Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | MEDALLION FINANCIAL CORP | |
Entity Central Index Key | 0001000209 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,362,089 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
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 $0.01 per share | |
Trading Symbol | MFIN | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |||
Assets | |||||
Cash and cash equivalents | $ 82,257 | $ 33,172 | |||
Federal funds sold | 42,297 | 72,426 | |||
Investment securities | 53,692 | 48,492 | |||
Equity investments | 11,404 | 10,293 | |||
Loans | 2,156,998 | 1,916,953 | |||
Allowance for loan losses | (74,971) | [1] | (63,845) | [2] | |
Net loans receivable | 2,082,027 | 1,853,108 | |||
Goodwill | 150,803 | 150,803 | |||
Intangible assets, net | 21,315 | 22,035 | |||
Loan collateral in process of foreclosure | [3] | 16,803 | 21,819 | ||
Accrued interest receivable | 13,345 | 12,613 | |||
Property, equipment, and right-of-use lease asset, net | 13,343 | 13,168 | |||
Income tax receivable | 2,795 | 2,095 | |||
Other assets | 29,056 | 19,855 | |||
Total assets | 2,519,137 | 2,259,879 | |||
Liabilities | |||||
Deposits | [4] | 1,813,785 | 1,607,110 | ||
Long-term debt | [5] | 178,128 | 214,320 | ||
Short-term borrowings | [6] | 67,880 | 5,000 | ||
Deferred tax liabilities, net | 26,840 | 26,753 | |||
Operating lease liabilities | 7,629 | 8,408 | |||
Accrued interest payable | 4,449 | 4,790 | |||
Accounts payable and accrued expenses | [7] | 32,662 | 22,974 | ||
Total liabilities | 2,131,373 | 1,889,355 | |||
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 - XX shares at June 30, 2023 and 28,663,827 shares at December 31, 2022 issued) | 289 | 287 | |||
Additional paid in capital | 285,435 | 283,663 | |||
Treasury stock (5,602,154 shares at June 30, 2023 and December 31, 2022) | (45,538) | (45,538) | |||
Accumulated other comprehensive income (loss) | (3,749) | (3,349) | |||
Retained earnings | 82,539 | 66,673 | |||
Total stockholders’ equity | 318,976 | 301,736 | |||
Non-controlling interest in consolidated subsidiaries | 68,788 | 68,788 | |||
Total equity | 387,764 | 370,524 | |||
Total liabilities and equity | $ 2,519,137 | $ 2,259,879 | |||
Number of shares outstanding | 23,345,017 | 23,061,673 | |||
Book value per share | $ 13.66 | $ 13.08 | |||
[1] As of June 30, 2023 and June 30, 2022 , there were no allowance for credit losses and net charge-offs related to the strategic partnership loans. Represents allowance prior to the adoption of ASU 2016-13. Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $ 6.8 million as of June 30, 2023 and $ 7.5 million as of December 31, 2022 . Includes $ 3.9 million and $ 3.8 million of deferred financing costs as of June 30, 2023 and December 31, 2022 . Refer to Note 5 for more details. Includes $ 2.9 million and $ 3.2 million of deferred financing costs as of June 30, 2023 and December 31, 2022 . Refer to Note 5 for more details. Includes $ 28.0 million of borrowings through the Federal Reserve discount window. Includes the short-term portion of lease liabilities of $ 2.2 million as of both June 30, 2023 and December 31, 2022 . Refer to Note 6 for more details. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 28,947,171 | 28,663,827 |
Treasury stock,shares | 5,602,154 | 5,602,154 |
Loan collateral in process of foreclosure, financed sales collateral to third parties | $ 6.8 | $ 7.5 |
Short term lease liabilities | 2.2 | 2.2 |
Deposits [Member] | ||
Deferred financing costs | 3.9 | 3.8 |
Long-Term Debt [Member] | ||
Deferred financing costs | 2.9 | $ 3.2 |
Federal reserve discount window [Member] | ||
Borrowings | $ 28 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Income Statement [Abstract] | |||||
Interest and fees on loans | $ 59,630 | $ 46,740 | $ 114,799 | $ 89,804 | |
Interest and dividends on investment securities | 2,096 | 371 | 2,769 | 610 | |
Total interest income | [1] | 61,726 | 47,111 | 117,568 | 90,414 |
Interest on deposits | 11,329 | 4,912 | 19,928 | 9,066 | |
Interest on long-term debt | 2,940 | 3,318 | 5,793 | 6,539 | |
Interest on short-term borrowings | 766 | 0 | 1,554 | 0 | |
Total interest expense | 15,035 | 8,230 | 27,275 | 15,605 | |
Net interest income (loss) | 46,691 | 38,881 | 90,293 | 74,809 | |
Provision for credit losses | 8,476 | 7,759 | 12,514 | 10,999 | |
Net interest income after provision for credit losses | 38,215 | 31,122 | 77,779 | 63,810 | |
Other income (loss) | |||||
Gain on sale of loans and medallion | 1,306 | 2,667 | 3,161 | 4,543 | |
Write-down of loan collateral in process of foreclosure | (21) | (128) | (273) | (514) | |
Gain on equity investments | 99 | 4,241 | 9 | 4,108 | |
Other income | 558 | 578 | 1,128 | 750 | |
Total other income, net | 1,942 | 7,358 | 4,025 | 8,887 | |
Other expenses | |||||
Salaries and employee benefits | 9,339 | 7,730 | 18,175 | 15,298 | |
Loan servicing fees | 2,361 | 2,119 | 4,583 | 4,072 | |
Collection costs | 1,608 | 999 | 3,146 | 2,342 | |
Professional fees | 1,368 | 4,392 | 3,075 | 8,384 | |
Rent expense | 603 | 490 | 1,226 | 1,135 | |
Regulatory fees | 781 | 560 | 1,463 | 1,011 | |
Amortization of intangible assets | 363 | 363 | 723 | 721 | |
Other expenses | 2,580 | 2,160 | 5,004 | 3,882 | |
Total other expenses | 19,003 | 18,813 | 37,395 | 36,845 | |
Income before income taxes | 21,154 | 19,667 | 44,409 | 35,852 | |
Income tax provision | 5,472 | 4,856 | 11,854 | 9,687 | |
Net income after taxes | 15,682 | 14,811 | 32,555 | 26,165 | |
Less: income attributable to the non-controlling interest | 1,512 | 1,511 | 3,024 | 3,024 | |
Total net income attributable to Medallion Financial Corp. | $ 14,170 | $ 13,300 | $ 29,531 | $ 23,141 | |
Basic net income per share | $ 0.63 | $ 0.55 | $ 1.32 | $ 0.95 | |
Diluted net income per share | $ 0.62 | $ 0.54 | $ 1.29 | $ 0.93 | |
Weighted average common shares outstanding | |||||
Basic | 22,488,463 | 24,153,015 | 22,416,089 | 24,459,870 | |
Diluted | 22,853,927 | 24,421,867 | 22,915,094 | 24,751,012 | |
[1] Included in interest income is $ 0.4 million and $ 0.6 million of paid-in-kind interest for the three and six months ended June 30, 2023 and $ 0.2 million and $ 0.3 million for the three and six months ended June 30, 2022 . |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Interest paid-in-kind | $ 0.4 | $ 0.2 | $ 0.6 | $ 0.3 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,682 | $ 14,811 | $ 32,555 | $ 26,165 |
Other comprehensive loss, net of tax | (906) | (1,418) | (400) | (3,135) |
Total comprehensive income | 14,776 | 13,393 | 32,155 | 23,030 |
Less comprehensive income attributable to the non-controlling interest | 1,512 | 1,511 | 3,024 | 3,024 |
Total comprehensive income attributable to Medallion Financial Corp. | $ 13,264 | $ 11,882 | $ 29,131 | $ 20,006 |
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] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Capital in Excess of Par [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Retained Earnings (Accumulated Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Noncontrolling Interest [Member] | |
Balance at Dec. 31, 2021 | $ 355,828 | $ 281 | $ 280,038 | $ (24,919) | $ 30,606 | $ 1,034 | $ 287,040 | $ 68,788 | |||||||||
Balance, shares at Dec. 31, 2021 | 28,124,629 | (2,951,243) | |||||||||||||||
Net income | 11,353 | 9,841 | 9,841 | 1,512 | |||||||||||||
Distributions to non-controlling interest | (1,512) | (1,512) | |||||||||||||||
Stock-based compensation expense | 598 | $ 4 | 594 | 598 | |||||||||||||
Issuance of restricted stock, net, shares | 383,925 | ||||||||||||||||
Forfeiture of restricted stock, net, shares | (5,730) | ||||||||||||||||
Exercise of stock options, value | 152 | 152 | 152 | ||||||||||||||
Exercise of stock options, shares | 23,192 | ||||||||||||||||
Purchase of common stock (in Shares) | (67,660) | ||||||||||||||||
Purchase of common stock | (617) | $ (617) | (617) | ||||||||||||||
Dividend paid on common stock | (2,044) | (2,044) | (2,044) | ||||||||||||||
Other comprehensive loss, net of tax | (1,717) | (1,717) | (1,717) | ||||||||||||||
Ending balance at Mar. 31, 2022 | 362,041 | $ 285 | 280,784 | $ (25,536) | 38,403 | (683) | 293,253 | 68,788 | |||||||||
Ending balance, shares at Mar. 31, 2022 | 28,526,016 | (3,018,903) | |||||||||||||||
Balance at Dec. 31, 2021 | 355,828 | $ 281 | 280,038 | $ (24,919) | 30,606 | 1,034 | 287,040 | 68,788 | |||||||||
Balance, shares at Dec. 31, 2021 | 28,124,629 | (2,951,243) | |||||||||||||||
Net income | 26,165 | ||||||||||||||||
Other comprehensive loss, net of tax | (3,135) | ||||||||||||||||
Ending balance at Jun. 30, 2022 | 362,841 | $ 285 | 281,647 | $ (35,510) | 49,732 | (2,101) | 294,053 | 68,788 | |||||||||
Ending balance, shares at Jun. 30, 2022 | 28,530,373 | (4,291,053) | |||||||||||||||
Balance at Dec. 31, 2021 | $ 355,828 | $ 281 | 280,038 | $ (24,919) | 30,606 | 1,034 | 287,040 | 68,788 | |||||||||
Balance, shares at Dec. 31, 2021 | 28,124,629 | (2,951,243) | |||||||||||||||
Exercise of stock options, shares | 23,745 | ||||||||||||||||
Net change in unrealized gains on investments, net of tax | $ (4,400) | ||||||||||||||||
Ending balance at Dec. 31, 2022 | 370,524 | $ 287 | 283,663 | $ (45,538) | 66,673 | (3,349) | 301,736 | 68,788 | $ 360,589 | $ 287 | $ 283,663 | $ (45,538) | $ 56,738 | $ (3,349) | $ 291,801 | $ 68,788 | |
Ending balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 | $ (9,935) | (9,935) | (9,935) | ||||||||||||||
Ending balance, shares at Dec. 31, 2022 | 23,061,673 | 28,663,827 | (5,602,154) | 28,663,827 | (5,602,154) | ||||||||||||
Balance at Mar. 31, 2022 | $ 362,041 | $ 285 | 280,784 | $ (25,536) | 38,403 | (683) | 293,253 | 68,788 | |||||||||
Balance, shares at Mar. 31, 2022 | 28,526,016 | (3,018,903) | |||||||||||||||
Net income | 14,811 | 13,300 | 13,300 | 1,511 | |||||||||||||
Distributions to non-controlling interest | (1,511) | (1,511) | |||||||||||||||
Stock-based compensation expense | 863 | 863 | 863 | ||||||||||||||
Forfeiture of restricted stock, net, shares | 587 | ||||||||||||||||
Issuance in connection with vesting of restricted stock units | 4,944 | ||||||||||||||||
Purchase of common stock (in Shares) | 1,272,150 | ||||||||||||||||
Purchase of common stock | (9,974) | $ 9,974 | (9,974) | ||||||||||||||
Dividend paid on common stock | (1,971) | 1,971 | (1,971) | ||||||||||||||
Other comprehensive loss, net of tax | (1,418) | (1,418) | (1,418) | ||||||||||||||
Ending balance at Jun. 30, 2022 | 362,841 | $ 285 | 281,647 | $ (35,510) | 49,732 | (2,101) | 294,053 | 68,788 | |||||||||
Ending balance, shares at Jun. 30, 2022 | 28,530,373 | (4,291,053) | |||||||||||||||
Balance at Dec. 31, 2022 | $ 370,524 | $ 287 | 283,663 | $ (45,538) | 66,673 | (3,349) | 301,736 | 68,788 | 360,589 | $ 287 | 283,663 | $ (45,538) | 56,738 | (3,349) | 291,801 | 68,788 | |
Balance, shares at Dec. 31, 2022 | 23,061,673 | 28,663,827 | (5,602,154) | 28,663,827 | (5,602,154) | ||||||||||||
Net income | $ 16,873 | 15,361 | 15,361 | 1,512 | |||||||||||||
Distributions to non-controlling interest | (1,512) | (1,512) | |||||||||||||||
Stock-based compensation expense | 1,036 | $ 2 | 1,034 | 1,036 | |||||||||||||
Issuance of restricted stock, net, shares | 304,749 | ||||||||||||||||
Withheld restricted stock for employees' tax obligations, shares | (91,169) | ||||||||||||||||
Withheld restricted stock for employees' tax obligations, value | (768) | (768) | (768) | ||||||||||||||
Forfeiture of restricted stock, net, shares | (9,843) | ||||||||||||||||
Exercise of stock options, value | $ 292 | 292 | 292 | ||||||||||||||
Exercise of stock options, shares | 44,583 | [1] | 44,583 | ||||||||||||||
Dividend paid on common stock | $ (1,863) | (1,863) | (1,863) | ||||||||||||||
Net change in unrealized gains on investments, net of tax | 506 | 506 | 506 | ||||||||||||||
Ending balance at Mar. 31, 2023 | 375,153 | $ 289 | 284,221 | $ (45,538) | 70,236 | (2,843) | 306,365 | 68,788 | |||||||||
Ending balance, shares at Mar. 31, 2023 | 28,912,147 | (5,602,154) | |||||||||||||||
Balance at Dec. 31, 2022 | 370,524 | $ 287 | 283,663 | $ (45,538) | 66,673 | (3,349) | 301,736 | 68,788 | $ 360,589 | $ 287 | $ 283,663 | $ (45,538) | $ 56,738 | $ (3,349) | $ 291,801 | $ 68,788 | |
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 | $ (9,935) | (9,935) | (9,935) | ||||||||||||||
Balance, shares at Dec. 31, 2022 | 23,061,673 | 28,663,827 | (5,602,154) | 28,663,827 | (5,602,154) | ||||||||||||
Net income | $ 32,555 | ||||||||||||||||
Other comprehensive loss, net of tax | (400) | ||||||||||||||||
Net change in unrealized gains on investments, net of tax | 400 | ||||||||||||||||
Ending balance at Jun. 30, 2023 | $ 387,764 | $ 289 | 285,435 | $ (45,538) | 82,539 | (3,749) | 318,976 | 68,788 | |||||||||
Ending balance, shares at Jun. 30, 2023 | 23,345,017 | 28,947,171 | (5,602,154) | ||||||||||||||
Balance at Mar. 31, 2023 | $ 375,153 | $ 289 | 284,221 | $ (45,538) | 70,236 | (2,843) | 306,365 | 68,788 | |||||||||
Balance, shares at Mar. 31, 2023 | 28,912,147 | (5,602,154) | |||||||||||||||
Net income | 15,682 | 14,170 | 14,170 | 1,512 | |||||||||||||
Distributions to non-controlling interest | (1,512) | (1,512) | |||||||||||||||
Stock-based compensation expense | $ 1,214 | $ 0 | 1,214 | 1,214 | |||||||||||||
Issuance of restricted stock, net, shares | 11,734 | ||||||||||||||||
Forfeiture of restricted stock, net, shares | (204) | ||||||||||||||||
Issuance in connection with vesting of restricted stock units | 23,211 | ||||||||||||||||
Exercise of stock options, shares | 283 | [1] | 283 | ||||||||||||||
Dividend paid on common stock | $ (1,867) | (1,867) | (1,867) | ||||||||||||||
Other comprehensive loss, net of tax | (906) | (906) | (906) | ||||||||||||||
Net change in unrealized gains on investments, net of tax | 900 | ||||||||||||||||
Ending balance at Jun. 30, 2023 | $ 387,764 | $ 289 | $ 285,435 | $ (45,538) | $ 82,539 | $ (3,749) | $ 318,976 | $ 68,788 | |||||||||
Ending balance, shares at Jun. 30, 2023 | 23,345,017 | 28,947,171 | (5,602,154) | ||||||||||||||
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $ 0.1 million for the three and six months ended June 30, 2023 and was $ 0.1 million for the year ended December 31, 2022 . |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends payable, amount per share | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 32,555 | $ 26,165 | |
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities: | |||
Provision for credit losses | 12,514 | 10,999 | |
Paid-in-kind interest income | (644) | (347) | |
Depreciation and amortization | 2,538 | 2,844 | |
Amortization of origination fees, net | 4,667 | 4,670 | |
Increase in deferred and other tax liabilities, net | 3,164 | 5,309 | |
Net change in value of loan collateral in process of foreclosure | 4,362 | 2,487 | |
Net realized loss (gains) on sale of investments | 99 | (4,108) | |
Stock-based compensation expense | 2,250 | 1,461 | |
Increase in accrued interest receivable | (732) | (913) | |
Increase in other assets | (10,989) | (5,470) | |
Increase in accounts payable and accrued expenses | 8,841 | 8,186 | |
(Decrease) increase in accrued interest payable | (341) | 153 | |
Net cash provided by operating activities | 58,284 | 51,436 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Loans originated | (583,669) | (528,139) | |
Proceeds from principal receipts, sales, and maturities of loans | 313,847 | 270,009 | |
Purchases of investments | (8,224) | (15,809) | |
Proceeds from principal receipts, sales, and maturities of investments | 1,400 | 9,937 | |
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 11,308 | 13,766 | |
Net cash used for investing activities | (265,338) | (250,236) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from time deposits and funds borrowed | 513,795 | 506,158 | |
Repayments of time deposits and funds borrowed | (280,622) | (288,154) | |
Cash dividend paid on common stock | (3,663) | (3,896) | |
Distributions to non-controlling interests | (3,024) | (3,023) | |
Payment of withholding taxes on net settlement of vested stock | (768) | 0 | |
Treasury stock repurchased | 0 | (10,591) | |
Proceeds from the exercise of stock options | 292 | 152 | |
Net cash provided by financing activities | 226,010 | 200,646 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 18,956 | 1,846 | |
Cash, and cash equivalents beginning of period | [1] | 105,598 | 124,484 |
Cash and cash equivalents, end of period (1) | [1] | 124,554 | 126,330 |
SUPPLEMENTAL INFORMATION | |||
Cash paid during the period for interest | 25,999 | 14,123 | |
Cash paid during the period for income taxes | 8,662 | 3,175 | |
NON-CASH INVESTING | |||
Loans transferred to loan collateral in process of foreclosure, net | $ 10,654 | $ 5,797 | |
[1] Includes federal funds sold. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 6 Months Ended |
Jun. 30, 2023 | |
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 roofs, swimming pools, and windows. Prior to 2015, 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. 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 historically originated and serviced 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 June 30, 2023 , 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 U.S., 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 through 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 June 30, 2023, cash includes $ 1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 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 12 and 13 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 $ 11.4 million and $ 10.3 million at June 30, 2023 and December 31, 2022, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of June 30, 2023, a cumulative impairment of $ 2.5 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 both June 30, 2023 and December 31, 2022, the fair value of these securities were $ 1.7 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. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net losses recognized during the period on equity securities $ ( 28 ) $ ( 63 ) $ — $ ( 154 ) Less: Net gains (losses) recognized during the period on equity — — — — Unrealized losses recognized during the reporting period on $ ( 28 ) $ ( 63 ) $ — $ ( 154 ) 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 at both June 30, 2023 and December 31, 2022 , and less than $ 0.1 million was amortized to interest income for each of the three and six months ended June 30, 2023 and 2022. ASC 320 further requires that held-to-maturity securities be re ported 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable. 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 are 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. At June 30, 2023 and December 31, 2022 , net loan origination costs were $ 40.4 million and $ 34.9 million. Net amortization to income for the three and six months ended June 30, 2023 was $ 2.4 million and $ 4.3 million and was $ 2.4 million and $ 4.5 million for the three and six months ended June 30, 2022. 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. Consumer loans are placed on nonaccrual when they become 90 days past due 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 $ 6.2 million at June 30, 2023, or 0.29 % of the total loan portfolio, compared to $ 8.9 million , or 0.47 % , at December 31, 2022 . Beginning in the first quarter of 2023, the Company began charging off recreation loans at the point when borrowers filed for bankruptcy. This change resulted in approximately $ 2.5 million of loans being charged off in the six months ended June 30, 2023. The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. 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 interest 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. Modified loans are considered impaired loans. 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 $ 15.6 million and $ 19.5 million at June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022 . Allowance for Credit Losses On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquency and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $ 13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $ 9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table: (Dollars in thousands) December 31, 2022 Effect of ASC 326 January 1, 2023 Assets: Loans: Recreation $ 41,966 $ 10,037 $ 52,003 Home improvement 11,340 1,518 12,858 Commercial 1,049 2,157 3,206 Medallion 9,490 — 9,490 Strategic partnership — — — Allowance for credit losses on loans $ 63,845 $ 13,712 $ 77,557 Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available. 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 June 30, 2023 and December 31, 2022, the Company had goodwill of $ 150.8 million , all of which related to the Bank. As of June 30, 2023 and December 31, 2022, the Company had intangible assets of $ 21.3 million and $ 22.0 million . Amortization expense on the intangible assets for the three and six months ended June 30, 2023 and 2022 was $ 0.4 million and $ 0.7 million. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022 , concluding that there was no impairment of these assets. The following table details the intangible assets as of the dates presented: (Dollars in thousands) June 30, 2023 December 31, 2022 Brand-related intellectual property $ 16,227 $ 16,775 Home improvement contractor relationships 5,088 5,260 Total intangible assets $ 21,315 $ 22,035 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 $ 0.1 million for the three and six months ended June 30, 2023 and 2022 . 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 $ 0.8 million and $ 1.5 million for the three and six months ended June 30, 2023 and was $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2022. 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 $ 6.8 million and $ 7.0 million as of June 30, 2023 and December 31, 2022 . 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 Per Share (EPS) Basic earnings per share are computed by dividing net income 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 considering the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2023 2022 2023 2022 Net income available to common stockholders $ 14,170 $ 13,300 $ 29,531 $ 23,141 Weighted average common shares outstanding applicable 22,488,463 24,153,015 22,416,089 24,459,870 Effect of restricted stock grants 276,420 184,620 379,924 204,273 Effect of dilutive stock options 43,567 84,232 96,342 86,869 Effect of performance share units 45,477 — 22,739 — Adjusted weighted average common shares outstanding 22,853,927 24,421,867 22,915,094 24,751,012 Basic net income per share $ 0.63 $ 0.55 $ 1.32 $ 0.95 Diluted net income per share 0.62 0.54 1.29 0.93 Potentially dilutive common shares excluded from the above calculations aggregated 644,478 and 832,895 shares as of June 30, 2023 and 2022 . 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 six months ended June 30, 2023 and 2022 , the Company issued 316,483 and 383,925 restricted shares of stock-based compensation awards, 296,444 and 0 performance stock units and no restricted stock units or shares of other stock-based compensation awards. The Company recognized $ 1.2 million and $ 2.2 million , or $ 0.05 and $ 0.10 per share, for the three and six months ended June 30, 2023 , and $ 0.9 million and $ 1.5 million, or $ 0.04 and $ 0.06 per diluted common share, for the three and six months ended June 30, 2022, of non-cash stock-based compensation expense related to the grants. As of June 30, 2023 , the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $ 5.9 million, which is expected to be recognized over the next 11 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 belo w). 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 credit losses be maintained. As of June 30, 2023, the Bank’s Tier 1 leverage ratio was 16.0 % . The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well-Capitalized June 30, 2023 December 31, 2022 Common equity tier 1 capital $ 267,700 $ 242,049 Tier 1 capital 336,488 310,837 Total capital 363,589 334,913 Average assets 2,099,762 1,917,904 Risk-weighted assets 2,123,720 1,888,530 Leverage ratio (1) 4.0 % 5.0 % 16.0 % 16.2 % Common equity tier 1 capital ratio (2) 7.0 6.5 12.6 12.8 Tier 1 capital ratio (3) 8.5 8.0 15.8 16.5 Total capital ratio (3) 10.5 10.0 17.1 17.7 (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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $ 6.2 million and increased the Tier 1 capital ratio by 27 basis points. In the table above, the minimum risk-based ratios as of June 30, 2023 and December 31, 2022 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 June 30, 2023 and December 31, 2022 . Recently Issued and Adopted Accounting Standards On January 1, 2023, the Company adopted ASC 326. Please refer to Allowance for Credit Losses, within this footnote, for the impact of adopting this standard. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures, or Topic 323: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The main objective of this new standard is to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. The Company is assessing the impact of the update 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 | 6 Months Ended |
Jun. 30, 2023 | |
Schedule of Investments [Abstract] | |
Investment Securities | (3) INVESTMENT SECURITIES The following tables present details of fixed maturity securities available for sale as of June 30, 2023 and December 31, 2022: June 30, 2023 (Dollars in thousands) Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of U.S. federal agencies $ 46,195 $ — $ ( 5,187 ) $ 41,008 State and municipalities 13,862 — ( 1,178 ) 12,684 Total $ 60,057 $ — $ ( 6,365 ) $ 53,692 December 31, 2022 Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of U.S. 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 The amortized cost and estimated market value of investment securities at June 30, 2023 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. June 30, 2023 (Dollars in thousands) Amortized Fair Due in one year or less $ — $ — Due after one year through five years 9,478 9,035 Due after five years through ten years 9,417 8,240 Due after ten years 41,162 36,417 Total $ 60,057 $ 53,692 The following tables show information pertaining to securities with gross unrealized losses at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position. Less than Twelve Months Twelve Months and Over June 30, 2023 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of U.S. federal agencies $ ( 90 ) $ 6,057 $ ( 5,097 ) $ 34,951 State and municipalities ( 87 ) 4,957 ( 1,091 ) 7,723 Total $ ( 177 ) $ 11,014 $ ( 6,188 ) $ 42,674 Less than Twelve Months Twelve Months and Over December 31, 2022 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of U.S. 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 As of June 30, 2023 and December 31, 2022 , the Company had 62 and 57 securities with unrealized losses that have not been recognized in income. The investments are mortgage-backed securities and similar instruments with lower risk characteristics. The decline in value was due to the rapid increase in market rates during 2022 and 2023, not the underlying asset credit performance. The Company regularly reviews investment securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period. We presently do not intend to sell our investment securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Loans and Allowance for Credit Losses | (4) LOANS AND ALLOWANCE FOR CREDIT LOSSES The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (Dollars in thousands) Amount As a Amount As a Recreation $ 1,331,114 62 % $ 1,183,512 62 % Home improvement 728,468 34 626,399 33 Commercial 92,637 4 92,899 5 Medallion 3,448 * 13,571 1 Strategic partnership 1,331 * 572 * Total gross loans 2,156,998 100 % 1,916,953 100 % Allowance for credit losses ( 74,971 ) ( 63,845 ) Total net loans $ 2,082,027 $ 1,853,108 (*) Less than 1%. The following tables show the activity of the gross loans for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, 2023 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – March 31, 2023 $ 1,213,380 $ 669,642 $ 95,329 $ 4,059 $ 1,770 $ 1,984,180 Loan originations 190,007 117,035 4,750 1,300 33,174 346,266 Principal payments, sales, maturities, and recoveries ( 63,463 ) ( 55,350 ) ( 6,922 ) ( 1,531 ) ( 33,613 ) ( 160,879 ) Charge-offs ( 9,166 ) ( 2,575 ) ( 900 ) ( 221 ) — ( 12,862 ) Transfer to loan collateral in process of foreclosure, net ( 3,991 ) — — ( 159 ) — ( 4,150 ) Amortization of origination costs ( 3,159 ) 665 — — — ( 2,494 ) FASB origination costs, net 7,506 ( 949 ) — — — 6,557 Paid-in-kind interest — — 380 — — 380 Gross loans – June 30, 2023 $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Six Months Ended June 30, 2023 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – December 31, 2022 $ 1,183,512 $ 626,399 $ 92,899 $ 13,571 $ 572 $ 1,916,953 Loan originations 291,688 212,016 7,750 1,923 60,180 573,557 Principal payments, sales, maturities, and recoveries ( 119,680 ) ( 105,205 ) ( 7,756 ) ( 5,926 ) ( 59,421 ) ( 297,988 ) Charge-offs ( 21,756 ) ( 4,489 ) ( 900 ) ( 3,814 ) — ( 30,959 ) Transfer to loan collateral in process of foreclosure, net ( 8,348 ) — — ( 2,306 ) — ( 10,654 ) Amortization of origination costs ( 5,918 ) 1,251 — — — ( 4,667 ) FASB origination costs, net 11,616 ( 1,504 ) — — — 10,112 Paid-in-kind interest — — 644 — — 644 Gross loans – June 30, 2023 $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Three Months Ended June 30, 2022 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – March 31, 2022 $ 1,004,091 $ 473,408 $ 77,867 $ 13,849 $ 226 $ 1,569,441 Loan originations 170,207 105,172 19,272 472 9,830 304,953 Principal payments, sales, maturities, and recoveries ( 73,114 ) ( 51,006 ) ( 386 ) ( 30 ) ( 9,463 ) ( 133,999 ) Charge-offs ( 5,074 ) ( 1,108 ) — — — ( 6,182 ) Transfer to loan collateral in process of foreclosure, net ( 2,618 ) — — ( 139 ) — ( 2,757 ) Amortization of origination costs ( 2,931 ) 380 — — — ( 2,551 ) Amortization of loan premium ( 60 ) ( 90 ) — — — ( 150 ) FASB origination costs, net 6,169 ( 478 ) — — — 5,691 Paid-in-kind interest — — 175 — — 175 Gross loans – June 30, 2022 $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 Six Months Ended June 30, 2022 (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 284,613 194,992 23,672 564 14,839 518,680 Principal payments, sales, maturities, and recoveries ( 138,230 ) ( 103,170 ) ( 2,203 ) ( 115 ) ( 14,336 ) ( 258,054 ) Charge-offs ( 10,141 ) ( 2,168 ) ( 1,584 ) ( 75 ) — ( 13,968 ) Transfer to loan collateral in process of foreclosure, net ( 5,529 ) — — ( 268 ) — ( 5,797 ) Amortization of origination costs ( 5,370 ) 700 — — — ( 4,670 ) Amortization of loan premium ( 120 ) ( 180 ) — — — ( 300 ) FASB origination costs, net 10,127 ( 668 ) — — — 9,459 Paid-in-kind interest — — 347 — — 347 Gross loans – June 30, 2022 $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Allowance for credit losses – beginning balance (1) $ 70,280 $ 50,686 $ 63,845 $ 50,166 CECL transition amount upon ASU 2016-13 adoption — — 13,712 — Charge-offs Recreation ( 9,166 ) ( 5,074 ) ( 21,756 ) ( 10,141 ) Home improvement ( 2,575 ) ( 1,108 ) ( 4,489 ) ( 2,168 ) Commercial ( 900 ) — ( 900 ) ( 1,584 ) Medallion ( 221 ) — ( 3,814 ) ( 75 ) Total charge-offs ( 12,862 ) ( 6,182 ) ( 30,959 ) ( 13,968 ) Recoveries Recreation 3,282 3,615 6,053 7,125 Home improvement 627 585 1,259 1,144 Commercial — 13 10 47 Medallion 5,168 2,676 8,537 3,639 Total recoveries 9,077 6,889 15,859 11,955 Net recoveries (charge-offs) (2) ( 3,785 ) 707 ( 15,100 ) ( 2,013 ) Provision (benefit) for credit losses 8,476 7,759 12,514 10,999 Allowance for credit losses – ending balance (3) $ 74,971 $ 59,152 $ 74,971 $ 59,152 (1) Represents allowance prior to the adoption of ASU 2016-13. (2) As of June 30, 2023 , cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 231.4 million, some of which may represent collection opportunities for the Company. (3) As of June 30, 2023 and June 30, 2022 , there were no allowance for credit losses and net charge-offs related to the strategic partnership loans. With the adoption of ASC 326, the Company also adopted ASU 2022-02, Financial Instruments – Credit Losses, or Topic 326: Troubled Debt Restructurings and Vintage Disclosures. Under this standard, the Company is required to disclose current period gross write-offs, by year of origination, for financing receivables. The following table sets forth the gross charge-offs for the three months ended June 30, 2023, by the year of origination: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Recreation $ 44 $ 3,568 $ 2,344 $ 785 $ 918 $ 1,507 $ 9,166 Home improvement 39 1,548 473 158 91 266 2,575 Commercial — — — — 900 — 900 Medallion — — — — — 221 221 Total $ 83 $ 5,116 $ 2,817 $ 943 $ 1,909 $ 1,994 $ 12,862 The following table sets forth the gross charge-offs for the six months ended June 30, 2023, by the year of origination: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Recreation $ 44 $ 7,176 $ 5,414 $ 2,456 $ 2,472 $ 4,194 $ 21,756 Home improvement 39 2,452 1,101 301 222 374 4,489 Commercial — — — — 900 — 900 Medallion — — — — — 3,814 3,814 Total $ 83 $ 9,628 $ 6,515 $ 2,757 $ 3,594 $ 8,382 $ 30,959 The following tables set forth the allowance for credit losses by type as of June 30, 2023 and December 31, 2022. June 30, 2023 (Dollars in thousands) Amount Percentage Allowance as Allowance as Recreation $ 54,187 72 % 4.07 % 335.63 % Home improvement 16,447 22 2.26 101.87 Commercial 2,518 3 2.72 15.60 Medallion 1,819 3 52.76 11.27 Total $ 74,971 100 % 3.48 % 464.36 % 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 % The following table presents total nonaccrual loans and foregone interest. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. (Dollars in thousands) June 30, 2023 December 31, 2022 Total nonaccrual loans $ 16,145 $ 32,133 Interest foregone quarter to date 237 231 Amount of foregone interest applied to principal in the quarter 63 94 Interest foregone year to date 507 1,267 Amount of foregone interest applied to principal for the year 133 375 Interest foregone life-to-date 1,655 2,419 Amount of foregone interest applied to principal life-to-date 789 1,204 Percentage of nonaccrual loans to gross loan portfolio 0.7 % 1.7 % Percentage of allowance for credit losses to nonaccrual loans 464.4 % 198.7 % The following tables present the performance status of loans as of June 30, 2023 and December 31, 2022. June 30, 2023 (Dollars in thousands) Performing Nonperforming Total Percentage of Recreation $ 1,325,745 $ 5,369 $ 1,331,114 0.40 % Home improvement 727,332 1,136 728,468 0.16 Commercial 86,445 6,192 92,637 6.68 Medallion — 3,448 3,448 100.00 Strategic partnership 1,331 — 1,331 — Total $ 2,140,853 $ 16,145 $ 2,156,998 0.75 % 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 % 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 June 30, 2023 and December 31, 2022, all of which had an allowance recorded against the principal balance. June 30, 2023 December 31, 2022 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related With an allowance recorded Recreation $ 5,369 $ 5,369 $ 219 $ 9,666 $ 9,666 $ 343 Home improvement 1,136 1,136 26 579 579 10 Commercial 6,192 6,301 472 8,734 8,823 963 Medallion 3,448 4,128 1,819 13,571 14,686 9,490 Total nonperforming loans with an allowance $ 16,145 $ 16,934 $ 2,536 $ 32,550 $ 33,754 $ 10,806 Three Months Ended June 30, 2023 2022 (Dollars in thousands) Average Interest Income Average Interest Income With an allowance recorded Recreation $ 5,230 $ 7 $ 5,197 $ 119 Home improvement 1,138 1 396 — Commercial 5,652 — 13,577 — Medallion 4,686 — 16,095 — Total nonperforming loans with an allowance $ 16,706 $ 8 $ 35,265 $ 119 Six Months Ended June 30, 2023 2022 (Dollars in thousands) Average Interest Income Average Interest Income With an allowance recorded Recreation $ 5,208 $ 9 $ 5,265 $ 223 Home improvement 1,129 1 388 — Commercial 5,644 — 13,561 — Medallion 4,908 — 16,798 — Total nonperforming loans with an allowance $ 16,889 $ 10 $ 36,012 $ 223 The following tables show the aging of all loans as of June 30, 2023 and December 31, 2022. June 30, 2023 Days Past Due Recorded (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Accruing Recreation $ 28,438 $ 9,464 $ 4,978 $ 42,880 $ 1,245,120 $ 1,288,000 $ — Home improvement 2,505 1,657 1,138 5,300 725,899 731,199 — Commercial — — 74 74 93,894 93,968 — Medallion — — — — 3,448 3,448 — Strategic partnership — — — — 1,331 1,331 — Total $ 30,943 $ 11,121 $ 6,190 $ 48,254 $ 2,069,692 $ 2,117,946 $ — (1) Excludes $ 40.4 million of capitalized loan origination costs. 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. The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 196 % and 339 % as of June 30, 2023 and December 31, 2022. Under ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures," concurrent with the elimination of troubled debt restructuring, or TDR, disclosures, the Company must disclose loans to borrowers experiencing financial difficulty that were modified during the reporting period. The Company did not have any such loan modifications on January 1, 2023 or during the six months ended June 30, 2023. The following table shows the TDRs that the Company entered into during the three and six months ended June 30, 2022. (Dollars in thousands) Number of Loans Pre- Post- Three months ended June 30, 2022 Recreation loans 12 $ 147 $ 147 Medallion loans — — — Six months ended June 30, 2022 Recreation loans 22 $ 276 $ 276 Medallion loans 2 252 252 As of June 30, 2022, no medallion or commercial loans modified as TDRs in the previous 12 months were in default. As of June 30, 2022, 20 recreation loans modified as TDRs were in default and had an investment value of $ 0.2 million. The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, 2023 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2023 $ 1,461 $ 19,006 $ 20,467 Transfer from loans, net 3,991 159 4,150 Sales ( 2,583 ) ( 553 ) ( 3,136 ) Cash payments received ( 128 ) ( 2,517 ) ( 2,645 ) Collateral valuation adjustments ( 2,012 ) ( 21 ) ( 2,033 ) Loan collateral in process of foreclosure – June 30, 2023 $ 729 $ 16,074 $ 16,803 Six Months Ended June 30, 2023 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2022 $ 1,376 $ 20,443 $ 21,819 Transfer from loans, net 8,348 2,306 10,654 Sales ( 4,778 ) ( 568 ) ( 5,346 ) Cash payments received ( 128 ) ( 5,834 ) ( 5,962 ) Collateral valuation adjustments ( 4,089 ) ( 273 ) ( 4,362 ) Loan collateral in process of foreclosure – June 30, 2023 $ 729 $ 16,074 $ 16,803 Three Months Ended June 30, 2022 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2022 $ 1,369 $ 32,465 $ 33,834 Transfer from loans, net 2,618 139 2,757 Sales ( 2,146 ) ( 1,999 ) ( 4,145 ) Cash payments received — ( 4,381 ) ( 4,381 ) Collateral valuation adjustments ( 963 ) ( 128 ) ( 1,091 ) Loan collateral in process of foreclosure – June 30, 2022 $ 878 $ 26,096 $ 26,974 Six Months Ended June 30, 2022 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2021 $ 1,720 $ 35,710 $ 37,430 Transfer from loans, net 5,529 268 5,797 Sales ( 4,398 ) ( 2,115 ) ( 6,513 ) Cash payments received — ( 7,253 ) ( 7,253 ) Collateral valuation adjustments ( 1,973 ) ( 514 ) ( 2,487 ) Loan collateral in process of foreclosure – June 30, 2022 $ 878 $ 26,096 $ 26,974 As of June 30, 2023 , medallion loans in the process of foreclosure included 435 medallions in the New York City market, 251 medallions in the Chicago market, 46 medallions in the Newark market, and 34 medallions in other markets. |
Funds Borrowed
Funds Borrowed | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (5) FUNDS BORROWED The following table presents outstanding balances of funds borrowed. Payments Due for the Twelve Months Ending June 30, (Dollars in thousands) 2024 2025 2026 2027 2028 Thereafter June 30, 2023 (1) December 31, 2022 (1) Interest (2) Deposits (3) $ 678,737 $ 563,203 $ 281,895 $ 198,331 $ 93,777 $ — $ 1,815,943 $ 1,609,672 2.70 % Federal reserve discount window 28,000 — — — — — 28,000 — 5.25 Privately placed notes 36,000 — 31,250 — 53,750 — 121,000 121,000 7.66 SBA debentures and borrowings 3,880 12,500 15,500 4,500 — 30,500 66,880 68,512 3.13 Preferred securities — — — — — 33,000 33,000 33,000 7.62 Total $ 746,617 $ 575,703 $ 328,645 $ 202,831 $ 147,527 $ 63,500 $ 2,064,823 $ 1,832,184 3.12 % (1) Excludes deferred financing costs of $ 6.8 million and $ 7.0 million as of June 30, 2023 and December 31, 2022 . (2) Weighted average contractual rate as of June 30, 2023 . (3) Balance excludes $ 1.5 million and $ 1.3 million of strategic partner reserve deposits as of June 30, 2023 and December 31, 2022 . (A) DEPOSITS Most 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. In October 2020, the Bank began to originate time deposits through internet listing services. These deposits are from other financial institutions and, as of June 30, 2023 and December 31, 2022, the Bank had $ 12.3 million and $ 12.4 million in listing service deposit balances. In April 2023, the Bank began to originate retail savings deposits through a third-party service provider and, as of June 30, 2023 , the Bank had $ 23.9 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2023. (Dollars in thousands) June 30, 2023 Three months or less $ 162,219 Over three months through six months 186,757 Over six months through one year 329,761 Over one year 1,138,754 Total deposits $ 1,817,491 (B) FEDERAL RESERVE DISCOUNT WINDOW In March 2023, the Bank established a discount window line of credit at the Federal Reserve. As of June 30, 2023, the Bank had $ 38.9 million in investment securities pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is 100 % of fair value, for a total of $ 38.7 million in secured borrowing capacity, of which $ 28.0 million was utilized as of June 30, 2023. (C) 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 March 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. (D) SBA DEBENTURES AND BORROWINGS Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four-and-a-half year term and a 1 % fee, which 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 June 30, 2023, $ 66.9 million was outstanding, including $ 1.4 million under the SBA Note. (E) 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. Prior to the cessation of LIBOR on June 30, 2023, the notes bore a variable rate of interest of 90-day LIBOR plus 2.13 %. With the cessation of LIBOR, interest is calculated using the Secured Overnight Financing Rate (SOFR) adjusted by a relevant spread adjustment of approximately 26 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 June 30, 2023, $ 33.0 million was outstanding on the preferred securities. (F) 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 June 30, 2023 , the Company did not have any borrowing agreements that contained any such restrictions. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
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 three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Operating lease costs $ 597 $ 590 $ 1,195 $ 1,179 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 603 435 1,226 1,080 Right-of-use asset obtained in exchange for lease liability ( 56 ) ( 40 ) ( 111 ) ( 85 ) The following table presents the breakout of the operating leases as of June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Operating lease right-of-use assets $ 9,001 $ 9,723 Other current liabilities 2,188 2,239 Operating lease liabilities 7,629 8,408 Total operating lease liabilities 9,817 10,647 Weighted average remaining lease term 5.1 years 5.5 years Weighted average discount rate 5.59 % 5.66 % At June 30, 2023, maturities of the lease liabilities were as follows: (Dollars in thousands) Remainder of 2023 $ 1,250 2024 2,508 2025 2,492 2026 2,440 2027 1,212 Thereafter 1,290 Total lease payments 11,192 Less imputed interest 1,375 Total operating lease liabilities $ 9,817 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Goodwill and other intangibles $ ( 43,215 ) $ ( 43,397 ) Provision for credit losses 10,913 9,945 Net operating loss carryforwards (1) 3,730 3,730 Accrued expenses, compensation, and other assets 3,601 3,819 Unrealized gains on other investments 426 1,445 Total deferred tax liability ( 24,545 ) ( 24,458 ) Valuation allowance ( 2,295 ) ( 2,295 ) Deferred tax liability, net $ ( 26,840 ) $ ( 26,753 ) (1) As of June 30, 2023 , 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 as of June 30, 2023 . The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2023 and 2022 as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Current Federal $ 3,873 $ 984 $ 6,456 $ 1,488 State 1,175 447 1,964 769 Deferred Federal 204 2,378 2,450 5,598 State 220 1,047 984 1,832 Net provision for income taxes $ 5,472 $ 4,856 $ 11,854 $ 9,687 The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Statutory Federal income tax provision at 21 % $ 4,442 $ 4,130 $ 9,326 $ 7,529 State and local income taxes, net of federal income tax 869 808 1,824 1,473 Non-deductible expenses 19 362 1,076 1,075 Other 142 ( 444 ) ( 372 ) ( 390 ) Total income tax provision $ 5,472 $ 4,856 $ 11,854 $ 9,687 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 June 30, 2023. 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 | 6 Months Ended |
Jun. 30, 2023 | |
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 2,408,252 remained issuable as of June 30, 2023. 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 vested 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 vested annually, as defined in the Amended Director Plan. The term of the options could not exceed ten year s. Additional shares are only available for future issuance under the 2018 Plan. At June 30, 2023 , 983,986 options on the Company’s common stock were outstanding under the Company’s plans, of which 721,726 options were vested. Additionally, as of June 30, 2023 , there were 917,734 unvested restricted shares, 296,444 performance share units, no unvested restricted stock units, and 157,447 vested restricted stock units under the 2018 Plan. The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during the six months ended June 30, 2023 and 2022. The following assumption categories are used to determine the value of any option grants. During 2023, the Company’s Compensation Committee of the Board of Directors began granting performance stock units, or PSUs, to certain officers and employees of the Company. Granted PSUs are subject to specified performance criteria for a particular performance period. The number of PSUs that vest can range from zero to 200 % of the grant amount. In addition, dividends that accrue during the vesting period are reinvested in dividend equivalent PSUs. PSUs and the related dividend equivalent PSUs are converted into shares of common stock after vesting. Once the PSUs and dividend equivalent PSUs have vested, shares of common stock are delivered. The following table presents the activity for the stock option programs for the 2023 first and second quarters and the 2022 full year. Number of Exercise Weighted Outstanding at December 31, 2021 1,111,687 $ 2.14 - 12.55 $ 6.41 Granted — — — Cancelled ( 26,093 ) 4.89 - 12.55 7.08 Exercised ( 23,745 ) 4.89 - 7.25 6.51 Outstanding at December 31, 2022 1,061,849 $ 2.14 - 9.38 $ 6.51 Granted — — — Cancelled ( 25,194 ) 4.89 - 9.38 6.97 Exercised (1) ( 44,583 ) 4.89 - 7.25 6.55 Outstanding at March 31, 2023 992,072 $ 2.14 - 9.38 $ 6.53 Granted — — — Cancelled ( 7,803 ) 4.89 - 7.25 6.31 Exercised (1) ( 283 ) 4.89 4.89 Outstanding at June 30, 2023 (2) 983,986 $ 2.14 - 9.38 $ 6.50 Options vested at: December 31, 2022 548,426 $ 2.14 - 9.38 $ 6.51 June 30, 2023 721,726 $ 2.14 - 9.38 $ 6.50 (1) The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $ 0.1 million for the three and six months ended June 30, 2023 and was $ 0.1 million for the year ended December 31, 2022 . (2) The aggregate intrinsic value of outstanding options , which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $ 1.4 million for outstanding options and $ 1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023 . The following table presents the activity for the unvested options outstanding under the plans described above for the 2023 first and second quarter. Number of Exercise Price Weighted Outstanding at December 31, 2022 513,423 $ 4.89 - 7.25 $ 6.52 Granted — — — Cancelled ( 2,951 ) 4.89 - 7.25 5.53 Vested ( 248,212 ) 4.89 - 7.25 6.55 Outstanding at March 31, 2023 262,260 $ 4.89 - 7.25 $ 6.49 Granted — — — Cancelled — — — Vested — — — Outstanding at June 30, 2023 262,260 $ 4.89 - 7.25 $ 6.49 The intrinsic value of the options vested was $ 0.4 million for the three and six months ended June 30, 2023. The following table presents the activity for the restricted stock programs for the 2023 first and second quarter and the 2022 full year. Number of Grant Weighted Outstanding at December 31, 2021 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 857,288 $ 4.89 - 7.25 $ 7.27 Granted 304,749 8.08 8.08 Cancelled ( 9,843 ) 4.89 - 8.40 7.18 Vested ( 245,990 ) 4.89 - 7.68 7.12 Outstanding at March 31, 2023 906,204 $ 4.89 - 8.40 $ 7.58 Granted 11,734 7.67 7.67 Cancelled ( 204 ) 6.86 6.86 Vested (1) — — — Outstanding at June 30, 2023 (2) 917,734 $ 4.89 - 8.40 $ 7.59 (1) The aggregate fair value of the restricted stock vested was $ 2.1 million for the six months ended June 30, 2023 and was $ 1.0 million for the year ended December 31, 2022 . (2) The aggregate fair value of the restricted stock was $ 7.3 million as of June 30, 2023 . The remaining vesting period was 2.6 years at June 30, 2023 . During the three and six months ended June 30, 2023, the Company did not grant any restricted stock units, or RSUs, and during the year ended December 31, 2022 , granted 129,638 RSUs with a vesting date of June 14, 2023 and a grant price of $ 6.75 . For the RSUs granted in 2022, unitholders 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 June 30, 2023 , there were 157,447 RSUs outstanding, all of which had previously vested. During the three and six months ended June 30, 2023 , the Company granted 296,444 PSUs at a grant price of $ 6.08 . The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date, or are forfeited if the performance conditions are not met. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | (9) SEGMENT REPORTING The Company has five business segments, which include four lending and one non-operating segment, 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 operated by the Bank and loans are made to borrowers residing nationwide. The highest concentrations of recreation loans are in Texas and Florida at 15 % and 10 % of loans outstanding and with no other states over 10 % as of June 30, 2023. 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 and boats make up 59 % and 19 % of the segment portfolio, with no other product lines exceeding 10 %, as of June 30, 2023. 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 41 % , 19 % , and 13 % of total home improvement loans outstanding, and with no other product lines exceeding 10 % as of June 30, 2023. 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 June 30, 2023. The commercial lending segment focuses on enterprise-wide industries, including manufacturing services, and various other industries, with California, Minnesota, Illinois, and Texas each having 23 % , 15 % , 12 % , and 11 % of the segment portfolio, and no other states having a concentration greater than 10 % . The commercial lending business has concentrations in manufacturing, wholesale trade, construction, and administrative and support services making up 48 % , 13 % , 12 % , and 11 % , of the loans outstanding as of June 30, 2023, with no other product lines exceeding 10 % . The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, primarily all of which are located in the New York City metropolitan area as of June 30, 2023. 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. 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 three and six months ended June 30, 2023. Three Months Ended June 30, 2023 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 41,109 $ 15,292 $ 2,814 $ 787 $ 1,724 $ 61,726 Total interest expense 7,580 4,194 852 46 2,363 15,035 Net interest income (loss) 33,529 11,098 1,962 741 ( 639 ) 46,691 Provision (benefit) for credit losses 10,135 3,739 ( 113 ) ( 5,311 ) 26 8,476 Net interest income (loss) after loss provision 23,394 7,359 2,075 6,052 ( 665 ) 38,215 Other income (expense), net ( 8,444 ) ( 4,386 ) ( 804 ) 561 ( 3,988 ) ( 17,061 ) Net income (loss) before taxes 14,950 2,973 1,271 6,613 ( 4,653 ) 21,154 Income tax (provision) benefit ( 3,867 ) ( 769 ) ( 329 ) ( 1,713 ) 1,206 ( 5,472 ) Net income (loss) after taxes $ 11,083 $ 2,204 $ 942 $ 4,900 $ ( 3,447 ) $ 15,682 Income attributable to the non-controlling interest 1,512 Total net income attributable to Medallion Financial Corp. $ 14,170 Balance Sheet Data Total loans $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Total assets 1,294,925 718,383 99,713 18,724 387,392 2,519,137 Total funds borrowed 1,062,309 589,335 81,801 15,360 317,802 2,066,607 Selected Financial Ratios Return on average assets 3.59 % 1.28 % 3.76 % 100.63 % ( 3.69 )% 2.60 % Return on average equity 22.94 8.19 23.97 641.63 ( 22.83 ) 16.52 Return on average stockholders' equity * * * * * 18.24 Interest yield 13.03 8.79 11.87 83.55 N/A 11.59 Net interest margin, gross 10.63 6.38 8.28 78.67 N/A 8.48 Net interest margin, net of allowance 11.08 6.53 8.54 166.23 N/A 8.77 Reserve coverage 4.07 2.26 2.72 52.76 N/A 3.48 Delinquency status (1) 0.39 0.16 0.08 — N/A 0.29 Charge-off ratio (2) 1.86 1.12 3.80 ( 525.21 ) N/A 0.74 (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. Six Months Ended June 30, 2023 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 79,008 $ 28,941 $ 5,515 $ 1,097 $ 3,007 $ 117,568 Total interest expense 13,484 7,473 1,661 113 4,544 27,275 Net interest income (loss) 65,524 21,468 3,854 984 ( 1,537 ) 90,293 Provision (benefit) for credit losses 17,886 6,820 214 ( 12,395 ) ( 11 ) 12,514 Net interest income (loss) after loss provision 47,638 14,648 3,640 13,379 ( 1,526 ) 77,779 Other income (expense), net ( 16,247 ) ( 8,379 ) ( 953 ) 153 ( 7,944 ) ( 33,370 ) Net income (loss) before taxes 31,391 6,269 2,687 13,532 ( 9,470 ) 44,409 Income tax (provision) benefit ( 8,380 ) ( 1,674 ) ( 718 ) ( 3,612 ) 2,530 ( 11,854 ) Net income (loss) after taxes $ 23,011 $ 4,595 $ 1,969 $ 9,920 $ ( 6,940 ) $ 32,555 Income attributable to the non-controlling interest 3,024 Total net income attributable to Medallion Financial Corp. $ 29,531 Balance Sheet Data Total loans $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Total assets 1,294,925 718,383 99,713 18,724 387,392 2,519,137 Total funds borrowed 1,062,309 589,335 81,801 15,360 317,802 2,066,607 Selected Financial Ratios Return on average assets 3.84 % 1.39 % 3.94 % 94.20 % ( 3.70 )% 2.79 % Return on average equity 24.13 8.76 24.74 590.25 ( 23.24 ) 17.49 Return on average stockholders' equity * * * * * 19.45 Interest yield 12.93 8.66 11.71 28.80 N/A 11.01 Net interest margin, gross 10.72 6.43 8.18 25.84 N/A 8.45 Net interest margin, net of allowance 11.18 6.57 8.43 73.52 N/A 8.75 Reserve coverage 4.07 2.26 2.72 52.76 N/A 3.48 Delinquency status (1) 0.39 0.16 0.08 — N/A 0.29 Charge-off ratio (2) 2.57 0.97 1.89 ( 124.01 ) N/A 1.51 (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. The following table presents segment data as of and for the three and six months ended June 30, 2022. Three Months Ended June 30, 2022 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 33,514 $ 10,587 $ 2,278 $ 231 $ 501 $ 47,111 Total interest expense 4,096 1,626 785 140 1,583 8,230 Net interest income (loss) 29,418 8,961 1,493 91 ( 1,082 ) 38,881 Provision (benefit) for credit losses 6,674 1,697 1,879 ( 2,272 ) ( 219 ) 7,759 Net interest income (loss) after loss provision 22,744 7,264 ( 386 ) 2,363 ( 863 ) 31,122 Other expense, net ( 7,551 ) ( 3,210 ) 3,263 ( 357 ) ( 3,600 ) ( 11,455 ) Net income (loss) before taxes 15,193 4,054 2,877 2,006 ( 4,463 ) 19,667 Income tax (provision) benefit ( 3,567 ) ( 975 ) ( 816 ) ( 540 ) 1,042 ( 4,856 ) Net income (loss) after taxes $ 11,626 $ 3,079 $ 2,061 $ 1,466 $ ( 3,421 ) $ 14,811 Income attributable to the non-controlling interest 1,511 Total net income attributable to Medallion Financial Corp. $ 13,300 Balance Sheet Data Total loans $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 Total assets 1,072,356 521,931 103,643 31,258 382,943 2,112,131 Total funds borrowed 861,083 419,102 83,224 25,100 307,496 1,696,005 Selected Financial Ratios Return on average assets 4.53 % 2.49 % 8.70 % 17.04 % ( 3.56 )% 2.93 % Return on average equity 25.52 14.03 49.03 95.46 ( 20.01 ) 16.33 Return on average stockholders' equity * * * * * 18.11 Interest yield 12.83 8.51 10.41 6.66 N/A 10.64 Net interest margin, gross 11.26 7.20 6.82 2.62 N/A 8.78 Net interest margin, net of allowance 11.65 7.33 6.93 7.88 N/A 9.07 Reserve coverage 3.44 1.75 2.81 66.61 N/A 3.41 Delinquency status (1) 0.36 0.07 0.08 — N/A 0.25 Charge-off ratio (2) 0.56 0.42 ( 0.06 ) ( 77.17 ) N/A ( 0.17 ) (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. Six Months Ended June 30, 2022 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 64,650 $ 20,288 $ 4,208 $ 377 $ 891 $ 90,414 Total interest expense 7,697 2,967 1,507 293 3,141 15,605 Net interest income (loss) 56,953 17,321 2,701 84 ( 2,250 ) 74,809 Provision (benefit) for credit losses 8,354 2,902 3,134 ( 3,544 ) 153 10,999 Net interest income (loss) after loss provision 48,599 14,419 ( 433 ) 3,628 ( 2,403 ) 63,810 Other expense, net ( 14,371 ) ( 6,106 ) 1,932 ( 1,566 ) ( 7,847 ) ( 27,958 ) Net income (loss) before taxes 34,228 8,313 1,499 2,062 ( 10,250 ) 35,852 Income tax (provision) benefit ( 9,248 ) ( 2,246 ) ( 405 ) ( 557 ) 2,769 ( 9,687 ) Net income (loss) after taxes $ 24,980 $ 6,067 $ 1,094 $ 1,505 $ ( 7,481 ) $ 26,165 Income attributable to the non-controlling interest 3,024 Total net income attributable to Medallion Financial Corp. $ 23,141 Balance Sheet Data Total loans $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 Total assets 1,072,356 521,931 103,643 31,258 382,943 2,112,131 Total funds borrowed 861,083 419,102 83,224 25,100 307,496 1,696,005 Selected Financial Ratios Return on average assets 5.04 % 2.56 % 2.41 % 5.85 % ( 4.24 )% 2.68 % Return on average equity 27.27 13.87 12.20 30.73 ( 24.86 ) 14.57 Return on average stockholders' equity * * * * * 15.93 Interest yield 12.85 8.57 10.13 5.47 N/A 10.68 Net interest margin, gross 11.32 7.32 6.50 1.22 N/A 8.84 Net interest margin, net of allowance 11.71 7.45 6.60 3.61 N/A 9.15 Reserve coverage 3.44 1.75 2.81 66.61 N/A 3.41 Delinquency status (1) 0.36 0.07 0.08 — N/A 0.25 Charge-off ratio (2) 0.60 0.43 3.70 ( 51.66 ) N/A 0.26 (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) COMMITMENTS AND CONTINGENCIES (A) EMPLOYMENT AGREEMENTS The Company has employment agreements with certain key officers, including Mr. Alvin Murstein and Mr. Andrew Murstein, for either a one-, two-, three-, four-, or 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, in addition to Mr. Andrew Murstein's employment agreement, as further described below, there is currently one agreement that renews after two years for additional one-year terms and one agreement with a three-year term that does not have a renewal period. 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. On April 25, 2023, Mr. Alvin Murstein, the Company’s Chairman of the Board and Chief Executive Officer, notified the Company of his election not to renew the term of his employment pursuant to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Accordingly, the term of his employment as Chief Executive Officer of the Company will expire on May 28, 2027, unless sooner terminated in accordance with the provisions thereof. In addition, on April 27, 2023, Mr. Andrew Murstein, the Company’s President and Chief Operating Officer, entered into an amendment to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Pursuant to such amendment, effective as of May 29, 2023, (i) the expiration of his then current term of employment shall be revised to end on May 28, 2027, and (ii) on May 29, 2024, and on each May 29 thereafter, such term of employment shall automatically renew each year for a three-year term unless, prior to the end of the first year of the then-applicable three-year term, either Mr. Murstein or the Company provides at least 30 days’ advance notice to the other party of its intention not to renew the then term of employment for a new three-year term, in each case unless such employment term is otherwise terminated pursuant to the terms thereof. As of June 30, 2023 , employment agreements expire at various dates through 2027 , with future minimum payments under these agreements of approximately $ 11.8 million. (B) OTHER COMMITMENTS As of June 30, 2023 , 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 | 6 Months Ended |
Jun. 30, 2023 | |
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, serves as the Company’s Senior Vice President at a salary of $ 250,950 per year, an increase from $ 239,000 per year in 2022 . Mr. Rudnick received an annual cash bonus of $ 85,000 and $ 75,000 as well as an equity bonus in the amount of $ 50,000 and $ 45,019 , during the six months ended June 30, 2023 and 2022 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (12) 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 approximates 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, considering 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 June 30, 2023 and December 31, 2022, 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. June 30, 2023 December 31, 2022 (Dollars in thousands) Carrying Fair Carrying Fair Financial assets Cash, cash equivalents, and federal funds sold (1) $ 124,554 $ 124,554 $ 105,598 $ 105,598 Equity investments 11,404 11,404 10,293 10,293 Investment securities 53,692 53,692 48,492 48,492 Loans receivable 2,082,027 2,082,027 1,853,108 1,853,108 Accrued interest receivable (2) 13,345 13,345 12,613 12,613 Equity securities (3) 1,724 1,724 1,724 1,724 Financial liabilities Funds borrowed 2,066,607 2,066,607 1,833,484 1,833,484 Accrued interest payable (2) 4,449 4,449 4,790 4,790 (1) Categorized as level 1 within the fair value hierarchy, excluding $ 1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2023 and $ 1.3 million as of December 31, 2022 . See Note 13. (2) Categorized as level 3 within the fair value hierarchy. See Note 13. (3) Included within other assets on the balance sheet. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and liabilities | (13) 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 U.S. 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. The Company measures equity investments 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 recurring basis as of June 30, 2023 and December 31, 2022. June 30, 2023 Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 53,692 — 53,692 Equity securities 1,724 — — 1,724 Total (1) $ 1,724 $ 54,942 $ — $ 56,666 (1) Total unrealized losses of $ 0.9 million and $ 0.4 million , net of tax, was included in other comprehensive income for the three and six months ended June 30, 2023 related to these assets. 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 other comprehensive loss for the year ended December 31, 2022 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 June 30, 2023 and December 31, 2022. June 30, 2023 Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 11,404 $ 11,404 Impaired loans — — 16,145 16,145 Loan collateral in process of foreclosure — — 16,803 16,803 Total $ — $ — $ 44,352 $ 44,352 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 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 June 30, 2023 and December 31, 2022. (Dollars in thousands except per share amounts) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments $ 11,131 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 16,145 Market approach Historical and actual loss experience 0.00 % - 7.59 % Transfer prices (2) $ 0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 16,803 Market approach Transfer prices (2) $ 0.0 - 79.5 Collateral value (3) $ 0.5 - $ 43.2 (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. (Dollars in thousands except per share amounts) 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 (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) | 6 Months Ended |
Jun. 30, 2023 | |
Medallion Bank Preferred Stock (Non-controlling Interest) | (14) 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 based on the Secured Overnight Financing Rate, or SOFR, and is expected to be three-month Term 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | (15) SUBSEQUENT EVENTS The Company has evaluated the effects of events that have occurred subsequent to June 30, 2023 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there was one subsequent event that required disclosure. On July 10, 2023, MCI accepted a commitment from the SBA for $ 20.0 million in debenture financing with a ten-year term. MCI can draw funds under the commitment, in whole or in part, until September 30, 2027 . In connection with the commitment, MCI paid the SBA a leverage fee of $ 0.2 million, with the remaining $ 0.4 million of the fee to be paid pro rata as MCI draws under the commitment. Of the commitment, $ 4.8 million is currently drawable, and the balance of $ 15.2 million is drawable upon the infusion of $ 7.6 million of capital from either the capitalization of retained earnings or a capital infusion into MCI from the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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 U.S., 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 through 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 June 30, 2023, cash includes $ 1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 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 12 and 13 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 $ 11.4 million and $ 10.3 million at June 30, 2023 and December 31, 2022, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of June 30, 2023, a cumulative impairment of $ 2.5 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 both June 30, 2023 and December 31, 2022, the fair value of these securities were $ 1.7 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. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net losses recognized during the period on equity securities $ ( 28 ) $ ( 63 ) $ — $ ( 154 ) Less: Net gains (losses) recognized during the period on equity — — — — Unrealized losses recognized during the reporting period on $ ( 28 ) $ ( 63 ) $ — $ ( 154 ) |
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 at both June 30, 2023 and December 31, 2022 , and less than $ 0.1 million was amortized to interest income for each of the three and six months ended June 30, 2023 and 2022. ASC 320 further requires that held-to-maturity securities be re ported 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable. |
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 are 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. At June 30, 2023 and December 31, 2022 , net loan origination costs were $ 40.4 million and $ 34.9 million. Net amortization to income for the three and six months ended June 30, 2023 was $ 2.4 million and $ 4.3 million and was $ 2.4 million and $ 4.5 million for the three and six months ended June 30, 2022. 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. Consumer loans are placed on nonaccrual when they become 90 days past due 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 $ 6.2 million at June 30, 2023, or 0.29 % of the total loan portfolio, compared to $ 8.9 million , or 0.47 % , at December 31, 2022 . Beginning in the first quarter of 2023, the Company began charging off recreation loans at the point when borrowers filed for bankruptcy. This change resulted in approximately $ 2.5 million of loans being charged off in the six months ended June 30, 2023. The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. 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 interest 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. Modified loans are considered impaired loans. 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 $ 15.6 million and $ 19.5 million at June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022 . |
Allowance for Loan Losses | Allowance for Credit Losses On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquency and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $ 13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $ 9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table: (Dollars in thousands) December 31, 2022 Effect of ASC 326 January 1, 2023 Assets: Loans: Recreation $ 41,966 $ 10,037 $ 52,003 Home improvement 11,340 1,518 12,858 Commercial 1,049 2,157 3,206 Medallion 9,490 — 9,490 Strategic partnership — — — Allowance for credit losses on loans $ 63,845 $ 13,712 $ 77,557 Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available. |
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 June 30, 2023 and December 31, 2022, the Company had goodwill of $ 150.8 million , all of which related to the Bank. As of June 30, 2023 and December 31, 2022, the Company had intangible assets of $ 21.3 million and $ 22.0 million . Amortization expense on the intangible assets for the three and six months ended June 30, 2023 and 2022 was $ 0.4 million and $ 0.7 million. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022 , concluding that there was no impairment of these assets. The following table details the intangible assets as of the dates presented: (Dollars in thousands) June 30, 2023 December 31, 2022 Brand-related intellectual property $ 16,227 $ 16,775 Home improvement contractor relationships 5,088 5,260 Total intangible assets $ 21,315 $ 22,035 |
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 $ 0.1 million for the three and six months ended June 30, 2023 and 2022 . |
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 $ 0.8 million and $ 1.5 million for the three and six months ended June 30, 2023 and was $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2022. 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 $ 6.8 million and $ 7.0 million as of June 30, 2023 and December 31, 2022 . |
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 Per Share (EPS) | Earnings Per Share (EPS) Basic earnings per share are computed by dividing net income 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 considering the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2023 2022 2023 2022 Net income available to common stockholders $ 14,170 $ 13,300 $ 29,531 $ 23,141 Weighted average common shares outstanding applicable 22,488,463 24,153,015 22,416,089 24,459,870 Effect of restricted stock grants 276,420 184,620 379,924 204,273 Effect of dilutive stock options 43,567 84,232 96,342 86,869 Effect of performance share units 45,477 — 22,739 — Adjusted weighted average common shares outstanding 22,853,927 24,421,867 22,915,094 24,751,012 Basic net income per share $ 0.63 $ 0.55 $ 1.32 $ 0.95 Diluted net income per share 0.62 0.54 1.29 0.93 Potentially dilutive common shares excluded from the above calculations aggregated 644,478 and 832,895 shares as of June 30, 2023 and 2022 . |
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 six months ended June 30, 2023 and 2022 , the Company issued 316,483 and 383,925 restricted shares of stock-based compensation awards, 296,444 and 0 performance stock units and no restricted stock units or shares of other stock-based compensation awards. The Company recognized $ 1.2 million and $ 2.2 million , or $ 0.05 and $ 0.10 per share, for the three and six months ended June 30, 2023 , and $ 0.9 million and $ 1.5 million, or $ 0.04 and $ 0.06 per diluted common share, for the three and six months ended June 30, 2022, of non-cash stock-based compensation expense related to the grants. As of June 30, 2023 , the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $ 5.9 million, which is expected to be recognized over the next 11 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 belo w). 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 credit losses be maintained. As of June 30, 2023, the Bank’s Tier 1 leverage ratio was 16.0 % . The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well-Capitalized June 30, 2023 December 31, 2022 Common equity tier 1 capital $ 267,700 $ 242,049 Tier 1 capital 336,488 310,837 Total capital 363,589 334,913 Average assets 2,099,762 1,917,904 Risk-weighted assets 2,123,720 1,888,530 Leverage ratio (1) 4.0 % 5.0 % 16.0 % 16.2 % Common equity tier 1 capital ratio (2) 7.0 6.5 12.6 12.8 Tier 1 capital ratio (3) 8.5 8.0 15.8 16.5 Total capital ratio (3) 10.5 10.0 17.1 17.7 (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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $ 6.2 million and increased the Tier 1 capital ratio by 27 basis points. In the table above, the minimum risk-based ratios as of June 30, 2023 and December 31, 2022 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 June 30, 2023 and December 31, 2022 . |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards On January 1, 2023, the Company adopted ASC 326. Please refer to Allowance for Credit Losses, within this footnote, for the impact of adopting this standard. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures, or Topic 323: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The main objective of this new standard is to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. The Company is assessing the impact of the update 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) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Unrealized Portion Related to Equity Securities | The following table presents the unrealized portion related to the equity securities held. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Net losses recognized during the period on equity securities $ ( 28 ) $ ( 63 ) $ — $ ( 154 ) Less: Net gains (losses) recognized during the period on equity — — — — Unrealized losses recognized during the reporting period on $ ( 28 ) $ ( 63 ) $ — $ ( 154 ) |
Summary of finalized adoption related to the allowance for credit losses on loans | The CECL methodology transition effects on the allowance for credit losses are shown in the following table: (Dollars in thousands) December 31, 2022 Effect of ASC 326 January 1, 2023 Assets: Loans: Recreation $ 41,966 $ 10,037 $ 52,003 Home improvement 11,340 1,518 12,858 Commercial 1,049 2,157 3,206 Medallion 9,490 — 9,490 Strategic partnership — — — Allowance for credit losses on loans $ 63,845 $ 13,712 $ 77,557 |
Schedule of Intangible Assets | The following table details the intangible assets as of the dates presented: (Dollars in thousands) June 30, 2023 December 31, 2022 Brand-related intellectual property $ 16,227 $ 16,775 Home improvement contractor relationships 5,088 5,260 Total intangible assets $ 21,315 $ 22,035 |
Summary of the Calculation of Basic and Diluted EPS | The table below shows the calculation of basic and diluted EPS. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2023 2022 2023 2022 Net income available to common stockholders $ 14,170 $ 13,300 $ 29,531 $ 23,141 Weighted average common shares outstanding applicable 22,488,463 24,153,015 22,416,089 24,459,870 Effect of restricted stock grants 276,420 184,620 379,924 204,273 Effect of dilutive stock options 43,567 84,232 96,342 86,869 Effect of performance share units 45,477 — 22,739 — Adjusted weighted average common shares outstanding 22,853,927 24,421,867 22,915,094 24,751,012 Basic net income per share $ 0.63 $ 0.55 $ 1.32 $ 0.95 Diluted net income per share 0.62 0.54 1.29 0.93 |
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 (Dollars in thousands) Minimum Well-Capitalized June 30, 2023 December 31, 2022 Common equity tier 1 capital $ 267,700 $ 242,049 Tier 1 capital 336,488 310,837 Total capital 363,589 334,913 Average assets 2,099,762 1,917,904 Risk-weighted assets 2,123,720 1,888,530 Leverage ratio (1) 4.0 % 5.0 % 16.0 % 16.2 % Common equity tier 1 capital ratio (2) 7.0 6.5 12.6 12.8 Tier 1 capital ratio (3) 8.5 8.0 15.8 16.5 Total capital ratio (3) 10.5 10.0 17.1 17.7 (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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $ 6.2 million and increased the Tier 1 capital ratio by 27 basis points. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Schedule of Investments [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | maturity securities available for sale as of June 30, 2023 and December 31, 2022: June 30, 2023 (Dollars in thousands) Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of U.S. federal agencies $ 46,195 $ — $ ( 5,187 ) $ 41,008 State and municipalities 13,862 — ( 1,178 ) 12,684 Total $ 60,057 $ — $ ( 6,365 ) $ 53,692 December 31, 2022 Amortized Gross Gross Fair Mortgage-backed securities, principally obligations of U.S. 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 |
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity | The amortized cost and estimated market value of investment securities at June 30, 2023 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. June 30, 2023 (Dollars in thousands) Amortized Fair Due in one year or less $ — $ — Due after one year through five years 9,478 9,035 Due after five years through ten years 9,417 8,240 Due after ten years 41,162 36,417 Total $ 60,057 $ 53,692 |
Summary of Securities with Gross Unrealized Losses | The following tables show information pertaining to securities with gross unrealized losses at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position. Less than Twelve Months Twelve Months and Over June 30, 2023 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of U.S. federal agencies $ ( 90 ) $ 6,057 $ ( 5,097 ) $ 34,951 State and municipalities ( 87 ) 4,957 ( 1,091 ) 7,723 Total $ ( 177 ) $ 11,014 $ ( 6,188 ) $ 42,674 Less than Twelve Months Twelve Months and Over December 31, 2022 (Dollars in thousands) Gross Fair Gross Fair Mortgage-backed securities, principally obligations of U.S. 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 As of |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Summary of Inclusive Capitalized Loans | The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 (Dollars in thousands) Amount As a Amount As a Recreation $ 1,331,114 62 % $ 1,183,512 62 % Home improvement 728,468 34 626,399 33 Commercial 92,637 4 92,899 5 Medallion 3,448 * 13,571 1 Strategic partnership 1,331 * 572 * Total gross loans 2,156,998 100 % 1,916,953 100 % Allowance for credit losses ( 74,971 ) ( 63,845 ) Total net loans $ 2,082,027 $ 1,853,108 (*) Less than 1%. |
Schedule of Activity of Gross Loans | The following tables show the activity of the gross loans for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, 2023 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – March 31, 2023 $ 1,213,380 $ 669,642 $ 95,329 $ 4,059 $ 1,770 $ 1,984,180 Loan originations 190,007 117,035 4,750 1,300 33,174 346,266 Principal payments, sales, maturities, and recoveries ( 63,463 ) ( 55,350 ) ( 6,922 ) ( 1,531 ) ( 33,613 ) ( 160,879 ) Charge-offs ( 9,166 ) ( 2,575 ) ( 900 ) ( 221 ) — ( 12,862 ) Transfer to loan collateral in process of foreclosure, net ( 3,991 ) — — ( 159 ) — ( 4,150 ) Amortization of origination costs ( 3,159 ) 665 — — — ( 2,494 ) FASB origination costs, net 7,506 ( 949 ) — — — 6,557 Paid-in-kind interest — — 380 — — 380 Gross loans – June 30, 2023 $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Six Months Ended June 30, 2023 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – December 31, 2022 $ 1,183,512 $ 626,399 $ 92,899 $ 13,571 $ 572 $ 1,916,953 Loan originations 291,688 212,016 7,750 1,923 60,180 573,557 Principal payments, sales, maturities, and recoveries ( 119,680 ) ( 105,205 ) ( 7,756 ) ( 5,926 ) ( 59,421 ) ( 297,988 ) Charge-offs ( 21,756 ) ( 4,489 ) ( 900 ) ( 3,814 ) — ( 30,959 ) Transfer to loan collateral in process of foreclosure, net ( 8,348 ) — — ( 2,306 ) — ( 10,654 ) Amortization of origination costs ( 5,918 ) 1,251 — — — ( 4,667 ) FASB origination costs, net 11,616 ( 1,504 ) — — — 10,112 Paid-in-kind interest — — 644 — — 644 Gross loans – June 30, 2023 $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Three Months Ended June 30, 2022 (Dollars in thousands) Recreation Home Commercial Medallion Strategic Total Gross loans – March 31, 2022 $ 1,004,091 $ 473,408 $ 77,867 $ 13,849 $ 226 $ 1,569,441 Loan originations 170,207 105,172 19,272 472 9,830 304,953 Principal payments, sales, maturities, and recoveries ( 73,114 ) ( 51,006 ) ( 386 ) ( 30 ) ( 9,463 ) ( 133,999 ) Charge-offs ( 5,074 ) ( 1,108 ) — — — ( 6,182 ) Transfer to loan collateral in process of foreclosure, net ( 2,618 ) — — ( 139 ) — ( 2,757 ) Amortization of origination costs ( 2,931 ) 380 — — — ( 2,551 ) Amortization of loan premium ( 60 ) ( 90 ) — — — ( 150 ) FASB origination costs, net 6,169 ( 478 ) — — — 5,691 Paid-in-kind interest — — 175 — — 175 Gross loans – June 30, 2022 $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 Six Months Ended June 30, 2022 (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 284,613 194,992 23,672 564 14,839 518,680 Principal payments, sales, maturities, and recoveries ( 138,230 ) ( 103,170 ) ( 2,203 ) ( 115 ) ( 14,336 ) ( 258,054 ) Charge-offs ( 10,141 ) ( 2,168 ) ( 1,584 ) ( 75 ) — ( 13,968 ) Transfer to loan collateral in process of foreclosure, net ( 5,529 ) — — ( 268 ) — ( 5,797 ) Amortization of origination costs ( 5,370 ) 700 — — — ( 4,670 ) Amortization of loan premium ( 120 ) ( 180 ) — — — ( 300 ) FASB origination costs, net 10,127 ( 668 ) — — — 9,459 Paid-in-kind interest — — 347 — — 347 Gross loans – June 30, 2022 $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 |
Summary of Activity in Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Allowance for credit losses – beginning balance (1) $ 70,280 $ 50,686 $ 63,845 $ 50,166 CECL transition amount upon ASU 2016-13 adoption — — 13,712 — Charge-offs Recreation ( 9,166 ) ( 5,074 ) ( 21,756 ) ( 10,141 ) Home improvement ( 2,575 ) ( 1,108 ) ( 4,489 ) ( 2,168 ) Commercial ( 900 ) — ( 900 ) ( 1,584 ) Medallion ( 221 ) — ( 3,814 ) ( 75 ) Total charge-offs ( 12,862 ) ( 6,182 ) ( 30,959 ) ( 13,968 ) Recoveries Recreation 3,282 3,615 6,053 7,125 Home improvement 627 585 1,259 1,144 Commercial — 13 10 47 Medallion 5,168 2,676 8,537 3,639 Total recoveries 9,077 6,889 15,859 11,955 Net recoveries (charge-offs) (2) ( 3,785 ) 707 ( 15,100 ) ( 2,013 ) Provision (benefit) for credit losses 8,476 7,759 12,514 10,999 Allowance for credit losses – ending balance (3) $ 74,971 $ 59,152 $ 74,971 $ 59,152 (1) Represents allowance prior to the adoption of ASU 2016-13. (2) As of June 30, 2023 , cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 231.4 million, some of which may represent collection opportunities for the Company. (3) As of June 30, 2023 and June 30, 2022 , there were no allowance for credit losses and net charge-offs related to the strategic partnership loans. |
Summary of gross charge offs | The following table sets forth the gross charge-offs for the three months ended June 30, 2023, by the year of origination: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Recreation $ 44 $ 3,568 $ 2,344 $ 785 $ 918 $ 1,507 $ 9,166 Home improvement 39 1,548 473 158 91 266 2,575 Commercial — — — — 900 — 900 Medallion — — — — — 221 221 Total $ 83 $ 5,116 $ 2,817 $ 943 $ 1,909 $ 1,994 $ 12,862 The following table sets forth the gross charge-offs for the six months ended June 30, 2023, by the year of origination: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Recreation $ 44 $ 7,176 $ 5,414 $ 2,456 $ 2,472 $ 4,194 $ 21,756 Home improvement 39 2,452 1,101 301 222 374 4,489 Commercial — — — — 900 — 900 Medallion — — — — — 3,814 3,814 Total $ 83 $ 9,628 $ 6,515 $ 2,757 $ 3,594 $ 8,382 $ 30,959 |
Summary of Allowance for Credit Losses by Type | The following tables set forth the allowance for credit losses by type as of June 30, 2023 and December 31, 2022. June 30, 2023 (Dollars in thousands) Amount Percentage Allowance as Allowance as Recreation $ 54,187 72 % 4.07 % 335.63 % Home improvement 16,447 22 2.26 101.87 Commercial 2,518 3 2.72 15.60 Medallion 1,819 3 52.76 11.27 Total $ 74,971 100 % 3.48 % 464.36 % 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 % |
Summary of Total Nonaccrual Loans and Foregone Interest | The following table presents total nonaccrual loans and foregone interest. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. (Dollars in thousands) June 30, 2023 December 31, 2022 Total nonaccrual loans $ 16,145 $ 32,133 Interest foregone quarter to date 237 231 Amount of foregone interest applied to principal in the quarter 63 94 Interest foregone year to date 507 1,267 Amount of foregone interest applied to principal for the year 133 375 Interest foregone life-to-date 1,655 2,419 Amount of foregone interest applied to principal life-to-date 789 1,204 Percentage of nonaccrual loans to gross loan portfolio 0.7 % 1.7 % Percentage of allowance for credit losses to nonaccrual loans 464.4 % 198.7 % |
Summary of Performance Status of Loan | The following tables present the performance status of loans as of June 30, 2023 and December 31, 2022. June 30, 2023 (Dollars in thousands) Performing Nonperforming Total Percentage of Recreation $ 1,325,745 $ 5,369 $ 1,331,114 0.40 % Home improvement 727,332 1,136 728,468 0.16 Commercial 86,445 6,192 92,637 6.68 Medallion — 3,448 3,448 100.00 Strategic partnership 1,331 — 1,331 — Total $ 2,140,853 $ 16,145 $ 2,156,998 0.75 % 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 % |
Summary of Attributes of Nonperforming Loan Portfolio | The following tables provide additional information on attributes of the nonperforming loan portfolio as of June 30, 2023 and December 31, 2022, all of which had an allowance recorded against the principal balance. June 30, 2023 December 31, 2022 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related With an allowance recorded Recreation $ 5,369 $ 5,369 $ 219 $ 9,666 $ 9,666 $ 343 Home improvement 1,136 1,136 26 579 579 10 Commercial 6,192 6,301 472 8,734 8,823 963 Medallion 3,448 4,128 1,819 13,571 14,686 9,490 Total nonperforming loans with an allowance $ 16,145 $ 16,934 $ 2,536 $ 32,550 $ 33,754 $ 10,806 Three Months Ended June 30, 2023 2022 (Dollars in thousands) Average Interest Income Average Interest Income With an allowance recorded Recreation $ 5,230 $ 7 $ 5,197 $ 119 Home improvement 1,138 1 396 — Commercial 5,652 — 13,577 — Medallion 4,686 — 16,095 — Total nonperforming loans with an allowance $ 16,706 $ 8 $ 35,265 $ 119 Six Months Ended June 30, 2023 2022 (Dollars in thousands) Average Interest Income Average Interest Income With an allowance recorded Recreation $ 5,208 $ 9 $ 5,265 $ 223 Home improvement 1,129 1 388 — Commercial 5,644 — 13,561 — Medallion 4,908 — 16,798 — Total nonperforming loans with an allowance $ 16,889 $ 10 $ 36,012 $ 223 |
Summary of Aging of Loans | The following tables show the aging of all loans as of June 30, 2023 and December 31, 2022. June 30, 2023 Days Past Due Recorded (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Accruing Recreation $ 28,438 $ 9,464 $ 4,978 $ 42,880 $ 1,245,120 $ 1,288,000 $ — Home improvement 2,505 1,657 1,138 5,300 725,899 731,199 — Commercial — — 74 74 93,894 93,968 — Medallion — — — — 3,448 3,448 — Strategic partnership — — — — 1,331 1,331 — Total $ 30,943 $ 11,121 $ 6,190 $ 48,254 $ 2,069,692 $ 2,117,946 $ — (1) Excludes $ 40.4 million of capitalized loan origination costs. 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. |
Summary of TDRs | The following table shows the TDRs that the Company entered into during the three and six months ended June 30, 2022. (Dollars in thousands) Number of Loans Pre- Post- Three months ended June 30, 2022 Recreation loans 12 $ 147 $ 147 Medallion loans — — — Six months ended June 30, 2022 Recreation loans 22 $ 276 $ 276 Medallion loans 2 252 252 |
Summary of Activities of the Loan Collateral Process of Foreclosure Related to Recreation and Medallion Loans | The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, 2023 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2023 $ 1,461 $ 19,006 $ 20,467 Transfer from loans, net 3,991 159 4,150 Sales ( 2,583 ) ( 553 ) ( 3,136 ) Cash payments received ( 128 ) ( 2,517 ) ( 2,645 ) Collateral valuation adjustments ( 2,012 ) ( 21 ) ( 2,033 ) Loan collateral in process of foreclosure – June 30, 2023 $ 729 $ 16,074 $ 16,803 Six Months Ended June 30, 2023 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2022 $ 1,376 $ 20,443 $ 21,819 Transfer from loans, net 8,348 2,306 10,654 Sales ( 4,778 ) ( 568 ) ( 5,346 ) Cash payments received ( 128 ) ( 5,834 ) ( 5,962 ) Collateral valuation adjustments ( 4,089 ) ( 273 ) ( 4,362 ) Loan collateral in process of foreclosure – June 30, 2023 $ 729 $ 16,074 $ 16,803 Three Months Ended June 30, 2022 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2022 $ 1,369 $ 32,465 $ 33,834 Transfer from loans, net 2,618 139 2,757 Sales ( 2,146 ) ( 1,999 ) ( 4,145 ) Cash payments received — ( 4,381 ) ( 4,381 ) Collateral valuation adjustments ( 963 ) ( 128 ) ( 1,091 ) Loan collateral in process of foreclosure – June 30, 2022 $ 878 $ 26,096 $ 26,974 Six Months Ended June 30, 2022 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2021 $ 1,720 $ 35,710 $ 37,430 Transfer from loans, net 5,529 268 5,797 Sales ( 4,398 ) ( 2,115 ) ( 6,513 ) Cash payments received — ( 7,253 ) ( 7,253 ) Collateral valuation adjustments ( 1,973 ) ( 514 ) ( 2,487 ) Loan collateral in process of foreclosure – June 30, 2022 $ 878 $ 26,096 $ 26,974 |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances of Funds Borrowed | The following table presents outstanding balances of funds borrowed. Payments Due for the Twelve Months Ending June 30, (Dollars in thousands) 2024 2025 2026 2027 2028 Thereafter June 30, 2023 (1) December 31, 2022 (1) Interest (2) Deposits (3) $ 678,737 $ 563,203 $ 281,895 $ 198,331 $ 93,777 $ — $ 1,815,943 $ 1,609,672 2.70 % Federal reserve discount window 28,000 — — — — — 28,000 — 5.25 Privately placed notes 36,000 — 31,250 — 53,750 — 121,000 121,000 7.66 SBA debentures and borrowings 3,880 12,500 15,500 4,500 — 30,500 66,880 68,512 3.13 Preferred securities — — — — — 33,000 33,000 33,000 7.62 Total $ 746,617 $ 575,703 $ 328,645 $ 202,831 $ 147,527 $ 63,500 $ 2,064,823 $ 1,832,184 3.12 % (1) Excludes deferred financing costs of $ 6.8 million and $ 7.0 million as of June 30, 2023 and December 31, 2022 . (2) Weighted average contractual rate as of June 30, 2023 . (3) Balance excludes $ 1.5 million and $ 1.3 million of strategic partner reserve deposits as of June 30, 2023 and December 31, 2022 . |
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits | The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2023. (Dollars in thousands) June 30, 2023 Three months or less $ 162,219 Over three months through six months 186,757 Over six months through one year 329,761 Over one year 1,138,754 Total deposits $ 1,817,491 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs and Additional Information | The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Operating lease costs $ 597 $ 590 $ 1,195 $ 1,179 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 603 435 1,226 1,080 Right-of-use asset obtained in exchange for lease liability ( 56 ) ( 40 ) ( 111 ) ( 85 ) |
Schedule of Breakout of Operating leases | The following table presents the breakout of the operating leases as of June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Operating lease right-of-use assets $ 9,001 $ 9,723 Other current liabilities 2,188 2,239 Operating lease liabilities 7,629 8,408 Total operating lease liabilities 9,817 10,647 Weighted average remaining lease term 5.1 years 5.5 years Weighted average discount rate 5.59 % 5.66 % |
Schedule of Maturities of the Lease Liabilities | At June 30, 2023, maturities of the lease liabilities were as follows: (Dollars in thousands) Remainder of 2023 $ 1,250 2024 2,508 2025 2,492 2026 2,440 2027 1,212 Thereafter 1,290 Total lease payments 11,192 Less imputed interest 1,375 Total operating lease liabilities $ 9,817 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022. (Dollars in thousands) June 30, 2023 December 31, 2022 Goodwill and other intangibles $ ( 43,215 ) $ ( 43,397 ) Provision for credit losses 10,913 9,945 Net operating loss carryforwards (1) 3,730 3,730 Accrued expenses, compensation, and other assets 3,601 3,819 Unrealized gains on other investments 426 1,445 Total deferred tax liability ( 24,545 ) ( 24,458 ) Valuation allowance ( 2,295 ) ( 2,295 ) Deferred tax liability, net $ ( 26,840 ) $ ( 26,753 ) (1) As of June 30, 2023 , 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 as of June 30, 2023 . |
Summary of Components of Tax Provision | The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2023 and 2022 as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Current Federal $ 3,873 $ 984 $ 6,456 $ 1,488 State 1,175 447 1,964 769 Deferred Federal 204 2,378 2,450 5,598 State 220 1,047 984 1,832 Net provision for income taxes $ 5,472 $ 4,856 $ 11,854 $ 9,687 |
Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision | The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2023 and 2022. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2023 2022 2023 2022 Statutory Federal income tax provision at 21 % $ 4,442 $ 4,130 $ 9,326 $ 7,529 State and local income taxes, net of federal income tax 869 808 1,824 1,473 Non-deductible expenses 19 362 1,076 1,075 Other 142 ( 444 ) ( 372 ) ( 390 ) Total income tax provision $ 5,472 $ 4,856 $ 11,854 $ 9,687 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity for Stock Option Programs | The following table presents the activity for the stock option programs for the 2023 first and second quarters and the 2022 full year. Number of Exercise Weighted Outstanding at December 31, 2021 1,111,687 $ 2.14 - 12.55 $ 6.41 Granted — — — Cancelled ( 26,093 ) 4.89 - 12.55 7.08 Exercised ( 23,745 ) 4.89 - 7.25 6.51 Outstanding at December 31, 2022 1,061,849 $ 2.14 - 9.38 $ 6.51 Granted — — — Cancelled ( 25,194 ) 4.89 - 9.38 6.97 Exercised (1) ( 44,583 ) 4.89 - 7.25 6.55 Outstanding at March 31, 2023 992,072 $ 2.14 - 9.38 $ 6.53 Granted — — — Cancelled ( 7,803 ) 4.89 - 7.25 6.31 Exercised (1) ( 283 ) 4.89 4.89 Outstanding at June 30, 2023 (2) 983,986 $ 2.14 - 9.38 $ 6.50 Options vested at: December 31, 2022 548,426 $ 2.14 - 9.38 $ 6.51 June 30, 2023 721,726 $ 2.14 - 9.38 $ 6.50 (1) The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $ 0.1 million for the three and six months ended June 30, 2023 and was $ 0.1 million for the year ended December 31, 2022 . (2) The aggregate intrinsic value of outstanding options , which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $ 1.4 million for outstanding options and $ 1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023 . |
Summary of Activity for Unvested Options Outstanding | The following table presents the activity for the unvested options outstanding under the plans described above for the 2023 first and second quarter. Number of Exercise Price Weighted Outstanding at December 31, 2022 513,423 $ 4.89 - 7.25 $ 6.52 Granted — — — Cancelled ( 2,951 ) 4.89 - 7.25 5.53 Vested ( 248,212 ) 4.89 - 7.25 6.55 Outstanding at March 31, 2023 262,260 $ 4.89 - 7.25 $ 6.49 Granted — — — Cancelled — — — Vested — — — Outstanding at June 30, 2023 262,260 $ 4.89 - 7.25 $ 6.49 |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the 2023 first and second quarter and the 2022 full year. Number of Grant Weighted Outstanding at December 31, 2021 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 857,288 $ 4.89 - 7.25 $ 7.27 Granted 304,749 8.08 8.08 Cancelled ( 9,843 ) 4.89 - 8.40 7.18 Vested ( 245,990 ) 4.89 - 7.68 7.12 Outstanding at March 31, 2023 906,204 $ 4.89 - 8.40 $ 7.58 Granted 11,734 7.67 7.67 Cancelled ( 204 ) 6.86 6.86 Vested (1) — — — Outstanding at June 30, 2023 (2) 917,734 $ 4.89 - 8.40 $ 7.59 (1) The aggregate fair value of the restricted stock vested was $ 2.1 million for the six months ended June 30, 2023 and was $ 1.0 million for the year ended December 31, 2022 . (2) The aggregate fair value of the restricted stock was $ 7.3 million as of June 30, 2023 . The remaining vesting period was 2.6 years at June 30, 2023 . |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following table presents segment data as of and for the three and six months ended June 30, 2023. Three Months Ended June 30, 2023 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 41,109 $ 15,292 $ 2,814 $ 787 $ 1,724 $ 61,726 Total interest expense 7,580 4,194 852 46 2,363 15,035 Net interest income (loss) 33,529 11,098 1,962 741 ( 639 ) 46,691 Provision (benefit) for credit losses 10,135 3,739 ( 113 ) ( 5,311 ) 26 8,476 Net interest income (loss) after loss provision 23,394 7,359 2,075 6,052 ( 665 ) 38,215 Other income (expense), net ( 8,444 ) ( 4,386 ) ( 804 ) 561 ( 3,988 ) ( 17,061 ) Net income (loss) before taxes 14,950 2,973 1,271 6,613 ( 4,653 ) 21,154 Income tax (provision) benefit ( 3,867 ) ( 769 ) ( 329 ) ( 1,713 ) 1,206 ( 5,472 ) Net income (loss) after taxes $ 11,083 $ 2,204 $ 942 $ 4,900 $ ( 3,447 ) $ 15,682 Income attributable to the non-controlling interest 1,512 Total net income attributable to Medallion Financial Corp. $ 14,170 Balance Sheet Data Total loans $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Total assets 1,294,925 718,383 99,713 18,724 387,392 2,519,137 Total funds borrowed 1,062,309 589,335 81,801 15,360 317,802 2,066,607 Selected Financial Ratios Return on average assets 3.59 % 1.28 % 3.76 % 100.63 % ( 3.69 )% 2.60 % Return on average equity 22.94 8.19 23.97 641.63 ( 22.83 ) 16.52 Return on average stockholders' equity * * * * * 18.24 Interest yield 13.03 8.79 11.87 83.55 N/A 11.59 Net interest margin, gross 10.63 6.38 8.28 78.67 N/A 8.48 Net interest margin, net of allowance 11.08 6.53 8.54 166.23 N/A 8.77 Reserve coverage 4.07 2.26 2.72 52.76 N/A 3.48 Delinquency status (1) 0.39 0.16 0.08 — N/A 0.29 Charge-off ratio (2) 1.86 1.12 3.80 ( 525.21 ) N/A 0.74 (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. Six Months Ended June 30, 2023 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 79,008 $ 28,941 $ 5,515 $ 1,097 $ 3,007 $ 117,568 Total interest expense 13,484 7,473 1,661 113 4,544 27,275 Net interest income (loss) 65,524 21,468 3,854 984 ( 1,537 ) 90,293 Provision (benefit) for credit losses 17,886 6,820 214 ( 12,395 ) ( 11 ) 12,514 Net interest income (loss) after loss provision 47,638 14,648 3,640 13,379 ( 1,526 ) 77,779 Other income (expense), net ( 16,247 ) ( 8,379 ) ( 953 ) 153 ( 7,944 ) ( 33,370 ) Net income (loss) before taxes 31,391 6,269 2,687 13,532 ( 9,470 ) 44,409 Income tax (provision) benefit ( 8,380 ) ( 1,674 ) ( 718 ) ( 3,612 ) 2,530 ( 11,854 ) Net income (loss) after taxes $ 23,011 $ 4,595 $ 1,969 $ 9,920 $ ( 6,940 ) $ 32,555 Income attributable to the non-controlling interest 3,024 Total net income attributable to Medallion Financial Corp. $ 29,531 Balance Sheet Data Total loans $ 1,331,114 $ 728,468 $ 92,637 $ 3,448 $ 1,331 $ 2,156,998 Total assets 1,294,925 718,383 99,713 18,724 387,392 2,519,137 Total funds borrowed 1,062,309 589,335 81,801 15,360 317,802 2,066,607 Selected Financial Ratios Return on average assets 3.84 % 1.39 % 3.94 % 94.20 % ( 3.70 )% 2.79 % Return on average equity 24.13 8.76 24.74 590.25 ( 23.24 ) 17.49 Return on average stockholders' equity * * * * * 19.45 Interest yield 12.93 8.66 11.71 28.80 N/A 11.01 Net interest margin, gross 10.72 6.43 8.18 25.84 N/A 8.45 Net interest margin, net of allowance 11.18 6.57 8.43 73.52 N/A 8.75 Reserve coverage 4.07 2.26 2.72 52.76 N/A 3.48 Delinquency status (1) 0.39 0.16 0.08 — N/A 0.29 Charge-off ratio (2) 2.57 0.97 1.89 ( 124.01 ) N/A 1.51 (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. The following table presents segment data as of and for the three and six months ended June 30, 2022. Three Months Ended June 30, 2022 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 33,514 $ 10,587 $ 2,278 $ 231 $ 501 $ 47,111 Total interest expense 4,096 1,626 785 140 1,583 8,230 Net interest income (loss) 29,418 8,961 1,493 91 ( 1,082 ) 38,881 Provision (benefit) for credit losses 6,674 1,697 1,879 ( 2,272 ) ( 219 ) 7,759 Net interest income (loss) after loss provision 22,744 7,264 ( 386 ) 2,363 ( 863 ) 31,122 Other expense, net ( 7,551 ) ( 3,210 ) 3,263 ( 357 ) ( 3,600 ) ( 11,455 ) Net income (loss) before taxes 15,193 4,054 2,877 2,006 ( 4,463 ) 19,667 Income tax (provision) benefit ( 3,567 ) ( 975 ) ( 816 ) ( 540 ) 1,042 ( 4,856 ) Net income (loss) after taxes $ 11,626 $ 3,079 $ 2,061 $ 1,466 $ ( 3,421 ) $ 14,811 Income attributable to the non-controlling interest 1,511 Total net income attributable to Medallion Financial Corp. $ 13,300 Balance Sheet Data Total loans $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 Total assets 1,072,356 521,931 103,643 31,258 382,943 2,112,131 Total funds borrowed 861,083 419,102 83,224 25,100 307,496 1,696,005 Selected Financial Ratios Return on average assets 4.53 % 2.49 % 8.70 % 17.04 % ( 3.56 )% 2.93 % Return on average equity 25.52 14.03 49.03 95.46 ( 20.01 ) 16.33 Return on average stockholders' equity * * * * * 18.11 Interest yield 12.83 8.51 10.41 6.66 N/A 10.64 Net interest margin, gross 11.26 7.20 6.82 2.62 N/A 8.78 Net interest margin, net of allowance 11.65 7.33 6.93 7.88 N/A 9.07 Reserve coverage 3.44 1.75 2.81 66.61 N/A 3.41 Delinquency status (1) 0.36 0.07 0.08 — N/A 0.25 Charge-off ratio (2) 0.56 0.42 ( 0.06 ) ( 77.17 ) N/A ( 0.17 ) (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. Six Months Ended June 30, 2022 Consumer Lending (Dollars in thousands) Recreation Home Commercial Medallion Corporate and Other Investments Consolidated Total interest income $ 64,650 $ 20,288 $ 4,208 $ 377 $ 891 $ 90,414 Total interest expense 7,697 2,967 1,507 293 3,141 15,605 Net interest income (loss) 56,953 17,321 2,701 84 ( 2,250 ) 74,809 Provision (benefit) for credit losses 8,354 2,902 3,134 ( 3,544 ) 153 10,999 Net interest income (loss) after loss provision 48,599 14,419 ( 433 ) 3,628 ( 2,403 ) 63,810 Other expense, net ( 14,371 ) ( 6,106 ) 1,932 ( 1,566 ) ( 7,847 ) ( 27,958 ) Net income (loss) before taxes 34,228 8,313 1,499 2,062 ( 10,250 ) 35,852 Income tax (provision) benefit ( 9,248 ) ( 2,246 ) ( 405 ) ( 557 ) 2,769 ( 9,687 ) Net income (loss) after taxes $ 24,980 $ 6,067 $ 1,094 $ 1,505 $ ( 7,481 ) $ 26,165 Income attributable to the non-controlling interest 3,024 Total net income attributable to Medallion Financial Corp. $ 23,141 Balance Sheet Data Total loans $ 1,096,670 $ 526,278 $ 96,928 $ 14,152 $ 593 $ 1,734,621 Total assets 1,072,356 521,931 103,643 31,258 382,943 2,112,131 Total funds borrowed 861,083 419,102 83,224 25,100 307,496 1,696,005 Selected Financial Ratios Return on average assets 5.04 % 2.56 % 2.41 % 5.85 % ( 4.24 )% 2.68 % Return on average equity 27.27 13.87 12.20 30.73 ( 24.86 ) 14.57 Return on average stockholders' equity * * * * * 15.93 Interest yield 12.85 8.57 10.13 5.47 N/A 10.68 Net interest margin, gross 11.32 7.32 6.50 1.22 N/A 8.84 Net interest margin, net of allowance 11.71 7.45 6.60 3.61 N/A 9.15 Reserve coverage 3.44 1.75 2.81 66.61 N/A 3.41 Delinquency status (1) 0.36 0.07 0.08 — N/A 0.25 Charge-off ratio (2) 0.60 0.43 3.70 ( 51.66 ) N/A 0.26 (1) Loans 90 days or more past due. (2) Negative balances indicate net recoveries for the period. (*) Line item is not applicable to segments. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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. June 30, 2023 December 31, 2022 (Dollars in thousands) Carrying Fair Carrying Fair Financial assets Cash, cash equivalents, and federal funds sold (1) $ 124,554 $ 124,554 $ 105,598 $ 105,598 Equity investments 11,404 11,404 10,293 10,293 Investment securities 53,692 53,692 48,492 48,492 Loans receivable 2,082,027 2,082,027 1,853,108 1,853,108 Accrued interest receivable (2) 13,345 13,345 12,613 12,613 Equity securities (3) 1,724 1,724 1,724 1,724 Financial liabilities Funds borrowed 2,066,607 2,066,607 1,833,484 1,833,484 Accrued interest payable (2) 4,449 4,449 4,790 4,790 (1) Categorized as level 1 within the fair value hierarchy, excluding $ 1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2023 and $ 1.3 million as of December 31, 2022 . See Note 13. (2) Categorized as level 3 within the fair value hierarchy. See Note 13. (3) Included within other assets on the balance sheet. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 and December 31, 2022. June 30, 2023 Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 53,692 — 53,692 Equity securities 1,724 — — 1,724 Total (1) $ 1,724 $ 54,942 $ — $ 56,666 (1) Total unrealized losses of $ 0.9 million and $ 0.4 million , net of tax, was included in other comprehensive income for the three and six months ended June 30, 2023 related to these assets. 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 other comprehensive loss for the year ended December 31, 2022 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 June 30, 2023 and December 31, 2022. June 30, 2023 Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 11,404 $ 11,404 Impaired loans — — 16,145 16,145 Loan collateral in process of foreclosure — — 16,803 16,803 Total $ — $ — $ 44,352 $ 44,352 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 |
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 June 30, 2023 and December 31, 2022. (Dollars in thousands except per share amounts) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments $ 11,131 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 16,145 Market approach Historical and actual loss experience 0.00 % - 7.59 % Transfer prices (2) $ 0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 16,803 Market approach Transfer prices (2) $ 0.0 - 79.5 Collateral value (3) $ 0.5 - $ 43.2 (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. (Dollars in thousands except per share amounts) 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 (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. |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) $ in Millions | Jun. 30, 2023 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 ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 01, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Interest-bearing funds deposited in other banks | $ 1,300,000 | $ 1,300,000 | |||||
Non-marketable securities | 11,400,000 | 11,400,000 | $ 10,300,000 | ||||
Impact of equity investment | 2,500,000 | 2,500,000 | |||||
Past Due | 48,254,000 | 48,254,000 | 57,618,000 | ||||
Notes receivable net | 79,500 | 79,500 | |||||
Net loan origination costs | 40,400,000 | 34,900,000 | |||||
Net amortization to income | (2,400,000) | $ (2,400,000) | (4,300,000) | $ (4,500,000) | |||
Amount of loan charged off | 2,500,000 | ||||||
Principal portion of loans serviced, fair value | 15,600,000 | 15,600,000 | 19,500,000 | ||||
Loans write down to collateral value | 12,862,000 | 6,182,000 | $ 30,959,000 | 13,968,000 | |||
Intangible assets useful life | 20 years | ||||||
Goodwill | 150,803,000 | $ 150,803,000 | 150,803,000 | ||||
Intangible assets, net | 21,315,000 | 21,315,000 | 22,035,000 | ||||
Amortization of intangible assets | 363,000 | 363,000 | 723,000 | 721,000 | |||
Depreciation and amortization | 100,000 | 100,000 | 100,000 | 100,000 | |||
Amortization expense | 800,000 | 700,000 | 1,500,000 | $ 1,300,000 | |||
Deferred costs | 6,800,000 | $ 6,800,000 | $ 7,000,000 | ||||
Potential dilutive common shares excluded from EPS computation | 644,478 | 832,895 | |||||
Stock based compensation award | 296,444 | 0 | |||||
Stock based compensation award, Amount | $ 1,200,000 | $ 900,000 | $ 2,200,000 | $ 1,500,000 | |||
Stock based compensation award per diluted common share | $ 0.05 | $ 0.04 | $ 0.10 | $ 0.06 | |||
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 5,900,000 | $ 5,900,000 | |||||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 11 months | ||||||
Tier 1 leverage capital to total assets ratio | 15% | 15% | |||||
Tier 1 leverage capital ratio | 16% | 16% | |||||
Capital conversation buffer | 2.50% | 2.50% | |||||
Consumer Loan [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Increase in allowance for credit losses on loans | $ 13,700,000 | ||||||
Commercial Loans [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing receivable allowance for credit loss | $ 9,900,000 | ||||||
Restricted Shares [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stock based compensation award | 11,734 | 304,749 | 316,483 | 383,925 | 522,475 | ||
Restricted Stock Units [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stock based compensation award | 0 | 0 | |||||
Medallion Bank [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Amortization of intangible assets | $ 0 | ||||||
90+ [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Past Due | $ 6,190,000 | $ 6,190,000 | 8,903,000 | ||||
90+ [Member] | Loans [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Past Due | $ 6,200,000 | $ 6,200,000 | $ 8,900,000 | ||||
Total loans more than 90 days past due ,percentage | 0.29% | 0.29% | 0.47% | ||||
Bank Holding Company Accounting [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net premium on investment securities | $ 100,000 | $ 100,000 | |||||
Other Assets [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Equity securities, fair value | $ 1,700,000 | 1,700,000 | $ 1,700,000 | ||||
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 | 5 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 | 6 years | ||||||
Investment securities Amortized to interest income | $ 100,000 | $ 100,000 | |||||
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Net losses recognized during the period on equity securities | $ (28) | $ (63) | $ 0 | $ (154) |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | 0 | 0 | 0 | 0 |
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date | $ (28) | $ (63) | $ 0 | $ (154) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Finalized Adoption Related to the Allowance for Credit Losses on Loans (Detail) - USD ($) $ in Thousands | Jan. 01, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | $ 63,845 | |
Recreation [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 41,966 | |
Home Improvement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 11,340 | |
Commercial [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 1,049 | |
Medallion [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 9,490 | |
Strategic Partnership [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | $ 0 | |
December 31, 2022 Pre-Topic 326 Adoption | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | $ 77,557 | |
December 31, 2022 Pre-Topic 326 Adoption | Recreation [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 52,003 | |
December 31, 2022 Pre-Topic 326 Adoption | Home Improvement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 12,858 | |
December 31, 2022 Pre-Topic 326 Adoption | Commercial [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 3,206 | |
December 31, 2022 Pre-Topic 326 Adoption | Medallion [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 9,490 | |
December 31, 2022 Pre-Topic 326 Adoption | Strategic Partnership [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 0 | |
Effect of ASC 326 Adoption | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 13,712 | |
Effect of ASC 326 Adoption | Recreation [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 10,037 | |
Effect of ASC 326 Adoption | Home Improvement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 1,518 | |
Effect of ASC 326 Adoption | Commercial [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 2,157 | |
Effect of ASC 326 Adoption | Medallion [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | 0 | |
Effect of ASC 326 Adoption | Strategic Partnership [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Loans, allowance for credit loss | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments In Loans [Line Items] | ||
Intangibles assets | $ 21,315 | $ 22,035 |
Intellectual Property [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | 16,227 | 16,775 |
Contractor Relationships [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | $ 5,088 | $ 5,260 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Net income available to common stockholders | $ 14,170 | $ 13,300 | $ 29,531 | $ 23,141 |
Weighted average common shares outstanding applicable to basic EPS | 22,488,463 | 24,153,015 | 22,416,089 | 24,459,870 |
Effect of restricted stock grants | 276,420 | 184,620 | 379,924 | 204,273 |
Effect of dilutive stock options | 43,567 | 84,232 | 96,342 | 86,869 |
Effect of performance share units | 45,477 | 0 | 22,739 | 0 |
Adjusted weighted average common shares outstanding applicable to diluted EPS | 22,853,927 | 24,421,867 | 22,915,094 | 24,751,012 |
Basic net income per share | $ 0.63 | $ 0.55 | $ 1.32 | $ 0.95 |
Diluted net income per share | $ 0.62 | $ 0.54 | $ 1.29 | $ 0.93 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Accounting Policies [Abstract] | |||
Regulatory, Minimum, Leverage ratio | [1] | 0.040 | |
Regulatory, Minimum, Common equity tier 1 capital ratio | [2] | 7% | |
Regulatory, Minimum, Tier 1 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 | $ 267,700 | $ 242,049 | |
Tier 1 capital | 336,488 | 310,837 | |
Total capital | 363,589 | 334,913 | |
Average assets | 2,099,762 | 1,917,904 | |
Risk-weighted assets | $ 2,123,720 | $ 1,888,530 | |
Leverage ratio | [1] | 0.160 | 0.162 |
Common equity Tier 1 capital ratio | [2] | 0.126 | 0.128 |
Tier 1 capital ratio | [3] | 0.158 | 0.165 |
Total capital ratio | [3] | 0.171 | 0.177 |
[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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $ 6.2 million and increased the Tier 1 capital ratio by 27 basis points. |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios - (Parenthetical) (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Accounting Policies [Abstract] | |
Effects of the transition amount in capital | $ 6.2 |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 60,057 | $ 54,301 |
Gross Unrealized Gains | 0 | 13 |
Gross Unrealized Losses | (6,365) | (5,822) |
Fair Value | 53,692 | 48,492 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 46,195 | 43,286 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5,187) | (4,933) |
Fair Value | 41,008 | 38,353 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,862 | 11,015 |
Gross Unrealized Gains | 0 | 13 |
Gross Unrealized Losses | (1,178) | (889) |
Fair Value | $ 12,684 | $ 10,139 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 9,478 | |
Amortized Cost, due after five years through ten years | 9,417 | |
Amortized Cost, due after ten years | 41,162 | |
Amortized Cost | 60,057 | $ 54,301 |
Market Value, due in one year or less | 0 | |
Market Value, due after one year through five years | 9,035 | |
Market Value, due after five years through ten years | 8,240 | |
Market Value, due after ten years | 36,417 | |
Market Value, total | $ 53,692 | $ 48,492 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | $ (177) | $ (1,017) |
Fair Value, Less than Twelve Months | 11,014 | 16,949 |
Gross Unrealized Losses, Twelve Months and Over | (6,188) | (4,805) |
Fair Value, Twelve Months and Over | 42,674 | 29,525 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (90) | (731) |
Fair Value, Less than Twelve Months | 6,057 | 12,321 |
Gross Unrealized Losses, Twelve Months and Over | (5,097) | (4,202) |
Fair Value, Twelve Months and Over | 34,951 | 26,023 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (87) | (286) |
Fair Value, Less than Twelve Months | 4,957 | 4,628 |
Gross Unrealized Losses, Twelve Months and Over | (1,091) | (603) |
Fair Value, Twelve Months and Over | $ 7,723 | $ 3,502 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) - Securities | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Abstract] | ||
Number of Securities | 62 | 57 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 2,117,946 | [1] | $ 1,882,585 | [2] | ||||||||
Allowance for loan losses | (74,971) | [3] | (63,845) | [4] | $ (70,280) | [4] | $ (59,152) | [3] | $ (50,686) | [4] | $ (50,166) | [4] |
Net loans receivable | 2,082,027 | 1,853,108 | ||||||||||
Bank Holding Company Accounting [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | 2,156,998 | 1,916,953 | 1,984,180 | 1,734,621 | 1,569,441 | 1,488,924 | ||||||
Allowance for loan losses | (74,971) | (63,845) | ||||||||||
Net loans receivable | $ 2,082,027 | $ 1,853,108 | ||||||||||
Percentage of total gross loans | 100% | 100% | ||||||||||
Recreation [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 1,288,000 | [1] | $ 1,146,095 | [2] | ||||||||
Allowance for loan losses | (54,187) | (41,966) | ||||||||||
Recreation [Member] | Bank Holding Company Accounting [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 1,331,114 | $ 1,183,512 | 1,213,380 | 1,096,670 | 1,004,091 | 961,320 | ||||||
Percentage of total gross loans | 62% | 62% | ||||||||||
Home Improvement [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 731,199 | [1] | $ 628,877 | [2] | ||||||||
Allowance for loan losses | (16,447) | (11,340) | ||||||||||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 728,468 | $ 626,399 | 669,642 | 526,278 | 473,408 | 436,772 | ||||||
Percentage of total gross loans | 34% | 33% | ||||||||||
Commercial [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Allowance for loan losses | $ (2,518) | $ (1,049) | ||||||||||
Commercial [Member] | Bank Holding Company Accounting [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 92,637 | $ 92,899 | 95,329 | 96,928 | 77,867 | 76,696 | ||||||
Percentage of total gross loans | 4% | 5% | ||||||||||
Medallion [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 3,448 | [1] | $ 13,571 | [2] | ||||||||
Allowance for loan losses | (1,819) | (9,490) | ||||||||||
Medallion [Member] | Bank Holding Company Accounting [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | 3,448 | $ 13,571 | 4,059 | 14,152 | 13,849 | 14,046 | ||||||
Percentage of total gross loans | 1% | |||||||||||
Strategic Partnership [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | 1,331 | [1] | $ 572 | [2] | ||||||||
Strategic Partnership [Member] | Bank Holding Company Accounting [Member] | ||||||||||||
Student Loan Portfolio By Program [Line Items] | ||||||||||||
Total gross loans | $ 1,331 | $ 572 | $ 1,770 | $ 593 | $ 226 | $ 90 | ||||||
[1] Excludes $ 40.4 million of capitalized loan origination costs. Excludes $ 34.9 million of capitalized loan origination costs. As of June 30, 2023 and June 30, 2022 , there were no allowance for credit losses and net charge-offs related to the strategic partnership loans. Represents allowance prior to the adoption of ASU 2016-13. |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | $ 1,882,585 | |||
Net recoveries (charge-offs) | [2] | $ (3,785) | $ 707 | (15,100) | $ (2,013) |
Transfer to loan collateral in process of foreclosure, net | (4,150) | (2,757) | (10,654) | (5,797) | |
Amortization of origination costs | (4,667) | (4,670) | |||
Paid-in-kind interest | 644 | 347 | |||
Gross loans, ending balance | [3] | 2,117,946 | 2,117,946 | ||
Recreation [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 1,146,095 | |||
Transfer to loan collateral in process of foreclosure, net | (3,991) | (2,618) | (8,348) | (5,529) | |
Gross loans, ending balance | [3] | 1,288,000 | 1,288,000 | ||
Home Improvement [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 628,877 | |||
Gross loans, ending balance | [3] | 731,199 | 731,199 | ||
Medallion [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 13,571 | |||
Transfer to loan collateral in process of foreclosure, net | (159) | (139) | (2,306) | (268) | |
Gross loans, ending balance | [3] | 3,448 | 3,448 | ||
Strategic Partnership [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 572 | |||
Net recoveries (charge-offs) | 0 | 0 | |||
Gross loans, ending balance | [3] | 1,331 | 1,331 | ||
Bank Holding Company Accounting [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 1,984,180 | 1,569,441 | 1,916,953 | 1,488,924 | |
Loan originations | 346,266 | 304,953 | 573,557 | 518,680 | |
Principal payments, sales, maturities, and recoveries | (160,879) | (133,999) | (297,988) | (258,054) | |
Net recoveries (charge-offs) | (12,862) | (6,182) | (30,959) | (13,968) | |
Transfer to loan collateral in process of foreclosure, net | (4,150) | (2,757) | (10,654) | (5,797) | |
Amortization of origination costs | (2,494) | (2,551) | (4,667) | (4,670) | |
Amortization of loan premium | (150) | (300) | |||
FASB origination costs, net | 6,557 | 5,691 | 10,112 | 9,459 | |
Paid-in-kind interest | 380 | 175 | 644 | 347 | |
Gross loans, ending balance | 2,156,998 | 1,734,621 | 2,156,998 | 1,734,621 | |
Bank Holding Company Accounting [Member] | Recreation [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 1,213,380 | 1,004,091 | 1,183,512 | 961,320 | |
Loan originations | 190,007 | 170,207 | 291,688 | 284,613 | |
Principal payments, sales, maturities, and recoveries | (63,463) | (73,114) | (119,680) | (138,230) | |
Net recoveries (charge-offs) | (9,166) | (5,074) | (21,756) | (10,141) | |
Transfer to loan collateral in process of foreclosure, net | (3,991) | (2,618) | (8,348) | (5,529) | |
Amortization of origination costs | (3,159) | (2,931) | (5,918) | (5,370) | |
Amortization of loan premium | (60) | (120) | |||
FASB origination costs, net | 7,506 | 6,169 | 11,616 | 10,127 | |
Paid-in-kind interest | 0 | 0 | 0 | 0 | |
Gross loans, ending balance | 1,331,114 | 1,096,670 | 1,331,114 | 1,096,670 | |
Bank Holding Company Accounting [Member] | Home Improvement [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 669,642 | 473,408 | 626,399 | 436,772 | |
Loan originations | 117,035 | 105,172 | 212,016 | 194,992 | |
Principal payments, sales, maturities, and recoveries | (55,350) | (51,006) | (105,205) | (103,170) | |
Net recoveries (charge-offs) | (2,575) | (1,108) | (4,489) | (2,168) | |
Transfer to loan collateral in process of foreclosure, net | 0 | 0 | 0 | 0 | |
Amortization of origination costs | 665 | 380 | 1,251 | 700 | |
Amortization of loan premium | (90) | (180) | |||
FASB origination costs, net | (949) | (478) | (1,504) | (668) | |
Paid-in-kind interest | 0 | 0 | 0 | 0 | |
Gross loans, ending balance | 728,468 | 526,278 | 728,468 | 526,278 | |
Bank Holding Company Accounting [Member] | Commercial [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 95,329 | 77,867 | 92,899 | 76,696 | |
Loan originations | 4,750 | 19,272 | 7,750 | 23,672 | |
Principal payments, sales, maturities, and recoveries | (6,922) | (386) | (7,756) | (2,203) | |
Net recoveries (charge-offs) | (900) | 0 | (900) | (1,584) | |
Transfer to loan collateral in process of foreclosure, net | 0 | 0 | 0 | 0 | |
Amortization of origination costs | 0 | 0 | 0 | 0 | |
Amortization of loan premium | 0 | 0 | |||
FASB origination costs, net | 0 | 0 | 0 | 0 | |
Paid-in-kind interest | 380 | 175 | 644 | 347 | |
Gross loans, ending balance | 92,637 | 96,928 | 92,637 | 96,928 | |
Bank Holding Company Accounting [Member] | Medallion [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 4,059 | 13,849 | 13,571 | 14,046 | |
Loan originations | 1,300 | 472 | 1,923 | 564 | |
Principal payments, sales, maturities, and recoveries | (1,531) | (30) | (5,926) | (115) | |
Net recoveries (charge-offs) | (221) | 0 | (3,814) | (75) | |
Transfer to loan collateral in process of foreclosure, net | (159) | (139) | (2,306) | (268) | |
Amortization of origination costs | 0 | 0 | 0 | 0 | |
Amortization of loan premium | 0 | 0 | |||
FASB origination costs, net | 0 | 0 | 0 | 0 | |
Paid-in-kind interest | 0 | 0 | 0 | ||
Gross loans, ending balance | 3,448 | 14,152 | 3,448 | 14,152 | |
Bank Holding Company Accounting [Member] | Strategic Partnership [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 1,770 | 226 | 572 | 90 | |
Loan originations | 33,174 | 9,830 | 60,180 | 14,839 | |
Principal payments, sales, maturities, and recoveries | (33,613) | (9,463) | (59,421) | (14,336) | |
Net recoveries (charge-offs) | 0 | 0 | 0 | 0 | |
Transfer to loan collateral in process of foreclosure, net | 0 | 0 | 0 | 0 | |
Amortization of origination costs | 0 | 0 | 0 | 0 | |
Amortization of loan premium | 0 | 0 | |||
FASB origination costs, net | 0 | 0 | 0 | ||
Paid-in-kind interest | 0 | 0 | 0 | 0 | |
Gross loans, ending balance | $ 1,331 | $ 593 | $ 1,331 | $ 593 | |
[1] Excludes $ 34.9 million of capitalized loan origination costs. As of June 30, 2023 , cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 231.4 million, some of which may represent collection opportunities for the Company. Excludes $ 40.4 million of capitalized loan origination costs. |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses - beginning balance | [1] | $ 70,280 | $ 50,686 | $ 63,845 | $ 50,166 |
Total charge-offs | (12,862) | (6,182) | (30,959) | (13,968) | |
Total recoveries | 9,077 | 6,889 | 15,859 | 11,955 | |
Net recoveries (charge-offs) | [2] | (3,785) | 707 | (15,100) | (2,013) |
Provision (benefit) for credit losses | 8,476 | 7,759 | 12,514 | 10,999 | |
Allowance for credit losses - ending balance | [3] | 74,971 | 59,152 | 74,971 | 59,152 |
Accounting Standards Update 2016-13 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses - beginning balance | 0 | 0 | 13,712 | 0 | |
Recreation [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses - beginning balance | 41,966 | ||||
Total charge-offs | (9,166) | (5,074) | (21,756) | (10,141) | |
Total recoveries | 3,282 | 3,615 | 6,053 | 7,125 | |
Allowance for credit losses - ending balance | 54,187 | 54,187 | |||
Home Improvement [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses - beginning balance | 11,340 | ||||
Total charge-offs | (2,575) | (1,108) | (4,489) | (2,168) | |
Total recoveries | 627 | 585 | 1,259 | 1,144 | |
Allowance for credit losses - ending balance | 16,447 | 16,447 | |||
Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses - beginning balance | 1,049 | ||||
Total charge-offs | (900) | 0 | (900) | (1,584) | |
Total recoveries | 0 | 13 | 10 | 47 | |
Allowance for credit losses - ending balance | 2,518 | 2,518 | |||
Medallion [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses - beginning balance | 9,490 | ||||
Total charge-offs | (221) | 0 | (3,814) | (75) | |
Total recoveries | 5,168 | $ 2,676 | 8,537 | $ 3,639 | |
Allowance for credit losses - ending balance | $ 1,819 | $ 1,819 | |||
[1] Represents allowance prior to the adoption of ASU 2016-13. As of June 30, 2023 , cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 231.4 million, some of which may represent collection opportunities for the Company. As of June 30, 2023 and June 30, 2022 , there were no allowance for credit losses and net charge-offs related to the strategic partnership loans. |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | [1] | Mar. 31, 2022 | Dec. 31, 2021 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Cumulative charges of loans and loan collateral process of foreclosure | $ 16,803 | [1] | $ 26,974 | $ 16,803 | [1] | $ 26,974 | $ 20,467 | $ 21,819 | $ 33,834 | $ 37,430 | ||
Net charge-offs | [2] | 3,785 | $ (707) | 15,100 | 2,013 | |||||||
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 loan collateral process of foreclosure | $ 231,400 | $ 231,400 | ||||||||||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $ 6.8 million as of June 30, 2023 and $ 7.5 million as of December 31, 2022 . As of June 30, 2023 , cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $ 231.4 million, some of which may represent collection opportunities for the Company. |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Summary of Current Period Gross Charge Offs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Past Due [Line Items] | ||
2023 | $ 83 | $ 83 |
2022 | 5,116 | 9,628 |
2021 | 2,817 | 6,515 |
2020 | 943 | 2,757 |
2019 | 1,909 | 3,594 |
Prior | 1,994 | 8,382 |
Total | 12,862 | 30,959 |
Recreation [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2023 | 44 | 44 |
2022 | 3,568 | 7,176 |
2021 | 2,344 | 5,414 |
2020 | 785 | 2,456 |
2019 | 918 | 2,472 |
Prior | 1,507 | 4,194 |
Total | 9,166 | 21,756 |
Home Improvement [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2023 | 39 | 39 |
2022 | 1,548 | 2,452 |
2021 | 473 | 1,101 |
2020 | 158 | 301 |
2019 | 91 | 222 |
Prior | 266 | 374 |
Total | 2,575 | 4,489 |
Commercial Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 900 | 900 |
Prior | 0 | 0 |
Total | 900 | 900 |
Medallion [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 221 | 3,814 |
Total | $ 221 | $ 3,814 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Summary of Allowance for Credit Losses by Type (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | [2] | Dec. 31, 2022 | Jun. 30, 2022 | [1] | Mar. 31, 2022 | [2] | Dec. 31, 2021 | [2] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||
Amount | $ 74,971 | [1] | $ 70,280 | $ 63,845 | [2] | $ 59,152 | $ 50,686 | $ 50,166 | ||||
Percentage of Allowance | 100% | 100% | ||||||||||
Allowance as a Percent of Loan Category | 3.48% | 3.33% | ||||||||||
Allowance as a Percent of Nonaccrual | 464.36% | 198.69% | ||||||||||
Recreation [Member] | ||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||
Amount | $ 54,187 | $ 41,966 | ||||||||||
Percentage of Allowance | 72% | 66% | ||||||||||
Allowance as a Percent of Loan Category | 4.07% | 3.55% | ||||||||||
Allowance as a Percent of Nonaccrual | 335.63% | 130.60% | ||||||||||
Home Improvement [Member] | ||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||
Amount | $ 16,447 | $ 11,340 | ||||||||||
Percentage of Allowance | 22% | 18% | ||||||||||
Allowance as a Percent of Loan Category | 2.26% | 1.81% | ||||||||||
Allowance as a Percent of Nonaccrual | 101.87% | 35.29% | ||||||||||
Commercial [Member] | ||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||
Amount | $ 2,518 | $ 1,049 | ||||||||||
Percentage of Allowance | 3% | 1% | ||||||||||
Allowance as a Percent of Loan Category | 2.72% | 1.13% | ||||||||||
Allowance as a Percent of Nonaccrual | 15.60% | 3.26% | ||||||||||
Medallion [Member] | ||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||
Amount | $ 1,819 | $ 9,490 | ||||||||||
Percentage of Allowance | 3% | 15% | ||||||||||
Allowance as a Percent of Loan Category | 52.76% | 69.93% | ||||||||||
Allowance as a Percent of Nonaccrual | 11.27% | 29.53% | ||||||||||
[1] As of June 30, 2023 and June 30, 2022 , there were no allowance for credit losses and net charge-offs related to the strategic partnership loans. Represents allowance prior to the adoption of ASU 2016-13. |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Total nonaccrual loans | $ 16,145 | $ 32,133 |
Interest foregone quarter to date | 237 | 231 |
Amount of foregone interest applied to principal in the quarter | 63 | 94 |
Interest foregone year to date | 507 | 1,267 |
Amount of foregone interest applied to principal for the year | 133 | 375 |
Interest foregone life-to-date | 1,655 | 2,419 |
Amount of foregone interest applied to principal life-to-date | $ 789 | $ 1,204 |
Percentage of nonaccrual loans to gross loan portfolio | 0.70% | 1.70% |
Percentage of allowance for credit losses to nonaccrual loans | 464.40% | 198.70% |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 2,156,998 | $ 1,916,953 |
Percentage of Nonperforming to Total | 0.75% | 1.70% |
Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 2,140,853 | $ 1,884,403 |
Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 16,145 | 32,550 |
Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,331,114 | $ 1,183,512 |
Percentage of Nonperforming to Total | 0.40% | 0.82% |
Recreation [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,325,745 | $ 1,173,846 |
Recreation [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 5,369 | 9,666 |
Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 728,468 | $ 626,399 |
Percentage of Nonperforming to Total | 0.16% | 0.09% |
Home Improvement [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 727,332 | $ 625,820 |
Home Improvement [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 1,136 | 579 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 92,637 | $ 92,899 |
Percentage of Nonperforming to Total | 6.68% | 9.40% |
Commercial [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 86,445 | $ 84,165 |
Commercial [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 6,192 | 8,734 |
Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 3,448 | $ 13,571 |
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 | 3,448 | 13,571 |
Strategic Partnership [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,331 | $ 572 |
Percentage of Nonperforming to Total | 0% | 0% |
Strategic Partnership [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,331 | $ 572 |
Strategic Partnership [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 0 | $ 0 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | $ 16,145 | $ 16,145 | $ 32,550 | ||
Unpaid principal balance, With related allowance | 16,934 | 16,934 | 33,754 | ||
Related Allowance, With related allowance | 2,536 | 2,536 | 10,806 | ||
Average Investment Recorded, With related allowance | 16,706 | $ 35,265 | 16,889 | $ 36,012 | |
Interest Income Recognized, With related allowance | 8 | 119 | 10 | 223 | |
Recreation [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 5,369 | 5,369 | 9,666 | ||
Unpaid principal balance, With related allowance | 5,369 | 5,369 | 9,666 | ||
Related Allowance, With related allowance | 219 | 219 | 343 | ||
Average Investment Recorded, With related allowance | 5,230 | 5,197 | 5,208 | 5,265 | |
Interest Income Recognized, With related allowance | 7 | 119 | 9 | 223 | |
Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 1,136 | 1,136 | 579 | ||
Unpaid principal balance, With related allowance | 1,136 | 1,136 | 579 | ||
Related Allowance, With related allowance | 26 | 26 | 10 | ||
Average Investment Recorded, With related allowance | 1,138 | 396 | 1,129 | 388 | |
Interest Income Recognized, With related allowance | 1 | 0 | 1 | 0 | |
Commercial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 6,192 | 6,192 | 8,734 | ||
Unpaid principal balance, With related allowance | 6,301 | 6,301 | 8,823 | ||
Related Allowance, With related allowance | 472 | 472 | 963 | ||
Average Investment Recorded, With related allowance | 5,652 | 13,577 | 5,644 | 13,561 | |
Interest Income Recognized, With related allowance | 0 | 0 | 0 | 0 | |
Medallion [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 3,448 | 3,448 | 13,571 | ||
Unpaid principal balance, With related allowance | 4,128 | 4,128 | 14,686 | ||
Related Allowance, With related allowance | 1,819 | 1,819 | $ 9,490 | ||
Average Investment Recorded, With related allowance | 4,686 | 16,095 | 4,908 | 16,798 | |
Interest Income Recognized, With related allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | $ 48,254 | $ 57,618 | ||
Total | 2,117,946 | [1] | 1,882,585 | [2] |
Accruing | 0 | 0 | ||
Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 2,069,692 | 1,824,967 | ||
30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 30,943 | 35,189 | ||
60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 11,121 | 13,526 | ||
91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 6,190 | 8,903 | ||
Recreation [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 42,880 | 51,023 | ||
Total | 1,288,000 | [1] | 1,146,095 | [2] |
Accruing | 0 | 0 | ||
Recreation [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,245,120 | 1,095,072 | ||
Recreation [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 28,438 | 31,781 | ||
Recreation [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 9,464 | 11,877 | ||
Recreation [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 4,978 | 7,365 | ||
Home Improvement [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 5,300 | 5,101 | ||
Total | 731,199 | [1] | 628,877 | [2] |
Accruing | 0 | 0 | ||
Home Improvement [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 725,899 | 623,776 | ||
Home Improvement [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 2,505 | 3,266 | ||
Home Improvement [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,657 | 1,256 | ||
Home Improvement [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,138 | 579 | ||
Commercial Loans [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 74 | 74 | ||
Total | 93,968 | [1] | 93,470 | [2] |
Accruing | 0 | 0 | ||
Commercial Loans [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 93,894 | 93,396 | ||
Commercial Loans [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Commercial Loans [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Commercial Loans [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 74 | 74 | ||
Medallion [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 1,420 | ||
Total | 3,448 | [1] | 13,571 | [2] |
Accruing | 0 | 0 | ||
Medallion [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 3,448 | 12,151 | ||
Medallion [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 142 | ||
Medallion [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 393 | ||
Medallion [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 885 | ||
Strategic Partnership [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Total | 1,331 | [1] | 572 | [2] |
Accruing | 0 | 0 | ||
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,331 | 572 | ||
Strategic Partnership [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Strategic Partnership [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 0 | 0 | ||
Strategic Partnership [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | $ 0 | $ 0 | ||
[1] Excludes $ 40.4 million of capitalized loan origination costs. Excludes $ 34.9 million of capitalized loan origination costs. |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Capitalized loan origination costs | $ 40.4 | $ 34.9 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Additional Information (Detail) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) TDR | Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Weighted average loan-to-value ratio | 196% | 339% | |
Medallion [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Number of loans modified as TDRs in default in previous 12 months | 0 | ||
Recreation [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Number of loans modified as TDRs in default in previous 12 months | 20 | ||
Number of loans modified as TDRs in default, investment value | $ | $ 0.2 | ||
Commercial Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Number of loans modified as TDRs in default in previous 12 months | 0 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Summary of TDRs (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) TDR | Jun. 30, 2022 USD ($) TDR | |
Recreation [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 12 | 22 |
Pre- Modification Investment | $ 147 | $ 276 |
Post- Modification Investment | $ 147 | $ 276 |
Medallion [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 0 | 2 |
Pre- Modification Investment | $ 0 | $ 252 |
Post- Modification Investment | $ 0 | $ 252 |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans collateral in process of foreclosure - beginning balance | $ 20,467 | $ 33,834 | $ 21,819 | [1] | $ 37,430 | |
Transfer from loans, net | 4,150 | 2,757 | 10,654 | 5,797 | ||
Sales | (3,136) | (4,145) | (5,346) | (6,513) | ||
Cash payments received | (2,645) | (4,381) | (5,962) | (7,253) | ||
Collateral valuation adjustments | (2,033) | (1,091) | (4,362) | (2,487) | ||
Loans collateral in process of foreclosure - ending balance | 16,803 | [1] | 26,974 | 16,803 | [1] | 26,974 |
Recreation [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans collateral in process of foreclosure - beginning balance | 1,461 | 1,369 | 1,376 | 1,720 | ||
Transfer from loans, net | 3,991 | 2,618 | 8,348 | 5,529 | ||
Sales | (2,583) | (2,146) | (4,778) | (4,398) | ||
Cash payments received | (128) | 0 | (128) | 0 | ||
Collateral valuation adjustments | (2,012) | (963) | (4,089) | (1,973) | ||
Loans collateral in process of foreclosure - ending balance | 729 | 878 | 729 | 878 | ||
Medallion [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans collateral in process of foreclosure - beginning balance | 19,006 | 32,465 | 20,443 | 35,710 | ||
Transfer from loans, net | 159 | 139 | 2,306 | 268 | ||
Sales | (553) | (1,999) | (568) | (2,115) | ||
Cash payments received | (2,517) | (4,381) | (5,834) | (7,253) | ||
Collateral valuation adjustments | (21) | (128) | (273) | (514) | ||
Loans collateral in process of foreclosure - ending balance | $ 16,074 | $ 26,096 | $ 16,074 | $ 26,096 | ||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $ 6.8 million as of June 30, 2023 and $ 7.5 million as of December 31, 2022 . |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
2024 | $ 746,617 | ||
2025 | 575,703 | ||
2026 | 328,645 | ||
2027 | 202,831 | ||
2028 | 147,527 | ||
Thereafter | 63,500 | ||
Long term debt | [1] | $ 2,064,823 | $ 1,832,184 |
Interest Rate | [2] | 3.12% | |
Deposits [Member] | |||
Debt Instrument [Line Items] | |||
2024 | [3] | $ 678,737 | |
2025 | [3] | 563,203 | |
2026 | [3] | 281,895 | |
2027 | [3] | 198,331 | |
2028 | [3] | 93,777 | |
Thereafter | [3] | 0 | |
Long term debt | [1],[3] | $ 1,815,943 | 1,609,672 |
Interest Rate | [2],[3] | 2.70% | |
Federal reserve discount window [Member] | |||
Debt Instrument [Line Items] | |||
2024 | $ 28,000 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Long term debt | [1] | $ 28,000 | 0 |
Interest Rate | [2] | 5.25% | |
Privately Placed Notes [Member] | |||
Debt Instrument [Line Items] | |||
2024 | $ 36,000 | ||
2025 | 0 | ||
2026 | 31,250 | ||
2027 | 0 | ||
2028 | 53,750 | ||
Thereafter | 0 | ||
Long term debt | [1] | $ 121,000 | 121,000 |
Interest Rate | [2] | 7.66% | |
Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2024 | $ 3,880 | ||
2025 | 12,500 | ||
2026 | 15,500 | ||
2027 | 4,500 | ||
2028 | 0 | ||
Thereafter | 30,500 | ||
Long term debt | [1] | $ 66,880 | 68,512 |
Interest Rate | [2] | 3.13% | |
Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
2024 | $ 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 33,000 | ||
Long term debt | [1] | $ 33,000 | $ 33,000 |
Interest Rate | [2] | 7.62% | |
[1] Excludes deferred financing costs of $ 6.8 million and $ 7.0 million as of June 30, 2023 and December 31, 2022 . Weighted average contractual rate as of June 30, 2023 . Balance excludes $ 1.5 million and $ 1.3 million of strategic partner reserve deposits as of June 30, 2023 and December 31, 2022 . |
Funds Borrowed - Schedule of _2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Deferred costs | $ 6.8 | $ 7 |
Reserve Deposits | $ 1.5 | $ 1.3 |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Feb. 28, 2021 | Dec. 31, 2007 | Jun. 30, 2007 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2019 | Dec. 31, 2022 | Apr. 30, 2021 | Mar. 15, 2021 | Dec. 31, 2020 | Aug. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||||||||||||||
Listing services deposits from other financial institutions. | $ 12,300,000 | $ 12,300,000 | $ 12,400,000 | |||||||||||||
Retail savings deposit balance | 23,900,000 | 23,900,000 | ||||||||||||||
Aggregate principal amount | $ 6,000,000 | |||||||||||||||
Maturity date | Feb. 28, 2026 | |||||||||||||||
Gain loss on sales of loans net | $ 1,306,000 | $ 2,667,000 | $ 3,161,000 | $ 4,543,000 | ||||||||||||
Issue of common stock | 28,947,171 | 28,947,171 | 28,663,827 | |||||||||||||
Preferred securities repurchased from a third party investor | $ 2,000,000 | |||||||||||||||
Long-term debt | [1] | $ 178,128,000 | $ 178,128,000 | $ 214,320,000 | ||||||||||||
Investment securities pledged | 53,692,000 | $ 53,692,000 | $ 48,492,000 | |||||||||||||
Preferred Securities [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maturity date | Sep. 30, 2037 | |||||||||||||||
Sale of preferred securities | $ 35,000,000 | |||||||||||||||
Issue of common stock | 1,083 | |||||||||||||||
Preferred securities outstanding | $ 33,000,000 | $ 33,000,000 | ||||||||||||||
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 | 26 basis points | |||||||||||||||
Preferred Securities [Member] | Unsecured Debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount of unsecured junior subordinated notes | $ 36,100,000 | |||||||||||||||
Small Business Administration Debentures and Borrowings [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate Percentage | 3.25% | 3.25% | ||||||||||||||
Loan commitment term | 4 years 6 months | |||||||||||||||
Commitment fee percentage | 1% | |||||||||||||||
Principal amount of loan | $ 34,000,000 | |||||||||||||||
Extended maturity date | Apr. 30, 2024 | |||||||||||||||
Debt instrument outstanding amount | $ 66,900,000 | $ 66,900,000 | ||||||||||||||
Debt instrument remaining amount | 1,400,000 | 1,400,000 | ||||||||||||||
Borrowings | 66,900,000 | 66,900,000 | ||||||||||||||
FSVC's [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of loan | $ 33,500,000 | |||||||||||||||
Federal reserve discount window [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument outstanding amount | 28,000,000 | 28,000,000 | ||||||||||||||
Investment securities pledged | 38,900,000 | $ 38,900,000 | ||||||||||||||
Pledged securities advance rate of fair value | 100% | |||||||||||||||
Borrowing capacity | 38,700,000 | $ 38,700,000 | ||||||||||||||
Borrowings | 28,000,000 | $ 28,000,000 | ||||||||||||||
7.25% Unsecured Senior Notes Due February 2026 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 3,000,000 | $ 3,300,000 | ||||||||||||||
7.50% Unsecured Senior Notes Due December 2027 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 11,700,000 | |||||||||||||||
Privately Placed Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 25,000,000 | $ 8,500,000 | $ 33,600,000 | $ 30,000,000 | ||||||||||||
Debt instrument interest rate Percentage | 7.25% | 7.50% | 8.25% | |||||||||||||
Maturity date | 2024 | |||||||||||||||
Maturity date | Dec. 31, 2027 | |||||||||||||||
Gain loss on sales of loans net | $ 4,100,000 | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Time deposits | $ 250,000 | $ 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 $ 2.9 million and $ 3.2 million of deferred financing costs as of June 30, 2023 and December 31, 2022 . 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 | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Three months or less | $ 162,219 |
Over three months through six months | 186,757 |
Over six months through one year | 329,761 |
Over one year | 1,138,754 |
Total deposits | $ 1,817,491 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease costs | $ 597 | $ 590 | $ 1,195 | $ 1,179 |
Operating cash flows from operating leases | 603 | 435 | 1,226 | 1,080 |
Right-of-use asset obtained in exchange for lease liability | $ (56) | $ (40) | $ (111) | $ (85) |
Leases - Schedule of Breakout o
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
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 | $ 9,001 | $ 9,723 |
Other current liabilities | $ 2,188 | $ 2,239 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities | Operating lease liabilities |
Operating lease liabilities | $ 7,629 | $ 8,408 |
Total operating lease liabilities | $ 9,817 | $ 10,647 |
Weighted average remaining lease term | 5 years 1 month 6 days | 5 years 6 months |
Weighted average discount rate | 5.59% | 5.66% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remainder of 2023 | $ 1,250 | |
2024 | 2,508 | |
2025 | 2,492 | |
2026 | 2,440 | |
2027 | 1,212 | |
Thereafter | 1,290 | |
Total lease payments | 11,192 | |
Less imputed interest | 1,375 | |
Total operating lease liabilities | $ 9,817 | $ 10,647 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles | $ (43,215) | $ (43,397) | |
Provision for credit losses | 10,913 | 9,945 | |
Net operating loss carryforwards | [1] | 3,730 | 3,730 |
Accrued expenses, compensation, and other assets | 3,601 | 3,819 | |
Unrealized gains on other investments | 426 | 1,445 | |
Total deferred tax liability | (24,545) | (24,458) | |
Valuation allowance | (2,295) | (2,295) | |
Deferred tax liability, net | $ (26,840) | $ (26,753) | |
[1] As of June 30, 2023 , 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 as of June 30, 2023 . |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
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 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current | ||||
Federal | $ 3,873 | $ 984 | $ 6,456 | $ 1,488 |
State | 1,175 | 447 | 1,964 | 769 |
Deferred | ||||
Federal | 204 | 2,378 | 2,450 | 5,598 |
State | 220 | 1,047 | 984 | 1,832 |
Net provision for income taxes | $ 5,472 | $ 4,856 | $ 11,854 | $ 9,687 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Statutory Federal income tax provision at 21% | $ 4,442 | $ 4,130 | $ 9,326 | $ 7,529 |
State and local income taxes, net of federal income tax | 869 | 808 | 1,824 | 1,473 |
Non deductible expenses | 19 | 362 | 1,076 | 1,075 |
Other | 142 | (444) | (372) | (390) |
Total income tax provision | $ 5,472 | $ 4,856 | $ 11,854 | $ 9,687 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal income tax provision percentage | 21% | 21% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 15, 2018 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 29, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option outstanding | 983,986 | [1] | 992,072 | 983,986 | [1] | 1,061,849 | 1,111,687 | |||
Stock option exercisable | 721,726 | 721,726 | ||||||||
Unvested shares under restricted common stock plan | 262,260 | 262,260 | 262,260 | 513,423 | ||||||
Intrinsic value of options vested | $ 0.4 | $ 0.4 | ||||||||
Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding, unvested restricted stock units | 157,447 | 157,447 | ||||||||
Number of shares outstanding, vested restricted stock units | 157,447 | 157,447 | ||||||||
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 | |||||||||
Weighted average grant price, granted | $ 6.75 | |||||||||
Restricted Shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding, unvested restricted stock units | 917,734 | [2] | 906,204 | 917,734 | [2] | 857,288 | 493,326 | |||
Weighted average fair value of options granted | $ 0 | $ 0 | ||||||||
Number of shares, granted | 11,734 | 304,749 | 316,483 | 383,925 | 522,475 | |||||
Weighted average grant price, granted | $ 7.67 | $ 8.08 | $ 7.46 | |||||||
PSU [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding, performance share units | 296,444 | 296,444 | ||||||||
Number of shares, granted | 296,444 | 296,444 | ||||||||
Weighted average grant price, granted | $ 6.08 | $ 6.08 | ||||||||
Maximum [Member] | PSU [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting rights, percentage | 200% | |||||||||
Minimum [Member] | PSU [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting rights, percentage | 0% | |||||||||
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 | 5,710,968 | ||||||||
Shares were rolled into the 2018 Plan | 2,408,252 | 2,408,252 | ||||||||
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding, vested restricted stock units | 0 | 0 | ||||||||
2018 Restricted Stock Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unvested shares under restricted common stock plan | 917,734 | 917,734 | ||||||||
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 | 800,000 | ||||||||
Number of additional shares available for issuance | 0 | 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 | 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 | 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 of outstanding options , which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $ 1.4 million for outstanding options and $ 1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023 The aggregate fair value of the restricted stock was $ 7.3 million as of June 30, 2023 . The remaining vesting period was 2.6 years at June 30, 2023 . |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options beginning balance | 992,072 | 1,061,849 | 1,111,687 | |||
Granted | 0 | 0 | 0 | |||
Cancelled | (7,803) | (25,194) | (26,093) | |||
Exercised | (283) | [1] | (44,583) | [1] | (23,745) | |
Number of options ending balance | 983,986 | [2] | 992,072 | 1,061,849 | ||
Options vested | 721,726 | 548,426 | ||||
Exercise price per share, lower range limit beginning balance | $ 2.14 | $ 2.14 | $ 2.14 | |||
Exercise price per share, upper range limit beginning balance | 9.38 | [2] | 9.38 | 12.55 | ||
Exercise price per share, granted | 0 | 0 | 0 | |||
Exercise price per share, exercised | [1] | 4.89 | ||||
Exercise price per share, lower range limit ending balance | 2.14 | [2] | 2.14 | 2.14 | ||
Exercise price per share, upper range limit ending balance | 9.38 | [2] | 9.38 | |||
Exercise price per share, option Vested upper range limit | 9.38 | 9.38 | ||||
Exercise price per share, option Vested lower range limit | 2.14 | 2.14 | ||||
Weighted average exercise price, beginning balance | 6.53 | 6.51 | 6.41 | |||
Weighted average exercise price, granted | 0 | 0 | 0 | |||
Weighted average exercise price, cancelled | 6.31 | 6.97 | 7.08 | |||
Weighted average exercise price, exercised | 4.89 | [1] | 6.55 | [1] | 6.51 | |
Weighted average exercise price, ending balance | 6.50 | [2] | 6.53 | 6.51 | ||
Weighted average exercise price, options vested | 6.50 | 6.51 | ||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share, cancelled | 4.89 | 4.89 | 4.89 | |||
Exercise price per share, exercised | 4.89 | [1] | 4.89 | |||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share, cancelled | $ 7.25 | 9.38 | 12.55 | |||
Exercise price per share, exercised | $ 7.25 | [1] | $ 7.25 | |||
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $ 0.1 million for the three and six months ended June 30, 2023 and was $ 0.1 million for the year ended December 31, 2022 . The aggregate intrinsic value of outstanding options , which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $ 1.4 million for outstanding options and $ 1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023 |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Aggregate intrinsic value for option exercised | $ 0.1 | ||
Aggregate intrinsic value of option outstanding | $ 1.4 | $ 1.4 | |
Aggregate intrinsic value of option vested | 1 | $ 1 | |
Remaining contractual life of option vested | 6 years 4 months 24 days | ||
Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Aggregate intrinsic value for option exercised | $ 0.1 | $ 0.1 |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||||
Number of options beginning balance | 262,260 | 513,423 | 513,423 | |
Number of options, granted | 0 | 0 | 0 | |
Number of options, cancelled | 0 | (2,951) | ||
Number of options, vested | 0 | (248,212) | ||
Number of options ending balance | 262,260 | 262,260 | 262,260 | 513,423 |
Exercise price per share beginning balance, Lower limit | $ 4.89 | $ 4.89 | $ 4.89 | |
Exercise price per share beginning balance, Upper limit | 7.25 | 7.25 | 7.25 | |
Exercise price per share, Cancelled, Lower limit | 4.89 | |||
Exercise price per share, Cancelled, Upper limit | 0 | 7.25 | ||
Exercise price per share, Vested, Lower limit | 4.89 | |||
Exercise price per share, Vested, Upper limit | 0 | 7.25 | ||
Exercise price per share ending balance, Lower limit | 4.89 | 4.89 | 4.89 | $ 4.89 |
Exercise price per share ending balance, Upper limit | 7.25 | 7.25 | 7.25 | 7.25 |
Weighted average exercise price | 6.49 | 6.52 | 6.52 | |
Weighted average exercise price, cancelled | 0 | 5.53 | ||
Weighted average exercise price, vested | 0 | 6.55 | ||
Weighted average exercise price | $ 6.49 | $ 6.49 | $ 6.49 | $ 6.52 |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant price per share, cancelled, lower limit | $ 4.89 | |||||||
Grant price per share, cancelled, upper limit | $ 0 | $ 7.25 | ||||||
Restricted Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares, beginning balance | 906,204 | 857,288 | 857,288 | 493,326 | 493,326 | |||
Number of shares, granted | 11,734 | 304,749 | 316,483 | 383,925 | 522,475 | |||
Number of shares, cancelled | (204) | (9,843) | (29,373) | |||||
Number of shares, vested | 0 | [1] | (245,990) | (129,140) | [1] | |||
Number of shares, ending balance | 917,734 | [2] | 906,204 | 917,734 | [2] | 857,288 | ||
Grant price per share, lower range limit beginning balance | $ 4.89 | $ 4.89 | $ 4.89 | $ 4.89 | $ 4.89 | |||
Grant price per share, upper range limit beginning balance | 8.40 | 7.25 | 7.25 | 7.25 | 7.25 | |||
Grant price per share, granted, lower limit | 6.86 | |||||||
Grant price per share, granted, upper limit | 7.67 | 8.08 | 7.68 | |||||
Grant price per share, cancelled, lower limit | 4.89 | 4.89 | ||||||
Grant price per share, cancelled, upper limit | 6.86 | 8.40 | 8.40 | |||||
Grant price per share, vested, lower limit | 4.89 | 4.89 | [1] | |||||
Grant price per share, vested, upper limit | 0 | [1] | 7.68 | 7.25 | [1] | |||
Grant price per share, lower range limit ending balance | 4.89 | [2] | 4.89 | 4.89 | [2] | 4.89 | ||
Grant price per share, upper range limit ending balance | 8.40 | [2] | 8.40 | 8.40 | [2] | 7.25 | ||
Weighted average grant price beginning balance | 7.58 | 7.27 | 7.27 | $ 6.87 | 6.87 | |||
Weighted average grant price, granted | 7.67 | 8.08 | 7.46 | |||||
Weighted average grant price, cancelled | 6.86 | 7.18 | 7.32 | |||||
Weighted average grant price, vested | 0 | [1] | 7.12 | 6.53 | [1] | |||
Weighted average grant price, ending balance | $ 7.59 | [2] | $ 7.58 | $ 7.59 | [2] | $ 7.27 | ||
[1] The aggregate fair value of the restricted stock vested was $ 2.1 million for the six months ended June 30, 2023 and was $ 1.0 million for the year ended December 31, 2022 . The aggregate fair value of the restricted stock was $ 7.3 million as of June 30, 2023 . The remaining vesting period was 2.6 years at June 30, 2023 . |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate fair value of restricted stock vested | $ 2.1 | $ 1 |
Aggregate fair value of restricted stock outstanding | $ 7.3 | |
Remaining vesting period of restricted stock | 2 years 7 months 6 days |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2023 Segment | Dec. 31, 2022 | ||
Segment Reporting Disclosure [Line Items] | |||
Number of business segments | 5 | ||
Number of operating segments | 4 | ||
Number of non-operating segments | 1 | ||
Capital ratios for operating segments | [1] | 0.126 | 0.128 |
Roofs [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 41% | ||
Swimming Pools [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 19% | ||
Windows [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 13% | ||
Other Product Lines [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 10% | ||
Other Product Lines [Member] | Home Improvement [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 10% | ||
Manufacturing [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 48% | ||
Wholesale Trade [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 13% | ||
Construction [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 12% | ||
Administrative And Support Services [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 11% | ||
Texas [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 15% | ||
Texas [Member] | Home Improvement [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 10% | ||
Florida [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 10% | ||
Florida [Member] | Home Improvement [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 10% | ||
Other States [Member] | |||
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 | 59% | ||
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] | Other Product Lines [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Aggregate percentage of loans lending | 10% | ||
Commercial Lending Segment | Other Product Lines [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 10% | ||
Commercial Lending Segment | Texas [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 11% | ||
Commercial Lending Segment | California [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 23% | ||
Commercial Lending Segment | Minnesota | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 15% | ||
Commercial Lending Segment | Illinois | |||
Segment Reporting Disclosure [Line Items] | |||
Loan outstanding percent | 12% | ||
Commercial Lending Segment | Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Other Product Lines [Member] | |||
Segment Reporting Disclosure [Line Items] | |||
Aggregate percentage of loans lending | 10% | ||
[1] Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Total interest income | $ 61,726 | $ 47,111 | $ 117,568 | $ 90,414 | |||||||
Total interest expense | 15,035 | 8,230 | 27,275 | 15,605 | |||||||
Net interest income (loss) | 46,691 | 38,881 | 90,293 | 74,809 | |||||||
Provision (benefit) for credit losses | 8,476 | 7,759 | 12,514 | 10,999 | |||||||
Net interest income (loss) after loss provision | 38,215 | 31,122 | 77,779 | 63,810 | |||||||
Other income (expense), net | (17,061) | (11,455) | (33,370) | (27,958) | |||||||
Income before income taxes | 21,154 | 19,667 | 44,409 | 35,852 | |||||||
Income tax (provision) benefit | (5,472) | (4,856) | (11,854) | (9,687) | |||||||
Net income (loss) after taxes | 15,682 | $ 16,873 | 14,811 | $ 11,353 | 32,555 | 26,165 | |||||
Income attributable to the non-controlling interest | 1,512 | 1,511 | 3,024 | 3,024 | |||||||
Total net income attributable to Medallion Financial Corp. | 14,170 | 13,300 | 29,531 | 23,141 | |||||||
Balance Sheet Data | |||||||||||
Total loans | 2,082,027 | 2,082,027 | $ 1,853,108 | ||||||||
Loans | 2,156,998 | 1,734,621 | 2,156,998 | 1,734,621 | 1,916,953 | ||||||
Total assets | 2,519,137 | 2,112,131 | 2,519,137 | 2,112,131 | $ 2,259,879 | ||||||
Total funds borrowed | $ 2,066,607 | $ 1,696,005 | $ 2,066,607 | $ 1,696,005 | |||||||
Selected Financial Ratios | |||||||||||
Return on average assets | 2.60% | 2.93% | 2.79% | 2.68% | |||||||
Return on average equity | 16.52% | 16.33% | 17.49% | 14.57% | |||||||
Return on average stockholders' equity | 18.24% | 18.11% | 19.45% | 15.93% | |||||||
Interest yield | 11.59% | 10.64% | 11.01% | 10.68% | |||||||
Net interest margin, gross | 8.48% | 8.78% | 8.45% | 8.84% | |||||||
Net interest margin, net of allowance | 8.77% | 9.07% | 8.75% | 9.15% | |||||||
Reserve coverage | 3.48% | 3.41% | 3.48% | 3.41% | |||||||
Delinquency status | 0.29% | [1] | 0.25% | [2] | 0.29% | [3] | 0.25% | [4] | |||
Charge-off (recovery) ratio | 0.74% | [5] | (0.17%) | [6] | 1.51% | [7] | 0.26% | [8] | |||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Total interest income | $ 41,109 | $ 33,514 | $ 79,008 | $ 64,650 | |||||||
Total interest expense | 7,580 | 4,096 | 13,484 | 7,697 | |||||||
Net interest income (loss) | 33,529 | 29,418 | 65,524 | 56,953 | |||||||
Provision (benefit) for credit losses | 10,135 | 6,674 | 17,886 | 8,354 | |||||||
Net interest income (loss) after loss provision | 23,394 | 22,744 | 47,638 | 48,599 | |||||||
Other income (expense), net | (8,444) | (7,551) | (16,247) | (14,371) | |||||||
Income before income taxes | 14,950 | 15,193 | 31,391 | 34,228 | |||||||
Income tax (provision) benefit | (3,867) | (3,567) | (8,380) | (9,248) | |||||||
Net income (loss) after taxes | 11,083 | 11,626 | 23,011 | 24,980 | |||||||
Balance Sheet Data | |||||||||||
Total loans | 1,331,114 | 1,096,670 | 1,331,114 | 1,096,670 | |||||||
Total assets | 1,294,925 | 1,072,356 | 1,294,925 | 1,072,356 | |||||||
Total funds borrowed | $ 1,062,309 | $ 861,083 | $ 1,062,309 | $ 861,083 | |||||||
Selected Financial Ratios | |||||||||||
Return on average assets | 3.59% | 4.53% | 3.84% | 5.04% | |||||||
Return on average equity | 22.94% | 25.52% | 24.13% | 27.27% | |||||||
Interest yield | 13.03% | 12.83% | 12.93% | 12.85% | |||||||
Net interest margin, gross | 10.63% | 11.26% | 10.72% | 11.32% | |||||||
Net interest margin, net of allowance | 11.08% | 11.65% | 11.18% | 11.71% | |||||||
Reserve coverage | 4.07% | 3.44% | 4.07% | 3.44% | |||||||
Delinquency status | 0.39% | [1] | 0.36% | [2] | 0.39% | [3] | 0.36% | [4] | |||
Charge-off (recovery) ratio | 1.86% | [5] | 0.56% | [6] | 2.57% | [7] | 0.60% | [8] | |||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Total interest income | $ 15,292 | $ 10,587 | $ 28,941 | $ 20,288 | |||||||
Total interest expense | 4,194 | 1,626 | 7,473 | 2,967 | |||||||
Net interest income (loss) | 11,098 | 8,961 | 21,468 | 17,321 | |||||||
Provision (benefit) for credit losses | 3,739 | 1,697 | 6,820 | 2,902 | |||||||
Net interest income (loss) after loss provision | 7,359 | 7,264 | 14,648 | 14,419 | |||||||
Other income (expense), net | (4,386) | (3,210) | (8,379) | (6,106) | |||||||
Income before income taxes | 2,973 | 4,054 | 6,269 | 8,313 | |||||||
Income tax (provision) benefit | (769) | (975) | (1,674) | (2,246) | |||||||
Net income (loss) after taxes | 2,204 | 3,079 | 4,595 | 6,067 | |||||||
Balance Sheet Data | |||||||||||
Total loans | 728,468 | 526,278 | 728,468 | 526,278 | |||||||
Total assets | 718,383 | 521,931 | 718,383 | 521,931 | |||||||
Total funds borrowed | $ 589,335 | $ 419,102 | $ 589,335 | $ 419,102 | |||||||
Selected Financial Ratios | |||||||||||
Return on average assets | 1.28% | 2.49% | 1.39% | 2.56% | |||||||
Return on average equity | 8.19% | 14.03% | 8.76% | 13.87% | |||||||
Interest yield | 8.79% | 8.51% | 8.66% | 8.57% | |||||||
Net interest margin, gross | 6.38% | 7.20% | 6.43% | 7.32% | |||||||
Net interest margin, net of allowance | 6.53% | 7.33% | 6.57% | 7.45% | |||||||
Reserve coverage | 2.26% | 1.75% | 2.26% | 1.75% | |||||||
Delinquency status | 0.16% | [1] | 0.07% | [2] | 0.16% | [3] | 0.07% | [4] | |||
Charge-off (recovery) ratio | 1.12% | [5] | 0.42% | [6] | 0.97% | [7] | 0.43% | [8] | |||
Operating Segments [Member] | Commercial Lending [Member] | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Total interest income | $ 2,814 | $ 2,278 | $ 5,515 | $ 4,208 | |||||||
Total interest expense | 852 | 785 | 1,661 | 1,507 | |||||||
Net interest income (loss) | 1,962 | 1,493 | 3,854 | 2,701 | |||||||
Provision (benefit) for credit losses | (113) | 1,879 | 214 | 3,134 | |||||||
Net interest income (loss) after loss provision | 2,075 | (386) | 3,640 | (433) | |||||||
Other income (expense), net | (804) | 3,263 | (953) | 1,932 | |||||||
Income before income taxes | 1,271 | 2,877 | 2,687 | 1,499 | |||||||
Income tax (provision) benefit | (329) | (816) | (718) | (405) | |||||||
Net income (loss) after taxes | 942 | 2,061 | 1,969 | 1,094 | |||||||
Balance Sheet Data | |||||||||||
Total loans | 92,637 | 96,928 | 92,637 | 96,928 | |||||||
Total assets | 99,713 | 103,643 | 99,713 | 103,643 | |||||||
Total funds borrowed | $ 81,801 | $ 83,224 | $ 81,801 | $ 83,224 | |||||||
Selected Financial Ratios | |||||||||||
Return on average assets | 3.76% | 8.70% | 3.94% | 2.41% | |||||||
Return on average equity | 23.97% | 49.03% | 24.74% | 12.20% | |||||||
Interest yield | 11.87% | 10.41% | 11.71% | 10.13% | |||||||
Net interest margin, gross | 8.28% | 6.82% | 8.18% | 6.50% | |||||||
Net interest margin, net of allowance | 8.54% | 6.93% | 8.43% | 6.60% | |||||||
Reserve coverage | 2.72% | 2.81% | 2.72% | 2.81% | |||||||
Delinquency status | 0.08% | [1] | 0.08% | [2] | 0.08% | [3] | 0.08% | [4] | |||
Charge-off (recovery) ratio | 3.80% | [5] | (0.06%) | [6] | 1.89% | [7] | 3.70% | [8] | |||
Operating Segments [Member] | Medallion Lending [Member] | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Total interest income | $ 787 | $ 231 | $ 1,097 | $ 377 | |||||||
Total interest expense | 46 | 140 | 113 | 293 | |||||||
Net interest income (loss) | 741 | 91 | 984 | 84 | |||||||
Provision (benefit) for credit losses | (5,311) | (2,272) | (12,395) | (3,544) | |||||||
Net interest income (loss) after loss provision | 6,052 | 2,363 | 13,379 | 3,628 | |||||||
Other income (expense), net | 561 | (357) | 153 | (1,566) | |||||||
Income before income taxes | 6,613 | 2,006 | 13,532 | 2,062 | |||||||
Income tax (provision) benefit | (1,713) | (540) | (3,612) | (557) | |||||||
Net income (loss) after taxes | 4,900 | 1,466 | 9,920 | 1,505 | |||||||
Balance Sheet Data | |||||||||||
Total loans | 3,448 | 14,152 | 3,448 | 14,152 | |||||||
Total assets | 18,724 | 31,258 | 18,724 | 31,258 | |||||||
Total funds borrowed | $ 15,360 | $ 25,100 | $ 15,360 | $ 25,100 | |||||||
Selected Financial Ratios | |||||||||||
Return on average assets | 100.63% | 17.04% | 94.20% | 5.85% | |||||||
Return on average equity | 641.63% | 95.46% | 590.25% | 30.73% | |||||||
Interest yield | 83.55% | 6.66% | 28.80% | 5.47% | |||||||
Net interest margin, gross | 78.67% | 2.62% | 25.84% | 1.22% | |||||||
Net interest margin, net of allowance | 166.23% | 7.88% | 73.52% | 3.61% | |||||||
Reserve coverage | 52.76% | 66.61% | 52.76% | 66.61% | |||||||
Delinquency status | 0% | [1] | 0% | [2] | 0% | [3] | 0% | [4] | |||
Charge-off (recovery) ratio | (525.21%) | [5] | (77.17%) | [6] | (124.01%) | [7] | (51.66%) | [8] | |||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Total interest income | $ 1,724 | $ 501 | $ 3,007 | $ 891 | |||||||
Total interest expense | 2,363 | 1,583 | 4,544 | 3,141 | |||||||
Net interest income (loss) | (639) | (1,082) | (1,537) | (2,250) | |||||||
Provision (benefit) for credit losses | 26 | (219) | (11) | 153 | |||||||
Net interest income (loss) after loss provision | (665) | (863) | (1,526) | (2,403) | |||||||
Other income (expense), net | (3,988) | (3,600) | (7,944) | (7,847) | |||||||
Income before income taxes | (4,653) | (4,463) | (9,470) | (10,250) | |||||||
Income tax (provision) benefit | 1,206 | 1,042 | 2,530 | 2,769 | |||||||
Net income (loss) after taxes | (3,447) | (3,421) | (6,940) | (7,481) | |||||||
Balance Sheet Data | |||||||||||
Total loans | 1,331 | 593 | 1,331 | 593 | |||||||
Total assets | 387,392 | 382,943 | 387,392 | 382,943 | |||||||
Total funds borrowed | $ 317,802 | $ 307,496 | $ 317,802 | $ 307,496 | |||||||
Selected Financial Ratios | |||||||||||
Return on average assets | (3.69%) | (3.56%) | (3.70%) | (4.24%) | |||||||
Return on average equity | (22.83%) | (20.01%) | (23.24%) | (24.86%) | |||||||
[1] Loans 90 days or more past due. Loans 90 days or more past due. Loans 90 days or more past due. Loans 90 days or more past due. Negative balances indicate net recoveries for the period. Negative balances indicate net recoveries for the period. Negative balances indicate net recoveries for the period. Negative balances indicate net recoveries for the period. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Commitments And Contingencies [Abstract] | |
Employment agreements expiration description | employment agreements expire at various dates through 2027 |
Future minimum payments | $ 11.8 |
Other commitment | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Salary from related party | $ 250,950 | $ 239,000 |
Annual cash bonus | 85,000 | 75,000 |
Equity bonus | $ 50,000 | $ 45,019 |
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 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Financial assets | ||||
Equity investments | $ 11,404 | $ 10,293 | ||
Investment securities | 53,692 | 48,492 | ||
Loans receivable | 2,156,998 | 1,916,953 | $ 1,734,621 | |
Carrying Amount [Member] | ||||
Financial assets | ||||
Cash, cash equivalents and federal funds sold | [1] | 124,554 | 105,598 | |
Equity investments | 11,404 | 10,293 | ||
Investment securities | 53,692 | 48,492 | ||
Loans receivable | 2,082,027 | 1,853,108 | ||
Accrued interest receivable | [2] | 13,345 | 12,613 | |
Equity securities, fair value | [3] | 1,724 | 1,724 | |
Financial liabilities | ||||
Funds borrowed | 2,066,607 | 1,833,484 | ||
Accrued interest payable | [2] | 4,449 | 4,790 | |
Fair Value Recurring [Member] | ||||
Financial assets | ||||
Cash, cash equivalents and federal funds sold | [1] | 124,554 | 105,598 | |
Equity investments | 11,404 | 10,293 | ||
Investment securities | 53,692 | 48,492 | ||
Loans receivable | 2,082,027 | 1,853,108 | ||
Accrued interest receivable | [2] | 13,345 | 12,613 | |
Equity securities, fair value | [3] | 1,724 | 1,724 | |
Financial liabilities | ||||
Funds borrowed | 2,066,607 | 1,833,484 | ||
Accrued interest payable | [2] | $ 4,449 | $ 4,790 | |
[1] Categorized as level 1 within the fair value hierarchy, excluding $ 1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2023 and $ 1.3 million as of December 31, 2022 . See Note 13. Categorized as level 3 within the fair value hierarchy. See Note 13. 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 | Jun. 30, 2023 | Dec. 31, 2022 |
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 | Jun. 30, 2023 | Dec. 31, 2022 | |||
Assets | |||||
Interest-bearing deposits | $ 1,300 | ||||
Fair Value Recurring [Member] | |||||
Assets | |||||
Interest-bearing deposits | 1,250 | $ 1,250 | |||
Available for sale investment securities | 53,692 | 48,492 | |||
Equity securities, fair value | [1] | 1,724 | 1,724 | ||
Total | 56,666 | [2] | 51,466 | [3] | |
Fair Value Recurring [Member] | Level 1 [Member] | |||||
Assets | |||||
Equity securities, fair value | 1,724 | 1,724 | |||
Total | 1,724 | [2] | 1,724 | [3] | |
Fair Value Recurring [Member] | Level 2 [Member] | |||||
Assets | |||||
Interest-bearing deposits | 1,250 | 1,250 | |||
Available for sale investment securities | 53,692 | 48,492 | |||
Total | $ 54,942 | [2] | $ 49,742 | [3] | |
[1] Included within other assets on the balance sheet. Total unrealized losses of $ 0.9 million and $ 0.4 million , net of tax, was included in other comprehensive income for the three and six months ended June 30, 2023 related to these assets. Total unrealized losses of $ 4.4 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2022 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 | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||||
Net change in unrealized gains (losses) on investments, net of tax | $ 900 | $ 506 | $ 400 | $ (4,400) |
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 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Assets | ||||||||
Impaired loans | $ 15,600 | $ 19,500 | ||||||
Loan collateral in process of foreclosure | 16,803 | [1] | $ 20,467 | 21,819 | [1] | $ 26,974 | $ 33,834 | $ 37,430 |
Fair Value, Nonrecurring | ||||||||
Assets | ||||||||
Equity investments | 11,404 | 10,293 | ||||||
Impaired loans | 16,145 | 32,133 | ||||||
Loan collateral in process of foreclosure | 16,803 | 21,819 | ||||||
Total | 44,352 | 64,245 | ||||||
Fair Value, Nonrecurring | Level 3 [Member] | ||||||||
Assets | ||||||||
Equity investments | 11,404 | 10,293 | ||||||
Impaired loans | 16,145 | 32,133 | ||||||
Loan collateral in process of foreclosure | 16,803 | 21,819 | ||||||
Total | $ 44,352 | $ 64,245 | ||||||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $ 6.8 million as of June 30, 2023 and $ 7.5 million as of December 31, 2022 . |
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) | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Principal portion of loans serviced, fair value | $ 15,600,000 | $ 19,500,000 | ||||||
Loan collateral in process of foreclosure | $ 16,803,000 | [1] | $ 21,819,000 | [1] | $ 20,467,000 | $ 26,974,000 | $ 33,834,000 | $ 37,430,000 |
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 | |||||||
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 | ||||||
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 | 0.0759 | 0.0655 | ||||||
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 | $ 0 | [2] | $ 0 | [3] | ||||
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 | 79,500 | [2] | 79,500 | [3] | ||||
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 | 500 | [4] | 2,500 | [5] | ||||
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 | 43,200 | [4] | 54,100 | [5] | ||||
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 | 0 | [2] | 0 | [3] | ||||
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 | 79,500 | [2] | 79,500 | [3] | ||||
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 investments | 11,131,000 | 10,020,000 | ||||||
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 investments | 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 | 16,145,000 | 32,133,000 | ||||||
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 | $ 16,803,000 | $ 21,819,000 | ||||||
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $ 6.8 million as of June 30, 2023 and $ 7.5 million as of December 31, 2022 . Represents amount net of liquidation costs. Represents amount net of liquidation costs. Relates to the recreation portfolio. 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 | 6 Months Ended | ||
Dec. 17, 2019 | Jul. 21, 2011 | Jun. 30, 2023 | |
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 Term 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 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ in Thousands | Jul. 10, 2023 | Feb. 28, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||||
Maturity date | Feb. 28, 2026 | ||||
Long-Term Debt | [1] | $ 178,128 | $ 214,320 | ||
Medallion Capital, Inc. | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument face amount | $ 20,000 | ||||
Debt instrument payment period | 10 years | ||||
Maturity date | Sep. 30, 2027 | ||||
Debt instrument leverage fee | $ 200 | ||||
Debt instrument remaining leverage fee | 400 | ||||
Line Of Credit Facility Drawn Amount | 4,800 | ||||
Long-Term Debt | 15,200 | ||||
Long term debt under capital infusion | $ 7,600 | ||||
[1] Includes $ 2.9 million and $ 3.2 million of deferred financing costs as of June 30, 2023 and December 31, 2022 . Refer to Note 5 for more details. |