Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MFIN | |
Entity Registrant Name | MEDALLION FINANCIAL CORP | |
Entity Central Index Key | 0001000209 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,599,299 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Cash | [1] | $ 53,505 | $ 23,842 | |
Federal funds sold | 32,616 | 33,871 | ||
Equity investments | 8,699 | 9,197 | ||
Investment securities | 44,682 | 45,324 | ||
Loans | 1,024,200 | 1,017,882 | ||
Allowance for losses | (36,862) | [2] | (36,395) | |
Net loans receivable | 987,338 | 981,487 | ||
Accrued interest receivable | 7,108 | 7,413 | ||
Property, equipment, and right-of-use lease asset, net | 13,296 | 1,222 | ||
Loan collateral in process of foreclosure | [3] | 49,808 | 49,495 | |
Goodwill | 150,803 | 150,803 | ||
Intangible assets, net | 53,620 | 53,982 | ||
Other assets | 27,253 | 25,210 | ||
Total assets | 1,428,728 | 1,381,846 | ||
Liabilities | ||||
Accounts payable and accrued expenses | [4] | 16,279 | 18,789 | |
Accrued interest payable | 3,131 | 3,852 | ||
Deposits | 864,131 | 848,040 | ||
Short-term borrowings | 81,872 | 55,178 | ||
Deferred tax liabilities and other tax payables | 7,037 | 6,973 | ||
Operating lease liabilities | 11,724 | |||
Long-term debt | 152,713 | 158,810 | ||
Total liabilities | 1,136,887 | 1,091,642 | ||
Commitments and contingencies | [5] | |||
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- 27,546,999 shares at March 31, 2019 and 27,385,600 shares at December 31, 2018 issued) | 275 | 274 | ||
Additional paid in capital | 274,456 | 274,292 | ||
Treasury stock (2,951,243 shares at March 31, 2019 and December 31, 2018) | (24,919) | (24,919) | ||
Accumulated other comprehensive income (loss) | 587 | (82) | ||
Retained earnings | 14,271 | 13,043 | ||
Total stockholders' equity | 264,670 | 262,608 | ||
Non-controlling interest in consolidated subsidiaries | 27,171 | 27,596 | ||
Total equity | 291,841 | 290,204 | ||
Total liabilities and equity | $ 1,428,728 | $ 1,381,846 | ||
Number of shares outstanding | 24,595,756 | 24,434,357 | ||
Book value per share | $ 10.76 | $ 10.75 | ||
[1] | Includes restricted cash of $2,475 as of March 31, 2019. | |||
[2] | Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018. | |||
[3] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,930 as of March 31, 2019 and $3,134 as of December 31, 2018. | |||
[4] | Includes the short-term portion of lease liabilities of $1,846 as of March 31, 2019. Refer to Note 8 for more details. | |||
[5] | Refer to Note 14 for details. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 27,546,999 | 27,385,600 |
Treasury stock,shares | 2,951,243 | 2,951,243 |
Restricted cash | $ 2,475 | |
Loan collateral in process of foreclosure, financed sales collateral to third parties | 3,930 | $ 3,134 |
Short term lease liabilities | $ 1,846 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Interest and fees on loans | $ 29,439 | $ 85 | |
Interest income on investments | $ 244 | ||
Interest and dividends on investment securities | 566 | ||
Interest income | 30,043 | ||
Medallion lease income | 38 | ||
Total interest income/total investment income | [1] | 30,043 | |
Interest on deposits | 4,921 | ||
Interest on short-term borrowings | 982 | ||
Interest on long-term debt | 1,819 | ||
Total interest expense | [2] | 7,722 | |
Net interest income (loss) | 22,321 | ||
Provision for loan losses | [3] | 13,343 | |
Net interest income after provision for loan losses | 8,978 | ||
Other income (loss) | |||
Gain on the extinguishment of debt | 4,145 | ||
Sponsorship and race winnings | 3,179 | ||
Change in collateral value on loans in process of foreclosure | (2,119) | ||
Other income | 1,658 | ||
Total other income | 6,863 | ||
Other expenses | |||
Salaries and employee benefits | 5,341 | ||
Race team related expenses | 1,998 | ||
Professional fees | 1,636 | ||
Loan servicing fees | 1,194 | ||
Collection costs | 638 | ||
Rent expense | 600 | ||
Regulatory fees | 447 | ||
Amortization of intangible assets | 361 | ||
Travel, meals and entertainment | 265 | ||
Other expenses | [4] | 2,222 | |
Total other expenses | 14,702 | ||
Income before income taxes/net investment loss before taxes | [5] | 1,139 | |
Income tax benefit | 256 | ||
Net income after taxes/net investment loss after taxes | 1,395 | ||
Net income after taxes/net decrease on net assets resulting from operations | 1,395 | ||
Less: income attributable to the non-controlling interest | 167 | ||
Total net income attributable to Medallion Financial Corp./net (decrease) on net assets resulting from operations | $ 1,228 | ||
Basic net income (loss) per share | $ 0.05 | $ (0.62) | |
Diluted net income (loss) per share | 0.05 | $ (0.62) | |
Distributions declared per share | $ 0 | ||
Weighted average common shares outstanding | |||
Basic | 24,288,263 | 24,154,879 | |
Diluted | 24,616,890 | 24,154,879 | |
Investment Company Accounting [Member] | |||
Interest income on investments | $ 3,287 | ||
Interest and dividends on investment securities | 14 | ||
Medallion lease income | 40 | ||
Total interest income/total investment income | [1] | 4,033 | |
Interest expense | 3,551 | ||
Total interest expense | [2] | 3,551 | |
Net interest income (loss) | 482 | ||
Net interest income after provision for loan losses | 482 | ||
Other income (loss) | |||
Other income | 60 | ||
Total other income | 60 | ||
Other expenses | |||
Salaries and employee benefits | 2,349 | ||
Professional fees | 723 | ||
Collection costs | 120 | ||
Rent expense | 243 | ||
Travel, meals and entertainment | 206 | ||
Other expenses | [4] | 467 | |
Total other expenses | 4,108 | ||
Income before income taxes/net investment loss before taxes | [5] | (3,566) | |
Income tax benefit | 336 | ||
Net income after taxes/net investment loss after taxes | (3,230) | ||
Net realized losses on investments | [6] | (34,745) | |
Income tax benefit | 8,426 | ||
Total net realized losses on investments | (26,319) | ||
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries | 29,115 | ||
Net change in unrealized depreciation on investments other than securities | (1,915) | ||
Net change in unrealized depreciation on investments | (4,403) | ||
Income tax provision | (8,122) | ||
Net unrealized appreciation on investments | 14,675 | ||
Net realized/unrealized losses on investments | (11,644) | ||
Net income after taxes/net decrease on net assets resulting from operations | (14,874) | ||
Total net income attributable to Medallion Financial Corp./net (decrease) on net assets resulting from operations | $ (14,874) | ||
Basic net income (loss) per share | $ (0.62) | ||
Diluted net income (loss) per share | (0.62) | ||
Distributions declared per share | $ 0 | ||
Weighted average common shares outstanding | |||
Basic | 24,154,879 | ||
Diluted | 24,154,879 | ||
Investment Company Accounting [Member] | Controlled Subsidiary Investment [Member] | |||
Dividend income from controlled subsidiaries | $ 28 | ||
Interest income | 10 | ||
Investment Company Accounting [Member] | Affiliate Investment [Member] | |||
Interest income | $ 654 | ||
[1] | Included in interest and investment income is $237 and $491 of paid in kind interest for the three months ended March 31, 2019 and 2018. | ||
[2] | Average borrowings outstanding were $1,067,075 and $324,322, and the related average borrowing costs were 2.93% and 4.44% for the three months ended March 31, 2019 and 2018. | ||
[3] | As of March 31, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $228,508, representing collection opportunities for the Company. | ||
[4] | See Note 12 for the components of other operating expenses as of March 31, 2018. | ||
[5] | Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information. | ||
[6] | There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018. |
Consolidated Statement of Inc_2
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest paid in kind | $ 237 | $ 491 |
Average borrowings outstanding | $ 1,067,075 | $ 324,322 |
Average borrowing costs rate | 2.93% | 4.44% |
Affiliated Entity [Member] | ||
Net Gain/losses on investment securities of affiliated | $ 0 | |
Medallion Bank [Member] | ||
Revenue | $ 256 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income/Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income after taxes/net decrease on net assets resulting from operations | $ 1,395 | |
Other comprehensive income, net of tax | 669 | |
Total comprehensive income (loss) | 2,064 | |
Less: comprehensive income attributable to the non-controlling interest | 167 | |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | $ 1,897 | |
Investment Company Accounting [Member] | ||
Net income after taxes/net decrease on net assets resulting from operations | $ (14,874) | |
Total comprehensive income (loss) | (14,874) | |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | $ (14,874) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity and Changes in Net Assets - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Capital in Excess of Par [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Parent [Member] | Noncontrolling Interest [Member] | Accumulated Undistributed Net Investment Loss [Member] | Accumulated Undistributed Net Realized Gains on Investments [Member] | Net Unrealized Appreciation on Investment Net of Tax [Member] |
Balance at Dec. 31, 2017 | $ 287,159 | |||||||||||
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017 | $ 273 | $ 273,716 | $ (24,919) | $ (65,592) | $ 103,681 | |||||||
Balance, shares (Investment Company Accounting [Member]) at Dec. 31, 2017 | 27,294,327 | (2,951,243) | ||||||||||
Net income | Investment Company Accounting [Member] | (14,874) | |||||||||||
Net increase (decrease) in net assets resulting from operations | (14,874) | |||||||||||
Net increase (decrease) in net assets resulting from operations | Investment Company Accounting [Member] | (38,299) | 23,425 | ||||||||||
Stock-based compensation | 152 | |||||||||||
Stock-based compensation | Investment Company Accounting [Member] | $ 1 | 151 | ||||||||||
Issuance of restricted stock, net | 0 | $ 0 | ||||||||||
Issuance of restricted stock, net | Investment Company Accounting [Member] | $ 0 | $ 0 | 0 | $ 0 | 0 | $ 0 | 0 | |||||
Issuance of restricted stock, net, shares | Investment Company Accounting [Member] | 95,726 | |||||||||||
Forfeiture of restricted stock, net | 0 | 0 | ||||||||||
Forfeiture of restricted stock, net | Investment Company Accounting [Member] | $ 0 | 0 | 0 | 0 | 0 | $ 0 | 0 | |||||
Ending balance at Mar. 31, 2018 | 272,437 | |||||||||||
Ending balance (Investment Company Accounting [Member]) at Mar. 31, 2018 | $ 274 | 273,867 | $ (24,919) | (103,891) | 127,106 | |||||||
Ending balance, shares (Investment Company Accounting [Member]) at Mar. 31, 2018 | 27,390,053 | (2,951,243) | ||||||||||
Balance at Dec. 31, 2017 | 287,159 | |||||||||||
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017 | $ 273 | 273,716 | $ (24,919) | $ (65,592) | $ 103,681 | |||||||
Balance, shares (Investment Company Accounting [Member]) at Dec. 31, 2017 | 27,294,327 | (2,951,243) | ||||||||||
Net change in unrealized gains on investments, net of tax | (82) | |||||||||||
Ending balance at Dec. 31, 2018 | $ 290,204 | $ 274 | 274,292 | $ (24,919) | $ 13,043 | $ (82) | $ 262,608 | 27,596 | ||||
Ending balance, shares at Dec. 31, 2018 | 24,434,357 | 27,385,600 | (2,951,243) | |||||||||
Net income | $ 1,395 | 1,228 | 1,228 | 167 | ||||||||
Distributions to non-controlling interest | (592) | (592) | ||||||||||
Stock-based compensation | 165 | $ 1 | 164 | 165 | ||||||||
Issuance of restricted stock, net | 0 | $ 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | |||
Issuance of restricted stock, net, shares | 163,098 | |||||||||||
Forfeiture of restricted stock, net | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Forfeiture of restricted stock, net, shares | (1,699) | |||||||||||
Net change in unrealized gains on investments, net of tax | 669 | 669 | 669 | |||||||||
Ending balance at Mar. 31, 2019 | $ 291,841 | $ 275 | $ 274,456 | $ (24,919) | $ 14,271 | $ 587 | $ 264,670 | $ 27,171 | ||||
Ending balance, shares at Mar. 31, 2019 | 24,595,756 | 27,546,999 | (2,951,243) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income/net (decrease) in net assets resulting from operations | $ 1,395 | |||
Adjustments to reconcile net income/net decrease in net assets resulting from operations to net cash provided by operating activities: | ||||
Provision for loan losses | 13,343 | |||
Paid-in-kind interest | (237) | |||
Depreciation and amortization | 2,046 | |||
Increase in deferred and other tax liabilities | 65 | |||
Amortization of origination fees, net | 1,151 | $ (13) | ||
Proceeds from the sale and for principal payments on loan collateral in process of foreclosure | 5,026 | |||
Net change in loan collateral in process of foreclosure | 3,757 | |||
Net change in unrealized (appreciation) depreciation on investments | (598) | |||
Stock-based compensation expense | 165 | |||
Gain on the extinguishment of debt | (4,145) | |||
Decrease in accrued interest receivable | 305 | |||
(Increase) decrease in other assets | (2,144) | |||
Decrease in accounts payable and accrued expenses | (3,355) | |||
Decrease in accrued interest payable | (687) | |||
Net cash provided by operating activities | 16,087 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Loans originated | (92,533) | |||
Proceeds from principal receipts, sales, and maturities of loans | 62,239 | |||
Purchases of investments | (50) | |||
Proceeds from principal receipts, sales, and maturities of investments | 2,456 | |||
Net cash used for investing activities | (27,888) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from time deposits and funds borrowed | 118,586 | |||
Repayments of time deposits and funds borrowed | (77,785) | |||
Distributions to non-controlling interests | (592) | |||
Net cash provided by (used for) financing activities | 40,209 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 28,408 | |||
Cash and cash equivalents and restricted cash, beginning of period | [1] | 57,713 | ||
Cash and cash equivalents and restricted cash, end of period | [1] | 86,121 | 57,713 | |
SUPPLEMENTAL INFORMATION | ||||
Cash paid during the period for interest | 7,887 | |||
Cash paid during the period for income taxes | $ 14 | |||
Investment Company Accounting [Member] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income/net (decrease) in net assets resulting from operations | $ (14,874) | |||
Adjustments to reconcile net income/net decrease in net assets resulting from operations to net cash provided by operating activities: | ||||
Loans originated | (8,193) | |||
Proceeds from principal receipts, sales, and maturities of loans | 13,279 | |||
Paid-in-kind interest | (491) | |||
Depreciation and amortization | 246 | |||
Increase in deferred and other tax liabilities | 3,858 | |||
Amortization of origination fees, net | 13 | |||
Capital returned by Medallion Bank and other controlled subsidiaries, net | 93 | |||
Net change in unrealized (appreciation) depreciation on investments | 4,403 | |||
Net change in unrealized depreciation on investment other than securities | 1,915 | |||
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries | (29,115) | |||
Net realized gains on investments | [2] | 34,745 | ||
Stock-based compensation expense | 152 | |||
Decrease in accrued interest receivable | 130 | |||
(Increase) decrease in other assets | 54 | |||
Decrease in accounts payable and accrued expenses | (675) | |||
Decrease in accrued interest payable | (249) | |||
Net cash provided by operating activities | 5,291 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Repayments of time deposits and funds borrowed | (6,961) | |||
Payments of declared distributions | (64) | |||
Net cash provided by (used for) financing activities | (7,025) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (1,734) | |||
Cash and cash equivalents and restricted cash, beginning of period | [1] | 12,690 | $ 12,690 | |
Cash and cash equivalents and restricted cash, end of period | [1] | 10,956 | ||
SUPPLEMENTAL INFORMATION | ||||
Cash paid during the period for interest | $ 3,577 | |||
[1] | Includes federal funds sold for the three months ended March 31, 2019. | |||
[2] | There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 3 Months Ended |
Mar. 31, 2019 | |
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 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 (the 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 recreational vehicles (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 that conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC that 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 and 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, which 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), and MFC was the primary beneficiary. As a result, the Company consolidated Trust III in its financial results until the consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 18. 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 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. 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 $36,141,000 at March 31, 2019, 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 $4,676,000 in other assets on the Company’s consolidated balance sheet at March 31, 2019, compared to a net realizable value of $4,305,000 at December 31, 2018 and a fair value of $5,535,000 at March 31, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Change to Bank Holding Company Accounting Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (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 loans in process of foreclosure, goodwill and intangible assets, and investments, among other effects. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of 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 that were not previously consolidated with the Company prior to the three months ended June 30, 2018, were now consolidated effective April 2, 2018. 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 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. Cash includes $2,475,000 of an interest reserve associated with the private placement of debt in March 2019, which cannot be used for any other purpose until March 2022. 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 16 and 17 to the consolidated financial statements. Equity Investments Equity investments of $8,699,000 and $9,197,000 at March 31, 2019 and December 31, 2018, comprised mainly of nonmarketable stock and stock 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. 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 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 adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the 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 March 31, 2019 and December 31, 2018, net loan origination costs were $15,086,000 and $14,416,000. 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 March 31, 2019 and 2018 was $1,151,000 and ($13,000) ($852,000 when combined with Medallion Bank). 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 charged-off charged-off. charged-off 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 $34,732,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at March 31, 2019 and December 31, 2018. The Company accounts 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 $135,807,000 at March 31, 2019 and $140,180,000 at December 31, 2018. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and determined that no material servicing asset or liability existed as of March 31, 2019 and December 31, 2018. The Company assigned its servicing rights of 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, nonperforming 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 $6,173,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance. 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. 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 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. As of March 31, 2019 and December 31, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $53,620,000 and $53,982,000, respectively, and the Company recognized $361,000 of amortization expense on the intangible assets for the three months ended March 31, 2019. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $7,956,000 and $9,048,000 were outstanding at March 31, 2019 and December 31, 2018, and of which $1,092,000 was amortized to interest income for the three months ended March 31, 2019. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on Medallion Bank and impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter. The table below shows the details of the intangible assets as of the periods presented. (Dollars in thousands) March 31, 2019 December 31, 2018 Brand-related intellectual property $ 20,900 $ 21,176 Home improvement contractor relationships 6,555 6,641 Race organization 26,165 26,165 Total intangible assets $ 53,620 $ 53,982 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 $100,000 and $23,000 ($67,000 had Medallion Bank been consolidated) for the quarters ended March 31, 2019 and 2018. Deferred Costs Deferred financing costs, included in other assets, represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $520,000 and $223,000 ($528,000 had Medallion Bank been consolidated) for the quarters ended March 31, 2019 and 2018. 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 all of these purposes was $4,411,000, $4,461,000, and $2,862,000 ($4,884,000 had Medallion Bank been consolidated) as of March 31, 2019, December 31, 2018, and March 31, 2018. 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. Sponsorship and Race Winnings The Company accounts for the sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized based upon the contract terms of the sponsorship contract. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver. 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 March 31, (Dollars in thousands, except per share data) 2019 2018 Net income/net decrease in net assets resulting from operations available to common shareholders $ 1,228 $ (14,874 ) Weighted average common shares outstanding applicable to basic EPS 24,288,263 24,154,879 Effect of dilutive stock options 17,423 — Effect of restricted stock grants 311,204 — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,616,890 24,154,879 Basic earnings (loss) per share $ 0.05 $ (0.62 ) Diluted earnings (loss) per share 0.05 (0.62 ) Potentially dilutive common shares excluded from the above calculations aggregated 471,000 and 290,960 shares as of March 31, 2019 and 2018. 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 are reflected in net increase in net income/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/net increase 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 three months ended March 31, 2019 and 2018, the Company issued 163,098 and 97,952 of restricted shares of stock-based compensation awards, and 374,377 and 0 shares of stock options, and recognized $165,000 and $152,000, or $0.01 and $0.01 per share for each period, of non-cash Regulatory Capital Medallion Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet 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%, which would preclude their ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of March 31, 2019, the Bank’s Tier 1 leverage ratio was 16.56%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well-capitalized March 31, 2019 December 31, 2018 Common equity Tier 1 capital — — $ 143,409 $ 141,608 Tier 1 capital — — 169,712 167,911 Total capital — — 182,858 180,917 Average assets — — 1,025,114 1,059,461 Risk-weighted assets — — 1,005,656 993,374 Leverage ratio (1) 4.0 % 5.0 % 16.6 % 15.8 % Common equity Tier 1 capital ratio (2) 7.0 6.5 14.3 14.3 Tier 1 capital ratio (3) 8.5 8.0 16.9 16.9 Total capital ratio (3) 10.5 10.0 18.2 18.2 (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 increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, as of January 1, 2019, the Bank is 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%. Since the FDIC’s new capital rule has been fully phased in, the minimum capital requirements plus the capital conservation buffer exceed the Prompt Corrective Action well-capitalized thresholds. 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 |
Investment Securities (Bank Hol
Investment Securities (Bank Holding Company Accounting) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Investment Securities (Bank Holding Company Accounting) | (3) INVESTMENT SECURITIES (Bank Holding Company Accounting) Fixed maturity securities available for sale as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 (Dollars in thousands) Amortized Cost Gross Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 31,710 $ 154 $ (239 ) $ 31,625 State and municipalities 13,155 130 (228 ) 13,057 Total $ 44,865 $ 284 $ (467 ) $ 44,682 December 31, 2018 (Dollars in thousands) Amortized Cost Gross Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 32,184 $ 15 $ (742 ) $ 31,457 State and municipalities 14,239 35 (407 ) 13,867 Total $ 46,423 $ 50 $ (1,149 ) $ 45,324 The amortized cost and estimated market value of investment securities as of March 31, 2019 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 Cost Fair Value Due in one year or less $ 20 $ 20 Due after one year through five years 8,936 8,870 Due after five years through ten years 12,366 12,330 Due after ten years 23,543 23,462 Total $ 44,865 $ 44,682 Information pertaining to securities with gross unrealized losses at March 31, 2019 and December 31, 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 March 31, 2019 (Dollars in thousands) Gross Unrealized Fair Value Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ — $ — $ (239 ) $ 19,106 State and municipalities (50 ) 2,950 (178 ) 7,683 Total $ (50 ) $ 2,950 $ (417 ) $ 26,789 Less than Twelve Months Twelve Months and Over December 31, 2018 (Dollars in thousands) Gross Unrealized Fair Value Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (54 ) $ 4,616 $ (688 ) $ 24,871 State and municipalities (78 ) 5,429 (329 ) 6,259 Total $ (132 ) $ 10,045 $ (1,017 ) $ 31,130 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. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018. As of March 31, 2019 As of December 31, 2018 (Dollars in thousands) Amount As a Percent of Amount As a Percent of Recreation $ 609,999 60 % $ 587,038 58 % Home improvement 193,275 19 183,155 18 Commercial 55,211 5 64,083 6 Medallion 165,715 16 183,606 18 Total gross loans 1,024,200 100 % 1,017,882 100 % Allowance for loan losses (36,862 ) (36,395 ) Total net loans $ 987,338 $ 981,487 The following table shows the activity of the gross loans for the three months ended March 31, 2019. (Dollars in thousands) Recreation Home Improvement Commercial Medallions Total Gross loans- December 31, 2018 $ 587,038 $ 183,155 $ 64,083 $ 183,606 $ 1,017,882 Loan originations 65,757 26,296 442 — 92,495 Principal payments (33,373 ) (15,849 ) (9,344 ) (3,438 ) (62,004 ) Charge-offs (4,929 ) (159 ) — (7,788 ) (12,876 ) Transfer to loans in process of foreclosure, net (3,391 ) — — (5,705 ) (9,096 ) Other (1,103 ) (168 ) 30 (960 ) (2,201 ) Gross loans- March 31, 2019 $ 609,999 $ 193,275 $ 55,211 $ 165,715 $ 1,024,200 The following table sets forth the activity in the allowance for loan losses for the three months ended March 31, 2019. (Dollars in thousands) Three Months Ended Allowance for loan losses – beginning balance $ 36,395 Charge-offs Recreation (6,525 ) Home improvement (549 ) Commercial — Medallion (8,788 ) Total charge-offs (15,862 ) Recoveries Recreation 1,596 Home improvement 390 Commercial — Medallion 1,000 Total recoveries 2,986 Net charge-offs (12,876 ) (1) Provision for loan losses 13,343 Allowance for loan losses – ending balance (2) $ 36,862 (1) As of March 31, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $228,508, representing collection opportunities for the Company. (2) Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve on loans at the bank which existed prior to April 2, 2018, which was netted against loan balances at consolidation on April 2, 2018. The following tables set forth the composition of the allowance for loan losses by type as of March 31, 2019 and December 31, 2018. March 31, 2019 (Dollars in thousands) Amount Percentage of Allowance as a Recreation $ 8,932 24 % 1.46 % Home Improvement 2,186 6 1.13 Commercial 455 1 0.82 Medallion 25,289 69 15.26 Total $ 36,862 100 % 3.60 % December 31, 2018 (Dollars in thousands) Amount Percentage of Allowance as a Recreation $ 6,856 19 % 1.17 % Home Improvement 1,796 5 0.98 Commercial — — 0.00 Medallion 27,743 76 15.11 Total $ 36,395 100 % 3.58 % 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 (Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2018 (1) Total nonaccrual loans $ 21,549 $ 34,877 $ 77,998 Interest foregone quarter to date 403 487 1,642 Amount of foregone interest applied to principal in the quarter 115 166 792 Interest foregone life to date 1,634 1,952 14,127 Amount of foregone interest applied to principal life to date 819 1,214 4,287 Percentage of nonaccrual loans to gross loan portfolio 2 % 3 % 28 % (1) Does not include Medallion Bank nonaccrual loans of $35,920, interest income foregone for the quarter of $213 and foregone interest paid and applied to principal for the quarter of $153, interest income foregone life-to-date life-to-date The following tables present the performance status of loans as of March 31, 2019 and December 31, 2018. March 31, 2019 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 604,862 $ 5,137 $ 609,999 0.84 % Home improvement 193,117 158 193,275 0.08 Commercial 50,946 4,265 55,211 7.72 Medallion 153,726 11,989 165,715 7.23 Total $ 1,002,651 $ 21,549 $ 1,024,200 2.10 % December 31, 2018 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 581,250 $ 5,788 $ 587,038 0.99 % Home improvement 183,018 137 183,155 0.07 Commercial 60,249 3,834 64,083 5.98 Medallion 158,488 25,118 183,606 13.68 Total $ 983,005 $ 34,877 $ 1,017,882 3.43 % For those loans aged 31-90 The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2019 and December 31, 2018, all of which had an allowance recorded against the principal balance. March 31, 2019 Three Months Ended March 31, 2019 (Dollars in thousands) Recorded Unpaid Related Average Recorded Interest Income With an allowance recorded Recreation $ 5,137 $ 5,137 $ 183 $ 5,173 $ 132 Home improvement 158 158 3 158 — Commercial 4,265 4,360 455 4,233 — Medallion 11,989 12,712 19,116 16,307 54 Total nonperforming loans with an allowance $ 21,549 $ 22,367 $ 19,757 $ 25,871 $ 186 December 31, 2018 (Dollars in thousands) Recorded Unpaid Related With an allowance recorded Recreation $ 5,788 $ 5,788 $ 204 Home improvement 137 137 3 Commercial 3,834 3,929 — Medallion 25,118 26,237 22,035 Total with allowance $ 34,877 $ 36,091 $ 22,242 Total nonperforming loans $ 34,877 $ 36,091 $ 22,242 The following table provides additional information on attributes of the nonperforming loan portfolio as of March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Recorded (1) (2) Unpaid Principal Average Recorded March 31, 2018 Medallion (3) $ 59,394 $ 62,519 $ 142,364 Commercial (3) 18,604 20,880 19,151 (1) As of March 31, 2018, $24,256 of unrealized depreciation was recorded as a valuation allowance on these loans. (2) Interest income of $85 was recognized on loans for the three months ended March 31, 2018. (3) Included in the unpaid principal balance is unearned paid-in-kind The following tables show the aging of all loans as of March 31, 2019 and December 31, 2018: Days Past Due Recorded March 31, 2019 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recreation $ 13,186 $ 4,019 $ 3,282 $ 20,487 $ 569,065 $ 589,552 $ — Home improvement 436 183 156 775 195,120 195,895 — Commercial — — 710 710 54,501 55,211 — Medallion 47,655 3,309 3,954 54,918 104,939 159,857 — Total $ 61,277 $ 7,511 $ 8,102 $ 76,890 $ 923,625 $ 1,000,515 $ — (1) Excludes loan premiums of $7,956 resulting from purchase price accounting and $15,729 of capitalized loan origination costs. Days Past Due Recorded December 31, 2018 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recreation $ 18,483 $ 5,655 $ 4,020 $ 28,158 $ 539,051 $ 567,209 $ — Home improvement 715 283 135 1,133 184,528 185,661 — Commercial — 454 279 733 63,350 64,083 — Medallion 8,689 3,652 15,720 28,061 148,774 176,835 — Total $ 27,887 $ 10,044 $ 20,154 $ 58,085 $ 935,703 $ 993,788 $ — (1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 213%, 220%, and 209% as of March 31, 2019, December 31, 2018, and March 31, 2018. The following table shows the troubled debt restructurings which the Company entered into during the three months ended March 31, 2019 under Bank Holding Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 7 $ 2,895 $ 2,895 During the twelve months ended March 31, 2019, four loans modified as troubled debt restructurings were in default and had an investment value of $1,396,000 as of March 31, 2019, net of $938,000 of an allowance for loan losses under Bank Holding Company Accounting. The Company did not enter into any troubled debt restructurings for the quarter ended March 31, 2018. During the twelve months ended March 31, 2018, eight loans modified as troubled debt restructurings were in default and had an investment value of $1,334,000 as of March 31, 2018, net of $1,630,000 of unrealized depreciation under Investment Company Accounting. The following table shows the activity of the loans in process of foreclosure, which relates only to the recreation and medallion loans, for the three months ended March 31, 2019. (Dollars in thousands) Recreation Medallion Total Loans in process of foreclosure – December 31, 2018 $ 1,503 $ 47,992 $ 49,495 Transfer from loans, net 3,391 5,705 9,096 Sales (2,076 ) (377 ) (2,453 ) Cash payments received — (2,573 ) (2,573 ) Collateral valuation adjustments (1,638 ) (2,119 ) (3,757 ) Loans in process of foreclosure – March 31, 2019 $ 1,180 $ 48,628 $ 49,808 |
Unrealized Appreciation (Deprec
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments | 3 Months Ended |
Mar. 31, 2019 | |
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 The table below summarizes pre-tax (Dollars in thousands) Three Months March 31, 2018 Net change in unrealized appreciation (depreciation) on investments Unrealized appreciation ($ 998 ) Unrealized depreciation (38,152 ) Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries 29,115 Realized gains — Realized losses 34,747 Net unrealized losses on investments other than securities and other assets (1,915 ) Total $ 22,797 Net realized gains (losses) on investments Realized gains $ — Realized losses (34,747 ) Direct recoveries 2 Total ($ 34,745 ) |
Investments in Medallion Bank a
Investments in Medallion Bank and Other Controlled Subsidiaries | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Investments in Medallion Bank and Other Controlled Subsidiaries | (6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES 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 months ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Three Months Statement of comprehensive income Investment income $ 26,880 Interest expense 3,615 Net interest income 23,265 (Dollars in thousands) Three Months Noninterest income 19 Operating expenses 7,158 Net investment income before income taxes 16,126 Income tax benefit 3,321 Net investment income after income taxes 19,447 Net realized/unrealized losses of Medallion Bank (28,539 ) Net decrease in net assets resulting from operations of Medallion Bank (9,092 ) Unrealized appreciation on Medallion Bank (1) 39,092 Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank (885 ) Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries $ 29,115 (1) Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank. |
Funds Borrowed
Funds Borrowed | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (7) FUNDS BORROWED The outstanding balances of funds borrowed were as follows: Payments Due for the Fiscal Year Ending March 31, March 31, December 31, Interest (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter 2019 2018 Rate (1) Deposits $ 286,501 $ 193,929 $ 192,309 $ 128,236 $ 63,156 $ — $ 864,131 $ 848,040 2.24 % SBA debentures and borrowings 28,380 8,500 — 5,000 2,500 35,000 79,380 80,099 3.40 % Retail and privately placed notes — — 33,625 — 30,000 — 63,625 33,625 8.65 % Notes payable to banks 45,811 4,318 280 280 210 — 50,899 59,615 4.70 % Preferred securities — — — — — 33,000 33,000 33,000 4.73 % Other borrowings 7,681 — — — — — 7,681 7,649 2.00 % Total $ 368,373 $ 206,747 $ 226,214 $ 133,516 $ 95,866 $ 68,000 $ 1,098,716 $ 1,062,028 2.89 % (1) Weighted average contractual rate as of March 31, 2019. (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) March 31, 2019 Three months or less $ 110,012 Over three months through six months 108,138 Over six months through one year 68,351 Over one year 577,630 Total deposits $ 864,131 (B) DZ LOAN In December 2008, Trust III entered into the DZ 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 through an amended and restated credit agreement, which has been further extended several times and currently terminates in September 2019. The line was reduced to $150,000,000, and was further reduced in stages to $125,000,000 on July 1, 2016, remained as an amortizing facility and was restructured during the fourth quarter of 2018. 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. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. See Note 19 for more information about Trust III and the DZ loan. (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 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 a minimum of $7,600,000 of principal and interest to be paid on or before March 27, 2019 (which was paid), 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 March 31, 2019, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $79,380,000 was outstanding, including $28,380,000 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. The notes are typically secured by various assets of the underlying borrower. The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of March 31, 2019. (Dollars in thousands) Borrower # of Lenders/ Note Maturity Type Note Balance Monthly Payment Average Interest Interest Rate (1) The Company 6/6 4/11 - 8/14 4/19 - 9/20 Term loans (2) $ 37,741 (2) $ 37,741 Interest (3) 5.10 % Various (3) Medallion Chicago 2/23 11/11 - 12/11 6/19 Term loans (4) 18,449 11,828 $134 of 3.50 % N/A Medallion Funding 1/1 11/18 12/23 1,330 1,330 $70 4.00 % N/A $ 57,520 $ 50,899 (1) At March 31, 2019, 30 day LIBOR was 2.49%, 360 day LIBOR was 2.71%, and the prime rate was 5.50%. (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 3.75%, one note has an interest rate of LIBOR plus 3.75%, 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 $12 to $75. (4) Guaranteed by the Company. In March 2019, the Company used some of the proceeds of the privately placed notes to pay off one of the notes payable to banks at a 50% discount, resulting in a gain on debt extinguishment of $4,145,000 in the quarter. In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. See Note 19 for more information. (E) RETAIL AND PRIVATELY PLACED NOTES In March 2019, the Company completed a private placement to certain institutional investors of $30,000,000 aggregate principal amount of 8.25% unsecured senior notes due 2024, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including repaying certain borrowings under its notes payable to banks at a discount which led to a gain of $4,145,000 in the 2019 first quarter. 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 (2.60% at March 31, 2019) 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 March 31, 2019, $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 March 31, 2019, $7,181,000 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, 2019. (H) COVENANT COMPLIANCE Certain of our debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth, which in the event of noncompliance could preclude their ability to pay dividends to the Company. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 8) LEASES The Company has leased premises that expire at various dates through April 30, 2027 that are operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances. The following table presents the operating lease costs and additional information for the three months ended March 31, 2019. (Dollars in thousands) March 31, 2019 Operating lease costs $ 531 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 587 Right-of-use (16 ) The following table presents the breakout of the operating leases as of March 31, 2019. (Dollars in thousands) March 31, 2019 Operating lease right-of-use $ 12,165 Other current liabilities 1,846 Operating lease liabilities 11,724 Total operating lease liabilities 13,570 Weighted average remaining lease term 4 years Weighted average discount rate 4.29 At March 31, 2019, maturities of the lease liabilities were as follows. (Dollars in thousands) 2019 (excluding the three months ended March 31, 2019) $ 1,772 2020 2,380 2021 2,278 2022 2,216 2023 2,136 Thereafter 6,048 Total lease payments 16,830 Less imputed interest 3,260 Total operating lease liabilities $ 13,570 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) INCOME TAXES The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C of the Internal Revenue Code, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries, in which it holds 80% or more of the outstanding equity interest measured by both vote and fair value. The following table sets forth the significant components of our deferred and other tax assets and liabilities as of March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, 2019 December 31, Goodwill and other intangibles $ (44,922 ) $ (45,272 ) Provision for loan losses 21,592 25,790 Net operating loss carryforwards (1) 17,296 11,132 Accrued expenses, compensation, and other assets 1,098 1,844 Unrealized gains on other investments (3,659 ) (2,024 ) Total deferred tax liability (8,595 ) (8,530 ) Valuation allowance (124 ) (255 ) Deferred tax liability, net (8,719 ) (8,785 ) Taxes receivable 1,682 1,812 Net deferred and other tax liabilities $ (7,037 ) $ (6,973 ) (1) As of March 31, 2019, the Company and its subsidiaries had an estimated $67,837 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $17,172 as of the balance sheet date. The components of our tax benefit for the three months ended March 31, 2019 and 2018 were as follows. Three Months Ended (Dollars in thousands) 2019 2018 Current Federal $ (869 ) $ 5,895 State (823 ) 1,182 Deferred Federal 610 (3,891 ) State 1,338 (2,546 ) Net (provision) benefit for income taxes $ 256 $ 640 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 months ended March 31, 2019 and 2018. Three Months Ended (Dollars in thousands) 2019 2018 Statutory Federal income tax (provision) benefit at 21% ($ 379 ) $ 3,258 State and local income taxes, net of federal income tax benefit (107 ) 504 Appreciation of Medallion Bank — (1,974 ) Change in state income tax accruals 686 — Change in effective state income tax rate — (1,358 ) Other 56 210 Total income tax benefit $ 256 $ 640 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 determined the necessary valuation allowance as of March 31, 2019. 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 2015 to 2017. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Restricted Stock | (10) STOCK OPTIONS AND RESTRICTED STOCK 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 and non-employee The Company had 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 shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan was administered by the Compensation Committee of the Board of Directors. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. The term and vesting periods of the options were determined by the Compensation Committee, provided that the maximum term of an option could not exceed a period of ten years. The Company’s Board of Directors approved the 2015 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 provided 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 were issuable under the 2015 Restricted Stock Plan, and 241,919 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 would grant options to purchase 9,000 shares of the Company’s common stock to an Eligible Director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options could not exceed ten years. Additional shares are only available for future issuance under the 2018 Plan. At March 31, 2019, 501,043 options on the Company’s common stock were outstanding under the Company’s plans, of which 63,889 options were exercisable, and there were 250,482 unvested shares of the Company’s common stock outstanding under the Company’s restricted stock plans. The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $2.98 per share for the three months ended March 31, 2019, and there were no options granted during the three months ended March 31, 2018. The following assumption categories are used to determine the value of any option grants. Three Months Ended March 31, 2019 2018 Risk free interest rate 2.39 % NA Expected dividend yield 0.79 NA Expected life of option in years (1) 6.25 NA Expected volatility (2) 48.45 NA (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 three months ended March 31, 2019 and December 31, 2018. Number of Options Exercise Weighted Outstanding at December 31, 2017 320,626 $ 2.14-13.84 $ 8.78 Granted 39,000 5.27-5.58 5.46 Cancelled (214,960 ) 9.22-9.24 9.22 Exercised (1) — — — Outstanding at December 31, 2018 144,666 2.06-13.84 7.23 Granted 374,377 5.21-6.55 6.48 Cancelled (18,000 ) 7.49-9.38 8.44 Exercised (1) — — — Outstanding at March 31, 2019 (2) 501,043 $ 2.14-13.84 $ 6.63 Options exercisable at March 31, 2019 (2) 63,889 $ 2.14-13.84 $ 9.48 (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 2019 and 2018 first quarters. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2019 and the related exercise price of the underlying options, was $348,000 for outstanding options and $45,000 for exercisable options as of March 31, 2019. The remaining contractual life was 9.27 years for outstanding options and 5.64 years for exercisable options at March 31, 2019. The following table presents the activity for the restricted stock programs for the three months ended March 31, 2019 and December 31, 2018. Number of Shares Exercise Weighted Outstanding at December 31, 2017 408,582 $ 2.06-10.38 $ 3.45 Granted 101,010 3.93-5.27 4.41 Cancelled (9,737 ) 3.93-9.08 4.66 Vested (1) (308,940 ) 2.06-10.38 3.35 Outstanding at December 31, 2018 190,915 2.14-5.27 4.06 Granted 163,098 6.55 6.55 Cancelled (1,699 ) 3.93-3.95 3.94 Vested (1) (101,832 ) 3.93-4.39 4.07 Outstanding at March 31, 2019 (2) 250,482 $ 2.14-6.55 $ 5.68 (1) The aggregate fair value of the restricted stock vested was $623,000 and $1,209,000 for the three months ended March 31, 2019 and 2018. (2) The aggregate fair value of the restricted stock was $1,728,000 as of March 31, 2019. The remaining vesting period was 3.02 years at March 31, 2019. The following table presents the activity for the unvested options outstanding under the plans for the 2019 first quarter. Number of Exercise Price Weighted Average Outstanding at December 31, 2018 62,777 $ 2.14-7.10 $ 4.59 Granted 374,377 5.21-6.55 6.48 Cancelled — — — Vested — — — Outstanding at March 31, 2019 437,154 $ 2.14-7.10 $ 6.21 The intrinsic value of the options vested was $0 for the three months ended March 31, 2019. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | (11) 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%, 10%, and 10% of loans outstanding and with no other states over 10% as of March 31, 2019. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 62%, 19%, and 10% of the portfolio. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, solar panels, and windows, at 29%, 16%, 15%, and 11% of total loans outstanding, respectively, and with no other product lines over 10% as of March 31, 2019. The commercial lending segment focuses on enterprise wide industries, including manufacturing, retail trade, information, recreation and various other industries, in which 52% 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 87% were in New York City as of March 31, 2019. In addition, our non-operating The following table presents segment data at March 31, 2019 and for the three months then ended. Consumer Lending Commercial Medallion RPAC Corp. Consolidated (Dollars in thousands) Recreation Home Total interest income $ 22,479 $ 4,325 $ 1,967 $ 841 $ — $ 431 $ 30,043 Total interest expense 2,774 906 961 1,909 36 1,136 7,722 Net interest income (loss) 19,705 3,419 1,006 (1,068 ) (36 ) (705 ) 22,321 Provision for loan losses 7,005 549 455 5,334 — — 13,343 Net interest income (loss) after loss provision 12,700 2,870 551 (6,402 ) (36 ) (705 ) 8,978 Sponsorship and race winnings — — — — 3,179 — 3,179 Race team related expenses — — — — (1,998 ) — (1,998 ) Other income (expense) (5,382 ) (1,637 ) (253 ) 1,214 (1,797 ) (1,165 ) (9,020 ) Net income (loss) before taxes 7,318 1,233 298 (5,188 ) (652 ) (1,870 ) 1,139 Income tax benefit (provision) (1,895 ) (319 ) (72 ) 1,251 157 1,134 256 Net income (loss) after tax $ 5,423 $ 914 $ 226 ($ 3,937 ) ($ 495 ) ($ 736 ) $ 1,395 Balance Sheet Data Total loans net $ 601,067 $ 191,089 $ 54,756 $ 140,426 $ — $ — $ 987,338 Total assets 611,702 199,999 86,906 254,714 30,952 244,455 1,428,728 Total funds borrowed 487,165 159,251 78,060 202,255 7,681 164,304 1,098,716 Selected Financial Ratios Return on assets 3.66 % 2.38 % 1.03 % (6.05 %) (6.60 %) (1.32 %) 0.36 % Return on equity 13.83 9.53 5.16 (30.23 ) (65.48 ) (4.70 ) 1.72 Interest yield 15.50 9.42 13.56 2.33 N/A N/A 11.52 Net interest margin 13.58 7.45 6.93 (2.96 ) N/A N/A 8.56 Reserve coverage 1.46 1.13 0.82 15.26 N/A N/A 3.60 Delinquency ratio 0.56 0.08 1.29 2.47 N/A N/A 0.81 Charge-off 3.40 0.35 0.00 21.59 N/A N/A 5.33 |
Other Operating Expenses
Other Operating Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses | (12) OTHER OPERATING EXPENSES (Investment Company Accounting) The major components of other operating expenses were as follows: (Dollars in thousands) For the Three Directors’ fees $ 89 Miscellaneous taxes 120 Computer expenses 74 Depreciation and amortization 23 Other expenses 161 Total other operating expenses $ 467 |
Selected Financial Ratios and O
Selected Financial Ratios and Other Data | 3 Months Ended |
Mar. 31, 2019 | |
Investment Company [Abstract] | |
Selected Financial Ratios and Other Data | (13) 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 under Investment Company Accounting. (Dollars in thousands, except per share data) Three Months Net share data Net asset value at the beginning of the period $ 11.80 Net investment loss (0.15 ) Income tax benefit 0.03 Net realized losses on investments (1.44 ) Net change in unrealized appreciation on investments 0.94 Net decrease in net assets resulting from operations (0.62 ) Issuance of common stock (0.03 ) Repurchase of common stock — Net investment income — Return of capital — Net realized gains on investments — Total distributions — Total decrease in net asset value (0.65 ) Net asset value at the end of the period (1) $ 11.15 Per share market value at beginning of period $ 3.53 Per share market value at end of period 4.65 Total return (2) (129 %) Ratios/supplemental data Total shareholders’ equity (net assets) $ 272,437 Average net assets $ 284,021 Total expense ratio (3) (4) 10.02 % Operating expenses to average net assets (4) 5.87 Net investment loss after income taxes to average net assets (4) (4.61 %) (1) Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018. (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 operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) COMMITMENTS AND CONTINGENCIES (A) EMPLOYMENT AGREEMENTS The Company has employment agreements with certain key officers for either a two- or a two-year term new two-year terms current one-year term. Employment agreements expire at various dates through 2023 with no material changes since December 31, 2018. Accordingly, the future minimum payments under these agreements were approximately $4,500,000. (B) OTHER COMMITMENTS The Company had no commitments outstanding at March 31, 2019. Generally, commitments are on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company has commitments for leased premises that expire at various dates through April 30, 2027. At March 31, 2019, minimal rental commitments for non-cancelable (C) LITIGATION The Company and its subsidiaries become defendants to various legal proceedings arising from the normal course of business. In the opinion of management, based on the advice of legal counsel, there is no proceeding pending, or to the knowledge of management threatened, which in the event of an adverse decision could result in a material adverse impact on the financial condition or results of operations of the Company. (D) REGULATORY In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of Freshstart’s transfer to liquidation status and the restructure of the Freshstart loan described in Note 7. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) 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 $171,000 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 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 Mr. Petty of $7,181,000 that earns interest at an annual rate of 2% as of March 31, 2019. The Company and MSC serviced $308,346,000 of loans for Medallion Bank at March 31, 2018. 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, $1,290,000 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. (Dollars in thousands) Three Months Reimbursement of operating expenses $ 250 Loan origination and servicing fees 6 Total other income $ 256 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. Additionally, the Company recognized $10,000 of interest income not eliminated for the three months ended March 31, 2018 with respect to this loan. The Company and MCI have loans to RPAC, an affiliate of Medallion Motorsports LLC, which have been eliminated in consolidation for the three months ended as of March 31, 2019. 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 with respect to these loans. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (16) 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 March 31, 2019 December 31, 2018 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and federal funds sold (1) $ 86,121 $ 86,121 $ 57,713 $ 57,713 Equity investments 8,699 8,699 9,197 9,197 Investment securities 44,682 44,682 45,324 45,324 Loans receivable 987,338 987,338 981,487 981,487 Accrued interest receivable (2) 7,108 7,108 7,413 7,413 Financial liabilities Funds borrowed (3) 1,098,716 1,100,397 1,062,028 1,062,297 Accrued interest payable (2) 3,131 3,131 3,852 3,852 (1) Categorized as level 1 within the fair value hierarchy. See Note 16. (2) Categorized as level 3 within the fair value hierarchy. See Note 16. (3) As of March 31, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,681 and $269. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and liabilities | (17) 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 paragraph describes the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis under Bank Holding Company Accounting (applicable as of June 30, 2018 and for the quarter then ended) and shows the table under Investment Company Accounting (applicable to prior periods). 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 March 31, 2019 and December 31, 2018. March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 8,699 $ 8,699 Available for sale investment securities (1) — 44,682 — 44,682 Total $ — $ 44,682 $ 8,699 $ 53,381 (1) Total unrealized income of $669, net of tax, was included in accumulated other comprehensive income (loss) for the three months ended March 31, 2019 related to these assets. December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,197 $ 9,197 Available for sale investment securities (1) — 45,324 — 45,324 Total $ — $ 45,324 $ 9,197 $ 54,521 (1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets. The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the quarter ended March 31, 2019, under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Equity December 31, 2018 $ 9,197 Gains included in earnings 598 Purchases, investments, and issuances 50 Sales, maturities, settlements, and distributions (1,146 ) March 31, 2019 $ 8,699 Amounts related to held assets (1) $ 196 (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2019. (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. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 21,549 $ 21,549 Loan collateral in process of foreclosure — — 49,808 49,808 Total $ — $ — $ 71,357 $ 71,357 December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 34,877 $ 34,877 Loan collateral in process of foreclosure — — 49,495 49,495 Total $ — $ — $ 84,372 $ 84,372 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 March 31, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity Investments 5,488 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,756 Investee book value adjusted for market appreciation Financial condition and operating performance of the investee N/A Precedent arm’s length offer Business enterprise value $ 6,014 – $7,214 Business enterprise value/revenue multiples 0.96x – 4.44x 1,455 Precedent market transaction Offering price $ 8.73 / share Equity investments $ 5,683 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,850 Investee book value adjusted for market appreciation Financial condition and operating performance of the investee N/A Precedent arm’s length offer Business enterprise value $ 6,014 – $7,214 Business enterprise value/revenue multiples 0.96x – 4.54x 1,455 Precedent market transaction Offering price $ 8.73 / share 209 Investee book value Valuation indicated by investee filings N/A |
Small Business Lending Fund Pro
Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) | (18) 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 | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | (19) VARIABLE INTEREST ENTITIES During the 2018 third quarter, the Company determined that Trust III was 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 was its primary beneficiary until October 31, 2018. 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. 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 had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (20) SUBSEQUENT EVENTS On April 30, 2019, a demand note with a maturity date of April 30, 2019 was extended to December 15, 2020, or the earliest date prior to December 15, 2020, to which the term of any Company note payable to banks has been extended. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Change to Bank Holding Company Accounting | Change to Bank Holding Company Accounting Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (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 loans in process of foreclosure, goodwill and intangible assets, and investments, among other effects. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of 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 that were not previously consolidated with the Company prior to the three months ended June 30, 2018, were now consolidated effective April 2, 2018. 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 |
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. Cash includes $2,475,000 of an interest reserve associated with the private placement of debt in March 2019, which cannot be used for any other purpose until March 2022. |
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 16 and 17 to the consolidated financial statements. |
Equity Investments | Equity Investments Equity investments of $8,699,000 and $9,197,000 at March 31, 2019 and December 31, 2018, comprised mainly of nonmarketable stock and stock 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. |
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 |
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 adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the 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 March 31, 2019 and December 31, 2018, net loan origination costs were $15,086,000 and $14,416,000. 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 March 31, 2019 and 2018 was $1,151,000 and ($13,000) ($852,000 when combined with Medallion Bank). 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 charged-off charged-off. charged-off 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 $34,732,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at March 31, 2019 and December 31, 2018. The Company accounts 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 $135,807,000 at March 31, 2019 and $140,180,000 at December 31, 2018. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and determined that no material servicing asset or liability existed as of March 31, 2019 and December 31, 2018. The Company assigned its servicing rights of 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, nonperforming 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 $6,173,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance. |
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. 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 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. As of March 31, 2019 and December 31, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $53,620,000 and $53,982,000, respectively, and the Company recognized $361,000 of amortization expense on the intangible assets for the three months ended March 31, 2019. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $7,956,000 and $9,048,000 were outstanding at March 31, 2019 and December 31, 2018, and of which $1,092,000 was amortized to interest income for the three months ended March 31, 2019. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on Medallion Bank and impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter. The table below shows the details of the intangible assets as of the periods presented. (Dollars in thousands) March 31, 2019 December 31, 2018 Brand- related intellectual property $ 20,900 $ 21,176 Home improvement contractor relationships 6,555 6,641 Race organization 26,165 26,165 Total intangible assets $ 53,620 $ 53,982 |
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 $100,000 and $23,000 ($67,000 had Medallion Bank been consolidated) for the quarters ended March 31, 2019 and 2018. |
Deferred Costs | Deferred Costs Deferred financing costs, included in other assets, represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $520,000 and $223,000 ($528,000 had Medallion Bank been consolidated) for the quarters ended March 31, 2019 and 2018. 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 all of these purposes was $4,411,000, $4,461,000, and $2,862,000 ($4,884,000 had Medallion Bank been consolidated) as of March 31, 2019, December 31, 2018, and March 31, 2018. |
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. |
Sponsorship and Race Winnings | Sponsorship and Race Winnings The Company accounts for the sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized based upon the contract terms of the sponsorship contract. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver. |
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 March 31, (Dollars in thousands, except per share data) 2019 2018 Net income/ net decrease in net assets resulting from operations available to common shareholders $ 1,228 $ (14,874 ) Weighted average common shares outstanding applicable to basic EPS 24,288,263 24,154,879 Effect of dilutive stock options 17,423 — Effect of restricted stock grants 311,204 — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,616,890 24,154,879 Basic earnings (loss) per share $ 0.05 $ (0.62 ) Diluted earnings (loss) per share 0.05 (0.62 ) Potentially dilutive common shares excluded from the above calculations aggregated 471,000 and 290,960 shares as of March 31, 2019 and 2018. |
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 are reflected in net increase in net income/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/net increase 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 three months ended March 31, 2019 and 2018, the Company issued 163,098 and 97,952 of restricted shares of stock-based compensation awards, and 374,377 and 0 shares of stock options, and recognized $165,000 and $152,000, or $0.01 and $0.01 per share for each period, of non-cash |
Regulatory Capital | Regulatory Capital Medallion Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet 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%, which would preclude their ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of March 31, 2019, the Bank’s Tier 1 leverage ratio was 16.56%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well-capitalized March 31, 2019 December 31, 2018 Common equity Tier 1 capital — — $ 143,409 $ 141,608 Tier 1 capital — — 169,712 167,911 Total capital — — 182,858 180,917 Average assets — — 1,025,114 1,059,461 Risk-weighted assets — — 1,005,656 993,374 Leverage ratio (1) 4.0 % 5.0 % 16.6 % 15.8 % Common equity Tier 1 capital ratio (2) 7.0 6.5 14.3 14.3 Tier 1 capital ratio (3) 8.5 8.0 16.9 16.9 Total capital ratio (3) 10.5 10.0 18.2 18.2 (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 increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, as of January 1, 2019, the Bank is 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%. Since the FDIC’s new capital rule has been fully phased in, the minimum capital requirements plus the capital conservation buffer exceed the Prompt Corrective Action well-capitalized thresholds. |
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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Intangible Assets | The table below shows the details of the intangible assets as of the periods presented. (Dollars in thousands) March 31, 2019 December 31, 2018 Brand- related intellectual property $ 20,900 $ 21,176 Home improvement contractor relationships 6,555 6,641 Race organization 26,165 26,165 Total intangible assets $ 53,620 $ 53,982 |
Summary of the Calculation of Basic and Diluted EPS | The table below shows the calculation of basic and diluted EPS. Three Months Ended March 31, (Dollars in thousands, except per share data) 2019 2018 Net income/ net decrease in net assets resulting from operations available to common shareholders $ 1,228 $ (14,874 ) Weighted average common shares outstanding applicable to basic EPS 24,288,263 24,154,879 Effect of dilutive stock options 17,423 — Effect of restricted stock grants 311,204 — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,616,890 24,154,879 Basic earnings (loss) per share $ 0.05 $ (0.62 ) Diluted earnings (loss) per share 0.05 (0.62 ) |
Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios | The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well-capitalized March 31, 2019 December 31, 2018 Common equity Tier 1 capital — — $ 143,409 $ 141,608 Tier 1 capital — — 169,712 167,911 Total capital — — 182,858 180,917 Average assets — — 1,025,114 1,059,461 Risk-weighted assets — — 1,005,656 993,374 Leverage ratio (1) 4.0 % 5.0 % 16.6 % 15.8 % Common equity Tier 1 capital ratio (2) 7.0 6.5 14.3 14.3 Tier 1 capital ratio (3) 8.5 8.0 16.9 16.9 Total capital ratio (3) 10.5 10.0 18.2 18.2 (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 (Bank H_2
Investment Securities (Bank Holding Company Accounting) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | Fixed maturity securities available for sale as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 (Dollars in thousands) Amortized Cost Gross Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 31,710 $ 154 $ (239 ) $ 31,625 State and municipalities 13,155 130 (228 ) 13,057 Total $ 44,865 $ 284 $ (467 ) $ 44,682 December 31, 2018 (Dollars in thousands) Amortized Cost Gross Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 32,184 $ 15 $ (742 ) $ 31,457 State and municipalities 14,239 35 (407 ) 13,867 Total $ 46,423 $ 50 $ (1,149 ) $ 45,324 |
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 March 31, 2019 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 Cost Fair Value Due in one year or less $ 20 $ 20 Due after one year through five years 8,936 8,870 Due after five years through ten years 12,366 12,330 Due after ten years 23,543 23,462 Total $ 44,865 $ 44,682 |
Summary of Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses at March 31, 2019 and December 31, 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 March 31, 2019 (Dollars in thousands) Gross Unrealized Fair Value Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ — $ — $ (239 ) $ 19,106 State and municipalities (50 ) 2,950 (178 ) 7,683 Total $ (50 ) $ 2,950 $ (417 ) $ 26,789 Less than Twelve Months Twelve Months and Over December 31, 2018 (Dollars in thousands) Gross Unrealized Fair Value Gross Unrealized Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (54 ) $ 4,616 $ (688 ) $ 24,871 State and municipalities (78 ) 5,429 (329 ) 6,259 Total $ (132 ) $ 10,045 $ (1,017 ) $ 31,130 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Summary of Inclusive Capitalized Loans | The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at March 31, 2019 and December 31, 2018. As of March 31, 2019 As of December 31, 2018 (Dollars in thousands) Amount As a Percent of Amount As a Percent of Recreation $ 609,999 60 % $ 587,038 58 % Home improvement 193,275 19 183,155 18 Commercial 55,211 5 64,083 6 Medallion 165,715 16 183,606 18 Total gross loans 1,024,200 100 % 1,017,882 100 % Allowance for loan losses (36,862 ) (36,395 ) Total net loans $ 987,338 $ 981,487 |
Schedule of Activity of Gross Loans | The following table shows the activity of the gross loans for the three months ended March 31, 2019. (Dollars in thousands) Recreation Home Improvement Commercial Medallions Total Gross loans- December 31, 2018 $ 587,038 $ 183,155 $ 64,083 $ 183,606 $ 1,017,882 Loan originations 65,757 26,296 442 — 92,495 Principal payments (33,373 ) (15,849 ) (9,344 ) (3,438 ) (62,004 ) Charge-offs (4,929 ) (159 ) — (7,788 ) (12,876 ) Transfer to loans in process of foreclosure, net (3,391 ) — — (5,705 ) (9,096 ) Other (1,103 ) (168 ) 30 (960 ) (2,201 ) Gross loans- March 31, 2019 $ 609,999 $ 193,275 $ 55,211 $ 165,715 $ 1,024,200 |
Summary of Activity in Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the three months ended March 31, 2019. (Dollars in thousands) Three Months Ended Allowance for loan losses – beginning balance $ 36,395 Charge-offs Recreation (6,525 ) Home improvement (549 ) Commercial — Medallion (8,788 ) Total charge-offs (15,862 ) Recoveries Recreation 1,596 Home improvement 390 Commercial — Medallion 1,000 Total recoveries 2,986 Net charge-offs (12,876 ) (1) Provision for loan losses 13,343 Allowance for loan losses – ending balance (2) $ 36,862 (1) As of March 31, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $228,508, representing collection opportunities for the Company. (2) Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve on loans at the bank which existed prior to April 2, 2018, which was netted against loan balances at consolidation on April 2, 2018. |
Summary of Composition of Allowance for Loan Losses by Type of Loan | The following tables set forth the composition of the allowance for loan losses by type as of March 31, 2019 and December 31, 2018. March 31, 2019 (Dollars in thousands) Amount Percentage of Allowance as a Recreation $ 8,932 24 % 1.46 % Home Improvement 2,186 6 1.13 Commercial 455 1 0.82 Medallion 25,289 69 15.26 Total $ 36,862 100 % 3.60 % December 31, 2018 (Dollars in thousands) Amount Percentage of Allowance as a Recreation $ 6,856 19 % 1.17 % Home Improvement 1,796 5 0.98 Commercial — — 0.00 Medallion 27,743 76 15.11 Total $ 36,395 100 % 3.58 % |
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 (Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2018 (1) Total nonaccrual loans $ 21,549 $ 34,877 $ 77,998 Interest foregone quarter to date 403 487 1,642 Amount of foregone interest applied to principal in the quarter 115 166 792 Interest foregone life to date 1,634 1,952 14,127 Amount of foregone interest applied to principal life to date 819 1,214 4,287 Percentage of nonaccrual loans to gross loan portfolio 2 % 3 % 28 % (1) Does not include Medallion Bank nonaccrual loans of $35,920, interest income foregone for the quarter of $213 and foregone interest paid and applied to principal for the quarter of $153, interest income foregone life-to-date life-to-date |
Summary of Performance Status of Loan | The following tables present the performance status of loans as of March 31, 2019 and December 31, 2018. March 31, 2019 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 604,862 $ 5,137 $ 609,999 0.84 % Home improvement 193,117 158 193,275 0.08 Commercial 50,946 4,265 55,211 7.72 Medallion 153,726 11,989 165,715 7.23 Total $ 1,002,651 $ 21,549 $ 1,024,200 2.10 % December 31, 2018 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 581,250 $ 5,788 $ 587,038 0.99 % Home improvement 183,018 137 183,155 0.07 Commercial 60,249 3,834 64,083 5.98 Medallion 158,488 25,118 183,606 13.68 Total $ 983,005 $ 34,877 $ 1,017,882 3.43 % |
Summary of Attributes of Nonperforming Loan Portfolio | The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2019 and December 31, 2018, all of which had an allowance recorded against the principal balance. March 31, 2019 Three Months Ended March 31, 2019 (Dollars in thousands) Recorded Unpaid Related Average Recorded Interest Income With an allowance recorded Recreation $ 5,137 $ 5,137 $ 183 $ 5,173 $ 132 Home improvement 158 158 3 158 — Commercial 4,265 4,360 455 4,233 — Medallion 11,989 12,712 19,116 16,307 54 Total nonperforming loans with an allowance $ 21,549 $ 22,367 $ 19,757 $ 25,871 $ 186 December 31, 2018 (Dollars in thousands) Recorded Unpaid Related With an allowance recorded Recreation $ 5,788 $ 5,788 $ 204 Home improvement 137 137 3 Commercial 3,834 3,929 — Medallion 25,118 26,237 22,035 Total with allowance $ 34,877 $ 36,091 $ 22,242 Total nonperforming loans $ 34,877 $ 36,091 $ 22,242 The following table provides additional information on attributes of the nonperforming loan portfolio as of March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Recorded (1) (2) Unpaid Principal Average Recorded March 31, 2018 Medallion (3) $ 59,394 $ 62,519 $ 142,364 Commercial (3) 18,604 20,880 19,151 (1) As of March 31, 2018, $24,256 of unrealized depreciation was recorded as a valuation allowance on these loans. (2) Interest income of $85 was recognized on loans for the three months ended March 31, 2018. (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 March 31, 2019 and December 31, 2018: Days Past Due Recorded March 31, 2019 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recreation $ 13,186 $ 4,019 $ 3,282 $ 20,487 $ 569,065 $ 589,552 $ — Home improvement 436 183 156 775 195,120 195,895 — Commercial — — 710 710 54,501 55,211 — Medallion 47,655 3,309 3,954 54,918 104,939 159,857 — Total $ 61,277 $ 7,511 $ 8,102 $ 76,890 $ 923,625 $ 1,000,515 $ — (1) Excludes loan premiums of $7,956 resulting from purchase price accounting and $15,729 of capitalized loan origination costs. Days Past Due Recorded December 31, 2018 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recreation $ 18,483 $ 5,655 $ 4,020 $ 28,158 $ 539,051 $ 567,209 $ — Home improvement 715 283 135 1,133 184,528 185,661 — Commercial — 454 279 733 63,350 64,083 — Medallion 8,689 3,652 15,720 28,061 148,774 176,835 — Total $ 27,887 $ 10,044 $ 20,154 $ 58,085 $ 935,703 $ 993,788 $ — (1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. |
Summary of Troubled Debt Restructurings | The following table shows the troubled debt restructurings which the Company entered into during the three months ended March 31, 2019 under Bank Holding Company Accounting. (Dollars in thousands) Number of Loans Pre- Post- Medallion loans 7 $ 2,895 $ 2,895 |
Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans | The following table shows the activity of the loans in process of foreclosure, which relates only to the recreation and medallion loans, for the three months ended March 31, 2019. (Dollars in thousands) Recreation Medallion Total Loans in process of foreclosure – December 31, 2018 $ 1,503 $ 47,992 $ 49,495 Transfer from loans, net 3,391 5,705 9,096 Sales (2,076 ) (377 ) (2,453 ) Cash payments received — (2,573 ) (2,573 ) Collateral valuation adjustments (1,638 ) (2,119 ) (3,757 ) Loans in process of foreclosure – March 31, 2019 $ 1,180 $ 48,628 $ 49,808 |
Unrealized Appreciation (Depr_2
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Investments [Abstract] | |
Schedule of Unrealized Appreciation (Depreciation) on Investments | (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 |
Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio | (Dollars in thousands) Three Months March 31, 2018 Net change in unrealized appreciation (depreciation) on investments Unrealized appreciation ($ 998 ) Unrealized depreciation (38,152 ) Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries 29,115 Realized gains — Realized losses 34,747 Net unrealized losses on investments other than securities and other assets (1,915 ) Total $ 22,797 Net realized gains (losses) on investments Realized gains $ — Realized losses (34,747 ) Direct recoveries 2 Total ($ 34,745 ) |
Investments in Medallion Bank_2
Investments in Medallion Bank and Other Controlled Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries under Investment Company Accounting | 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 months ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Three Months Statement of comprehensive income Investment income $ 26,880 Interest expense 3,615 Net interest income 23,265 (Dollars in thousands) Three Months Noninterest income 19 Operating expenses 7,158 Net investment income before income taxes 16,126 Income tax benefit 3,321 Net investment income after income taxes 19,447 Net realized/unrealized losses of Medallion Bank (28,539 ) Net decrease in net assets resulting from operations of Medallion Bank (9,092 ) Unrealized appreciation on Medallion Bank (1) 39,092 Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank (885 ) Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries $ 29,115 (1) Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank. |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, March 31, December 31, Interest (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter 2019 2018 Rate (1) Deposits $ 286,501 $ 193,929 $ 192,309 $ 128,236 $ 63,156 $ — $ 864,131 $ 848,040 2.24 % SBA debentures and borrowings 28,380 8,500 — 5,000 2,500 35,000 79,380 80,099 3.40 % Retail and privately placed notes — — 33,625 — 30,000 — 63,625 33,625 8.65 % Notes payable to banks 45,811 4,318 280 280 210 — 50,899 59,615 4.70 % Preferred securities — — — — — 33,000 33,000 33,000 4.73 % Other borrowings 7,681 — — — — — 7,681 7,649 2.00 % Total $ 368,373 $ 206,747 $ 226,214 $ 133,516 $ 95,866 $ 68,000 $ 1,098,716 $ 1,062,028 2.89 % (1) Weighted average contractual rate as of March 31, 2019. |
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) March 31, 2019 Three months or less $ 110,012 Over three months through six months 108,138 Over six months through one year 68,351 Over one year 577,630 Total deposits $ 864,131 |
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 March 31, 2019. (Dollars in thousands) Borrower # of Lenders/ Note Maturity Type Note Balance Monthly Payment Average Interest Interest Rate (1) The Company 6/6 4/11 - 8/14 4/19 - 9/20 Term loans (2) $ 37,741 (2) $ 37,741 Interest (3) 5.10 % Various (3) Medallion Chicago 2/23 11/11 - 12/11 6/19 Term loans (4) 18,449 11,828 $134 of 3.50 % N/A Medallion Funding 1/1 11/18 12/23 1,330 1,330 $70 4.00 % N/A $ 57,520 $ 50,899 (1) At March 31, 2019, 30 day LIBOR was 2.49%, 360 day LIBOR was 2.71%, and the prime rate was 5.50%. (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 3.75%, one note has an interest rate of LIBOR plus 3.75%, 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 $12 to $75. (4) Guaranteed by the Company. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs and Additional Information | The following table presents the operating lease costs and additional information for the three months ended March 31, 2019. (Dollars in thousands) March 31, 2019 Operating lease costs $ 531 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 587 Right-of-use (16 ) |
Schedule of Breakout of Operating leases | The following table presents the breakout of the operating leases as of March 31, 2019. (Dollars in thousands) March 31, 2019 Operating lease right-of-use $ 12,165 Other current liabilities 1,846 Operating lease liabilities 11,724 Total operating lease liabilities 13,570 Weighted average remaining lease term 4 years Weighted average discount rate 4.29 |
Schedule of Maturities of the Lease Liabilities | At March 31, 2019, maturities of the lease liabilities were as follows. (Dollars in thousands) 2019 (excluding the three months ended March 31, 2019) $ 1,772 2020 2,380 2021 2,278 2022 2,216 2023 2,136 Thereafter 6,048 Total lease payments 16,830 Less imputed interest 3,260 Total operating lease liabilities $ 13,570 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, 2019 December 31, Goodwill and other intangibles $ (44,922 ) $ (45,272 ) Provision for loan losses 21,592 25,790 Net operating loss carryforwards (1) 17,296 11,132 Accrued expenses, compensation, and other assets 1,098 1,844 Unrealized gains on other investments (3,659 ) (2,024 ) Total deferred tax liability (8,595 ) (8,530 ) Valuation allowance (124 ) (255 ) Deferred tax liability, net (8,719 ) (8,785 ) Taxes receivable 1,682 1,812 Net deferred and other tax liabilities $ (7,037 ) $ (6,973 ) (1) As of March 31, 2019, the Company and its subsidiaries had an estimated $67,837 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $17,172 as of the balance sheet date. |
Schedule of Components of Tax Provision (Benefit) | The components of our tax benefit for the three months ended March 31, 2019 and 2018 were as follows. Three Months Ended (Dollars in thousands) 2019 2018 Current Federal $ (869 ) $ 5,895 State (823 ) 1,182 Deferred Federal 610 (3,891 ) State 1,338 (2,546 ) Net (provision) benefit for income taxes $ 256 $ 640 |
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 months ended March 31, 2019 and 2018. Three Months Ended (Dollars in thousands) 2019 2018 Statutory Federal income tax (provision) benefit at 21% ($ 379 ) $ 3,258 State and local income taxes, net of federal income tax benefit (107 ) 504 Appreciation of Medallion Bank — (1,974 ) Change in state income tax accruals 686 — Change in effective state income tax rate — (1,358 ) Other 56 210 Total income tax benefit $ 256 $ 640 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. Three Months Ended March 31, 2019 2018 Risk free interest rate 2.39 % NA Expected dividend yield 0.79 NA Expected life of option in years (1) 6.25 NA Expected volatility (2) 48.45 NA (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 three months ended March 31, 2019 and December 31, 2018. Number of Options Exercise Weighted Outstanding at December 31, 2017 320,626 $ 2.14-13.84 $ 8.78 Granted 39,000 5.27-5.58 5.46 Cancelled (214,960 ) 9.22-9.24 9.22 Exercised (1) — — — Outstanding at December 31, 2018 144,666 2.06-13.84 7.23 Granted 374,377 5.21-6.55 6.48 Cancelled (18,000 ) 7.49-9.38 8.44 Exercised (1) — — — Outstanding at March 31, 2019 (2) 501,043 $ 2.14-13.84 $ 6.63 Options exercisable at March 31, 2019 (2) 63,889 $ 2.14-13.84 $ 9.48 (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 2019 and 2018 first quarters. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2019 and the related exercise price of the underlying options, was $348,000 for outstanding options and $45,000 for exercisable options as of March 31, 2019. The remaining contractual life was 9.27 years for outstanding options and 5.64 years for exercisable options at March 31, 2019. |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the three months ended March 31, 2019 and December 31, 2018. Number of Shares Exercise Weighted Outstanding at December 31, 2017 408,582 $ 2.06-10.38 $ 3.45 Granted 101,010 3.93-5.27 4.41 Cancelled (9,737 ) 3.93-9.08 4.66 Vested (1) (308,940 ) 2.06-10.38 3.35 Outstanding at December 31, 2018 190,915 2.14-5.27 4.06 Granted 163,098 6.55 6.55 Cancelled (1,699 ) 3.93-3.95 3.94 Vested (1) (101,832 ) 3.93-4.39 4.07 Outstanding at March 31, 2019 (2) 250,482 $ 2.14-6.55 $ 5.68 (1) The aggregate fair value of the restricted stock vested was $623,000 and $1,209,000 for the three months ended March 31, 2019 and 2018. (2) The aggregate fair value of the restricted stock was $1,728,000 as of March 31, 2019. The remaining vesting period was 3.02 years at March 31, 2019. |
Summary of Activity for Unvested Options Outstanding | The following table presents the activity for the unvested options outstanding under the plans for the 2019 first quarter. Number of Exercise Price Weighted Average Outstanding at December 31, 2018 62,777 $ 2.14-7.10 $ 4.59 Granted 374,377 5.21-6.55 6.48 Cancelled — — — Vested — — — Outstanding at March 31, 2019 437,154 $ 2.14-7.10 $ 6.21 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following table presents segment data at March 31, 2019 and for the three months then ended. Consumer Lending Commercial Medallion RPAC Corp. Consolidated (Dollars in thousands) Recreation Home Total interest income $ 22,479 $ 4,325 $ 1,967 $ 841 $ — $ 431 $ 30,043 Total interest expense 2,774 906 961 1,909 36 1,136 7,722 Net interest income (loss) 19,705 3,419 1,006 (1,068 ) (36 ) (705 ) 22,321 Provision for loan losses 7,005 549 455 5,334 — — 13,343 Net interest income (loss) after loss provision 12,700 2,870 551 (6,402 ) (36 ) (705 ) 8,978 Sponsorship and race winnings — — — — 3,179 — 3,179 Race team related expenses — — — — (1,998 ) — (1,998 ) Other income (expense) (5,382 ) (1,637 ) (253 ) 1,214 (1,797 ) (1,165 ) (9,020 ) Net income (loss) before taxes 7,318 1,233 298 (5,188 ) (652 ) (1,870 ) 1,139 Income tax benefit (provision) (1,895 ) (319 ) (72 ) 1,251 157 1,134 256 Net income (loss) after tax $ 5,423 $ 914 $ 226 ($ 3,937 ) ($ 495 ) ($ 736 ) $ 1,395 Balance Sheet Data Total loans net $ 601,067 $ 191,089 $ 54,756 $ 140,426 $ — $ — $ 987,338 Total assets 611,702 199,999 86,906 254,714 30,952 244,455 1,428,728 Total funds borrowed 487,165 159,251 78,060 202,255 7,681 164,304 1,098,716 Selected Financial Ratios Return on assets 3.66 % 2.38 % 1.03 % (6.05 %) (6.60 %) (1.32 %) 0.36 % Return on equity 13.83 9.53 5.16 (30.23 ) (65.48 ) (4.70 ) 1.72 Interest yield 15.50 9.42 13.56 2.33 N/A N/A 11.52 Net interest margin 13.58 7.45 6.93 (2.96 ) N/A N/A 8.56 Reserve coverage 1.46 1.13 0.82 15.26 N/A N/A 3.60 Delinquency ratio 0.56 0.08 1.29 2.47 N/A N/A 0.81 Charge-off 3.40 0.35 0.00 21.59 N/A N/A 5.33 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Summary of Major Components of Other Expenses | The major components of other operating expenses were as follows: (Dollars in thousands) For the Three Directors’ fees $ 89 Miscellaneous taxes 120 Computer expenses 74 Depreciation and amortization 23 Other expenses 161 Total other operating expenses $ 467 |
Selected Financial Ratios and_2
Selected Financial Ratios and Other Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 under Investment Company Accounting. (Dollars in thousands, except per share data) Three Months Net share data Net asset value at the beginning of the period $ 11.80 Net investment loss (0.15 ) Income tax benefit 0.03 Net realized losses on investments (1.44 ) Net change in unrealized appreciation on investments 0.94 Net decrease in net assets resulting from operations (0.62 ) Issuance of common stock (0.03 ) Repurchase of common stock — Net investment income — Return of capital — Net realized gains on investments — Total distributions — Total decrease in net asset value (0.65 ) Net asset value at the end of the period (1) $ 11.15 Per share market value at beginning of period $ 3.53 Per share market value at end of period 4.65 Total return (2) (129 %) Ratios/supplemental data Total shareholders’ equity (net assets) $ 272,437 Average net assets $ 284,021 Total expense ratio (3) (4) 10.02 % Operating expenses to average net assets (4) 5.87 Net investment loss after income taxes to average net assets (4) (4.61 %) (1) Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018. (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 operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. (Dollars in thousands) Three Months Reimbursement of operating expenses $ 250 Loan origination and servicing fees 6 Total other income $ 256 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. March 31, 2019 December 31, 2018 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and federal funds sold (1) $ 86,121 $ 86,121 $ 57,713 $ 57,713 Equity investments 8,699 8,699 9,197 9,197 Investment securities 44,682 44,682 45,324 45,324 Loans receivable 987,338 987,338 981,487 981,487 Accrued interest receivable (2) 7,108 7,108 7,413 7,413 Financial liabilities Funds borrowed (3) 1,098,716 1,100,397 1,062,028 1,062,297 Accrued interest payable (2) 3,131 3,131 3,852 3,852 (1) Categorized as level 1 within the fair value hierarchy. See Note 16. (2) Categorized as level 3 within the fair value hierarchy. See Note 16. (3) As of March 31, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,681 and $269. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018. March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 8,699 $ 8,699 Available for sale investment securities (1) — 44,682 — 44,682 Total $ — $ 44,682 $ 8,699 $ 53,381 (1) Total unrealized income of $669, net of tax, was included in accumulated other comprehensive income (loss) for the three months ended March 31, 2019 related to these assets. December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,197 $ 9,197 Available for sale investment securities (1) — 45,324 — 45,324 Total $ — $ 45,324 $ 9,197 $ 54,521 (1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets. |
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 ended March 31, 2019, under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Equity December 31, 2018 $ 9,197 Gains included in earnings 598 Purchases, investments, and issuances 50 Sales, maturities, settlements, and distributions (1,146 ) March 31, 2019 $ 8,699 Amounts related to held assets (1) $ 196 (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2019. |
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 21,549 $ 21,549 Loan collateral in process of foreclosure — — 49,808 49,808 Total $ — $ — $ 71,357 $ 71,357 December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 34,877 $ 34,877 Loan collateral in process of foreclosure — — 49,495 49,495 Total $ — $ — $ 84,372 $ 84,372 |
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 March 31, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting. (Dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range Equity Investments 5,488 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,756 Investee book value adjusted for market appreciation Financial condition and operating performance of the investee N/A Precedent arm’s length offer Business enterprise value $ 6,014 – $7,214 Business enterprise value/revenue multiples 0.96x – 4.44x 1,455 Precedent market transaction Offering price $ 8.73 / share Equity investments $ 5,683 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,850 Investee book value adjusted for market appreciation Financial condition and operating performance of the investee N/A Precedent arm’s length offer Business enterprise value $ 6,014 – $7,214 Business enterprise value/revenue multiples 0.96x – 4.54x 1,455 Precedent market transaction Offering price $ 8.73 / share 209 Investee book value Valuation indicated by investee filings N/A |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2019USD ($)Medallion | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
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 | $ 4,676,000 | $ 4,305,000 | |
Net Fair value of medallions | $ 5,535,000 | ||
Medallion Financing Trust I [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Aggregate assets of trust | $ 36,141,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Apr. 02, 2018 | Jan. 01, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Apr. 02, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Non-marketable securities | $ 8,699,000 | $ 9,197,000 | |||||||
Net premium on investment securities | $ 244,000 | ||||||||
Investment securities Amortized to interest income | 12,000 | 21,000 | |||||||
Net loan origination costs | 14,416,000 | ||||||||
Net accretion to income | (1,151,000) | 13,000 | |||||||
Premiums in loan portfolio | 76,890,000 | 58,085,000 | |||||||
Loans pledged as collateral | 34,732,000 | 40,500,000 | |||||||
Principal portion of loans serviced, fair value | $ 135,807,000 | 140,180,000 | |||||||
Bank reserves against future losses | $ 17,351,000 | ||||||||
Intangible assets useful life | 20 years | ||||||||
Goodwill | $ 150,803,000 | 150,803,000 | |||||||
Intangible assets, net | 53,620,000 | 53,982,000 | |||||||
Amortization of intangible assets | 361,000 | ||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | |||||||
Depreciation and amortization | 23,000 | ||||||||
Amortization expense | 520,000 | 223,000 | |||||||
Deferred costs | $ 4,411,000 | $ 2,862,000 | $ 4,461,000 | ||||||
Potential dilutive common shares excluded from EPS computation | 471,000 | 290,960 | |||||||
Stock based compensation award | 374,377 | 0 | |||||||
Stock based compensation award, Amount | $ 165,000 | $ 152,000 | |||||||
Stock based compensation award per diluted common share | $ 0.01 | $ 0.01 | |||||||
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 2,169,000 | ||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 4 years | ||||||||
Tier 1 leverage capital ratio | 16.56% | ||||||||
Capital conversation buffer | 0.625% | ||||||||
Period increase of capital conversation buffer | 0.625% | ||||||||
Common Equity Tier 1 risk-based capital ratio | 14.30% | 14.30% | |||||||
Tier 1 risk-based capital ratio | 16.90% | 16.90% | |||||||
Total risk-based capital ratio | 18.20% | 18.20% | |||||||
Private Placement [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Interest reserve | $ 2,475,000 | ||||||||
Interest reserve Maintenance term | 3 years | ||||||||
Restricted Shares [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stock based compensation award | 163,098 | 97,952 | 101,010 | ||||||
91+ [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Premiums in loan portfolio | $ 8,102,000 | $ 20,154,000 | |||||||
91+ [Member] | Loans [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Premiums in loan portfolio | $ 8,102,000 | $ 20,154,000 | |||||||
Total loans more than 90 days past due ,percentage | 0.81% | 2.03% | |||||||
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 accretion to income | $ 852,000 | ||||||||
Reserves against future losses | $ 6,173,000 | ||||||||
Amortization of intangible assets | 0 | ||||||||
Amortization expense | 528,000 | 528,000 | |||||||
Deferred costs | 4,884,000 | 4,884,000 | 4,884,000 | ||||||
RPAC [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Amortization of intangible assets | 5,615,000 | ||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 7,956,000 | $ 9,048,000 | |||||||
Loan portfolio premium amortized to interest income | 1,092,000 | ||||||||
RPAC [Member] | Subsequent Event [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Premiums in loan portfolio | $ 12,387,000 | ||||||||
Bank Holding Company Accounting [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net premium on investment securities | 142,000 | ||||||||
Net loan origination costs | 15,086,000 | ||||||||
Net accretion to income | $ 1,151,000 | ||||||||
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% | ||||||||
Common Equity Tier 1 risk-based capital ratio | 7.00% | ||||||||
Tier 1 risk-based capital ratio | 8.50% | ||||||||
Total risk-based capital ratio | 10.50% | ||||||||
Maximum [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Estimated useful life of fixed assets | 10 years | ||||||||
Leasehold Improvements [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Depreciation and amortization | $ 100,000 | 23,000 | |||||||
Leasehold Improvements [Member] | Medallion Bank [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Depreciation and amortization | $ 67,000 | $ 67,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments In Loans [Line Items] | ||
Intangibles assets | $ 53,620 | $ 53,982 |
Intellectual Property [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | 20,900 | 21,176 |
Contractor Relationships [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | 6,555 | 6,641 |
Race Organization [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | $ 26,165 | $ 26,165 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | ||
Net income/ net decrease in net assets resulting from operations available to common shareholders | $ 1,228 | $ (14,874) |
Weighted average common shares outstanding applicable to basic EPS | 24,288,263 | 24,154,879 |
Effect of dilutive stock options | 17,423 | |
Effect of restricted stock grants | 311,204 | |
Adjusted weighted average common shares outstanding applicable to diluted EPS | 24,616,890 | 24,154,879 |
Basic earnings (loss) per share | $ 0.05 | $ (0.62) |
Diluted earnings (loss) per share | $ 0.05 | $ (0.62) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 | 7.00% | |
Regulatory, Minimum, Tier 1 capital ratio | 8.50% | |
Regulatory, Minimum, Total capital ratio | 10.50% | |
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 | $ 143,409 | $ 141,608 |
Tier 1 capital | 169,712 | 167,911 |
Total capital | 182,858 | 180,917 |
Average assets | 1,025,114 | 1,059,461 |
Risk-weighted assets | $ 1,005,656 | $ 993,374 |
Leverage ratio | 16.60% | 15.80% |
Common equity Tier 1 capital ratio | 14.30% | 14.30% |
Tier 1 capital ratio | 16.90% | 16.90% |
Total capital ratio | 18.20% | 18.20% |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 44,865 | $ 46,423 |
Gross Unrealized Gains | 284 | 50 |
Gross Unrealized Losses | (467) | (1,149) |
Fair Value | 44,682 | 45,324 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 31,710 | 32,184 |
Gross Unrealized Gains | 154 | 15 |
Gross Unrealized Losses | (239) | (742) |
Fair Value | 31,625 | 31,457 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,155 | 14,239 |
Gross Unrealized Gains | 130 | 35 |
Gross Unrealized Losses | (228) | (407) |
Fair Value | $ 13,057 | $ 13,867 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, due in one year or less | $ 20 | |
Amortized Cost, due after one year through five years | 8,936 | |
Amortized Cost, due after five years through ten years | 12,366 | |
Amortized Cost, due after ten years | 23,543 | |
Amortized Cost | 44,865 | $ 46,423 |
Market Value, due in one year or less | 20 | |
Market Value, due after one year through five years | 8,870 | |
Market Value, due after five years through ten years | 12,330 | |
Market Value, due after ten years | 23,462 | |
Market Value, total | $ 44,682 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | $ (50) | $ (132) |
Fair Value, Less than Twelve Months | 2,950 | 10,045 |
Gross Unrealized Losses, Twelve Months and Over | (417) | (1,017) |
Fair Value, Twelve Months and Over | 26,789 | 31,130 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (54) | |
Fair Value, Less than Twelve Months | 4,616 | |
Gross Unrealized Losses, Twelve Months and Over | (239) | (688) |
Fair Value, Twelve Months and Over | 19,106 | 24,871 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (50) | (78) |
Fair Value, Less than Twelve Months | 2,950 | 5,429 |
Gross Unrealized Losses, Twelve Months and Over | (178) | (329) |
Fair Value, Twelve Months and Over | $ 7,683 | $ 6,259 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | |||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 1,000,515 | [1] | $ 993,788 | [2] |
Allowance for loan losses | (36,862) | [3] | (36,395) | |
Net loans receivable | $ 987,338 | $ 981,487 | ||
Percentage of total gross loans | 100.00% | 100.00% | ||
Bank Holding Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 1,024,200 | $ 1,017,882 | ||
Allowance for loan losses | (36,862) | |||
Net loans receivable | 987,338 | |||
Investment Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | 1,017,882 | |||
Allowance for loan losses | (36,395) | |||
Net loans receivable | 981,487 | |||
Recreation [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | 589,552 | [1] | 567,209 | [2] |
Allowance for loan losses | $ (8,932) | $ (6,856) | ||
Percentage of total gross loans | 60.00% | 58.00% | ||
Recreation [Member] | Bank Holding Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 609,999 | $ 587,038 | ||
Recreation [Member] | Investment Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | 587,038 | |||
Home Improvement [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | 195,895 | [1] | 185,661 | [2] |
Allowance for loan losses | $ (2,186) | $ (1,796) | ||
Percentage of total gross loans | 19.00% | 18.00% | ||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 193,275 | $ 183,155 | ||
Home Improvement [Member] | Investment Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 183,155 | |||
Commercial [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Allowance for loan losses | $ (455) | |||
Percentage of total gross loans | 5.00% | 6.00% | ||
Commercial [Member] | Bank Holding Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 55,211 | $ 64,083 | ||
Commercial [Member] | Investment Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | 64,083 | |||
Medallion [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | 159,857 | [1] | 176,835 | [2] |
Allowance for loan losses | $ (25,289) | $ (27,743) | ||
Percentage of total gross loans | 16.00% | 18.00% | ||
Medallion [Member] | Bank Holding Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 165,715 | $ 183,606 | ||
Medallion [Member] | Investment Company Accounting [Member] | ||||
Student Loan Portfolio By Program [Line Items] | ||||
Total gross loans | $ 183,606 | |||
[1] | Excludes loan premiums of $7,956 resulting from purchase price accounting and $15,729 of capitalized loan origination costs. | |||
[2] | Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. | |||
[3] | Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | $ 993,788 | [1] |
Transfer to loans in process of foreclosure, net | (9,096) | |
Gross loans, ending balance | 1,000,515 | [2] |
Recreation [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 567,209 | [1] |
Transfer to loans in process of foreclosure, net | (3,391) | |
Gross loans, ending balance | 589,552 | [2] |
Home Improvement [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 185,661 | [1] |
Gross loans, ending balance | 195,895 | [2] |
Medallion [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 176,835 | [1] |
Transfer to loans in process of foreclosure, net | (5,705) | |
Gross loans, ending balance | 159,857 | [2] |
Bank Holding Company Accounting [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 1,017,882 | |
Loan originations | 92,495 | |
Principal payments | (62,004) | |
Charge-offs | (12,876) | |
Transfer to loans in process of foreclosure, net | (9,096) | |
Other | (2,201) | |
Gross loans, ending balance | 1,024,200 | |
Bank Holding Company Accounting [Member] | Recreation [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 587,038 | |
Loan originations | 65,757 | |
Principal payments | (33,373) | |
Charge-offs | (4,929) | |
Transfer to loans in process of foreclosure, net | (3,391) | |
Other | (1,103) | |
Gross loans, ending balance | 609,999 | |
Bank Holding Company Accounting [Member] | Home Improvement [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 183,155 | |
Loan originations | 26,296 | |
Principal payments | (15,849) | |
Charge-offs | (159) | |
Other | (168) | |
Gross loans, ending balance | 193,275 | |
Bank Holding Company Accounting [Member] | Commercial [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 64,083 | |
Loan originations | 442 | |
Principal payments | (9,344) | |
Other | 30 | |
Gross loans, ending balance | 55,211 | |
Bank Holding Company Accounting [Member] | Medallion [Member] | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | ||
Gross loans, beginning balance | 183,606 | |
Principal payments | (3,438) | |
Charge-offs | (7,788) | |
Transfer to loans in process of foreclosure, net | (5,705) | |
Other | (960) | |
Gross loans, ending balance | $ 165,715 | |
[1] | Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. | |
[2] | Excludes loan premiums of $7,956 resulting from purchase price accounting and $15,729 of capitalized loan origination costs. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses - beginning balance | $ 36,395 | |
Total charge- offs | (15,862) | |
Total recoveries | 2,986 | |
Net charge-offs | (12,876) | |
Provision for loan losses | 13,343 | [1] |
Allowance for loan losses - ending balance | 36,862 | [2] |
Recreation [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses - beginning balance | 6,856 | |
Total charge- offs | (6,525) | |
Total recoveries | 1,596 | |
Allowance for loan losses - ending balance | 8,932 | |
Home Improvement [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses - beginning balance | 1,796 | |
Total charge- offs | (549) | |
Total recoveries | 390 | |
Allowance for loan losses - ending balance | 2,186 | |
Medallion [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses - beginning balance | 27,743 | |
Total charge- offs | (8,788) | |
Total recoveries | 1,000 | |
Allowance for loan losses - ending balance | $ 25,289 | |
[1] | As of March 31, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $228,508, representing collection opportunities for the Company. | |
[2] | Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Cumulative charges of loans and loans process of foreclosure | [1] | $ 49,808 | $ 49,495 |
Percentage of Allowance | 100.00% | 100.00% | |
Percentage of total gross loans | 100.00% | 100.00% | |
Medallion Bank [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Cumulative charges of loans and loans process of foreclosure | $ 228,508 | ||
Reserves against future losses | $ 6,173 | ||
Percentage of Allowance | 17.00% | ||
Percentage of total gross loans | 3.96% | ||
Financing Receivables, 90 Days Past Due [Member] | Medallion Bank [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Reserves against future losses | $ 6,173 | ||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,930 as of March 31, 2019 and $3,134 as of December 31, 2018. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary Composition of the Allowance for Loan Losses by Type (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Amount | $ 36,862 | [1] | $ 36,395 |
Percentage of Allowance | 100.00% | 100.00% | |
Allowance as a Percent of Loan Category | 3.60% | 3.58% | |
Recreation [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Amount | $ 8,932 | $ 6,856 | |
Percentage of Allowance | 24.00% | 19.00% | |
Allowance as a Percent of Loan Category | 1.46% | 1.17% | |
Home Improvement [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Amount | $ 2,186 | $ 1,796 | |
Percentage of Allowance | 6.00% | 5.00% | |
Allowance as a Percent of Loan Category | 1.13% | 0.98% | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Amount | $ 455 | ||
Percentage of Allowance | 1.00% | ||
Allowance as a Percent of Loan Category | 0.82% | 0.00% | |
Medallion [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Amount | $ 25,289 | $ 27,743 | |
Percentage of Allowance | 69.00% | 76.00% | |
Allowance as a Percent of Loan Category | 15.26% | 15.11% | |
[1] | Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | [1] | Dec. 31, 2018 | |
Receivables [Abstract] | ||||
Total nonaccrual loans | $ 21,549 | $ 77,998 | $ 34,877 | |
Interest foregone quarter to date | 403 | 1,642 | 487 | |
Amount of foregone interest applied to principal in the quarter | 115 | 792 | 166 | |
Interest foregone life to date | 1,634 | 14,127 | 1,952 | |
Amount of foregone interest applied to principal life to date | $ 819 | $ 4,287 | $ 1,214 | |
Percentage of nonaccrual loans to gross loan portfolio | 2.00% | 28.00% | 3.00% | |
[1] | Does not include Medallion Bank nonaccrual loans of $35,920, interest income foregone for the quarter of $213 and foregone interest paid and applied to principal for the quarter of $153, interest income foregone life-to-date of $1,118 and foregone interest paid and applied to principal life-to-date of $1,005. |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | [1] | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest foregone life to date | $ 1,634 | $ 14,127 | $ 1,952 | |
Amount of foregone interest applied to principal life to date | 819 | $ 4,287 | $ 1,214 | |
Non Accrual Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non accrual loans | 35,920 | |||
Interest collected on nonaccrual loans recorded | 213 | |||
Interest paid | 153 | |||
Interest foregone life to date | 1,118 | |||
Amount of foregone interest applied to principal life to date | $ 1,005 | |||
[1] | Does not include Medallion Bank nonaccrual loans of $35,920, interest income foregone for the quarter of $213 and foregone interest paid and applied to principal for the quarter of $153, interest income foregone life-to-date of $1,118 and foregone interest paid and applied to principal life-to-date of $1,005. |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,024,200 | $ 1,017,882 |
Percentage of Non-performing to Total | 2.10% | 3.43% |
Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 609,999 | $ 587,038 |
Percentage of Non-performing to Total | 0.84% | 0.99% |
Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 193,275 | $ 183,155 |
Percentage of Non-performing to Total | 0.08% | 0.07% |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 55,211 | $ 64,083 |
Percentage of Non-performing to Total | 7.72% | 5.98% |
Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 165,715 | $ 183,606 |
Percentage of Non-performing to Total | 7.23% | 13.68% |
Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,002,651 | $ 983,005 |
Performing [Member] | Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 604,862 | 581,250 |
Performing [Member] | Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 193,117 | 183,018 |
Performing [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 50,946 | 60,249 |
Performing [Member] | Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 153,726 | 158,488 |
Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 21,549 | 34,877 |
Non - Performing [Member] | Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 5,137 | 5,788 |
Non - Performing [Member] | Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 158 | 137 |
Non - Performing [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 4,265 | 3,834 |
Non - Performing [Member] | Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 11,989 | $ 25,118 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Financing Receivable, Recorded Investment [Line Items] | ||||
Recorded Investment, With related allowance | $ 21,549 | $ 34,877 | ||
Recorded investment | 34,877 | |||
Unpaid principal balance,total non performing loans | 36,091 | |||
Unpaid principal balance, With related allowance | 22,367 | 36,091 | ||
Related allowance, With related allowance | 19,757 | 22,242 | ||
Related allowance, Total nonperforming loans | 22,242 | |||
Average investment recorded, With related allowance | 25,871 | |||
Interest income recognized, With related allowance | 186 | |||
Recreation [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Recorded Investment, With related allowance | 5,137 | 5,788 | ||
Unpaid principal balance, With related allowance | 5,137 | 5,788 | ||
Related allowance, With related allowance | 183 | 204 | ||
Average investment recorded, With related allowance | 5,173 | |||
Interest income recognized, With related allowance | 132 | |||
Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Recorded Investment, With related allowance | 158 | 137 | ||
Unpaid principal balance, With related allowance | 158 | 137 | ||
Related allowance, With related allowance | 3 | 3 | ||
Average investment recorded, With related allowance | 158 | |||
Commercial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Recorded Investment, With related allowance | 4,265 | 3,834 | ||
Recorded investment | [1],[2],[3] | $ 18,604 | ||
Unpaid principal balance,total non performing loans | [2] | 20,880 | ||
Average recorded investment | [2] | 19,151 | ||
Unpaid principal balance, With related allowance | 4,360 | 3,929 | ||
Related allowance, With related allowance | 455 | |||
Average investment recorded, With related allowance | 4,233 | |||
Medallion [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Recorded Investment, With related allowance | 11,989 | 25,118 | ||
Recorded investment | [1],[2],[3] | 59,394 | ||
Unpaid principal balance,total non performing loans | [2] | 62,519 | ||
Average recorded investment | [2] | $ 142,364 | ||
Unpaid principal balance, With related allowance | 12,712 | 26,237 | ||
Related allowance, With related allowance | 19,116 | $ 22,035 | ||
Average investment recorded, With related allowance | 16,307 | |||
Interest income recognized, With related allowance | $ 54 | |||
[1] | As of March 31, 2018, $24,256 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 $5,401 as of March 31, 2018, which is included in the nonaccrual disclosures on page 21. | |||
[3] | Interest income of $85 was recognized on loans for the three months ended March 31, 2018. |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Receivables [Abstract] | ||
Valuation allowances | $ 24,256 | |
Interest and Fee Income | $ 29,439 | 85 |
Unearned paid-in-kind interest on nonaccrual loans | $ 5,401 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | $ 76,890 | $ 58,085 | ||
Current | 923,625 | 935,703 | ||
Total | 1,000,515 | [1] | 993,788 | [2] |
Accruing | 0 | 0 | ||
Recreation [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 20,487 | 28,158 | ||
Current | 569,065 | 539,051 | ||
Total | 589,552 | [1] | 567,209 | [2] |
Accruing | 0 | 0 | ||
Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 775 | 1,133 | ||
Current | 195,120 | 184,528 | ||
Total | 195,895 | [1] | 185,661 | [2] |
Accruing | 0 | 0 | ||
Commercial Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 710 | 733 | ||
Current | 54,501 | 63,350 | ||
Total | 55,211 | [1] | 64,083 | [2] |
Accruing | 0 | 0 | ||
Medallion [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 54,918 | 28,061 | ||
Current | 104,939 | 148,774 | ||
Total | 159,857 | [1] | 176,835 | [2] |
Accruing | 0 | 0 | ||
31-60 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 61,277 | 27,887 | ||
31-60 [Member] | Recreation [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 13,186 | 18,483 | ||
31-60 [Member] | Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 436 | 715 | ||
31-60 [Member] | Medallion [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 47,655 | 8,689 | ||
61-90 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 7,511 | 10,044 | ||
61-90 [Member] | Recreation [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 4,019 | 5,655 | ||
61-90 [Member] | Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 183 | 283 | ||
61-90 [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 454 | |||
61-90 [Member] | Medallion [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 3,309 | 3,652 | ||
91+ [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 8,102 | 20,154 | ||
91+ [Member] | Recreation [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 3,282 | 4,020 | ||
91+ [Member] | Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 156 | 135 | ||
91+ [Member] | Commercial Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 710 | 279 | ||
91+ [Member] | Medallion [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | $ 3,954 | $ 15,720 | ||
[1] | Excludes loan premiums of $7,956 resulting from purchase price accounting and $15,729 of capitalized loan origination costs. | |||
[2] | Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
loan premiums | $ 7,956 | $ 9,047 |
capitalized loan origination costs | $ 15,729 | $ 15,047 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | |||
Mar. 31, 2019USD ($)TDRs | Mar. 31, 2018USD ($)TDRs | Dec. 31, 2018USD ($) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Weighted average loan-to-value ratio | 213.00% | 209.00% | 220.00% | |
Number of loans modified as TDRs defaulted | TDRs | 8 | |||
TDR investment value | $ 1,334,000 | |||
Allowance for loan loss | $ 36,862,000 | [1] | $ 36,395,000 | |
TDR unrealized depreciation | $ 1,630,000 | |||
Troubled Debt Restructuring Defaulted [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans modified as TDRs defaulted | TDRs | 4 | |||
TDR investment value | $ 1,396,000 | |||
Allowance for loan loss | $ 938,000 | |||
[1] | Includes $6,173 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 17% of the total allowance, and 3.96% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018. |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)TDRs | Mar. 31, 2018TDRs | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | TDRs | 8 | |
Medallion [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | TDRs | 7 | |
Pre- Modification Investment | $ | $ 2,895 | |
Post- Modification Investment | $ | $ 2,895 |
Loans and Allowance for Loan_17
Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans in process of foreclosure - beginning balance | $ 49,495 |
Transfer from loans, net | 9,096 |
Sales | (2,453) |
Cash payments received | (2,573) |
Collateral valuation adjustments | (3,757) |
Total | 49,808 |
Recreation [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans in process of foreclosure - beginning balance | 1,503 |
Transfer from loans, net | 3,391 |
Sales | (2,076) |
Collateral valuation adjustments | (1,638) |
Total | 1,180 |
Medallion [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans in process of foreclosure - beginning balance | 47,992 |
Transfer from loans, net | 5,705 |
Sales | (377) |
Cash payments received | (2,573) |
Collateral valuation adjustments | (2,119) |
Total | $ 48,628 |
Unrealized Appreciation (Depr_3
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Unrealized Appreciation (Depreciation) on Investments (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | $ 139,700 |
Appreciation on investments | 37,797 |
Depreciation on investments | (40,067) |
Gains on investments | 0 |
Losses on investments | 34,747 |
Ending balance | 172,177 |
Medallion [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | (20,338) |
Depreciation on investments | (38,170) |
Gains on investments | 0 |
Losses on investments | 34,747 |
Ending balance | (23,761) |
Commercial Loans [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | (513) |
Depreciation on investments | 18 |
Gains on investments | 0 |
Ending balance | (495) |
Investment In Subsidiary One [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | 158,920 |
Appreciation on investments | 38,795 |
Gains on investments | 0 |
Ending balance | 197,715 |
Equity Investments [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | 3,121 |
Appreciation on investments | (998) |
Gains on investments | 0 |
Ending balance | 2,123 |
Other than Securities Investment [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | (1,490) |
Depreciation on investments | (1,915) |
Gains on investments | 0 |
Ending balance | $ (3,405) |
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) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Net change in unrealized appreciation (depreciation) on investments | ||
Unrealized appreciation | $ 37,797 | |
Unrealized depreciation | 40,067 | |
Investment Company Accounting [Member] | ||
Net change in unrealized appreciation (depreciation) on investments | ||
Unrealized appreciation | (998) | |
Unrealized depreciation | (38,152) | |
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries | 29,115 | |
Realized gains | 0 | |
Realized losses | 34,747 | |
Net unrealized losses on investments other than securities and other assets | (1,915) | |
Total | 22,797 | |
Net realized gains (losses) on investments | ||
Realized gains | 0 | |
Realized losses | (34,747) | |
Direct recoveries | 2 | |
Total | (34,745) | [1] |
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 | |
[1] | There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018. |
Investment in Medallion Bank an
Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries under Investment Company Accounting (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | [1] | $ 30,043 | |
Interest expense | [2] | 7,722 | |
Net interest income | 22,321 | ||
Noninterest income | 6,863 | ||
Operating expenses | $ 1,150 | ||
Net investment income before income taxes | [3] | 1,139 | |
Income tax benefit | (256) | (640) | |
Net income after taxes/net decrease on net assets resulting from operations | 1,395 | ||
Net decrease in net assets resulting from operations of Medallion Bank | $ 1,228 | (14,874) | |
Medallion Bank [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income | 26,880 | ||
Interest expense | 3,615 | ||
Net interest income | 23,265 | ||
Noninterest income | 19 | ||
Operating expenses | 7,158 | ||
Net investment income before income taxes | 16,126 | ||
Income tax benefit | 3,321 | ||
Net income after taxes/net decrease on net assets resulting from operations | 19,447 | ||
Net realized/unrealized losses of Medallion Bank | (28,539) | ||
Unrealized appreciation on Medallion Bank | [4] | 39,092 | |
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank | (885) | ||
Net decrease in net assets resulting from operations of Medallion Bank | 29,115 | ||
Medallion Bank [Member] | Medallion Financing Trust I [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net decrease in net assets resulting from operations of Medallion Bank | $ (9,092) | ||
[1] | Included in interest and investment income is $237 and $491 of paid in kind interest for the three months ended March 31, 2019 and 2018. | ||
[2] | Average borrowings outstanding were $1,067,075 and $324,322, and the related average borrowing costs were 2.93% and 4.44% for the three months ended March 31, 2019 and 2018. | ||
[3] | Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information. | ||
[4] | Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank. |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
2020 | $ 368,373 | ||
2021 | 206,747 | ||
2022 | 226,214 | ||
2023 | 133,516 | ||
2024 | 95,866 | ||
Thereafter | 68,000 | ||
Long term debt | $ 1,098,716 | ||
Funds borrowed | $ 1,062,028 | ||
Interest Rate | [1] | 2.89% | |
Deposits [Member] | |||
Debt Instrument [Line Items] | |||
2020 | $ 286,501 | ||
2021 | 193,929 | ||
2022 | 192,309 | ||
2023 | 128,236 | ||
2024 | 63,156 | ||
Long term debt | $ 864,131 | ||
Funds borrowed | 848,040 | ||
Interest Rate | [1] | 2.24% | |
Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2020 | $ 28,380 | ||
2021 | 8,500 | ||
2023 | 5,000 | ||
2024 | 2,500 | ||
Thereafter | 35,000 | ||
Long term debt | $ 79,380 | ||
Funds borrowed | 80,099 | ||
Interest Rate | [1] | 3.40% | |
Retail and Privately Placed Notes [Member] | |||
Debt Instrument [Line Items] | |||
2022 | $ 33,625 | ||
2024 | 30,000 | ||
Long term debt | $ 63,625 | ||
Funds borrowed | 33,625 | ||
Interest Rate | [1] | 8.65% | |
Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
Thereafter | $ 33,000 | ||
Long term debt | $ 33,000 | ||
Funds borrowed | 33,000 | ||
Interest Rate | [1] | 4.73% | |
Other Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2020 | $ 7,681 | ||
Long term debt | $ 7,681 | ||
Funds borrowed | 7,649 | ||
Interest Rate | [1] | 2.00% | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
2020 | $ 45,811 | ||
2021 | 4,318 | ||
2022 | 280 | ||
2023 | 280 | ||
2024 | 210 | ||
Long term debt | $ 50,899 | ||
Funds borrowed | $ 59,615 | ||
Interest Rate | [1] | 4.70% | |
[1] | Weighted average contractual rate as of March 31, 2019. |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) - USD ($) | Dec. 31, 2007 | Nov. 30, 2018 | Apr. 30, 2016 | Jun. 30, 2007 | Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Jul. 01, 2016 | Dec. 31, 2008 |
Debt Instrument [Line Items] | |||||||||
Gain on debt extinguishment | $ 4,145,000 | $ 4,145,000 | |||||||
Pay off one of the notes payable discount rate | 50.00% | ||||||||
Issue of common stock | 27,546,999 | 27,385,600 | |||||||
Short term promissory note | $ 81,872,000 | $ 55,178,000 | |||||||
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] | 90 day LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.60% | ||||||||
Preferred Securities [Member] | LIBOR Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.13% | ||||||||
Small Business Administration Debentures and Borrowings [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan commitment term | 4 years 6 months | ||||||||
Commitment fee percentage | 1.00% | ||||||||
Principal amount of loan | $ 34,024,756 | ||||||||
Debt instrument interest rate Percentage | 3.25% | ||||||||
Debt instrument commitments amount fully utilized | $ 172,485,000 | ||||||||
Debt instrument commitments available | 3,000,000 | ||||||||
Debt instrument outstanding amount | 79,380,000 | ||||||||
Debt instrument remaining amount | 28,380,000 | ||||||||
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 | ||||||||
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 | |||||||
Retail and Privately Placed Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate Percentage | 9.00% | 8.25% | |||||||
Aggregate principal amount | $ 33,625,000 | $ 30,000,000 | |||||||
Gain loss on sales of loans net | $ 4,145,000 | ||||||||
Maturity date | 2021 | 2024 | |||||||
Net proceeds from offering | $ 31,786,000 | ||||||||
Dz Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate Percentage | 4.00% | ||||||||
Debt instrument face amount | $ 1,400,000 | ||||||||
Debt instrument expiration date | 2023-12 | ||||||||
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 | $ 7,181,000 | ||||||||
Travis Burt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturity date | Dec. 31, 2019 | ||||||||
Short term promissory note | $ 500,000 | ||||||||
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 | $ 7,600,000 | ||||||||
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 | Mar. 31, 2019USD ($) |
Banking and Thrift [Abstract] | |
Three months or less | $ 110,012 |
Over three months through six months | 108,138 |
Over six months through one year | 68,351 |
Over one year | 577,630 |
Total deposits | $ 864,131 |
Funds Borrowed - Summary of Key
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Notes Payable [Line Items] | ||
Average Interest Rate | 2.89% | [1] |
Notes Payable to Banks [Member] | ||
Notes Payable [Line Items] | ||
Note Amounts | $ 57,520 | |
Balance outstanding | $ 50,899 | |
Average Interest Rate | 4.70% | [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 | Apr. 30, 2019 | |
Maturity Dates | Sep. 30, 2020 | |
Type | Term loans and demand notes secured by pledged loans | [2] |
Note Amounts | $ 37,741 | [2] |
Balance outstanding | $ 37,741 | |
Monthly Payment | Interest only | [3] |
Average Interest Rate | 5.10% | |
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 | |
Type | Term loans secured by owned Chicago medallions | [4] |
Note Amounts | $ 18,449 | |
Balance outstanding | $ 11,828 | |
Monthly Payment | 134 of principal & interest | |
Average Interest Rate | 3.50% | |
Notes Payable to Banks [Member] | Medallion Funding [Member] | ||
Notes Payable [Line Items] | ||
Note Dates | Nov. 30, 2018 | |
Maturity Dates | Dec. 31, 2023 | |
Note Amounts | $ 1,330 | |
Balance outstanding | $ 1,330 | |
Monthly Payment | 70 principal & interest paid quarterly | |
Average Interest Rate | 4.00% | |
[1] | Weighted average contractual rate as of March 31, 2019. | |
[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 3.75%, one note has an interest rate of LIBOR plus 3.75%, 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 $12 to $75. | |
[4] | Guaranteed by the Company. |
Funds Borrowed - Summary of K_2
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Minimum [Member] | |
Notes Payable [Line Items] | |
Minimum monthly payments of pledged loan | $ 12,000 |
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 2.49%, 360 day LIBOR was 2.71% |
Parent Company [Member] | Notes Payable to Banks [Member] | Prime Rate [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 5.50% |
Parent Company [Member] | Notes Payable to Banks [Member] | 30 Day LIBOR [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 2.49% |
Parent Company [Member] | Notes Payable to Banks [Member] | 360 Day LIBOR [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 2.71% |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 3.75% |
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 3.75%, one note has an interest rate of LIBOR plus 3.75%, 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 | 3.75% |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | LIBOR Rate [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 2.00% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 531 |
Operating cash flows from operating leases | 587 |
Right-of-use asset obtained in exchange for lease liability | $ (16) |
Leases - Schedule of Breakout o
Leases - Schedule of Breakout of Operating leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 12,165 |
Other current liabilities | 1,846 |
Operating lease liabilities | 11,724 |
Total operating lease liabilities | $ 13,570 |
Weighted average remaining lease term | 4 years |
Weighted average discount rate | 4.29% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of the Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 1,772 |
2020 | 2,380 |
2021 | 2,278 |
2022 | 2,216 |
2023 | 2,136 |
Thereafter | 6,048 |
Total lease payments | 16,830 |
Less imputed interest | 3,260 |
Total operating lease liabilities | $ 13,570 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles | $ (44,922) | $ (45,272) | |
Provision for loan losses | 21,592 | 25,790 | |
Net operating loss carryforwards | [1] | 17,296 | 11,132 |
Accrued expenses, compensation, and other assets | 1,098 | 1,844 | |
Unrealized gains on other investments | (3,659) | (2,024) | |
Total deferred tax liability | (8,595) | (8,530) | |
Valuation allowance | (124) | (255) | |
Deferred tax liability, net | (8,719) | (8,785) | |
Taxes receivable | 1,682 | 1,812 | |
Net deferred and other tax liabilities | $ (7,037) | $ (6,973) | |
[1] | As of March 31, 2019, the Company and its subsidiaries had an estimated $67,837 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $17,172 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) - Medallion Chicago [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income Tax Rate Reconciliation [Line Items] | |
Net operating loss carryforwards | $ 67,837 |
Net operating loss carryforwards expiration period | Expire at various dates between December 31, 2026 and December 31, 2035 |
Net operating loss carryforwards assets | $ 17,172 |
December 31, 2016 To December 31, 2035 [Member] | |
Income Tax Rate Reconciliation [Line Items] | |
Net operating loss carryforwards | $ 1,712 |
Income Taxes - Summary of Com_3
Income Taxes - Summary of Components of Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Current | ||
Federal | $ (869) | $ 5,895 |
State | (823) | 1,182 |
Deferred | ||
Federal | 610 | (3,891) |
State | 1,338 | (2,546) |
Net (provision) benefit for income taxes | $ 256 | $ 640 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal income tax (provision) benefit at 21% | $ (379) | $ 3,258 |
State and local income taxes, net of federal income tax benefit | (107) | 504 |
Appreciation of Medallion Bank | (1,974) | |
Change in state income tax accruals | 686 | |
Change in effective state income tax rate | (1,358) | |
Other | 56 | 210 |
Net (provision) benefit for income taxes | $ 256 | $ 640 |
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 | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal Income tax (provision) benefit percentage | 21.00% | 21.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 15, 2018 | Dec. 31, 2017 | Mar. 01, 2016 | Feb. 29, 2016 | Jun. 16, 2006 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock option outstanding | 501,043 | [1] | 144,666 | 320,626 | ||||||
Stock option exercisable | [1] | 63,889 | ||||||||
Unvested shares of common stock outstanding | 437,154 | 62,777 | ||||||||
Weighted average fair value of options granted | $ 6.48 | |||||||||
Number of options granted | 374,377 | 39,000 | ||||||||
Intrinsic value of options vested | $ 0 | |||||||||
Restricted Shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average fair value of options granted | $ 2.98 | |||||||||
Number of options granted | 0 | |||||||||
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 | |||||||||
Amended Director Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 200,000 | |||||||||
Number of additional shares available for issuance | 0 | |||||||||
Amended Director Plan [Member] | Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 9,000 | |||||||||
2018 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 1,500,253 | 241,919 | ||||||||
Shares were rolled into the 2018 Plan | 920,932 | |||||||||
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 | 250,482 | |||||||||
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 | |||||||||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at March 31, 2019 and the related exercise price of the underlying options, was $348,000 for outstanding options and $45,000 for exercisable options as of March 31, 2019. The remaining contractual life was 9.27 years for outstanding options and 5.64 years for exercisable options at March 31, 2019. |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
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 | 2.39% | ||
Expected dividend yield | 0.79% | ||
Expected life of option in years | [1] | 6 years 3 months | 0 years |
Expected volatility | [2] | 48.45% | |
[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 | ||
Mar. 31, 2019 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options beginning balance | 144,666 | 320,626 | ||
Granted | 374,377 | 39,000 | ||
Cancelled | (18,000) | (214,960) | ||
Exercised | [1] | 0 | 0 | |
Number of options ending balance | 501,043 | [2] | 144,666 | |
Options exercisable | [2] | 63,889 | ||
Exercise price per share, lower range limit beginning balance | $ 2.06 | $ 2.14 | ||
Exercise price per share, upper range limit beginning balance | 13.84 | 13.84 | ||
Exercise price per share, exercised | [1] | 0 | 0 | |
Exercise price per share, lower range limit ending balance | 2.14 | [2] | 2.06 | |
Exercise price per share, upper range limit ending balance | 13.84 | [2] | 13.84 | |
Exercise price per share, option exercisable lower range limit | [2] | 2.14 | ||
Exercise price per share, option exercisable upper range limit | [2] | 13.84 | ||
Weighted average exercise price, beginning balance | 7.23 | 8.78 | ||
Weighted average exercise price, granted | 6.48 | 5.46 | ||
Weighted average exercise price, cancelled | 8.44 | 9.22 | ||
Weighted average exercise price, exercised | [1] | 0 | 0 | |
Weighted average exercise price, ending balance | 6.63 | [2] | 7.23 | |
Weighted average exercise price, options exercisable | [2] | 9.48 | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price per share, granted | 5.21 | 5.27 | ||
Exercise price per share, cancelled | 7.49 | 9.22 | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price per share, granted | 6.55 | 5.58 | ||
Exercise price per share, cancelled | $ 9.38 | $ 9.24 | ||
[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 2019 and 2018 first quarters. | |||
[2] | The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at March 31, 2019 and the related exercise price of the underlying options, was $348,000 for outstanding options and $45,000 for exercisable options as of March 31, 2019. The remaining contractual life was 9.27 years for outstanding options and 5.64 years for exercisable options at March 31, 2019. |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Aggregate intrinsic value for option exercised | $ 0 | $ 0 |
Aggregate intrinsic value of option outstanding | 348,000 | |
Aggregate intrinsic value of option exercisable | $ 45,000 | |
Remaining contractual life of option outstanding | 9 years 3 months 7 days | |
Remaining contractual life of option exercisable | 5 years 7 months 20 days |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares, granted | 374,377 | 0 | |||
Restricted Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares, beginning balance | 190,915 | 408,582 | 408,582 | ||
Grant price per share, granted | $ 6.55 | ||||
Number of shares, granted | 163,098 | 97,952 | 101,010 | ||
Number of shares, cancelled | (1,699) | (9,737) | |||
Number of shares, vested | [2] | (101,832) | [1] | (308,940) | |
Number of shares, ending balance | 250,482 | [3],[4] | 190,915 | ||
Grant price per share, lower range limit beginning balance | $ 2.14 | $ 2.06 | $ 2.06 | ||
Grant price per share, upper range limit beginning balance | 5.27 | 10.38 | 10.38 | ||
Grant price per share, granted, lower limit | 3.93 | ||||
Grant price per share, granted, upper limit | 5.27 | ||||
Grant price per share, cancelled, lower limit | 3.93 | 3.93 | |||
Grant price per share, cancelled, upper limit | 3.95 | 9.08 | |||
Grant price per share, vested, lower limit | [2] | 3.93 | 2.06 | ||
Grant price per share, vested, upper limit | [2] | 4.39 | 10.38 | ||
Grant price per share, lower range limit ending balance | 2.14 | [4] | 2.14 | ||
Grant price per share, upper range limit ending balance | 6.55 | [4] | 5.27 | ||
Weighted average grant price beginning balance | 4.06 | $ 3.45 | 3.45 | ||
Weighted average grant price, granted | 6.55 | 4.41 | |||
Weighted average grant price, cancelled | 3.94 | 4.66 | |||
Weighted average grant price, vested | [2] | 4.07 | 3.35 | ||
Weighted average grant price, ending balance | $ 5.68 | [4] | $ 4.06 | ||
[1] | Average borrowings outstanding were $1,067,075 and $324,322, and the related average borrowing costs were 2.93% and 4.44% for the three months ended March 31, 2019 and 2018. | ||||
[2] | The aggregate fair value of the restricted stock vested was $623,000 and $1,209,000 for the three months ended March 31, 2019 and 2018. | ||||
[3] | Included in interest and investment income is $237 and $491 of paid in kind interest for the three months ended March 31, 2019 and 2018. | ||||
[4] | The aggregate fair value of the restricted stock was $1,728,000 as of March 31, 2019. The remaining vesting period was 3.02 years at March 31, 2019. |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate fair value of restricted stock vested | $ 623,000 | $ 1,209,000 |
Aggregate fair value of restricted stock outstanding | $ 1,728,000 | |
Remaining vesting period of restricted stock | 3 years 7 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 |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of options beginning balance | 62,777 | |
Number of options, granted | 374,377 | 39,000 |
Number of options, cancelled | 0 | |
Number of options, vested | 0 | |
Number of options ending balance | 437,154 | 62,777 |
Exercise price per share beginning balance, Lower limit | $ 2.14 | |
Exercise price per share beginning balance, Upper limit | 7.10 | |
Exercise price per share, Granted, Lower limit | 5.21 | |
Exercise price per share, Granted, Upper limit | 6.55 | |
Exercise price per share, Cancelled | 0 | |
Exercise price per share, Vested | 0 | |
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 | 4.59 | |
Weighted average exercise price, granted | 6.48 | |
Weighted average exercise price, cancelled | 0 | |
Weighted average exercise price, vested | 0 | |
Weighted average exercise price | $ 6.21 | $ 4.59 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
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% |
Swimming Pools [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 29.00% |
Solar Panels [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 16.00% |
Roofs [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 15.00% |
Windows [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 11.00% |
Texas [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 17.00% |
California [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10.00% |
Florida [Member] | |
Segment Reporting Disclosure [Line Items] | |
Loan outstanding percent | 10.00% |
Geographic Concentration Risk [Member] | Recreational Vehicles [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 62.00% |
Geographic Concentration Risk [Member] | Boats [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 19.00% |
Geographic Concentration Risk [Member] | Trailers [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 10.00% |
Geographic Concentration Risk [Member] | Midwest [Member] | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 52.00% |
Geographic Concentration Risk [Member] | New York | |
Segment Reporting Disclosure [Line Items] | |
Aggregate percentage of loans lending | 87.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Segment Reporting Disclosure [Line Items] | ||||
Total interest income | $ 30,043 | |||
Total interest expense | [1] | 7,722 | ||
Net interest income (loss) | 22,321 | |||
Provision for loan losses | [2] | 13,343 | ||
Net interest income (loss) after loss provision | 8,978 | |||
Sponsorship and race winnings | 3,179 | |||
Race team related expenses | (1,998) | |||
Other income (expense) | (9,020) | |||
Income before income taxes/net investment loss before taxes | [3] | 1,139 | ||
Income tax benefit (provision) | 256 | $ 640 | ||
Net income (loss) after tax | 1,395 | |||
Balance Sheet Data | ||||
Total loans net | 987,338 | $ 981,487 | ||
Total assets | 1,428,728 | $ 1,381,846 | ||
Total funds borrowed | $ 1,098,716 | |||
Selected Financial Ratios | ||||
Return on assets | 0.36% | |||
Return on equity | 1.72% | |||
Interest yield | 11.52% | |||
Net interest margin | 8.56% | |||
Reserve coverage | 3.60% | |||
Delinquency ratio | 0.81% | |||
Charge-off ratio | 5.33% | |||
RPAC [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Total interest expense | $ 36 | |||
Net interest income (loss) | (36) | |||
Net interest income (loss) after loss provision | (36) | |||
Sponsorship and race winnings | 3,179 | |||
Race team related expenses | (1,998) | |||
Other income (expense) | (1,797) | |||
Income before income taxes/net investment loss before taxes | (652) | |||
Income tax benefit (provision) | 157 | |||
Net income (loss) after tax | (495) | |||
Balance Sheet Data | ||||
Total assets | 30,952 | |||
Total funds borrowed | $ 7,681 | |||
Selected Financial Ratios | ||||
Return on assets | (6.60%) | |||
Return on equity | (65.48%) | |||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Total interest income | $ 22,479 | |||
Total interest expense | 2,774 | |||
Net interest income (loss) | 19,705 | |||
Provision for loan losses | 7,005 | |||
Net interest income (loss) after loss provision | 12,700 | |||
Other income (expense) | (5,382) | |||
Income before income taxes/net investment loss before taxes | 7,318 | |||
Income tax benefit (provision) | (1,895) | |||
Net income (loss) after tax | 5,423 | |||
Balance Sheet Data | ||||
Total loans net | 601,067 | |||
Total assets | 611,702 | |||
Total funds borrowed | $ 487,165 | |||
Selected Financial Ratios | ||||
Return on assets | 3.66% | |||
Return on equity | 13.83% | |||
Interest yield | 15.50% | |||
Net interest margin | 13.58% | |||
Reserve coverage | 1.46% | |||
Delinquency ratio | 0.56% | |||
Charge-off ratio | 3.40% | |||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Total interest income | $ 4,325 | |||
Total interest expense | 906 | |||
Net interest income (loss) | 3,419 | |||
Provision for loan losses | 549 | |||
Net interest income (loss) after loss provision | 2,870 | |||
Other income (expense) | (1,637) | |||
Income before income taxes/net investment loss before taxes | 1,233 | |||
Income tax benefit (provision) | (319) | |||
Net income (loss) after tax | 914 | |||
Balance Sheet Data | ||||
Total loans net | 191,089 | |||
Total assets | 199,999 | |||
Total funds borrowed | $ 159,251 | |||
Selected Financial Ratios | ||||
Return on assets | 2.38% | |||
Return on equity | 9.53% | |||
Interest yield | 9.42% | |||
Net interest margin | 7.45% | |||
Reserve coverage | 1.13% | |||
Delinquency ratio | 0.08% | |||
Charge-off ratio | 0.35% | |||
Operating Segments [Member] | Commercial Lending [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Total interest income | $ 1,967 | |||
Total interest expense | 961 | |||
Net interest income (loss) | 1,006 | |||
Provision for loan losses | 455 | |||
Net interest income (loss) after loss provision | 551 | |||
Other income (expense) | (253) | |||
Income before income taxes/net investment loss before taxes | 298 | |||
Income tax benefit (provision) | (72) | |||
Net income (loss) after tax | 226 | |||
Balance Sheet Data | ||||
Total loans net | 54,756 | |||
Total assets | 86,906 | |||
Total funds borrowed | $ 78,060 | |||
Selected Financial Ratios | ||||
Return on assets | 1.03% | |||
Return on equity | 5.16% | |||
Interest yield | 13.56% | |||
Net interest margin | 6.93% | |||
Reserve coverage | 0.82% | |||
Delinquency ratio | 1.29% | |||
Charge-off ratio | 0.00% | |||
Operating Segments [Member] | Medallion Lending [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Total interest income | $ 841 | |||
Total interest expense | 1,909 | |||
Net interest income (loss) | (1,068) | |||
Provision for loan losses | 5,334 | |||
Net interest income (loss) after loss provision | (6,402) | |||
Other income (expense) | 1,214 | |||
Income before income taxes/net investment loss before taxes | (5,188) | |||
Income tax benefit (provision) | 1,251 | |||
Net income (loss) after tax | (3,937) | |||
Balance Sheet Data | ||||
Total loans net | 140,426 | |||
Total assets | 254,714 | |||
Total funds borrowed | $ 202,255 | |||
Selected Financial Ratios | ||||
Return on assets | (6.05%) | |||
Return on equity | (30.23%) | |||
Interest yield | 2.33% | |||
Net interest margin | (2.96%) | |||
Reserve coverage | 15.26% | |||
Delinquency ratio | 2.47% | |||
Charge-off ratio | 21.59% | |||
Intersegment Eliminations [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Total interest income | $ 431 | |||
Total interest expense | 1,136 | |||
Net interest income (loss) | (705) | |||
Net interest income (loss) after loss provision | (705) | |||
Other income (expense) | (1,165) | |||
Income before income taxes/net investment loss before taxes | (1,870) | |||
Income tax benefit (provision) | 1,134 | |||
Net income (loss) after tax | (736) | |||
Balance Sheet Data | ||||
Total assets | 244,455 | |||
Total funds borrowed | $ 164,304 | |||
Selected Financial Ratios | ||||
Return on assets | (1.32%) | |||
Return on equity | (4.70%) | |||
[1] | Average borrowings outstanding were $1,067,075 and $324,322, and the related average borrowing costs were 2.93% and 4.44% for the three months ended March 31, 2019 and 2018. | |||
[2] | As of March 31, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $228,508, representing collection opportunities for the Company. | |||
[3] | Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information. |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Major Components of Other Operating Expenses (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Other Operating Expenses [Abstract] | |
Directors' fees | $ 89 |
Miscellaneous taxes | 120 |
Computer expenses | 74 |
Depreciation and amortization | 23 |
Other expenses | 161 |
Total other operating expenses | $ 467 |
Selected Financial Ratios and_3
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net share data | |||||
Net asset value at the beginning of the period | $ 11,800 | ||||
Net investment loss | (0.15) | ||||
Income tax benefit | 0.03 | ||||
Net realized losses on investments | (1.44) | ||||
Net change in unrealized appreciation on investments | 0.94 | ||||
Net decrease in net assets resulting from operations | (0.62) | ||||
Issuance of common stock | (0.03) | ||||
Repurchase of common stock | $ 0 | ||||
Net investment income | $ 0 | ||||
Return of capital | $ 0 | ||||
Net realized gains on investments | 0 | ||||
Total distributions | 0 | ||||
Total decrease in net asset value | (0.65) | ||||
Net asset value at the end of the period | [1] | 11.15 | |||
Per share market value at beginning of period | 3.53 | ||||
Per share market value at end of period | $ 4.65 | ||||
Total return | [2] | (129.00%) | |||
Ratios/supplemental data | |||||
Total shareholders' equity (net assets) | $ 272,437,000 | $ 291,841,000 | $ 290,204,000 | $ 287,159,000 | |
Average net assets | $ 284,021,000 | ||||
Total expense ratio | [3],[4] | 10.02% | |||
Operating expenses to average net assets | [3] | 5.87% | |||
Net investment loss after income taxes to average net assets | [3] | (4.61%) | |||
[1] | Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018. | ||||
[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 operating expenses of $1,150, which formerly were the Company's, were now MSC's for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter. | ||||
[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) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)$ / shares | ||
Investment Holdings [Line Items] | ||
Undistributed net investment income per share | $ / shares | $ 0 | |
Undistributed net realized gains per share | $ / shares | $ 0 | |
Servicing fee | $ | $ 1,290 | |
Operating expenses | $ | $ 1,150 | |
Total expense ratio | 10.02% | [1],[2] |
Operating expense ratio | 5.87% | [1] |
Excluding Impact of Medallion Servicing Corp. Amounts [Member] | ||
Investment Holdings [Line Items] | ||
Total expense ratio | 11.75% | |
Operating expense ratio | 7.51% | |
Net investment income ratio | (4.49%) | |
[1] | MSC has assumed certain of the Company's servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company's, were now MSC's for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter. | |
[2] | Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Commitments And Contingencies [Abstract] | |
Employment agreements expiration description | Employment agreements expire at various dates through 2023 |
Future minimum payments | $ 4,500,000 |
Lease expiration date | Apr. 30, 2027 |
Minimal rental commitments | $ 16,822,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Medallion Bank [Member] | |||
Related Party Transaction [Line Items] | |||
Loan receivable to bank | $ 308,346,000 | ||
Medallion Servicing Corporation [Member] | |||
Related Party Transaction [Line Items] | |||
Interest income | 1,290,000 | ||
Medallion Fine Art Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Interest income | $ 10,000 | ||
Outstanding loan amount to Medallion Fine Art | $ 999,000 | ||
Medallion Fine Art Inc [Member] | Paid In Kind [Member] | |||
Related Party Transaction [Line Items] | |||
Interest rate on loan | 12.00% | ||
RPAC [Member] | |||
Related Party Transaction [Line Items] | |||
Interest income | $ 0 | ||
Interest rate on loan | 2.00% | ||
Officer [Member] | LAX Group, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Salary from related party | $ 171,000 | ||
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 [Member] | |||
Related Party Transaction [Line Items] | |||
Annual payment for services provided to the entity | $ 700,000 | ||
Note payable to the Petty Trust | $ 7,181,000 | ||
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] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Schedule of Other Related Party Transactions [Line Items] | |
Reimbursement of operating expenses | $ 250 |
Loan origination and servicing fees | 6 |
Total other income | $ 256 |
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 | Mar. 31, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Equity investments | $ 8,699 | $ 9,197 | |
Investment securities | 44,682 | 45,324 | |
Loans receivable | 1,024,200 | 1,017,882 | |
Carrying Amount [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 86,121 | 57,713 |
Equity investments | 8,699 | 9,197 | |
Investment securities | 44,682 | 45,324 | |
Loans receivable | 987,338 | 981,487 | |
Accrued interest receivable | [2] | 7,108 | 7,413 |
Financial liabilities | |||
Funds borrowed | [3] | 1,098,716 | 1,062,028 |
Accrued interest payable | [2] | 3,131 | 3,852 |
Fair Value Recurring [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 86,121 | 57,713 |
Equity investments | 8,699 | 9,197 | |
Investment securities | 44,682 | 45,324 | |
Loans receivable | 987,338 | 981,487 | |
Accrued interest receivable | [2] | 7,108 | 7,413 |
Financial liabilities | |||
Funds borrowed | [3] | 1,100,397 | 1,062,297 |
Accrued interest payable | [2] | $ 3,131 | $ 3,852 |
[1] | Categorized as level 1 within the fair value hierarchy. See Note 16. | ||
[2] | Categorized as level 3 within the fair value hierarchy. See Note 16. | ||
[3] | As of March 31, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,681 and $269. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Publicly traded retail notes traded at a premium to par | $ 1,681 | $ 269 |
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) - Fair Value Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Equity investments | $ 8,699 | $ 9,197 | ||
Available for sale investment securities | 44,682 | [1] | 45,324 | [2] |
Total | 53,381 | 54,521 | ||
Level 2 [Member] | ||||
Assets | ||||
Available for sale investment securities | 44,682 | [1] | 45,324 | [2] |
Total | 44,682 | 45,324 | ||
Level 3 [Member] | ||||
Assets | ||||
Equity investments | 8,699 | 9,197 | ||
Total | $ 8,699 | $ 9,197 | ||
[1] | Total unrealized income of $669, net of tax, was included in accumulated other comprehensive income (loss) for the three months ended March 31, 2019 related to these assets. | |||
[2] | Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Net change in unrealized Income on investments, net of tax | $ 669 | $ (82) |
Fair Value of Assets and Liab_5
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 | ||||
Mar. 31, 2019 | Mar. 31, 2018 | ||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Ending balance | $ 5,535,000 | ||||
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 | ||||
Gains (losses) included in earnings | (38,190,000) | ||||
Purchases, investments, and issuances | 7,000 | ||||
Sales, maturities, settlements, and distributions | (8,941,000) | ||||
Ending balance | 161,155,000 | ||||
Amounts related to held assets | [1] | (38,190,000) | |||
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 | ||||
Gains (losses) included in earnings | (8,000) | ||||
Purchases, investments, and issuances | 7,252,000 | ||||
Sales, maturities, settlements, and distributions | (3,812,000) | ||||
Ending balance | 93,620,000 | ||||
Amounts related to held assets | [1] | (10,000) | |||
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 | ||||
Gains (losses) included in earnings | 29,143,000 | ||||
Purchases, investments, and issuances | 462,000 | ||||
Sales, maturities, settlements, and distributions | (583,000) | ||||
Ending balance | 331,169,000 | ||||
Amounts related to held assets | [1] | 29,143,000 | |||
Fair Value, Measurements, Nonrecurring [Member] | Equity Investment [Member] | |||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Beginning balance | $ 9,197,000 | 9,521,000 | |||
Gains (losses) included in earnings | 598,000 | (993,000) | |||
Purchases, investments, and issuances | 50,000 | 935,000 | |||
Sales, maturities, settlements, and distributions | (1,146,000) | (5,000) | |||
Ending balance | 8,699,000 | 9,458,000 | |||
Amounts related to held assets | $ 196,000 | [2] | (993,000) | [1] | |
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 | ||||
Gains (losses) included in earnings | (1,915,000) | ||||
Ending balance | 5,535,000 | ||||
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 | ||||
Ending balance | $ 339,000 | ||||
[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 March 31, 2019. |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Impaired loans | $ 135,807 | $ 140,180 | |
Loan collateral in process of foreclosure | [1] | 49,808 | 49,495 |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets | |||
Impaired loans | 21,549 | 34,877 | |
Loan collateral in process of foreclosure | 49,808 | 49,495 | |
Total | 71,357 | 84,372 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | |||
Assets | |||
Impaired loans | 21,549 | 34,877 | |
Loan collateral in process of foreclosure | 49,808 | 49,495 | |
Total | $ 71,357 | $ 84,372 | |
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,930 as of March 31, 2019 and $3,134 as of December 31, 2018. |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) - Equity Investments [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
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 |
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 |
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 | 5,488,000 | 5,683,000 |
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 | 1,756,000 | 1,850,000 |
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 | |
Minimum [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 | $ 6,014,000 | $ 6,014,000 |
Equity Value | 0.96 | 0.96 |
Maximum [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 | $ 7,214,000 | $ 7,214,000 |
Equity Value | 4.44 | 4.54 |
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 ($) | Jul. 21, 2011 | Feb. 27, 2009 | Dec. 31, 2019 |
U.S. Treasury Securities [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
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 - Ad
Variable Interest Entities - Additional Information (Detail) | Oct. 31, 2018USD ($) |
Variable Interest Entity [Line Items] | |
Variable interest entity net gain | $ 25,325,000 |
Medallion Financing Trust I [Member] | |
Variable Interest Entity [Line Items] | |
Promissory note payable | $ 1,400,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Notes Payable to Banks [Member] | Apr. 30, 2019 |
Subsequent Event [Line Items] | |
Maturity date | Apr. 30, 2019 |
Extended maturity date | Dec. 15, 2020 |