Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 12, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MEDALLION FINANCIAL CORP | ||
Entity Central Index Key | 0001000209 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 25,039,969 | ||
Entity Public Float | $ 54,470,199 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-37747 | ||
Entity Tax Identification Number | 04-3291176 | ||
Entity Address, Address Line One | 437 MADISON AVENUE, 38th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 328-2100 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement for its 2021 Annual Meeting of Shareholders, which Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2020, are incorporated by reference into Part III of this Form 10-K. | ||
Common Stock [Member] | |||
Document and Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | MFIN | ||
Security Exchange Name | NASDAQ | ||
9.000% Senior Notes due 2021 [Member] | |||
Document and Entity Information [Line Items] | |||
Title of 12(b) Security | 9.000% Senior Notes due 2021 | ||
Trading Symbol | MFINL | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | [1] | $ 54,743 | $ 17,700 |
Federal funds sold | 57,297 | 50,121 | |
Equity investments | 9,746 | 10,079 | |
Investment securities | 46,792 | 48,998 | |
Loans | 1,229,838 | 1,160,855 | |
Allowance for loan losses | [2],[3] | (57,548) | (46,093) |
Net loans receivable | 1,172,290 | 1,114,762 | |
Accrued interest receivable | 10,338 | 8,662 | |
Property, equipment, and right-of-use lease asset, net | 12,404 | 14,375 | |
Loan collateral in process of foreclosure | [4] | 54,560 | 52,711 |
Goodwill | 150,803 | 150,803 | |
Intangible assets, net | 51,090 | 52,536 | |
Income tax receivable | 1,757 | 1,516 | |
Other assets | 20,591 | 19,404 | |
Total assets | 1,642,411 | 1,541,667 | |
Liabilities | |||
Accounts payable and accrued expenses | [5] | 14,902 | 16,234 |
Accrued interest payable | 4,673 | 4,398 | |
Deposits | [6] | 1,065,398 | 951,651 |
Short-term borrowings | 87,334 | 38,223 | |
Deferred tax liabilities, net | 807 | 9,341 | |
Operating lease liabilities | 11,018 | 12,738 | |
Long-term debt | [7] | 153,718 | 174,614 |
Total liabilities | 1,337,850 | 1,207,199 | |
Commitments and contingencies | [8] | ||
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- 27,828,871 shares at December 31, 2020 and 27,597,802 shares at December 31, 2019 issued) | 278 | 276 | |
Additional paid in capital | 277,539 | 275,511 | |
Treasury stock (2,951,243 shares at December 31, 2020 and December 31, 2019) | (24,919) | (24,919) | |
Accumulated other comprehensive income (loss) | 2,012 | 999 | |
Retained earnings (accumulated deficit) | (23,502) | 11,281 | |
Total stockholders’ equity | 231,408 | 263,148 | |
Non-controlling interest in consolidated subsidiaries | 73,153 | 71,320 | |
Total equity | 304,561 | 334,468 | |
Total liabilities and equity | $ 1,642,411 | $ 1,541,667 | |
Number of shares outstanding | 24,877,628 | 24,646,559 | |
Book value per share | $ 9.30 | $ 10.68 | |
[1] | Includes restricted cash of $2,970 as of December 31, 2020 and 2019. | ||
[2] | As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. | ||
[3] | As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans | ||
[4] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019. | ||
[5] | Includes the short-term portion of lease liabilities of $2,004 and $2,085 as of December 31, 2020 and 2019. Refer to Note 7 for more details. | ||
[6] | Includes $2,674 and $2,594 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details. | ||
[7] | Includes $3,131 and $2,511 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details. | ||
[8] | Refer to Note 11 for details. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 27,828,871 | 27,597,802 |
Treasury stock,shares | 2,951,243 | 2,951,243 |
Restricted cash | $ 2,970 | $ 2,970 |
Loan collateral in process of foreclosure, financed sales collateral to third parties | 3,535 | 8,163 |
Short term lease liabilities | 2,004 | 2,085 |
Deposits [Member] | ||
Deferred financing costs | 2,674 | 2,594 |
Long-Term Debt [Member] | ||
Deferred financing costs | $ 3,131 | $ 2,511 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Interest and fees on loans | [1] | $ 95,080,000 | |||
Interest and dividends on investment securities | [1] | 1,644,000 | |||
Medallion lease income | [1] | 133,000 | |||
Interest income on investments | [1] | 3,287,000 | |||
Total interest income /total investment income | [1],[2] | 100,836,000 | |||
Interest on deposits | [1] | 14,230,000 | |||
Interest on short-term borrowings | [1] | 4,441,000 | |||
Interest on long-term debt | [1] | 6,145,000 | |||
Interest expense | [1] | 3,551,000 | |||
Total interest expense | [1],[3] | 28,367,000 | |||
Net interest income/net investment income | $ 110,811,000 | $ 97,517,000 | 72,469,000 | [1] | |
Provision for loan losses | 69,817,000 | 47,386,000 | 59,008,000 | [1] | |
Net interest income after provision for loan losses | 40,994,000 | 50,131,000 | 13,461,000 | [1] | |
Other income (loss) | |||||
Writedown of loan collateral in process of foreclosure | [1] | (2,188,000) | |||
Sponsorship and race winnings, net | 20,042,000 | 18,742,000 | 14,368,000 | [1] | |
Gain (loss) on equity investments | [1] | (939,000) | |||
Gain on the extinguishment of debt | 4,145,000 | ||||
Gain on deconsolidation of Trust III | [1] | 25,325,000 | |||
Gain on sale of loans | [1] | 4,946,000 | |||
Other income | [1] | 494,000 | |||
Total other income (loss), net | [1] | 42,006,000 | |||
Other expenses | |||||
Salaries and employee benefits | [1] | 21,706,000 | |||
Race team related expenses | 8,366,000 | 8,996,000 | 7,121,000 | [1] | |
Professional fees | [1] | 9,332,000 | |||
Loan servicing fees | [1] | 3,470,000 | |||
Collection costs | [1] | 5,207,000 | |||
Rent expense | [1] | 2,040,000 | |||
Regulatory fees | [1] | 1,703,000 | |||
Amortization of intangible assets | 1,445,000 | 1,446,000 | 1,083,000 | [1] | |
Travel, meals, and entertainment | [1] | 1,448,000 | |||
Intangible asset impairment | [1] | 5,615,000 | |||
Other expenses | [1] | 7,464,000 | |||
Total other expenses | [1],[4] | 66,189,000 | |||
Income (loss) before income taxes/net investment loss before taxes | (36,981,000) | 2,337,000 | (10,722,000) | [1],[4] | |
Income tax (provision) benefit | [1] | (373,000) | |||
Net income (loss) after taxes/net investment income (loss) after taxes | [1] | (11,095,000) | |||
Net realized losses on investments | [1],[5] | (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 appreciation (depreciation) on investments | [1] | (4,403,000) | |||
Income tax (provision) benefit | [1] | (8,122,000) | |||
Net unrealized appreciation on investments | [1] | 14,675,000 | |||
Net realized/unrealized gains (losses) on investments | [1] | (11,644,000) | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | $ (26,907,000) | $ 1,996,000 | (22,739,000) | [1] | |
Less: income attributable to the non-controlling interest | [1] | 2,307,000 | |||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | [1] | $ (25,046,000) | |||
Basic net loss per share | $ (1.42) | $ (0.07) | $ (1.03) | [1] | |
Diluted net loss per share | $ (1.42) | $ (0.07) | $ (1.03) | [1] | |
Weighted average common shares outstanding | |||||
Basic | 24,445,452 | 24,342,979 | 24,214,978 | [1] | |
Diluted | 24,445,452 | 24,342,979 | 24,214,978 | [1] | |
Bank Holding Company Accounting [Member] | |||||
Interest and fees on loans | $ 143,701,000 | $ 130,167,000 | |||
Interest and dividends on investment securities | 1,208,000 | 2,225,000 | |||
Medallion lease income | 53,000 | 170,000 | |||
Total interest income /total investment income | [2] | 144,962,000 | 132,562,000 | ||
Interest on deposits | 22,330,000 | 22,521,000 | |||
Interest on short-term borrowings | 2,006,000 | 3,242,000 | |||
Interest on long-term debt | 9,815,000 | 9,282,000 | |||
Total interest expense | [3] | 34,151,000 | 35,045,000 | ||
Net interest income/net investment income | 110,811,000 | 97,517,000 | |||
Provision for loan losses | 69,817,000 | 47,386,000 | |||
Net interest income after provision for loan losses | 40,994,000 | 50,131,000 | |||
Other income (loss) | |||||
Writedown of loan collateral in process of foreclosure | (24,523,000) | (4,381,000) | |||
Sponsorship and race winnings, net | 20,042,000 | 18,742,000 | |||
Gain (loss) on equity investments | (2,985,000) | ||||
Gain on the extinguishment of debt | 4,145,000 | ||||
Other income | 1,530,000 | 1,881,000 | |||
Total other income (loss), net | (5,936,000) | 20,387,000 | |||
Other expenses | |||||
Salaries and employee benefits | 28,172,000 | 24,971,000 | |||
Race team related expenses | 8,366,000 | 8,996,000 | |||
Professional fees | 8,047,000 | 7,402,000 | |||
Loan servicing fees | 6,737,000 | 5,253,000 | |||
Collection costs | 5,454,000 | 6,638,000 | |||
Rent expense | 2,833,000 | 2,419,000 | |||
Regulatory fees | 1,822,000 | 1,722,000 | |||
Amortization of intangible assets | 1,445,000 | 1,446,000 | |||
Travel, meals, and entertainment | 375,000 | 1,138,000 | |||
Other expenses | 8,788,000 | 8,196,000 | |||
Total other expenses | [4] | 72,039,000 | 68,181,000 | ||
Income (loss) before income taxes/net investment loss before taxes | [4] | (36,981,000) | 2,337,000 | ||
Income tax (provision) benefit | 10,074,000 | (341,000) | |||
Net income (loss) after taxes/net investment income (loss) after taxes | (26,907,000) | 1,996,000 | |||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (26,907,000) | 1,996,000 | |||
Less: income attributable to the non-controlling interest | 7,876,000 | 3,758,000 | |||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | $ (34,783,000) | $ (1,762,000) | |||
Basic net loss per share | $ (1.42) | $ (0.07) | |||
Diluted net loss per share | $ (1.42) | $ (0.07) | |||
Weighted average common shares outstanding | |||||
Basic | 24,445,452 | 24,342,979 | |||
Diluted | 24,445,452 | 24,342,979 | |||
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] | Balance includes the nine months ended December 31, 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 $ 1,188 , $ 834 , and $ 1,869 of paid in kind interest for the years ended December 31, 20 20 , 201 9 , and 201 8 . | ||||
[3] | Average borrowings outstanding were $1,258,486, $1,138,746, and $1,198,124, and the related average borrowing costs were 2.71%, 3.08%, and 2.37% for the years ended December 31, 2020, 2019, and 2018. | ||||
[4] | Includes $256 of net revenues received from Medallion Bank for the year ended December 31, 2018, primarily for expense reimbursements. See Notes 5 and 12 for additional information. | ||||
[5] | There were no net losses on investment securities of affiliated issuers for the year ended December 31, 2018. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Interest paid in kind | $ 1,188 | $ 834 | $ 1,869 | |
Average borrowings outstanding | $ 1,138,746 | $ 1,198,124 | ||
Average borrowing costs rate | 3.08% | 2.37% | ||
Net realized gains (losses) on investments | [1],[2] | $ (34,745) | ||
Affiliated Entity [Member] | ||||
Net realized gains (losses) on investments | 0 | |||
Medallion Bank [Member] | ||||
Revenue | $ 256 | |||
[1] | Balance includes the nine months ended December 31, 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 year ended December 31, 2018. |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | $ (26,907) | $ 1,996 | $ (22,739) | |
Other comprehensive income (loss), net of tax | 1,013 | 1,081 | (82) | |
Total comprehensive income (loss) | (25,894) | 3,077 | (22,821) | |
Less: comprehensive income attributable to the non-controlling interest | 7,876 | 3,758 | 2,307 | |
Total comprehensive loss attributable to Medallion Financial Corp. | $ (33,770) | $ (681) | $ (25,128) | |
[1] | Balance includes the nine months ended December 31, 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 | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Capital in Excess of Par [Member] | Capital in Excess of Par [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Stock [Member] | Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Parent [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Undistributed Net Investment Loss [Member] | Accumulated Undistributed Net Investment Loss [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Net Unrealized Appreciation on Investment Net of Tax [Member] | Net Unrealized Appreciation on Investment Net of Tax [Member]Cumulative Effect, Period of Adoption, Adjustment [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 increase (decrease) in net assets resulting from operations | (14,874) | (14,874) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | Investment Company Accounting [Member] | (38,299) | 23,425 | |||||||||||||||||||
Stock-based compensation | 152 | $ 1 | 151 | 152 | |||||||||||||||||
Issuance of restricted stock, net, shares | 95,726 | ||||||||||||||||||||
Ending balance at Mar. 31, 2018 | 272,437 | $ 299,502 | $ 274 | $ 274 | 273,867 | $ 273,867 | $ (24,919) | $ (24,919) | $ 23,215 | $ 23,215 | 272,437 | $ 272,437 | $ 27,065 | ||||||||
Ending balance (Investment Company Accounting [Member]) at Mar. 31, 2018 | (103,891) | $ 103,891 | 127,106 | $ (127,106) | |||||||||||||||||
Ending balance, shares at Mar. 31, 2018 | 27,390,053 | 27,390,053 | (2,951,243) | (2,951,243) | |||||||||||||||||
Change in Accounting Principle, Type [Extensible List] | mfin:AdoptionOfBankHoldingCompanyAccountingMember | ||||||||||||||||||||
Change in Accounting Principle, Type [Extensible List] | Investment Company Accounting [Member] | mfin:AdoptionOfBankHoldingCompanyAccountingMember | mfin:AdoptionOfBankHoldingCompanyAccountingMember | |||||||||||||||||||
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] | (22,739) | |||||||||||||||||||
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 | 27,385,600 | (2,951,243) | |||||||||||||||||||
Balance at Mar. 31, 2018 | 272,437 | $ 299,502 | $ 274 | $ 274 | 273,867 | $ 273,867 | $ (24,919) | $ (24,919) | $ 23,215 | $ 23,215 | 272,437 | $ 272,437 | $ 27,065 | ||||||||
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018 | $ (103,891) | $ 103,891 | $ 127,106 | $ (127,106) | |||||||||||||||||
Balance, shares at Mar. 31, 2018 | 27,390,053 | 27,390,053 | (2,951,243) | (2,951,243) | |||||||||||||||||
Net income (loss) | (7,865) | (10,172) | (10,172) | 2,307 | |||||||||||||||||
Distributions to non-controlling interest | (1,776) | (1,776) | |||||||||||||||||||
Stock-based compensation | 425 | 425 | 425 | ||||||||||||||||||
Forfeiture of restricted stock, net, shares | (4,453) | ||||||||||||||||||||
Net change in unrealized gains (losses) on investments, net of tax | (82) | (82) | (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 | 27,385,600 | (2,951,243) | |||||||||||||||||||
Net income (loss) | 1,996 | (1,762) | (1,762) | 3,758 | |||||||||||||||||
Non-controlling interest equity raised by Medallion Bank | [2] | 42,485 | 42,485 | ||||||||||||||||||
Distributions to non-controlling interest | (2,519) | (2,519) | |||||||||||||||||||
Stock-based compensation | 1,221 | $ 2 | 1,219 | 1,221 | |||||||||||||||||
Issuance of restricted stock, net | $ 0 | ||||||||||||||||||||
Issuance of restricted stock, net, shares | 216,148 | ||||||||||||||||||||
Forfeiture of restricted stock, net | $ 0 | ||||||||||||||||||||
Forfeiture of restricted stock, net, shares | (3,946) | ||||||||||||||||||||
Net change in unrealized gains (losses) on investments, net of tax | 1,081 | 1,081 | 1,081 | ||||||||||||||||||
Ending balance at Dec. 31, 2019 | $ 334,468 | $ 276 | 275,511 | $ (24,919) | 11,281 | 999 | 263,148 | 71,320 | |||||||||||||
Ending balance, shares at Dec. 31, 2019 | 24,646,559 | 27,597,802 | (2,951,243) | ||||||||||||||||||
Net income (loss) | $ (26,907) | (34,783) | (34,783) | 7,876 | |||||||||||||||||
Distributions to non-controlling interest | (6,043) | (6,043) | |||||||||||||||||||
Stock-based compensation | 2,030 | $ 2 | 2,028 | 2,030 | |||||||||||||||||
Issuance of restricted stock, net | $ 0 | ||||||||||||||||||||
Issuance of restricted stock, net, shares | 229,408 | ||||||||||||||||||||
Forfeiture of restricted stock, net | $ 0 | ||||||||||||||||||||
Forfeiture of restricted stock, net, shares | (8,755) | ||||||||||||||||||||
Issuance of restricted stock units, net, shares | 10,416 | ||||||||||||||||||||
Net change in unrealized gains (losses) on investments, net of tax | 1,013 | 1,013 | 1,013 | ||||||||||||||||||
Ending balance at Dec. 31, 2020 | $ 304,561 | $ 278 | $ 277,539 | $ (24,919) | $ (23,502) | $ 2,012 | $ 231,408 | $ 73,153 | |||||||||||||
Ending balance, shares at Dec. 31, 2020 | 24,877,628 | 27,828,871 | (2,951,243) | ||||||||||||||||||
[1] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | ||||||||||||||||||||
[2] | Refer to Note 18 for details. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | $ (26,907,000) | $ 1,996,000 | $ (22,739,000) | [1] | ||
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities: | ||||||
Provision for loan losses | 69,817,000 | 47,386,000 | 59,008,000 | [1] | ||
Paid-in-kind interest | (1,188,000) | (834,000) | (1,869,000) | [1] | ||
Depreciation and amortization | 7,714,000 | 7,499,000 | 5,564,000 | [1] | ||
Amortization of origination fees, net | 6,022,000 | 4,952,000 | 3,132,000 | [1] | ||
(Decrease) increase in deferred and other tax liabilities, net | (8,776,000) | 853,000 | 13,637,000 | [1] | ||
Net change in value of loan collateral in process of foreclosure | 31,926,000 | 11,838,000 | 9,926,000 | [1] | ||
Net realized (gains) losses on sale of investments | 4,305,000 | (1,820,000) | (5,921,000) | [1] | ||
Net change in unrealized (appreciation) depreciation on investments | 1,734,000 | 6,457,000 | [1] | |||
Stock-based compensation expense | 2,030,000 | 1,221,000 | 576,000 | [1] | ||
Gain on deconsolidation of Trust III | [1] | (25,325,000) | ||||
Gain on extinguishment of debt | (4,145,000) | |||||
Intangible asset impairment | [1] | 5,615,000 | ||||
(Increase) decrease in accrued interest receivable | (1,676,000) | (1,249,000) | 797,000 | [1] | ||
Decrease in other assets | 2,223,000 | 2,838,000 | 1,309,000 | [1] | ||
Decrease in accounts payable and accrued expenses | (7,206,000) | (8,024,000) | (675,000) | [1] | ||
Increase in accrued interest payable | 422,000 | 690,000 | 139,000 | [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] | 4,196,000 | ||||
Net cash provided by operating activities | 78,706,000 | 64,935,000 | 66,551,000 | [1] | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans originated | (506,106,000) | (471,069,000) | (333,740,000) | [1] | ||
Proceeds from principal receipts, sales, and maturities of loans | 321,831,000 | 251,653,000 | 302,409,000 | [1] | ||
Purchases of investments | (15,580,000) | (10,507,000) | (10,376,000) | [1] | ||
Proceeds from principal receipts, sales, and maturities of investments | 15,399,000 | 7,119,000 | 6,417,000 | [1] | ||
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 13,499,000 | 16,294,000 | 11,593,000 | [1] | ||
Net cash used for investing activities | (170,957,000) | (206,510,000) | (23,697,000) | [1] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from time deposits and funds borrowed | 668,577,000 | 525,842,000 | 364,139,000 | [1] | ||
Repayments of time deposits and funds borrowed | (526,064,000) | (414,277,000) | (389,951,000) | [1] | ||
Purchase of federal funds | 4,000,000 | 8,000,000 | [1] | |||
Repayments of federal funds | (4,000,000) | (8,000,000) | [1] | |||
Non-controlling interest equity raised by Medallion Bank | 42,485,000 | |||||
Distributions to non-controlling interests | (6,043,000) | (2,367,000) | (1,776,000) | [1] | ||
Payments of declared distributions | [1] | (66,000) | ||||
Net cash provided by (used for) financing activities | 136,470,000 | 151,683,000 | (27,654,000) | [1] | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 44,219,000 | 10,108,000 | 15,200,000 | [1] | ||
Cash and cash equivalents, beginning of period | [3],[4] | 67,821,000 | 57,713,000 | [1] | 42,513,000 | [1] |
Cash and cash equivalents, end of period | [4] | 112,040,000 | 67,821,000 | [3] | 57,713,000 | [1],[3] |
SUPPLEMENTAL INFORMATION | ||||||
Cash paid during the period for interest | 31,204,000 | 32,008,000 | 25,102,000 | [1] | ||
Cash paid during the period for income taxes | 104,000 | 310,000 | 85,000 | [1] | ||
NON-CASH INVESTING | ||||||
Loans transferred to loan collateral in process of foreclosure, net | 47,254,000 | $ 31,348,000 | 32,125,000 | [1] | ||
Loans transferred to other foreclosed property | $ 1,800,000 | |||||
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] | Balance includes the nine months ended December 31, 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 year ended December 31, 2018. | |||||
[3] | Included in the beginning balance for the year ended December 31, 2018 was $ 29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $ 100 of cash held by the Company on deposit with the Bank. | |||||
[4] | Includes federal funds sold. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization of Medallion Financial Corp. and its Subsidiaries | (1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES Medallion Financial Corp., or the Company, is a finance company organized as a Delaware corporation that reports as a bank holding company, but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies. The Bank was initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxi medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. Subsequent to its formation, the Bank began originating consumer loans to finance the purchases of recreational vehicles, or RVs, boats, and other related items, and to finance home improvements. The Company also conducts business through Medallion Funding LLC, or MFC, a Small Business Investment Company, or SBIC, which originates and services taxi medallion and commercial loans. The Company also conducts business through its subsidiaries Medallion Capital, Inc., or MCI, an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp., or FSVC, an SBIC that originated and services medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration, or SBA. MCI and FSVC are financed in part by the SBA. The Company has a controlling ownership stake in Medallion Motorsports, LLC, the primary owner of RPAC Racing, LLC, or RPAC, a professional car racing team that competes in the Monster Energy NASCAR Cup Series, which is also consolidated with the Company. The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation, or 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 medallion loans originated by the Bank, to MSC, which bills and collects the related service fee income from the Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs. Beginning in 2019, the Bank began the process to build out a strategic partnership program with financial technology, or fintech, companies. The Bank entered into an initial partnership in 2020 and began issuing its first loans, while continuing to explore opportunities with additional fintech companies. Taxi Medallion Loan Trust III, or Trust III, was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity, or VIE, and MFC was the primary beneficiary until the 2018 fourth quarter. As a result, the Company consolidated Trust III in its financial results until consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 20. 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, or Fin Trust, for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $36,083,000 at December 31, 2020, 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, or together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 medallions are carried at a net realizable value of $2,932,000 in other assets on the Company’s consolidated balance sheet at December 31, 2020, compared to a net realizable value of $3,091,000 at December 31, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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, or BDC, under the Investment Company Act of 1940, or 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, or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and 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 were not consolidated with the Company prior to the three months ended June 30, 2018. 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. Cash also includes $1,500,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years. Fair Value of Assets and Liabilities The Company follows the Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 16 and 17 to the consolidated financial statements. Equity Investments The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investment in equity securities with readily determinable value to be valued as such, and those that do not are measured at cost, less any impairment plus or minus any observable price change. Equity investments of $9,746,000 and $10,079,000 at December 31, 2020 and 2019, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2020 and 2019, the Company determined that there was no impairment or observable price change. Investment Securities (Bank Holding Company Accounting) The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities . 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 has continued. The Company incorporated these new factors in the Medallion 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 2018 first quarter. Refer to Note 5 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 Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, and therefore changed the Company’s financial reporting from Investment Company Accounting to Bank Holding Company Accounting. As a result, 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 December 31, 2020 and 2019, net loan origination costs were $20,684,000 and $17,839,000. Net amortization to income for the years ended December 31, 2020, 2019 and 2018 was $6,021,000, $4,952,000, and 3,128,000 ($3,993,000 when combined with the Bank). Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer 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 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 90 days or more past due were $6,878,000 at December 31, 2020, or 0.57% of the total loan portfolio, compared to $8,663,000, or 0.76% at December 31, 2019. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance, and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in 2019, all consumer loans which are party to a Chapter 13 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 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 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 $15,367,000 and $28,833,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2020 and 2019. The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $107,131,000 and $113,581,000 at December 31, 2020 and 2019. 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 the Bank, and determined that no material servicing asset or liability existed as of December 31, 2020 and 2019. The Company assigned its servicing rights of the Bank’s 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. For medallion loans, delinquent nonperforming loans are valued at the median sales price for the collateral over the most recent quarter, historically non-delinquent nonperforming loans are valued at either the median sales price for the collateral over the most recent quarter or the discounted cash flow if such loans were modified and it is clear that sources other than the taxi business were instrumental in keeping such loans current, 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 of COVID-19, there was an increase in the reserve percentages of 50 basis points on the recreation subprime loan business during the twelve months ended December 31, 2020. In addition, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six month deferral period with borrowers, and therefore deemed all such loans as impaired. As a result, all medallion loans were written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions. In total, write-downs on medallion assets were approximately $46,087,000 during 2020. The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Had there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more past due would have resulted in increased reserves and/or charge-offs. 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 were 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, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2020 and 2019, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $51,090,000 and $52,536,000, and the Company recognized $1,445,000, $1,446,000 and $1,083,000 of amortization expense on the intangible assets for the twelve months ended December 31, 2020, 2019, and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,717,000 and $5,758,000 were outstanding at December 31, 2020 and 2019, and of which $3,041,000, $3,289,000 and $3,339,000 were amortized to interest income for the twelve months ended December 31, 2020, 2019, and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2020 and 2019, who concluded there was no impairment on the Bank and on the RPAC intangible asset. The table below shows the details of the intangible assets of the dates presented. (Dollars in thousands) December 31, 2020 December 31, 2019 Brand-related intellectual property $ 18,974 $ 20,075 Home improvement contractor relationships 5,951 6,296 Race organization 26,165 26,165 Total intangible assets $ 51,090 $ 52,536 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 $412,000, $418,000, and $422,000 for the years ended December 31, 2020, 2019, and 2018. Deferred Costs Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2,558,000, $2,348,000, and $1,864,000 for the years ended December 31, 2020, 2019, and 2018, recorded as interest expense. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the Company’s balance sheet for all of these purposes were $5,805,000 and $5,105,000 at December 31, 2020 and 2019. Income Taxes Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense 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 accordance 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. Years Ended December 31, (Dollars in thousands, except share and per share data) 2020 2019 2018 Net loss/net increase in net assets resulting from operations available to common stockholders $ (34,783 ) $ (1,762 ) $ (25,046 ) Weighted average common shares outstanding applicable to basic EPS 24,445,452 24,342,979 24,214,978 Effect of dilutive stock options — — — Effect of restricted stock grants — — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,445,452 24,342,979 24,214,978 Basic loss per share $ (1.42 ) $ (0.07 ) $ (1.03 ) Diluted loss per share (1.42 ) (0.07 ) (1.03 ) Potentially dilutive common shares excluded from the above calculations aggregated 934,003, 462,180, and 100,000 shares as of December 31, 2020, 2019, and 2018. Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income/ net increase in net assets resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income/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 2020, 2019, and 2018, the Company issued 229,408, 216,148, and 101,010 restricted shares of stock-based compensation awards, issued 444,557, 449,450, and 39,000 shares of other stock-based compensation awards, and issued 47,156, 26,040, and 0 of restricted share units of stock based compensation awards, and recognized $2,030,000, $1,221,000, and $576,000, or $0.08, $0.05, and $0.02, per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2020, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $2,405,000, which is expected to be recognized over the next 16 quarters Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, 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 December 31, 2020, the Bank’s Tier 1 leverage ratio was 16.93%. 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 December 31, 2020 December 31, 2019 Common equity tier 1 capital — — $ 148,507 $ 158,187 Tier 1 capital — — 217,295 226,975 Total capital — — 233,460 241,842 Average assets — — 1,283,664 1,172,866 Risk-weighted assets — — 1,243,783 1,144,337 Leverage ratio (1) 4.0 % 5.0 % 16.9 % 19.4 % Common equity tier 1 capital ratio (2) 7.0 6.5 11.9 13.8 Tier 1 capital ratio (3) 8.5 8.0 17.5 19.8 Total capital ratio (3) 10.5 10.0 18.8 21.1 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of December 31, 2020 and 2019 reflect the capital conservation buffer of 2.5%. T he minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 2020 and 2019 Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments. 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 November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022 . The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans. Reclassifications Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Investments [Abstract] | |
Investment Securities | (3) INVESTMENT SECURITIES Fixed maturity securities available for sale at December 31, 2020 and 2019 consisted of the following: December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 34,929 $ 1,495 $ (45 ) $ 36,379 State and municipalities 10,226 189 (2 ) 10,413 Total $ 45,155 $ 1,684 $ (47 ) $ 46,792 December 31, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 36,335 $ 411 $ (112 ) $ 36,634 State and municipalities 12,279 186 (101 ) 12,364 Total $ 48,614 $ 597 $ (213 ) $ 48,998 The amortized cost and estimated market value of investment securities as of December 31, 2020 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 $ 25 $ 25 Due after one year through five years 12,485 12,956 Due after five years through ten years 14,499 15,214 Due after ten years 18,146 18,597 Total $ 45,155 $ 46,792 The following tables show information pertaining to securities with gross unrealized losses at December 31, 2020 and 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows. Less than Twelve Months Twelve Months and Over December 31, 2020 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (45 ) $ 4,028 $ — $ — State and municipalities — — (2 ) 196 Total $ (45 ) $ 4,028 $ (2 ) $ 196 Less than Twelve Months Twelve Months and Over December 31, 2019 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (74 ) $ 8,291 $ (38 ) $ 4,939 State and municipalities (17 ) 2,099 (84 ) 2,739 Total $ (91 ) $ 10,390 $ (122 ) $ 7,678 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 | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Loans and Allowance for Loan Losses | (4) LOANS AND ALLOWANCE FOR LOAN LOSSES The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2020 and 2019. As of December 31, 2020 As of December 31, 2019 (Dollars in thousands) Amount As a Percent of Gross Loans Amount As a Percent of Gross Loans Recreation $ 792,686 65 % $ 713,332 62 % Home improvement 334,033 27 247,324 21 Commercial 65,327 5 69,767 6 Medallion 37,768 3 130,432 11 Strategic partnership 24 — — — Total gross loans 1,229,838 100 % 1,160,855 100 % Allowance for loan losses (57,548 ) (46,093 ) Total net loans $ 1,172,290 $ 1,114,762 The following tables show the activity of the gross loans for the twelve months ended December 31, 2020 and 2019. Twelve Months Ended December 31, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – December 31, 2019 $ 713,332 $ 247,324 $ 69,767 $ 130,432 $ — $ 1,160,855 Loan originations 294,885 193,098 7,575 — 1,663 497,221 Principal payments, sales, and maturities (187,989 ) (105,813 ) (13,183 ) (13,207 ) (1,639 ) (321,831 ) Charge-offs, net (14,457 ) (1,229 ) (28 ) (42,648 ) — (58,362 ) Transfer to loan collateral in process of foreclosure, net (14,871 ) — — (32,383 ) — (47,254 ) Amortization of origination costs (7,809 ) 1,910 8 (131 ) — (6,022 ) Amortization of loan premium (191 ) (320 ) — (2,531 ) — (3,042 ) FASB origination costs, net 9,786 (937 ) — 36 — 8,885 Paid-in-kind interest — — 1,188 — — 1,188 Transfer to other foreclosed property — — — (1,800 ) — (1,800 ) Gross loans – December 31, 2020 $ 792,686 $ 334,033 $ 65,327 $ 37,768 $ 24 $ 1,229,838 Twelve Months Ended December 31, 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 301,403 142,112 18,578 — 462,093 Principal payments, sales, and maturities (146,873 ) (76,157 ) (13,553 ) (15,070 ) (251,653 ) Charge-offs, net (17,419 ) (786 ) (819 ) (18,664 ) (37,688 ) Transfer to loan collateral in process of foreclosure, net (14,512 ) — — (16,836 ) (31,348 ) Amortization of origination costs (6,428 ) 1,561 34 (119 ) (4,952 ) Amortization of loan premium (247 ) (416 ) — (2,626 ) (3,289 ) FASB origination costs, net 10,370 (2,145 ) 610 141 8,976 Paid-in-kind interest — — 834 — 834 Gross loans – December 31, 2019 $ 713,332 $ 247,324 $ 69,767 $ 130,432 $ 1,160,855 The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2020 and 2019. Twelve Months Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Allowance for loan losses – beginning balance $ 46,093 $ 36,395 Charge-offs Recreation (23,543 ) (24,433 ) Home improvement (2,909 ) (2,504 ) Commercial (31 ) (819 ) Medallion (49,361 ) (22,205 ) Total charge-offs (75,844 ) (49,961 ) Recoveries Recreation 9,086 7,014 Home improvement 1,680 1,718 Commercial 3 — Medallion 6,713 3,541 Total recoveries 17,482 12,273 Net charge-offs (1) (58,362 ) (37,688 ) Provision for loan losses 69,817 47,386 Allowance for loan losses – ending balance (2) (3) $ 57,548 $ 46,093 ( 1 ) As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company. ( 2 ) As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. ( 3 ) As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans The following tables set forth the allowance for loan losses by type as of December 31, 2020 and 2019. December 31, 2020 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Allowance as a Percent of Nonaccrual Recreation $ 27,348 48 % 3.45 % 378.20 % Home improvement 5,157 9 1.54 NM Commercial — — — — Medallion 25,043 43 66.31 68.01 Total $ 57,548 100 % 4.68 % 93.17 % December 31, 2019 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Allowance as a Percent of Nonaccrual Recreation $ 18,075 39 % 2.53 % 228.25 % Home improvement 2,608 6 1.05 NM Commercial — — — — Medallion 25,410 55 19.48 389.84 Total $ 46,093 100 % 3.97 % 174.04 % The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. December 31, (Dollars in thousands) 2020 2019 2018 Total nonaccrual loans $ 61,767 $ 26,484 $ 34,877 Interest foregone for the year 3,311 2,152 1,153 Amount of foregone interest applied to principal for the year 602 254 535 Interest foregone life-to-date 5,252 2,744 1,952 Amount of foregone interest applied to principal life-to-date 792 471 1,214 Percentage of nonaccrual loans to gross loan portfolio 5 % 2 % 3 % Percentage of allowance for loan losses to nonaccrual loans 93 174 104 The following tables present the performance status of loans as of December 31, 2020 and 2019. December 31, 2020 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 785,047 $ 7,639 $ 792,686 0.96 % Home improvement 333,862 171 334,033 0.05 Commercial 48,731 16,596 65,327 25.40 Medallion — 37,768 (1) 37,768 100.00 Strategic partnership 24 — 24 0.00 Total $ 1,167,664 $ 62,174 (2) $ 1,229,838 5.06 % December 31, 2019 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 705,070 $ 8,262 $ 713,332 1.16 % Home improvement 247,139 185 247,324 0.07 Commercial 57,905 11,862 69,767 17.00 Medallion 88,248 42,184 130,432 32.34 Total $ 1,098,362 $ 62,493 (2) $ 1,160,855 5.38 % (1) Includes medallion loan premiums of $1,615 as of December 31, 2020. (2) Includes $408 and $36,009 of TDRs as of December 31, 2020 and 2019, which are accruing and paying currently, but which are considered nonperforming loans under GAAP. For those performing loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming. The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2020 and 2019, all of which had an allowance recorded against the principal balance. December 31, 2020 December 31, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With an allowance recorded Recreation $ 7,639 $ 7,639 $ 264 $ 8,262 $ 8,262 $ 329 Home improvement 171 171 3 185 185 3 Commercial 16,596 16,600 — 11,862 11,867 — Medallion 37,768 38,368 25,043 42,184 42,650 14,824 Total nonperforming loans with an allowance $ 62,174 $ 62,778 $ 25,310 $ 62,493 $ 62,964 $ 15,156 For the Twelve Months Ended December 31, 2020 December 31, 2019 (Dollars in thousands) Average Investment Recorded Interest Income (Expense) Recognized Average Investment Recorded Interest Income (Expense) Recognized With an allowance recorded Recreation $ 7,949 $ 560 $ 8,317 $ 471 Home improvement 172 2 185 — Commercial 16,884 123 7,886 392 Medallion 40,928 465 44,721 346 Total nonperforming loans with an allowance $ 65,933 $ 1,150 $ 61,109 $ 1,209 The following tables show the aging of all loans as of December 31, 2020 and 2019. Days Past Due Recorded Investment December 31, 2020 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) 90 Days and Accruing Recreation $ 22,058 $ 7,582 $ 5,343 $ 34,983 $ 732,391 $ 767,374 $ — Home improvement 813 218 170 1,201 335,684 336,885 — Commercial — — 75 75 65,265 65,340 — Medallion 2,019 973 1,290 4,282 31,871 36,153 — Strategic partnership — — — — 24 24 — Total $ 24,890 $ 8,773 $ 6,878 $ 40,541 $ 1,165,235 $ 1,205,776 $ — (1) Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. Days Past Due Recorded Investment December 31, 2019 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) 90 Days and Accruing Recreation $ 27,357 $ 8,426 $ 5,800 $ 41,583 $ 648,227 $ 689,810 $ — Home improvement 931 427 184 1,542 249,288 250,830 — Commercial — — 107 107 69,660 69,767 — Medallion 12,491 2,118 2,572 17,181 109,106 126,287 — Total $ 40,779 $ 10,971 $ 8,663 $ 60,413 $ 1,076,281 $ 1,136,694 $ — (1) The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 327% and 190% as of December 31, 2020 and 2019. The following table shows the TDR’s which the Company entered into during the year ended December 31, 2020. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Recreation loans 77 1,053 749 Commercial loans 1 1,821 1,821 Medallion loans 59 33,505 33,505 During the twelve months ended December 31, 2020, five medallion loans modified as troubled debt restructurings were in default and had an investment value of $738,000 as of December 31, 2020, net of $331,000 of an allowance for loan loss, 43 recreation loans modified as troubled debt restructuring were in default and had an investment value of $433,000 as of December 31, 2020, net of a $15,000 allowance for loan losses, and no commercial loans modified as trouble debt restructurings were in default. The following table shows the TDR’s which the Company entered into during the year ended December 31, 2019. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Recreation loans 294 $ 4,433 $ 2,831 Medallion loans 71 31,376 31,385 During the year ended December 31, 2019, four medallion loans modified as a troubled debt restructurings were in default and had an investment value of $1,023,000 as of December 31, 2019, net of $428,000 of an allowance for loan loss, and 213 recreation loans modified as troubled debt restructurings were in default and had an investment value of $1,905,000 as of December 31, 2019, net of a $76,000 allowance for loan losses. The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2020 and 2019. Twelve Months Ended December 31, 2020 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2019 $ 1,476 $ 51,235 $ 52,711 Transfer from loans, net 14,871 32,403 47,274 Sales (7,512 ) (300 ) (7,812 ) Cash payments received — (5,687 ) (5,687 ) Collateral valuation adjustments (7,403 ) (24,523 ) (31,926 ) Loan collateral in process of foreclosure – December 31, 2020 $ 1,432 $ 53,128 $ 54,560 Twelve Months Ended December 31, 2019 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2018 $ 1,503 $ 47,992 $ 49,495 Transfer from loans, net 14,512 16,836 31,348 Sales (7,591 ) (1,515 ) (9,106 ) Cash payments received — (7,697 ) (7,697 ) Collateral valuation adjustments (6,948 ) (4,381 ) (11,329 ) Loan collateral in process of foreclosure – December 31, 2019 $ 1,476 $ 51,235 $ 52,711 |
Unrealized Appreciation (Deprec
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments | 12 Months Ended |
Dec. 31, 2020 | |
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 under Investment Company Accounting. (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 following table sets forth the pre-tax changes in our 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 ) Other gains — Direct charge-offs 2 Total $ (34,745 ) |
Funds Borrowed
Funds Borrowed | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (6) FUNDS BORROWED The outstanding balances of funds borrowed were as follows. Payments Due for the Year Ending December 31, (Dollars in thousands) 2021 2022 2023 2024 2025 Thereafter December 31, 2020 (1) December 31, 2019 (1) Interest Rate (2) Deposits (3) $ 393,835 $ 241,605 $ 190,387 $ 120,040 $ 121,955 $ — $ 1,067,822 $ 954,245 1.71 % Retail and privately placed notes (4) 33,625 — — 36,000 — 33,600 103,225 69,625 8.25 % SBA debentures and borrowings 22,508 — 5,000 5,000 14,000 21,500 68,008 71,746 3.36 % Preferred securities (4) — — — — — 33,000 33,000 33,000 2.35 % Notes payable to banks 30,701 280 280 — — — 31,261 33,183 3.67 % Other borrowings 500 7,442 — — 747 — 8,689 7,794 1.91 % Total $ 481,169 $ 249,327 $ 195,667 $ 161,040 $ 136,702 $ 88,100 $ 1,312,005 $ 1,169,593 2.37 % (1) Excludes deferred financing costs of $5,805 and $5,105 as of December 31, 2020 and 2019. ( 2 ) Weighted average contractual rate as of December 31, 2020. (3) Balance excludes $250 of strategic partner reserve deposits as of December 31, 2020. ( 4 ) Relates to loans held at Medallion Financial Corp. (parent company only). (A) DEPOSITS Deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. The Bank did not have any individual time deposits greater than $100,000 as of December 31, 2020. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions, which as of December 2020, had $995,000 in listing services deposits. The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of December 31, 2020. (Dollars in thousands) December 31, 2020 Three months or less $ 125,766 Over three months through six months 117,602 Over six months through one year 150,467 Over one year 673,987 Total deposits $ 1,067,822 (B) SBA DEBENTURES AND BORROWINGS Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year the maturity date of such refinanced debt or (b) April 30, 2024, and (2) upon the Company’s repayment of such senior notes without refinancing, the maturity date shall mean April 30, 2024. On July 31, 2020, MCI accepted a commitment from the SBA for $25,000,000 in debenture financing with a ten-year (C) 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 December 31, 2020. (Dollars in thousands) Borrower # of Lenders/ Notes Note Dates Maturity Dates Type Note Amounts Balance Outstanding at December 31, 2020 Payment Average Interest Rate at December 31, 2020 Interest Rate Index (1) Medallion Financial Corp. 5/5 4/11 - 8/14 2/21 - 9/21 Term loans and demand notes secured by pledged loans (2) $ 19,734 (2) $ 19,734 Interest only (3) 3.75 % Various (3) Medallion Chicago 2/23 11/11 - 12/11 2/21 Term loans secured by owned Chicago taxi medallions (4) 18,449 10,687 $134 of principal & interest paid monthly 3.50 % N/A Medallion Funding 1/1 11/18 12/23 Term loan unsecured 1,400 840 $70 principal & interest paid quarterly 4.00 % N/A $ 39,583 $ 31,261 (1) At December 31, 2020, 30 day LIBOR was 0.14%, 360 day LIBOR was 0.34%, and the prime rate was 3.25%. (2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 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 $85. (4) Guaranteed by the Company. 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 $1,839,000, of certain resulting repayment and other obligations, which waiver expires on June 15, 2021. 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 20 for more information. As a result of the cash flow shortages due to the slowdown in the taxi industry resulting from the COVID-19 pandemic, the Company received 180 day payment deferrals that terminated in August and modifications to provide for interest only payments from September through the end of 2020 for the notes payable to banks described above. Beginning in 2021, the Company returned to repaying the principal balance along with interest. (D) RETAIL AND PRIVATELY PLACED NOTES In February 2021, the Company completed a private placement to certain institutional investors of $25,000,000 aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3,250,000 principal amount of such notes was issued to certain institutional investors. The Company will use the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt. In December 2020, the Company completed a private placement to certain institutional investors of $33,600,000 aggregate principal amount of 7.50% unsecured senior notes due December 2027 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, an additional $ 6,000,000 principal amount of such 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. (E) 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 (0.24% at December 31, 2020) plus 2.13%. The notes mature in September 2037 (F) OTHER BORROWINGS In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 12 for more details). At December 31, 2020, the total outstanding on these notes was $7,442,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2022. Additionally, RPAC has a short term promissory note to an unrelated party, for $500,000 due on December 31, 2021. On June 17, 2020, RPAC was approved for and received a Paycheck Protection Program, or PPP, loan under the CARES Act. As of December 31, 2020, the total outstanding balance of such loan was $747,000 at a 1.00% annual interest rate due in five years. Under the terms of the note, RPAC could be granted forgiveness for all or a portion of the balance if the loan proceeds are used in accordance with the requirements set forth in the PPP. As of December 31, 2020, RPAC had not applied for forgiveness of this loan. (G) COVENANT COMPLIANCE Certain of the Company’s debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth. The Company was in compliance with such restrictions as of December 31, 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | (7) LEASES The Company has leased premises that expire at various dates through November 30, 2027 subject to various operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach, in which no adjustments have been made to the prior year balances. The following table presents the operating lease costs and additional information for the twelve months ended December 31, 2020 and 2019. (Dollars in thousands) December 31, 2020 December 31, 2019 Operating lease costs $ 2,384 $ 2,184 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 2,821 2,419 Right-of-use asset obtained in exchange for lease liability 251 2,413 The following table presents the breakout of the operating leases as of December 31, 2020 and 2019. (Dollars in thousands) December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 11,737 $ 13,482 Other current liabilities 2,004 2,085 Operating lease liabilities 11,018 12,738 Total operating lease liabilities 13,022 14,823 Weighted average remaining lease term 6.4 years 7.3 years Weighted average discount rate 5.54% 5.54 % At December 31, 2020, maturities of the lease liabilities were as follows. (Dollars in thousands) 2021 $ 2,474 2022 2,406 2023 2,356 2024 2,373 2025 2,390 Thereafter 3,521 Total lease payments 15,520 Less imputed interest 2,498 Total operating lease liabilities $ 13,022 Occupancy expense was $2,833,000, $2,436,000, and $2,287,000 for the years ended December 31, 2020, 2019, and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) INCOME TAXES The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C 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 December 31, 2020 and 2019. (Dollars in thousands) 2020 2019 Goodwill and other intangibles $ (44,799 ) $ (45,595 ) Provision for loan losses 19,556 19,198 Net operating loss carryforwards (1) 30,493 22,607 Accrued expenses, compensation, and other assets 1,174 1,701 Unrealized gains on other investments (6,769 ) (6,790 ) Total deferred tax liability (345 ) (8,879 ) Valuation allowance (462 ) (462 ) Deferred tax liability, net (807 ) (9,341 ) Taxes receivable 1,757 1,516 Net deferred and other tax liabilities $ 950 $ (7,825 ) (1) As of December 31, 2020, the Company and its subsidiaries had an estimated $124,150 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $30,031 as of December 31, 2020. The components of our tax (provision) benefit for the years ended December 31, 2020, 2019, and 2018 were as follows. (Dollars in thousands) 2020 2019 2018 Current Federal $ — $ — $ (2,797 ) State (260 ) 519 (1,078 ) Deferred Federal 7,702 (489 ) 5,270 State 2,632 (371 ) (1,464 ) Net (provision) benefit for income taxes $ 10,074 $ (341 ) $ (69 ) The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2020, 2019, and 2018. (Dollars in thousands) 2020 2019 2018 Statutory Federal income tax (provision) benefit at 21% $ 7,766 $ (642 ) $ 4,935 State and local income taxes, net of federal income tax benefit 1,518 (120 ) 440 Revaluation of net operating losses 1,228 380 — Change in effective state income tax rate (145 ) (891 ) (2,564 ) Change in state income tax accruals (260 ) 640 — Income attributable to non-controlling interest 460 309 — Non deductible expenses (453 ) — — Utilization of carry forwards — — (910 ) Appreciation of Medallion Bank — — (1,974 ) Other (40 ) (17 ) 4 Total income tax (provision) benefit $ 10,074 $ (341 ) $ (69 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of December 31, 2020. The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2017 through the present are the more significant filings that are open for examination. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Restricted Stock | (9) STOCK OPTIONS AND RESTRICTED STOCK The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, or the 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, or the 2006 Stock Option Plan, available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of Directors on February 15, 2006 and shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan was administered by the Compensation Committee of the Board of Directors. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. The term and vesting periods of the options were determined by the Compensation Committee, provided that the maximum term of an option could not exceed a period of ten years The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the SEC on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years. The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan, or the Amended Director Plan, on April 16, 2009, which was approved by the Company’s shareholders on June 5, 2009, and on which exemptive relief to implement the Amended Director Plan was received from the SEC on July 17, 2012. A total of 200,000 shares of the Company’s common stock were issuable under the Amended Director Plan. No additional shares are available for issuance under the Amended Director Plan. Under the Amended Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the Amended Director Plan, the Company would grant options to purchase 9,000 shares of the Company’s common stock to an Eligible Director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options could not exceed ten years. Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2020, 951,669 options on the Company’s common stock were outstanding under the Company’s plans, of which 178,307 options were exercisable. Additionally, there were 416,140 unvested shares of the Company’s common stock outstanding and 62,780 unvested restricted share units under the Company’s restricted stock plans. The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $3.09, $3.10, and $1.06 per share for the years ended December 31, 2020, 2019, and 2018. The following assumption categories are used to determine the value of any option grants. Year ended December 31, 2020 2019 2018 Risk free interest rate 1.23 % 2.29 % 2.82 % Expected dividend yield — 0.66 4.86 Expected life of option in years (1) 6.25 6.25 6.00 Expected volatility (2) 51.03 % 49.03 % 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 years ended December 31, 2020, 2019, and 2018. 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 2.14-13.84 7.23 Granted 449,450 5.21-7.25 6.61 Cancelled (44,076 ) 6.55-13.84 9.00 Exercised (1) — — — Outstanding at December 31, 2019 550,040 2.14-13.53 6.58 Granted 444,557 4.89-6.68 6.24 Cancelled (42,928 ) 2.22-13.53 6.91 Exercised (1) — — — Outstanding at December 31, 2020 (2) 951,669 $2.14-12.55 $ 6.41 Options exercisable at December 31, 2018 81,889 $2.14-13.84 $ 9.25 December 31, 2019 62,778 2.14-13.53 7.60 December 31, 2020 (2) 178,307 2.14-12.55 6.33 (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 2020, 2019, and 2018. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020. The following table presents the activity for the restricted stock programs for the years ended December 31, 2020, 2019, and 2018. Number of Shares Grant Price Per Share Weighted Average Grant 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 216,148 4.80-7.25 6.59 Cancelled (3,946 ) 3.93-6.55 4.97 Vested (1) (118,238 ) 2.06-4.80 3.89 Outstanding at December 31, 2019 284,879 3.95-7.25 6.01 Granted 229,408 4.89-6.68 6.21 Cancelled (8,755 ) 3.95-7.25 6.93 Vested (1) (89,392 ) 3.95-6.55 5.37 Outstanding at December 31, 2020 (2) 416,140 $4.39-7.25 $ 6.24 (1) The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018. (2) The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020. During the twelve months ended December 31, 2020, the Company granted 47,156 restricted stock units that vest on June 19, 2021 with a grant price of $3.16. Unitholders have the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A, which was done for 16,524 units. The remaining 10,416 units vested and settled. The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2020. Number of Options Exercise Price Per Share Weighted Average Exercise Price Outstanding at December 31, 2019 487,262 $2.14-7.25 $ 6.45 Granted 444,557 4.89-6.68 6.24 Cancelled (20,630 ) 6.55-7.25 6.76 Vested (137,827 ) 2.14-6.55 6.05 Outstanding at December 31, 2020 773,362 $4.89-7.25 $ 6.42 The intrinsic value of the options vested was $45,000, $43,000, and $32,000 in 2020, 2019, and 2018. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (10) SEGMENT REPORTING 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. 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 15%, 10%, and 9% of loans outstanding and with no other states over 9% as of December 31, 2020. 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 60%, 19%, and 12% of the segment portfolio as of December 31, 2020. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, windows, and solar panels, at 27%, 24%, 13%, and 8% of total home improvement loans outstanding, and with no other product lines over 8% as of December 31, 2020. The commercial lending segment focuses on enterprise wide industries, including manufacturing and various other industries, in which 53% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of medallions, taxis, and related assets, of which 89% were in New York City as of December 31, 2020. 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 a result of COVID-19, the race season had been suspended from March 15, 2020 through May 17, 2020. As states began to reopen, NASCAR resumed races and completed all races scheduled. Commencing with the second quarter 2020, the Bank began issuing loans related to the new strategic partnership business, which is currently included within the corporate and other investment segment due to its small size. 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. In addition, 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. The following tables present segment data as of and for the twelve months ended December 31, 2020 and 2019, and as of and for the nine months ended December 31, 2018. Year Ended December 31, 2020 Consumer Lending (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC Corporate and Other Investments Consolidated Total interest income $ 110,706 $ 27,273 $ 6,926 $ (1,518 ) $ — $ 1,575 $ 144,962 Total interest expense 13,013 5,699 2,538 3,610 163 9,128 34,151 Net interest income (loss) 97,693 21,574 4,388 (5,128 ) (163 ) (7,553 ) 110,811 Provision for loan losses 23,736 3,778 — 42,276 — 27 69,817 Net interest income (loss) after loss provision 73,957 17,796 4,388 (47,404 ) (163 ) (7,580 ) 40,994 Sponsorship and race winnings — — — — 20,042 — 20,042 Race team related expenses — — — — (8,366 ) — (8,366 ) Other income (expense), net (27,341 ) (9,611 ) (3,196 ) (30,366 ) (7,973 ) (11,164 ) (89,651 ) Net income (loss) before taxes 46,616 8,185 1,192 (77,770 ) 3,540 (18,744 ) (36,981 ) Income tax (provision) benefit (12,004 ) (2,108 ) (299 ) 19,520 (889 ) 5,854 10,074 Net income (loss) after taxes $ 34,612 $ 6,077 $ 893 $ (58,250 ) $ 2,651 $ (12,890 ) $ (26,907 ) Balance Sheet Data Total loans net $ 765,338 $ 328,876 $ 62,037 $ 12,725 $ — $ 3,314 $ 1,172,290 Total assets 777,605 340,494 80,622 124,554 33,711 285,425 1,642,411 Total funds borrowed 621,735 272,284 65,924 98,636 8,689 244,987 1,312,255 Selected Financial Ratios Return on average assets 4.59 % 2.07 % 1.07 % (33.21 %) 7.98 % (5.06 %) (2.16 )% Return on average equity 22.93 10.35 5.17 (165.21 ) (363.66 ) (23.29 ) (10.90 ) Interest yield 14.90 9.66 10.51 (2.11 ) N/A N/A 11.32 Net interest margin 13.15 7.62 6.66 (7.14 ) N/A N/A 8.65 Reserve coverage 3.45 1.54 0.00 (1) 66.31 N/A N/A 4.68 Delinquency status (2) 0.70 0.05 0.11 (1) 3.57 N/A N/A 0.57 Charge-off ratio 1.95 0.44 0.04 (3) 59.38 N/A N/A 5.00 (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. Year Ended December 31, 2019 Consumer Lending (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC Corporate and Other Investments Consolidated Total interest income $ 99,463 $ 19,943 $ 7,183 $ 3,665 $ — $ 2,308 $ 132,562 Total interest expense 13,304 4,757 2,833 7,962 159 6,030 35,045 Net interest income (loss) 86,159 15,186 4,350 (4,297 ) (159 ) (3,722 ) 97,517 Provision for loan losses 28,638 1,598 364 16,331 — 455 47,386 Net interest income (loss) after loss provision 57,521 13,588 3,986 (20,628 ) (159 ) (4,177 ) 50,131 Sponsorship and race winnings — — — — 18,742 — 18,742 Race team related expenses — — — — (8,996 ) — (8,996 ) Other income (expense), net (23,490 ) (7,520 ) (1,149 ) (10,493 ) (6,942 ) (7,946 ) (57,540 ) Net income (loss) before taxes 34,031 6,068 2,837 (31,121 ) 2,645 (12,123 ) 2,337 Income tax (provision) benefit (8,813 ) (1,572 ) (684 ) 7,596 (329 ) 3,461 (341 ) Net income (loss) after taxes $ 25,218 $ 4,496 $ 2,153 $ (23,525 ) $ 2,316 $ (8,662 ) $ 1,996 Balance Sheet Data Total loans net $ 695,257 $ 244,716 $ 66,405 $ 105,022 $ — $ 3,362 $ 1,114,762 Total assets 707,377 252,704 84,924 217,483 31,538 247,641 1,541,667 Total funds borrowed 563,805 201,605 68,666 176,825 7,794 150,898 1,169,593 Selected Financial Ratios Return on average assets 3.84 % 2.20 % 2.44 % (9.73 %) 7.28 % (3.71 %) (0.12 )% Return on average equity 17.19 10.22 12.21 (48.49 ) (96.37 ) (14.26 ) (0.59 ) Interest yield 15.39 9.50 11.39 2.88 N/A N/A 11.75 Net interest margin 13.33 7.24 6.90 (3.38 ) N/A N/A 8.64 Reserve coverage 2.53 1.05 0.00 (1) 19.48 N/A N/A 3.97 Delinquency status (2) 0.84 0.07 0.15 (1) 2.04 N/A N/A 0.76 Charge-off ratio 2.69 0.37 1.30 (3) 14.68 N/A N/A 3.60 (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. Nine Months Ended December 31, 2018 Consumer Lending (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC Corporate and Other Investments Consolidated Total interest income $ 68,870 $ 12,799 $ 7,076 $ 6,317 $ — $ 1,741 $ 96,803 Total interest expense 6,986 2,290 1,502 10,125 121 3,792 24,816 Net interest income (loss) 61,884 10,509 5,574 (3,808 ) (121 ) (2,051 ) 71,987 Provision for loan losses 15,118 2,453 — 41,437 — — 59,008 Net interest income (loss) after loss provision 46,766 8,056 5,574 (45,245 ) (121 ) (2,051 ) 12,979 Sponsorship and race winnings — — — — 14,368 — 14,368 Race team related expenses — — — — (7,121 ) — (7,121 ) Other income (expense), net (14,242 ) (3,093 ) (1,824 ) 9,742 (11,476 ) (6,489 ) (27,382 ) Net income (loss) before taxes 32,524 4,963 3,750 (35,503 ) (4,350 ) (8,540 ) (7,156 ) Income tax (provision) benefit (8,579 ) (1,319 ) (862 ) 7,938 1,108 1,005 (709 ) Net income (loss) after taxes $ 23,945 $ 3,644 $ 2,888 $ (27,565 ) $ (3,242 ) $ (7,535 ) $ (7,865 ) Balance Sheet Data Total loans net $ 580,182 $ 181,359 $ 59,973 $ 155,863 $ — $ 4,110 $ 981,487 Total assets 590,746 188,892 93,807 273,501 29,925 204,975 1,381,846 Total funds borrowed 434,527 143,815 53,719 294,465 7,649 127,853 1,062,028 Selected Financial Ratios Return on average assets 5.48 % 2.56 % 4.27 % (10.13 )% (11.69 )% (4.07 )% (0.90 )% Return on average equity 22.60 11.30 9.43 NM NM (12.37 ) (4.62 ) Interest yield 15.78 9.06 14.25 3.58 N/A N/A 10.98 Net interest margin 14.18 7.44 11.23 (2.16 ) N/A N/A 8.19 Reserve coverage 1.17 0.98 0.00 15.11 N/A N/A 3.58 Delinquency status (2) 0.73 0.07 0.44 (1) 9.43 N/A N/A 2.14 Charge-off ratio 1.89 0.46 0.00 7.21 N/A N/A 2.73 (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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) COMMITMENTS AND CONTINGENCIES (A) EMPLOYMENT AGREEMENTS The Company has employment agreements with certain key officers for either a one-, 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 of each five-year term, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one or two-year terms; however, there is currently one agreement that renews after two years for additional one- year terms and one agreement with a two-year term that does not have a renewal period. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period. Employment agreements expire at various dates through 2025, with future minimum payments under these agreements of approximately $12,056,000 as follows. (Dollars in thousands) 2021 $ 3,965 2022 3,081 2023 2,073 2024 2,073 2025 864 Thereafter — Total $ 12,056 (B) OTHER COMMITMENTS The Company had no commitments to extend credit or make investments outstanding at December 31, 2020. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. (C) 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 transfer to liquidation status and the restructure of the FSVC loan described in Note 6. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) RELATED PARTY TRANSACTIONS Certain directors, officers, and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company. Jeffrey Rudnick, the son of one of the Company’s directors, was an officer of LAX Group, LLC, or LAX, one of the Company’s equity investments that sold its assets on December 16, 2020. Mr. Rudnick receives a salary from LAX of $178,000 per year, which was reduced to $133,000 in the 2020 second quarter, 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 provided consulting services to the Company directly for a monthly retainer of $4,200. Effective March 1, 2021, Mr. Rudnick serves as the Company’s Senior Vice President at a salary of $195,000 per year and is no longer providing consulting services to the Company. 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 $7,442,000, that earns interest at an annual rate of 2% through March 2022, none of which has been paid to date. In the 2019 second quarter, RPAC entered into a sponsorship agreement with Victory Junction, a 501(c)(3) public charity of which Richard Petty is a board member, for $7,000,000 of sponsorship payments to RPAC during the 2019 race car season, of which $5,600,000 was subsequently earned and received in 2019, and the balance which was written off as it was not expected to be received. 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, $1,290,000 of servicing fee income was earned by MSC for the three months ended March 31, 2018. For the three months ended March 31, 2018, other income received from the Bank that was not eliminated under Investment Company Accounting was $256,000. |
Stockholders'_Shareholders' Equ
Stockholders'/Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Stockholders'/Shareholders' Equity | (13) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY In November 2003, the Company announced a stock repurchase program which authorized the repurchase of up to $10,000,000 of common stock. In November 2004, the repurchase program was increased by an additional $10,000,000, which was further increased to a total of $20,000,000 in July 2014, and which was further increased to a total of $26,000,000 in July 2015. As of December 31, 2020, a total of 2,931,125 shares had been repurchased for $24,587,000, and $22,874,509 of shares remain authorized for repurchase under the program. There were no purchases in 2020, 2019, and 2018. |
Selected Financial Ratios and O
Selected Financial Ratios and Other Data | 12 Months Ended |
Dec. 31, 2020 | |
Investment Company [Abstract] | |
Selected Financial Ratios and Other Data | (14) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting) The following table provides selected financial ratios and other data for the periods indicated. Three Months Ended March 31, (Dollars in thousands, except per share data) 2018 Net share data Net asset value at the beginning of the year $ 11.80 Net investment income (loss) (0.15 ) Income tax provision (benefit) 0.03 Net realized gains (losses) on investments (1.44 ) Net change in unrealized appreciation on investments 0.94 Net increase (decrease) in net assets resulting from operations (0.62 ) Issuance of common stock (0.03 ) Total increase (decrease) in net asset value (0.65 ) Net asset value at the end of the period/year (1) $ 11.15 Per share market value at beginning of year $ 3.53 Per share market value at end of period/year 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 income (loss) after income taxes to average net assets (4) (4.61 ) (1) Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and $0.00 of undistributed net realized gains per share for the period presented. (2) Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year. (3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. (4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | (15) EMPLOYEE BENEFIT PLANS The Company has a 401(k) Investment Plan, or the 401(k) Plan, which covers all full-time and part-time employees of the Company who have attained the age of 21 and have a minimum of thirty (30) days of service, including the employees of Medallion Bank. Under the 401(k) Plan, an employee may elect to defer not less than 1% of total annual compensation, up to the applicable limits set forth in the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. Once eligible full-time employees have completed a minimum of one (1) year of service, and part time employees have worked at least 500 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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 plus or minus observable price changes. (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 December 31, 2020 and December 31, 2019, 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. December 31, 2020 December 31, 2019 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash, cash equivalents, and federal funds sold (1) $ 112,040 $ 112,040 $ 67,821 $ 67,821 Equity investments 9,746 9,746 10,079 10,079 Investment securities 46,792 46,792 48,998 48,998 Loans receivable 1,172,290 1,172,290 1,114,762 1,114,762 Accrued interest receivable (2) 10,338 10,338 8,662 8,662 Financial liabilities Funds borrowed (3) 1,312,255 1,312,591 1,169,593 1,171,274 Accrued interest payable (2) 4,673 4,673 4,398 4,398 (1) Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17. (2) Categorized as level 3 within the fair value hierarchy. See Note 17. (3) As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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 (levels 1 and 2) and unobservable inputs (level 3). Assets and liabilities measured at fair value, recorded on the consolidated balance sheets, are categorized based on the inputs to the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives, most US Government and agency securities, and certain other sovereign government obligations). Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: A) Quoted prices for similar assets or liabilities in active markets (for example, restricted stock); B) Quoted price for identical or similar assets or liabilities in non-active markets (for example, corporate and municipal bonds, which trade infrequently); C) Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and D) Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives). Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the assets or liability (examples include certain private equity investments, and certain residential and commercial mortgage-related assets, including loans, securities, and derivatives). A review of fair value hierarchy classification is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain assets or liabilities. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in/out of the level 3 category as of the beginning of the quarter in which the reclassifications occur. Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented The following table s present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 20 20 and 201 9 . December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,500 $ — $ 1,500 Available for sale investment securities — 46,792 — 46,792 Total (1) $ — $ 48,292 $ — $ 48,292 (1) Total unrealized gains of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2020 related to these assets. December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Available for sale investment securities (1) $ — $ 48,998 $ — $ 48,998 Total $ — $ 48,998 $ — $ 48,998 (1) Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2020 and 2019. December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,746 $ 9,746 Impaired loans — — 62,174 62,174 Loan collateral in process of foreclosure — — 54,560 54,560 Total $ — $ — $ 126,480 $ 126,480 December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,079 $ 10,079 Impaired loans — — 34,915 34,915 Loan collateral in process of foreclosure — — 52,711 52,711 Total $ — $ — $ 97,705 $ 97,705 Significant Unobservable Inputs ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company. The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2020 and 2019. (Dollars in thousands) Fair Value at 12/31/20 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity investments $ 8,291 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 1,455 Precedent market transaction Offering price $8.73 / share Impaired loans 62,174 Market approach Historical and actual loss experience 1.50% - 6.00% 60% of balance Median transfer price (2) $0.6 - 108.7 Collateral value N/A Loan collateral in process of foreclosure 53,128 Market approach Median transfer price (2) $0.6 - 108.7 1,432 Collateral value (3) $0.7 - 32.3 (1) Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities. (2) Represents amount net of liquidation costs. (3) Relates to the recreation portfolio. (Dollars in thousands) Fair Value at 12/31/19 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity Investments $ 7,435 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,189 Investee book value adjusted for market appreciation Financial condition and operating performance of the investee N/A Public company comparables Business enterprise value $4,855 – $6,120 Business enterprise value/revenue multiples 1.59-5.98x Discount for lack of marketability 25% 1,455 Precedent market transaction Offering price $8.73 / share |
Medallion Bank Preferred Stock
Medallion Bank Preferred Stock (Non-controlling Interest) | 12 Months Ended |
Dec. 31, 2020 | |
Medallion Bank [Member] | |
Medallion Bank Preferred Stock (Non-controlling Interest) | (18) MEDALLION BANK PREFERRED STOCK (Non-controlling interest) On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46,000,000 aggregate liquidation amount, yielding net proceeds of $42,485,000, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be three-month Secured Overnight Financing Rate, or SOFR) plus a spread of 6.46% per annum. On July 21, 2011, the Bank issued, and the US Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E, or Series E, for an aggregate purchase price of $26,303,000 under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9 % on the Series E. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Statements | (19) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS The following shows the condensed financial information of Medallion Financial Corp. (parent company only). Condensed Balance Sheets (Dollars in thousands) December 31, 2020 December 31, 2019 Assets Cash $ 33,743 $ 4,477 Net loans receivable 12,293 26,802 Loan collateral in process of foreclosure 9,960 11,104 Goodwill and intangible assets 175,731 177,176 Investment in bank subsidiaries 149,686 158,201 Investment in non-bank subsidiaries 88,165 92,856 Income tax receivable 1,470 4,708 Other assets 10,912 14,111 Total assets $ 481,960 $ 489,435 Liabilities Other liabilities $ 21,302 $ 18,660 Intercompany payables 51,352 54,904 Short-term borrowings 53,359 8,188 Deferred tax liabilities 24,172 30,728 Long-term borrowings 100,367 113,807 Total liabilities 250,552 226,287 Total stockholders’ equity 231,408 263,148 Total liabilities and equity $ 481,960 $ 489,435 Condensed Statements of Operations Year Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Nine Months Ended December 31, 2018 Interest income $ (2,824 ) $ (2,552 ) $ (1,958 ) Interest expense 8,602 8,856 5,480 Net interest loss (11,426 ) (11,408 ) (7,438 ) Provision for loan losses 5,127 6,377 19,190 Net interest loss after provision for loan losses (16,553 ) (17,785 ) (26,628 ) Other income (expense), net (22,062 ) (13,686 ) (16,913 ) Loss before income taxes and undistributed earnings of subsidiaries (38,615 ) (31,471 ) (43,541 ) Income tax benefit 10,454 7,013 5,328 Loss before undistributed earnings of subsidiaries (28,161 ) (24,458 ) (38,213 ) Undistributed earnings (losses) of subsidiaries (6,622 ) 22,696 28,041 Net income (loss) attributable to parent company $ (34,783 ) $ (1,762 ) $ (10,172 ) Condensed Statements of Other Comprehensive Income (Loss) Year Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Nine Months Ended December 31, 2018 Net loss $ (34,783 ) $ (1,762 ) $ (10,172 ) Other comprehensive income (loss) 1,013 1,081 (82 ) Total comprehensive income (loss) attributable to Medallion Financial Corp. $ (33,770 ) $ (681 ) $ (10,254 ) Condensed Statements of Cash Flow Year Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Nine Months Ended December 31, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (34,783 ) $ (1,762 ) $ (10,172 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed (earnings) losses of subsidiaries 6,622 (22,696 ) (28,041 ) Provision for loan losses 5,127 6,377 19,190 Depreciation and amortization 5,357 5,484 5,451 Change in deferred and other tax assets/liabilities, net (3,317 ) (2,225 ) 4,512 Net change in loan collateral in process of foreclosure 4,940 906 678 Net change in unrealized depreciation on investments 3,493 1,786 — Stock-based compensation expense 2,031 1,221 425 Decrease in other assets 2,299 988 4,073 Increase in deferred financing costs (1,233 ) (1,297 ) — Decrease in intercompany payables (3,552 ) (8,448 ) (3,368 ) Increase in other liabilities 2,336 (1,759 ) 4,237 Net cash used by operating activities (10,680 ) (21,425 ) (3,015 ) CASH FLOWS FROM INVESTING ACTIVITIES Loans originated (14 ) (3,312 ) (309 ) Proceeds from principal receipts, sales, and maturities of loans and investments 1,193 2,313 10,900 Purchases of investments (2,304 ) (1,125 ) — Proceeds from sale and principal payments of loan collateral in process of foreclosure 1,276 2,403 487 Dividends from subsidiaries 7,597 6,248 5,200 Net cash provided by investing activities 7,748 6,527 16,278 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed 33,600 36,000 — Repayments of funds borrowed (1,402 ) (17,735 ) (17,208 ) Net cash provided by (used for) financing activities 32,198 18,265 (17,208 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,266 3,367 (3,945 ) Cash and cash equivalents, beginning of period 4,477 1,110 5,055 Cash and cash equivalents, end of period $ 33,743 $ 4,477 $ 1,110 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities | (20) 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 . S ee Note 6 for more details . The Company’s interest in Trust III is accounted for as an equity investment and has a value of $ 0 as of December 31, 20 20 and 201 9 . In addition, MFC remains the servicer of the assets of Trust III for a fee. 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, or the DZ loan. The loan, which has an outstanding balance of $86,825,000, currently terminates on May 15, 2021. Borrowings under the DZ loan are collateralized by Trust III’s assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (21) SUBSEQUENT EVENTS The Company evaluated the effects of events that have occurred subsequent to the year ended December 31, 2020, through the date of financial statement issuance. On March 11, 2021, one of the notes payable to banks with a maturity of September 1, 2021 was paid off. On March 12, 2021, one of the notes payable to banks with a maturity of April 15, 2021 was paid off. A lender for one of the notes payable to banks with a maturity date of February 1, 2021 has agreed to extend such note until December 31, 2021. A lender for nine of the notes payable to banks with maturity dates of February 9, 2021 has agreed to extend such notes until December 31, 2021. Fourteen of the notes payable to banks with maturity dates of February 1, 2021 were extended until April 1, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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, or BDC, under the Investment Company Act of 1940, or 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, or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and 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 were not consolidated with the Company prior to the three months ended June 30, 2018. 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. Cash also includes $1,500,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company follows the Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 16 and 17 to the consolidated financial statements. |
Equity Investments | Equity Investments The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investment in equity securities with readily determinable value to be valued as such, and those that do not are measured at cost, less any impairment plus or minus any observable price change. Equity investments of $9,746,000 and $10,079,000 at December 31, 2020 and 2019, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2020 and 2019, the Company determined that there was no impairment or observable price change. |
Investment Securities (Bank Holding Company Accounting) | Investment Securities (Bank Holding Company Accounting) The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities . |
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 has continued. The Company incorporated these new factors in the Medallion 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 2018 first quarter. Refer to Note 5 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 Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, and therefore changed the Company’s financial reporting from Investment Company Accounting to Bank Holding Company Accounting. As a result, 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 December 31, 2020 and 2019, net loan origination costs were $20,684,000 and $17,839,000. Net amortization to income for the years ended December 31, 2020, 2019 and 2018 was $6,021,000, $4,952,000, and 3,128,000 ($3,993,000 when combined with the Bank). Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer 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 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 90 days or more past due were $6,878,000 at December 31, 2020, or 0.57% of the total loan portfolio, compared to $8,663,000, or 0.76% at December 31, 2019. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance, and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in 2019, all consumer loans which are party to a Chapter 13 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 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 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 $15,367,000 and $28,833,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2020 and 2019. The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $107,131,000 and $113,581,000 at December 31, 2020 and 2019. 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 the Bank, and determined that no material servicing asset or liability existed as of December 31, 2020 and 2019. The Company assigned its servicing rights of the Bank’s 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. For medallion loans, delinquent nonperforming loans are valued at the median sales price for the collateral over the most recent quarter, historically non-delinquent nonperforming loans are valued at either the median sales price for the collateral over the most recent quarter or the discounted cash flow if such loans were modified and it is clear that sources other than the taxi business were instrumental in keeping such loans current, 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 of COVID-19, there was an increase in the reserve percentages of 50 basis points on the recreation subprime loan business during the twelve months ended December 31, 2020. In addition, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six month deferral period with borrowers, and therefore deemed all such loans as impaired. As a result, all medallion loans were written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions. In total, write-downs on medallion assets were approximately $46,087,000 during 2020. The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Had there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more past due would have resulted in increased reserves and/or charge-offs. 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 were 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, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2020 and 2019, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $51,090,000 and $52,536,000, and the Company recognized $1,445,000, $1,446,000 and $1,083,000 of amortization expense on the intangible assets for the twelve months ended December 31, 2020, 2019, and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,717,000 and $5,758,000 were outstanding at December 31, 2020 and 2019, and of which $3,041,000, $3,289,000 and $3,339,000 were amortized to interest income for the twelve months ended December 31, 2020, 2019, and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2020 and 2019, who concluded there was no impairment on the Bank and on the RPAC intangible asset. The table below shows the details of the intangible assets of the dates presented. (Dollars in thousands) December 31, 2020 December 31, 2019 Brand-related intellectual property $ 18,974 $ 20,075 Home improvement contractor relationships 5,951 6,296 Race organization 26,165 26,165 Total intangible assets $ 51,090 $ 52,536 |
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 $412,000, $418,000, and $422,000 for the years ended December 31, 2020, 2019, and 2018. |
Deferred Costs | Deferred Costs Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2,558,000, $2,348,000, and $1,864,000 for the years ended December 31, 2020, 2019, and 2018, recorded as interest expense. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the Company’s balance sheet for all of these purposes were $5,805,000 and $5,105,000 at December 31, 2020 and 2019. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense |
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 accordance 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. Years Ended December 31, (Dollars in thousands, except share and per share data) 2020 2019 2018 Net loss/net increase in net assets resulting from operations available to common stockholders $ (34,783 ) $ (1,762 ) $ (25,046 ) Weighted average common shares outstanding applicable to basic EPS 24,445,452 24,342,979 24,214,978 Effect of dilutive stock options — — — Effect of restricted stock grants — — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,445,452 24,342,979 24,214,978 Basic loss per share $ (1.42 ) $ (0.07 ) $ (1.03 ) Diluted loss per share (1.42 ) (0.07 ) (1.03 ) Potentially dilutive common shares excluded from the above calculations aggregated 934,003, 462,180, and 100,000 shares as of December 31, 2020, 2019, and 2018. |
Stock Compensation | Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income/ net increase in net assets resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income/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 2020, 2019, and 2018, the Company issued 229,408, 216,148, and 101,010 restricted shares of stock-based compensation awards, issued 444,557, 449,450, and 39,000 shares of other stock-based compensation awards, and issued 47,156, 26,040, and 0 of restricted share units of stock based compensation awards, and recognized $2,030,000, $1,221,000, and $576,000, or $0.08, $0.05, and $0.02, per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2020, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $2,405,000, which is expected to be recognized over the next 16 quarters |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, 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 December 31, 2020, the Bank’s Tier 1 leverage ratio was 16.93%. 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 December 31, 2020 December 31, 2019 Common equity tier 1 capital — — $ 148,507 $ 158,187 Tier 1 capital — — 217,295 226,975 Total capital — — 233,460 241,842 Average assets — — 1,283,664 1,172,866 Risk-weighted assets — — 1,243,783 1,144,337 Leverage ratio (1) 4.0 % 5.0 % 16.9 % 19.4 % Common equity tier 1 capital ratio (2) 7.0 6.5 11.9 13.8 Tier 1 capital ratio (3) 8.5 8.0 17.5 19.8 Total capital ratio (3) 10.5 10.0 18.8 21.1 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of December 31, 2020 and 2019 reflect the capital conservation buffer of 2.5%. T he minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 2020 and 2019 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments. 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 November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022 . The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Intangible Assets | The table below shows the details of the intangible assets of the dates presented. (Dollars in thousands) December 31, 2020 December 31, 2019 Brand-related intellectual property $ 18,974 $ 20,075 Home improvement contractor relationships 5,951 6,296 Race organization 26,165 26,165 Total intangible assets $ 51,090 $ 52,536 |
Summary of the Calculation of Basic and Diluted EPS | The table below shows the calculation of basic and diluted EPS. Years Ended December 31, (Dollars in thousands, except share and per share data) 2020 2019 2018 Net loss/net increase in net assets resulting from operations available to common stockholders $ (34,783 ) $ (1,762 ) $ (25,046 ) Weighted average common shares outstanding applicable to basic EPS 24,445,452 24,342,979 24,214,978 Effect of dilutive stock options — — — Effect of restricted stock grants — — — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,445,452 24,342,979 24,214,978 Basic loss per share $ (1.42 ) $ (0.07 ) $ (1.03 ) Diluted loss per share (1.42 ) (0.07 ) (1.03 ) |
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 December 31, 2020 December 31, 2019 Common equity tier 1 capital — — $ 148,507 $ 158,187 Tier 1 capital — — 217,295 226,975 Total capital — — 233,460 241,842 Average assets — — 1,283,664 1,172,866 Risk-weighted assets — — 1,243,783 1,144,337 Leverage ratio (1) 4.0 % 5.0 % 16.9 % 19.4 % Common equity tier 1 capital ratio (2) 7.0 6.5 11.9 13.8 Tier 1 capital ratio (3) 8.5 8.0 17.5 19.8 Total capital ratio (3) 10.5 10.0 18.8 21.1 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Investments [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | Fixed maturity securities available for sale at December 31, 2020 and 2019 consisted of the following: December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 34,929 $ 1,495 $ (45 ) $ 36,379 State and municipalities 10,226 189 (2 ) 10,413 Total $ 45,155 $ 1,684 $ (47 ) $ 46,792 December 31, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 36,335 $ 411 $ (112 ) $ 36,634 State and municipalities 12,279 186 (101 ) 12,364 Total $ 48,614 $ 597 $ (213 ) $ 48,998 |
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity | The amortized cost and estimated market value of investment securities as of December 31, 2020 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 $ 25 $ 25 Due after one year through five years 12,485 12,956 Due after five years through ten years 14,499 15,214 Due after ten years 18,146 18,597 Total $ 45,155 $ 46,792 |
Summary of Securities with Gross Unrealized Losses | The following tables show information pertaining to securities with gross unrealized losses at December 31, 2020 and 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows. Less than Twelve Months Twelve Months and Over December 31, 2020 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (45 ) $ 4,028 $ — $ — State and municipalities — — (2 ) 196 Total $ (45 ) $ 4,028 $ (2 ) $ 196 Less than Twelve Months Twelve Months and Over December 31, 2019 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (74 ) $ 8,291 $ (38 ) $ 4,939 State and municipalities (17 ) 2,099 (84 ) 2,739 Total $ (91 ) $ 10,390 $ (122 ) $ 7,678 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Inclusive Capitalized Loans | The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2020 and 2019. As of December 31, 2020 As of December 31, 2019 (Dollars in thousands) Amount As a Percent of Gross Loans Amount As a Percent of Gross Loans Recreation $ 792,686 65 % $ 713,332 62 % Home improvement 334,033 27 247,324 21 Commercial 65,327 5 69,767 6 Medallion 37,768 3 130,432 11 Strategic partnership 24 — — — Total gross loans 1,229,838 100 % 1,160,855 100 % Allowance for loan losses (57,548 ) (46,093 ) Total net loans $ 1,172,290 $ 1,114,762 |
Schedule of Activity of Gross Loans | The following tables show the activity of the gross loans for the twelve months ended December 31, 2020 and 2019. Twelve Months Ended December 31, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – December 31, 2019 $ 713,332 $ 247,324 $ 69,767 $ 130,432 $ — $ 1,160,855 Loan originations 294,885 193,098 7,575 — 1,663 497,221 Principal payments, sales, and maturities (187,989 ) (105,813 ) (13,183 ) (13,207 ) (1,639 ) (321,831 ) Charge-offs, net (14,457 ) (1,229 ) (28 ) (42,648 ) — (58,362 ) Transfer to loan collateral in process of foreclosure, net (14,871 ) — — (32,383 ) — (47,254 ) Amortization of origination costs (7,809 ) 1,910 8 (131 ) — (6,022 ) Amortization of loan premium (191 ) (320 ) — (2,531 ) — (3,042 ) FASB origination costs, net 9,786 (937 ) — 36 — 8,885 Paid-in-kind interest — — 1,188 — — 1,188 Transfer to other foreclosed property — — — (1,800 ) — (1,800 ) Gross loans – December 31, 2020 $ 792,686 $ 334,033 $ 65,327 $ 37,768 $ 24 $ 1,229,838 Twelve Months Ended December 31, 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 301,403 142,112 18,578 — 462,093 Principal payments, sales, and maturities (146,873 ) (76,157 ) (13,553 ) (15,070 ) (251,653 ) Charge-offs, net (17,419 ) (786 ) (819 ) (18,664 ) (37,688 ) Transfer to loan collateral in process of foreclosure, net (14,512 ) — — (16,836 ) (31,348 ) Amortization of origination costs (6,428 ) 1,561 34 (119 ) (4,952 ) Amortization of loan premium (247 ) (416 ) — (2,626 ) (3,289 ) FASB origination costs, net 10,370 (2,145 ) 610 141 8,976 Paid-in-kind interest — — 834 — 834 Gross loans – December 31, 2019 $ 713,332 $ 247,324 $ 69,767 $ 130,432 $ 1,160,855 |
Summary of Activity in Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2020 and 2019. Twelve Months Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Allowance for loan losses – beginning balance $ 46,093 $ 36,395 Charge-offs Recreation (23,543 ) (24,433 ) Home improvement (2,909 ) (2,504 ) Commercial (31 ) (819 ) Medallion (49,361 ) (22,205 ) Total charge-offs (75,844 ) (49,961 ) Recoveries Recreation 9,086 7,014 Home improvement 1,680 1,718 Commercial 3 — Medallion 6,713 3,541 Total recoveries 17,482 12,273 Net charge-offs (1) (58,362 ) (37,688 ) Provision for loan losses 69,817 47,386 Allowance for loan losses – ending balance (2) (3) $ 57,548 $ 46,093 ( 1 ) As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company. ( 2 ) As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. ( 3 ) As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans |
Summary of Allowance for Loan Losses by Type | The following tables set forth the allowance for loan losses by type as of December 31, 2020 and 2019. December 31, 2020 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Allowance as a Percent of Nonaccrual Recreation $ 27,348 48 % 3.45 % 378.20 % Home improvement 5,157 9 1.54 NM Commercial — — — — Medallion 25,043 43 66.31 68.01 Total $ 57,548 100 % 4.68 % 93.17 % December 31, 2019 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Allowance as a Percent of Nonaccrual Recreation $ 18,075 39 % 2.53 % 228.25 % Home improvement 2,608 6 1.05 NM Commercial — — — — Medallion 25,410 55 19.48 389.84 Total $ 46,093 100 % 3.97 % 174.04 % |
Summary of Total Nonaccrual Loans and Foregone Interest | The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions. December 31, (Dollars in thousands) 2020 2019 2018 Total nonaccrual loans $ 61,767 $ 26,484 $ 34,877 Interest foregone for the year 3,311 2,152 1,153 Amount of foregone interest applied to principal for the year 602 254 535 Interest foregone life-to-date 5,252 2,744 1,952 Amount of foregone interest applied to principal life-to-date 792 471 1,214 Percentage of nonaccrual loans to gross loan portfolio 5 % 2 % 3 % Percentage of allowance for loan losses to nonaccrual loans 93 174 104 |
Summary of Performance Status of Loan | The following tables present the performance status of loans as of December 31, 2020 and 2019. December 31, 2020 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 785,047 $ 7,639 $ 792,686 0.96 % Home improvement 333,862 171 334,033 0.05 Commercial 48,731 16,596 65,327 25.40 Medallion — 37,768 (1) 37,768 100.00 Strategic partnership 24 — 24 0.00 Total $ 1,167,664 $ 62,174 (2) $ 1,229,838 5.06 % December 31, 2019 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 705,070 $ 8,262 $ 713,332 1.16 % Home improvement 247,139 185 247,324 0.07 Commercial 57,905 11,862 69,767 17.00 Medallion 88,248 42,184 130,432 32.34 Total $ 1,098,362 $ 62,493 (2) $ 1,160,855 5.38 % (1) Includes medallion loan premiums of $1,615 as of December 31, 2020. (2) Includes $408 and $36,009 of TDRs as of December 31, 2020 and 2019, which are accruing and paying currently, but which are considered nonperforming loans under GAAP. |
Summary of Attributes of Nonperforming Loan Portfolio | The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2020 and 2019, all of which had an allowance recorded against the principal balance. December 31, 2020 December 31, 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With an allowance recorded Recreation $ 7,639 $ 7,639 $ 264 $ 8,262 $ 8,262 $ 329 Home improvement 171 171 3 185 185 3 Commercial 16,596 16,600 — 11,862 11,867 — Medallion 37,768 38,368 25,043 42,184 42,650 14,824 Total nonperforming loans with an allowance $ 62,174 $ 62,778 $ 25,310 $ 62,493 $ 62,964 $ 15,156 For the Twelve Months Ended December 31, 2020 December 31, 2019 (Dollars in thousands) Average Investment Recorded Interest Income (Expense) Recognized Average Investment Recorded Interest Income (Expense) Recognized With an allowance recorded Recreation $ 7,949 $ 560 $ 8,317 $ 471 Home improvement 172 2 185 — Commercial 16,884 123 7,886 392 Medallion 40,928 465 44,721 346 Total nonperforming loans with an allowance $ 65,933 $ 1,150 $ 61,109 $ 1,209 |
Summary of Aging of Loans | The following tables show the aging of all loans as of December 31, 2020 and 2019. Days Past Due Recorded Investment December 31, 2020 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) 90 Days and Accruing Recreation $ 22,058 $ 7,582 $ 5,343 $ 34,983 $ 732,391 $ 767,374 $ — Home improvement 813 218 170 1,201 335,684 336,885 — Commercial — — 75 75 65,265 65,340 — Medallion 2,019 973 1,290 4,282 31,871 36,153 — Strategic partnership — — — — 24 24 — Total $ 24,890 $ 8,773 $ 6,878 $ 40,541 $ 1,165,235 $ 1,205,776 $ — (1) Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. Days Past Due Recorded Investment December 31, 2019 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) 90 Days and Accruing Recreation $ 27,357 $ 8,426 $ 5,800 $ 41,583 $ 648,227 $ 689,810 $ — Home improvement 931 427 184 1,542 249,288 250,830 — Commercial — — 107 107 69,660 69,767 — Medallion 12,491 2,118 2,572 17,181 109,106 126,287 — Total $ 40,779 $ 10,971 $ 8,663 $ 60,413 $ 1,076,281 $ 1,136,694 $ — (1) |
Summary of TDRs | The following table shows the TDR’s which the Company entered into during the year ended December 31, 2020. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Recreation loans 77 1,053 749 Commercial loans 1 1,821 1,821 Medallion loans 59 33,505 33,505 The following table shows the TDR’s which the Company entered into during the year ended December 31, 2019. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Recreation loans 294 $ 4,433 $ 2,831 Medallion loans 71 31,376 31,385 |
Summary of Activities of the Loan Collateral Process of Foreclosure Related to Recreation and Medallion Loans | The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2020 and 2019. Twelve Months Ended December 31, 2020 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2019 $ 1,476 $ 51,235 $ 52,711 Transfer from loans, net 14,871 32,403 47,274 Sales (7,512 ) (300 ) (7,812 ) Cash payments received — (5,687 ) (5,687 ) Collateral valuation adjustments (7,403 ) (24,523 ) (31,926 ) Loan collateral in process of foreclosure – December 31, 2020 $ 1,432 $ 53,128 $ 54,560 Twelve Months Ended December 31, 2019 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2018 $ 1,503 $ 47,992 $ 49,495 Transfer from loans, net 14,512 16,836 31,348 Sales (7,591 ) (1,515 ) (9,106 ) Cash payments received — (7,697 ) (7,697 ) Collateral valuation adjustments (6,948 ) (4,381 ) (11,329 ) Loan collateral in process of foreclosure – December 31, 2019 $ 1,476 $ 51,235 $ 52,711 |
Unrealized Appreciation (Depr_2
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Investments [Abstract] | |
Schedule of Unrealized Appreciation (Depreciation) on Investments | 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 under Investment Company Accounting. (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 Changes in Unrealized and Realized Gains and Losses in Investment Portfolio | The following table sets forth the pre-tax changes in our 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 ) Other gains — Direct charge-offs 2 Total $ (34,745 ) |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances of Funds Borrowed | The outstanding balances of funds borrowed were as follows. Payments Due for the Year Ending December 31, (Dollars in thousands) 2021 2022 2023 2024 2025 Thereafter December 31, 2020 (1) December 31, 2019 (1) Interest Rate (2) Deposits (3) $ 393,835 $ 241,605 $ 190,387 $ 120,040 $ 121,955 $ — $ 1,067,822 $ 954,245 1.71 % Retail and privately placed notes (4) 33,625 — — 36,000 — 33,600 103,225 69,625 8.25 % SBA debentures and borrowings 22,508 — 5,000 5,000 14,000 21,500 68,008 71,746 3.36 % Preferred securities (4) — — — — — 33,000 33,000 33,000 2.35 % Notes payable to banks 30,701 280 280 — — — 31,261 33,183 3.67 % Other borrowings 500 7,442 — — 747 — 8,689 7,794 1.91 % Total $ 481,169 $ 249,327 $ 195,667 $ 161,040 $ 136,702 $ 88,100 $ 1,312,005 $ 1,169,593 2.37 % (1) Excludes deferred financing costs of $5,805 and $5,105 as of December 31, 2020 and 2019. ( 2 ) Weighted average contractual rate as of December 31, 2020. (3) Balance excludes $250 of strategic partner reserve deposits as of December 31, 2020. ( 4 ) Relates to loans held at Medallion Financial Corp. (parent company only). |
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits | The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of December 31, 2020. (Dollars in thousands) December 31, 2020 Three months or less $ 125,766 Over three months through six months 117,602 Over six months through one year 150,467 Over one year 673,987 Total deposits $ 1,067,822 |
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 December 31, 2020. (Dollars in thousands) Borrower # of Lenders/ Notes Note Dates Maturity Dates Type Note Amounts Balance Outstanding at December 31, 2020 Payment Average Interest Rate at December 31, 2020 Interest Rate Index (1) Medallion Financial Corp. 5/5 4/11 - 8/14 2/21 - 9/21 Term loans and demand notes secured by pledged loans (2) $ 19,734 (2) $ 19,734 Interest only (3) 3.75 % Various (3) Medallion Chicago 2/23 11/11 - 12/11 2/21 Term loans secured by owned Chicago taxi medallions (4) 18,449 10,687 $134 of principal & interest paid monthly 3.50 % N/A Medallion Funding 1/1 11/18 12/23 Term loan unsecured 1,400 840 $70 principal & interest paid quarterly 4.00 % N/A $ 39,583 $ 31,261 (1) At December 31, 2020, 30 day LIBOR was 0.14%, 360 day LIBOR was 0.34%, and the prime rate was 3.25%. (2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 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 $85. (4) Guaranteed by the Company. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs and Additional Information | The following table presents the operating lease costs and additional information for the twelve months ended December 31, 2020 and 2019. (Dollars in thousands) December 31, 2020 December 31, 2019 Operating lease costs $ 2,384 $ 2,184 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 2,821 2,419 Right-of-use asset obtained in exchange for lease liability 251 2,413 |
Schedule of Breakout of Operating leases | The following table presents the breakout of the operating leases as of December 31, 2020 and 2019. (Dollars in thousands) December 31, 2020 December 31, 2019 Operating lease right-of-use assets $ 11,737 $ 13,482 Other current liabilities 2,004 2,085 Operating lease liabilities 11,018 12,738 Total operating lease liabilities 13,022 14,823 Weighted average remaining lease term 6.4 years 7.3 years Weighted average discount rate 5.54% 5.54 % |
Schedule of Maturities of the Lease Liabilities | At December 31, 2020, maturities of the lease liabilities were as follows. (Dollars in thousands) 2021 $ 2,474 2022 2,406 2023 2,356 2024 2,373 2025 2,390 Thereafter 3,521 Total lease payments 15,520 Less imputed interest 2,498 Total operating lease liabilities $ 13,022 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019. (Dollars in thousands) 2020 2019 Goodwill and other intangibles $ (44,799 ) $ (45,595 ) Provision for loan losses 19,556 19,198 Net operating loss carryforwards (1) 30,493 22,607 Accrued expenses, compensation, and other assets 1,174 1,701 Unrealized gains on other investments (6,769 ) (6,790 ) Total deferred tax liability (345 ) (8,879 ) Valuation allowance (462 ) (462 ) Deferred tax liability, net (807 ) (9,341 ) Taxes receivable 1,757 1,516 Net deferred and other tax liabilities $ 950 $ (7,825 ) (1) As of December 31, 2020, the Company and its subsidiaries had an estimated $124,150 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $30,031 as of December 31, 2020. |
Summary of Components of Tax (Provision) Benefit | The components of our tax (provision) benefit for the years ended December 31, 2020, 2019, and 2018 were as follows. (Dollars in thousands) 2020 2019 2018 Current Federal $ — $ — $ (2,797 ) State (260 ) 519 (1,078 ) Deferred Federal 7,702 (489 ) 5,270 State 2,632 (371 ) (1,464 ) Net (provision) benefit for income taxes $ 10,074 $ (341 ) $ (69 ) |
Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit | The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2020, 2019, and 2018. (Dollars in thousands) 2020 2019 2018 Statutory Federal income tax (provision) benefit at 21% $ 7,766 $ (642 ) $ 4,935 State and local income taxes, net of federal income tax benefit 1,518 (120 ) 440 Revaluation of net operating losses 1,228 380 — Change in effective state income tax rate (145 ) (891 ) (2,564 ) Change in state income tax accruals (260 ) 640 — Income attributable to non-controlling interest 460 309 — Non deductible expenses (453 ) — — Utilization of carry forwards — — (910 ) Appreciation of Medallion Bank — — (1,974 ) Other (40 ) (17 ) 4 Total income tax (provision) benefit $ 10,074 $ (341 ) $ (69 ) |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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. Year ended December 31, 2020 2019 2018 Risk free interest rate 1.23 % 2.29 % 2.82 % Expected dividend yield — 0.66 4.86 Expected life of option in years (1) 6.25 6.25 6.00 Expected volatility (2) 51.03 % 49.03 % 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 years ended December 31, 2020, 2019, and 2018. 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 2.14-13.84 7.23 Granted 449,450 5.21-7.25 6.61 Cancelled (44,076 ) 6.55-13.84 9.00 Exercised (1) — — — Outstanding at December 31, 2019 550,040 2.14-13.53 6.58 Granted 444,557 4.89-6.68 6.24 Cancelled (42,928 ) 2.22-13.53 6.91 Exercised (1) — — — Outstanding at December 31, 2020 (2) 951,669 $2.14-12.55 $ 6.41 Options exercisable at December 31, 2018 81,889 $2.14-13.84 $ 9.25 December 31, 2019 62,778 2.14-13.53 7.60 December 31, 2020 (2) 178,307 2.14-12.55 6.33 (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 2020, 2019, and 2018. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020. |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the years ended December 31, 2020, 2019, and 2018. Number of Shares Grant Price Per Share Weighted Average Grant 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 216,148 4.80-7.25 6.59 Cancelled (3,946 ) 3.93-6.55 4.97 Vested (1) (118,238 ) 2.06-4.80 3.89 Outstanding at December 31, 2019 284,879 3.95-7.25 6.01 Granted 229,408 4.89-6.68 6.21 Cancelled (8,755 ) 3.95-7.25 6.93 Vested (1) (89,392 ) 3.95-6.55 5.37 Outstanding at December 31, 2020 (2) 416,140 $4.39-7.25 $ 6.24 (1) The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018. (2) The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020. |
Summary of Activity for Unvested Options Outstanding | The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2020. Number of Options Exercise Price Per Share Weighted Average Exercise Price Outstanding at December 31, 2019 487,262 $2.14-7.25 $ 6.45 Granted 444,557 4.89-6.68 6.24 Cancelled (20,630 ) 6.55-7.25 6.76 Vested (137,827 ) 2.14-6.55 6.05 Outstanding at December 31, 2020 773,362 $4.89-7.25 $ 6.42 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following tables present segment data as of and for the twelve months ended December 31, 2020 and 2019, and as of and for the nine months ended December 31, 2018. Year Ended December 31, 2020 Consumer Lending (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC Corporate and Other Investments Consolidated Total interest income $ 110,706 $ 27,273 $ 6,926 $ (1,518 ) $ — $ 1,575 $ 144,962 Total interest expense 13,013 5,699 2,538 3,610 163 9,128 34,151 Net interest income (loss) 97,693 21,574 4,388 (5,128 ) (163 ) (7,553 ) 110,811 Provision for loan losses 23,736 3,778 — 42,276 — 27 69,817 Net interest income (loss) after loss provision 73,957 17,796 4,388 (47,404 ) (163 ) (7,580 ) 40,994 Sponsorship and race winnings — — — — 20,042 — 20,042 Race team related expenses — — — — (8,366 ) — (8,366 ) Other income (expense), net (27,341 ) (9,611 ) (3,196 ) (30,366 ) (7,973 ) (11,164 ) (89,651 ) Net income (loss) before taxes 46,616 8,185 1,192 (77,770 ) 3,540 (18,744 ) (36,981 ) Income tax (provision) benefit (12,004 ) (2,108 ) (299 ) 19,520 (889 ) 5,854 10,074 Net income (loss) after taxes $ 34,612 $ 6,077 $ 893 $ (58,250 ) $ 2,651 $ (12,890 ) $ (26,907 ) Balance Sheet Data Total loans net $ 765,338 $ 328,876 $ 62,037 $ 12,725 $ — $ 3,314 $ 1,172,290 Total assets 777,605 340,494 80,622 124,554 33,711 285,425 1,642,411 Total funds borrowed 621,735 272,284 65,924 98,636 8,689 244,987 1,312,255 Selected Financial Ratios Return on average assets 4.59 % 2.07 % 1.07 % (33.21 %) 7.98 % (5.06 %) (2.16 )% Return on average equity 22.93 10.35 5.17 (165.21 ) (363.66 ) (23.29 ) (10.90 ) Interest yield 14.90 9.66 10.51 (2.11 ) N/A N/A 11.32 Net interest margin 13.15 7.62 6.66 (7.14 ) N/A N/A 8.65 Reserve coverage 3.45 1.54 0.00 (1) 66.31 N/A N/A 4.68 Delinquency status (2) 0.70 0.05 0.11 (1) 3.57 N/A N/A 0.57 Charge-off ratio 1.95 0.44 0.04 (3) 59.38 N/A N/A 5.00 (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. Year Ended December 31, 2019 Consumer Lending (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC Corporate and Other Investments Consolidated Total interest income $ 99,463 $ 19,943 $ 7,183 $ 3,665 $ — $ 2,308 $ 132,562 Total interest expense 13,304 4,757 2,833 7,962 159 6,030 35,045 Net interest income (loss) 86,159 15,186 4,350 (4,297 ) (159 ) (3,722 ) 97,517 Provision for loan losses 28,638 1,598 364 16,331 — 455 47,386 Net interest income (loss) after loss provision 57,521 13,588 3,986 (20,628 ) (159 ) (4,177 ) 50,131 Sponsorship and race winnings — — — — 18,742 — 18,742 Race team related expenses — — — — (8,996 ) — (8,996 ) Other income (expense), net (23,490 ) (7,520 ) (1,149 ) (10,493 ) (6,942 ) (7,946 ) (57,540 ) Net income (loss) before taxes 34,031 6,068 2,837 (31,121 ) 2,645 (12,123 ) 2,337 Income tax (provision) benefit (8,813 ) (1,572 ) (684 ) 7,596 (329 ) 3,461 (341 ) Net income (loss) after taxes $ 25,218 $ 4,496 $ 2,153 $ (23,525 ) $ 2,316 $ (8,662 ) $ 1,996 Balance Sheet Data Total loans net $ 695,257 $ 244,716 $ 66,405 $ 105,022 $ — $ 3,362 $ 1,114,762 Total assets 707,377 252,704 84,924 217,483 31,538 247,641 1,541,667 Total funds borrowed 563,805 201,605 68,666 176,825 7,794 150,898 1,169,593 Selected Financial Ratios Return on average assets 3.84 % 2.20 % 2.44 % (9.73 %) 7.28 % (3.71 %) (0.12 )% Return on average equity 17.19 10.22 12.21 (48.49 ) (96.37 ) (14.26 ) (0.59 ) Interest yield 15.39 9.50 11.39 2.88 N/A N/A 11.75 Net interest margin 13.33 7.24 6.90 (3.38 ) N/A N/A 8.64 Reserve coverage 2.53 1.05 0.00 (1) 19.48 N/A N/A 3.97 Delinquency status (2) 0.84 0.07 0.15 (1) 2.04 N/A N/A 0.76 Charge-off ratio 2.69 0.37 1.30 (3) 14.68 N/A N/A 3.60 (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. Nine Months Ended December 31, 2018 Consumer Lending (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC Corporate and Other Investments Consolidated Total interest income $ 68,870 $ 12,799 $ 7,076 $ 6,317 $ — $ 1,741 $ 96,803 Total interest expense 6,986 2,290 1,502 10,125 121 3,792 24,816 Net interest income (loss) 61,884 10,509 5,574 (3,808 ) (121 ) (2,051 ) 71,987 Provision for loan losses 15,118 2,453 — 41,437 — — 59,008 Net interest income (loss) after loss provision 46,766 8,056 5,574 (45,245 ) (121 ) (2,051 ) 12,979 Sponsorship and race winnings — — — — 14,368 — 14,368 Race team related expenses — — — — (7,121 ) — (7,121 ) Other income (expense), net (14,242 ) (3,093 ) (1,824 ) 9,742 (11,476 ) (6,489 ) (27,382 ) Net income (loss) before taxes 32,524 4,963 3,750 (35,503 ) (4,350 ) (8,540 ) (7,156 ) Income tax (provision) benefit (8,579 ) (1,319 ) (862 ) 7,938 1,108 1,005 (709 ) Net income (loss) after taxes $ 23,945 $ 3,644 $ 2,888 $ (27,565 ) $ (3,242 ) $ (7,535 ) $ (7,865 ) Balance Sheet Data Total loans net $ 580,182 $ 181,359 $ 59,973 $ 155,863 $ — $ 4,110 $ 981,487 Total assets 590,746 188,892 93,807 273,501 29,925 204,975 1,381,846 Total funds borrowed 434,527 143,815 53,719 294,465 7,649 127,853 1,062,028 Selected Financial Ratios Return on average assets 5.48 % 2.56 % 4.27 % (10.13 )% (11.69 )% (4.07 )% (0.90 )% Return on average equity 22.60 11.30 9.43 NM NM (12.37 ) (4.62 ) Interest yield 15.78 9.06 14.25 3.58 N/A N/A 10.98 Net interest margin 14.18 7.44 11.23 (2.16 ) N/A N/A 8.19 Reserve coverage 1.17 0.98 0.00 15.11 N/A N/A 3.58 Delinquency status (2) 0.73 0.07 0.44 (1) 9.43 N/A N/A 2.14 Charge-off ratio 1.89 0.46 0.00 7.21 N/A N/A 2.73 (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. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Employment Agreements | Employment agreements expire at various dates through 2025, with future minimum payments under these agreements of approximately $12,056,000 as follows. (Dollars in thousands) 2021 $ 3,965 2022 3,081 2023 2,073 2024 2,073 2025 864 Thereafter — Total $ 12,056 |
Selected Financial Ratios and_2
Selected Financial Ratios and Other Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment Company [Abstract] | |
Summary of Selected Financial Ratios and Other Data | The following table provides selected financial ratios and other data for the periods indicated. Three Months Ended March 31, (Dollars in thousands, except per share data) 2018 Net share data Net asset value at the beginning of the year $ 11.80 Net investment income (loss) (0.15 ) Income tax provision (benefit) 0.03 Net realized gains (losses) on investments (1.44 ) Net change in unrealized appreciation on investments 0.94 Net increase (decrease) in net assets resulting from operations (0.62 ) Issuance of common stock (0.03 ) Total increase (decrease) in net asset value (0.65 ) Net asset value at the end of the period/year (1) $ 11.15 Per share market value at beginning of year $ 3.53 Per share market value at end of period/year 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 income (loss) after income taxes to average net assets (4) (4.61 ) (1) Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and $0.00 of undistributed net realized gains per share for the period presented. (2) Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year. (3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. (4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Summary of Carrying Values and Fair Values of Financial Instruments | The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt. December 31, 2020 December 31, 2019 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash, cash equivalents, and federal funds sold (1) $ 112,040 $ 112,040 $ 67,821 $ 67,821 Equity investments 9,746 9,746 10,079 10,079 Investment securities 46,792 46,792 48,998 48,998 Loans receivable 1,172,290 1,172,290 1,114,762 1,114,762 Accrued interest receivable (2) 10,338 10,338 8,662 8,662 Financial liabilities Funds borrowed (3) 1,312,255 1,312,591 1,169,593 1,171,274 Accrued interest payable (2) 4,673 4,673 4,398 4,398 (1) Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17. (2) Categorized as level 3 within the fair value hierarchy. See Note 17. (3) As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented The following table s present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 20 20 and 201 9 . December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,500 $ — $ 1,500 Available for sale investment securities — 46,792 — 46,792 Total (1) $ — $ 48,292 $ — $ 48,292 (1) Total unrealized gains of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2020 related to these assets. December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Available for sale investment securities (1) $ — $ 48,998 $ — $ 48,998 Total $ — $ 48,998 $ — $ 48,998 (1) Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets. |
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2020 and 2019. December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 9,746 $ 9,746 Impaired loans — — 62,174 62,174 Loan collateral in process of foreclosure — — 54,560 54,560 Total $ — $ — $ 126,480 $ 126,480 December 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,079 $ 10,079 Impaired loans — — 34,915 34,915 Loan collateral in process of foreclosure — — 52,711 52,711 Total $ — $ — $ 97,705 $ 97,705 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities | The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2020 and 2019. (Dollars in thousands) Fair Value at 12/31/20 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity investments $ 8,291 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 1,455 Precedent market transaction Offering price $8.73 / share Impaired loans 62,174 Market approach Historical and actual loss experience 1.50% - 6.00% 60% of balance Median transfer price (2) $0.6 - 108.7 Collateral value N/A Loan collateral in process of foreclosure 53,128 Market approach Median transfer price (2) $0.6 - 108.7 1,432 Collateral value (3) $0.7 - 32.3 (1) Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities. (2) Represents amount net of liquidation costs. (3) Relates to the recreation portfolio. (Dollars in thousands) Fair Value at 12/31/19 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity Investments $ 7,435 Investee financial analysis Financial condition and operating performance of the borrower N/A Collateral support N/A 1,189 Investee book value adjusted for market appreciation Financial condition and operating performance of the investee N/A Public company comparables Business enterprise value $4,855 – $6,120 Business enterprise value/revenue multiples 1.59-5.98x Discount for lack of marketability 25% 1,455 Precedent market transaction Offering price $8.73 / share |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | The following shows the condensed financial information of Medallion Financial Corp. (parent company only). Condensed Balance Sheets (Dollars in thousands) December 31, 2020 December 31, 2019 Assets Cash $ 33,743 $ 4,477 Net loans receivable 12,293 26,802 Loan collateral in process of foreclosure 9,960 11,104 Goodwill and intangible assets 175,731 177,176 Investment in bank subsidiaries 149,686 158,201 Investment in non-bank subsidiaries 88,165 92,856 Income tax receivable 1,470 4,708 Other assets 10,912 14,111 Total assets $ 481,960 $ 489,435 Liabilities Other liabilities $ 21,302 $ 18,660 Intercompany payables 51,352 54,904 Short-term borrowings 53,359 8,188 Deferred tax liabilities 24,172 30,728 Long-term borrowings 100,367 113,807 Total liabilities 250,552 226,287 Total stockholders’ equity 231,408 263,148 Total liabilities and equity $ 481,960 $ 489,435 |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Nine Months Ended December 31, 2018 Interest income $ (2,824 ) $ (2,552 ) $ (1,958 ) Interest expense 8,602 8,856 5,480 Net interest loss (11,426 ) (11,408 ) (7,438 ) Provision for loan losses 5,127 6,377 19,190 Net interest loss after provision for loan losses (16,553 ) (17,785 ) (26,628 ) Other income (expense), net (22,062 ) (13,686 ) (16,913 ) Loss before income taxes and undistributed earnings of subsidiaries (38,615 ) (31,471 ) (43,541 ) Income tax benefit 10,454 7,013 5,328 Loss before undistributed earnings of subsidiaries (28,161 ) (24,458 ) (38,213 ) Undistributed earnings (losses) of subsidiaries (6,622 ) 22,696 28,041 Net income (loss) attributable to parent company $ (34,783 ) $ (1,762 ) $ (10,172 ) |
Condensed Statements of Other Comprehensive Income (Loss) | Condensed Statements of Other Comprehensive Income (Loss) Year Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Nine Months Ended December 31, 2018 Net loss $ (34,783 ) $ (1,762 ) $ (10,172 ) Other comprehensive income (loss) 1,013 1,081 (82 ) Total comprehensive income (loss) attributable to Medallion Financial Corp. $ (33,770 ) $ (681 ) $ (10,254 ) |
Condensed Statements of Cash Flow | Condensed Statements of Cash Flow Year Ended (Dollars in thousands) December 31, 2020 December 31, 2019 Nine Months Ended December 31, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (34,783 ) $ (1,762 ) $ (10,172 ) Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed (earnings) losses of subsidiaries 6,622 (22,696 ) (28,041 ) Provision for loan losses 5,127 6,377 19,190 Depreciation and amortization 5,357 5,484 5,451 Change in deferred and other tax assets/liabilities, net (3,317 ) (2,225 ) 4,512 Net change in loan collateral in process of foreclosure 4,940 906 678 Net change in unrealized depreciation on investments 3,493 1,786 — Stock-based compensation expense 2,031 1,221 425 Decrease in other assets 2,299 988 4,073 Increase in deferred financing costs (1,233 ) (1,297 ) — Decrease in intercompany payables (3,552 ) (8,448 ) (3,368 ) Increase in other liabilities 2,336 (1,759 ) 4,237 Net cash used by operating activities (10,680 ) (21,425 ) (3,015 ) CASH FLOWS FROM INVESTING ACTIVITIES Loans originated (14 ) (3,312 ) (309 ) Proceeds from principal receipts, sales, and maturities of loans and investments 1,193 2,313 10,900 Purchases of investments (2,304 ) (1,125 ) — Proceeds from sale and principal payments of loan collateral in process of foreclosure 1,276 2,403 487 Dividends from subsidiaries 7,597 6,248 5,200 Net cash provided by investing activities 7,748 6,527 16,278 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed 33,600 36,000 — Repayments of funds borrowed (1,402 ) (17,735 ) (17,208 ) Net cash provided by (used for) financing activities 32,198 18,265 (17,208 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29,266 3,367 (3,945 ) Cash and cash equivalents, beginning of period 4,477 1,110 5,055 Cash and cash equivalents, end of period $ 33,743 $ 4,477 $ 1,110 |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2020USD ($)Medallion | Dec. 31, 2019USD ($) | |
Subsidiary or Equity Method Investee [Line Items] | ||
Purchase price for City of Chicago taxi medallions out of foreclosure | $ 8,689,000 | |
Number of medallions purchased out of foreclosure | Medallion | 159 | |
Net realizable value of medallions | $ 2,932,000 | $ 3,091,000 |
Medallion Financing Trust I [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Aggregate assets of trust | $ 36,083,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | Mar. 31, 2019 | Apr. 02, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest-bearing funds deposited in other banks | $ 1,500,000 | ||||||||||||
Non-marketable securities | 9,746,000 | $ 10,079,000 | |||||||||||
Net premium on investment securities | [1] | $ 3,287,000 | |||||||||||
Investment securities Amortized to interest income | $ 21,000 | $ 80,000 | 291,000 | 79,000 | |||||||||
Net loan origination costs | 20,684,000 | 17,839,000 | |||||||||||
Net amortization to income | 6,021,000 | 4,952,000 | 3,128,000 | ||||||||||
Premiums in loan portfolio | $ 40,541,000 | 60,413,000 | |||||||||||
Percentage of write down of loan balance | 40.00% | ||||||||||||
Loans pledged as collateral | $ 15,367,000 | 28,833,000 | |||||||||||
Principal portion of loans serviced, fair value | 107,131,000 | 113,581,000 | |||||||||||
Loans write down to collateral value | $ 75,844,000 | 49,961,000 | |||||||||||
Intangible assets useful life | 20 years | ||||||||||||
Goodwill | $ 150,803,000 | 150,803,000 | |||||||||||
Intangible assets, net | 51,090,000 | 52,536,000 | |||||||||||
Amortization of intangible assets | 1,445,000 | 1,446,000 | 1,083,000 | [1] | |||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | |||||||||||
Depreciation and amortization | 412,000 | 418,000 | 422,000 | ||||||||||
Amortization expense | 2,558,000 | 2,348,000 | $ 1,864,000 | ||||||||||
Deferred costs | $ 5,805,000 | $ 5,105,000 | |||||||||||
Potential dilutive common shares excluded from EPS computation | 934,003 | 462,180 | 100,000 | ||||||||||
Stock based compensation award | 444,557 | 449,450 | 39,000 | ||||||||||
Stock based compensation award, Amount | $ 2,030,000 | $ 1,221,000 | $ 576,000 | ||||||||||
Stock based compensation award per diluted common share | $ 0.08 | $ 0.05 | $ 0.02 | ||||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 2,405,000 | ||||||||||||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 48 months | ||||||||||||
Tier 1 leverage capital ratio | 16.93% | ||||||||||||
Capital conversation buffer | 2.50% | 2.50% | |||||||||||
Restricted Shares [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stock based compensation award | 229,408 | 216,148 | 101,010 | ||||||||||
Restricted Stock Units [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stock based compensation award | 47,156 | 26,040 | 0 | ||||||||||
Medallion [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Premiums in loan portfolio | $ 4,282,000 | $ 17,181,000 | |||||||||||
Loans write down to collateral value | 49,361,000 | 22,205,000 | |||||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | |||||||||||
New York City [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Loans write down to collateral value | 79,500,000 | ||||||||||||
New York City [Member] | Medallion [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Loans write down to collateral value | 46,087,000 | ||||||||||||
91+ [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Premiums in loan portfolio | 6,878,000 | 8,663,000 | |||||||||||
91+ [Member] | Medallion [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Premiums in loan portfolio | 1,290,000 | 2,572,000 | |||||||||||
91+ [Member] | Loans [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Premiums in loan portfolio | $ 6,878,000 | $ 8,663,000 | |||||||||||
Total loans more than 90 days past due ,percentage | 0.57% | 0.76% | |||||||||||
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 | $ 3,993,000 | ||||||||||||
Amortization of intangible assets | $ 0 | $ 0 | |||||||||||
RPAC [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Premiums in loan portfolio | $ 12,387,000 | ||||||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 2,717,000 | 5,758,000 | |||||||||||
Loan portfolio premium amortized to interest income | 3,041,000 | 3,289,000 | $ 3,339,000 | ||||||||||
Bank Holding Company Accounting [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net premium on investment securities | $ 278,000 | $ 248,000 | |||||||||||
Private Placement [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest reserve | $ 2,970,000 | $ 2,970,000 | |||||||||||
Minimum [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest bearing loan term | 4 years | ||||||||||||
Estimated useful life of fixed assets | 3 years | ||||||||||||
Tier 1 leverage capital to total assets ratio | 15.00% | ||||||||||||
Maximum [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest bearing loan term | 7 years | ||||||||||||
Estimated useful life of fixed assets | 10 years | ||||||||||||
[1] | Balance includes the nine months ended December 31, 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments In Loans [Line Items] | ||
Intangibles assets | $ 51,090 | $ 52,536 |
Intellectual Property [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | 18,974 | 20,075 |
Contractor Relationships [Member] | ||
Investments In Loans [Line Items] | ||
Intangibles assets | 5,951 | 6,296 |
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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accounting Policies [Abstract] | ||||
Net loss/net increase in net assets resulting from operations available to common stockholders | $ (34,783) | $ (1,762) | $ (25,046) | |
Weighted average common shares outstanding applicable to basic EPS | 24,445,452 | 24,342,979 | 24,214,978 | [1] |
Adjusted weighted average common shares outstanding applicable to diluted EPS | 24,445,452 | 24,342,979 | 24,214,978 | [1] |
Basic net loss per share | $ (1.42) | $ (0.07) | $ (1.03) | [1] |
Diluted net loss per share | $ (1.42) | $ (0.07) | $ (1.03) | [1] |
[1] | Balance includes the nine months ended December 31, 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) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
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 | |
Regulatory, Minimum, Common equity tier 1 capital ratio | 7.00% | |
Regulatory, Minimum, Tier 1 capital ratio | 8.5 | |
Regulatory, Minimum, Total capital ratio | 10.5 | |
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 | |
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio | 6.50% | |
Regulatory, Well-Capitalized, Tier 1 capital ratio | 8 | |
Regulatory, Well-Capitalized, Total capital ratio | 10 | |
Common equity tier 1 capital | $ 148,507 | $ 158,187 |
Tier 1 capital | 217,295 | 226,975 |
Total capital | 233,460 | 241,842 |
Average assets | 1,283,664 | 1,172,866 |
Risk-weighted assets | $ 1,243,783 | $ 1,144,337 |
Leverage ratio | 16.9 | 19.4 |
Common equity Tier 1 capital ratio | 11.9 | 13.8 |
Tier 1 capital ratio | 17.5 | 19.8 |
Total capital ratio | 18.8 | 21.1 |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 45,155 | $ 48,614 |
Gross Unrealized Gains | 1,684 | 597 |
Gross Unrealized Losses | (47) | (213) |
Fair Value | 46,792 | 48,998 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,929 | 36,335 |
Gross Unrealized Gains | 1,495 | 411 |
Gross Unrealized Losses | (45) | (112) |
Fair Value | 36,379 | 36,634 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,226 | 12,279 |
Gross Unrealized Gains | 189 | 186 |
Gross Unrealized Losses | (2) | (101) |
Fair Value | $ 10,413 | $ 12,364 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, due in one year or less | $ 25 | |
Amortized Cost, due after one year through five years | 12,485 | |
Amortized Cost, due after five years through ten years | 14,499 | |
Amortized Cost, due after ten years | 18,146 | |
Amortized Cost | 45,155 | $ 48,614 |
Market Value, due in one year or less | 25 | |
Market Value, due after one year through five years | 12,956 | |
Market Value, due after five years through ten years | 15,214 | |
Market Value, due after ten years | 18,597 | |
Market Value, total | $ 46,792 | $ 48,998 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | $ (45) | $ (91) |
Fair Value, Less than Twelve Months | 4,028 | 10,390 |
Gross Unrealized Losses, Twelve Months and Over | (2) | (122) |
Fair Value, Twelve Months and Over | 196 | 7,678 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (45) | (74) |
Fair Value, Less than Twelve Months | 4,028 | 8,291 |
Gross Unrealized Losses, Twelve Months and Over | (38) | |
Fair Value, Twelve Months and Over | 4,939 | |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (17) | |
Fair Value, Less than Twelve Months | 2,099 | |
Gross Unrealized Losses, Twelve Months and Over | (2) | (84) |
Fair Value, Twelve Months and Over | $ 196 | $ 2,739 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | ||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 1,205,776,000 | [1] | $ 1,136,694,000 | [2] | |||
Allowance for loan losses | (57,548,000) | [3],[4] | (46,093,000) | [3],[4] | $ (36,395,000) | $ (46,093,000) | |
Net loans receivable | 1,172,290,000 | 1,114,762,000 | 981,487,000 | ||||
Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | 1,229,838,000 | 1,160,855,000 | 1,017,882,000 | ||||
Allowance for loan losses | (57,548,000) | (46,093,000) | |||||
Net loans receivable | $ 1,172,290,000 | $ 1,114,762,000 | |||||
Percentage of total gross loans | 100.00% | 100.00% | |||||
Recreation [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 767,374,000 | [1] | $ 689,810,000 | [2] | |||
Allowance for loan losses | (27,348,000) | (18,075,000) | |||||
Recreation [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 792,686,000 | $ 713,332,000 | 587,038,000 | ||||
Percentage of total gross loans | 65.00% | 62.00% | |||||
Home Improvement [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 336,885,000 | [1] | $ 250,830,000 | [2] | |||
Allowance for loan losses | (5,157,000) | (2,608,000) | |||||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 334,033,000 | $ 247,324,000 | 183,155,000 | ||||
Percentage of total gross loans | 27.00% | 21.00% | |||||
Commercial [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 65,327,000 | $ 69,767,000 | 64,083,000 | ||||
Percentage of total gross loans | 5.00% | 6.00% | |||||
Medallion [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 36,153,000 | [1] | $ 126,287,000 | [2] | |||
Allowance for loan losses | (25,043,000) | (25,410,000) | |||||
Medallion [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 37,768,000 | $ 130,432,000 | $ 183,606,000 | ||||
Percentage of total gross loans | 3.00% | 11.00% | |||||
Strategic Partnership [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | [1] | $ 24,000 | |||||
Allowance for loan losses | 0 | ||||||
Strategic Partnership [Member] | Bank Holding Company Accounting [Member] | |||||||
Student Loan Portfolio By Program [Line Items] | |||||||
Total gross loans | $ 24,000 | ||||||
[1] | Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. | ||||||
[2] | Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs. | ||||||
[3] | As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. | ||||||
[4] | As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | [1] | $ 1,136,694,000 | |||||
Charge-offs, net | [2] | (58,362,000) | $ (37,688,000) | ||||
Transfer to loan collateral in process of foreclosure, net | (47,274,000) | (31,348,000) | |||||
Amortization of origination costs | (6,022,000) | (4,952,000) | $ (3,132,000) | [3] | |||
Paid-in-kind interest | 1,188,000 | 834,000 | 1,869,000 | [3] | |||
Loans transferred to other foreclosed property | 1,800,000 | ||||||
Gross loans, ending balance | 1,205,776,000 | [4] | 1,136,694,000 | [1] | |||
Recreation [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | [1] | 689,810,000 | |||||
Transfer to loan collateral in process of foreclosure, net | (14,871,000) | (14,512,000) | |||||
Gross loans, ending balance | 767,374,000 | [4] | 689,810,000 | [1] | |||
Home Improvement [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | [1] | 250,830,000 | |||||
Gross loans, ending balance | 336,885,000 | [4] | 250,830,000 | [1] | |||
Medallion [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | [1] | 126,287,000 | |||||
Transfer to loan collateral in process of foreclosure, net | (32,403,000) | (16,836,000) | |||||
Gross loans, ending balance | 36,153,000 | [4] | 126,287,000 | [1] | |||
Strategic Partnership [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Charge-offs, net | 0 | ||||||
Gross loans, ending balance | [4] | 24,000 | |||||
Bank Holding Company Accounting [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | 1,160,855,000 | 1,017,882,000 | |||||
Loan originations | 497,221,000 | 462,093,000 | |||||
Principal payments, sales, and maturities | (321,831,000) | (251,653,000) | |||||
Charge-offs, net | (58,362,000) | (37,688,000) | |||||
Transfer to loan collateral in process of foreclosure, net | (47,254,000) | (31,348,000) | |||||
Amortization of origination costs | (6,022,000) | (4,952,000) | |||||
Amortization of loan premium | (3,042,000) | (3,289,000) | |||||
FASB origination costs, net | 8,885,000 | 8,976,000 | |||||
Paid-in-kind interest | 1,188,000 | 834,000 | |||||
Loans transferred to other foreclosed property | (1,800,000) | ||||||
Gross loans, ending balance | 1,229,838,000 | 1,160,855,000 | 1,017,882,000 | ||||
Bank Holding Company Accounting [Member] | Recreation [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | 713,332,000 | 587,038,000 | |||||
Loan originations | 294,885,000 | 301,403,000 | |||||
Principal payments, sales, and maturities | (187,989,000) | (146,873,000) | |||||
Charge-offs, net | (14,457,000) | (17,419,000) | |||||
Transfer to loan collateral in process of foreclosure, net | (14,871,000) | (14,512,000) | |||||
Amortization of origination costs | (7,809,000) | (6,428,000) | |||||
Amortization of loan premium | (191,000) | (247,000) | |||||
FASB origination costs, net | 9,786,000 | 10,370,000 | |||||
Gross loans, ending balance | 792,686,000 | 713,332,000 | 587,038,000 | ||||
Bank Holding Company Accounting [Member] | Home Improvement [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | 247,324,000 | 183,155,000 | |||||
Loan originations | 193,098,000 | 142,112,000 | |||||
Principal payments, sales, and maturities | (105,813,000) | (76,157,000) | |||||
Charge-offs, net | (1,229,000) | (786,000) | |||||
Amortization of origination costs | 1,910,000 | 1,561,000 | |||||
Amortization of loan premium | (320,000) | (416,000) | |||||
FASB origination costs, net | (937,000) | (2,145,000) | |||||
Gross loans, ending balance | 334,033,000 | 247,324,000 | 183,155,000 | ||||
Bank Holding Company Accounting [Member] | Commercial [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | 69,767,000 | 64,083,000 | |||||
Loan originations | 7,575,000 | 18,578,000 | |||||
Principal payments, sales, and maturities | (13,183,000) | (13,553,000) | |||||
Charge-offs, net | (28,000) | (819,000) | |||||
Amortization of origination costs | 8,000 | 34,000 | |||||
FASB origination costs, net | 610,000 | ||||||
Paid-in-kind interest | 1,188,000 | 834,000 | |||||
Gross loans, ending balance | 65,327,000 | 69,767,000 | 64,083,000 | ||||
Bank Holding Company Accounting [Member] | Medallion [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Gross loans, beginning balance | 130,432,000 | 183,606,000 | |||||
Principal payments, sales, and maturities | (13,207,000) | (15,070,000) | |||||
Charge-offs, net | (42,648,000) | (18,664,000) | |||||
Transfer to loan collateral in process of foreclosure, net | (32,383,000) | (16,836,000) | |||||
Amortization of origination costs | (131,000) | (119,000) | |||||
Amortization of loan premium | (2,531,000) | (2,626,000) | |||||
FASB origination costs, net | 36,000 | 141,000 | |||||
Loans transferred to other foreclosed property | (1,800,000) | ||||||
Gross loans, ending balance | 37,768,000 | $ 130,432,000 | $ 183,606,000 | ||||
Bank Holding Company Accounting [Member] | Strategic Partnership [Member] | |||||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||||
Loan originations | 1,663,000 | ||||||
Principal payments, sales, and maturities | (1,639,000) | ||||||
Gross loans, ending balance | $ 24,000 | ||||||
[1] | Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs. | ||||||
[2] | As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company. | ||||||
[3] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | ||||||
[4] | Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | $ 46,093 | $ 46,093 | [1],[2] | $ 36,395 | |||||
Total charge-offs | (75,844) | (49,961) | |||||||
Total recoveries | 17,482 | 12,273 | |||||||
Net charge-offs | [3] | (58,362) | (37,688) | ||||||
Provision for loan losses | 59,008 | 69,817 | 47,386 | $ 59,008 | [4] | ||||
Allowance for loan losses - ending balance | $ 46,093 | 46,093 | [1],[2] | 36,395 | $ 36,395 | $ 57,548 | [1],[2] | ||
Recreation [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | 18,075 | ||||||||
Total charge-offs | (23,543) | (24,433) | |||||||
Total recoveries | 9,086 | 7,014 | |||||||
Allowance for loan losses - ending balance | 18,075 | 27,348 | |||||||
Home Improvement [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | 2,608 | ||||||||
Total charge-offs | (2,909) | (2,504) | |||||||
Total recoveries | 1,680 | 1,718 | |||||||
Allowance for loan losses - ending balance | 2,608 | 5,157 | |||||||
Commercial [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Total charge-offs | (31) | (819) | |||||||
Total recoveries | 3 | ||||||||
Medallion [Member] | |||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||
Allowance for loan losses - beginning balance | 25,410 | ||||||||
Total charge-offs | (49,361) | (22,205) | |||||||
Total recoveries | 6,713 | $ 3,541 | |||||||
Allowance for loan losses - ending balance | $ 25,410 | $ 25,043 | |||||||
[1] | As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. | ||||||||
[2] | As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans | ||||||||
[3] | As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company. | ||||||||
[4] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Cumulative charges of loans and loans process of foreclosure | $ 54,560,000 | [1] | $ 52,711,000 | [1] | $ 49,495,000 | ||
Allowance for loan losses - ending balance | 57,548,000 | [2],[3] | 46,093,000 | [2],[3] | $ 36,395,000 | $ 46,093,000 | |
Net charge-offs | [4] | 58,362,000 | $ 37,688,000 | ||||
Strategic Partnership [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Allowance for loan losses - ending balance | 0 | ||||||
Net charge-offs | 0 | ||||||
Medallion Bank [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
Cumulative charges of loans and loans process of foreclosure | $ 279,188,000 | ||||||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019. | ||||||
[2] | As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. | ||||||
[3] | As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans | ||||||
[4] | As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Allowance for loan losses - ending balance | $ 57,548 | [1],[2] | $ 46,093 | [1],[2] | $ 36,395 | $ 46,093 |
Percentage of Allowance | 100.00% | 100.00% | ||||
Allowance as a Percent of Loan Category | 4.68% | 3.97% | ||||
Allowance as a Percent of Nonaccrual | 93.17% | 174.04% | ||||
Recreation [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Allowance for loan losses - ending balance | $ 27,348 | $ 18,075 | ||||
Percentage of Allowance | 48.00% | 39.00% | ||||
Allowance as a Percent of Loan Category | 3.45% | 2.53% | ||||
Allowance as a Percent of Nonaccrual | 378.20% | 228.25% | ||||
Home Improvement [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Allowance for loan losses - ending balance | $ 5,157 | $ 2,608 | ||||
Percentage of Allowance | 9.00% | 6.00% | ||||
Allowance as a Percent of Loan Category | 1.54% | 1.05% | ||||
Medallion [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Allowance for loan losses - ending balance | $ 25,043 | $ 25,410 | ||||
Percentage of Allowance | 43.00% | 55.00% | ||||
Allowance as a Percent of Loan Category | 66.31% | 19.48% | ||||
Allowance as a Percent of Nonaccrual | 68.01% | 389.84% | ||||
[1] | As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. | |||||
[2] | As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Total nonaccrual loans | $ 61,767 | $ 26,484 | $ 34,877 |
Interest foregone for the year | 3,311 | 2,152 | 1,153 |
Amount of foregone interest applied to principal for the year | 602 | 254 | 535 |
Interest foregone life-to-date | 5,252 | 2,744 | 1,952 |
Amount of foregone interest applied to principal life-to-date | $ 792 | $ 471 | $ 1,214 |
Percentage of nonaccrual loans to gross loan portfolio | 5.00% | 2.00% | 3.00% |
Percentage of allowance for loan losses to nonaccrual loans | 93.00% | 174.00% | 104.00% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 1,229,838 | $ 1,160,855 | ||
Percentage of Nonperforming to Total | 5.06% | 5.38% | ||
Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 1,167,664 | $ 1,098,362 | ||
Non - Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | [1] | 62,174 | 62,493 | |
Recreation [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 792,686 | $ 713,332 | ||
Percentage of Nonperforming to Total | 0.96% | 1.16% | ||
Recreation [Member] | Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 785,047 | $ 705,070 | ||
Recreation [Member] | Non - Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | 7,639 | 8,262 | ||
Home Improvement [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 334,033 | $ 247,324 | ||
Percentage of Nonperforming to Total | 0.05% | 0.07% | ||
Home Improvement [Member] | Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 333,862 | $ 247,139 | ||
Home Improvement [Member] | Non - Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | 171 | 185 | ||
Commercial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 65,327 | $ 69,767 | ||
Percentage of Nonperforming to Total | 25.40% | 17.00% | ||
Commercial [Member] | Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 48,731 | $ 57,905 | ||
Commercial [Member] | Non - Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | 16,596 | 11,862 | ||
Medallion [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 37,768 | $ 130,432 | ||
Percentage of Nonperforming to Total | 100.00% | 32.34% | ||
Medallion [Member] | Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 88,248 | |||
Medallion [Member] | Non - Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 37,768 | [2] | $ 42,184 | |
Strategic Partnership [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 24 | |||
Percentage of Nonperforming to Total | 0.00% | |||
Strategic Partnership [Member] | Performing [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Status of loans | $ 24 | |||
[1] | Includes $408 and $36,009 of TDRs as of December 31, 2020 and 2019, which are accruing and paying currently, but which are considered nonperforming loans under GAAP. | |||
[2] | Includes medallion loan premiums of $1,615 as of December 31, 2020. |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan premiums | $ 2,717 | $ 5,758 |
Non - Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
TDR loans | 408 | $ 36,009 |
Non - Performing [Member] | Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan premiums | $ 1,615 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | $ 62,174 | $ 62,493 |
Unpaid principal balance, With related allowance | 62,778 | 62,964 |
Related Allowance, With related allowance | 25,310 | 15,156 |
Average Investment Recorded, With related allowance | 65,933 | 61,109 |
Interest Income (Expense) Recognized, With related allowance | 1,150 | 1,209 |
Recreation [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 7,639 | 8,262 |
Unpaid principal balance, With related allowance | 7,639 | 8,262 |
Related Allowance, With related allowance | 264 | 329 |
Average Investment Recorded, With related allowance | 7,949 | 8,317 |
Interest Income (Expense) Recognized, With related allowance | 560 | 471 |
Home Improvement [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 171 | 185 |
Unpaid principal balance, With related allowance | 171 | 185 |
Related Allowance, With related allowance | 3 | 3 |
Average Investment Recorded, With related allowance | 172 | 185 |
Interest Income (Expense) Recognized, With related allowance | 2 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 16,596 | 11,862 |
Unpaid principal balance, With related allowance | 16,600 | 11,867 |
Average Investment Recorded, With related allowance | 16,884 | 7,886 |
Interest Income (Expense) Recognized, With related allowance | 123 | 392 |
Medallion [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded Investment, With related allowance | 37,768 | 42,184 |
Unpaid principal balance, With related allowance | 38,368 | 42,650 |
Related Allowance, With related allowance | 25,043 | 14,824 |
Average Investment Recorded, With related allowance | 40,928 | 44,721 |
Interest Income (Expense) Recognized, With related allowance | $ 465 | $ 346 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | $ 40,541 | $ 60,413 | |||
Current | 1,165,235 | 1,076,281 | |||
Total | 1,205,776 | [1] | 1,136,694 | [2] | |
Accruing | 0 | 0 | |||
30-59 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 24,890 | 40,779 | |||
60-89 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 8,773 | 10,971 | |||
91+ [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 6,878 | 8,663 | |||
Recreation [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 34,983 | 41,583 | |||
Current | 732,391 | 648,227 | |||
Total | 767,374 | [1] | 689,810 | [2] | |
Accruing | 0 | 0 | |||
Recreation [Member] | 30-59 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 22,058 | 27,357 | |||
Recreation [Member] | 60-89 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 7,582 | 8,426 | |||
Recreation [Member] | 91+ [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 5,343 | 5,800 | |||
Home Improvement [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 1,201 | 1,542 | |||
Current | 335,684 | 249,288 | |||
Total | 336,885 | [1] | 250,830 | [2] | |
Accruing | 0 | 0 | |||
Home Improvement [Member] | 30-59 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 813 | 931 | |||
Home Improvement [Member] | 60-89 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 218 | 427 | |||
Home Improvement [Member] | 91+ [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 170 | 184 | |||
Commercial Loans [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 75 | 107 | |||
Current | 65,265 | 69,660 | |||
Total | 65,340 | [1] | 69,767 | [2] | |
Accruing | 0 | 0 | |||
Commercial Loans [Member] | 91+ [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 75 | 107 | |||
Medallion [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 4,282 | 17,181 | |||
Current | 31,871 | 109,106 | |||
Total | 36,153 | [1] | 126,287 | [2] | |
Accruing | 0 | 0 | |||
Medallion [Member] | 30-59 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 2,019 | 12,491 | |||
Medallion [Member] | 60-89 [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 973 | 2,118 | |||
Medallion [Member] | 91+ [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Past Due | 1,290 | $ 2,572 | |||
Strategic Partnership [Member] | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Current | 24 | ||||
Total | [1] | 24 | |||
Accruing | $ 0 | ||||
[1] | Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. | ||||
[2] | Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs. |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Loan premiums | $ 2,717 | $ 5,758 |
Capitalized loan origination costs | $ 21,345 | $ 18,403 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2020USD ($)TDR | Dec. 31, 2019USD ($)TDR | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Weighted average loan-to-value ratio | 327.00% | 190.00% | ||||
Allowance for loan loss | $ 57,548,000 | [1],[2] | $ 46,093,000 | [1],[2] | $ 36,395,000 | $ 46,093,000 |
Medallion [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Number of loans modified as TDRs defaulted | TDR | 59 | 71 | ||||
Allowance for loan loss | $ 25,043,000 | $ 25,410,000 | ||||
Recreation [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Number of loans modified as TDRs defaulted | TDR | 77 | 294 | ||||
Allowance for loan loss | $ 27,348,000 | $ 18,075,000 | ||||
Commercial Loans [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Number of loans modified as TDRs defaulted | TDR | 1 | |||||
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Number of loans modified as TDRs defaulted | TDR | 5 | 4 | ||||
TDR investment value | $ 738,000 | $ 1,023,000 | ||||
Allowance for loan loss | $ 331,000 | $ 428,000 | ||||
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Number of loans modified as TDRs defaulted | TDR | 43 | 213 | ||||
TDR investment value | $ 433,000 | $ 1,905,000 | ||||
Allowance for loan loss | $ 15,000 | $ 76,000 | ||||
Troubled Debt Restructuring Defaulted [Member] | Commercial Loans [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Number of loans modified as TDRs defaulted | TDR | 0 | |||||
[1] | As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value. | |||||
[2] | As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Summary of TDRs (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)TDR | Dec. 31, 2019USD ($)TDR | |
Recreation [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 77 | 294 |
Pre- Modification Investment | $ 1,053 | $ 4,433 |
Post- Modification Investment | $ 749 | $ 2,831 |
Commercial Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 1 | |
Pre- Modification Investment | $ 1,821 | |
Post- Modification Investment | $ 1,821 | |
Medallion [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Number of Loans | TDR | 59 | 71 |
Pre- Modification Investment | $ 33,505 | $ 31,376 |
Post- Modification Investment | $ 33,505 | $ 31,385 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Summary of Activities of the Loans Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans collateral in process of foreclosure - beginning balance | $ 52,711 | [1] | $ 49,495 | |
Transfer from loans, net | 47,274 | 31,348 | ||
Sales | (7,812) | (9,106) | ||
Cash payments received | (5,687) | (7,697) | ||
Collateral valuation adjustments | (31,926) | (11,329) | ||
Loans collateral in process of foreclosure - ending balance | [1] | 54,560 | 52,711 | |
Recreation [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans collateral in process of foreclosure - beginning balance | 1,476 | 1,503 | ||
Transfer from loans, net | 14,871 | 14,512 | ||
Sales | (7,512) | (7,591) | ||
Collateral valuation adjustments | (7,403) | (6,948) | ||
Loans collateral in process of foreclosure - ending balance | 1,432 | 1,476 | ||
Medallion [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans collateral in process of foreclosure - beginning balance | 51,235 | 47,992 | ||
Transfer from loans, net | 32,403 | 16,836 | ||
Sales | (300) | (1,515) | ||
Cash payments received | (5,687) | (7,697) | ||
Collateral valuation adjustments | (24,523) | (4,381) | ||
Loans collateral in process of foreclosure - ending balance | $ 53,128 | $ 51,235 | ||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019. |
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) |
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) |
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 |
Ending balance | (495) |
Investments in Subsidiaries [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | 158,920 |
Appreciation on investments | 38,795 |
Ending balance | 197,715 |
Equity Investments [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Beginning balance | 3,121 |
Appreciation on investments | (998) |
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) |
Ending balance | $ (3,405) |
Schedule of Pre-Tax Changes in
Schedule of Pre-Tax Changes in Unrealized and Realized Gains and Losses in Investment Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 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 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 losses | (34,747) | ||
Direct charge-offs | 2 | ||
Total | (34,745) | ||
Medallion Financing Trust I [Member] | Investment Company Accounting [Member] | |||
Net change in unrealized appreciation (depreciation) on investments | |||
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries | $ 29,115 | ||
[1] | Balance includes the nine months ended December 31, 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 year ended December 31, 2018. |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
2021 | $ 481,169 | ||
2022 | 249,327 | ||
2023 | 195,667 | ||
2024 | 161,040 | ||
2025 | 136,702 | ||
Thereafter | 88,100 | ||
Long term debt | [1] | $ 1,312,005 | $ 1,169,593 |
Interest Rate | [2] | 2.37% | |
Deposits [Member] | |||
Debt Instrument [Line Items] | |||
2021 | [3] | $ 393,835 | |
2022 | [3] | 241,605 | |
2023 | [3] | 190,387 | |
2024 | [3] | 120,040 | |
2025 | [3] | 121,955 | |
Long term debt | [1],[3] | $ 1,067,822 | 954,245 |
Interest Rate | [2],[3] | 1.71% | |
Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2021 | $ 22,508 | ||
2023 | 5,000 | ||
2024 | 5,000 | ||
2025 | 14,000 | ||
Thereafter | 21,500 | ||
Long term debt | [1] | $ 68,008 | 71,746 |
Interest Rate | [2] | 3.36% | |
Retail and Privately Placed Notes [Member] | |||
Debt Instrument [Line Items] | |||
2021 | [4] | $ 33,625 | |
2024 | [4] | 36,000 | |
Thereafter | [4] | 33,600 | |
Long term debt | [1],[4] | $ 103,225 | 69,625 |
Interest Rate | [2],[4] | 8.25% | |
Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
Thereafter | [4] | $ 33,000 | |
Long term debt | [1],[4] | $ 33,000 | 33,000 |
Interest Rate | [2],[4] | 2.35% | |
Other Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2021 | $ 500 | ||
2022 | 7,442 | ||
2025 | 747 | ||
Long term debt | [1] | $ 8,689 | 7,794 |
Interest Rate | [2] | 1.91% | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
2021 | $ 30,701 | ||
2022 | 280 | ||
2023 | 280 | ||
Long term debt | [1] | $ 31,261 | $ 33,183 |
Interest Rate | [2] | 3.67% | |
[1] | Excludes deferred financing costs of $5,805 and $5,105 as of December 31, 2020 and 2019. | ||
[2] | Weighted average contractual rate as of December 31, 2020. | ||
[3] | Balance excludes $250 of strategic partner reserve deposits as of December 31, 2020. | ||
[4] | Relates to loans held at Medallion Financial Corp. (parent company only). |
Funds Borrowed - Schedule of _2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Deferred costs | $ 5,805,000 | $ 5,105,000 |
Reserve Deposits | $ 250,000 |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) | Jul. 06, 2019USD ($) | Dec. 31, 2007USD ($) | Jun. 30, 2007USD ($)shares | Dec. 31, 2020USD ($)shares | Jul. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)Depositshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Mar. 15, 2021USD ($) | Feb. 28, 2021USD ($) | Aug. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||
Number of individual with time deposits greater than $100,000 | Deposit | 0 | ||||||||||||||||
Listing services deposits from other financial institutions. | $ 995,000 | $ 995,000 | |||||||||||||||
Debt instrument outstanding amount | $ 8,500,000 | ||||||||||||||||
Debt instrument remaining amount | 16,500,000 | ||||||||||||||||
Debt instrument face amount | $ 25,000,000 | ||||||||||||||||
Debentures term | 10 years | ||||||||||||||||
Leverage fee amount | $ 250,000 | ||||||||||||||||
Remaining portion of leverage fee amount | 500,000 | ||||||||||||||||
Debentures borrowed | [1] | 153,718,000 | 153,718,000 | $ 174,614,000 | |||||||||||||
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion | $ 8,250,000 | ||||||||||||||||
Debt instrument commitments drawn | $ 0 | $ 0 | |||||||||||||||
Repayments of credit facilities | $ 10,819,000 | ||||||||||||||||
Waiver of loan from lender | $ 1,839,000 | ||||||||||||||||
Waiver Expiry Date | Jun. 15, 2021 | ||||||||||||||||
Pay off one of the notes payable discount rate | 50.00% | ||||||||||||||||
Gain on debt extinguishment | $ 4,145,000 | $ 4,145,000 | |||||||||||||||
Gain loss on sales of loans net | [2] | $ 4,946,000 | |||||||||||||||
Issue of common stock | shares | 27,828,871 | 27,828,871 | 27,597,802 | ||||||||||||||
Short term promissory note | $ 87,334,000 | $ 87,334,000 | $ 38,223,000 | ||||||||||||||
Maturity term | 10 years | ||||||||||||||||
CARES Act [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debentures term | 5 years | ||||||||||||||||
Loan amount | 747,000 | $ 747,000 | |||||||||||||||
Annual interest rate | 1.00% | ||||||||||||||||
Maturity term | 5 years | ||||||||||||||||
Richard Petty [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Mar. 31, 2022 | ||||||||||||||||
Loan amount | 7,442,000 | $ 7,442,000 | |||||||||||||||
Annual interest rate | 2.00% | ||||||||||||||||
Travis Burt [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Dec. 31, 2021 | ||||||||||||||||
Short term promissory note | $ 500,000 | $ 500,000 | |||||||||||||||
Retail and Privately Placed Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate Percentage | 7.50% | 8.25% | 9.00% | 8.25% | 7.50% | ||||||||||||
Aggregate principal amount | $ 33,600,000 | $ 30,000,000 | $ 33,625,000 | $ 30,000,000 | $ 33,600,000 | $ 6,000,000 | |||||||||||
Maturity date | 2024 | 2021 | |||||||||||||||
Maturity date | Dec. 31, 2027 | ||||||||||||||||
Gain loss on sales of loans net | $ 4,145,000 | ||||||||||||||||
Net proceeds from offering | $ 31,786,000 | ||||||||||||||||
Subsequent Event [Member] | Retail and Privately Placed Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate Percentage | 7.25% | ||||||||||||||||
Aggregate principal amount | $ 25,000,000 | ||||||||||||||||
Subsequent Event [Member] | Retail and Privately Placed Notes [Member] | 7.25% Unsecured Senior Notes Due February 2026 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 3,250,000 | ||||||||||||||||
Subsequent Event [Member] | Retail and Privately Placed Notes [Member] | 7.50% Unsecured Senior Notes Due December 2027 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 8,500,000 | ||||||||||||||||
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 | ||||||||||||||||
Debenture Mature2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debentures borrowed | $ 8,500,000 | ||||||||||||||||
Preferred Securities [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Sep. 30, 2037 | ||||||||||||||||
Sale of preferred securities | $ 35,000,000 | ||||||||||||||||
Issue of common stock | shares | 1,083 | ||||||||||||||||
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 | 0.24% | ||||||||||||||||
Preferred Securities [Member] | LIBOR Rate [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate | 2.13% | ||||||||||||||||
Preferred Securities [Member] | Unsecured Debt [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount of unsecured junior subordinated notes | $ 36,083,000 | ||||||||||||||||
Preferred Securities [Member] | Third Party Investors [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Preferred securities repurchased from a third party investor | $ 2,000,000 | ||||||||||||||||
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% | |||||||||||||||
Extended maturity date | Apr. 15, 2021 | ||||||||||||||||
Debt instrument commitments amount fully utilized | $ 175,485,000 | $ 175,485,000 | |||||||||||||||
Debt instrument commitments available | 25,000,000 | 25,000,000 | |||||||||||||||
Debt instrument outstanding amount | 68,008,000 | 68,008,000 | |||||||||||||||
Debt instrument remaining amount | 14,008,000 | 14,008,000 | |||||||||||||||
FSVC's [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount of loan | $ 33,485,000 | ||||||||||||||||
Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debenture last issuance date | Sep. 24, 2024 | ||||||||||||||||
Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Time deposits | $ 250,000 | 250,000 | |||||||||||||||
Minimum [Member] | Paid on or Before February 1, 2018 [Member] | Small Business Administration Debentures and Borrowings [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument minimum annual payment | 5,000,000 | ||||||||||||||||
Minimum [Member] | Paid on or Before February 1, 2019 [Member] | Small Business Administration Debentures and Borrowings [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument minimum annual payment | $ 7,600,000 | ||||||||||||||||
Brokerage [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Average brokerage fee percentage in relation to the maturity of deposits | 0.15% | ||||||||||||||||
[1] | Includes $3,131 and $2,511 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details. | ||||||||||||||||
[2] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Funds Borrowed - Summary of Mat
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Three months or less | $ 125,766 |
Over three months through six months | 117,602 |
Over six months through one year | 150,467 |
Over one year | 673,987 |
Total deposits | $ 1,067,822 |
Funds Borrowed - Summary of Key
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | ||
Notes Payable [Line Items] | ||||
Note Amounts | $ 25,000,000 | |||
Average Interest Rate | [1] | 2.37% | ||
Notes Payable to Banks [Member] | ||||
Notes Payable [Line Items] | ||||
Note Amounts | $ 39,583,000 | |||
Balance outstanding | $ 31,261,000 | |||
Average Interest Rate | [1] | 3.67% | ||
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 | Feb. 28, 2021 | |||
Maturity Dates | Sep. 30, 2021 | |||
Type | [2] | Term loans and demand notes secured by pledged loans | ||
Note Amounts | [2] | 19,734,000 | ||
Balance outstanding | $ 19,734,000 | |||
Payment | [3] | Interest only | ||
Average Interest Rate | 3.75% | |||
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 | [4] | Term loans secured by owned Chicago taxi medallions | ||
Note Amounts | 18,449,000 | |||
Balance outstanding | $ 10,687,000 | |||
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 | |||
Type | Term loan unsecured | |||
Note Amounts | $ 1,400,000 | |||
Balance outstanding | $ 840,000 | |||
Payment | $70 principal & interest paid quarterly | |||
Average Interest Rate | 4.00% | |||
[1] | Weighted average contractual rate as of December 31, 2020. | |||
[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 $85. | |||
[4] | Guaranteed by the Company. |
Funds Borrowed - Summary of K_2
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
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 | $ 85,000 |
Medallion Financial Corp [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Description of variable rate basis | 30 day LIBOR was 0.14%, 360 day LIBOR was 0.34%, |
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% |
30 Day LIBOR [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 0.14% |
360 Day LIBOR [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 0.34% |
Prime Rate [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Debt Instrument interest rate, stated percentage | 3.25% |
Prime Rate Plus [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 0.50% |
Fixed Interest Rate [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member] | |
Notes Payable [Line Items] | |
Basis spread on variable rate | 3.75% |
LIBOR Rate [Member] | Medallion Chicago [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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 2,384 | $ 2,184 |
Operating cash flows from operating leases | 2,821 | 2,419 |
Right-of-use asset obtained in exchange for lease liability | $ 251 | $ 2,413 |
Leases - Schedule of Breakout o
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 11,737 | $ 13,482 |
Other current liabilities | $ 2,004 | $ 2,085 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Operating lease liabilities | $ 11,018 | $ 12,738 |
Total operating lease liabilities | $ 13,022 | $ 14,823 |
Weighted average remaining lease term | 6 years 4 months 24 days | 7 years 3 months 18 days |
Weighted average discount rate | 5.54% | 5.54% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 2,474 | |
2022 | 2,406 | |
2023 | 2,356 | |
2024 | 2,373 | |
2025 | 2,390 | |
Thereafter | 3,521 | |
Total lease payments | 15,520 | |
Less imputed interest | 2,498 | |
Total operating lease liabilities | $ 13,022 | $ 14,823 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Occupancy expense | $ 2,833,000 | $ 2,436,000 | $ 2,287,000 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles | $ (44,799) | $ (45,595) | |
Provision for loan losses | 19,556 | 19,198 | |
Net operating loss carryforwards | [1] | 30,493 | 22,607 |
Accrued expenses, compensation, and other assets | 1,174 | 1,701 | |
Unrealized gains on other investments | (6,769) | (6,790) | |
Total deferred tax liability | (345) | (8,879) | |
Valuation allowance | (462) | (462) | |
Deferred tax liability, net | (807) | (9,341) | |
Taxes receivable | 1,757 | 1,516 | |
Net deferred and other tax liabilities | $ 950 | $ (7,825) | |
[1] | As of December 31, 2020, the Company and its subsidiaries had an estimated $124,150 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $30,031 as of December 31, 2020. |
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 | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Tax Rate Reconciliation [Line Items] | |
Net operating loss carryforwards | $ 124,150 |
Net operating loss carryforwards expiration period | expires at various dates between December 31, 2026 and December 31, 2035 |
Net operating loss carryforwards assets | $ 30,031 |
December 31, 2026 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 | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | ||||
Federal | $ (2,797) | |||
State | $ (260) | $ 519 | (1,078) | |
Deferred | ||||
Federal | 7,702 | (489) | 5,270 | |
State | 2,632 | (371) | (1,464) | |
Net (provision) benefit for income taxes | $ (709) | $ 10,074 | $ (341) | $ (69) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Statutory Federal income tax (provision) benefit at 21% | $ 7,766 | $ (642) | $ 4,935 | |
State and local income taxes, net of federal income tax benefit | 1,518 | (120) | 440 | |
Revaluation of net operating losses | 1,228 | 380 | ||
Change in effective state income tax rate | (145) | (891) | (2,564) | |
Change in state income tax accruals | (260) | 640 | ||
Income attributable to non-controlling interest | 460 | 309 | ||
Non deductible expenses | (453) | |||
Utilization of carry forwards | (910) | |||
Appreciation of Medallion Bank | (1,974) | |||
Other | (40) | (17) | 4 | |
Net (provision) benefit for income taxes | $ (709) | $ 10,074 | $ (341) | $ (69) |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax (provision) benefit percentage | 21.00% | 21.00% | 21.00% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) | Jun. 15, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | 951,669 | [1] | 550,040 | 144,666 | 320,626 | |||||
Stock option exercisable | 178,307 | [1] | 62,778 | 81,889 | ||||||
Unvested shares of common stock outstanding | 773,362 | 487,262 | ||||||||
Weighted average fair value of options granted | $ 6.24 | |||||||||
Intrinsic value of options vested | $ 45,000 | $ 43,000 | $ 32,000 | |||||||
Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding | 62,780 | |||||||||
Number of shares, granted | 47,156 | 26,040 | 0 | |||||||
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding | 47,156 | |||||||||
Number of shares, granted | 47,156 | |||||||||
Vesting period | 1 year | |||||||||
Exercise price for grant per share | $ 3.16 | |||||||||
Number of shares vested with deferred settlement | 16,524 | |||||||||
Number of shares vested and settled | 10,416 | |||||||||
Restricted Shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares outstanding | 416,140 | [2] | 284,879 | 190,915 | 408,582 | |||||
Weighted average fair value of options granted | $ 3.09 | $ 3.10 | $ 1.06 | |||||||
Number of shares, granted | 229,408 | 216,148 | 101,010 | |||||||
Exercise price for grant per share | $ 6.21 | $ 6.59 | $ 4.41 | |||||||
Number of shares vested and settled | [3] | 89,392 | 118,238 | 308,940 | ||||||
2018 Equity Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 241,919 | 2,210,968 | ||||||||
Shares were rolled into the 2018 Plan | 862,069 | |||||||||
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 | 416,140 | |||||||||
2006 Stock Option Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Issuance of maximum number of shares approved | 800,000 | |||||||||
Number of additional shares available for issuance | 0 | |||||||||
2006 Stock Option Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation, options term | 10 years | |||||||||
2015 Director Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 258,334 | 300,000 | ||||||||
2015 Director Plan [Member] | Non Employee Director One [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 12,000 | |||||||||
2015 Director Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
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 | |||||||||
Number of additional shares available for issuance | 0 | |||||||||
Amended Director Plan [Member] | Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant | 9,000 | |||||||||
Amended Director Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation, options term | 10 years | |||||||||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020. | |||||||||
[2] | The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020. | |||||||||
[3] | The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018. |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract] | ||||
Risk free interest rate | 1.23% | 2.29% | 2.82% | |
Expected dividend yield | 0.66% | 4.86% | ||
Expected life of option in years | [1] | 6 years 3 months | 6 years 3 months | 6 years |
Expected volatility | [2] | 51.03% | 49.03% | 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 | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options beginning balance | 550,040 | 144,666 | 320,626 | ||
Granted | 444,557 | 449,450 | 39,000 | ||
Cancelled | (42,928) | (44,076) | (214,960) | ||
Exercised | [1] | 0 | 0 | 0 | |
Number of options ending balance | 951,669 | [2] | 550,040 | 144,666 | |
Options exercisable | 178,307 | [2] | 62,778 | 81,889 | |
Exercise price per share, lower range limit beginning balance | $ 2.14 | $ 2.14 | $ 7.10 | ||
Exercise price per share, upper range limit beginning balance | 13.84 | 13.84 | 13.84 | ||
Exercise price per share, exercised | [1] | 0 | 0 | 0 | |
Exercise price per share, lower range limit ending balance | 2.14 | [2] | 2.14 | 2.14 | |
Exercise price per share, upper range limit ending balance | 13.53 | [2] | 13.84 | 13.84 | |
Exercise price per share, option exercisable lower range limit | 2.14 | [2] | 2.14 | 7.10 | |
Exercise price per share, option exercisable upper range limit | 13.53 | [2] | 13.84 | 13.84 | |
Weighted average exercise price, beginning balance | 6.58 | 7.23 | 8.78 | ||
Weighted average exercise price, granted | 6.24 | 6.61 | 5.46 | ||
Weighted average exercise price, cancelled | 6.91 | 9 | 9.22 | ||
Weighted average exercise price, exercised | [1] | 0 | 0 | 0 | |
Weighted average exercise price, ending balance | 6.41 | [2] | 6.58 | 7.23 | |
Weighted average exercise price, options exercisable | 6.33 | [2] | 7.60 | 9.25 | |
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price per share, granted | 5.21 | 5.27 | 2.14 | ||
Exercise price per share, cancelled | 6.55 | 9.22 | 10.76 | ||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price per share, granted | 7.25 | 5.58 | 2.61 | ||
Exercise price per share, cancelled | $ 13.84 | $ 9.24 | $ 11.21 | ||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2020, 2019, and 2018. | ||||
[2] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020. |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Aggregate intrinsic value for option exercised | $ 0 | $ 0 | $ 0 |
Aggregate intrinsic value of option outstanding | 45,000 | ||
Aggregate intrinsic value of option exercisable | $ 43,000 | ||
Remaining contractual life of option outstanding | 8 years 7 months 6 days | ||
Remaining contractual life of option exercisable | 7 years 2 months 23 days |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant price per share, cancelled, lower limit | $ 2.14 | ||||
Grant price per share, cancelled, upper limit | $ 6.55 | ||||
Restricted Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares, beginning balance | 284,879 | 190,915 | 408,582 | ||
Number of shares, granted | 229,408 | 216,148 | 101,010 | ||
Number of shares, cancelled | (8,755) | (3,946) | (9,737) | ||
Number of shares, vested | [1] | (89,392) | (118,238) | (308,940) | |
Number of shares, ending balance | 416,140 | [2] | 284,879 | 190,915 | |
Grant price per share, lower range limit beginning balance | $ 3.95 | $ 2.14 | $ 2.06 | ||
Grant price per share, upper range limit beginning balance | 7.25 | 5.27 | 10.38 | ||
Grant price per share, granted, lower limit | 4.89 | 4.80 | 3.93 | ||
Grant price per share, granted, upper limit | 6.68 | 7.25 | 5.27 | ||
Grant price per share, cancelled, lower limit | 3.95 | 3.93 | 3.93 | ||
Grant price per share, cancelled, upper limit | 7.25 | 6.55 | 9.08 | ||
Grant price per share, vested, lower limit | [1] | 3.95 | 2.06 | 2.06 | |
Grant price per share, vested, upper limit | [1] | 6.55 | 4.80 | 10.38 | |
Grant price per share, lower range limit ending balance | 4.39 | [2] | 3.95 | 2.14 | |
Grant price per share, upper range limit ending balance | 7.25 | [2] | 7.25 | 5.27 | |
Weighted average grant price beginning balance | 6.01 | 4.06 | 3.45 | ||
Weighted average grant price, granted | 6.21 | 6.59 | 4.41 | ||
Weighted average grant price, cancelled | 6.93 | 4.97 | 4.66 | ||
Weighted average grant price, vested | [1] | 5.37 | 3.89 | 3.35 | |
Weighted average grant price, ending balance | $ 6.24 | [2] | $ 6.01 | $ 4.06 | |
[1] | The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018. | ||||
[2] | The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020. |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair value of restricted stock vested | $ 579,000 | $ 736,000 | $ 1,270,000 |
Aggregate fair value of restricted stock outstanding | $ 2,039,000 | ||
Remaining vesting period of restricted stock | 2 years 10 days |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward | |||
Number of options beginning balance | 487,262 | ||
Number of options, granted | 444,557 | 449,450 | 39,000 |
Number of options, cancelled | (20,630) | ||
Number of options, vested | (137,827) | ||
Number of options ending balance | 773,362 | 487,262 | |
Exercise price per share beginning balance, Lower limit | $ 2.14 | ||
Exercise price per share beginning balance, Upper limit | 7.25 | ||
Exercise price per share, Granted, Lower limit | 4.89 | ||
Exercise price per share, Granted, Upper limit | 6.68 | ||
Exercise price per share, Cancelled, Lower limit | 6.55 | ||
Exercise price per share, Cancelled, Upper limit | 7.25 | ||
Exercise price per share, Vested, Lower limit | 2.14 | ||
Exercise price per share, Vested, Upper limit | 6.55 | ||
Exercise price per share ending balance, Lower limit | 4.89 | $ 2.14 | |
Exercise price per share ending balance, Upper limit | 7.25 | 7.25 | |
Weighted average exercise price | 6.45 | ||
Weighted average exercise price, granted | 6.24 | ||
Weighted average exercise price, cancelled | 6.76 | ||
Weighted average exercise price, vested | 6.05 | ||
Weighted average exercise price | $ 6.42 | $ 6.45 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2020Segment | Dec. 31, 2019 | |
Segment Reporting Disclosure [Line Items] | ||
Number of business segments | 6 | |
Number of operating segments | 4 | |
Number of non-operating segments | 2 | |
Loan outstanding percent | 9.00% | |
Capital ratios for operating segments | 11.9 | 13.8 |
Operating Segments [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Capital ratios for operating segments | 20 | |
Swimming Pools [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 27.00% | |
Roofs [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 24.00% | |
Windows [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 13.00% | |
Solar Panels [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 8.00% | |
Other Product Lines [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 8.00% | |
Texas [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 15.00% | |
Florida [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 9.00% | |
California [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 | 60.00% | |
Geographic Concentration Risk [Member] | Boats [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 19.00% | |
Geographic Concentration Risk [Member] | Trailers [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 12.00% | |
Geographic Concentration Risk [Member] | Midwest [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 53.00% | |
Geographic Concentration Risk [Member] | New York City [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 89.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 96,803 | $ 144,962 | $ 132,562 | |||||
Total interest expense | 24,816 | 34,151 | 35,045 | |||||
Net interest income/net investment income | 71,987 | 110,811 | 97,517 | $ 72,469 | [1] | |||
Provision for loan losses | 59,008 | 69,817 | 47,386 | 59,008 | [1] | |||
Net interest income after provision for loan losses | 12,979 | 40,994 | 50,131 | 13,461 | [1] | |||
Sponsorship and race winnings | 14,368 | 20,042 | 18,742 | 14,368 | [1] | |||
Race team related expenses | (7,121) | (8,366) | (8,996) | (7,121) | [1] | |||
Other income (expense), net | (27,382) | (89,651) | (57,540) | |||||
Income (loss) before income taxes/net investment loss before taxes | (7,156) | (36,981) | 2,337 | (10,722) | [1],[2] | |||
Income tax (provision) benefit | (709) | 10,074 | (341) | (69) | ||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (7,865) | (26,907) | 1,996 | (22,739) | [1] | |||
Balance Sheet Data | ||||||||
Total loans net | 981,487 | 1,172,290 | 1,114,762 | 981,487 | ||||
Total assets | 1,381,846 | 1,642,411 | 1,541,667 | 1,381,846 | ||||
Total funds borrowed | $ 1,062,028 | $ 1,312,255 | $ 1,169,593 | 1,062,028 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (0.90%) | (2.16%) | (0.12%) | |||||
Return on average equity | (4.62%) | (10.90%) | (0.59%) | |||||
Interest yield | 10.98% | 11.32% | 11.75% | |||||
Net interest margin | 8.19% | 8.65% | 8.64% | |||||
Reserve coverage | 3.58% | 4.68% | 3.97% | |||||
Delinquency status | [3] | 2.14% | 0.57% | 0.76% | ||||
Charge-off ratio | 2.73% | 5.00% | 3.60% | |||||
RPAC [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest expense | $ 121 | $ 163 | $ 159 | |||||
Net interest income/net investment income | (121) | (163) | (159) | |||||
Net interest income after provision for loan losses | (121) | (163) | (159) | |||||
Sponsorship and race winnings | 14,368 | 20,042 | 18,742 | |||||
Race team related expenses | (7,121) | (8,366) | (8,996) | |||||
Other income (expense), net | (11,476) | (7,973) | (6,942) | |||||
Income (loss) before income taxes/net investment loss before taxes | (4,350) | 3,540 | 2,645 | |||||
Income tax (provision) benefit | 1,108 | (889) | (329) | |||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (3,242) | 2,651 | 2,316 | |||||
Balance Sheet Data | ||||||||
Total assets | 29,925 | 33,711 | 31,538 | 29,925 | ||||
Total funds borrowed | $ 7,649 | $ 8,689 | $ 7,794 | 7,649 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (11.69%) | 7.98% | 7.28% | |||||
Return on average equity | (363.66%) | (96.37%) | ||||||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 68,870 | $ 110,706 | $ 99,463 | |||||
Total interest expense | 6,986 | 13,013 | 13,304 | |||||
Net interest income/net investment income | 61,884 | 97,693 | 86,159 | |||||
Provision for loan losses | 15,118 | 23,736 | 28,638 | |||||
Net interest income after provision for loan losses | 46,766 | 73,957 | 57,521 | |||||
Other income (expense), net | (14,242) | (27,341) | (23,490) | |||||
Income (loss) before income taxes/net investment loss before taxes | 32,524 | 46,616 | 34,031 | |||||
Income tax (provision) benefit | (8,579) | (12,004) | (8,813) | |||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 23,945 | 34,612 | 25,218 | |||||
Balance Sheet Data | ||||||||
Total loans net | 580,182 | 765,338 | 695,257 | 580,182 | ||||
Total assets | 590,746 | 777,605 | 707,377 | 590,746 | ||||
Total funds borrowed | $ 434,527 | $ 621,735 | $ 563,805 | 434,527 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 5.48% | 4.59% | 3.84% | |||||
Return on average equity | 22.60% | 22.93% | 17.19% | |||||
Interest yield | 15.78% | 14.90% | 15.39% | |||||
Net interest margin | 14.18% | 13.15% | 13.33% | |||||
Reserve coverage | 1.17% | 3.45% | 2.53% | |||||
Delinquency status | [3] | 0.73% | 0.70% | 0.84% | ||||
Charge-off ratio | 1.89% | 1.95% | 2.69% | |||||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 12,799 | $ 27,273 | $ 19,943 | |||||
Total interest expense | 2,290 | 5,699 | 4,757 | |||||
Net interest income/net investment income | 10,509 | 21,574 | 15,186 | |||||
Provision for loan losses | 2,453 | 3,778 | 1,598 | |||||
Net interest income after provision for loan losses | 8,056 | 17,796 | 13,588 | |||||
Other income (expense), net | (3,093) | (9,611) | (7,520) | |||||
Income (loss) before income taxes/net investment loss before taxes | 4,963 | 8,185 | 6,068 | |||||
Income tax (provision) benefit | (1,319) | (2,108) | (1,572) | |||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 3,644 | 6,077 | 4,496 | |||||
Balance Sheet Data | ||||||||
Total loans net | 181,359 | 328,876 | 244,716 | 181,359 | ||||
Total assets | 188,892 | 340,494 | 252,704 | 188,892 | ||||
Total funds borrowed | $ 143,815 | $ 272,284 | $ 201,605 | 143,815 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 2.56% | 2.07% | 2.20% | |||||
Return on average equity | 11.30% | 10.35% | 10.22% | |||||
Interest yield | 9.06% | 9.66% | 9.50% | |||||
Net interest margin | 7.44% | 7.62% | 7.24% | |||||
Reserve coverage | 0.98% | 1.54% | 1.05% | |||||
Delinquency status | [3] | 0.07% | 0.05% | 0.07% | ||||
Charge-off ratio | 0.46% | 0.44% | 0.37% | |||||
Operating Segments [Member] | Commercial Lending [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 7,076 | $ 6,926 | $ 7,183 | |||||
Total interest expense | 1,502 | 2,538 | 2,833 | |||||
Net interest income/net investment income | 5,574 | 4,388 | 4,350 | |||||
Provision for loan losses | 364 | |||||||
Net interest income after provision for loan losses | 5,574 | 4,388 | 3,986 | |||||
Other income (expense), net | (1,824) | (3,196) | (1,149) | |||||
Income (loss) before income taxes/net investment loss before taxes | 3,750 | 1,192 | 2,837 | |||||
Income tax (provision) benefit | (862) | (299) | (684) | |||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | 2,888 | 893 | 2,153 | |||||
Balance Sheet Data | ||||||||
Total loans net | 59,973 | 62,037 | 66,405 | 59,973 | ||||
Total assets | 93,807 | 80,622 | 84,924 | 93,807 | ||||
Total funds borrowed | $ 53,719 | $ 65,924 | $ 68,666 | 53,719 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 4.27% | 1.07% | 2.44% | |||||
Return on average equity | 9.43% | 5.17% | 12.21% | |||||
Interest yield | 14.25% | 10.51% | 11.39% | |||||
Net interest margin | 11.23% | 6.66% | 6.90% | |||||
Reserve coverage | 0.00% | 0.00% | [4] | 0.00% | [4] | |||
Delinquency status | [3],[4] | 0.44% | 0.11% | 0.15% | ||||
Charge-off ratio | 0.00% | 0.04% | [5] | 1.30% | [5] | |||
Operating Segments [Member] | Medallion Lending [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 6,317 | $ (1,518) | $ 3,665 | |||||
Total interest expense | 10,125 | 3,610 | 7,962 | |||||
Net interest income/net investment income | (3,808) | (5,128) | (4,297) | |||||
Provision for loan losses | 41,437 | 42,276 | 16,331 | |||||
Net interest income after provision for loan losses | (45,245) | (47,404) | (20,628) | |||||
Other income (expense), net | 9,742 | (30,366) | (10,493) | |||||
Income (loss) before income taxes/net investment loss before taxes | (35,503) | (77,770) | (31,121) | |||||
Income tax (provision) benefit | 7,938 | 19,520 | 7,596 | |||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (27,565) | (58,250) | (23,525) | |||||
Balance Sheet Data | ||||||||
Total loans net | 155,863 | 12,725 | 105,022 | 155,863 | ||||
Total assets | 273,501 | 124,554 | 217,483 | 273,501 | ||||
Total funds borrowed | $ 294,465 | $ 98,636 | $ 176,825 | 294,465 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (10.13%) | (33.21%) | (9.73%) | |||||
Return on average equity | (165.21%) | (48.49%) | ||||||
Interest yield | 3.58% | (2.11%) | 2.88% | |||||
Net interest margin | (2.16%) | (7.14%) | (3.38%) | |||||
Reserve coverage | 15.11% | 66.31% | 19.48% | |||||
Delinquency status | [3] | 9.43% | 3.57% | 2.04% | ||||
Charge-off ratio | 7.21% | 59.38% | 14.68% | |||||
Intersegment Eliminations [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 1,741 | $ 1,575 | $ 2,308 | |||||
Total interest expense | 3,792 | 9,128 | 6,030 | |||||
Net interest income/net investment income | (2,051) | (7,553) | (3,722) | |||||
Provision for loan losses | 27 | 455 | ||||||
Net interest income after provision for loan losses | (2,051) | (7,580) | (4,177) | |||||
Other income (expense), net | (6,489) | (11,164) | (7,946) | |||||
Income (loss) before income taxes/net investment loss before taxes | (8,540) | (18,744) | (12,123) | |||||
Income tax (provision) benefit | 1,005 | 5,854 | 3,461 | |||||
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations | (7,535) | (12,890) | (8,662) | |||||
Balance Sheet Data | ||||||||
Total loans net | 4,110 | 3,314 | 3,362 | 4,110 | ||||
Total assets | 204,975 | 285,425 | 247,641 | 204,975 | ||||
Total funds borrowed | $ 127,853 | $ 244,987 | $ 150,898 | $ 127,853 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (4.07%) | (5.06%) | (3.71%) | |||||
Return on average equity | (12.37%) | (23.29%) | (14.26%) | |||||
[1] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | |||||||
[2] | Includes $256 of net revenues received from Medallion Bank for the year ended December 31, 2018, primarily for expense reimbursements. See Notes 5 and 12 for additional information. | |||||||
[3] | Loans 90 days or more past due. | |||||||
[4] | Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. | |||||||
[5] | Ratio is based on total commercial lending balances, and relates to the total loan business. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies [Abstract] | |
Employment agreements expiration description | Employment agreements expire at various dates through 2025 |
Future minimum payments | $ 12,056,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail) | Dec. 31, 2020USD ($) |
Commitments And Contingencies [Abstract] | |
2021 | $ 3,965,000 |
2022 | 3,081,000 |
2023 | 2,073,000 |
2024 | 2,073,000 |
2025 | 864,000 |
Total | $ 12,056,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Mar. 01, 2021 | Mar. 31, 2022 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Related Party Transaction [Line Items] | |||||||||
Repayments of note payable | $ 526,064,000 | $ 414,277,000 | $ 389,951,000 | ||||||
Medallion Servicing Corporation [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest income | $ 1,290,000 | ||||||||
Other income | $ 256,000 | ||||||||
LAX Group,LLC [Member] | Subsequent Event [Member] | Senior Vice President [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Salary from related party | $ 195,000 | ||||||||
Officer [Member] | LAX Group,LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Salary from related party | $ 133,000 | 178,000 | |||||||
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 | ||||||||
Repayments of note payable | $ 0 | ||||||||
Sponsorship fees | $ 7,000,000 | ||||||||
Proceeds from sponsorship | $ 5,600,000 | ||||||||
Petty Trust [Member] | RPAC [Member] | Scenario Forecast [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Note payable to the Petty Trust | $ 7,442,000 | ||||||||
Interest percentage of Notes payable | 2.00% | ||||||||
[1] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Stockholder's_Shareholder's Equ
Stockholder's/Shareholder's Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2015 | Jul. 31, 2014 | Nov. 30, 2004 | Nov. 30, 2003 | |
Stockholders Equity [Line Items] | |||||||
Stock repurchased during period | 2,951,243 | 2,951,243 | |||||
Payment for repurchase of common stock | $ 24,919,000 | $ 24,919,000 | |||||
Stock Repurchase Program [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Repurchases of common stock | $ 26,000,000 | $ 20,000,000 | $ 10,000,000 | $ 10,000,000 | |||
Stock repurchased during period | 2,931,125 | ||||||
Payment for repurchase of common stock | $ 24,587,000 | ||||||
Stock purchased during period | 0 | 0 | 0 | ||||
Shares remain authorized for repurchase amount | $ 22,874,509 |
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 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net share data | ||||||
Net asset value at the beginning of the year | $ 11.80 | |||||
Net investment income (loss) | (0.15) | |||||
Income tax provision (benefit) | 0.03 | |||||
Net realized gains (losses) on investments | (1.44) | |||||
Net change in unrealized appreciation on investments | 0.94 | |||||
Net increase (decrease) in net assets resulting from operations | (0.62) | |||||
Issuance of common stock | (0.03) | |||||
Total increase (decrease) in net asset value | (0.65) | |||||
Net asset value at the end of the period/year | [1] | 11.15 | ||||
Per share market value at beginning of year | 3.53 | |||||
Per share market value at end of period/year | $ 4.65 | |||||
Total return | [2] | (129.00%) | ||||
Ratios/supplemental data | ||||||
Total shareholders’ equity (net assets) | $ 272,437 | $ 304,561 | $ 334,468 | $ 290,204 | $ 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 income (loss) after income taxes to average net assets | [3] | (4.61%) | ||||
[1] | Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and $0.00 of undistributed net realized gains per share for the period presented. | |||||
[2] | Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year. | |||||
[3] | MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% 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 | 6.88% | |
Net investment income ratio | 7.51% | |
[1] | MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter. | |
[2] | Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets. |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Minimum percentage of total annual compensation allowed to be deferred | 1.00% | ||
Employer matching contribution, description | Once eligible full-time employees have completed a minimum of one (1) year of service, and part time employees have worked at least 500 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third of the first 6% of the employee’s annual contributions, subject to legal limits. | ||
Employee contributions to 401(k) Plan matched by company in an amount per employee of first 6% of employee's annual contributions | 33.33% | ||
Defined benefit plan amount expense | $ 203,000 | $ 193,000 | $ 182,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets | |||
Equity investments | $ 9,746 | $ 10,079 | |
Investment securities | 46,792 | 48,998 | |
Loans receivable | 1,229,838 | 1,160,855 | |
Carrying Amount [Member] | |||
Financial assets | |||
Cash, cash equivalents, and federal funds sold | [1] | 112,040 | 67,821 |
Equity investments | 9,746 | 10,079 | |
Investment securities | 46,792 | 48,998 | |
Loans receivable | 1,172,290 | 1,114,762 | |
Accrued interest receivable | [2] | 10,338 | 8,662 |
Financial liabilities | |||
Funds borrowed | [3] | 1,312,255 | 1,169,593 |
Accrued interest payable | [2] | 4,673 | 4,398 |
Fair Value Recurring [Member] | |||
Financial assets | |||
Cash, cash equivalents, and federal funds sold | [1] | 112,040 | 67,821 |
Equity investments | 9,746 | 10,079 | |
Investment securities | 46,792 | 48,998 | |
Loans receivable | 1,172,290 | 1,114,762 | |
Accrued interest receivable | [2] | 10,338 | 8,662 |
Financial liabilities | |||
Funds borrowed | [3] | 1,312,591 | 1,171,274 |
Accrued interest payable | [2] | $ 4,673 | $ 4,398 |
[1] | Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17. | ||
[2] | Categorized as level 3 within the fair value hierarchy. See Note 17. | ||
[3] | As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | $ 1,500,000 | |
Publicly traded retail notes traded at a premium to par | 336,000 | $ 1,681,000 |
Fair Value Recurring [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | 1,500,000 | |
Fair Value Recurring [Member] | Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | $ 1,500,000 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets | ||||
Interest-bearing deposits | $ 1,500,000 | |||
Fair Value Recurring [Member] | ||||
Assets | ||||
Interest-bearing deposits | 1,500,000 | |||
Available for sale investment securities | 46,792,000 | [1] | $ 48,998,000 | [2] |
Total | 48,292,000 | 48,998,000 | ||
Fair Value Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Interest-bearing deposits | 1,500,000 | |||
Available for sale investment securities | 46,792,000 | [1] | 48,998,000 | [2] |
Total | $ 48,292,000 | $ 48,998,000 | ||
[1] | Total unrealized gains of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2020 related to these assets. | |||
[2] | Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||
Net change in unrealized gains (losses) on investments, net of tax | $ (82) | $ 1,013 | $ 1,081 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Assets | |||||
Impaired loans | $ 107,131,000 | $ 113,581,000 | |||
Loan collateral in process of foreclosure | 54,560,000 | [1] | 52,711,000 | [1] | $ 49,495,000 |
Fair Value, Nonrecurring | |||||
Assets | |||||
Equity investments | 9,746,000 | 10,079,000 | |||
Impaired loans | 62,174,000 | 34,915,000 | |||
Loan collateral in process of foreclosure | 54,560,000 | 52,711,000 | |||
Total | 126,480,000 | 97,705,000 | |||
Fair Value, Nonrecurring | Level 3 [Member] | |||||
Assets | |||||
Equity investments | 9,746,000 | 10,079,000 | |||
Impaired loans | 62,174,000 | 34,915,000 | |||
Loan collateral in process of foreclosure | 54,560,000 | 52,711,000 | |||
Total | $ 126,480,000 | $ 97,705,000 | |||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019. |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Principal portion of loans serviced, fair value | $ 107,131,000 | $ 113,581,000 | |||
Loan collateral in process of foreclosure | $ 54,560,000 | [1] | $ 52,711,000 | [1] | $ 49,495,000 |
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity Value | $ / shares | $ 8.73 | $ 8.73 | |||
Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity Value | $ 4,855,000 | ||||
Equity Value | 1.59 | ||||
Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity Value | $ 6,120,000 | ||||
Equity Investments [Member] | Precedent Arms Length Offer [Member] | Discount Rate [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity Value | 0.25 | ||||
Impaired Loans [Member] | Market Approach [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impaired loans, balance percentage | 0.60 | ||||
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impaired loans value | 0.0150 | ||||
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Impaired loans value | 0.0600 | ||||
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Principal portion of loans serviced, fair value | $ 600 | ||||
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Principal portion of loans serviced, fair value | 108,700 | ||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loan collateral in process of foreclosure value | 700 | ||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loan collateral in process of foreclosure value | 32,300 | ||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loan collateral in process of foreclosure value | 600 | ||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loan collateral in process of foreclosure value | 108,700 | ||||
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity investments | 8,291,000 | $ 7,435,000 | |||
Level 3 [Member] | Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity investments | 1,455,000 | 1,455,000 | |||
Level 3 [Member] | Equity Investments [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Financial Condition and Operating Performance of the Investee [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Equity investments | $ 1,189,000 | ||||
Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Principal portion of loans serviced, fair value | 62,174,000 | ||||
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loan collateral in process of foreclosure | 1,432,000 | ||||
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loan collateral in process of foreclosure | $ 53,128,000 | ||||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019. |
Medallion Bank Preferred Stoc_2
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($) | Dec. 17, 2019 | Jul. 21, 2011 | Dec. 31, 2020 |
Capital Purchase Program [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Preferred stock, liquidation preference per share | $ 1,000 | ||
U.S. Treasury Securities [Member] | Capital Purchase Program [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
US Treasury shares purchased | 26,303 | ||
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Initial public offering shares | 1,840,000 | ||
Preferred stock, aggregate liquidation amount | $ 46,000,000 | ||
Preferred stock, net of liquidation amount | $ 42,485,000 | ||
Percentage of dividend payment rate | 8.00% | ||
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | SOFR [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Percentage of liquidation rate basis | 6.46% | ||
Dividend description of variable rate basis | three-month Secured Overnight Financing Rate, or SOFR | ||
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member] | |||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Percentage of dividend payment rate | 9.00% | ||
Aggregate purchase price | $ 26,303,000 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Assets | ||||||
Net loans receivable | $ 1,172,290 | $ 1,114,762 | $ 981,487 | |||
Loan collateral in process of foreclosure | 54,560 | [1] | 52,711 | [1] | 49,495 | |
Income tax receivable | 1,757 | 1,516 | ||||
Other assets | 20,591 | 19,404 | ||||
Total assets | 1,642,411 | 1,541,667 | $ 1,381,846 | |||
Liabilities | ||||||
Short-term borrowings | 87,334 | 38,223 | ||||
Deferred tax liabilities | 807 | 9,341 | ||||
Long-term borrowings | [2] | 153,718 | 174,614 | |||
Total liabilities | 1,337,850 | 1,207,199 | ||||
Total stockholders’ equity | 231,408 | 263,148 | ||||
Total liabilities and equity | 1,642,411 | 1,541,667 | ||||
Parent Company [Member] | ||||||
Assets | ||||||
Cash | 33,743 | 4,477 | ||||
Net loans receivable | 12,293 | 26,802 | ||||
Loan collateral in process of foreclosure | 9,960 | 11,104 | ||||
Goodwill and intangible assets | 175,731 | 177,176 | ||||
Investment in bank subsidiaries | 149,686 | 158,201 | ||||
Investment in non-bank subsidiaries | 88,165 | 92,856 | ||||
Income tax receivable | 1,470 | 4,708 | ||||
Other assets | 10,912 | 14,111 | ||||
Total assets | 481,960 | 489,435 | ||||
Liabilities | ||||||
Other liabilities | 21,302 | 18,660 | ||||
Intercompany payables | 51,352 | 54,904 | ||||
Short-term borrowings | 53,359 | 8,188 | ||||
Deferred tax liabilities | 24,172 | 30,728 | ||||
Long-term borrowings | 100,367 | 113,807 | ||||
Total liabilities | 250,552 | 226,287 | ||||
Total stockholders’ equity | 231,408 | 263,148 | ||||
Total liabilities and equity | $ 481,960 | $ 489,435 | ||||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019. | |||||
[2] | Includes $3,131 and $2,511 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details. |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Statements - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Condensed Income Statements, Captions [Line Items] | ||||||
Interest expense | [1] | $ 3,551 | ||||
Net interest income/net investment income | $ 71,987 | $ 110,811 | $ 97,517 | 72,469 | [1] | |
Provision for loan losses | 59,008 | 69,817 | 47,386 | 59,008 | [1] | |
Net interest income after provision for loan losses | 12,979 | 40,994 | 50,131 | 13,461 | [1] | |
Income (loss) before income taxes/net investment loss before taxes | (7,156) | (36,981) | 2,337 | (10,722) | [1],[2] | |
Income tax benefit | [1] | 8,426 | ||||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | [1] | $ (25,046) | ||||
Parent Company [Member] | ||||||
Condensed Income Statements, Captions [Line Items] | ||||||
Interest income | (1,958) | (2,824) | (2,552) | |||
Interest expense | 5,480 | 8,602 | 8,856 | |||
Net interest income/net investment income | (7,438) | (11,426) | (11,408) | |||
Provision for loan losses | 19,190 | 5,127 | 6,377 | |||
Net interest income after provision for loan losses | (26,628) | (16,553) | (17,785) | |||
Other income (expense), net | (16,913) | (22,062) | (13,686) | |||
Income (loss) before income taxes/net investment loss before taxes | (43,541) | (38,615) | (31,471) | |||
Income tax benefit | 5,328 | 10,454 | 7,013 | |||
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations | (38,213) | (28,161) | (24,458) | |||
Undistributed earnings (losses) of subsidiaries | 28,041 | (6,622) | 22,696 | |||
Net income (loss) attributable to parent company | $ (10,172) | $ (34,783) | $ (1,762) | |||
[1] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. | |||||
[2] | Includes $256 of net revenues received from Medallion Bank for the year ended December 31, 2018, primarily for expense reimbursements. See Notes 5 and 12 for additional information. |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Statements - Condensed Statements of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Condensed Statement of Income Captions [Line Items] | |||||
Net income (loss) | $ (7,865) | $ (26,907) | $ 1,996 | $ (22,739) | |
Other comprehensive income (loss) | 1,013 | 1,081 | (82) | ||
Total comprehensive loss attributable to Medallion Financial Corp. | (33,770) | (681) | $ (25,128) | ||
Parent Company [Member] | |||||
Condensed Statement of Income Captions [Line Items] | |||||
Net income (loss) | (10,172) | (34,783) | (1,762) | ||
Other comprehensive income (loss) | (82) | 1,013 | 1,081 | ||
Total comprehensive loss attributable to Medallion Financial Corp. | $ (10,254) | $ (33,770) | $ (681) | ||
[1] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Statements - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | $ (7,865) | $ (26,907) | $ 1,996 | $ (22,739) | [1] | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Provision for loan losses | 69,817 | 47,386 | 59,008 | [1] | ||
Depreciation and amortization | 7,714 | 7,499 | 5,564 | [1] | ||
Change in deferred and other tax assets/liabilities, net | (8,776) | 853 | 13,637 | [1] | ||
Net change in value of loan collateral in process of foreclosure | 31,926 | 11,838 | 9,926 | [1] | ||
Net change in unrealized depreciation on investments | 1,734 | 6,457 | [1] | |||
Stock-based compensation expense | 2,030 | 1,221 | 576 | [1] | ||
Decrease in other assets | 2,223 | 2,838 | 1,309 | [1] | ||
Increase in other liabilities | [1] | 4,196 | ||||
Net cash provided by operating activities | 78,706 | 64,935 | 66,551 | [1] | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans originated | (506,106) | (471,069) | (333,740) | [1] | ||
Proceeds from principal receipts, sales, and maturities of loans | 321,831 | 251,653 | 302,409 | [1] | ||
Purchases of investments | (15,580) | (10,507) | (10,376) | [1] | ||
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 13,499 | 16,294 | 11,593 | [1] | ||
Net cash used for investing activities | (170,957) | (206,510) | (23,697) | [1] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from funds borrowed | 668,577 | 525,842 | 364,139 | [1] | ||
Repayments of time deposits and funds borrowed | (526,064) | (414,277) | (389,951) | [1] | ||
Net cash provided by (used for) financing activities | 136,470 | 151,683 | (27,654) | [1] | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 44,219 | 10,108 | 15,200 | [1] | ||
Parent Company [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income (loss) after taxes/net decrease on net assets resulting from operations | (10,172) | (34,783) | (1,762) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Equity in undistributed (earnings) losses of subsidiaries | (28,041) | 6,622 | (22,696) | |||
Provision for loan losses | 19,190 | 5,127 | 6,377 | |||
Depreciation and amortization | 5,451 | 5,357 | 5,484 | |||
Change in deferred and other tax assets/liabilities, net | 4,512 | (3,317) | (2,225) | |||
Net change in value of loan collateral in process of foreclosure | 678 | 4,940 | 906 | |||
Net change in unrealized depreciation on investments | 3,493 | 1,786 | ||||
Stock-based compensation expense | 425 | 2,031 | 1,221 | |||
Decrease in other assets | 4,073 | 2,299 | 988 | |||
Increase in deferred financing costs | (1,233) | (1,297) | ||||
Decrease in intercompany payables | (3,368) | (3,552) | (8,448) | |||
Increase in other liabilities | 4,237 | 2,336 | (1,759) | |||
Net cash provided by operating activities | (3,015) | (10,680) | (21,425) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Loans originated | (309) | (14) | (3,312) | |||
Proceeds from principal receipts, sales, and maturities of loans | 10,900 | 1,193 | 2,313 | |||
Purchases of investments | (2,304) | (1,125) | ||||
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 487 | 1,276 | 2,403 | |||
Dividends from subsidiaries | 5,200 | 7,597 | 6,248 | |||
Net cash used for investing activities | 16,278 | 7,748 | 6,527 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from funds borrowed | 33,600 | 36,000 | ||||
Repayments of time deposits and funds borrowed | (17,208) | (1,402) | (17,735) | |||
Net cash provided by (used for) financing activities | (17,208) | 32,198 | 18,265 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,945) | 29,266 | 3,367 | |||
Cash and cash equivalents, beginning of period | 5,055 | 4,477 | 1,110 | |||
Cash and cash equivalents, end of period | $ 1,110 | $ 33,743 | $ 4,477 | $ 1,110 | ||
[1] | Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) | Oct. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2008 |
Variable Interest Entity [Line Items] | ||||
Variable interest entity net gain | $ 25,325,000 | |||
Equity investments | $ 9,746,000 | $ 10,079,000 | ||
Medallion Financing Trust I [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Promissory note payable | $ 1,400,000 | |||
Taxi Medallion Loan Trust III [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Equity investments | 0 | $ 0 | ||
Taxi Medallion Loan Trust III [Member] | DZ Loan [Member] | Commercial Paper [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Line of credit facility maximum borrowing capacity | $ 200,000,000 | |||
Long-term debt | $ 86,825,000 | |||
Maturity date | May 15, 2021 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Mar. 12, 2021 | Mar. 11, 2021 | Dec. 31, 2020 |
Notes Payable to Banks with Maturity of September 1, 2021 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Maturity date | Sep. 1, 2021 | ||
Notes Payable to Banks with Maturity of April 15, 2021 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Maturity date | Apr. 15, 2021 | ||
Notes Payable to Banks with Maturity of February 1, 2021 [Member] | |||
Subsequent Event [Line Items] | |||
Maturity date | Feb. 1, 2021 | ||
Notes Payable to Banks with Maturity of February 9, 2021 [Member] | |||
Subsequent Event [Line Items] | |||
Maturity date | Feb. 9, 2021 |