 31, (Dollars in thousands) 2022 2021 Assets Cash $ 20,669 $ 40,540 Investment in bank subsidiary (1) 479,496 367,945 Investment in non-bank subsidiaries 83,727 88,018 Income tax receivable 22,835 18,763 Loan collateral in process of foreclosure 2,001 5,811 Net loans receivable 2,538 3,302 Other assets 7,603 8,674 Total assets $ 618,869 $ 533,053 Liabilities Long-term borrowings (2) $ 151,808 $ 151,103 Deferred tax liabilities 38,091 35,799 Intercompany payables 33,378 39,703 Other liabilities 25,068 19,408 Total liabilities 248,345 246,013 Total stockholders’ equity 370,524 287,040 Total liabilities and equity $ 618,869 $ 533,053 (1) Includes $ 172.8 million and $ 174.3 million of goodwill and intangible assets of the Company which relate specifically to the Bank. (2) Includes $ 2.1 million and $ 2.9 million of deferred financing costs as of December 31, 2022 and 2021 . |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Interest and dividend income $ 24,631 $ 16,446 $ 4,773 Interest expense 11,289 11,209 8,602 Net interest income (loss) 13,342 5,237 ( 3,829 ) Provision (benefit) for loan losses ( 353 ) ( 4,718 ) 5,127 Net interest income (loss) after provision for loan losses 13,695 9,955 ( 8,956 ) Other expense, net ( 18,423 ) ( 6,224 ) ( 22,062 ) Income (loss) before income taxes and undistributed earnings of subsidiaries ( 4,728 ) 3,731 ( 31,018 ) Income tax benefit 7,940 4,452 10,454 Income (loss) before undistributed earnings of subsidiaries 3,212 8,183 ( 20,564 ) Undistributed earnings (losses) of subsidiaries 40,628 45,925 ( 14,219 ) Net income (loss) attributable to parent company $ 43,840 $ 54,108 $ ( 34,783 ) |
Condensed Statements of Other Comprehensive Income (Loss) | Condensed Statements of Other Comprehensive Income (Loss) Year Ended December 31, (Dollars in thousands) 2022 2021 2020 Net (income) loss $ 43,840 $ 54,108 $ ( 34,783 ) Other comprehensive income (loss) ( 4,383 ) ( 978 ) 1,013 Total comprehensive income (loss) attributable to Medallion $ 39,457 $ 53,130 $ ( 33,770 ) |
Condensed Statements of Cash Flow | Condensed Statements of Cash Flow Year Ended December 31, (Dollars in thousands) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss)/net decrease in net assets resulting from operations $ 43,840 $ 54,108 $ ( 34,783 ) Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations Equity in undistributed (earnings) losses of subsidiaries ( 64,300 ) ( 60,304 ) 6,622 (Benefit) provision for loan losses ( 353 ) ( 4,718 ) 5,127 Depreciation and amortization 2,740 4,485 5,357 Change in deferred and other tax assets/liabilities, net ( 1,780 ) ( 5,666 ) ( 3,317 ) Net change in loan collateral in process of foreclosure 64 1,619 4,940 Net change in unrealized depreciation on investments — — 3,493 Gain on extinguishment of debt — ( 2,204 ) — Net realized gains on sale of investments — ( 11,701 ) — Stock-based compensation expense 3,476 2,261 2,031 Decrease (increase) in other assets 1,055 ( 1,150 ) 2,299 Increase in deferred financing costs ( 39 ) ( 1,504 ) ( 1,233 ) Decrease in intercompany payables ( 6,325 ) ( 11,649 ) ( 3,552 ) (Decrease) increase in other liabilities 5,430 ( 1,894 ) 2,336 Net cash used for operating activities ( 16,192 ) ( 38,317 ) ( 10,680 ) CASH FLOWS FROM INVESTING ACTIVITIES Loans originated ( 92 ) — ( 14 ) Proceeds from principal receipts, sales, and maturities of loans and investments 723 28,552 1,193 Purchases of investments — ( 90 ) ( 2,304 ) Proceeds from sale and principal payments of loan collateral in process of foreclosure 3,697 666 1,276 Investment in subsidiaries ( 4,750 ) ( 3,500 ) Dividends from subsidiaries 24,750 19,000 7,597 Net cash provided by investing activities 24,328 44,628 7,748 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed — 51,400 33,600 Repayments of funds borrowed — ( 51,155 ) ( 1,402 ) Treasury stock repurchased ( 20,619 ) — — Dividends paid to shareholders ( 7,543 ) — — Proceeds from the exercise of stock options 155 241 — Net cash (used for) provided by financing activities ( 28,007 ) 486 32,198 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 19,871 ) 6,797 29,266 Cash and cash equivalents, beginning of period 40,540 33,743 4,477 Cash and cash equivalents, end of period $ 20,669 $ 40,540 $ 33,743 |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Medallion Financing Trust I [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Aggregate assets of trust | $ 34 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 02, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Interest-bearing funds deposited in other banks | $ 1,300,000 | |||
Non-marketable securities | 10,300,000 | $ 9,700,000 | ||
Impact of equity investment | 2,400,000 | |||
Past Due | 57,618,000 | 41,761,000 | ||
Notes receivable net | 79,500 | |||
Investment securities Amortized to interest income | 100,000 | 100,000 | $ 300,000 | |
Appreciation in Investment in Medallion Bank | 26,200,000 | |||
Net loan origination costs | 34,900,000 | 26,100,000 | ||
Net amortization to income | $ 8,700,000 | 8,000,000 | 6,000,000 | |
Percentage of write down of loan balance | 40% | |||
Principal portion of loans serviced, fair value | $ 19,500,000 | 20,500,000 | ||
Loans write down to collateral value | $ 39,845,000 | 32,948,000 | ||
Intangible assets useful life | 20 years | |||
Goodwill | $ 150,803,000 | 150,803,000 | ||
Intangible assets, net | 22,035,000 | 23,480,000 | ||
Amortization of intangible assets | 1,445,000 | 1,445,000 | 1,445,000 | |
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | ||
Depreciation and amortization | 400,000 | 300,000 | 400,000 | |
Amortization expense | 2,600,000 | 2,400,000 | $ 2,600,000 | |
Deferred costs | $ 7,000,000 | $ 7,100,000 | ||
Potential dilutive common shares excluded from EPS computation | 347,963 | 421,190 | 934,003 | |
Stock based compensation award | 0 | 317,398 | 444,557 | |
Stock based compensation award, Amount | $ 3,500,000 | $ 2,300,000 | $ 2,000,000 | |
Stock based compensation award per diluted common share | $ 0.15 | $ 0.09 | $ 0.08 | |
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 3,900,000 | |||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 9 months | |||
Tier 1 leverage capital to total assets ratio | 15% | |||
Tier 1 leverage capital ratio | 16.20% | |||
Capital conversation buffer | 2.50% | 2.50% | ||
Consumer Loan [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit losses | $ 11,600,000 | |||
Commercial Loan [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit losses | $ 2,200,000 | |||
Restricted Shares [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stock based compensation award | 522,475 | 258,120 | 229,408 | |
Restricted Stock Units [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stock based compensation award | 129,638 | 16,803 | 47,156 | |
RPAC [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Past Due | $ 12,400,000 | |||
Financing receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 500,000 | ||
Loan portfolio premium amortized to interest income | 500,000 | 2,200,000 | $ 3,000,000 | |
Medallion Bank [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization of intangible assets | 0 | |||
New York City [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Loans write down to collateral value | 79,500 | |||
91+ [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Past Due | 8,903,000 | 4,024,000 | ||
91+ [Member] | Loans [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Past Due | $ 8,900,000 | $ 4,000,000 | ||
Total loans more than 90 days past due ,percentage | 0.47% | 0.28% | ||
Bank Holding Company Accounting [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net premium on investment securities | $ 100,000 | $ 300,000 | ||
Other Assets [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity securities, fair value | $ 1,700,000 | 2,000,000 | ||
Equity Securities [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Purchased of equity securities with readily determinable fair value | $ 2,000,000 | |||
Minimum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Interest bearing loan term | 3 years | |||
Estimated useful life of fixed assets | 3 years | |||
Maximum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Interest bearing loan term | 5 years | |||
Estimated useful life of fixed assets | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||
Net losses recognized during the period on equity securities | $ (226) | $ (50) |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | 0 | 0 |
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date | $ (226) | $ (50) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments In Loans [Line Items] | ||
Intangibles assets | $ 22,035 | $ 23,480 |
Intellectual Property [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | 16,775 | 17,874 |
Contractor Relationships [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | $ 5,260 | $ 5,606 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net income (loss) available to common stockholders | $ 43,840 | $ 54,108 | $ (34,783) |
Weighted average common shares outstanding applicable to basic EPS | 23,583,049 | 24,599,804 | 24,445,452 |
Effect of dilutive stock options | 67,825 | 92,602 | 0 |
Effect of restricted stock grants | 276,469 | 250,763 | 0 |
Adjusted weighted average common shares outstanding applicable to diluted EPS | 23,927,342 | 24,943,169 | 24,445,452 |
Basic income (loss) per share | $ 1.86 | $ 2.20 | $ (1.42) |
Diluted income (loss) per share | $ 1.83 | $ 2.17 | $ (1.42) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Accounting Policies [Abstract] | |||
Regulatory, Minimum, Leverage ratio | [1] | 0.040 | |
Regulatory, Minimum, Common equity tier 1 capital ratio | [2] | 7% | |
Regulatory, Minimum, Tier 1 Buffer capital ratio | [3] | 8.50% | |
Regulatory, Minimum, Total capital ratio | [3] | 0.105 | |
Regulatory, Well-Capitalized, Leverage ratio | [1] | 0.050 | |
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio | [2] | 6.50% | |
Regulatory, Well-Capitalized, Tier 1 capital ratio | [3] | 0.080 | |
Regulatory, Well-Capitalized, Total capital ratio | [3] | 0.100 | |
Common equity tier 1 capital | $ 242,049 | $ 193,459 | |
Tier 1 capital | 310,837 | 262,247 | |
Total capital | 334,913 | 281,211 | |
Average assets | 1,917,904 | 1,495,726 | |
Risk-weighted assets | $ 1,888,530 | $ 1,482,678 | |
Leverage ratio | [1] | 0.162 | 0.175 |
Common equity tier 1 capital ratio | [2] | 0.128 | 0.131 |
Tier 1 capital ratio | [3] | 0.165 | 0.177 |
Total capital ratio | [3] | 0.177 | 0.190 |
[1] Calculated by dividing Tier 1 capital by average assets. Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. Calculated by dividing Tier 1 or total capital by risk-weighted assets. |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 54,301 | $ 44,494 |
Gross Unrealized Gains | 13 | 732 |
Gross Unrealized Losses | (5,822) | (454) |
Fair Value | 48,492 | 44,772 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 43,286 | 35,469 |
Gross Unrealized Gains | 0 | 672 |
Gross Unrealized Losses | (4,933) | (403) |
Fair Value | 38,353 | 35,738 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,015 | 9,025 |
Gross Unrealized Gains | 13 | 60 |
Gross Unrealized Losses | (889) | (51) |
Fair Value | $ 10,139 | $ 9,034 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, due in one year or less | $ 0 | |
Amortized Cost, due after one year through five years | 9,625 | |
Amortized Cost, due after five years through ten years | 9,303 | |
Amortized Cost, due after ten years | 35,373 | |
Amortized Cost | 54,301 | $ 44,494 |
Market Value, due in one year or less | 0 | |
Market Value, due after one year through five years | 9,222 | |
Market Value, due after five years through ten years | 8,170 | |
Market Value, due after ten years | 31,100 | |
Market Value, total | $ 48,492 | $ 44,772 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | $ (1,017) | $ (412) |
Fair Value, Less than Twelve Months | 16,949 | 18,454 |
Gross Unrealized Losses, Twelve Months and Over | (4,805) | (42) |
Fair Value, Twelve Months and Over | 29,525 | 1,956 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (731) | (403) |
Fair Value, Less than Twelve Months | 12,321 | 16,330 |
Gross Unrealized Losses, Twelve Months and Over | (4,202) | 0 |
Fair Value, Twelve Months and Over | 26,023 | 0 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (286) | (9) |
Fair Value, Less than Twelve Months | 4,628 | 2,124 |
Gross Unrealized Losses, Twelve Months and Over | (603) | (42) |
Fair Value, Twelve Months and Over | $ 3,502 | $ 1,956 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) - Securities | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-Sale [Abstract] | ||
Number of Securities | 57 | 15 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 1,882,585 | $ 1,461,622 | [1] | ||
Allowance for loan losses | (63,845) | [2] | (50,166) | [2] | $ (57,548) |
Net loans receivable | 1,853,108 | 1,438,758 | 1,172,290 | ||
Bank Holding Company Accounting [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | 1,916,953 | 1,488,924 | 1,229,838 | ||
Allowance for loan losses | (63,845) | (50,166) | |||
Net loans receivable | $ 1,853,108 | $ 1,438,758 | |||
Percentage of total gross loans | 100% | 100% | |||
Recreation [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 1,146,095 | $ 931,859 | [1] | ||
Allowance for loan losses | (41,966) | (32,435) | |||
Recreation [Member] | Bank Holding Company Accounting [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 1,183,512 | $ 961,320 | 792,686 | ||
Percentage of total gross loans | 62% | 65% | |||
Home Improvement [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 628,877 | $ 438,931 | [1] | ||
Allowance for loan losses | (11,340) | (7,356) | |||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 626,399 | $ 436,772 | 334,033 | ||
Percentage of total gross loans | 33% | 29% | |||
Commercial [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Allowance for loan losses | $ (1,049) | $ (1,141) | |||
Commercial [Member] | Bank Holding Company Accounting [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 92,899 | $ 76,696 | 65,327 | ||
Percentage of total gross loans | 5% | 5% | |||
Medallion [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 13,571 | $ 14,046 | [1] | ||
Allowance for loan losses | (9,490) | (9,234) | |||
Medallion [Member] | Bank Holding Company Accounting [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 13,571 | $ 14,046 | 37,768 | ||
Percentage of total gross loans | 1% | 1% | |||
Strategic Partnership [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 572 | $ 90 | [1] | ||
Strategic Partnership [Member] | Bank Holding Company Accounting [Member] | |||||
Student Loan Portfolio By Program [Line Items] | |||||
Total gross loans | $ 572 | $ 90 | $ 24 | ||
[1] Excludes loan premiums of $ 0.5 million and $ 26.8 million of capitalized loan origination costs. As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | [1] | $ 1,461,622 | ||||
Charge-offs, net | [2] | (16,380) | $ (12,004) | |||
Transfer to loan collateral in process of foreclosure, net | (12,791) | (15,888) | ||||
Amortization of origination costs | (8,707) | (7,996) | $ (6,022) | |||
Paid-in-kind interest | 724 | 814 | 1,188 | |||
Loans transferred to other foreclosed property | 0 | 0 | 1,800 | |||
Gross loans, ending balance | 1,882,585 | 1,461,622 | [1] | |||
Recreation [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | [1] | 931,859 | ||||
Transfer to loan collateral in process of foreclosure, net | (12,444) | (10,431) | ||||
Gross loans, ending balance | 1,146,095 | 931,859 | [1] | |||
Home Improvement [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | [1] | 438,931 | ||||
Gross loans, ending balance | 628,877 | 438,931 | [1] | |||
Medallion [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | [1] | 14,046 | ||||
Transfer to loan collateral in process of foreclosure, net | (347) | [3] | (5,457) | [4] | ||
Paid-in-kind interest | 0 | |||||
Gross loans, ending balance | 13,571 | 14,046 | [1] | |||
Strategic Partnership [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | [1] | 90 | ||||
Charge-offs, net | 0 | 0 | ||||
Gross loans, ending balance | 572 | 90 | [1] | |||
Bank Holding Company Accounting [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | 1,488,924 | 1,229,838 | ||||
Loan originations | 983,908 | 747,371 | ||||
Principal payments, sales, maturities, and recoveries | (511,602) | (443,504) | ||||
Charge-offs, net | (39,845) | (32,948) | ||||
Transfer to loan collateral in process of foreclosure, net | (12,791) | (15,888) | ||||
Amortization of origination costs | (8,707) | (7,996) | ||||
Amortization of loan premium | (535) | (2,182) | ||||
FASB origination costs, net | 16,877 | 13,419 | ||||
Paid-in-kind interest | 724 | 814 | ||||
Gross loans, ending balance | 1,916,953 | 1,488,924 | 1,229,838 | |||
Bank Holding Company Accounting [Member] | Recreation [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | 961,320 | 792,686 | ||||
Loan originations | 513,062 | 441,921 | ||||
Principal payments, sales, maturities, and recoveries | (259,326) | (252,293) | ||||
Charge-offs, net | (27,055) | (14,712) | ||||
Transfer to loan collateral in process of foreclosure, net | (12,444) | (10,431) | ||||
Amortization of origination costs | (10,470) | (9,678) | ||||
Amortization of loan premium | (213) | (221) | ||||
FASB origination costs, net | 18,638 | 14,048 | ||||
Paid-in-kind interest | 0 | 0 | ||||
Gross loans, ending balance | 1,183,512 | 961,320 | 792,686 | |||
Bank Holding Company Accounting [Member] | Home Improvement [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | 436,772 | 334,033 | ||||
Loan originations | 392,543 | 258,038 | ||||
Principal payments, sales, maturities, and recoveries | (196,203) | (153,044) | ||||
Charge-offs, net | (6,393) | (2,949) | ||||
Transfer to loan collateral in process of foreclosure, net | 0 | 0 | ||||
Amortization of origination costs | 1,763 | 1,671 | ||||
Amortization of loan premium | (322) | (346) | ||||
FASB origination costs, net | (1,761) | (631) | ||||
Paid-in-kind interest | 0 | 0 | ||||
Gross loans, ending balance | 626,399 | 436,772 | 334,033 | |||
Bank Holding Company Accounting [Member] | Commercial [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | 76,696 | 65,327 | ||||
Loan originations | 28,172 | 36,415 | ||||
Principal payments, sales, maturities, and recoveries | (6,610) | (25,873) | ||||
Charge-offs, net | (6,083) | 0 | ||||
Transfer to loan collateral in process of foreclosure, net | 0 | 0 | ||||
Amortization of origination costs | 0 | 13 | ||||
Amortization of loan premium | 0 | 0 | ||||
FASB origination costs, net | 0 | 0 | ||||
Paid-in-kind interest | 724 | 814 | ||||
Gross loans, ending balance | 92,899 | 76,696 | 65,327 | |||
Bank Holding Company Accounting [Member] | Medallion [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | 14,046 | 37,768 | ||||
Loan originations | 605 | 0 | ||||
Principal payments, sales, maturities, and recoveries | (419) | (1,363) | ||||
Charge-offs, net | (314) | (15,287) | ||||
Transfer to loan collateral in process of foreclosure, net | (347) | (5,457) | ||||
Amortization of origination costs | 0 | (2) | ||||
Amortization of loan premium | 0 | (1,615) | ||||
FASB origination costs, net | 0 | 2 | ||||
Paid-in-kind interest | 0 | |||||
Gross loans, ending balance | 13,571 | 14,046 | 37,768 | |||
Bank Holding Company Accounting [Member] | Strategic Partnership [Member] | ||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||||||
Gross loans, beginning balance | 90 | 24 | ||||
Loan originations | 49,526 | 10,997 | ||||
Principal payments, sales, maturities, and recoveries | (49,044) | (10,931) | ||||
Charge-offs, net | 0 | 0 | ||||
Transfer to loan collateral in process of foreclosure, net | 0 | 0 | ||||
Amortization of origination costs | 0 | 0 | ||||
Amortization of loan premium | 0 | 0 | ||||
FASB origination costs, net | 0 | 0 | ||||
Paid-in-kind interest | 0 | 0 | ||||
Gross loans, ending balance | $ 572 | $ 90 | $ 24 | |||
[1] Excludes loan premiums of $ 0.5 million and $ 26.8 million of capitalized loan origination costs. As of December 31, 2022 , cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 244.2 million, some of which represent collection opportunities for the Company. As of December 31, 2022 , medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets. As of December 31, 2021 , medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses - beginning balance | $ 50,166 | [1] | $ 57,548 | |||
Total charge-offs | (39,845) | (32,948) | ||||
Total recoveries | 23,465 | 20,944 | ||||
Net charge-offs | [2] | (16,380) | (12,004) | |||
Provision for loan losses | 30,059 | 4,622 | $ 69,817 | |||
Allowance for loan losses - ending balance | 63,845 | [1] | 50,166 | [1] | $ 57,548 | |
Recreation [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses - beginning balance | 32,435 | |||||
Total charge-offs | (27,055) | (14,712) | ||||
Total recoveries | 13,785 | 12,131 | ||||
Allowance for loan losses - ending balance | 41,966 | 32,435 | ||||
Home Improvement [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses - beginning balance | 7,356 | |||||
Total charge-offs | (6,393) | (2,949) | ||||
Total recoveries | 2,761 | 2,398 | ||||
Allowance for loan losses - ending balance | 11,340 | 7,356 | ||||
Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses - beginning balance | 1,141 | |||||
Total charge-offs | 47 | 0 | ||||
Total recoveries | 6,083 | 0 | ||||
Allowance for loan losses - ending balance | 1,049 | 1,141 | ||||
Medallion [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses - beginning balance | 9,234 | |||||
Total charge-offs | (314) | (15,287) | ||||
Total recoveries | 6,872 | 6,415 | ||||
Allowance for loan losses - ending balance | $ 9,490 | $ 9,234 | ||||
[1] As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. As of December 31, 2022 , cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 244.2 million, some of which represent collection opportunities for the Company. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Cumulative charges of loans and loans process of foreclosure | $ 21,819 | [1] | $ 37,430 | [1] | $ 54,560 | |
Allowance for loan losses - ending balance | 63,845 | [2] | 50,166 | [2] | $ 57,548 | |
Net charge-offs | [3] | 16,380 | 12,004 | |||
Strategic Partnership [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Net charge-offs | 0 | $ 0 | ||||
Medallion Bank [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Cumulative charges of loans and loans process of foreclosure | $ 244,200 | |||||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $ 7.5 million and $ 7.4 million as of December 31, 2022 and 2021 . As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. As of December 31, 2022 , cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 244.2 million, some of which represent collection opportunities for the Company. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Allowance for loan losses - ending balance | $ 63,845 | [1] | $ 50,166 | [1] | $ 57,548 |
Percentage of Allowance | 100% | 100% | |||
Allowance as a Percent of Loan Category | 3.33% | 3.37% | |||
Allowance as a Percent of Nonaccrual | 198.69% | 141.03% | |||
Recreation [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Allowance for loan losses - ending balance | $ 41,966 | $ 32,435 | |||
Percentage of Allowance | 66% | 64% | |||
Allowance as a Percent of Loan Category | 3.55% | 3.37% | |||
Allowance as a Percent of Nonaccrual | 130.60% | 91.18% | |||
Home Improvement [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Allowance for loan losses - ending balance | $ 11,340 | $ 7,356 | |||
Percentage of Allowance | 18% | 15% | |||
Allowance as a Percent of Loan Category | 1.81% | 1.68% | |||
Allowance as a Percent of Nonaccrual | 35.29% | 20.68% | |||
Commercial [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Allowance for loan losses - ending balance | $ 1,049 | $ 1,141 | |||
Percentage of Allowance | 1% | 2% | |||
Allowance as a Percent of Loan Category | 1.13% | 1.49% | |||
Allowance as a Percent of Nonaccrual | 3.26% | 3.21% | |||
Medallion [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Allowance for loan losses - ending balance | $ 9,490 | $ 9,234 | |||
Percentage of Allowance | 15% | 19% | |||
Allowance as a Percent of Loan Category | 69.93% | 65.74% | |||
Allowance as a Percent of Nonaccrual | 29.53% | 25.96% | |||
[1] As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Total nonaccrual loans | $ 32,133 | $ 35,571 | $ 61,767 |
Interest foregone for the year | 1,267 | 1,620 | 3,311 |
Amount of foregone interest applied to principal for the year | 375 | 432 | 602 |
Interest foregone life-to-date | 2,419 | 3,623 | 5,252 |
Amount of foregone interest applied to principal life-to-date | $ 1,204 | $ 942 | $ 792 |
Percentage of nonaccrual loans to gross loan portfolio | 1.70% | 2.40% | 5% |
Percentage of allowance for loan losses to nonaccrual loans | 198.70% | 141% | 93% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,916,953 | $ 1,488,924 |
Percentage of Nonperforming to Total | 1.70% | 2.42% |
Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,884,403 | $ 1,452,859 |
Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 32,550 | 36,065 |
Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,183,512 | $ 961,320 |
Percentage of Nonperforming to Total | 0.82% | 0.58% |
Recreation [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,173,846 | $ 955,763 |
Recreation [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 9,666 | 5,557 |
Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 626,399 | $ 436,772 |
Percentage of Nonperforming to Total | 0.09% | 0.03% |
Home Improvement [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 625,820 | $ 436,640 |
Home Improvement [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 579 | 132 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 92,899 | $ 76,696 |
Percentage of Nonperforming to Total | 9.40% | 21.29% |
Commercial [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 84,165 | $ 60,366 |
Commercial [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 8,734 | 16,330 |
Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 13,571 | $ 14,046 |
Percentage of Nonperforming to Total | 100% | 100% |
Medallion [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 0 | $ 0 |
Medallion [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 13,571 | 14,046 |
Strategic Partnership [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 572 | $ 90 |
Percentage of Nonperforming to Total | 0% | 0% |
Strategic Partnership [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 572 | $ 90 |
Strategic Partnership [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) $ in Millions | Dec. 31, 2021 USD ($) |
Financing Receivable, Recorded Investment [Line Items] | |
Loan premiums | $ 0.5 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | $ 32,550 | $ 36,065 |
Unpaid principal balance, With related allowance | 33,754 | 37,007 |
Related Allowance, With related allowance | 10,806 | 10,168 |
Average Investment Recorded, With related allowance | 39,007 | 40,080 |
Interest Income (Expense) Recognized, With related allowance | 405 | 608 |
Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 9,666 | 5,557 |
Unpaid principal balance, With related allowance | 9,666 | 5,557 |
Related Allowance, With related allowance | 343 | 188 |
Average Investment Recorded, With related allowance | 9,093 | 5,618 |
Interest Income (Expense) Recognized, With related allowance | 401 | 515 |
Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 579 | 132 |
Unpaid principal balance, With related allowance | 579 | 132 |
Related Allowance, With related allowance | 10 | 2 |
Average Investment Recorded, With related allowance | 514 | 108 |
Interest Income (Expense) Recognized, With related allowance | 4 | 0 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 8,734 | 16,330 |
Unpaid principal balance, With related allowance | 8,823 | 16,360 |
Related Allowance, With related allowance | 963 | 1,141 |
Average Investment Recorded, With related allowance | 13,381 | 16,816 |
Interest Income (Expense) Recognized, With related allowance | 0 | 93 |
Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 13,571 | 14,046 |
Unpaid principal balance, With related allowance | 14,686 | 14,958 |
Related Allowance, With related allowance | 9,490 | 8,837 |
Average Investment Recorded, With related allowance | 16,019 | 17,538 |
Interest Income (Expense) Recognized, With related allowance | $ 0 | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | $ 57,618 | $ 41,761 | ||
Total gross loans | 1,882,585 | 1,461,622 | [1] | |
Accruing | 0 | 0 | ||
Current | 57,618 | 41,761 | ||
Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,824,967 | 1,419,861 | ||
Current | 1,824,967 | 1,419,861 | ||
30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 35,189 | 23,564 | ||
Current | 35,189 | 23,564 | ||
60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 13,526 | 14,173 | ||
Current | 13,526 | 14,173 | ||
91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 8,903 | 4,024 | ||
Current | 8,903 | 4,024 | ||
Recreation [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 51,023 | [2] | 30,424 | |
Total gross loans | 1,146,095 | 931,859 | [1] | |
Accruing | 0 | 0 | ||
Current | 51,023 | [2] | 30,424 | |
Recreation [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,095,072 | 901,435 | ||
Current | 1,095,072 | 901,435 | ||
Recreation [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 31,781 | 20,037 | ||
Current | 31,781 | 20,037 | ||
Recreation [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 11,877 | 6,569 | ||
Current | 11,877 | 6,569 | ||
Recreation [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 7,365 | 3,818 | ||
Current | 7,365 | 3,818 | ||
Home Improvement [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 5,101 | [2] | 2,128 | |
Total gross loans | 628,877 | 438,931 | [1] | |
Accruing | 0 | 0 | ||
Current | 5,101 | [2] | 2,128 | |
Home Improvement [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 623,776 | 436,803 | ||
Current | 623,776 | 436,803 | ||
Home Improvement [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 3,266 | 1,517 | ||
Current | 3,266 | 1,517 | ||
Home Improvement [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,256 | 479 | ||
Current | 1,256 | 479 | ||
Home Improvement [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 579 | 132 | ||
Current | 579 | 132 | ||
Commercial Loans [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 74 | [2] | 1,869 | |
Total gross loans | 93,470 | 76,696 | [1] | |
Accruing | 0 | 0 | ||
Current | 74 | [2] | 1,869 | |
Commercial Loans [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 93,396 | 74,827 | ||
Current | 93,396 | 74,827 | ||
Commercial Loans [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 1,795 | ||
Current | 0 | 1,795 | ||
Commercial Loans [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Current | 0 | 0 | ||
Commercial Loans [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 74 | 74 | ||
Current | 74 | 74 | ||
Medallion [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,420 | [2] | 7,340 | |
Total gross loans | 13,571 | 14,046 | [1] | |
Accruing | 0 | 0 | ||
Current | 1,420 | [2] | 7,340 | |
Medallion [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 12,151 | 6,706 | ||
Current | 12,151 | 6,706 | ||
Medallion [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 142 | 215 | ||
Current | 142 | 215 | ||
Medallion [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 393 | 7,125 | ||
Current | 393 | 7,125 | ||
Medallion [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 885 | 0 | ||
Current | 885 | 0 | ||
Strategic Partnership [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | [2] | 0 | |
Total gross loans | 572 | 90 | [1] | |
Accruing | 0 | 0 | ||
Current | 0 | [2] | 0 | |
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 572 | 90 | ||
Current | 572 | 90 | ||
Strategic Partnership [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Current | 0 | 0 | ||
Strategic Partnership [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Current | 0 | 0 | ||
Strategic Partnership [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Current | $ 0 | $ 0 | ||
[1] Excludes loan premiums of $ 0.5 million and $ 26.8 million of capitalized loan origination costs. Excludes $ 34.9 million of capitalized loan origination costs. |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Loan premiums | $ 0.5 | |
Capitalized loan origination costs | $ 34.9 | $ 26.8 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) TDR | Dec. 31, 2021 USD ($) TDR | Dec. 31, 2020 USD ($) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted average loan-to-value ratio | 339% | 295% | |||
Allowance for loan loss | $ 63,845 | [1] | $ 50,166 | [1] | $ 57,548 |
Medallion [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of loans modified as TDRs defaulted | TDR | 2 | 11 | |||
Allowance for loan loss | $ 9,490 | $ 9,234 | |||
Recreation [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of loans modified as TDRs defaulted | TDR | 80 | 56 | |||
Allowance for loan loss | $ 41,966 | $ 32,435 | |||
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of loans modified as TDRs defaulted | TDR | 0 | ||||
TDR investment value | $ 900 | $ 200 | |||
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of loans modified as TDRs defaulted | TDR | 63 | 31 | |||
TDR investment value | $ 900 | $ 300 | |||
Troubled Debt Restructuring Defaulted [Member] | Commercial Loans [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of loans modified as TDRs defaulted | TDR | 2 | ||||
TDR investment value | $ 5,300 | ||||
[1] As of December 31, 2022 and 2021, there was no allowance for loan losses a nd net charge-offs related to the strategic partnership loans. |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Summary of TDRs (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) TDR | Dec. 31, 2021 USD ($) TDR | |
Recreation [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 80 | 56 |
Pre- Modification Investment | $ 1,203 | $ 668 |
Post- Modification Investment | $ 1,203 | $ 585 |
Medallion [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 2 | 11 |
Pre- Modification Investment | $ 252 | $ 3,071 |
Post- Modification Investment | $ 252 | $ 3,071 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Summary of Activities of the Loans Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans collateral in process of foreclosure - beginning balance | $ 37,430 | [1] | $ 54,560 | ||
Transfer from loans, net | 12,791 | 15,888 | |||
Sales | (10,375) | (9,879) | |||
Cash payments received | (12,289) | (14,173) | |||
Collateral valuation adjustments | (5,738) | (8,966) | |||
Loans collateral in process of foreclosure - ending balance | [1] | 21,819 | 37,430 | ||
Recreation [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans collateral in process of foreclosure - beginning balance | 1,720 | 1,432 | |||
Transfer from loans, net | 12,444 | 10,431 | |||
Sales | (7,707) | (6,951) | |||
Cash payments received | 0 | 0 | |||
Collateral valuation adjustments | (5,081) | (3,192) | |||
Loans collateral in process of foreclosure - ending balance | 1,376 | 1,720 | |||
Medallion [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Loans collateral in process of foreclosure - beginning balance | [2] | 35,710 | [3] | 53,128 | |
Transfer from loans, net | 347 | [3] | 5,457 | [2] | |
Sales | (2,668) | [3] | (2,928) | [2] | |
Cash payments received | (12,289) | [3] | (14,173) | [2] | |
Collateral valuation adjustments | (657) | [3] | (5,774) | [2] | |
Loans collateral in process of foreclosure - ending balance | [3] | $ 20,443 | $ 35,710 | [2] | |
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $ 7.5 million and $ 7.4 million as of December 31, 2022 and 2021 . As of December 31, 2021 , medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets. As of December 31, 2022 , medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets. |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
2023 | $ 513,218 | ||
2024 | 463,322 | ||
2025 | 398,720 | ||
2026 | 194,579 | ||
2027 | 203,595 | ||
Thereafter | 58,750 | ||
Long term debt | [1] | $ 1,832,184 | $ 1,477,251 |
Interest Rate | [2] | 2.43% | |
Deposits [Member] | |||
Debt Instrument [Line Items] | |||
2023 | [3] | $ 508,218 | |
2024 | [3] | 419,560 | |
2025 | [3] | 384,720 | |
2026 | [3] | 149,329 | |
2027 | [3] | 147,845 | |
Thereafter | [3] | 0 | |
Long term debt | [1],[3] | $ 1,609,672 | 1,253,288 |
Interest Rate | [2],[3] | 1.91% | |
Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2023 | $ 5,000 | ||
2024 | 7,762 | ||
2025 | 14,000 | ||
2026 | 14,000 | ||
2027 | 2,000 | ||
Thereafter | 25,750 | ||
Long term debt | [1] | $ 68,512 | 69,963 |
Interest Rate | [2] | 3.08% | |
Retail and Privately Placed Notes [Member] | |||
Debt Instrument [Line Items] | |||
2023 | $ 0 | ||
2024 | 36,000 | ||
2025 | 0 | ||
2026 | 31,250 | ||
2027 | 53,750 | ||
Thereafter | 0 | ||
Long term debt | [1] | $ 121,000 | 121,000 |
Interest Rate | [2] | 7.66% | |
Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
Thereafter | 33,000 | ||
Long term debt | [1] | $ 33,000 | $ 33,000 |
Interest Rate | [2] | 6.86% | |
[1] Excludes deferred financing costs of $ 7.0 million and $ 7.1 million as of December 31, 2022 and 2021 . Weighted average contractual rate as of December 31, 2022 Balance excludes $ 1.3 million and $ 0.8 million of strategic partner reserve deposits as of December 31, 2022 and 2021 . |
Funds Borrowed - Schedule of _2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Deferred costs | $ 7 | $ 7.1 |
Reserve Deposits | $ 1.3 | $ 0.8 |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||||||||||
Feb. 28, 2021 USD ($) | Jul. 31, 2020 USD ($) | Dec. 31, 2007 USD ($) | Jun. 30, 2007 USD ($) shares | Dec. 31, 2022 USD ($) Deposit shares | Dec. 31, 2021 USD ($) Deposit shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Apr. 30, 2021 USD ($) | Mar. 15, 2021 USD ($) | Aug. 31, 2019 USD ($) | Mar. 31, 2019 USD ($) | Dec. 31, 2017 USD ($) | ||
Debt Instrument [Line Items] | ||||||||||||||
Number of individual with time deposits greater than $100,000 | Deposit | 0 | 0 | ||||||||||||
Listing services deposits from other financial institutions. | $ 12,400 | $ 8,700 | ||||||||||||
Debt instrument face amount | $ 25,000 | |||||||||||||
Debentures borrowed | [1] | 214,320 | 219,973 | |||||||||||
Gain on debt extinguishment | 0 | 4,626 | $ 0 | |||||||||||
Aggregate principal amount | $ 6,000 | |||||||||||||
Maturity date | Feb. 28, 2026 | Sep. 24, 2024 | ||||||||||||
Gain on sale of loans and medallion | $ 5,448 | $ 1,788 | $ 1,019 | |||||||||||
Issue of common stock | shares | 28,663,827 | 28,124,629 | ||||||||||||
Preferred securities repurchased from a third party investor | $ 2,000 | |||||||||||||
Short term promissory note | $ 5,000 | $ 0 | ||||||||||||
7.25% Unsecured Senior Notes Due February 2026 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 3,000 | $ 3,300 | ||||||||||||
7.50% Unsecured Senior Notes Due December 2027 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 11,700 | |||||||||||||
Privately Placed Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate Percentage | 7.25% | 7.50% | 8.25% | |||||||||||
Aggregate principal amount | $ 25,000 | $ 33,600 | $ 8,500 | $ 30,000 | ||||||||||
Maturity date | 2024 | |||||||||||||
Maturity date | Dec. 31, 2027 | |||||||||||||
Gain on sale of loans and medallion | $ 4,100 | |||||||||||||
Debenture Mature2021 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debentures borrowed | $ 8,500 | |||||||||||||
Debt instrument commitments drawn | $ 20,200 | |||||||||||||
Preferred Securities [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maturity date | Sep. 30, 2037 | |||||||||||||
Sale of preferred securities | $ 35,000 | |||||||||||||
Issue of common stock | shares | 1,083 | |||||||||||||
Preferred securities outstanding | $ 33,000 | |||||||||||||
Preferred Securities [Member] | 90 day LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 4.77% | |||||||||||||
Preferred Securities [Member] | LIBOR Rate [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 2.13% | |||||||||||||
Preferred Securities [Member] | SOFR Rate [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 2.13% | |||||||||||||
Description of variable rate basis | 43 basis points | |||||||||||||
Preferred Securities [Member] | Unsecured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount of unsecured junior subordinated notes | $ 36,100 | |||||||||||||
Small Business Administration Debentures and Borrowings [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loan commitment term | 4 years 6 months | |||||||||||||
Commitment fee percentage | 1% | 1% | ||||||||||||
Principal amount of loan | $ 34,000 | |||||||||||||
Debt instrument interest rate Percentage | 3.25% | |||||||||||||
Extended maturity date | Apr. 30, 2024 | |||||||||||||
Debt instrument commitments available | $ 4,800 | |||||||||||||
Debt instrument outstanding amount | 68,500 | |||||||||||||
Debt instrument remaining amount | 2,800 | |||||||||||||
FSVC's [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount of loan | $ 33,500 | |||||||||||||
Minimum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Time deposits | $ 250,000 | |||||||||||||
Brokerage [Member] | Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Average brokerage fee percentage in relation to the maturity of deposits | 0.15% | |||||||||||||
[1] Includes $ 3.2 million and $ 4.0 million of deferred financing costs as of December 31, 2022 and 2021 . Refer to Note 5 for more details. |
Funds Borrowed - Summary of Mat
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Three months or less | $ 152,517 |
Over three months through six months | 117,179 |
Over six months through one year | 238,522 |
Over one year | 1,101,454 |
Total deposits | $ 1,609,672 |
Funds Borrowed - Summary of Key
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - USD ($) $ in Millions | Feb. 28, 2021 | Jul. 31, 2020 | Dec. 31, 2022 | |
Notes Payable [Line Items] | ||||
Maturity Dates | Feb. 28, 2026 | Sep. 24, 2024 | ||
Note Amounts | $ 25 | |||
Average Interest Rate | [1] | 2.43% | ||
[1] Weighted average contractual rate as of December 31, 2022 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 2,216 | $ 2,287 | $ 2,384 |
Operating cash flows from operating leases | 2,378 | 2,454 | 2,821 |
Right-of-use asset obtained in exchange for lease liability | $ (187) | $ (118) | $ 251 |
Leases - Schedule of Breakout o
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property Equipment And Right Of Use Asset Net | Property Equipment And Right Of Use Asset Net |
Operating lease right-of-use assets | $ 9,723 | $ 10,045 |
Other current liabilities | $ 2,239 | $ 2,159 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities | Operating lease liabilities |
Operating lease liabilities | $ 8,408 | $ 9,053 |
Total operating lease liabilities | $ 10,647 | $ 11,212 |
Weighted average remaining lease term | 5 years 6 months | 5 years 4 months 24 days |
Weighted average discount rate | 5.66% | 5.54% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 2,518 | |
2024 | 2,526 | |
2025 | 2,505 | |
2026 | 2,440 | |
2027 | 1,212 | |
Thereafter | 1,290 | |
Total lease payments | 12,491 | |
Less imputed interest | 1,844 | |
Total operating lease liabilities | $ 10,647 | $ 11,212 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles | $ (43,397) | $ (43,894) | |
Provision for loan losses | 9,945 | 11,057 | |
Net operating loss carryforwards | [1] | 3,730 | 12,167 |
Accrued expenses, compensation, and other assets | 3,819 | 2,579 | |
Unrealized gains on other investments | (1,445) | 2,176 | |
Total deferred tax liability | (24,458) | (15,915) | |
Valuation allowance | (2,295) | (2,295) | |
Deferred tax liability, net | $ (26,753) | $ (18,210) | |
[1] As of December 31, 2022 , the Company had an estimated $ 11.1 million of net operating loss carryforwards, $ 1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035 , which had a net carrying value of $ 1.4 million of December 31, 2022 . |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Rate Reconciliation [Line Items] | ||
Net operating loss carryforwards | $ 11.1 | |
Net operating loss carryforwards expiration period | expires at various dates between December 31, 2026 and December 31, 2035 | |
Net operating loss carryforwards assets | $ 1.4 | |
December 31, 2026 To December 31, 2035 [Member] | ||
Income Tax Rate Reconciliation [Line Items] | ||
Net operating loss carryforwards | $ 1.7 |
Income Taxes - Summary of Com_3
Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ (5,213) | $ (3,550) | $ 0 |
State | (560) | (1,563) | (260) |
Deferred | |||
Federal | (8,090) | (13,686) | 7,702 |
State | (4,100) | (5,418) | 2,632 |
Net (provision) benefit for income taxes | $ (17,963) | $ (24,217) | $ 10,074 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax (provision) benefit at 21% | $ (14,249) | $ (17,193) | $ 7,766 |
State and local income taxes, net of federal income tax benefit | (2,787) | (3,363) | 1,518 |
Valuation allowance against net operating losses | 0 | (1,833) | 1,228 |
Change in effective state income tax rates and accrual | 811 | (1,691) | (405) |
Income attributable to non-controlling interest | 0 | 628 | 460 |
Non deductible expenses | (1,987) | (178) | (453) |
Other | 249 | (587) | (40) |
Income tax (provision) benefit | $ (17,963) | $ (24,217) | $ 10,074 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax (provision) benefit percentage | 21% | 21% | 21% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||||||
Jun. 15, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 29, 2016 | Jun. 16, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock option outstanding | 1,061,849 | [1] | 1,111,687 | [1] | 951,669 | [1] | 550,040 | ||||
Stock option exercisable | 548,426 | 320,922 | 178,307 | ||||||||
Unvested shares of common stock outstanding | 513,423 | 790,765 | |||||||||
Number of shares outstanding | [2] | 857,288 | |||||||||
Intrinsic value of options vested | $ 0.3 | $ 0.1 | $ 0.1 | ||||||||
Restricted Stock Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares outstanding | 176,588 | ||||||||||
Number of shares outstanding, vested restricted stock units | 61,642 | ||||||||||
Number of shares vested and settled | 61,642 | ||||||||||
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares, granted | 16,803 | ||||||||||
Restricted Stock Units [Member] | Vest on June 14, 2023 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares, granted | 129,638 | ||||||||||
Restricted Stock Units [Member] | Vest on June 17, 2022 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average grant price, granted | $ 8.87 | $ 75 | |||||||||
Restricted Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares outstanding | 493,326 | [2] | 416,140 | 284,879 | |||||||
Weighted average fair value of options granted | $ 0 | $ 3.50 | $ 3.09 | ||||||||
Number of shares, granted | 522,475 | 258,120 | 229,408 | ||||||||
Weighted average grant price, granted | $ 7.46 | $ 7.38 | $ 6.21 | ||||||||
Number of shares vested and settled | [3] | 129,140 | 158,994 | 89,392 | |||||||
2018 Equity Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 5,710,968 | ||||||||||
Shares were rolled into the 2018 Plan | 3,295,129 | ||||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares outstanding | 114,946 | ||||||||||
2015 Restricted Stock Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unvested shares of common stock outstanding | 857,288 | ||||||||||
2006 Stock Option Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Issuance of maximum number of shares approved | 800,000 | ||||||||||
Number of additional shares available for issuance | 0 | ||||||||||
2006 Stock Option Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based compensation, options term | 10 years | ||||||||||
2015 Director Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 258,334 | 300,000 | |||||||||
2015 Director Plan [Member] | Non Employee Director One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 12,000 | ||||||||||
2015 Director Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 10 years | ||||||||||
Amended Director Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 200,000 | ||||||||||
Number of additional shares available for issuance | 0 | ||||||||||
Amended Director Plan [Member] | Director [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 9,000 | ||||||||||
Amended Director Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based compensation, options term | 10 years | ||||||||||
[1] The aggregate intrinsic value, which represents the difference betwee n the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $ 0.7 million for outstanding options and $ 0.4 million for exercisable options as of December 31, 2022 . The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022 . The aggregate fair value of the restricted stock was $ 6.1 million as of December 31, 2022 . The remaining vesting period was 2.17 years at December 31, 2022 . The aggregate fair value of the restricted stock vested was $ 1.0 million, $ 1.1 million, and $ 0.6 million for the years ended December 31, 2022, 2021, and 2020 . |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract] | ||||
Risk free interest rate | 0% | 0.97% | 1.23% | |
Expected dividend yield | 0% | 0% | 0% | |
Expected life of option in years | [1] | 0 years | 6 years 3 months | 6 years 3 months |
Expected volatility | [2] | 0% | 53.98% | 51.03% |
[1] Expected life is calculated usin g the simplified method. The Company determines its expected volatility based on the Company's historical volatility |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options beginning balance | 1,111,687 | [1] | 951,669 | [1] | 550,040 | |
Granted | 0 | 317,398 | 444,557 | |||
Cancelled | (26,093) | (113,310) | (42,928) | |||
Exercised | [2] | (23,745) | (44,070) | 0 | ||
Number of options ending balance | [1] | 1,061,849 | 1,111,687 | 951,669 | ||
Options exercisable | 548,426 | 320,922 | 178,307 | |||
Exercise price per share, lower range limit beginning balance | $ 2.14 | [1] | $ 2.14 | [1] | $ 2.14 | |
Exercise price per share, upper range limit beginning balance | 12.55 | [1] | 12.55 | [1] | 13.53 | |
Exercise price per share, granted | 0 | |||||
Exercise price per share, lower range limit ending balance | [1] | 2.14 | 2.14 | 2.14 | ||
Exercise price per share, upper range limit ending balance | [1] | 9.38 | 12.55 | 12.55 | ||
Exercise price per share, option exercisable lower range limit | 2.14 | 2.14 | 2.14 | |||
Exercise price per share, option exercisable upper range limit | 9.38 | 12.55 | 12.55 | |||
Weighted average exercise price, beginning balance | 6.41 | [1] | 6.41 | [1] | 6.58 | |
Weighted average exercise price, granted | 0 | 6.79 | 6.24 | |||
Weighted average exercise price, cancelled | 7.08 | 6.64 | 6.91 | |||
Weighted average exercise price, exercised | [2] | 6.51 | 5.58 | 0 | ||
Weighted average exercise price, ending balance | [1] | 6.51 | 6.41 | 6.41 | ||
Weighted average exercise price, options exercisable | 6.51 | 6.53 | 6.33 | |||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share, granted | 4.89 | |||||
Exercise price per share, cancelled | 4.89 | 2.22 | ||||
Exercise price per share, exercised | [2] | 4.89 | 5.21 | |||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share, granted | 6.79 | 6.68 | ||||
Exercise price per share, cancelled | 12.55 | 11.53 | 13.53 | |||
Exercise price per share, exercised | [2] | $ 7.25 | $ 7.25 | $ 0 | ||
[1] The aggregate intrinsic value, which represents the difference betwee n the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $ 0.7 million for outstanding options and $ 0.4 million for exercisable options as of December 31, 2022 . The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022 . 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, wa s $ 0.1 million, $ 0.2 million, and $ 0 for the years ended December 31, 2022, 2021, and 2020 . |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Aggregate intrinsic value for option exercised | $ 0.1 | $ 0.2 | $ 0 |
Aggregate intrinsic value of option outstanding | 0.7 | ||
Aggregate intrinsic value of option exercisable | $ 0.4 | ||
Remaining contractual life of option outstanding | 7 years 18 days | ||
Remaining contractual life of option exercisable | 6 years 7 months 9 days |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares, ending balance | [1] | 857,288 | ||||
Grant price per share, cancelled, lower limit | $ 4.89 | |||||
Grant price per share, cancelled, upper limit | $ 7.25 | |||||
Restricted Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares, beginning balance | 493,326 | [1] | 416,140 | 284,879 | ||
Number of shares, granted | 522,475 | 258,120 | 229,408 | |||
Number of shares, cancelled | (29,373) | (21,940) | (8,755) | |||
Number of shares, vested | [2] | (129,140) | (158,994) | (89,392) | ||
Number of shares, ending balance | 493,326 | [1] | 416,140 | |||
Grant price per share, lower range limit beginning balance | $ 4.89 | [1] | $ 4.39 | $ 3.95 | ||
Grant price per share, upper range limit beginning balance | 7.25 | [1] | 7.25 | 7.25 | ||
Grant price per share, granted, lower limit | 6.86 | 6.79 | 4.89 | |||
Grant price per share, granted, upper limit | 7.68 | 8.40 | 6.68 | |||
Grant price per share, cancelled, lower limit | 4.89 | 4.89 | 3.95 | |||
Grant price per share, cancelled, upper limit | 8.40 | 7.25 | 7.25 | |||
Grant price per share, vested, lower limit | [2] | 4.89 | 4.39 | 3.95 | ||
Grant price per share, vested, upper limit | [2] | 7.25 | 7.25 | 6.55 | ||
Grant price per share, lower range limit ending balance | 4.89 | [1] | 4.89 | [1] | 4.39 | |
Grant price per share, upper range limit ending balance | 7.25 | [1] | 7.25 | [1] | 7.25 | |
Weighted average grant price beginning balance | 6.87 | [1] | 6.24 | 6.01 | ||
Weighted average grant price, granted | 7.46 | 7.38 | 6.21 | |||
Weighted average grant price, cancelled | 7.32 | 5.98 | 6.93 | |||
Weighted average grant price, vested | [2] | 6.53 | 6.16 | 5.37 | ||
Weighted average grant price, ending balance | $ 7.27 | [1] | $ 6.87 | [1] | $ 6.24 | |
[1] The aggregate fair value of the restricted stock was $ 6.1 million as of December 31, 2022 . The remaining vesting period was 2.17 years at December 31, 2022 . The aggregate fair value of the restricted stock vested was $ 1.0 million, $ 1.1 million, and $ 0.6 million for the years ended December 31, 2022, 2021, and 2020 . |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair value of restricted stock outstanding | $ 6.1 | ||
Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair value of restricted stock vested | $ 1 | $ 1.1 | $ 0.6 |
Remaining vesting period of restricted stock | 2 years 2 months 1 day |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of options beginning balance | 790,765 | ||
Number of options, granted | 0 | 317,398 | 444,557 |
Number of options, cancelled | (20,370) | ||
Number of options, vested | (256,972) | ||
Number of options ending balance | 513,423 | 790,765 | |
Exercise price per share beginning balance, Lower limit | $ 4.89 | ||
Exercise price per share beginning balance, Upper limit | 7.25 | ||
Exercise price per share, Cancelled, Lower limit | 4.89 | ||
Exercise price per share, Cancelled, Upper limit | 7.25 | ||
Exercise price per share, Vested, Lower limit | 4.89 | ||
Exercise price per share, Vested, Upper limit | 7.25 | ||
Exercise price per share ending balance, Lower limit | 4.89 | $ 4.89 | |
Exercise price per share ending balance, Upper limit | 7.25 | 7.25 | |
Weighted average exercise price | 6.52 | ||
Weighted average exercise price, cancelled | 6.34 | ||
Weighted average exercise price, vested | 6.55 | ||
Weighted average exercise price | $ 6.52 | $ 6.52 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting Disclosure [Line Items] | |
Number of business segments | 5 |
Number of operating segments | 4 |
Number of non-operating segments | 1 |
Roofs [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 37% |
Swimming Pools [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 23% |
Windows [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 12% |
Other Product Lines [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10% |
Texas [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 16% |
Texas [Member] | Home Improvement | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10% |
Florida [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 11% |
Florida [Member] | Home Improvement | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10% |
Other States [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10% |
Other States [Member] | Home Improvement | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10% |
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Recreational Vehicles [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 58% |
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Boats [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 19% |
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Trailers [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 14% |
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Other Product Lines [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 10% |
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Midwest [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 44% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 196,621 | $ 158,966 | $ 144,962 | |||
Total interest expense | 36,185 | 31,140 | 34,151 | |||
Net interest income (loss) | 160,436 | 127,826 | 110,811 | |||
Provision (benefit) for loan losses | 30,059 | 4,622 | 69,817 | |||
Net interest income (loss) after loss provision | 130,377 | 123,204 | 40,994 | |||
Sponsorship and race winnings | 0 | 12,567 | 20,042 | |||
Race team related expenses | 0 | (9,559) | (8,366) | |||
Other income (expense), net | (62,527) | (44,341) | (89,651) | |||
Income (loss) before income taxes | 67,850 | 81,871 | (36,981) | |||
Income tax (provision) benefit | (17,963) | (24,217) | 10,074 | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 49,887 | 57,654 | (26,907) | |||
Less: income attributable to the non-controlling interest | 6,047 | 3,546 | 7,876 | |||
Total net income (loss) attributable to Medallion Financial Corp. | 43,840 | 54,108 | (34,783) | |||
Balance Sheet Data | ||||||
Total loans net | 1,853,108 | 1,438,758 | 1,172,290 | |||
Total assets | 2,259,879 | 1,873,057 | 1,642,411 | |||
Total funds borrowed | $ 1,833,435 | $ 1,485,150 | $ 1,312,255 | |||
Selected Financial Ratios | ||||||
Return on average assets | 2.40% | 3.33% | (1.67%) | |||
Return on average equity | 13.74% | 17.64% | 8.43% | |||
Return on average stockholders' equity | 14.92% | 21.24% | (14.06%) | |||
Interest yield | 11.06% | 11.48% | 11.32% | |||
Net interest margin | 9.05% | 9.26% | 8.65% | |||
Reserve coverage | 3.33% | 3.37% | 4.68% | |||
Delinquency status | 0.47% | [1] | 0.28% | [2] | 0.57% | [3] |
Charge-off ratio | 0.99% | [4] | 0.85% | 5% | ||
RPAC [Member] | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 0 | [5] | $ 0 | |||
Total interest expense | 546 | [5] | 163 | |||
Net interest income (loss) | (546) | [5] | (163) | |||
Provision (benefit) for loan losses | 0 | [5] | 0 | |||
Net interest income (loss) after loss provision | (546) | [5] | (163) | |||
Sponsorship and race winnings | 12,567 | [5] | 20,042 | |||
Race team related expenses | (9,559) | [5] | (8,366) | |||
Other income (expense), net | (5,108) | [5] | (7,973) | |||
Income (loss) before income taxes | (2,646) | [5] | 3,540 | |||
Income tax (provision) benefit | (1,498) | [5] | (889) | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (4,144) | [5] | 2,651 | |||
Balance Sheet Data | ||||||
Total loans net | 0 | [5] | 0 | |||
Total assets | 0 | [5] | 33,711 | |||
Total funds borrowed | $ 0 | [5] | $ 8,689 | |||
Selected Financial Ratios | ||||||
Return on average assets | 20.35% | [5] | 7.98% | |||
Return on average equity | 885.29% | [5] | (363.66%) | |||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 139,145 | $ 118,305 | $ 110,706 | |||
Total interest expense | 17,932 | 9,993 | 13,013 | |||
Net interest income (loss) | 121,213 | 108,312 | 97,693 | |||
Provision (benefit) for loan losses | 22,802 | 7,671 | 23,736 | |||
Net interest income (loss) after loss provision | 98,411 | 100,641 | 73,957 | |||
Sponsorship and race winnings | 0 | 0 | ||||
Race team related expenses | 0 | 0 | ||||
Other income (expense), net | (30,463) | (30,156) | (27,341) | |||
Income (loss) before income taxes | 67,948 | 70,485 | 46,616 | |||
Income tax (provision) benefit | (17,989) | (18,699) | (12,004) | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 49,959 | 51,786 | 34,612 | |||
Balance Sheet Data | ||||||
Total loans net | 1,141,546 | 928,885 | 765,338 | |||
Total assets | 1,154,680 | 896,223 | 777,605 | |||
Total funds borrowed | $ 936,789 | $ 710,616 | $ 621,735 | |||
Selected Financial Ratios | ||||||
Return on average assets | 4.71% | 6% | 4.59% | |||
Return on average equity | 26.83% | 30.01% | 22.93% | |||
Interest yield | 13.28% | 13.94% | 14.90% | |||
Net interest margin | 11.57% | 12.76% | 13.15% | |||
Reserve coverage | 3.55% | 3.37% | 3.45% | |||
Delinquency status | 0.64% | [1] | 0.41% | [2] | 0.70% | [3] |
Charge-off ratio | 1.27% | [4] | 0.30% | 1.95% | ||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 44,703 | $ 34,204 | $ 27,273 | |||
Total interest expense | 7,697 | 4,153 | 5,699 | |||
Net interest income (loss) | 37,006 | 30,051 | 21,574 | |||
Provision (benefit) for loan losses | 7,616 | 2,750 | 3,778 | |||
Net interest income (loss) after loss provision | 29,390 | 27,301 | 17,796 | |||
Sponsorship and race winnings | 0 | 0 | ||||
Race team related expenses | 0 | 0 | ||||
Other income (expense), net | (13,500) | (11,640) | (9,611) | |||
Income (loss) before income taxes | 15,890 | 15,661 | 8,185 | |||
Income tax (provision) benefit | (4,207) | (4,155) | (2,108) | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 11,683 | 11,506 | 6,077 | |||
Balance Sheet Data | ||||||
Total loans net | 615,059 | 429,416 | 328,876 | |||
Total assets | 618,923 | 371,781 | 340,494 | |||
Total funds borrowed | $ 502,131 | $ 294,786 | $ 272,284 | |||
Selected Financial Ratios | ||||||
Return on average assets | 2.23% | 3.01% | 2.07% | |||
Return on average equity | 12.72% | 15.04% | 10.35% | |||
Interest yield | 8.64% | 9.30% | 9.66% | |||
Net interest margin | 7.16% | 8.17% | 7.62% | |||
Reserve coverage | 1.81% | 1.68% | 1.54% | |||
Delinquency status | 0.09% | [1] | 0.03% | [2] | 0.05% | [3] |
Charge-off ratio | 0.70% | [4] | 0.15% | 0.44% | ||
Operating Segments [Member] | Commercial Lending [Member] | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 9,348 | $ 6,592 | $ 6,926 | |||
Total interest expense | 3,040 | 2,720 | 2,538 | |||
Net interest income (loss) | 6,308 | 3,872 | 4,388 | |||
Provision (benefit) for loan losses | 5,963 | 0 | 0 | |||
Net interest income (loss) after loss provision | 345 | 3,872 | 4,388 | |||
Sponsorship and race winnings | 0 | 0 | ||||
Race team related expenses | 0 | 0 | ||||
Other income (expense), net | (1,604) | 3,101 | (3,196) | |||
Income (loss) before income taxes | (1,259) | 6,973 | 1,192 | |||
Income tax (provision) benefit | 333 | (1,850) | (299) | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (926) | 5,123 | 893 | |||
Balance Sheet Data | ||||||
Total loans net | 91,850 | 73,713 | 62,037 | |||
Total assets | 101,447 | 103,631 | 80,622 | |||
Total funds borrowed | $ 82,304 | $ 82,169 | $ 65,924 | |||
Selected Financial Ratios | ||||||
Return on average assets | (0.90%) | 5.85% | 1.07% | |||
Return on average equity | (5.28%) | 29.23% | 5.17% | |||
Interest yield | 10.78% | 10.41% | 10.51% | |||
Net interest margin | 7.28% | 6.12% | 6.66% | |||
Reserve coverage | 1.13% | 1.49% | 0% | |||
Delinquency status | 0.08% | [1] | 0.10% | [2] | 0.11% | [3] |
Charge-off ratio | 6.96% | [4] | 0% | 0.04% | ||
Operating Segments [Member] | Medallion Lending [Member] | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 632 | $ (1,483) | $ (1,518) | |||
Total interest expense | 508 | 5,914 | 3,610 | |||
Net interest income (loss) | 124 | (7,397) | (5,128) | |||
Provision (benefit) for loan losses | (6,474) | (7,752) | 42,276 | |||
Net interest income (loss) after loss provision | 6,598 | 355 | (47,404) | |||
Sponsorship and race winnings | 0 | 0 | ||||
Race team related expenses | 0 | 0 | ||||
Other income (expense), net | (6,179) | (1,991) | (30,366) | |||
Income (loss) before income taxes | 419 | (1,636) | (77,770) | |||
Income tax (provision) benefit | (111) | 433 | 19,520 | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 308 | (1,203) | (58,250) | |||
Balance Sheet Data | ||||||
Total loans net | 4,081 | 4,812 | 12,725 | |||
Total assets | 24,648 | 42,011 | 124,554 | |||
Total funds borrowed | $ 19,997 | $ 69,221 | $ 98,636 | |||
Selected Financial Ratios | ||||||
Return on average assets | 0.74% | (1.15%) | (33.21%) | |||
Return on average equity | 4.03% | (5.75%) | (165.21%) | |||
Interest yield | 14.05% | (18.77%) | (2.11%) | |||
Net interest margin | 2.76% | (93.60%) | (7.14%) | |||
Reserve coverage | 69.93% | 65.74% | 66.31% | |||
Delinquency status | 6.52% | [1] | 0% | [2] | 3.57% | [3] |
Charge-off ratio | (145.76%) | [4] | 95.40% | 59.38% | ||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Total interest income (loss) | $ 2,793 | $ 1,348 | $ 1,575 | |||
Total interest expense | 7,008 | 7,814 | 9,128 | |||
Net interest income (loss) | (4,215) | (6,466) | (7,553) | |||
Provision (benefit) for loan losses | 152 | 1,953 | 27 | |||
Net interest income (loss) after loss provision | (4,367) | (8,419) | (7,580) | |||
Sponsorship and race winnings | 0 | 0 | ||||
Race team related expenses | 0 | 0 | ||||
Other income (expense), net | (10,781) | 1,453 | (11,164) | |||
Income (loss) before income taxes | (15,148) | (6,966) | (18,744) | |||
Income tax (provision) benefit | 4,011 | 1,552 | 5,854 | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (11,137) | (5,414) | (12,890) | |||
Balance Sheet Data | ||||||
Total loans net | 572 | 1,932 | 3,314 | |||
Total assets | 360,181 | 459,411 | 285,425 | |||
Total funds borrowed | $ 292,214 | $ 328,358 | $ 244,987 | |||
Selected Financial Ratios | ||||||
Return on average assets | (3.12%) | (1.89%) | (5.06%) | |||
Return on average equity | (18.62%) | (13.62%) | (23.29%) | |||
[1] Loans 90 days or more past due. Loans 90 days or more past due. Loans 90 days or more past due. Negative balances indicate recoveries for the period The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments And Contingencies [Abstract] | |
Employment agreements expiration description | Employment agreements expire at various dates through 2027 |
Future minimum payments | $ 11,771 |
Other Commitment | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments And Contingencies [Abstract] | |
2023 | $ 4,128 |
2024 | 2,493 |
2025 | 2,131 |
2025 | 2,131 |
2026 | 888 |
Thereafter | 0 |
Total | $ 11,771 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Salary from related party | $ 250,950 | $ 239,000 | $ 195,000 | |
Annual cash bonus | 85,000 | 75,000 | $ 32,500 | |
Equity Bonus | $ 50,000 | $ 45,019 | $ 30,000 |
Stockholder's_Shareholder's Equ
Stockholder's/Shareholder's Equity - Additional Information (Detail) - Stock Repurchase Program [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Aug. 10, 2022 | Apr. 29, 2022 | |
Stockholders Equity [Line Items] | |||||
Repurchases of common stock | $ 40,000 | $ 35,000 | |||
Stock repurchased during period | 2,650,911 | ||||
Payment for repurchase of common stock | $ 20,618,843 | ||||
Stock purchased during period | 0 | 0 | |||
Shares remain authorized for repurchase amount | $ 19,998,012 |
Stockholder's_Shareholder's E_2
Stockholder's/Shareholder's Equity - summary of Company purchases (Detail) - Stock Repurchase Program [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 2,650,911 |
Average Price Paid per Share | $ / shares | $ 7.78 |
Total Amount Paid | $ 20,618,843 |
Maximum Value of Shares Yet to Be Purchased | $ 19,998,012 |
January 1 to January 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 0 |
Average Price Paid per Share | $ / shares | $ 0 |
Total Amount Paid | $ 0 |
Maximum Value of Shares Yet to Be Purchased | $ 22,874,509 |
February 1 to February 28 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 0 |
Average Price Paid per Share | $ / shares | $ 0 |
Total Amount Paid | $ 0 |
Maximum Value of Shares Yet to Be Purchased | $ 22,874,509 |
March 1 to March 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 67,660 |
Average Price Paid per Share | $ / shares | $ 9.12 |
Total Amount Paid | $ 616,855 |
Maximum Value of Shares Yet to Be Purchased | $ 22,257,654 |
April 1 to April 30 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 0 |
Average Price Paid per Share | $ / shares | $ 0 |
Total Amount Paid | $ 0 |
Maximum Value of Shares Yet to Be Purchased | $ 22,257,654 |
May 1 to May 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 1,056,933 |
Average Price Paid per Share | $ / shares | $ 7.87 |
Total Amount Paid | $ 8,316,012 |
Maximum Value of Shares Yet to Be Purchased | $ 26,683,988 |
June 1 to June 30 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 215,217 |
Average Price Paid per Share | $ / shares | $ 7.71 |
Total Amount Paid | $ 1,658,542 |
Maximum Value of Shares Yet to Be Purchased | $ 25,025,447 |
July 1 to July 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 0 |
Average Price Paid per Share | $ / shares | $ 0 |
Total Amount Paid | $ 0 |
Maximum Value of Shares Yet to Be Purchased | $ 25,025,447 |
August 1 to August 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 734,547 |
Average Price Paid per Share | $ / shares | $ 7.93 |
Total Amount Paid | $ 5,822,227 |
Maximum Value of Shares Yet to Be Purchased | $ 24,203,219 |
September 1 to September 30 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 319,323 |
Average Price Paid per Share | $ / shares | $ 7.54 |
Total Amount Paid | $ 2,408,673 |
Maximum Value of Shares Yet to Be Purchased | $ 21,794,546 |
October 1 to October 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 257,231 |
Average Price Paid per Share | $ / shares | $ 6.98 |
Total Amount Paid | $ 1,796,534 |
Maximum Value of Shares Yet to Be Purchased | $ 19,998,012 |
November 1 to November 30 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 0 |
Average Price Paid per Share | $ / shares | $ 0 |
Total Amount Paid | $ 0 |
Maximum Value of Shares Yet to Be Purchased | $ 19,998,012 |
December 1 to December 31 [Member] | |
Equity, Class of Treasury Stock [Line Items] | |
Total Shares of Common Stock Repurchased | shares | 0 |
Average Price Paid per Share | $ / shares | $ 0 |
Total Amount Paid | $ 0 |
Maximum Value of Shares Yet to Be Purchased | $ 19,998,012 |
Selected Financial Ratios and O
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Ratios/supplemental data | ||||
Total shareholders’ equity (net assets) | $ 370,524 | $ 355,828 | $ 304,561 | $ 334,468 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Minimum percentage of total annual compensation allowed to be deferred | 1% | |||
Employer matching contribution, description | Once eligible full-time employees have completed a minimum of ninety (90) days of service, and part time employees have worked at least 1,000 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to fifty percent of the first 8% of the employee’s annual contributions, subject to legal limits. Prior to June 1, 2022, the 401(k) Plan covered full- and part-time employees of the Company aged 21 and older that had completed a minimum of thirty (30) days of service, with the Company matching one-third of the first 6% of the contributions of eligible employees that had completed at least one (1) year of service (in the case of full-time employees) or 1,000 hours (in the case of part-time employees). | |||
Employee contributions to 401(k) Plan matched by company in an amount per employee of first 6% of employee's annual contributions | 50% | 33.33% | ||
Defined benefit plan amount expense | $ 0.3 | $ 0.3 | $ 0.2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Financial assets | ||||
Equity investments | $ 10,293 | $ 9,726 | $ 0 | |
Investment securities | 48,492 | 44,772 | ||
Loans receivable | 1,916,953 | 1,488,924 | ||
Carrying Amount [Member] | ||||
Financial assets | ||||
Cash, cash equivalents, and federal funds sold | [1] | 105,598 | 124,484 | |
Equity investments | 10,293 | 9,726 | ||
Investment securities | 48,492 | 44,772 | ||
Loans receivable | 1,853,108 | 1,438,758 | ||
Accrued interest receivable | [2] | 12,613 | 10,621 | |
Equity securities, fair value | [3] | 1,724 | 1,950 | |
Financial liabilities | ||||
Funds borrowed | 1,833,434 | 1,478,001 | ||
Accrued interest payable | [2] | 4,790 | 3,395 | |
Fair Value Recurring [Member] | ||||
Financial assets | ||||
Cash, cash equivalents, and federal funds sold | [1] | 105,598 | 124,484 | |
Equity investments | 10,293 | 9,726 | ||
Investment securities | 48,492 | 44,772 | ||
Loans receivable | 1,853,108 | 1,438,758 | ||
Accrued interest receivable | [2] | 12,613 | 10,621 | |
Equity securities, fair value | [3] | 1,724 | 1,950 | |
Financial liabilities | ||||
Funds borrowed | 1,833,434 | 1,478,001 | ||
Accrued interest payable | [2] | $ 4,790 | $ 3,395 | |
[1] Categorized as level 1 within the fair value hierarchy, excluding $ 1.3 million as of December 31, 2022 and $ 1.3 million as of December 31, 2021 of interest-bearing deposits categorized as level 2. See Note 15. Categorized as level 3 within the fair value hierarchy. See Note 15 Included within other assets on the balance sheet. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | $ 1,300 | |
Fair Value Recurring [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | 1,250 | $ 1,250 |
Fair Value Recurring [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | $ 1,250 | $ 1,250 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |||
Assets | |||||
Interest-bearing deposits | $ 1,300 | ||||
Fair Value Recurring [Member] | |||||
Assets | |||||
Interest-bearing deposits | 1,250 | $ 1,250 | |||
Available for sale investment securities | 48,492 | 44,772 | |||
Equity securities, fair value | [1] | 1,724 | 1,950 | ||
Total | 51,466 | [2] | 47,972 | [3] | |
Fair Value Recurring [Member] | Level 1 [Member] | |||||
Assets | |||||
Equity securities, fair value | 1,724 | 1,950 | |||
Total | 1,724 | [2] | 1,950 | [3] | |
Fair Value Recurring [Member] | Level 2 [Member] | |||||
Assets | |||||
Interest-bearing deposits | 1,250 | 1,250 | |||
Available for sale investment securities | 48,492 | 44,772 | |||
Total | $ 49,742 | [2] | $ 46,022 | [3] | |
[1] Included within other assets on the balance sheet. Total unrealized losses of $ 4.4 million , net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2022 related to these assets. Total unrealized losses of $ 1.0 million , net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||
Net change in unrealized gains (losses) on investments, net of tax | $ (4,383) | $ (978) | $ 1,013 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Assets | |||||
Impaired loans | $ 19,500 | $ 20,500 | |||
Loan collateral in process of foreclosure | 21,819 | [1] | 37,430 | [1] | $ 54,560 |
Fair Value, Nonrecurring | |||||
Assets | |||||
Equity securities, fair value | 10,293 | 9,726 | |||
Impaired loans | 32,133 | 35,571 | |||
Loan collateral in process of foreclosure | 21,819 | 37,430 | |||
Total | 64,245 | 82,727 | |||
Fair Value, Nonrecurring | Level 3 [Member] | |||||
Assets | |||||
Equity securities, fair value | 10,293 | 9,726 | |||
Impaired loans | 32,133 | 35,571 | |||
Loan collateral in process of foreclosure | 21,819 | 37,430 | |||
Total | $ 64,245 | $ 82,727 | |||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $ 7.5 million and $ 7.4 million as of December 31, 2022 and 2021 . |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Principal portion of loans serviced, fair value | $ 19,500,000 | $ 20,500,000 | ||||
Loan collateral in process of foreclosure | $ 21,819,000 | [1] | $ 37,430,000 | [1] | $ 54,560,000 | |
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Equity Value | $ / shares | $ 8.73 | $ 8.73 | ||||
Impaired Loans [Member] | Market Approach [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Impaired loans, balance percentage | 0.60 | 0.60 | ||||
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Impaired loans value | 0 | 0.0150 | ||||
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Impaired loans value | 0.0655 | 0.0600 | ||||
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Principal portion of loans serviced, fair value | [2] | $ 0 | $ 0 | |||
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Principal portion of loans serviced, fair value | [2] | 79,500 | 79,500 | |||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Minimum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Loan collateral in process of foreclosure value | [3] | 2,500 | 3,600 | |||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Maximum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Loan collateral in process of foreclosure value | [3] | 54,100 | 49,800 | |||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Loan collateral in process of foreclosure value | [2] | 0 | 0 | |||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Loan collateral in process of foreclosure value | [2] | 79,500 | 79,500 | |||
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Equity securities, fair value | 10,020,000 | 9,453,000 | ||||
Level 3 [Member] | Impaired Loans [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Equity securities, fair value | 273,000 | 273,000 | ||||
Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Principal portion of loans serviced, fair value | 32,133,000 | 35,571,000 | ||||
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Loan collateral in process of foreclosure | $ 21,819,000 | $ 37,430,000 | ||||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $ 7.5 million and $ 7.4 million as of December 31, 2022 and 2021 . Represents amount net of liquidation costs. Relates to the recreation portfolio. |
Medallion Bank Preferred Stoc_2
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 17, 2019 | Jul. 21, 2011 | Dec. 31, 2022 | |
Capital Purchase Program [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Preferred stock, liquidation preference per share | $ 1,000 | ||
U.S. Treasury Securities [Member] | Capital Purchase Program [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
US Treasury shares purchased | 26,303 | ||
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Initial public offering shares | 1,840,000 | ||
Preferred stock, aggregate liquidation amount | $ 46 | ||
Preferred stock, net of liquidation amount | $ 42.5 | ||
Percentage of dividend payment rate | 8% | ||
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | SOFR [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Percentage of liquidation rate basis | 6.46% | ||
Dividend description of variable rate basis | three-month Secured Overnight Financing Rate, or SOFR | ||
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Percentage of dividend payment rate | 9% | ||
Aggregate purchase price | $ 26.3 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Assets | ||||||
Income tax receivable | $ 2,095 | $ 833 | ||||
Loan collateral in process of foreclosure | 21,819 | [1] | 37,430 | [1] | $ 54,560 | |
Net loans receivable | 1,853,108 | 1,438,758 | 1,172,290 | |||
Other assets | 19,855 | 20,388 | ||||
Total assets | 2,259,879 | 1,873,057 | $ 1,642,411 | |||
Liabilities | ||||||
Long-term borrowings | [2] | 214,320 | 219,973 | |||
Short-term borrowings | 5,000 | 0 | ||||
Deferred tax liabilities | 26,753 | 18,210 | ||||
Total liabilities | 1,889,355 | 1,517,229 | ||||
Total stockholders’ equity | 301,736 | 287,040 | ||||
Total liabilities and equity | 2,259,879 | 1,873,057 | ||||
Parent Company [Member] | ||||||
Assets | ||||||
Cash | 20,669 | 40,540 | ||||
Investment in bank subsidiaries | [3] | 479,496 | 367,945 | |||
Investment in non-bank subsidiaries | 83,727 | 88,018 | ||||
Income tax receivable | 22,835 | 18,763 | ||||
Loan collateral in process of foreclosure | 2,001 | 5,811 | ||||
Net loans receivable | 2,538 | 3,302 | ||||
Other assets | 7,603 | 8,674 | ||||
Total assets | 618,869 | 533,053 | ||||
Liabilities | ||||||
Long-term borrowings | [4] | 151,808 | 151,103 | |||
Deferred tax liabilities | 38,091 | 35,799 | ||||
Intercompany payables | 33,378 | 39,703 | ||||
Other liabilities | 25,068 | 19,408 | ||||
Total liabilities | 248,345 | 246,013 | ||||
Total stockholders’ equity | 370,524 | 287,040 | ||||
Total liabilities and equity | $ 618,869 | $ 533,053 | ||||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $ 7.5 million and $ 7.4 million as of December 31, 2022 and 2021 . Includes $ 3.2 million and $ 4.0 million of deferred financing costs as of December 31, 2022 and 2021 . Refer to Note 5 for more details. Includes $ 172.8 million and $ 174.3 million of goodwill and intangible assets of the Company which relate specifically to the Bank. Includes $ 2.1 million and $ 2.9 million of deferred financing costs as of December 31, 2022 and 2021 . |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Intangibles assets | $ 22,035 | $ 23,480 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Goodwill and intangible assets | 172,800 | 174,300 |
Deferred financing costs | $ 2,100 | $ 2,900 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Statements - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Net interest income (loss) | $ 160,436 | $ 127,826 | $ 110,811 |
Provision (benefit) for loan losses | 30,059 | 4,622 | 69,817 |
Net interest income (loss) after loss provision | 130,377 | 123,204 | 40,994 |
Income (loss) before income taxes | 67,850 | 81,871 | (36,981) |
Total net income (loss) attributable to Medallion Financial Corp. | 43,840 | 54,108 | (34,783) |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest and dividend income | 24,631 | 16,446 | 4,773 |
Interest expense | 11,289 | 11,209 | 8,602 |
Net interest income (loss) | 13,342 | 5,237 | (3,829) |
Provision (benefit) for loan losses | (353) | (4,718) | 5,127 |
Net interest income (loss) after loss provision | 13,695 | 9,955 | (8,956) |
Other expense, net | (18,423) | (6,224) | (22,062) |
Income (loss) before income taxes | (4,728) | 3,731 | (31,018) |
Income tax benefit | 7,940 | 4,452 | 10,454 |
Total net income (loss) attributable to Medallion Financial Corp. | 3,212 | 8,183 | (20,564) |
Undistributed earnings (losses) of subsidiaries | 40,628 | 45,925 | (14,219) |
Net income (loss) attributable to parent company | $ 43,840 | $ 54,108 | $ (34,783) |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Statements - Condensed Statements of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statement of Income Captions [Line Items] | |||
Net (income) loss | $ 49,887 | $ 57,654 | $ (26,907) |
Other comprehensive income (loss) | (4,383) | (978) | 1,013 |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | 39,457 | 53,130 | (33,770) |
Parent Company [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net (income) loss | 43,840 | 54,108 | (34,783) |
Other comprehensive income (loss) | (4,383) | (978) | 1,013 |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | $ 39,457 | $ 53,130 | $ (33,770) |
Parent Company Only Condensed_7
Parent Company Only Condensed Financial Statements - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) after taxes | $ 49,887 | $ 57,654 | $ (26,907) |
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities: | |||
(Benefit) provision for loan losses | 30,059 | 4,622 | 69,817 |
Depreciation and amortization | 5,229 | 6,519 | 7,714 |
Change in deferred and other tax assets/liabilities, net | 7,281 | 18,327 | (8,776) |
Net change in loan collateral in process of foreclosure | 5,738 | 8,966 | 31,926 |
Gain on extinguishment of debt | 0 | (4,626) | 0 |
Net realized gains on sale of investments | (2,779) | (17,380) | 4,305 |
Stock-based compensation expense | 3,476 | 2,261 | 2,030 |
Decrease (increase) in other assets | (3,919) | (5,354) | 2,223 |
Net cash provided by operating activities | 108,740 | 78,726 | 78,706 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Loans originated | (1,000,785) | (760,790) | (506,106) |
Proceeds from principal receipts, sales, and maturities of loans and investments | 535,067 | 464,448 | 321,831 |
Purchases of investments | (20,713) | (19,354) | (15,580) |
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 22,664 | 24,052 | 13,499 |
Net cash used for investing activities | (449,005) | (238,321) | (170,957) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from funds borrowed | 839,104 | 805,577 | 668,577 |
Repayments of funds borrowed | (483,671) | (627,263) | (526,064) |
Treasury stock repurchased | (20,619) | 0 | 0 |
Proceeds from the exercise of stock options | 155 | 241 | 0 |
Net cash provided by financing activities | 321,379 | 172,039 | 136,470 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (18,886) | 12,444 | 44,219 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) after taxes | 43,840 | 54,108 | (34,783) |
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities: | |||
Equity in undistributed (earnings) losses of subsidiaries | (64,300) | (60,304) | 6,622 |
(Benefit) provision for loan losses | (353) | (4,718) | 5,127 |
Depreciation and amortization | 2,740 | 4,485 | 5,357 |
Change in deferred and other tax assets/liabilities, net | (1,780) | (5,666) | (3,317) |
Net change in loan collateral in process of foreclosure | 64 | 1,619 | 4,940 |
Net change in unrealized depreciation on investments | 0 | 0 | 3,493 |
Gain on extinguishment of debt | 0 | (2,204) | 0 |
Net realized gains on sale of investments | 0 | (11,701) | 0 |
Stock-based compensation expense | 3,476 | 2,261 | 2,031 |
Decrease (increase) in other assets | 1,055 | (1,150) | 2,299 |
Increase in deferred financing costs | (39) | (1,504) | (1,233) |
Decrease in intercompany payables | (6,325) | (11,649) | (3,552) |
(Decrease) increase in other liabilities | 5,430 | (1,894) | 2,336 |
Net cash provided by operating activities | (16,192) | (38,317) | (10,680) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Loans originated | (92) | 0 | (14) |
Proceeds from principal receipts, sales, and maturities of loans and investments | 723 | 28,552 | 1,193 |
Purchases of investments | 0 | (90) | (2,304) |
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 3,697 | 666 | 1,276 |
Investment in subsidiaries | (4,750) | (3,500) | |
Dividends from subsidiaries | 24,750 | 19,000 | 7,597 |
Net cash used for investing activities | 24,328 | 44,628 | 7,748 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from funds borrowed | 0 | 51,400 | 33,600 |
Repayments of funds borrowed | 0 | (51,155) | (1,402) |
Treasury stock repurchased | (20,619) | 0 | 0 |
Dividends paid to shareholders | (7,543) | 0 | 0 |
Proceeds from the exercise of stock options | 155 | 241 | 0 |
Net cash provided by financing activities | (28,007) | 486 | 32,198 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (19,871) | 6,797 | 29,266 |
Cash and cash equivalents, beginning of period | 40,540 | 33,743 | 4,477 |
Cash and cash equivalents, end of period | $ 20,669 | $ 40,540 | $ 33,743 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 28, 2021 | Jul. 31, 2020 | Oct. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Variable Interest Entity [Line Items] | ||||||
Variable interest entity net gain | $ 25,300 | |||||
Equity investments | $ 10,293 | $ 9,726 | $ 0 | |||
Maturity date | Feb. 28, 2026 | Sep. 24, 2024 | ||||
Medallion Financing Trust I [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Promissory note payable | $ 1,400 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Subsequent Event [Line Items] | |
Purchase of common stock, value | $ 20,619 |