Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 09, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MFIN | |
Entity Registrant Name | MEDALLION FINANCIAL CORP | |
Entity Central Index Key | 1,000,209 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,440,052 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash | $ 110,233 | ||
Investment securities | 908,297 | ||
Loans | 864,819 | ||
Loans, at fair value | $ 26,558 | 338,867 | |
Allowance for losses | (29,484) | ||
Net loans receivable | 1,060,061 | ||
Other assets | 58,827 | ||
Total assets | 1,571,407 | 1,077,357 | |
Liabilities | |||
Total liabilities | 913,127 | ||
Stockholders' equity | |||
Total stockholders' equity | [1] | 164,230 | |
Total equity | 280,415 | 287,159 | |
Total liabilities and equity | 1,077,357 | ||
Medallion Bank and Other Controlled Subsidiaries [Member] | |||
Assets | |||
Investment in affiliates | 302,147 | ||
Bank Holding Company Accounting [Member] | |||
Assets | |||
Cash | [2] | 10,678 | |
Federal funds sold | 132,882 | ||
Equity investments | 10,752 | ||
Investment securities | 45,757 | ||
Loans | 1,089,545 | ||
Allowance for losses | [3] | (29,484) | |
Net loans receivable | [2] | 1,060,061 | |
Accrued interest receivable | [2] | 7,005 | |
Property and equipment, net | 1,093 | ||
Loan collateral in process of foreclosure | [2] | 59,761 | |
Goodwill and intangible assets | 210,761 | ||
Other assets | 32,657 | ||
Total assets | 1,571,407 | ||
Liabilities | |||
Accounts payable and accrued expenses | [2] | 17,789 | |
Accrued interest payable | [2] | 6,118 | |
Deposits | 946,975 | ||
Short-term borrowings | [2] | 160,218 | |
Deferred tax liabilities and other tax payables | 2,011 | ||
Long-term debt | 157,881 | ||
Total liabilities | 1,290,992 | ||
Commitments and contingencies | |||
Stockholders' equity | |||
Preferred stock (1,000,000 shares of $0.01 par value stock authorized - none outstanding) | |||
Common stock (50,000,000 shares of $0.01 par value stock authorized - 27,391,295 shares at September 30, 2018 and 27,294,327 shares at December 31, 2017 issued) | 274 | ||
Additional paid in capital | 274,163 | ||
Treasury stock (2,951,243 shares at September 30, 2018 and December 31, 2017) | (24,919) | ||
Accumulated other comprehensive loss | (469) | ||
Retained earnings | 3,871 | ||
Total stockholders' equity | 252,920 | ||
Non-controlling interest in consolidated subsidiaries | 27,495 | ||
Total equity | 280,415 | ||
Total liabilities and equity | $ 1,571,407 | ||
Number of shares outstanding | 24,440,052 | ||
Book value per share/net asset value per share | $ 10.35 | ||
Investment Company Accounting [Member] | |||
Assets | |||
Cash | [2] | 12,690 | |
Equity investments, at fair value | 5,213 | ||
Net investments | [2] | 610,135 | |
Accrued interest receivable | [2] | 547 | |
Property and equipment, net | 235 | ||
Investments other than securities | 7,450 | ||
Other assets | 4,465 | ||
Total assets | 635,522 | ||
Liabilities | |||
Accounts payable and accrued expenses | [2] | 4,373 | |
Accrued interest payable | [2] | 3,831 | |
Deferred tax liabilities and other tax payables | 12,536 | ||
Funds borrowed | [2] | 327,623 | |
Total liabilities | 348,363 | ||
Commitments and contingencies | |||
Stockholders' equity | |||
Preferred stock (1,000,000 shares of $0.01 par value stock authorized - none outstanding) | |||
Common stock (50,000,000 shares of $0.01 par value stock authorized - 27,391,295 shares at September 30, 2018 and 27,294,327 shares at December 31, 2017 issued) | 273 | ||
Additional paid in capital | 273,716 | ||
Treasury stock (2,951,243 shares at September 30, 2018 and December 31, 2017) | (24,919) | ||
Accumulated undistributed net investment loss | (65,592) | ||
Net unrealized appreciation on investments, net of tax | 103,681 | ||
Total stockholders' equity | 287,159 | ||
Total equity | 287,159 | ||
Total liabilities and equity | $ 635,522 | ||
Number of shares outstanding | 24,343,084 | ||
Book value per share/net asset value per share | $ 11.80 | ||
Investment Company Accounting [Member] | Affiliated Entity [Member] | |||
Assets | |||
Investment in affiliates | $ 4,308 | ||
Investment Company Accounting [Member] | Medallion Bank and Other Controlled Subsidiaries [Member] | |||
Assets | |||
Investment in affiliates | 302,147 | ||
Investment Company Accounting [Member] | Parent Loan [Member] | |||
Assets | |||
Loans, at fair value | 208,279 | ||
Investment Company Accounting [Member] | Commercial Loans [Member] | |||
Assets | |||
Loans, at fair value | 53,737 | ||
Investment Company Accounting [Member] | Commercial Loans to Affiliated Entities [Member] | |||
Assets | |||
Loans, at fair value | 999 | ||
Investment Company Accounting [Member] | Commercial Loans To Controlled Subsidiaries [Member] | |||
Assets | |||
Loans, at fair value | $ 35,452 | ||
[1] | Includes $152,267 of unrealized appreciation on Medallion Bank, in excess of Medallion Bank's book value as of December 31, 2017. | ||
[2] | See Note 18 for details of balances related to a consolidated variable interest entity. | ||
[3] | Includes $15,587 of a general reserve for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 53% of the total allowance, and 7% of the loans in question. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Bank Holding Company Accounting [Member] | ||
Preferred stock, shares authorized | 1,000,000 | |
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares outstanding | 0 | |
Common stock, shares authorized | 50,000,000 | |
Common stock, par value | $ 0.01 | |
Common stock, shares issued | 27,391,295 | |
Treasury stock,shares | 2,951,243 | |
Investment Company Accounting [Member] | ||
Preferred stock, shares authorized | 1,000,000 | |
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares outstanding | 0 | |
Common stock, shares authorized | 50,000,000 | |
Common stock, par value | $ 0.01 | |
Common stock, shares issued | 27,294,327 | |
Treasury stock,shares | 2,951,243 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Interest and fees on loans | $ 124 | $ 64,718 | [1] | $ 1,383 | ||
Interest income | $ 33,152 | 3,287 | [1] | |||
Medallion lease income | [1] | 100 | ||||
Interest and dividends on investment securities | [1] | 1,032 | ||||
Total interest income/total investment income | [1],[2] | 69,829 | ||||
Interest on deposits | [1] | 9,264 | ||||
Interest on short term borrowings | [1] | 3,557 | ||||
Interest on long term debt | [1] | 3,991 | ||||
Interest expense | [1] | 3,551 | ||||
Total interest expense | 8,887 | 20,363 | [1],[3] | |||
Net interest income | 24,265 | 49,466 | [1] | |||
Provision for loan losses | 18,205 | 48,781 | [1] | |||
Net interest loss after provision for loan losses | 6,060 | 685 | [1] | |||
Other income (loss) | ||||||
Sponsorship and race winnings | 5,371 | 10,599 | [1] | |||
Gain on sale of loans | [1] | 5,488 | ||||
Impairment of equity investments | [1] | (862) | ||||
Writedown of loan collateral in process of foreclosure | [1] | (1,361) | ||||
Other income | [1] | 515 | ||||
Total other income | [1] | 14,379 | ||||
Other expenses | ||||||
Salaries and employee benefits | [1] | 13,987 | ||||
Race team related expenses | (2,876) | 5,416 | [1] | |||
Professional fees | [1] | 6,920 | ||||
Loan servicing fees | [1] | 2,313 | ||||
Collection costs | [1] | 2,218 | ||||
Travel, meals and entertainment | [1] | 1,122 | ||||
Rent expense | [1] | 1,449 | ||||
Regulatory fees | [1] | 1,145 | ||||
Amortization of intangible assets | [1] | 722 | ||||
Other expenses | [1],[4] | 5,206 | ||||
Total other expenses | [1] | 40,498 | ||||
Loss before income taxes/net investment loss before taxes | (3,963) | (25,434) | [1],[5] | |||
Income tax benefit (provision) | [1] | 4,474 | ||||
Net loss after taxes/net investment loss after taxes | [1] | (20,960) | ||||
Net realized gains (losses) on investments | [1],[6] | (34,745) | ||||
Income tax benefit | [1] | 8,426 | ||||
Total net realized gains (losses) on investments | [1] | (26,319) | ||||
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries | [1] | 29,115 | ||||
Net change in unrealized depreciation on investments other than securities | [1] | (1,915) | ||||
Net change in unrealized depreciation on investments | [1] | (4,403) | ||||
Income tax (provision) benefit | [1] | (8,122) | ||||
Net unrealized appreciation (depreciation) on investments | [1] | 14,675 | ||||
Net realized/unrealized gains (losses) on investments | [1] | (11,644) | ||||
Net loss after taxes/net increase (decrease) on net assets resulting from operations | $ (3,846) | (32,604) | [1] | |||
Less: income attributable to the noncontrolling interest | [1] | 1,614 | ||||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | [1] | $ (34,218) | ||||
Basic net loss per share | $ (0.19) | $ 0.03 | $ (1.41) | [1] | $ (0.13) | |
Diluted net loss per share | $ (0.19) | $ 0.03 | (1.41) | [1] | $ (0.13) | |
Distributions declared per share | [1] | $ 0 | ||||
Weighted average common shares outstanding | ||||||
Basic | 24,235,242 | 23,930,086 | 24,207,273 | [1] | 23,916,334 | |
Diluted | 24,235,242 | 24,083,919 | 24,207,273 | [1] | 23,916,334 | |
Controlled Subsidiary Investment [Member] | ||||||
Interest income | [1] | $ 10 | ||||
Dividend income from controlled subsidiaries | [1] | 28 | ||||
Affiliate Investment [Member] | ||||||
Interest income | [1] | 654 | ||||
Bank Holding Company Accounting [Member] | ||||||
Interest and fees on loans | $ 32,692 | |||||
Medallion lease income | 30 | |||||
Interest and dividends on investment securities | 430 | |||||
Total interest income/total investment income | [2] | 33,152 | ||||
Interest on deposits | 5,064 | |||||
Interest on short term borrowings | 1,698 | |||||
Interest on long term debt | 2,125 | |||||
Total interest expense | [3] | 8,887 | ||||
Net interest income | 24,265 | |||||
Provision for loan losses | 18,205 | 48,781 | ||||
Net interest loss after provision for loan losses | 6,060 | |||||
Other income (loss) | ||||||
Sponsorship and race winnings | 5,371 | |||||
Gain on sale of loans | 5,488 | |||||
Impairment of equity investments | (388) | |||||
Writedown of loan collateral in process of foreclosure | (1,265) | |||||
Other income | 235 | |||||
Total other income | 9,441 | |||||
Other expenses | ||||||
Salaries and employee benefits | 5,999 | |||||
Race team related expenses | 2,876 | |||||
Professional fees | 3,951 | |||||
Loan servicing fees | 1,185 | |||||
Collection costs | 1,381 | |||||
Travel, meals and entertainment | 313 | |||||
Rent expense | 615 | |||||
Regulatory fees | 563 | |||||
Amortization of intangible assets | 361 | $ 722 | ||||
Other expenses | [4] | 2,220 | ||||
Total other expenses | 19,464 | |||||
Loss before income taxes/net investment loss before taxes | [5] | (3,963) | ||||
Income tax benefit (provision) | 117 | |||||
Net loss after taxes/net investment loss after taxes | (3,846) | |||||
Net loss after taxes/net increase (decrease) on net assets resulting from operations | (3,846) | |||||
Less: income attributable to the noncontrolling interest | 851 | |||||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | $ (4,697) | |||||
Basic net loss per share | $ (0.19) | |||||
Diluted net loss per share | (0.19) | |||||
Distributions declared per share | $ 0 | |||||
Weighted average common shares outstanding | ||||||
Basic | 24,235,242 | |||||
Diluted | 24,235,242 | |||||
Investment Company Accounting [Member] | ||||||
Interest income | $ 3,768 | $ 10,153 | ||||
Medallion lease income | 40 | 159 | ||||
Dividends and interest income on short-term investments | 11 | 27 | ||||
Total interest income/total investment income | [2] | 5,567 | 13,604 | |||
Interest expense | 3,543 | 10,285 | ||||
Total interest expense | [3] | 3,543 | 10,285 | |||
Net interest income | 2,024 | 3,319 | ||||
Net interest loss after provision for loan losses | 2,024 | 3,319 | ||||
Other income (loss) | ||||||
Other income | 8 | 22 | ||||
Total other income | 8 | 22 | ||||
Other expenses | ||||||
Salaries and employee benefits | 2,224 | 5,086 | ||||
Professional fees | 567 | 1,875 | ||||
Collection costs | 64 | 168 | ||||
Travel, meals and entertainment | 126 | 541 | ||||
Rent expense | 275 | 802 | ||||
Other expenses | [4] | 420 | 1,111 | |||
Total other expenses | 3,676 | 9,583 | ||||
Loss before income taxes/net investment loss before taxes | [5] | (1,644) | (6,242) | |||
Income tax benefit (provision) | (846) | 2,024 | ||||
Net loss after taxes/net investment loss after taxes | (2,490) | (4,218) | ||||
Net realized gains (losses) on investments | [6] | 944 | 3,785 | |||
Total net realized gains (losses) on investments | 944 | 3,785 | ||||
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries | 2,035 | 11,089 | ||||
Net change in unrealized depreciation on investments | (6,871) | (26,843) | ||||
Income tax (provision) benefit | 7,001 | 13,120 | ||||
Net unrealized appreciation (depreciation) on investments | 2,165 | (2,634) | ||||
Net realized/unrealized gains (losses) on investments | 3,109 | 1,151 | ||||
Net loss after taxes/net increase (decrease) on net assets resulting from operations | 619 | (3,067) | ||||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | $ 619 | $ (3,067) | ||||
Basic net loss per share | $ 0.03 | $ (0.13) | ||||
Diluted net loss per share | 0.03 | (0.13) | ||||
Distributions declared per share | $ 0 | $ 0 | ||||
Weighted average common shares outstanding | ||||||
Basic | 23,930,086 | 23,916,334 | ||||
Diluted | 24,083,919 | 23,916,334 | ||||
Investment Company Accounting [Member] | Controlled Subsidiary Investment [Member] | ||||||
Interest income | $ 39 | $ 165 | ||||
Dividend income from controlled subsidiaries | 1,256 | 1,256 | ||||
Investment Company Accounting [Member] | Affiliate Investment [Member] | ||||||
Interest income | $ 453 | $ 1,844 | ||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | |||||
[2] | Included in interest and investment income is $450 and $1,428 of paid in kind interest for the three and nine months ended September 30, 2018 and $939 and $1,650 for the comparable 2017 periods. | |||||
[3] | Average borrowings outstanding were $1,255,945 and $1,226,896, and the related average borrowing costs were 2.81% and 2.22% for the three and nine months ended September 30, 2018, and were $330,885 and $335,907 and 4.25% and 4.09% for the comparable 2017 periods. | |||||
[4] | See Note 11 for the components of other operating expenses. | |||||
[5] | Includes $256 of net revenues received from Medallion Bank for the nine months ended September 30, 2018 and $184 and $641 for the three and nine months ended September 30, 2017, primarily for expense reimbursements. See Notes 6 and 13 for additional information. | |||||
[6] | There were no net losses on investment securities of affiliated issuers for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017. |
Consolidated Statement of Inc_2
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Interest paid in kind | $ 450 | $ 939 | $ 1,428 | $ 1,650 | |
Average borrowings outstanding | $ 1,255,945 | $ 330,885 | $ 1,226,896 | $ 335,907 | |
Average borrowing costs rate | 2.81% | 4.25% | 2.22% | 4.09% | |
Net Gain/losses on investment securities of affiliated | [1],[2] | $ (34,745) | |||
Affiliated Entity [Member] | |||||
Net Gain/losses on investment securities of affiliated | $ 0 | 0 | $ 0 | ||
Medallion Bank [Member] | |||||
Revenue | $ 184 | $ 256 | $ 641 | ||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | ||||
[2] | There were no net losses on investment securities of affiliated issuers for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017. |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Net loss after taxes/net increase (decrease) on net assets resulting from operations | $ (3,846) | $ (32,604) | [1] | |||
Other comprehensive loss, net of tax | [1] | (469) | ||||
Total comprehensive loss | [1] | (33,073) | ||||
Less: comprehensive income attributable to the noncontrolling interest | [1] | 1,614 | ||||
Total comprehensive loss attributable to Medallion Financial Corp. | [1] | $ (34,687) | ||||
Bank Holding Company Accounting [Member] | ||||||
Net loss after taxes/net increase (decrease) on net assets resulting from operations | (3,846) | |||||
Other comprehensive loss, net of tax | (214) | |||||
Total comprehensive loss | (4,060) | |||||
Less: comprehensive income attributable to the noncontrolling interest | 851 | |||||
Total comprehensive loss attributable to Medallion Financial Corp. | $ (4,911) | |||||
Investment Company Accounting [Member] | ||||||
Net loss after taxes/net increase (decrease) on net assets resulting from operations | $ 619 | $ (3,067) | ||||
Total comprehensive loss | 619 | (3,067) | ||||
Total comprehensive loss attributable to Medallion Financial Corp. | $ 619 | $ (3,067) | ||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Capital in Excess of Par [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Investment Company Accounting [Member] | Investment Company Accounting [Member]Accumulated Undistributed Net Investment Loss [Member] | Investment Company Accounting [Member]Accumulated Undistributed Net Realized Gains on Investments [Member] | Investment Company Accounting [Member]Net Unrealized Appreciation on Investment Net of Tax [Member] | Bank Holding Company Accounting [Member] | Bank Holding Company Accounting [Member]Retained Earnings [Member] | Bank Holding Company Accounting [Member]Accumulated Other Comprehensive Income [Member] | Bank Holding Company Accounting [Member]Parent [Member] | |
Beginning balance at Dec. 31, 2017 | $ 287,159 | $ 273 | $ 273,716 | $ (24,919) | $ 287,159 | $ (65,592) | $ 103,681 | $ 287,159 | |||||||
Beginning balance, shares at Dec. 31, 2017 | 27,294,327 | (2,951,243) | 24,343,084 | ||||||||||||
Net decrease in net assets resulting from operations | (14,874) | (38,299) | 23,425 | (14,874) | |||||||||||
Stock based compensation | 152 | $ 1 | 151 | 152 | |||||||||||
Issuance of restricted stock, net | 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | 0 | $ 0 | 0 | $ 0 | $ 0 | 0 | |||
Issuance of restricted stock, net, shares | 95,726 | ||||||||||||||
Ending balance at Mar. 31, 2018 | 272,437 | $ 274 | 273,867 | $ (24,919) | (103,891) | 127,106 | 272,437 | ||||||||
Ending balance, shares at Mar. 31, 2018 | 27,390,053 | (2,951,243) | |||||||||||||
Beginning balance at Dec. 31, 2017 | 287,159 | $ 273 | 273,716 | $ (24,919) | $ 287,159 | (65,592) | 103,681 | 287,159 | |||||||
Beginning balance, shares at Dec. 31, 2017 | 27,294,327 | (2,951,243) | 24,343,084 | ||||||||||||
Net loss | [1] | (32,604) | |||||||||||||
Ending balance at Sep. 30, 2018 | 280,415 | $ 274 | 274,163 | $ (24,919) | 27,495 | $ 280,415 | 3,871 | (469) | 252,920 | ||||||
Ending balance, shares at Sep. 30, 2018 | 27,391,295 | (2,951,243) | 24,440,052 | ||||||||||||
Beginning balance at Mar. 31, 2018 | 272,437 | $ 274 | 273,867 | $ (24,919) | (103,891) | 127,106 | 272,437 | ||||||||
Beginning balance, shares at Mar. 31, 2018 | 27,390,053 | (2,951,243) | |||||||||||||
Net loss | (17,730) | 1,614 | (19,344) | (19,344) | |||||||||||
Distributions on noncontrolling interest | (1,184) | (1,184) | |||||||||||||
Stock based compensation | 296 | 296 | 296 | ||||||||||||
Issuance of restricted stock, net | 0 | $ 0 | $ 0 | 0 | $ 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | |||
Issuance of restricted stock, net, shares | 1,242,000 | ||||||||||||||
Net change in unrealized losses on investments, net of tax | (469) | (469) | (469) | ||||||||||||
Ending balance at Sep. 30, 2018 | 280,415 | $ 274 | 274,163 | $ (24,919) | 27,495 | $ 280,415 | 3,871 | $ (469) | 252,920 | ||||||
Ending balance, shares at Sep. 30, 2018 | 27,391,295 | (2,951,243) | 24,440,052 | ||||||||||||
Adoption of Bank Holding Company Accounting | $ 103,891 | $ (127,106) | 23,215 | ||||||||||||
Balance after adoption of Bank Holding Company Accounting | $ 299,502 | $ 274 | $ 273,867 | $ (24,919) | $ 27,065 | $ 23,215 | $ 272,437 | ||||||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. |
Consolidated Statements of Chan
Consolidated Statements of Changes In Net Assets - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Net increase (decrease) in net assets resulting from operations | $ 619,000 | $ (3,067,000) | |||
Capital share activity | |||||
Exercise of stock options | [1] | 0 | 0 | ||
Investment Company Accounting [Member] | |||||
Net investment loss after income taxes | (2,490,000) | (4,218,000) | |||
Net realized gains on investments, net of tax | 944,000 | 3,785,000 | |||
Net unrealized depreciation on investments, net of tax | 2,165,000 | (2,634,000) | |||
Net increase (decrease) in net assets resulting from operations | 619 | (3,067) | |||
Investment income, net | 0 | ||||
Return of capital | 0 | 0 | |||
Realized gains from investment transactions, net | 0 | ||||
Distributions to shareholders | [2] | 0 | 0 | ||
Stock-based compensation expense | 222,000 | 551,000 | |||
Exercise of stock options | 0 | 0 | |||
Capital share transactions | 222,000 | 551,000 | |||
Total increase (decrease) in net assets | 841,000 | (2,516,000) | |||
Net assets at the beginning of the period | 282,739,000 | 286,096,000 | $ 286,096,000 | ||
Net assets at the end of the period | [3] | $ 283,580,000 | $ 283,580,000 | ||
Capital share activity | |||||
Capital share activity Common stock issued, beginning of period | 27,294,327 | 27,227,291 | 26,976,064 | 26,976,064 | |
Exercise of stock options | 0 | 0 | |||
Issuance of restricted stock, net | (492) | 250,735 | |||
Common stock issued, end of period | 27,226,799 | 27,226,799 | 27,294,327 | ||
Treasury stock, beginning of period | (2,951,243) | (2,951,243) | (2,951,243) | (2,951,243) | |
Treasury stock acquired | 0 | 0 | |||
Treasury stock, end of period | (2,951,243) | (2,951,243) | (2,951,243) | ||
Common stock outstanding | 24,275,556 | 24,275,556 | 24,343,084 | ||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at the exercise date and the related exercise price of the underlying options, was $0 and $0 for the 2018 and 2017 third quarter and nine months. | ||||
[2] | Distributions declared were $0.00 and $0.00 per share for the three and nine months ended September 30, 2017. | ||||
[3] | Includes $0 of undistributed net investment income, $0 of undistributed net realized gains on investments, and $0 of capital loss carryforwards at September 30, 2017. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Net Assets (Parenthetical) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | |
Distributions declared Per share | $ / shares | $ 0 | $ 0 |
Investment Company Accounting [Member] | ||
Distributions declared Per share | $ / shares | $ 0 | $ 0 |
Undistributed net investment income | $ 0 | |
Undistributed net realized gains on investments | 0 | |
Capital Loss carryforwards | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | $ (32,604) | [1] | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Provision for loan losses | 48,781 | [1] | ||||
Loans originated | (8,193) | [1] | ||||
Proceeds from principal receipts, sales, and maturities of loans | 13,279 | [1] | ||||
Paid-in-kind interest | (1,428) | [1] | ||||
Depreciation and amortization | 2,995 | [1] | ||||
Change in deferred and other tax assets/liabilities, net | 8,676 | [1] | ||||
Amortization of origination fees, net | $ 17 | 2,192 | [1] | $ 55 | ||
Net change in loan collateral in process of foreclosure | 3,258 | [1] | ||||
Capital returned by Medallion Bank and other controlled subsidiaries, net | 93 | [1] | ||||
Net realized gains on sale of loans and investments | (4,726) | [1] | ||||
Net change in unrealized depreciation on investments | 5,380 | [1] | ||||
Net change in unrealized depreciation on investment other than securities | 1,915 | [1] | ||||
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries | (29,115) | [1] | ||||
Net realized (gains) losses on investments | 34,745 | [1],[2] | ||||
Stock-based compensation expense | 446 | [1] | ||||
Decrease in accrued interest receivable | 486 | [1] | ||||
Increase in other liabilities | 3,159 | [1] | ||||
(Increase) decrease in other assets | (7,173) | [1] | ||||
Decrease in accounts payable and accrued expenses | (675) | [1] | ||||
Increase (decrease) in accrued interest payable | 41 | [1] | ||||
Net cash provided by operating activities | 41,532 | [1] | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans originated | (256,933) | [1] | ||||
Proceeds from principal receipts, sales, and maturities of loans | 240,915 | [1] | ||||
Purchases of investments | (8,304) | [1] | ||||
Proceeds from principal receipts, sales, and maturities of investments | 2,475 | [1] | ||||
Net cash (used for) investing activities | (21,847) | [1] | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from time deposits and funds borrowed | 336,108 | [1] | ||||
Repayments of time deposits and funds borrowed | (253,497) | [1] | ||||
Purchase of federal funds | 8,000 | [1] | ||||
Repayments of federal funds | (8,000) | [1] | ||||
Distributions to noncontrolling interests | (1,184) | [1] | ||||
Payments of declared distributions | (65) | [1] | ||||
Net cash provided by (used for) financing activities | 81,362 | [1] | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 101,047 | [1] | ||||
Cash and cash equivalents, beginning of period | 42,513 | [1],[3] | ||||
Cash and cash equivalents, end of period | 143,560 | [1],[4] | ||||
SUPPLEMENTAL INFORMATION | ||||||
Cash paid during the period for interest | 17,381 | [1] | ||||
Cash paid during the period for income taxes | 52 | [1] | ||||
Investment Company Accounting [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | 619 | (3,067) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Loans originated | (16,775) | |||||
Proceeds from principal receipts, sales, and maturities of loans | 36,922 | |||||
Paid-in-kind interest | (1,650) | |||||
Depreciation and amortization | 410 | |||||
Change in deferred and other tax assets/liabilities, net | (12,268) | |||||
Amortization of origination fees, net | 55 | |||||
Capital returned by Medallion Bank and other controlled subsidiaries, net | 588 | |||||
Net change in unrealized depreciation on investments | 26,843 | |||||
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries | (11,089) | |||||
Net realized (gains) losses on investments | (944) | [2] | (3,785) | [2] | ||
Stock-based compensation expense | 222 | 551 | ||||
Decrease in accrued interest receivable | 209 | |||||
(Increase) decrease in other assets | 548 | |||||
Decrease in accounts payable and accrued expenses | (354) | |||||
Increase (decrease) in accrued interest payable | 255 | |||||
Net cash provided by operating activities | 17,393 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Repayments of time deposits and funds borrowed | (18,935) | |||||
Payments of declared distributions | (139) | |||||
Net cash provided by (used for) financing activities | (19,074) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,681) | |||||
Cash and cash equivalents, beginning of period | 20,962 | [3] | ||||
Cash and cash equivalents, end of period | 19,281 | [4] | 19,281 | [4] | ||
SUPPLEMENTAL INFORMATION | ||||||
Cash paid during the period for interest | 9,692 | |||||
Cash paid during the period for income taxes | 48 | |||||
Previously Unconsolidated Subsidiaries [Member] | ||||||
SUPPLEMENTAL INFORMATION | ||||||
Cash, cash equivalents and federal funds sold | 29,923 | |||||
Medallion Bank [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | 16,019 | 45,991 | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Amortization of origination fees, net | $ (901) | (3,065) | $ (2,526) | |||
SUPPLEMENTAL INFORMATION | ||||||
Deposit | $ 100 | |||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | |||||
[2] | There were no net losses on investment securities of affiliated issuers for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017. | |||||
[3] | Included in the beginning balance for the nine months ended September 30, 2018 was $29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank. | |||||
[4] | Includes federal funds sold for the nine months ended September 30, 2018. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 9 Months Ended |
Sep. 30, 2018 | |
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. (the Company) is a commercial 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, a Federal Deposit Insurance Corporation (FDIC) insured industrial bank, that originates consumer loans, raises deposits, and conducts other banking activities. Medallion 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. Medallion Bank was initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxicab medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. The loans are marketed and serviced by Medallion Bank’s affiliates that have extensive prior experience in these asset groups. Subsequent to its formation, Medallion Bank began originating consumer loans to finance the purchases of RVs, boats, and other related items, and to finance small scale home improvements. The Company also conducts business through Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC) which originates and services taxicab medallion and commercial loans. The Company also conducts business through its subsidiaries, Medallion Capital, Inc. (MCI), an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC which originates and services taxicab medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration (SBA). MCI and FSVC are financed in part by the SBA. The Company has a controlling ownership stake in Medallion Motorsports, LLC, the primary owner of RPAC Racing, LLC (RPAC), a professional car racing team that competes in the Monster Energy NASCAR Cup Series, which is also consolidated with the Company. The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation (MSC), to provide loan services to Medallion Bank. The Company has assigned all of its loan servicing rights for Medallion Bank, which consists of servicing taxi medallion loans originated by Medallion Bank, to MSC, which bills and collects the related service fee income from Medallion Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs. Taxi Medallion Loan Trust III (Trust III) was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity (VIE), MFC is the primary beneficiary and as a result the Company consolidated Trust III in its financial results, until consummation of the restructuring subsequent to September 30, 2018. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III, aggregating $63,512,000 at September 30, 2018, 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 Trust III. Trust III’s loans are serviced by MFC. As of September 30, 2018, Trust III had liabilities of $98,491,000 and a deficit of $34,979,000, as a result of losses taken on the medallion loans in Trust III. As of September 30, 2018, this amount exceeded the Company’s maximum exposure to Trust III, which is solely due to a limited guaranty by MFC of $5,987,000, by $28,992,000. Refer to Note 19 for a discussion of the restructuring the Company executed subsequent to September 30, 2018. The Company established a wholly-owned subsidiary, Medallion Financing Trust I (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, aggregating $36,142,000 at September 30, 2018, 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. MFC, through several wholly-owned subsidiaries (together, Medallion Chicago), purchased $8,689,000 of City of Chicago taxicab medallions out of foreclosure, which are leased to fleet operators while being held for sale. The 159 medallions are carried at a net realizable value of $5,535,000 on the Company’s consolidated balance sheet at September 30, 2018 compared to fair value of $7,450,000 and $9,510,000 at December 31, 2017 and September 30, 2017. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Change to Bank Holding Company Accounting As described above, effective April 2, 2018, the Company withdrew its previous election to be regulated as a BDC under the 1940 Act. Prior to such time, the Company was a closed-end, non-diversified management Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (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 other receivables, investments other than securities, loans held for sale, 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. Prior to the Company’s election to withdraw from being regulated as a BDC under the 1940 Act effective April 2, 2018, Medallion Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018, and as such see Note 6 for the presentation of financial information for Medallion Bank and other controlled subsidiaries for such prior periods. 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. Fair Value of Assets and Liabilities The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, (FASB ASC 820), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 14 and 15 to the consolidated financial statements. Equity Investments Equity investments of $10,752,000 at September 30, 2018, comprised mainly of nonmarketable stock, equity units and equity warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry. Included in the equity investments were non-marketable Investment Securities (Bank Holding Company Accounting) The Company follows FASB ASC Topic 320, Investments – Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. from time-to-time in that held-to-maturity securities available-for-sale . Other Investment Valuation (Investment Company Accounting) Prior to April 2, 2018, under the 1940 Act, the Company’s investment in Medallion Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial At December 31, 2017, there were non-marketable Loans The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were recharged at fair value in connection with the change in reporting, and balances, net of reserves, became the fair value opening balances. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At September 30, 2018 and December 31, 2017, net loan origination costs were $14,041,000 and $90,000 ($11,187,000 when combined with Medallion Bank). The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization (accretion) to income for the three months ended September 30, 2018 and 2017 was $1,147,000 and ($17,000) ($901,000 when combined with Medallion Bank), and was $2,192,000 ($3,065,000 when combined with Medallion Bank) and ($55,000) ($2,526,000 when combined with Medallion Bank) for the comparable nine month periods. Interest income is recorded on the accrual basis. Taxicab 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 portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to Loan collateral in process of foreclosure primarily includes taxicab medallion loans that have reached 120 days past due and have been charged down to their net realizable value, in addition to consumer repossessed collateral in the process of being sold. The taxicab medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower, to the liquidation of the collateral securing the loans. The Company had $123,173,000 and $183,529,000 of net loans pledged as collateral under borrowing arrangements at September 30, 2018 and December 31, 2017. The Company accounted for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $26,558,000 at September 30, 2018 and $338,867,000 at December 31, 2017, which included $311,988,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, most of which relates to servicing assets held by Medallion Bank, and determined that no material servicing asset or liability existed as of September 30, 2018 and December 31, 2017. The Company assigned its servicing rights to the Medallion Bank portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from Medallion Bank by MSC. Allowance for Loan Losses (Bank Holding Company Accounting) The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, non performing loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $15,587,000 (includes Bank’s reserves since April 2 nd Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting) Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly. Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Unrealized appreciation on investments was $139,700,000, and $100,732,000 as of December 31, 2017 and September 30, 2017. Refer to Note 5 for additional details. 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 Bank Holding Company 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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of September 30, 2018, the Company had goodwill and intangible assets of $210,761 and recognized $361 and $722 of amortization expense for the three and nine months periods then ended. (in thousands) Fair Value as of Allocation as Medallion Bank Assets Net loans (1) $ 890,000 Other assets 130,393 Liabilities Funds borrowed and other liabilities (853,650 ) Total fair value excluding goodwill and intangibles 166,743 Goodwill 150,803 Intangibles 28,900 Total fair value (2) $ 346,446 $ 346,446 (1) Includes $12,387 of premiums associated with the loan portfolio. (2) Includes $26,303 of preferred stock held by the US Treasury. See Note 17 for details. (in thousands) Fair Value as Allocation as RPAC Racing LLC Assets Cash $ 1,647 Net fixed assets 774 Race cars and parts, net 203 Race cars held for sale 916 Other assets 1,902 Liabilities Deferred revenue (6,531 ) Notes payable (1) (27,220 ) Other liabilities (2,275 ) Total fair value excluding goodwill and intangibles (30,584 ) Intangibles 31,779 Total fair value (2) $ 1,195 $ 1,195 (1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018. (2) Fair value as of March 31, 2018 represents the Company’s investment in RPAC Racing LLC series D units. 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 $131,000 and $23,000 ($64,000 had Medallion Bank been consolidated) for the quarters ended September 30, 2018 and 2017, and was $289,000 and $71,000 ($166,000 had Medallion Bank been consolidated) for the comparable nine months. Deferred Costs Deferred financing costs, included in other assets, represents 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 $558,000 and $229,000 ($567,000 had Medallion Bank been consolidated) for the quarters ended September 30, 2018 and 2017, and was $1,322,000 and $697,000 ($1,680,000 had Medallion Bank been consolidated) for the comparable nine months, recorded as interest expense. 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 are amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for these purposes was $4,859,000, $3,070,000 ($5,011,000 had Medallion Bank been consolidated), and $3,295,000 ($5,437,000 had Medallion Bank been consolidated) as of September 30, 2018, December 31, 2017, and September 30, 2017. Income Taxes Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (“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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense. Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Net loss/ net decrease in net assets resulting from operations available to common shareholders ($ 4,697 ) $ 619 ($ 34,218 ) ($ 3,067 ) Weighted average common shares outstanding applicable to basic EPS 24,235,242 23,930,086 24,207,273 23,916,334 Effect of dilutive stock options — — — — Effect of restricted stock grants — 153,833 — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,235,242 24,083,919 24,207,273 23,916,334 Basic loss per share ($ 0.19 ) $ 0.03 ($ 1.41 ) ($ 0.13 ) Diluted loss per share (0.19 ) 0.03 (1.41 ) (0.13 ) Potentially dilutive common shares excluded from the above calculations aggregated 115,000 and 359,000 shares as of September 30, 2018 and 2017. Stock Compensation The Company follows FASB ASC Topic 718 (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 is reflected in net income (loss)/net increase (decrease) in net assets 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 (loss)/net increase in net assets 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 nine months ended September 30, 2018 and 2017, the Company issued 101,010 and 258,232 of restricted shares of stock-based compensation awards, and 39,000 and 23,333 shares of other stock-based compensation awards, and recognized $151,000 and $446,000, or $0.01 and $0.02 per share for the 2018 third quarter and nine months, and $222,000 and $551,000, or $0.01 and $0.02 per share in the comparable 2017 periods, of non-cash Derivatives The Company manages its exposure to increases in market rates of interest by periodically purchasing interest rate caps to lock in the cost of funds of its variable-rate debt in the event of a rapid run up in interest rates. The Company entered into contracts to purchase interest rate caps on $20,000,000 of notional value of principal from various multinational banks, with termination dates ranging to December 2018. The caps provide for payments to the Company if various LIBOR thresholds are exceeded during the cap terms. Total cap purchases were generally fully expensed when paid, including $0 for the three and nine months ended September 30, 2018 and $0 and $19,000 for the comparable 2017 periods, and all are carried at $0 on the balance sheet at September 30, 2018. Regulatory Capital Medallion Bank is subject to various regulatory capital requirements administered by the Federal Deposit Insurance Corporation (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 FDIC-insured banks, including Medallion 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, Medallion Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with the Company or its affiliates. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, and that an adequate allowance for loan losses be maintained. As of September 30, 2018, the Bank’s Tier 1 leverage capital ratio was 15.08%. 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- September 30, 2018 December 31, 2017 Common equity Tier 1 capital — — $ 138,946 $ 137,494 Tier 1 capital — — 165,249 163,797 Total capital — — 178,552 176,876 Average assets — — 1,096,094 1,127,087 Risk-weighted assets — — 1,010,792 995,145 Leverage ratio (1) 4.0 % 5.0 % 15.1 % 14.5 % Common equity Tier 1 capital ratio (2) 4.5 6.5 13.7 13.8 Tier 1 capital ratio (3) 6.0 8.0 16.3 16.5 Total capital ratio (3) 8.0 10.0 17.7 17.8 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will increase by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, by January 1, 2019, the Bank will be required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5% Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-13 In January 2017, the FASB issued ASU 2017-04 In June 2016, the FASB issued ASU 2016-13, Financial ASU 2016-13 applies In February 2016, the FASB issued ASU 2016-02, 2016-02 2016-02 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments Schedule [Abstract] | |
Investment Securities | (3) INVESTMENT SECURITIES (Bank Holding Company Accounting) Fixed maturity securities available for sale at September 30, 2018 consisted of the following: (Dollars in thousands) Amortized Cost Gross Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 35,147 $ 9 $ (1,188 ) $ 33,968 State and municipalities 12,239 1 (451 ) 11,789 Total $ 47,386 $ 10 $ (1,639 ) $ 45,757 The amortized cost and estimated market value of investment securities as of September 30, 2018 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. (Dollars in thousands) Amortized Fair Due in one year or less $ 27 $ 27 Due after one year through five years 11,404 11,035 Due after five years through ten years 11,718 11,283 Due after ten years 24,237 23,412 Total $ 47,386 $ 45,757 Information pertaining to securities with gross unrealized losses at September 30, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows. Less than Twelve Months Twelve Months and Over (Dollars in thousands) Gross Unrealized Fair Value Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (143 ) $ 7,165 $ (1,045 ) $ 24,751 State and municipalities (142 ) 5,918 (309 ) 5,726 Total $ (285 ) $ 13,083 $ (1,354 ) $ 30,477 Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date. As of December 31, 2017, under Investment Company Accounting, investment securities made up 0% of the net investments. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Loans and Allowance for Loan Losses | (4) LOANS AND ALLOWANCE FOR LOAN LOSSES (Bank Holding Company Accounting) The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Amount As a Recreation $ 575,875 53 % Home improvement 169,642 16 Commercial 82,558 7 Medallion 261,470 24 Total gross loans 1,089,545 100 % Allowance for loan losses (29,484 ) Total net loans $ 1,060,061 The following table sets forth the activity in the allowance for loan losses for the three and six months ended September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Three Months Six Months Allowance for loan losses – beginning balance (1) $ 21,425 $ — Charge-offs Recreation (4,825 ) (9,471 ) Home improvement (659 ) (1,220 ) Commercial — — Medallion (6,457 ) (12,737 ) Total charge-offs (11,941 ) (23,428 ) Recoveries Recreation 1,318 3,217 Home improvement 367 606 Commercial — 4 Medallion 110 304 Total recoveries 1,795 4,131 Net charge-offs (10,146 ) (19,297 ) Provision for loan losses 18,205 48,781 Allowance for loan losses – ending balance (2) $ 29,484 $ 29,484 (1) Beginning balance for the six months ended September 30, 2018 reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table. (2) Includes $15,587 of a general reserve for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 53% of the total allowance, and 7% of the loans in question. The following table sets forth the composition of the allowance for loan losses by type as of September 30, 2018: Amount Percentage Allowance as a Recreation $ 2,880 10 % 0.50 % Home Improvement 861 3 0.51 Commercial 100 — 0.12 Medallion 25,643 87 9.81 Total $ 29,484 100 % 2.71 % The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. Bank Holding Company Accounting Investment Company Accounting (Dollars in thousands) September 30, 2018 June 30, 2018 December 31, 2017 (1) September 30, 2017 (2) Total nonaccrual loans $ 45,765 $ 47,904 $ 98,494 $ 132,316 Interest foregone quarter to date 563 770 823 1,845 Amount of foregone interest applied to principal in the quarter 350 400 52 574 Interest foregone life to date 8,530 8,281 12,485 16,286 Amount of foregone interest applied to principal life to date 3,412 3,748 3,495 9,750 Percentage of nonaccrual loans to gross loan portfolio 4 % 4 % 31 % 36 % (1) Does not include Medallion Bank nonaccrual loans of $32,668, $1,487 of interest income foregone and $1,221 of foregone interest paid and applied to principal. (2) Does not include Medallion Bank nonaccrual loans of $39,626, $1,278 of interest income foregone and $1,102 of foregone interest paid and applied to principal. The following presents our performance status of loans as of September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Performing Non-Performing Total Recreation $ 570,800 $ 5,075 $ 575,875 Home improvement 169,475 167 169,642 Commercial 77,155 5,403 82,558 Medallion 223,413 38,057 261,470 Total $ 1,040,843 $ 48,702 $ 1,089,545 For those loans aged 31-90 The following table provides additional information on attributes of the nonperforming loan portfolio as of September 30, 2018 under Bank Holding Company Accounting, all of which had an allowance recorded against the principal balance. September 30, 2018 Three Months Ended September 30, Six Months Ended (Dollars in thousands) Recorded Unpaid Related Average Recorded Interest Income Average Interest Income With an allowance recorded Recreation $ 5,075 $ 5,075 $ 180 $ 5,494 $ 106 $ 4,496 $ 231 Home improvement 167 167 3 178 — 119 — Commercial 5,403 5,814 100 7,047 (82 ) 5,838 (12 ) Medallion 38,057 39,038 10,085 55,065 101 54,917 215 Total nonperforming loans with an allowance $ 48,702 $ 50,094 $ 10,368 $ 67,784 $ 125 $ 65,370 $ 434 The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2017 and September 30, 2017. (Dollars in thousands) Recorded (1) (2) Unpaid Principal Average Recorded December 31, 2017 Medallion (3) $ 79,871 $ 82,612 $ 128,671 Commercial (3) 18,623 20,491 18,792 September 30, 2017 Medallion (3) $ 120,716 $ 123,199 $ 124,944 Commercial (3) 11,600 18,867 11,951 (1) As of December 31, 2017 and September 30, 2017, $20,851 and $55,871 of unrealized depreciation was recorded as a valuation allowance on these loans. (2) Interest income of $124 and $1,383 was recognized on loans for the three and nine months ended September 30, 2017. (3) Included in the unpaid principal balance is unearned paid-in-kind The following tables show the aging of all loans as of September 30, 2018 and December 31, 2017: Bank Holding Company Accounting Days Past Due Recorded September 30, 2018 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recreation $ 14,974 $ 4,095 $ 3,164 $ 22,233 $ 534,065 $ 556,298 $ — Home improvement 782 212 175 1,169 170,825 171,994 — Commercial 471 95 421 987 81,571 82,558 — Medallion 11,012 4,993 10,301 26,306 227,187 253,493 — Total $ 27,239 $ 9,395 $ 14,061 $ 50,695 $ 1,013,648 $ 1,064,343 $ — (1) Excludes loan premiums of $10,606 resulting from purchase price accounting and $14,596 of capitalized loan origination costs. Investment Company Accounting Days Past Due Recorded December 31, 2017 (Dollars in thousands) 31-60 61-90 91 + Total Current Total Medallion loans $ 16,049 $ 12,387 $ 59,701 $ 88,137 $ 140,279 $ 228,416 $ 265 Commercial loans Secured mezzanine — — — — 88,334 88,334 — Other secured commercial — — 749 749 1,728 2,477 — Total commercial loans — — 749 749 90,062 90,811 — Total $ 16,049 $ 12,387 $ 60,450 $ 88,886 $ 230,341 $ 319,227 $ 265 The following table shows the troubled debt restructurings which the Company entered into during the three months ended September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 10 $ 4,810 $ 4,810 The following table shows the troubled debt restructurings which the Company entered into during the nine months ended September 30, 2018 under a combined accounting approach. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 17 $ 7,505 $ 7,505 During the twelve months ended September 30, 2018, three loans modified as troubled debt restructurings were in default and had an investment value of $1,305,000 as of September 30, 2018, net of $773,000 of an allowance for loan loss under Bank Holding Company Accounting. The following table shows troubled debt restructurings which the Company entered into during the quarter ended September 30, 2017 under Investment Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 7 $ 2,994 $ 2,994 The following table shows troubled debt restructurings which the Company entered into during the nine months ended September 30, 2017 under Investment Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 54 $ 34,905 $ 34,831 Commercial loans 2 6,547 6,547 Total 56 $ 41,452 $ 41,378 During the twelve months ended September 30, 2017, sixteen loans modified as troubled debt restructurings were in default and had an investment value of $5,027,000 as of September 30, 2017, net of $4,495,000 of unrealized depreciation under Investment Company Accounting. |
Unrealized Appreciation (Deprec
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investments [Abstract] | |
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments | (5) UNREALIZED APPRECIATION (DEPRECIATION) AND REALIZED GAINS (LOSSES) ON INVESTMENTS (Investment Company Accounting) The following table sets forth the pre-tax (Dollars in thousands) Medallion Commercial Investments in Equity Investments Total Balance December 31, 2017 ($ 20,338 ) ($ 513 ) $ 158,920 $ 3,121 ($ 1,490 ) $ 139,700 Net change in unrealized Appreciation on investments — — 38,795 (998 ) — 37,797 Depreciation on investments (38,170 ) 18 — — (1,915 ) (40,067 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — — — — Losses on investments 34,747 — — — — 34,747 Balance March 31, 2018 ($ 23,761 ) ($ 495 ) $ 197,715 $ 2,123 ($ 3,405 ) $ 172,177 (Dollars in thousands) Medallion Commercial Investment in Equity Investments Total Balance December 31, 2016 ($ 28,523 ) ($ 1,378 ) $ 152,750 $ 3,934 $ 584 $ 127,367 Net change in unrealized Appreciation on investments — — 3,751 1,261 — 5,012 Depreciation on investments (8,670 ) (332 ) — — — (9,002 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — (2,093 ) — (2,093 ) Losses on investments 825 — — 486 — 1,311 Balance March 31, 2017 (36,368 ) (1,710 ) 156,501 3,588 584 122,595 Net change in unrealized Appreciation on investments — — (771 ) 120 — (651 ) Depreciation on investments (12,425 ) (118 ) — — — (12,543 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — — — — Losses on investments 337 636 — — — 973 Balance June 30, 2017 (48,456 ) (1,192 ) 155,730 3,708 584 110,374 Net change in unrealized Appreciation on investments — — (2,771 ) (361 ) — (3,132 ) Depreciation on investments (6,669 ) 75 — — (15 ) (6,609 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — (272 ) — (272 ) Losses on investments 311 60 — — — 371 Balance September 30, 2017 ($ 54,814 ) ($ 1,057 ) $ 152,959 $ 3,075 $ 569 $ 100,732 The table below summarizes pre-tax Three Months Ended (Dollars in thousands) March 31, 2018 September 30, Nine Months Ended Net change in unrealized appreciation (depreciation) on investments Unrealized appreciation ($ 998 ) ($ 361 ) $ 1,132 Unrealized depreciation (38,152 ) (6,594 ) (28,253 ) Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries 29,115 2,035 11,089 Realized gains — (272 ) (2,363 ) Realized losses 34,747 371 2,656 Net unrealized losses on investments other than securities and other assets (1,915 ) (15 ) (15 ) Total $ 22,797 $ (4,836 ) $ (15,754 ) Net realized gains (losses) on investments Realized gains $ — $ 272 $ 2,363 Realized losses (34,747 ) (371 ) (2,656 ) Other gains — 1,187 4,189 Direct recoveries (chargeoffs) 2 (144 ) (111 ) Realized gains on investments other than securities and other assets — — — Total ($ 34,745 ) $ 944 $ 3,785 |
Medallion Bank
Medallion Bank | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Medallion Bank | (6) MEDALLION BANK The following note is included for informational purposes as it relates to the prior periods when the Company reported under Investment Company Accounting and as such, was not able to consolidate Medallion Bank’s results. The following table presents information derived from Medallion Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three and nine months ended September 30, 2017. (Dollars in thousands) Three Months Nine Months Statement of comprehensive income Investment income $ 29,259 $ 82,247 Interest expense 3,660 9,952 Net interest income 25,599 72,295 Noninterest income 28 99 Operating expenses 6,668 19,368 Net investment income before income taxes 18,959 53,026 Income tax provision 2,940 7,035 Net investment income after income taxes 16,019 45,991 Net realized/unrealized losses of Medallion Bank (10,859 ) (34,586 ) Net increase in net assets resulting from operations of Medallion Bank 5,160 11,405 Unrealized depreciation on Medallion Bank (1) (592 ) (1,212 ) Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank (2,533 ) 896 Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries $ 2,035 $ 11,089 (1) Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank. The following table presents Medallion Bank’s balance sheet and the net investment in other controlled subsidiaries as of December 31, 2017. (Dollars in thousands) December 31, Loans $ 864,819 Investment securities, at fair value 43,478 Net investments 908,297 Cash 110,233 Other assets, net 58,827 Total assets $ 1,077,357 Other liabilities $ 3,836 Due to affiliates 1,055 Deposits and other borrowings, including accrued interest payable 908,236 Total liabilities 913,127 Medallion Bank equity (2) 164,230 Total liabilities and equity $ 1,077,357 Investment in other controlled subsidiaries $ 11,449 Total investment in Medallion Bank and other controlled subsidiaries (3) $ 302,147 (1) Includes $26,303 of preferred stock issued to the US Treasury under the Small Business Lending Fund Program (SBLF). (2) Includes $152,267 of unrealized appreciation on Medallion Bank, in excess of Medallion Bank’s book value as of December 31, 2017. |
Funds Borrowed
Funds Borrowed | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (7) FUNDS BORROWED The outstanding balances of funds borrowed were as follows: Payments Due for the Fiscal Year Ending September 30, Bank September 30, Investment Interest (Dollars in thousands) 2019 2020 2021 2022 2023 Thereafter 2018 2017 Rate (1) Deposits $ 417,151 $ 213,514 $ 135,218 $ 140,394 $ 40,698 $ — $ 946,975 $ — 2.04 % DZ loan 96,058 — — — — — 96,058 99,984 3.86 % SBA debentures and borrowings 3,621 25,877 8,500 — 5,000 37,500 80,498 79,564 3.40 % Notes payable to banks 60,039 — 7,265 — — — 67,304 81,450 4.47 % Retail notes — — 33,625 — — — 33,625 33,625 9.00 % Preferred securities — — — — — 33,000 33,000 33,000 4.45 % Other borrowings 500 7,114 — — — — 7,614 — 2.00 % Total $ 577,369 $ 246,505 $ 184,608 $ 140,394 $ 45,698 $ 70,500 $ 1,265,074 $ 327,623 2.64 % (1) Weighted average contractual rate as of September 30, 2018. (A) DEPOSITS Deposits are raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into 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. All time deposits are in denominations of less than $250,000 and have been originated through certificates of deposit broker relationships. The table presents time deposits of $100,000 or more by their maturity: (Dollars in thousands) September 30, 2018 Three months or less $ 126,721 Over three months through six months 72,280 Over six months through one year 218,150 Over one year 529,824 Total deposits $ 946,975 (B) DZ LOAN In December 2008, Trust III entered into a loan agreement with DZ Bank, to provide up to $200,000,000 of financing through a commercial paper conduit to acquire medallion loans from MFC (DZ loan), which was extended in December 2013 until December 2016, and which has been further extended several times and currently terminates in December 2018. The line was reduced to $150,000,000, and was further reduced in stages to $125,000,000 on July 1, 2016, and remains as an amortizing facility, with $96,058,000 outstanding at September 30, 2018. During 2017 and 2018, the DZ loan was amended several times, for the most part to improve Trust III’s flexibility under the credit facility. Also, see Note 7(H) below. Borrowings under Trust III’s DZ loan are collateralized by Trust III’s assets. MFC is the servicer of the loans owned by Trust III. The DZ loan includes a borrowing base covenant and rapid amortization in certain circumstances. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. The interest rate with the 2013 extension is a pooled short-term commercial paper rate which approximates LIBOR (30 day LIBOR was 2.26% at September 30, 2018) plus 1.65%. (C) SBA DEBENTURES AND BORROWINGS Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1% fee, which was paid. During 2017, the SBA restructured FSVC’s debentures with the SBA totaling $33,485,000 in principal into a new loan by the SBA to FSVC in the principal amount of $34,024,756 (the SBA Loan). In connection with the SBA Loan, FSVC executed a Note (the SBA Note), with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34,024,756. The SBA Loan bears interest at a rate of 3.25% per annum, required a minimum of $5,000,000 of principal and interest to be paid on or before February 1, 2018 (which was paid), and requires a minimum of $10,000,000 of principal and interest to be paid on or before February 1, 2019, and all remaining unpaid principal and interest on or before February 1, 2020, the final maturity date. The SBA Loan agreement contains covenants and events of defaults, including, without limitation, payment defaults, breaches of representations and warranties and covenants defaults. As of September 30, 2018, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $80,498,000 was outstanding, including $29,498,000 under the SBA Note. (D) NOTES PAYABLE TO BANKS The Company and its subsidiaries have entered into note agreements with a variety of local and regional banking institutions over the years, as well as other non-bank The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of September 30, 2018. (Dollars in thousands) Borrower # of Lenders Note Maturity Type Note Balance Monthly Payment Average Interest (1) The Company 6/6 4/11 - 8/14 11/18 - 7/19 Term (2) $ 47,621 $ 47,621 Interest (3) 4.87 % Various (2) Medallion Chicago 3/28 11/11 - 12/11 6/19 - 9/21 Term (4) 25,708 19,683 $171 principal & 3.50 % N/A $ 73,329 $ 67,304 (1) At September 30, 2018, 30 day LIBOR was 2.26%, 360 day LIBOR was 2.92%, and the prime rate was 5.25%. (2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 4.50%, one note has an interest rate of LIBOR plus 3.50%, and the other interest rates on these borrowings are LIBOR plus 2%. (3) Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging from $0 to $75. (4) Guaranteed by the Company. (E) RETAIL NOTES In April 2016, the Company issued a total of $33,625,000 aggregate principal amount of 9.00% unsecured notes due 2021, with interest payable quarterly in arrears. The Company used the net proceeds from the offering of approximately $31,786,000 to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under its DZ loan in the ordinary course of business. (F) PREFERRED SECURITIES In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (2.40% at September 30, 2018) 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, $2,000,000 of the preferred securities were repurchased from a third party investor. At September 30, 2018, $33,000,000 was outstanding on the preferred securities. (G) OTHER BORROWINGS In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 13 for more details). At December 31, 2017, the total outstanding on these notes was $7,007,894 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. As of September 30, 2018, $7,114,000 was outstanding on these notes. Additionally, RPAC has a short term promissory note to Travis Burt, an unrelated party, for $500,000 due on December 31, 2018. (H) COVENANT COMPLIANCE Certain of the Company’s debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth. The Company was not in compliance with a financial covenant in the DZ loan agreement as of September 30, 2018. The Company is currently in the process of working with DZ Bank to amend such covenant in the DZ loan agreement. Historically the Company has received approvals for similar amendments. While there can be no assurance that it will be received, the Company has received preliminary indication from DZ Bank that it will obtain approval for such an amendment. Except as previously set forth, the Company is in compliance with such restrictions as of September 30, 2018. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) INCOME TAXES The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries, in which it holds 80 percent or more of the outstanding equity interest measured by both vote and fair value. The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2018 and December 31, 2017. (Dollars in thousands) September 30, 2018 December 31, Goodwill and other intangibles/unrealized gain on investments in Medallion Bank ($ 45,736 ) ($ 35,297 ) Provision for loan losses/unrealized losses on loans and nonaccrual interest 27,002 10,071 Net operating loss carryforwards (1) 17,062 615 Unrealized gains on investments in other controlled subsidiaries — (3,617 ) Unrealized gains on investments other than securities — (1,395 ) Accrued expenses, compensation, and other 1,815 782 Unrealized gains on investments and other assets (3,877 ) (542 ) Total deferred tax liability (3,734 ) (29,383 ) Valuation allowance (167 ) (39 ) Deferred tax liability, net (3,901 ) (29,422 ) Taxes receivable 1,890 16,886 Net deferred and other tax liabilities ($ 2,011 ) ($ 12,536 ) (1) As of September 30, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $2,057 as of the balance sheet date. The components of our tax benefit for the three and nine months ended September 30, 2018 and 2017 were as follows. Three Months Ended Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 Current Federal ($ 9,353 ) ($ 910 ) ($ 3,040 ) $ 639 State (2,318 ) (807 ) (1,078 ) (445 ) Deferred Federal 9,100 1,609 8,128 7,275 State 2,688 6,263 768 7,675 Net benefit for income taxes $ 117 $ 6,155 $ 4,778 $ 15,144 The following table presents a reconciliation of statutory federal income tax benefit to consolidated actual income tax benefit reported in net income/net increase in net assets for the three and nine months ended September 30, 2018 and 2017. Three Months Ended Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 Statutory Federal Income tax benefit at 21% (35% in 2017) $ 877 $ 1,937 $ 8,106 $ 6,374 State and local income taxes, net of federal income tax benefit (107 ) 99 994 327 Appreciation of Medallion Bank — 1,681 (1,974 ) 3,731 Depreciation of other unconsolidated subsidiaries — (462 ) — (462 ) Utilization of carry forwards (247 ) 459 (910 ) 2,715 Change in effective state income tax rate — 3,232 (1,358 ) 3,232 Non deductible expenses (215 ) — (403 ) — Other (191 ) (791 ) 323 (773 ) Total income tax benefit $ 117 $ 6,155 $ 4,778 $ 15,144 On December 22, 2017, the US Government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences. 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 has determined the valuation allowance as of September 30, 2018. The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah tax filings of the Company for the tax years 2015 through the present are the more significant filings that are open for examination. Currently the Company and the Bank are undergoing various state exams covering the years 2009 to 2011 and 2013 to 2016. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Restricted Stock | (9) STOCK OPTIONS AND RESTRICTED STOCK The Company has a stock option plan (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 the Company’s 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 is administered by the Compensation Committee of the Board of Directors. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. The term and vesting periods of the options are determined by the Compensation Committee, provided that the maximum term of an option may not exceed a period of ten years. The Company’s Board of Directors approved the 2018 Equity Incentive Plan (2018 Plan), which was approved by the Company’s shareholders 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, including options, restricted stock, stock appreciation rights, etc. A total of 1,494,558 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,455,558 remained issuable as of September 30, 2018. 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 first occurs. The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan (2015 Restricted Stock Plan) on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provide for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock are issuable under the 2015 Restricted Stock Plan, and 236,224 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. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever first occurs. The Company’s Board of Directors approved the 2015 Non-Employee non-employee The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan (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 will 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 are elected to serve less than a full term. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options may not exceed ten years. Additional shares are only available for future issuance under the 2018 Plan. At September 30, 2018, 144,666 options on the Company’s common stock were outstanding under the 2006 Stock Option Plan, and 2015 Director Plan, of which 79,778 options were exercisable, and there were 202,971 unvested shares of the Company’s common stock outstanding under the 2015 Restricted Stock 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. The following assumption categories are used to determine the value of any option grants. Nine Months Ended September 30, 2018 2017 Risk free interest rate 2.82 % 1.84 % Expected dividend yield 4.86 7.39 Expected life of option in years (1) 6.00 6.00 Expected volatility (2) 30.00 30.00 (1) Expected life is calculated using the simplified method. (2) We determine our expected volatility based on our historical volatility. The following table presents the activity for the stock option programs for the 2018 quarters and the 2017 full year. Number of Options Exercise Weighted Outstanding at December 31, 2016 345,518 $ 7.10-13.84 $ 9.67 Granted 29,666 2.14-2.61 2.35 Cancelled (54,558 ) 10.76-11.21 10.94 Exercised (1) — — — Outstanding at December 31, 2017 320,626 2.14-13.84 8.78 Granted — — — Cancelled — — — Exercised (1) — — — Outstanding at March 31, 2018 320,626 2.14-13.84 8.78 Granted 24,000 5.58 5.58 Cancelled (214,960 ) 9.22-9.24 9.22 Exercised (1) — — — Outstanding at June 30, 2018 129,666 $ 2.14-13.84 $ 7.45 Granted 15,000 5.27 5.27 Cancelled — — — Exercised (1) — — — Outstanding at September 30, 2018 (2) 144,666 $ 2.14-13.84 $ 7.23 Options exercisable at September 30, 2018 (2) 79,778 $ 2.22-13.84 $ 9.44 (1) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 and $0 for the 2018 and 2017 third quarter and nine months. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2018 and the related exercise price of the underlying options, was $174,000 for outstanding options and $33,000 for exercisable options as of September 30, 2018. The remaining contractual life was 7.22 years for outstanding options and 5.51 years for exercisable options at September 30, 2018. The following table presents the activity for the restricted stock programs for the 2018 quarters and the 2017 full year. Number of Shares Exercise Weighted Outstanding at December 31, 2016 167,703 $ 3.95-13.46 $ 8.88 Granted 327,251 2.06-3.93 2.48 Cancelled (8,988 ) 2.14-10.08 3.07 Vested (1) (77,384 ) 9.08-13.46 11.09 Outstanding at December 31, 2017 408,582 2.06-10.38 3.45 Granted 97,952 4.39 4.39 Cancelled (2,226 ) 3.93-9.08 5.86 Vested (1) (296,313 ) 2.06-10.38 3.24 Outstanding at March 31, 2018 207,995 2.06-7.98 4.16 Granted 212 3.93 3.93 Cancelled (199 ) 3.93 3.93 Vested (1) — — — Outstanding at June 30, 2018 208,008 2.06-13.84 7.45 Granted 2,846 5.27 5.27 Cancelled (1,617 ) 3.93-3.95 3.94 Vested (1) (6,266 ) 7.98 7.98 Outstanding at September 30, 2018 (2) 202,971 $ 2.06-5.27 $ 4.07 (1) The aggregate fair value of the restricted stock vested was $32,000 and $1,241,000 for the three and nine months ended September 30, 2018, and was $0 and $151,000 for the comparable 2017 periods. (2) The aggregate fair value of the restricted stock was $1,350,000 as of September 30, 2018. The remaining vesting period was 1.51 years at September 30, 2018. The following table presents the activity for the unvested options outstanding under the plans for the 2018 quarters. Number of Exercise Price Weighted Average Outstanding at December 31, 2017 and March 31, 2018 46,666 $ 2.14-9.38 $ 4.52 Granted 24,000 5.58 5.58 Cancelled — — — Vested (17,000 ) 2.22-9.38 7.16 Outstanding at June 30, 2018 53,666 $ 2.14-7.10 $ 4.16 Granted 15,000 5.27 5.27 Cancelled — — — Vested (3,778 ) 2.61 2.61 Outstanding at September 30, 2018 64,888 $ 2.14-7.10 $ 4.51 The intrinsic value of the options vested was $10,000 and $24,000 for the three and nine months ended September 30, 2018. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | (10) SEGMENT REPORTING (Bank Holding Company Accounting) Under Bank Holding Company Accounting, the Company has six business segments, which include four lending and two non-operating Prior to April 2, 2018, the Company had one business segment, its lending and investing operations. This segment originated and serviced medallion, secured commercial and consumer loans, and invested in both marketable and nonmarketable securities. The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank in all fifty states, with the highest concentrations in Texas, California, and Florida, at 17%, 11%, and 11% of loans outstanding and no other states over 10%. 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. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in pools, solar panels, and roofing, at 34%, 18%, 13% of total loans outstanding, and no other product lines over 10%. The commercial lending segment focuses on enterprise wide industries, including manufacturing, retail trade, information, recreation and various other industries, in which 47% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the taxicab medallions, taxicabs, and related assets, of which 88% were in New York City as of September 30, 2018. In addition, our non-operating The following tables present segment data at September 30, 2018 and for the three and six months then ended. Three Months Ended September 30, 2018 Consumer Lending Commercial Medallion RPAC Corp. Consolidated (dollars in thousands) Recreation Home Total interest income $ 24,001 $ 3,968 $ 2,637 $ 2,126 $ — $ 420 $ 33,152 Total interest expense 2,306 709 681 3,672 40 1,479 8,887 Net interest income (loss) 21,695 3,259 1,956 (1,546 ) (40 ) (1,059 ) 24,265 Provision for loan losses 4,423 598 (75 ) 13,259 — — 18,205 Net interest income after loss provision 17,272 2,661 2,031 (14,805 ) (40 ) (1,059 ) 6,060 Sponsorship and race winnings — — — — 5,371 — 5,371 Race team related expenses — — — — (2,876 ) — (2,876 ) Other income (expense) (3,160 ) 400 (934 ) (4,077 ) (1,887 ) (2,860 ) (12,518 ) Net income before taxes 14,112 3,061 1,097 (18,882 ) 568 (3,919 ) (3,963 ) Income tax benefit (provision) (3,979 ) (863 ) (254 ) 4,371 (107 ) 949 117 Net Income (loss) after tax $ 10,133 $ 2,198 $ 843 ($ 14,511 ) $ 461 ($ 2,970 ) ($ 3,846 ) Balance Sheet Data Total loans, net $ 572,995 $ 168,781 $ 82,458 $ 235,827 $ — $ — $ 1,060,061 Total assets 582,610 175,333 90,380 369,763 36,237 317,084 1,571,407 Total funds borrowed 431,868 132,914 71,655 399,750 7,614 221,273 1,265,074 Selected Financial Ratios Return on assets 6.80 % 4.57 % 3.35 % (15.23 %) 4.94 % (4.60 %) (1.19 %) Return on equity 27.77 19.99 6.99 NM 42.83 (16.79 ) (6.59 ) Interest yield 15.87 8.10 12.87 3.41 N/A N/A 10.75 Net interest margin 14.34 6.65 9.54 (2.48 ) N/A N/A 7.94 Reserve coverage 0.50 0.51 0.12 9.81 N/A N/A 2.71 Delinquency ratio 0.55 0.10 0.51 4.06 N/A N/A 1.29 Charge off ratio 3.19 1.34 0.00 10.35 N/A N/A 3.69 Six Months Ended September 30, 2018 Consumer Lending Commercial Medallion RPAC Corp. Consolidated (dollars in thousands) Recreation Home Total interest income $ 46,133 $ 8,605 $ 4,959 $ 5,315 $ — $ 784 $ 65,796 Total interest expense 4,442 1,448 1,336 7,045 81 2,460 16,812 Net interest income (loss) 41,691 7,157 3,623 (1,730 ) (81 ) (1,676 ) 48,984 Provision for loan losses 9,133 1,475 100 38,073 — — 48,781 Net interest income after loss provision 32,558 5,682 3,523 (39,803 ) (81 ) (1,676 ) 203 Sponsorship and race winnings — — — — 10,599 — 10,599 Race team related expenses — — — — (5,416 ) — (5,416 ) Other income (expense) (8,680 ) (1,285 ) (2,044 ) (6,888 ) (4,124 ) (4,233 ) (27,254 ) Net income before taxes 23,878 4,397 1,479 (46,691 ) 978 (5,909 ) (21,868 ) Income tax benefit (provision) (6,141 ) (1,159 ) (339 ) 10,528 (150 ) 1,399 4,138 Net Income (loss) after tax $ 17,737 $ 3,238 $ 1,140 ($ 36,163 ) $ 828 ($ 4,510 ) ($ 17,730 ) Balance Sheet Data Total loans, net $ 572,995 $ 168,781 $ 82,458 $ 235,827 $ — $ — $ 1,060,061 Total assets 582,610 175,333 90,380 369,763 36,237 317,084 1,571,407 Total funds borrowed 431,868 132,914 71,655 399,750 7,614 221,273 1,265,074 Selected Financial Ratios Return on assets 6.14 % 3.42 % 2.15 % (18.49 %) 4.46 % (3.67 %) (2.51 %) Return on equity 25.48 15.22 4.81 NM 38.67 (11.85 ) (13.34 ) Interest yield 15.88 8.94 12.24 4.03 N/A N/A 10.91 Net interest margin 14.35 7.44 8.94 (1.31 ) N/A N/A 8.17 Reserve coverage 0.50 0.51 0.12 9.81 N/A N/A 2.71 Delinquency ratio 0.55 0.10 0.51 4.06 N/A N/A 1.29 Charge off ratio 3.26 1.27 0.00 9.66 N/A N/A 3.53 |
Other Operating Expenses
Other Operating Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses | (11) OTHER OPERATING EXPENSES (Investment Company Accounting) The major components of other operating expenses were as follows. (dollars in thousands) For the Three For the Three For the Nine Directors’ fees $ 89 $ 101 $ 230 Miscellaneous taxes 120 84 170 Computer expenses 74 51 176 Depreciation and amortization 23 23 71 Other expenses 281 161 464 Total other operating expenses $ 587 $ 420 $ 1,111 |
Selected Financial Ratios and O
Selected Financial Ratios and Other Data | 9 Months Ended |
Sep. 30, 2018 | |
Investment Company [Abstract] | |
Selected Financial Ratios and Other Data | (12) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting) The following table provides selected financial ratios and other data for the three months ended March 31, 2018 and September 30, 2017, and the nine months ended September 30, 2017 under Investment Company Accounting. Three Months Ended, Nine Months Ended, (Dollars in thousands, except per share data) March 31, 2018 September 30, 2017 Net share data Net asset value at the beginning of the period $ 11.80 $ 11.65 $ 11.91 Net investment loss (0.15 ) (0.07 ) (0.26 ) Income tax benefit 0.03 0.26 0.63 Net realized gains (losses) on investments (1.44 ) 0.04 0.16 Net change in unrealized appreciation (depreciation) on investments 0.94 (0.20 ) (0.66 ) Net increase (decrease) in net assets resulting from operations (0.62 ) 0.03 (0.13 ) Issuance of common stock (0.03 ) (0.00 ) (0.10 ) Repurchase of common stock — — — Net investment income — — — Return of capital — — — Net realized gains on investments — — — Total distributions — — — Total increase (decrease) in net asset value (0.65 ) 0.03 (0.23 ) Net asset value at the end of the period (1) $ 11.15 $ 11.68 $ 11.68 Per share market value at beginning of period $ 3.53 $ 2.39 $ 3.02 Per share market value at end of period 4.65 2.17 2.17 Total return (2) 129 % (37 %) (38 %) Ratios/supplemental data Total shareholders’ equity (net assets) $ 272,437 $ 283,580 $ 283,580 Average net assets $ 284,021 $ 284,151 $ 285,673 Total expense ratio (3) (4) 10.02 % 1.49 % 2.21 % Operating expenses to average net assets (4) 5.87 5.13 4.49 Net investment loss after income taxes to average net assets (4) (4.61 ) (3.48 ) (1.97 ) (1) Includes $0 and $0 of undistributed net investment income per share and $0 and $0 of undistributed net realized gains per share as of March 31, 2018 and September 30, 2017. (2) Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period. (3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. (4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290 and $1,330, and operating expenses of $1,150 and $1,037, which formerly were the Company’s were now MSC’s for the three months ended March 31, 2018 and September 30, 2017, and were $3,938 of servicing fee income, and $3,129 of operating expenses for the nine months ended September 30, 2017. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, 3.10%, 6.58%, and (3.23%) in the September 30, 2017 quarter, and 3.86%, 5.95%, and (1.97%) in the nine months ended September 30, 2017. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (13) RELATED PARTY TRANSACTIONS Certain directors, officers and shareholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and Medallion 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, is an officer of LAX Group, LLC (LAX), one of the Company’s equity investments. Mr. Rudnick receives a salary from LAX of $172,000 per year, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year end bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200. The Company’s consolidated subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which they make an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Petty of $7,114,000 that earns interest at an annual rate of 2% as of September 30, 2018. The Company and MSC serviced $311,988,000 and $314,974,000 of loans for Medallion Bank at December 31, 2017 and September 30, 2017. Under Investment Company Accounting, included in net investment income were amounts as described in the table below that were received from Medallion Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf. The Company had assigned its servicing rights to the Medallion Bank portfolio to MSC, a wholly-owned entity that had been unconsolidated under Investment Company Accounting. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from Medallion Bank by MSC. As a result, in the three months ended March 31, 2018 and the three and nine months ended September 30, 2017, $1,290,000, $1,330,000 and $3,938,000 of servicing fee income was earned by MSC. The following table summarizes the net revenues received from Medallion Bank not eliminated under Investment Company Accounting. Three Months Ended, Nine Months Ended, (Dollars in thousands) March 31, 2018 September 30, Reimbursement of operating expenses $ 250 $ 182 $ 636 Loan origination and servicing fees 6 2 5 Total other income $ 256 $ 184 $ 641 The Company had a loan to Medallion Fine Art, Inc. in the amount of $999,000 as of December 31, 2017, which was repaid in full during the 2018 first quarter. The loan bore interest at a rate of 12%, all of which was paid in kind. During 2017, the Company advanced $0, and was repaid $2,165,000 with respect to this loan. Additionally, the Company recognized $10,000 of interest income not eliminated for the nine months ended September 30, 2018, and $38,000 and $163,000 in the three and nine months ended September 30, 2017 with respect to this loan. The Company and MCI have loans to RPAC, an affiliate of Medallion Motorsports LLC, which totaled $16,472,000 as of December 31, 2017 and under Investment Company Accounting had not been eliminated, and which were placed on nonaccrual during 2017. These loans have been eliminated in consolidation for the three and six months ended as of September 30, 2018. The loans bear interest at 2%, inclusive of cash and paid in kind interest. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018, and $0 and $56,000 for the three and nine months ended September 30, 2017 with respect to these loans. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (14) FAIR VALUE OF FINANCIAL INSTRUMENTS FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet (a) Cash – (b) Equity securities – (c) Investment securities – (d) Loans receivable – (e) Floating rate borrowings – (f) Commitments to extend credit – off-balance-sheet (g) Fixed rate borrowings Bank Holding Company Accounting Investment Company Accounting (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and federal funds sold (1) $ 143,560 $ 143,560 $ 12,690 $ 12,690 Equity investments 10,752 10,752 — — Investment securities 45,757 45,757 — — Loans receivable 1,060,061 1,060,061 — — Investments — — 610,135 610,135 Accrued interest receivable (2) 7,005 7,005 547 547 Financial liabilities Funds borrowed (3) 1,265,074 1,266,016 327,623 330,084 Accrued interest payable 6,118 6,118 3,831 3,831 (1) Categorized as level 1 within the fair value hierarchy. (2) Categorized as level 3 within the fair value hierarchy. (3) As of September 30, 2018 and December 31, 2017, publicly traded retail notes traded at a premium to par of $942 and $2,461. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and liabilities | (15) FAIR VALUE OF ASSETS AND LIABILITIES The Company follows the provisions of FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. In accordance with FASB ASC 820, the Company has categorized its assets and liabilities measured at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). Our 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 (level 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 (level 1 and 2) and unobservable inputs (level 3). Assets and liabilities measured at fair value, recorded on the consolidated balance sheets, are categorized based on the inputs to the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives, most US Government and agency securities, and certain other sovereign government obligations). Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: A) Quoted prices for similar assets or liabilities in active markets (for example, restricted stock); B) Quoted price for identical or similar assets or liabilities in non-active C) Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter 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. The following paragraphs describe the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis under both Bank Holding Company Accounting (applicable as of June 30, 2018 and for the quarter then ended) and Investment Company Accounting (applicable to prior periods). Bank Holding Company Accounting Commencing with the quarter ended June 30, 2018, equity investments are recorded at cost and are evaluated for impairment periodically. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2018. Bank Holding Company Accounting (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,752 $ 10,752 Available for sale investment securities (1) — 45,757 — 45,757 Total $ — $ 45,757 $ 10,752 $ 56,509 (1) Total unrealized losses of $469, net of tax, was included in accumulated other comprehensive income (loss) for the six months ended September 30, 2018 related to these assets. Investment Company Accounting Medallion loans are primarily collateral-based lending, whereby the collateral value exceeds the amount of the loan, providing sufficient excess collateral to protect against losses to the Company. As a result, the initial valuation assessment is that as long as the loan is current and performing, its fair value approximates the par value of the loan. To the extent a loan becomes nonperforming, the collateral value has been adequate to result in a complete recovery. In a case where the collateral value was inadequate, an unrealized loss would be recorded to reflect any shortfall. Collateral values for medallion loans are typically obtained from transfer prices reported by the regulatory agency in a particular local market (e.g. New York City Taxi and Limousine Commission). Those portfolios had historically been at very low loan to collateral value ratios, and as a result, historically have not been highly sensitive to changes in collateral values. Over the last few years, as medallion collateral values have declined, the impact on the Company’s valuation analysis has become more significant, which could result in a significantly lower fair value measurement. The mezzanine and other secured commercial portions of the commercial loan portfolio are a combination of cash flow and collateral based lending. The initial valuation assessment is that as long as the loan is current and performing, its fair value approximates the par value of the loan. If a loan becomes nonperforming, an evaluation is performed which considers and analyzes a variety of factors which may include the financial condition and operating performance of the borrower, the adequacy of the collateral, individual credit risks, historical loss experience, the relationships between current and projected market rates and portfolio rates of interest and maturities, as well as general market trends for businesses in the same industry. Since each individual nonperforming loan has its own unique attributes, the factors analyzed, and their relative importance to each valuation analysis, differ between each asset, and may differ from period to period for a particular asset. The valuation is highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changes significantly from one period to another, that change could result in a significantly lower or higher fair market value measurement. For example, if a borrower’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have a material impact on the valuation in the current period. The investment in Medallion Bank was subject to a thorough valuation analysis as described previously, and on at least an annual basis, the Company also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value. The Company determined whether any factors gave rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial Investments in controlled subsidiaries, other than Medallion Bank, equity investments, and investments other than securities were valued similarly, while also considering available current market data, including relevant and applicable market trading and transaction comparables, the nature and realizable value of any collateral, applicable interest rates and market yields, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, and borrower financial analysis, among other factors. As a result of this valuation process, the Company used the actual results of operations of the controlled subsidiaries as the best estimate of changes in fair value, in most cases, and records the results as a component of unrealized appreciation (depreciation) on investments. For the balance of controlled subsidiary investments, equity investments, and investments other than securities positions, the result of the analysis resulted in changes to the value of the position if there is clear evidence that its value has either decreased or increased in light of the specific facts considered for each investment. The valuation is highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changes significantly from one period to another, that change could result in a significantly lower or higher fair market value measurement. For example, if an investee’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have a material impact on the valuation in the current period. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2017. Investment Company Accounting (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Medallion loans $ — $ — $ 208,279 $ 208,279 Commercial loans — — 90,188 90,188 Investments in Medallion Bank and other controlled subsidiaries — — 302,147 302,147 Equity investments — — 9,521 9,521 Investments other than securities — — 7,450 7,450 Other assets — — 339 339 Included in level 3 investments as of December 31, 2017 is primarily the investment in Medallion Bank, as well as other consolidated subsidiaries such as MSC, and other investments detailed in the consolidated summary schedule of investments following these footnotes. Included in level 3 equity investments are unregistered shares of common stock in a publicly-held company, as well as certain private equity positions in non-marketable The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the quarter and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the quarters ended March 31, 2018 and September 30, 2017 and the nine months ended September 30, 2017 under Investment Company Accounting. (Dollars in thousands) Equity June 30, 2018 $ 10,773 Gains (losses) included in earnings (400 ) Purchases, investments, and issuances 631 Sales, maturities, settlements, and distributions (252 ) Transfers in — September 30, 2018 $ 10,752 Amounts related to held assets (1) ($ 400 ) (Dollars in thousands) Equity March 31, 2018 $ 9,458 Gains (losses) included in earnings (774 ) Purchases, investments, and issuances 1,160 Sales, maturities, settlements, and distributions (469 ) Transfers in (2) 1,377 September 30, 2018 $ 10,752 Amounts related to held assets (1) ($ 774 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. (2) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter. (Dollars in thousands) Medallion Commercial Investments in Equity Investments Other December 31, 2017 $ 208,279 $ 90,188 $ 302,147 $ 9,521 $ 7,450 $ 339 Gains (losses) included in earnings (38,190 ) (8 ) 29,143 (993 ) (1,915 ) — Purchases, investments, and issuances 7 7,252 462 935 — — Sales, maturities, settlements, and distributions (8,941 ) (3,812 ) (583 ) (5 ) — — March 31, 2018 $ 161,155 $ 93,620 $ 331,169 $ 9,458 $ 5,535 $ 339 Amounts related to held assets (1) ($ 38,190 ) ($ 10 ) $ 29,143 ($ 993 ) ($ 1,915 ) $ — (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018. (Dollars in thousands) Medallion Commercial Investments in Equity Investments Other June 30, 2017 $ 233,415 $ 78,092 $ 301,819 $ 10,316 $ 9,510 $ 354 Gains (losses) included in earnings (6,690 ) (73 ) 3,291 (325 ) — (15 ) Purchases, investments, and issuances 1,475 6,007 250 300 — — Sales, maturities, settlements, and distributions (3,620 ) (1,266 ) (1,499 ) (307 ) — — September 30, 2017 $ 224,580 $ 82,760 $ 303,861 $ 9,984 $ 9,510 $ 339 Amounts related to held assets (1) ($ 6,669 ) $ 75 $ 3,291 ($ 325 ) $ — ($ 15 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2017. (Dollars in thousands) Medallion Commercial Investments in Equity Investments Other December 31, 2016 $ 266,816 $ 83,634 $ 293,360 $ 8,407 $ 9,510 $ 354 Gains (losses) included in earnings (27,837 ) (476 ) 12,345 3,830 — (15 ) Purchases, investments, and issuances 1,795 13,823 652 1,156 — — Sales, maturities, settlements, and distributions (16,194 ) (14,221 ) (2,496 ) (3,409 ) — — September 30, 2017 $ 224,580 $ 82,760 $ 303,861 $ 9,984 $ 9,510 $ 339 Amounts related to held assets (1) ($ 27,764 ) ($ 375 ) $ 12,345 $ 1,056 $ — ($ 15 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2017. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 48,702 $ 48,702 Loan collateral in process of foreclosure 59,761 59,761 Other receivables 5,500 5,500 Total $ — $ — $ 113,963 $ 113,963 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, The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of September 30, 2018 were as follows under Bank Holding Company Accounting. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments 6,538 Investee financial analysis Financial condition and operating performance of the borrower Collateral support N/A 2,550 Investee book value Financial condition and operating performance of the investee N/A Precedent arm’s length Business enterprise value $ 6,018 – $7,218 Business enterprise value/revenue multiples 0.94x – 4.42x 1,455 Precedent market Offering price $ 8.73 / share 209 Investee book value Valuation indicated by investee filings N/A The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2017 were as follows under Investment Company Accounting. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Medallion Loans $ 208,279 Precedent market Adequacy of collateral 1% - 420% (131 %) Commercial Loans – Mezzanine and Other 90,188 Borrower financial Financial condition and N/A the borrower Portfolio yields 2% -19.00% (12.02% ) Investment in Medallion Bank 290,548 Precedent M&A Price / book value 2.1x to 2.5x Price / earnings 8.7x to 10.6x Discounted cash Discount rate 17.50 % Terminal value $ 470,964 to $623,007 Investment in Other Controlled Subsidiaries 4,623 Investee financial Financial condition and N/A Enterprise value $ 37,500 - $41,500 Equity value $ 2,000 - $5,000 3,878 Investee book Financial condition and N/A Third party valuation/ N/A 3,001 Investee book Financial condition and N/A Third party offer to N/A 97 Investee book Financial condition and operating performance of N/A Equity Investments 5,417 Investee financial Financial condition and N/A Collateral support N/A 2,193 Investee financial Equity value $ 2,000 - $5,000 Preferred equity yield 12 % 1,455 Precedent market Offering price $ 8.73/share 456 Investee book Valuation indicated by N/A Investments Other Than Securities 7,450 Precedent market Transfer prices of N/A Cash flow analysis Discount rate in cash 6 % Other Assets 339 Borrower Adequacy of collateral 0 % |
Investments Other Than Securiti
Investments Other Than Securities | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investments [Abstract] | |
Investments Other Than Securities | (16) INVESTMENTS OTHER THAN SECURITIES (Investment Company Accounting) The following table presents the Company’s investments other than securities as of December 31, 2017 under Investment Company Accounting. Investment Type (Dollars in thousands) Number of Investment Value as of City of Chicago taxicab medallions 154 (1) $ 8,411 $ 7,238 (2) City of Chicago taxicab medallions (handicap accessible) 5 (1) 278 212 (3) Total investments other than securities $ 8,689 $ 7,450 (1) Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying (2) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for Federal income tax purposes was $1,392 at December 31, 2017. (3) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for Federal income tax purposes was $40 at December 31, 2017. |
Small Business Lending Fund Pro
Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) | (17) SMALL BUSINESS LENDING FUND PROGRAM (SBLF) AND TROUBLED ASSETS RELIEF PROGRAM (TARP) On February 27, 2009 and December 22, 2009, Medallion Bank issued, and the US Treasury purchased under the TARP Capital Purchase Program (the CPP) Medallion Bank’s fixed rate non-cumulative Perpetual Senior Non-Cumulative Perpetual |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | (18) VARIABLE INTEREST ENTITIES During the quarter, the Company determined that Trust III is a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC is its primary beneficiary. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are considered a variable interest. In addition, this conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC has also been subject to a limited guaranty which was considered a variable interest because MFC absorbed variability as a result of the on-going performance of the loans in Trust III. The following table shows the assets and liabilities of Trust III as of September 30, 2018 and December 31, 2017. Bank Holding Investment ( Dollars in thousands) UNAUDITED December 31, 2017 Assets Cash $ 166 $ 393 Net loans receivable 45,384 — Net investments — 96,688 Accrued interest receivable 97 170 Loan collateral in process of foreclosure 17,865 — Total assets $ 63,512 $ 97,251 Liabilities Accounts payable and accrued expenses $ 69 $ — Accrued interest payable 2,364 1,849 DZ loan 96,058 99,984 Total liabilities 98,491 101,833 Assets held by Trust III are restricted and can only be used to settle obligations owed to DZ Bank. The liabilities of Trust III are non-recourse |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | (19) SUBSEQUENT EVENTS On October 29, 2018, a credit facility with a maturity date of November 1, 2018 was extended until March 1, 2019. On November 8, 2018, MFC’s limited recourse guaranty of the obligations of Trust III to DZ Bank was terminated. As consideration for the termination of such guaranty, MFC issued to DZ Bank a promissory note in the amount of $1.4 million, payable in quarterly installments over the next five years. This restructuring resulted in the deconsolidation of Trust III in the Company’s financial results effective November 8, 2018; subsequent to such date, the Company will not include any additional losses incurred by Trust III. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Change to Bank Holding Company Accounting | Change to Bank Holding Company Accounting As described above, effective April 2, 2018, the Company withdrew its previous election to be regulated as a BDC under the 1940 Act. Prior to such time, the Company was a closed-end, non-diversified management |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (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 other receivables, investments other than securities, loans held for sale, 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. Prior to the Company’s election to withdraw from being regulated as a BDC under the 1940 Act effective April 2, 2018, Medallion Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018, and as such see Note 6 for the presentation of financial information for Medallion Bank and other controlled subsidiaries for such prior periods. 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. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, (FASB ASC 820), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 14 and 15 to the consolidated financial statements. |
Equity Investments | Equity Investments Equity investments of $10,752,000 at September 30, 2018, comprised mainly of nonmarketable stock, equity units and equity warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry. Included in the equity investments were non-marketable |
Investment Securities (Bank Holding Company Accounting) | Investment Securities (Bank Holding Company Accounting) The Company follows FASB ASC Topic 320, Investments – Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. from time-to-time in that held-to-maturity securities available-for-sale . |
Other Investment Valuation (Investment Company Accounting) | Other Investment Valuation (Investment Company Accounting) Prior to April 2, 2018, under the 1940 Act, the Company’s investment in Medallion Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial At December 31, 2017, there were non-marketable |
Loans | Loans The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were recharged at fair value in connection with the change in reporting, and balances, net of reserves, became the fair value opening balances. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At September 30, 2018 and December 31, 2017, net loan origination costs were $14,041,000 and $90,000 ($11,187,000 when combined with Medallion Bank). The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization (accretion) to income for the three months ended September 30, 2018 and 2017 was $1,147,000 and ($17,000) ($901,000 when combined with Medallion Bank), and was $2,192,000 ($3,065,000 when combined with Medallion Bank) and ($55,000) ($2,526,000 when combined with Medallion Bank) for the comparable nine month periods. Interest income is recorded on the accrual basis. Taxicab 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 portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to Loan collateral in process of foreclosure primarily includes taxicab medallion loans that have reached 120 days past due and have been charged down to their net realizable value, in addition to consumer repossessed collateral in the process of being sold. The taxicab medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower, to the liquidation of the collateral securing the loans. The Company had $123,173,000 and $183,529,000 of net loans pledged as collateral under borrowing arrangements at September 30, 2018 and December 31, 2017. The Company accounted for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $26,558,000 at September 30, 2018 and $338,867,000 at December 31, 2017, which included $311,988,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, most of which relates to servicing assets held by Medallion Bank, and determined that no material servicing asset or liability existed as of September 30, 2018 and December 31, 2017. The Company assigned its servicing rights to the Medallion Bank portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from Medallion Bank by MSC. |
Allowance for Loan Losses (Bank Holding Company Accounting) | Allowance for Loan Losses (Bank Holding Company Accounting) The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, non performing loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $15,587,000 (includes Bank’s reserves since April 2 nd |
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting) | Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting) Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly. Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Unrealized appreciation on investments was $139,700,000, and $100,732,000 as of December 31, 2017 and September 30, 2017. Refer to Note 5 for additional details. |
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 Bank Holding Company 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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of September 30, 2018, the Company had goodwill and intangible assets of $210,761 and recognized $361 and $722 of amortization expense for the three and nine months periods then ended. (in thousands) Fair Value as of Allocation as Medallion Bank Assets Net loans (1) $ 890,000 Other assets 130,393 Liabilities Funds borrowed and other liabilities (853,650 ) Total fair value excluding goodwill and intangibles 166,743 Goodwill 150,803 Intangibles 28,900 Total fair value (2) $ 346,446 $ 346,446 (1) Includes $12,387 of premiums associated with the loan portfolio. (2) Includes $26,303 of preferred stock held by the US Treasury. See Note 17 for details. (in thousands) Fair Value as Allocation as RPAC Racing LLC Assets Cash $ 1,647 Net fixed assets 774 Race cars and parts, net 203 Race cars held for sale 916 Other assets 1,902 Liabilities Deferred revenue (6,531 ) Notes payable (1) (27,220 ) Other liabilities (2,275 ) Total fair value excluding goodwill and intangibles (30,584 ) Intangibles 31,779 Total fair value (2) $ 1,195 $ 1,195 (1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018. (2) Fair value as of March 31, 2018 represents the Company’s investment in RPAC Racing LLC series D units. |
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 $131,000 and $23,000 ($64,000 had Medallion Bank been consolidated) for the quarters ended September 30, 2018 and 2017, and was $289,000 and $71,000 ($166,000 had Medallion Bank been consolidated) for the comparable nine months. |
Deferred Costs | Deferred Costs Deferred financing costs, included in other assets, represents 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 $558,000 and $229,000 ($567,000 had Medallion Bank been consolidated) for the quarters ended September 30, 2018 and 2017, and was $1,322,000 and $697,000 ($1,680,000 had Medallion Bank been consolidated) for the comparable nine months, recorded as interest expense. 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 are amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for these purposes was $4,859,000, $3,070,000 ($5,011,000 had Medallion Bank been consolidated), and $3,295,000 ($5,437,000 had Medallion Bank been consolidated) as of September 30, 2018, December 31, 2017, and September 30, 2017. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (“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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense. |
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Net loss/ net decrease in net assets resulting from operations available to common shareholders ($ 4,697 ) $ 619 ($ 34,218 ) ($ 3,067 ) Weighted average common shares outstanding applicable to basic EPS 24,235,242 23,930,086 24,207,273 23,916,334 Effect of dilutive stock options — — — — Effect of restricted stock grants — 153,833 — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,235,242 24,083,919 24,207,273 23,916,334 Basic loss per share ($ 0.19 ) $ 0.03 ($ 1.41 ) ($ 0.13 ) Diluted loss per share (0.19 ) 0.03 (1.41 ) (0.13 ) Potentially dilutive common shares excluded from the above calculations aggregated 115,000 and 359,000 shares as of September 30, 2018 and 2017. |
Stock Compensation | Stock Compensation The Company follows FASB ASC Topic 718 (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 is reflected in net income (loss)/net increase (decrease) in net assets 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 (loss)/net increase in net assets 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 nine months ended September 30, 2018 and 2017, the Company issued 101,010 and 258,232 of restricted shares of stock-based compensation awards, and 39,000 and 23,333 shares of other stock-based compensation awards, and recognized $151,000 and $446,000, or $0.01 and $0.02 per share for the 2018 third quarter and nine months, and $222,000 and $551,000, or $0.01 and $0.02 per share in the comparable 2017 periods, of non-cash |
Derivatives | Derivatives The Company manages its exposure to increases in market rates of interest by periodically purchasing interest rate caps to lock in the cost of funds of its variable-rate debt in the event of a rapid run up in interest rates. The Company entered into contracts to purchase interest rate caps on $20,000,000 of notional value of principal from various multinational banks, with termination dates ranging to December 2018. The caps provide for payments to the Company if various LIBOR thresholds are exceeded during the cap terms. Total cap purchases were generally fully expensed when paid, including $0 for the three and nine months ended September 30, 2018 and $0 and $19,000 for the comparable 2017 periods, and all are carried at $0 on the balance sheet at September 30, 2018. |
Regulatory Capital | Regulatory Capital Medallion Bank is subject to various regulatory capital requirements administered by the Federal Deposit Insurance Corporation (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 FDIC-insured banks, including Medallion 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, Medallion Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with the Company or its affiliates. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, and that an adequate allowance for loan losses be maintained. As of September 30, 2018, the Bank’s Tier 1 leverage capital ratio was 15.08%. 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- September 30, 2018 December 31, 2017 Common equity Tier 1 capital — — $ 138,946 $ 137,494 Tier 1 capital — — 165,249 163,797 Total capital — — 178,552 176,876 Average assets — — 1,096,094 1,127,087 Risk-weighted assets — — 1,010,792 995,145 Leverage ratio (1) 4.0 % 5.0 % 15.1 % 14.5 % Common equity Tier 1 capital ratio (2) 4.5 6.5 13.7 13.8 Tier 1 capital ratio (3) 6.0 8.0 16.3 16.5 Total capital ratio (3) 8.0 10.0 17.7 17.8 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will increase by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, by January 1, 2019, the Bank will be required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5% |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-13 In January 2017, the FASB issued ASU 2017-04 In June 2016, the FASB issued ASU 2016-13, Financial ASU 2016-13 applies In February 2016, the FASB issued ASU 2016-02, 2016-02 2016-02 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Purchase Price Accounting | 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 Bank Holding Company 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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of September 30, 2018, the Company had goodwill and intangible assets of $210,761 and recognized $361 and $722 of amortization expense for the three and nine months periods then ended. (in thousands) Fair Value as of Allocation as Medallion Bank Assets Net loans (1) $ 890,000 Other assets 130,393 Liabilities Funds borrowed and other liabilities (853,650 ) Total fair value excluding goodwill and intangibles 166,743 Goodwill 150,803 Intangibles 28,900 Total fair value (2) $ 346,446 $ 346,446 (1) Includes $12,387 of premiums associated with the loan portfolio. (2) Includes $26,303 of preferred stock held by the US Treasury. See Note 17 for details. (in thousands) Fair Value as Allocation as RPAC Racing LLC Assets Cash $ 1,647 Net fixed assets 774 Race cars and parts, net 203 Race cars held for sale 916 Other assets 1,902 Liabilities Deferred revenue (6,531 ) Notes payable (1) (27,220 ) Other liabilities (2,275 ) Total fair value excluding goodwill and intangibles (30,584 ) Intangibles 31,779 Total fair value (2) $ 1,195 $ 1,195 (1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018. (2) Fair value as of March 31, 2018 represents the Company’s investment in RPAC Racing LLC series D units. |
Summary of the Calculation of Basic and Diluted EPS | The table below shows the calculation of basic and diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 2018 2017 Net loss/ net decrease in net assets resulting from operations available to common shareholders ($ 4,697 ) $ 619 ($ 34,218 ) ($ 3,067 ) Weighted average common shares outstanding applicable to basic EPS 24,235,242 23,930,086 24,207,273 23,916,334 Effect of dilutive stock options — — — — Effect of restricted stock grants — 153,833 — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,235,242 24,083,919 24,207,273 23,916,334 Basic loss per share ($ 0.19 ) $ 0.03 ($ 1.41 ) ($ 0.13 ) Diluted loss per share (0.19 ) 0.03 (1.41 ) (0.13 ) |
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- September 30, 2018 December 31, 2017 Common equity Tier 1 capital — — $ 138,946 $ 137,494 Tier 1 capital — — 165,249 163,797 Total capital — — 178,552 176,876 Average assets — — 1,096,094 1,127,087 Risk-weighted assets — — 1,010,792 995,145 Leverage ratio (1) 4.0 % 5.0 % 15.1 % 14.5 % Common equity Tier 1 capital ratio (2) 4.5 6.5 13.7 13.8 Tier 1 capital ratio (3) 6.0 8.0 16.3 16.5 Total capital ratio (3) 8.0 10.0 17.7 17.8 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Schedule [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | Fixed maturity securities available for sale at September 30, 2018 consisted of the following: (Dollars in thousands) Amortized Cost Gross Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 35,147 $ 9 $ (1,188 ) $ 33,968 State and municipalities 12,239 1 (451 ) 11,789 Total $ 47,386 $ 10 $ (1,639 ) $ 45,757 |
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity | The amortized cost and estimated market value of investment securities as of September 30, 2018 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. (Dollars in thousands) Amortized Fair Due in one year or less $ 27 $ 27 Due after one year through five years 11,404 11,035 Due after five years through ten years 11,718 11,283 Due after ten years 24,237 23,412 Total $ 47,386 $ 45,757 |
Summary of Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses at September 30, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows. Less than Twelve Months Twelve Months and Over (Dollars in thousands) Gross Unrealized Fair Value Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (143 ) $ 7,165 $ (1,045 ) $ 24,751 State and municipalities (142 ) 5,918 (309 ) 5,726 Total $ (285 ) $ 13,083 $ (1,354 ) $ 30,477 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Summary of Inclusive Capitalized Loans | The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Amount As a Recreation $ 575,875 53 % Home improvement 169,642 16 Commercial 82,558 7 Medallion 261,470 24 Total gross loans 1,089,545 100 % Allowance for loan losses (29,484 ) Total net loans $ 1,060,061 |
Summary of Activity in Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the three and six months ended September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Three Months Six Months Allowance for loan losses – beginning balance (1) $ 21,425 $ — Charge-offs Recreation (4,825 ) (9,471 ) Home improvement (659 ) (1,220 ) Commercial — — Medallion (6,457 ) (12,737 ) Total charge-offs (11,941 ) (23,428 ) Recoveries Recreation 1,318 3,217 Home improvement 367 606 Commercial — 4 Medallion 110 304 Total recoveries 1,795 4,131 Net charge-offs (10,146 ) (19,297 ) Provision for loan losses 18,205 48,781 Allowance for loan losses – ending balance (2) $ 29,484 $ 29,484 (1) Beginning balance for the six months ended September 30, 2018 reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table. (2) Includes $15,587 of a general reserve for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 53% of the total allowance, and 7% of the loans in question. |
Summary of Composition of Allowance for Loan Losses by Type of Loan | The following table sets forth the composition of the allowance for loan losses by type as of September 30, 2018: Amount Percentage Allowance as a Recreation $ 2,880 10 % 0.50 % Home Improvement 861 3 0.51 Commercial 100 — 0.12 Medallion 25,643 87 9.81 Total $ 29,484 100 % 2.71 % |
Summary of Total Nonaccrual Loans and Foregone Interest | The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. Bank Holding Company Accounting Investment Company Accounting (Dollars in thousands) September 30, 2018 June 30, 2018 December 31, 2017 (1) September 30, 2017 (2) Total nonaccrual loans $ 45,765 $ 47,904 $ 98,494 $ 132,316 Interest foregone quarter to date 563 770 823 1,845 Amount of foregone interest applied to principal in the quarter 350 400 52 574 Interest foregone life to date 8,530 8,281 12,485 16,286 Amount of foregone interest applied to principal life to date 3,412 3,748 3,495 9,750 Percentage of nonaccrual loans to gross loan portfolio 4 % 4 % 31 % 36 % (1) Does not include Medallion Bank nonaccrual loans of $32,668, $1,487 of interest income foregone and $1,221 of foregone interest paid and applied to principal. (2) Does not include Medallion Bank nonaccrual loans of $39,626, $1,278 of interest income foregone and $1,102 of foregone interest paid and applied to principal. |
Summary of Performance Status of Loan | The following presents our performance status of loans as of September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Performing Non-Performing Total Recreation $ 570,800 $ 5,075 $ 575,875 Home improvement 169,475 167 169,642 Commercial 77,155 5,403 82,558 Medallion 223,413 38,057 261,470 Total $ 1,040,843 $ 48,702 $ 1,089,545 |
Summary of Attributes of Nonperforming Loan Portfolio | The following table provides additional information on attributes of the nonperforming loan portfolio as of September 30, 2018 under Bank Holding Company Accounting, all of which had an allowance recorded against the principal balance. September 30, 2018 Three Months Ended September 30, Six Months Ended (Dollars in thousands) Recorded Unpaid Related Average Recorded Interest Income Average Interest Income With an allowance recorded Recreation $ 5,075 $ 5,075 $ 180 $ 5,494 $ 106 $ 4,496 $ 231 Home improvement 167 167 3 178 — 119 — Commercial 5,403 5,814 100 7,047 (82 ) 5,838 (12 ) Medallion 38,057 39,038 10,085 55,065 101 54,917 215 Total nonperforming loans with an allowance $ 48,702 $ 50,094 $ 10,368 $ 67,784 $ 125 $ 65,370 $ 434 The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2017 and September 30, 2017. (Dollars in thousands) Recorded (1) (2) Unpaid Principal Average Recorded December 31, 2017 Medallion (3) $ 79,871 $ 82,612 $ 128,671 Commercial (3) 18,623 20,491 18,792 September 30, 2017 Medallion (3) $ 120,716 $ 123,199 $ 124,944 Commercial (3) 11,600 18,867 11,951 (1) As of December 31, 2017 and September 30, 2017, $20,851 and $55,871 of unrealized depreciation was recorded as a valuation allowance on these loans. (2) Interest income of $124 and $1,383 was recognized on loans for the three and nine months ended September 30, 2017. (3) Included in the unpaid principal balance is unearned paid-in-kind |
Summary of Aging of Loans | The following tables show the aging of all loans as of September 30, 2018 and December 31, 2017: Bank Holding Company Accounting Days Past Due Recorded September 30, 2018 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recreation $ 14,974 $ 4,095 $ 3,164 $ 22,233 $ 534,065 $ 556,298 $ — Home improvement 782 212 175 1,169 170,825 171,994 — Commercial 471 95 421 987 81,571 82,558 — Medallion 11,012 4,993 10,301 26,306 227,187 253,493 — Total $ 27,239 $ 9,395 $ 14,061 $ 50,695 $ 1,013,648 $ 1,064,343 $ — (1) Excludes loan premiums of $10,606 resulting from purchase price accounting and $14,596 of capitalized loan origination costs. Investment Company Accounting Days Past Due Recorded December 31, 2017 (Dollars in thousands) 31-60 61-90 91 + Total Current Total Medallion loans $ 16,049 $ 12,387 $ 59,701 $ 88,137 $ 140,279 $ 228,416 $ 265 Commercial loans Secured mezzanine — — — — 88,334 88,334 — Other secured commercial — — 749 749 1,728 2,477 — Total commercial loans — — 749 749 90,062 90,811 — Total $ 16,049 $ 12,387 $ 60,450 $ 88,886 $ 230,341 $ 319,227 $ 265 |
Summary of Troubled Debt Restructurings | The following table shows the troubled debt restructurings which the Company entered into during the three months ended September 30, 2018 under Bank Holding Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 10 $ 4,810 $ 4,810 The following table shows the troubled debt restructurings which the Company entered into during the nine months ended September 30, 2018 under a combined accounting approach. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 17 $ 7,505 $ 7,505 During the twelve months ended September 30, 2018, three loans modified as troubled debt restructurings were in default and had an investment value of $1,305,000 as of September 30, 2018, net of $773,000 of an allowance for loan loss under Bank Holding Company Accounting. The following table shows troubled debt restructurings which the Company entered into during the quarter ended September 30, 2017 under Investment Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 7 $ 2,994 $ 2,994 The following table shows troubled debt restructurings which the Company entered into during the nine months ended September 30, 2017 under Investment Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 54 $ 34,905 $ 34,831 Commercial loans 2 6,547 6,547 Total 56 $ 41,452 $ 41,378 |
Unrealized Appreciation (Depr_2
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investments [Abstract] | |
Schedule of Unrealized Appreciation (Depreciation) on Investments | The following table sets forth the pre-tax (Dollars in thousands) Medallion Commercial Investments in Equity Investments Total Balance December 31, 2017 ($ 20,338 ) ($ 513 ) $ 158,920 $ 3,121 ($ 1,490 ) $ 139,700 Net change in unrealized Appreciation on investments — — 38,795 (998 ) — 37,797 Depreciation on investments (38,170 ) 18 — — (1,915 ) (40,067 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — — — — Losses on investments 34,747 — — — — 34,747 Balance March 31, 2018 ($ 23,761 ) ($ 495 ) $ 197,715 $ 2,123 ($ 3,405 ) $ 172,177 (Dollars in thousands) Medallion Commercial Investment in Equity Investments Total Balance December 31, 2016 ($ 28,523 ) ($ 1,378 ) $ 152,750 $ 3,934 $ 584 $ 127,367 Net change in unrealized Appreciation on investments — — 3,751 1,261 — 5,012 Depreciation on investments (8,670 ) (332 ) — — — (9,002 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — (2,093 ) — (2,093 ) Losses on investments 825 — — 486 — 1,311 Balance March 31, 2017 (36,368 ) (1,710 ) 156,501 3,588 584 122,595 Net change in unrealized Appreciation on investments — — (771 ) 120 — (651 ) Depreciation on investments (12,425 ) (118 ) — — — (12,543 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — — — — Losses on investments 337 636 — — — 973 Balance June 30, 2017 (48,456 ) (1,192 ) 155,730 3,708 584 110,374 Net change in unrealized Appreciation on investments — — (2,771 ) (361 ) — (3,132 ) Depreciation on investments (6,669 ) 75 — — (15 ) (6,609 ) Reversal of unrealized appreciation (depreciation) related to realized Gains on investments — — — (272 ) — (272 ) Losses on investments 311 60 — — — 371 Balance September 30, 2017 ($ 54,814 ) ($ 1,057 ) $ 152,959 $ 3,075 $ 569 $ 100,732 |
Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio | The table below summarizes pre-tax Three Months Ended (Dollars in thousands) March 31, 2018 September 30, Nine Months Ended Net change in unrealized appreciation (depreciation) on investments Unrealized appreciation ($ 998 ) ($ 361 ) $ 1,132 Unrealized depreciation (38,152 ) (6,594 ) (28,253 ) Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries 29,115 2,035 11,089 Realized gains — (272 ) (2,363 ) Realized losses 34,747 371 2,656 Net unrealized losses on investments other than securities and other assets (1,915 ) (15 ) (15 ) Total $ 22,797 $ (4,836 ) $ (15,754 ) Net realized gains (losses) on investments Realized gains $ — $ 272 $ 2,363 Realized losses (34,747 ) (371 ) (2,656 ) Other gains — 1,187 4,189 Direct recoveries (chargeoffs) 2 (144 ) (111 ) Realized gains on investments other than securities and other assets — — — Total ($ 34,745 ) $ 944 $ 3,785 |
Medallion Bank (Tables)
Medallion Bank (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries | The following table presents information derived from Medallion Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three and nine months ended September 30, 2017. (Dollars in thousands) Three Months Nine Months Statement of comprehensive income Investment income $ 29,259 $ 82,247 Interest expense 3,660 9,952 Net interest income 25,599 72,295 Noninterest income 28 99 Operating expenses 6,668 19,368 Net investment income before income taxes 18,959 53,026 Income tax provision 2,940 7,035 Net investment income after income taxes 16,019 45,991 Net realized/unrealized losses of Medallion Bank (10,859 ) (34,586 ) Net increase in net assets resulting from operations of Medallion Bank 5,160 11,405 Unrealized depreciation on Medallion Bank (1) (592 ) (1,212 ) Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank (2,533 ) 896 Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries $ 2,035 $ 11,089 (1) Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank. |
Schedule of Balance Sheet and Net Investment | The following table presents Medallion Bank’s balance sheet and the net investment in other controlled subsidiaries as of December 31, 2017. (Dollars in thousands) December 31, Loans $ 864,819 Investment securities, at fair value 43,478 Net investments 908,297 Cash 110,233 Other assets, net 58,827 Total assets $ 1,077,357 Other liabilities $ 3,836 Due to affiliates 1,055 Deposits and other borrowings, including accrued interest payable 908,236 Total liabilities 913,127 Medallion Bank equity (2) 164,230 Total liabilities and equity $ 1,077,357 Investment in other controlled subsidiaries $ 11,449 Total investment in Medallion Bank and other controlled subsidiaries (3) $ 302,147 (1) Includes $26,303 of preferred stock issued to the US Treasury under the Small Business Lending Fund Program (SBLF). (2) Includes $152,267 of unrealized appreciation on Medallion Bank, in excess of Medallion Bank’s book value as of December 31, 2017. |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances of Funds Borrowed | The outstanding balances of funds borrowed were as follows: Payments Due for the Fiscal Year Ending September 30, Bank September 30, Investment Interest (Dollars in thousands) 2019 2020 2021 2022 2023 Thereafter 2018 2017 Rate (1) Deposits $ 417,151 $ 213,514 $ 135,218 $ 140,394 $ 40,698 $ — $ 946,975 $ — 2.04 % DZ loan 96,058 — — — — — 96,058 99,984 3.86 % SBA debentures and borrowings 3,621 25,877 8,500 — 5,000 37,500 80,498 79,564 3.40 % Notes payable to banks 60,039 — 7,265 — — — 67,304 81,450 4.47 % Retail notes — — 33,625 — — — 33,625 33,625 9.00 % Preferred securities — — — — — 33,000 33,000 33,000 4.45 % Other borrowings 500 7,114 — — — — 7,614 — 2.00 % Total $ 577,369 $ 246,505 $ 184,608 $ 140,394 $ 45,698 $ 70,500 $ 1,265,074 $ 327,623 2.64 % (1) Weighted average contractual rate as of September 30, 2018. |
Summary of Time Deposits on Basis of Their Maturity | The table presents time deposits of $100,000 or more by their maturity: (Dollars in thousands) September 30, 2018 Three months or less $ 126,721 Over three months through six months 72,280 Over six months through one year 218,150 Over one year 529,824 Total deposits $ 946,975 |
Summary of Key Attributes of Various Borrowing Arrangements with Lenders | The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of September 30, 2018. (Dollars in thousands) Borrower # of Lenders Note Maturity Type Note Balance Monthly Payment Average Interest (1) The Company 6/6 4/11 - 8/14 11/18 - 7/19 Term (2) $ 47,621 $ 47,621 Interest (3) 4.87 % Various (2) Medallion Chicago 3/28 11/11 - 12/11 6/19 - 9/21 Term (4) 25,708 19,683 $171 principal & 3.50 % N/A $ 73,329 $ 67,304 (1) At September 30, 2018, 30 day LIBOR was 2.26%, 360 day LIBOR was 2.92%, and the prime rate was 5.25%. (2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 4.50%, one note has an interest rate of LIBOR plus 3.50%, and the other interest rates on these borrowings are LIBOR plus 2%. (3) Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging from $0 to $75. (4) Guaranteed by the Company. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Deferred and Other Tax Assets and Liabilities | The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2018 and December 31, 2017. (Dollars in thousands) September 30, 2018 December 31, Goodwill and other intangibles/unrealized gain on investments in Medallion Bank ($ 45,736 ) ($ 35,297 ) Provision for loan losses/unrealized losses on loans and nonaccrual interest 27,002 10,071 Net operating loss carryforwards (1) 17,062 615 Unrealized gains on investments in other controlled subsidiaries — (3,617 ) Unrealized gains on investments other than securities — (1,395 ) Accrued expenses, compensation, and other 1,815 782 Unrealized gains on investments and other assets (3,877 ) (542 ) Total deferred tax liability (3,734 ) (29,383 ) Valuation allowance (167 ) (39 ) Deferred tax liability, net (3,901 ) (29,422 ) Taxes receivable 1,890 16,886 Net deferred and other tax liabilities ($ 2,011 ) ($ 12,536 ) (1) As of September 30, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $2,057 as of the balance sheet date. |
Schedule of Components of Tax Provision (Benefit) | The components of our tax benefit for the three and nine months ended September 30, 2018 and 2017 were as follows. Three Months Ended Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 Current Federal ($ 9,353 ) ($ 910 ) ($ 3,040 ) $ 639 State (2,318 ) (807 ) (1,078 ) (445 ) Deferred Federal 9,100 1,609 8,128 7,275 State 2,688 6,263 768 7,675 Net benefit for income taxes $ 117 $ 6,155 $ 4,778 $ 15,144 |
Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit | The following table presents a reconciliation of statutory federal income tax benefit to consolidated actual income tax benefit reported in net income/net increase in net assets for the three and nine months ended September 30, 2018 and 2017. Three Months Ended Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 Statutory Federal Income tax benefit at 21% (35% in 2017) $ 877 $ 1,937 $ 8,106 $ 6,374 State and local income taxes, net of federal income tax benefit (107 ) 99 994 327 Appreciation of Medallion Bank — 1,681 (1,974 ) 3,731 Depreciation of other unconsolidated subsidiaries — (462 ) — (462 ) Utilization of carry forwards (247 ) 459 (910 ) 2,715 Change in effective state income tax rate — 3,232 (1,358 ) 3,232 Non deductible expenses (215 ) — (403 ) — Other (191 ) (791 ) 323 (773 ) Total income tax benefit $ 117 $ 6,155 $ 4,778 $ 15,144 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Assumption Categories Used to Determine Value of Option Grants | The following assumption categories are used to determine the value of any option grants. Nine Months Ended September 30, 2018 2017 Risk free interest rate 2.82 % 1.84 % Expected dividend yield 4.86 7.39 Expected life of option in years (1) 6.00 6.00 Expected volatility (2) 30.00 30.00 (1) Expected life is calculated using the simplified method. (2) We determine our expected volatility based on our historical volatility. |
Summary of Activity for Stock Option Programs | The following table presents the activity for the stock option programs for the 2018 quarters and the 2017 full year. Number of Options Exercise Weighted Outstanding at December 31, 2016 345,518 $ 7.10-13.84 $ 9.67 Granted 29,666 2.14-2.61 2.35 Cancelled (54,558 ) 10.76-11.21 10.94 Exercised (1) — — — Outstanding at December 31, 2017 320,626 2.14-13.84 8.78 Granted — — — Cancelled — — — Exercised (1) — — — Outstanding at March 31, 2018 320,626 2.14-13.84 8.78 Granted 24,000 5.58 5.58 Cancelled (214,960 ) 9.22-9.24 9.22 Exercised (1) — — — Outstanding at June 30, 2018 129,666 $ 2.14-13.84 $ 7.45 Granted 15,000 5.27 5.27 Cancelled — — — Exercised (1) — — — Outstanding at September 30, 2018 (2) 144,666 $ 2.14-13.84 $ 7.23 Options exercisable at September 30, 2018 (2) 79,778 $ 2.22-13.84 $ 9.44 (1) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 and $0 for the 2018 and 2017 third quarter and nine months. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2018 and the related exercise price of the underlying options, was $174,000 for outstanding options and $33,000 for exercisable options as of September 30, 2018. The remaining contractual life was 7.22 years for outstanding options and 5.51 years for exercisable options at September 30, 2018. |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the 2018 quarters and the 2017 full year. Number of Shares Exercise Weighted Outstanding at December 31, 2016 167,703 $ 3.95-13.46 $ 8.88 Granted 327,251 2.06-3.93 2.48 Cancelled (8,988 ) 2.14-10.08 3.07 Vested (1) (77,384 ) 9.08-13.46 11.09 Outstanding at December 31, 2017 408,582 2.06-10.38 3.45 Granted 97,952 4.39 4.39 Cancelled (2,226 ) 3.93-9.08 5.86 Vested (1) (296,313 ) 2.06-10.38 3.24 Outstanding at March 31, 2018 207,995 2.06-7.98 4.16 Granted 212 3.93 3.93 Cancelled (199 ) 3.93 3.93 Vested (1) — — — Outstanding at June 30, 2018 208,008 2.06-13.84 7.45 Granted 2,846 5.27 5.27 Cancelled (1,617 ) 3.93-3.95 3.94 Vested (1) (6,266 ) 7.98 7.98 Outstanding at September 30, 2018 (2) 202,971 $ 2.06-5.27 $ 4.07 (1) The aggregate fair value of the restricted stock vested was $32,000 and $1,241,000 for the three and nine months ended September 30, 2018, and was $0 and $151,000 for the comparable 2017 periods. (2) The aggregate fair value of the restricted stock was $1,350,000 as of September 30, 2018. The remaining vesting period was 1.51 years at September 30, 2018. |
Summary of Activity for Unvested Options Outstanding | The following table presents the activity for the unvested options outstanding under the plans for the 2018 quarters. Number of Exercise Price Weighted Average Outstanding at December 31, 2017 and March 31, 2018 46,666 $ 2.14-9.38 $ 4.52 Granted 24,000 5.58 5.58 Cancelled — — — Vested (17,000 ) 2.22-9.38 7.16 Outstanding at June 30, 2018 53,666 $ 2.14-7.10 $ 4.16 Granted 15,000 5.27 5.27 Cancelled — — — Vested (3,778 ) 2.61 2.61 Outstanding at September 30, 2018 64,888 $ 2.14-7.10 $ 4.51 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following tables present segment data at September 30, 2018 and for the three and six months then ended. Three Months Ended September 30, 2018 Consumer Lending Commercial Medallion RPAC Corp. Consolidated (dollars in thousands) Recreation Home Total interest income $ 24,001 $ 3,968 $ 2,637 $ 2,126 $ — $ 420 $ 33,152 Total interest expense 2,306 709 681 3,672 40 1,479 8,887 Net interest income (loss) 21,695 3,259 1,956 (1,546 ) (40 ) (1,059 ) 24,265 Provision for loan losses 4,423 598 (75 ) 13,259 — — 18,205 Net interest income after loss provision 17,272 2,661 2,031 (14,805 ) (40 ) (1,059 ) 6,060 Sponsorship and race winnings — — — — 5,371 — 5,371 Race team related expenses — — — — (2,876 ) — (2,876 ) Other income (expense) (3,160 ) 400 (934 ) (4,077 ) (1,887 ) (2,860 ) (12,518 ) Net income before taxes 14,112 3,061 1,097 (18,882 ) 568 (3,919 ) (3,963 ) Income tax benefit (provision) (3,979 ) (863 ) (254 ) 4,371 (107 ) 949 117 Net Income (loss) after tax $ 10,133 $ 2,198 $ 843 ($ 14,511 ) $ 461 ($ 2,970 ) ($ 3,846 ) Balance Sheet Data Total loans, net $ 572,995 $ 168,781 $ 82,458 $ 235,827 $ — $ — $ 1,060,061 Total assets 582,610 175,333 90,380 369,763 36,237 317,084 1,571,407 Total funds borrowed 431,868 132,914 71,655 399,750 7,614 221,273 1,265,074 Selected Financial Ratios Return on assets 6.80 % 4.57 % 3.35 % (15.23 %) 4.94 % (4.60 %) (1.19 %) Return on equity 27.77 19.99 6.99 NM 42.83 (16.79 ) (6.59 ) Interest yield 15.87 8.10 12.87 3.41 N/A N/A 10.75 Net interest margin 14.34 6.65 9.54 (2.48 ) N/A N/A 7.94 Reserve coverage 0.50 0.51 0.12 9.81 N/A N/A 2.71 Delinquency ratio 0.55 0.10 0.51 4.06 N/A N/A 1.29 Charge off ratio 3.19 1.34 0.00 10.35 N/A N/A 3.69 Six Months Ended September 30, 2018 Consumer Lending Commercial Medallion RPAC Corp. Consolidated (dollars in thousands) Recreation Home Total interest income $ 46,133 $ 8,605 $ 4,959 $ 5,315 $ — $ 784 $ 65,796 Total interest expense 4,442 1,448 1,336 7,045 81 2,460 16,812 Net interest income (loss) 41,691 7,157 3,623 (1,730 ) (81 ) (1,676 ) 48,984 Provision for loan losses 9,133 1,475 100 38,073 — — 48,781 Net interest income after loss provision 32,558 5,682 3,523 (39,803 ) (81 ) (1,676 ) 203 Sponsorship and race winnings — — — — 10,599 — 10,599 Race team related expenses — — — — (5,416 ) — (5,416 ) Other income (expense) (8,680 ) (1,285 ) (2,044 ) (6,888 ) (4,124 ) (4,233 ) (27,254 ) Net income before taxes 23,878 4,397 1,479 (46,691 ) 978 (5,909 ) (21,868 ) Income tax benefit (provision) (6,141 ) (1,159 ) (339 ) 10,528 (150 ) 1,399 4,138 Net Income (loss) after tax $ 17,737 $ 3,238 $ 1,140 ($ 36,163 ) $ 828 ($ 4,510 ) ($ 17,730 ) Balance Sheet Data Total loans, net $ 572,995 $ 168,781 $ 82,458 $ 235,827 $ — $ — $ 1,060,061 Total assets 582,610 175,333 90,380 369,763 36,237 317,084 1,571,407 Total funds borrowed 431,868 132,914 71,655 399,750 7,614 221,273 1,265,074 Selected Financial Ratios Return on assets 6.14 % 3.42 % 2.15 % (18.49 %) 4.46 % (3.67 %) (2.51 %) Return on equity 25.48 15.22 4.81 NM 38.67 (11.85 ) (13.34 ) Interest yield 15.88 8.94 12.24 4.03 N/A N/A 10.91 Net interest margin 14.35 7.44 8.94 (1.31 ) N/A N/A 8.17 Reserve coverage 0.50 0.51 0.12 9.81 N/A N/A 2.71 Delinquency ratio 0.55 0.10 0.51 4.06 N/A N/A 1.29 Charge off ratio 3.26 1.27 0.00 9.66 N/A N/A 3.53 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Summary of Major Components of Other Operating Expenses | The major components of other operating expenses were as follows. (dollars in thousands) For the Three For the Three For the Nine Directors’ fees $ 89 $ 101 $ 230 Miscellaneous taxes 120 84 170 Computer expenses 74 51 176 Depreciation and amortization 23 23 71 Other expenses 281 161 464 Total other operating expenses $ 587 $ 420 $ 1,111 |
Selected Financial Ratios and_2
Selected Financial Ratios and Other Data (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investment Company [Abstract] | |
Summary of Selected Financial Ratios and Other Data | The following table provides selected financial ratios and other data for the three months ended March 31, 2018 and September 30, 2017, and the nine months ended September 30, 2017 under Investment Company Accounting. Three Months Ended, Nine Months Ended, (Dollars in thousands, except per share data) March 31, 2018 September 30, 2017 Net share data Net asset value at the beginning of the period $ 11.80 $ 11.65 $ 11.91 Net investment loss (0.15 ) (0.07 ) (0.26 ) Income tax benefit 0.03 0.26 0.63 Net realized gains (losses) on investments (1.44 ) 0.04 0.16 Net change in unrealized appreciation (depreciation) on investments 0.94 (0.20 ) (0.66 ) Net increase (decrease) in net assets resulting from operations (0.62 ) 0.03 (0.13 ) Issuance of common stock (0.03 ) (0.00 ) (0.10 ) Repurchase of common stock — — — Net investment income — — — Return of capital — — — Net realized gains on investments — — — Total distributions — — — Total increase (decrease) in net asset value (0.65 ) 0.03 (0.23 ) Net asset value at the end of the period (1) $ 11.15 $ 11.68 $ 11.68 Per share market value at beginning of period $ 3.53 $ 2.39 $ 3.02 Per share market value at end of period 4.65 2.17 2.17 Total return (2) 129 % (37 %) (38 %) Ratios/supplemental data Total shareholders’ equity (net assets) $ 272,437 $ 283,580 $ 283,580 Average net assets $ 284,021 $ 284,151 $ 285,673 Total expense ratio (3) (4) 10.02 % 1.49 % 2.21 % Operating expenses to average net assets (4) 5.87 5.13 4.49 Net investment loss after income taxes to average net assets (4) (4.61 ) (3.48 ) (1.97 ) (1) Includes $0 and $0 of undistributed net investment income per share and $0 and $0 of undistributed net realized gains per share as of March 31, 2018 and September 30, 2017. (2) Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period. (3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. (4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290 and $1,330, and operating expenses of $1,150 and $1,037, which formerly were the Company’s were now MSC’s for the three months ended March 31, 2018 and September 30, 2017, and were $3,938 of servicing fee income, and $3,129 of operating expenses for the nine months ended September 30, 2017. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, 3.10%, 6.58%, and (3.23%) in the September 30, 2017 quarter, and 3.86%, 5.95%, and (1.97%) in the nine months ended September 30, 2017. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Summary of net revenue received | The following table summarizes the net revenues received from Medallion Bank not eliminated under Investment Company Accounting. Three Months Ended, Nine Months Ended, (Dollars in thousands) March 31, 2018 September 30, Reimbursement of operating expenses $ 250 $ 182 $ 636 Loan origination and servicing fees 6 2 5 Total other income $ 256 $ 184 $ 641 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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. Bank Holding Company Accounting Investment Company Accounting (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and federal funds sold (1) $ 143,560 $ 143,560 $ 12,690 $ 12,690 Equity investments 10,752 10,752 — — Investment securities 45,757 45,757 — — Loans receivable 1,060,061 1,060,061 — — Investments — — 610,135 610,135 Accrued interest receivable (2) 7,005 7,005 547 547 Financial liabilities Funds borrowed (3) 1,265,074 1,266,016 327,623 330,084 Accrued interest payable 6,118 6,118 3,831 3,831 (1) Categorized as level 1 within the fair value hierarchy. (2) Categorized as level 3 within the fair value hierarchy. (3) As of September 30, 2018 and December 31, 2017, publicly traded retail notes traded at a premium to par of $942 and $2,461. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2018. Bank Holding Company Accounting (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,752 $ 10,752 Available for sale investment securities (1) — 45,757 — 45,757 Total $ — $ 45,757 $ 10,752 $ 56,509 (1) Total unrealized losses of $469, net of tax, was included in accumulated other comprehensive income (loss) for the six months ended September 30, 2018 related to these assets. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2017. Investment Company Accounting (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Medallion loans $ — $ — $ 208,279 $ 208,279 Commercial loans — — 90,188 90,188 Investments in Medallion Bank and other controlled subsidiaries — — 302,147 302,147 Equity investments — — 9,521 9,521 Investments other than securities — — 7,450 7,450 Other assets — — 339 339 |
Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities | The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the quarter and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the quarters ended March 31, 2018 and September 30, 2017 and the nine months ended September 30, 2017 under Investment Company Accounting. (Dollars in thousands) Equity June 30, 2018 $ 10,773 Gains (losses) included in earnings (400 ) Purchases, investments, and issuances 631 Sales, maturities, settlements, and distributions (252 ) Transfers in — September 30, 2018 $ 10,752 Amounts related to held assets (1) ($ 400 ) (Dollars in thousands) Equity March 31, 2018 $ 9,458 Gains (losses) included in earnings (774 ) Purchases, investments, and issuances 1,160 Sales, maturities, settlements, and distributions (469 ) Transfers in (2) 1,377 September 30, 2018 $ 10,752 Amounts related to held assets (1) ($ 774 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. (2) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter. (Dollars in thousands) Medallion Commercial Investments in Equity Investments Other December 31, 2017 $ 208,279 $ 90,188 $ 302,147 $ 9,521 $ 7,450 $ 339 Gains (losses) included in earnings (38,190 ) (8 ) 29,143 (993 ) (1,915 ) — Purchases, investments, and issuances 7 7,252 462 935 — — Sales, maturities, settlements, and distributions (8,941 ) (3,812 ) (583 ) (5 ) — — March 31, 2018 $ 161,155 $ 93,620 $ 331,169 $ 9,458 $ 5,535 $ 339 Amounts related to held assets (1) ($ 38,190 ) ($ 10 ) $ 29,143 ($ 993 ) ($ 1,915 ) $ — (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018. (Dollars in thousands) Medallion Commercial Investments in Equity Investments Other June 30, 2017 $ 233,415 $ 78,092 $ 301,819 $ 10,316 $ 9,510 $ 354 Gains (losses) included in earnings (6,690 ) (73 ) 3,291 (325 ) — (15 ) Purchases, investments, and issuances 1,475 6,007 250 300 — — Sales, maturities, settlements, and distributions (3,620 ) (1,266 ) (1,499 ) (307 ) — — September 30, 2017 $ 224,580 $ 82,760 $ 303,861 $ 9,984 $ 9,510 $ 339 Amounts related to held assets (1) ($ 6,669 ) $ 75 $ 3,291 ($ 325 ) $ — ($ 15 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2017. (Dollars in thousands) Medallion Commercial Investments in Equity Investments Other December 31, 2016 $ 266,816 $ 83,634 $ 293,360 $ 8,407 $ 9,510 $ 354 Gains (losses) included in earnings (27,837 ) (476 ) 12,345 3,830 — (15 ) Purchases, investments, and issuances 1,795 13,823 652 1,156 — — Sales, maturities, settlements, and distributions (16,194 ) (14,221 ) (2,496 ) (3,409 ) — — September 30, 2017 $ 224,580 $ 82,760 $ 303,861 $ 9,984 $ 9,510 $ 339 Amounts related to held assets (1) ($ 27,764 ) ($ 375 ) $ 12,345 $ 1,056 $ — ($ 15 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2017. |
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 48,702 $ 48,702 Loan collateral in process of foreclosure 59,761 59,761 Other receivables 5,500 5,500 Total $ — $ — $ 113,963 $ 113,963 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities | The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of September 30, 2018 were as follows under Bank Holding Company Accounting. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity investments 6,538 Investee financial analysis Financial condition and operating performance of the borrower Collateral support N/A 2,550 Investee book value Financial condition and operating performance of the investee N/A Precedent arm’s length Business enterprise value $ 6,018 – $7,218 Business enterprise value/revenue multiples 0.94x – 4.42x 1,455 Precedent market Offering price $ 8.73 / share 209 Investee book value Valuation indicated by investee filings N/A The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2017 were as follows under Investment Company Accounting. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Medallion Loans $ 208,279 Precedent market Adequacy of collateral 1% - 420% (131 %) Commercial Loans – Mezzanine and Other 90,188 Borrower financial Financial condition and N/A the borrower Portfolio yields 2% -19.00% (12.02% ) Investment in Medallion Bank 290,548 Precedent M&A Price / book value 2.1x to 2.5x Price / earnings 8.7x to 10.6x Discounted cash Discount rate 17.50 % Terminal value $ 470,964 to $623,007 Investment in Other Controlled Subsidiaries 4,623 Investee financial Financial condition and N/A Enterprise value $ 37,500 - $41,500 Equity value $ 2,000 - $5,000 3,878 Investee book Financial condition and N/A Third party valuation/ N/A 3,001 Investee book Financial condition and N/A Third party offer to N/A 97 Investee book Financial condition and operating performance of N/A Equity Investments 5,417 Investee financial Financial condition and N/A Collateral support N/A 2,193 Investee financial Equity value $ 2,000 - $5,000 Preferred equity yield 12 % 1,455 Precedent market Offering price $ 8.73/share 456 Investee book Valuation indicated by N/A Investments Other Than Securities 7,450 Precedent market Transfer prices of N/A Cash flow analysis Discount rate in cash 6 % Other Assets 339 Borrower Adequacy of collateral 0 % |
Investments Other Than Securi_2
Investments Other Than Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investments [Abstract] | |
Summary of Investment Other Than Securities | The following table presents the Company’s investments other than securities as of December 31, 2017 under Investment Company Accounting. Investment Type (Dollars in thousands) Number of Investment Value as of City of Chicago taxicab medallions 154 (1) $ 8,411 $ 7,238 (2) City of Chicago taxicab medallions (handicap accessible) 5 (1) 278 212 (3) Total investments other than securities $ 8,689 $ 7,450 (1) Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying (2) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for Federal income tax purposes was $1,392 at December 31, 2017. (3) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for Federal income tax purposes was $40 at December 31, 2017. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table shows the assets and liabilities of Trust III as of September 30, 2018 and December 31, 2017. Bank Holding Investment ( Dollars in thousands) UNAUDITED December 31, 2017 Assets Cash $ 166 $ 393 Net loans receivable 45,384 — Net investments — 96,688 Accrued interest receivable 97 170 Loan collateral in process of foreclosure 17,865 — Total assets $ 63,512 $ 97,251 Liabilities Accounts payable and accrued expenses $ 69 $ — Accrued interest payable 2,364 1,849 DZ loan 96,058 99,984 Total liabilities 98,491 101,833 |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2018USD ($)Medallion | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | |
Subsidiary or Equity Method Investee [Line Items] | |||
Purchase price for City of Chicago taxicab medallions out of foreclosure | $ 8,689,000 | ||
Number of medallions purchased out of foreclosure | Medallion | 159 | ||
Net realizable value of medallions | $ 5,535,000 | ||
Net Fair value of medallions | $ 7,450,000 | $ 9,510,000 | |
Taxi Medallion Loan Trust III [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Aggregate assets of trust | 63,512,000 | ||
Aggregate deficit of trust | 34,979,000 | ||
Aggregate liabilities of trust | 98,491,000 | ||
Limited guarantee maximum exposure | 5,987,000 | ||
Taxi Medallion Loan Trust III [Member] | Maximum [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Limited guarantee maximum exposure | 28,992,000 | ||
Medallion Financing Trust I [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Aggregate assets of trust | $ 36,142,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2016 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Non-marketable securities | $ 10,752,000 | $ 10,752,000 | $ 10,752,000 | ||||||||||||
Investment in non-marketable securities | $ 9,521,000 | ||||||||||||||
Net premium on investment securities | 186,000 | $ 250,000 | |||||||||||||
Investment securities Amortized to interest income | 26,000 | $ 21,000 | 47,000 | 61,000 | |||||||||||
Net loan origination costs | 14,041,000 | 90,000 | |||||||||||||
Net accretion to income | (1,147,000) | (17,000) | (2,192,000) | [1] | (55,000) | ||||||||||
Total loans more than 90 days past due | 50,695,000 | 50,695,000 | 50,695,000 | 88,886,000 | |||||||||||
Loans pledged as collateral | 123,173,000 | 123,173,000 | 123,173,000 | 183,529,000 | |||||||||||
Principal portion of loans serviced, fair value | 26,558,000 | 26,558,000 | $ 26,558,000 | 338,867,000 | |||||||||||
Net unrealized appreciation on investments, net of tax | $ 172,177,000 | 100,732,000 | 100,732,000 | 139,700,000 | $ 110,374,000 | $ 122,595,000 | $ 127,367,000 | ||||||||
Intangible assets useful life | 20 years | ||||||||||||||
Amortization of intangible assets | [1] | $ 722,000 | |||||||||||||
Depreciation and amortization | $ 23,000 | 23,000 | 71,000 | ||||||||||||
Amortization expense | 558,000 | 229,000 | 1,322,000 | 697,000 | |||||||||||
Deferred costs | 4,859,000 | 3,295,000 | $ 4,859,000 | $ 4,859,000 | $ 3,295,000 | $ 3,070,000 | |||||||||
Potential dilutive common shares excluded from EPS computation | 115,000 | 359,000 | |||||||||||||
Stock based compensation award | 39,000 | 23,333 | |||||||||||||
Stock based compensation award, Amount | $ 151,000 | $ 222,000 | $ 446,000 | $ 551,000 | |||||||||||
Stock based compensation award per diluted common share | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | $ 0.02 | ||||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 408,000 | $ 408,000 | $ 408,000 | ||||||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 3 years | ||||||||||||||
Interest rate cap expense | $ 0 | $ 0 | $ 0 | $ 19,000 | |||||||||||
Tier 1 leverage capital ratio | 15.08% | 15.08% | 15.08% | ||||||||||||
Capital conversation buffer | 0.625% | ||||||||||||||
Period increase of capital conversation buffer | 0.625% | ||||||||||||||
Common Equity Tier 1 risk-based capital ratio | 13.70% | 13.70% | 13.70% | 13.80% | |||||||||||
Tier 1 risk-based capital ratio | 16.30% | 16.30% | 16.30% | 16.50% | |||||||||||
Total risk-based capital ratio | 17.70% | 17.70% | 17.70% | 17.80% | |||||||||||
Restricted Shares [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Stock based compensation award | 2,846 | 212 | 97,952 | 101,010 | 258,232 | 327,251 | |||||||||
Medallion Financing Trust I [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Appreciation in Investment in Medallion Bank | $ 152,267,000 | ||||||||||||||
Principal portion of loans serviced, fair value, Medallion bank | 311,988,000 | ||||||||||||||
91+ [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Total loans more than 90 days past due | $ 14,061,000 | $ 14,061,000 | $ 14,061,000 | 60,450,000 | |||||||||||
91+ [Member] | Loans [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Total loans more than 90 days past due | $ 14,061,000 | $ 14,061,000 | $ 14,061,000 | $ 60,450,000 | |||||||||||
Total loans more than 90 days past due ,percentage | 1.29% | 1.29% | 1.29% | 18.90% | |||||||||||
Medallion Bank [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Appreciation in Investment in Medallion Bank | $ 39,826,000 | $ 7,849,000 | $ 128,918,000 | $ 15,500,000 | |||||||||||
Net loan origination costs | $ 11,187,000 | 11,187,000 | |||||||||||||
Net accretion to income | $ 901,000 | 901,000 | 3,065,000 | $ 2,526,000 | |||||||||||
Reserves against future losses | 15,587,000 | ||||||||||||||
Amortization expense | 567,000 | 567,000 | 1,680,000 | 1,680,000 | |||||||||||
Deferred costs | $ 5,011,000 | 5,437,000 | $ 5,011,000 | $ 5,011,000 | 5,437,000 | 5,011,000 | |||||||||
Minimum [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Estimated useful life of fixed assets | 3 years | ||||||||||||||
Tier 1 leverage capital to total assets ratio | 15.00% | 15.00% | 15.00% | ||||||||||||
Common Equity Tier 1 risk-based capital ratio | 7.00% | 7.00% | 7.00% | ||||||||||||
Tier 1 risk-based capital ratio | 8.50% | 8.50% | 8.50% | ||||||||||||
Total risk-based capital ratio | 10.50% | 10.50% | 10.50% | ||||||||||||
Maximum [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Estimated useful life of fixed assets | 10 years | ||||||||||||||
Medallion Bank and Other Controlled Subsidiaries [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Investment in non-marketable securities | 302,147,000 | ||||||||||||||
Investment Company Accounting [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Net accretion to income | (55,000) | ||||||||||||||
Net unrealized appreciation on investments, net of tax | 100,732,000 | 100,732,000 | $ 139,700,000 | ||||||||||||
Bank Holding Company Accounting [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Goodwill and intangible assets | $ 210,761,000 | $ 210,761,000 | $ 210,761,000 | ||||||||||||
Amortization of intangible assets | 361,000 | 722,000 | |||||||||||||
Interest Rate Cap [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Contract amount to purchase interest rate caps | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||
Interest rate cap carried to Balance Sheet | 0 | $ 0 | 0 | ||||||||||||
Leasehold Improvements [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Depreciation and amortization | 131,000 | 23,000 | 289,000 | 71,000 | |||||||||||
Leasehold Improvements [Member] | Medallion Bank [Member] | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Depreciation and amortization | $ 64,000 | $ 64,000 | $ 166,000 | $ 166,000 | |||||||||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Purchase Price Accounting (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 02, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Investments In Loans [Line Items] | |||||
Assets | $ 1,571,407 | $ 1,077,357 | |||
Assets | |||||
Cash | 110,233 | ||||
Other assets | 58,827 | ||||
Net loans | 1,060,061 | ||||
Other assets | 58,827 | ||||
Liabilities | |||||
Other liabilities | $ (3,836) | ||||
Medallion Bank [Member] | |||||
Investments In Loans [Line Items] | |||||
Assets | $ 0 | $ 0 | |||
Assets | |||||
Cash | 100 | ||||
Other assets | 130,393 | ||||
Net loans | [1] | 890,000 | |||
Other assets | 130,393 | ||||
Liabilities | |||||
Total fair value excluding goodwill and intangibles | 166,743 | ||||
Intangibles | 28,900 | ||||
Total fair value | [2] | 346,446 | 346,446 | ||
Funds borrowed and other liabilities | (853,650) | ||||
Total fair value excluding goodwill and intangibles | 166,743 | ||||
Goodwill | 150,803 | ||||
Intangibles | 28,900 | ||||
Total fair value | [2] | 346,446 | 346,446 | ||
RPAC Racing, LLC [Member] | |||||
Investments In Loans [Line Items] | |||||
Assets | $ 36,237 | ||||
RPAC Racing, LLC [Member] | Operating Segments [Member] | |||||
Assets | |||||
Cash | 1,647 | ||||
Race cars held for sale | 916 | ||||
Other assets | 1,902 | ||||
Other assets | 1,902 | ||||
Liabilities | |||||
Deferred revenue | (6,531) | ||||
Notes payable | [3] | (27,220) | |||
Other liabilities | (2,275) | ||||
Total fair value excluding goodwill and intangibles | (30,584) | ||||
Intangibles | 31,779 | ||||
Total fair value | [4] | 1,195 | 1,195 | ||
Total fair value excluding goodwill and intangibles | (30,584) | ||||
Intangibles | 31,779 | ||||
Total fair value | [4] | 1,195 | $ 1,195 | ||
RPAC Racing, LLC [Member] | Operating Segments [Member] | Fixed Assets Net [Member] | |||||
Assets | |||||
Net fixed assets | 774 | ||||
RPAC Racing, LLC [Member] | Operating Segments [Member] | Race Cars and Parts Net [Member] | |||||
Assets | |||||
Net fixed assets | $ 203 | ||||
[1] | Includes $12,387 of premiums associated with the loan portfolio. | ||||
[2] | Includes $26,303 of preferred stock held by the US Treasury. See Note 17 for details. | ||||
[3] | Includes $20,177 due to the Company and its affiliates as of March 31, 2018. | ||||
[4] | Fair value as of March 31, 2018 represents the Company's investment in RPAC Racing LLC series D units. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Purchase Price Accounting (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 02, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Investments In Loans [Line Items] | ||||
Premiums in loan portfolio | $ 50,695 | $ 88,886 | ||
Affiliated Entity [Member] | ||||
Investments In Loans [Line Items] | ||||
Notes payable | $ 20,177 | |||
US Treasury Securities [Member] | Capital Purchase Program [Member] | ||||
Investments In Loans [Line Items] | ||||
Preferred stock | $ 26,303 | |||
61-90 [Member] | ||||
Investments In Loans [Line Items] | ||||
Premiums in loan portfolio | $ 12,387 | $ 9,395 | $ 12,387 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Accounting Policies [Abstract] | |||||
Net loss/ net decrease in net assets resulting from operations available to common shareholders | $ (4,697) | $ 619 | $ (34,218) | $ (3,067) | |
Weighted average common shares outstanding applicable to basic EPS | 24,235,242 | 23,930,086 | 24,207,273 | [1] | 23,916,334 |
Effect of dilutive stock options | 0 | 0 | 0 | 0 | |
Effect of restricted stock grants | 153,833 | ||||
Adjusted weighted average common shares outstanding applicable to diluted EPS | 24,235,242 | 24,083,919 | 24,207,273 | [1] | 23,916,334 |
Basic loss per share | $ (0.19) | $ 0.03 | $ (1.41) | [1] | $ (0.13) |
Diluted loss per share | $ (0.19) | $ 0.03 | $ (1.41) | [1] | $ (0.13) |
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Regulatory, Minimum, Common equity tier 1 capital | $ 0 | |
Regulatory, Minimum, Tier 1 capital | 0 | |
Regulatory, Minimum, Total capital | 0 | |
Regulatory, Minimum, Average assets | 0 | |
Regulatory, Minimum, Risk-weighted assets | $ 0 | |
Regulatory, Minimum, Leverage ratio | 4.00% | |
Regulatory, Minimum, Common equity tier 1 capital ratio | 4.50% | |
Regulatory, Minimum, Tier 1 capital ratio | 6.00% | |
Regulatory, Minimum, Total capital ratio | 8.00% | |
Regulatory, Well-capitalized, Common equity tier 1 capital | $ 0 | |
Regulatory, Well-capitalized, Tier 1 capital | 0 | |
Regulatory, Well-capitalized, Total capital | 0 | |
Regulatory, Well-capitalized, Average assets | 0 | |
Regulatory, Well-capitalized, Risk-weighted assets | $ 0 | |
Regulatory, Well-capitalized, Leverage ratio | 5.00% | |
Regulatory, Well-capitalized, Common equity tier 1 capital ratio | 6.50% | |
Regulatory, Well-capitalized, Tier 1 capital ratio | 8.00% | |
Regulatory, Well-capitalized, Total capital ratio | 10.00% | |
Common equity tier 1 capital | $ 138,946 | $ 137,494 |
Tier 1 capital | 165,249 | 163,797 |
Total capital | 178,552 | 176,876 |
Average assets | 1,096,094 | 1,127,087 |
Risk-weighted assets | $ 1,010,792 | $ 995,145 |
Leverage ratio | 15.10% | 14.50% |
Common equity tier 1 capital ratio | 13.70% | 13.80% |
Tier 1 capital ratio | 16.30% | 16.50% |
Total capital ratio | 17.70% | 17.80% |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | $ 47,386 |
Gross Unrealized Gains | 10 |
Gross Unrealized Losses | (1,639) |
Fair Value | 45,757 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 35,147 |
Gross Unrealized Gains | 9 |
Gross Unrealized Losses | (1,188) |
Fair Value | 33,968 |
State and Municipalities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 12,239 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | (451) |
Fair Value | $ 11,789 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Available-for-sale Securities, Debt Maturities [Abstract] | |
Amortized Cost, due in one year or less | $ 27 |
Amortized Cost, due after one year through five years | 11,404 |
Amortized Cost, due after five years through ten years | 11,718 |
Amortized Cost, due after ten years | 24,237 |
Amortized Cost | 47,386 |
Market Value, due in one year or less | 27 |
Market Value, due after one year through five years | 11,035 |
Market Value, due after five years through ten years | 11,283 |
Market Value, due after ten years | 23,412 |
Market Value, total | $ 45,757 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Gross Unrealized Losses, Less than Twelve Months | $ (285) |
Fair Value, Less than Twelve Months | 13,083 |
Gross Unrealized Losses, Twelve Months and Over | (1,354) |
Fair Value, Twelve Months and Over | 30,477 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Gross Unrealized Losses, Less than Twelve Months | (143) |
Fair Value, Less than Twelve Months | 7,165 |
Gross Unrealized Losses, Twelve Months and Over | (1,045) |
Fair Value, Twelve Months and Over | 24,751 |
State and Municipalities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Gross Unrealized Losses, Less than Twelve Months | (142) |
Fair Value, Less than Twelve Months | 5,918 |
Gross Unrealized Losses, Twelve Months and Over | (309) |
Fair Value, Twelve Months and Over | $ 5,726 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Investments [Line Items] | |
Investment in securities | 0.00% |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2018 | Jun. 30, 2018 | [3] | Dec. 31, 2017 | |||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | $ 1,064,343 | [1] | $ 319,227 | |||
Allowance for loan losses | (29,484) | |||||
Net loans receivable | 1,060,061 | |||||
Bank Holding Company Accounting [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | 1,089,545 | |||||
Allowance for loan losses | (29,484) | [2] | $ (21,425) | |||
Net loans receivable | [4] | $ 1,060,061 | ||||
Percentage of total gross loans | 100.00% | |||||
Recreation [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | [1] | $ 556,298 | ||||
Allowance for loan losses | (2,880) | |||||
Recreation [Member] | Bank Holding Company Accounting [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | $ 575,875 | |||||
Percentage of total gross loans | 53.00% | |||||
Home Improvement [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | [1] | $ 171,994 | ||||
Allowance for loan losses | (861) | |||||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | $ 169,642 | |||||
Percentage of total gross loans | 16.00% | |||||
Commercial [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Allowance for loan losses | $ (100) | |||||
Commercial [Member] | Bank Holding Company Accounting [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | $ 82,558 | |||||
Percentage of total gross loans | 7.00% | |||||
Medallion [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | $ 253,493 | [1] | $ 228,416 | |||
Allowance for loan losses | (25,643) | |||||
Medallion [Member] | Bank Holding Company Accounting [Member] | ||||||
Student Loan Portfolio By Program [Line Items] | ||||||
Total gross loans | $ 261,470 | |||||
Percentage of total gross loans | 24.00% | |||||
[1] | Excludes loan premiums of $10,606 resulting from purchase price accounting and $14,596 of capitalized loan origination costs. | |||||
[2] | Includes $15,587 of a general reserve for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 53% of the total allowance, and 7% of the loans in question. | |||||
[3] | Beginning balance for the six months September 30, 2018 ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table. | |||||
[4] | See Note 18 for details of balances related to a consolidated variable interest entity. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Provision for loan losses | $ 18,205 | $ 48,781 | $ 48,781 | [1] | |
Allowance for loan losses - ending balance | 29,484 | 29,484 | 29,484 | ||
Recreation [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - ending balance | 2,880 | 2,880 | 2,880 | ||
Home Improvement [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - ending balance | 861 | 861 | 861 | ||
Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - ending balance | 100 | 100 | 100 | ||
Medallion [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - ending balance | 25,643 | 25,643 | 25,643 | ||
Bank Holding Company Accounting [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - beginning balance | [2] | 21,425 | |||
Total charge- offs | (11,941) | (23,428) | |||
Total recoveries | 1,795 | 4,131 | |||
Net charge offs | (10,146) | (19,297) | |||
Provision for loan losses | 18,205 | 48,781 | |||
Allowance for loan losses - ending balance | [3] | 29,484 | $ 29,484 | 29,484 | |
Bank Holding Company Accounting [Member] | Recreation [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total charge- offs | (4,825) | (9,471) | |||
Total recoveries | 1,318 | 3,217 | |||
Bank Holding Company Accounting [Member] | Home Improvement [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total charge- offs | (659) | (1,220) | |||
Total recoveries | 367 | 606 | |||
Bank Holding Company Accounting [Member] | Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total recoveries | 4 | ||||
Bank Holding Company Accounting [Member] | Medallion [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total charge- offs | (6,457) | (12,737) | |||
Total recoveries | $ 110 | $ 304 | |||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | ||||
[2] | Beginning balance for the six months September 30, 2018 ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table. | ||||
[3] | Includes $15,587 of a general reserve for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 53% of the total allowance, and 7% of the loans in question. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Percentage of Allowance | 100.00% |
Medallion Bank [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Reserves against future losses | $ 15,587 |
Percentage of Allowance | 53.00% |
Percentage of total gross loans | 7.00% |
Financing Receivables, 90 Days Past Due [Member] | Medallion Bank [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Reserves against future losses | $ 15,587 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary Composition of the Allowance for Loan Losses by Type (Detail) | Sep. 30, 2018USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amount | $ 29,484,000 |
Percentage of Allowance | 100.00% |
Allowance as a Percent of Loan Category | $ 0.0271 |
Recreation [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amount | $ 2,880,000 |
Percentage of Allowance | 10.00% |
Allowance as a Percent of Loan Category | $ 0.0050 |
Home Improvement [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amount | $ 861,000 |
Percentage of Allowance | 3.00% |
Allowance as a Percent of Loan Category | $ 0.0051 |
Commercial [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amount | 100,000 |
Allowance as a Percent of Loan Category | 0.0012 |
Medallion [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Amount | $ 25,643,000 |
Percentage of Allowance | 87.00% |
Allowance as a Percent of Loan Category | $ 0.0981 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | [1] | Dec. 31, 2017 | [2] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total nonaccrual loans | $ 47,904 | $ 45,765 | $ 132,316 | $ 98,494 | ||
Interest foregone quarter to date | 770 | 563 | 1,845 | 823 | ||
Amount of foregone interest applied to principal in the quarter | 400 | 350 | 574 | 52 | ||
Interest foregone life to date | 8,281 | 8,530 | 16,286 | 12,485 | ||
Amount of foregone interest applied to principal life to date | $ 3,748 | $ 3,412 | $ 9,750 | $ 3,495 | ||
Percentage of nonaccrual loans to gross loan portfolio | 4.00% | 4.00% | 36.00% | 31.00% | ||
Non Accrual Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non accrual loans | $ 39,626 | |||||
Interest collected on nonaccrual loans recorded | 1,278 | |||||
Interest paid | 1,102 | |||||
Non Accrual Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non accrual loans | 32,668 | |||||
Interest collected on nonaccrual loans recorded | 1,487 | |||||
Interest paid | $ 1,221 | |||||
[1] | Does not include Medallion Bank nonaccrual loans of $39,626, $1,278 of interest income foregone and $1,102 of foregone interest paid and applied to principal. | |||||
[2] | Does not include Medallion Bank nonaccrual loans of $32,668, $1,487 of interest income foregone and $1,221 of foregone interest paid and applied to principal. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | $ 1,089,545 |
Recreation [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 575,875 |
Home Improvement [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 169,642 |
Commercial [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 82,558 |
Medallion [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 261,470 |
Performing [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 1,040,843 |
Performing [Member] | Recreation [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 570,800 |
Performing [Member] | Home Improvement [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 169,475 |
Performing [Member] | Commercial [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 77,155 |
Performing [Member] | Medallion [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 223,413 |
Non - Performing [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 48,702 |
Non - Performing [Member] | Recreation [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 5,075 |
Non - Performing [Member] | Home Improvement [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 167 |
Non - Performing [Member] | Commercial [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | 5,403 |
Non - Performing [Member] | Medallion [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Status of loans | $ 38,057 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | $ 48,702 | $ 48,702 | |||
Unpaid principal balance, With related allowance | 50,094 | 50,094 | |||
Related allowance, With related allowance | 10,368 | 10,368 | |||
Average investment recorded, With related allowance | 67,784 | 65,370 | |||
Interest income recognized, With related allowance | 125 | 434 | |||
Recreation [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 5,075 | 5,075 | |||
Unpaid principal balance, With related allowance | 5,075 | 5,075 | |||
Related allowance, With related allowance | 180 | 180 | |||
Average investment recorded, With related allowance | 5,494 | 4,496 | |||
Interest income recognized, With related allowance | 106 | 231 | |||
Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 167 | 167 | |||
Unpaid principal balance, With related allowance | 167 | 167 | |||
Related allowance, With related allowance | 3 | 3 | |||
Average investment recorded, With related allowance | 178 | 119 | |||
Commercial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 5,403 | 5,403 | |||
Unpaid principal balance, With related allowance | 5,814 | 5,814 | |||
Related allowance, With related allowance | 100 | 100 | |||
Average investment recorded, With related allowance | 7,047 | 5,838 | |||
Interest income recognized, With related allowance | 82 | 12 | |||
Recorded investment | [1],[2],[3] | $ 11,600 | $ 18,623 | ||
Unpaid principal balance,total non performing loans | [2] | 18,867 | 20,491 | ||
Average recorded investment | [2] | 11,951 | 18,792 | ||
Medallion [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 38,057 | 38,057 | |||
Unpaid principal balance, With related allowance | 39,038 | 39,038 | |||
Related allowance, With related allowance | 10,085 | 10,085 | |||
Average investment recorded, With related allowance | 55,065 | 54,917 | |||
Interest income recognized, With related allowance | $ 101 | $ 215 | |||
Recorded investment | [1],[2],[3] | 120,716 | 79,871 | ||
Unpaid principal balance,total non performing loans | [2] | 123,199 | 82,612 | ||
Average recorded investment | [2] | $ 124,944 | $ 128,671 | ||
[1] | As of December 31, 2017 and September 30, 2017, $20,851 and $55,871 of unrealized depreciation was recorded as a valuation allowance on these loans. | ||||
[2] | Included in the unpaid principal balance is unearned paid-in-kind interest on nonaccrual loans of $4,609 and $9,750 as of December 31, 2017 and September 30, 2017, which is included in the nonaccrual disclosures on page 25. | ||||
[3] | Interest income of $124 and $1,383 was recognized on loans for the three and nine months ended September 30, 2017. |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2018 | [1] | Sep. 30, 2017 | Dec. 31, 2017 | |
Receivables [Abstract] | |||||
Valuation allowances | $ 55,871 | $ 55,871 | $ 20,851 | ||
Interest and Fee Income | 124 | $ 64,718 | 1,383 | ||
Unearned paid-in-kind interest on nonaccrual loans | $ 9,750 | $ 9,750 | $ 4,609 | ||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 02, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | $ 50,695 | $ 88,886 | |||
Current | 1,013,648 | 230,341 | |||
Total | 1,064,343 | [1] | 319,227 | ||
Accruing | 265 | ||||
Recreation [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 22,233 | ||||
Current | 534,065 | ||||
Total | [1] | 556,298 | |||
Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 1,169 | ||||
Current | 170,825 | ||||
Total | [1] | 171,994 | |||
Commercial Loans [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 987 | 749 | |||
Current | 81,571 | 90,062 | |||
Total | 82,558 | [1] | 90,811 | ||
Medallion [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 26,306 | 88,137 | |||
Current | 227,187 | 140,279 | |||
Total | 253,493 | [1] | 228,416 | ||
Accruing | 265 | ||||
Secured Mezzanine Term Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Current | 88,334 | ||||
Total | 88,334 | ||||
Other Secured Commercial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 749 | ||||
Current | 1,728 | ||||
Total | 2,477 | ||||
31-60 [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 27,239 | 16,049 | |||
31-60 [Member] | Recreation [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 14,974 | ||||
31-60 [Member] | Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 782 | ||||
31-60 [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 471 | ||||
31-60 [Member] | Medallion [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 11,012 | 16,049 | |||
61-90 [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 9,395 | $ 12,387 | 12,387 | ||
61-90 [Member] | Recreation [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 4,095 | ||||
61-90 [Member] | Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 212 | ||||
61-90 [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 95 | ||||
61-90 [Member] | Medallion [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 4,993 | 12,387 | |||
91+ [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 14,061 | 60,450 | |||
91+ [Member] | Recreation [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 3,164 | ||||
91+ [Member] | Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 175 | ||||
91+ [Member] | Commercial Loans [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | 421 | 749 | |||
91+ [Member] | Medallion [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | $ 10,301 | 59,701 | |||
91+ [Member] | Other Secured Commercial [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
31-60 | $ 749 | ||||
[1] | Excludes loan premiums of $10,606 resulting from purchase price accounting and $14,596 of capitalized loan origination costs. |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Receivables [Abstract] | |
loan premiums | $ 10,606 |
capitalized loan origination costs | $ 14,596 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)TDRs | Sep. 30, 2017USD ($)TDRs | Sep. 30, 2018USD ($)TDRs | Sep. 30, 2017USD ($)TDRs | Sep. 30, 2017TDRs | |
Debt Securities, Available-for-sale [Line Items] | |||||
Number of Loans | TDRs | 56 | 16 | |||
Pre- Modification Investment | $ 41,452 | ||||
Post- Modification Investment | $ 41,378 | ||||
Medallion [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Number of Loans | TDRs | 10 | 7 | 17 | 54 | |
Pre- Modification Investment | $ 4,810 | $ 2,994 | $ 7,505 | $ 34,905 | |
Post- Modification Investment | $ 4,810 | $ 2,994 | $ 7,505 | $ 34,831 | |
Commercial Loans [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Number of Loans | TDRs | 2 | ||||
Pre- Modification Investment | $ 6,547 | ||||
Post- Modification Investment | $ 6,547 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($)TDRs | Sep. 30, 2018USD ($)TDRs | Sep. 30, 2017USD ($)TDRs | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans modified as TDRs defaulted | TDRs | 56 | 16 | |
TDR investment value | $ 5,027,000 | $ 5,027,000 | |
Allowance for loan loss | $ 29,484,000 | ||
TDR unrealized depreciation | $ 4,495,000 | ||
Troubled Debt Restructuring Defaulted [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans modified as TDRs defaulted | TDRs | 3 | ||
TDR investment value | $ 1,305,000 | ||
Allowance for loan loss | $ 773,000 |
Unrealized Appreciation (Depr_3
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Unrealized Appreciation (Depreciation) on Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Beginning balance | $ 139,700 | $ 110,374 | $ 122,595 | $ 127,367 | $ 127,367 |
Appreciation on investments | 37,797 | (3,132) | (651) | 5,012 | |
Depreciation on investments | (40,067) | (6,609) | (12,543) | (9,002) | |
Gains on investments | (272) | (2,093) | |||
Losses on investments | 34,747 | 371 | 973 | 1,311 | |
Ending balance | 172,177 | 100,732 | 110,374 | 122,595 | 100,732 |
Medallion [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Beginning balance | (20,338) | (48,456) | (36,368) | (28,523) | (28,523) |
Depreciation on investments | (38,170) | (6,669) | (12,425) | (8,670) | |
Losses on investments | 34,747 | 311 | 337 | 825 | |
Ending balance | (23,761) | (54,814) | (48,456) | (36,368) | (54,814) |
Commercial Loans [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Beginning balance | (513) | (1,192) | (1,710) | (1,378) | (1,378) |
Depreciation on investments | 18 | 75 | (118) | (332) | |
Losses on investments | 60 | 636 | |||
Ending balance | (495) | (1,057) | (1,192) | (1,710) | (1,057) |
Investment In Subsidiary One [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Beginning balance | 158,920 | 155,730 | 156,501 | 152,750 | 152,750 |
Appreciation on investments | 38,795 | (2,771) | (771) | 3,751 | |
Ending balance | 197,715 | 152,959 | 155,730 | 156,501 | 152,959 |
Equity Investments [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Beginning balance | 3,121 | 3,708 | 3,588 | 3,934 | 3,934 |
Appreciation on investments | (998) | (361) | 120 | 1,261 | |
Gains on investments | (272) | (2,093) | |||
Losses on investments | 486 | ||||
Ending balance | 2,123 | 3,075 | 3,708 | 3,588 | 3,075 |
Other than Securities Investment [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Beginning balance | (1,490) | 584 | 584 | 584 | 584 |
Depreciation on investments | (1,915) | (15) | |||
Ending balance | $ (3,405) | $ 569 | $ 584 | $ 584 | $ 569 |
Unrealized Appreciation (Depr_4
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Net change in unrealized appreciation (depreciation) on investments | |||||||||
Unrealized appreciation | $ (37,797) | $ 3,132 | $ 651 | $ (5,012) | |||||
Unrealized depreciation | 40,067 | 6,609 | $ 12,543 | $ 9,002 | |||||
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries | [1] | $ 29,115 | |||||||
Net realized gains (losses) on investments | |||||||||
Total | [1],[2] | $ (34,745) | |||||||
Investment Company Accounting [Member] | |||||||||
Net change in unrealized appreciation (depreciation) on investments | |||||||||
Unrealized appreciation | (998) | (361) | $ 1,132 | ||||||
Unrealized depreciation | (38,152) | (6,594) | (28,253) | ||||||
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries | 2,035 | 11,089 | |||||||
Realized gains | (272) | (2,363) | |||||||
Realized losses | 34,747 | 371 | 2,656 | ||||||
Net unrealized losses on investments other than securities and other assets | (1,915) | (15) | (15) | ||||||
Total | 22,797 | (4,836) | (15,754) | ||||||
Net realized gains (losses) on investments | |||||||||
Realized gains | 272 | 2,363 | |||||||
Realized losses | (34,747) | (371) | (2,656) | ||||||
Other gains | 1,187 | 4,189 | |||||||
Direct recoveries | 2 | (144) | (111) | ||||||
Realized gains on investments other than securities and other assets | 0 | 0 | 0 | ||||||
Total | (34,745) | 944 | [2] | 3,785 | [2] | ||||
Investment Company Accounting [Member] | Medallion Financing Trust I [Member] | |||||||||
Net change in unrealized appreciation (depreciation) on investments | |||||||||
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries | $ 29,115 | $ 2,035 | $ 11,089 | ||||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | ||||||||
[2] | There were no net losses on investment securities of affiliated issuers for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017. |
Medallion Bank - Schedule of Co
Medallion Bank - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Investment income | [1],[2] | $ 69,829 | ||||||
Interest expense | $ 8,887 | $ 16,812 | 20,363 | [1],[3] | ||||
Net interest income | 24,265 | 48,984 | 49,466 | [1] | ||||
Noninterest income | [1] | 14,379 | ||||||
Operating expenses | $ 1,150 | $ 1,037 | $ 3,129 | |||||
Net investment income before income taxes | (3,963) | (21,868) | (25,434) | [1],[4] | ||||
Income tax provision | (117) | (6,155) | (4,138) | (4,778) | (15,144) | |||
Net investment income after income taxes | (3,846) | $ (17,730) | (32,604) | [1] | ||||
Net realized/unrealized losses of Medallion Bank | [1] | 14,675 | ||||||
Unrealized depreciation on Medallion Bank | [1] | (4,403) | ||||||
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank | [1] | (11,644) | ||||||
Net increase (decrease) in net assets resulting from operations | $ (4,697) | 619 | $ (34,218) | (3,067) | ||||
Medallion Bank [Member] | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Investment income | 29,259 | 82,247 | ||||||
Interest expense | 3,660 | 9,952 | ||||||
Net interest income | 25,599 | 72,295 | ||||||
Noninterest income | 28 | 99 | ||||||
Operating expenses | 6,668 | 19,368 | ||||||
Net investment income before income taxes | 18,959 | 53,026 | ||||||
Income tax provision | 2,940 | 7,035 | ||||||
Net investment income after income taxes | 16,019 | 45,991 | ||||||
Net realized/unrealized losses of Medallion Bank | (10,859) | (34,586) | ||||||
Unrealized depreciation on Medallion Bank | [5] | (592) | (1,212) | |||||
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank | (2,533) | 896 | ||||||
Net increase (decrease) in net assets resulting from operations | 2,035 | 11,089 | ||||||
Medallion Bank [Member] | Medallion Financing Trust I [Member] | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Net increase (decrease) in net assets resulting from operations | $ 5,160 | $ 11,405 | ||||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | |||||||
[2] | Included in interest and investment income is $450 and $1,428 of paid in kind interest for the three and nine months ended September 30, 2018 and $939 and $1,650 for the comparable 2017 periods. | |||||||
[3] | Average borrowings outstanding were $1,255,945 and $1,226,896, and the related average borrowing costs were 2.81% and 2.22% for the three and nine months ended September 30, 2018, and were $330,885 and $335,907 and 4.25% and 4.09% for the comparable 2017 periods. | |||||||
[4] | Includes $256 of net revenues received from Medallion Bank for the nine months ended September 30, 2018 and $184 and $641 for the three and nine months ended September 30, 2017, primarily for expense reimbursements. See Notes 6 and 13 for additional information. | |||||||
[5] | Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank. |
Medallion Bank - Schedule of Ba
Medallion Bank - Schedule of Balance Sheet and Net Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Loans | $ 864,819 | ||
Investment securities, at fair value | 43,478 | ||
Net investments | 908,297 | ||
Cash | 110,233 | ||
Other assets, net | 58,827 | ||
Total assets | $ 1,571,407 | 1,077,357 | |
Other liabilities | 3,836 | ||
Due to affiliates | 1,055 | ||
Deposits and other borrowings, including accrued interest payable | 908,236 | ||
Total liabilities | 913,127 | ||
Medallion Bank equity | [1] | 164,230 | |
Total liabilities and equity | 1,077,357 | ||
Investment in other controlled subsidiaries | 11,449 | ||
Medallion Bank and Other Controlled Subsidiaries [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total investment in Medallion Bank and other controlled subsidiaries | $ 302,147 | ||
[1] | Includes $152,267 of unrealized appreciation on Medallion Bank, in excess of Medallion Bank's book value as of December 31, 2017. |
Medallion Bank - Schedule of _2
Medallion Bank - Schedule of Balance Sheet and Net Investment (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Medallion Financing Trust I [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Unrealized appreciation | $ 152,267 |
Small Business Lending Fund Program [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Preferred stock issued | $ 26,303 |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
2,019 | $ 577,369 | ||
2,020 | 246,505 | ||
2,021 | 184,608 | ||
2,022 | 140,394 | ||
2,023 | 45,698 | ||
Thereafter | 70,500 | ||
Long term debt | $ 1,265,074 | ||
Interest Rate | [1] | 2.64% | |
Deposits [Member] | |||
Debt Instrument [Line Items] | |||
2,019 | $ 417,151 | ||
2,020 | 213,514 | ||
2,021 | 135,218 | ||
2,022 | 140,394 | ||
2,023 | $ 40,698 | ||
Interest Rate | [1] | 2.04% | |
DZ Loan [Member] | |||
Debt Instrument [Line Items] | |||
2,019 | $ 96,058 | ||
Interest Rate | [1] | 3.86% | |
Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2,019 | $ 3,621 | ||
2,020 | 25,877 | ||
2,021 | 8,500 | ||
2,023 | 5,000 | ||
Thereafter | $ 37,500 | ||
Interest Rate | [1] | 3.40% | |
Retail Notes [Member] | |||
Debt Instrument [Line Items] | |||
2,021 | $ 33,625 | ||
Interest Rate | [1] | 9.00% | |
Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
Thereafter | $ 33,000 | ||
Interest Rate | [1] | 4.45% | |
Other Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2,019 | $ 500 | ||
2,020 | $ 7,114 | ||
Interest Rate | [1] | 2.00% | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
2,019 | $ 60,039 | ||
2,021 | $ 7,265 | ||
Interest Rate | [1] | 4.47% | |
Bank Holding Company Accounting [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 1,265,074 | ||
Bank Holding Company Accounting [Member] | Deposits [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 946,975 | ||
Bank Holding Company Accounting [Member] | DZ Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 96,058 | ||
Bank Holding Company Accounting [Member] | Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 80,498 | ||
Bank Holding Company Accounting [Member] | Retail Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 33,625 | ||
Bank Holding Company Accounting [Member] | Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 33,000 | ||
Bank Holding Company Accounting [Member] | Other Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | 7,614 | ||
Bank Holding Company Accounting [Member] | Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 67,304 | ||
Investment Company Accounting [Member] | |||
Debt Instrument [Line Items] | |||
Funds borrowed | [2] | $ 327,623 | |
Investment Company Accounting [Member] | DZ Loan [Member] | |||
Debt Instrument [Line Items] | |||
Funds borrowed | 99,984 | ||
Investment Company Accounting [Member] | Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Funds borrowed | 79,564 | ||
Investment Company Accounting [Member] | Retail Notes [Member] | |||
Debt Instrument [Line Items] | |||
Funds borrowed | 33,625 | ||
Investment Company Accounting [Member] | Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
Funds borrowed | 33,000 | ||
Investment Company Accounting [Member] | Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Funds borrowed | $ 81,450 | ||
[1] | Weighted average contractual rate as of September 30, 2018. | ||
[2] | See Note 18 for details of balances related to a consolidated variable interest entity. |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) - USD ($) | Dec. 31, 2007 | Apr. 30, 2016 | Jun. 30, 2007 | Sep. 30, 2018 | Dec. 31, 2017 | Jul. 01, 2018 | Dec. 31, 2008 |
Preferred Securities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Sale of preferred securities | $ 35,000,000 | ||||||
Issue of common stock | 1,083 | ||||||
Maturity date | Sep. 30, 2037 | ||||||
Preferred securities outstanding | $ 33,000,000 | ||||||
Preferred Securities [Member] | LIBOR Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.13% | ||||||
Preferred Securities [Member] | 90 day LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.40% | ||||||
Small Business Administration Debentures and Borrowings [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument remaining amount | $ 29,498,000 | ||||||
Debt Instrument interest rate, stated percentage | 3.25% | ||||||
Loan commitment term | 4 years 6 months | ||||||
Commitment fee percentage | 1.00% | ||||||
Principal amount of loan | $ 34,024,756 | ||||||
Debt instrument commitments amount fully utilized | $ 172,485,000 | ||||||
Debt instrument commitments available | 3,000,000 | ||||||
Debt instrument outstanding amount | 80,498,000 | ||||||
FSVC's [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount of loan | $ 33,485,000 | ||||||
Unsecured Debt [Member] | Preferred Securities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of unsecured junior subordinated notes | $ 36,083,000 | ||||||
Third Party Investors [Member] | Preferred Securities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Preferred securities repurchased from a third party investor | $ 2,000,000 | ||||||
Richard Petty [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date | Mar. 31, 2020 | ||||||
Loan amount | $ 7,007,894 | ||||||
Annual interest rate | 2.00% | ||||||
Outstanding loan amount | 7,114,000 | ||||||
Travis Burt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Short term promissory note | 500,000 | ||||||
Commercial Paper [Member] | DZ Loan [Member] | Taxi Medallion Loan Trust III [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility maximum borrowing capacity | $ 200,000,000 | ||||||
Line of credit facility current borrowing capacity | 150,000,000 | $ 125,000,000 | |||||
Debt instrument remaining amount | $ 96,058,000 | ||||||
Commercial Paper [Member] | DZ Loan [Member] | Taxi Medallion Loan Trust III [Member] | LIBOR Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument interest rate, stated percentage | 2.26% | ||||||
Basis spread on variable rate | 1.65% | ||||||
Description of variable rate basis | LIBOR (30 day LIBOR was 2.26% at September 30, 2018) plus 1.65%. | ||||||
Retail Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument interest rate, stated percentage | 9.00% | ||||||
Aggregate principal amount | $ 33,625,000 | ||||||
Net proceeds from offering | $ 31,786,000 | ||||||
Maturity date | 2,021 | ||||||
Minimum [Member] | Paid on or Before February 1, 2018 [Member] | Small Business Administration Debentures and Borrowings [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument minimum annual payment | $ 5,000,000 | ||||||
Minimum [Member] | Paid on or Before February 1, 2019 [Member] | Small Business Administration Debentures and Borrowings [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument minimum annual payment | $ 10,000,000 | ||||||
Brokerage [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Average brokerage fee percentage in relation to the maturity of deposits | 0.15% |
Funds Borrowed - Summary of Tim
Funds Borrowed - Summary of Time Deposits of $100,000 or More (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Banking and Thrift [Abstract] | |
Three months or less | $ 126,721 |
Over three months through six months | 72,280 |
Over six months through one year | 218,150 |
Over one year | 529,824 |
Total deposits | $ 946,975 |
Funds Borrowed - Summary of Key
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($) | ||
Notes Payable [Line Items] | ||
Average Interest Rate | 2.64% | [1] |
Notes Payable to Banks [Member] | ||
Notes Payable [Line Items] | ||
Note Amounts | $ 73,329 | |
Balance outstanding | $ 67,304 | |
Average Interest Rate | 4.47% | [1] |
Notes Payable to Banks [Member] | Parent Company [Member] | ||
Notes Payable [Line Items] | ||
Note Dates | Apr. 30, 2011 | |
Note Dates | Aug. 31, 2014 | |
Maturity Dates | Nov. 30, 2018 | |
Maturity Dates | Jul. 31, 2019 | |
Type | Term loans and demand notes secured by pledged loans | [2] |
Note Amounts | $ 47,621 | |
Balance outstanding | $ 47,621 | |
Monthly Payment | Interest | [3] |
Average Interest Rate | 4.87% | |
Notes Payable to Banks [Member] | Parent Company [Member] | Prime Rate [Member] | ||
Notes Payable [Line Items] | ||
Debt Instrument interest rate, stated percentage | 5.25% | |
Notes Payable to Banks [Member] | Medallion Chicago [Member] | ||
Notes Payable [Line Items] | ||
Note Dates | Nov. 30, 2011 | |
Note Dates | Dec. 31, 2011 | |
Maturity Dates | Jun. 30, 2019 | |
Maturity Dates | Jun. 30, 2021 | |
Type | Term loans secured by owned Chicago medallions | [4] |
Note Amounts | $ 25,708 | |
Balance outstanding | $ 19,683 | |
Monthly Payment | 171 principal & interest | |
Average Interest Rate | 3.50% | |
Debt Instrument interest rate, stated percentage | 3.50% | |
[1] | Weighted average contractual rate as of September 30, 2018. | |
[2] | One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 4.50%, one note has an interest rate of LIBOR plus 3.50%, and the other interest rates on these borrowings are LIBOR plus 2%. | |
[3] | Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging from $0 to $75. | |
[4] | Guaranteed by the Company. |
Funds Borrowed - Summary of K_2
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Minimum [Member] | |
Notes Payable [Line Items] | |
Minimum monthly payments of pledged loan | $ 0 |
Maximum [Member] | |
Notes Payable [Line Items] | |
Minimum monthly payments of pledged loan | $ 75,000 |
Parent Company [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Description of variable rate basis | 30 day LIBOR was 2.26%, 360 day LIBOR was 2.92% |
Parent Company [Member] | Notes Payable to Banks [Member] | 30 Day LIBOR [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 2.26% |
Parent Company [Member] | Notes Payable to Banks [Member] | 360 Day LIBOR [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 2.92% |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 3.50% |
Description of variable rate basis | One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 4.50%, one note has an interest rate of LIBOR plus 3.50%, and the other interest rates on these borrowings are LIBOR plus 2%. |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | Prime Rate Plus [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 0.50% |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | Fixed Interest Rate [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 4.50% |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | LIBOR Rate [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 2.00% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles/unrealized gain on investments in Medallion Bank | $ (45,736) | $ (35,297) | |
Provision for loan losses/unrealized losses on loans and nonaccrual interest | 27,002 | 10,071 | |
Net operating loss carryforwards | [1] | 17,062 | 615 |
Unrealized gains on investments in other controlled subsidiaries | (3,617) | ||
Unrealized gains on investments other than securities | (1,395) | ||
Accrued expenses, compensation, and other | 1,815 | 782 | |
Unrealized gains on investments and other assets | (3,877) | (542) | |
Total deferred tax liability | (3,734) | (29,383) | |
Valuation allowance | (167) | (39) | |
Deferred tax liability, net | (3,901) | (29,422) | |
Taxes receivable | 1,890 | 16,886 | |
Net deferred and other tax liabilities | $ (2,011) | $ (12,536) | |
[1] | As of September 30, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $2,057 as of the balance sheet date. |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforwards | $ 11,148 |
Net operating loss carryforwards expiration period | Expire at various dates between December 31, 2026 and December 31, 2035. |
Net operating loss carryforwards assets | $ 2,057 |
Income Taxes - Summary of Com_3
Income Taxes - Summary of Components of Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current | |||||
Federal | $ (9,353) | $ (910) | $ (3,040) | $ 639 | |
State | (2,318) | (807) | (1,078) | (445) | |
Deferred | |||||
Federal | 9,100 | 1,609 | 8,128 | 7,275 | |
State | 2,688 | 6,263 | 768 | 7,675 | |
Net benefit for income taxes | $ 117 | $ 6,155 | $ 4,138 | $ 4,778 | $ 15,144 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Statutory Federal Income tax benefit at 21% (35% in 2017) | $ 877 | $ 1,937 | $ 8,106 | $ 6,374 | |
State and local income taxes, net of federal income tax benefit | (107) | 99 | 994 | 327 | |
Appreciation of Medallion Bank | 1,681 | (1,974) | 3,731 | ||
Depreciation of other unconsolidated subsidiaries | (462) | (462) | |||
Utilization of carry forwards | (247) | 459 | (910) | 2,715 | |
Change in effective state income tax rate | 3,232 | (1,358) | 3,232 | ||
Non deductible expenses | (215) | (403) | |||
Other | (191) | (791) | 323 | (773) | |
Net benefit for income taxes | $ 117 | $ 6,155 | $ 4,138 | $ 4,778 | $ 15,144 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Statutory Federal Income tax benefit percentage | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 15, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 01, 2016 | Feb. 29, 2016 | Jun. 16, 2006 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option outstanding | 144,666 | [1] | 144,666 | [1] | 129,666 | 320,626 | 320,626 | 345,518 | |||||
Stock option exercisable | [1] | 79,778 | 79,778 | ||||||||||
Unvested shares of common stock outstanding | 64,888 | 64,888 | 53,666 | 46,666 | |||||||||
Intrinsic value of options vested | $ 10,000 | $ 24,000 | |||||||||||
2006 Stock Option Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issuance of maximum number of shares approved | 800,000 | ||||||||||||
Number of additional shares available for issuance | 0 | 0 | |||||||||||
Amended Director Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of additional shares available for issuance | 0 | 0 | |||||||||||
Number of shares available for grant | 200,000 | 200,000 | |||||||||||
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 | |||||||||||
2015 Restricted Stock Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares available for grant | 700,000 | ||||||||||||
Unvested shares of common stock outstanding | 202,971 | 202,971 | |||||||||||
2018 Equity Incentive Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares available for grant | 1,494,558 | 1,494,558 | 236,224 | ||||||||||
Shares were rolled into the 2018 Plan | 1,455,558 | 1,455,558 | |||||||||||
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 | ||||||||||||
2006 and 2015 Plans [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option outstanding | 144,666 | 144,666 | |||||||||||
Stock option exercisable | 79,778 | 79,778 | |||||||||||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at September 30, 2018 and the related exercise price of the underlying options, was $174,000 for outstanding options and $33,000 for exercisable options as of September 30, 2018. The remaining contractual life was 7.22 years for outstanding options and 5.51 years for exercisable options at September 30, 2018. |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Stock Options/Shares Outstanding, Weighted-Average Exercise Price, and Additional Disclosures [Abstract] | |||
Risk free interest rate | 2.82% | 1.84% | |
Expected dividend yield | 4.86% | 7.39% | |
Expected life of option in years | [1] | 6 years | 6 years |
Expected volatility | [2] | 30.00% | 30.00% |
[1] | Expected life is calculated using the simplified method. | ||
[2] | We determine our expected volatility based on our historical volatility. |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options beginning balance | 129,666 | 320,626 | 320,626 | 345,518 | ||
Granted | 15,000 | 24,000 | 29,666 | |||
Cancelled | (214,960) | (54,558) | ||||
Exercised | [1] | 0 | 0 | 0 | 0 | |
Number of options ending balance | 144,666 | [2] | 129,666 | 320,626 | 320,626 | |
Options exercisable at September 30, 2018 | [2] | 79,778 | ||||
Exercise price per share, lower range limit beginning balance | $ 2.14 | $ 2.14 | $ 2.14 | $ 7.10 | ||
Exercise price per share, upper range limit beginning balance | 13.84 | 13.84 | 13.84 | 13.84 | ||
Exercise price per share, granted | 5.27 | 5.58 | ||||
Exercise price per share, exercised | [1] | 0 | ||||
Exercise price per share, lower range limit ending balance | 2.14 | [2] | 2.14 | 2.14 | 2.14 | |
Exercise price per share, upper range limit ending balance | 13.84 | [2] | 13.84 | 13.84 | 13.84 | |
Exercise price per share, option exercisable lower range limit | [2] | 2.22 | ||||
Exercise price per share, option exercisable upper range limit | [2] | 13.84 | ||||
Weighted average exercise price, beginning balance | 7.45 | 8.78 | 8.78 | 9.67 | ||
Weighted average exercise price, granted | 5.27 | 5.58 | 2.35 | |||
Weighted average exercise price, cancelled | 9.22 | 10.94 | ||||
Weighted average exercise price, exercised | [1] | 0 | 0 | 0 | 0 | |
Weighted average exercise price, ending balance | 7.23 | [2] | 7.45 | $ 8.78 | 8.78 | |
Weighted average exercise price, options exercisable | [2] | $ 9.44 | ||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share, granted | 2.14 | |||||
Exercise price per share, cancelled | 9.22 | 10.76 | ||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price per share, granted | 2.61 | |||||
Exercise price per share, cancelled | $ 9.24 | $ 11.21 | ||||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at the exercise date and the related exercise price of the underlying options, was $0 and $0 for the 2018 and 2017 third quarter and nine months. | |||||
[2] | The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at September 30, 2018 and the related exercise price of the underlying options, was $174,000 for outstanding options and $33,000 for exercisable options as of September 30, 2018. The remaining contractual life was 7.22 years for outstanding options and 5.51 years for exercisable options at September 30, 2018. |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Aggregate intrinsic value for option exercised | $ 0 | $ 0 | $ 0 | $ 0 |
Aggregate intrinsic value of option outstanding | 174,000 | 174,000 | ||
Aggregate intrinsic value of option exercisable | $ 33,000 | $ 33,000 | ||
Remaining contractual life of option outstanding | 7 years 2 months 19 days | |||
Remaining contractual life of option exercisable | 5 years 6 months 3 days |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares, granted | 39,000 | 23,333 | |||||||
Grant price per share, cancelled | $ 9.22 | $ 10.94 | |||||||
Grant price per share, vested | $ 2.61 | ||||||||
Grant price per share, vested, lower limit | 2.22 | ||||||||
Grant price per share, vested, upper limit | $ 9.38 | ||||||||
Restricted Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares, beginning balance | 208,008 | 207,995 | 408,582 | 408,582 | 167,703 | 167,703 | |||
Grant price per share, granted | $ 5.27 | $ 3.93 | $ 4.39 | ||||||
Number of shares, granted | 2,846 | 212 | 97,952 | 101,010 | 258,232 | 327,251 | |||
Grant price per share, cancelled | $ 3.93 | ||||||||
Number of shares, cancelled | (1,617) | (199) | (2,226) | (8,988) | |||||
Grant price per share, vested | [1] | $ 7.98 | |||||||
Number of shares, vested | [1] | (6,266) | (296,313) | (77,384) | |||||
Number of shares, ending balance | 202,971 | [2] | 208,008 | 207,995 | 202,971 | [2] | 408,582 | ||
Grant price per share, lower range limit beginning balance | $ 2.06 | $ 2.06 | $ 2.06 | $ 2.06 | $ 3.95 | $ 3.95 | |||
Grant price per share, upper range limit beginning balance | 13.84 | 7.98 | 10.38 | 10.38 | 13.46 | 13.46 | |||
Grant price per share, cancelled, lower limit | 3.93 | 2.14 | |||||||
Grant price per share, cancelled, upper limit | 9.08 | 10.08 | |||||||
Grant price per share, vested, lower limit | [1] | 2.06 | 9.08 | ||||||
Grant price per share, vested, upper limit | [1] | 10.38 | 13.46 | ||||||
Grant price per share, lower range limit ending balance | 2.06 | [2] | 2.06 | 2.06 | 2.06 | [2] | 2.06 | ||
Grant price per share, upper range limit ending balance | 5.27 | [2] | 13.84 | 7.98 | 5.27 | [2] | 10.38 | ||
Weighted average grant price beginning balance | 7.45 | 4.16 | 3.45 | 3.45 | $ 8.88 | 8.88 | |||
Weighted average grant price, granted | 5.27 | 3.93 | 4.39 | 2.48 | |||||
Weighted average grant price, cancelled | 3.94 | 3.93 | 5.86 | 3.07 | |||||
Weighted average grant price, vested | [1] | 7.98 | 0 | 3.24 | 11.09 | ||||
Weighted average grant price, ending balance | 4.07 | [2] | $ 7.45 | $ 4.16 | $ 4.07 | [2] | 3.45 | ||
Restricted Shares [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant price per share, granted | 2.06 | ||||||||
Grant price per share, cancelled | 3.93 | ||||||||
Restricted Shares [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant price per share, granted | $ 3.93 | ||||||||
Grant price per share, cancelled | $ 3.95 | ||||||||
[1] | The aggregate fair value of the restricted stock vested was $32,000 and $1,241,000 for the three and nine months ended September 30, 2018, and was $0 and $151,000 for the comparable 2017 periods. | ||||||||
[2] | The aggregate fair value of the restricted stock was $1,350,000 as of September 30, 2018. The remaining vesting period was 1.51 years at September 30, 2018. |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of restricted stock vested | $ 32,000 | $ 0 | $ 1,241,000 | $ 151,000 |
Aggregate fair value of restricted stock outstanding | $ 1,350,000 | $ 1,350,000 | ||
Remaining vesting period of restricted stock | 1 year 6 months 3 days |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of options beginning balance | 53,666 | 46,666 | |
Number of options, granted | 15,000 | 24,000 | 29,666 |
Number of options, cancelled | 0 | 0 | |
Number of options, vested | (3,778) | (17,000) | |
Number of options ending balance | 64,888 | 53,666 | |
Exercise price per share beginning balance, Lower limit | $ 2.14 | $ 2.14 | |
Exercise price per share beginning balance, Upper limit | 7.10 | 9.38 | |
Exercise price per share, Granted | 5.27 | 5.58 | |
Exercise price per share, Cancelled | 0 | 0 | |
Exercise price per share, Vested, lower limit | 2.22 | ||
Exercise price per share, Vested | 2.61 | ||
Exercise price per share, Vested, upper limit | 9.38 | ||
Exercise price per share ending balance, Lower limit | 2.14 | 2.14 | |
Exercise price per share ending balance, Upper limit | 7.10 | 7.10 | |
Weighted average exercise price | 4.16 | 4.52 | |
Weighted average exercise price, granted | 5.27 | 5.58 | |
Weighted average exercise price, cancelled | 0 | 0 | |
Weighted average exercise price, vested | 2.61 | 7.16 | |
Weighted average exercise price | $ 4.51 | $ 4.16 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting Disclosure [Line Items] | |
Number of business segments | 6 |
Number of operating segments | 4 |
Number of non-operating segments | 2 |
Loan outstanding percent | 10.00% |
Pools [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 34.00% |
Solar Panels [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 18.00% |
Roofing [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 13.00% |
Texas [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 17.00% |
California [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 11.00% |
Florida [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 11.00% |
Geographic Concentration Risk [Member] | Midwest [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 47.00% |
Geographic Concentration Risk [Member] | New York | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 88.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest income | $ 33,152 | $ 65,796 | $ 3,287 | [1] | |||
Total interest expense | 8,887 | 16,812 | 20,363 | [1],[2] | |||
Net interest income | 24,265 | 48,984 | 49,466 | [1] | |||
Provision for loan losses | 18,205 | 48,781 | 48,781 | [1] | |||
Net interest income after loss provision | 6,060 | 203 | 685 | [1] | |||
Sponsorship and race winnings | 5,371 | 10,599 | 10,599 | [1] | |||
Race team related expenses | (2,876) | (5,416) | 5,416 | [1] | |||
Other income (expense) | (12,518) | (27,254) | |||||
Loss before income taxes/net investment loss before taxes | (3,963) | (21,868) | (25,434) | [1],[3] | |||
Income tax benefit (provision) | 117 | $ 6,155 | 4,138 | 4,778 | $ 15,144 | ||
Net Income (loss) after tax | (3,846) | (17,730) | (32,604) | [1] | |||
Balance Sheet Data | |||||||
Total loans, net | 1,060,061 | 1,060,061 | 1,060,061 | ||||
Total assets | 1,571,407 | 1,571,407 | 1,571,407 | $ 1,077,357 | |||
Total funds borrowed | $ 1,265,074 | $ 1,265,074 | 1,265,074 | ||||
Selected Financial Ratios | |||||||
Return on assets | (1.19%) | (2.51%) | |||||
Return on equity | (6.59%) | (13.34%) | |||||
Interest yield | 10.75% | 10.91% | |||||
Net interest margin | 7.94% | 8.17% | |||||
Reserve coverage | 2.71% | 2.71% | |||||
Delinquency ratio | 1.29% | 1.29% | |||||
Charge off ratio | 3.69% | 3.53% | |||||
RPAC Racing, LLC [Member] | |||||||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest expense | $ 40 | $ 81 | |||||
Net interest income | (40) | (81) | |||||
Net interest income after loss provision | (40) | (81) | |||||
Sponsorship and race winnings | 5,371 | 10,599 | |||||
Race team related expenses | (2,876) | (5,416) | |||||
Other income (expense) | (1,887) | (4,124) | |||||
Loss before income taxes/net investment loss before taxes | 568 | 978 | |||||
Income tax benefit (provision) | (107) | (150) | |||||
Net Income (loss) after tax | 461 | 828 | |||||
Balance Sheet Data | |||||||
Total assets | 36,237 | 36,237 | 36,237 | ||||
Total funds borrowed | $ 7,614 | $ 7,614 | 7,614 | ||||
Selected Financial Ratios | |||||||
Return on assets | 4.94% | 4.46% | |||||
Return on equity | 42.83% | 38.67% | |||||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | |||||||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest income | $ 24,001 | $ 46,133 | |||||
Total interest expense | 2,306 | 4,442 | |||||
Net interest income | 21,695 | 41,691 | |||||
Provision for loan losses | 4,423 | 9,133 | |||||
Net interest income after loss provision | 17,272 | 32,558 | |||||
Other income (expense) | (3,160) | (8,680) | |||||
Loss before income taxes/net investment loss before taxes | 14,112 | 23,878 | |||||
Income tax benefit (provision) | (3,979) | (6,141) | |||||
Net Income (loss) after tax | 10,133 | 17,737 | |||||
Balance Sheet Data | |||||||
Total loans, net | 572,995 | 572,995 | 572,995 | ||||
Total assets | 582,610 | 582,610 | 582,610 | ||||
Total funds borrowed | $ 431,868 | $ 431,868 | 431,868 | ||||
Selected Financial Ratios | |||||||
Return on assets | 6.80% | 6.14% | |||||
Return on equity | 27.77% | 25.48% | |||||
Interest yield | 15.87% | 15.88% | |||||
Net interest margin | 14.34% | 14.35% | |||||
Reserve coverage | 0.50% | 0.50% | |||||
Delinquency ratio | 0.55% | 0.55% | |||||
Charge off ratio | 3.19% | 3.26% | |||||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | |||||||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest income | $ 3,968 | $ 8,605 | |||||
Total interest expense | 709 | 1,448 | |||||
Net interest income | 3,259 | 7,157 | |||||
Provision for loan losses | 598 | 1,475 | |||||
Net interest income after loss provision | 2,661 | 5,682 | |||||
Other income (expense) | 400 | (1,285) | |||||
Loss before income taxes/net investment loss before taxes | 3,061 | 4,397 | |||||
Income tax benefit (provision) | (863) | (1,159) | |||||
Net Income (loss) after tax | 2,198 | 3,238 | |||||
Balance Sheet Data | |||||||
Total loans, net | 168,781 | 168,781 | 168,781 | ||||
Total assets | 175,333 | 175,333 | 175,333 | ||||
Total funds borrowed | $ 132,914 | $ 132,914 | 132,914 | ||||
Selected Financial Ratios | |||||||
Return on assets | 4.57% | 3.42% | |||||
Return on equity | 19.99% | 15.22% | |||||
Interest yield | 8.10% | 8.94% | |||||
Net interest margin | 6.65% | 7.44% | |||||
Reserve coverage | 0.51% | 0.51% | |||||
Delinquency ratio | 0.10% | 0.10% | |||||
Charge off ratio | 1.34% | 1.27% | |||||
Operating Segments [Member] | Commercial Lending [Member] | |||||||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest income | $ 2,637 | $ 4,959 | |||||
Total interest expense | 681 | 1,336 | |||||
Net interest income | 1,956 | 3,623 | |||||
Provision for loan losses | (75) | 100 | |||||
Net interest income after loss provision | 2,031 | 3,523 | |||||
Other income (expense) | (934) | (2,044) | |||||
Loss before income taxes/net investment loss before taxes | 1,097 | 1,479 | |||||
Income tax benefit (provision) | (254) | (339) | |||||
Net Income (loss) after tax | 843 | 1,140 | |||||
Balance Sheet Data | |||||||
Total loans, net | 82,458 | 82,458 | 82,458 | ||||
Total assets | 90,380 | 90,380 | 90,380 | ||||
Total funds borrowed | $ 71,655 | $ 71,655 | 71,655 | ||||
Selected Financial Ratios | |||||||
Return on assets | 3.35% | 2.15% | |||||
Return on equity | 6.99% | 4.81% | |||||
Interest yield | 12.87% | 12.24% | |||||
Net interest margin | 9.54% | 8.94% | |||||
Reserve coverage | 0.12% | 0.12% | |||||
Delinquency ratio | 0.51% | 0.51% | |||||
Charge off ratio | 0.00% | 0.00% | |||||
Operating Segments [Member] | Medallion Lending [Member] | |||||||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest income | $ 2,126 | $ 5,315 | |||||
Total interest expense | 3,672 | 7,045 | |||||
Net interest income | (1,546) | (1,730) | |||||
Provision for loan losses | 13,259 | 38,073 | |||||
Net interest income after loss provision | (14,805) | (39,803) | |||||
Other income (expense) | (4,077) | (6,888) | |||||
Loss before income taxes/net investment loss before taxes | (18,882) | (46,691) | |||||
Income tax benefit (provision) | 4,371 | 10,528 | |||||
Net Income (loss) after tax | (14,511) | (36,163) | |||||
Balance Sheet Data | |||||||
Total loans, net | 235,827 | 235,827 | 235,827 | ||||
Total assets | 369,763 | 369,763 | 369,763 | ||||
Total funds borrowed | $ 399,750 | $ 399,750 | 399,750 | ||||
Selected Financial Ratios | |||||||
Return on assets | (15.23%) | (18.49%) | |||||
Interest yield | 3.41% | 4.03% | |||||
Net interest margin | (2.48%) | (1.31%) | |||||
Reserve coverage | 9.81% | 9.81% | |||||
Delinquency ratio | 4.06% | 4.06% | |||||
Charge off ratio | 10.35% | 9.66% | |||||
Intersegment Eliminations [Member] | |||||||
Segment Reporting Disclosure [Line Items] | |||||||
Total interest income | $ 420 | $ 784 | |||||
Total interest expense | 1,479 | 2,460 | |||||
Net interest income | (1,059) | (1,676) | |||||
Net interest income after loss provision | (1,059) | (1,676) | |||||
Other income (expense) | (2,860) | (4,233) | |||||
Loss before income taxes/net investment loss before taxes | (3,919) | (5,909) | |||||
Income tax benefit (provision) | 949 | 1,399 | |||||
Net Income (loss) after tax | (2,970) | (4,510) | |||||
Balance Sheet Data | |||||||
Total assets | 317,084 | 317,084 | 317,084 | ||||
Total funds borrowed | $ 221,273 | $ 221,273 | $ 221,273 | ||||
Selected Financial Ratios | |||||||
Return on assets | (4.60%) | (3.67%) | |||||
Return on equity | (16.79%) | (11.85%) | |||||
[1] | Balance includes the six months ended September 30, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting. | ||||||
[2] | Average borrowings outstanding were $1,255,945 and $1,226,896, and the related average borrowing costs were 2.81% and 2.22% for the three and nine months ended September 30, 2018, and were $330,885 and $335,907 and 4.25% and 4.09% for the comparable 2017 periods. | ||||||
[3] | Includes $256 of net revenues received from Medallion Bank for the nine months ended September 30, 2018 and $184 and $641 for the three and nine months ended September 30, 2017, primarily for expense reimbursements. See Notes 6 and 13 for additional information. |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Major Components of Other Operating Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | |
Other Operating Expenses [Abstract] | |||
Directors' fees | $ 89 | $ 101 | $ 230 |
Miscellaneous taxes | 120 | 84 | 170 |
Computer expenses | 74 | 51 | 176 |
Depreciation and amortization | 23 | 23 | 71 |
Other expenses | 281 | 161 | 464 |
Total other operating expenses | $ 587 | $ 420 | $ 1,111 |
Selected Financial Ratios and_3
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | ||
Net share data | ||||||
Net asset value at the beginning of the period | $ 11,800 | $ 11,650 | $ 11,910 | |||
Net investment loss | (0.15) | (0.07) | (0.26) | |||
Income tax benefit | 0.03 | 0.26 | 0.63 | |||
Net realized gains (losses) on investments | (1.44) | 0.04 | 0.16 | |||
Net change in unrealized appreciation (depreciation) on investments | 0.94 | (0.20) | (0.66) | |||
Net increase (decrease) in net assets resulting from operations | (0.62) | 0.03 | (0.13) | |||
Issuance of common stock | (0.03) | 0 | (0.10) | |||
Repurchase of common stock | $ 0 | $ 0 | $ 0 | |||
Net investment income | $ 0 | $ 0 | $ 0 | |||
Return of capital | $ 0 | $ 0 | $ 0 | |||
Net realized gains on investments | 0 | 0 | 0 | |||
Total distributions | 0 | 0 | 0 | |||
Total increase (decrease) in net asset value | (0.65) | 0.03 | (0.23) | |||
Net asset value at the end of the period | [1] | 11,150 | 11,680 | 11,680 | ||
Per share market value at beginning of period | 3.53 | 2.39 | 3.02 | |||
Per share market value at end of period | $ 4.65 | $ 2.17 | $ 2.17 | |||
Total return | [2] | 129.00% | (37.00%) | (38.00%) | ||
Ratios/supplemental data | ||||||
Total shareholders' equity (net assets) | $ 272,437,000 | $ 283,580,000 | $ 283,580,000 | $ 280,415,000 | $ 287,159,000 | |
Average net assets | $ 284,021,000 | $ 284,151,000 | $ 285,673,000 | |||
Total expense ratio | [3],[4] | 10.02% | 1.49% | 2.21% | ||
Operating expenses to average net assets | [3] | 5.87% | 5.13% | 4.49% | ||
Net investment loss after income taxes to average net assets | [3] | (4.61%) | (3.48%) | (1.97%) | ||
[1] | Includes $0 and $0 of undistributed net investment income per share and $0 and $0 of undistributed net realized gains per share as of March 31, 2018 and September 30, 2017. | |||||
[2] | Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period. | |||||
[3] | MSC has assumed certain of the Company's servicing obligations, and as a result, servicing fee income of $1,290 and $1,330, and operating expenses of $1,150 and $1,037, which formerly were the Company's were now MSC's for the three months ended March 31, 2018 and September 30, 2017, and were $3,938 of servicing fee income, and $3,129 of operating expenses for the nine months ended September 30, 2017. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, 3.10%, 6.58%, and (3.23%) in the September 30, 2017 quarter, and 3.86%, 5.95%, and (1.97%) in the nine months ended September 30, 2017. | |||||
[4] | Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. |
Selected Financial Ratios and_4
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | ||
Investment Holdings [Line Items] | ||||
Undistributed net investment income per share | $ 0 | $ 0 | ||
Undistributed net realized gains per share | $ 0 | $ 0 | ||
Operating expenses | $ 1,150 | $ 1,037 | $ 3,129 | |
Total expense ratio | [1],[2] | 10.02% | 1.49% | 2.21% |
Operating expense ratio | [1] | 5.87% | 5.13% | 4.49% |
Excluding Impact of Medallion Servicing Corp. Amounts [Member] | ||||
Investment Holdings [Line Items] | ||||
Total expense ratio | 11.75% | 3.10% | 3.86% | |
Operating expense ratio | 6.88% | 6.58% | 5.95% | |
Net investment income ratio | 7.51% | (3.23%) | (1.97%) | |
Shareholder Service [Member] | ||||
Investment Holdings [Line Items] | ||||
Servicing fee | $ 1,290 | $ 1,330 | $ 3,938 | |
[1] | MSC has assumed certain of the Company's servicing obligations, and as a result, servicing fee income of $1,290 and $1,330, and operating expenses of $1,150 and $1,037, which formerly were the Company's were now MSC's for the three months ended March 31, 2018 and September 30, 2017, and were $3,938 of servicing fee income, and $3,129 of operating expenses for the nine months ended September 30, 2017. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, 3.10%, 6.58%, and (3.23%) in the September 30, 2017 quarter, and 3.86%, 5.95%, and (1.97%) in the nine months ended September 30, 2017. | |||
[2] | Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Medallion Bank [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loan receivable to bank | $ 314,974,000 | $ 314,974,000 | $ 311,988,000 | ||
Medallion Servicing Corporation [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest income | $ 1,290,000 | 1,330,000 | 3,938,000 | ||
Medallion Fine Art Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest income | 38,000 | $ 10,000 | 163,000 | ||
Outstanding loan amount to Medallion Fine Art | 999,000 | ||||
Loan amount advanced | 0 | ||||
Loan amount repaid | $ 2,165,000 | ||||
Medallion Fine Art Inc [Member] | Paid In Kind [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest rate on loan | 12.00% | ||||
RPAC Racing, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest income | $ 0 | $ 0 | $ 56,000 | ||
Outstanding loan amount to Medallion Fine Art | $ 16,472,000 | ||||
Interest rate on loan | 2.00% | ||||
Officer [Member] | LAX Group, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Salary from related party | 172,000 | ||||
Consulting services revenue from related party | $ 4,200 | ||||
Officer [Member] | Common Class B [Member] | LAX Group, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity ownership percentage by a related party | 10.00% | ||||
Common stock vesting percentage | 3.34% | ||||
Percentage of equity raised from outside investors | 5.00% | ||||
Percentage of bonus received from related party | 10.00% | ||||
Petty Trust [Member] | RPAC Racing, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Annual payment for services provided to the entity | $ 700,000 | ||||
Note payable to the Petty Trust | $ 7,114,000 | ||||
Interest percentage of Notes payable | 2.00% | ||||
Minimum [Member] | Officer [Member] | Common Class B [Member] | LAX Group, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Valuation of equity raised from outside investors | $ 1,500,000 |
Related Party Transaction - Sum
Related Party Transaction - Summary of Net Revenue Received (Detail) - Medallion Bank [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | |
Schedule of Other Related Party Transactions [Line Items] | |||
Reimbursement of operating expenses | $ 250 | $ 182 | $ 636 |
Loan origination and servicing fees | 6 | 2 | 5 |
Total other income | $ 256 | $ 184 | $ 641 |
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 | Sep. 30, 2018 | Dec. 31, 2017 | |
Financial assets | |||
Investment securities | $ 908,297 | ||
Loans receivable | 864,819 | ||
Investments | 43,478 | ||
Carrying Amount [Member] | Bank Holding Company Accounting [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | $ 143,560 | |
Equity investments | 10,752 | ||
Investment securities | 45,757 | ||
Loans receivable | 1,060,061 | ||
Accrued interest receivable | [2] | 7,005 | |
Financial liabilities | |||
Funds borrowed | [3] | 1,265,074 | |
Accrued interest payable | 6,118 | ||
Carrying Amount [Member] | Investment Company Accounting [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 12,690 | |
Investments | 610,135 | ||
Accrued interest receivable | [2] | 547 | |
Financial liabilities | |||
Funds borrowed | [3] | 327,623 | |
Accrued interest payable | 3,831 | ||
Fair Value Recurring [Member] | |||
Financial assets | |||
Investments | [4] | 45,757 | |
Fair Value Recurring [Member] | Bank Holding Company Accounting [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 143,560 | |
Equity investments | 10,752 | ||
Investment securities | 45,757 | ||
Loans receivable | 1,060,061 | ||
Accrued interest receivable | [2] | 7,005 | |
Financial liabilities | |||
Funds borrowed | [3] | 1,266,016 | |
Accrued interest payable | $ 6,118 | ||
Fair Value Recurring [Member] | Investment Company Accounting [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 12,690 | |
Investments | 610,135 | ||
Accrued interest receivable | [2] | 547 | |
Financial liabilities | |||
Funds borrowed | [3] | 330,084 | |
Accrued interest payable | $ 3,831 | ||
[1] | Categorized as level 1 within the fair value hierarchy. | ||
[2] | Categorized as level 3 within the fair value hierarchy. | ||
[3] | As of September 30, 2018 and December 31, 2017, publicly traded retail notes traded at a premium to par of $942 and $2,461. | ||
[4] | Total unrealized losses of $469, net of tax, was included in accumulated other comprehensive income (loss) for the six months ended September 30, 2018 related to these assets |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Publicly traded retail notes traded at a premium to par | $ 942 | $ 2,461 |
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 | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets | |||
Available for sale investment securities | $ 43,478 | ||
Medallion Financing Trust I [Member] | |||
Assets | |||
Medallion loans | 311,988 | ||
Medallion Bank and Other Controlled Subsidiaries [Member] | |||
Assets | |||
Investments in Medallion Bank and other controlled subsidiaries | 302,147 | ||
Fair Value Recurring [Member] | |||
Assets | |||
Equity investments | $ 10,752 | 9,521 | |
Available for sale investment securities | [1] | 45,757 | |
Total | 56,509 | ||
Commercial loans | 90,188 | ||
Equity investments | 10,752 | 9,521 | |
Investments other than securities | 7,450 | ||
Other assets | 339 | ||
Fair Value Recurring [Member] | Medallion Financing Trust I [Member] | |||
Assets | |||
Medallion loans | 208,279 | ||
Fair Value Recurring [Member] | Medallion Bank and Other Controlled Subsidiaries [Member] | |||
Assets | |||
Investments in Medallion Bank and other controlled subsidiaries | 302,147 | ||
Fair Value Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Available for sale investment securities | [1] | 45,757 | |
Total | 45,757 | ||
Fair Value Recurring [Member] | Level 3 [Member] | |||
Assets | |||
Equity investments | 10,752 | 9,521 | |
Total | 10,752 | ||
Commercial loans | 90,188 | ||
Equity investments | $ 10,752 | 9,521 | |
Investments other than securities | 7,450 | ||
Other assets | 339 | ||
Fair Value Recurring [Member] | Level 3 [Member] | Medallion Financing Trust I [Member] | |||
Assets | |||
Medallion loans | 208,279 | ||
Fair Value Recurring [Member] | Level 3 [Member] | Medallion Bank and Other Controlled Subsidiaries [Member] | |||
Assets | |||
Investments in Medallion Bank and other controlled subsidiaries | $ 302,147 | ||
[1] | Total unrealized losses of $469, net of tax, was included in accumulated other comprehensive income (loss) for the six months ended September 30, 2018 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) $ in Thousands | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Net change in unrealized losses on investments, net of tax | $ (469) |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Moratorium's expiration period | 2013-07 | |||
Medallion Financing Trust I [Member] | ||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Appreciation in Investment in Medallion Bank | $ 39,826,000 | $ 7,489,000 | $ 128,918,000 | $ 15,500,000 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | $ 7,450,000 | ||||||||||
Ending balance | $ 9,510,000 | $ 9,510,000 | |||||||||
Fair Value, Measurements, Nonrecurring [Member] | Taxi Medallion Loan Trust III [Member] | |||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | 208,279,000 | 233,415,000 | $ 161,155,000 | 266,816,000 | |||||||
Gains (losses) included in earnings | (38,190,000) | (6,690,000) | (27,837,000) | ||||||||
Purchases, investments, and issuances | 7,000 | 1,475,000 | 1,795,000 | ||||||||
Sales, maturities, settlements, and distributions | (8,941,000) | (3,620,000) | (16,194,000) | ||||||||
Ending balance | 161,155,000 | 224,580,000 | 224,580,000 | ||||||||
Amounts related to held assets | (38,190,000) | [1] | (6,669,000) | [2] | (27,764,000) | [2] | |||||
Fair Value, Measurements, Nonrecurring [Member] | Commercial Loan And Lease [Member] | |||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | 90,188,000 | 78,092,000 | 93,620,000 | 83,634,000 | |||||||
Gains (losses) included in earnings | (8,000) | (73,000) | (476,000) | ||||||||
Purchases, investments, and issuances | 7,252,000 | 6,007,000 | 13,823,000 | ||||||||
Sales, maturities, settlements, and distributions | (3,812,000) | (1,266,000) | (14,221,000) | ||||||||
Ending balance | 93,620,000 | 82,760,000 | 82,760,000 | ||||||||
Amounts related to held assets | (10,000) | [1] | 75,000 | [2] | (375,000) | [2] | |||||
Fair Value, Measurements, Nonrecurring [Member] | Investment [Member] | |||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | 302,147,000 | 301,819,000 | 331,169,000 | 293,360,000 | |||||||
Gains (losses) included in earnings | 29,143,000 | 3,291,000 | 12,345,000 | ||||||||
Purchases, investments, and issuances | 462,000 | 250,000 | 652,000 | ||||||||
Sales, maturities, settlements, and distributions | (583,000) | (1,499,000) | (2,496,000) | ||||||||
Ending balance | 331,169,000 | 303,861,000 | 303,861,000 | ||||||||
Amounts related to held assets | 29,143,000 | [1] | 3,291,000 | [2] | 12,345,000 | [2] | |||||
Fair Value, Measurements, Nonrecurring [Member] | Equity Investment [Member] | |||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | $ 10,773,000 | 9,521,000 | 10,316,000 | 9,458,000 | 8,407,000 | ||||||
Gains (losses) included in earnings | (400,000) | (993,000) | (325,000) | (774,000) | 3,830,000 | ||||||
Purchases, investments, and issuances | 631,000 | 935,000 | 300,000 | 1,160,000 | 1,156,000 | ||||||
Sales, maturities, settlements, and distributions | (252,000) | (5,000) | (307,000) | (469,000) | (3,409,000) | ||||||
Transfers in | [3] | 1,377,000 | |||||||||
Ending balance | 10,752,000 | 9,458,000 | 9,984,000 | 10,752,000 | 9,984,000 | ||||||
Amounts related to held assets | $ (400,000) | [4] | (993,000) | [1] | (325,000) | [2] | (774,000) | [4] | 1,056,000 | [2] | |
Fair Value, Measurements, Nonrecurring [Member] | Other than Securities Investment [Member] | |||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | 7,450,000 | 9,510,000 | 5,535,000 | 9,510,000 | |||||||
Gains (losses) included in earnings | (1,915,000) | ||||||||||
Ending balance | 5,535,000 | 9,510,000 | 9,510,000 | ||||||||
Amounts related to held assets | [1] | (1,915,000) | |||||||||
Fair Value, Measurements, Nonrecurring [Member] | Other Asset [Member] | |||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||||||||
Beginning balance | 339,000 | 354,000 | $ 339,000 | 354,000 | |||||||
Gains (losses) included in earnings | (15,000) | (15,000) | |||||||||
Ending balance | $ 339,000 | 339,000 | 339,000 | ||||||||
Amounts related to held assets | [2] | $ (15,000) | $ (15,000) | ||||||||
[1] | Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018 | ||||||||||
[2] | Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2017. | ||||||||||
[3] | Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter. | ||||||||||
[4] | Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Impaired loans | $ 26,558 | $ 338,867 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Impaired loans | 48,702 | |
Loan collateral in process of foreclosure | 59,761 | |
Other receivables | 5,500 | |
Total | 113,963 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||
Assets | ||
Impaired loans | 48,702 | |
Loan collateral in process of foreclosure | 59,761 | |
Other receivables | 5,500 | |
Total | $ 113,963 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment | $ 43,478,000 | |
Medallion Loans [Member] | Level 3 [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans | 208,279,000 | |
Commercial Loans [Member] | Level 3 [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans | $ 90,188,000 | |
Investment in Medallion Bank [Member] | Cash Flow Analysis [Member] | Measurement Input, Conversion Price [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment, measurement input | 0.1750 | |
Investment in Medallion Bank [Member] | Level 3 [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Book Value Multiples [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment | $ 290,548,000 | |
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance of the Investee [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment | 4,623,000 | |
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Book Value Adjusted for Asset Appreciation [Member] | Third Party Valuation or Offer to Purchase Asset [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment | 3,878,000 | |
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Third Party Offer to Purchase Investment [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment | 3,001,000 | |
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Book Value and Equity Pickup [Member] | Financial Condition and Operating Performance of the Investee [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment | $ 97,000 | |
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ / shares | $ 8.73 | $ 8.73 |
Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input, Credit Spread [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investment, input | 0.12 | |
Equity Investments [Member] | Level 3 [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | $ 1,455,000 | $ 1,455,000 |
Equity Investments [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | 5,417,000 | |
Equity Investments [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | 6,538,000 | |
Equity Investments [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | Measurement Input, Share Price [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | 2,193,000 | |
Equity Investments [Member] | Level 3 [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Financial Condition and Operating Performance of the Investee [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | 2,550,000 | |
Equity Investments [Member] | Level 3 [Member] | Investee Book Value [Member] | Measurement Input, Transfer prices of Chicago medallions [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | $ 456,000 | |
Equity Investments [Member] | Level 3 [Member] | Investee Book Value [Member] | Equity Method Valuation Indicated By Investee Filings [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity investments | 209,000 | |
Other than Securities Investment [Member] | Cash Flow Analysis [Member] | Discount Rate in Cash Flow Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments other than securities | 0.06 | |
Other than Securities Investment [Member] | Level 3 [Member] | Cash Flow Analysis [Member] | Discount Rate in Cash Flow Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments other than securities | $ 7,450,000 | |
Other Debt Obligations [Member] | Borrower Collateral Analysis [Member] | Measurement Input, Adequacy of Collateral [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other assets, input | 0 | |
Other Debt Obligations [Member] | Level 3 [Member] | Borrower Collateral Analysis [Member] | Measurement Input, Adequacy of Collateral [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other assets | $ 339,000 | |
Minimum [Member] | Medallion Loans [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans, measurement input | 0.01 | |
Minimum [Member] | Commercial Loans [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans, measurement input | 0.0200 | |
Minimum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Book Value Multiples [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment, measurement input | 2.1 | |
Minimum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Earnings Multiple [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment, measurement input | 8.7 | |
Minimum [Member] | Investment in Medallion Bank [Member] | Cash Flow Analysis [Member] | Terminal Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 470,964,000 | |
Minimum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | 37,500,000 | |
Minimum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Equity Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | 2,000,000 | |
Minimum [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input, Share Price [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 2,000,000 | |
Minimum [Member] | Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 6,018,000 | |
Equity investment, input | 0.94 | |
Maximum [Member] | Medallion Loans [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans, measurement input | 4.20 | |
Maximum [Member] | Commercial Loans [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans, measurement input | 0.1900 | |
Maximum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Book Value Multiples [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment, measurement input | 2.5 | |
Maximum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Earnings Multiple [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investment, measurement input | 10.6 | |
Maximum [Member] | Investment in Medallion Bank [Member] | Cash Flow Analysis [Member] | Terminal Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 623,007,000 | |
Maximum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | 41,500,000 | |
Maximum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Equity Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | 5,000,000 | |
Maximum [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input, Share Price [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 5,000,000 | |
Maximum [Member] | Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 7,218,000 | |
Equity investment, input | 4.42 | |
Weighted Average [Member] | Medallion Loans [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans, measurement input | 1.31 | |
Weighted Average [Member] | Commercial Loans [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Loans, measurement input | 0.1202 |
Investments Other Than Securi_3
Investments Other Than Securities - Summary of Investments Other than Securities (Detail) $ in Thousands | Dec. 31, 2017USD ($)Investment | |
Investment Holdings [Line Items] | ||
Investment Cost | $ 8,689 | |
Value as of 12/31/17 | $ 7,450 | |
City of Chicago Taxicab Medallions [Member] | ||
Investment Holdings [Line Items] | ||
Number of Investments | Investment | 154 | [1] |
Investment Cost | $ 8,411 | |
Value as of 12/31/17 | $ 7,238 | [2] |
City of Chicago Taxicab Medallions Handicap Accessible [Member] | ||
Investment Holdings [Line Items] | ||
Number of Investments | Investment | 5 | [1] |
Investment Cost | $ 278 | |
Value as of 12/31/17 | $ 212 | [3] |
[1] | Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying asset under Investment Company Accounting. | |
[2] | Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for Federal income tax purposes was $1,392 at December 31, 2017. | |
[3] | Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for Federal income tax purposes was $40 at December 31, 2017. |
Investments Other Than Securi_4
Investments Other Than Securities - Summary of Investments Other than Securities (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
City of Chicago Taxicab Medallions [Member] | |
Investment Holdings [Line Items] | |
Gross unrealized appreciation | $ 5,846 |
Gross unrealized depreciation | 0 |
Net unrealized appreciation | 5,846 |
Aggregate Cost for Federal income tax | 1,392 |
City of Chicago Taxicab Medallions Handicap Accessible [Member] | |
Investment Holdings [Line Items] | |
Gross unrealized appreciation | 172 |
Gross unrealized depreciation | 0 |
Net unrealized appreciation | 172 |
Aggregate Cost for Federal income tax | $ 40 |
Small Business Lending Fund P_2
Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) - Additional Information (Detail) - Capital Purchase Program [Member] - USD ($) | Apr. 02, 2018 | Jul. 21, 2011 | Feb. 27, 2009 | Sep. 30, 2018 |
US Treasury Securities [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Aggregate purchase price | $ 26,303,000 | |||
US Treasury shares purchased | 26,303 | |||
Series ABC and D Non-cumulative Perpetual Preferred Stock [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Aggregate purchase price | $ 21,498,000 | |||
Redemption of preferred stock | $ 4,000,000 | |||
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | ||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | ||||
Aggregate purchase price | $ 26,303,000 | |||
Percentage of dividend payment rate | 9.00% |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Variable Interest Entities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash | $ 110,233 | |
Total assets | $ 1,571,407 | 1,077,357 |
Liabilities | ||
Total liabilities | 913,127 | |
Bank Holding Company Accounting [Member] | ||
Assets | ||
Cash | 166 | |
Net loans receivable | 45,384 | |
Accrued interest receivable | 97 | |
Loan collateral in process of foreclosure | 17,865 | |
Total assets | 63,512 | |
Liabilities | ||
Accounts payable and accrued expenses | 69 | |
Accrued interest payable | 2,364 | |
Total liabilities | 98,491 | |
Investment Company Accounting [Member] | ||
Assets | ||
Cash | 393 | |
Net investments | 96,688 | |
Accrued interest receivable | 170 | |
Total assets | 97,251 | |
Liabilities | ||
Accrued interest payable | 1,849 | |
Total liabilities | 101,833 | |
DZ Loan [Member] | Bank Holding Company Accounting [Member] | ||
Liabilities | ||
Loans | $ 96,058 | |
DZ Loan [Member] | Investment Company Accounting [Member] | ||
Liabilities | ||
Loans | $ 99,984 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) | Sep. 30, 2018USD ($) |
Taxi Medallion Loan Trust III [Member] | |
Variable Interest Entity [Line Items] | |
Limited guarantee maximum exposure | $ 5,987,000 |
Subsequent Events - Additional
Subsequent Events - Additional information (Detail) - Subsequent Event [Member] - USD ($) $ in Millions | Oct. 29, 2018 | Nov. 08, 2018 |
Subsequent Event [Line Items] | ||
Extended credit facility | Mar. 1, 2019 | |
Promissory note | $ 1.4 |