Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MEDALLION FINANCIAL CORP | |
Entity Central Index Key | 0001000209 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,609,203 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-37747 | |
Entity Tax Identification Number | 04-3291176 | |
Entity Address, Address Line One | 437 MADISON AVENUE, 38th Floor | |
Entity Address, City or Town | NEW YORK | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 328-2100 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MFIN | |
Security Exchange Name | NASDAQ | |
9.000% Senior Notes due 2021 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 9.000% Senior Notes due 2021 | |
Trading Symbol | MFINL | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Cash | [1] | $ 21,724 | $ 23,842 | |
Federal funds sold | 33,291 | 33,871 | ||
Equity investments | 9,880 | 9,197 | ||
Investment securities | 47,422 | 45,324 | ||
Loans | 1,142,282 | 1,017,882 | ||
Allowance for losses | (43,113) | [2] | (36,395) | |
Net loans receivable | 1,099,169 | 981,487 | ||
Accrued interest receivable | 8,040 | 7,413 | ||
Property, equipment, and right-of-use lease asset, net | 13,544 | 1,222 | ||
Loan collateral in process of foreclosure | [3] | 53,539 | 49,495 | |
Goodwill | 150,803 | 150,803 | ||
Intangible assets, net | 52,898 | 53,982 | ||
Other assets | 29,444 | 25,210 | ||
Total assets | 1,519,754 | 1,381,846 | ||
Liabilities | ||||
Accounts payable and accrued expenses | [4] | 18,651 | 18,789 | |
Accrued interest payable | 3,511 | 3,852 | ||
Deposits | 962,987 | 848,040 | ||
Short-term borrowings | 42,503 | 55,178 | ||
Deferred tax liabilities and other tax payables | 5,597 | 6,973 | ||
Operating lease liabilities | 12,090 | |||
Long-term debt | 181,625 | 158,810 | ||
Total liabilities | 1,226,964 | 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- 27,560,539 shares at September 30, 2019 and 27,385,600 shares at December 31, 2018 issued) | 276 | 274 | ||
Additional paid in capital | 275,143 | 274,292 | ||
Treasury stock (2,951,243 shares at September 30, 2019 and December 31, 2018) | (24,919) | (24,919) | ||
Accumulated other comprehensive income (loss) | 1,240 | (82) | ||
Retained earnings | 11,746 | 13,043 | ||
Total stockholders’ equity | 263,486 | 262,608 | ||
Non-controlling interest in consolidated subsidiaries | 29,304 | 27,596 | ||
Total equity | 292,790 | 290,204 | ||
Total liabilities and equity | $ 1,519,754 | $ 1,381,846 | ||
Number of shares outstanding | 24,609,296 | 24,434,357 | ||
Book value per share | $ 10.71 | $ 10.75 | ||
[1] | Includes restricted cash of $2,970 as of September 30, 2019. | |||
[2] | Includes $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. | |||
[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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018. | |||
[4] | Includes the short-term portion of lease liabilities of $1,820 as of September 30, 2019. Refer to Note 8 for more details. | |||
[5] | Refer to Note 14 for details. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 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 | 27,560,539 | 27,385,600 |
Treasury stock,shares | 2,951,243 | 2,951,243 |
Restricted cash | $ 2,970 | |
Loan collateral in process of foreclosure, financed sales collateral to third parties | 6,091 | $ 3,134 |
Short term lease liabilities | $ 1,820 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Interest and fees on loans | $ 34,081,000 | $ 32,692,000 | $ 94,833,000 | $ 64,718,000 | [1] | |
Interest and dividends on investment securities | 521,000 | 430,000 | 1,756,000 | 1,032,000 | [1] | |
Medallion lease income | 38,000 | 30,000 | 109,000 | 100,000 | [1] | |
Interest income on investments | [1] | 3,287,000 | ||||
Interest income | 34,640,000 | 33,152,000 | 96,698,000 | |||
Total interest income/total investment income | [2] | 34,640,000 | 33,152,000 | 96,698,000 | 69,829,000 | [1] |
Interest on deposits | 6,003,000 | 5,064,000 | 16,409,000 | 9,264,000 | [1] | |
Interest on short-term borrowings | 730,000 | 1,698,000 | 2,616,000 | 3,557,000 | [1] | |
Interest on long-term debt | 2,492,000 | 2,125,000 | 6,743,000 | 3,991,000 | [1] | |
Interest expense | [1] | 3,551,000 | ||||
Total interest expense | [3] | 9,225,000 | 8,887,000 | 25,768,000 | 20,363,000 | [1] |
Net interest income/net investment income | 25,415,000 | 24,265,000 | 70,930,000 | 49,466,000 | [1] | |
Provision for loan losses | 8,337,000 | 18,205,000 | 36,851,000 | 48,781,000 | [1] | |
Net interest income after provision for loan losses | 17,078,000 | 6,060,000 | 34,079,000 | 685,000 | [1] | |
Other income (loss) | ||||||
Sponsorship and race winnings | 7,940,000 | 5,371,000 | 16,008,000 | 10,599,000 | [1] | |
Change in collateral value on in process of foreclosure | (113,000) | (1,265,000) | (4,204,000) | (1,361,000) | [1] | |
Gain on the extinguishment of debt | 4,145,000 | |||||
Gain on sale of loans | 5,488,000 | 5,488,000 | [1] | |||
Impairment of equity investments | (388,000) | (862,000) | [1] | |||
Other income | 1,047,000 | 235,000 | 1,471,000 | 515,000 | [1] | |
Total other income, net | 8,874,000 | 9,441,000 | 17,420,000 | 14,379,000 | [1] | |
Other expenses | ||||||
Salaries and employee benefits | 6,795,000 | 5,999,000 | 18,457,000 | 13,987,000 | [1] | |
Race team related expenses | 2,663,000 | 2,876,000 | 7,211,000 | 5,416,000 | [1] | |
Professional fees | 2,277,000 | 3,951,000 | 5,961,000 | 6,920,000 | [1] | |
Collection costs | 1,698,000 | 1,381,000 | 4,589,000 | 2,218,000 | [1] | |
Loan servicing fees | 1,364,000 | 1,185,000 | 3,851,000 | 2,313,000 | [1] | |
Rent expense | 592,000 | 615,000 | 1,769,000 | 1,449,000 | [1] | |
Regulatory fees | 252,000 | 563,000 | 1,147,000 | 1,145,000 | [1] | |
Amortization of intangible assets | 361,000 | 361,000 | 1,084,000 | 722,000 | [1] | |
Travel, meals, and entertainment | 300,000 | 313,000 | 770,000 | 1,122,000 | [1] | |
Other expenses | [4] | 2,050,000 | 2,220,000 | 6,399,000 | 5,206,000 | [1] |
Total other expenses | 18,352,000 | 19,464,000 | 51,238,000 | 40,498,000 | [1] | |
Income (loss) before income taxes/net investment loss before taxes | [5] | 7,600,000 | (3,963,000) | 261,000 | (25,434,000) | [1] |
Income tax (provision) benefit | (165,000) | 117,000 | 1,926,000 | 4,474,000 | [1] | |
Net income (loss) after taxes/net investment loss after taxes | 7,435,000 | (3,846,000) | 2,187,000 | (20,960,000) | [1] | |
Net realized losses on investments | [1],[6] | (34,745,000) | ||||
Income tax benefit | [1] | 8,426,000 | ||||
Total net realized losses on investments | [1] | (26,319,000) | ||||
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries | [1] | 29,115,000 | ||||
Net change in unrealized depreciation on investments other than securities | [1] | (1,915,000) | ||||
Net change in unrealized depreciation on investments | [1] | (4,403,000) | ||||
Income tax provision | [1] | (8,122,000) | ||||
Net unrealized appreciation on investments | [1] | 14,675,000 | ||||
Net realized/unrealized losses on investments | [1] | (11,644,000) | ||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 7,435,000 | (3,846,000) | 2,187,000 | (32,604,000) | [1] | |
Less: income attributable to the noncontrolling interest | 2,460,000 | 851,000 | 3,484,000 | 1,614,000 | [1] | |
Total net income (loss) attributable to Medallion Financial Corp./net decrease on net assets resulting from operations | $ 4,975,000 | $ (4,697,000) | $ (1,297,000) | $ (34,218,000) | [1] | |
Basic net income (loss) per share | $ 0.20 | $ (0.19) | $ (0.05) | $ (1.41) | [1] | |
Diluted net income (loss) per share | $ 0.20 | $ (0.19) | $ (0.05) | $ (1.41) | [1] | |
Weighted average common shares outstanding | ||||||
Basic | 24,361,680 | 24,235,242 | 24,336,677 | 24,207,273 | [1] | |
Diluted | 24,607,167 | 24,235,242 | 24,336,677 | 24,207,273 | [1] | |
Controlled Subsidiary Investment [Member] | ||||||
Dividend income from controlled subsidiaries | [1] | $ 28,000 | ||||
Interest income | [1] | 10,000 | ||||
Affiliate Investment [Member] | ||||||
Interest income | [1] | $ 654,000 | ||||
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | |||||
[2] | Included in interest and investment income is $212 and $637 of paid in kind interest for the three and nine months ended September 30, 2019 and $450 and $1,428 for the comparable 2018 periods. | |||||
[3] | Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods. | |||||
[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 | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Interest paid in kind | $ 212 | $ 450 | $ 637 | $ 1,428 | ||
Average borrowings outstanding | $ 1,169,182 | $ 1,255,945 | $ 1,121,693 | $ 1,226,896 | ||
Average borrowing costs rate | 3.13% | 2.81% | 3.07% | 2.22% | ||
Net Gain/losses on investment securities of affiliated | [1],[2] | $ (34,745) | ||||
Affiliated Entity [Member] | ||||||
Net Gain/losses on investment securities of affiliated | $ 0 | |||||
Medallion Bank [Member] | ||||||
Revenue | $ 256 | |||||
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | |||||
[2] | There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018. |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | [1] | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | $ 7,435 | $ (3,846) | $ 2,187 | $ (32,604) | |
Other comprehensive income (loss), net of tax | 95 | (214) | 1,322 | (469) | |
Total comprehensive income (loss) | 7,530 | (4,060) | 3,509 | (33,073) | |
Less comprehensive income attributable to the noncontrolling interest | 2,460 | 851 | 3,484 | 1,614 | |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | $ 5,070 | $ (4,911) | $ 25 | $ (34,687) | |
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
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] | Net Unrealized Appreciation on Investment Net of Tax [Member] | |
Balance at Dec. 31, 2017 | $ 287,159 | $ 273 | $ 273,716 | $ (24,919) | $ 287,159 | |||||||
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017 | $ (65,592) | $ 103,681 | ||||||||||
Balance, shares at Dec. 31, 2017 | 27,294,327 | (2,951,243) | ||||||||||
Net decrease in net assets resulting from operations | (14,874) | (14,874) | ||||||||||
Net decrease in net assets resulting from operations | Investment Company Accounting [Member] | (38,299) | 23,425 | ||||||||||
Stock based compensation expense | 152 | $ 1 | 151 | 152 | ||||||||
Issuance of restricted stock, net, shares | 95,726 | |||||||||||
Ending balance at Mar. 31, 2018 | 272,437 | $ 274 | 273,867 | $ (24,919) | 272,437 | |||||||
Ending balance (Investment Company Accounting [Member]) at Mar. 31, 2018 | (103,891) | 127,106 | ||||||||||
Ending balance, shares at Mar. 31, 2018 | 27,390,053 | (2,951,243) | ||||||||||
Adoption of Bank Holding Company Accounting at Mar. 31, 2018 | 27,065 | $ 23,215 | $ 27,065 | |||||||||
Adoption of Bank Holding Company Accounting (Investment Company Accounting [Member]) at Mar. 31, 2018 | 103,891 | (127,106) | ||||||||||
Balance at April 2, 2018 at Mar. 31, 2018 | 299,502 | $ 274 | 273,867 | $ (24,919) | 23,215 | 272,437 | 27,065 | |||||
Balance at Dec. 31, 2017 | 287,159 | $ 273 | 273,716 | $ (24,919) | 287,159 | |||||||
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017 | (65,592) | 103,681 | ||||||||||
Balance, shares at Dec. 31, 2017 | 27,294,327 | (2,951,243) | ||||||||||
Net income (loss) | [1] | (32,604) | ||||||||||
Ending balance at Sep. 30, 2018 | 280,415 | $ 274 | 274,163 | $ (24,919) | 3,871 | $ (469) | 252,920 | 27,495 | ||||
Ending balance, shares at Sep. 30, 2018 | 27,391,295 | (2,951,243) | ||||||||||
Balance at Dec. 31, 2017 | 287,159 | $ 273 | 273,716 | $ (24,919) | 287,159 | |||||||
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017 | (65,592) | 103,681 | ||||||||||
Balance, shares at Dec. 31, 2017 | 27,294,327 | (2,951,243) | ||||||||||
Net change in unrealized gains (losses) 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) | |||||||||
Balance at Mar. 31, 2018 | $ 272,437 | $ 274 | 273,867 | $ (24,919) | 272,437 | |||||||
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018 | (103,891) | 127,106 | ||||||||||
Balance, shares at Mar. 31, 2018 | 27,390,053 | (2,951,243) | ||||||||||
Net income (loss) | (13,884) | (14,647) | (14,647) | 763 | ||||||||
Distributions to non- controlling interest | (592) | (592) | ||||||||||
Stock based compensation expense | 145 | 145 | 145 | |||||||||
Issuance of restricted stock, net, shares | 13 | |||||||||||
Net change in unrealized gains (losses) on investments, net of tax | (255) | (255) | (255) | |||||||||
Ending balance at Jun. 30, 2018 | 284,916 | $ 274 | 274,012 | $ (24,919) | 8,568 | (255) | 257,680 | 27,236 | ||||
Ending balance, shares at Jun. 30, 2018 | 27,390,066 | (2,951,243) | ||||||||||
Balance at Mar. 31, 2018 | 272,437 | $ 274 | 273,867 | $ (24,919) | 272,437 | |||||||
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018 | $ (103,891) | $ 127,106 | ||||||||||
Balance, shares at Mar. 31, 2018 | 27,390,053 | (2,951,243) | ||||||||||
Net income (loss) | (17,730) | |||||||||||
Ending balance at Sep. 30, 2018 | 280,415 | $ 274 | 274,163 | $ (24,919) | 3,871 | (469) | 252,920 | 27,495 | ||||
Ending balance, shares at Sep. 30, 2018 | 27,391,295 | (2,951,243) | ||||||||||
Balance at Jun. 30, 2018 | 284,916 | $ 274 | 274,012 | $ (24,919) | 8,568 | (255) | 257,680 | 27,236 | ||||
Balance, shares at Jun. 30, 2018 | 27,390,066 | (2,951,243) | ||||||||||
Net income (loss) | (3,846) | (4,697) | (4,697) | 851 | ||||||||
Distributions to non- controlling interest | (592) | (592) | ||||||||||
Stock based compensation expense | 151 | 151 | 151 | |||||||||
Issuance of restricted stock, net, shares | 1,229 | |||||||||||
Net change in unrealized gains (losses) on investments, net of tax | (214) | (214) | (214) | |||||||||
Ending balance at Sep. 30, 2018 | 280,415 | $ 274 | 274,163 | $ (24,919) | 3,871 | (469) | 252,920 | 27,495 | ||||
Ending balance, shares at Sep. 30, 2018 | 27,391,295 | (2,951,243) | ||||||||||
Balance at Dec. 31, 2018 | $ 290,204 | $ 274 | 274,292 | $ (24,919) | 13,043 | (82) | 262,608 | 27,596 | ||||
Balance, shares at Dec. 31, 2018 | 24,434,357 | 27,385,600 | (2,951,243) | |||||||||
Net income (loss) | $ 1,395 | 1,228 | 1,228 | 167 | ||||||||
Distributions to non- controlling interest | (592) | (592) | ||||||||||
Stock based compensation expense | 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 (losses) 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 | 27,546,999 | (2,951,243) | ||||||||||
Balance at Dec. 31, 2018 | $ 290,204 | $ 274 | 274,292 | $ (24,919) | 13,043 | (82) | 262,608 | 27,596 | ||||
Balance, shares at Dec. 31, 2018 | 24,434,357 | 27,385,600 | (2,951,243) | |||||||||
Net income (loss) | $ 2,187 | |||||||||||
Net change in unrealized gains (losses) on investments, net of tax | 1,322 | |||||||||||
Ending balance at Sep. 30, 2019 | $ 292,790 | $ 276 | 275,143 | $ (24,919) | 11,746 | 1,240 | 263,486 | 29,304 | ||||
Ending balance, shares at Sep. 30, 2019 | 24,609,296 | 27,560,539 | (2,951,243) | |||||||||
Balance at Mar. 31, 2019 | $ 291,841 | $ 275 | 274,456 | $ (24,919) | 14,271 | 587 | 264,670 | 27,171 | ||||
Balance, shares at Mar. 31, 2019 | 27,546,999 | (2,951,243) | ||||||||||
Net income (loss) | (6,643) | (7,500) | (7,500) | 857 | ||||||||
Distributions to non- controlling interest | (592) | (592) | ||||||||||
Stock based compensation expense | 340 | 340 | 340 | |||||||||
Issuance of restricted stock, net | 0 | $ 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | |||
Issuance of restricted stock, net, shares | 4,751 | |||||||||||
Forfeiture of restricted stock, net | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Forfeiture of restricted stock, net, shares | (949) | |||||||||||
Net change in unrealized gains (losses) on investments, net of tax | 558 | 558 | 558 | |||||||||
Ending balance at Jun. 30, 2019 | 285,504 | $ 275 | 274,796 | $ (24,919) | 6,771 | 1,145 | 258,068 | 27,436 | ||||
Ending balance, shares at Jun. 30, 2019 | 27,550,801 | (2,951,243) | ||||||||||
Net income (loss) | 7,435 | 4,975 | 4,975 | 2,460 | ||||||||
Distributions to non- controlling interest | (592) | (592) | ||||||||||
Stock based compensation expense | 348 | $ 1 | 347 | 348 | ||||||||
Issuance of restricted stock, net | 0 | $ 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | |||
Issuance of restricted stock, net, shares | 10,417 | |||||||||||
Forfeiture of restricted stock, net | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Forfeiture of restricted stock, net, shares | (679) | |||||||||||
Net change in unrealized gains (losses) on investments, net of tax | 95 | 95 | 95 | |||||||||
Ending balance at Sep. 30, 2019 | $ 292,790 | $ 276 | $ 275,143 | $ (24,919) | $ 11,746 | $ 1,240 | $ 263,486 | $ 29,304 | ||||
Ending balance, shares at Sep. 30, 2019 | 24,609,296 | 27,560,539 | (2,951,243) | |||||||||
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | $ 2,187,000 | $ (32,604,000) | [1] | |
Adjustments to reconcile net loss/net decrease in net assets resulting from operations to net cash provided by operating activities: | ||||
Provision for loan losses | 36,851,000 | 48,781,000 | [1] | |
Paid-in-kind interest | (637,000) | (1,428,000) | [1] | |
Depreciation and amortization | 6,014,000 | 2,995,000 | [1] | |
(Decrease) increase in deferred and other tax liabilities | (1,375,000) | 8,676,000 | [1] | |
Amortization of origination fees, net | 3,753,000 | 2,192,000 | [1] | |
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 12,714,000 | |||
Net change in loan collateral in process of foreclosure | 9,126,000 | 3,258,000 | [1] | |
Net realized losses on sale of investments | (1,810,000) | (4,726,000) | [1] | |
Net change in unrealized depreciation on investments | 1,299,000 | 5,380,000 | [1] | |
Stock-based compensation expense | 853,000 | 446,000 | [1] | |
Gain on extinguishment of debt | (4,145,000) | |||
(Increase) decrease in accrued interest receivable | (627,000) | 486,000 | [1] | |
Increase in other assets | (4,890,000) | (7,173,000) | [1] | |
Decrease in accounts payable and accrued expenses | (1,763,000) | (675,000) | [1] | |
Increase (decrease) in accrued interest payable | (341,000) | 41,000 | [1] | |
Loans originated | [1] | (8,193,000) | ||
Proceeds from principal receipts, sales, and maturities of loans | [1] | 13,279,000 | ||
Capital returned by Medallion Bank and other controlled subsidiaries, net | [1] | 93,000 | ||
Net change in unrealized depreciation on investment other than securities | [1] | 1,915,000 | ||
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries | [1] | (29,115,000) | ||
Net realized losses on investments | [1],[2] | 34,745,000 | ||
Increase in other liabilities | [1] | 3,159,000 | ||
Net cash provided by operating activities | 57,209,000 | 41,532,000 | [1] | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Loans originated | (374,642,000) | (256,933,000) | [1] | |
Proceeds from principal receipts, sales, and maturities of loans | 188,226,000 | 240,915,000 | [1] | |
Purchases of investments | (6,849,000) | (8,304,000) | [1] | |
Proceeds from principal receipts, sales, and maturities of investments | 5,902,000 | 2,475,000 | [1] | |
Net cash used for investing activities | (187,363,000) | (21,847,000) | [1] | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from time deposits and funds borrowed | 450,192,000 | 336,108,000 | [1] | |
Repayments of time deposits and funds borrowed | (324,960,000) | (253,497,000) | [1] | |
Purchase of federal funds | 4,000,000 | 8,000,000 | [1] | |
Repayments of federal funds | [1] | (8,000,000) | ||
Distributions to noncontrolling interests | (1,776,000) | (1,184,000) | [1] | |
Payments of declared distributions | [1] | (65,000) | ||
Net cash provided by financing activities | 127,456,000 | 81,362,000 | [1] | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (2,698,000) | 101,047,000 | [1] | |
Cash and cash equivalents and restricted cash, beginning of period | [3] | 57,713,000 | 42,513,000 | [1] |
Cash and cash equivalents and restricted cash, end of period | [4] | 55,015,000 | 143,560,000 | [1] |
SUPPLEMENTAL INFORMATION | ||||
Cash paid during the period for interest | 24,252,000 | 17,381,000 | [1] | |
Cash paid during the period for income taxes | 135,000 | 52,000 | [1] | |
Deposit | [5] | 21,724,000 | ||
NON-CASH INVESTING | ||||
Loans transferred to loan collateral in process of foreclosure | $ 25,884,000 | 19,472,000 | [1] | |
Previously Unconsolidated Subsidiaries [Member] | ||||
SUPPLEMENTAL INFORMATION | ||||
Cash, cash equivalents and federal funds sold | 29,923,000 | |||
Medallion Bank [Member] | ||||
SUPPLEMENTAL INFORMATION | ||||
Deposit | $ 100,000 | |||
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | |||
[2] | There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018. | |||
[3] | The beginning balance for the nine months ended September 30, 2018 includes $29,923 of cash, cash equivalents and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank. | |||
[4] | Includes federal funds sold. | |||
[5] | Includes restricted cash of $2,970 as of September 30, 2019. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 9 Months Ended |
Sep. 30, 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. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies. The Bank was 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 the Bank’s affiliates that have extensive prior experience in these asset groups. Subsequent to its formation, the 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 originated 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 the Bank. The Company has assigned all of its loan servicing rights for the Bank, which consists of servicing taxi medallion loans originated by the Bank, to MSC, which bills and collects the related service fee income from the 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 19. 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 $36,139,000 at September 30, 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, some of which are leased to fleet operators while being held for sale. The 159 medallions are carried at a net realizable value of $3,091,000 in other assets on the Company’s consolidated balance sheet at September 30, 2019, compared to a net realizable value of $4,305,000 and $5,535,000 at December 31, 2018 and September 30, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below. 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, the 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 the Bank and other controlled subsidiaries for such prior periods. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 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 $9,880,000 and $9,197,000 at September 30, 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. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $236,000 at September 30, 2019 and $154,000 at December 31, 2018, and $21,000 and $46,000 was amortized to interest income for the three and nine months ended September 30, 2019, and $26,000 and $47,000 was amortized to interest income for the three and six months ended September 30, 2018. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed . Other Investment Valuation (Investment Company Accounting) Prior to April 2, 2018, under the 1940 Act, the Company’s investment in the 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 the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the 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 activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties continued. The Company incorporated these new factors in the Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the first quarter of 2018. Refer to Note 6 for additional details. 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 September 30, 2019 and December 31, 2018, net loan origination costs were $17,867,000 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 to income for the three months ended September 30, 2019 and 2018 was $1,364,000 and $1,147,000, and was $3,753,000 and $2,192,000 ($3,065,000 when combined with the Bank) for the comparable nine month period. 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 be impaired. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged-off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation consumer loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded to write the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as a recovery. Total loans more than 90 days past due were $8,123,000 at September 30, 2019, or 0.73% of the total loan portfolio, compared to $20,154,000, or 2.03% at December 31, 2018. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a trouble debt restructuring (“TDR”). The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before it reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in fiscal year 2019, all consumer loans which are party to a bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance. 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 $30,295,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at September 30, 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 $125,818,000 at September 30, 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 September 30, 2019 and December 31, 2018. The Company assigned its servicing rights of the 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 the 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 $4,608,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank’s general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032,000. 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 quarterly review by management to determine whether additional impairment testing is needed, said testing which is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,898,000, $53,982,000 and $59,958,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended September 30, 2019 and 2018, and $1,084,000 and $722,000 of amortization expense on the intangible assets for the nine months ended September 30, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $6,161,000, $9,048,000, and $10,607,000 were outstanding at September 30, 2019, December 31, 2018, and September 30, 2018, and of which $713,000 and $1,780,000 were amortized to interest income for the three months ended September 30, 2019 and 2018, and of which $2,886,000 and $1,780,000 were amortized to interest income for the nine months ended September 30, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on the 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) September 30, 2019 December 31, 2018 Brand-related intellectual property $ 20,350 $ 21,176 Home improvement contractor relationships 6,383 6,641 Race organization 26,165 26,165 Total intangible assets $ 52,898 $ 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 $109,000 and $131,000 for the three months ended September 30, 2019 and 2018, and was $313,000 and $289,000 for the comparable nine months. 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 $613,000 and $558,000 for the three months ended September 30, 2019 and 2018, and was $1,731,000 and $1,322,000 for the comparable nine months. 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 $5,589,000, $4,461,000, and $4,859,000 as of September 30, 2019, December 31, 2018, and September 30, 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 sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized when the Company’s performance obligations are completed in according with 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 stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2019 2018 2019 2018 Net income (loss)/net decrease in net assets resulting from operations available to common stockholders $ 4,975 $ (4,697 ) $ (1,297 ) $ (34,218 ) Weighted average common shares outstanding applicable to basic EPS 24,361,680 24,235,242 24,336,677 24,207,273 Effect of dilutive stock options 16,543 — — — Effect of restricted stock grants 228,944 — — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,607,167 24,235,242 24,336,677 24,207,273 Basic income (loss) per share $ 0.20 $ (0.19 ) $ (0.05 ) $ (1.41 ) Diluted income (loss) per share 0.20 (0.19 ) (0.05 ) (1.41 ) Potentially dilutive common shares excluded from the above calculations aggregated 468,055 and 115,000 shares as of September 30, 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 nine months ended September 30, 2019 and 2018, the Company issued 178,266 and 101,010 of restricted shares of stock-based compensation awards, 375,481 and 39,000 shares of stock options, and 26,040 and no restricted stock units and recognized $348,000 and $853,000, or $0.01 and $0.03 per share, for the 2019 third quarter and nine months, and $151,000 and $466,000, or $0.01 and $0.02, per share, for each of the comparable 2018 periods, of non-cash stock-based compensation expense related to the grants. As of September 30, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,663,000, which is expected to be recognized over the next 14 quarters (see Note 10). Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, 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 could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of September 30, 2019, the Bank’s Tier 1 leverage ratio was 15.91%. 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 September 30, 2019 December 31, 2018 Common equity Tier 1 capital — — $ 153,580 $ 141,608 Tier 1 capital — — 179,883 167,911 Total capital — — 194,436 180,917 Average assets — — 1,130,642 1,059,461 Risk-weighted assets — — 1,120,179 993,374 Leverage ratio (1) 4.0 % 5.0 % 15.9 % 15.8 % Common equity Tier 1 capital ratio (2) 7.0 6.5 13.7 14.3 Tier 1 capital ratio (3) 8.5 8.0 16.1 16.9 Total capital ratio (3) 10.5 10.0 17.4 18.2 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In 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 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition. In January 2017, the FASB issued ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are eff |
Investment Securities (Bank Hol
Investment Securities (Bank Holding Company Accounting) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule Of Investments [Abstract] | |
Investment Securities (Bank Holding Company Accounting) | (3) INVESTMENT SECURITIES (Bank Holding Company Accounting) Fixed maturity securities available for sale as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 34,431 $ 569 $ (65 ) $ 34,935 State and municipalities 12,279 262 (54 ) 12,487 Total $ 46,710 $ 831 $ (119 ) $ 47,422 December 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 September 30, 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 $ 35 $ 35 Due after one year through five years 12,416 12,497 Due after five years through ten years 10,267 10,417 Due after ten years 23,992 24,473 Total $ 46,710 $ 47,422 The following tables show information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position. Less than Twelve Months Twelve Months and Over September 30, 2019 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (39 ) $ 4,083 $ (26 ) $ 5,075 State and municipalities (1 ) 169 (53 ) 2,770 Total $ (40 ) $ 4,252 $ (79 ) $ 7,845 Less than Twelve Months Twelve Months and Over December 31, 2018 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018. As of September 30, 2019 As of December 31, 2018 (Dollars in thousands) Amount As a Percent of Gross Loans Amount As a Percent of Gross Loans Recreation $ 706,393 62 % $ 587,038 58 % Home improvement 230,726 20 183,155 18 Commercial 68,209 6 64,083 6 Medallion 136,954 12 183,606 18 Total gross loans 1,142,282 100 % 1,017,882 100 % Allowance for loan losses (43,113 ) (36,395 ) Total net loans $ 1,099,169 $ 981,487 The following tables show the activity of the gross loans for the three and nine months ended September 30, 2019. Three Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Total Gross loans – June 30, 2019 $ 668,540 $ 209,549 $ 64,442 $ 145,944 $ 1,088,475 Loan originations 82,662 42,641 4,750 — 130,053 Principal payments (40,790 ) (20,729 ) (375 ) (4,013 ) (65,907 ) Charge-offs, net (3,489 ) (51 ) (819 ) (1,535 ) (5,894 ) Transfer to loans in process of foreclosure, net (3,429 ) — — (3,005 ) (6,434 ) Other 2,899 (684 ) 211 (437 ) 1,989 Gross loans – September 30, 2019 $ 706,393 $ 230,726 $ 68,209 $ 136,954 $ 1,142,282 Nine Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Total Gross loans – December 31, 2018 $ 587,038 $ 183,155 $ 64,083 $ 183,606 $ 1,017,882 Loan originations 248,989 102,821 14,520 — 366,330 Principal payments (113,680 ) (53,508 ) (9,789 ) (10,612 ) (187,589 ) Charge-offs, net (10,853 ) (295 ) (819 ) (18,166 ) (30,133 ) Transfer to loans in process of foreclosure, net (10,311 ) — — (15,573 ) (25,884 ) Other 5,210 (1,447 ) 214 (2,301 ) 1,676 Gross loans – September 30, 2019 $ 706,393 $ 230,726 $ 68,209 $ 136,954 $ 1,142,282 The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018. Three Months Ended September 30, Nine Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Allowance for loan losses – beginning balance $ 40,670 $ 21,425 $ 36,395 $ — (1) Charge-offs Recreation (5,444 ) (4,825 ) (16,366 ) (9,471 ) Home improvement (568 ) (659 ) (1,655 ) (1,220 ) Commercial (819 ) — (819 ) — Medallion (2,378 ) (6,457 ) (20,408 ) (12,737 ) Total charge-offs (9,209 ) (11,941 ) (39,248 ) (23,428 ) Recoveries Recreation 1,955 1,318 5,513 3,217 Home improvement 517 367 1,360 606 Commercial — — — 4 Medallion 843 110 2,242 304 Total recoveries 3,315 1,795 9,115 4,131 Net charge-offs (2) (5,894 ) (10,146 ) (30,133 ) (19,297 ) Provision for loan losses 8,337 18,205 36,851 48,781 Allowance for loan losses – ending balance $ 43,113 (3) $ 29,484 $ 43,113 (3) $ 29,484 (1) Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for the six months ended September 30, 2018. ( 2 ) As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company. ( 3 ) Includes $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. The following tables set forth the composition of the allowance for loan losses by type as of September 30, 2019 and December 31, 2018. September 30, 2019 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Recreation $ 15,927 37 % 2.25 % Home improvement 2,235 5 0.97 Commercial — — 0.00 Medallion 24,951 58 18.22 Total $ 43,113 100 % 3.77 % December 31, 2018 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category 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. (Dollars in thousands) September 30, 2019 December 31, 2018 September 30, 2018 Total nonaccrual loans $ 27,078 $ 34,877 $ 45,765 Interest foregone quarter to date 403 487 563 Amount of foregone interest applied to principal in the quarter 75 166 350 Interest foregone year to date 915 1,153 1,032 Amount of foregone interest applied to principal in the year 244 535 987 Interest foregone life to date 2,432 1,952 8,530 Amount of foregone interest applied to principal life to date 655 1,214 3,412 Percentage of nonaccrual loans to gross loan portfolio 2 % 3 % 4 % The following tables present the performance status of loans as of September 30, 2019 and December 31, 2018. September 30, 2019 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 699,685 $ 6,708 $ 706,393 0.95 % Home improvement 230,487 239 230,726 0.10 Commercial 56,178 12,031 68,209 17.64 Medallion 128,854 8,100 136,954 5.91 Total $ 1,115,204 $ 27,078 $ 1,142,282 2.37 % 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 days, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming. The following tables provide additional information on attributes of the nonperforming loan portfolio as of September 30, 2019 and 2018, and December 31, 2018, all of which had an allowance recorded against the principal balance. September 30, 2019 For the Three Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With an allowance recorded Recreation $ 6,708 $ 6,708 $ 256 $ 6,687 $ 152 $ 6,921 $ 366 Home improvement 239 239 4 243 2 245 2 Commercial 12,031 12,126 — 9,616 36 6,827 321 Medallion 8,100 8,660 3,160 13,418 27 11,279 39 Total nonperforming loans with an allowance $ 27,078 $ 27,733 $ 3,420 $ 29,964 $ 217 $ 25,272 $ 728 December 31, 2018 September 30, 2018 For the Three Months Ended September 30, 2018 Six Months Ended September 30, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized With an allowance recorded Recreation $ 5,788 $ 5,788 $ 204 $ 5,075 $ 5,075 $ 180 $ 5,494 $ 106 $ 4,496 $ 231 Home improvement 137 137 3 167 167 3 178 — 119 — Commercial 3,834 3,929 — 5,403 5,814 100 7,047 (82 ) 5,838 (12 ) Medallion 25,118 26,237 22,035 38,057 39,038 10,085 55,065 101 54,917 215 Total nonperforming loans with an allowance $ 34,877 $ 36,091 $ 22,242 $ 48,702 $ 50,094 $ 10,368 $ 67,784 $ 125 $ 65,370 $ 434 The following tables show the aging of all loans as of September 30, 2019 and December 31, 2018. Days Past Due September 30, 2019 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recorded Investment 90 Days and Accruing Recreation $ 20,615 $ 6,771 $ 4,431 $ 31,817 $ 651,122 $ 682,939 $ — Home improvement 687 280 228 1,195 232,804 233,999 — Commercial — — 276 276 67,933 68,209 — Medallion 31,062 1,756 3,188 36,006 96,541 132,547 — Total $ 52,364 $ 8,807 $ 8,123 $ 69,294 $ 1,048,400 $ 1,117,694 $ — (1) Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs. Days Past Due December 31, 2018 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recorded Investment > 90 Days and Accruing 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 202%, 220%, and 224% as of September 30, 2019, December 31, 2018, and September 30, 2018. The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2019. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Medallion loans - 2019 three months 1 $ 758 $ 758 Recreation loans - 2019 three months 40 587 505 Medallion loans - 2019 nine months 10 $ 4,041 $ 4,041 Recreation loans - 2019 nine months 276 4,109 2,619 During the twelve months ended September 30, 2019, three medallion loans modified as troubled debt restructurings were in default and had an investment value of $812,000 as of September 30, 2019, net of a $365,000 allowance for loan losses, and 191 recreation loans modified as trouble debt restructurings were in default and had an investment value of $1,727,000 as of September 30, 2019, net of a $66,000 allowance for loan losses. The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2018. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Medallion loans - 2018 three months 10 $ 4,810 $ 4,810 Medallion loans - 2018 nine months 17 $ 7,505 $ 7,505 During the twelve months ended September 30, 2018, three loans modified as troubled debt restructurings were in default and had an investment value of $1,305,000 as of September 30, 2018, net of a $773,000 allowance for loan losses. The following tables show the activity of the loans in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2019. Three Months Ended September 30, 2019 (Dollars in thousands) Recreation Medallion Total Loans in process of foreclosure – June 30, 2019 $ 955 $ 51,413 $ 52,368 Transfer from loans, net 3,429 3,005 6,434 Sales (1,604 ) (387 ) (1,991 ) Cash payments received — (1,556 ) (1,556 ) Collateral valuation adjustments (1,603 ) (113 ) (1,716 ) Loans in process of foreclosure – September 30, 2019 $ 1,177 $ 52,362 $ 53,539 Nine Months Ended September 30, 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 10,311 15,573 25,884 Sales (5,715 ) (899 ) (6,614 ) Cash payments received — (6,100 ) (6,100 ) Collateral valuation adjustments (4,922 ) (4,204 ) (9,126 ) Loans in process of foreclosure – September 30, 2019 $ 1,177 $ 52,362 $ 53,539 |
Unrealized Appreciation (Deprec
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments | 9 Months Ended |
Sep. 30, 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 change in the Company’s unrealized appreciation (depreciation) on investments for the three months ended March 31, 2018. (Dollars in thousands) Medallion Loans Commercial Loans Investments in Subsidiaries Equity Investments Investments Other Than Securities 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 components of unrealized and realized gains and losses in the investment portfolio for the three months ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Three Months Ended 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 | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Investments in Medallion Bank and Other Controlled Subsidiaries | (6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES (Investment Company Accounting) 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 the Bank’s results. The following table presents information derived from the 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 Ended March 31, 2018 Statement of comprehensive income 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 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 the 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 the Bank. |
Funds Borrowed
Funds Borrowed | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (7) FUNDS BORROWED The outstanding balances of funds borrowed were as follows: Payments Due for the Twelve Months Ending September 30, (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter September 30, 2019 December 31, 2018 Interest Rate (1) Deposits $ 348,385 $ 182,587 $ 225,560 $ 112,413 $ 94,042 $ — $ 962,987 $ 848,040 2.37 % SBA debentures and borrowings 23,093 8,500 — 5,000 5,000 32,500 74,093 80,099 3.41 Retail and privately placed notes — 33,625 — — 36,000 — 69,625 33,625 8.61 Notes payable to banks 7,652 27,370 280 280 70 — 35,652 59,615 4.25 Preferred securities — — — — — 33,000 33,000 33,000 4.24 Other borrowings 11,758 — — — — — 11,758 7,649 2.09 Total $ 390,888 $ 252,082 $ 225,840 $ 117,693 $ 135,112 $ 65,500 $ 1,187,115 $ 1,062,028 2.91 % (1) Weighted average contractual rate as of September 30, 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) September 30, 2019 Three months or less $ 84,392 Over three months through six months 66,100 Over six months through one year 197,893 Over one year 614,602 Total deposits $ 962,987 (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). The line, which currently terminates on November 15, 2019, is under negotiation to be extended. 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 September 30, 2019, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $74,093,000 was outstanding, including $23,093,000 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 September 30, 2019. (Dollars in thousands) Borrower # of Lenders/ Notes Note Dates Maturity Dates Type Note Amounts Balance Outstanding at September 30, 2019 Payment Average Interest Rate at September 30, 2019 Interest Rate Index (1) Medallion Financial Corp. 5/5 4/11 - 8/14 9/20 - 3/21 Term loans and demand notes secured by pledged loans (2) $ 23,231 (2) $ 23,231 Interest only (3) 4.63 % Various (3) Medallion Chicago 2/23 11/11 - 12/11 2/21 Term loans secured by owned Chicago medallions (4) 18,449 11,231 $134 of principal & interest paid monthly 3.50 % N/A Medallion Funding 1/1 11/18 12/23 1,400 1,190 $70 principal & interest paid quarterly 4.00 % N/A $ 43,080 $ 35,652 (1) At September 30, 2019, 30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%, and the prime rate was 5.00%. (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 $81. (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 2019 first 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. On July 6, 2019, the Company paid $10,819,000 at maturity in satisfaction of all its outstanding obligations under one of its credit facilities. In connection with this payment, the Company obtained a waiver from one of its other lenders, with a term note of $3,096,000, of certain resulting repayment and other obligation, which waiver expires on December 1, 2019. (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 August 2019, the private placement was reopened and an additional $6,000,000 of notes was issued to certain institutional investors. 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 (2.09% at September 30, 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 September 30, 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 15 for more details). At December 31, 2018, the total outstanding on these notes was $7,149,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. As of September 30, 2019, $7,258,000 was outstanding on these notes. Additionally, RPAC has a short term promissory note to an unrelated party for $500,000 due on December 31, 2019. In September 2019, the Company issued federal funds of $4,000,000 at a 2.25% interest rate, which funds were repaid in October 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 | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | (8) LEASES The Company has leased premises that expire at various dates through November 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 and nine months ended September 30, 2019. (Dollars in thousands) For the Three Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019 Operating lease costs $ 531 $ 1,593 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 556 1,680 Right-of-use asset obtained in exchange for lease liability 29 (1 ) The following table presents the breakout of the operating leases as of September 30, 2019. (Dollars in thousands) September 30, 2019 Operating lease right-of-use assets $ 12,559 Other current liabilities 1,820 Operating lease liabilities 12,090 Total operating lease liabilities 13,910 Weighted average remaining lease term 3.7 years Weighted average discount rate 4.00 % At September 30, 2019, maturities of the lease liabilities were as follows. (Dollars in thousands) Remainder of 2019 $ 600 2020 2,397 2021 2,295 2022 2,228 2023 2,136 Thereafter 6,042 Total lease payments $ 15,698 Less imputed interest 1,788 Total operating lease liabilities $ 13,910 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018. (Dollars in thousands) September 30, 2019 December 31, 2018 Goodwill and other intangibles $ (44,315 ) $ (45,272 ) Provision for loan losses 19,529 25,790 Net operating loss carryforwards (1) 21,166 11,132 Accrued expenses, compensation, and other assets 1,932 1,844 Unrealized gains on other investments (4,737 ) (2,024 ) Total deferred tax liability (6,425 ) (8,530 ) Valuation allowance (462 ) (255 ) Deferred tax liability, net (6,887 ) (8,785 ) Taxes receivable 1,290 1,812 Net deferred and other tax liabilities $ (5,597 ) $ (6,973 ) (1) As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 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 $20,704 as of September 30, 2019. The components of our tax (provision) benefit for the three and nine months ended September 30, 2019 and 2018 were as follows. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Current Federal $ (230 ) $ (9,353 ) $ (1,099 ) $ (3,040 ) State (661 ) (2,318 ) (1,620 ) (1,078 ) Deferred Federal (887 ) 9,100 1,311 8,128 State 1,613 2,688 3,334 768 Net (provision) benefit for income taxes $ (165 ) $ 117 $ 1,926 $ 4,778 The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported in net loss/net decrease in net assets for the three and nine months ended September 30, 2019 and 2018. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Statutory Federal income tax (provision) benefit at 21% $ (1,616 ) $ 877 $ (332 ) $ 8,106 State and local income taxes, net of federal income tax benefit (547 ) (107 ) (113 ) 994 Revaluation of net operating losses 876 — 380 — Appreciation of Medallion Bank — — — (1,974 ) Utilization of carry forwards — (247 ) — (910 ) Change in state income tax accruals — — 600 — Change in effective state income tax rate 608 — 916 (1,358 ) Income attributable to non-controlling interest 451 — 451 — Non deductible expenses — (215 ) — (403 ) Other 63 (191 ) 24 323 Total income tax (provision) benefit $ (165 ) $ 117 $ 1,926 $ 4,778 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 September 30, 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 2016 through the present are the more significant filings that are open for examination. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased 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 stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, stock appreciation rights, etc. A total of 1,500,253 shares of the Company’s common stock are issuable under the 2018 Plan, and 882,219 remained issuable as of September 30, 2019. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first. The Company’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 occurs first. 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 Non-Employee Director Stock Option Plan (2015 Director Plan) on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the SEC on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years. The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan (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 September 30, 2019, 497,721 options on the Company’s common stock were outstanding under the Company’s plans, of which 81,667 options were exercisable, and there were 247,616 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 and $1.06 per share for the nine months ended September 30, 2019 and 2018. The following assumption categories are used to determine the value of any option grants. Nine Months Ended September 30, 2019 2018 Risk free interest rate 2.39 % 2.82 % Expected dividend yield 0.79 4.86 Expected life of option in years (1) 6.25 6.00 Expected volatility (2) 48.45 30.00 (1) Expected life is calculated using the simplified method. (2) We determine our expected volatility based on our historical volatility. The following table presents the activity for the stock option programs for the 2019 quarters and the 2018 full year. Number of Options Exercise Price Per Share Weighted Average Exercise Price 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 501,043 2.14-13.84 6.63 Granted 1,104 6.55 6.55 Cancelled (3,433 ) 6.55-7.49 7.10 Exercised (1) — — — Outstanding at June 30, 2019 498,714 2.14-13.84 6.62 Granted — — — Cancelled (993 ) 6.55 6.55 Exercised (1) — — — Outstanding at September 30, 2019 (2) 497,721 $ 2.14-13.84 $ 6.62 Options exercisable at September 30, 2019 (2) 81,667 $ 2.14-13.84 $ 8.35 (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 for each of the 2019 and 2018 three and nine months ended September 30. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019. The following table presents the activity for the restricted stock programs for the 2019 quarters and the 2018 full year. Number of Shares Grant Price Per Share Weighted Average Exercise Price 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 250,482 2.14-6.55 5.68 Granted 4,751 6.55-7.03 6.98 Cancelled (949 ) 3.95-6.55 6.40 Vested (1) (16,406 ) 2.06-7.03 3.35 Outstanding at June 30, 2019 237,878 3.95-6.55 5.86 Granted 10,417 4.80 4.80 Cancelled (679 ) 3.95-6.55 5.90 Vested (1) — — — Outstanding at September 30, 2019 (2) 247,616 $ 3.95-6.55 $ 5.82 (1) The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods. (2) The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019. In addition, during the 2019 third quarter, the Company granted and has outstanding, 26,040 restricted stock units that vest in one year with a grant price of $4.80. These units have the option of deferring vesting until a future date if the employee makes a formal election under the guidelines of IRC Section 409A. The following table presents the activity for the unvested options outstanding under the plans for the 2019 quarters. Number of Options Exercise Price Per Share Weighted Average Exercise Price 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 Granted 1,104 6.55 6.55 Cancelled (1,433 ) 6.55 6.55 Vested (16,000 ) 2.22-7.10 5.12 Outstanding at June 30, 2019 420,825 2.14-6.55 6.25 Granted — — — Cancelled (993 ) 6.55 6.55 Vested (3,778 ) 2.61 2.61 Outstanding at September 30, 2019 416,054 $ 2.14-6.55 $ 6.28 The intrinsic value of the options vested was $8,000 and $34,000 for the three and nine months ended September 30, 2019. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 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 segments, which are reflective of how Company management makes decisions about its business and operations. 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, Florida, and California at 16%, 10%, and 10% of loans outstanding and with no other states over 10% as of September 30, 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%, 18%, and 12% of the segment portfolio as of September 30, 2019. 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 25%, 20%, 13%, and 13% of total home improvement loans outstanding, and with no other product lines over 10% as of September 30, 2019. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 57% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the taxicab medallions, taxicabs, and related assets, of which 88% were in New York City as of September 30, 2019. In addition, our non-operating segments include RPAC, which is a race car team, and our corporate and other investments segment which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. As part of the segment reporting, capital ratios for all operating segments have been normalized at 20%, which approximates the percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments for the three and nine months ended September 30, 2019. In addition, beginning in fiscal year 2019, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been re-allocated to corporate and other investments for all periods presented. The following tables present segment data as of September 30, 2019 and for the three and nine months then ended, and as of September 30, 2018, and for the three and six months then ended. Consumer Lending Corp. Three Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 26,147 $ 5,184 $ 1,842 $ 975 $ — $ 492 $ 34,640 Total interest expense 3,578 1,309 741 1,935 47 1,615 9,225 Net interest income (loss) 22,569 3,875 1,101 (960 ) (47 ) (1,123 ) 25,415 Provision for loan losses 6,744 (629 ) 364 1,858 — — 8,337 Net interest income (loss) after loss provision 15,825 4,504 737 (2,818 ) (47 ) (1,123 ) 17,078 Sponsorship and race winnings — — — — 7,940 — 7,940 Race team related expenses — — — — (2,663 ) — (2,663 ) Other income (expense) (6,181 ) (2,000 ) 563 (2,762 ) (1,784 ) (2,591 ) (14,755 ) Net income (loss) before taxes 9,644 2,504 1,300 (5,580 ) 3,446 (3,714 ) 7,600 Income tax benefit (provision) (2,497 ) (648 ) (314 ) 1,345 (831 ) 2,780 (165 ) Net income (loss) $ 7,147 $ 1,856 $ 986 $ (4,235 ) $ 2,615 $ (934 ) $ 7,435 Balance Sheet Data Total loans, net $ 690,466 $ 228,491 $ 64,646 $ 112,003 $ — $ 3,563 $ 1,099,169 Total assets 702,541 239,991 87,486 226,868 33,134 229,734 1,519,754 Total funds borrowed 559,995 190,871 69,658 180,040 7,758 178,793 1,187,115 Selected Financial Ratios Return on average assets 4.14 % 3.22 % 4.49 % (7.26 )% 31.13 % (1.54 )% 1.31 % Return on average equity 20.69 16.09 22.45 (36.30 ) NM (7.81 ) 6.81 Interest yield 15.35 9.46 11.09 3.30 N/A N/A 11.87 Net interest margin 13.25 7.07 6.63 (3.25 ) N/A N/A 8.71 Reserve coverage 2.25 0.97 0.00 (1) 18.22 N/A N/A 3.77 Delinquency status (2) 0.69 0.11 0.40 (1) 2.41 N/A N/A 0.73 Charge-off ratio 2.05 0.09 4.93 (3) 5.20 N/A N/A 2.17 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Nine Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 72,996 $ 14,187 $ 5,359 $ 2,482 $ — $ 1,674 $ 96,698 Total interest expense 9,541 3,252 2,108 5,435 119 5,313 25,768 Net interest income (loss) 63,455 10,935 3,251 (2,953 ) (119 ) (3,639 ) 70,930 Provision for loan losses 19,925 733 364 15,374 — 455 36,851 Net interest income (loss) after loss provision 43,530 10,202 2,887 (18,327 ) (119 ) (4,094 ) 34,079 Sponsorship and race winnings — — — — 16,008 — 16,008 Race team related expenses — — — — (7,211 ) — (7,211 ) Other (expense) (17,501 ) (5,356 ) (532 ) (8,106 ) (5,298 ) (5,822 ) (42,615 ) Net income (loss) before taxes 26,029 4,846 2,355 (26,433 ) 3,380 (9,916 ) 261 Income tax benefit (provision) (6,741 ) (1,255 ) (568 ) 6,375 (815 ) 4,930 1,926 Net income (loss) $ 19,288 $ 3,591 $ 1,787 $ (20,058 ) $ 2,565 $ (4,986 ) $ 2,187 Balance Sheet Data Total loans, net $ 690,466 $ 228,491 $ 64,646 $ 112,003 $ — $ 3,563 $ 1,099,169 Total assets 702,541 239,991 87,486 226,868 33,134 229,734 1,519,754 Total funds borrowed 559,995 190,871 69,658 180,040 7,758 178,793 1,187,115 Selected Financial Ratios Return on average assets 4.01 % 2.50 % 2.69 % (10.82 )% 10.76 % (2.90 )% (0.12 )% Return on average equity 17.42 11.34 13.43 (54.12 ) NM (11.52 ) (0.60 ) Interest yield 15.45 9.44 11.59 2.50 N/A N/A 11.68 Net interest margin 13.43 7.27 7.03 (2.97 ) N/A N/A 8.57 Reserve coverage 2.25 0.97 0.00 (1) 18.22 N/A N/A 3.77 Delinquency status (2) 0.69 0.11 0.40 (1) 2.41 N/A N/A 0.73 Charge-off ratio 2.30 0.20 1.77 (3) 18.29 N/A N/A 3.92 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Three Months Ended September 30, 2018 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 24,001 $ 3,968 $ 2,370 $ 2,126 $ — $ 687 $ 33,152 Total interest expense 2,306 709 500 3,672 40 1,660 8,887 Net interest income (loss) 21,695 3,259 1,870 (1,546 ) (40 ) (973 ) 24,265 Provision for loan losses 4,423 598 (75 ) 13,259 — — 18,205 Net interest income (loss) after loss provision 17,272 2,661 1,945 (14,805 ) (40 ) (973 ) 6,060 Sponsorship and race winning — — — — 5,371 — 5,371 Race team related expenses — — — — (2,876 ) — (2,876 ) Other income (expense) (3,160 ) 400 (945 ) (4,077 ) (1,887 ) (2,849 ) (12,518 ) Net income (loss) before taxes 14,112 3,061 1,000 (18,882 ) 568 (3,822 ) (3,963 ) Income tax benefit (provision) (3,979 ) (863 ) (232 ) 4,371 (107 ) 927 117 Net income (loss) $ 10,133 $ 2,198 $ 768 $ (14,511 ) $ 461 $ (2,895 ) $ (3,846 ) Balance Sheet Data as of September 30, 2018 Total loans, net $ 572,995 $ 168,781 $ 77,886 $ 235,827 $ — $ 4,572 $ 1,060,061 Total assets 582,610 175,333 88,035 369,763 36,237 319,429 1,571,407 Total funds borrowed 431,868 132,914 53,323 399,750 7,614 239,605 1,265,074 Balance Sheet Data as of December 31, 2018 Total loans, net $ 580,182 $ 181,359 $ 59,973 $ 155,863 $ — $ 4,110 $ 981,487 Total assets 590,746 188,892 90,264 273,501 29,925 208,518 1,381,846 Total funds borrowed 434,527 143,815 51,266 294,465 7,649 130,306 1,062,028 Selected Financial Ratios as of September 30, 2018 Return on average assets 6.80 % 4.57 % 3.50 % (15.23 )% 4.94 % (4.29 )% (1.19 )% Return on average equity 27.77 19.99 7.47 NM 42.83 (15.05 ) (6.59 ) Interest yield 15.87 8.10 12.33 3.41 N/A N/A 10.75 Net interest margin 14.34 6.65 9.73 (2.48 ) N/A N/A 7.94 Reserve coverage 0.50 0.51 0.13 9.81 N/A N/A 2.71 Delinquency status (2) 0.55 0.10 0.51 (1) 4.06 N/A N/A 1.29 Charge-off ratio 3.19 1.34 0.00 (1) 10.35 N/A N/A 3.69 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. Consumer Lending Corp. Six Months Ended September 30, 2018 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 46,133 $ 8,605 $ 4,587 $ 5,315 $ — $ 1,156 $ 65,796 Total interest expense 4,442 1,448 985 7,045 81 2,811 16,812 Net interest income (loss) 41,691 7,157 3,602 (1,730 ) (81 ) (1,655 ) 48,984 Provision for loan losses 9,133 1,475 100 38,073 — — 48,781 Net interest income (loss) after loss provision 32,558 5,682 3,502 (39,803 ) (81 ) (1,655 ) 203 Sponsorship and race winning — — — — 10,599 — 10,599 Race team related expenses — — — — (5,416 ) — (5,416 ) Other (expense) (8,680 ) (1,285 ) (1,887 ) (6,888 ) (4,124 ) (4,390 ) (27,254 ) Net income (loss) before taxes 23,878 4,397 1,615 (46,691 ) 978 (6,045 ) (21,868 ) Income tax benefit (provision) (6,141 ) (1,159 ) (368 ) 10,528 (150 ) 1,428 4,138 Net income (loss) $ 17,737 $ 3,238 $ 1,247 $ (36,163 ) $ 828 $ (4,617 ) $ (17,730 ) Balance Sheet Data as of September 30, 2018 Total loans, net $ 572,995 $ 168,781 $ 77,886 $ 235,827 $ — $ 4,572 $ 1,060,061 Total assets 582,610 175,333 88,035 369,763 36,237 319,429 1,571,407 Total funds borrowed 431,868 132,914 53,323 399,750 7,614 239,605 1,265,074 Balance Sheet Data as of December 31, 2018 Total loans, net $ 580,182 $ 181,359 $ 59,973 $ 155,863 $ — $ 4,110 $ 981,487 Total assets 590,746 188,892 90,264 273,501 29,925 208,518 1,381,846 Total funds borrowed 434,527 143,815 51,266 294,465 7,649 130,306 1,062,028 Selected Financial Ratios as of September 30, 2018 Return on average assets 6.14 % 3.42 % 2.81 % (18.49 )% 4.46 % (3.55 )% (2.51 )% Return on average equity 25.84 15.22 6.05 NM 38.67 (11.16 ) (13.34 ) Interest yield 15.88 8.94 13.48 4.03 N/A N/A 10.91 Net interest margin 14.35 7.44 10.58 (1.31 ) N/A N/A 8.17 Reserve coverage 0.50 0.51 0.13 9.81 N/A N/A 2.71 Delinquency status (2) 0.55 0.10 0.51 (1) 4.06 N/A N/A 1.29 Charge-off ratio 3.26 1.27 0.00 (1) 9.66 N/A N/A 3.53 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. |
Other Operating Expenses
Other Operating Expenses | 9 Months Ended |
Sep. 30, 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 Months Ended March 31, 2018 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 | 9 Months Ended |
Sep. 30, 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 Ended March 31, 2018 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 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 | 9 Months Ended |
Sep. 30, 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 five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Annually, the contracts with a two-year term will renew for new two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one-year term. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period. Employment agreements expire at various dates through 2024, with future minimum payments under these agreements of approximately $6,061,000. (B) OTHER COMMITMENTS Except as described in the following paragraph, the Company had no commitments to extend credit or make investments outstanding at September 30, 2019. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company has commitments for leased premises that expire at various dates through November 30, 2027. At September 30, 2019, minimal rental commitments for non-cancelable leases were $15,698,000. (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 FSVC’s transfer to liquidation status and the restructure of the FSVC loan described in Note 7. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) RELATED PARTY TRANSACTIONS Certain directors, officers and stockholders of the Company are also directors and officers of its main subsidiaries, MFC, MCI, FSVC, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company. Jeffrey Rudnick, the son of one of the Company’s directors, 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 bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200. The Company’s subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which it makes 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 $7,258,000 that earns interest at an annual rate of 2% as of September 30, 2019. In the 2019 second quarter, RPAC entered into a sponsorship agreement with Victory Junction, a 501(c)(3) public charity for which Richard Petty is a Board member, for $7,000,000 of sponsorship payments to RPAC during the remaining 2019 race car season, of which $5,200,000 was earned and received in 2019. The Company and MSC serviced $308,346,000 of loans for the 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 the 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 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 the 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 the Bank not eliminated under Investment Company Accounting. (Dollars in thousands) Three Months Ended March 31, 2018 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 which have been eliminated in consolidation since April 2, 2018. The loans bear interest at 2%, inclusive of cash and paid in kind interest. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018 with respect to these loans. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 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 commitments, if practicable. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. Fair value estimates that were derived from broker quotes cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. (a) Book value equals fair value. (b) The Company’s equity securities are recorded at cost less impairment, which approximated fair value. (c) The Company’s investments are recorded at the estimated fair value of such investments. (d) The Company’s loans are recorded at book value which approximated fair value. (e) Due to the short-term nature of these instruments, the carrying amount approximates fair value. (f) The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At September 30, 2019 and December 31, 2018, the estimated fair value of these off-balance-sheet instruments was not material. (g) —The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt. September 30, 2019 December 31, 2018 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and federal funds sold (1) $ 55,015 $ 55,015 $ 57,713 $ 57,713 Equity investments 9,880 9,880 9,197 9,197 Investment securities 47,422 47,422 45,324 45,324 Loans receivable 1,099,169 1,099,169 981,487 981,487 Accrued interest receivable (2) 8,040 8,040 7,413 7,413 Financial liabilities Funds borrowed (3) 1,187,115 1,188,850 1,062,028 1,062,297 Accrued interest payable (2) 3,511 3,511 3,852 3,852 (1) Categorized as level 1 within the fair value hierarchy. See Note 17. (2) Categorized as level 3 within the fair value hierarchy. See Note 17. (3) As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 and $269. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 9 Months Ended |
Sep. 30, 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 (levels 1 and 2) and unobservable (level 3). Therefore gains and losses for such assets and liabilities categorized within the level 3 table below may include changes in fair value that are attributable to both observable inputs (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 markets (for example, corporate and municipal bonds, which trade infrequently); C) Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and D) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives). Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the assets or liability (examples include certain private equity investments, and certain residential and commercial mortgage-related assets, including loans, securities, and derivatives). A review of fair value hierarchy classification is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain assets or liabilities. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in/out of the level 3 category as of the beginning of the quarter in which the reclassifications occur. 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 September 30, 2019 and December 31, 2018. September 30, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,880 $ 9,880 Available for sale investment securities (1) — 47,422 — 47,422 Total $ — $ 47,422 $ 9,880 $ 57,302 (1) Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 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 three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the three months ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Equity Investments June 30, 2019 $ 9,797 Gains included in earnings 414 Purchases, investments, and issuances 1,077 Sales, maturities, settlements, and distributions (1,408 ) September 30, 2019 $ 9,880 Amounts related to held assets (1) $ (998 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019. (Dollars in thousands) Equity Investments December 31, 2018 $ 9,197 Gains included in earnings 510 Purchases, investments, and issuances 2,727 Sales, maturities, settlements, and distributions (2,554 ) September 30, 2019 $ 9,880 Amounts related to held assets (1) $ (1,300 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019. (Dollars in thousands) Equity Investments June 30, 2018 $ 10,773 Losses included in earnings (400 ) Purchases, investments, and issuances 631 Sales, maturities, settlements, and distributions (252 ) September 30, 2018 $ 10,752 Amounts related to held assets (1) $ (400 ) ( 1 ) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. (Dollars in thousands) Equity Investments March 31, 2018 $ 9,458 Losses included in earnings (774 ) Purchases, investments, and issuances 1,160 Sales, maturities, settlements, and distributions (469 ) Transfers in (1) 1,377 September 30, 2018 $ 10,752 Amounts related to held assets (2) $ (774 ) (1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter. (2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. (Dollars in thousands) Medallion Loans Commercial Loans Investments in Medallion Bank & Other Controlled Subsidiaries Equity Investments Investments Other Than Securities Other Assets 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 basis as of September 30, 2019 and December 31, 2018 under Bank Holding Company Accounting. September 30, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 27,078 $ 27,078 Loan collateral in process of foreclosure — — 53,539 53,539 Total $ — $ — $ 80,617 $ 80,617 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, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company. The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of September 30, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting. (Dollars in thousands) Fair Value at 9/30/19 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity investments $ 7,038 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,387 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 Discount for lack of marketability 25% 1,455 Precedent market transaction Offering price $8.73/share (Dollars in thousands) Fair Value at 12/31/18 Valuation Techniques Unobservable Inputs Range (Weighted Average) 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) | 9 Months Ended |
Sep. 30, 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, the Bank issued, and the US Treasury purchased under the TARP Capital Purchase Program (the CPP) the Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011, the Bank issued, and the US Treasury purchased 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E) for an aggregate purchase price of $26,303,000 under the SBLF. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. the Bank pays a dividend rate of 9% on the Series E. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 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 performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty (see Note 7 for more details). In addition, the Company remains the servicer of the assets of Trust III for a fee. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (20) SUBSEQUENT EVENTS We have evaluated subsequent events that have occurred through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below. |
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, the 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 the Bank and other controlled subsidiaries for such prior periods. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 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 $9,880,000 and $9,197,000 at September 30, 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. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $236,000 at September 30, 2019 and $154,000 at December 31, 2018, and $21,000 and $46,000 was amortized to interest income for the three and nine months ended September 30, 2019, and $26,000 and $47,000 was amortized to interest income for the three and six months ended September 30, 2018. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed . |
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 the 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 the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the 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 activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties continued. The Company incorporated these new factors in the Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the first quarter of 2018. Refer to Note 6 for additional details. |
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 September 30, 2019 and December 31, 2018, net loan origination costs were $17,867,000 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 to income for the three months ended September 30, 2019 and 2018 was $1,364,000 and $1,147,000, and was $3,753,000 and $2,192,000 ($3,065,000 when combined with the Bank) for the comparable nine month period. 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 be impaired. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged-off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation consumer loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded to write the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as a recovery. Total loans more than 90 days past due were $8,123,000 at September 30, 2019, or 0.73% of the total loan portfolio, compared to $20,154,000, or 2.03% at December 31, 2018. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a trouble debt restructuring (“TDR”). The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before it reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in fiscal year 2019, all consumer loans which are party to a bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance. 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 $30,295,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at September 30, 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 $125,818,000 at September 30, 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 September 30, 2019 and December 31, 2018. The Company assigned its servicing rights of the 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 the 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 $4,608,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank’s general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032,000. 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 quarterly review by management to determine whether additional impairment testing is needed, said testing which is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,898,000, $53,982,000 and $59,958,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended September 30, 2019 and 2018, and $1,084,000 and $722,000 of amortization expense on the intangible assets for the nine months ended September 30, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $6,161,000, $9,048,000, and $10,607,000 were outstanding at September 30, 2019, December 31, 2018, and September 30, 2018, and of which $713,000 and $1,780,000 were amortized to interest income for the three months ended September 30, 2019 and 2018, and of which $2,886,000 and $1,780,000 were amortized to interest income for the nine months ended September 30, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on the 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) September 30, 2019 December 31, 2018 Brand-related intellectual property $ 20,350 $ 21,176 Home improvement contractor relationships 6,383 6,641 Race organization 26,165 26,165 Total intangible assets $ 52,898 $ 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 $109,000 and $131,000 for the three months ended September 30, 2019 and 2018, and was $313,000 and $289,000 for the comparable nine months. |
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 $613,000 and $558,000 for the three months ended September 30, 2019 and 2018, and was $1,731,000 and $1,322,000 for the comparable nine months. 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 $5,589,000, $4,461,000, and $4,859,000 as of September 30, 2019, December 31, 2018, and September 30, 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 sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized when the Company’s performance obligations are completed in according with 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 stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2019 2018 2019 2018 Net income (loss)/net decrease in net assets resulting from operations available to common stockholders $ 4,975 $ (4,697 ) $ (1,297 ) $ (34,218 ) Weighted average common shares outstanding applicable to basic EPS 24,361,680 24,235,242 24,336,677 24,207,273 Effect of dilutive stock options 16,543 — — — Effect of restricted stock grants 228,944 — — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,607,167 24,235,242 24,336,677 24,207,273 Basic income (loss) per share $ 0.20 $ (0.19 ) $ (0.05 ) $ (1.41 ) Diluted income (loss) per share 0.20 (0.19 ) (0.05 ) (1.41 ) Potentially dilutive common shares excluded from the above calculations aggregated 468,055 and 115,000 shares as of September 30, 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 nine months ended September 30, 2019 and 2018, the Company issued 178,266 and 101,010 of restricted shares of stock-based compensation awards, 375,481 and 39,000 shares of stock options, and 26,040 and no restricted stock units and recognized $348,000 and $853,000, or $0.01 and $0.03 per share, for the 2019 third quarter and nine months, and $151,000 and $466,000, or $0.01 and $0.02, per share, for each of the comparable 2018 periods, of non-cash stock-based compensation expense related to the grants. As of September 30, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,663,000, which is expected to be recognized over the next 14 quarters (see Note 10). |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, 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 could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of September 30, 2019, the Bank’s Tier 1 leverage ratio was 15.91%. 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 September 30, 2019 December 31, 2018 Common equity Tier 1 capital — — $ 153,580 $ 141,608 Tier 1 capital — — 179,883 167,911 Total capital — — 194,436 180,917 Average assets — — 1,130,642 1,059,461 Risk-weighted assets — — 1,120,179 993,374 Leverage ratio (1) 4.0 % 5.0 % 15.9 % 15.8 % Common equity Tier 1 capital ratio (2) 7.0 6.5 13.7 14.3 Tier 1 capital ratio (3) 8.5 8.0 16.1 16.9 Total capital ratio (3) 10.5 10.0 17.4 18.2 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In 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 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition. In January 2017, the FASB issued ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In October 2019, the FASB voted to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have an impact on the Company’s accounting for estimated credit losses on its loans. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2019 December 31, 2018 Brand-related intellectual property $ 20,350 $ 21,176 Home improvement contractor relationships 6,383 6,641 Race organization 26,165 26,165 Total intangible assets $ 52,898 $ 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 September 30, Nine Months Ended September 30, (Dollars in thousands, except share and per share data) 2019 2018 2019 2018 Net income (loss)/net decrease in net assets resulting from operations available to common stockholders $ 4,975 $ (4,697 ) $ (1,297 ) $ (34,218 ) Weighted average common shares outstanding applicable to basic EPS 24,361,680 24,235,242 24,336,677 24,207,273 Effect of dilutive stock options 16,543 — — — Effect of restricted stock grants 228,944 — — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,607,167 24,235,242 24,336,677 24,207,273 Basic income (loss) per share $ 0.20 $ (0.19 ) $ (0.05 ) $ (1.41 ) Diluted income (loss) per share 0.20 (0.19 ) (0.05 ) (1.41 ) |
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 September 30, 2019 December 31, 2018 Common equity Tier 1 capital — — $ 153,580 $ 141,608 Tier 1 capital — — 179,883 167,911 Total capital — — 194,436 180,917 Average assets — — 1,130,642 1,059,461 Risk-weighted assets — — 1,120,179 993,374 Leverage ratio (1) 4.0 % 5.0 % 15.9 % 15.8 % Common equity Tier 1 capital ratio (2) 7.0 6.5 13.7 14.3 Tier 1 capital ratio (3) 8.5 8.0 16.1 16.9 Total capital ratio (3) 10.5 10.0 17.4 18.2 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. |
Investment Securities (Bank H_2
Investment Securities (Bank Holding Company Accounting) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule Of Investments [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | Fixed maturity securities available for sale as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 34,431 $ 569 $ (65 ) $ 34,935 State and municipalities 12,279 262 (54 ) 12,487 Total $ 46,710 $ 831 $ (119 ) $ 47,422 December 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 September 30, 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 $ 35 $ 35 Due after one year through five years 12,416 12,497 Due after five years through ten years 10,267 10,417 Due after ten years 23,992 24,473 Total $ 46,710 $ 47,422 |
Summary of Securities with Gross Unrealized Losses | The following tables show information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position. Less than Twelve Months Twelve Months and Over September 30, 2019 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (39 ) $ 4,083 $ (26 ) $ 5,075 State and municipalities (1 ) 169 (53 ) 2,770 Total $ (40 ) $ 4,252 $ (79 ) $ 7,845 Less than Twelve Months Twelve Months and Over December 31, 2018 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018. As of September 30, 2019 As of December 31, 2018 (Dollars in thousands) Amount As a Percent of Gross Loans Amount As a Percent of Gross Loans Recreation $ 706,393 62 % $ 587,038 58 % Home improvement 230,726 20 183,155 18 Commercial 68,209 6 64,083 6 Medallion 136,954 12 183,606 18 Total gross loans 1,142,282 100 % 1,017,882 100 % Allowance for loan losses (43,113 ) (36,395 ) Total net loans $ 1,099,169 $ 981,487 |
Schedule of Activity of Gross Loans | The following tables show the activity of the gross loans for the three and nine months ended September 30, 2019. Three Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Total Gross loans – June 30, 2019 $ 668,540 $ 209,549 $ 64,442 $ 145,944 $ 1,088,475 Loan originations 82,662 42,641 4,750 — 130,053 Principal payments (40,790 ) (20,729 ) (375 ) (4,013 ) (65,907 ) Charge-offs, net (3,489 ) (51 ) (819 ) (1,535 ) (5,894 ) Transfer to loans in process of foreclosure, net (3,429 ) — — (3,005 ) (6,434 ) Other 2,899 (684 ) 211 (437 ) 1,989 Gross loans – September 30, 2019 $ 706,393 $ 230,726 $ 68,209 $ 136,954 $ 1,142,282 Nine Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Total Gross loans – December 31, 2018 $ 587,038 $ 183,155 $ 64,083 $ 183,606 $ 1,017,882 Loan originations 248,989 102,821 14,520 — 366,330 Principal payments (113,680 ) (53,508 ) (9,789 ) (10,612 ) (187,589 ) Charge-offs, net (10,853 ) (295 ) (819 ) (18,166 ) (30,133 ) Transfer to loans in process of foreclosure, net (10,311 ) — — (15,573 ) (25,884 ) Other 5,210 (1,447 ) 214 (2,301 ) 1,676 Gross loans – September 30, 2019 $ 706,393 $ 230,726 $ 68,209 $ 136,954 $ 1,142,282 |
Summary of Activity in Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018. Three Months Ended September 30, Nine Months Ended September 30, Six Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Allowance for loan losses – beginning balance $ 40,670 $ 21,425 $ 36,395 $ — (1) Charge-offs Recreation (5,444 ) (4,825 ) (16,366 ) (9,471 ) Home improvement (568 ) (659 ) (1,655 ) (1,220 ) Commercial (819 ) — (819 ) — Medallion (2,378 ) (6,457 ) (20,408 ) (12,737 ) Total charge-offs (9,209 ) (11,941 ) (39,248 ) (23,428 ) Recoveries Recreation 1,955 1,318 5,513 3,217 Home improvement 517 367 1,360 606 Commercial — — — 4 Medallion 843 110 2,242 304 Total recoveries 3,315 1,795 9,115 4,131 Net charge-offs (2) (5,894 ) (10,146 ) (30,133 ) (19,297 ) Provision for loan losses 8,337 18,205 36,851 48,781 Allowance for loan losses – ending balance $ 43,113 (3) $ 29,484 $ 43,113 (3) $ 29,484 (1) Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for the six months ended September 30, 2018. ( 2 ) As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company. ( 3 ) Includes $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. |
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 September 30, 2019 and December 31, 2018. September 30, 2019 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Recreation $ 15,927 37 % 2.25 % Home improvement 2,235 5 0.97 Commercial — — 0.00 Medallion 24,951 58 18.22 Total $ 43,113 100 % 3.77 % December 31, 2018 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category 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. (Dollars in thousands) September 30, 2019 December 31, 2018 September 30, 2018 Total nonaccrual loans $ 27,078 $ 34,877 $ 45,765 Interest foregone quarter to date 403 487 563 Amount of foregone interest applied to principal in the quarter 75 166 350 Interest foregone year to date 915 1,153 1,032 Amount of foregone interest applied to principal in the year 244 535 987 Interest foregone life to date 2,432 1,952 8,530 Amount of foregone interest applied to principal life to date 655 1,214 3,412 Percentage of nonaccrual loans to gross loan portfolio 2 % 3 % 4 % |
Summary of Performance Status of Loan | The following tables present the performance status of loans as of September 30, 2019 and December 31, 2018. September 30, 2019 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 699,685 $ 6,708 $ 706,393 0.95 % Home improvement 230,487 239 230,726 0.10 Commercial 56,178 12,031 68,209 17.64 Medallion 128,854 8,100 136,954 5.91 Total $ 1,115,204 $ 27,078 $ 1,142,282 2.37 % 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 September 30, 2019 and 2018, and December 31, 2018, all of which had an allowance recorded against the principal balance. September 30, 2019 For the Three Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With an allowance recorded Recreation $ 6,708 $ 6,708 $ 256 $ 6,687 $ 152 $ 6,921 $ 366 Home improvement 239 239 4 243 2 245 2 Commercial 12,031 12,126 — 9,616 36 6,827 321 Medallion 8,100 8,660 3,160 13,418 27 11,279 39 Total nonperforming loans with an allowance $ 27,078 $ 27,733 $ 3,420 $ 29,964 $ 217 $ 25,272 $ 728 December 31, 2018 September 30, 2018 For the Three Months Ended September 30, 2018 Six Months Ended September 30, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized With an allowance recorded Recreation $ 5,788 $ 5,788 $ 204 $ 5,075 $ 5,075 $ 180 $ 5,494 $ 106 $ 4,496 $ 231 Home improvement 137 137 3 167 167 3 178 — 119 — Commercial 3,834 3,929 — 5,403 5,814 100 7,047 (82 ) 5,838 (12 ) Medallion 25,118 26,237 22,035 38,057 39,038 10,085 55,065 101 54,917 215 Total nonperforming loans with an allowance $ 34,877 $ 36,091 $ 22,242 $ 48,702 $ 50,094 $ 10,368 $ 67,784 $ 125 $ 65,370 $ 434 |
Summary of Aging of Loans | The following tables show the aging of all loans as of September 30, 2019 and December 31, 2018. Days Past Due September 30, 2019 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recorded Investment 90 Days and Accruing Recreation $ 20,615 $ 6,771 $ 4,431 $ 31,817 $ 651,122 $ 682,939 $ — Home improvement 687 280 228 1,195 232,804 233,999 — Commercial — — 276 276 67,933 68,209 — Medallion 31,062 1,756 3,188 36,006 96,541 132,547 — Total $ 52,364 $ 8,807 $ 8,123 $ 69,294 $ 1,048,400 $ 1,117,694 $ — (1) Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs. Days Past Due December 31, 2018 (Dollars in thousands) 31-60 61-90 91 + Total Current Total (1) Recorded Investment > 90 Days and Accruing 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 and nine months ended September 30, 2019. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Medallion loans - 2019 three months 1 $ 758 $ 758 Recreation loans - 2019 three months 40 587 505 Medallion loans - 2019 nine months 10 $ 4,041 $ 4,041 Recreation loans - 2019 nine months 276 4,109 2,619 The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2018. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Medallion loans - 2018 three months 10 $ 4,810 $ 4,810 Medallion loans - 2018 nine months 17 $ 7,505 $ 7,505 |
Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans | The following tables show the activity of the loans in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2019. Three Months Ended September 30, 2019 (Dollars in thousands) Recreation Medallion Total Loans in process of foreclosure – June 30, 2019 $ 955 $ 51,413 $ 52,368 Transfer from loans, net 3,429 3,005 6,434 Sales (1,604 ) (387 ) (1,991 ) Cash payments received — (1,556 ) (1,556 ) Collateral valuation adjustments (1,603 ) (113 ) (1,716 ) Loans in process of foreclosure – September 30, 2019 $ 1,177 $ 52,362 $ 53,539 Nine Months Ended September 30, 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 10,311 15,573 25,884 Sales (5,715 ) (899 ) (6,614 ) Cash payments received — (6,100 ) (6,100 ) Collateral valuation adjustments (4,922 ) (4,204 ) (9,126 ) Loans in process of foreclosure – September 30, 2019 $ 1,177 $ 52,362 $ 53,539 |
Unrealized Appreciation (Depr_2
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule Of Investments [Abstract] | |
Schedule of Unrealized Appreciation (Depreciation) on Investments | (Dollars in thousands) Medallion Loans Commercial Loans Investments in Subsidiaries Equity Investments Investments Other Than Securities 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 Ended 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) | 9 Months Ended |
Sep. 30, 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 the 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 Ended March 31, 2018 Statement of comprehensive income 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 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 the 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 the Bank. |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances of Funds Borrowed | The outstanding balances of funds borrowed were as follows: Payments Due for the Twelve Months Ending September 30, (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter September 30, 2019 December 31, 2018 Interest Rate (1) Deposits $ 348,385 $ 182,587 $ 225,560 $ 112,413 $ 94,042 $ — $ 962,987 $ 848,040 2.37 % SBA debentures and borrowings 23,093 8,500 — 5,000 5,000 32,500 74,093 80,099 3.41 Retail and privately placed notes — 33,625 — — 36,000 — 69,625 33,625 8.61 Notes payable to banks 7,652 27,370 280 280 70 — 35,652 59,615 4.25 Preferred securities — — — — — 33,000 33,000 33,000 4.24 Other borrowings 11,758 — — — — — 11,758 7,649 2.09 Total $ 390,888 $ 252,082 $ 225,840 $ 117,693 $ 135,112 $ 65,500 $ 1,187,115 $ 1,062,028 2.91 % (1) Weighted average contractual rate as of September 30, 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) September 30, 2019 Three months or less $ 84,392 Over three months through six months 66,100 Over six months through one year 197,893 Over one year 614,602 Total deposits $ 962,987 |
Summary of Key Attributes of Various Borrowing Arrangements with Lenders | The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of September 30, 2019. (Dollars in thousands) Borrower # of Lenders/ Notes Note Dates Maturity Dates Type Note Amounts Balance Outstanding at September 30, 2019 Payment Average Interest Rate at September 30, 2019 Interest Rate Index (1) Medallion Financial Corp. 5/5 4/11 - 8/14 9/20 - 3/21 Term loans and demand notes secured by pledged loans (2) $ 23,231 (2) $ 23,231 Interest only (3) 4.63 % Various (3) Medallion Chicago 2/23 11/11 - 12/11 2/21 Term loans secured by owned Chicago medallions (4) 18,449 11,231 $134 of principal & interest paid monthly 3.50 % N/A Medallion Funding 1/1 11/18 12/23 1,400 1,190 $70 principal & interest paid quarterly 4.00 % N/A $ 43,080 $ 35,652 (1) At September 30, 2019, 30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%, and the prime rate was 5.00%. (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 $81. (4) Guaranteed by the Company. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2019. (Dollars in thousands) For the Three Months Ended September 30, 2019 For the Nine Months Ended September 30, 2019 Operating lease costs $ 531 $ 1,593 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 556 1,680 Right-of-use asset obtained in exchange for lease liability 29 (1 ) |
Schedule of Breakout of Operating leases | The following table presents the breakout of the operating leases as of September 30, 2019. (Dollars in thousands) September 30, 2019 Operating lease right-of-use assets $ 12,559 Other current liabilities 1,820 Operating lease liabilities 12,090 Total operating lease liabilities 13,910 Weighted average remaining lease term 3.7 years Weighted average discount rate 4.00 % |
Schedule of Maturities of the Lease Liabilities | At September 30, 2019, maturities of the lease liabilities were as follows. (Dollars in thousands) Remainder of 2019 $ 600 2020 2,397 2021 2,295 2022 2,228 2023 2,136 Thereafter 6,042 Total lease payments $ 15,698 Less imputed interest 1,788 Total operating lease liabilities $ 13,910 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018. (Dollars in thousands) September 30, 2019 December 31, 2018 Goodwill and other intangibles $ (44,315 ) $ (45,272 ) Provision for loan losses 19,529 25,790 Net operating loss carryforwards (1) 21,166 11,132 Accrued expenses, compensation, and other assets 1,932 1,844 Unrealized gains on other investments (4,737 ) (2,024 ) Total deferred tax liability (6,425 ) (8,530 ) Valuation allowance (462 ) (255 ) Deferred tax liability, net (6,887 ) (8,785 ) Taxes receivable 1,290 1,812 Net deferred and other tax liabilities $ (5,597 ) $ (6,973 ) (1) As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 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 $20,704 as of September 30, 2019. |
Schedule of Components of Tax (Provision) Benefit | The components of our tax (provision) benefit for the three and nine months ended September 30, 2019 and 2018 were as follows. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Current Federal $ (230 ) $ (9,353 ) $ (1,099 ) $ (3,040 ) State (661 ) (2,318 ) (1,620 ) (1,078 ) Deferred Federal (887 ) 9,100 1,311 8,128 State 1,613 2,688 3,334 768 Net (provision) benefit for income taxes $ (165 ) $ 117 $ 1,926 $ 4,778 |
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 (provision) benefit to consolidated actual income tax (provision) benefit reported in net loss/net decrease in net assets for the three and nine months ended September 30, 2019 and 2018. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Statutory Federal income tax (provision) benefit at 21% $ (1,616 ) $ 877 $ (332 ) $ 8,106 State and local income taxes, net of federal income tax benefit (547 ) (107 ) (113 ) 994 Revaluation of net operating losses 876 — 380 — Appreciation of Medallion Bank — — — (1,974 ) Utilization of carry forwards — (247 ) — (910 ) Change in state income tax accruals — — 600 — Change in effective state income tax rate 608 — 916 (1,358 ) Income attributable to non-controlling interest 451 — 451 — Non deductible expenses — (215 ) — (403 ) Other 63 (191 ) 24 323 Total income tax (provision) benefit $ (165 ) $ 117 $ 1,926 $ 4,778 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Assumption Categories Used to Determine Value of Option Grants | The following assumption categories are used to determine the value of any option grants. Nine Months Ended September 30, 2019 2018 Risk free interest rate 2.39 % 2.82 % Expected dividend yield 0.79 4.86 Expected life of option in years (1) 6.25 6.00 Expected volatility (2) 48.45 30.00 (1) Expected life is calculated using the simplified method. (2) We determine our expected volatility based on our historical volatility. |
Summary of Activity for Stock Option Programs | The following table presents the activity for the stock option programs for the 2019 quarters and the 2018 full year. Number of Options Exercise Price Per Share Weighted Average Exercise Price 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 501,043 2.14-13.84 6.63 Granted 1,104 6.55 6.55 Cancelled (3,433 ) 6.55-7.49 7.10 Exercised (1) — — — Outstanding at June 30, 2019 498,714 2.14-13.84 6.62 Granted — — — Cancelled (993 ) 6.55 6.55 Exercised (1) — — — Outstanding at September 30, 2019 (2) 497,721 $ 2.14-13.84 $ 6.62 Options exercisable at September 30, 2019 (2) 81,667 $ 2.14-13.84 $ 8.35 (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 for each of the 2019 and 2018 three and nine months ended September 30. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019. |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the 2019 quarters and the 2018 full year. Number of Shares Grant Price Per Share Weighted Average Exercise Price 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 250,482 2.14-6.55 5.68 Granted 4,751 6.55-7.03 6.98 Cancelled (949 ) 3.95-6.55 6.40 Vested (1) (16,406 ) 2.06-7.03 3.35 Outstanding at June 30, 2019 237,878 3.95-6.55 5.86 Granted 10,417 4.80 4.80 Cancelled (679 ) 3.95-6.55 5.90 Vested (1) — — — Outstanding at September 30, 2019 (2) 247,616 $ 3.95-6.55 $ 5.82 (1) The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods. (2) The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 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 quarters. Number of Options Exercise Price Per Share Weighted Average Exercise Price 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 Granted 1,104 6.55 6.55 Cancelled (1,433 ) 6.55 6.55 Vested (16,000 ) 2.22-7.10 5.12 Outstanding at June 30, 2019 420,825 2.14-6.55 6.25 Granted — — — Cancelled (993 ) 6.55 6.55 Vested (3,778 ) 2.61 2.61 Outstanding at September 30, 2019 416,054 $ 2.14-6.55 $ 6.28 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following tables present segment data as of September 30, 2019 and for the three and nine months then ended, and as of September 30, 2018, and for the three and six months then ended. Consumer Lending Corp. Three Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 26,147 $ 5,184 $ 1,842 $ 975 $ — $ 492 $ 34,640 Total interest expense 3,578 1,309 741 1,935 47 1,615 9,225 Net interest income (loss) 22,569 3,875 1,101 (960 ) (47 ) (1,123 ) 25,415 Provision for loan losses 6,744 (629 ) 364 1,858 — — 8,337 Net interest income (loss) after loss provision 15,825 4,504 737 (2,818 ) (47 ) (1,123 ) 17,078 Sponsorship and race winnings — — — — 7,940 — 7,940 Race team related expenses — — — — (2,663 ) — (2,663 ) Other income (expense) (6,181 ) (2,000 ) 563 (2,762 ) (1,784 ) (2,591 ) (14,755 ) Net income (loss) before taxes 9,644 2,504 1,300 (5,580 ) 3,446 (3,714 ) 7,600 Income tax benefit (provision) (2,497 ) (648 ) (314 ) 1,345 (831 ) 2,780 (165 ) Net income (loss) $ 7,147 $ 1,856 $ 986 $ (4,235 ) $ 2,615 $ (934 ) $ 7,435 Balance Sheet Data Total loans, net $ 690,466 $ 228,491 $ 64,646 $ 112,003 $ — $ 3,563 $ 1,099,169 Total assets 702,541 239,991 87,486 226,868 33,134 229,734 1,519,754 Total funds borrowed 559,995 190,871 69,658 180,040 7,758 178,793 1,187,115 Selected Financial Ratios Return on average assets 4.14 % 3.22 % 4.49 % (7.26 )% 31.13 % (1.54 )% 1.31 % Return on average equity 20.69 16.09 22.45 (36.30 ) NM (7.81 ) 6.81 Interest yield 15.35 9.46 11.09 3.30 N/A N/A 11.87 Net interest margin 13.25 7.07 6.63 (3.25 ) N/A N/A 8.71 Reserve coverage 2.25 0.97 0.00 (1) 18.22 N/A N/A 3.77 Delinquency status (2) 0.69 0.11 0.40 (1) 2.41 N/A N/A 0.73 Charge-off ratio 2.05 0.09 4.93 (3) 5.20 N/A N/A 2.17 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Nine Months Ended September 30, 2019 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 72,996 $ 14,187 $ 5,359 $ 2,482 $ — $ 1,674 $ 96,698 Total interest expense 9,541 3,252 2,108 5,435 119 5,313 25,768 Net interest income (loss) 63,455 10,935 3,251 (2,953 ) (119 ) (3,639 ) 70,930 Provision for loan losses 19,925 733 364 15,374 — 455 36,851 Net interest income (loss) after loss provision 43,530 10,202 2,887 (18,327 ) (119 ) (4,094 ) 34,079 Sponsorship and race winnings — — — — 16,008 — 16,008 Race team related expenses — — — — (7,211 ) — (7,211 ) Other (expense) (17,501 ) (5,356 ) (532 ) (8,106 ) (5,298 ) (5,822 ) (42,615 ) Net income (loss) before taxes 26,029 4,846 2,355 (26,433 ) 3,380 (9,916 ) 261 Income tax benefit (provision) (6,741 ) (1,255 ) (568 ) 6,375 (815 ) 4,930 1,926 Net income (loss) $ 19,288 $ 3,591 $ 1,787 $ (20,058 ) $ 2,565 $ (4,986 ) $ 2,187 Balance Sheet Data Total loans, net $ 690,466 $ 228,491 $ 64,646 $ 112,003 $ — $ 3,563 $ 1,099,169 Total assets 702,541 239,991 87,486 226,868 33,134 229,734 1,519,754 Total funds borrowed 559,995 190,871 69,658 180,040 7,758 178,793 1,187,115 Selected Financial Ratios Return on average assets 4.01 % 2.50 % 2.69 % (10.82 )% 10.76 % (2.90 )% (0.12 )% Return on average equity 17.42 11.34 13.43 (54.12 ) NM (11.52 ) (0.60 ) Interest yield 15.45 9.44 11.59 2.50 N/A N/A 11.68 Net interest margin 13.43 7.27 7.03 (2.97 ) N/A N/A 8.57 Reserve coverage 2.25 0.97 0.00 (1) 18.22 N/A N/A 3.77 Delinquency status (2) 0.69 0.11 0.40 (1) 2.41 N/A N/A 0.73 Charge-off ratio 2.30 0.20 1.77 (3) 18.29 N/A N/A 3.92 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Three Months Ended September 30, 2018 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 24,001 $ 3,968 $ 2,370 $ 2,126 $ — $ 687 $ 33,152 Total interest expense 2,306 709 500 3,672 40 1,660 8,887 Net interest income (loss) 21,695 3,259 1,870 (1,546 ) (40 ) (973 ) 24,265 Provision for loan losses 4,423 598 (75 ) 13,259 — — 18,205 Net interest income (loss) after loss provision 17,272 2,661 1,945 (14,805 ) (40 ) (973 ) 6,060 Sponsorship and race winning — — — — 5,371 — 5,371 Race team related expenses — — — — (2,876 ) — (2,876 ) Other income (expense) (3,160 ) 400 (945 ) (4,077 ) (1,887 ) (2,849 ) (12,518 ) Net income (loss) before taxes 14,112 3,061 1,000 (18,882 ) 568 (3,822 ) (3,963 ) Income tax benefit (provision) (3,979 ) (863 ) (232 ) 4,371 (107 ) 927 117 Net income (loss) $ 10,133 $ 2,198 $ 768 $ (14,511 ) $ 461 $ (2,895 ) $ (3,846 ) Balance Sheet Data as of September 30, 2018 Total loans, net $ 572,995 $ 168,781 $ 77,886 $ 235,827 $ — $ 4,572 $ 1,060,061 Total assets 582,610 175,333 88,035 369,763 36,237 319,429 1,571,407 Total funds borrowed 431,868 132,914 53,323 399,750 7,614 239,605 1,265,074 Balance Sheet Data as of December 31, 2018 Total loans, net $ 580,182 $ 181,359 $ 59,973 $ 155,863 $ — $ 4,110 $ 981,487 Total assets 590,746 188,892 90,264 273,501 29,925 208,518 1,381,846 Total funds borrowed 434,527 143,815 51,266 294,465 7,649 130,306 1,062,028 Selected Financial Ratios as of September 30, 2018 Return on average assets 6.80 % 4.57 % 3.50 % (15.23 )% 4.94 % (4.29 )% (1.19 )% Return on average equity 27.77 19.99 7.47 NM 42.83 (15.05 ) (6.59 ) Interest yield 15.87 8.10 12.33 3.41 N/A N/A 10.75 Net interest margin 14.34 6.65 9.73 (2.48 ) N/A N/A 7.94 Reserve coverage 0.50 0.51 0.13 9.81 N/A N/A 2.71 Delinquency status (2) 0.55 0.10 0.51 (1) 4.06 N/A N/A 1.29 Charge-off ratio 3.19 1.34 0.00 (1) 10.35 N/A N/A 3.69 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. Consumer Lending Corp. Six Months Ended September 30, 2018 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 46,133 $ 8,605 $ 4,587 $ 5,315 $ — $ 1,156 $ 65,796 Total interest expense 4,442 1,448 985 7,045 81 2,811 16,812 Net interest income (loss) 41,691 7,157 3,602 (1,730 ) (81 ) (1,655 ) 48,984 Provision for loan losses 9,133 1,475 100 38,073 — — 48,781 Net interest income (loss) after loss provision 32,558 5,682 3,502 (39,803 ) (81 ) (1,655 ) 203 Sponsorship and race winning — — — — 10,599 — 10,599 Race team related expenses — — — — (5,416 ) — (5,416 ) Other (expense) (8,680 ) (1,285 ) (1,887 ) (6,888 ) (4,124 ) (4,390 ) (27,254 ) Net income (loss) before taxes 23,878 4,397 1,615 (46,691 ) 978 (6,045 ) (21,868 ) Income tax benefit (provision) (6,141 ) (1,159 ) (368 ) 10,528 (150 ) 1,428 4,138 Net income (loss) $ 17,737 $ 3,238 $ 1,247 $ (36,163 ) $ 828 $ (4,617 ) $ (17,730 ) Balance Sheet Data as of September 30, 2018 Total loans, net $ 572,995 $ 168,781 $ 77,886 $ 235,827 $ — $ 4,572 $ 1,060,061 Total assets 582,610 175,333 88,035 369,763 36,237 319,429 1,571,407 Total funds borrowed 431,868 132,914 53,323 399,750 7,614 239,605 1,265,074 Balance Sheet Data as of December 31, 2018 Total loans, net $ 580,182 $ 181,359 $ 59,973 $ 155,863 $ — $ 4,110 $ 981,487 Total assets 590,746 188,892 90,264 273,501 29,925 208,518 1,381,846 Total funds borrowed 434,527 143,815 51,266 294,465 7,649 130,306 1,062,028 Selected Financial Ratios as of September 30, 2018 Return on average assets 6.14 % 3.42 % 2.81 % (18.49 )% 4.46 % (3.55 )% (2.51 )% Return on average equity 25.84 15.22 6.05 NM 38.67 (11.16 ) (13.34 ) Interest yield 15.88 8.94 13.48 4.03 N/A N/A 10.91 Net interest margin 14.35 7.44 10.58 (1.31 ) N/A N/A 8.17 Reserve coverage 0.50 0.51 0.13 9.81 N/A N/A 2.71 Delinquency status (2) 0.55 0.10 0.51 (1) 4.06 N/A N/A 1.29 Charge-off ratio 3.26 1.27 0.00 (1) 9.66 N/A N/A 3.53 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 9 Months Ended |
Sep. 30, 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 Months Ended March 31, 2018 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) | 9 Months Ended |
Sep. 30, 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 Ended March 31, 2018 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 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) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Summary of net revenue received | The following table summarizes the net revenues received from the Bank not eliminated under Investment Company Accounting. (Dollars in thousands) Three Months Ended March 31, 2018 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) | 9 Months Ended |
Sep. 30, 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. September 30, 2019 December 31, 2018 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and federal funds sold (1) $ 55,015 $ 55,015 $ 57,713 $ 57,713 Equity investments 9,880 9,880 9,197 9,197 Investment securities 47,422 47,422 45,324 45,324 Loans receivable 1,099,169 1,099,169 981,487 981,487 Accrued interest receivable (2) 8,040 8,040 7,413 7,413 Financial liabilities Funds borrowed (3) 1,187,115 1,188,850 1,062,028 1,062,297 Accrued interest payable (2) 3,511 3,511 3,852 3,852 (1) Categorized as level 1 within the fair value hierarchy. See Note 17. (2) Categorized as level 3 within the fair value hierarchy. See Note 17. (3) As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 and $269. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018. September 30, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,880 $ 9,880 Available for sale investment securities (1) — 47,422 — 47,422 Total $ — $ 47,422 $ 9,880 $ 57,302 (1) Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 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 three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the three months ended March 31, 2018 under Investment Company Accounting. (Dollars in thousands) Equity Investments June 30, 2019 $ 9,797 Gains included in earnings 414 Purchases, investments, and issuances 1,077 Sales, maturities, settlements, and distributions (1,408 ) September 30, 2019 $ 9,880 Amounts related to held assets (1) $ (998 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019. (Dollars in thousands) Equity Investments December 31, 2018 $ 9,197 Gains included in earnings 510 Purchases, investments, and issuances 2,727 Sales, maturities, settlements, and distributions (2,554 ) September 30, 2019 $ 9,880 Amounts related to held assets (1) $ (1,300 ) (1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019. (Dollars in thousands) Equity Investments June 30, 2018 $ 10,773 Losses included in earnings (400 ) Purchases, investments, and issuances 631 Sales, maturities, settlements, and distributions (252 ) September 30, 2018 $ 10,752 Amounts related to held assets (1) $ (400 ) ( 1 ) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. (Dollars in thousands) Equity Investments March 31, 2018 $ 9,458 Losses included in earnings (774 ) Purchases, investments, and issuances 1,160 Sales, maturities, settlements, and distributions (469 ) Transfers in (1) 1,377 September 30, 2018 $ 10,752 Amounts related to held assets (2) $ (774 ) (1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter. (2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. (Dollars in thousands) Medallion Loans Commercial Loans Investments in Medallion Bank & Other Controlled Subsidiaries Equity Investments Investments Other Than Securities Other Assets 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. |
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2019 and December 31, 2018 under Bank Holding Company Accounting. September 30, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ — $ — $ 27,078 $ 27,078 Loan collateral in process of foreclosure — — 53,539 53,539 Total $ — $ — $ 80,617 $ 80,617 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 September 30, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting. (Dollars in thousands) Fair Value at 9/30/19 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity investments $ 7,038 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,387 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 Discount for lack of marketability 25% 1,455 Precedent market transaction Offering price $8.73/share (Dollars in thousands) Fair Value at 12/31/18 Valuation Techniques Unobservable Inputs Range (Weighted Average) 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 $8.73/share 209 Investee book value Valuation indicated by investee filings N/A |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2019USD ($)Medallion | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
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 | $ 3,091,000 | $ 4,305,000 | $ 5,535,000 |
Medallion Financing Trust I [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Aggregate assets of trust | $ 36,139,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Apr. 02, 2018 | Jan. 01, 2016 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Non-marketable securities | $ 9,880,000 | $ 9,880,000 | $ 9,197,000 | |||||||||||||
Net premium on investment securities | [1] | $ 3,287,000 | ||||||||||||||
Investment securities Amortized to interest income | 21,000 | $ 26,000 | $ 47,000 | 46,000 | ||||||||||||
Net loan origination costs | 17,867,000 | 14,416,000 | ||||||||||||||
Net amortization to income | 1,364,000 | 1,147,000 | 3,753,000 | 2,192,000 | ||||||||||||
Premiums in loan portfolio | 69,294,000 | $ 69,294,000 | 58,085,000 | |||||||||||||
Percentage of write down of loan balance | 40.00% | |||||||||||||||
Loans pledged as collateral | 30,295,000 | $ 30,295,000 | 40,500,000 | |||||||||||||
Principal portion of loans serviced, fair value | 125,818,000 | 125,818,000 | 140,180,000 | |||||||||||||
Reserves against future losses | $ 6,032,000 | |||||||||||||||
Bank's reserves against future losses | $ 17,351,000 | |||||||||||||||
Intangible assets useful life | 20 years | |||||||||||||||
Goodwill | 150,803,000 | 150,803,000 | 150,803,000 | $ 150,803,000 | 150,803,000 | 150,803,000 | ||||||||||
Intangible assets, net | 52,898,000 | 59,958,000 | 59,958,000 | 52,898,000 | 59,958,000 | 53,982,000 | ||||||||||
Amortization of intangible assets | 361,000 | 361,000 | 1,084,000 | 722,000 | [1] | |||||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | 0 | |||||||||||||
Depreciation and amortization | $ 23,000 | |||||||||||||||
Amortization expense | 613,000 | 558,000 | 1,731,000 | 1,322,000 | ||||||||||||
Deferred costs | 5,589,000 | 4,859,000 | 4,859,000 | $ 5,589,000 | $ 4,859,000 | $ 4,461,000 | ||||||||||
Potential dilutive common shares excluded from EPS computation | 468,055 | 115,000 | ||||||||||||||
Stock based compensation award | 375,481 | 39,000 | ||||||||||||||
Stock based compensation award, Amount | $ 348,000 | $ 151,000 | $ 853,000 | $ 466,000 | ||||||||||||
Stock based compensation award per diluted common share | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 | ||||||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 1,663,000 | $ 1,663,000 | ||||||||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 42 months | |||||||||||||||
Tier 1 leverage capital ratio | 15.91% | 15.91% | ||||||||||||||
Capital conversation buffer | 0.625% | |||||||||||||||
Period increase of capital conversation buffer | 0.625% | |||||||||||||||
Common Equity Tier 1 risk-based capital ratio | 13.70% | 13.70% | 14.30% | |||||||||||||
Tier 1 risk-based capital ratio | 16.10% | 16.10% | 16.90% | |||||||||||||
Total risk-based capital ratio | 17.40% | 17.40% | 18.20% | |||||||||||||
Restricted Shares [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stock based compensation award | 10,417 | 4,751 | 163,098 | 178,266 | 101,010 | 101,010 | ||||||||||
Restricted Stock Units [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Stock based compensation award | 26,040 | 26,040 | 0 | |||||||||||||
Leasehold Improvements [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Depreciation and amortization | $ 109,000 | $ 131,000 | $ 313,000 | $ 289,000 | ||||||||||||
Minimum [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life of fixed assets | 3 years | |||||||||||||||
Tier 1 leverage capital to total assets ratio | 15.00% | 15.00% | ||||||||||||||
Common Equity Tier 1 risk-based capital ratio | 7.00% | 7.00% | ||||||||||||||
Tier 1 risk-based capital ratio | 8.50% | 8.50% | ||||||||||||||
Total risk-based capital ratio | 10.50% | 10.50% | ||||||||||||||
Maximum [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Estimated useful life of fixed assets | 10 years | |||||||||||||||
91+ [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Premiums in loan portfolio | $ 8,123,000 | $ 8,123,000 | $ 20,154,000 | |||||||||||||
91+ [Member] | Loans [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Premiums in loan portfolio | $ 8,123,000 | $ 8,123,000 | $ 20,154,000 | |||||||||||||
Total loans more than 90 days past due ,percentage | 0.73% | 0.73% | 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 amortization to income | 3,065,000 | |||||||||||||||
Reserves against future losses | $ 4,608,000 | |||||||||||||||
Amortization of intangible assets | $ 0 | |||||||||||||||
RPAC [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Premiums in loan portfolio | $ 12,387,000 | |||||||||||||||
Amortization of intangible assets | 5,615,000 | |||||||||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | $ 6,161,000 | 10,607,000 | $ 10,607,000 | 6,161,000 | 10,607,000 | 9,048,000 | ||||||||||
Loan portfolio premium amortized to interest income | $ 713,000 | $ 1,780,000 | 2,886,000 | $ 1,780,000 | ||||||||||||
Bank Holding Company Accounting [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Net premium on investment securities | $ 236,000 | $ 154,000 | ||||||||||||||
Private Placement [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Interest reserve | $ 2,970,000 | |||||||||||||||
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Investments In Loans [Line Items] | |||
Intangibles assets | $ 52,898 | $ 53,982 | $ 59,958 |
Intellectual Property [Member] | |||
Investments In Loans [Line Items] | |||
Intangibles assets | 20,350 | 21,176 | |
Contractor Relationships [Member] | |||
Investments In Loans [Line Items] | |||
Intangibles assets | 6,383 | 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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Accounting Policies [Abstract] | |||||
Net income (loss)/net decrease in net assets resulting from operations available to common stockholders | $ 4,975 | $ (4,697) | $ (1,297) | $ (34,218) | |
Weighted average common shares outstanding applicable to basic EPS | 24,361,680 | 24,235,242 | 24,336,677 | 24,207,273 | [1] |
Effect of dilutive stock options | 16,543 | ||||
Effect of restricted stock grants | 228,944 | ||||
Adjusted weighted average common shares outstanding applicable to diluted EPS | 24,607,167 | 24,235,242 | 24,336,677 | 24,207,273 | [1] |
Basic income (loss) per share | $ 0.20 | $ (0.19) | $ (0.05) | $ (1.41) | [1] |
Diluted income (loss) per share | $ 0.20 | $ (0.19) | $ (0.05) | $ (1.41) | [1] |
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | $ 153,580 | $ 141,608 |
Tier 1 capital | 179,883 | 167,911 |
Total capital | 194,436 | 180,917 |
Average assets | 1,130,642 | 1,059,461 |
Risk-weighted assets | $ 1,120,179 | $ 993,374 |
Leverage ratio | 15.90% | 15.80% |
Common equity Tier 1 capital ratio | 13.70% | 14.30% |
Tier 1 capital ratio | 16.10% | 16.90% |
Total capital ratio | 17.40% | 18.20% |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 46,710 | $ 46,423 |
Gross Unrealized Gains | 831 | 50 |
Gross Unrealized Losses | (119) | (1,149) |
Fair Value | 47,422 | 45,324 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,431 | 32,184 |
Gross Unrealized Gains | 569 | 15 |
Gross Unrealized Losses | (65) | (742) |
Fair Value | 34,935 | 31,457 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,279 | 14,239 |
Gross Unrealized Gains | 262 | 35 |
Gross Unrealized Losses | (54) | (407) |
Fair Value | $ 12,487 | $ 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, due in one year or less | $ 35 | |
Amortized Cost, due after one year through five years | 12,416 | |
Amortized Cost, due after five years through ten years | 10,267 | |
Amortized Cost, due after ten years | 23,992 | |
Amortized Cost | 46,710 | $ 46,423 |
Market Value, due in one year or less | 35 | |
Market Value, due after one year through five years | 12,497 | |
Market Value, due after five years through ten years | 10,417 | |
Market Value, due after ten years | 24,473 | |
Market Value, total | $ 47,422 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | $ (40) | $ (132) |
Fair Value, Less than Twelve Months | 4,252 | 10,045 |
Gross Unrealized Losses, Twelve Months and Over | (79) | (1,017) |
Fair Value, Twelve Months and Over | 7,845 | 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 | (39) | (54) |
Fair Value, Less than Twelve Months | 4,083 | 4,616 |
Gross Unrealized Losses, Twelve Months and Over | (26) | (688) |
Fair Value, Twelve Months and Over | 5,075 | 24,871 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (1) | (78) |
Fair Value, Less than Twelve Months | 169 | 5,429 |
Gross Unrealized Losses, Twelve Months and Over | (53) | (329) |
Fair Value, Twelve Months and Over | $ 2,770 | $ 6,259 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 1,117,694 | [1] | $ 993,788 | [2] | |||
Allowance for losses | (43,113) | [3] | (36,395) | $ (40,670) | $ (29,484) | $ (21,425) | |
Net loans receivable | 1,099,169 | 981,487 | $ 1,060,061 | ||||
Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | 1,142,282 | 1,017,882 | 1,088,475 | ||||
Allowance for losses | (43,113) | (36,395) | |||||
Net loans receivable | $ 1,099,169 | $ 981,487 | |||||
Percentage of total gross loans | 100.00% | 100.00% | |||||
Recreation [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 682,939 | [1] | $ 567,209 | [2] | |||
Allowance for losses | (15,927) | (6,856) | |||||
Recreation [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 706,393 | $ 587,038 | 668,540 | ||||
Percentage of total gross loans | 62.00% | 58.00% | |||||
Home Improvement [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 233,999 | [1] | $ 185,661 | [2] | |||
Allowance for losses | (2,235) | (1,796) | |||||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 230,726 | $ 183,155 | 209,549 | ||||
Percentage of total gross loans | 20.00% | 18.00% | |||||
Commercial [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 68,209 | $ 64,083 | 64,442 | ||||
Percentage of total gross loans | 6.00% | 6.00% | |||||
Medallion [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 132,547 | [1] | $ 176,835 | [2] | |||
Allowance for losses | (24,951) | (27,743) | |||||
Medallion [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 136,954 | $ 183,606 | $ 145,944 | ||||
Percentage of total gross loans | 12.00% | 18.00% | |||||
[1] | Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 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 $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | $ 993,788 | |||
Charge-offs, net | [2] | $ (5,894) | $ (10,146) | $ (19,297) | (30,133) |
Transfer to loans in process of foreclosure, net | (6,434) | (25,884) | |||
Gross loans, ending balance | [3] | 1,117,694 | 1,117,694 | ||
Recreation [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 567,209 | |||
Transfer to loans in process of foreclosure, net | (3,429) | (10,311) | |||
Gross loans, ending balance | [3] | 682,939 | 682,939 | ||
Home Improvement [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 185,661 | |||
Gross loans, ending balance | [3] | 233,999 | 233,999 | ||
Medallion [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 176,835 | |||
Transfer to loans in process of foreclosure, net | (3,005) | (15,573) | |||
Gross loans, ending balance | [3] | 132,547 | 132,547 | ||
Bank Holding Company Accounting [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 1,088,475 | 1,017,882 | |||
Loan originations | 130,053 | 366,330 | |||
Principal payments | (65,907) | (187,589) | |||
Charge-offs, net | (5,894) | (30,133) | |||
Transfer to loans in process of foreclosure, net | (6,434) | (25,884) | |||
Other | 1,989 | 1,676 | |||
Gross loans, ending balance | 1,142,282 | 1,142,282 | |||
Bank Holding Company Accounting [Member] | Recreation [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 668,540 | 587,038 | |||
Loan originations | 82,662 | 248,989 | |||
Principal payments | (40,790) | (113,680) | |||
Charge-offs, net | (3,489) | (10,853) | |||
Transfer to loans in process of foreclosure, net | (3,429) | (10,311) | |||
Other | 2,899 | 5,210 | |||
Gross loans, ending balance | 706,393 | 706,393 | |||
Bank Holding Company Accounting [Member] | Home Improvement [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 209,549 | 183,155 | |||
Loan originations | 42,641 | 102,821 | |||
Principal payments | (20,729) | (53,508) | |||
Charge-offs, net | (51) | (295) | |||
Other | (684) | (1,447) | |||
Gross loans, ending balance | 230,726 | 230,726 | |||
Bank Holding Company Accounting [Member] | Commercial [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 64,442 | 64,083 | |||
Loan originations | 4,750 | 14,520 | |||
Principal payments | (375) | (9,789) | |||
Charge-offs, net | (819) | (819) | |||
Other | 211 | 214 | |||
Gross loans, ending balance | 68,209 | 68,209 | |||
Bank Holding Company Accounting [Member] | Medallion [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 145,944 | 183,606 | |||
Principal payments | (4,013) | (10,612) | |||
Charge-offs, net | (1,535) | (18,166) | |||
Transfer to loans in process of foreclosure, net | (3,005) | (15,573) | |||
Other | (437) | (2,301) | |||
Gross loans, ending balance | $ 136,954 | $ 136,954 | |||
[1] | Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. | ||||
[2] | As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company. | ||||
[3] | Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | $ 40,670 | $ 21,425 | $ 36,395 | ||||||
Total charge-offs | (9,209) | (11,941) | $ (23,428) | (39,248) | |||||
Total recoveries | 3,315 | 1,795 | 4,131 | 9,115 | |||||
Net charge-offs | [1] | (5,894) | (10,146) | (19,297) | (30,133) | ||||
Provision for loan losses | 8,337 | 18,205 | 48,781 | 36,851 | $ 48,781 | [2] | |||
Allowance for loan losses - ending balance | 43,113 | [3] | 29,484 | 29,484 | 43,113 | [3] | $ 29,484 | ||
Recreation [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | 6,856 | ||||||||
Total charge-offs | (5,444) | (4,825) | (9,471) | (16,366) | |||||
Total recoveries | 1,955 | 1,318 | 3,217 | 5,513 | |||||
Allowance for loan losses - ending balance | 15,927 | 15,927 | |||||||
Home Improvement [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | 1,796 | ||||||||
Total charge-offs | (568) | (659) | (1,220) | (1,655) | |||||
Total recoveries | 517 | 367 | 606 | 1,360 | |||||
Allowance for loan losses - ending balance | 2,235 | 2,235 | |||||||
Commercial [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Total charge-offs | (819) | (819) | |||||||
Total recoveries | 4 | ||||||||
Medallion [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | 27,743 | ||||||||
Total charge-offs | (2,378) | (6,457) | (12,737) | (20,408) | |||||
Total recoveries | 843 | $ 110 | $ 304 | 2,242 | |||||
Allowance for loan losses - ending balance | $ 24,951 | $ 24,951 | |||||||
[1] | As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company. | ||||||||
[2] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | ||||||||
[3] | Includes $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 02, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Cumulative charges of loans and loans process of foreclosure | $ 53,539 | [1] | $ 52,368 | $ 49,495 | [1] | |
Reserves against future losses | $ 6,032 | |||||
Percentage of Allowance | 100.00% | 100.00% | ||||
Bank reserves against future losses | $ 17,351 | |||||
Medallion Bank [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Cumulative charges of loans and loans process of foreclosure | $ 242,889 | |||||
Reserves against future losses | $ 4,608 | |||||
Percentage of Allowance | 11.00% | |||||
Percentage of total gross loans | 3.56% | |||||
Financing Receivables, 90 Days Past Due [Member] | Medallion Bank [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Reserves against future losses | $ 4,608 | |||||
[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 $6,091 as of September 30, 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 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Amount | $ 43,113 | [1] | $ 40,670 | $ 36,395 | $ 29,484 | $ 21,425 |
Percentage of Allowance | 100.00% | 100.00% | ||||
Allowance as a Percent of Loan Category | 3.77% | 3.58% | ||||
Recreation [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Amount | $ 15,927 | $ 6,856 | ||||
Percentage of Allowance | 37.00% | 19.00% | ||||
Allowance as a Percent of Loan Category | 2.25% | 1.17% | ||||
Home Improvement [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Amount | $ 2,235 | $ 1,796 | ||||
Percentage of Allowance | 5.00% | 5.00% | ||||
Allowance as a Percent of Loan Category | 0.97% | 0.98% | ||||
Commercial [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Allowance as a Percent of Loan Category | 0.00% | 0.00% | ||||
Medallion [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Amount | $ 24,951 | $ 27,743 | ||||
Percentage of Allowance | 58.00% | 76.00% | ||||
Allowance as a Percent of Loan Category | 18.22% | 15.11% | ||||
[1] | Includes $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Total nonaccrual loans | $ 27,078 | $ 45,765 | $ 34,877 |
Interest foregone quarter to date | 403 | 563 | 487 |
Amount of foregone interest applied to principal in the quarter | 75 | 350 | 166 |
Interest foregone year to date | 915 | 1,032 | 1,153 |
Amount of foregone interest applied to principal in the year | 244 | 987 | 535 |
Interest foregone life to date | 2,432 | 8,530 | 1,952 |
Amount of foregone interest applied to principal life to date | $ 655 | $ 3,412 | $ 1,214 |
Percentage of nonaccrual loans to gross loan portfolio | 2.00% | 4.00% | 3.00% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,142,282 | $ 1,017,882 |
Percentage of Non-performing to Total | 2.37% | 3.43% |
Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 1,115,204 | $ 983,005 |
Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 27,078 | 34,877 |
Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 706,393 | $ 587,038 |
Percentage of Non-performing to Total | 0.95% | 0.99% |
Recreation [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 699,685 | $ 581,250 |
Recreation [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 6,708 | 5,788 |
Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 230,726 | $ 183,155 |
Percentage of Non-performing to Total | 0.10% | 0.07% |
Home Improvement [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 230,487 | $ 183,018 |
Home Improvement [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 239 | 137 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 68,209 | $ 64,083 |
Percentage of Non-performing to Total | 17.64% | 5.98% |
Commercial [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 56,178 | $ 60,249 |
Commercial [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | 12,031 | 3,834 |
Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 136,954 | $ 183,606 |
Percentage of Non-performing to Total | 5.91% | 13.68% |
Medallion [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 128,854 | $ 158,488 |
Medallion [Member] | Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Status of loans | $ 8,100 | $ 25,118 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | $ 27,078 | $ 48,702 | $ 48,702 | $ 27,078 | $ 34,877 |
Unpaid principal balance, With related allowance | 27,733 | 50,094 | 50,094 | 27,733 | 36,091 |
Related allowance, With related allowance | 3,420 | 10,368 | 10,368 | 3,420 | 22,242 |
Average investment recorded, With related allowance | 29,964 | 67,784 | 65,370 | 25,272 | |
Interest income recognized, With related allowance | 217 | 125 | 434 | 728 | |
Recreation [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 6,708 | 5,075 | 5,075 | 6,708 | 5,788 |
Unpaid principal balance, With related allowance | 6,708 | 5,075 | 5,075 | 6,708 | 5,788 |
Related allowance, With related allowance | 256 | 180 | 180 | 256 | 204 |
Average investment recorded, With related allowance | 6,687 | 5,494 | 4,496 | 6,921 | |
Interest income recognized, With related allowance | 152 | 106 | 231 | 366 | |
Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 239 | 167 | 167 | 239 | 137 |
Unpaid principal balance, With related allowance | 239 | 167 | 167 | 239 | 137 |
Related allowance, With related allowance | 4 | 3 | 3 | 4 | 3 |
Average investment recorded, With related allowance | 243 | 178 | 119 | 245 | |
Interest income recognized, With related allowance | 2 | 2 | |||
Commercial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 12,031 | 5,403 | 5,403 | 12,031 | 3,834 |
Unpaid principal balance, With related allowance | 12,126 | 5,814 | 5,814 | 12,126 | 3,929 |
Related allowance, With related allowance | 100 | 100 | |||
Average investment recorded, With related allowance | 9,616 | 7,047 | 5,838 | 6,827 | |
Interest income recognized, With related allowance | 36 | (82) | (12) | 321 | |
Medallion [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 8,100 | 38,057 | 38,057 | 8,100 | 25,118 |
Unpaid principal balance, With related allowance | 8,660 | 39,038 | 39,038 | 8,660 | 26,237 |
Related allowance, With related allowance | 3,160 | 10,085 | 10,085 | 3,160 | $ 22,035 |
Average investment recorded, With related allowance | 13,418 | 55,065 | 54,917 | 11,279 | |
Interest income recognized, With related allowance | $ 27 | $ 101 | $ 215 | $ 39 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | $ 69,294 | $ 58,085 | ||
Current | 1,048,400 | 935,703 | ||
Total | 1,117,694 | [1] | 993,788 | [2] |
Accruing | 0 | 0 | ||
31-60 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 52,364 | 27,887 | ||
61-90 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 8,807 | 10,044 | ||
91+ [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 8,123 | 20,154 | ||
Recreation [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 31,817 | 28,158 | ||
Current | 651,122 | 539,051 | ||
Total | 682,939 | [1] | 567,209 | [2] |
Accruing | 0 | 0 | ||
Recreation [Member] | 31-60 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 20,615 | 18,483 | ||
Recreation [Member] | 61-90 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 6,771 | 5,655 | ||
Recreation [Member] | 91+ [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 4,431 | 4,020 | ||
Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 1,195 | 1,133 | ||
Current | 232,804 | 184,528 | ||
Total | 233,999 | [1] | 185,661 | [2] |
Accruing | 0 | 0 | ||
Home Improvement [Member] | 31-60 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 687 | 715 | ||
Home Improvement [Member] | 61-90 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 280 | 283 | ||
Home Improvement [Member] | 91+ [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 228 | 135 | ||
Commercial Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 276 | 733 | ||
Current | 67,933 | 63,350 | ||
Total | 68,209 | [1] | 64,083 | [2] |
Accruing | 0 | 0 | ||
Commercial Loans [Member] | 61-90 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 454 | |||
Commercial Loans [Member] | 91+ [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 276 | 279 | ||
Medallion [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 36,006 | 28,061 | ||
Current | 96,541 | 148,774 | ||
Total | 132,547 | [1] | 176,835 | [2] |
Accruing | 0 | 0 | ||
Medallion [Member] | 31-60 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 31,062 | 8,689 | ||
Medallion [Member] | 61-90 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | 1,756 | 3,652 | ||
Medallion [Member] | 91+ [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
31-60 | $ 3,188 | $ 15,720 | ||
[1] | Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs. | |||
[2] | Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs. |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
loan premiums | $ 6,161 | $ 9,047 |
capitalized loan origination costs | $ 18,427 | $ 15,047 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019USD ($)TDR | Sep. 30, 2018USD ($)TDR | Sep. 30, 2019USD ($)TDR | Sep. 30, 2018USD ($)TDR | Sep. 30, 2019USD ($)TDR | Sep. 30, 2018USD ($)TDR | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
Weighted average loan-to-value ratio | 202.00% | 224.00% | 202.00% | 224.00% | 202.00% | 224.00% | 220.00% | |||||
Allowance for loan loss | $ 43,113,000 | [1] | $ 29,484,000 | $ 43,113,000 | [1] | $ 29,484,000 | $ 43,113,000 | [1] | $ 29,484,000 | $ 40,670,000 | $ 36,395,000 | $ 21,425,000 |
Medallion [Member] | ||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
Number of loans modified as TDRs defaulted | TDR | 1 | 10 | 10 | 17 | ||||||||
Allowance for loan loss | $ 24,951,000 | $ 24,951,000 | 24,951,000 | 27,743,000 | ||||||||
Recreation [Member] | ||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
Number of loans modified as TDRs defaulted | TDR | 40 | 276 | ||||||||||
Allowance for loan loss | $ 15,927,000 | $ 15,927,000 | $ 15,927,000 | $ 6,856,000 | ||||||||
Troubled Debt Restructuring Defaulted [Member] | ||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
Number of loans modified as TDRs defaulted | TDR | 3 | |||||||||||
TDR investment value | $ 1,305,000 | $ 1,305,000 | $ 1,305,000 | |||||||||
Allowance for loan loss | $ 773,000 | $ 773,000 | $ 773,000 | |||||||||
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member] | ||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
Number of loans modified as TDRs defaulted | TDR | 3 | |||||||||||
TDR investment value | 812,000 | 812,000 | $ 812,000 | |||||||||
Allowance for loan loss | 365,000 | 365,000 | $ 365,000 | |||||||||
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member] | ||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||||
Number of loans modified as TDRs defaulted | TDR | 191 | |||||||||||
TDR investment value | 1,727,000 | 1,727,000 | $ 1,727,000 | |||||||||
Allowance for loan loss | $ 66,000 | $ 66,000 | $ 66,000 | |||||||||
[1] | Includes $4,608 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 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032. |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)TDR | Sep. 30, 2018USD ($)TDR | Sep. 30, 2019USD ($)TDR | Sep. 30, 2018USD ($)TDR | |
Medallion [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of Loans | TDR | 1 | 10 | 10 | 17 |
Pre- Modification Investment | $ 758 | $ 4,810 | $ 4,041 | $ 7,505 |
Post- Modification Investment | $ 758 | $ 4,810 | $ 4,041 | $ 7,505 |
Recreation [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of Loans | TDR | 40 | 276 | ||
Pre- Modification Investment | $ 587 | $ 4,109 | ||
Post- Modification Investment | $ 505 | $ 2,619 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans in process of foreclosure - beginning balance | $ 52,368 | $ 49,495 | [1] | |
Transfer from loans, net | 6,434 | 25,884 | ||
Sales | (1,991) | (6,614) | ||
Cash payments received | (1,556) | (6,100) | ||
Collateral valuation adjustments | (1,716) | (9,126) | ||
Loans in process of foreclosure – ending balance | [1] | 53,539 | 53,539 | |
Recreation [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans in process of foreclosure - beginning balance | 955 | 1,503 | ||
Transfer from loans, net | 3,429 | 10,311 | ||
Sales | (1,604) | (5,715) | ||
Collateral valuation adjustments | (1,603) | (4,922) | ||
Loans in process of foreclosure – ending balance | 1,177 | 1,177 | ||
Medallion [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans in process of foreclosure - beginning balance | 51,413 | 47,992 | ||
Transfer from loans, net | 3,005 | 15,573 | ||
Sales | (387) | (899) | ||
Cash payments received | (1,556) | (6,100) | ||
Collateral valuation adjustments | (113) | (4,204) | ||
Loans in process of foreclosure – ending balance | $ 52,362 | $ 52,362 | ||
[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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018. |
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) |
Investments in Subsidiaries [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 |
Investments Other than Securities [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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2018 | ||
Net change in unrealized appreciation (depreciation) on investments | |||
Unrealized appreciation | $ 37,797 | ||
Unrealized depreciation | 40,067 | ||
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries | [1] | $ 29,115 | |
Net realized gains (losses) on investments | |||
Total | [1],[2] | $ (34,745) | |
Investment Company Accounting [Member] | |||
Net change in unrealized appreciation (depreciation) on investments | |||
Unrealized appreciation | (998) | ||
Unrealized depreciation | (38,152) | ||
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) | ||
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] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | ||
[2] | 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 | 6 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||||
Investment income | [1] | $ 34,640 | $ 33,152 | $ 96,698 | $ 69,829 | [2] | ||||||||
Interest expense | 9,225 | [3] | 8,887 | [3] | $ 16,812 | 25,768 | [3] | 20,363 | [2],[3] | |||||
Net interest income/net investment income | 25,415 | 24,265 | 48,984 | 70,930 | 49,466 | [2] | ||||||||
Noninterest income | 8,874 | 9,441 | 17,420 | 14,379 | [2] | |||||||||
Operating expenses | $ 1,150 | |||||||||||||
Income (loss) before income taxes/net investment loss before taxes | 7,600 | [4] | (3,963) | [4] | (21,868) | 261 | [4] | (25,434) | [2],[4] | |||||
Income tax benefit | (165) | 117 | 4,138 | 1,926 | 4,778 | |||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 7,435 | $ (6,643) | $ 1,395 | (3,846) | $ (13,884) | $ (17,730) | 2,187 | (32,604) | [2] | |||||
Net realized/unrealized losses of Medallion Bank | [2] | 14,675 | ||||||||||||
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank | [2] | (11,644) | ||||||||||||
Net increase (decrease) in net assets resulting from operations and other controlled subsidiaries | $ 4,975 | $ (4,697) | $ (1,297) | $ (34,218) | ||||||||||
Medallion Bank [Member] | ||||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||||
Investment income | 26,880 | |||||||||||||
Interest expense | 3,615 | |||||||||||||
Net interest income/net investment income | 23,265 | |||||||||||||
Noninterest income | 19 | |||||||||||||
Operating expenses | 7,158 | |||||||||||||
Income (loss) before income taxes/net investment loss before taxes | 16,126 | |||||||||||||
Income tax benefit | 3,321 | |||||||||||||
Net income (loss) 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 | [5] | 39,092 | ||||||||||||
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank | (885) | |||||||||||||
Net increase (decrease) in net assets resulting from operations and other controlled subsidiaries | 29,115 | |||||||||||||
Medallion Bank [Member] | Medallion Financing Trust I [Member] | ||||||||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||||||||
Net increase (decrease) in net assets resulting from operations and other controlled subsidiaries | $ (9,092) | |||||||||||||
[1] | Included in interest and investment income is $212 and $637 of paid in kind interest for the three and nine months ended September 30, 2019 and $450 and $1,428 for the comparable 2018 periods. | |||||||||||||
[2] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | |||||||||||||
[3] | Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods. | |||||||||||||
[4] | Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information | |||||||||||||
[5] | Unrealized depreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of the Bank. |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||||
2020 | $ 390,888 | |||
2021 | 252,082 | |||
2022 | 225,840 | |||
2023 | 117,693 | |||
2024 | 135,112 | |||
Thereafter | 65,500 | |||
Long term debt | $ 1,187,115 | $ 1,062,028 | $ 1,265,074 | |
Funds borrowed | 1,062,028 | |||
Interest Rate | [1] | 2.91% | ||
Deposits [Member] | ||||
Debt Instrument [Line Items] | ||||
2020 | $ 348,385 | |||
2021 | 182,587 | |||
2022 | 225,560 | |||
2023 | 112,413 | |||
2024 | 94,042 | |||
Long term debt | $ 962,987 | |||
Funds borrowed | 848,040 | |||
Interest Rate | [1] | 2.37% | ||
Small Business Administration Debentures and Borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
2020 | $ 23,093 | |||
2021 | 8,500 | |||
2023 | 5,000 | |||
2024 | 5,000 | |||
Thereafter | 32,500 | |||
Long term debt | $ 74,093 | |||
Funds borrowed | 80,099 | |||
Interest Rate | [1] | 3.41% | ||
Retail and Privately Placed Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
2021 | $ 33,625 | |||
2024 | 36,000 | |||
Long term debt | $ 69,625 | |||
Funds borrowed | 33,625 | |||
Interest Rate | [1] | 8.61% | ||
Preferred Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Thereafter | $ 33,000 | |||
Long term debt | $ 33,000 | |||
Funds borrowed | 33,000 | |||
Interest Rate | [1] | 4.24% | ||
Other Borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
2020 | $ 11,758 | |||
Long term debt | $ 11,758 | |||
Funds borrowed | 7,649 | |||
Interest Rate | [1] | 2.09% | ||
Notes Payable to Banks [Member] | ||||
Debt Instrument [Line Items] | ||||
2020 | $ 7,652 | |||
2021 | 27,370 | |||
2022 | 280 | |||
2023 | 280 | |||
2024 | 70 | |||
Long term debt | $ 35,652 | |||
Funds borrowed | $ 59,615 | |||
Interest Rate | [1] | 4.25% | ||
[1] | Weighted average contractual rate as of September 30, 2019. |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) - USD ($) | Jul. 06, 2019 | Dec. 31, 2007 | Jun. 30, 2007 | Sep. 30, 2019 | Mar. 31, 2019 | Nov. 30, 2018 | Apr. 30, 2016 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | [1] | Dec. 31, 2018 | Aug. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2008 |
Debt Instrument [Line Items] | ||||||||||||||||
Pay off one of the notes payable discount rate | 50.00% | |||||||||||||||
Gain on debt extinguishment | $ 4,145,000 | $ 4,145,000 | ||||||||||||||
Repayments of credit facilities | $ 10,819,000 | |||||||||||||||
Waiver of loan from lender | $ 3,096,000 | |||||||||||||||
Waiver expiry date | Dec. 1, 2019 | |||||||||||||||
Gain loss on sales of loans net | $ 5,488,000 | $ 5,488,000 | ||||||||||||||
Issue of common stock | 27,560,539 | 27,560,539 | 27,385,600 | |||||||||||||
Short term promissory note | $ 42,503,000 | $ 42,503,000 | $ 55,178,000 | |||||||||||||
Federal Funds Issued | 4,000,000 | |||||||||||||||
Federal Funds, Interest Rate | 2.25% | |||||||||||||||
Richard Petty [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maturity date | Mar. 31, 2020 | |||||||||||||||
Loan amount | $ 7,149,000 | |||||||||||||||
Annual interest rate | 2.00% | |||||||||||||||
Outstanding loan amount | 7,258,000 | $ 7,258,000 | ||||||||||||||
Travis Burt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maturity date | Dec. 31, 2019 | |||||||||||||||
Short term promissory note | 500,000 | $ 500,000 | ||||||||||||||
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 | $ 33,000,000 | ||||||||||||||
Preferred Securities [Member] | 90 day LIBOR [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 2.09% | |||||||||||||||
Preferred Securities [Member] | LIBOR Rate [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Basis spread on variable rate | 2.13% | |||||||||||||||
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 | |||||||||||||||
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 | |||||||||||||||
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% | 3.25% | ||||||||||||||
Debt instrument commitments amount fully utilized | $ 172,485,000 | $ 172,485,000 | ||||||||||||||
Debt instrument commitments available | 3,000,000 | 3,000,000 | ||||||||||||||
Debt instrument outstanding amount | 74,093,000 | 74,093,000 | ||||||||||||||
Debt instrument remaining amount | 23,093,000 | 23,093,000 | ||||||||||||||
FSVC's [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of loan | $ 33,485,000 | |||||||||||||||
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 | |||||||||||||||
Retail and Privately Placed Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate Percentage | 8.25% | 9.00% | 8.25% | |||||||||||||
Aggregate principal amount | $ 30,000,000 | $ 33,625,000 | $ 30,000,000 | $ 6,000,000 | ||||||||||||
Maturity date | 2024 | 2021 | ||||||||||||||
Gain loss on sales of loans net | $ 4,145,000 | |||||||||||||||
Net proceeds from offering | $ 31,786,000 | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Time deposits | $ 250,000 | 250,000 | ||||||||||||||
Minimum [Member] | Small Business Administration Debentures and Borrowings [Member] | Paid on or Before February 1, 2018 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument minimum annual payment | 5,000,000 | |||||||||||||||
Minimum [Member] | Small Business Administration Debentures and Borrowings [Member] | Paid on or Before February 1, 2019 [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% | |||||||||||||||
[1] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Funds Borrowed - Summary of Tim
Funds Borrowed - Summary of Time Deposits of $100,000 or More (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Banking And Thrift [Abstract] | |
Three months or less | $ 84,392 |
Over three months through six months | 66,100 |
Over six months through one year | 197,893 |
Over one year | 614,602 |
Total deposits | $ 962,987 |
Funds Borrowed - Summary of Key
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Notes Payable [Line Items] | ||
Average Interest Rate | 2.91% | [1] |
Notes Payable to Banks [Member] | ||
Notes Payable [Line Items] | ||
Note Amounts | $ 43,080 | |
Balance outstanding | $ 35,652 | |
Average Interest Rate | 4.25% | [1] |
Notes Payable to Banks [Member] | Medallion Financial Corp [Member] | ||
Notes Payable [Line Items] | ||
Note Dates | Apr. 30, 2011 | |
Note Dates | Aug. 31, 2014 | |
Maturity Dates | Sep. 30, 2020 | |
Maturity Dates | Mar. 31, 2021 | |
Type | Term loans and demand notes secured by pledged loans | [2] |
Note Amounts | $ 23,231 | [2] |
Balance outstanding | $ 23,231 | |
Payment | Interest only | [3] |
Average Interest Rate | 4.63% | |
Notes Payable to Banks [Member] | Medallion Chicago [Member] | ||
Notes Payable [Line Items] | ||
Note Dates | Nov. 30, 2011 | |
Note Dates | Dec. 31, 2011 | |
Maturity Dates | Feb. 28, 2021 | |
Type | Term loans secured by owned Chicago medallions | [4] |
Note Amounts | $ 18,449 | |
Balance outstanding | $ 11,231 | |
Payment | $134 of principal & interest paid monthly | |
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 | $ 1,400 | |
Balance outstanding | $ 1,190 | |
Payment | $70 principal & interest paid quarterly | |
Average Interest Rate | 4.00% | |
[1] | Weighted average contractual rate as of September 30, 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 $81. | |
[4] | Guaranteed by the Company. |
Funds Borrowed - Summary of K_2
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
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 | $ 81,000 |
Medallion Financial Corp [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Description of variable rate basis | 30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%, |
Medallion Financial Corp [Member] | 30 Day LIBOR [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 2.02% |
Medallion Financial Corp [Member] | 360 Day LIBOR [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 2.03% |
Medallion Financial Corp [Member] | Prime Rate [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 5.00% |
Medallion Chicago [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
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%. |
Debt Instrument interest rate, stated percentage | 3.75% |
Medallion Chicago [Member] | Prime Rate Plus [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 0.50% |
Medallion Chicago [Member] | Fixed Interest Rate [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 3.75% |
Medallion Chicago [Member] | LIBOR Rate [Member] | Notes Payable to Banks [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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 531 | $ 1,593 |
Operating cash flows from operating leases | 556 | 1,680 |
Right-of-use asset obtained in exchange for lease liability | $ 29 | $ (1) |
Leases - Schedule of Breakout o
Leases - Schedule of Breakout of Operating leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 12,559 |
Other current liabilities | 1,820 |
Operating lease liabilities | 12,090 |
Total operating lease liabilities | $ 13,910 |
Weighted average remaining lease term | 3 years 8 months 12 days |
Weighted average discount rate | 4.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of the Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 600 |
2020 | 2,397 |
2021 | 2,295 |
2022 | 2,228 |
2023 | 2,136 |
Thereafter | 6,042 |
Total lease payments | 15,698 |
Less imputed interest | 1,788 |
Total operating lease liabilities | $ 13,910 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | ||
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles | $ (44,315) | $ (45,272) | |
Provision for loan losses | 19,529 | 25,790 | |
Net operating loss carryforwards | [1] | 21,166 | 11,132 |
Accrued expenses, compensation, and other assets | 1,932 | 1,844 | |
Unrealized gains on other investments | (4,737) | (2,024) | |
Total deferred tax liability | (6,425) | (8,530) | |
Valuation allowance | (462) | (255) | |
Deferred tax liability, net | (6,887) | (8,785) | |
Taxes receivable | 1,290 | 1,812 | |
Net deferred and other tax liabilities | $ (5,597) | $ (6,973) | |
[1] | As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 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 $20,704 as of September 30, 2019. |
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 | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Income Tax Rate Reconciliation [Line Items] | |
Net operating loss carryforwards | $ 87,433 |
Net operating loss carryforwards expiration period | expire at various dates between December 31, 2026 and December 31, 2035 |
Net operating loss carryforwards assets | $ 20,704 |
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 | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current | |||||
Federal | $ (230) | $ (9,353) | $ (1,099) | $ (3,040) | |
State | (661) | (2,318) | (1,620) | (1,078) | |
Deferred | |||||
Federal | (887) | 9,100 | 1,311 | 8,128 | |
State | 1,613 | 2,688 | 3,334 | 768 | |
Net (provision) benefit for income taxes | $ (165) | $ 117 | $ 4,138 | $ 1,926 | $ 4,778 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Statutory Federal income tax (provision) benefit at 21% | $ (1,616) | $ 877 | $ (332) | $ 8,106 | |
State and local income taxes, net of federal income tax benefit | (547) | (107) | (113) | 994 | |
Revaluation of net operating losses | 876 | 380 | |||
Appreciation of Medallion Bank | (1,974) | ||||
Utilization of carry forwards | (247) | (910) | |||
Change in state income tax accruals | 600 | ||||
Change in effective state income tax rate | 608 | 916 | (1,358) | ||
Income attributable to non-controlling interest | 451 | 451 | |||
Non deductible expenses | (215) | (403) | |||
Other | 63 | (191) | 24 | 323 | |
Net (provision) benefit for income taxes | $ (165) | $ 117 | $ 4,138 | $ 1,926 | $ 4,778 |
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) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal income tax (provision) benefit percentage | 21.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory rate | 21.00% | 35.00% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) | Jun. 15, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 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 | 497,721 | [1] | 498,714 | 501,043 | 497,721 | [1] | 144,666 | 320,626 | ||||||
Stock option exercisable | [1] | 81,667 | 81,667 | |||||||||||
Unvested shares of common stock outstanding | 416,054 | 420,825 | 437,154 | 416,054 | 62,777 | |||||||||
Weighted average fair value of options granted | $ 6.55 | $ 6.48 | ||||||||||||
Intrinsic value of options vested | $ 8,000 | $ 34,000 | ||||||||||||
Restricted Shares [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted average fair value of options granted | $ 2.98 | $ 1.06 | ||||||||||||
Number of shares available for grant | 10,417 | 4,751 | 163,098 | 178,266 | 101,010 | 101,010 | ||||||||
Number of shares outstanding | 247,616 | [2] | 237,878 | 250,482 | 247,616 | [2] | 190,915 | 408,582 | ||||||
Exercise price for grant per share | $ 4.80 | $ 6.98 | $ 6.55 | $ 4.41 | ||||||||||
Restricted Stock Units [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for grant | 26,040 | 26,040 | 0 | |||||||||||
Number of shares outstanding | 26,040 | 26,040 | ||||||||||||
Vesting period | 1 year | |||||||||||||
Exercise price for grant per share | $ 4.80 | |||||||||||||
2018 Equity Incentive Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for grant | 241,919 | 1,500,253 | 1,500,253 | |||||||||||
Shares were rolled into the 2018 Plan | 882,219 | 882,219 | ||||||||||||
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 | 247,616 | 247,616 | ||||||||||||
2006 Stock Option Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Issuance of maximum number of shares approved | 800,000 | |||||||||||||
Number of additional shares available for issuance | 0 | 0 | ||||||||||||
2006 Stock Option Plan [Member] | Maximum [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based compensation, options term | 10 years | |||||||||||||
2015 Director Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for grant | 258,334 | 300,000 | ||||||||||||
2015 Director Plan [Member] | Non Employee Director One [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for grant | 12,000 | |||||||||||||
2015 Director Plan [Member] | Maximum [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based compensation, options term | 10 years | |||||||||||||
Amended Director Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for grant | 200,000 | 200,000 | ||||||||||||
Number of additional shares available for issuance | 0 | 0 | ||||||||||||
Amended Director Plan [Member] | Director [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for grant | 9,000 | 9,000 | ||||||||||||
Amended Director Plan [Member] | Maximum [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based compensation, options term | 10 years | |||||||||||||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019. | |||||||||||||
[2] | The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019. |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract] | |||
Risk free interest rate | 2.39% | 2.82% | |
Expected dividend yield | 0.79% | 4.86% | |
Expected life of option in years | [1] | 6 years 3 months | 6 years |
Expected volatility | [2] | 48.45% | 30.00% |
[1] | Expected life is calculated using the simplified method. | ||
[2] | We determine our expected volatility based on our historical volatility. |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options beginning balance | 498,714 | 501,043 | 144,666 | 320,626 | ||
Granted | 0 | 1,104 | 374,377 | 39,000 | ||
Cancelled | (993) | (3,433) | (18,000) | (214,960) | ||
Exercised | [1] | 0 | 0 | 0 | 0 | |
Number of options ending balance | 497,721 | [2] | 498,714 | 501,043 | 144,666 | |
Options exercisable | [2] | 81,667 | ||||
Exercise price per share, lower range limit beginning balance | $ 2.14 | $ 2.14 | $ 2.06 | $ 2.14 | ||
Exercise price per share, upper range limit beginning balance | 13.84 | 13.84 | 13.84 | 13.84 | ||
Exercise price per share, granted | 0 | 6.55 | ||||
Exercise price per share, cancelled | 6.55 | |||||
Exercise price per share, exercised | [1] | 0 | 0 | 0 | 0 | |
Exercise price per share, lower range limit ending balance | 2.14 | [2] | 2.14 | 2.14 | 2.06 | |
Exercise price per share, upper range limit ending balance | 13.84 | [2] | 13.84 | 13.84 | 13.84 | |
Exercise price per share, option exercisable lower range limit | [2] | 2.14 | ||||
Exercise price per share, option exercisable upper range limit | [2] | 13.84 | ||||
Weighted average exercise price, beginning balance | 6.62 | 6.63 | 7.23 | 8.78 | ||
Weighted average exercise price, granted | 6.55 | 6.48 | 5.46 | |||
Weighted average exercise price, cancelled | 6.55 | 7.10 | 8.44 | 9.22 | ||
Weighted average exercise price, exercised | [1] | 0 | 0 | 0 | 0 | |
Weighted average exercise price, ending balance | 6.62 | [2] | 6.62 | 6.63 | 7.23 | |
Weighted average exercise price, options exercisable | [2] | $ 8.35 | ||||
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 | 6.55 | 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 | $ 7.49 | $ 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 for each of the 2019 and 2018 three and nine months ended September 30. | |||||
[2] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019. |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||||
Aggregate intrinsic value for option exercised | $ 0 | $ 0 | $ 0 | $ 0 |
Aggregate intrinsic value of option outstanding | 180,000 | 180,000 | ||
Aggregate intrinsic value of option exercisable | $ 78,000 | $ 78,000 | ||
Remaining contractual life of option outstanding | 8 years 9 months 21 days | |||
Remaining contractual life of option exercisable | 5 years 11 months 12 days |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant price per share, cancelled, lower limit | $ 2.22 | ||||||||
Grant price per share, granted | $ 6.55 | ||||||||
Restricted Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares, beginning balance | 237,878 | 250,482 | 190,915 | 190,915 | 408,582 | 408,582 | |||
Number of shares, granted | 10,417 | 4,751 | 163,098 | 178,266 | 101,010 | 101,010 | |||
Number of shares, cancelled | (679) | (949) | (1,699) | (9,737) | |||||
Number of shares, vested | [1] | (16,406) | (101,832) | (308,940) | |||||
Number of shares, ending balance | 247,616 | [2] | 237,878 | 250,482 | 247,616 | [2] | 190,915 | ||
Grant price per share, lower range limit beginning balance | $ 3.95 | $ 2.14 | $ 2.14 | $ 2.14 | $ 2.06 | $ 2.06 | |||
Grant price per share, upper range limit beginning balance | 6.55 | 6.55 | 5.27 | 5.27 | 10.38 | 10.38 | |||
Grant price per share, granted, lower limit | 6.55 | 3.93 | |||||||
Grant price per share, granted, upper limit | 7.03 | 5.27 | |||||||
Grant price per share, cancelled, lower limit | 3.95 | 3.95 | 3.93 | 3.93 | |||||
Grant price per share, cancelled, upper limit | 6.55 | 6.55 | 3.95 | 9.08 | |||||
Grant price per share, vested, lower limit | [1] | 2.06 | 3.93 | 2.06 | |||||
Grant price per share, vested, upper limit | [1] | 7.03 | 4.39 | 10.38 | |||||
Grant price per share, lower range limit ending balance | 3.95 | [2] | 3.95 | 2.14 | 3.95 | [2] | 2.14 | ||
Grant price per share, upper range limit ending balance | 6.55 | [2] | 6.55 | 6.55 | 6.55 | [2] | 5.27 | ||
Grant price per share, granted | 4.80 | 6.55 | |||||||
Weighted average grant price beginning balance | 5.86 | 5.68 | 4.06 | 4.06 | $ 3.45 | 3.45 | |||
Weighted average grant price, granted | 4.80 | 6.98 | 6.55 | 4.41 | |||||
Weighted average grant price, cancelled | 5.90 | 6.40 | 3.94 | 4.66 | |||||
Weighted average grant price, vested | [1] | 3.35 | 4.07 | 3.35 | |||||
Weighted average grant price, ending balance | $ 5.82 | [2] | $ 5.86 | $ 5.68 | $ 5.82 | [2] | $ 4.06 | ||
[1] | The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods. | ||||||||
[2] | The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019. |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of restricted stock vested | $ 0 | $ 32,000 | $ 736,000 | $ 1,241,000 |
Aggregate fair value of restricted stock outstanding | $ 1,585,000 | $ 1,585,000 | ||
Remaining vesting period of restricted stock | 2 years 8 months 1 day |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward | |||||
Number of options beginning balance | 420,825 | 437,154 | 62,777 | 62,777 | |
Number of options, granted | 0 | 1,104 | 374,377 | 39,000 | |
Number of options, cancelled | (993) | (1,433) | 0 | ||
Number of options, vested | (3,778) | (16,000) | 0 | ||
Number of options ending balance | 416,054 | 420,825 | 437,154 | 416,054 | 62,777 |
Exercise price per share beginning balance, Lower limit | $ 2.14 | $ 2.14 | $ 2.14 | $ 2.14 | |
Exercise price per share beginning balance, Upper limit | 6.55 | 7.10 | 7.10 | 7.10 | |
Exercise price per share, Granted, Lower limit | 5.21 | ||||
Exercise price per share, Granted, Upper limit | 7.10 | 6.55 | |||
Exercise price per share, Cancelled | 6.55 | 6.55 | 0 | ||
Exercise price per share, Vested | 2.61 | 0 | |||
Exercise price per share ending balance, Lower limit | 2.14 | 2.14 | 2.14 | 2.14 | $ 2.14 |
Exercise price per share ending balance, Upper limit | 6.55 | 6.55 | 7.10 | 6.55 | 7.10 |
Grant price per share, granted | 6.55 | ||||
Grant price per share, cancelled, lower limit | 2.22 | ||||
Weighted average exercise price | 6.25 | 6.21 | 4.59 | 4.59 | |
Weighted average exercise price, granted | 6.55 | 6.48 | |||
Weighted average exercise price, cancelled | 6.55 | 6.55 | 0 | ||
Weighted average exercise price, vested | 2.61 | 5.12 | 0 | ||
Weighted average exercise price | $ 6.28 | $ 6.25 | $ 6.21 | $ 6.28 | $ 4.59 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
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% | |
Capital ratios for operating segments | 13.70% | 14.30% |
Operating Segments [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Capital ratios for operating segments | 20.00% | |
Swimming Pools [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 25.00% | |
Solar Panels [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 13.00% | |
Roofs [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 20.00% | |
Windows [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 13.00% | |
Texas [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 16.00% | |
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 | 18.00% | |
Geographic Concentration Risk [Member] | Trailers [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 12.00% | |
Geographic Concentration Risk [Member] | Midwest [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 57.00% | |
Geographic Concentration Risk [Member] | New York | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 88.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest income | $ 34,640 | $ 33,152 | $ 65,796 | $ 96,698 | |||||||||||
Total interest expense | 9,225 | [1] | 8,887 | [1] | 16,812 | 25,768 | [1] | $ 20,363 | [1],[2] | ||||||
Net interest income/net investment income | 25,415 | 24,265 | 48,984 | 70,930 | 49,466 | [2] | |||||||||
Provision for loan losses | 8,337 | 18,205 | 48,781 | 36,851 | 48,781 | [2] | |||||||||
Net interest income (loss) after loss provision | 17,078 | 6,060 | 203 | 34,079 | 685 | [2] | |||||||||
Sponsorship and race winnings | 7,940 | 5,371 | 10,599 | 16,008 | 10,599 | [2] | |||||||||
Race team related expenses | (2,663) | (2,876) | (5,416) | (7,211) | (5,416) | [2] | |||||||||
Other income (expense) | (14,755) | (12,518) | (27,254) | (42,615) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | 7,600 | [3] | (3,963) | [3] | (21,868) | 261 | [3] | (25,434) | [2],[3] | ||||||
Income tax benefit (provision) | (165) | 117 | 4,138 | 1,926 | 4,778 | ||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 7,435 | $ (6,643) | $ 1,395 | (3,846) | $ (13,884) | (17,730) | 2,187 | (32,604) | [2] | ||||||
Balance Sheet Data | |||||||||||||||
Total loans, net | 1,099,169 | 1,060,061 | 1,060,061 | 1,099,169 | 1,060,061 | $ 981,487 | |||||||||
Total assets | 1,519,754 | 1,571,407 | 1,571,407 | 1,519,754 | 1,571,407 | 1,381,846 | |||||||||
Total funds borrowed | $ 1,187,115 | $ 1,265,074 | $ 1,265,074 | $ 1,187,115 | 1,265,074 | 1,062,028 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | 1.31% | (1.19%) | (2.51%) | (0.12%) | |||||||||||
Return on average equity | 6.81% | (6.59%) | (13.34%) | (0.60%) | |||||||||||
Interest yield | 11.87% | 10.75% | 10.91% | 11.68% | |||||||||||
Net interest margin | 8.71% | 7.94% | 8.17% | 8.57% | |||||||||||
Reserve coverage | 3.77% | 2.71% | 2.71% | 3.77% | |||||||||||
Delinquency status | [4] | 0.73% | 1.29% | 1.29% | 0.73% | ||||||||||
Charge-off ratio | 2.17% | 3.69% | 3.53% | 3.92% | |||||||||||
RPAC [Member] | |||||||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest expense | $ 47 | $ 40 | $ 81 | $ 119 | |||||||||||
Net interest income/net investment income | (47) | (40) | (81) | (119) | |||||||||||
Net interest income (loss) after loss provision | (47) | (40) | (81) | (119) | |||||||||||
Sponsorship and race winnings | 7,940 | 5,371 | 10,599 | 16,008 | |||||||||||
Race team related expenses | (2,663) | (2,876) | (5,416) | (7,211) | |||||||||||
Other income (expense) | (1,784) | (1,887) | (4,124) | (5,298) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | 3,446 | 568 | 978 | 3,380 | |||||||||||
Income tax benefit (provision) | (831) | (107) | (150) | (815) | |||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 2,615 | 461 | 828 | 2,565 | |||||||||||
Balance Sheet Data | |||||||||||||||
Total assets | 33,134 | 36,237 | 36,237 | 33,134 | 36,237 | 29,925 | |||||||||
Total funds borrowed | $ 7,758 | $ 7,614 | $ 7,614 | $ 7,758 | 7,614 | 7,649 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | 31.13% | 4.94% | 4.46% | 10.76% | |||||||||||
Return on average equity | 42.83% | 38.67% | |||||||||||||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | |||||||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest income | $ 26,147 | $ 24,001 | $ 46,133 | $ 72,996 | |||||||||||
Total interest expense | 3,578 | 2,306 | 4,442 | 9,541 | |||||||||||
Net interest income/net investment income | 22,569 | 21,695 | 41,691 | 63,455 | |||||||||||
Provision for loan losses | 6,744 | 4,423 | 9,133 | 19,925 | |||||||||||
Net interest income (loss) after loss provision | 15,825 | 17,272 | 32,558 | 43,530 | |||||||||||
Other income (expense) | (6,181) | (3,160) | (8,680) | (17,501) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | 9,644 | 14,112 | 23,878 | 26,029 | |||||||||||
Income tax benefit (provision) | (2,497) | (3,979) | (6,141) | (6,741) | |||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 7,147 | 10,133 | 17,737 | 19,288 | |||||||||||
Balance Sheet Data | |||||||||||||||
Total loans, net | 690,466 | 572,995 | 572,995 | 690,466 | 572,995 | 580,182 | |||||||||
Total assets | 702,541 | 582,610 | 582,610 | 702,541 | 582,610 | 590,746 | |||||||||
Total funds borrowed | $ 559,995 | $ 431,868 | $ 431,868 | $ 559,995 | 431,868 | 434,527 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | 4.14% | 6.80% | 6.14% | 4.01% | |||||||||||
Return on average equity | 20.69% | 27.77% | 25.84% | 17.42% | |||||||||||
Interest yield | 15.35% | 15.87% | 15.88% | 15.45% | |||||||||||
Net interest margin | 13.25% | 14.34% | 14.35% | 13.43% | |||||||||||
Reserve coverage | 2.25% | 0.50% | 0.50% | 2.25% | |||||||||||
Delinquency status | [4] | 0.69% | 0.55% | 0.55% | 0.69% | ||||||||||
Charge-off ratio | 2.05% | 3.19% | 3.26% | 2.30% | |||||||||||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | |||||||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest income | $ 5,184 | $ 3,968 | $ 8,605 | $ 14,187 | |||||||||||
Total interest expense | 1,309 | 709 | 1,448 | 3,252 | |||||||||||
Net interest income/net investment income | 3,875 | 3,259 | 7,157 | 10,935 | |||||||||||
Provision for loan losses | (629) | 598 | 1,475 | 733 | |||||||||||
Net interest income (loss) after loss provision | 4,504 | 2,661 | 5,682 | 10,202 | |||||||||||
Other income (expense) | (2,000) | 400 | (1,285) | (5,356) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | 2,504 | 3,061 | 4,397 | 4,846 | |||||||||||
Income tax benefit (provision) | (648) | (863) | (1,159) | (1,255) | |||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 1,856 | 2,198 | 3,238 | 3,591 | |||||||||||
Balance Sheet Data | |||||||||||||||
Total loans, net | 228,491 | 168,781 | 168,781 | 228,491 | 168,781 | 181,359 | |||||||||
Total assets | 239,991 | 175,333 | 175,333 | 239,991 | 175,333 | 188,892 | |||||||||
Total funds borrowed | $ 190,871 | $ 132,914 | $ 132,914 | $ 190,871 | 132,914 | 143,815 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | 3.22% | 4.57% | 3.42% | 2.50% | |||||||||||
Return on average equity | 16.09% | 19.99% | 15.22% | 11.34% | |||||||||||
Interest yield | 9.46% | 8.10% | 8.94% | 9.44% | |||||||||||
Net interest margin | 7.07% | 6.65% | 7.44% | 7.27% | |||||||||||
Reserve coverage | 0.97% | 0.51% | 0.51% | 0.97% | |||||||||||
Delinquency status | [4] | 0.11% | 0.10% | 0.10% | 0.11% | ||||||||||
Charge-off ratio | 0.09% | 1.34% | 1.27% | 0.20% | |||||||||||
Operating Segments [Member] | Commercial Lending [Member] | |||||||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest income | $ 1,842 | $ 2,370 | $ 4,587 | $ 5,359 | |||||||||||
Total interest expense | 741 | 500 | 985 | 2,108 | |||||||||||
Net interest income/net investment income | 1,101 | 1,870 | 3,602 | 3,251 | |||||||||||
Provision for loan losses | 364 | (75) | 100 | 364 | |||||||||||
Net interest income (loss) after loss provision | 737 | 1,945 | 3,502 | 2,887 | |||||||||||
Other income (expense) | 563 | (945) | (1,887) | (532) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | 1,300 | 1,000 | 1,615 | 2,355 | |||||||||||
Income tax benefit (provision) | (314) | (232) | (368) | (568) | |||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | 986 | 768 | 1,247 | 1,787 | |||||||||||
Balance Sheet Data | |||||||||||||||
Total loans, net | 64,646 | 77,886 | 77,886 | 64,646 | 77,886 | 59,973 | |||||||||
Total assets | 87,486 | 88,035 | 88,035 | 87,486 | 88,035 | 90,264 | |||||||||
Total funds borrowed | $ 69,658 | $ 53,323 | $ 53,323 | $ 69,658 | 53,323 | 51,266 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | 4.49% | 3.50% | 2.81% | 2.69% | |||||||||||
Return on average equity | 22.45% | 7.47% | 6.05% | 13.43% | |||||||||||
Interest yield | 11.09% | 12.33% | 13.48% | 11.59% | |||||||||||
Net interest margin | 6.63% | 9.73% | 10.58% | 7.03% | |||||||||||
Reserve coverage | 0.00% | [5] | 0.13% | 0.13% | 0.00% | [5] | |||||||||
Delinquency status | [4],[5] | 0.40% | 0.51% | 0.51% | 0.40% | ||||||||||
Charge-off ratio | 4.93% | [6] | 0.00% | [5] | 0.00% | [5] | 1.77% | [6] | |||||||
Operating Segments [Member] | Medallion Lending [Member] | |||||||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest income | $ 975 | $ 2,126 | $ 5,315 | $ 2,482 | |||||||||||
Total interest expense | 1,935 | 3,672 | 7,045 | 5,435 | |||||||||||
Net interest income/net investment income | (960) | (1,546) | (1,730) | (2,953) | |||||||||||
Provision for loan losses | 1,858 | 13,259 | 38,073 | 15,374 | |||||||||||
Net interest income (loss) after loss provision | (2,818) | (14,805) | (39,803) | (18,327) | |||||||||||
Other income (expense) | (2,762) | (4,077) | (6,888) | (8,106) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | (5,580) | (18,882) | (46,691) | (26,433) | |||||||||||
Income tax benefit (provision) | 1,345 | 4,371 | 10,528 | 6,375 | |||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | (4,235) | (14,511) | (36,163) | (20,058) | |||||||||||
Balance Sheet Data | |||||||||||||||
Total loans, net | 112,003 | 235,827 | 235,827 | 112,003 | 235,827 | 155,863 | |||||||||
Total assets | 226,868 | 369,763 | 369,763 | 226,868 | 369,763 | 273,501 | |||||||||
Total funds borrowed | $ 180,040 | $ 399,750 | $ 399,750 | $ 180,040 | 399,750 | 294,465 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | (7.26%) | (15.23%) | (18.49%) | (10.82%) | |||||||||||
Return on average equity | (36.30%) | (54.12%) | |||||||||||||
Interest yield | 3.30% | 3.41% | 4.03% | 2.50% | |||||||||||
Net interest margin | (3.25%) | (2.48%) | (1.31%) | (2.97%) | |||||||||||
Reserve coverage | 18.22% | 9.81% | 9.81% | 18.22% | |||||||||||
Delinquency status | [4] | 2.41% | 4.06% | 4.06% | 2.41% | ||||||||||
Charge-off ratio | 5.20% | 10.35% | 9.66% | 18.29% | |||||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||||||
Total interest income | $ 492 | $ 687 | $ 1,156 | $ 1,674 | |||||||||||
Total interest expense | 1,615 | 1,660 | 2,811 | 5,313 | |||||||||||
Net interest income/net investment income | (1,123) | (973) | (1,655) | (3,639) | |||||||||||
Provision for loan losses | 455 | ||||||||||||||
Net interest income (loss) after loss provision | (1,123) | (973) | (1,655) | (4,094) | |||||||||||
Other income (expense) | (2,591) | (2,849) | (4,390) | (5,822) | |||||||||||
Income (loss) before income taxes/net investment loss before taxes | (3,714) | (3,822) | (6,045) | (9,916) | |||||||||||
Income tax benefit (provision) | 2,780 | 927 | 1,428 | 4,930 | |||||||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | (934) | (2,895) | (4,617) | (4,986) | |||||||||||
Balance Sheet Data | |||||||||||||||
Total loans, net | 3,563 | 4,572 | 4,572 | 3,563 | 4,572 | 4,110 | |||||||||
Total assets | 229,734 | 319,429 | 319,429 | 229,734 | 319,429 | 208,518 | |||||||||
Total funds borrowed | $ 178,793 | $ 239,605 | $ 239,605 | $ 178,793 | $ 239,605 | $ 130,306 | |||||||||
Selected Financial Ratios | |||||||||||||||
Return on average assets | (1.54%) | (4.29%) | (3.55%) | (2.90%) | |||||||||||
Return on average equity | (7.81%) | (15.05%) | (11.16%) | (11.52%) | |||||||||||
[1] | Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods. | ||||||||||||||
[2] | Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | ||||||||||||||
[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] | Loans 90 days or more past due. | ||||||||||||||
[5] | Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. | ||||||||||||||
[6] | Ratio is based on total commercial lending balances, and relates to the total loan business. |
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 ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||||
Mar. 31, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 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 | $ 292,790 | $ 285,504 | $ 291,841 | $ 290,204 | $ 280,415 | $ 284,916 | $ 287,159 | |
Average net assets | $ 284,021 | ||||||||
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 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 $1,150, which formerly were the Company’s, were MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter. | |
[2] | Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Commitments And Contingencies [Abstract] | |
Employment agreements expiration description | Employment agreements expire at various dates through 2024 |
Future minimum payments | $ 6,061,000 |
Lease expiration date | Nov. 30, 2027 |
Minimal rental commitments | $ 15,698,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | |
RPAC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest income | $ 0 | |||
Interest rate on loan | 2.00% | |||
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] | ||||
Loan receivable to bank | $ 999,000 | |||
Interest income | $ 10,000 | |||
Medallion Fine Art Inc [Member] | Paid In Kind [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest rate on loan | 12.00% | |||
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] | LAX Group,LLC [Member] | Common Class B [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% | |||
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Valuation of equity raised from outside investors | $ 1,500,000 | |||
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 | $ 7,258,000 | |||
Interest percentage of Notes payable | 2.00% | |||
Sponsorship fees | $ 7,000,000 | |||
Proceeds from sponsorship | $ 5,200,000 |
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 | Sep. 30, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Equity investments | $ 9,880 | $ 9,197 | |
Investment securities | 47,422 | 45,324 | |
Loans receivable | 1,142,282 | 1,017,882 | |
Carrying Amount [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 55,015 | 57,713 |
Equity investments | 9,880 | 9,197 | |
Investment securities | 47,422 | 45,324 | |
Loans receivable | 1,099,169 | 981,487 | |
Accrued interest receivable | [2] | 8,040 | 7,413 |
Financial liabilities | |||
Funds borrowed | [3] | 1,187,115 | 1,062,028 |
Accrued interest payable | [2] | 3,511 | 3,852 |
Fair Value Recurring [Member] | |||
Financial assets | |||
Cash and federal funds sold | [1] | 55,015 | 57,713 |
Equity investments | 9,880 | 9,197 | |
Investment securities | 47,422 | 45,324 | |
Loans receivable | 1,099,169 | 981,487 | |
Accrued interest receivable | [2] | 8,040 | 7,413 |
Financial liabilities | |||
Funds borrowed | [3] | 1,188,850 | 1,062,297 |
Accrued interest payable | [2] | $ 3,511 | $ 3,852 |
[1] | Categorized as level 1 within the fair value hierarchy. See Note 17. | ||
[2] | Categorized as level 3 within the fair value hierarchy. See Note 17. | ||
[3] | As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Publicly traded retail notes traded at a premium to par | $ 1,735 | $ 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 | Sep. 30, 2019 | Dec. 31, 2018 | ||
Assets | ||||
Equity investments | $ 9,880 | $ 9,197 | ||
Available for sale investment securities | 47,422 | [1] | 45,324 | [2] |
Total | 57,302 | 54,521 | ||
Level 2 [Member] | ||||
Assets | ||||
Available for sale investment securities | 47,422 | [1] | 45,324 | [2] |
Total | 47,422 | 45,324 | ||
Level 3 [Member] | ||||
Assets | ||||
Equity investments | 9,880 | 9,197 | ||
Total | $ 9,880 | $ 9,197 | ||
[1] | Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 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 | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 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 | $ 95 | $ 558 | $ 669 | $ (214) | $ (255) | $ 1,322 | $ (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) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | ||||||
Equity Investments [Member] | ||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||||||||
Beginning balance | $ 9,797 | $ 10,773 | $ 9,521 | $ 9,458 | $ 9,197 | |||||
Gains (losses) included in earnings | 414 | (400) | (993) | (774) | 510 | |||||
Purchases, investments, and issuances | 1,077 | 631 | 935 | 1,160 | 2,727 | |||||
Sales, maturities, settlements, and distributions | (1,408) | (252) | (5) | (469) | (2,554) | |||||
Transfers in | [1] | 1,377 | ||||||||
Ending balance | 9,880 | 10,752 | 9,458 | 10,752 | 9,880 | |||||
Amounts related to held assets | $ (998) | [2] | $ (400) | (993) | [3] | (774) | [4] | $ (1,300) | [2] | |
Medallion Loans [Member] | ||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||||||||
Beginning balance | 208,279 | 161,155 | ||||||||
Gains (losses) included in earnings | (38,190) | |||||||||
Purchases, investments, and issuances | 7 | |||||||||
Sales, maturities, settlements, and distributions | (8,941) | |||||||||
Ending balance | 161,155 | |||||||||
Amounts related to held assets | [3] | (38,190) | ||||||||
Commercial Loans [Member] | ||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||||||||
Beginning balance | 90,188 | 93,620 | ||||||||
Gains (losses) included in earnings | (8) | |||||||||
Purchases, investments, and issuances | 7,252 | |||||||||
Sales, maturities, settlements, and distributions | (3,812) | |||||||||
Ending balance | 93,620 | |||||||||
Amounts related to held assets | [3] | (10) | ||||||||
Investment [Member] | ||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||||||||
Beginning balance | 302,147 | 331,169 | ||||||||
Gains (losses) included in earnings | 29,143 | |||||||||
Purchases, investments, and issuances | 462 | |||||||||
Sales, maturities, settlements, and distributions | (583) | |||||||||
Ending balance | 331,169 | |||||||||
Amounts related to held assets | [3] | 29,143 | ||||||||
Investments Other than Securities [Member] | ||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||||||||
Beginning balance | 7,450 | 5,535 | ||||||||
Gains (losses) included in earnings | (1,915) | |||||||||
Ending balance | 5,535 | |||||||||
Amounts related to held assets | [3] | (1,915) | ||||||||
Other Assets [Member] | ||||||||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||||||||
Beginning balance | 339 | $ 339 | ||||||||
Ending balance | $ 339 | |||||||||
[1] | Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter. | |||||||||
[2] | Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019. | |||||||||
[3] | Total realized and unrealized gains (losses) included in income for the period, which relate to assets held as of March 31, 2018. | |||||||||
[4] | Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018. |
Fair Value of Assets and Liab_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 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
Assets | |||||
Impaired loans | $ 125,818 | $ 140,180 | |||
Loan collateral in process of foreclosure | 53,539 | [1] | $ 52,368 | 49,495 | [1] |
Fair Value, Measurements, Nonrecurring [Member] | |||||
Assets | |||||
Impaired loans | 27,078 | 34,877 | |||
Loan collateral in process of foreclosure | 53,539 | 49,495 | |||
Total | 80,617 | 84,372 | |||
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | |||||
Assets | |||||
Impaired loans | 27,078 | 34,877 | |||
Loan collateral in process of foreclosure | 53,539 | 49,495 | |||
Total | $ 80,617 | $ 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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018. |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) - Equity Investments [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)$ / 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 |
Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 6,014,000 | $ 6,014,000 |
Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ 7,214,000 | 7,214,000 |
Precedent Arms Length Offer [Member] | Discount Rate [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Equity Value | $ / shares | 25 | |
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 | $ 7,038,000 | 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 | 1,387,000 | 1,850,000 |
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 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 |
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 | Sep. 30, 2019 |
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% | ||
U.S. Treasury Securities [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
US Treasury shares purchased | 26,303 |
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 |