Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 06, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | MEDALLION FINANCIAL CORP | |
Entity Central Index Key | 0001000209 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,061,764 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-37747 | |
Entity Tax Identification Number | 04-3291176 | |
Entity Address, Address Line One | 437 MADISON AVENUE, 38th Floor | |
Entity Address, City or Town | NEW YORK | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 328-2100 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MFIN | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | ||
Assets | ||||
Cash and cash equivalents | [1] | $ 31,389 | $ 54,743 | |
Federal funds sold | 60,164 | 57,297 | ||
Investment securities | 48,307 | 46,792 | ||
Equity investments | 10,090 | 9,746 | ||
Loans | 1,340,567 | 1,229,838 | ||
Allowance for loan losses | (46,946) | [2] | (57,548) | |
Net loans receivable | 1,293,621 | 1,172,290 | ||
Accrued interest receivable | 9,525 | 10,338 | ||
Income tax receivable | 1,072 | 1,757 | ||
Property, equipment, and right-of-use lease asset, net | 11,439 | 12,404 | ||
Loan collateral in process of foreclosure | [3] | 49,039 | 54,560 | |
Goodwill | 150,803 | 150,803 | ||
Intangible assets, net | 50,368 | 51,090 | ||
Other assets | 23,930 | 20,591 | ||
Total assets | 1,739,747 | 1,642,411 | ||
Liabilities | ||||
Accounts payable and accrued expenses | [4] | 19,515 | 14,902 | |
Accrued interest payable | 3,883 | 4,673 | ||
Deposits | [5] | 1,152,068 | 1,065,398 | |
Short-term borrowings | 8,016 | 87,334 | ||
Deferred tax liabilities, net | 8,591 | 807 | ||
Operating lease liabilities | 9,889 | 11,018 | ||
Long-term debt | [6] | 214,971 | 153,718 | |
Total liabilities | 1,416,933 | 1,337,850 | ||
Commitments and contingencies | [7] | |||
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- 28,013,007 shares at June 30, 2021 and 27,828,871 shares at December 31, 2020 issued) | 280 | 278 | ||
Additional paid in capital | 278,727 | 277,539 | ||
Treasury stock (2,951,243 shares at June 30, 2021 and December 31, 2020) | (24,919) | (24,919) | ||
Accumulated other comprehensive income | 1,434 | 2,012 | ||
Retained earnings (accumulated deficit) | (4,804) | (23,502) | ||
Total stockholders’ equity | 250,718 | 231,408 | ||
Non-controlling interest in consolidated subsidiaries | 72,096 | 73,153 | ||
Total equity | 322,814 | 304,561 | ||
Total liabilities and equity | $ 1,739,747 | $ 1,642,411 | ||
Number of shares outstanding | 25,061,764 | 24,877,628 | ||
Book value per share | $ 10 | $ 9.30 | ||
[1] | Includes restricted cash of $2,970 as of June 30, 2021 and December 31, 2020. | |||
[2] | As of June 30, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans. | |||
[3] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,919 as of June 30, 2021 and $3,535 as of December 31, 2020. | |||
[4] | Includes the short-term portion of lease liabilities of $2,106 and $2,004 as of June 30, 2021 and December 31, 2020. Refer to Note 6 for more details. | |||
[5] | Includes $2,796 and $2,674 of deferred financing costs as of June 30, 2021 and December 31, 2020. Refer to Note 5 for more details. | |||
[6] | Includes $4,258 and $3,131 of deferred financing costs as of June 30, 2021 and December 31, 2020. Refer to Note 5 for more details. | |||
[7] | Refer to Note 10 for details. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 28,013,007 | 27,828,871 |
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 | 3,919 | 3,535 |
Short term lease liabilities | 2,106 | 2,004 |
Deposits [Member] | ||
Deferred financing costs | 2,796 | 2,674 |
Long-Term Debt [Member] | ||
Deferred financing costs | $ 4,258 | $ 3,131 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Income Statement [Abstract] | |||||
Interest and fees on loans | $ 37,132,000 | $ 35,324,000 | $ 73,987,000 | $ 70,343,000 | |
Interest and dividends on investment securities | 243,000 | 264,000 | 468,000 | 734,000 | |
Medallion lease income | 53,000 | ||||
Total interest income | [1] | 37,375,000 | 35,588,000 | 74,455,000 | 71,130,000 |
Interest on deposits | 4,465,000 | 5,920,000 | 9,176,000 | 11,861,000 | |
Interest on short-term borrowings | 246,000 | 481,000 | 649,000 | 1,045,000 | |
Interest on long-term debt | 3,173,000 | 2,434,000 | 6,467,000 | 4,929,000 | |
Total interest expense | [2] | 7,884,000 | 8,835,000 | 16,292,000 | 17,835,000 |
Net interest income | 29,491,000 | 26,753,000 | 58,163,000 | 53,295,000 | |
Provision (benefit) for loan losses | (682,000) | 16,941,000 | 2,336,000 | 33,482,000 | |
Net interest income after provision (benefit) for loan losses | 30,173,000 | 9,812,000 | 55,827,000 | 19,813,000 | |
Other income (loss) | |||||
Sponsorship and race winnings, net | 4,345,000 | 3,626,000 | 6,818,000 | 6,199,000 | |
Gain (loss) on equity investments | 3,205,000 | (1,000) | 3,205,000 | (3,560,000) | |
Gain on extinguishment of debt | 2,859,430 | 4,626,000 | |||
Write-down of loan collateral in process of foreclosure | (2,162,000) | (983,000) | (4,947,000) | (7,269,000) | |
Other income (loss) | (480,000) | 614,000 | 1,000 | 906,000 | |
Total other income (loss), net | 7,767,000 | 3,256,000 | 9,703,000 | (3,724,000) | |
Other expenses | |||||
Salaries and employee benefits | 7,901,000 | 6,702,000 | 13,586,000 | 13,635,000 | |
Race team related expenses | 2,674,000 | 1,818,000 | 4,796,000 | 3,948,000 | |
Loan servicing fees | 1,731,000 | 1,729,000 | 3,378,000 | 3,341,000 | |
Collection costs | 1,641,000 | 1,461,000 | 2,874,000 | 2,690,000 | |
Professional fees | 2,224,000 | 1,319,000 | 2,730,000 | 4,908,000 | |
Rent expense | 624,000 | 631,000 | 1,299,000 | 1,328,000 | |
Regulatory fees | 456,000 | 236,000 | 895,000 | 601,000 | |
Travel, meals, and entertainment | 68,000 | 32,000 | 228,000 | 240,000 | |
Amortization of intangible assets | 361,000 | 361,000 | 722,000 | 722,000 | |
Other expenses | 2,140,000 | 1,897,000 | 3,954,000 | 4,044,000 | |
Total other expenses | 19,820,000 | 16,186,000 | 34,462,000 | 35,457,000 | |
Income (loss) before income taxes | 18,120,000 | (3,118,000) | 31,068,000 | (19,368,000) | |
Income tax (provision) benefit | (6,528,000) | 853,000 | (10,406,000) | 4,102,000 | |
Net income (loss) after taxes | 11,592,000 | (2,265,000) | 20,662,000 | (15,266,000) | |
Less: income attributable to the non-controlling interest | 1,325,000 | 1,712,000 | 1,964,000 | 2,354,000 | |
Total net income (loss) attributable to Medallion Financial Corp. | $ 10,267,000 | $ (3,977,000) | $ 18,698,000 | $ (17,620,000) | |
Basic net income (loss) per share | $ 0.42 | $ (0.16) | $ 0.76 | $ (0.72) | |
Diluted net income (loss) per share | $ 0.41 | $ (0.16) | $ 0.75 | $ (0.72) | |
Weighted average common shares outstanding | |||||
Basic | 24,595,822 | 24,444,677 | 24,557,511 | 24,423,225 | |
Diluted | 24,950,512 | 24,444,677 | 24,923,023 | 24,423,225 | |
[1] | Included in interest and investment income is $170 and $495 of paid-in-kind interest for the three and six months ended June 30, 2021 and $341 and $634 for the three and six months ended June 30, 2020 | ||||
[2] | Average borrowings outstanding were $1,342,570 and $1,320,361, and the related average borrowing costs were 2.36% and 2.49% for the three and six months ended June 30, 2021, and were $1,290,318 and $1,227,413, and 2.75% and 2.92%, for the three and six months ended June 30, 2020. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Interest paid-in-kind | $ 170 | $ 341 | $ 495 | $ 634 |
Average borrowings outstanding | $ 1,342,570 | $ 1,290,318 | $ 1,320,361 | $ 1,227,413 |
Average borrowing costs rate | 2.36% | 2.75% | 2.49% | 2.92% |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) after taxes | $ 11,592 | $ (2,265) | $ 20,662 | $ (15,266) |
Other comprehensive income (loss), net of tax | 27 | 981 | (578) | 1,128 |
Total comprehensive income (loss) | 11,619 | (1,284) | 20,084 | (14,138) |
Less comprehensive income attributable to the non-controlling interest | 1,325 | 1,712 | 1,964 | 2,354 |
Total comprehensive income (loss) attributable to Medallion Financial Corp. | $ 10,294 | $ (2,996) | $ 18,120 | $ (16,492) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Noncontrolling Interest [Member] | ||
Balance at Dec. 31, 2019 | $ 334,468 | $ 276 | $ 275,511 | $ (24,919) | $ 11,281 | $ 999 | $ 263,148 | $ 71,320 | ||
Balance, shares at Dec. 31, 2019 | 27,597,802 | (2,951,243) | ||||||||
Net income (loss) | (13,001) | (13,643) | (13,643) | 642 | ||||||
Distributions to non-controlling interest | (1,507) | (1,507) | ||||||||
Stock-based compensation expense | 466 | $ 2 | 464 | 466 | ||||||
Issuance of restricted stock, net | 0 | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Issuance of restricted stock, net, shares | 165,674 | |||||||||
Forfeiture of restricted stock, net | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Forfeiture of restricted stock, net, shares | (5,577) | |||||||||
Net change in unrealized gains (losses) on investments, net of tax | 147 | 147 | 147 | |||||||
Ending balance at Mar. 31, 2020 | 320,573 | $ 278 | 275,975 | $ (24,919) | (2,362) | 1,146 | 250,118 | 70,455 | ||
Ending balance, shares at Mar. 31, 2020 | 27,757,899 | (2,951,243) | ||||||||
Balance at Dec. 31, 2019 | 334,468 | $ 276 | 275,511 | $ (24,919) | 11,281 | 999 | 263,148 | 71,320 | ||
Balance, shares at Dec. 31, 2019 | 27,597,802 | (2,951,243) | ||||||||
Net income (loss) | (15,266) | |||||||||
Ending balance at Jun. 30, 2020 | 318,297 | $ 278 | 276,495 | $ (24,919) | (6,339) | 2,127 | 247,642 | 70,655 | ||
Ending balance, shares at Jun. 30, 2020 | 27,767,619 | (2,951,243) | ||||||||
Balance at Dec. 31, 2019 | $ 334,468 | $ 276 | 275,511 | $ (24,919) | 11,281 | 999 | 263,148 | 71,320 | ||
Balance, shares at Dec. 31, 2019 | 27,597,802 | (2,951,243) | ||||||||
Exercise of stock options, shares | [1] | 0 | ||||||||
Net change in unrealized gains (losses) on investments, net of tax | $ (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) | |||||||
Balance at Mar. 31, 2020 | $ 320,573 | $ 278 | 275,975 | $ (24,919) | (2,362) | 1,146 | 250,118 | 70,455 | ||
Balance, shares at Mar. 31, 2020 | 27,757,899 | (2,951,243) | ||||||||
Net income (loss) | (2,265) | (3,977) | (3,977) | 1,712 | ||||||
Distributions to non-controlling interest | (1,512) | (1,512) | ||||||||
Stock-based compensation expense | 520 | 520 | 520 | |||||||
Issuance of restricted stock, net, shares | 10,416 | |||||||||
Forfeiture of restricted stock, net, shares | (696) | |||||||||
Net change in unrealized gains (losses) on investments, net of tax | 981 | 981 | 981 | |||||||
Ending balance at Jun. 30, 2020 | 318,297 | $ 278 | 276,495 | $ (24,919) | (6,339) | 2,127 | 247,642 | 70,655 | ||
Ending balance, shares at Jun. 30, 2020 | 27,767,619 | (2,951,243) | ||||||||
Balance at Dec. 31, 2020 | $ 304,561 | $ 278 | 277,539 | $ (24,919) | (23,502) | 2,012 | 231,408 | 73,153 | ||
Balance, shares at Dec. 31, 2020 | 24,877,628 | 27,828,871 | (2,951,243) | |||||||
Net income (loss) | $ 9,071 | 8,431 | 8,431 | 640 | ||||||
Distributions to non-controlling interest | (1,511) | (1,511) | ||||||||
Stock-based compensation expense | $ 498 | $ 2 | 496 | 498 | ||||||
Issuance of restricted stock, net, shares | 163,561 | |||||||||
Forfeiture of restricted stock, net, shares | (7,602) | |||||||||
Exercise of stock options, shares | 768 | [1] | 768 | |||||||
Net change in unrealized gains (losses) on investments, net of tax | $ (605) | (605) | (605) | |||||||
Ending balance at Mar. 31, 2021 | 312,014 | $ 280 | 278,035 | $ (24,919) | (15,071) | 1,407 | 239,732 | 72,282 | ||
Ending balance, shares at Mar. 31, 2021 | 27,985,598 | (2,951,243) | ||||||||
Balance at Dec. 31, 2020 | $ 304,561 | $ 278 | 277,539 | $ (24,919) | (23,502) | 2,012 | 231,408 | 73,153 | ||
Balance, shares at Dec. 31, 2020 | 24,877,628 | 27,828,871 | (2,951,243) | |||||||
Net income (loss) | $ 20,662 | |||||||||
Net change in unrealized gains (losses) on investments, net of tax | 578 | |||||||||
Ending balance at Jun. 30, 2021 | $ 322,814 | $ 280 | 278,727 | $ (24,919) | (4,804) | 1,434 | 250,718 | 72,096 | ||
Ending balance, shares at Jun. 30, 2021 | 25,061,764 | 28,013,007 | (2,951,243) | |||||||
Balance at Mar. 31, 2021 | $ 312,014 | $ 280 | 278,035 | $ (24,919) | (15,071) | 1,407 | 239,732 | 72,282 | ||
Balance, shares at Mar. 31, 2021 | 27,985,598 | (2,951,243) | ||||||||
Net income (loss) | 11,592 | 10,267 | 10,267 | 1,325 | ||||||
Distributions to non-controlling interest | (1,511) | (1,511) | ||||||||
Stock-based compensation expense | 576 | 576 | 576 | |||||||
Issuance of restricted stock, net | $ 15,514 | |||||||||
Forfeiture of restricted stock, net | (10,332) | |||||||||
Exercise of stock options | $ 116 | 22,227 | 116 | 116 | ||||||
Exercise of stock options, shares | [1] | 22,227 | ||||||||
Net change in unrealized gains (losses) on investments, net of tax | $ 27 | 27 | 27 | |||||||
Ending balance at Jun. 30, 2021 | $ 322,814 | $ 280 | $ 278,727 | $ (24,919) | $ (4,804) | $ 1,434 | $ 250,718 | $ 72,096 | ||
Ending balance, shares at Jun. 30, 2021 | 25,061,764 | 28,013,007 | (2,951,243) | |||||||
[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 $77,000 and $0 for the three and six months ended June 30, 2021 and 2020. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 20,662,000 | $ (15,266,000) | |
Adjustments to reconcile net income (loss) from operations to net cash provided by operating activities: | |||
Provision for loan losses | 2,336,000 | 33,482,000 | |
Paid-in-kind interest | (495,000) | (634,000) | |
Depreciation and amortization | 4,082,000 | 2,933,000 | |
Increase (decrease) in deferred and other tax liabilities | 8,469,000 | (3,240,000) | |
Amortization of origination fees, net | 3,723,000 | 2,891,000 | |
Net change in value of loan collateral in process of foreclosure | 7,243,000 | 11,282,000 | |
Net realized (gains) losses on investments | (3,205,000) | 3,555,000 | |
Stock-based compensation expense | 1,072,000 | 987,000 | |
Gain on extinguishment of debt | (4,626,000) | ||
Decrease in accrued interest receivable | 813,000 | 2,106,000 | |
(Increase) decrease in other assets | (574,000) | (5,518,000) | |
Increase in accounts payable and accrued expenses | 1,109,000 | 653,000 | |
Increase (decrease) in accrued interest payable | (790,000) | 172,000 | |
Net cash provided by operating activities | 39,819,000 | 33,403,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Loans originated | (365,416,000) | (264,514,000) | |
Proceeds from principal receipts, sales, and maturities of loans | 225,976,000 | 137,286,000 | |
Purchases of investments | (15,318,000) | (7,796,000) | |
Proceeds from principal receipts, sales, and maturities of investments | 14,007,000 | 8,397,000 | |
Proceeds from the sale and principal payments on loan collateral in process of foreclosure | 8,941,000 | 6,179,000 | |
Net cash used for investing activities | (131,810,000) | (120,448,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from time deposits and funds borrowed | 409,810,000 | 344,982,000 | |
Repayments of time deposits and funds borrowed | (335,403,000) | (218,855,000) | |
Distributions to non-controlling interests | (3,019,000) | (3,019,000) | |
Proceeds from the exercise of stock options | 116,000 | ||
Net cash provided by financing activities | 71,504,000 | 123,108,000 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (20,487,000) | 36,063,000 | |
Cash, cash equivalents and restricted cash, beginning of period | [1] | 112,040,000 | 67,821,000 |
Cash, cash equivalents and restricted cash, end of period | [1] | 91,553,000 | 103,884,000 |
SUPPLEMENTAL INFORMATION | |||
Cash paid during the period for interest | 15,769,000 | 16,355,000 | |
Cash paid during the period for income taxes | 1,688,000 | 81,000 | |
NON-CASH INVESTING | |||
Loans transferred to loan collateral in process of foreclosure, net | $ 10,663,000 | $ 12,125,000 | |
[1] | Includes federal funds sold. |
Organization of Medallion Finan
Organization of Medallion Financial Corp. and its Subsidiaries | 6 Months Ended |
Jun. 30, 2021 | |
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, home improvements, and to provide loan origination and other services to fintech partners. The Company also conducts business through Medallion Funding LLC, or MFC, a Small Business Investment Company, or SBIC, which originates and services 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. 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 a second partnership in 2021, and continues 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 15. 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 June 30, 2021, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust. MFC, through several wholly-owned subsidiaries, together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 taxi medallions are carried at a net realizable value of $1,284,000 in other assets on the Company’s consolidated balance sheet at June 30, 2021, compared to a net realizable value of $2,932,000 and $3,091,000 at December 31, 2020 and June 30, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the 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 loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. 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 $1,250,000 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, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements. Equity Investments The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10,090,000 and $9,746,000 at June 30, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of June 30, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change. In the 2021 second quarter, the Company sold 1,166,667 shares of its investment in Upgrade, Inc. for proceeds of $3,816,000 and recognized a gain on the sale of $3,179,000. The Company continued to hold 1,500,000 shares of Upgrade, Inc. at a cost of $819,000 as of June 30, 2021. In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,969,000 as of June 30, 2021 are included in other assets on the consolidated balance sheet. The table below presents the unrealized portion related to the equity securities held as of June 30, 2021. (Dollars in thousands) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Net losses recognized during the period on equity securities $ (3 ) $ (31 ) Less: Net gains (losses) recognized during the period on equity securities sold during the period — — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (3 ) $ (31 ) Investment Securities The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $337,000 at June 30, 2021 and $278,000 at December 31, 2020, and $38,000 and $81,000 was amortized to interest income for the three and six months ended June 30, 2021 and $79,000 and $134,000 was amortized to interest income for the three and six months ended June 30, 2020. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. 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 June 30, 2021 and December 31, 2020, net loan origination costs were $24,074,000 and $20,684,000. Net amortization to income for the three months ended June 30, 2021 and 2020 was $2,067,000 and $1,587,000 and was $3,723,000 and $2,891,000 for the six months ended June 30, 2021 and 2020. Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer loan portfolio has different characteristics, typified by a larger number of 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 by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $2,912,000 at June 30, 2021, or 0.22% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants 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 the third quarter 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 recreation loans is to take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the 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 $0 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at June 30, 2021 and December 31, 2020. 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 $107,624,000 at June 30, 2021 and $107,131,000 at December 31, 2020. 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 primarily to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of June 30, 2021 and December 31, 2020. Allowance for Loan Losses 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 collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as mor e 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 2020 . In addition, the Company determined that anticipated payment activity on the medallion portfolio w as impossible to quantify upon exit of the six- month deferral period with borrowers , and therefore deemed all such loans as impaired in the third quarter of 2020 . As a result, all medallion loans were placed on nonaccrual and written down to collateral value , net of liquidation costs, of $ for New York City medallions . T he Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Ha d there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more pas t 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. Goodwill and Intangible Assets The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of June 30, 2021, December 31, 2020, and June 30, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,368,000, $51,090,000, and $51,814,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended June 30, 2021 and 2020, and $722,000 and $722,000 of amortization expense on the intangible assets for the six months ended June 30, 2021 and 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $835,000, $2,717,000, and $5,251,000 were outstanding at June 30, 2021, December 31, 2020, and June 30, 2020, and of which $1,695,000 and $179,000 was amortized to interest income for the three months ended June 30, 2021 and 2020, and of which $1,882,000 and $508,000 was amortized to interest income for the six months ended June 30, 2021 and 2020. The table below shows the details of the intangible assets as of the dates presented. (Dollars in thousands) June 30, 2021 December 31, 2020 Brand-related intellectual property $ 18,425 $ 18,974 Home improvement contractor relationships 5,778 5,951 Race organization 26,165 26,165 Total intangible assets, net $ 50,368 $ 51,090 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 $75,000 and $139,000 for the three months ended June 30, 2021 and 2020, and was $159,000 and $261,000 for the six months ended June 30, 2021 and 2020. 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 $592,000 and $586,000 for the three months ended June 30, 2021 and 2020, and was $1,237,000 and $1,308,000 for the six months ended June 30, 2021 and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes w ere $ 7,054,000 , $ , and $ 4,709,000 as of June 30, 2021 , December 31, 2020 , and June 30, 2020 . 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) resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2021 2020 2021 2020 Net income (loss) resulting from operations available to common stockholders $ 10,267 $ (3,977 ) $ 18,698 $ (17,620 ) Weighted average common shares outstanding applicable to basic EPS 24,595,822 24,444,677 24,557,511 24,423,225 Effect of dilutive stock options 127,493 — 74,331 — Effect of restricted stock grants 227,197 — 291,181 — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,950,512 24,444,677 24,923,023 24,423,225 Basic income (loss) per share $ 0.42 $ (0.16 ) $ 0.76 $ (0.72 ) Diluted income (loss) per share 0.41 (0.16 ) 0.75 (0.72 ) Potentially dilutive common shares excluded from the above calculations aggregated 396,373 and 851,272 shares as of June 30, 2021 and 2020. Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock. During the six months ended June 30, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued 16,803 restricted stock units; and recognized $576,000 and $1,074,000, or $0.02 and $0.04 per share, for the three and six months ended June 30, 2021, and $520,000 and $987,000, or $0.02 and $0.04 per share for the three and six months ended June 30, 2020, of non-cash stock-based compensation expense related to the grants. As of June 30, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $3,481,000, which is expected to be recognized over the next 15 quarters Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions with, such as certain purchases of assets, the Company or its affiliates. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table 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%, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of June 30, 2021, the Bank’s Tier 1 leverage ratio was 18.09%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well- Capitalized June 30, 2021 December 31, 2020 Common equity Tier 1 capital — — $ 172,775 $ 148,507 Tier 1 capital — — 241,563 217,295 Total capital — — 258,880 233,460 Average assets — — 1,335,205 1,283,664 Risk-weighted assets — — 1,349,840 1,243,783 Leverage ratio (1) 4.0 % 5.0 % 18.1 % 16.9 % Common equity Tier 1 capital ratio (2) 7.0 6.5 12.8 11.9 Tier 1 capital ratio (3) 8.5 8.0 17.9 17.5 Total capital ratio (3) 10.5 10.0 19.2 18.8 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of June 30, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2021 and December 31, 2020. 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, or ASU 2016-13. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Schedule Of Investments [Abstract] | |
Investment Securities | (3) INVESTMENT SECURITIES Fixed maturity securities available for sale at June 30, 2021 and December 31, 2020 consisted of the following: June 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 39,553 $ 1,009 $ (239 ) $ 40,323 State and municipalities 7,919 106 (41 ) 7,984 Total $ 47,472 $ 1,115 $ (280 ) $ 48,307 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 The amortized cost and estimated market value of investment securities at June 30, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 20 $ 20 Due after one year through five years 8,502 8,775 Due after five years through ten years 13,451 13,906 Due after ten years 25,499 25,606 Total $ 47,472 $ 48,307 The following tables show information pertaining to securities with gross unrealized losses at June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position. Less than Twelve Months Twelve Months and Over June 30, 2021 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (183 ) $ 11,444 $ (55 ) $ 1,910 State and municipalities (40 ) 1,960 (2 ) 128 Total $ (223 ) $ 13,404 $ (57 ) $ 2,038 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 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 (Dollars in thousands) Amount As a Percent of Gross Loans Amount As a Percent of Gross Loans Recreation $ 886,206 66 % $ 792,686 65 % Home improvement 368,257 28 334,033 27 Commercial 69,520 5 65,327 5 Medallion 16,514 1 37,768 3 Strategic partnership 70 — 24 — Total gross loans 1,340,567 100 % 1,229,838 100 % Allowance for loan losses (46,946 ) (57,548 ) Total net loans $ 1,293,621 $ 1,172,290 The following table s show the activity of the gross loans for the three and six months ended June 30, 2021 and 20 20 . Three Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – March 31, 2021 $ 822,932 $ 342,121 $ 58,854 $ 35,250 $ 58 $ 1,259,215 Loan originations 134,467 62,992 11,059 — 2,426 210,944 Principal payments, sales, and maturities (70,672 ) (36,729 ) (564 ) (2,389 ) (2,414 ) (112,768 ) Charge-offs, net 916 (228 ) — (10,869 ) — (10,181 ) Transfer to loan collateral in process of foreclosure, net (2,980 ) — — (3,933 ) — (6,913 ) Amortization of origination costs (2,477 ) 410 — — — (2,067 ) Amortization of loan premium (60 ) (90 ) — (1,545 ) — (1,695 ) FASB origination costs 4,080 (219 ) 1 — — 3,862 Paid-in-kind interest — — 170 — — 170 Gross loans – June 30, 2021 $ 886,206 $ 368,257 $ 69,520 $ 16,514 $ 70 $ 1,340,567 Six Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – December 31, 2020 $ 792,686 $ 334,033 $ 65,327 $ 37,768 $ 24 $ 1,229,838 Loan originations 228,317 111,051 15,216 — 4,370 358,954 Principal payments, sales and maturities (129,100 ) (76,797 ) (11,541 ) (4,214 ) (4,324 ) (225,976 ) Charge-offs, net (1,668 ) (477 ) — (10,793 ) — (12,938 ) Transfer to loan collateral in process of foreclosure, net (6,033 ) — — (4,630 ) — (10,663 ) Amortization of origination costs (4,639 ) 907 11 (2 ) — (3,723 ) Amortization of loan premium (101 ) (166 ) — (1,615 ) — (1,882 ) FASB origination costs 6,744 (294 ) 12 — — 6,462 Paid-in-kind interest — — 495 — — 495 Gross loans – June 30, 2021 $ 886,206 $ 368,257 $ 69,520 $ 16,514 $ 70 $ 1,340,567 Three Months Ended June 30, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – March 31, 2020 $ 735,175 $ 255,899 $ 68,257 $ 124,448 $ — $ 1,183,779 Loan originations 106,206 44,713 3,000 — 153 154,072 Principal payments, sales and maturities (49,457 ) (18,496 ) (132 ) (1,687 ) (145 ) (69,917 ) Charge-offs, net (3,565 ) (196 ) — (260 ) — (4,021 ) Transfer to loan collateral in process of foreclosure, net (3,003 ) — — (2,185 ) — (5,188 ) Amortization of origination costs (2,031 ) 455 2 (13 ) — (1,587 ) Amortization of loan premium (51 ) (82 ) — (46 ) — (179 ) FASB origination costs 3,511 (221 ) 8 (4 ) — 3,294 Paid-in-kind interest — — 341 — — 341 Gross loans – June 30, 2020 $ 786,785 $ 282,072 $ 71,476 $ 120,253 $ 8 $ 1,260,594 Six Months Ended June 30, 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 175,850 78,178 5,175 — 153 259,356 Principal payments, sales and maturities (86,529 ) (42,720 ) (4,112 ) (3,780 ) (145 ) (137,286 ) Charge-offs, net (9,946 ) (832 ) — (1,820 ) — (12,598 ) Transfer to loan collateral in process of foreclosure, net (7,781 ) — — (4,344 ) — (12,125 ) Amortization of origination costs (3,760 ) 896 4 (31 ) — (2,891 ) Amortization of loan premium (103 ) (168 ) — (237 ) — (508 ) FASB origination costs 5,722 (606 ) 8 33 — 5,157 Paid-in-kind interest — — 634 — — 634 Gross loans – June 30, 2020 $ 786,785 $ 282,072 $ 71,476 $ 120,253 $ 8 $ 1,260,594 The following table sets forth the activity in the allowance for loan losses for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Allowance for loan losses – beginning balance $ 57,809 $ 54,057 $ 57,548 $ 46,093 Charge-offs Recreation (2,672 ) (5,708 ) (7,725 ) (13,951 ) Home improvement (786 ) (548 ) (1,467 ) (1,558 ) Commercial — — — — Medallion (12,791 ) (1,771 ) (13,905 ) (3,696 ) Total charge-offs (16,249 ) (8,027 ) (23,097 ) (19,205 ) Recoveries Recreation 3,588 2,143 6,057 4,005 Home improvement 558 352 990 726 Commercial — — — — Medallion 1,922 1,511 3,112 1,876 Total recoveries 6,068 4,006 10,159 6,607 Net charge-offs (1) (10,181 ) (4,021 ) (12,938 ) (12,598 ) Provision for loan losses (682 ) 16,941 2,336 33,482 Allowance for loan losses – ending balance (2) $ 46,946 $ 66,977 $ 46,946 $ 66,977 ( 1 ) As of June 30, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $299,205, some of which may represent collection opportunities for the Company. (2) As of June 30, 2021, 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 June 30, 2021 and December 31, 2020 . June 30, 2021 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Allowance as a Percent of Nonaccrual Recreation $ 30,306 64 % 3.42 % 633.25 % Home improvement 5,890 13 1.60 NM Commercial — — — — Medallion 10,750 23 65.11 65.11 Total $ 46,946 100 % 3.50 % 116.26 % 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 % 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. (Dollars in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Total nonaccrual loans $ 40,381 $ 61,767 $ 81,539 Interest foregone quarter to date 521 2,306 1,202 Amount of foregone interest applied to principal in the quarter 121 595 8 Interest foregone year to date 889 3,311 1,734 Amount of foregone interest applied to principal year to date 253 602 57 Interest foregone life to date 4,127 5,252 4,171 Amount of foregone interest applied to principal life to date 789 792 973 Percentage of nonaccrual loans to gross loan portfolio 3 % 5 % 6 % Percentage of allowance for loan losses to nonaccrual loans 116 % 93 % 82 % The following tables present the performance status of loans as of June 30, 2021 and December 31, 2020 . June 30, 2021 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 881,029 $ 5,177 $ 886,206 0.58 % Home improvement 368,188 69 368,257 0.02 Commercial 50,510 19,010 69,520 27.34 Medallion — 16,514 16,514 100.00 Strategic partnership 70 — 70 — Total $ 1,299,797 $ 40,770 $ 1,340,567 3.04 % 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 — Total $ 1,167,664 $ 62,174 $ 1,229,838 5.06 % (1) Includes medallion loan premiums of $1,615 at December 31, 2020. For those loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming. The following tables provide additional information on attributes of the nonperforming loan portfolio as of June 30, 2021 and 2020, and December 31, 2020, all of which had an allowance recorded against the principal balance. June 30, 2021 December 31, 2020 June 30, 2020 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With an allowance recorded Recreation $ 5,177 $ 5,177 $ 179 $ 7,639 $ 7,639 $ 264 $ 5,312 $ 5,312 $ 243 Home improvement 69 69 1 171 171 3 137 137 2 Commercial 19,010 19,019 — 16,596 16,600 — 15,246 15,251 — Medallion 16,516 17,296 10,753 37,768 38,368 25,043 61,230 61,555 35,838 Total nonperforming loans with an allowance $ 40,772 $ 41,561 $ 10,933 $ 62,174 $ 62,778 $ 25,310 $ 81,925 $ 82,255 $ 36,083 For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 (Dollars in thousands) Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized With an allowance recorded Recreation $ 4,799 $ 180 $ 4,912 $ 323 $ 5,544 $ 158 $ 5,653 $ 299 Home improvement 74 — 75 — 137 1 137 1 Commercial 19,210 — 19,788 — 15,360 — 15,359 1 Medallion 18,517 — 18,568 — 54,418 203 63,731 605 Total nonperforming loans with an allowance $ 42,600 $ 180 $ 43,343 $ 323 $ 75,459 $ 362 $ 84,880 $ 906 The following tables show the aging of all loans as of June 30, 2021 and December 31, 2020. Days Past Due June 30, 2021 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Recorded Investment 90 Days and Accruing Recreation $ 12,185 $ 3,473 $ 2,769 $ 18,427 $ 840,464 $ 858,891 $ — Home improvement 663 161 69 893 369,770 370,663 — Commercial — 1,816 74 1,890 67,700 69,590 — Medallion 375 9,167 — 9,542 6,974 16,516 — Strategic partnership — — — — 70 70 — Total $ 13,223 $ 14,617 $ 2,912 $ 30,752 $ 1,284,978 $ 1,315,730 $ — (1) Excludes loan premiums of $835 resulting from purchase price accounting and $24,074 of capitalized loan origination costs. Days Past Due December 31, 2020 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Recorded Investment 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. The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 321%, 327%, and 254% as of June 30, 2021, December 31, 2020, and June 30, 2020. The following table shows the TDRs which the Company entered into during the three months and six months ended June 30, 2021. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Three months ended June 30, 2021 Recreation 21 $ 302 $ 302 Medallion 2 256 256 Six months ended June 30, 2021 Recreation 39 $ 474 $ 468 Medallion 10 2,994 2,994 During the twelve months ended June 30, 2021, 43 medallion loans modified as TDRs were in default and had an investment value of $30,140,000 as of June 30, 2021, net of a $22,176,000 allowance for loan losses, 37 recreation loans modified as TDRs were in default and had an investment value of $371,000 as of June 30, 2021, net of a $13,000 allowance for loan losses, and no commercial loans modified as TDRs were in default. The following table shows the TDRs which the Company entered into during the three and six months ended June 30, 2020 . (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Three months ended June 30, 2020 Recreation 21 $ 231 $ 185 Medallion 17 12,519 12,519 Six months ended June 30, 2020 Recreation 51 $ 633 $ 426 Medallion 30 13,641 13,641 During the twelve months ended June 30, 2020, 20 medallion loans modified as TDRs were in default and had an investment value of $11,419,000 as of June 30, 2020, net of a $6,680,000 allowance for loan losses, and 88 recreation loans modified as TDRs were in default and had an investment value of $802,000 as of June 30, 2020, net of a $37,000 allowance for loan losses. The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2021 $ 970 $ 49,763 $ 50,733 Transfer from loans, net 2,980 3,933 6,913 Sales (1,989 ) (231 ) (2,220 ) Cash payments received — (3,146 ) (3,146 ) Collateral valuation adjustments (1,079 ) (2,162 ) (3,241 ) Loan collateral in process of foreclosure – June 30, 2021 $ 882 $ 48,157 $ 49,039 Six Months Ended June 30, 2021 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2020 $ 1,432 $ 53,128 $ 54,560 Transfer from loans, net 6,033 4,630 10,663 Sales (4,288 ) (231 ) (4,519 ) Cash payments received — (4,423 ) (4,423 ) Collateral valuation adjustments (2,295 ) (4,947 ) (7,242 ) Loan collateral in process of foreclosure – June 30, 2021 $ 882 $ 48,157 $ 49,039 Three Months Ended June 30, 2020 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2020 $ 1,717 $ 45,100 $ 46,817 Transfer from loans, net 3,003 2,185 5,188 Sales (1,988 ) — (1,988 ) Cash payments received — (185 ) (185 ) Collateral valuation adjustments (1,474 ) (983 ) (2,457 ) Loan collateral in process of foreclosure – June 30, 2020 $ 1,258 $ 46,117 $ 47,375 Six Months Ended June 30, 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 7,781 4,344 12,125 Sales (3,986 ) (300 ) (4,286 ) Cash payments received — (1,893 ) (1,893 ) Collateral valuation adjustments (4,013 ) (7,269 ) (11,282 ) Loan collateral in process of foreclosure – June 30, 2020 $ 1,258 $ 46,117 $ 47,375 |
Funds Borrowed
Funds Borrowed | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Funds Borrowed | (5) FUNDS BORROWED The outstanding balances of funds borrowed were as follows: Payments Due for the Twelve Months Ending June 30, (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter June 30, 2021 (1) December 31, 2020 (1) Interest Rate (2) Deposits (3) $ 469,737 $ 182,911 $ 226,592 $ 143,797 $ 131,077 $ — $ 1,154,114 $ 1,067,822 1.38 % Retail and privately placed notes — — 36,000 — 31,250 53,750 121,000 68,008 7.66 % SBA debentures and borrowings — 5,000 13,029 12,500 15,500 18,500 64,529 103,225 2.74 % Preferred securities — — — — — 33,000 33,000 33,000 2.26 % Notes payable to banks 280 280 140 — — — 700 31,261 4.00 % Other borrowings 8,016 — — — — — 8,016 8,689 2.00 % Total $ 478,033 $ 188,191 $ 275,761 $ 156,297 $ 177,827 $ 105,250 $ 1,381,359 $ 1,312,005 2.04 % (1) Excludes deferred financing costs of $7,054 and $5,805 as of June 30, 2021 and December 31, 2020. ( 2 ) Weighted average contractual rate as of June 30, 2021. (3) Balance excludes $750 and $250 of strategic partner reserve deposits as of June 30, 2021 and December 31, 2020. (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 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 June 30, 2021. In October 2020, the Bank began to originate time deposits through an internet listing service. These listing service deposits are from other financial institutions, and as of June 30, 2021, totaled $4,036,000. The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of June 30, 2021. (Dollars in thousands) June 30, 2021 Three months or less $ 133,194 Over three months through six months 122,023 Over six months through one year 214,520 Over one year 684,377 Total deposits $ 1,154,114 (B) 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 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. These notes were repaid at maturity on April 15, 2021. (C) SBA DEBENTURES AND BORROWINGS Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year On July 31, 2020, MCI accepted a commitment from the SBA for $25,000,000 in debenture financing. As part of the acceptance, MCI paid the SBA a $250,000 commitment fee. The commitment expires September 24, 2024. $8,500,000 of the commitments has been drawn as of June 30, 2021 to replace debentures which matured in 2021. The remaining balance of $16,500,000 is drawable upon the infusion of $8,250,000 of capital from either the capitalization of retained earnings or capital infusion from the Company, after the contribution of $3,500,000 of capital by the Company during the 2021 second quarter. (D) 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 (0.15% at June 30, 2021) plus 2.13%. The notes mature in September 2037 (E) 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. In the 2021 second quarter, the Company used some of the proceeds of the privately placed notes to pay off twenty five of its notes payable to banks aggregating $17,762,000 principal amount, resulting in a gain on debt extinguishment of $2,859,430. In March 2021, the Company used some of the proceeds of the privately placed notes to pay off two of its notes payable to banks aggregating $ 5,207,000 principal amount , one with a maturity of April 15, 2021 and one with a maturity of September 1, 2021 , resulting in a gain on debt extinguishment of $ 1,767,000 . 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. The note requires a regular quarterly payment of $70,000 of principal and accrued interest and matures in December 2023, and has an outstanding balance of $700,000 as of June 30, 2021. See Note 15 for more information. (F) OTHER BORROWINGS In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty. (Refer to Note 11 for more details.) At June 30, 2021, the total outstanding on these notes was $7,516,000 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, in the amount of $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. During the quarter, RPAC applied for forgiveness of this loan, which was granted by the SBA. (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 minimum net worth. The Company was in compliance with such restrictions as of June 30, 2021. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | (6) 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 three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Operating lease costs $ 572 $ 596 $ 1,144 $ 1,192 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 590 632 1,265 1,324 Right-of-use asset obtained in exchange for lease liability (18 ) (14 ) (36 ) (28 ) The following table presents the breakout of the operating leases as of June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Operating lease right-of-use assets $ 10,750 $ 11,737 Other current liabilities 2,111 2,004 Operating lease liabilities 9,889 11,018 Total operating lease liabilities 12,000 13,022 Weighted average remaining lease term 5.9 years 6.4 years Weighted average discount rate 5.54 % 5.54 % At June 30, 2021, maturities of the lease liabilities were as follows: (Dollars in thousands) Remainder of 2021 $ 1,247 2022 2,411 2023 2,356 2024 2,373 2025 2,390 Thereafter 3,521 Total lease payments $ 14,298 Less imputed interest 2,298 Total operating lease liabilities $ 12,000 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) INCOME TAXES The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C of the Internal Revenue Code, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries, in which it holds 80% or more of the outstanding equity interest measured by both vote and fair value. The following table sets forth the significant components of our deferred and other tax assets and liabilities as of June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Goodwill and other intangibles $ (44,145 ) $ (44,799 ) Provision for loan losses 14,308 19,556 Net operating loss carryforwards (1) 25,393 30,493 Accrued expenses, compensation, and other assets 1,676 1,174 Unrealized gains on other investments (3,528 ) (6,769 ) Total deferred tax liability (6,296 ) (345 ) Valuation allowance (2,295 ) (462 ) Deferred tax liability, net (8,591 ) (807 ) Taxes receivable 1,072 1,757 Net deferred and other tax assets (liabilities) $ (7,519 ) $ 950 (1) As of June 30, 2021, the Company and its subsidiaries had an estimated $103,838 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $23,098 as of June 30, 2021. The components of our tax (provision) benefit for the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Current Federal $ (795 ) $ — $ (795 ) $ — State (100 ) (137 ) (270 ) (223 ) Deferred Federal (3,001 ) 774 (6,054 ) 3,299 State (2,632 ) 216 (3,287 ) 1,026 Net (provision) benefit for income taxes $ (6,528 ) $ 853 $ (10,406 ) $ 4,102 The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Statutory Federal income tax (provision) benefit at 21% $ (3,805 ) $ 655 $ (6,524 ) $ 4,067 State and local income taxes, net of federal income tax benefit (743 ) 122 (1,275 ) 760 Valuation allowance against net operating losses (1,833 ) — (1,833 ) — Change in effective state income tax rates and accrual (1,399 ) 196 (1,369 ) 149 Income attributable to non-controlling interest 47 50 266 (166 ) Non deductible expenses 385 (198 ) 213 (789 ) Other 820 28 116 81 Total income tax (provision) benefit $ (6,528 ) $ 853 $ (10,406 ) $ 4,102 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of June 30, 2021. 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 2018 through the present are the more significant filings that are open for examination. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Restricted Stock | (8) STOCK OPTIONS AND RESTRICTED STOCK The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. A total of 2,210,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 435,474 remained issuable as of June 30, 2021. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first. The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, 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 June 30, 2021, 1,209,642 options on the Company’s common stock were outstanding under the Company’s plans, of which 347,824 options were exercisable. Additionally, there were 442,190 unvested shares under the Company’s restricted common stock plan, and 16,803 unvested restricted stock units, and 47,472 vested restricted stock 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 $3.24 per share and $3.30 per share for the six months ended June 30, 2021 and 2020. The following assumption categories are used to determine the value of any option grants. Six Months Ended June 30, 2021 2020 Risk free interest rate 0.97 % 1.46 % Expected dividend yield — — Expected life of option in years (1) 6.25 6.25 Expected volatility (2) 53.98 50.18 (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 2021 first and second quarters and the 2020 full year. Number of Options Exercise Price Per Share Weighted Average Exercise Price 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 951,669 2.14-12.55 6.41 Granted 317,398 6.79 6.79 Cancelled (3,984 ) 6.55-7.25 6.89 Exercised (1) (768 ) 6.55-7.25 6.79 Outstanding at March 31, 2021 1,264,315 2.14-12.55 6.50 Granted — — — Cancelled (32,446 ) 4.89-7.25 5.98 Exercised (1) (22,227 ) 5.27-7.25 5.76 Outstanding at June 30, 2021 1,209,642 2.14-12.55 6.53 Options exercisable at June 30, 2021 (2) 347,824 2.14-12.55 6.53 (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 $77,000 and $0 for the three and six months ended June 30, 2021 and 2020. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at June 30, 2021 and the related exercise price of the underlying options, was $2,854,000 for outstanding options and $844,000 for exercisable options as of June 30, 2021. The remaining contractual life was 8.50 years for outstanding options and 7.47 years for exercisable options at June 30, 2021. The following table presents the activity for the restricted stock programs for the 2021 first and second quarters and the 2020 full year. Number of Shares Grant Price Per Share Weighted Average Exercise Price 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 416,140 4.39-7.25 6.24 Granted 163,561 6.79 6.79 Cancelled (7,602 ) 4.89-7.25 5.96 Vested (1) (119,577 ) 4.39-7.25 6.09 Outstanding at March 31, 2021 452,522 4.80-7.25 6.48 Granted — — — Cancelled (10,332 ) 4.89-7.25 6.13 Vested (1) — — — Outstanding at June 30, 2021 442,190 $ 4.80-7.25 6.49 (1) The aggregate fair value of the restricted stock vested was $0 and $813,000 for the three and six months ended June 30, 2021 and was $0 and $553,000 for the three and six months ended June 30, 2020. (2) The aggregate fair value of the restricted stock was $3,918,000 as of June 30, 2021. The remaining vesting period was 3.68 years at June 30, 2021. During the six months ended June 30, 2021, the Company granted 16,803 restricted stock units, or RSUs, that vest on June 17, 2022 with a grant price of $8.87, and during the year ended December 31, 2020, granted 47,156 RSUs that vested on June 19, 2021 with a grant price of $3.16. For the RSUs granted in 2020 and 2019, unitholders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A, which was done for 47,272 units. The following table presents the activity for the unvested options outstanding under the plans for the 2021 first and second quarters. Number of Options Exercise Price Per Share Weighted Average Exercise Price Outstanding at December 31, 2020 773,362 $ 4.89-7.25 $ 6.42 Granted 317,398 6.79 6.79 Cancelled (2,530 ) 6.55-7.25 6.96 Vested (185,278 ) 6.55-7.25 6.67 Outstanding at March 31, 2021 902,952 4.89-7.25 6.50 Granted — — — Cancelled (33,134 ) 4.89-7.25 5.99 Vested (8,000 ) 5.58 5.58 Outstanding at June 30, 2021 861,818 $ 4.89-7.25 6.53 The intrinsic value of the options vested was $29,000 and $77,000 for the three and six months ended June 30, 2021. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | (9) 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 operated by the Bank and include loans in all fifty states, with the highest concentrations in Texas, Florida, and California at 14%, 9%, and 9% of loans outstanding and with no other states over 9% as of June 30, 2021. 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%, 20%, and 10% of the segment portfolio as of June 30, 2021. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in roofs, swimming pools, and windows at 29%, 27%, and 12% of total home improvement loans outstanding, and with no other product lines over 10% as of June 30, 2021. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 66% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, of which 85% were in New York City as of June 30, 2021. 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 prior year race season had been suspended from March 15, 2020 through May 17, 2020. As states reopened, NASCAR resumed races and completed all races scheduled in 2020. Commencing in the 2020 second quarter, the Bank began issuing loans related to its strategic partnership business, which is currently included within the corporate and other investment segment due to its small size. As part of 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 allocated to corporate and other investments. The following tables present segment data as of and for the three and six months ended June 30, 2021 and 2020. Consumer Lending Corp. Three Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 28,886 $ 8,228 $ 1,383 $ (1,475 ) $ — $ 353 $ 37,375 Total interest expense 2,863 1,143 716 2,524 34 604 7,884 Net interest income (loss) 26,023 7,085 667 (3,999 ) (34 ) (251 ) 29,491 Provision for loan losses (benefit) 1,017 756 — (2,943 ) — 488 (682 ) Net interest income (loss) after loss provision 25,006 6,329 667 (1,056 ) (34 ) (739 ) 30,173 Sponsorship and race winnings — — — — 4,345 — 4,345 Race team related expenses — — — — (2,674 ) — (2,674 ) Other income (expense), net (7,455 ) (2,638 ) (69 ) (1,157 ) (1,862 ) (543 ) (13,724 ) Net income (loss) before taxes 17,551 3,691 598 (2,213 ) (225 ) (1,282 ) 18,120 Income tax (provision) benefit (4,519 ) (951 ) (150 ) 556 57 (1,521 ) (6,528 ) Net income (loss) $ 13,032 $ 2,740 $ 448 $ (1,657 ) $ (168 ) $ (2,803 ) $ 11,592 Balance Sheet Data Total loans, net $ 855,900 $ 362,370 $ 66,236 $ 5,764 $ — $ 3,351 $ 1,293,621 Total assets 868,709 375,189 90,563 101,205 31,877 272,204 1,739,747 Total funds borrowed 712,777 295,887 72,450 80,959 8,016 212,020 1,382,109 Selected Financial Ratios Return on average assets 6.24 % 3.04 % 2.36 % (6.10 )% (1.05 )% (3.85 )% 2.43 % Return on average equity 31.19 15.19 11.78 (30.51 ) (39.70 ) (1.95 ) 12.90 Interest yield 14.03 9.48 9.16 (70.71 ) N/A N/A 11.17 Net interest margin 12.64 8.16 4.42 (189.15 ) N/A N/A 8.84 Reserve coverage 3.42 1.60 0.00 (1) 65.11 N/A N/A 3.50 Delinquency status (2) 0.32 0.02 0.11 (1) - N/A N/A 0.22 Charge-off ratio (0.44 ) 0.26 0.00 (3) 513.86 N/A N/A 3.28 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Six Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 56,328 $ 16,146 $ 2,865 $ (1,544 ) $ — $ 660 $ 74,455 Total interest expense 5,657 2,351 1,288 3,894 75 3,027 16,292 Net interest income (loss) 50,671 13,795 1,577 (5,438 ) (75 ) (2,367 ) 58,163 Provision for loan losses 4,630 1,206 — (3,987 ) — 487 2,336 Net interest income (loss) after loss provision 46,041 12,589 1,577 (1,451 ) (75 ) (2,854 ) 55,827 Sponsorship and race winnings — — — — 6,818 — 6,818 Race team related expenses — — — — (4,796 ) — (4,796 ) Other income (expense), net (12,918 ) (4,552 ) (529 ) (3,301 ) (3,623 ) (1,858 ) (26,781 ) Net income (loss) before taxes 33,123 8,037 1,048 (4,752 ) (1,676 ) (4,712 ) 31,068 Income tax (provision) benefit (8,529 ) (2,070 ) (263 ) 1,193 421 (1,158 ) (10,406 ) Net income (loss) $ 24,594 $ 5,967 $ 785 $ (3,559 ) $ (1,255 ) $ (5,870 ) $ 20,662 Balance Sheet Data Total loans, net $ 855,900 $ 362,370 $ 66,236 $ 5,764 $ — $ 3,351 $ 1,293,621 Total assets 868,709 375,189 90,563 101,205 31,877 272,204 1,739,747 Total funds borrowed 712,777 295,887 72,450 80,959 8,016 212,020 1,382,109 Selected Financial Ratios Return on average assets 6.06 % 3.39 % 1.95 % (6.29 )% (7.72 )% (4.08 )% 2.08 % Return on average equity 30.32 16.96 9.77 (31.44 ) (244.87 ) (30.46 ) 11.09 Interest yield 14.18 9.56 9.66 (30.90 ) N/A N/A 11.50 Net interest margin 12.76 8.17 5.32 (108.84 ) N/A N/A 9.01 Reserve coverage 3.42 1.60 0.00 (1) 65.11 N/A N/A 3.50 Delinquency status (2) 0.32 0.02 0.11 (1) — N/A N/A 0.22 Charge-off ratio 0.12 0.99 0.00 (3) 216.01 N/A N/A 2.15 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Three Months Ended June 30, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 27,229 $ 6,326 $ 1,726 $ (7 ) $ — $ 314 $ 35,588 Total interest expense 3,226 1,236 617 988 40 2,728 8,835 Net interest income (loss) 24,003 5,090 1,109 (995 ) (40 ) (2,414 ) 26,753 Provision for loan losses 8,292 760 - 7,889 — — 16,941 Net interest income (loss) after loss provision 15,711 4,330 1,109 (8,884 ) (40 ) (2,414 ) 9,812 Sponsorship and race winning — — — — 3,626 — 3,626 Race team related expenses — — — — (1,818 ) — (1,818 ) Other income (expense), net (6,497 ) (1,962 ) (584 ) (2,292 ) (1,378 ) (2,025 ) (14,738 ) Net income (loss) before taxes 9,214 2,368 525 (11,176 ) 390 (4,439 ) (3,118 ) Income tax (provision) benefit (2,356 ) (606 ) (131 ) 2,785 (97 ) 1,258 853 Net income (loss) $ 6,858 $ 1,762 $ 394 $ (8,391 ) $ 293 $ (3,181 ) $ (2,265 ) Balance Sheet Data as of June 30, 2020 Total loans, net $ 759,764 $ 278,000 $ 68,140 $ 84,369 $ — $ 3,344 $ 1,193,617 Total assets 775,151 288,501 86,831 190,657 30,542 280,061 1,651,743 Total funds borrowed 617,066 229,237 70,567 151,614 8,615 218,695 1,295,794 Selected Financial Ratios as of June 30, 2020 Return on average assets 3.68 % 2.58 % 1.86 % (17.19 )% 3.88 % (8.96 )% (0.98 )% Return on average equity 18.38 12.88 9.28 (85.96) (53.94) (38.05) (4.97) Interest yield 14.91 9.66 10.67 (0.03) N/A N/A 10.95 Net interest margin 13.15 7.77 6.86 (4.08) N/A N/A 8.23 Reserve coverage 3.43 1.44 — 29.84 N/A N/A 5.31 Delinquency status (2) 0.44 0.05 0.15 10.29 N/A N/A 1.26 Charge-off ratio 1.95 0.30 — 1.12 N/A N/A 1.39 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Six Months Ended June 30, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 53,563 $ 12,213 $ 3,484 $ 995 $ — $ 875 $ 71,130 Total interest expense 6,792 2,523 1,274 2,837 80 4,329 17,835 Net interest income (loss) 46,771 9,690 2,210 (1,842 ) (80 ) (3,454 ) 53,295 Provision for loan losses 18,893 2,296 — 12,293 — — 33,482 Net interest income (loss) after loss provision 27,878 7,394 2,210 (14,135 ) (80 ) (3,454 ) 19,813 Sponsorship and race winning — — — — 6,199 — 6,199 Race team related expenses — — — — (3,948 ) — (3,948 ) Other income (expense), net (13,869 ) (4,302 ) (1,479 ) (10,865 ) (3,223 ) (7,694 ) (41,432 ) Net income (loss) before taxes 14,009 3,092 731 (25,000 ) (1,052 ) (11,148 ) (19,368 ) Income tax (provision) benefit (3,582 ) (791 ) (182 ) 6,230 262 2,165 4,102 Net income (loss) $ 10,427 $ 2,301 $ 549 $ (18,770 ) $ (790 ) $ (8,983 ) $ (15,266 ) Balance Sheet Data as of June 30, 2020 Total loans, net $ 759,764 $ 278,000 $ 68,140 $ 84,369 $ — $ 3,344 $ 1,193,617 Total assets 775,151 288,501 86,831 190,657 30,542 280,061 1,651,743 Total funds borrowed 617,066 229,237 70,567 151,614 8,615 218,695 1,295,794 Selected Financial Ratios as of June 30, 2020 Return on average assets 2.85 % 1.72 % 1.30 % (18.56 )% (5.17 )% (7.14 )% -2.23 % Return on average equity 14.25 8.62 6.48 (92.14 ) 81.74 (26.03 ) (10.82 ) Interest yield 14.98 9.58 10.97 2.04 N/A N/A 11.31 Net interest margin 13.08 7.58 6.96 (3.78 ) N/A N/A 8.48 Reserve coverage 3.43 1.44 — 29.84 N/A N/A 5.31 Delinquency status (2) 0.44 0.05 0.15 10.29 N/A N/A 1.26 Charge-off ratio 2.78 0.65 — 3.73 N/A N/A 2.21 (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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) 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 generally 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. 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 $11,050,000. (B) OTHER COMMITMENTS The Company had no commitments to extend credit or make investments outstanding at June 30, 2021. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. (C) SEC MATTERS The staff of the SEC has conducted an investigation of the Company relating to certain issues that occurred during the period 2015 to 2017, including (i) the Company’s retention of third parties in 2015 and 2016 concerning posting information about the Company on certain financial websites and (ii) the Company’s financial reporting and disclosures concerning certain assets, including Medallion Bank, in 2016 and 2017, a period when the Company had previously reported as a business development company (“BDC”) under the Investment Company Act of 1940. Since April 2018, the Company does not report as a BDC, and has not worked with such third parties since 2016. The Company is currently engaged in active discussions and is cooperating with the SEC staff regarding a potential settlement of all aspects of the investigation, which is expected to include a civil fine in an amount that is not currently estimable, but which may be material. There can be no (D) 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 except as described above, 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. (E) REGULATORY In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of FSVC’s transfer to liquidation status and the restructure of the FSVC loan described in Note 5. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (11) RELATED PARTY TRANSACTIONS Certain directors, officers and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company. Jeffrey Rudnick, the son of one of the Company’s directors, was an officer of LAX Group, LLC (LAX), one of the Company’s equity investments that sold its assets on December 16, 2020. In January 2020, Mr. Rudnick received 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 $7,516,000 that earns interest at an annual rate of 2% through June 30, 2021, none of which has been paid to date. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Investments All Other Investments [Abstract] | |
Fair Value of Financial Instruments | (12) FAIR VALUE OF FINANCIAL INSTRUMENTS FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet commitments, if practicable. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. Fair value estimates that were derived from broker quotes cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. (a) Book value equals fair value. (b) The Company’s equity securities are recorded at cost less any 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 approximated 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 June 30, 2021 and December 31, 2020, 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. June 30, 2021 December 31, 2020 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash, cash equivalents and federal funds sold (1) $ 91,553 $ 91,553 $ 112,040 $ 112,040 Equity investments 10,090 10,090 9,746 9,746 Investment securities 48,307 48,307 46,792 46,792 Loans receivable 1,293,621 1,293,621 1,172,290 1,172,290 Accrued interest receivable (2) 9,525 9,525 10,338 10,338 Equity securities (3) 1,969 1,969 — — Financial liabilities Funds borrowed (4) 1,382,109 1,382,109 1,312,255 1,312,591 Accrued interest payable (2) 3,883 3,883 4,673 4,673 (1) Categorized as level 1 within the fair value hierarchy, excluding $1,250 and $1,500 in interest bearing deposits categorized as level 2 as of June 30, 2021 and December 31, 2020. See Note 13. (2) Categorized as level 3 within the fair value hierarchy. See Note 13. (3) Included within other assets on the balance sheet. ( 4 ) There were no publicly traded retail notes as of June 30, 2021. As of December 31, 2020, publicly traded retail notes traded at a premium to par of $336. |
Fair Value of Assets and liabil
Fair Value of Assets and liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and liabilities | (13) FAIR VALUE OF ASSETS AND LIABILITIES The Company follows the provisions of FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. In accordance with FASB ASC 820, the Company has categorized its assets and liabilities measured at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). 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 tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. June 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 48,307 — 48,307 Equity securities 1,969 — — 1,969 Total (1) $ 1,969 $ 49,557 $ — $ 51,526 (1) Total unrealized gain (loss) of $27 and ($578), net of tax, was included in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 related to these assets. 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 (1) — 46,792 — 46,792 Total $ — $ 48,292 $ — $ 48,292 (1) Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020. June 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,090 $ 10,090 Impaired loans — — 40,770 40,770 Loan collateral in process of foreclosure — — 49,039 49,039 Total $ — $ — $ 99,899 $ 99,899 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 Significant Unobservable Inputs ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company. The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of June 30, 2021 and December 31, 2020. (Dollars in thousands) Fair Value at 6/30/21 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity investments $ 9,271 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 819 Precedent market transaction Offering price $8.73 / share Impaired loans 40,770 Market approach Historical and actual loss experience 1.50% - 6.00% 60% of balance Transfer prices (2) $0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 49,039 Market approach Transfer prices (2) $0.0 - 79.5 Collateral value (3) $1.8 - 31.5 (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 Transfer prices (2) $0.6 - 108.7 Collateral value N/A Loan collateral in process of foreclosure 53,128 Market approach Transfer prices (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. |
Medallion Bank Preferred Stock
Medallion Bank Preferred Stock (Non-controlling Interest) | 6 Months Ended |
Jun. 30, 2021 | |
Medallion Bank [Member] | |
Medallion Bank Preferred Stock (Non-controlling Interest) | (14) MEDALLION BANK PREFERRED STOCK (Non-controlling interest) On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46,000,000 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. The Bank pays a dividend rate of 9% on the Series E. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities | (15) VARIABLE INTEREST ENTITIES During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are considered a variable interest. This conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty. See Note 5 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 June 30, 2021 and December 31, 2020. In addition, the Company 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 $85,451,000, currently terminates on August 20, 2021. Borrowings under the DZ loan are collateralized by Trust III’s assets. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (16) SUBSEQUENT EVENTS |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the 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 loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. 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 $1,250,000 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, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements. |
Equity Investments | Equity Investments The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10,090,000 and $9,746,000 at June 30, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of June 30, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change. In the 2021 second quarter, the Company sold 1,166,667 shares of its investment in Upgrade, Inc. for proceeds of $3,816,000 and recognized a gain on the sale of $3,179,000. The Company continued to hold 1,500,000 shares of Upgrade, Inc. at a cost of $819,000 as of June 30, 2021. In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,969,000 as of June 30, 2021 are included in other assets on the consolidated balance sheet. The table below presents the unrealized portion related to the equity securities held as of June 30, 2021. (Dollars in thousands) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Net losses recognized during the period on equity securities $ (3 ) $ (31 ) Less: Net gains (losses) recognized during the period on equity securities sold during the period — — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (3 ) $ (31 ) |
Investment Securities | Investment Securities The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $337,000 at June 30, 2021 and $278,000 at December 31, 2020, and $38,000 and $81,000 was amortized to interest income for the three and six months ended June 30, 2021 and $79,000 and $134,000 was amortized to interest income for the three and six months ended June 30, 2020. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. |
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 June 30, 2021 and December 31, 2020, net loan origination costs were $24,074,000 and $20,684,000. Net amortization to income for the three months ended June 30, 2021 and 2020 was $2,067,000 and $1,587,000 and was $3,723,000 and $2,891,000 for the six months ended June 30, 2021 and 2020. Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer loan portfolio has different characteristics, typified by a larger number of 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 by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $2,912,000 at June 30, 2021, or 0.22% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants 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 the third quarter 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 recreation loans is to take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the 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 $0 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at June 30, 2021 and December 31, 2020. 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 $107,624,000 at June 30, 2021 and $107,131,000 at December 31, 2020. 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 primarily to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of June 30, 2021 and December 31, 2020. |
Allowance for Loan Losses | Allowance for Loan Losses 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 collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as mor e 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 2020 . In addition, the Company determined that anticipated payment activity on the medallion portfolio w as impossible to quantify upon exit of the six- month deferral period with borrowers , and therefore deemed all such loans as impaired in the third quarter of 2020 . As a result, all medallion loans were placed on nonaccrual and written down to collateral value , net of liquidation costs, of $ for New York City medallions . T he Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Ha d there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more pas t 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. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of June 30, 2021, December 31, 2020, and June 30, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,368,000, $51,090,000, and $51,814,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended June 30, 2021 and 2020, and $722,000 and $722,000 of amortization expense on the intangible assets for the six months ended June 30, 2021 and 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $835,000, $2,717,000, and $5,251,000 were outstanding at June 30, 2021, December 31, 2020, and June 30, 2020, and of which $1,695,000 and $179,000 was amortized to interest income for the three months ended June 30, 2021 and 2020, and of which $1,882,000 and $508,000 was amortized to interest income for the six months ended June 30, 2021 and 2020. The table below shows the details of the intangible assets as of the dates presented. (Dollars in thousands) June 30, 2021 December 31, 2020 Brand-related intellectual property $ 18,425 $ 18,974 Home improvement contractor relationships 5,778 5,951 Race organization 26,165 26,165 Total intangible assets, net $ 50,368 $ 51,090 |
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 $75,000 and $139,000 for the three months ended June 30, 2021 and 2020, and was $159,000 and $261,000 for the six months ended June 30, 2021 and 2020. |
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 $592,000 and $586,000 for the three months ended June 30, 2021 and 2020, and was $1,237,000 and $1,308,000 for the six months ended June 30, 2021 and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes w ere $ 7,054,000 , $ , and $ 4,709,000 as of June 30, 2021 , December 31, 2020 , and June 30, 2020 . |
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) resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2021 2020 2021 2020 Net income (loss) resulting from operations available to common stockholders $ 10,267 $ (3,977 ) $ 18,698 $ (17,620 ) Weighted average common shares outstanding applicable to basic EPS 24,595,822 24,444,677 24,557,511 24,423,225 Effect of dilutive stock options 127,493 — 74,331 — Effect of restricted stock grants 227,197 — 291,181 — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,950,512 24,444,677 24,923,023 24,423,225 Basic income (loss) per share $ 0.42 $ (0.16 ) $ 0.76 $ (0.72 ) Diluted income (loss) per share 0.41 (0.16 ) 0.75 (0.72 ) Potentially dilutive common shares excluded from the above calculations aggregated 396,373 and 851,272 shares as of June 30, 2021 and 2020. |
Stock Compensation | Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock. During the six months ended June 30, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued 16,803 restricted stock units; and recognized $576,000 and $1,074,000, or $0.02 and $0.04 per share, for the three and six months ended June 30, 2021, and $520,000 and $987,000, or $0.02 and $0.04 per share for the three and six months ended June 30, 2020, of non-cash stock-based compensation expense related to the grants. As of June 30, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $3,481,000, which is expected to be recognized over the next 15 quarters |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors. FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions with, such as certain purchases of assets, the Company or its affiliates. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table 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%, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of June 30, 2021, the Bank’s Tier 1 leverage ratio was 18.09%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well- Capitalized June 30, 2021 December 31, 2020 Common equity Tier 1 capital — — $ 172,775 $ 148,507 Tier 1 capital — — 241,563 217,295 Total capital — — 258,880 233,460 Average assets — — 1,335,205 1,283,664 Risk-weighted assets — — 1,349,840 1,243,783 Leverage ratio (1) 4.0 % 5.0 % 18.1 % 16.9 % Common equity Tier 1 capital ratio (2) 7.0 6.5 12.8 11.9 Tier 1 capital ratio (3) 8.5 8.0 17.9 17.5 Total capital ratio (3) 10.5 10.0 19.2 18.8 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of June 30, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2021 and December 31, 2020. |
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, or ASU 2016-13. 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) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Unrealized Portion Related to Equity Securities | The table below presents the unrealized portion related to the equity securities held as of June 30, 2021. (Dollars in thousands) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Net losses recognized during the period on equity securities $ (3 ) $ (31 ) Less: Net gains (losses) recognized during the period on equity securities sold during the period — — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (3 ) $ (31 ) |
Schedule of Intangible Assets | The table below shows the details of the intangible assets as of the dates presented. (Dollars in thousands) June 30, 2021 December 31, 2020 Brand-related intellectual property $ 18,425 $ 18,974 Home improvement contractor relationships 5,778 5,951 Race organization 26,165 26,165 Total intangible assets, net $ 50,368 $ 51,090 |
Summary of the Calculation of Basic and Diluted EPS | The table below shows the calculation of basic and diluted EPS. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share and per share data) 2021 2020 2021 2020 Net income (loss) resulting from operations available to common stockholders $ 10,267 $ (3,977 ) $ 18,698 $ (17,620 ) Weighted average common shares outstanding applicable to basic EPS 24,595,822 24,444,677 24,557,511 24,423,225 Effect of dilutive stock options 127,493 — 74,331 — Effect of restricted stock grants 227,197 — 291,181 — Adjusted weighted average common shares outstanding applicable to diluted EPS 24,950,512 24,444,677 24,923,023 24,423,225 Basic income (loss) per share $ 0.42 $ (0.16 ) $ 0.76 $ (0.72 ) Diluted income (loss) per share 0.41 (0.16 ) 0.75 (0.72 ) |
Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios | The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table. Regulatory (Dollars in thousands) Minimum Well- Capitalized June 30, 2021 December 31, 2020 Common equity Tier 1 capital — — $ 172,775 $ 148,507 Tier 1 capital — — 241,563 217,295 Total capital — — 258,880 233,460 Average assets — — 1,335,205 1,283,664 Risk-weighted assets — — 1,349,840 1,243,783 Leverage ratio (1) 4.0 % 5.0 % 18.1 % 16.9 % Common equity Tier 1 capital ratio (2) 7.0 6.5 12.8 11.9 Tier 1 capital ratio (3) 8.5 8.0 17.9 17.5 Total capital ratio (3) 10.5 10.0 19.2 18.8 (1) Calculated by dividing Tier 1 capital by average assets. (2) Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets. (3) Calculated by dividing Tier 1 or total capital by risk-weighted assets. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule Of Investments [Abstract] | |
Summary of Fixed Maturity Securities Available for Sale | Fixed maturity securities available for sale at June 30, 2021 and December 31, 2020 consisted of the following: June 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ 39,553 $ 1,009 $ (239 ) $ 40,323 State and municipalities 7,919 106 (41 ) 7,984 Total $ 47,472 $ 1,115 $ (280 ) $ 48,307 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 |
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity | The amortized cost and estimated market value of investment securities at June 30, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 20 $ 20 Due after one year through five years 8,502 8,775 Due after five years through ten years 13,451 13,906 Due after ten years 25,499 25,606 Total $ 47,472 $ 48,307 |
Summary of Securities with Gross Unrealized Losses | The following tables show information pertaining to securities with gross unrealized losses at June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position. Less than Twelve Months Twelve Months and Over June 30, 2021 (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Mortgage-backed securities, principally obligations of US federal agencies $ (183 ) $ 11,444 $ (55 ) $ 1,910 State and municipalities (40 ) 1,960 (2 ) 128 Total $ (223 ) $ 13,404 $ (57 ) $ 2,038 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 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Summary of Inclusive Capitalized Loans | The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 (Dollars in thousands) Amount As a Percent of Gross Loans Amount As a Percent of Gross Loans Recreation $ 886,206 66 % $ 792,686 65 % Home improvement 368,257 28 334,033 27 Commercial 69,520 5 65,327 5 Medallion 16,514 1 37,768 3 Strategic partnership 70 — 24 — Total gross loans 1,340,567 100 % 1,229,838 100 % Allowance for loan losses (46,946 ) (57,548 ) Total net loans $ 1,293,621 $ 1,172,290 |
Schedule of Activity of Gross Loans | The following table s show the activity of the gross loans for the three and six months ended June 30, 2021 and 20 20 . Three Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – March 31, 2021 $ 822,932 $ 342,121 $ 58,854 $ 35,250 $ 58 $ 1,259,215 Loan originations 134,467 62,992 11,059 — 2,426 210,944 Principal payments, sales, and maturities (70,672 ) (36,729 ) (564 ) (2,389 ) (2,414 ) (112,768 ) Charge-offs, net 916 (228 ) — (10,869 ) — (10,181 ) Transfer to loan collateral in process of foreclosure, net (2,980 ) — — (3,933 ) — (6,913 ) Amortization of origination costs (2,477 ) 410 — — — (2,067 ) Amortization of loan premium (60 ) (90 ) — (1,545 ) — (1,695 ) FASB origination costs 4,080 (219 ) 1 — — 3,862 Paid-in-kind interest — — 170 — — 170 Gross loans – June 30, 2021 $ 886,206 $ 368,257 $ 69,520 $ 16,514 $ 70 $ 1,340,567 Six Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – December 31, 2020 $ 792,686 $ 334,033 $ 65,327 $ 37,768 $ 24 $ 1,229,838 Loan originations 228,317 111,051 15,216 — 4,370 358,954 Principal payments, sales and maturities (129,100 ) (76,797 ) (11,541 ) (4,214 ) (4,324 ) (225,976 ) Charge-offs, net (1,668 ) (477 ) — (10,793 ) — (12,938 ) Transfer to loan collateral in process of foreclosure, net (6,033 ) — — (4,630 ) — (10,663 ) Amortization of origination costs (4,639 ) 907 11 (2 ) — (3,723 ) Amortization of loan premium (101 ) (166 ) — (1,615 ) — (1,882 ) FASB origination costs 6,744 (294 ) 12 — — 6,462 Paid-in-kind interest — — 495 — — 495 Gross loans – June 30, 2021 $ 886,206 $ 368,257 $ 69,520 $ 16,514 $ 70 $ 1,340,567 Three Months Ended June 30, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Medallion Strategic Partnership Total Gross loans – March 31, 2020 $ 735,175 $ 255,899 $ 68,257 $ 124,448 $ — $ 1,183,779 Loan originations 106,206 44,713 3,000 — 153 154,072 Principal payments, sales and maturities (49,457 ) (18,496 ) (132 ) (1,687 ) (145 ) (69,917 ) Charge-offs, net (3,565 ) (196 ) — (260 ) — (4,021 ) Transfer to loan collateral in process of foreclosure, net (3,003 ) — — (2,185 ) — (5,188 ) Amortization of origination costs (2,031 ) 455 2 (13 ) — (1,587 ) Amortization of loan premium (51 ) (82 ) — (46 ) — (179 ) FASB origination costs 3,511 (221 ) 8 (4 ) — 3,294 Paid-in-kind interest — — 341 — — 341 Gross loans – June 30, 2020 $ 786,785 $ 282,072 $ 71,476 $ 120,253 $ 8 $ 1,260,594 Six Months Ended June 30, 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 175,850 78,178 5,175 — 153 259,356 Principal payments, sales and maturities (86,529 ) (42,720 ) (4,112 ) (3,780 ) (145 ) (137,286 ) Charge-offs, net (9,946 ) (832 ) — (1,820 ) — (12,598 ) Transfer to loan collateral in process of foreclosure, net (7,781 ) — — (4,344 ) — (12,125 ) Amortization of origination costs (3,760 ) 896 4 (31 ) — (2,891 ) Amortization of loan premium (103 ) (168 ) — (237 ) — (508 ) FASB origination costs 5,722 (606 ) 8 33 — 5,157 Paid-in-kind interest — — 634 — — 634 Gross loans – June 30, 2020 $ 786,785 $ 282,072 $ 71,476 $ 120,253 $ 8 $ 1,260,594 |
Summary of Activity in Allowance for Loan Losses | The following table sets forth the activity in the allowance for loan losses for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Allowance for loan losses – beginning balance $ 57,809 $ 54,057 $ 57,548 $ 46,093 Charge-offs Recreation (2,672 ) (5,708 ) (7,725 ) (13,951 ) Home improvement (786 ) (548 ) (1,467 ) (1,558 ) Commercial — — — — Medallion (12,791 ) (1,771 ) (13,905 ) (3,696 ) Total charge-offs (16,249 ) (8,027 ) (23,097 ) (19,205 ) Recoveries Recreation 3,588 2,143 6,057 4,005 Home improvement 558 352 990 726 Commercial — — — — Medallion 1,922 1,511 3,112 1,876 Total recoveries 6,068 4,006 10,159 6,607 Net charge-offs (1) (10,181 ) (4,021 ) (12,938 ) (12,598 ) Provision for loan losses (682 ) 16,941 2,336 33,482 Allowance for loan losses – ending balance (2) $ 46,946 $ 66,977 $ 46,946 $ 66,977 ( 1 ) As of June 30, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $299,205, some of which may represent collection opportunities for the Company. (2) As of June 30, 2021, 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 June 30, 2021 and December 31, 2020 . June 30, 2021 (Dollars in thousands) Amount Percentage of Allowance Allowance as a Percent of Loan Category Allowance as a Percent of Nonaccrual Recreation $ 30,306 64 % 3.42 % 633.25 % Home improvement 5,890 13 1.60 NM Commercial — — — — Medallion 10,750 23 65.11 65.11 Total $ 46,946 100 % 3.50 % 116.26 % 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 % |
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. (Dollars in thousands) June 30, 2021 December 31, 2020 June 30, 2020 Total nonaccrual loans $ 40,381 $ 61,767 $ 81,539 Interest foregone quarter to date 521 2,306 1,202 Amount of foregone interest applied to principal in the quarter 121 595 8 Interest foregone year to date 889 3,311 1,734 Amount of foregone interest applied to principal year to date 253 602 57 Interest foregone life to date 4,127 5,252 4,171 Amount of foregone interest applied to principal life to date 789 792 973 Percentage of nonaccrual loans to gross loan portfolio 3 % 5 % 6 % Percentage of allowance for loan losses to nonaccrual loans 116 % 93 % 82 % |
Summary of Performance Status of Loan | The following tables present the performance status of loans as of June 30, 2021 and December 31, 2020 . June 30, 2021 (Dollars in thousands) Performing Nonperforming Total Percentage of Nonperforming to Total Recreation $ 881,029 $ 5,177 $ 886,206 0.58 % Home improvement 368,188 69 368,257 0.02 Commercial 50,510 19,010 69,520 27.34 Medallion — 16,514 16,514 100.00 Strategic partnership 70 — 70 — Total $ 1,299,797 $ 40,770 $ 1,340,567 3.04 % 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 — Total $ 1,167,664 $ 62,174 $ 1,229,838 5.06 % (1) Includes medallion loan premiums of $1,615 at December 31, 2020. |
Summary of Attributes of Nonperforming Loan Portfolio | The following tables provide additional information on attributes of the nonperforming loan portfolio as of June 30, 2021 and 2020, and December 31, 2020, all of which had an allowance recorded against the principal balance. June 30, 2021 December 31, 2020 June 30, 2020 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With an allowance recorded Recreation $ 5,177 $ 5,177 $ 179 $ 7,639 $ 7,639 $ 264 $ 5,312 $ 5,312 $ 243 Home improvement 69 69 1 171 171 3 137 137 2 Commercial 19,010 19,019 — 16,596 16,600 — 15,246 15,251 — Medallion 16,516 17,296 10,753 37,768 38,368 25,043 61,230 61,555 35,838 Total nonperforming loans with an allowance $ 40,772 $ 41,561 $ 10,933 $ 62,174 $ 62,778 $ 25,310 $ 81,925 $ 82,255 $ 36,083 For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 (Dollars in thousands) Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized Average Investment Recorded Interest Income Recognized With an allowance recorded Recreation $ 4,799 $ 180 $ 4,912 $ 323 $ 5,544 $ 158 $ 5,653 $ 299 Home improvement 74 — 75 — 137 1 137 1 Commercial 19,210 — 19,788 — 15,360 — 15,359 1 Medallion 18,517 — 18,568 — 54,418 203 63,731 605 Total nonperforming loans with an allowance $ 42,600 $ 180 $ 43,343 $ 323 $ 75,459 $ 362 $ 84,880 $ 906 |
Summary of Aging of Loans | The following tables show the aging of all loans as of June 30, 2021 and December 31, 2020. Days Past Due June 30, 2021 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Recorded Investment 90 Days and Accruing Recreation $ 12,185 $ 3,473 $ 2,769 $ 18,427 $ 840,464 $ 858,891 $ — Home improvement 663 161 69 893 369,770 370,663 — Commercial — 1,816 74 1,890 67,700 69,590 — Medallion 375 9,167 — 9,542 6,974 16,516 — Strategic partnership — — — — 70 70 — Total $ 13,223 $ 14,617 $ 2,912 $ 30,752 $ 1,284,978 $ 1,315,730 $ — (1) Excludes loan premiums of $835 resulting from purchase price accounting and $24,074 of capitalized loan origination costs. Days Past Due December 31, 2020 (Dollars in thousands) 30-59 60-89 90 + Total Current Total (1) Recorded Investment 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. |
Summary of TDRs | The following table shows the TDRs which the Company entered into during the three months and six months ended June 30, 2021. (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Three months ended June 30, 2021 Recreation 21 $ 302 $ 302 Medallion 2 256 256 Six months ended June 30, 2021 Recreation 39 $ 474 $ 468 Medallion 10 2,994 2,994 The following table shows the TDRs which the Company entered into during the three and six months ended June 30, 2020 . (Dollars in thousands) Number of Loans Pre- Modification Investment Post- Modification Investment Three months ended June 30, 2020 Recreation 21 $ 231 $ 185 Medallion 17 12,519 12,519 Six months ended June 30, 2020 Recreation 51 $ 633 $ 426 Medallion 30 13,641 13,641 |
Summary of Activities of the Loan Collateral Process of Foreclosure Related to Recreation and Medallion Loans | The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2021 $ 970 $ 49,763 $ 50,733 Transfer from loans, net 2,980 3,933 6,913 Sales (1,989 ) (231 ) (2,220 ) Cash payments received — (3,146 ) (3,146 ) Collateral valuation adjustments (1,079 ) (2,162 ) (3,241 ) Loan collateral in process of foreclosure – June 30, 2021 $ 882 $ 48,157 $ 49,039 Six Months Ended June 30, 2021 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – December 31, 2020 $ 1,432 $ 53,128 $ 54,560 Transfer from loans, net 6,033 4,630 10,663 Sales (4,288 ) (231 ) (4,519 ) Cash payments received — (4,423 ) (4,423 ) Collateral valuation adjustments (2,295 ) (4,947 ) (7,242 ) Loan collateral in process of foreclosure – June 30, 2021 $ 882 $ 48,157 $ 49,039 Three Months Ended June 30, 2020 (Dollars in thousands) Recreation Medallion Total Loan collateral in process of foreclosure – March 31, 2020 $ 1,717 $ 45,100 $ 46,817 Transfer from loans, net 3,003 2,185 5,188 Sales (1,988 ) — (1,988 ) Cash payments received — (185 ) (185 ) Collateral valuation adjustments (1,474 ) (983 ) (2,457 ) Loan collateral in process of foreclosure – June 30, 2020 $ 1,258 $ 46,117 $ 47,375 Six Months Ended June 30, 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 7,781 4,344 12,125 Sales (3,986 ) (300 ) (4,286 ) Cash payments received — (1,893 ) (1,893 ) Collateral valuation adjustments (4,013 ) (7,269 ) (11,282 ) Loan collateral in process of foreclosure – June 30, 2020 $ 1,258 $ 46,117 $ 47,375 |
Funds Borrowed (Tables)
Funds Borrowed (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances of Funds Borrowed | The outstanding balances of funds borrowed were as follows: Payments Due for the Twelve Months Ending June 30, (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter June 30, 2021 (1) December 31, 2020 (1) Interest Rate (2) Deposits (3) $ 469,737 $ 182,911 $ 226,592 $ 143,797 $ 131,077 $ — $ 1,154,114 $ 1,067,822 1.38 % Retail and privately placed notes — — 36,000 — 31,250 53,750 121,000 68,008 7.66 % SBA debentures and borrowings — 5,000 13,029 12,500 15,500 18,500 64,529 103,225 2.74 % Preferred securities — — — — — 33,000 33,000 33,000 2.26 % Notes payable to banks 280 280 140 — — — 700 31,261 4.00 % Other borrowings 8,016 — — — — — 8,016 8,689 2.00 % Total $ 478,033 $ 188,191 $ 275,761 $ 156,297 $ 177,827 $ 105,250 $ 1,381,359 $ 1,312,005 2.04 % (1) Excludes deferred financing costs of $7,054 and $5,805 as of June 30, 2021 and December 31, 2020. ( 2 ) Weighted average contractual rate as of June 30, 2021. (3) Balance excludes $750 and $250 of strategic partner reserve deposits as of June 30, 2021 and December 31, 2020. |
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 June 30, 2021. (Dollars in thousands) June 30, 2021 Three months or less $ 133,194 Over three months through six months 122,023 Over six months through one year 214,520 Over one year 684,377 Total deposits $ 1,154,114 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs and Additional Information | The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Operating lease costs $ 572 $ 596 $ 1,144 $ 1,192 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 590 632 1,265 1,324 Right-of-use asset obtained in exchange for lease liability (18 ) (14 ) (36 ) (28 ) |
Schedule of Breakout of Operating leases | The following table presents the breakout of the operating leases as of June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Operating lease right-of-use assets $ 10,750 $ 11,737 Other current liabilities 2,111 2,004 Operating lease liabilities 9,889 11,018 Total operating lease liabilities 12,000 13,022 Weighted average remaining lease term 5.9 years 6.4 years Weighted average discount rate 5.54 % 5.54 % |
Schedule of Maturities of the Lease Liabilities | At June 30, 2021, maturities of the lease liabilities were as follows: (Dollars in thousands) Remainder of 2021 $ 1,247 2022 2,411 2023 2,356 2024 2,373 2025 2,390 Thereafter 3,521 Total lease payments $ 14,298 Less imputed interest 2,298 Total operating lease liabilities $ 12,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Goodwill and other intangibles $ (44,145 ) $ (44,799 ) Provision for loan losses 14,308 19,556 Net operating loss carryforwards (1) 25,393 30,493 Accrued expenses, compensation, and other assets 1,676 1,174 Unrealized gains on other investments (3,528 ) (6,769 ) Total deferred tax liability (6,296 ) (345 ) Valuation allowance (2,295 ) (462 ) Deferred tax liability, net (8,591 ) (807 ) Taxes receivable 1,072 1,757 Net deferred and other tax assets (liabilities) $ (7,519 ) $ 950 (1) As of June 30, 2021, the Company and its subsidiaries had an estimated $103,838 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $23,098 as of June 30, 2021. |
Summary of Components of Tax (Provision) Benefit | The components of our tax (provision) benefit for the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Current Federal $ (795 ) $ — $ (795 ) $ — State (100 ) (137 ) (270 ) (223 ) Deferred Federal (3,001 ) 774 (6,054 ) 3,299 State (2,632 ) 216 (3,287 ) 1,026 Net (provision) benefit for income taxes $ (6,528 ) $ 853 $ (10,406 ) $ 4,102 |
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 for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Statutory Federal income tax (provision) benefit at 21% $ (3,805 ) $ 655 $ (6,524 ) $ 4,067 State and local income taxes, net of federal income tax benefit (743 ) 122 (1,275 ) 760 Valuation allowance against net operating losses (1,833 ) — (1,833 ) — Change in effective state income tax rates and accrual (1,399 ) 196 (1,369 ) 149 Income attributable to non-controlling interest 47 50 266 (166 ) Non deductible expenses 385 (198 ) 213 (789 ) Other 820 28 116 81 Total income tax (provision) benefit $ (6,528 ) $ 853 $ (10,406 ) $ 4,102 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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. Six Months Ended June 30, 2021 2020 Risk free interest rate 0.97 % 1.46 % Expected dividend yield — — Expected life of option in years (1) 6.25 6.25 Expected volatility (2) 53.98 50.18 (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 2021 first and second quarters and the 2020 full year. Number of Options Exercise Price Per Share Weighted Average Exercise Price 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 951,669 2.14-12.55 6.41 Granted 317,398 6.79 6.79 Cancelled (3,984 ) 6.55-7.25 6.89 Exercised (1) (768 ) 6.55-7.25 6.79 Outstanding at March 31, 2021 1,264,315 2.14-12.55 6.50 Granted — — — Cancelled (32,446 ) 4.89-7.25 5.98 Exercised (1) (22,227 ) 5.27-7.25 5.76 Outstanding at June 30, 2021 1,209,642 2.14-12.55 6.53 Options exercisable at June 30, 2021 (2) 347,824 2.14-12.55 6.53 (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 $77,000 and $0 for the three and six months ended June 30, 2021 and 2020. (2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at June 30, 2021 and the related exercise price of the underlying options, was $2,854,000 for outstanding options and $844,000 for exercisable options as of June 30, 2021. The remaining contractual life was 8.50 years for outstanding options and 7.47 years for exercisable options at June 30, 2021. |
Summary of Activity for Restricted Stock Programs | The following table presents the activity for the restricted stock programs for the 2021 first and second quarters and the 2020 full year. Number of Shares Grant Price Per Share Weighted Average Exercise Price 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 416,140 4.39-7.25 6.24 Granted 163,561 6.79 6.79 Cancelled (7,602 ) 4.89-7.25 5.96 Vested (1) (119,577 ) 4.39-7.25 6.09 Outstanding at March 31, 2021 452,522 4.80-7.25 6.48 Granted — — — Cancelled (10,332 ) 4.89-7.25 6.13 Vested (1) — — — Outstanding at June 30, 2021 442,190 $ 4.80-7.25 6.49 (1) The aggregate fair value of the restricted stock vested was $0 and $813,000 for the three and six months ended June 30, 2021 and was $0 and $553,000 for the three and six months ended June 30, 2020. (2) The aggregate fair value of the restricted stock was $3,918,000 as of June 30, 2021. The remaining vesting period was 3.68 years at June 30, 2021. |
Summary of Activity for Unvested Options Outstanding | The following table presents the activity for the unvested options outstanding under the plans for the 2021 first and second quarters. Number of Options Exercise Price Per Share Weighted Average Exercise Price Outstanding at December 31, 2020 773,362 $ 4.89-7.25 $ 6.42 Granted 317,398 6.79 6.79 Cancelled (2,530 ) 6.55-7.25 6.96 Vested (185,278 ) 6.55-7.25 6.67 Outstanding at March 31, 2021 902,952 4.89-7.25 6.50 Granted — — — Cancelled (33,134 ) 4.89-7.25 5.99 Vested (8,000 ) 5.58 5.58 Outstanding at June 30, 2021 861,818 $ 4.89-7.25 6.53 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Data | The following tables present segment data as of and for the three and six months ended June 30, 2021 and 2020. Consumer Lending Corp. Three Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 28,886 $ 8,228 $ 1,383 $ (1,475 ) $ — $ 353 $ 37,375 Total interest expense 2,863 1,143 716 2,524 34 604 7,884 Net interest income (loss) 26,023 7,085 667 (3,999 ) (34 ) (251 ) 29,491 Provision for loan losses (benefit) 1,017 756 — (2,943 ) — 488 (682 ) Net interest income (loss) after loss provision 25,006 6,329 667 (1,056 ) (34 ) (739 ) 30,173 Sponsorship and race winnings — — — — 4,345 — 4,345 Race team related expenses — — — — (2,674 ) — (2,674 ) Other income (expense), net (7,455 ) (2,638 ) (69 ) (1,157 ) (1,862 ) (543 ) (13,724 ) Net income (loss) before taxes 17,551 3,691 598 (2,213 ) (225 ) (1,282 ) 18,120 Income tax (provision) benefit (4,519 ) (951 ) (150 ) 556 57 (1,521 ) (6,528 ) Net income (loss) $ 13,032 $ 2,740 $ 448 $ (1,657 ) $ (168 ) $ (2,803 ) $ 11,592 Balance Sheet Data Total loans, net $ 855,900 $ 362,370 $ 66,236 $ 5,764 $ — $ 3,351 $ 1,293,621 Total assets 868,709 375,189 90,563 101,205 31,877 272,204 1,739,747 Total funds borrowed 712,777 295,887 72,450 80,959 8,016 212,020 1,382,109 Selected Financial Ratios Return on average assets 6.24 % 3.04 % 2.36 % (6.10 )% (1.05 )% (3.85 )% 2.43 % Return on average equity 31.19 15.19 11.78 (30.51 ) (39.70 ) (1.95 ) 12.90 Interest yield 14.03 9.48 9.16 (70.71 ) N/A N/A 11.17 Net interest margin 12.64 8.16 4.42 (189.15 ) N/A N/A 8.84 Reserve coverage 3.42 1.60 0.00 (1) 65.11 N/A N/A 3.50 Delinquency status (2) 0.32 0.02 0.11 (1) - N/A N/A 0.22 Charge-off ratio (0.44 ) 0.26 0.00 (3) 513.86 N/A N/A 3.28 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Six Months Ended June 30, 2021 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 56,328 $ 16,146 $ 2,865 $ (1,544 ) $ — $ 660 $ 74,455 Total interest expense 5,657 2,351 1,288 3,894 75 3,027 16,292 Net interest income (loss) 50,671 13,795 1,577 (5,438 ) (75 ) (2,367 ) 58,163 Provision for loan losses 4,630 1,206 — (3,987 ) — 487 2,336 Net interest income (loss) after loss provision 46,041 12,589 1,577 (1,451 ) (75 ) (2,854 ) 55,827 Sponsorship and race winnings — — — — 6,818 — 6,818 Race team related expenses — — — — (4,796 ) — (4,796 ) Other income (expense), net (12,918 ) (4,552 ) (529 ) (3,301 ) (3,623 ) (1,858 ) (26,781 ) Net income (loss) before taxes 33,123 8,037 1,048 (4,752 ) (1,676 ) (4,712 ) 31,068 Income tax (provision) benefit (8,529 ) (2,070 ) (263 ) 1,193 421 (1,158 ) (10,406 ) Net income (loss) $ 24,594 $ 5,967 $ 785 $ (3,559 ) $ (1,255 ) $ (5,870 ) $ 20,662 Balance Sheet Data Total loans, net $ 855,900 $ 362,370 $ 66,236 $ 5,764 $ — $ 3,351 $ 1,293,621 Total assets 868,709 375,189 90,563 101,205 31,877 272,204 1,739,747 Total funds borrowed 712,777 295,887 72,450 80,959 8,016 212,020 1,382,109 Selected Financial Ratios Return on average assets 6.06 % 3.39 % 1.95 % (6.29 )% (7.72 )% (4.08 )% 2.08 % Return on average equity 30.32 16.96 9.77 (31.44 ) (244.87 ) (30.46 ) 11.09 Interest yield 14.18 9.56 9.66 (30.90 ) N/A N/A 11.50 Net interest margin 12.76 8.17 5.32 (108.84 ) N/A N/A 9.01 Reserve coverage 3.42 1.60 0.00 (1) 65.11 N/A N/A 3.50 Delinquency status (2) 0.32 0.02 0.11 (1) — N/A N/A 0.22 Charge-off ratio 0.12 0.99 0.00 (3) 216.01 N/A N/A 2.15 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Three Months Ended June 30, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 27,229 $ 6,326 $ 1,726 $ (7 ) $ — $ 314 $ 35,588 Total interest expense 3,226 1,236 617 988 40 2,728 8,835 Net interest income (loss) 24,003 5,090 1,109 (995 ) (40 ) (2,414 ) 26,753 Provision for loan losses 8,292 760 - 7,889 — — 16,941 Net interest income (loss) after loss provision 15,711 4,330 1,109 (8,884 ) (40 ) (2,414 ) 9,812 Sponsorship and race winning — — — — 3,626 — 3,626 Race team related expenses — — — — (1,818 ) — (1,818 ) Other income (expense), net (6,497 ) (1,962 ) (584 ) (2,292 ) (1,378 ) (2,025 ) (14,738 ) Net income (loss) before taxes 9,214 2,368 525 (11,176 ) 390 (4,439 ) (3,118 ) Income tax (provision) benefit (2,356 ) (606 ) (131 ) 2,785 (97 ) 1,258 853 Net income (loss) $ 6,858 $ 1,762 $ 394 $ (8,391 ) $ 293 $ (3,181 ) $ (2,265 ) Balance Sheet Data as of June 30, 2020 Total loans, net $ 759,764 $ 278,000 $ 68,140 $ 84,369 $ — $ 3,344 $ 1,193,617 Total assets 775,151 288,501 86,831 190,657 30,542 280,061 1,651,743 Total funds borrowed 617,066 229,237 70,567 151,614 8,615 218,695 1,295,794 Selected Financial Ratios as of June 30, 2020 Return on average assets 3.68 % 2.58 % 1.86 % (17.19 )% 3.88 % (8.96 )% (0.98 )% Return on average equity 18.38 12.88 9.28 (85.96) (53.94) (38.05) (4.97) Interest yield 14.91 9.66 10.67 (0.03) N/A N/A 10.95 Net interest margin 13.15 7.77 6.86 (4.08) N/A N/A 8.23 Reserve coverage 3.43 1.44 — 29.84 N/A N/A 5.31 Delinquency status (2) 0.44 0.05 0.15 10.29 N/A N/A 1.26 Charge-off ratio 1.95 0.30 — 1.12 N/A N/A 1.39 (1) Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business. (2) Loans 90 days or more past due. (3) Ratio is based on total commercial lending balances, and relates to the total loan business. Consumer Lending Corp. Six Months Ended June 30, 2020 (Dollars in thousands) Recreation Home Improvement Commercial Lending Medallion Lending RPAC and Other Investments Consolidated Total interest income $ 53,563 $ 12,213 $ 3,484 $ 995 $ — $ 875 $ 71,130 Total interest expense 6,792 2,523 1,274 2,837 80 4,329 17,835 Net interest income (loss) 46,771 9,690 2,210 (1,842 ) (80 ) (3,454 ) 53,295 Provision for loan losses 18,893 2,296 — 12,293 — — 33,482 Net interest income (loss) after loss provision 27,878 7,394 2,210 (14,135 ) (80 ) (3,454 ) 19,813 Sponsorship and race winning — — — — 6,199 — 6,199 Race team related expenses — — — — (3,948 ) — (3,948 ) Other income (expense), net (13,869 ) (4,302 ) (1,479 ) (10,865 ) (3,223 ) (7,694 ) (41,432 ) Net income (loss) before taxes 14,009 3,092 731 (25,000 ) (1,052 ) (11,148 ) (19,368 ) Income tax (provision) benefit (3,582 ) (791 ) (182 ) 6,230 262 2,165 4,102 Net income (loss) $ 10,427 $ 2,301 $ 549 $ (18,770 ) $ (790 ) $ (8,983 ) $ (15,266 ) Balance Sheet Data as of June 30, 2020 Total loans, net $ 759,764 $ 278,000 $ 68,140 $ 84,369 $ — $ 3,344 $ 1,193,617 Total assets 775,151 288,501 86,831 190,657 30,542 280,061 1,651,743 Total funds borrowed 617,066 229,237 70,567 151,614 8,615 218,695 1,295,794 Selected Financial Ratios as of June 30, 2020 Return on average assets 2.85 % 1.72 % 1.30 % (18.56 )% (5.17 )% (7.14 )% -2.23 % Return on average equity 14.25 8.62 6.48 (92.14 ) 81.74 (26.03 ) (10.82 ) Interest yield 14.98 9.58 10.97 2.04 N/A N/A 11.31 Net interest margin 13.08 7.58 6.96 (3.78 ) N/A N/A 8.48 Reserve coverage 3.43 1.44 — 29.84 N/A N/A 5.31 Delinquency status (2) 0.44 0.05 0.15 10.29 N/A N/A 1.26 Charge-off ratio 2.78 0.65 — 3.73 N/A N/A 2.21 (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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments All Other Investments [Abstract] | |
Summary of Carrying Values and Fair Values of Financial Instruments | The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt. June 30, 2021 December 31, 2020 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash, cash equivalents and federal funds sold (1) $ 91,553 $ 91,553 $ 112,040 $ 112,040 Equity investments 10,090 10,090 9,746 9,746 Investment securities 48,307 48,307 46,792 46,792 Loans receivable 1,293,621 1,293,621 1,172,290 1,172,290 Accrued interest receivable (2) 9,525 9,525 10,338 10,338 Equity securities (3) 1,969 1,969 — — Financial liabilities Funds borrowed (4) 1,382,109 1,382,109 1,312,255 1,312,591 Accrued interest payable (2) 3,883 3,883 4,673 4,673 (1) Categorized as level 1 within the fair value hierarchy, excluding $1,250 and $1,500 in interest bearing deposits categorized as level 2 as of June 30, 2021 and December 31, 2020. See Note 13. (2) Categorized as level 3 within the fair value hierarchy. See Note 13. (3) Included within other assets on the balance sheet. ( 4 ) There were no publicly traded retail notes as of June 30, 2021. As of December 31, 2020, publicly traded retail notes traded at a premium to par of $336. |
Fair Value of Assets and liab_2
Fair Value of Assets and liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. June 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Interest-bearing deposits $ — $ 1,250 $ — $ 1,250 Available for sale investment securities — 48,307 — 48,307 Equity securities 1,969 — — 1,969 Total (1) $ 1,969 $ 49,557 $ — $ 51,526 (1) Total unrealized gain (loss) of $27 and ($578), net of tax, was included in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 related to these assets. 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 (1) — 46,792 — 46,792 Total $ — $ 48,292 $ — $ 48,292 (1) Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets. |
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020. June 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Equity investments $ — $ — $ 10,090 $ 10,090 Impaired loans — — 40,770 40,770 Loan collateral in process of foreclosure — — 49,039 49,039 Total $ — $ — $ 99,899 $ 99,899 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 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities | The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of June 30, 2021 and December 31, 2020 (Dollars in thousands) Fair Value at 6/30/21 Valuation Techniques Unobservable Inputs Range (Weighted Average) Equity investments $ 9,271 Investee financial analysis Financial condition and operating performance of the borrower (1) N/A Collateral support N/A 819 Precedent market transaction Offering price $8.73 / share Impaired loans 40,770 Market approach Historical and actual loss experience 1.50% - 6.00% 60% of balance Transfer prices (2) $0.0 - 79.5 Collateral value N/A Loan collateral in process of foreclosure 49,039 Market approach Transfer prices (2) $0.0 - 79.5 Collateral value (3) $1.8 - 31.5 (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 Transfer prices (2) $0.6 - 108.7 Collateral value N/A Loan collateral in process of foreclosure 53,128 Market approach Transfer prices (2) $0.6 - 108.7 1,432 Collateral value (3) $0.7 - 32.3 (1) Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities. (2) Represents amount net of liquidation costs. (3) Relates to the recreation portfolio. |
Organization of Medallion Fin_2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2021USD ($)Medallion | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
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 | $ 1,284,000 | $ 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 | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Aug. 31, 2019 | Mar. 31, 2019 | Apr. 02, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Interest-bearing funds deposited in other banks | $ 1,250,000 | $ 1,250,000 | |||||||
Non-marketable securities | $ 10,090,000 | 10,090,000 | $ 9,746,000 | ||||||
Number of share sold | 1,166,667 | ||||||||
Proceed from sale shares of investment | $ 3,816,000,000 | ||||||||
Gain on sale of investment | $ 3,179,000,000 | ||||||||
Number of shares held in equity securities | 1,500,000 | ||||||||
Equity securities, at cost | $ 819,000,000 | 819,000,000 | |||||||
Investment securities Amortized to interest income | 38,000 | $ 79,000 | 81,000 | $ 134,000 | |||||
Net loan origination costs | 24,074,000 | 20,684,000 | |||||||
Net amortization to income | 2,067,000 | 1,587,000 | 3,723,000 | 2,891,000 | |||||
Premiums in loan portfolio | 30,752,000 | $ 30,752,000 | 40,541,000 | ||||||
Percentage of write down of loan balance | 40.00% | ||||||||
Loans pledged as collateral | 0 | $ 0 | 15,367,000 | ||||||
Principal portion of loans serviced, fair value | 107,624,000 | 107,624,000 | 107,131,000 | ||||||
Loans write down to collateral value | 16,249,000 | 8,027,000 | $ 23,097,000 | 19,205,000 | |||||
Intangible assets useful life | 20 years | ||||||||
Goodwill | 150,803,000 | 150,803,000 | $ 150,803,000 | 150,803,000 | 150,803,000 | ||||
Intangible assets, net | 50,368,000 | 51,814,000 | 50,368,000 | 51,814,000 | 51,090,000 | ||||
Amortization of intangible assets | 361,000 | 361,000 | 722,000 | 722,000 | |||||
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | 0 | ||||||
Depreciation and amortization | 75,000 | 139,000 | 159,000 | 261,000 | |||||
Amortization expense | 592,000 | 586,000 | 1,237,000 | 1,308,000 | |||||
Deferred costs | 7,054,000 | 4,709,000 | $ 7,054,000 | $ 4,709,000 | $ 5,805,000 | ||||
Potential dilutive common shares excluded from EPS computation | 396,373 | 851,272 | |||||||
Stock based compensation award | 317,398 | 335,773 | |||||||
Stock based compensation award, Amount | $ 576,000 | $ 520,000 | $ 1,074,000 | $ 987,000 | |||||
Stock based compensation award per diluted common share | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 | |||||
Unrecognized compensation cost related to unvested stock options and restricted stock | $ 3,481,000 | $ 3,481,000 | |||||||
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period | 45 months | ||||||||
Tier 1 leverage capital ratio | 18.09% | 18.09% | |||||||
Capital conversation buffer | 2.50% | 2.50% | |||||||
Restricted Shares [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stock based compensation award | 163,561 | 163,561 | 165,674 | 229,408 | |||||
Restricted Stock Units [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Stock based compensation award | 16,803 | ||||||||
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 | $ 835,000 | $ 5,251,000 | $ 835,000 | $ 5,251,000 | $ 2,717,000 | ||||
Loan portfolio premium amortized to interest income | 1,695,000 | $ 179,000 | 1,882,000 | $ 508,000 | |||||
Additional impairment of intangible assets | 0 | ||||||||
Medallion Bank [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Amortization of intangible assets | 0 | ||||||||
Additional impairment of goodwill | 0 | ||||||||
New York City [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Loans write down to collateral value | 79,500,000 | ||||||||
91+ [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Premiums in loan portfolio | 2,912,000 | 2,912,000 | 6,878,000 | ||||||
91+ [Member] | Loans [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Premiums in loan portfolio | $ 2,912,000 | $ 2,912,000 | $ 6,878,000 | ||||||
Total loans more than 90 days past due ,percentage | 0.22% | 0.22% | 0.57% | ||||||
Bank Holding Company Accounting [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net premium on investment securities | $ 337,000 | $ 278,000 | |||||||
Other Assets [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Equity securities, fair value | $ 1,969,000 | $ 1,969,000 | |||||||
Equity Securities [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Purchased of equity securities with readily determinable fair value | $ 2,000,000 | ||||||||
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% | 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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Equity Securities Fv Ni Gain Loss [Abstract] | ||
Net losses recognized during the period on equity securities | $ (3) | $ (31) |
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date | $ (3) | $ (31) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Investments In Loans [Line Items] | |||
Intangibles assets | $ 50,368 | $ 51,090 | $ 51,814 |
Intellectual Property [Member] | |||
Investments In Loans [Line Items] | |||
Intangibles assets | 18,425 | 18,974 | |
Contractor Relationships [Member] | |||
Investments In Loans [Line Items] | |||
Intangibles assets | 5,778 | 5,951 | |
Race Organization [Member] | |||
Investments In Loans [Line Items] | |||
Intangibles assets | $ 26,165 | $ 26,165 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Net income (loss) resulting from operations available to common stockholders | $ 10,267 | $ (3,977) | $ 18,698 | $ (17,620) |
Weighted average common shares outstanding applicable to basic EPS | 24,595,822 | 24,444,677 | 24,557,511 | 24,423,225 |
Effect of dilutive stock options | 127,493 | 74,331 | ||
Effect of restricted stock grants | 227,197 | 291,181 | ||
Adjusted weighted average common shares outstanding applicable to diluted EPS | 24,950,512 | 24,444,677 | 24,923,023 | 24,423,225 |
Basic income (loss) per share | $ 0.42 | $ (0.16) | $ 0.76 | $ (0.72) |
Diluted income (loss) per share | $ 0.41 | $ (0.16) | $ 0.75 | $ (0.72) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
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 | $ 172,775 | $ 148,507 |
Tier 1 capital | 241,563 | 217,295 |
Total capital | 258,880 | 233,460 |
Average assets | 1,335,205 | 1,283,664 |
Risk-weighted assets | $ 1,349,840 | $ 1,243,783 |
Leverage ratio | 18.1 | 16.9 |
Common equity Tier 1 capital ratio | 12.8 | 11.9 |
Tier 1 capital ratio | 17.9 | 17.5 |
Total capital ratio | 19.2 | 18.8 |
Investment Securities - Summary
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 47,472 | $ 45,155 |
Gross Unrealized Gains | 1,115 | 1,684 |
Gross Unrealized Losses | (280) | (47) |
Fair Value | 48,307 | 46,792 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,553 | 34,929 |
Gross Unrealized Gains | 1,009 | 1,495 |
Gross Unrealized Losses | (239) | (45) |
Fair Value | 40,323 | 36,379 |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,919 | 10,226 |
Gross Unrealized Gains | 106 | 189 |
Gross Unrealized Losses | (41) | (2) |
Fair Value | $ 7,984 | $ 10,413 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, due in one year or less | $ 20 | |
Amortized Cost, due after one year through five years | 8,502 | |
Amortized Cost, due after five years through ten years | 13,451 | |
Amortized Cost, due after ten years | 25,499 | |
Amortized Cost | 47,472 | $ 45,155 |
Market Value, due in one year or less | 20 | |
Market Value, due after one year through five years | 8,775 | |
Market Value, due after five years through ten years | 13,906 | |
Market Value, due after ten years | 25,606 | |
Market Value, total | $ 48,307 | $ 46,792 |
Investment Securities - Summa_3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | $ (223) | $ (45) |
Fair Value, Less than Twelve Months | 13,404 | 4,028 |
Gross Unrealized Losses, Twelve Months and Over | (57) | (2) |
Fair Value, Twelve Months and Over | 2,038 | 196 |
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (183) | (45) |
Fair Value, Less than Twelve Months | 11,444 | 4,028 |
Gross Unrealized Losses, Twelve Months and Over | (55) | |
Fair Value, Twelve Months and Over | 1,910 | |
State and Municipalities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses, Less than Twelve Months | (40) | |
Fair Value, Less than Twelve Months | 1,960 | |
Gross Unrealized Losses, Twelve Months and Over | (2) | (2) |
Fair Value, Twelve Months and Over | $ 128 | $ 196 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 1,315,730,000 | [1] | $ 1,205,776,000 | [2] | |||||
Allowance for loan losses | (46,946,000) | [3] | (57,548,000) | $ (57,809,000) | $ (66,977,000) | [3] | $ (54,057,000) | $ (46,093,000) | |
Net loans receivable | 1,293,621,000 | 1,172,290,000 | 1,193,617,000 | ||||||
Bank Holding Company Accounting [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | 1,340,567,000 | 1,229,838,000 | 1,259,215,000 | 1,260,594,000 | 1,183,779,000 | 1,160,855,000 | |||
Allowance for loan losses | (46,946,000) | (57,548,000) | |||||||
Net loans receivable | $ 1,293,621,000 | $ 1,172,290,000 | |||||||
Percentage of total gross loans | 100.00% | 100.00% | |||||||
Recreation [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 858,891,000 | [1] | $ 767,374,000 | [2] | |||||
Allowance for loan losses | (30,306,000) | (27,348,000) | |||||||
Recreation [Member] | Bank Holding Company Accounting [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 886,206,000 | $ 792,686,000 | 822,932,000 | 786,785,000 | 735,175,000 | 713,332,000 | |||
Percentage of total gross loans | 66.00% | 65.00% | |||||||
Home Improvement [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 370,663,000 | [1] | $ 336,885,000 | [2] | |||||
Allowance for loan losses | (5,890,000) | (5,157,000) | |||||||
Home Improvement [Member] | Bank Holding Company Accounting [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 368,257,000 | $ 334,033,000 | 342,121,000 | 282,072,000 | 255,899,000 | 247,324,000 | |||
Percentage of total gross loans | 28.00% | 27.00% | |||||||
Commercial [Member] | Bank Holding Company Accounting [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 69,520,000 | $ 65,327,000 | 58,854,000 | 71,476,000 | 68,257,000 | 69,767,000 | |||
Percentage of total gross loans | 5.00% | 5.00% | |||||||
Medallion [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 16,516,000 | [1] | $ 36,153,000 | [2] | |||||
Allowance for loan losses | (10,750,000) | (25,043,000) | |||||||
Medallion [Member] | Bank Holding Company Accounting [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 16,514,000 | $ 37,768,000 | 35,250,000 | 120,253,000 | $ 124,448,000 | $ 130,432,000 | |||
Percentage of total gross loans | 1.00% | 3.00% | |||||||
Strategic Partnership [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 70,000 | [1] | $ 24,000 | [2] | |||||
Allowance for loan losses | 0 | ||||||||
Strategic Partnership [Member] | Bank Holding Company Accounting [Member] | |||||||||
Student Loan Portfolio By Program [Line Items] | |||||||||
Total gross loans | $ 70,000 | $ 24,000 | $ 58,000 | $ 8,000 | |||||
[1] | Excludes loan premiums of $835 resulting from purchase price accounting and $24,074 of capitalized loan origination costs. | ||||||||
[2] | Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. | ||||||||
[3] | As of June 30, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | $ 1,205,776,000 | |||
Charge-offs, net | [2] | $ (10,181,000) | $ (4,021,000) | (12,938,000) | $ (12,598,000) |
Transfer to loan collateral in process of foreclosure, net | (6,913,000) | (5,188,000) | (10,663,000) | (12,125,000) | |
Amortization of origination costs | (3,723,000) | (2,891,000) | |||
Paid-in-kind interest | 495,000 | 634,000 | |||
Gross loans, ending balance | [3] | 1,315,730,000 | 1,315,730,000 | ||
Recreation [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 767,374,000 | |||
Transfer to loan collateral in process of foreclosure, net | (2,980,000) | (3,003,000) | (6,033,000) | (7,781,000) | |
Gross loans, ending balance | [3] | 858,891,000 | 858,891,000 | ||
Home Improvement [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 336,885,000 | |||
Gross loans, ending balance | [3] | 370,663,000 | 370,663,000 | ||
Medallion [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 36,153,000 | |||
Transfer to loan collateral in process of foreclosure, net | (3,933,000) | (2,185,000) | (4,630,000) | (4,344,000) | |
Gross loans, ending balance | [3] | 16,516,000 | 16,516,000 | ||
Strategic Partnership [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | [1] | 24,000 | |||
Charge-offs, net | 0 | ||||
Gross loans, ending balance | [3] | 70,000 | 70,000 | ||
Bank Holding Company Accounting [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 1,259,215,000 | 1,183,779,000 | 1,229,838,000 | 1,160,855,000 | |
Loan originations | 210,944,000 | 154,072,000 | 358,954,000 | 259,356,000 | |
Principal payments, sales, and maturities | (112,768,000) | (69,917,000) | (225,976,000) | (137,286,000) | |
Charge-offs, net | (10,181,000) | (4,021,000) | (12,938,000) | (12,598,000) | |
Transfer to loan collateral in process of foreclosure, net | (6,913,000) | (5,188,000) | (10,663,000) | (12,125,000) | |
Amortization of origination costs | (2,067,000) | (1,587,000) | (3,723,000) | (2,891,000) | |
Amortization of loan premium | (1,695,000) | (179,000) | (1,882,000) | (508,000) | |
FASB origination costs | 3,862,000 | 3,294,000 | 6,462,000 | 5,157,000 | |
Paid-in-kind interest | 170,000 | 341,000 | 495,000 | 634,000 | |
Gross loans, ending balance | 1,340,567,000 | 1,260,594,000 | 1,340,567,000 | 1,260,594,000 | |
Bank Holding Company Accounting [Member] | Recreation [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 822,932,000 | 735,175,000 | 792,686,000 | 713,332,000 | |
Loan originations | 134,467,000 | 106,206,000 | 228,317,000 | 175,850,000 | |
Principal payments, sales, and maturities | (70,672,000) | (49,457,000) | (129,100,000) | (86,529,000) | |
Charge-offs, net | 916,000 | (3,565,000) | (1,668,000) | (9,946,000) | |
Transfer to loan collateral in process of foreclosure, net | (2,980,000) | (3,003,000) | (6,033,000) | (7,781,000) | |
Amortization of origination costs | (2,477,000) | (2,031,000) | (4,639,000) | (3,760,000) | |
Amortization of loan premium | (60,000) | (51,000) | (101,000) | (103,000) | |
FASB origination costs | 4,080,000 | 3,511,000 | 6,744,000 | 5,722,000 | |
Gross loans, ending balance | 886,206,000 | 786,785,000 | 886,206,000 | 786,785,000 | |
Bank Holding Company Accounting [Member] | Home Improvement [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 342,121,000 | 255,899,000 | 334,033,000 | 247,324,000 | |
Loan originations | 62,992,000 | 44,713,000 | 111,051,000 | 78,178,000 | |
Principal payments, sales, and maturities | (36,729,000) | (18,496,000) | (76,797,000) | (42,720,000) | |
Charge-offs, net | (228,000) | (196,000) | (477,000) | (832,000) | |
Amortization of origination costs | 410,000 | 455,000 | 907,000 | 896,000 | |
Amortization of loan premium | (90,000) | (82,000) | (166,000) | (168,000) | |
FASB origination costs | (219,000) | (221,000) | (294,000) | (606,000) | |
Gross loans, ending balance | 368,257,000 | 282,072,000 | 368,257,000 | 282,072,000 | |
Bank Holding Company Accounting [Member] | Commercial [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 58,854,000 | 68,257,000 | 65,327,000 | 69,767,000 | |
Loan originations | 11,059,000 | 3,000,000 | 15,216,000 | 5,175,000 | |
Principal payments, sales, and maturities | (564,000) | (132,000) | (11,541,000) | (4,112,000) | |
Amortization of origination costs | 2,000 | 11,000 | 4,000 | ||
FASB origination costs | 1,000 | 8,000 | 12,000 | 8,000 | |
Paid-in-kind interest | 170,000 | 341,000 | 495,000 | 634,000 | |
Gross loans, ending balance | 69,520,000 | 71,476,000 | 69,520,000 | 71,476,000 | |
Bank Holding Company Accounting [Member] | Medallion [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 35,250,000 | 124,448,000 | 37,768,000 | 130,432,000 | |
Principal payments, sales, and maturities | (2,389,000) | (1,687,000) | (4,214,000) | (3,780,000) | |
Charge-offs, net | (10,869,000) | (260,000) | (10,793,000) | (1,820,000) | |
Transfer to loan collateral in process of foreclosure, net | (3,933,000) | (2,185,000) | (4,630,000) | (4,344,000) | |
Amortization of origination costs | (13,000) | (2,000) | (31,000) | ||
Amortization of loan premium | (1,545,000) | (46,000) | (1,615,000) | (237,000) | |
FASB origination costs | (4,000) | 33,000 | |||
Gross loans, ending balance | 16,514,000 | 120,253,000 | 16,514,000 | 120,253,000 | |
Bank Holding Company Accounting [Member] | Strategic Partnership [Member] | |||||
Schedule Of Gross Real Estate And Loan Activity [Line Items] | |||||
Gross loans, beginning balance | 58,000 | 24,000 | |||
Loan originations | 2,426,000 | 153,000 | 4,370,000 | 153,000 | |
Principal payments, sales, and maturities | (2,414,000) | (145,000) | (4,324,000) | (145,000) | |
Gross loans, ending balance | $ 70,000 | $ 8,000 | $ 70,000 | $ 8,000 | |
[1] | Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. | ||||
[2] | As of June 30, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $299,205, some of which may represent collection opportunities for the Company. | ||||
[3] | Excludes loan premiums of $835 resulting from purchase price accounting and $24,074 of capitalized loan origination costs. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - beginning balance | $ 57,809 | $ 54,057 | $ 57,548 | $ 46,093 | |
Total charge-offs | (16,249) | (8,027) | (23,097) | (19,205) | |
Total recoveries | 6,068 | 4,006 | 10,159 | 6,607 | |
Net charge-offs | [1] | (10,181) | (4,021) | (12,938) | (12,598) |
Provision (benefit) for loan losses | (682) | 16,941 | 2,336 | 33,482 | |
Allowance for loan losses - ending balance | [2] | 46,946 | 66,977 | 46,946 | 66,977 |
Recreation [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - beginning balance | 27,348 | ||||
Total charge-offs | (2,672) | (5,708) | (7,725) | (13,951) | |
Total recoveries | 3,588 | 2,143 | 6,057 | 4,005 | |
Allowance for loan losses - ending balance | 30,306 | 30,306 | |||
Home Improvement [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - beginning balance | 5,157 | ||||
Total charge-offs | (786) | (548) | (1,467) | (1,558) | |
Total recoveries | 558 | 352 | 990 | 726 | |
Allowance for loan losses - ending balance | 5,890 | 5,890 | |||
Medallion [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses - beginning balance | 25,043 | ||||
Total charge-offs | (12,791) | (1,771) | (13,905) | (3,696) | |
Total recoveries | 1,922 | $ 1,511 | 3,112 | $ 1,876 | |
Allowance for loan losses - ending balance | $ 10,750 | $ 10,750 | |||
[1] | As of June 30, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $299,205, some of which may represent collection opportunities for the Company. | ||||
[2] | As of June 30, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||
Cumulative charges of loans and loan collateral process of foreclosure | $ 49,039,000 | [1] | $ 47,375,000 | $ 49,039,000 | [1] | $ 47,375,000 | $ 50,733,000 | $ 54,560,000 | [1] | $ 46,817,000 | $ 52,711,000 | |||
Allowance for loan losses | 46,946,000 | [2] | 66,977,000 | [2] | 46,946,000 | [2] | 66,977,000 | [2] | $ 57,809,000 | $ 57,548,000 | $ 54,057,000 | $ 46,093,000 | ||
Net charge-offs | [3] | 10,181,000 | $ 4,021,000 | 12,938,000 | $ 12,598,000 | |||||||||
Strategic Partnership [Member] | ||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||
Allowance for loan losses | 0 | 0 | ||||||||||||
Net charge-offs | 0 | |||||||||||||
Medallion Bank [Member] | ||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||||
Cumulative charges of loans and loan collateral process of foreclosure | $ 299,205,000 | $ 299,205,000 | ||||||||||||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,919 as of June 30, 2021 and $3,535 as of December 31, 2020. | |||||||||||||
[2] | As of June 30, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans. | |||||||||||||
[3] | As of June 30, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $299,205, some of which may represent collection opportunities for the Company. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | [1] | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||
Amount | $ 46,946 | [1] | $ 57,809 | $ 57,548 | $ 66,977 | $ 54,057 | $ 46,093 | |
Percentage of Allowance | 100.00% | 100.00% | ||||||
Allowance as a Percent of Loan Category | 3.50% | 4.68% | ||||||
Allowance as a Percent of Nonaccrual | 116.26% | 93.17% | ||||||
Recreation [Member] | ||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||
Amount | $ 30,306 | $ 27,348 | ||||||
Percentage of Allowance | 64.00% | 48.00% | ||||||
Allowance as a Percent of Loan Category | 3.42% | 3.45% | ||||||
Allowance as a Percent of Nonaccrual | 633.25% | 378.20% | ||||||
Home Improvement [Member] | ||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||
Amount | $ 5,890 | $ 5,157 | ||||||
Percentage of Allowance | 13.00% | 9.00% | ||||||
Allowance as a Percent of Loan Category | 1.60% | 1.54% | ||||||
Medallion [Member] | ||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||
Amount | $ 10,750 | $ 25,043 | ||||||
Percentage of Allowance | 23.00% | 43.00% | ||||||
Allowance as a Percent of Loan Category | 65.11% | 66.31% | ||||||
Allowance as a Percent of Nonaccrual | 65.11% | 68.01% | ||||||
[1] | As of June 30, 2021, 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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Total nonaccrual loans | $ 40,381 | $ 81,539 | $ 61,767 |
Interest foregone quarter to date | 521 | 1,202 | 2,306 |
Amount of foregone interest applied to principal in the quarter | 121 | 8 | 595 |
Interest foregone year to date | 889 | 1,734 | 3,311 |
Amount of foregone interest applied to principal year to date | 253 | 57 | 602 |
Interest foregone life to date | 4,127 | 4,171 | 5,252 |
Amount of foregone interest applied to principal life to date | $ 789 | $ 973 | $ 792 |
Percentage of nonaccrual loans to gross loan portfolio | 3.00% | 6.00% | 5.00% |
Percentage of allowance for loan losses to nonaccrual loans | 116.00% | 82.00% | 93.00% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 1,340,567 | $ 1,229,838 | |
Percentage of Nonperforming to Total | 3.04% | 5.06% | |
Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 1,299,797 | $ 1,167,664 | |
Non - Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | 40,770 | 62,174 | |
Recreation [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 886,206 | $ 792,686 | |
Percentage of Nonperforming to Total | 0.58% | 0.96% | |
Recreation [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 881,029 | $ 785,047 | |
Recreation [Member] | Non - Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | 5,177 | 7,639 | |
Home Improvement [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 368,257 | $ 334,033 | |
Percentage of Nonperforming to Total | 0.02% | 0.05% | |
Home Improvement [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 368,188 | $ 333,862 | |
Home Improvement [Member] | Non - Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | 69 | 171 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 69,520 | $ 65,327 | |
Percentage of Nonperforming to Total | 27.34% | 25.40% | |
Commercial [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 50,510 | $ 48,731 | |
Commercial [Member] | Non - Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | 19,010 | 16,596 | |
Medallion [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 16,514 | $ 37,768 | |
Percentage of Nonperforming to Total | 100.00% | 100.00% | |
Medallion [Member] | Non - Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | [1] | $ 16,514 | $ 37,768 |
Strategic Partnership [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | 70 | 24 | |
Strategic Partnership [Member] | Performing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Status of loans | $ 70 | $ 24 | |
[1] | Includes medallion loan premiums of $1,615 at December 31, 2020. |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan premiums | $ 835 | $ 2,717 |
Medallion [Member] | Non - Performing [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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | $ 40,772 | $ 81,925 | $ 40,772 | $ 81,925 | $ 62,174 |
Unpaid principal balance, With related allowance | 41,561 | 82,255 | 41,561 | 82,255 | 62,778 |
Related Allowance, With related allowance | 10,933 | 36,083 | 10,933 | 36,083 | 25,310 |
Average Investment Recorded, With related allowance | 42,600 | 75,459 | 43,343 | 84,880 | |
Interest Income Recognized, With related allowance | 180 | 362 | 323 | 906 | |
Recreation [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 5,177 | 5,312 | 5,177 | 5,312 | 7,639 |
Unpaid principal balance, With related allowance | 5,177 | 5,312 | 5,177 | 5,312 | 7,639 |
Related Allowance, With related allowance | 179 | 243 | 179 | 243 | 264 |
Average Investment Recorded, With related allowance | 4,799 | 5,544 | 4,912 | 5,653 | |
Interest Income Recognized, With related allowance | 180 | 158 | 323 | 299 | |
Home Improvement [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 69 | 137 | 69 | 137 | 171 |
Unpaid principal balance, With related allowance | 69 | 137 | 69 | 137 | 171 |
Related Allowance, With related allowance | 1 | 2 | 1 | 2 | 3 |
Average Investment Recorded, With related allowance | 74 | 137 | 75 | 137 | |
Interest Income Recognized, With related allowance | 1 | 1 | |||
Commercial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 19,010 | 15,246 | 19,010 | 15,246 | 16,596 |
Unpaid principal balance, With related allowance | 19,019 | 15,251 | 19,019 | 15,251 | 16,600 |
Average Investment Recorded, With related allowance | 19,210 | 15,360 | 19,788 | 15,359 | |
Interest Income Recognized, With related allowance | 1 | ||||
Medallion [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Recorded Investment, With related allowance | 16,516 | 61,230 | 16,516 | 61,230 | 37,768 |
Unpaid principal balance, With related allowance | 17,296 | 61,555 | 17,296 | 61,555 | 38,368 |
Related Allowance, With related allowance | 10,753 | 35,838 | 10,753 | 35,838 | $ 25,043 |
Average Investment Recorded, With related allowance | $ 18,517 | 54,418 | $ 18,568 | 63,731 | |
Interest Income Recognized, With related allowance | $ 203 | $ 605 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | $ 30,752 | $ 40,541 | ||
Current | 1,284,978 | 1,165,235 | ||
Total | 1,315,730 | [1] | 1,205,776 | [2] |
Accruing | 0 | 0 | ||
30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 13,223 | 24,890 | ||
60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 14,617 | 8,773 | ||
91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 2,912 | 6,878 | ||
Recreation [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 18,427 | 34,983 | ||
Current | 840,464 | 732,391 | ||
Total | 858,891 | [1] | 767,374 | [2] |
Accruing | 0 | 0 | ||
Recreation [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 12,185 | 22,058 | ||
Recreation [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 3,473 | 7,582 | ||
Recreation [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 2,769 | 5,343 | ||
Home Improvement [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 893 | 1,201 | ||
Current | 369,770 | 335,684 | ||
Total | 370,663 | [1] | 336,885 | [2] |
Accruing | 0 | 0 | ||
Home Improvement [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 663 | 813 | ||
Home Improvement [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 161 | 218 | ||
Home Improvement [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 69 | 170 | ||
Commercial Loans [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,890 | 75 | ||
Current | 67,700 | 65,265 | ||
Total | 69,590 | [1] | 65,340 | [2] |
Accruing | 0 | 0 | ||
Commercial Loans [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,816 | |||
Commercial Loans [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 74 | 75 | ||
Medallion [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 9,542 | 4,282 | ||
Current | 6,974 | 31,871 | ||
Total | 16,516 | [1] | 36,153 | [2] |
Accruing | 0 | 0 | ||
Medallion [Member] | 30-59 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 375 | 2,019 | ||
Medallion [Member] | 60-89 [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 9,167 | 973 | ||
Medallion [Member] | 91+ [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Past Due | 1,290 | |||
Strategic Partnership [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Current | 70 | 24 | ||
Total | 70 | [1] | 24 | [2] |
Accruing | $ 0 | $ 0 | ||
[1] | Excludes loan premiums of $835 resulting from purchase price accounting and $24,074 of capitalized loan origination costs. | |||
[2] | Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Loan premiums | $ 835 | $ 2,717 |
Capitalized loan origination costs | $ 24,074 | $ 21,345 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2021USD ($)TDR | Jun. 30, 2020USD ($)TDR | Jun. 30, 2021USD ($)TDR | Jun. 30, 2020USD ($)TDR | Jun. 30, 2021USD ($)TDR | Jun. 30, 2020USD ($)TDR | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||||||
Weighted average loan-to-value ratio | 321.00% | 254.00% | 321.00% | 254.00% | 321.00% | 254.00% | 327.00% | |||||||||
Allowance for loan loss | $ 46,946,000 | [1] | $ 66,977,000 | [1] | $ 46,946,000 | [1] | $ 66,977,000 | [1] | $ 46,946,000 | [1] | $ 66,977,000 | [1] | $ 57,809,000 | $ 57,548,000 | $ 54,057,000 | $ 46,093,000 |
Medallion [Member] | ||||||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||||||
Number of loans modified as TDRs defaulted | TDR | 2 | 17 | 10 | 30 | ||||||||||||
Allowance for loan loss | $ 10,750,000 | $ 10,750,000 | 10,750,000 | 25,043,000 | ||||||||||||
Recreation [Member] | ||||||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||||||
Number of loans modified as TDRs defaulted | TDR | 21 | 21 | 39 | 51 | ||||||||||||
Allowance for loan loss | $ 30,306,000 | $ 30,306,000 | $ 30,306,000 | $ 27,348,000 | ||||||||||||
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member] | ||||||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||||||
Number of loans modified as TDRs defaulted | TDR | 43 | 20 | ||||||||||||||
TDR investment value | 30,140,000 | $ 11,419,000 | 30,140,000 | $ 11,419,000 | $ 30,140,000 | $ 11,419,000 | ||||||||||
Allowance for loan loss | 22,176,000 | 6,680,000 | 22,176,000 | 6,680,000 | $ 22,176,000 | $ 6,680,000 | ||||||||||
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member] | ||||||||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||||||||||||
Number of loans modified as TDRs defaulted | TDR | 37 | 88 | ||||||||||||||
TDR investment value | 371,000 | 802,000 | 371,000 | 802,000 | $ 371,000 | $ 802,000 | ||||||||||
Allowance for loan loss | $ 13,000 | $ 37,000 | $ 13,000 | $ 37,000 | $ 13,000 | $ 37,000 | ||||||||||
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 June 30, 2021, 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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)TDR | Jun. 30, 2020USD ($)TDR | Jun. 30, 2021USD ($)TDR | Jun. 30, 2020USD ($)TDR | |
Recreation [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | TDR | 21 | 21 | 39 | 51 |
Pre- Modification Investment | $ 302 | $ 231 | $ 474 | $ 633 |
Post- Modification Investment | $ 302 | $ 185 | $ 468 | $ 426 |
Medallion [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | TDR | 2 | 17 | 10 | 30 |
Pre- Modification Investment | $ 256 | $ 12,519 | $ 2,994 | $ 13,641 |
Post- Modification Investment | $ 256 | $ 12,519 | $ 2,994 | $ 13,641 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans collateral in process of foreclosure - beginning balance | $ 50,733 | $ 46,817 | $ 54,560 | [1] | $ 52,711 | |
Transfer from loans, net | 6,913 | 5,188 | 10,663 | 12,125 | ||
Sales | (2,220) | (1,988) | (4,519) | (4,286) | ||
Cash payments received | (3,146) | (185) | (4,423) | (1,893) | ||
Collateral valuation adjustments | (3,241) | (2,457) | (7,242) | (11,282) | ||
Loans collateral in process of foreclosure - ending balance | 49,039 | [1] | 47,375 | 49,039 | [1] | 47,375 |
Recreation [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans collateral in process of foreclosure - beginning balance | 970 | 1,717 | 1,432 | 1,476 | ||
Transfer from loans, net | 2,980 | 3,003 | 6,033 | 7,781 | ||
Sales | (1,989) | (1,988) | (4,288) | (3,986) | ||
Collateral valuation adjustments | (1,079) | (1,474) | (2,295) | (4,013) | ||
Loans collateral in process of foreclosure - ending balance | 882 | 1,258 | 882 | 1,258 | ||
Medallion [Member] | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Loans collateral in process of foreclosure - beginning balance | 49,763 | 45,100 | 53,128 | 51,235 | ||
Transfer from loans, net | 3,933 | 2,185 | 4,630 | 4,344 | ||
Sales | (231) | (231) | (300) | |||
Cash payments received | (3,146) | (185) | (4,423) | (1,893) | ||
Collateral valuation adjustments | (2,162) | (983) | (4,947) | (7,269) | ||
Loans collateral in process of foreclosure - ending balance | $ 48,157 | $ 46,117 | $ 48,157 | $ 46,117 | ||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,919 as of June 30, 2021 and $3,535 as of December 31, 2020. |
Funds Borrowed - Schedule of Ou
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
2022 | $ 478,033 | ||
2023 | 188,191 | ||
2024 | 275,761 | ||
2025 | 156,297 | ||
2026 | 177,827 | ||
Thereafter | 105,250 | ||
Long term debt | [1] | $ 1,381,359 | $ 1,312,005 |
Interest Rate | [2] | 2.04% | |
Deposits [Member] | |||
Debt Instrument [Line Items] | |||
2022 | [3] | $ 469,737 | |
2023 | [3] | 182,911 | |
2024 | [3] | 226,592 | |
2025 | [3] | 143,797 | |
2026 | [3] | 131,077 | |
Long term debt | [1],[3] | $ 1,154,114 | 1,067,822 |
Interest Rate | [2],[3] | 1.38% | |
Small Business Administration Debentures and Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2023 | $ 5,000 | ||
2024 | 13,029 | ||
2025 | 12,500 | ||
2026 | 15,500 | ||
Thereafter | 18,500 | ||
Long term debt | [1] | $ 64,529 | 103,225 |
Interest Rate | [2] | 2.74% | |
Retail and Privately Placed Notes [Member] | |||
Debt Instrument [Line Items] | |||
2024 | $ 36,000 | ||
2026 | 31,250 | ||
Thereafter | 53,750 | ||
Long term debt | [1] | $ 121,000 | 68,008 |
Interest Rate | [2] | 7.66% | |
Preferred Securities [Member] | |||
Debt Instrument [Line Items] | |||
Thereafter | $ 33,000 | ||
Long term debt | [1] | $ 33,000 | 33,000 |
Interest Rate | [2] | 2.26% | |
Other Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
2022 | $ 8,016 | ||
Long term debt | [1] | $ 8,016 | 8,689 |
Interest Rate | [2] | 2.00% | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
2022 | $ 280 | ||
2023 | 280 | ||
2024 | 140 | ||
Long term debt | [1] | $ 700 | $ 31,261 |
Interest Rate | [2] | 4.00% | |
[1] | Excludes deferred financing costs of $7,054 and $5,805 as of June 30, 2021 and December 31, 2020. | ||
[2] | Weighted average contractual rate as of June 30, 2021. | ||
[3] | Balance excludes $750 and $250 of strategic partner reserve deposits as of June 30, 2021 and December 31, 2020. |
Funds Borrowed - Schedule of _2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | |||
Deferred costs | $ 7,054,000 | $ 5,805,000 | $ 4,709,000 |
Reserve Deposits | $ 750,000 | $ 250,000 |
Funds Borrowed - Additional Inf
Funds Borrowed - Additional Information (Detail) | Feb. 28, 2021USD ($) | Jul. 31, 2020USD ($) | Jun. 17, 2020USD ($) | Dec. 31, 2007USD ($) | Jun. 30, 2007USD ($)shares | Mar. 31, 2021USD ($) | Mar. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Apr. 30, 2016USD ($) | Jun. 30, 2021USD ($)shares | Mar. 31, 2019USD ($) | Jun. 30, 2021USD ($)Depositshares | Dec. 31, 2020USD ($)shares | Apr. 30, 2021USD ($) | Mar. 15, 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. | $ 4,036,000 | $ 4,036,000 | |||||||||||||||
Aggregate principal amount | $ 25,000,000 | $ 5,207,000 | $ 33,600,000 | ||||||||||||||
Debt instrument interest rate Percentage | 7.25% | 7.50% | |||||||||||||||
Maturity date | Feb. 28, 2026 | Sep. 24, 2024 | Dec. 31, 2027 | ||||||||||||||
Debt instrument remaining amount | $ 16,500,000 | ||||||||||||||||
Debt instrument face amount | 25,000,000 | ||||||||||||||||
Commitment fee amount | 250,000 | ||||||||||||||||
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion | $ 8,250,000 | ||||||||||||||||
Capital contribution | $ 3,500,000 | $ 3,500,000 | |||||||||||||||
Issue of common stock | shares | 28,013,007 | 28,013,007 | 27,828,871 | ||||||||||||||
Gain on debt extinguishment | $ 1,767,000 | $ 2,859,430 | $ 4,626,000 | ||||||||||||||
Short term promissory note | 8,016,000 | $ 8,016,000 | $ 87,334,000 | ||||||||||||||
CARES Act [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 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 | 7,516,000 | $ 7,516,000 | |||||||||||||||
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 | |||||||||||||||
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 | ||||||||||||||||
Debt instrument, frequency of periodic payment | quarterly | ||||||||||||||||
Debt instrument periodic payment of principal and accrued interest | $ 70,000 | ||||||||||||||||
Debenture Mature 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument commitments drawn | 8,500,000 | $ 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 | 0.15% | ||||||||||||||||
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 | ||||||||||||||||
Notes Payable to Banks [Member] | Dz Bank [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, outstanding balance | $ 700,000 | $ 700,000 | |||||||||||||||
Small Business Administration Debentures and Borrowings [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument interest rate Percentage | 3.25% | 3.25% | |||||||||||||||
Loan commitment term | 4 years 6 months | ||||||||||||||||
Commitment fee percentage | 1.00% | ||||||||||||||||
Principal amount of loan | $ 34,024,756 | ||||||||||||||||
Extended maturity date | Apr. 30, 2024 | ||||||||||||||||
Debt instrument commitments amount fully utilized | $ 183,985,000 | $ 183,985,000 | |||||||||||||||
Debt instrument commitments available | 16,500,000 | 16,500,000 | |||||||||||||||
Debt instrument outstanding amount | 64,529,000 | 64,529,000 | |||||||||||||||
Debt instrument remaining amount | 10,529,000 | 10,529,000 | |||||||||||||||
FSVC's [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Principal amount of loan | $ 33,485,000 | ||||||||||||||||
7.25% Unsecured Senior Notes Due February 2026 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 3,000,000 | $ 3,250,000 | |||||||||||||||
7.50% Unsecured Senior Notes Due December 2027 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 11,650,000 | $ 8,500,000 | |||||||||||||||
Notes Payable to Banks Due in April 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | 17,762,000 | 17,762,000 | |||||||||||||||
Notes Payable to Banks with Maturity of April 15, 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Apr. 15, 2021 | ||||||||||||||||
Notes Payable to Banks with Maturity of September 1, 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maturity date | Sep. 1, 2021 | ||||||||||||||||
Retail and Privately Placed Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 30,000,000 | $ 33,625,000 | $ 30,000,000 | $ 6,000,000 | |||||||||||||
Debt instrument interest rate Percentage | 8.25% | 9.00% | 8.25% | ||||||||||||||
Maturity date | 2024 | 2021 | |||||||||||||||
Gain loss on sales of loans net | $ 4,145,000 | ||||||||||||||||
Net proceeds from offering | $ 31,786,000 | ||||||||||||||||
Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Time deposits | $ 250,000 | $ 250,000 | |||||||||||||||
Brokerage [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Average brokerage fee percentage in relation to the maturity of deposits | 0.15% |
Funds Borrowed - Summary of Mat
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail) $ in Thousands | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Three months or less | $ 133,194 |
Over three months through six months | 122,023 |
Over six months through one year | 214,520 |
Over one year | 684,377 |
Total deposits | $ 1,154,114 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 572 | $ 596 | $ 1,144 | $ 1,192 |
Operating cash flows from operating leases | 590 | 632 | 1,265 | 1,324 |
Right-of-use asset obtained in exchange for lease liability | $ (18) | $ (14) | $ (36) | $ (28) |
Leases - Schedule of Breakout o
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 10,750 | $ 11,737 |
Other current liabilities | 2,111 | 2,004 |
Operating lease liabilities | 9,889 | 11,018 |
Total operating lease liabilities | $ 12,000 | $ 13,022 |
Weighted average remaining lease term | 5 years 10 months 24 days | 6 years 4 months 24 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 1,247 | |
2022 | 2,411 | |
2023 | 2,356 | |
2024 | 2,373 | |
2025 | 2,390 | |
Thereafter | 3,521 | |
Total lease payments | 14,298 | |
Less imputed interest | 2,298 | |
Total operating lease liabilities | $ 12,000 | $ 13,022 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Income Tax Disclosure [Abstract] | |||
Goodwill and other intangibles | $ (44,145) | $ (44,799) | |
Provision for loan losses | 14,308 | 19,556 | |
Net operating loss carryforwards | [1] | 25,393 | 30,493 |
Accrued expenses, compensation, and other assets | 1,676 | 1,174 | |
Unrealized gains on other investments | (3,528) | (6,769) | |
Total deferred tax liability | (6,296) | (345) | |
Valuation allowance | (2,295) | (462) | |
Deferred tax liability, net | (8,591) | (807) | |
Taxes receivable | 1,072 | 1,757 | |
Net deferred and other tax assets (liabilities) | $ (7,519) | $ 950 | |
[1] | As of June 30, 2021, the Company and its subsidiaries had an estimated $103,838 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $23,098 as of June 30, 2021. |
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 | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Income Tax Rate Reconciliation [Line Items] | |
Net operating loss carryforwards | $ 103,838 |
Net operating loss carryforwards expiration period | expires at various dates between December 31, 2026 and December 31, 2035 |
Net operating loss carryforwards | $ 23,098 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Current | ||||
Federal | $ (795) | $ (795) | ||
State | (100) | $ (137) | (270) | $ (223) |
Deferred | ||||
Federal | (3,001) | 774 | (6,054) | 3,299 |
State | (2,632) | 216 | (3,287) | 1,026 |
Net (provision) benefit for income taxes | $ (6,528) | $ 853 | $ (10,406) | $ 4,102 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Statutory Federal income tax (provision) benefit at 21% | $ (3,805) | $ 655 | $ (6,524) | $ 4,067 |
State and local income taxes, net of federal income tax benefit | (743) | 122 | (1,275) | 760 |
Valuation allowance against net operating losses | (1,833) | (1,833) | ||
Change in effective state income tax rates and accrual | (1,399) | 196 | (1,369) | 149 |
Income attributable to non-controlling interest | 47 | 50 | 266 | (166) |
Non deductible expenses | 385 | (198) | 213 | (789) |
Other | 820 | 28 | 116 | 81 |
Net (provision) benefit for income taxes | $ (6,528) | $ 853 | $ (10,406) | $ 4,102 |
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) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal income tax (provision) benefit percentage | 21.00% | 21.00% |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) | Jun. 15, 2018 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 01, 2016 | Feb. 29, 2016 | Jun. 16, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock option outstanding | 1,209,642 | 1,264,315 | 1,209,642 | 951,669 | 550,040 | ||||||
Stock option exercisable | [1] | 347,824 | 347,824 | ||||||||
Unvested shares under restricted common stock plan | 861,818 | 902,952 | 861,818 | 773,362 | |||||||
Weighted average fair value of options granted | $ 6.79 | ||||||||||
Intrinsic value of options vested | $ 29,000 | $ 77,000 | |||||||||
Restricted Stock Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares outstanding, unvested restricted stock units | 16,803 | 16,803 | |||||||||
Number of shares outstanding, vested restricted stock units | 47,472 | 47,472 | |||||||||
Number of shares, granted | 16,803 | ||||||||||
Number of shares vested with deferred settlement | 47,272 | ||||||||||
Restricted Stock Units [Member] | Vest on June 17, 2022 [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares outstanding, unvested restricted stock units | 16,803 | 16,803 | |||||||||
Number of shares, granted | 16,803 | ||||||||||
Vesting period | 1 year | ||||||||||
Exercise price for grant per share | $ 8.87 | ||||||||||
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, unvested restricted stock units | 47,156 | ||||||||||
Number of shares, granted | 47,156 | ||||||||||
Vesting period | 1 year | ||||||||||
Exercise price for grant per share | $ 3.16 | ||||||||||
Restricted Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares outstanding, unvested restricted stock units | 442,190 | 452,522 | 442,190 | 416,140 | 284,879 | ||||||
Weighted average fair value of options granted | $ 3.24 | $ 3.30 | |||||||||
Number of shares, granted | 163,561 | 163,561 | 165,674 | 229,408 | |||||||
Exercise price for grant per share | $ 6.79 | $ 6.21 | |||||||||
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 | 2,210,968 | ||||||||
Shares were rolled into the 2018 Plan | 435,474 | 435,474 | |||||||||
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 under restricted common stock plan | 442,190 | 442,190 | |||||||||
2006 Stock Option Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Issuance of maximum number of shares approved | 800,000 | ||||||||||
Number of additional shares available for issuance | 0 | 0 | |||||||||
2006 Stock Option Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based compensation, options term | 10 years | ||||||||||
2015 Director Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 258,334 | 300,000 | |||||||||
2015 Director Plan [Member] | Non Employee Director One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 12,000 | ||||||||||
2015 Director Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based compensation, options term | 10 years | ||||||||||
Amended Director Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 200,000 | 200,000 | |||||||||
Number of additional shares available for issuance | 0 | 0 | |||||||||
Amended Director Plan [Member] | Director [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 9,000 | 9,000 | |||||||||
Amended Director Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based compensation, options term | 10 years | ||||||||||
[1] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at June 30, 2021 and the related exercise price of the underlying options, was $2,854,000 for outstanding options and $844,000 for exercisable options as of June 30, 2021. The remaining contractual life was 8.50 years for outstanding options and 7.47 years for exercisable options at June 30, 2021. |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract] | |||
Risk free interest rate | 0.97% | 1.46% | |
Expected life of option in years | [1] | 6 years 3 months | 6 years 3 months |
Expected volatility | [2] | 53.98% | 50.18% |
[1] | Expected life is calculated using the simplified method. | ||
[2] | We determine our expected volatility based on our historical volatility. |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options beginning balance | 1,264,315 | 951,669 | 550,040 | |
Granted | 0 | 317,398 | 444,557 | |
Cancelled | (32,446) | (3,984) | (42,928) | |
Exercised | [1] | (22,227) | (768) | 0 |
Number of options ending balance | 1,209,642 | 1,264,315 | 951,669 | |
Granted | 0 | 317,398 | 444,557 | |
Options exercisable | [2] | 347,824 | ||
Exercise price per share, lower range limit beginning balance | $ 2.14 | $ 2.14 | $ 2.14 | |
Exercise price per share, upper range limit beginning balance | 12.55 | 12.55 | 13.53 | |
Exercise price per share, granted | 6.79 | |||
Exercise price per share, exercised | [1] | 0 | ||
Exercise price per share, lower range limit ending balance | 2.14 | 2.14 | 2.14 | |
Exercise price per share, upper range limit ending balance | 12.55 | 12.55 | 12.55 | |
Exercise price per share, option exercisable lower range limit | [2] | 2.14 | ||
Exercise price per share, option exercisable upper range limit | [2] | 12.55 | ||
Weighted average exercise price, beginning balance | 6.50 | 6.41 | 6.58 | |
Weighted average exercise price, granted | 6.79 | 6.24 | ||
Weighted average exercise price, cancelled | 5.98 | 6.89 | 6.91 | |
Weighted average exercise price, exercised | [1] | 5.76 | 6.79 | 0 |
Weighted average exercise price, ending balance | 6.53 | 6.50 | 6.41 | |
Weighted average exercise price, options exercisable | [2] | 6.53 | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price per share, granted | 4.89 | |||
Exercise price per share, cancelled | 4.89 | 6.55 | 2.22 | |
Exercise price per share, exercised | [1] | 5.27 | 6.55 | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price per share, granted | 6.68 | |||
Exercise price per share, cancelled | 7.25 | 7.25 | $ 13.53 | |
Exercise price per share, exercised | $ 7.25 | $ 7.25 | ||
[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 $77,000 and $0 for the three and six months ended June 30, 2021 and 2020. | |||
[2] | The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at June 30, 2021 and the related exercise price of the underlying options, was $2,854,000 for outstanding options and $844,000 for exercisable options as of June 30, 2021. The remaining contractual life was 8.50 years for outstanding options and 7.47 years for exercisable options at June 30, 2021. |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||||
Aggregate intrinsic value for option exercised | $ 77,000 | $ 77,000 | $ 0 | $ 0 |
Aggregate intrinsic value of option outstanding | 2,854,000 | 2,854,000 | ||
Aggregate intrinsic value of option exercisable | $ 844,000 | $ 844,000 | ||
Remaining contractual life of option outstanding | 8 years 6 months | |||
Remaining contractual life of option exercisable | 7 years 5 months 19 days |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Grant price per share, cancelled, lower limit | $ 5.58 | $ 6.55 | ||||||
Grant price per share, cancelled, upper limit | $ 7.25 | |||||||
Restricted Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares, beginning balance | 452,522 | 416,140 | 416,140 | 284,879 | 284,879 | |||
Number of shares, granted | 163,561 | 163,561 | 165,674 | 229,408 | ||||
Number of shares, cancelled | (10,332) | (7,602) | (8,755) | |||||
Number of shares, vested | [1] | (119,577) | (89,392) | |||||
Number of shares, ending balance | 442,190 | 452,522 | 442,190 | 416,140 | ||||
Grant price per share, lower range limit beginning balance | $ 4.80 | $ 4.39 | $ 4.39 | $ 3.95 | $ 3.95 | |||
Grant price per share, upper range limit beginning balance | 7.25 | 7.25 | 7.25 | 7.25 | 7.25 | |||
Grant price per share, granted, lower limit | 4.89 | |||||||
Grant price per share, granted, upper limit | 6.68 | |||||||
Grant price per share, cancelled, lower limit | 4.89 | 4.89 | 3.95 | |||||
Grant price per share, cancelled, upper limit | 7.25 | 7.25 | 7.25 | |||||
Grant price per share, vested, lower limit | [1] | 4.39 | 3.95 | |||||
Grant price per share, vested, upper limit | [1] | 7.25 | 6.55 | |||||
Grant price per share, lower range limit ending balance | 4.80 | 4.80 | 4.80 | 4.39 | ||||
Grant price per share, upper range limit ending balance | 7.25 | 7.25 | 7.25 | 7.25 | ||||
Grant price per share, granted | 6.79 | |||||||
Weighted average grant price beginning balance | 6.48 | [2] | 6.24 | 6.24 | $ 6.01 | 6.01 | ||
Weighted average grant price, granted | 6.79 | 6.21 | ||||||
Weighted average grant price, cancelled | 6.13 | 5.96 | 6.93 | |||||
Weighted average grant price, vested | [1] | 6.09 | 5.37 | |||||
Weighted average grant price, ending balance | $ 6.49 | $ 6.48 | [2] | $ 6.49 | $ 6.24 | |||
[1] | The aggregate fair value of the restricted stock vested was $0 and $813,000 for the three and six months ended June 30, 2021 and was $0 and $553,000 for the three and six months ended June 30, 2020. | |||||||
[2] | The aggregate fair value of the restricted stock was $3,918,000 as of June 30, 2021. The remaining vesting period was 3.68 years at June 30, 2021. |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of restricted stock vested | $ 0 | $ 0 | $ 813,000 | $ 553,000 |
Aggregate fair value of restricted stock outstanding | $ 3,918,000 | $ 3,918,000 | ||
Remaining vesting period of restricted stock | 3 years 8 months 4 days |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward | ||||
Number of options beginning balance | 902,952 | 773,362 | 773,362 | |
Number of options, granted | 0 | 317,398 | 444,557 | |
Number of options, cancelled | (33,134) | (2,530) | ||
Number of options, vested | (8,000) | (185,278) | ||
Number of options ending balance | 861,818 | 902,952 | 861,818 | 773,362 |
Exercise price per share beginning balance, Lower limit | $ 4.89 | $ 4.89 | $ 4.89 | |
Exercise price per share beginning balance, Upper limit | 7.25 | 7.25 | 7.25 | |
Exercise price per share, Granted | 6.79 | |||
Exercise price per share, Cancelled, Lower limit | 4.89 | 6.55 | ||
Exercise price per share, Cancelled, Upper limit | 7.25 | 7.25 | ||
Exercise price per share, Vested, Lower limit | 5.58 | 6.55 | ||
Exercise price per share, Vested, Upper limit | 7.25 | |||
Exercise price per share ending balance, Lower limit | 4.89 | 4.89 | 4.89 | $ 4.89 |
Exercise price per share ending balance, Upper limit | 7.25 | 7.25 | 7.25 | 7.25 |
Weighted average exercise price | 6.50 | 6.42 | 6.42 | |
Weighted average exercise price, granted | 6.79 | |||
Weighted average exercise price, cancelled | 5.99 | 6.96 | ||
Weighted average exercise price, vested | 5.58 | 6.67 | ||
Weighted average exercise price | $ 6.53 | $ 6.50 | $ 6.53 | $ 6.42 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2021Segment | Dec. 31, 2020 | |
Segment Reporting Disclosure [Line Items] | ||
Number of business segments | 6 | |
Number of operating segments | 4 | |
Number of non-operating segments | 2 | |
Capital ratios for operating segments | 12.8 | 11.9 |
Operating Segments [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Capital ratios for operating segments | 20 | |
Roofs [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 29.00% | |
Swimming Pools [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 27.00% | |
Windows [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 12.00% | |
Solar Panels [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 10.00% | |
Texas [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 14.00% | |
Florida [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 9.00% | |
California [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Loan outstanding percent | 9.00% | |
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 | 20.00% | |
Geographic Concentration Risk [Member] | Trailers [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 10.00% | |
Geographic Concentration Risk [Member] | Midwest [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 66.00% | |
Geographic Concentration Risk [Member] | New York City [Member] | ||
Segment Reporting Disclosure [Line Items] | ||
Aggregate percentage of loans lending | 85.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 37,375 | $ 35,588 | $ 74,455 | $ 71,130 | ||||
Total interest expense | 7,884 | 8,835 | 16,292 | 17,835 | ||||
Net interest income | 29,491 | 26,753 | 58,163 | 53,295 | ||||
Provision for loan losses (benefit) | (682) | 16,941 | 2,336 | 33,482 | ||||
Net interest income after provision (benefit) for loan losses | 30,173 | 9,812 | 55,827 | 19,813 | ||||
Sponsorship and race winnings | 4,345 | 3,626 | 6,818 | 6,199 | ||||
Race team related expenses | (2,674) | (1,818) | (4,796) | (3,948) | ||||
Other income (expense), net | (13,724) | (14,738) | (26,781) | (41,432) | ||||
Income (loss) before income taxes | 18,120 | (3,118) | 31,068 | (19,368) | ||||
Income tax (provision) benefit | (6,528) | 853 | (10,406) | 4,102 | ||||
Net income (loss) | 11,592 | $ 9,071 | (2,265) | $ (13,001) | 20,662 | (15,266) | ||
Balance Sheet Data | ||||||||
Total loans, net | 1,293,621 | 1,193,617 | 1,293,621 | 1,193,617 | $ 1,172,290 | |||
Total assets | 1,739,747 | 1,651,743 | 1,739,747 | 1,651,743 | $ 1,642,411 | |||
Total funds borrowed | $ 1,382,109 | $ 1,295,794 | $ 1,382,109 | $ 1,295,794 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 2.43% | (0.98%) | 2.08% | (2.23%) | ||||
Return on average equity | 12.90% | (4.97%) | 11.09% | (10.82%) | ||||
Interest yield | 11.17% | 10.95% | 11.50% | 11.31% | ||||
Net interest margin | 8.84% | 8.23% | 9.01% | 8.48% | ||||
Reserve coverage | 3.50% | 5.31% | 3.50% | 5.31% | ||||
Delinquency status | [1] | 0.22% | 1.26% | 0.22% | 1.26% | |||
Charge-off ratio | 3.28% | 1.39% | 2.15% | 2.21% | ||||
RPAC [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest expense | $ 34 | $ 40 | $ 75 | $ 80 | ||||
Net interest income | (34) | (40) | (75) | (80) | ||||
Net interest income after provision (benefit) for loan losses | (34) | (40) | (75) | (80) | ||||
Sponsorship and race winnings | 4,345 | 3,626 | 6,818 | 6,199 | ||||
Race team related expenses | (2,674) | (1,818) | (4,796) | (3,948) | ||||
Other income (expense), net | (1,862) | (1,378) | (3,623) | (3,223) | ||||
Income (loss) before income taxes | (225) | 390 | (1,676) | (1,052) | ||||
Income tax (provision) benefit | 57 | (97) | 421 | 262 | ||||
Net income (loss) | (168) | 293 | (1,255) | (790) | ||||
Balance Sheet Data | ||||||||
Total assets | 31,877 | 30,542 | 31,877 | 30,542 | ||||
Total funds borrowed | $ 8,016 | $ 8,615 | $ 8,016 | $ 8,615 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (1.05%) | 3.88% | (7.72%) | (5.17%) | ||||
Return on average equity | (39.70%) | (53.94%) | (244.87%) | 81.74% | ||||
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 28,886 | $ 27,229 | $ 56,328 | $ 53,563 | ||||
Total interest expense | 2,863 | 3,226 | 5,657 | 6,792 | ||||
Net interest income | 26,023 | 24,003 | 50,671 | 46,771 | ||||
Provision for loan losses (benefit) | 1,017 | 8,292 | 4,630 | 18,893 | ||||
Net interest income after provision (benefit) for loan losses | 25,006 | 15,711 | 46,041 | 27,878 | ||||
Other income (expense), net | (7,455) | (6,497) | (12,918) | (13,869) | ||||
Income (loss) before income taxes | 17,551 | 9,214 | 33,123 | 14,009 | ||||
Income tax (provision) benefit | (4,519) | (2,356) | (8,529) | (3,582) | ||||
Net income (loss) | 13,032 | 6,858 | 24,594 | 10,427 | ||||
Balance Sheet Data | ||||||||
Total loans, net | 855,900 | 759,764 | 855,900 | 759,764 | ||||
Total assets | 868,709 | 775,151 | 868,709 | 775,151 | ||||
Total funds borrowed | $ 712,777 | $ 617,066 | $ 712,777 | $ 617,066 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 6.24% | 3.68% | 6.06% | 2.85% | ||||
Return on average equity | 31.19% | 18.38% | 30.32% | 14.25% | ||||
Interest yield | 14.03% | 14.91% | 14.18% | 14.98% | ||||
Net interest margin | 12.64% | 13.15% | 12.76% | 13.08% | ||||
Reserve coverage | 3.42% | 3.43% | 3.42% | 3.43% | ||||
Delinquency status | [1] | 0.32% | 0.44% | 0.32% | 0.44% | |||
Charge-off ratio | (0.44%) | 1.95% | 0.12% | 2.78% | ||||
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 8,228 | $ 6,326 | $ 16,146 | $ 12,213 | ||||
Total interest expense | 1,143 | 1,236 | 2,351 | 2,523 | ||||
Net interest income | 7,085 | 5,090 | 13,795 | 9,690 | ||||
Provision for loan losses (benefit) | 756 | 760 | 1,206 | 2,296 | ||||
Net interest income after provision (benefit) for loan losses | 6,329 | 4,330 | 12,589 | 7,394 | ||||
Other income (expense), net | (2,638) | (1,962) | (4,552) | (4,302) | ||||
Income (loss) before income taxes | 3,691 | 2,368 | 8,037 | 3,092 | ||||
Income tax (provision) benefit | (951) | (606) | (2,070) | (791) | ||||
Net income (loss) | 2,740 | 1,762 | 5,967 | 2,301 | ||||
Balance Sheet Data | ||||||||
Total loans, net | 362,370 | 278,000 | 362,370 | 278,000 | ||||
Total assets | 375,189 | 288,501 | 375,189 | 288,501 | ||||
Total funds borrowed | $ 295,887 | $ 229,237 | $ 295,887 | $ 229,237 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 3.04% | 2.58% | 3.39% | 1.72% | ||||
Return on average equity | 15.19% | 12.88% | 16.96% | 8.62% | ||||
Interest yield | 9.48% | 9.66% | 9.56% | 9.58% | ||||
Net interest margin | 8.16% | 7.77% | 8.17% | 7.58% | ||||
Reserve coverage | 1.60% | 1.44% | 1.60% | 1.44% | ||||
Delinquency status | [1] | 0.02% | 0.05% | 0.02% | 0.05% | |||
Charge-off ratio | 0.26% | 0.30% | 0.99% | 0.65% | ||||
Operating Segments [Member] | Commercial Lending [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 1,383 | $ 1,726 | $ 2,865 | $ 3,484 | ||||
Total interest expense | 716 | 617 | 1,288 | 1,274 | ||||
Net interest income | 667 | 1,109 | 1,577 | 2,210 | ||||
Net interest income after provision (benefit) for loan losses | 667 | 1,109 | 1,577 | 2,210 | ||||
Other income (expense), net | (69) | (584) | (529) | (1,479) | ||||
Income (loss) before income taxes | 598 | 525 | 1,048 | 731 | ||||
Income tax (provision) benefit | (150) | (131) | (263) | (182) | ||||
Net income (loss) | 448 | 394 | 785 | 549 | ||||
Balance Sheet Data | ||||||||
Total loans, net | 66,236 | 68,140 | 66,236 | 68,140 | ||||
Total assets | 90,563 | 86,831 | 90,563 | 86,831 | ||||
Total funds borrowed | $ 72,450 | $ 70,567 | $ 72,450 | $ 70,567 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | 2.36% | 1.86% | 1.95% | 1.30% | ||||
Return on average equity | 11.78% | 9.28% | 9.77% | 6.48% | ||||
Interest yield | 9.16% | 10.67% | 9.66% | 10.97% | ||||
Net interest margin | 4.42% | 6.86% | 5.32% | 6.96% | ||||
Reserve coverage | 0.00% | 0.00% | ||||||
Delinquency status | [1] | 0.11% | 0.15% | 0.11% | 0.15% | |||
Charge-off ratio | 0.00% | 0.00% | ||||||
Operating Segments [Member] | Medallion Lending [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ (1,475) | $ (7) | $ (1,544) | $ 995 | ||||
Total interest expense | 2,524 | 988 | 3,894 | 2,837 | ||||
Net interest income | (3,999) | (995) | (5,438) | (1,842) | ||||
Provision for loan losses (benefit) | (2,943) | 7,889 | (3,987) | 12,293 | ||||
Net interest income after provision (benefit) for loan losses | (1,056) | (8,884) | (1,451) | (14,135) | ||||
Other income (expense), net | (1,157) | (2,292) | (3,301) | (10,865) | ||||
Income (loss) before income taxes | (2,213) | (11,176) | (4,752) | (25,000) | ||||
Income tax (provision) benefit | 556 | 2,785 | 1,193 | 6,230 | ||||
Net income (loss) | (1,657) | (8,391) | (3,559) | (18,770) | ||||
Balance Sheet Data | ||||||||
Total loans, net | 5,764 | 84,369 | 5,764 | 84,369 | ||||
Total assets | 101,205 | 190,657 | 101,205 | 190,657 | ||||
Total funds borrowed | $ 80,959 | $ 151,614 | $ 80,959 | $ 151,614 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (6.10%) | (17.19%) | (6.29%) | (18.56%) | ||||
Return on average equity | (30.51%) | (85.96%) | (31.44%) | (92.14%) | ||||
Interest yield | (70.71%) | (0.03%) | (30.90%) | 2.04% | ||||
Net interest margin | (189.15%) | (4.08%) | (108.84%) | (3.78%) | ||||
Reserve coverage | 65.11% | 29.84% | 65.11% | 29.84% | ||||
Delinquency status | [1] | 10.29% | 10.29% | |||||
Charge-off ratio | 513.86% | 1.12% | 216.01% | 3.73% | ||||
Intersegment Eliminations [Member] | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Total interest income | $ 353 | $ 314 | $ 660 | $ 875 | ||||
Total interest expense | 604 | 2,728 | 3,027 | 4,329 | ||||
Net interest income | (251) | (2,414) | (2,367) | (3,454) | ||||
Provision for loan losses (benefit) | 488 | 487 | ||||||
Net interest income after provision (benefit) for loan losses | (739) | (2,414) | (2,854) | (3,454) | ||||
Other income (expense), net | (543) | (2,025) | (1,858) | (7,694) | ||||
Income (loss) before income taxes | (1,282) | (4,439) | (4,712) | (11,148) | ||||
Income tax (provision) benefit | (1,521) | 1,258 | (1,158) | 2,165 | ||||
Net income (loss) | (2,803) | (3,181) | (5,870) | (8,983) | ||||
Balance Sheet Data | ||||||||
Total loans, net | 3,351 | 3,344 | 3,351 | 3,344 | ||||
Total assets | 272,204 | 280,061 | 272,204 | 280,061 | ||||
Total funds borrowed | $ 212,020 | $ 218,695 | $ 212,020 | $ 218,695 | ||||
Selected Financial Ratios | ||||||||
Return on average assets | (3.85%) | (8.96%) | (4.08%) | (7.14%) | ||||
Return on average equity | (1.95%) | (38.05%) | (30.46%) | (26.03%) | ||||
[1] | Loans 90 days or more past due. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Commitments And Contingencies [Abstract] | |
Employment agreements expiration description | Employment agreements expire at various dates through 2025 |
Future minimum payments | $ 11,050,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Mar. 01, 2021 | Jan. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | |||||
Repayments of note payable | $ 335,403,000 | $ 218,855,000 | |||
LAX Group,LLC [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 | $ 178,000 | $ 133,000 | |||
Consulting services revenue from related party | $ 4,200 | ||||
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity ownership percentage by a related party | 10.00% | ||||
Common stock vesting percentage | 3.34% | ||||
Percentage of equity raised from outside investors | 5.00% | ||||
Percentage of bonus received from related party | 10.00% | ||||
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | Minimum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Valuation of equity raised from outside investors | $ 1,500,000 | ||||
Petty Trust [Member] | RPAC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Annual payment for services provided to the entity | 700,000 | ||||
Note payable to the Petty Trust | $ 7,516,000 | ||||
Interest percentage of Notes payable | 2.00% | ||||
Repayments of note payable | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Equity investments | $ 10,090 | $ 9,746 | |
Investment securities | 48,307 | 46,792 | |
Loans receivable | 1,340,567 | 1,229,838 | |
Carrying Amount [Member] | |||
Financial assets | |||
Cash, cash equivalents and federal funds sold | [1] | 91,553 | 112,040 |
Equity investments | 10,090 | 9,746 | |
Investment securities | 48,307 | 46,792 | |
Loans receivable | 1,293,621 | 1,172,290 | |
Accrued interest receivable | [2] | 9,525 | 10,338 |
Equity securities, fair value | [3] | 1,969 | |
Financial liabilities | |||
Funds borrowed | [4] | 1,382,109 | 1,312,255 |
Accrued interest payable | [2] | 3,883 | 4,673 |
Fair Value Recurring [Member] | |||
Financial assets | |||
Cash, cash equivalents and federal funds sold | [1] | 91,553 | 112,040 |
Equity investments | 10,090 | 9,746 | |
Investment securities | 48,307 | 46,792 | |
Loans receivable | 1,293,621 | 1,172,290 | |
Accrued interest receivable | [2] | 9,525 | 10,338 |
Equity securities, fair value | [3] | 1,969 | |
Financial liabilities | |||
Funds borrowed | [4] | 1,382,109 | 1,312,591 |
Accrued interest payable | [2] | $ 3,883 | $ 4,673 |
[1] | Categorized as level 1 within the fair value hierarchy, excluding $1,250 and $1,500 in interest bearing deposits categorized as level 2 as of June 30, 2021 and December 31, 2020. See Note 13. | ||
[2] | Categorized as level 3 within the fair value hierarchy. See Note 13. | ||
[3] | Included within other assets on the balance sheet. | ||
[4] | There were no publicly traded retail notes as of June 30, 2021. As of December 31, 2020, publicly traded retail notes traded at a premium to par of $336. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | $ 1,250,000 | |
Publicly traded retail notes traded at a premium to par | 0 | $ 336,000 |
Fair Value Recurring [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest-bearing funds deposited in other banks | 1,250,000 | 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 | $ 1,250,000 | $ 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 ($) | Jun. 30, 2021 | Dec. 31, 2020 | |||
Assets | |||||
Interest-bearing deposits | $ 1,250,000 | ||||
Fair Value Recurring [Member] | |||||
Assets | |||||
Interest-bearing deposits | 1,250,000 | $ 1,500,000 | |||
Available for sale investment securities | 48,307,000 | 46,792,000 | [1] | ||
Equity securities, fair value | [2] | 1,969,000 | |||
Total | 51,526,000 | [3] | 48,292,000 | ||
Fair Value Recurring [Member] | Level 1 [Member] | |||||
Assets | |||||
Equity securities, fair value | 1,969,000 | ||||
Total | [3] | 1,969,000 | |||
Fair Value Recurring [Member] | Level 2 [Member] | |||||
Assets | |||||
Interest-bearing deposits | 1,250,000 | 1,500,000 | |||
Available for sale investment securities | 48,307,000 | 46,792,000 | [1] | ||
Total | $ 49,557,000 | [3] | $ 48,292,000 | ||
[1] | Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets. | ||||
[2] | Included within other assets on the balance sheet. | ||||
[3] | Total unrealized gain (loss) of $27 and ($578), net of tax, was included in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2021 related to these assets. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||||||
Net change in unrealized gains (losses) on investments, net of tax | $ 27 | $ (605) | $ 981 | $ 147 | $ 578 | $ (1,013) |
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 ($) | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Assets | ||||||||
Impaired loans | $ 107,624,000 | $ 107,131,000 | ||||||
Loan collateral in process of foreclosure | 49,039,000 | [1] | $ 50,733,000 | 54,560,000 | [1] | $ 47,375,000 | $ 46,817,000 | $ 52,711,000 |
Fair Value, Nonrecurring | ||||||||
Assets | ||||||||
Equity investments | 10,090,000 | 9,746,000 | ||||||
Impaired loans | 40,770,000 | 62,174,000 | ||||||
Loan collateral in process of foreclosure | 49,039,000 | 54,560,000 | ||||||
Total | 99,899,000 | 126,480,000 | ||||||
Fair Value, Nonrecurring | Level 3 [Member] | ||||||||
Assets | ||||||||
Equity investments | 10,090,000 | 9,746,000 | ||||||
Impaired loans | 40,770,000 | 62,174,000 | ||||||
Loan collateral in process of foreclosure | 49,039,000 | 54,560,000 | ||||||
Total | $ 99,899,000 | $ 126,480,000 | ||||||
[1] | Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,919 as of June 30, 2021 and $3,535 as of December 31, 2020. |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Principal portion of loans serviced, fair value | $ 107,624,000 | $ 107,131,000 | ||||||
Loan collateral in process of foreclosure | $ 49,039,000 | [1] | $ 54,560,000 | [1] | $ 50,733,000 | $ 47,375,000 | $ 46,817,000 | $ 52,711,000 |
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Equity Value | $ / shares | $ 8.73 | $ 8.73 | ||||||
Impaired Loans [Member] | Market Approach [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Impaired loans, balance percentage | 0.60 | 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 | 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 | 0.0600 | ||||||
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Principal portion of loans serviced, fair value | $ 0 | $ 600 | ||||||
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Principal portion of loans serviced, fair value | 79,500 | 108,700 | ||||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Minimum [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Loan collateral in process of foreclosure value | 1,800 | |||||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Maximum [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Loan collateral in process of foreclosure value | 31,500 | |||||||
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 Transfer Prices [Member] | Minimum [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Loan collateral in process of foreclosure value | 0 | 600 | ||||||
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Loan collateral in process of foreclosure value | 79,500 | 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 | 9,271,000 | 8,291,000 | ||||||
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 | 819,000 | 1,455,000 | ||||||
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 | 40,770,000 | 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 Transfer Prices [Member] | ||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||
Loan collateral in process of foreclosure | $ 49,039,000 | $ 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 the Bank of $3,919 as of June 30, 2021 and $3,535 as of December 31, 2020. |
Medallion Bank Preferred Stoc_2
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($) | Dec. 17, 2019 | Jul. 21, 2011 | Jun. 30, 2021 |
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 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) | Feb. 28, 2021 | Jul. 31, 2020 | Oct. 31, 2018 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2008 |
Variable Interest Entity [Line Items] | ||||||
Variable interest entity net gain | $ 25,325,000 | |||||
Equity investments | $ 10,090,000 | $ 9,746,000 | ||||
Maturity date | Feb. 28, 2026 | Sep. 24, 2024 | Dec. 31, 2027 | |||
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 | $ 85,451,000 | |||||
Maturity date | Aug. 20, 2021 |