MEDALLION FINANCIAL CORP, 10-K filed on 30 Mar 20
 | XBRL Documents
v3.20.1
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2019
Mar. 27, 2020
Jun. 28, 2019
Document and Entity Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Registrant Name MEDALLION FINANCIAL CORP    
Entity Central Index Key 0001000209    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Common Stock, Shares Outstanding   24,806,656  
Entity Public Float     $ 137,883,018
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    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Definitive Proxy Statement for its 2020 Annual Meeting of Shareholders, which Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2019, are incorporated by reference into Part III of this Form 10-K.

   
Common Stock [Member]      
Document and Entity Information [Line Items]      
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol MFIN    
Security Exchange Name NASDAQ    
9.000% Senior Notes due 2021 [Member]      
Document and Entity Information [Line Items]      
Title of 12(b) Security 9.000% Senior Notes due 2021    
Trading Symbol MFINL    
Security Exchange Name NASDAQ    
v3.20.1
Consolidated Balance Sheet - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Assets    
Cash [1] $ 17,700 $ 23,842
Federal funds sold 50,121 33,871
Equity investments 10,079 9,197
Investment securities 48,998 45,324
Loans 1,160,855 1,017,882
Allowance for loan losses [2] (46,093) (36,395)
Net loans receivable 1,114,762 981,487
Accrued interest receivable 8,662 7,413
Property, equipment, and right-of-use lease asset, net 14,375 1,222
Loan collateral in process of foreclosure [3] 52,711 49,495
Goodwill 150,803 150,803
Intangible assets, net 52,536 53,982
Income tax receivable 1,516  
Other assets 19,404 25,210
Total assets 1,541,667 1,381,846
Liabilities    
Accounts payable and accrued expenses [4] 16,234 18,789
Accrued interest payable 4,398 3,852
Deposits [5] 951,651 848,040
Short-term borrowings 38,223 55,178
Deferred tax liabilities [6] 9,341 6,973
Operating lease liabilities 12,738  
Long-term debt [7] 174,614 158,810
Total liabilities 1,207,199 1,091,642
Commitments and contingencies [8]
Stockholders’ equity    
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding)
Common stock (50,000,000 shares of $0.01 par value stock authorized- 27,597,802 shares at December 31, 2019 and 27,385,600 shares at December 31, 2018 issued) 276 274
Additional paid in capital 275,511 274,292
Treasury stock (2,951,243 shares at December 31, 2019 and December 31, 2018) (24,919) (24,919)
Accumulated other comprehensive income (loss) 999 (82)
Retained earnings 11,281 13,043
Total stockholders’ equity 263,148 262,608
Non-controlling interest in consolidated subsidiaries 71,320 27,596
Total equity 334,468 290,204
Total liabilities and equity $ 1,541,667 $ 1,381,846
Number of shares outstanding 24,646,559 24,434,357
Book value per share $ 10.68 $ 10.75
[1] Includes restricted cash of $2,970 as of December 31, 2019.
[2] Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.
[3] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $8,163 and $3,134 as of December 31, 2019 and 2018.
[4] Includes the short-term portion of lease liabilities of $2,085 as of December 31, 2019. Refer to Note 8 for more details.
[5] Includes $2,594 of deferred financing costs as of December 31, 2019. Refer to Note 7 for more details.
[6] Includes $1,812 of income tax receivable as of December 31, 2018. Refer to Note 9 for more details.
[7] Includes $2,511 of deferred financing costs as of December 31, 2019. Refer to Note 7 for more details.
[8] Refer to Note 13 for details.
v3.20.1
Consolidated Balance Sheet (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 27,597,802 27,385,600
Treasury stock,shares 2,951,243 2,951,243
Restricted cash $ 2,970  
Loan collateral in process of foreclosure, financed sales collateral to third parties 8,163 $ 3,134
Short term lease liabilities 2,085  
Income tax receivable   $ 1,812
Deposits [Member]    
Deferred financing costs 2,594  
Long-Term Debt [Member]    
Deferred financing costs $ 2,511  
v3.20.1
Consolidated Statements of Income - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Interest and fees on loans [1]   $ 95,080,000  
Interest and dividends on investment securities [1]   1,644,000  
Medallion lease income [1]   133,000  
Interest income on investments [1]   3,287,000  
Interest income $ 132,562,000    
Dividends and interest income on short-term investments [1]   0  
Total interest income /total investment income [1],[2]   100,836,000  
Interest on deposits [1]   14,230,000  
Interest on short-term borrowings [1]   4,441,000  
Interest on long-term debt [1]   6,145,000  
Interest expense [1]   3,551,000  
Total interest expense 35,045,000 28,367,000 [1],[3]  
Net interest income/net investment income 97,517,000 72,469,000 [1]  
Provision for loan losses 47,386,000 59,008,000 [1]  
Net interest income after provision for loan losses 50,131,000 13,461,000 [1]  
Other income (loss)      
Gain on deconsolidation of Trust III [1]   25,325,000  
Sponsorship and race winnings, net 18,742,000 14,368,000 [1]  
Gain on the extinguishment of debt 4,145,000    
Gain on sale of loans [1]   4,946,000  
Writedown of loan collateral in process of foreclosure [1]   (2,188,000)  
Impairment of equity investments [1]   (939,000)  
Other income [1]   494,000  
Total other income, net [1]   42,006,000  
Other expenses      
Salaries and employee benefits [1]   21,706,000  
Race team related expenses 8,996,000 7,121,000 [1]  
Professional fees [1]   9,332,000  
Collection costs [1]   5,207,000  
Loan servicing fees [1]   3,470,000  
Rent expense [1]   2,040,000  
Regulatory fees [1]   1,703,000  
Amortization of intangible assets 1,446,000 1,083,000 [1]  
Travel, meals, and entertainment [1]   1,448,000  
Intangible asset impairment [1]   5,615,000  
Other expenses [1],[4]   7,464,000  
Total other expenses [1],[5]   66,189,000  
Income (loss) before income taxes/net investment loss before taxes 2,337,000 (10,722,000) [1],[5]  
Income tax (provision) benefit [1]   (373,000)  
Net income (loss) after taxes/net investment income (loss) after taxes [1]   (11,095,000)  
Net realized losses on investments [1],[6]   (34,745,000)  
Income tax benefit [1]   8,426,000  
Total net realized losses on investments [1]   (26,319,000)  
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries [1]   29,115,000  
Net change in unrealized depreciation on investments other than securities [1]   (1,915,000)  
Net change in unrealized appreciation (depreciation) on investments [1]   (4,403,000)  
Income tax (provision) benefit [1]   (8,122,000)  
Net unrealized appreciation on investments [1]   14,675,000  
Net realized/unrealized gains (losses) on investments [1]   (11,644,000)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations $ 1,996,000 (22,739,000) [1]  
Less: income attributable to the non-controlling interest [1]   2,307,000  
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations [1]   $ (25,046,000)  
Basic net income (loss) per share $ (0.07) $ (1.03) [1] $ 0.01
Diluted net income (loss) per share $ (0.07) $ (1.03) [1] $ 0.01
Weighted average common shares outstanding      
Basic 24,342,979 24,214,978 [1] 23,919,994
Diluted 24,342,979 24,214,978 [1] 24,053,307
Bank Holding Company Accounting [Member]      
Interest and fees on loans $ 130,167,000    
Interest and dividends on investment securities 2,225,000    
Medallion lease income 170,000    
Total interest income /total investment income [2] 132,562,000    
Interest on deposits 22,521,000    
Interest on short-term borrowings 3,242,000    
Interest on long-term debt 9,282,000    
Total interest expense [3] 35,045,000    
Net interest income/net investment income 97,517,000    
Provision for loan losses 47,386,000    
Net interest income after provision for loan losses 50,131,000    
Other income (loss)      
Sponsorship and race winnings, net 18,742,000    
Gain on the extinguishment of debt 4,145,000    
Writedown of loan collateral in process of foreclosure (4,381,000)    
Other income 1,881,000    
Total other income, net 20,387,000    
Other expenses      
Salaries and employee benefits 24,971,000    
Race team related expenses 8,996,000    
Professional fees 7,402,000    
Collection costs 6,638,000    
Loan servicing fees 5,253,000    
Rent expense 2,419,000    
Regulatory fees 1,722,000    
Amortization of intangible assets 1,446,000    
Travel, meals, and entertainment 1,138,000    
Other expenses [4] 8,196,000    
Total other expenses [5] 68,181,000    
Income (loss) before income taxes/net investment loss before taxes [5] 2,337,000    
Income tax (provision) benefit (341,000)    
Net income (loss) after taxes/net investment income (loss) after taxes 1,996,000    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 1,996,000    
Less: income attributable to the non-controlling interest 3,758,000    
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations $ (1,762,000)    
Basic net income (loss) per share $ (0.07)    
Diluted net income (loss) per share $ (0.07)    
Weighted average common shares outstanding      
Basic 24,342,979    
Diluted 24,342,979    
Investment Company Accounting [Member]      
Medallion lease income     $ 198,000
Interest income on investments     14,564,000
Dividends and interest income on short-term investments     878,000
Total interest income /total investment income [2]     19,624,000
Interest expense     13,770,000
Total interest expense [3]     13,770,000
Net interest income/net investment income     5,854,000
Net interest income after provision for loan losses     5,854,000
Other income (loss)      
Other income     107,000
Total other income, net     107,000
Other expenses      
Salaries and employee benefits     7,508,000
Professional fees     2,619,000
Collection costs     316,000
Rent expense     1,069,000
Travel, meals, and entertainment     750,000
Other expenses [4]     1,548,000
Total other expenses [5]     13,810,000
Income (loss) before income taxes/net investment loss before taxes [5]     (7,849,000)
Income tax (provision) benefit     728,000
Net income (loss) after taxes/net investment income (loss) after taxes     (7,121,000)
Net realized losses on investments [6]     (43,744,000)
Income tax benefit     15,955,000
Total net realized losses on investments     (27,789,000)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries     9,483,000
Net change in unrealized depreciation on investments other than securities     (2,060,000)
Net change in unrealized appreciation (depreciation) on investments     8,222,000
Income tax (provision) benefit     19,543,000
Net unrealized appreciation on investments     35,188,000
Net realized/unrealized gains (losses) on investments     7,399,000
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations     278,000
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations     $ 278,000
Basic net income (loss) per share     $ 0.01
Diluted net income (loss) per share     $ 0.01
Weighted average common shares outstanding      
Basic     23,919,994
Diluted     24,053,307
Controlled Subsidiary Investment [Member]      
Dividend income from controlled subsidiaries [1]   $ 28,000  
Interest income [1]   10,000  
Controlled Subsidiary Investment [Member] | Investment Company Accounting [Member]      
Dividend income from controlled subsidiaries     $ 1,278,000
Interest income     165,000
Affiliate Investment [Member]      
Interest income [1]   $ 654,000  
Affiliate Investment [Member] | Investment Company Accounting [Member]      
Interest income     $ 2,541,000
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] Included in interest and investment income is $834, $1,869 and $2,268 of paid in kind interest for the years ended December 31, 2019, 2018, and 2017.
[3] Average borrowings outstanding were $1,138,746, $1,198,124, and $334,022, and the related average borrowing costs were 3.08%, 2.37%, and 4.12% for the years ended December 31, 2019, 2018, and 2017.
[4] See Note 16 for the components of other expenses for the three months ended March 31, 2018 and the year ended December 31, 2017.
[5] Includes $256 and $870 of net revenues received from Medallion Bank for the years ended December 31, 2018 and 2017, primarily for expense reimbursements. See Notes 6 and 14 for additional information.
[6] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018 and 2017.
v3.20.1
Consolidated Statements of Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Interest paid in kind $ 834 $ 1,869 $ 2,268
Average borrowings outstanding $ 1,138,746 $ 1,198,124 $ 334,022
Average borrowing costs rate 3.08% 2.37% 4.12%
Net realized gains (losses) on investments [1],[2]   $ (34,745)  
Affiliated Entity [Member]      
Net realized gains (losses) on investments   0 $ 0
Medallion Bank [Member]      
Revenue   $ 256 $ 870
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018 and 2017.
v3.20.1
Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
 [1]
Dec. 31, 2017
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations $ 1,996 $ (22,739)  
Other comprehensive income (loss), net of tax 1,081 (82)  
Total comprehensive income (loss) 3,077 (22,821)  
Less: comprehensive income attributable to the non-controlling interest 3,758 2,307  
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ (681) $ (25,128)  
Investment Company Accounting [Member]      
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations     $ 278
Total comprehensive income (loss)     278
Total comprehensive income (loss) attributable to Medallion Financial Corp.     $ 278
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Consolidated Statement of Changes in Stockholders' Equity and Changes in Net Assets - USD ($)
$ in Thousands
Total
Common Stock [Member]
Preferred Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Accumulated Undistributed Net Investment Loss [Member]
Net Unrealized Appreciation on Investment Net of Tax [Member]
Balance at Dec. 31, 2016 $ 286,096                    
Ending balance at Dec. 31, 2017 287,159 $ 273   $ 273,716 $ (24,919)     $ 287,159      
Ending balance (Investment Company Accounting [Member]) at Dec. 31, 2017                   $ (65,592) $ 103,681
Ending balance, shares at Dec. 31, 2017   27,294,327     (2,951,243)            
Net income (loss) [1] (14,874)                    
Net increase (decrease) in net assets resulting from operations (14,874)             (14,874)      
Net increase (decrease) in net assets resulting from operations | Investment Company Accounting [Member]                   (38,299) 23,425
Stock-based compensation 152 $ 1   151       152      
Issuance of restricted stock, net, shares   95,726                  
Ending balance at Mar. 31, 2018 272,437 $ 274   273,867 $ (24,919)     272,437      
Ending balance (Investment Company Accounting [Member]) at Mar. 31, 2018                   (103,891) 127,106
Ending balance, shares at Mar. 31, 2018   27,390,053     (2,951,243)            
Adoption of Bank Holding Company Accounting at Mar. 31, 2018           $ 23,215          
Adoption of Bank Holding Company Accounting (Investment Company Accounting [Member]) at Mar. 31, 2018                   103,891 (127,106)
Balance at April 2, 2018 at Mar. 31, 2018 299,502 $ 274   273,867 $ (24,919) 23,215   272,437 $ 27,065    
Balance at Dec. 31, 2017 287,159 $ 273   273,716 $ (24,919)     287,159      
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017                   (65,592) 103,681
Balance, shares at Dec. 31, 2017   27,294,327     (2,951,243)            
Net income (loss) [2] (22,739)                    
Ending balance at Dec. 31, 2018 $ 290,204 $ 274   274,292 $ (24,919) 13,043 $ (82) 262,608 27,596    
Ending balance, shares at Dec. 31, 2018 24,434,357 27,385,600     (2,951,243)            
Balance at Mar. 31, 2018 $ 272,437 $ 274   273,867 $ (24,919)     272,437      
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018                   $ (103,891) $ 127,106
Balance, shares at Mar. 31, 2018   27,390,053     (2,951,243)            
Net income (loss) (7,865)         (10,172)   (10,172) 2,307    
Distributions to non-controlling interest (1,776)               (1,776)    
Stock-based compensation 425     425       425      
Forfeiture of restricted stock, net, shares   (4,453)                  
Net change in unrealized gains (losses) on investments, net of tax (82)           (82) (82)      
Ending balance at Dec. 31, 2018 $ 290,204 $ 274   274,292 $ (24,919) 13,043 (82) 262,608 27,596    
Ending balance, shares at Dec. 31, 2018 24,434,357 27,385,600     (2,951,243)            
Net income (loss) $ 1,996         (1,762)   (1,762) 3,758    
Non-controlling interest equity raised by Medallion Bank [3] 42,485               42,485    
Distributions to non-controlling interest (2,519)               (2,519)    
Stock-based compensation 1,221 $ 2   1,219       1,221      
Issuance of restricted stock, net 0 $ 0 $ 0 0 $ 0 0 0 0 0    
Issuance of restricted stock, net, shares   216,148                  
Forfeiture of restricted stock, net 0 $ 0 $ 0 0 0 0 0 0 0    
Forfeiture of restricted stock, net, shares   (3,946)                  
Net change in unrealized gains (losses) on investments, net of tax 1,081           1,081 1,081      
Ending balance at Dec. 31, 2019 $ 334,468 $ 276   $ 275,511 $ (24,919) $ 11,281 $ 999 $ 263,148 $ 71,320    
Ending balance, shares at Dec. 31, 2019 24,646,559 27,597,802     (2,951,243)            
[1] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[3] Refer to Note 21 for details.
v3.20.1
Consolidated Statements of Changes In Net Assets
$ in Thousands
 12 Months Ended
Dec. 31, 2018
USD ($)
shares
Dec. 31, 2017
USD ($)
shares
Net investment loss after income taxes $ (11,095) [1]  
Net realized losses on investments, net of tax (26,319) [1]  
Net unrealized appreciation on investments, net of tax 14,675 [1]  
Net increase in net assets resulting from operations (25,046) $ 278
Stock-based compensation expense $ 576 [1]  
Capital share activity    
Exercise of stock options | shares 0 [2] 0 [2]
Common stock issued, end of period | shares 27,385,600  
Treasury stock, end of period | shares (2,951,243)  
Common stock outstanding | shares 24,434,357  
Investment Company Accounting [Member]    
Net investment loss after income taxes   $ (7,121)
Net realized losses on investments, net of tax   (27,789)
Net unrealized appreciation on investments, net of tax   35,188
Net increase in net assets resulting from operations   278
Realized gains from investment transactions, net   0
Stock-based compensation expense   785
Capital share transactions   785
Total increase in net assets   1,063
Net assets at the beginning of the period $ 287,159 [3] 286,096
Net assets at the end of the period   $ 287,159 [3]
Capital share activity    
Common stock issued, beginning of period | shares 27,294,327 26,976,064
Issuance of restricted stock, net | shares   318,263
Common stock issued, end of period | shares   27,294,327
Treasury stock, beginning of period | shares (2,951,243) (2,951,243)
Treasury stock, end of period | shares   (2,951,243)
Common stock outstanding | shares   24,343,084
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2019, 2018, and 2017.
[3] Includes $0 of undistributed net investment income and $0 of undistributed net realized gains on investments, and $0 of capital loss carryforwards at December 31, 2017.
v3.20.1
Consolidated Statements of Changes In Net Assets (Parenthetical)
 12 Months Ended
Dec. 31, 2017
USD ($)
$ / shares
Investment Company Accounting [Member]  
Distributions declared Per share | $ / shares $ 0.00
Undistributed net investment income $ 0
Undistributed net realized gains on investments 0
Capital Loss carryforwards $ 0
v3.20.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations $ 1,996,000 $ (22,739,000) [1]  
Adjustments to reconcile net loss/net increase in net assets resulting from operations to net cash provided by operating activities:      
Provision for loan losses 47,386,000 59,008,000 [1]  
Paid-in-kind interest (834,000) (1,869,000) [1]  
Depreciation and amortization 7,499,000 5,564,000 [1]  
Amortization of origination fees, net 4,952,000 3,132,000 [1]  
(Decrease) increase in deferred and other tax liabilities, net 853,000 13,637,000 [1]  
Net change in loan collateral in process of foreclosure 11,838,000 9,926,000 [1]  
Net realized gains on sale of investments (1,820,000) (5,921,000) [1]  
Net change in unrealized (appreciation) depreciation on investments 1,734,000 6,457,000 [1]  
Stock-based compensation expense 1,221,000 576,000 [1]  
Gain on deconsolidation of Trust III [1]   (25,325,000)  
Gain on extinguishment of debt (4,145,000)    
Intangible asset impairment [1]   5,615,000  
(Increase) decrease in accrued interest receivable (1,249,000) 797,000 [1]  
Decrease in other assets 2,838,000 1,309,000 [1]  
Decrease in accounts payable and accrued expenses (8,024,000) (675,000) [1]  
Increase in accrued interest payable 690,000 139,000 [1]  
Loans originated [1]   (8,193,000)  
Proceeds from principal receipts, sales, and maturities of loans [1]   13,279,000  
Capital returned by Medallion Bank and other controlled subsidiaries, net [1]   93,000  
Net change in unrealized depreciation on investment other than securities [1]   1,915,000  
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries [1]   (29,115,000)  
Net realized losses on investments [1],[2]   34,745,000  
Increase in other liabilities [1]   4,196,000  
Net cash provided by operating activities 64,935,000 66,551,000 [1]  
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (471,069,000) (333,740,000) [1]  
Proceeds from principal receipts, sales, and maturities of loans 251,653,000 302,409,000 [1]  
Purchases of investments (10,507,000) (10,376,000) [1]  
Proceeds from principal receipts, sales, and maturities of investments 7,119,000 6,417,000 [1]  
Proceeds from the sale of loan collateral in process of foreclosure 16,294,000 11,593,000 [1]  
Net cash used for investing activities (206,510,000) (23,697,000) [1]  
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from time deposits and funds borrowed 525,842,000 364,139,000 [1]  
Repayments of time deposits and funds borrowed (414,277,000) (389,951,000) [1]  
Purchase of federal funds 4,000,000 8,000,000 [1]  
Repayments of federal funds (4,000,000) (8,000,000) [1]  
Non-controlling interest equity raised by Medallion Bank 42,485,000    
Distributions to non-controlling interests (2,367,000) (1,776,000) [1]  
Payments of declared distributions [1]   (66,000)  
Net cash provided by (used for) financing activities 151,683,000 (27,654,000) [1]  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,108,000 15,200,000 [1]  
Cash and cash equivalents, beginning of period [1],[3] 57,713,000 [4] 42,513,000  
Cash and cash equivalents, end of period 67,821,000 [4] 57,713,000 [1],[3],[4] $ 42,513,000 [1],[3]
SUPPLEMENTAL INFORMATION      
Cash paid during the period for interest 32,008,000 25,102,000 [1]  
Cash paid during the period for income taxes 310,000 85,000 [1]  
Deposit [5] 17,700,000 23,842,000  
NON-CASH INVESTING      
Loans transferred to loan collateral in process of foreclosure $ 31,348,000 32,125,000 [1]  
Medallion Bank [Member]      
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations     56,408,000
SUPPLEMENTAL INFORMATION      
Deposit   100,000  
Investment Company Accounting [Member]      
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations     278,000
Adjustments to reconcile net loss/net increase in net assets resulting from operations to net cash provided by operating activities:      
Paid-in-kind interest     (2,268,000)
Depreciation and amortization     1,019,000
Amortization of origination fees, net     68,000
(Decrease) increase in deferred and other tax liabilities, net     (33,364,000)
Net change in unrealized (appreciation) depreciation on investments     (8,222,000)
Stock-based compensation expense     785,000
(Increase) decrease in accrued interest receivable     222,000
Decrease in other assets     122,000
Decrease in accounts payable and accrued expenses     (907,000)
Increase in accrued interest payable     949,000
Loans originated     (29,131,000)
Proceeds from principal receipts, sales, and maturities of loans     46,755,000
Capital returned by Medallion Bank and other controlled subsidiaries, net     696,000
Net change in unrealized depreciation on investment other than securities     2,060,000
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries     (9,483,000)
Net realized losses on investments [2]     43,744,000
Net cash provided by operating activities     13,323,000
CASH FLOWS FROM FINANCING ACTIVITIES      
Repayments of time deposits and funds borrowed     (21,450,000)
Payments of declared distributions     (145,000)
Net cash provided by (used for) financing activities     (21,595,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     (8,272,000)
Cash and cash equivalents, beginning of period   12,690,000 [4] 20,962,000 [3]
Cash and cash equivalents, end of period [4]     12,690,000
SUPPLEMENTAL INFORMATION      
Cash paid during the period for interest     11,897,000
Cash paid during the period for income taxes     $ 62,000
Previously Unconsolidated Subsidiaries [Member]      
SUPPLEMENTAL INFORMATION      
Cash, cash equivalents and federal funds sold   $ 29,923,000  
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018 and 2017.
[3] Included in the beginning balance for the year ended December 31, 2018 was $29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with the Bank.
[4] Includes federal funds sold at December 31, 2019 and 2018.
[5] Includes restricted cash of $2,970 as of December 31, 2019.
v3.20.1
Organization of Medallion Financial Corp. and its Subsidiaries
 12 Months Ended
Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

(1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES

Medallion Financial Corp., or the Company, is a finance company organized as a Delaware corporation that reports as a bank holding company, but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies. The Bank was initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxi medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. Subsequent to its formation, the Bank began originating consumer loans to finance the purchases of recreational vehicles, or RVs, boats, and other related items, and to finance small scale home improvements. The Company also conducts business through Medallion Funding LLC, or MFC, a Small Business Investment Company, or SBIC, which originates and services taxi medallion and commercial loans.

The Company also conducts business through its subsidiaries Medallion Capital, Inc., or MCI, an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp., or FSVC, an SBIC that originated and services medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration, or SBA. MCI and FSVC are financed in part by the SBA.

The Company has a controlling ownership stake in Medallion Motorsports, LLC, the primary owner of RPAC Racing, LLC, or RPAC, a professional car racing team that competes in the Monster Energy NASCAR Cup Series, which is also consolidated with the Company.

The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation, or MSC, to provide loan services to the Bank. The Company has assigned all of its loan servicing rights for the Bank, which consists of servicing medallion loans originated by the Bank, to MSC, which bills and collects the related service fee income from the Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs.

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 23. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Trust III. Trust III’s loans are serviced by MFC.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $36,083,000 at December 31, 2019, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

MFC, through several wholly-owned subsidiaries, or together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 medallions are carried at a net realizable value of $3,091,000 in other assets on the Company’s consolidated balance sheet at December 31, 2019 compared to a net realizable value of $4,305,000 at December 31, 2018.

v3.20.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, or the 1940 Act. Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (GAAP) requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and loans in process of foreclosure, goodwill and intangible assets, and investments, among other effects.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act, effective April 2, 2018, the Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018. See Note 6 for the presentation of financial information for the Bank and other controlled subsidiaries for such prior periods.

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 19 and 20 to the consolidated financial statements.

Equity Investments

Equity investments of $10,079,000 and $9,197,000 at December 31, 2019 and 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry.

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments–Debt and Equity Securities, or ASC 320, which requires that all applicable investments in equity securities with readily determinable fair values, and debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time to time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $248,000 and $154,000 at December 31, 2019 and 2018, and $79,000  was amortized to interest income for the year ended December 31, 2019, and $80,000 was amortized to interest income for the nine months ended December 31, 2018. The Bank, a previously unconsolidated subsidiary under Investment Company Accounting prior to April 2, 2018, amortized $21,000 and $81,000 to interest income for the three months ended March 31, 2018 and for year ended December 31, 2017. 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 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 stockholder’s equity, which were recorded net of the income tax effect, will be reversed.

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in the Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties has continued. The Company incorporated these new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the 2018 first quarter. Refer to Note 6 for additional details.

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2019 and 2018, net loan origination costs were $17,839,000 and $14,416,000. The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization to income for the years ended December 31, 2019, 2018 and 2017 was $4,952,000, $3,128,000 ($3,993,000 when combined with the Bank), and $68,000 ($3,581,000 when combined with the Bank).

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded to write the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as a recovery. Total loans 90 days or more past due were $8,663,000 at December 31, 2019, or 0.76% of the total loan portfolio, compared to $21,225,000, or 2.14% at December 31, 2018.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance, and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance.

Loan collateral in process of foreclosure primarily includes medallion loans that have reached 120 days past due and have been charged down to their net realizable value, in addition to consumer repossessed collateral in the process of being sold. The medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company had $28,833,000 and $40,500,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2019 and 2018.

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 $113,581,000 and $140,180,000 at December 31, 2019 and 2018. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of December 31, 2019 and 2018. The Company assigned its servicing rights of the Bank’s portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from the Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $3,173,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded a general reserve benefit of $2,230,000. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments were generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Refer to Note 5 for additional details.

Goodwill and Intangible Assets

The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2019 and 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,536,000 and $53,982,000, and the Company recognized $1,446,000 and $1,083,000 of amortization expense on the intangible assets for the twelve months ended December 31, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $5,758,000 and $9,048,000 were outstanding at December 31, 2019 and 2018, and of which $3,289,000 and $3,339,000 were amortized to interest income for the twelve months ended December 31, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2019 and 2018, who concluded there was no impairment on the Bank and there was impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the details of the intangible assets of the dates presented.

 

(Dollars in thousands)

 

December 31, 2019

 

 

December 31, 2018

 

Brand-related intellectual property

 

$

20,075

 

 

$

21,176

 

Home improvement contractor relationships

 

 

6,296

 

 

 

6,641

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets

 

$

52,536

 

 

$

53,982

 

 

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $418,000, $422,000, and $94,000 ($232,000 had the Bank been consolidated) for the years ended December 31, 2019, 2018, and 2017.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2,348,000, $1,864,000, and $925,000 ($2,255,000 had the Bank been consolidated) for the years ended December 31, 2019, 2018, and 2017, recorded as interest expense. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the Company’s balance sheet for all of these purposes were $5,105,000 and $4,461,000 at December 31, 2019 and 2018.

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 our valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.

Sponsorship and Race Winnings

The Company accounts for sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized when the Company’s performance obligations are completed in accordance with the contract terms of the sponsorship contract. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver.

Earnings (Loss) Per Share (EPS)

Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS.

 

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share)

 

2019

 

 

2018

 

 

2017

 

Net income (loss)/net increase in net assets resulting from

   operations available to common stockholders

 

$

(1,762

)

 

$

(25,046

)

 

$

278

 

Weighted average common shares outstanding applicable

   to basic EPS

 

 

24,342,979

 

 

 

24,214,978

 

 

 

23,919,994

 

Effect of dilutive stock options

 

 

—

 

 

 

—

 

 

 

439

 

Effect of restricted stock grants

 

 

—

 

 

 

—

 

 

 

132,874

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,342,979

 

 

 

24,214,978

 

 

 

24,053,307

 

Basic income (loss) per share

 

$

(0.07

)

 

$

(1.03

)

 

$

0.01

 

Diluted income (loss) per share

 

 

(0.07

)

 

 

(1.03

)

 

 

0.01

 

 

Potentially dilutive common shares excluded from the above calculations aggregated 462,180, 100,000, and 366,245 shares as of December 31, 2019, 2018, and 2017.

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 increase in net income/net assets resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income/net increase net assets resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

During 2019, 2018, and 2017, the Company issued 216,148, 101,010, and 327,251 restricted shares of stock-based compensation awards, issued 449,450, 39,000, and 29,666 shares of other stock-based compensation awards, and issued 26,040, 0, and 0 of restricted share units of stock based compensation awards, and recognized $1,221,000, $576,000, and $785,000, or $0.05, $0.02, and $0.03, per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,797,000, which is expected to be recognized over the next 17 quarters (see Note 10).

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors.

FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with the Company or its affiliates.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2019, the Bank’s Tier 1 leverage ratio was 19.35%. The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

 

 

Regulatory

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

Minimum

 

 

Well-Capitalized

 

 

December 31, 2019

 

 

December 31, 2018

 

Common Equity Tier 1 capital

 

 

—

 

 

 

—

 

 

$

158,187

 

 

$

141,608

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

226,975

 

 

 

167,911

 

Total capital

 

 

—

 

 

 

—

 

 

 

241,842

 

 

 

180,917

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,172,866

 

 

 

1,059,461

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,144,337

 

 

 

993,374

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

19.4

%

 

 

15.8

%

Common Equity Tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.8

 

 

 

14.3

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

19.8

 

 

 

16.9

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

21.1

 

 

 

18.2

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.

(3)

Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In the table above, the minimum risk-based ratios as of December 31, 2018 reflect the 75% phase-in of the capital conservation buffer of 2.5%, and the minimum risk-based ratios as of December 31, 2019 reflect the capital conservation buffer of 2.5%. The “well-capitalized” requirements were the binding requirements for risk-based capital ratios as of December 31, 2018 because of the transitional provisions then applicable to the capital conservation buffer and were the binding requirements for Tier 1 leverage capital as of both December 31, 2019 and December 31, 2018.

Recently Issued Accounting Standards

In March 2020, the FASB issues ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not believe this will have a material impact on its financial condition.

In December 2019, the FASB issued ASU 2019-12 “Income Taxes, or Topic 740,: Simplifying the Accounting for Income Taxes.” The objective of this update is to simplify the accounting for income taxes by removing certain exceptions to the general principles and improve consistent application of and simplify other areas of Topic 740. The amendments in this update are effective for annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement, or Topic 820,: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value.” The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other, or Topic 350,: Simplifying the Test for Goodwill Impairment.” The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses, or Topic 326,: Measurement of Credit Losses on Financial Instruments.” The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In October 2019, the FASB voted to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have an impact on the Company’s accounting for estimated credit losses on its loans.

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.

v3.20.1
Investment Securities (Bank Holding Company Accounting)
 12 Months Ended
Dec. 31, 2019
Schedule Of Investments [Abstract]  
Investment Securities (Bank Holding Company Accounting)

(3) INVESTMENT SECURITIES (Bank Holding Company Accounting)

Fixed maturity securities available for sale at December 31, 2019 and 2018 consisted of the following:

 

December 31, 2019

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

36,335

 

 

$

411

 

 

$

(112

)

 

$

36,634

 

State and municipalities

 

 

12,279

 

 

 

186

 

 

 

(101

)

 

 

12,364

 

Total

 

$

48,614

 

 

$

597

 

 

$

(213

)

 

$

48,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

32,184

 

 

$

15

 

 

$

(742

)

 

$

31,457

 

State and municipalities

 

 

14,239

 

 

 

35

 

 

 

(407

)

 

 

13,867

 

Total

 

$

46,423

 

 

$

50

 

 

$

(1,149

)

 

$

45,324

 

 

The amortized cost and estimated market value of investment securities as of December 31, 2019 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

2,035

 

 

$

2,029

 

Due after one year through five years

 

 

10,254

 

 

 

10,281

 

Due after five years through ten years

 

 

10,052

 

 

 

10,101

 

Due after ten years

 

 

26,273

 

 

 

26,587

 

Total

 

$

48,614

 

 

$

48,998

 

 

The following tables show information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2019

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(74

)

 

$

8,291

 

 

$

(38

)

 

$

4,939

 

State and municipalities

 

 

(17

)

 

 

2,099

 

 

 

(84

)

 

 

2,739

 

Total

 

$

(91

)

 

$

10,390

 

 

$

(122

)

 

$

7,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2018

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(54

)

 

$

4,616

 

 

$

(688

)

 

$

24,871

 

State and municipalities

 

 

(78

)

 

 

5,429

 

 

 

(329

)

 

 

6,259

 

Total

 

$

(132

)

 

$

10,045

 

 

$

(1,017

)

 

$

31,130

 

 

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

v3.20.1
Loans and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2019
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES (Bank Holding Company Accounting)

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2019 and 2018.

 

 

 

As of December 31, 2019

 

 

As of December 31, 2018

 

(Dollars in thousands)

 

Amount

 

 

As a

Percent of

Gross Loans

 

 

Amount

 

 

As a

Percent of

Gross Loans

 

Recreation

 

$

713,332

 

 

 

62

%

 

$

587,038

 

 

 

58

%

Home improvement

 

 

247,324

 

 

 

21

 

 

 

183,155

 

 

 

18

 

Commercial

 

 

69,767

 

 

 

6

 

 

 

64,083

 

 

 

6

 

Medallion

 

 

130,432

 

 

 

11

 

 

 

183,606

 

 

 

18

 

Total gross loans

 

 

1,160,855

 

 

 

100

%

 

 

1,017,882

 

 

 

100

%

Allowance for loan losses

 

 

(46,093

)

 

 

 

 

 

 

(36,395

)

 

 

 

 

Total net loans

 

$

1,114,762

 

 

 

 

 

 

$

981,487

 

 

 

 

 

 

The following table show the components of changes in gross loans for the twelve months ended December 31, 2019.

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Total

 

Gross loans – December 31, 2018

 

$

587,038

 

 

$

183,155

 

 

$

64,083

 

 

$

183,606

 

 

$

1,017,882

 

Loan originations

 

 

301,403

 

 

 

142,112

 

 

 

18,578

 

 

 

—

 

 

 

462,093

 

Principal payments

 

 

(146,873

)

 

 

(76,157

)

 

 

(13,553

)

 

 

(15,070

)

 

 

(251,653

)

Charge-offs, net

 

 

(17,419

)

 

 

(786

)

 

 

(819

)

 

 

(18,664

)

 

 

(37,688

)

Transfer to loans in process of foreclosure, net

 

 

(14,512

)

 

 

—

 

 

 

—

 

 

 

(16,836

)

 

 

(31,348

)

Amortization of origination costs

 

 

(6,428

)

 

 

1,561

 

 

 

34

 

 

 

(119

)

 

 

(4,952

)

Amortization of loan premium

 

 

(247

)

 

 

(416

)

 

 

—

 

 

 

(2,626

)

 

 

(3,289

)

FASB origination costs

 

 

10,370

 

 

 

(2,145

)

 

 

610

 

 

 

141

 

 

 

8,976

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

834

 

 

 

—

 

 

 

834

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

1,160,855

 

The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2019 and the nine months ended December 31, 2018.

 

(Dollars in thousands)

 

Twelve Months Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

 

Allowance for loan losses – beginning balance

 

$

36,395

 

 

$

—

 

(1)

Charge-offs

 

 

 

 

 

 

 

 

 

Recreation

 

 

(24,433

)

 

 

(12,697

)

 

Home improvement

 

 

(2,504

)

 

 

(1,562

)

 

Commercial

 

 

(819

)

 

 

—

 

 

Medallion

 

 

(22,205

)

 

 

(14,277

)

 

Total charge-offs

 

 

(49,961

)

 

 

(28,536

)

 

Recoveries

 

 

 

 

 

 

 

 

 

Recreation

 

 

7,014

 

 

 

4,437

 

 

Home improvement

 

 

1,718

 

 

 

905

 

 

Commercial

 

 

—

 

 

 

4

 

 

Medallion

 

 

3,541

 

 

 

577

 

 

Total recoveries

 

 

12,273

 

 

 

5,923

 

 

Net charge-offs (2)

 

 

(37,688

)

 

(22,613)

 

 

Provision for loan losses

 

 

47,386

 

 

 

59,008

 

(4)

Allowance for loan losses – ending balance (3)

 

$

46,093

 

 

$

36,395

 

 

 

(1)

Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances, resulting in a starting point of zero for this table.

(2)

As of December 31, 2019, cumulative charge-offs of loans and loans in process of foreclosure in the medallion loan portfolio were $241,214, representing collection opportunities for the Company.

(3)

Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.

(4)

Includes $8,161 of reversal of provision for loan losses related to the deconsolidation of Trust III in the 2018 fourth quarter.

The following tables set forth the allowance for loan losses by type as of December 31, 2019 and 2018.

 

December 31, 2019

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

Recreation

 

$

18,075

 

 

 

39

%

 

 

2.53

%

Home Improvement

 

 

2,608

 

 

 

6

 

 

 

1.05

 

Commercial

 

 

—

 

 

 

—

 

 

—

 

Medallion

 

 

25,410

 

 

 

55

 

 

 

19.48

 

Total

 

$

46,093

 

 

 

100

%

 

 

3.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

Recreation

 

$

6,856

 

 

 

19

%

 

 

1.17

%

Home Improvement

 

 

1,796

 

 

 

5

 

 

 

0.98

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

27,743

 

 

 

76

 

 

 

15.11

 

Total

 

$

36,395

 

 

 

100

%

 

 

3.58

%

 

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

 

 

 

Bank Holding

Company

Accounting

 

 

Investment

Company

Accounting

 

(Dollars in thousands)

 

December 31,

2019

 

 

December 31,

2018

 

 

December 31,

2017 (1)

 

Total nonaccrual loans

 

$

26,484

 

 

$

34,877

 

 

$

98,494

 

Interest foregone for the year

 

 

2,152

 

 

 

1,153

 

 

 

823

 

Amount of foregone interest applied to principal

   for the year

 

 

254

 

 

 

535

 

 

 

52

 

Interest foregone life-to-date

 

 

2,744

 

 

 

1,952

 

 

 

12,485

 

Amount of foregone interest applied to principal

   life-to-date

 

 

471

 

 

 

1,214

 

 

 

3,495

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

2

%

 

 

3

%

 

 

31

%

 

(1)

Does not include the Bank’s nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

The following tables present the performance status of loans as of December 31, 2019 and 2018.

 

December 31, 2019

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

705,070

 

 

$

8,262

 

 

$

713,332

 

 

 

1.16

%

Home improvement

 

 

247,139

 

 

 

185

 

 

 

247,324

 

 

 

0.07

 

Commercial

 

 

57,905

 

 

 

11,862

 

 

 

69,767

 

 

 

17.00

 

Medallion

 

 

88,248

 

 

 

42,184

 

 

 

130,432

 

 

 

32.34

 

Total

 

$

1,098,362

 

 

$

62,493

 

(1)

$

1,160,855

 

 

 

5.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

581,250

 

 

$

5,788

 

 

$

587,038

 

 

 

0.99

%

Home improvement

 

 

183,018

 

 

 

137

 

 

 

183,155

 

 

 

0.07

 

Commercial

 

 

60,249

 

 

 

3,834

 

 

 

64,083

 

 

 

5.98

 

Medallion

 

 

145,391

 

 

 

38,215

 

 

 

183,606

 

 

 

20.81

 

Total

 

$

969,908

 

 

$

47,974

 

(1)

$

1,017,882

 

 

 

4.71

%

 

 

(1)

Includes $36,009 and $13,097 of TDRs as of December 31, 2019 and 2018, which are accruing and paying currently, but which are considered nonperforming loans under GAAP.

 

For those performing loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming.

The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2019 and 2018, all of which had an allowance recorded against the principal balance.

 

 

 

December 31, 2019

 

 

Twelve Months Ended

December 31, 2019

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

8,262

 

 

$

8,262

 

 

$

329

 

 

$

8,317

 

 

$

471

 

Home improvement

 

 

185

 

 

 

185

 

 

 

3

 

 

 

185

 

 

 

—

 

Commercial

 

 

11,862

 

 

 

11,867

 

 

 

—

 

 

 

7,886

 

 

 

392

 

Medallion

 

 

42,184

 

 

 

42,650

 

 

 

14,824

 

 

 

44,721

 

 

 

346

 

Total nonperforming loans with an allowance

 

$

62,493

 

 

$

62,964

 

 

$

15,156

 

 

$

61,109

 

 

$

1,209

 

 

 

 

December 31, 2018

 

 

Nine Months Ended

December 31, 2018

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,788

 

 

$

5,788

 

 

$

204

 

 

$

6,165

 

 

$

357

 

Home improvement

 

 

137

 

 

 

137

 

 

 

3

 

 

 

137

 

 

 

—

 

Commercial

 

 

3,834

 

 

 

3,929

 

 

 

—

 

 

 

6,036

 

 

 

(12

)

Medallion

 

 

38,215

 

 

 

39,334

 

 

 

28,940

 

 

 

59,915

 

 

 

725

 

Total nonperforming loans with an allowance

 

$

47,974

 

 

$

49,188

 

 

$

29,147

 

 

$

72,253

 

 

$

1,070

 

 

The following tables show the aging of all loans as of December 31, 2019 and 2018.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2019

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

27,357

 

 

$

8,426

 

 

$

5,800

 

 

$

41,583

 

 

$

648,227

 

 

$

689,810

 

 

$

—

 

Home improvement

 

 

931

 

 

 

427

 

 

 

184

 

 

 

1,542

 

 

 

249,288

 

 

 

250,830

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

107

 

 

 

107

 

 

 

69,660

 

 

 

69,767

 

 

 

—

 

Medallion

 

 

12,491

 

 

 

2,118

 

 

 

2,572

 

 

 

17,181

 

 

 

109,106

 

 

 

126,287

 

 

 

—

 

Total

 

$

40,779

 

 

$

10,971

 

 

$

8,663

 

 

$

60,413

 

 

$

1,076,281

 

 

$

1,136,694

 

 

$

—

 

 

(1)

Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2018

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

19,584

 

 

$

6,198

 

 

$

4,133

 

 

$

29,915

 

 

$

537,294

 

 

$

567,209

 

 

$

—

 

Home improvement

 

723

 

 

296

 

 

135

 

 

 

1,154

 

 

 

184,507

 

 

 

185,661

 

 

 

—

 

Commercial

 

 

—

 

 

 

454

 

 

 

279

 

 

 

733

 

 

 

63,350

 

 

 

64,083

 

 

 

—

 

Medallion

 

 

8,720

 

 

 

2,694

 

 

 

16,678

 

 

 

28,092

 

 

 

148,743

 

 

 

176,835

 

 

 

—

 

Total

 

$

29,027

 

 

$

9,642

 

 

$

21,225

 

 

$

59,894

 

 

$

933,894

 

 

$

993,788

 

 

$

—

 

 

(1)Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 190% and 220% as of December 31, 2019 and 2018.

 

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2019.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Recreation loans

 

 

294

 

 

$

4,433

 

 

$

2,831

 

Medallion loans

 

 

71

 

 

 

31,376

 

 

 

31,385

 

 

During the twelve months ended December 31, 2019, four medallion loans modified as troubled debt restructurings were in default and had an investment value of $1,023,000 as of December 31, 2019, net of $428,000 of an allowance for loan loss, and 213 recreation loans modified as troubled debt restructuring were in default and had an investment value of $1,905,000 as of December 31, 2019, net of a $76,000 allowance for loan losses.

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2018.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Medallion loans

 

 

11

 

 

$

5,581

 

 

$

5,581

 

 

During the year ended December 31, 2018, one loan modified as a troubled debt restructuring was in default and had an investment value of $218,000 as of December 31, 2018, net of $71,000 of an allowance for loan loss.

The following tables show the activity of the loans in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2019 and the nine months ended December 31, 2018.

 

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loans in process of foreclosure – December 31, 2018

 

$

1,503

 

 

$

47,992

 

 

$

49,495

 

Transfer from loans, net

 

 

14,512

 

 

 

16,836

 

 

 

31,348

 

Sales

 

 

(7,591

)

 

 

(1,515

)

 

 

(9,106

)

Cash payments received

 

 

—

 

 

 

(7,697

)

 

 

(7,697

)

Collateral valuation adjustments

 

 

(6,948

)

 

 

(4,381

)

 

 

(11,329

)

Loans in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

 

Nine Months Ended December 31, 2018

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loans in process of foreclosure – beginning balance (1)

 

$

1,369

 

 

$

51,479

 

 

$

52,848

 

Transfer from loans, net

 

 

9,289

 

 

 

25,369

 

 

 

34,658

 

Sales

 

 

(451

)

 

 

(2,533

)

 

 

(2,984

)

Cash payments received

 

 

(4,354

)

 

 

(4,337

)

 

 

(8,691

)

Collateral valuation adjustments

 

 

(4,350

)

 

 

(4,122

)

 

 

(8,472

)

Deconsolidation of Trust III

 

 

—

 

 

 

(17,864

)

 

 

(17,864

)

Loans in process of foreclosure – December 31, 2018

 

$

1,503

 

 

$

47,992

 

 

$

49,495

 

 

(1)

Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.

v3.20.1
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments
 12 Months Ended
Dec. 31, 2019
Schedule Of Investments [Abstract]  
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

(5) UNREALIZED APPRECIATION (DEPRECIATION) AND REALIZED GAINS (LOSSES) ON INVESTMENTS (Investment Company Accounting)

The following table sets forth the pre-tax change in the Company’s unrealized appreciation (depreciation) on investments for the three months ended March 31, 2018 and for the year ended December 31, 2017 under Investment Company Accounting.

 

(Dollars in thousands)

 

Medallion

Loans

 

 

Commercial

Loans

 

 

Investments

in

Subsidiaries

 

 

Equity

Investments

 

 

Investments

Other Than

Securities

 

 

Total

 

Balance December 31, 2016

 

$

(28,523

)

 

$

(1,378

)

 

$

152,750

 

 

$

3,934

 

 

$

584

 

 

$

127,367

 

Net change in unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appreciation on investments

 

 

—

 

 

 

—

 

 

 

6,170

 

 

 

2,060

 

 

 

(821

)

 

 

7,409

 

Depreciation on investments

 

 

(37,335

)

 

 

(410

)

 

 

—

 

 

 

(277

)

 

 

(1,253

)

 

 

(39,275

)

Reversal of unrealized appreciation

   (depreciation) related to realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,082

)

 

 

—

 

 

 

(3,082

)

Losses on investments

 

 

45,520

 

 

 

1,275

 

 

 

—

 

 

 

486

 

 

 

—

 

 

 

47,281

 

Balance December 31, 2017

 

 

(20,338

)

 

 

(513

)

 

 

158,920

 

 

 

3,121

 

 

 

(1,490

)

 

 

139,700

 

Net change in unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appreciation on investments

 

 

—

 

 

 

—

 

 

 

38,795

 

 

 

(998

)

 

 

—

 

 

 

37,797

 

Depreciation on investments

 

 

(38,170

)

 

 

18

 

 

 

—

 

 

 

—

 

 

 

(1,915

)

 

 

(40,067

)

Reversal of unrealized appreciation

   (depreciation) related to realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Losses on investments

 

 

34,747

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34,747

 

Balance March 31, 2018

 

$

(23,761

)

 

$

(495

)

 

$

197,715

 

 

$

2,123

 

 

$

(3,405

)

 

$

172,177

 

 

The following table sets forth the pre-tax changes in our unrealized and realized gains and losses in the investment portfolio for the three months ended March 31, 2018 and for the year ended December 31, 2017 under Investment Company Accounting.

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Three Months Ended

March 31, 2018

 

 

Year Ended December 31, 2017

 

Net change in unrealized appreciation

   (depreciation) on investments

 

 

 

 

 

 

 

 

Unrealized appreciation

 

$

(998

)

 

$

2,060

 

Unrealized depreciation

 

 

(38,152

)

 

 

(38,022

)

Net unrealized appreciation on investments in

   Medallion Bank and other controlled subsidiaries

 

 

29,115

 

 

 

9,483

 

Realized gains

 

 

—

 

 

 

(3,082

)

Realized losses

 

 

34,747

 

 

 

47,281

 

Net unrealized losses on investments other than

   securities and other assets

 

 

(1,915

)

 

 

(2,075

)

Total

 

$

22,797

 

 

$

15,645

 

Net realized gains (losses) on investments

 

 

 

 

 

 

 

 

Realized gains

 

$

—

 

 

$

3,082

 

Realized losses

 

 

(34,747

)

 

 

(47,281

)

Other gains

 

 

—

 

 

 

4,684

 

Direct charge-offs

 

 

2

 

 

 

(4,229

)

Total

 

$

(34,745

)

 

$

(43,744

)

 
v3.20.1
Investments in Medallion Bank and Other Controlled Subsidiaries
 12 Months Ended
Dec. 31, 2019
Text Block [Abstract]  
Investments in Medallion Bank and Other Controlled Subsidiaries

(6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES

The following note is included for informational purposes as it relates to the prior periods when the Company reported under Investment Company Accounting and as such, was not able to consolidate the Bank’s results.

The following table presents information derived from the Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the year ended December 31, 2017.

 

(Dollars in thousands)

 

2017

 

Statement of comprehensive income

 

 

 

 

Investment income

 

$

111,281

 

Interest expense

 

 

13,869

 

Net interest income

 

 

97,412

 

Noninterest income

 

 

121

 

Operating expenses (1)

 

 

26,032

 

Net investment income before income taxes

 

 

71,501

 

Income tax provision

 

 

15,093

 

Net investment income after income taxes

 

 

56,408

 

Net realized/unrealized losses of Medallion Bank (1)

 

 

(51,696

)

Net increase in net assets resulting from operations of

   Medallion Bank

 

 

4,712

 

Unrealized appreciation on Medallion Bank (2)

 

 

5,482

 

Net realized/unrealized losses on controlled

   subsidiaries other than Medallion Bank

 

 

(711

)

Net increase in net assets resulting from operations of

   Medallion Bank and other controlled subsidiaries

 

$

9,483

 

 

(1)

Excluded from operating expenses and included in net realized/unrealized losses of the Bank were $1,476 of unrealized losses on other assets for 2017.

(2)

Unrealized appreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of the Bank.

 
v3.20.1
Funds Borrowed
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Funds Borrowed

(7) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows.

 

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

December 31, 2019(1)

 

 

December 31, 2018

 

 

Interest

Rate (2)

 

Deposits

 

$

312,993

 

 

$

223,865

 

 

$

211,605

 

 

$

118,740

 

 

$

87,042

 

 

$

—

 

 

$

954,245

 

 

$

848,040

 

 

 

2.35

%

SBA debentures and

   borrowings

 

 

20,746

 

 

 

8,500

 

 

 

—

 

 

 

5,000

 

 

 

5,000

 

 

 

32,500

 

 

 

71,746

 

 

 

80,099

 

 

 

3.42

 

Retail and privately placed

   notes (3)

 

 

—

 

 

 

33,625

 

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

69,625

 

 

 

33,625

 

 

 

8.61

 

Notes payable to banks

 

 

9,683

 

 

 

22,940

 

 

 

280

 

 

 

280

 

 

 

—

 

 

 

—

 

 

 

33,183

 

 

 

59,615

 

 

 

4.11

 

Preferred securities (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

4.01

 

Other borrowings

 

 

7,794

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,794

 

 

 

7,649

 

 

 

2.00

 

Total

 

$

351,216

 

 

$

288,930

 

 

$

211,885

 

 

$

124,020

 

 

$

128,042

 

 

$

65,500

 

 

$

1,169,593

 

 

$

1,062,028

 

 

 

 

 

 

(1)

Excludes deferred financing costs of $5,105.

(2)

Weighted average contractual rate as of December 31, 2019.

(3)

Relates to loans held at Medallion Financial Corp. (parent company only).

(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. All time deposits are in denominations of less than $250,000 and have been originated through certificates of deposit broker relationships. The table presents time deposits of $100,000 or more by their maturity as of December 31, 2019.

 

(Dollars in  thousands)

 

December 31, 2019

 

Three months or less

 

$

83,100

 

Over three months through six months

 

 

111,413

 

Over six months through one year

 

 

118,480

 

Over one year

 

 

641,252

 

Total deposits

 

$

954,245

 

 

 

(B) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1% fee, which was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33,485,000 in principal into a new loan by the SBA to FSVC in the principal amount of $34,024,756, or the SBA Loan. In connection with the SBA Loan, FSVC executed a Note, or the SBA Note, with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34,024,756. The SBA Loan bears interest at a rate of 3.25% per annum, required a minimum of $5,000,000 of principal and interest to be paid on or before February 1, 2018 (which was paid) and a minimum of $7,600,000 of principal and interest to be paid on or before March 27, 2019 (which was paid), and all remaining unpaid principal and interest on or before February 1, 2020, the final maturity date, which was subsequently extended to June 1, 2020. The SBA Loan agreement contains covenants and events of defaults, including, without limitation, payment defaults, breaches of representations and warranties and covenants defaults. As of December 31, 2019, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $71,746,000 was outstanding, including $20,746,000 under the SBA Note.

(C) NOTES PAYABLE TO BANKS

The Company and its subsidiaries have entered into note agreements with a variety of local and regional banking institutions over the years. The notes are typically secured by various assets of the underlying borrower.

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2019.

 

(Dollars in thousands)

Borrower

 

# of

Lenders/

Notes

 

Note

Dates

 

Maturity

Dates

 

Type

 

Note

Amounts

 

 

Balance

Outstanding at

December 31,

2019

 

 

Payment

 

Average

Interest

Rate at

December 31,

2019

 

 

Interest Rate

Index(1)

Medallion

  Financial Corp.

 

5/5

 

4/11 - 8/14

 

9/20 - 3/21

 

Term loans and demand notes secured by pledged loans (2)

 

$

21,135

 

(2)

$

21,135

 

 

Interest only(3)

 

 

4.43

%

 

Various(3)

Medallion

   Chicago

 

2/23

 

11/11 - 12/11

 

2/21

 

Term loans secured by owned Chicago taxi medallions (4)

 

 

18,449

 

 

 

10,928

 

 

$134 of principal & interest paid monthly

 

 

3.50

%

 

N/A

Medallion

   Funding

 

1/1

 

11/18

 

12/23

 

 

 

 

1,400

 

 

 

1,120

 

 

$70 principal & interest paid quarterly

 

 

4.00

%

 

N/A

 

 

 

 

 

 

 

 

 

 

$

40,984

 

 

$

33,183

 

 

 

 

 

 

 

 

 

 

(1)

At December 31, 2019, 30 day LIBOR was 1.76%, 360 day LIBOR was 2.00%, and the prime rate was 4.75%.

(2)

One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.

(3)

Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $81.

(4)

Guaranteed by the Company.

On July 6, 2019, the Company paid $10,819,000 at maturity in satisfaction of all its outstanding obligations under one of its credit facilities. In connection with this payment, the Company obtained a waiver from one of its other lenders, with a term note of $2,422,000, of certain resulting repayment and other obligations, which waiver expires on April 1, 2020.

In March 2019, the Company used some of the proceeds of the privately placed notes to pay off one of the notes payable to banks at a 50% discount, resulting in a gain on debt extinguishment of $4,145,000 in the 2019 first quarter.

In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. See Note 23 for more information.

(D) RETAIL AND PRIVATELY PLACED NOTES

In March 2019, the Company completed a private placement to certain institutional investors of $30,000,000 aggregate principal amount of 8.25% unsecured senior notes due 2024, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including repaying certain borrowings under its notes payable to banks at a discount, which led to a gain of $4,145,000 in the 2019 first quarter. In August 2019, the private placement was reopened and an additional $6,000,000 principal amount of notes was issued to certain institutional investors.

In April 2016, the Company issued a total of $33,625,000 aggregate principal amount of 9.00% unsecured notes due 2021, with interest payable quarterly in arrears. The Company used the net proceeds from the offering of approximately $31,786,000 to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under its DZ loan in the ordinary course of business.

(E) PREFERRED SECURITIES

In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (1.91% at December 31, 2019) plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2,000,000 of the preferred securities were repurchased from a third party investor. At December 31, 2019, $33,000,000 was outstanding on the preferred securities.

(F) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 14 for more details). At December 31, 2019, the total outstanding on these notes was $7,294,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. Additionally, RPAC has a short term promissory note to an unrelated party, for $500,000 due on December 31, 2020.

(G) COVENANT COMPLIANCE

Certain of our debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth, which in the event of noncompliance could preclude their ability to pay dividends to the Company.

v3.20.1
Leases
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases

(8) LEASES

The Company has leased premises that expire at various dates through November 30, 2027 subject to various operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances.

The following table presents the operating lease costs and additional information for the twelve months ended December 31, 2019.

 

(Dollars in  thousands)

 

 

 

 

Operating lease costs

 

$

2,184

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

Operating cash flows from operating leases

 

 

2,419

 

Right-of-use asset obtained in exchange for lease liability

 

 

2,413

 

The following table presents the breakout of the operating leases as of December 31, 2019.

 

(Dollars in  thousands)

 

December 31, 2019

 

Operating lease right-of-use assets

 

$

13,482

 

Other current liabilities

 

 

2,085

 

Operating lease liabilities

 

 

12,738

 

Total operating lease liabilities

 

 

14,823

 

Weighted average remaining lease term

 

7.3 years

 

Weighted average discount rate

 

 

5.54

%

 

At December 31, 2019, maturities of the lease liabilities were as follows.

 

(Dollars in  thousands)

 

 

 

 

2020

 

$

2,570

 

2021

 

 

2,473

 

2022

 

 

2,411

 

2023

 

 

2,356

 

2024

 

 

2,373

 

Thereafter

 

 

5,962

 

Total lease payments

 

 

18,145

 

Less imputed interest

 

 

3,322

 

Total operating lease liabilities

 

$

14,823

 

Occupancy expense was $2,436,000, $2,287,000, and $1,069,000 for the years ended December 31, 2019, 2018, and 2017.

v3.20.1
Income Taxes
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

(9) INCOME TAXES

The Company is subject to federal and applicable state corporate income taxes on its taxable ordinary income and capital gains. As a corporation taxed under Subchapter C of the Internal Revenue Code, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries in which it holds 80% or more of the outstanding equity interest measured by both vote and fair value.

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of December 31, 2019 and 2018.

 

(Dollars in thousands)

 

2019

 

 

2018

 

Goodwill and other intangibles

 

$

(45,595

)

 

$

(45,272

)

Provision for loan losses

 

 

19,198

 

 

 

25,790

 

Net operating loss carryforwards (1)

 

 

22,607

 

 

 

11,132

 

Accrued expenses, compensation, and other assets

 

 

1,701

 

 

 

1,844

 

Unrealized gains on other investments

 

 

(6,790

)

 

 

(2,024

)

Total deferred tax liability

 

 

(8,879

)

 

 

(8,530

)

Valuation allowance

 

 

(462

)

 

 

(255

)

Deferred tax liability, net

 

 

(9,341

)

 

 

(8,785

)

Taxes receivable

 

 

1,516

 

 

 

1,812

 

Net deferred and other tax liabilities

 

$

(7,825

)

 

$

(6,973

)

 

(1)

As of December 31, 2019, the Company and its subsidiaries had an estimated $89,687 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $22,145 as of December 31, 2019.

The components of our tax (provision) benefit for the years ended December 31, 2019, 2018, and 2017 were as follows.

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2017

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

—

 

 

$

(2,797

)

 

$

15,613

 

State

 

 

519

 

 

 

(1,078

)

 

 

756

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(489

)

 

 

5,270

 

 

 

(4,169

)

Federal income tax rate change

 

 

—

 

 

 

—

 

 

 

17,279

 

State

 

 

(371

)

 

 

(1,464

)

 

 

6,747

 

Net (provision) benefit for income taxes

 

$

(341

)

 

$

(69

)

 

$

36,226

 

 

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2019, 2018, and 2017.

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2017

 

Statutory Federal income tax (provision) benefit at 21% (35% in 2017)

 

$

(642

)

 

$

4,935

 

 

$

12,582

 

State and local income taxes, net of federal income

   tax benefit

 

 

(120

)

 

 

440

 

 

 

645

 

Revaluation of net operating losses

 

 

380

 

 

 

—

 

 

 

—

 

Change in effective state income tax rate

 

 

(891

)

 

 

(2,564

)

 

 

3,232

 

Change in state income tax accruals

 

 

640

 

 

 

—

 

 

 

—

 

Federal income tax rate change

 

 

—

 

 

 

—

 

 

 

17,279

 

Income attributable to non-controlling interest

 

 

309

 

 

 

—

 

 

 

—

 

Utilization of carry forwards

 

 

—

 

 

 

(910

)

 

 

2,284

 

Appreciation of Medallion Bank

 

 

—

 

 

 

(1,974

)

 

 

1,050

 

Other

 

 

(17

)

 

 

4

 

 

 

(846

)

Total income tax (provision) benefit

 

$

(341

)

 

$

(69

)

 

$

36,226

 

 

The Tax Cuts and Jobs Act, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of December 31, 2019.

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 2016 through the present are the more significant filings that are open for examination.

v3.20.1
Stock Options and Restricted Stock
 12 Months Ended
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Options and Restricted Stock

(10) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, stock appreciation rights, etc. A total of 1,500,253 shares of the Company’s common stock are issuable under the 2018 Plan, and 771,405 remained issuable as of December 31, 2019. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, 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 first occurs.

The Company had a stock option plan, or the 2006 Stock Option Plan, available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of Directors on February 15, 2006 and shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan was administered by the Compensation Committee of the Board of Directors. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. The term and vesting periods of the options were determined by the Compensation Committee, provided that the maximum term of an option could not exceed a period of ten years.

The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the SEC on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years.

The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan, or the Amended Director Plan, on April 16, 2009, which was approved by the Company’s shareholders on June 5, 2009, and on which exemptive relief to implement the Amended Director Plan was received from the SEC on July 17, 2012. A total of 200,000 shares of the Company’s common stock were issuable under the Amended Director Plan. No additional shares are available for issuance under the Amended Director Plan. Under the Amended Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the Amended Director Plan, the Company would grant options to purchase 9,000 shares of the Company’s common stock to an Eligible Director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options could not exceed ten years.

Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2019, 550,040 options on the Company’s common stock were outstanding under the Company’s plans, of which 62,778 options were exercisable. Additionally, there were 284,879 unvested shares of the Company’s common stock outstanding and 26,040 unvested restricted share units under the Company’s restricted stock plans.

The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $3.10, $1.06, and $0.28 per share for the years ended December 31, 2019, 2018, and 2017. The following assumption categories are used to determine the value of any option grants.

 

 

 

Year ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Risk free interest rate

 

 

2.29

%

 

 

2.82

%

 

 

1.84

%

Expected dividend yield

 

 

0.66

 

 

 

4.86

 

 

 

7.39

 

Expected life of option in years (1)

 

 

6.25

 

 

 

6.00

 

 

 

6.00

 

Expected volatility (2)

 

 

49.03

%

 

 

30.00

%

 

 

30.00

%

 

(1)

Expected life is calculated using the simplified method.

(2)

We determine our expected volatility based on our historical volatility.

The following table presents the activity for the stock option programs for the years ended December 31, 2019, 2018, and 2017.

 

 

 

Number of

Options

 

 

Exercise

Price Per

Share

 

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2016

 

 

345,518

 

 

$7.10-13.84

 

 

$

9.67

 

Granted

 

 

29,666

 

 

2.14-2.61

 

 

 

2.35

 

Cancelled

 

 

(54,558

)

 

10.76-11.21

 

 

 

10.94

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2017

 

 

320,626

 

 

2.14-13.84

 

 

 

8.78

 

Granted

 

 

39,000

 

 

5.27-5.58

 

 

 

5.46

 

Cancelled

 

 

(214,960

)

 

9.22-9.24

 

 

 

9.22

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2018

 

 

144,666

 

 

2.14-13.84

 

 

 

7.23

 

Granted

 

 

449,450

 

 

5.21-7.25

 

 

 

6.61

 

Cancelled

 

 

(44,076

)

 

6.55-13.84

 

 

 

9.00

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019 (2)

 

 

550,040

 

 

$2.14-13.53

 

 

$

6.58

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

273,960

 

 

7.10-13.84

 

 

 

9.50

 

December 31, 2018

 

 

81,889

 

 

2.14-13.84

 

 

 

9.25

 

December 31, 2019 (2)

 

 

62,778

 

 

$2.14-13.53

 

 

$

7.60

 

 

(1)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2019, 2018, and 2017.

(2)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2019 and the related exercise price of the underlying options, was $512,000 for outstanding options and $111,000 for exercisable options as of December 31, 2019. The remaining contractual life was 8.87 years for outstanding options and 5.95 years for exercisable options at December 31, 2019.

The following table presents the activity for the restricted stock programs for the years ended December 31, 2019, 2018, and 2017.

 

 

 

Number of

Shares

 

 

Grant

Price Per

Share

 

Weighted

Average

Grant Price

 

Outstanding at December 31, 2016

 

 

167,703

 

 

$ 3.95-13.46

 

$

8.88

 

Granted

 

 

327,251

 

 

2.06-3.93

 

 

2.48

 

Cancelled

 

 

(8,988

)

 

2.14-10.08

 

 

3.07

 

Vested (1)

 

 

(77,384

)

 

9.08-13.46

 

 

11.09

 

Outstanding at December 31, 2017

 

 

408,582

 

 

2.06-10.38

 

 

3.45

 

Granted

 

 

101,010

 

 

3.93-5.27

 

 

4.41

 

Cancelled

 

 

(9,737

)

 

3.93-9.08

 

 

4.66

 

Vested (1)

 

 

(308,940

)

 

2.06-10.38

 

 

3.35

 

Outstanding at December 31, 2018

 

 

190,915

 

 

2.14-5.27

 

 

4.06

 

Granted

 

 

216,148

 

 

4.80-7.25

 

 

6.59

 

Cancelled

 

 

(3,946

)

 

3.93-6.55

 

 

4.97

 

Vested (1)

 

 

(118,238

)

 

2.06-4.80

 

 

3.89

 

Outstanding at December 31, 2019 (2)

 

 

284,879

 

 

$3.95-7.25

 

$

6.01

 

 

(1)

The aggregate fair value of the restricted stock vested was $736,000, $1,270,000, and $169,000 for 2019, 2018, and 2017.

(2)

The aggregate fair value of the restricted stock was $2,071,000 as of December 31, 2019. The remaining vesting period was 3.07 years at December 31, 2019.

In addition, during the twelve months ended December 31, 2019, the Company granted and has outstanding, 26,040 restricted stock units that vest in one year with a grant price of $4.80. These units have the option of deferring vesting until a future date if the non-employee director makes a formal election under the guidelines of IRC Section 409A.

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2019.

 

 

 

Number of

Options

 

 

Exercise Price

Per Share

 

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2018

 

 

62,777

 

 

$2.14-7.10

 

 

$

4.59

 

Granted

 

 

449,450

 

 

5.21-7.25

 

 

 

6.61

 

Cancelled

 

 

(3,076

)

 

 

6.55

 

 

 

6.55

 

Vested

 

 

(21,889

)

 

2.14-7.10

 

 

 

4.40

 

Outstanding at December 31, 2019

 

 

487,262

 

 

$2.14-7.25

 

 

$

6.45

 

 

The intrinsic value of the options vested was $43,000, $32,000, and $0 in 2019, 2018, and 2017.

v3.20.1
Quarterly Results of Operations (Unaudited)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Results of Operations (Unaudited)

(11) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table presents the Company’s quarterly results of operations for the years ended December 31, 2019, 2018, and 2017.

 

(Dollars in thousands, except per share data)

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

2019 Quarter Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

22,321

 

 

$

23,194

 

 

$

25,415

 

 

$

26,587

 

Income (loss) before income taxes

 

 

1,139

 

 

 

(8,478

)

 

 

7,600

 

 

 

2,076

 

Net income (loss) after taxes

 

 

1,395

 

 

 

(6,643

)

 

 

7,435

 

 

 

(191

)

Net income (loss) attributable to Medallion Financial

   Corp.

 

 

1,228

 

 

 

(7,500

)

 

 

4,975

 

 

 

(465

)

Basic net income (loss) per share

 

 

0.05

 

 

 

(0.31

)

 

 

0.20

 

 

 

(0.02

)

Diluted net income (loss) per share

 

 

0.05

 

 

 

(0.31

)

 

 

0.20

 

 

 

(0.02

)

2018 Quarter Ended (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/net investment income

 

$

482

 

 

$

24,719

 

 

$

24,265

 

 

$

23,003

 

Income (loss) before income taxes/net investment loss

   before taxes

 

 

(3,566

)

 

 

(17,905

)

 

 

(3,963

)

 

 

14,712

 

Net income (loss) after taxes/net decrease on net assets

   resulting from operations

 

 

(14,874

)

 

 

(13,884

)

 

 

(3,846

)

 

 

9,865

 

Net income (loss) attributable to Medallion Financial

   Corp./net decrease in net assets resulting from operations

 

 

(14,874

)

 

 

(14,647

)

 

 

(4,697

)

 

 

9,172

 

Basic net income (loss) per share

 

 

(0.62

)

 

 

(0.60

)

 

 

(0.19

)

 

 

0.38

 

Diluted net income (loss) per share

 

 

(0.62

)

 

 

(0.60

)

 

 

(0.19

)

 

 

0.38

 

2017 Quarter Ended (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

$

4,250

 

 

$

3,787

 

 

$

5,567

 

 

$

6,020

 

Net investment loss after income taxes

 

 

(435

)

 

 

(1,293

)

 

 

(2,490

)

 

 

(2,903

)

Net increase (decrease) in net assets resulting from

   operations

 

 

1,111

 

 

 

(4,797

)

 

 

619

 

 

 

3,345

 

Net increase (decrease) in net assets resulting from

   operations per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

0.05

 

 

 

(0.20

)

 

 

0.03

 

 

 

0.14

 

Diluted

 

 

0.05

 

 

 

(0.20

)

 

 

0.03

 

 

 

0.14

 

 

(1)

The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.

v3.20.1
Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting

(12) SEGMENT REPORTING (Bank Holding Company Accounting)

Under Bank Holding Company Accounting, the Company has six business segments, which include four lending and two non-operating segments, which are reflective of how Company management makes decisions about its business and operations.

Prior to April 2, 2018, the Company had one business segment, its lending and investing operations. This segment originated and serviced medallion, secured commercial and consumer loans, and invested in both marketable and nonmarketable securities.

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank in all fifty states, with the highest concentrations in Texas, Florida, and California, at 16%, 10%, and 10% of loans outstanding and with no other states over 10% as of December 31, 2019. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 61%, 19%, and 12% of the segment portfolio as of December 31, 2019. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, windows, and solar panels, at 23%, 21%, 14%, and 12% of total home improvement loans outstanding, and with no other product lines over 10% as of December 31, 2019. The commercial lending segment focuses on enterprise wide industries, including manufacturing, retail trade, information, recreation and various other industries, in which 61% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the medallions, taxis, and related assets, of which 88% were in New York City as of December 31, 2019.

In addition, our non-operating segments include RPAC, which is a race car team, and our corporate and other segment, which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements.

As part of the segment reporting, capital ratios for all operating segments have been normalized at 20%, which approximates the percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments for the twelve months ended December 31, 2019. In addition, beginning in 2019, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been re-allocated to corporate and other investments for all periods presented.

 

The following tables present segment data as of and for the year ended December 31, 2019, and as of and for the nine months ended December 31, 2018.

 

Year Ended December 31, 2019

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

99,463

 

 

$

19,943

 

 

$

7,183

 

 

$

3,665

 

 

$

—

 

 

$

2,308

 

 

$

132,562

 

Total interest expense

 

 

13,304

 

 

 

4,757

 

 

 

2,833

 

 

 

7,962

 

 

 

159

 

 

 

6,030

 

 

 

35,045

 

Net interest income (loss)

 

 

86,159

 

 

 

15,186

 

 

 

4,350

 

 

 

(4,297

)

 

 

(159

)

 

 

(3,722

)

 

 

97,517

 

Provision for loan losses

 

 

28,638

 

 

 

1,598

 

 

 

364

 

 

 

16,331

 

 

 

—

 

 

 

455

 

 

 

47,386

 

Net interest income (loss) after loss

   provision

 

 

57,521

 

 

 

13,588

 

 

 

3,986

 

 

 

(20,628

)

 

 

(159

)

 

 

(4,177

)

 

 

50,131

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,742

 

 

 

—

 

 

 

18,742

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,996

)

 

 

—

 

 

 

(8,996

)

Other income (expense), net

 

 

(23,490

)

 

 

(7,520

)

 

 

(1,149

)

 

 

(10,493

)

 

 

(6,942

)

 

 

(7,946

)

 

 

(57,540

)

Net income (loss) before taxes

 

 

34,031

 

 

 

6,068

 

 

 

2,837

 

 

 

(31,121

)

 

 

2,645

 

 

 

(12,123

)

 

 

2,337

 

Income tax (provision) benefit

 

 

(8,813

)

 

 

(1,572

)

 

 

(684

)

 

 

7,596

 

 

 

(329

)

 

 

3,461

 

 

 

(341

)

Net income (loss) after taxes

 

$

25,218

 

 

$

4,496

 

 

$

2,153

 

 

$

(23,525

)

 

$

2,316

 

 

$

(8,662

)

 

$

1,996

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

695,257

 

 

$

244,716

 

 

$

66,405

 

 

$

105,022

 

 

$

—

 

 

$

3,362

 

 

$

1,114,762

 

Total assets

 

 

707,377

 

 

 

252,704

 

 

 

84,924

 

 

 

217,483

 

 

 

31,538

 

 

 

247,641

 

 

 

1,541,667

 

Total funds borrowed

 

 

563,805

 

 

 

201,605

 

 

 

68,666

 

 

 

176,825

 

 

 

7,794

 

 

 

150,898

 

 

 

1,169,593

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

2.20

%

 

 

2.44

%

 

 

(9.73

%)

 

 

7.28

%

 

 

(3.71

%)

 

 

(0.12

)%

Return on average equity

 

 

17.19

 

 

 

10.22

 

 

 

12.21

 

 

 

(48.49

)

 

 

(96.37

)

 

 

(14.26

)

 

 

(0.59

)

Interest yield

 

 

15.39

 

 

 

9.50

 

 

 

11.39

 

 

 

2.88

 

 

N/A

 

 

N/A

 

 

 

11.75

 

Net interest margin

 

 

13.33

 

 

 

7.24

 

 

 

6.90

 

 

 

(3.38

)

 

N/A

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

2.53

 

 

 

1.05

 

 

 

0.00

 

(1)

 

19.48

 

 

N/A

 

 

N/A

 

 

 

3.97

 

Delinquency status(2)

 

 

0.84

 

 

 

0.07

 

 

 

0.15

 

(1)

 

2.04

 

 

N/A

 

 

N/A

 

 

 

0.76

 

Charge-off ratio

 

 

2.69

 

 

 

0.37

 

 

 

1.30

 

(3)

 

14.68

 

 

N/A

 

 

N/A

 

 

 

3.60

 

 

(1)

Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

(2)

Loans 90 days or more past due.

(3)

Ratio is based on total commercial lending balances, and relates to the total loan business.

Nine Months Ended December 31, 2018

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

68,870

 

 

$

12,799

 

 

$

7,076

 

 

$

6,317

 

 

$

—

 

 

$

1,741

 

 

$

96,803

 

Total interest expense

 

 

6,986

 

 

 

2,290

 

 

 

1,502

 

 

 

10,125

 

 

 

121

 

 

 

3,792

 

 

 

24,816

 

Net interest income (loss)

 

 

61,884

 

 

 

10,509

 

 

 

5,574

 

 

 

(3,808

)

 

 

(121

)

 

 

(2,051

)

 

 

71,987

 

Provision for loan losses

 

 

15,118

 

 

 

2,453

 

 

 

—

 

 

 

41,437

 

 

 

—

 

 

 

—

 

 

 

59,008

 

Net interest income (loss) after loss

   provision

 

 

46,766

 

 

 

8,056

 

 

 

5,574

 

 

 

(45,245

)

 

 

(121

)

 

 

(2,051

)

 

 

12,979

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,368

 

 

 

—

 

 

 

14,368

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,121

)

 

 

—

 

 

 

(7,121

)

Other income (expense), net

 

 

(14,242

)

 

 

(3,093

)

 

 

(1,824

)

 

 

9,742

 

 

 

(11,476

)

 

 

(6,489

)

 

 

(27,382

)

Net income (loss) before taxes

 

 

32,524

 

 

 

4,963

 

 

 

3,750

 

 

 

(35,503

)

 

 

(4,350

)

 

 

(8,540

)

 

 

(7,156

)

Income tax (provision) benefit

 

 

(8,579

)

 

 

(1,319

)

 

 

(862

)

 

 

7,938

 

 

 

1,108

 

 

 

1,005

 

 

 

(709

)

Net income (loss) after taxes

 

$

23,945

 

 

$

3,644

 

 

$

2,888

 

 

$

(27,565

)

 

$

(3,242

)

 

$

(7,535

)

 

$

(7,865

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

580,182

 

 

$

181,359

 

 

$

59,973

 

 

$

155,863

 

 

$

—

 

 

$

4,110

 

 

$

981,487

 

Total assets

 

 

590,746

 

 

 

188,892

 

 

 

93,807

 

 

 

273,501

 

 

 

29,925

 

 

 

204,975

 

 

 

1,381,846

 

Total funds borrowed

 

 

434,527

 

 

 

143,815

 

 

 

53,719

 

 

 

294,465

 

 

 

7,649

 

 

 

127,853

 

 

 

1,062,028

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.48

%

 

 

2.56

%

 

 

4.27

%

 

 

(10.13

)%

 

 

(11.69

)%

 

 

(4.07

)%

 

 

(0.90

)%

Return on average equity

 

 

22.60

 

 

 

11.30

 

 

 

9.43

 

 

NM

 

 

NM

 

 

 

(12.37

)

 

 

(4.62

)

Interest yield

 

 

15.78

 

 

 

9.06

 

 

 

14.25

 

 

 

3.58

 

 

N/A

 

 

N/A

 

 

 

10.98

 

Net interest margin

 

 

14.18

 

 

 

7.44

 

 

 

11.23

 

 

 

(2.16

)

 

N/A

 

 

N/A

 

 

 

8.19

 

Reserve coverage

 

 

1.17

 

 

 

0.98

 

 

 

0.00

 

 

 

15.11

 

 

N/A

 

 

N/A

 

 

 

3.58

 

Delinquency status(2)

 

 

0.73

 

 

 

0.07

 

 

 

0.44

 

(1)

 

9.43

 

 

N/A

 

 

N/A

 

 

 

2.14

 

Charge-off ratio

 

 

1.89

 

 

 

0.46

 

 

 

0.00

 

 

 

7.21

 

 

N/A

 

 

N/A

 

 

 

2.73

 

 

(1)

Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

(2)

Loans 90 days or more past due.

 
v3.20.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(13) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a two- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a two-year term will renew for new two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one-year term; however, there is currently one agreement that renews after two years for additional one-year terms and one agreement with a two-year term that does not have a renewal period. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period.

Employment agreements expire at various dates through 2024, which future minimum payments under these agreements of approximately $5,670,000 as follows.

 

(Dollars in thousands)

 

 

 

 

2020

 

$

2,389

 

2021

 

 

1,654

 

2022

 

 

673

 

2023

 

 

673

 

2024

 

 

281

 

Thereafter

 

 

—

 

Total

 

$

5,670

 

 

(B) OTHER COMMITMENTS

The Company had no commitments outstanding to extend credit or make investments at December 31, 2019. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

 

(C) LITIGATION

The Company and its subsidiaries become defendants to various legal proceedings arising from the normal course of business. In the opinion of management, based on the advice of legal counsel, there is no proceeding pending, or to the knowledge of management threatened, which in the event of an adverse decision could result in a material adverse impact on the financial condition or results of operations of the Company.

(D) REGULATORY

In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of FSVC transfer to liquidation status and the restructure of the FSVC loan described in Note 7.

v3.20.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

(14) 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, is an officer of LAX Group, LLC, or LAX, one of the Company’s equity investments. Mr. Rudnick receives a salary from LAX of $171,000 per year, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year-end bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200.

The Company’s subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which it makes an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Mr. Petty of $7,294,000 that earns interest at an annual rate of 2% as of December 31, 2019, none of which has been paid to date.

In the 2019 second quarter, RPAC entered into a sponsorship agreement with Victory Junction, a 501(c)(3) public charity of which Richard Petty is a board member, for $7,000,000 of sponsorship payments to RPAC during the 2019 race car season, of which $5,600,000 was subsequently earned and received in 2019, and the balance which has been written off as it was not expected to be received.

The Company and MSC serviced $311,988,000 of loans for the Bank at December 31, 2017. Under Investment Company Accounting, included in net investment income were amounts as described in the table below that were received from the Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf.

The Company had assigned its servicing rights to the Bank portfolio to MSC, a wholly-owned entity that had been unconsolidated under Investment Company Accounting. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from the Bank by MSC. As a result, $1,290,000 and $5,272,000 of servicing fee income was earned by MSC for the three months ended March 31, 2018 and for the year ended December 31, 2017.

The following table summarizes the net revenues received from the Bank not eliminated under Investment Company Accounting.

 

 

 

Three Months Ended

 

 

Year Ended

 

(Dollars in thousands)

 

March 31, 2018

 

 

December 31, 2017

 

Reimbursement of operating expenses

 

$

250

 

 

$

865

 

Loan origination and servicing fees

 

 

6

 

 

 

5

 

Total other income

 

$

256

 

 

$

870

 

 

The Company had a loan to Medallion Fine Art, Inc. in the amount of $999,000 as of December 31, 2017, which was repaid in full during the 2018 first quarter. The loan bore interest at a rate of 12%, all of which was paid in kind. During 2017, the Company advanced $0, and was repaid $2,365,000 with respect to this loan. Additionally, the Company recognized $10,000 of interest income not eliminated for the year ended December 31, 2018, and $165,000 of interest income in 2017.

The Company and MCI have loans to RPAC which has been eliminated in consolidation since April 2, 2018. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018 and during the year ended December 31, 2017, recognized $56,000 of interest income with respect to these loans.

v3.20.1
Stockholders'/Shareholders' Equity
 12 Months Ended
Dec. 31, 2019
Federal Home Loan Banks [Abstract]  
Stockholders'/Shareholders' Equity

(15) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY

In November 2003, the Company announced a stock repurchase program which authorized the repurchase of up to $10,000,000 of common stock. In November 2004, the repurchase program was increased by an additional $10,000,000, which was further increased to a total of $20,000,000 in July 2014, and which was further increased to a total of $26,000,000 in July 2015. As of December 31, 2019, a total of 2,931,125 shares had been repurchased for $24,587,000, in which $22,874,509 of shares remain authorized for repurchase under the program. There were no purchases in 2019, 2018, and 2017.
v3.20.1
Other Operating Expenses
 12 Months Ended
Dec. 31, 2019
Other Income And Expenses [Abstract]  
Other Operating Expenses

(16) OTHER OPERATING EXPENSES (Investment Company Accounting)

The major components of other expenses were as follows.

 

 

 

Three Months Ended,

 

 

Year Ended,

 

(Dollars in thousands)

 

March 31, 2018

 

 

December 31, 2017

 

Directors’ fees

 

$

89

 

 

$

319

 

Miscellaneous taxes

 

 

120

 

 

 

258

 

Computer expense

 

 

74

 

 

 

244

 

Other expenses

 

 

304

 

 

 

727

 

Total other operating expenses

 

$

587

 

 

$

1,548

 

 
v3.20.1
Selected Financial Ratios and Other Data
 12 Months Ended
Dec. 31, 2019
Investment Company [Abstract]  
Selected Financial Ratios and Other Data

(17) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting)

The following table provides selected financial ratios and other data for the periods indicated.

 

 

 

Three

Months

Ended

March 31,

 

 

Year ended December 31,

 

(Dollars in thousands, except per share data)

 

2018

 

 

2017

 

 

2016

 

 

2015

 

Net share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value at the beginning of the year

 

$

11.80

 

 

$

11.91

 

 

$

11.42

 

 

$

11.16

 

Net investment income (loss)

 

 

(0.15

)

 

 

(0.33

)

 

 

(0.41

)

 

 

0.69

 

Income tax provision (benefit)

 

 

0.03

 

 

 

1.51

 

 

 

(1.90

)

 

 

0.00

 

Net realized gains (losses) on investments

 

 

(1.44

)

 

 

(1.82

)

 

 

0.02

 

 

 

0.31

 

Net change in unrealized appreciation on investments

 

 

0.94

 

 

 

0.65

 

 

 

3.26

 

 

 

0.20

 

Net increase (decrease) in net assets resulting from

   operations

 

 

(0.62

)

 

 

0.01

 

 

 

0.97

 

 

 

1.20

 

Issuance of common stock

 

 

(0.03

)

 

 

(0.12

)

 

 

—

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

—

 

 

 

0.12

 

 

 

0.06

 

Distribution of net investment income

 

 

—

 

 

 

—

 

 

 

(0.60

)

 

 

(0.81

)

Return of capital

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.18

)

Distribution of net realized gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total distributions

 

 

—

 

 

 

—

 

 

 

(0.60

)

 

 

(0.99

)

Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.01

)

Total increase (decrease) in net asset value

 

 

(0.65

)

 

 

(0.11

)

 

 

0.49

 

 

 

0.26

 

Net asset value at the end of the period/year (1)

 

$

11.15

 

 

$

11.80

 

 

$

11.91

 

 

$

11.42

 

Per share market value at beginning of year

 

$

3.53

 

 

$

3.02

 

 

$

7.04

 

 

$

10.01

 

Per share market value at end of period/year

 

 

4.65

 

 

 

3.53

 

 

 

3.02

 

 

 

7.04

 

Total return (2)

 

 

(129

%)

 

 

17

%

 

 

(54

%)

 

 

(22

%)

Ratios/supplemental data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity (net assets)

 

$

272,437

 

 

$

287,159

 

 

$

286,096

 

 

$

278,088

 

Average net assets

 

 

284,021

 

 

 

285,704

 

 

 

276,978

 

 

 

276,745

 

Total expense ratio (3) (4) (5)

 

 

10.02

%

 

 

(3.03

%)

 

 

29.36

%

 

 

9.45

%

Operating expenses to average net assets (4) (5)

 

 

5.87

 

 

 

4.83

 

 

 

8.23

 

 

 

6.04

 

Net investment income (loss) after income taxes to average

   net assets (4) (5)

 

 

(4.61

)

 

 

(2.49

)

 

 

0.04

 

 

 

6.08

 

 

(1)

Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and December 31, 2017, 2016, and 2015, and $0.00 of undistributed net realized gains per share for all periods presented.

(2)

Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.

(3)

Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4)

MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, and $5,658, and operating expenses of $1,150, $4,211, $5,249, and $6,044, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, and 2015. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, and 11.63%, 8.23%, and 5.94% in 2015.

(5)

These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

v3.20.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2019
Postemployment Benefits [Abstract]  
Employee Benefit Plans

(18) EMPLOYEE BENEFIT PLANS

The Company has a 401(k) Investment Plan, or the 401(k) Plan, which covers all full-time and part-time employees of the Company who have attained the age of 21 and have a minimum of one year of service, including the employees of Medallion Bank. Under the 401(k) Plan, an employee may elect to defer not less than 1% of total annual compensation, up to the applicable limits set forth in the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. The Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third of the first 6% of the employee’s annual contributions, subject to legal limits. The Company’s 401(k) plan expense, including amounts for the employees of Medallion Bank and other consolidated subsidiaries in the prior year periods, was approximately $193,000, $182,000, and $185,000 for the years ended December 31, 2019, 2018, and 2017.

v3.20.1
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2019
Investments All Other Investments [Abstract]  
Fair Value of Financial Instruments

(19) 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)

Cash – Book value equals fair value.

 

(b)

Equity securities – The Company’s equity securities are recorded at cost less impairment, which approximated fair value.

 

(c)

Investment securities – The Company’s investments are recorded at the estimated fair value of such investments.

 

(d)

Loans receivable – The Company’s loans are recorded at book value which approximated fair value.

 

(e)

Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value.

 

(f)

Commitments to extend credit – The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At December 31, 2019 and December 31, 2018, the estimated fair value of these off-balance-sheet instruments was not material.

 

(g)

Fixed rate borrowings – The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

 

 

December 31, 2019

 

 

December 31, 2018

 

(Dollars in  thousands)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and federal funds sold (1)

 

$

67,821

 

 

$

67,821

 

 

$

57,713

 

 

$

57,713

 

Equity investments

 

 

10,079

 

 

 

10,079

 

 

 

9,197

 

 

 

9,197

 

Investment securities

 

 

48,998

 

 

 

48,998

 

 

 

45,324

 

 

 

45,324

 

Loans receivable

 

 

1,114,762

 

 

 

1,114,762

 

 

 

981,487

 

 

 

981,487

 

Accrued interest receivable (2)

 

 

8,662

 

 

 

8,662

 

 

 

7,413

 

 

 

7,413

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (3)

 

 

1,169,593

 

 

 

1,171,274

 

 

 

1,062,028

 

 

 

1,062,297

 

Accrued interest payable (2)

 

 

4,398

 

 

 

4,398

 

 

 

3,852

 

 

 

3,852

 

 

(1)

Categorized as level 1 within the fair value hierarchy. See Note 20.

(2)

Categorized as level 3 within the fair value hierarchy. See Note 20.

(3)

As of December 31, 2019 and 2018, publicly traded unsecured notes traded at a premium to par of $1,681 and $269.

v3.20.1
Fair Value of Assets and liabilities
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(20) 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. Commencing with the quarter ended June 30, 2018, equity investments are recorded at cost and are evaluated for impairment periodically.

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 December 31, 2019 and 2018.

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,079

 

 

$

10,079

 

Available for sale investment securities (1)

 

 

—

 

 

 

48,998

 

 

 

—

 

 

 

48,998

 

Total

 

$

—

 

 

$

48,998

 

 

$

10,079

 

 

$

59,077

 

 

(1)

Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets.

 

December 31, 2018

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,197

 

 

$

9,197

 

Available for sale investment securities (1)

 

 

—

 

 

 

45,324

 

 

 

—

 

 

 

45,324

 

Total

 

$

—

 

 

$

45,324

 

 

$

9,197

 

 

$

54,521

 

 

(1)

Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the twelve months ended December 31, 2019, and the nine months ended December 31, 2018 under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 under Investment Company Accounting.

 

(Dollars in  thousands)

 

Equity

Investments

 

December 31, 2018

 

$

9,197

 

Gains included in earnings

 

 

87

 

Purchases, investments, and issuances

 

 

3,396

 

Sales, maturities, settlements, and distributions

 

 

(2,601

)

December 31, 2019

 

$

10,079

 

Amounts related to held assets (1)

 

$

(1,734

)

 

(1)

Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2019.

 

(Dollars in  thousands)

 

Equity

Investments

 

March 31, 2018

 

$

9,458

 

Losses included in earnings

 

 

(1,274

)

Purchases, investments, and issuances

 

 

1,232

 

Sales, maturities, settlements, and distributions

 

 

(1,596

)

Transfers in (1)

 

 

1,377

 

December 31, 2018

 

$

9,197

 

Amounts related to held assets (2)

 

$

(1,851

)

 

(1)

Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2)

Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.

 

(Dollars in  thousands)

 

Medallion

Loans

 

 

Commercial

Loans

 

 

Investments in

Medallion

Bank & Other

Controlled

Subsidiaries

 

 

Equity

Investments

 

 

Investments

Other Than

Securities

 

 

Other

Assets

 

December 31, 2017

 

$

208,279

 

 

$

90,188

 

 

$

302,147

 

 

$

9,521

 

 

$

7,450

 

 

$

339

 

Gains (losses) included in earnings

 

 

(38,190

)

 

 

(8

)

 

 

29,143

 

 

 

(993

)

 

 

(1,915

)

 

 

—

 

Purchases, investments, and issuances

 

 

7

 

 

 

7,252

 

 

 

462

 

 

 

935

 

 

 

—

 

 

 

—

 

Sales, maturities, settlements, and distributions

 

 

(8,941

)

 

 

(3,812

)

 

 

(583

)

 

 

(5

)

 

 

—

 

 

 

—

 

March 31, 2018

 

$

161,155

 

 

$

93,620

 

 

$

331,169

 

 

$

9,458

 

 

$

5,535

 

 

$

339

 

Amounts related to held assets (1)

 

$

(38,190

)

 

$

(10

)

 

$

29,143

 

 

$

(993

)

 

$

(1,915

)

 

$

—

 

 

(1)

Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018.

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2019 and 2018 under Bank Holding Company Accounting.

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

—

 

 

$

—

 

 

$

34,915

 

 

$

34,915

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

52,711

 

 

 

52,711

 

Total

 

$

—

 

 

$

—

 

 

$

87,626

 

 

$

87,626

 

 

December 31, 2018

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

—

 

 

$

—

 

 

$

47,974

 

 

$

47,974

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

49,495

 

 

 

49,495

 

Total

 

$

—

 

 

$

—

 

 

$

97,469

 

 

$

97,469

 

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2019 and 2018 were as follows under Bank Holding Company Accounting.

 

(Dollars in thousands)

 

Fair Value

at 12/31/19

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity investments

 

$

7,435

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,189

 

 

Investee book value adjusted for market appreciation

 

Financial condition and operating performance of the investee

 

N/A

 

 

 

 

 

 

Public company comparables

 

Business enterprise value

 

$4,855 – $6,120

 

 

 

 

 

 

 

 

Business enterprise value/revenue multiples

 

1.59-5.98x

 

 

 

 

 

 

 

 

Discount for lack of marketability

 

25%

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

 

 

(Dollars in thousands)

 

Fair Value

at 12/31/18

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity Investments

 

$

5,683

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,850

 

 

Investee book value adjusted for market appreciation

 

Financial condition and operating performance of the investee

 

N/A

 

 

 

 

 

 

Precedent arm’s length offer

 

Business enterprise value

 

$6,014 – $7,214

 

 

 

 

 

 

 

 

Business enterprise value/revenue multiples

 

0.96x – 4.54x

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

 

 

209

 

 

Investee book value

 

Valuation indicated by investee filings

 

N/A

 
v3.20.1
Medallion Bank Preferred Stock
 12 Months Ended
Dec. 31, 2019
Medallion Bank [Member]  
Medallion Bank Preferred Stock

(21) MEDALLION BANK PREFERRED STOCK

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 February 27, 2009 and December 22, 2009, the Bank issued, and the US Treasury purchased under the Troubled Assets Relief Program, or TARP, Capital Purchase Program, or the CPP, the Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011, the Bank issued, and the US Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E, or Series E, for an aggregate purchase price of $26,303,000 under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. The Bank pays a dividend rate of 9% on the Series E.

v3.20.1
Parent Company Only Condensed Financial Statements
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Parent Company Only Condensed Financial Statements

(22) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS

The following shows the condensed financial information of Medallion Financial Corp. (parent company only) under Bank Holding Company Accounting.

Condensed Balance Sheets

 

(Dollars in thousands)

 

December 31, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

4,477

 

 

$

1,110

 

Net loans receivable

 

 

26,802

 

 

 

37,737

 

Loans collateral in process of foreclosure

 

 

11,104

 

 

 

12,001

 

Goodwill and intangible assets

 

 

177,176

 

 

 

178,621

 

Investments in bank subsidiaries

 

 

158,201

 

 

 

142,469

 

Investments in non-bank subsidiaries

 

 

92,856

 

 

 

91,059

 

Income tax receivable

 

 

4,708

 

 

 

—

 

Other assets

 

 

14,111

 

 

 

5,776

 

Total assets

 

$

489,435

 

 

$

468,773

 

Liabilities

 

 

 

 

 

 

 

 

Other liabilities

 

$

18,660

 

 

$

9,073

 

Intercompany payables

 

 

54,904

 

 

 

63,352

 

Short-term borrowings

 

 

8,188

 

 

 

38,870

 

Deferred tax liabilities

 

 

30,728

 

 

 

28,245

 

Long-term borrowings

 

 

113,807

 

 

 

66,625

 

Total liabilities

 

 

226,287

 

 

 

206,165

 

Total stockholders’ equity

 

 

263,148

 

 

 

262,608

 

Total liabilities and equity

 

$

489,435

 

 

$

468,773

 

Condensed Statements of Operations

 

(Dollars in thousands)

 

Year Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Interest income

 

$

(2,552

)

 

$

(1,958

)

Interest expense

 

 

8,856

 

 

 

5,480

 

Net interest loss

 

 

(11,408

)

 

 

(7,438

)

Provision for loan losses

 

 

6,377

 

 

 

19,190

 

Net interest loss after provision for loan losses

 

 

(17,785

)

 

 

(26,628

)

Other income (expenses), net

 

 

(13,686

)

 

 

(16,913

)

Loss before income taxes and undistributed earnings of

   subsidiaries

 

 

(31,471

)

 

 

(43,541

)

Income tax benefit

 

 

7,013

 

 

 

5,328

 

Loss before undistributed earnings of subsidiaries

 

 

(24,458

)

 

 

(38,213

)

Undistributed earnings of subsidiaries

 

 

22,696

 

 

 

28,041

 

Net income (loss) attributable to parent company

 

$

(1,762

)

 

$

(10,172

)

Condensed Statements of Other Comprehensive Income (Loss)

 

(Dollars in thousands)

 

Year Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Net income (loss)

 

$

(1,762

)

 

$

(10,172

)

Other comprehensive income (loss)

 

 

1,081

 

 

 

(82

)

Total comprehensive income (loss) attributable to Medallion Financial

 

$

(681

)

 

$

(10,254

)

Condensed Statements of Cash Flow

 

(Dollars in thousands)

 

Year Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

CASH FLOWS FROM OPERATING ACTIVITIES

   Net income (loss)

 

$

(1,762

)

 

$

(10,172

)

Adjustments to reconcile net income (loss) to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Equity in undistributed earnings of subsidiaries

 

 

(22,696

)

 

 

(28,041

)

Provision for loan losses

 

 

6,377

 

 

 

19,190

 

Depreciation and amortization

 

 

5,484

 

 

 

5,451

 

Change in deferred and other tax assets/liabilities, net

 

 

(2,225

)

 

 

4,512

 

Proceeds from sales of loan collateral in process of foreclosure

 

 

2,403

 

 

 

487

 

Net change in loan collateral in process of foreclosure

 

 

906

 

 

 

678

 

Net change in unrealized depreciation on investments

 

 

1,786

 

 

 

—

 

Stock-based compensation expense

 

 

1,221

 

 

 

425

 

Decrease in other assets

 

 

988

 

 

 

4,073

 

Increase in deferred financing costs

 

 

(1,297

)

 

 

—

 

Decrease in intercompany payables

 

 

(8,448

)

 

 

(3,368

)

Increase in other liabilities

 

 

(1,759

)

 

 

4,237

 

Net cash used by operating activities

 

 

(19,022

)

 

 

(2,528

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Loans originated

 

 

(3,312

)

 

 

(309

)

Proceeds from principal receipts, sales, and maturities

   of loans and investments

 

 

2,313

 

 

 

10,900

 

Purchases of investments

 

 

(1,125

)

 

 

—

 

Dividends from subsidiaries

 

 

6,248

 

 

 

5,200

 

Net cash provided by investing activities

 

 

4,124

 

 

 

15,791

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

36,000

 

 

 

—

 

Repayments of funds borrowed

 

 

(17,735

)

 

 

(17,208

)

Net cash provided by (used for) financing activities

 

 

18,265

 

 

 

(17,208

)

NET INCREASE (DECREASE) IN CASH AND

   CASH EQUIVALENTS

 

 

3,367

 

 

 

(3,945

)

Cash and cash equivalents, beginning of period

 

 

1,110

 

 

 

5,055

 

Cash and cash equivalents, end of period

 

$

4,477

 

 

$

1,110

 

 
v3.20.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Variable Interest Entities

(23) VARIABLE INTEREST ENTITIES (VIE)

During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are considered a variable interest. This conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty (see Note 7 for more details). The Company’s interest in Trust III is accounted for as an equity investment and has a value of $0 as of December 31, 2019 and 2018. 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 $88,780,000, currently terminates on November 15, 2020. Borrowings under the DZ loan are collateralized by Trust III’s assets.

 
v3.20.1
Subsequent Events
 12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

(24) SUBSEQUENT EVENTS

The Company evaluated the effects of events that have occurred subsequent to the year ended December 31, 2019, through the date of financial statement issuance.

As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which may negatively and materially affect the financial position, results of operations, and cash flows of the Company.  The COVID-19 outbreak in the US has disrupted the Company’s operations through its impact on its employees, borrowers, investee companies and their businesses.  Disruptions to the Company’s borrowers and investee companies may impair their ability to fulfill their obligations to the Company, and result in increased risk of delinquencies, defaults, foreclosures, declining collateral values, loan losses, and other financial impacts.  The Company has taken steps to operate through this crisis, for example, by having employees work remotely, and negotiating with borrowers and lenders alike as to payment terms.  The duration of these uncertainties and the ultimate financial effects cannot be reasonably estimated at this time, but could be material.

 
v3.20.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Change to Bank Holding Company Accounting

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, or the 1940 Act. Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (GAAP) requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and loans in process of foreclosure, goodwill and intangible assets, and investments, among other effects.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act, effective April 2, 2018, the Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018. See Note 6 for the presentation of financial information for the Bank and other controlled subsidiaries for such prior periods.

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022.
Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 19 and 20 to the consolidated financial statements.

Equity Investments

Equity Investments

Equity investments of $10,079,000 and $9,197,000 at December 31, 2019 and 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry.

Investment Securities (Bank Holding Company Accounting)

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments–Debt and Equity Securities, or ASC 320, which requires that all applicable investments in equity securities with readily determinable fair values, and debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time to time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $248,000 and $154,000 at December 31, 2019 and 2018, and $79,000  was amortized to interest income for the year ended December 31, 2019, and $80,000 was amortized to interest income for the nine months ended December 31, 2018. The Bank, a previously unconsolidated subsidiary under Investment Company Accounting prior to April 2, 2018, amortized $21,000 and $81,000 to interest income for the three months ended March 31, 2018 and for year ended December 31, 2017. 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 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 stockholder’s equity, which were recorded net of the income tax effect, will be reversed.

Other Investment Valuation (Investment Company Accounting)

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in the Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties has continued. The Company incorporated these new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the 2018 first quarter. Refer to Note 6 for additional details.

Loans

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2019 and 2018, net loan origination costs were $17,839,000 and $14,416,000. The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization to income for the years ended December 31, 2019, 2018 and 2017 was $4,952,000, $3,128,000 ($3,993,000 when combined with the Bank), and $68,000 ($3,581,000 when combined with the Bank).

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded to write the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as a recovery. Total loans 90 days or more past due were $8,663,000 at December 31, 2019, or 0.76% of the total loan portfolio, compared to $21,225,000, or 2.14% at December 31, 2018.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance, and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance.

Loan collateral in process of foreclosure primarily includes medallion loans that have reached 120 days past due and have been charged down to their net realizable value, in addition to consumer repossessed collateral in the process of being sold. The medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company had $28,833,000 and $40,500,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2019 and 2018.

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 $113,581,000 and $140,180,000 at December 31, 2019 and 2018. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of December 31, 2019 and 2018. The Company assigned its servicing rights of the Bank’s portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from the Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $3,173,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded a general reserve benefit of $2,230,000. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments were generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Refer to Note 5 for additional details.

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2019 and 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,536,000 and $53,982,000, and the Company recognized $1,446,000 and $1,083,000 of amortization expense on the intangible assets for the twelve months ended December 31, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $5,758,000 and $9,048,000 were outstanding at December 31, 2019 and 2018, and of which $3,289,000 and $3,339,000 were amortized to interest income for the twelve months ended December 31, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2019 and 2018, who concluded there was no impairment on the Bank and there was impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the details of the intangible assets of the dates presented.

 

(Dollars in thousands)

 

December 31, 2019

 

 

December 31, 2018

 

Brand-related intellectual property

 

$

20,075

 

 

$

21,176

 

Home improvement contractor relationships

 

 

6,296

 

 

 

6,641

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets

 

$

52,536

 

 

$

53,982

 
Fixed Assets

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $418,000, $422,000, and $94,000 ($232,000 had the Bank been consolidated) for the years ended December 31, 2019, 2018, and 2017.

Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2,348,000, $1,864,000, and $925,000 ($2,255,000 had the Bank been consolidated) for the years ended December 31, 2019, 2018, and 2017, recorded as interest expense. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the Company’s balance sheet for all of these purposes were $5,105,000 and $4,461,000 at December 31, 2019 and 2018.

Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, 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 our valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.
Sponsorship and Race Winnings

Sponsorship and Race Winnings

The Company accounts for sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized when the Company’s performance obligations are completed in accordance with the contract terms of the sponsorship contract. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver.

Earnings (Loss) Per Share (EPS)

Earnings (Loss) Per Share (EPS)

Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS.

 

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share)

 

2019

 

 

2018

 

 

2017

 

Net income (loss)/net increase in net assets resulting from

   operations available to common stockholders

 

$

(1,762

)

 

$

(25,046

)

 

$

278

 

Weighted average common shares outstanding applicable

   to basic EPS

 

 

24,342,979

 

 

 

24,214,978

 

 

 

23,919,994

 

Effect of dilutive stock options

 

 

—

 

 

 

—

 

 

 

439

 

Effect of restricted stock grants

 

 

—

 

 

 

—

 

 

 

132,874

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,342,979

 

 

 

24,214,978

 

 

 

24,053,307

 

Basic income (loss) per share

 

$

(0.07

)

 

$

(1.03

)

 

$

0.01

 

Diluted income (loss) per share

 

 

(0.07

)

 

 

(1.03

)

 

 

0.01

 

 

Potentially dilutive common shares excluded from the above calculations aggregated 462,180, 100,000, and 366,245 shares as of December 31, 2019, 2018, and 2017.

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 increase in net income/net assets resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income/net increase net assets resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

During 2019, 2018, and 2017, the Company issued 216,148, 101,010, and 327,251 restricted shares of stock-based compensation awards, issued 449,450, 39,000, and 29,666 shares of other stock-based compensation awards, and issued 26,040, 0, and 0 of restricted share units of stock based compensation awards, and recognized $1,221,000, $576,000, and $785,000, or $0.05, $0.02, and $0.03, per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,797,000, which is expected to be recognized over the next 17 quarters (see Note 10).

Regulatory Capital

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the bank regulators about components, risk weightings, and other factors.

FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with the Company or its affiliates.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2019, the Bank’s Tier 1 leverage ratio was 19.35%. The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

 

 

Regulatory

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

Minimum

 

 

Well-Capitalized

 

 

December 31, 2019

 

 

December 31, 2018

 

Common Equity Tier 1 capital

 

 

—

 

 

 

—

 

 

$

158,187

 

 

$

141,608

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

226,975

 

 

 

167,911

 

Total capital

 

 

—

 

 

 

—

 

 

 

241,842

 

 

 

180,917

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,172,866

 

 

 

1,059,461

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,144,337

 

 

 

993,374

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

19.4

%

 

 

15.8

%

Common Equity Tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.8

 

 

 

14.3

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

19.8

 

 

 

16.9

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

21.1

 

 

 

18.2

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.

(3)

Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In the table above, the minimum risk-based ratios as of December 31, 2018 reflect the 75% phase-in of the capital conservation buffer of 2.5%, and the minimum risk-based ratios as of December 31, 2019 reflect the capital conservation buffer of 2.5%. The “well-capitalized” requirements were the binding requirements for risk-based capital ratios as of December 31, 2018 because of the transitional provisions then applicable to the capital conservation buffer and were the binding requirements for Tier 1 leverage capital as of both December 31, 2019 and December 31, 2018.
Recently Issued Accounting Standards

Recently Issued Accounting Standards

In March 2020, the FASB issues ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The objective of this is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company does not believe this will have a material impact on its financial condition.

In December 2019, the FASB issued ASU 2019-12 “Income Taxes, or Topic 740,: Simplifying the Accounting for Income Taxes.” The objective of this update is to simplify the accounting for income taxes by removing certain exceptions to the general principles and improve consistent application of and simplify other areas of Topic 740. The amendments in this update are effective for annual periods beginning after December 15, 2020, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement, or Topic 820,: Disclosure Framework-Changes to the Disclosure Requirements for Fair Value.” The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other, or Topic 350,: Simplifying the Test for Goodwill Impairment.” The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses, or Topic 326,: Measurement of Credit Losses on Financial Instruments.” The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In October 2019, the FASB voted to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have an impact on the Company’s accounting for estimated credit losses on its loans.

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.

v3.20.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of Intangible Assets

The table below shows the details of the intangible assets of the dates presented.

 

(Dollars in thousands)

 

December 31, 2019

 

 

December 31, 2018

 

Brand-related intellectual property

 

$

20,075

 

 

$

21,176

 

Home improvement contractor relationships

 

 

6,296

 

 

 

6,641

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets

 

$

52,536

 

 

$

53,982

 
Summary of the Calculation of Basic and Diluted EPS The table below shows the calculation of basic and diluted EPS.

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share)

 

2019

 

 

2018

 

 

2017

 

Net income (loss)/net increase in net assets resulting from

   operations available to common stockholders

 

$

(1,762

)

 

$

(25,046

)

 

$

278

 

Weighted average common shares outstanding applicable

   to basic EPS

 

 

24,342,979

 

 

 

24,214,978

 

 

 

23,919,994

 

Effect of dilutive stock options

 

 

—

 

 

 

—

 

 

 

439

 

Effect of restricted stock grants

 

 

—

 

 

 

—

 

 

 

132,874

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,342,979

 

 

 

24,214,978

 

 

 

24,053,307

 

Basic income (loss) per share

 

$

(0.07

)

 

$

(1.03

)

 

$

0.01

 

Diluted income (loss) per share

 

 

(0.07

)

 

 

(1.03

)

 

 

0.01

 

 
Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

Minimum

 

 

Well-Capitalized

 

 

December 31, 2019

 

 

December 31, 2018

 

Common Equity Tier 1 capital

 

 

—

 

 

 

—

 

 

$

158,187

 

 

$

141,608

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

226,975

 

 

 

167,911

 

Total capital

 

 

—

 

 

 

—

 

 

 

241,842

 

 

 

180,917

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,172,866

 

 

 

1,059,461

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,144,337

 

 

 

993,374

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

19.4

%

 

 

15.8

%

Common Equity Tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.8

 

 

 

14.3

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

19.8

 

 

 

16.9

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

21.1

 

 

 

18.2

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.

(3)

Calculated by dividing Tier 1 or total capital by risk-weighted assets.

v3.20.1
Investment Securities (Bank Holding Company Accounting) (Tables)
 12 Months Ended
Dec. 31, 2019
Schedule Of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale at December 31, 2019 and 2018 consisted of the following:

 

December 31, 2019

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

36,335

 

 

$

411

 

 

$

(112

)

 

$

36,634

 

State and municipalities

 

 

12,279

 

 

 

186

 

 

 

(101

)

 

 

12,364

 

Total

 

$

48,614

 

 

$

597

 

 

$

(213

)

 

$

48,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

32,184

 

 

$

15

 

 

$

(742

)

 

$

31,457

 

State and municipalities

 

 

14,239

 

 

 

35

 

 

 

(407

)

 

 

13,867

 

Total

 

$

46,423

 

 

$

50

 

 

$

(1,149

)

 

$

45,324

 
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity

The amortized cost and estimated market value of investment securities as of December 31, 2019 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

2,035

 

 

$

2,029

 

Due after one year through five years

 

 

10,254

 

 

 

10,281

 

Due after five years through ten years

 

 

10,052

 

 

 

10,101

 

Due after ten years

 

 

26,273

 

 

 

26,587

 

Total

 

$

48,614

 

 

$

48,998

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2019

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(74

)

 

$

8,291

 

 

$

(38

)

 

$

4,939

 

State and municipalities

 

 

(17

)

 

 

2,099

 

 

 

(84

)

 

 

2,739

 

Total

 

$

(91

)

 

$

10,390

 

 

$

(122

)

 

$

7,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2018

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(54

)

 

$

4,616

 

 

$

(688

)

 

$

24,871

 

State and municipalities

 

 

(78

)

 

 

5,429

 

 

 

(329

)

 

 

6,259

 

Total

 

$

(132

)

 

$

10,045

 

 

$

(1,017

)

 

$

31,130

 
v3.20.1
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2019
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2019 and 2018.

 

 

 

As of December 31, 2019

 

 

As of December 31, 2018

 

(Dollars in thousands)

 

Amount

 

 

As a

Percent of

Gross Loans

 

 

Amount

 

 

As a

Percent of

Gross Loans

 

Recreation

 

$

713,332

 

 

 

62

%

 

$

587,038

 

 

 

58

%

Home improvement

 

 

247,324

 

 

 

21

 

 

 

183,155

 

 

 

18

 

Commercial

 

 

69,767

 

 

 

6

 

 

 

64,083

 

 

 

6

 

Medallion

 

 

130,432

 

 

 

11

 

 

 

183,606

 

 

 

18

 

Total gross loans

 

 

1,160,855

 

 

 

100

%

 

 

1,017,882

 

 

 

100

%

Allowance for loan losses

 

 

(46,093

)

 

 

 

 

 

 

(36,395

)

 

 

 

 

Total net loans

 

$

1,114,762

 

 

 

 

 

 

$

981,487

 

 

 

 

 
Components of Changes in Gross Loans

 

The following table show the components of changes in gross loans for the twelve months ended December 31, 2019.

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Total

 

Gross loans – December 31, 2018

 

$

587,038

 

 

$

183,155

 

 

$

64,083

 

 

$

183,606

 

 

$

1,017,882

 

Loan originations

 

 

301,403

 

 

 

142,112

 

 

 

18,578

 

 

 

—

 

 

 

462,093

 

Principal payments

 

 

(146,873

)

 

 

(76,157

)

 

 

(13,553

)

 

 

(15,070

)

 

 

(251,653

)

Charge-offs, net

 

 

(17,419

)

 

 

(786

)

 

 

(819

)

 

 

(18,664

)

 

 

(37,688

)

Transfer to loans in process of foreclosure, net

 

 

(14,512

)

 

 

—

 

 

 

—

 

 

 

(16,836

)

 

 

(31,348

)

Amortization of origination costs

 

 

(6,428

)

 

 

1,561

 

 

 

34

 

 

 

(119

)

 

 

(4,952

)

Amortization of loan premium

 

 

(247

)

 

 

(416

)

 

 

—

 

 

 

(2,626

)

 

 

(3,289

)

FASB origination costs

 

 

10,370

 

 

 

(2,145

)

 

 

610

 

 

 

141

 

 

 

8,976

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

834

 

 

 

—

 

 

 

834

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

1,160,855

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2019 and the nine months ended December 31, 2018.

 

(Dollars in thousands)

 

Twelve Months Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

 

Allowance for loan losses – beginning balance

 

$

36,395

 

 

$

—

 

(1)

Charge-offs

 

 

 

 

 

 

 

 

 

Recreation

 

 

(24,433

)

 

 

(12,697

)

 

Home improvement

 

 

(2,504

)

 

 

(1,562

)

 

Commercial

 

 

(819

)

 

 

—

 

 

Medallion

 

 

(22,205

)

 

 

(14,277

)

 

Total charge-offs

 

 

(49,961

)

 

 

(28,536

)

 

Recoveries

 

 

 

 

 

 

 

 

 

Recreation

 

 

7,014

 

 

 

4,437

 

 

Home improvement

 

 

1,718

 

 

 

905

 

 

Commercial

 

 

—

 

 

 

4

 

 

Medallion

 

 

3,541

 

 

 

577

 

 

Total recoveries

 

 

12,273

 

 

 

5,923

 

 

Net charge-offs (2)

 

 

(37,688

)

 

(22,613)

 

 

Provision for loan losses

 

 

47,386

 

 

 

59,008

 

(4)

Allowance for loan losses – ending balance (3)

 

$

46,093

 

 

$

36,395

 

 

 

(1)

Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances, resulting in a starting point of zero for this table.

(2)

As of December 31, 2019, cumulative charge-offs of loans and loans in process of foreclosure in the medallion loan portfolio were $241,214, representing collection opportunities for the Company.

(3)

Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.

(4)

Includes $8,161 of reversal of provision for loan losses related to the deconsolidation of Trust III in the 2018 fourth quarter.
Summary of Allowance for Loan Losses by Type of Loan

The following tables set forth the allowance for loan losses by type as of December 31, 2019 and 2018.

 

December 31, 2019

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

Recreation

 

$

18,075

 

 

 

39

%

 

 

2.53

%

Home Improvement

 

 

2,608

 

 

 

6

 

 

 

1.05

 

Commercial

 

 

—

 

 

 

—

 

 

—

 

Medallion

 

 

25,410

 

 

 

55

 

 

 

19.48

 

Total

 

$

46,093

 

 

 

100

%

 

 

3.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

Recreation

 

$

6,856

 

 

 

19

%

 

 

1.17

%

Home Improvement

 

 

1,796

 

 

 

5

 

 

 

0.98

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

27,743

 

 

 

76

 

 

 

15.11

 

Total

 

$

36,395

 

 

 

100

%

 

 

3.58

%
Summary of Total Nonaccrual Loans and Foregone Interest

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

 

 

 

Bank Holding

Company

Accounting

 

 

Investment

Company

Accounting

 

(Dollars in thousands)

 

December 31,

2019

 

 

December 31,

2018

 

 

December 31,

2017 (1)

 

Total nonaccrual loans

 

$

26,484

 

 

$

34,877

 

 

$

98,494

 

Interest foregone for the year

 

 

2,152

 

 

 

1,153

 

 

 

823

 

Amount of foregone interest applied to principal

   for the year

 

 

254

 

 

 

535

 

 

 

52

 

Interest foregone life-to-date

 

 

2,744

 

 

 

1,952

 

 

 

12,485

 

Amount of foregone interest applied to principal

   life-to-date

 

 

471

 

 

 

1,214

 

 

 

3,495

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

2

%

 

 

3

%

 

 

31

%

 

(1)

Does not include the Bank’s nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

Summary of Performance Status of Loan

The following tables present the performance status of loans as of December 31, 2019 and 2018.

 

December 31, 2019

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

705,070

 

 

$

8,262

 

 

$

713,332

 

 

 

1.16

%

Home improvement

 

 

247,139

 

 

 

185

 

 

 

247,324

 

 

 

0.07

 

Commercial

 

 

57,905

 

 

 

11,862

 

 

 

69,767

 

 

 

17.00

 

Medallion

 

 

88,248

 

 

 

42,184

 

 

 

130,432

 

 

 

32.34

 

Total

 

$

1,098,362

 

 

$

62,493

 

(1)

$

1,160,855

 

 

 

5.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

581,250

 

 

$

5,788

 

 

$

587,038

 

 

 

0.99

%

Home improvement

 

 

183,018

 

 

 

137

 

 

 

183,155

 

 

 

0.07

 

Commercial

 

 

60,249

 

 

 

3,834

 

 

 

64,083

 

 

 

5.98

 

Medallion

 

 

145,391

 

 

 

38,215

 

 

 

183,606

 

 

 

20.81

 

Total

 

$

969,908

 

 

$

47,974

 

(1)

$

1,017,882

 

 

 

4.71

%

 

 

(1)

Includes $36,009 and $13,097 of TDRs as of December 31, 2019 and 2018, which are accruing and paying currently, but which are considered nonperforming loans under GAAP.

Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2019 and 2018, all of which had an allowance recorded against the principal balance.

 

 

 

December 31, 2019

 

 

Twelve Months Ended

December 31, 2019

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

8,262

 

 

$

8,262

 

 

$

329

 

 

$

8,317

 

 

$

471

 

Home improvement

 

 

185

 

 

 

185

 

 

 

3

 

 

 

185

 

 

 

—

 

Commercial

 

 

11,862

 

 

 

11,867

 

 

 

—

 

 

 

7,886

 

 

 

392

 

Medallion

 

 

42,184

 

 

 

42,650

 

 

 

14,824

 

 

 

44,721

 

 

 

346

 

Total nonperforming loans with an allowance

 

$

62,493

 

 

$

62,964

 

 

$

15,156

 

 

$

61,109

 

 

$

1,209

 

 

 

 

December 31, 2018

 

 

Nine Months Ended

December 31, 2018

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,788

 

 

$

5,788

 

 

$

204

 

 

$

6,165

 

 

$

357

 

Home improvement

 

 

137

 

 

 

137

 

 

 

3

 

 

 

137

 

 

 

—

 

Commercial

 

 

3,834

 

 

 

3,929

 

 

 

—

 

 

 

6,036

 

 

 

(12

)

Medallion

 

 

38,215

 

 

 

39,334

 

 

 

28,940

 

 

 

59,915

 

 

 

725

 

Total nonperforming loans with an allowance

 

$

47,974

 

 

$

49,188

 

 

$

29,147

 

 

$

72,253

 

 

$

1,070

 
Summary of Aging of Loans

The following tables show the aging of all loans as of December 31, 2019 and 2018.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2019

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

27,357

 

 

$

8,426

 

 

$

5,800

 

 

$

41,583

 

 

$

648,227

 

 

$

689,810

 

 

$

—

 

Home improvement

 

 

931

 

 

 

427

 

 

 

184

 

 

 

1,542

 

 

 

249,288

 

 

 

250,830

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

107

 

 

 

107

 

 

 

69,660

 

 

 

69,767

 

 

 

—

 

Medallion

 

 

12,491

 

 

 

2,118

 

 

 

2,572

 

 

 

17,181

 

 

 

109,106

 

 

 

126,287

 

 

 

—

 

Total

 

$

40,779

 

 

$

10,971

 

 

$

8,663

 

 

$

60,413

 

 

$

1,076,281

 

 

$

1,136,694

 

 

$

—

 

 

(1)

Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2018

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

19,584

 

 

$

6,198

 

 

$

4,133

 

 

$

29,915

 

 

$

537,294

 

 

$

567,209

 

 

$

—

 

Home improvement

 

723

 

 

296

 

 

135

 

 

 

1,154

 

 

 

184,507

 

 

 

185,661

 

 

 

—

 

Commercial

 

 

—

 

 

 

454

 

 

 

279

 

 

 

733

 

 

 

63,350

 

 

 

64,083

 

 

 

—

 

Medallion

 

 

8,720

 

 

 

2,694

 

 

 

16,678

 

 

 

28,092

 

 

 

148,743

 

 

 

176,835

 

 

 

—

 

Total

 

$

29,027

 

 

$

9,642

 

 

$

21,225

 

 

$

59,894

 

 

$

933,894

 

 

$

993,788

 

 

$

—

 

 

(1)Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 190% and 220% as of December 31, 2019 and 2018.
Summary of Troubled Debt Restructurings

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2019.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Recreation loans

 

 

294

 

 

$

4,433

 

 

$

2,831

 

Medallion loans

 

 

71

 

 

 

31,376

 

 

 

31,385

 

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2018.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Medallion loans

 

 

11

 

 

$

5,581

 

 

$

5,581

 
Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans

The following tables show the activity of the loans in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2019 and the nine months ended December 31, 2018.

 

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loans in process of foreclosure – December 31, 2018

 

$

1,503

 

 

$

47,992

 

 

$

49,495

 

Transfer from loans, net

 

 

14,512

 

 

 

16,836

 

 

 

31,348

 

Sales

 

 

(7,591

)

 

 

(1,515

)

 

 

(9,106

)

Cash payments received

 

 

—

 

 

 

(7,697

)

 

 

(7,697

)

Collateral valuation adjustments

 

 

(6,948

)

 

 

(4,381

)

 

 

(11,329

)

Loans in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

 

Nine Months Ended December 31, 2018

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loans in process of foreclosure – beginning balance (1)

 

$

1,369

 

 

$

51,479

 

 

$

52,848

 

Transfer from loans, net

 

 

9,289

 

 

 

25,369

 

 

 

34,658

 

Sales

 

 

(451

)

 

 

(2,533

)

 

 

(2,984

)

Cash payments received

 

 

(4,354

)

 

 

(4,337

)

 

 

(8,691

)

Collateral valuation adjustments

 

 

(4,350

)

 

 

(4,122

)

 

 

(8,472

)

Deconsolidation of Trust III

 

 

—

 

 

 

(17,864

)

 

 

(17,864

)

Loans in process of foreclosure – December 31, 2018

 

$

1,503

 

 

$

47,992

 

 

$

49,495

 

 

(1)

Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.

v3.20.1
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Schedule Of Investments [Abstract]  
Schedule of Unrealized Appreciation (Depreciation) on Investments

 

(Dollars in thousands)

 

Medallion

Loans

 

 

Commercial

Loans

 

 

Investments

in

Subsidiaries

 

 

Equity

Investments

 

 

Investments

Other Than

Securities

 

 

Total

 

Balance December 31, 2016

 

$

(28,523

)

 

$

(1,378

)

 

$

152,750

 

 

$

3,934

 

 

$

584

 

 

$

127,367

 

Net change in unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appreciation on investments

 

 

—

 

 

 

—

 

 

 

6,170

 

 

 

2,060

 

 

 

(821

)

 

 

7,409

 

Depreciation on investments

 

 

(37,335

)

 

 

(410

)

 

 

—

 

 

 

(277

)

 

 

(1,253

)

 

 

(39,275

)

Reversal of unrealized appreciation

   (depreciation) related to realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,082

)

 

 

—

 

 

 

(3,082

)

Losses on investments

 

 

45,520

 

 

 

1,275

 

 

 

—

 

 

 

486

 

 

 

—

 

 

 

47,281

 

Balance December 31, 2017

 

 

(20,338

)

 

 

(513

)

 

 

158,920

 

 

 

3,121

 

 

 

(1,490

)

 

 

139,700

 

Net change in unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appreciation on investments

 

 

—

 

 

 

—

 

 

 

38,795

 

 

 

(998

)

 

 

—

 

 

 

37,797

 

Depreciation on investments

 

 

(38,170

)

 

 

18

 

 

 

—

 

 

 

—

 

 

 

(1,915

)

 

 

(40,067

)

Reversal of unrealized appreciation

   (depreciation) related to realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Losses on investments

 

 

34,747

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34,747

 

Balance March 31, 2018

 

$

(23,761

)

 

$

(495

)

 

$

197,715

 

 

$

2,123

 

 

$

(3,405

)

 

$

172,177

 

 
Schedule of Pre-Tax Changes in Unrealized and Realized Gains and Losses in Investment Portfolio

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Three Months Ended

March 31, 2018

 

 

Year Ended December 31, 2017

 

Net change in unrealized appreciation

   (depreciation) on investments

 

 

 

 

 

 

 

 

Unrealized appreciation

 

$

(998

)

 

$

2,060

 

Unrealized depreciation

 

 

(38,152

)

 

 

(38,022

)

Net unrealized appreciation on investments in

   Medallion Bank and other controlled subsidiaries

 

 

29,115

 

 

 

9,483

 

Realized gains

 

 

—

 

 

 

(3,082

)

Realized losses

 

 

34,747

 

 

 

47,281

 

Net unrealized losses on investments other than

   securities and other assets

 

 

(1,915

)

 

 

(2,075

)

Total

 

$

22,797

 

 

$

15,645

 

Net realized gains (losses) on investments

 

 

 

 

 

 

 

 

Realized gains

 

$

—

 

 

$

3,082

 

Realized losses

 

 

(34,747

)

 

 

(47,281

)

Other gains

 

 

—

 

 

 

4,684

 

Direct charge-offs

 

 

2

 

 

 

(4,229

)

Total

 

$

(34,745

)

 

$

(43,744

)

 
v3.20.1
Investments in Medallion Bank and Other Controlled Subsidiaries (Tables)
 12 Months Ended
Dec. 31, 2019
Text Block [Abstract]  
Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries

The following table presents information derived from the Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the year ended December 31, 2017.

 

(Dollars in thousands)

 

2017

 

Statement of comprehensive income

 

 

 

 

Investment income

 

$

111,281

 

Interest expense

 

 

13,869

 

Net interest income

 

 

97,412

 

Noninterest income

 

 

121

 

Operating expenses (1)

 

 

26,032

 

Net investment income before income taxes

 

 

71,501

 

Income tax provision

 

 

15,093

 

Net investment income after income taxes

 

 

56,408

 

Net realized/unrealized losses of Medallion Bank (1)

 

 

(51,696

)

Net increase in net assets resulting from operations of

   Medallion Bank

 

 

4,712

 

Unrealized appreciation on Medallion Bank (2)

 

 

5,482

 

Net realized/unrealized losses on controlled

   subsidiaries other than Medallion Bank

 

 

(711

)

Net increase in net assets resulting from operations of

   Medallion Bank and other controlled subsidiaries

 

$

9,483

 

 

(1)

Excluded from operating expenses and included in net realized/unrealized losses of the Bank were $1,476 of unrealized losses on other assets for 2017.

(2)

Unrealized appreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of the Bank.

 
v3.20.1
Funds Borrowed (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The outstanding balances of funds borrowed were as follows.

 

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

December 31, 2019(1)

 

 

December 31, 2018

 

 

Interest

Rate (2)

 

Deposits

 

$

312,993

 

 

$

223,865

 

 

$

211,605

 

 

$

118,740

 

 

$

87,042

 

 

$

—

 

 

$

954,245

 

 

$

848,040

 

 

 

2.35

%

SBA debentures and

   borrowings

 

 

20,746

 

 

 

8,500

 

 

 

—

 

 

 

5,000

 

 

 

5,000

 

 

 

32,500

 

 

 

71,746

 

 

 

80,099

 

 

 

3.42

 

Retail and privately placed

   notes (3)

 

 

—

 

 

 

33,625

 

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

69,625

 

 

 

33,625

 

 

 

8.61

 

Notes payable to banks

 

 

9,683

 

 

 

22,940

 

 

 

280

 

 

 

280

 

 

 

—

 

 

 

—

 

 

 

33,183

 

 

 

59,615

 

 

 

4.11

 

Preferred securities (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

4.01

 

Other borrowings

 

 

7,794

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,794

 

 

 

7,649

 

 

 

2.00

 

Total

 

$

351,216

 

 

$

288,930

 

 

$

211,885

 

 

$

124,020

 

 

$

128,042

 

 

$

65,500

 

 

$

1,169,593

 

 

$

1,062,028

 

 

 

 

 

 

(1)

Excludes deferred financing costs of $5,105.

(2)

Weighted average contractual rate as of December 31, 2019.

(3)

Relates to loans held at Medallion Financial Corp. (parent company only).

Summary of Time Deposits on Basis of Their Maturity The table presents time deposits of $100,000 or more by their maturity as of December 31, 2019.

 

(Dollars in  thousands)

 

December 31, 2019

 

Three months or less

 

$

83,100

 

Over three months through six months

 

 

111,413

 

Over six months through one year

 

 

118,480

 

Over one year

 

 

641,252

 

Total deposits

 

$

954,245

 

 
Summary of Key Attributes of Various Borrowing Arrangements with Lenders

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2019.

 

(Dollars in thousands)

Borrower

 

# of

Lenders/

Notes

 

Note

Dates

 

Maturity

Dates

 

Type

 

Note

Amounts

 

 

Balance

Outstanding at

December 31,

2019

 

 

Payment

 

Average

Interest

Rate at

December 31,

2019

 

 

Interest Rate

Index(1)

Medallion

  Financial Corp.

 

5/5

 

4/11 - 8/14

 

9/20 - 3/21

 

Term loans and demand notes secured by pledged loans (2)

 

$

21,135

 

(2)

$

21,135

 

 

Interest only(3)

 

 

4.43

%

 

Various(3)

Medallion

   Chicago

 

2/23

 

11/11 - 12/11

 

2/21

 

Term loans secured by owned Chicago taxi medallions (4)

 

 

18,449

 

 

 

10,928

 

 

$134 of principal & interest paid monthly

 

 

3.50

%

 

N/A

Medallion

   Funding

 

1/1

 

11/18

 

12/23

 

 

 

 

1,400

 

 

 

1,120

 

 

$70 principal & interest paid quarterly

 

 

4.00

%

 

N/A

 

 

 

 

 

 

 

 

 

 

$

40,984

 

 

$

33,183

 

 

 

 

 

 

 

 

 

 

(1)

At December 31, 2019, 30 day LIBOR was 1.76%, 360 day LIBOR was 2.00%, and the prime rate was 4.75%.

(2)

One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.

(3)

Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $81.

(4)

Guaranteed by the Company.

v3.20.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the twelve months ended December 31, 2019.

 

(Dollars in  thousands)

 

 

 

 

Operating lease costs

 

$

2,184

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

Operating cash flows from operating leases

 

 

2,419

 

Right-of-use asset obtained in exchange for lease liability

 

 

2,413

 
Schedule of Breakout of Operating leases The following table presents the breakout of the operating leases as of December 31, 2019.

(Dollars in  thousands)

 

December 31, 2019

 

Operating lease right-of-use assets

 

$

13,482

 

Other current liabilities

 

 

2,085

 

Operating lease liabilities

 

 

12,738

 

Total operating lease liabilities

 

 

14,823

 

Weighted average remaining lease term

 

7.3 years

 

Weighted average discount rate

 

 

5.54

%

 
Schedule of Maturities of the Lease Liabilities At December 31, 2019, maturities of the lease liabilities were as follows.

 

(Dollars in  thousands)

 

 

 

 

2020

 

$

2,570

 

2021

 

 

2,473

 

2022

 

 

2,411

 

2023

 

 

2,356

 

2024

 

 

2,373

 

Thereafter

 

 

5,962

 

Total lease payments

 

 

18,145

 

Less imputed interest

 

 

3,322

 

Total operating lease liabilities

 

$

14,823

 
v3.20.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of December 31, 2019 and 2018.

 

(Dollars in thousands)

 

2019

 

 

2018

 

Goodwill and other intangibles

 

$

(45,595

)

 

$

(45,272

)

Provision for loan losses

 

 

19,198

 

 

 

25,790

 

Net operating loss carryforwards (1)

 

 

22,607

 

 

 

11,132

 

Accrued expenses, compensation, and other assets

 

 

1,701

 

 

 

1,844

 

Unrealized gains on other investments

 

 

(6,790

)

 

 

(2,024

)

Total deferred tax liability

 

 

(8,879

)

 

 

(8,530

)

Valuation allowance

 

 

(462

)

 

 

(255

)

Deferred tax liability, net

 

 

(9,341

)

 

 

(8,785

)

Taxes receivable

 

 

1,516

 

 

 

1,812

 

Net deferred and other tax liabilities

 

$

(7,825

)

 

$

(6,973

)

 

(1)

As of December 31, 2019, the Company and its subsidiaries had an estimated $89,687 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $22,145 as of December 31, 2019.

Schedule of Components of Tax (Provision) Benefit

The components of our tax (provision) benefit for the years ended December 31, 2019, 2018, and 2017 were as follows.

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2017

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

—

 

 

$

(2,797

)

 

$

15,613

 

State

 

 

519

 

 

 

(1,078

)

 

 

756

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(489

)

 

 

5,270

 

 

 

(4,169

)

Federal income tax rate change

 

 

—

 

 

 

—

 

 

 

17,279

 

State

 

 

(371

)

 

 

(1,464

)

 

 

6,747

 

Net (provision) benefit for income taxes

 

$

(341

)

 

$

(69

)

 

$

36,226

 
Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2019, 2018, and 2017.

 

(Dollars in thousands)

 

2019

 

 

2018

 

 

2017

 

Statutory Federal income tax (provision) benefit at 21% (35% in 2017)

 

$

(642

)

 

$

4,935

 

 

$

12,582

 

State and local income taxes, net of federal income

   tax benefit

 

 

(120

)

 

 

440

 

 

 

645

 

Revaluation of net operating losses

 

 

380

 

 

 

—

 

 

 

—

 

Change in effective state income tax rate

 

 

(891

)

 

 

(2,564

)

 

 

3,232

 

Change in state income tax accruals

 

 

640

 

 

 

—

 

 

 

—

 

Federal income tax rate change

 

 

—

 

 

 

—

 

 

 

17,279

 

Income attributable to non-controlling interest

 

 

309

 

 

 

—

 

 

 

—

 

Utilization of carry forwards

 

 

—

 

 

 

(910

)

 

 

2,284

 

Appreciation of Medallion Bank

 

 

—

 

 

 

(1,974

)

 

 

1,050

 

Other

 

 

(17

)

 

 

4

 

 

 

(846

)

Total income tax (provision) benefit

 

$

(341

)

 

$

(69

)

 

$

36,226

 
v3.20.1
Stock Options and Restricted Stock (Tables)
 12 Months Ended
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Assumption Categories Used to Determine Value of Option Grants The following assumption categories are used to determine the value of any option grants.

 

 

 

Year ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Risk free interest rate

 

 

2.29

%

 

 

2.82

%

 

 

1.84

%

Expected dividend yield

 

 

0.66

 

 

 

4.86

 

 

 

7.39

 

Expected life of option in years (1)

 

 

6.25

 

 

 

6.00

 

 

 

6.00

 

Expected volatility (2)

 

 

49.03

%

 

 

30.00

%

 

 

30.00

%

 

(1)

Expected life is calculated using the simplified method.

(2)

We determine our expected volatility based on our historical volatility.

Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the years ended December 31, 2019, 2018, and 2017.

 

 

 

Number of

Options

 

 

Exercise

Price Per

Share

 

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2016

 

 

345,518

 

 

$7.10-13.84

 

 

$

9.67

 

Granted

 

 

29,666

 

 

2.14-2.61

 

 

 

2.35

 

Cancelled

 

 

(54,558

)

 

10.76-11.21

 

 

 

10.94

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2017

 

 

320,626

 

 

2.14-13.84

 

 

 

8.78

 

Granted

 

 

39,000

 

 

5.27-5.58

 

 

 

5.46

 

Cancelled

 

 

(214,960

)

 

9.22-9.24

 

 

 

9.22

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2018

 

 

144,666

 

 

2.14-13.84

 

 

 

7.23

 

Granted

 

 

449,450

 

 

5.21-7.25

 

 

 

6.61

 

Cancelled

 

 

(44,076

)

 

6.55-13.84

 

 

 

9.00

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019 (2)

 

 

550,040

 

 

$2.14-13.53

 

 

$

6.58

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

273,960

 

 

7.10-13.84

 

 

 

9.50

 

December 31, 2018

 

 

81,889

 

 

2.14-13.84

 

 

 

9.25

 

December 31, 2019 (2)

 

 

62,778

 

 

$2.14-13.53

 

 

$

7.60

 

 

(1)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2019, 2018, and 2017.

(2)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2019 and the related exercise price of the underlying options, was $512,000 for outstanding options and $111,000 for exercisable options as of December 31, 2019. The remaining contractual life was 8.87 years for outstanding options and 5.95 years for exercisable options at December 31, 2019.

Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the years ended December 31, 2019, 2018, and 2017.

 

 

 

Number of

Shares

 

 

Grant

Price Per

Share

 

Weighted

Average

Grant Price

 

Outstanding at December 31, 2016

 

 

167,703

 

 

$ 3.95-13.46

 

$

8.88

 

Granted

 

 

327,251

 

 

2.06-3.93

 

 

2.48

 

Cancelled

 

 

(8,988

)

 

2.14-10.08

 

 

3.07

 

Vested (1)

 

 

(77,384

)

 

9.08-13.46

 

 

11.09

 

Outstanding at December 31, 2017

 

 

408,582

 

 

2.06-10.38

 

 

3.45

 

Granted

 

 

101,010

 

 

3.93-5.27

 

 

4.41

 

Cancelled

 

 

(9,737

)

 

3.93-9.08

 

 

4.66

 

Vested (1)

 

 

(308,940

)

 

2.06-10.38

 

 

3.35

 

Outstanding at December 31, 2018

 

 

190,915

 

 

2.14-5.27

 

 

4.06

 

Granted

 

 

216,148

 

 

4.80-7.25

 

 

6.59

 

Cancelled

 

 

(3,946

)

 

3.93-6.55

 

 

4.97

 

Vested (1)

 

 

(118,238

)

 

2.06-4.80

 

 

3.89

 

Outstanding at December 31, 2019 (2)

 

 

284,879

 

 

$3.95-7.25

 

$

6.01

 

 

(1)

The aggregate fair value of the restricted stock vested was $736,000, $1,270,000, and $169,000 for 2019, 2018, and 2017.

(2)

The aggregate fair value of the restricted stock was $2,071,000 as of December 31, 2019. The remaining vesting period was 3.07 years at December 31, 2019.

Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2019.

 

 

 

Number of

Options

 

 

Exercise Price

Per Share

 

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2018

 

 

62,777

 

 

$2.14-7.10

 

 

$

4.59

 

Granted

 

 

449,450

 

 

5.21-7.25

 

 

 

6.61

 

Cancelled

 

 

(3,076

)

 

 

6.55

 

 

 

6.55

 

Vested

 

 

(21,889

)

 

2.14-7.10

 

 

 

4.40

 

Outstanding at December 31, 2019

 

 

487,262

 

 

$2.14-7.25

 

 

$

6.45

 

 
v3.20.1
Quarterly Results of Operations (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Results of Operations

The following table presents the Company’s quarterly results of operations for the years ended December 31, 2019, 2018, and 2017.

 

(Dollars in thousands, except per share data)

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

2019 Quarter Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

22,321

 

 

$

23,194

 

 

$

25,415

 

 

$

26,587

 

Income (loss) before income taxes

 

 

1,139

 

 

 

(8,478

)

 

 

7,600

 

 

 

2,076

 

Net income (loss) after taxes

 

 

1,395

 

 

 

(6,643

)

 

 

7,435

 

 

 

(191

)

Net income (loss) attributable to Medallion Financial

   Corp.

 

 

1,228

 

 

 

(7,500

)

 

 

4,975

 

 

 

(465

)

Basic net income (loss) per share

 

 

0.05

 

 

 

(0.31

)

 

 

0.20

 

 

 

(0.02

)

Diluted net income (loss) per share

 

 

0.05

 

 

 

(0.31

)

 

 

0.20

 

 

 

(0.02

)

2018 Quarter Ended (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/net investment income

 

$

482

 

 

$

24,719

 

 

$

24,265

 

 

$

23,003

 

Income (loss) before income taxes/net investment loss

   before taxes

 

 

(3,566

)

 

 

(17,905

)

 

 

(3,963

)

 

 

14,712

 

Net income (loss) after taxes/net decrease on net assets

   resulting from operations

 

 

(14,874

)

 

 

(13,884

)

 

 

(3,846

)

 

 

9,865

 

Net income (loss) attributable to Medallion Financial

   Corp./net decrease in net assets resulting from operations

 

 

(14,874

)

 

 

(14,647

)

 

 

(4,697

)

 

 

9,172

 

Basic net income (loss) per share

 

 

(0.62

)

 

 

(0.60

)

 

 

(0.19

)

 

 

0.38

 

Diluted net income (loss) per share

 

 

(0.62

)

 

 

(0.60

)

 

 

(0.19

)

 

 

0.38

 

2017 Quarter Ended (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

$

4,250

 

 

$

3,787

 

 

$

5,567

 

 

$

6,020

 

Net investment loss after income taxes

 

 

(435

)

 

 

(1,293

)

 

 

(2,490

)

 

 

(2,903

)

Net increase (decrease) in net assets resulting from

   operations

 

 

1,111

 

 

 

(4,797

)

 

 

619

 

 

 

3,345

 

Net increase (decrease) in net assets resulting from

   operations per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

0.05

 

 

 

(0.20

)

 

 

0.03

 

 

 

0.14

 

Diluted

 

 

0.05

 

 

 

(0.20

)

 

 

0.03

 

 

 

0.14

 

 

(1)

The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.

v3.20.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Segment Data

The following tables present segment data as of and for the year ended December 31, 2019, and as of and for the nine months ended December 31, 2018.

 

Year Ended December 31, 2019

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

99,463

 

 

$

19,943

 

 

$

7,183

 

 

$

3,665

 

 

$

—

 

 

$

2,308

 

 

$

132,562

 

Total interest expense

 

 

13,304

 

 

 

4,757

 

 

 

2,833

 

 

 

7,962

 

 

 

159

 

 

 

6,030

 

 

 

35,045

 

Net interest income (loss)

 

 

86,159

 

 

 

15,186

 

 

 

4,350

 

 

 

(4,297

)

 

 

(159

)

 

 

(3,722

)

 

 

97,517

 

Provision for loan losses

 

 

28,638

 

 

 

1,598

 

 

 

364

 

 

 

16,331

 

 

 

—

 

 

 

455

 

 

 

47,386

 

Net interest income (loss) after loss

   provision

 

 

57,521

 

 

 

13,588

 

 

 

3,986

 

 

 

(20,628

)

 

 

(159

)

 

 

(4,177

)

 

 

50,131

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,742

 

 

 

—

 

 

 

18,742

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,996

)

 

 

—

 

 

 

(8,996

)

Other income (expense), net

 

 

(23,490

)

 

 

(7,520

)

 

 

(1,149

)

 

 

(10,493

)

 

 

(6,942

)

 

 

(7,946

)

 

 

(57,540

)

Net income (loss) before taxes

 

 

34,031

 

 

 

6,068

 

 

 

2,837

 

 

 

(31,121

)

 

 

2,645

 

 

 

(12,123

)

 

 

2,337

 

Income tax (provision) benefit

 

 

(8,813

)

 

 

(1,572

)

 

 

(684

)

 

 

7,596

 

 

 

(329

)

 

 

3,461

 

 

 

(341

)

Net income (loss) after taxes

 

$

25,218

 

 

$

4,496

 

 

$

2,153

 

 

$

(23,525

)

 

$

2,316

 

 

$

(8,662

)

 

$

1,996

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

695,257

 

 

$

244,716

 

 

$

66,405

 

 

$

105,022

 

 

$

—

 

 

$

3,362

 

 

$

1,114,762

 

Total assets

 

 

707,377

 

 

 

252,704

 

 

 

84,924

 

 

 

217,483

 

 

 

31,538

 

 

 

247,641

 

 

 

1,541,667

 

Total funds borrowed

 

 

563,805

 

 

 

201,605

 

 

 

68,666

 

 

 

176,825

 

 

 

7,794

 

 

 

150,898

 

 

 

1,169,593

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

2.20

%

 

 

2.44

%

 

 

(9.73

%)

 

 

7.28

%

 

 

(3.71

%)

 

 

(0.12

)%

Return on average equity

 

 

17.19

 

 

 

10.22

 

 

 

12.21

 

 

 

(48.49

)

 

 

(96.37

)

 

 

(14.26

)

 

 

(0.59

)

Interest yield

 

 

15.39

 

 

 

9.50

 

 

 

11.39

 

 

 

2.88

 

 

N/A

 

 

N/A

 

 

 

11.75

 

Net interest margin

 

 

13.33

 

 

 

7.24

 

 

 

6.90

 

 

 

(3.38

)

 

N/A

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

2.53

 

 

 

1.05

 

 

 

0.00

 

(1)

 

19.48

 

 

N/A

 

 

N/A

 

 

 

3.97

 

Delinquency status(2)

 

 

0.84

 

 

 

0.07

 

 

 

0.15

 

(1)

 

2.04

 

 

N/A

 

 

N/A

 

 

 

0.76

 

Charge-off ratio

 

 

2.69

 

 

 

0.37

 

 

 

1.30

 

(3)

 

14.68

 

 

N/A

 

 

N/A

 

 

 

3.60

 

 

(1)

Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

(2)

Loans 90 days or more past due.

(3)

Ratio is based on total commercial lending balances, and relates to the total loan business.

Nine Months Ended December 31, 2018

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

68,870

 

 

$

12,799

 

 

$

7,076

 

 

$

6,317

 

 

$

—

 

 

$

1,741

 

 

$

96,803

 

Total interest expense

 

 

6,986

 

 

 

2,290

 

 

 

1,502

 

 

 

10,125

 

 

 

121

 

 

 

3,792

 

 

 

24,816

 

Net interest income (loss)

 

 

61,884

 

 

 

10,509

 

 

 

5,574

 

 

 

(3,808

)

 

 

(121

)

 

 

(2,051

)

 

 

71,987

 

Provision for loan losses

 

 

15,118

 

 

 

2,453

 

 

 

—

 

 

 

41,437

 

 

 

—

 

 

 

—

 

 

 

59,008

 

Net interest income (loss) after loss

   provision

 

 

46,766

 

 

 

8,056

 

 

 

5,574

 

 

 

(45,245

)

 

 

(121

)

 

 

(2,051

)

 

 

12,979

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,368

 

 

 

—

 

 

 

14,368

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,121

)

 

 

—

 

 

 

(7,121

)

Other income (expense), net

 

 

(14,242

)

 

 

(3,093

)

 

 

(1,824

)

 

 

9,742

 

 

 

(11,476

)

 

 

(6,489

)

 

 

(27,382

)

Net income (loss) before taxes

 

 

32,524

 

 

 

4,963

 

 

 

3,750

 

 

 

(35,503

)

 

 

(4,350

)

 

 

(8,540

)

 

 

(7,156

)

Income tax (provision) benefit

 

 

(8,579

)

 

 

(1,319

)

 

 

(862

)

 

 

7,938

 

 

 

1,108

 

 

 

1,005

 

 

 

(709

)

Net income (loss) after taxes

 

$

23,945

 

 

$

3,644

 

 

$

2,888

 

 

$

(27,565

)

 

$

(3,242

)

 

$

(7,535

)

 

$

(7,865

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

580,182

 

 

$

181,359

 

 

$

59,973

 

 

$

155,863

 

 

$

—

 

 

$

4,110

 

 

$

981,487

 

Total assets

 

 

590,746

 

 

 

188,892

 

 

 

93,807

 

 

 

273,501

 

 

 

29,925

 

 

 

204,975

 

 

 

1,381,846

 

Total funds borrowed

 

 

434,527

 

 

 

143,815

 

 

 

53,719

 

 

 

294,465

 

 

 

7,649

 

 

 

127,853

 

 

 

1,062,028

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.48

%

 

 

2.56

%

 

 

4.27

%

 

 

(10.13

)%

 

 

(11.69

)%

 

 

(4.07

)%

 

 

(0.90

)%

Return on average equity

 

 

22.60

 

 

 

11.30

 

 

 

9.43

 

 

NM

 

 

NM

 

 

 

(12.37

)

 

 

(4.62

)

Interest yield

 

 

15.78

 

 

 

9.06

 

 

 

14.25

 

 

 

3.58

 

 

N/A

 

 

N/A

 

 

 

10.98

 

Net interest margin

 

 

14.18

 

 

 

7.44

 

 

 

11.23

 

 

 

(2.16

)

 

N/A

 

 

N/A

 

 

 

8.19

 

Reserve coverage

 

 

1.17

 

 

 

0.98

 

 

 

0.00

 

 

 

15.11

 

 

N/A

 

 

N/A

 

 

 

3.58

 

Delinquency status(2)

 

 

0.73

 

 

 

0.07

 

 

 

0.44

 

(1)

 

9.43

 

 

N/A

 

 

N/A

 

 

 

2.14

 

Charge-off ratio

 

 

1.89

 

 

 

0.46

 

 

 

0.00

 

 

 

7.21

 

 

N/A

 

 

N/A

 

 

 

2.73

 

 

(1)

Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

(2)

Loans 90 days or more past due.
v3.20.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Under Employment Agreements Employment agreements expire at various dates through 2024, which future minimum payments under these agreements of approximately $5,670,000 as follows.

(Dollars in thousands)

 

 

 

 

2020

 

$

2,389

 

2021

 

 

1,654

 

2022

 

 

673

 

2023

 

 

673

 

2024

 

 

281

 

Thereafter

 

 

—

 

Total

 

$

5,670

 

 
v3.20.1
Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Summary of net revenue received

The following table summarizes the net revenues received from the Bank not eliminated under Investment Company Accounting.

 

 

 

Three Months Ended

 

 

Year Ended

 

(Dollars in thousands)

 

March 31, 2018

 

 

December 31, 2017

 

Reimbursement of operating expenses

 

$

250

 

 

$

865

 

Loan origination and servicing fees

 

 

6

 

 

 

5

 

Total other income

 

$

256

 

 

$

870

 
v3.20.1
Other Operating Expenses (Tables)
 12 Months Ended
Dec. 31, 2019
Other Income And Expenses [Abstract]  
Summary of Major Components of Other Expenses

The major components of other expenses were as follows.

 

 

 

Three Months Ended,

 

 

Year Ended,

 

(Dollars in thousands)

 

March 31, 2018

 

 

December 31, 2017

 

Directors’ fees

 

$

89

 

 

$

319

 

Miscellaneous taxes

 

 

120

 

 

 

258

 

Computer expense

 

 

74

 

 

 

244

 

Other expenses

 

 

304

 

 

 

727

 

Total other operating expenses

 

$

587

 

 

$

1,548

 
v3.20.1
Selected Financial Ratios and Other Data (Tables)
 12 Months Ended
Dec. 31, 2019
Investment Company [Abstract]  
Summary of Selected Financial Ratios and Other Data

The following table provides selected financial ratios and other data for the periods indicated.

 

 

 

Three

Months

Ended

March 31,

 

 

Year ended December 31,

 

(Dollars in thousands, except per share data)

 

2018

 

 

2017

 

 

2016

 

 

2015

 

Net share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value at the beginning of the year

 

$

11.80

 

 

$

11.91

 

 

$

11.42

 

 

$

11.16

 

Net investment income (loss)

 

 

(0.15

)

 

 

(0.33

)

 

 

(0.41

)

 

 

0.69

 

Income tax provision (benefit)

 

 

0.03

 

 

 

1.51

 

 

 

(1.90

)

 

 

0.00

 

Net realized gains (losses) on investments

 

 

(1.44

)

 

 

(1.82

)

 

 

0.02

 

 

 

0.31

 

Net change in unrealized appreciation on investments

 

 

0.94

 

 

 

0.65

 

 

 

3.26

 

 

 

0.20

 

Net increase (decrease) in net assets resulting from

   operations

 

 

(0.62

)

 

 

0.01

 

 

 

0.97

 

 

 

1.20

 

Issuance of common stock

 

 

(0.03

)

 

 

(0.12

)

 

 

—

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

—

 

 

 

0.12

 

 

 

0.06

 

Distribution of net investment income

 

 

—

 

 

 

—

 

 

 

(0.60

)

 

 

(0.81

)

Return of capital

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.18

)

Distribution of net realized gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total distributions

 

 

—

 

 

 

—

 

 

 

(0.60

)

 

 

(0.99

)

Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.01

)

Total increase (decrease) in net asset value

 

 

(0.65

)

 

 

(0.11

)

 

 

0.49

 

 

 

0.26

 

Net asset value at the end of the period/year (1)

 

$

11.15

 

 

$

11.80

 

 

$

11.91

 

 

$

11.42

 

Per share market value at beginning of year

 

$

3.53

 

 

$

3.02

 

 

$

7.04

 

 

$

10.01

 

Per share market value at end of period/year

 

 

4.65

 

 

 

3.53

 

 

 

3.02

 

 

 

7.04

 

Total return (2)

 

 

(129

%)

 

 

17

%

 

 

(54

%)

 

 

(22

%)

Ratios/supplemental data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity (net assets)

 

$

272,437

 

 

$

287,159

 

 

$

286,096

 

 

$

278,088

 

Average net assets

 

 

284,021

 

 

 

285,704

 

 

 

276,978

 

 

 

276,745

 

Total expense ratio (3) (4) (5)

 

 

10.02

%

 

 

(3.03

%)

 

 

29.36

%

 

 

9.45

%

Operating expenses to average net assets (4) (5)

 

 

5.87

 

 

 

4.83

 

 

 

8.23

 

 

 

6.04

 

Net investment income (loss) after income taxes to average

   net assets (4) (5)

 

 

(4.61

)

 

 

(2.49

)

 

 

0.04

 

 

 

6.08

 

 

(1)

Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and December 31, 2017, 2016, and 2015, and $0.00 of undistributed net realized gains per share for all periods presented.

(2)

Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.

(3)

Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4)

MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, and $5,658, and operating expenses of $1,150, $4,211, $5,249, and $6,044, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, and 2015. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, and 11.63%, 8.23%, and 5.94% in 2015.

(5)

These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

v3.20.1
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments All Other Investments [Abstract]  
Summary of Carrying Values and Fair Values of Financial Instruments The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

 

December 31, 2019

 

 

December 31, 2018

 

(Dollars in  thousands)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and federal funds sold (1)

 

$

67,821

 

 

$

67,821

 

 

$

57,713

 

 

$

57,713

 

Equity investments

 

 

10,079

 

 

 

10,079

 

 

 

9,197

 

 

 

9,197

 

Investment securities

 

 

48,998

 

 

 

48,998

 

 

 

45,324

 

 

 

45,324

 

Loans receivable

 

 

1,114,762

 

 

 

1,114,762

 

 

 

981,487

 

 

 

981,487

 

Accrued interest receivable (2)

 

 

8,662

 

 

 

8,662

 

 

 

7,413

 

 

 

7,413

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (3)

 

 

1,169,593

 

 

 

1,171,274

 

 

 

1,062,028

 

 

 

1,062,297

 

Accrued interest payable (2)

 

 

4,398

 

 

 

4,398

 

 

 

3,852

 

 

 

3,852

 

 

(1)

Categorized as level 1 within the fair value hierarchy. See Note 20.

(2)

Categorized as level 3 within the fair value hierarchy. See Note 20.

(3)

As of December 31, 2019 and 2018, publicly traded unsecured notes traded at a premium to par of $1,681 and $269.

v3.20.1
Fair Value of Assets and liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

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 December 31, 2019 and 2018.

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,079

 

 

$

10,079

 

Available for sale investment securities (1)

 

 

—

 

 

 

48,998

 

 

 

—

 

 

 

48,998

 

Total

 

$

—

 

 

$

48,998

 

 

$

10,079

 

 

$

59,077

 

 

(1)

Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets.

 

December 31, 2018

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,197

 

 

$

9,197

 

Available for sale investment securities (1)

 

 

—

 

 

 

45,324

 

 

 

—

 

 

 

45,324

 

Total

 

$

—

 

 

$

45,324

 

 

$

9,197

 

 

$

54,521

 

 

(1)

Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the twelve months ended December 31, 2019, and the nine months ended December 31, 2018 under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 under Investment Company Accounting.

 

(Dollars in  thousands)

 

Equity

Investments

 

December 31, 2018

 

$

9,197

 

Gains included in earnings

 

 

87

 

Purchases, investments, and issuances

 

 

3,396

 

Sales, maturities, settlements, and distributions

 

 

(2,601

)

December 31, 2019

 

$

10,079

 

Amounts related to held assets (1)

 

$

(1,734

)

 

(1)

Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2019.

 

(Dollars in  thousands)

 

Equity

Investments

 

March 31, 2018

 

$

9,458

 

Losses included in earnings

 

 

(1,274

)

Purchases, investments, and issuances

 

 

1,232

 

Sales, maturities, settlements, and distributions

 

 

(1,596

)

Transfers in (1)

 

 

1,377

 

December 31, 2018

 

$

9,197

 

Amounts related to held assets (2)

 

$

(1,851

)

 

(1)

Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2)

Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.

 

(Dollars in  thousands)

 

Medallion

Loans

 

 

Commercial

Loans

 

 

Investments in

Medallion

Bank & Other

Controlled

Subsidiaries

 

 

Equity

Investments

 

 

Investments

Other Than

Securities

 

 

Other

Assets

 

December 31, 2017

 

$

208,279

 

 

$

90,188

 

 

$

302,147

 

 

$

9,521

 

 

$

7,450

 

 

$

339

 

Gains (losses) included in earnings

 

 

(38,190

)

 

 

(8

)

 

 

29,143

 

 

 

(993

)

 

 

(1,915

)

 

 

—

 

Purchases, investments, and issuances

 

 

7

 

 

 

7,252

 

 

 

462

 

 

 

935

 

 

 

—

 

 

 

—

 

Sales, maturities, settlements, and distributions

 

 

(8,941

)

 

 

(3,812

)

 

 

(583

)

 

 

(5

)

 

 

—

 

 

 

—

 

March 31, 2018

 

$

161,155

 

 

$

93,620

 

 

$

331,169

 

 

$

9,458

 

 

$

5,535

 

 

$

339

 

Amounts related to held assets (1)

 

$

(38,190

)

 

$

(10

)

 

$

29,143

 

 

$

(993

)

 

$

(1,915

)

 

$

—

 

 

(1)

Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018.

Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2019 and 2018 under Bank Holding Company Accounting.

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

—

 

 

$

—

 

 

$

34,915

 

 

$

34,915

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

52,711

 

 

 

52,711

 

Total

 

$

—

 

 

$

—

 

 

$

87,626

 

 

$

87,626

 

 

December 31, 2018

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

—

 

 

$

—

 

 

$

47,974

 

 

$

47,974

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

49,495

 

 

 

49,495

 

Total

 

$

—

 

 

$

—

 

 

$

97,469

 

 

$

97,469

 
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2019 and 2018 were as follows under Bank Holding Company Accounting.

 

(Dollars in thousands)

 

Fair Value

at 12/31/19

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity investments

 

$

7,435

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,189

 

 

Investee book value adjusted for market appreciation

 

Financial condition and operating performance of the investee

 

N/A

 

 

 

 

 

 

Public company comparables

 

Business enterprise value

 

$4,855 – $6,120

 

 

 

 

 

 

 

 

Business enterprise value/revenue multiples

 

1.59-5.98x

 

 

 

 

 

 

 

 

Discount for lack of marketability

 

25%

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

 

 

(Dollars in thousands)

 

Fair Value

at 12/31/18

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity Investments

 

$

5,683

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,850

 

 

Investee book value adjusted for market appreciation

 

Financial condition and operating performance of the investee

 

N/A

 

 

 

 

 

 

Precedent arm’s length offer

 

Business enterprise value

 

$6,014 – $7,214

 

 

 

 

 

 

 

 

Business enterprise value/revenue multiples

 

0.96x – 4.54x

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

 

 

209

 

 

Investee book value

 

Valuation indicated by investee filings

 

N/A

 
v3.20.1
Parent Company Only Condensed Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheets

The following shows the condensed financial information of Medallion Financial Corp. (parent company only) under Bank Holding Company Accounting.

Condensed Balance Sheets

 

(Dollars in thousands)

 

December 31, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

4,477

 

 

$

1,110

 

Net loans receivable

 

 

26,802

 

 

 

37,737

 

Loans collateral in process of foreclosure

 

 

11,104

 

 

 

12,001

 

Goodwill and intangible assets

 

 

177,176

 

 

 

178,621

 

Investments in bank subsidiaries

 

 

158,201

 

 

 

142,469

 

Investments in non-bank subsidiaries

 

 

92,856

 

 

 

91,059

 

Income tax receivable

 

 

4,708

 

 

 

—

 

Other assets

 

 

14,111

 

 

 

5,776

 

Total assets

 

$

489,435

 

 

$

468,773

 

Liabilities

 

 

 

 

 

 

 

 

Other liabilities

 

$

18,660

 

 

$

9,073

 

Intercompany payables

 

 

54,904

 

 

 

63,352

 

Short-term borrowings

 

 

8,188

 

 

 

38,870

 

Deferred tax liabilities

 

 

30,728

 

 

 

28,245

 

Long-term borrowings

 

 

113,807

 

 

 

66,625

 

Total liabilities

 

 

226,287

 

 

 

206,165

 

Total stockholders’ equity

 

 

263,148

 

 

 

262,608

 

Total liabilities and equity

 

$

489,435

 

 

$

468,773

 
Condensed Statements of Operations

Condensed Statements of Operations

 

(Dollars in thousands)

 

Year Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Interest income

 

$

(2,552

)

 

$

(1,958

)

Interest expense

 

 

8,856

 

 

 

5,480

 

Net interest loss

 

 

(11,408

)

 

 

(7,438

)

Provision for loan losses

 

 

6,377

 

 

 

19,190

 

Net interest loss after provision for loan losses

 

 

(17,785

)

 

 

(26,628

)

Other income (expenses), net

 

 

(13,686

)

 

 

(16,913

)

Loss before income taxes and undistributed earnings of

   subsidiaries

 

 

(31,471

)

 

 

(43,541

)

Income tax benefit

 

 

7,013

 

 

 

5,328

 

Loss before undistributed earnings of subsidiaries

 

 

(24,458

)

 

 

(38,213

)

Undistributed earnings of subsidiaries

 

 

22,696

 

 

 

28,041

 

Net income (loss) attributable to parent company

 

$

(1,762

)

 

$

(10,172

)
Condensed Statements of Other Comprehensive Income (Loss)

Condensed Statements of Other Comprehensive Income (Loss)

 

(Dollars in thousands)

 

Year Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Net income (loss)

 

$

(1,762

)

 

$

(10,172

)

Other comprehensive income (loss)

 

 

1,081

 

 

 

(82

)

Total comprehensive income (loss) attributable to Medallion Financial

 

$

(681

)

 

$

(10,254

)
Condensed Statements of Cash Flow

Condensed Statements of Cash Flow

 

(Dollars in thousands)

 

Year Ended

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

CASH FLOWS FROM OPERATING ACTIVITIES

   Net income (loss)

 

$

(1,762

)

 

$

(10,172

)

Adjustments to reconcile net income (loss) to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Equity in undistributed earnings of subsidiaries

 

 

(22,696

)

 

 

(28,041

)

Provision for loan losses

 

 

6,377

 

 

 

19,190

 

Depreciation and amortization

 

 

5,484

 

 

 

5,451

 

Change in deferred and other tax assets/liabilities, net

 

 

(2,225

)

 

 

4,512

 

Proceeds from sales of loan collateral in process of foreclosure

 

 

2,403

 

 

 

487

 

Net change in loan collateral in process of foreclosure

 

 

906

 

 

 

678

 

Net change in unrealized depreciation on investments

 

 

1,786

 

 

 

—

 

Stock-based compensation expense

 

 

1,221

 

 

 

425

 

Decrease in other assets

 

 

988

 

 

 

4,073

 

Increase in deferred financing costs

 

 

(1,297

)

 

 

—

 

Decrease in intercompany payables

 

 

(8,448

)

 

 

(3,368

)

Increase in other liabilities

 

 

(1,759

)

 

 

4,237

 

Net cash used by operating activities

 

 

(19,022

)

 

 

(2,528

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Loans originated

 

 

(3,312

)

 

 

(309

)

Proceeds from principal receipts, sales, and maturities

   of loans and investments

 

 

2,313

 

 

 

10,900

 

Purchases of investments

 

 

(1,125

)

 

 

—

 

Dividends from subsidiaries

 

 

6,248

 

 

 

5,200

 

Net cash provided by investing activities

 

 

4,124

 

 

 

15,791

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

36,000

 

 

 

—

 

Repayments of funds borrowed

 

 

(17,735

)

 

 

(17,208

)

Net cash provided by (used for) financing activities

 

 

18,265

 

 

 

(17,208

)

NET INCREASE (DECREASE) IN CASH AND

   CASH EQUIVALENTS

 

 

3,367

 

 

 

(3,945

)

Cash and cash equivalents, beginning of period

 

 

1,110

 

 

 

5,055

 

Cash and cash equivalents, end of period

 

$

4,477

 

 

$

1,110

 
v3.20.1
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2019
USD ($)
Medallion
Dec. 31, 2018
USD ($)
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 $ 3,091,000 $ 4,305,000
Medallion Financing Trust I [Member]    
Subsidiary or Equity Method Investee [Line Items]    
Aggregate assets of trust $ 36,083,000  
v3.20.1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Apr. 02, 2018
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Aug. 31, 2019
Mar. 31, 2019
Dec. 31, 2016
Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Non-marketable securities     $ 9,197,000 $ 10,079,000 $ 9,197,000          
Net premium on investment securities [1]         3,287,000          
Investment securities Amortized to interest income   $ 21,000 80,000 79,000   $ 81,000        
Net loan origination costs       17,839,000 14,416,000          
Net amortization to income       4,952,000 3,128,000 68,000        
Premiums in loan portfolio     59,894,000 $ 60,413,000 59,894,000          
Percentage of write down of loan balance       40.00%            
Loans pledged as collateral     40,500,000 $ 28,833,000 40,500,000          
Principal portion of loans serviced, fair value     140,180,000 113,581,000 140,180,000          
Reserves against future losses       $ 2,230,000            
Bank's reserves against future losses $ 17,351,000                  
Intangible assets useful life       20 years            
Goodwill     150,803,000 $ 150,803,000 150,803,000          
Intangible assets, net     53,982,000 52,536,000 53,982,000          
Amortization of intangible assets       1,446,000 1,083,000 [1]          
Financing receivable, recorded investment, 90 days past due and still accruing     0 0 0          
Depreciation and amortization       418,000 422,000 94,000        
Amortization expense       2,348,000 1,864,000 $ 925,000        
Deferred costs     $ 4,461,000 $ 5,105,000 $ 4,461,000          
Potential dilutive common shares excluded from EPS computation       462,180 100,000 366,245        
Stock based compensation award       449,450 39,000 29,666        
Stock based compensation award, Amount       $ 1,221,000 $ 576,000 $ 785,000        
Stock based compensation award per diluted common share       $ 0.05 $ 0.02 $ 0.03        
Unrecognized compensation cost related to unvested stock options and restricted stock       $ 1,797,000            
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period       51 months            
Tier 1 leverage capital ratio       19.35%            
Capital conversation buffer       2.50% 2.50%          
Minimum risk-based ratios     75.00%   75.00%          
Restricted Shares [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Stock based compensation award       216,148 101,010 327,251        
Restricted Stock Units [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Stock based compensation award       26,040 0 0        
Minimum [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Estimated useful life of fixed assets       3 years            
Tier 1 leverage capital to total assets ratio       15.00%            
Maximum [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Estimated useful life of fixed assets       10 years            
91+ [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Premiums in loan portfolio     $ 21,225,000 $ 8,663,000 $ 21,225,000          
91+ [Member] | Loans [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Premiums in loan portfolio     $ 21,225,000 $ 8,663,000 $ 21,225,000          
Total loans more than 90 days past due ,percentage     2.14% 0.76% 2.14%          
Medallion Bank [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Appreciation in Investment in Medallion Bank   $ 39,826,000       $ 7,849,000     $ 128,918,000 $ 15,500,000
Net amortization to income         $ 3,993,000 3,581,000        
Reserves against future losses       $ 3,173,000            
Amortization of intangible assets       0 0          
Depreciation and amortization       232,000 232,000 232,000        
Amortization expense       2,255,000 2,255,000 $ 2,255,000        
RPAC [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Premiums in loan portfolio $ 12,387,000                  
Amortization of intangible assets       5,615,000            
Financing receivable, recorded investment, 90 days past due and still accruing     $ 9,048,000 5,758,000 9,048,000          
Loan portfolio premium amortized to interest income       3,289,000 3,339,000          
Bank Holding Company Accounting [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Net premium on investment securities       $ 248,000 $ 154,000          
Private Placement [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Interest reserve             $ 2,970,000 $ 2,970,000    
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Investments In Loans [Line Items]    
Intangibles assets $ 52,536 $ 53,982
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 20,075 21,176
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets 6,296 6,641
Race Organization [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 26,165 $ 26,165
v3.20.1
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
 [2]
Sep. 30, 2018
 [2]
Jun. 30, 2018
 [2]
Mar. 31, 2018
 [2]
Dec. 31, 2017
 [2]
Sep. 30, 2017
 [2]
Jun. 30, 2017
 [2]
Mar. 31, 2017
 [2]
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accounting Policies [Abstract]                              
Net income (loss)/net increase in net assets resulting from operations available to common stockholders                         $ (1,762) $ (25,046) $ 278
Weighted average common shares outstanding applicable to basic EPS                         24,342,979 24,214,978 [1] 23,919,994
Effect of dilutive stock options                             439
Effect of restricted stock grants                             132,874
Adjusted weighted average common shares outstanding applicable to diluted EPS                         24,342,979 24,214,978 [1] 24,053,307
Basic income (loss) per share $ (0.02) $ 0.20 $ (0.31) $ 0.05 $ 0.38 $ (0.19) $ (0.60) $ (0.62) $ 0.14 $ 0.03 $ (0.20) $ 0.05 $ (0.07) $ (1.03) [1] $ 0.01
Diluted income (loss) per share $ (0.02) $ 0.20 $ (0.31) $ 0.05 $ 0.38 $ (0.19) $ (0.60) $ (0.62) $ 0.14 $ 0.03 $ (0.20) $ 0.05 $ (0.07) $ (1.03) [1] $ 0.01
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
v3.20.1
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]    
Regulatory, Minimum, Common Equity tier 1 capital $ 0  
Regulatory, Minimum, Tier 1 capital 0  
Regulatory, Minimum, Total capital 0  
Regulatory, Minimum, Average assets 0  
Regulatory, Minimum, Risk-weighted assets $ 0  
Regulatory, Minimum, Leverage ratio 4.00%  
Regulatory, Minimum, Common Equity tier 1 capital ratio 7.00%  
Regulatory, Minimum, Tier 1 capital ratio 8.50%  
Regulatory, Minimum, Total capital ratio 10.50%  
Regulatory, Well-Capitalized, Common Equity tier 1 capital $ 0  
Regulatory, Well-Capitalized, Tier 1 capital 0  
Regulatory, Well-Capitalized, Total capital 0  
Regulatory, Well-Capitalized, Average assets 0  
Regulatory, Well-Capitalized, Risk-weighted assets $ 0  
Regulatory, Well-Capitalized, Leverage ratio 5.00%  
Regulatory, Well-Capitalized, Common Equity tier 1 capital ratio 6.50%  
Regulatory, Well-Capitalized, Tier 1 capital ratio 8.00%  
Regulatory, Well-Capitalized, Total capital ratio 10.00%  
Common Equity Tier 1 capital $ 158,187 $ 141,608
Tier 1 capital 226,975 167,911
Total capital 241,842 180,917
Average assets 1,172,866 1,059,461
Risk-weighted assets $ 1,144,337 $ 993,374
Leverage ratio 19.40% 15.80%
Common Equity Tier 1 capital ratio 13.80% 14.30%
Tier 1 capital ratio 19.80% 16.90%
Total capital ratio 21.10% 18.20%
v3.20.1
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 48,614 $ 46,423
Gross Unrealized Gains 597 50
Gross Unrealized Losses (213) (1,149)
Fair Value 48,998 45,324
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 36,335 32,184
Gross Unrealized Gains 411 15
Gross Unrealized Losses (112) (742)
Fair Value 36,634 31,457
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 12,279 14,239
Gross Unrealized Gains 186 35
Gross Unrealized Losses (101) (407)
Fair Value $ 12,364 $ 13,867
v3.20.1
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 2,035  
Amortized Cost, due after one year through five years 10,254  
Amortized Cost, due after five years through ten years 10,052  
Amortized Cost, due after ten years 26,273  
Amortized Cost 48,614 $ 46,423
Market Value, due in one year or less 2,029  
Market Value, due after one year through five years 10,281  
Market Value, due after five years through ten years 10,101  
Market Value, due after ten years 26,587  
Market Value, total $ 48,998  
v3.20.1
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (91) $ (132)
Fair Value, Less than Twelve Months 10,390 10,045
Gross Unrealized Losses, Twelve Months and Over (122) (1,017)
Fair Value, Twelve Months and Over 7,678 31,130
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (74) (54)
Fair Value, Less than Twelve Months 8,291 4,616
Gross Unrealized Losses, Twelve Months and Over (38) (688)
Fair Value, Twelve Months and Over 4,939 24,871
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (17) (78)
Fair Value, Less than Twelve Months 2,099 5,429
Gross Unrealized Losses, Twelve Months and Over (84) (329)
Fair Value, Twelve Months and Over $ 2,739 $ 6,259
v3.20.1
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 1,136,694 [1] $ 993,788 [2]
Allowance for loan losses [3] (46,093) (36,395)
Net loans receivable 1,114,762 981,487
Bank Holding Company Accounting [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans 1,160,855 1,017,882
Allowance for loan losses (46,093) (36,395)
Net loans receivable $ 1,114,762 $ 981,487
Percentage of total gross loans 100.00% 100.00%
Recreation [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 689,810 [1] $ 567,209 [2]
Allowance for loan losses (18,075) (6,856)
Recreation [Member] | Bank Holding Company Accounting [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 713,332 $ 587,038
Percentage of total gross loans 62.00% 58.00%
Home Improvement [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 250,830 [1] $ 185,661 [2]
Allowance for loan losses (2,608) (1,796)
Home Improvement [Member] | Bank Holding Company Accounting [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 247,324 $ 183,155
Percentage of total gross loans 21.00% 18.00%
Commercial [Member] | Bank Holding Company Accounting [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 69,767 $ 64,083
Percentage of total gross loans 6.00% 6.00%
Medallion [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 126,287 [1] $ 176,835 [2]
Allowance for loan losses (25,410) (27,743)
Medallion [Member] | Bank Holding Company Accounting [Member]    
Student Loan Portfolio By Program [Line Items]    
Total gross loans $ 130,432 $ 183,606
Percentage of total gross loans 11.00% 18.00%
[1] Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.
[2] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.
[3] Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.
v3.20.1
Loans and Allowance for Loan Losses - Components of Changes in Gross Loans (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1]   $ 993,788  
Charge-offs, net [2] $ (22,613) (37,688)  
Transfer to loans in process of foreclosure, net (34,658) (31,348)  
Amortization of origination costs   (4,952) $ (3,132) [3]
Paid-in-kind interest   834 1,869 [3]
Gross loans, ending balance 993,788 [1] 1,136,694 [4] 993,788 [1]
Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1]   567,209  
Transfer to loans in process of foreclosure, net (9,289) (14,512)  
Gross loans, ending balance 567,209 [1] 689,810 [4] 567,209 [1]
Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1]   185,661  
Gross loans, ending balance 185,661 [1] 250,830 [4] 185,661 [1]
Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1]   176,835  
Transfer to loans in process of foreclosure, net (25,369) (16,836)  
Gross loans, ending balance 176,835 [1] 126,287 [4] 176,835 [1]
Bank Holding Company Accounting [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance   1,017,882  
Loan originations   462,093  
Principal payments   (251,653)  
Charge-offs, net   (37,688)  
Transfer to loans in process of foreclosure, net   (31,348)  
Amortization of origination costs   (4,952)  
Amortization of loan premium   (3,289)  
FASB origination costs   8,976  
Paid-in-kind interest   834  
Gross loans, ending balance 1,017,882 1,160,855 1,017,882
Bank Holding Company Accounting [Member] | Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance   587,038  
Loan originations   301,403  
Principal payments   (146,873)  
Charge-offs, net   (17,419)  
Transfer to loans in process of foreclosure, net   (14,512)  
Amortization of origination costs   (6,428)  
Amortization of loan premium   (247)  
FASB origination costs   10,370  
Gross loans, ending balance 587,038 713,332 587,038
Bank Holding Company Accounting [Member] | Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance   183,155  
Loan originations   142,112  
Principal payments   (76,157)  
Charge-offs, net   (786)  
Amortization of origination costs   1,561  
Amortization of loan premium   (416)  
FASB origination costs   (2,145)  
Gross loans, ending balance 183,155 247,324 183,155
Bank Holding Company Accounting [Member] | Commercial [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance   64,083  
Loan originations   18,578  
Principal payments   (13,553)  
Charge-offs, net   (819)  
Amortization of origination costs   34  
FASB origination costs   610  
Paid-in-kind interest   834  
Gross loans, ending balance 64,083 69,767 64,083
Bank Holding Company Accounting [Member] | Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance   183,606  
Principal payments   (15,070)  
Charge-offs, net   (18,664)  
Transfer to loans in process of foreclosure, net   (16,836)  
Amortization of origination costs   (119)  
Amortization of loan premium   (2,626)  
FASB origination costs   141  
Gross loans, ending balance $ 183,606 $ 130,432 $ 183,606
[1] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.
[2] As of December 31, 2019, cumulative charge-offs of loans and loans in process of foreclosure in the medallion loan portfolio were $241,214, representing collection opportunities for the Company.
[3] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[4] Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses – beginning balance [1]   $ 36,395  
Total charge-offs $ (28,536) (49,961)  
Total recoveries 5,923 12,273  
Net charge-offs [2] (22,613) (37,688)  
Provision for loan losses 59,008 [3] 47,386 $ 59,008 [4]
Allowance for loan losses – ending balance [1] 36,395 46,093 36,395
Recreation [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses – beginning balance   6,856  
Total charge-offs (12,697) (24,433)  
Total recoveries 4,437 7,014  
Allowance for loan losses – ending balance 6,856 18,075 6,856
Home Improvement [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses – beginning balance   1,796  
Total charge-offs (1,562) (2,504)  
Total recoveries 905 1,718  
Allowance for loan losses – ending balance 1,796 2,608 1,796
Commercial [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Total charge-offs   (819)  
Total recoveries 4    
Medallion [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses – beginning balance   27,743  
Total charge-offs (14,277) (22,205)  
Total recoveries 577 3,541  
Allowance for loan losses – ending balance $ 27,743 $ 25,410 $ 27,743
[1] Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.
[2] As of December 31, 2019, cumulative charge-offs of loans and loans in process of foreclosure in the medallion loan portfolio were $241,214, representing collection opportunities for the Company.
[3] Includes $8,161 of reversal of provision for loan losses related to the deconsolidation of Trust III in the 2018 fourth quarter.
[4] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Apr. 02, 2018
Dec. 31, 2018
Dec. 31, 2019
Mar. 31, 2018
 [2]
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loans process of foreclosure   $ 49,495 [1] $ 52,711 [1] $ 52,848
Reserves against future losses     $ 2,230  
Percentage of Allowance   100.00% 100.00%  
Bank reserves against future losses $ 17,351      
Reversal of provision for loan losses related to deconsolidation of Trust III   $ 8,161    
Medallion Bank [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loans process of foreclosure     $ 241,214  
Reserves against future losses     $ 3,173  
Percentage of Allowance     7.00%  
Percentage of total gross loans     2.56%  
Medallion Bank [Member] | Financing Receivables, 90 Days Past Due [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Reserves against future losses     $ 3,173  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $8,163 and $3,134 as of December 31, 2019 and 2018.
[2] Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amount [1] $ 46,093 $ 36,395
Percentage of Allowance 100.00% 100.00%
Allowance as a Percent of Loan Category 3.97% 3.58%
Recreation [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amount $ 18,075 $ 6,856
Percentage of Allowance 39.00% 19.00%
Allowance as a Percent of Loan Category 2.53% 1.17%
Home Improvement [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amount $ 2,608 $ 1,796
Percentage of Allowance 6.00% 5.00%
Allowance as a Percent of Loan Category 1.05% 0.98%
Medallion [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Amount $ 25,410 $ 27,743
Percentage of Allowance 55.00% 76.00%
Allowance as a Percent of Loan Category 19.48% 15.11%
[1] Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
 [1]
Receivables [Abstract]      
Total nonaccrual loans $ 26,484 $ 34,877 $ 98,494
Interest foregone for the year 2,152 1,153 823
Amount of foregone interest applied to principal for the year 254 535 52
Interest foregone life-to-date 2,744 1,952 12,485
Amount of foregone interest applied to principal life-to-date $ 471 $ 1,214 $ 3,495
Percentage of nonaccrual loans to gross loan portfolio 2.00% 3.00% 31.00%
[1] Does not include the Bank’s nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Interest foregone life-to-date $ 2,744 $ 1,952 $ 12,485 [1]
Amount of foregone interest applied to principal life-to-date $ 471 $ 1,214 3,495 [1]
Non Accrual Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Non accrual loans     32,668
Interest collected on nonaccrual loans recorded     795
Interest paid     917
Interest foregone life-to-date     1,487
Amount of foregone interest applied to principal life-to-date     $ 1,221
[1] Does not include the Bank’s nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,160,855 $ 1,017,882
Percentage of Nonperforming to Total 5.38% 4.71%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,098,362 $ 969,908
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans [1] 62,493 47,974
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 713,332 $ 587,038
Percentage of Nonperforming to Total 1.16% 0.99%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 705,070 $ 581,250
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 8,262 5,788
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 247,324 $ 183,155
Percentage of Nonperforming to Total 0.07% 0.07%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 247,139 $ 183,018
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 185 137
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 69,767 $ 64,083
Percentage of Nonperforming to Total 17.00% 5.98%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 57,905 $ 60,249
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 11,862 3,834
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 130,432 $ 183,606
Percentage of Nonperforming to Total 32.34% 20.81%
Medallion [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 88,248 $ 145,391
Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 42,184 $ 38,215
[1] Includes $36,009 and $13,097 of TDRs as of December 31, 2019 and 2018, which are accruing and paying currently, but which are considered nonperforming loans under GAAP.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
TDR loans $ 36,009 $ 13,097
v3.20.1
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance $ 47,974 $ 62,493
Unpaid principal balance, With related allowance 49,188 62,964
Related allowance, With related allowance 29,147 15,156
Average investment recorded, With related allowance 72,253 61,109
Interest income (expense) recognized, With related allowance 1,070 1,209
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 5,788 8,262
Unpaid principal balance, With related allowance 5,788 8,262
Related allowance, With related allowance 204 329
Average investment recorded, With related allowance 6,165 8,317
Interest income (expense) recognized, With related allowance 357 471
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 137 185
Unpaid principal balance, With related allowance 137 185
Related allowance, With related allowance 3 3
Average investment recorded, With related allowance 137 185
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 3,834 11,862
Unpaid principal balance, With related allowance 3,929 11,867
Average investment recorded, With related allowance 6,036 7,886
Interest income (expense) recognized, With related allowance (12) 392
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 38,215 42,184
Unpaid principal balance, With related allowance 39,334 42,650
Related allowance, With related allowance 28,940 14,824
Average investment recorded, With related allowance 59,915 44,721
Interest income (expense) recognized, With related allowance $ 725 $ 346
v3.20.1
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 $ 60,413 $ 59,894
Current 1,076,281 933,894
Total 1,136,694 [1] 993,788 [2]
Accruing 0 0
31-60 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 40,779 29,027
61-90 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 10,971 9,642
91+ [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 8,663 21,225
Recreation [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 41,583 29,915
Current 648,227 537,294
Total 689,810 [1] 567,209 [2]
Accruing 0 0
Recreation [Member] | 31-60 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 27,357 19,584
Recreation [Member] | 61-90 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 8,426 6,198
Recreation [Member] | 91+ [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 5,800 4,133
Home Improvement [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 1,542 1,154
Current 249,288 184,507
Total 250,830 [1] 185,661 [2]
Accruing 0 0
Home Improvement [Member] | 31-60 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 931 723
Home Improvement [Member] | 61-90 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 427 296
Home Improvement [Member] | 91+ [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 184 135
Commercial Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 107 733
Current 69,660 63,350
Total 69,767 [1] 64,083 [2]
Accruing 0 0
Commercial Loans [Member] | 61-90 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59   454
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 107 279
Medallion [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 17,181 28,092
Current 109,106 148,743
Total 126,287 [1] 176,835 [2]
Accruing 0 0
Medallion [Member] | 31-60 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 12,491 8,720
Medallion [Member] | 61-90 [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 2,118 2,694
Medallion [Member] | 91+ [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-59 $ 2,572 $ 16,678
[1] Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.
[2] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Receivables [Abstract]    
Loan premiums $ 5,758 $ 9,047
Capitalized loan origination costs $ 18,403 $ 15,047
v3.20.1
Loans and Allowance for Loan Losses - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2019
USD ($)
TDR
Dec. 31, 2018
USD ($)
TDR
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Weighted average loan-to-value ratio 190.00% 220.00%
Allowance for loan loss [1] $ 46,093,000 $ 36,395,000
Medallion [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of loans modified as TDRs defaulted | TDR 71 11
Allowance for loan loss $ 25,410,000 $ 27,743,000
Recreation [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of loans modified as TDRs defaulted | TDR 294  
Allowance for loan loss $ 18,075,000 $ 6,856,000
Troubled Debt Restructuring Defaulted [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of loans modified as TDRs defaulted | TDR   1
TDR investment value   $ 218,000
Allowance for loan loss   $ 71,000
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of loans modified as TDRs defaulted | TDR 4  
TDR investment value $ 1,023,000  
Allowance for loan loss $ 428,000  
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of loans modified as TDRs defaulted | TDR 213  
TDR investment value $ 1,905,000  
Allowance for loan loss $ 76,000  
[1] Includes $3,173 of a general reserve as of December 31, 2019, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 7% of the total allowance, and 2.56% of the loans in question. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves benefit of $2,230.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
TDR
Dec. 31, 2018
USD ($)
TDR
Recreation [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of Loans | TDR 294  
Pre- Modification Investment $ 4,433  
Post- Modification Investment $ 2,831  
Medallion [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Number of Loans | TDR 71 11
Pre- Modification Investment $ 31,376 $ 5,581
Post- Modification Investment $ 31,385 $ 5,581
v3.20.1
Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]    
Loans in process of foreclosure - beginning balance $ 52,848 [1] $ 49,495 [2]
Transfer from loans, net 34,658 31,348
Sales (2,984) (9,106)
Cash payments received (8,691) (7,697)
Collateral valuation adjustments (8,472) (11,329)
Deconsolidation of Trust III (17,864)  
Loans in process of foreclosure – ending balance [2] 49,495 52,711
Recreation [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans in process of foreclosure - beginning balance 1,369 [1] 1,503
Transfer from loans, net 9,289 14,512
Sales (451) (7,591)
Cash payments received (4,354)  
Collateral valuation adjustments (4,350) (6,948)
Loans in process of foreclosure – ending balance 1,503 1,476
Medallion [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans in process of foreclosure - beginning balance 51,479 [1] 47,992
Transfer from loans, net 25,369 16,836
Sales (2,533) (1,515)
Cash payments received (4,337) (7,697)
Collateral valuation adjustments (4,122) (4,381)
Deconsolidation of Trust III (17,864)  
Loans in process of foreclosure – ending balance $ 47,992 $ 51,235
[1] Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.
[2] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $8,163 and $3,134 as of December 31, 2019 and 2018.
v3.20.1
Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallions Loans (Parenthetical) (Detail) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Apr. 02, 2018
Mar. 31, 2018
 [2]
Loans and Leases Receivable Disclosure [Line Items]        
Loans in process of foreclosure investment $ 52,711,000 [1] $ 49,495,000 [1]   $ 52,848,000
Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans in process of foreclosure investment $ 51,235,000 $ 47,992,000   $ 51,479,000
Bank Holding Company Accounting [Member] | Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans in process of foreclosure investment     $ 31,099,000  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $8,163 and $3,134 as of December 31, 2019 and 2018.
[2] Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.
v3.20.1
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Unrealized Appreciation (Depreciation) on Investments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]    
Beginning balance $ 139,700 $ 127,367
Appreciation on investments 37,797 7,409
Depreciation on investments (40,067) (39,275)
Gains on investments 0 (3,082)
Losses on investments 34,747 47,281
Ending balance 172,177 139,700
Medallion [Member]    
Debt Securities, Available-for-sale [Line Items]    
Beginning balance (20,338) (28,523)
Depreciation on investments (38,170) (37,335)
Gains on investments 0 0
Losses on investments 34,747 45,520
Ending balance (23,761) (20,338)
Commercial Loans [Member]    
Debt Securities, Available-for-sale [Line Items]    
Beginning balance (513) (1,378)
Depreciation on investments 18 (410)
Gains on investments 0 0
Losses on investments   1,275
Ending balance (495) (513)
Investments in Subsidiaries [Member]    
Debt Securities, Available-for-sale [Line Items]    
Beginning balance 158,920 152,750
Appreciation on investments 38,795 6,170
Gains on investments 0 0
Ending balance 197,715 158,920
Equity Investments [Member]    
Debt Securities, Available-for-sale [Line Items]    
Beginning balance 3,121 3,934
Appreciation on investments (998) 2,060
Depreciation on investments   (277)
Gains on investments 0 (3,082)
Losses on investments   486
Ending balance 2,123 3,121
Investments Other than Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Beginning balance (1,490) 584
Appreciation on investments   (821)
Depreciation on investments (1,915) (1,253)
Gains on investments 0 0
Ending balance $ (3,405) $ (1,490)
v3.20.1
Schedule of Pre-Tax Changes in Unrealized and Realized Gains and Losses in Investment Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Net change in unrealized appreciation (depreciation) on investments      
Unrealized appreciation $ 37,797   $ 7,409
Unrealized depreciation 40,067   39,275
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries [1]   $ 29,115  
Net realized gains (losses) on investments      
Total [1],[2]   $ (34,745)  
Investment Company Accounting [Member]      
Net change in unrealized appreciation (depreciation) on investments      
Unrealized appreciation (998)   2,060
Unrealized depreciation (38,152)   (38,022)
Realized gains 0   (3,082)
Realized losses 34,747   47,281
Net unrealized losses on investments other than securities and other assets (1,915)   (2,075)
Total 22,797   15,645
Net realized gains (losses) on investments      
Realized gains 0   3,082
Realized losses (34,747)   (47,281)
Other gains     4,684
Direct charge-offs 2   (4,229)
Total (34,745)   (43,744)
Medallion Financing Trust I [Member] | Investment Company Accounting [Member]      
Net change in unrealized appreciation (depreciation) on investments      
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries $ 29,115   $ 9,483
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018 and 2017.
v3.20.1
Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
 [4]
Sep. 30, 2018
 [4]
Jun. 30, 2018
 [4]
Mar. 31, 2018
Dec. 31, 2017
 [4]
Sep. 30, 2017
 [4]
Jun. 30, 2017
 [4]
Mar. 31, 2017
 [4]
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Debt Securities, Available-for-sale [Line Items]                                    
Investment income [1],[2]                             $ 100,836      
Interest expense                         $ 24,816 $ 35,045 28,367 [1],[3]      
Net interest income/net investment income $ 26,587 $ 25,415 $ 23,194 $ 22,321 $ 23,003 $ 24,265 $ 24,719 $ 482 [4] $ 6,020 $ 5,567 $ 3,787 $ 4,250 71,987 97,517 72,469 [1]      
Noninterest income [1]                             42,006      
Operating expenses               1,150               $ 4,211 $ 5,249 $ 6,044
Income (loss) before income taxes/net investment loss before taxes 2,076 7,600 (8,478) 1,139 14,712 (3,963) (17,905) (3,566) [4] (2,903) (2,490) (1,293) (435) (7,156) 2,337 (10,722) [1],[5]      
Income tax provision                         709 341 69 (36,226)    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations $ (191) $ 7,435 $ (6,643) $ 1,395 $ 9,865 $ (3,846) $ (13,884) $ (14,874) [4] $ 3,345 $ 619 $ (4,797) $ 1,111 $ (7,865) 1,996 (22,739) [1]      
Net realized/unrealized losses of Medallion Bank [1]                             14,675      
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank [1]                             (11,644)      
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries                           $ (1,762) $ (25,046) 278    
Medallion Bank [Member]                                    
Debt Securities, Available-for-sale [Line Items]                                    
Investment income                               111,281    
Interest expense                               13,869    
Net interest income/net investment income                               97,412    
Noninterest income                               121    
Operating expenses [6]                               26,032    
Income (loss) before income taxes/net investment loss before taxes                               71,501    
Income tax provision                               15,093    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                               56,408    
Net realized/unrealized losses of Medallion Bank [6]                               (51,696)    
Unrealized appreciation on Medallion Bank [7]                               5,482    
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank                               (711)    
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries                               9,483    
Medallion Bank [Member] | Medallion Financing Trust I [Member]                                    
Debt Securities, Available-for-sale [Line Items]                                    
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries                               $ 4,712    
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] Included in interest and investment income is $834, $1,869 and $2,268 of paid in kind interest for the years ended December 31, 2019, 2018, and 2017.
[3] Average borrowings outstanding were $1,138,746, $1,198,124, and $334,022, and the related average borrowing costs were 3.08%, 2.37%, and 4.12% for the years ended December 31, 2019, 2018, and 2017.
[4] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[5] Includes $256 and $870 of net revenues received from Medallion Bank for the years ended December 31, 2018 and 2017, primarily for expense reimbursements. See Notes 6 and 14 for additional information.
[6] Excluded from operating expenses and included in net realized/unrealized losses of the Bank were $1,476 of unrealized losses on other assets for 2017
[7] Unrealized appreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of the Bank
v3.20.1
Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries (Parenthetical) (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
USD ($)
Available For Sale Securities [Abstract]  
Unrealized gain (loss) on other assets $ 1,476
v3.20.1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
2020 $ 351,216  
2021 288,930  
2022 211,885  
2023 124,020  
2024 128,042  
Thereafter 65,500  
Long term debt 1,169,593 [1] $ 1,062,028
Funds borrowed   1,062,028
Deposits [Member]    
Debt Instrument [Line Items]    
2020 312,993  
2021 223,865  
2022 211,605  
2023 118,740  
2024 87,042  
Long term debt [1] $ 954,245  
Funds borrowed   848,040
Interest Rate [2] 2.35%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2020 $ 20,746  
2021 8,500  
2023 5,000  
2024 5,000  
Thereafter 32,500  
Long term debt [1] $ 71,746  
Funds borrowed   80,099
Interest Rate [2] 3.42%  
Retail and Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2021 [3] $ 33,625  
2024 [3] 36,000  
Long term debt [1],[3] $ 69,625  
Funds borrowed [3]   33,625
Interest Rate [2],[3] 8.61%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
Thereafter [3] $ 33,000  
Long term debt [1],[3] $ 33,000  
Funds borrowed [3]   33,000
Interest Rate [2],[3] 4.01%  
Other Borrowings [Member]    
Debt Instrument [Line Items]    
2020 $ 7,794  
Long term debt [1] $ 7,794  
Funds borrowed   7,649
Interest Rate [2] 2.00%  
Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
2020 $ 9,683  
2021 22,940  
2022 280  
2023 280  
Long term debt [1] $ 33,183  
Funds borrowed   $ 59,615
Interest Rate [2] 4.11%  
[1] Excludes deferred financing costs of $5,105
[2] Weighted average contractual rate as of December 31, 2019
[3] Relates to loans held at Medallion Financial Corp. (parent company only).
v3.20.1
Funds Borrowed - Additional Information (Detail) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Jul. 06, 2019
Dec. 31, 2007
Jun. 30, 2007
Mar. 31, 2019
Nov. 30, 2018
Apr. 30, 2016
Mar. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Aug. 31, 2019
Dec. 31, 2017
Debt Instrument [Line Items]                      
Deferred costs               $ 5,105,000 $ 4,461,000    
Repayments of credit facilities $ 10,819,000                    
Waiver of loan from lender $ 2,422,000                    
Waiver Expiry Date Apr. 01, 2020                    
Pay off one of the notes payable discount rate         50.00%            
Gain on debt extinguishment             $ 4,145,000 $ 4,145,000      
Gain loss on sales of loans net [1]                 $ 4,946,000    
Issue of common stock               27,597,802 27,385,600    
Short term promissory note               $ 38,223,000 $ 55,178,000    
Richard Petty [Member]                      
Debt Instrument [Line Items]                      
Maturity date               Mar. 31, 2020      
Loan amount               $ 7,294,000      
Annual interest rate               2.00%      
Travis Burt [Member]                      
Debt Instrument [Line Items]                      
Maturity date               Dec. 31, 2020      
Short term promissory note               $ 500,000      
Preferred Securities [Member]                      
Debt Instrument [Line Items]                      
Sale of preferred securities     $ 35,000,000                
Issue of common stock     1,083                
Maturity date               Sep. 30, 2037      
Preferred securities outstanding               $ 33,000,000      
Preferred Securities [Member] | 90 day LIBOR [Member]                      
Debt Instrument [Line Items]                      
Basis spread on variable rate               1.91%      
Preferred Securities [Member] | LIBOR Rate [Member]                      
Debt Instrument [Line Items]                      
Basis spread on variable rate               2.13%      
Unsecured Debt [Member] | Preferred Securities [Member]                      
Debt Instrument [Line Items]                      
Aggregate principal amount of unsecured junior subordinated notes     $ 36,083,000                
Third Party Investors [Member] | Preferred Securities [Member]                      
Debt Instrument [Line Items]                      
Preferred securities repurchased from a third party investor   $ 2,000,000                  
Retail and Privately Placed Notes [Member]                      
Debt Instrument [Line Items]                      
Debt instrument interest rate Percentage       8.25%   9.00% 8.25%        
Aggregate principal amount       $ 30,000,000   $ 33,625,000 $ 30,000,000     $ 6,000,000  
Maturity date       2024   2021          
Gain loss on sales of loans net             $ 4,145,000        
Net proceeds from offering           $ 31,786,000          
Dz Bank [Member]                      
Debt Instrument [Line Items]                      
Debt instrument interest rate Percentage         4.00%            
Debt instrument face amount         $ 1,400,000            
Debt instrument expiration date         2023-12            
Small Business Administration Debentures and Borrowings [Member]                      
Debt Instrument [Line Items]                      
Loan commitment term               4 years 6 months      
Commitment fee percentage               1.00%      
Principal amount of loan                     $ 34,024,756
Debt instrument interest rate Percentage               3.25%      
Extended maturity date               Jun. 01, 2020      
Debt instrument commitments amount fully utilized               $ 172,485,000      
Debt instrument commitments available               3,000,000      
Debt instrument outstanding amount               71,746,000      
Debt instrument remaining amount               20,746,000      
FSVC's [Member]                      
Debt Instrument [Line Items]                      
Principal amount of loan                     $ 33,485,000
Minimum [Member]                      
Debt Instrument [Line Items]                      
Time deposits               250,000      
Minimum [Member] | Paid on or Before February 1, 2018 [Member] | Small Business Administration Debentures and Borrowings [Member]                      
Debt Instrument [Line Items]                      
Debt instrument minimum annual payment               5,000,000      
Minimum [Member] | Paid on or Before February 1, 2019 [Member] | Small Business Administration Debentures and Borrowings [Member]                      
Debt Instrument [Line Items]                      
Debt instrument minimum annual payment               $ 7,600,000      
Brokerage [Member] | Maximum [Member]                      
Debt Instrument [Line Items]                      
Average brokerage fee percentage in relation to the maturity of deposits               0.15%      
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Funds Borrowed - Summary of Time Deposits of $100,000 or More (Detail)
$ in Thousands
Dec. 31, 2019
USD ($)
Banking And Thrift [Abstract]  
Three months or less $ 83,100
Over three months through six months 111,413
Over six months through one year 118,480
Over one year 641,252
Total deposits $ 954,245
v3.20.1
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - Notes Payable to Banks [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Notes Payable [Line Items]  
Note Amounts $ 40,984
Balance outstanding $ 33,183
Average Interest Rate 4.11% [1]
Medallion Financial Corp [Member]  
Notes Payable [Line Items]  
Note Dates Apr. 30, 2011
Note Dates Aug. 31, 2014
Maturity Dates Sep. 30, 2020
Maturity Dates Mar. 31, 2021
Type Term loans and demand notes secured by pledged loans [2]
Note Amounts $ 21,135 [2]
Balance outstanding $ 21,135
Payment Interest only [3]
Average Interest Rate 4.43%
Medallion Chicago [Member]  
Notes Payable [Line Items]  
Note Dates Nov. 30, 2011
Note Dates Dec. 31, 2011
Maturity Dates Feb. 28, 2021
Type Term loans secured by owned Chicago medallions [4]
Note Amounts $ 18,449
Balance outstanding $ 10,928
Payment $134 of principal & interest paid monthly
Average Interest Rate 3.50%
Medallion Funding [Member]  
Notes Payable [Line Items]  
Note Dates Nov. 30, 2018
Maturity Dates Dec. 31, 2023
Note Amounts $ 1,400
Balance outstanding $ 1,120
Payment $70 principal & interest paid quarterly
Average Interest Rate 4.00%
[1] Weighted average contractual rate as of December 31, 2019
[2] One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
[3] Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $81.
[4] Guaranteed by the Company.
v3.20.1
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2019
USD ($)
Minimum [Member]  
Notes Payable [Line Items]  
Minimum monthly payments of pledged loan $ 12,000
Maximum [Member]  
Notes Payable [Line Items]  
Minimum monthly payments of pledged loan $ 81,000
Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Description of variable rate basis 30 day LIBOR was 1.76%, 360 day LIBOR was 2.00%,
Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Description of variable rate basis One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
Debt Instrument interest rate, stated percentage 3.75%
30 Day LIBOR [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Debt Instrument interest rate, stated percentage 1.76%
360 Day LIBOR [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Debt Instrument interest rate, stated percentage 2.00%
Prime Rate [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Debt Instrument interest rate, stated percentage 4.75%
Prime Rate Plus [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Basis spread on variable rate 0.50%
Fixed Interest Rate [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Basis spread on variable rate 3.75%
LIBOR Rate [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Basis spread on variable rate 2.00%
v3.20.1
Leases - Schedule of Operating Lease Costs and Additional Information (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Operating lease costs $ 2,184
Operating cash flows from operating leases 2,419
Right-of-use asset obtained in exchange for lease liability $ 2,413
v3.20.1
Leases - Schedule of Breakout of Operating leases (Detail)
$ in Thousands
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Operating lease right-of-use assets $ 13,482
Other current liabilities 2,085
Operating lease liabilities 12,738
Total operating lease liabilities $ 14,823
Weighted average remaining lease term 7 years 3 months 18 days
Weighted average discount rate 5.54%
v3.20.1
Leases - Schedule of Maturities of the Lease Liabilities (Detail)
$ in Thousands
Dec. 31, 2019
USD ($)
Leases [Abstract]  
2020 $ 2,570
2021 2,473
2022 2,411
2023 2,356
2024 2,373
Thereafter 5,962
Total lease payments 18,145
Less imputed interest 3,322
Total operating lease liabilities $ 14,823
v3.20.1
Leases - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Leases [Abstract]      
Occupancy expense $ 2,436,000 $ 2,287,000 $ 1,069,000
v3.20.1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (45,595) $ (45,272)
Provision for loan losses 19,198 25,790
Net operating loss carryforwards [1] 22,607 11,132
Accrued expenses, compensation, and other assets 1,701 1,844
Unrealized gains on other investments (6,790) (2,024)
Total deferred tax liability (8,879) (8,530)
Valuation allowance (462) (255)
Deferred tax liability, net (9,341) (8,785)
Taxes receivable 1,516 1,812
Net deferred and other tax liabilities $ (7,825) $ (6,973)
[1] As of December 31, 2019, the Company and its subsidiaries had an estimated $89,687 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $22,145 as of December 31, 2019.
v3.20.1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2019
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 89,687
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets $ 22,145
December 31, 2016 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1,712
v3.20.1
Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current        
Federal     $ (2,797) $ 15,613
State   $ 519 (1,078) 756
Deferred        
Federal   (489) 5,270 (4,169)
Federal income tax rate change       17,279
State   (371) (1,464) 6,747
Net (provision) benefit for income taxes $ (709) $ (341) $ (69) $ 36,226
v3.20.1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]        
Statutory Federal income tax (provision) benefit at 21% (35% in 2017)   $ (642) $ 4,935 $ 12,582
State and local income taxes, net of federal income tax benefit   (120) 440 645
Revaluation of net operating losses   380    
Change in effective state income tax rate   (891) (2,564) 3,232
Change in state income tax accruals   640    
Federal income tax rate change       17,279
Income attributable to non-controlling interest   309    
Utilization of carry forwards     (910) 2,284
Appreciation of Medallion Bank     (1,974) 1,050
Other   (17) 4 (846)
Net (provision) benefit for income taxes $ (709) $ (341) $ (69) $ 36,226
v3.20.1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2017
Income Tax Disclosure [Abstract]    
Statutory Federal income tax (provision) benefit percentage 21.00% 35.00%
v3.20.1
Income Taxes - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2017
Income Tax Disclosure [Abstract]    
U.S. federal statutory rate 21.00% 35.00%
v3.20.1
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
 12 Months Ended
Jun. 15, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Mar. 01, 2016
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock option outstanding   550,040 [1] 144,666 320,626 345,518      
Stock option exercisable   62,778 [1] 81,889 273,960        
Unvested shares of common stock outstanding   487,262 62,777          
Weighted average fair value of options granted   $ 6.61            
Intrinsic value of options vested   $ 43,000 $ 32,000 $ 0        
Restricted Stock Units [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   26,040 0 0        
Number of shares outstanding   26,040            
Vesting period   1 year            
Exercise price for grant per share   $ 4.80            
Restricted Shares [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   216,148 101,010 327,251        
Weighted average fair value of options granted   $ 3.10 $ 1.06 $ 0.28        
Number of shares outstanding   284,879 [2] 190,915 408,582 167,703      
Exercise price for grant per share   $ 6.59 $ 4.41 $ 2.48        
2018 Equity Incentive Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 241,919 1,500,253            
Shares were rolled into the 2018 Plan   771,405            
2015 Restricted Stock Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant           700,000    
Unvested shares of common stock outstanding   284,879            
2006 Stock Option Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Issuance of maximum number of shares approved               800,000
Number of additional shares available for issuance   0            
2006 Stock Option Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term   10 years            
2015 Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 258,334           300,000  
2015 Director Plan [Member] | Non Employee Director One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 12,000              
2015 Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term 10 years              
Amended Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   200,000            
Number of additional shares available for issuance   0            
Amended Director Plan [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   9,000            
Amended Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term   10 years            
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2019 and the related exercise price of the underlying options, was $512,000 for outstanding options and $111,000 for exercisable options as of December 31, 2019. The remaining contractual life was 8.87 years for outstanding options and 5.95 years for exercisable options at December 31, 2019.
[2] The aggregate fair value of the restricted stock was $2,071,000 as of December 31, 2019. The remaining vesting period was 3.07 years at December 31, 2019.
v3.20.1
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]      
Risk free interest rate 2.29% 2.82% 1.84%
Expected dividend yield 0.66% 4.86% 7.39%
Expected life of option in years [1] 6 years 3 months 6 years 6 years
Expected volatility [2] 49.03% 30.00% 30.00%
[1] Expected life is calculated using the simplified method.
[2] We determine our expected volatility based on our historical volatility.
v3.20.1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options beginning balance 144,666 320,626 345,518
Granted 449,450 39,000 29,666
Cancelled (44,076) (214,960) (54,558)
Exercised [1] 0 0 0
Number of options ending balance 550,040 [2] 144,666 320,626
Options exercisable 62,778 [2] 81,889 273,960
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14 $ 7.10
Exercise price per share, upper range limit beginning balance 13.84 13.84 13.84
Exercise price per share, exercised [1] 0 0 0
Exercise price per share, lower range limit ending balance 2.14 [2] 2.14 2.14
Exercise price per share, upper range limit ending balance 13.53 [2] 13.84 13.84
Exercise price per share, option exercisable lower range limit 2.14 [2] 2.14 7.10
Exercise price per share, option exercisable upper range limit 13.53 [2] 13.84 13.84
Weighted average exercise price, beginning balance 7.23 8.78 9.67
Weighted average exercise price, granted 6.61 5.46 2.35
Weighted average exercise price, cancelled 9.00 9.22 10.94
Weighted average exercise price, exercised [1] 0 0 0
Weighted average exercise price, ending balance 6.58 [2] 7.23 8.78
Weighted average exercise price, options exercisable 7.60 [2] 9.25 9.50
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, granted 5.21 5.27 2.14
Exercise price per share, cancelled 6.55 9.22 10.76
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, granted 7.25 5.58 2.61
Exercise price per share, cancelled $ 13.84 $ 9.24 $ 11.21
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2019, 2018, and 2017.
[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2019 and the related exercise price of the underlying options, was $512,000 for outstanding options and $111,000 for exercisable options as of December 31, 2019. The remaining contractual life was 8.87 years for outstanding options and 5.95 years for exercisable options at December 31, 2019.
v3.20.1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward      
Aggregate intrinsic value for option exercised $ 0 $ 0 $ 0
Aggregate intrinsic value of option outstanding 512,000    
Aggregate intrinsic value of option exercisable $ 111,000    
Remaining contractual life of option outstanding 8 years 10 months 13 days    
Remaining contractual life of option exercisable 5 years 11 months 12 days    
v3.20.1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant price per share, cancelled, lower limit $ 2.14    
Grant price per share, cancelled, upper limit $ 7.10    
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares, beginning balance 190,915 408,582 167,703
Number of shares, granted 216,148 101,010 327,251
Number of shares, cancelled (3,946) (9,737) (8,988)
Number of shares, vested [1] (118,238) (308,940) (77,384)
Number of shares, ending balance 284,879 [2] 190,915 408,582
Grant price per share, lower range limit beginning balance $ 2.14 $ 2.06 $ 3.95
Grant price per share, upper range limit beginning balance 5.27 10.38 13.46
Grant price per share, granted, lower limit 4.80 3.93 2.06
Grant price per share, granted, upper limit 7.25 5.27 3.93
Grant price per share, cancelled, lower limit 3.93 3.93 2.14
Grant price per share, cancelled, upper limit 6.55 9.08 10.08
Grant price per share, vested, lower limit [1] 2.06 2.06 9.08
Grant price per share, vested, upper limit [1] 4.80 10.38 13.46
Grant price per share, lower range limit ending balance 3.95 [2] 2.14 2.06
Grant price per share, upper range limit ending balance 7.25 [2] 5.27 10.38
Weighted average grant price beginning balance 4.06 3.45 8.88
Weighted average grant price, granted 6.59 4.41 2.48
Weighted average grant price, cancelled 4.97 4.66 3.07
Weighted average grant price, vested [1] 3.89 3.35 11.09
Weighted average grant price, ending balance $ 6.01 [2] $ 4.06 $ 3.45
[1] The aggregate fair value of the restricted stock vested was $736,000, $1,270,000, and $169,000 for 2019, 2018, and 2017.
[2] The aggregate fair value of the restricted stock was $2,071,000 as of December 31, 2019. The remaining vesting period was 3.07 years at December 31, 2019.
v3.20.1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate fair value of restricted stock vested $ 736,000 $ 1,270,000 $ 169,000
Aggregate fair value of restricted stock outstanding $ 2,071,000    
Remaining vesting period of restricted stock 3 years 25 days    
v3.20.1
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward      
Number of options beginning balance 62,777    
Number of options, granted 449,450 39,000 29,666
Number of options, cancelled (3,076)    
Number of options, vested (21,889)    
Number of options ending balance 487,262 62,777  
Exercise price per share beginning balance, Lower limit $ 2.14    
Exercise price per share beginning balance, Upper limit 7.10    
Exercise price per share, Granted, Lower limit 5.21    
Exercise price per share, Granted, Upper limit 7.25    
Exercise price per share, Cancelled 6.55    
Exercise price per share, Vested, Lower limit 2.14    
Exercise price per share, Vested, Upper limit 7.10    
Exercise price per share ending balance, Lower limit 2.14 $ 2.14  
Exercise price per share ending balance, Upper limit 7.25 7.10  
Weighted average exercise price 4.59    
Weighted average exercise price, granted 6.61    
Weighted average exercise price, cancelled 6.55    
Weighted average exercise price, vested 4.40    
Weighted average exercise price $ 6.45 $ 4.59  
v3.20.1
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
 [1]
Sep. 30, 2018
 [1]
Jun. 30, 2018
 [1]
Mar. 31, 2018
 [1]
Dec. 31, 2017
 [1]
Sep. 30, 2017
 [1]
Jun. 30, 2017
 [1]
Mar. 31, 2017
 [1]
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
 [2]
Dec. 31, 2017
Selected Quarterly Financial Information [Abstract]                                
Net interest income/net investment income $ 26,587 $ 25,415 $ 23,194 $ 22,321 $ 23,003 $ 24,265 $ 24,719 $ 482 $ 6,020 $ 5,567 $ 3,787 $ 4,250 $ 71,987 $ 97,517 $ 72,469  
Income (loss) before income taxes/net investment loss before taxes 2,076 7,600 (8,478) 1,139 14,712 (3,963) (17,905) (3,566) (2,903) (2,490) (1,293) (435) (7,156) 2,337 (10,722) [3]  
Net income (loss) (191) 7,435 (6,643) 1,395 9,865 (3,846) (13,884) (14,874) $ 3,345 $ 619 $ (4,797) $ 1,111 $ (7,865) $ 1,996 (22,739)  
Net income (loss) attributable to Medallion Financial Corp./net decrease in net assets resulting from operations $ (465) $ 4,975 $ (7,500) $ 1,228 $ 9,172 $ (4,697) $ (14,647) $ (14,874)             $ (25,046)  
Net increase (decrease) in net assets resulting from operations per common share                                
Basic net income (loss) per share $ (0.02) $ 0.20 $ (0.31) $ 0.05 $ 0.38 $ (0.19) $ (0.60) $ (0.62) $ 0.14 $ 0.03 $ (0.20) $ 0.05   $ (0.07) $ (1.03) $ 0.01
Diluted net income (loss) per share $ (0.02) $ 0.20 $ (0.31) $ 0.05 $ 0.38 $ (0.19) $ (0.60) $ (0.62) $ 0.14 $ 0.03 $ (0.20) $ 0.05   $ (0.07) $ (1.03) $ 0.01
[1] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[3] Includes $256 and $870 of net revenues received from Medallion Bank for the years ended December 31, 2018 and 2017, primarily for expense reimbursements. See Notes 6 and 14 for additional information.
v3.20.1
Segment Reporting - Additional Information (Detail) - Segment
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Disclosure [Line Items]    
Number of business segments 6  
Number of operating segments 4  
Number of non-operating segments 2  
Loan outstanding percent 10.00%  
Capital ratios for operating segments 13.80% 14.30%
Operating Segments [Member]    
Segment Reporting Disclosure [Line Items]    
Capital ratios for operating segments 20.00%  
Swimming Pools [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 23.00%  
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 21.00%  
Windows [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 14.00%  
Solar Panels [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 12.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 16.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Geographic Concentration Risk [Member] | Recreational Vehicles [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 61.00%  
Geographic Concentration Risk [Member] | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 19.00%  
Geographic Concentration Risk [Member] | Trailers [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 12.00%  
Geographic Concentration Risk [Member] | Midwest [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 61.00%  
Geographic Concentration Risk [Member] | New York    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 88.00%  
v3.20.1
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
 [3]
Jun. 30, 2018
 [3]
Mar. 31, 2018
 [3]
Dec. 31, 2017
 [3]
Sep. 30, 2017
 [3]
Jun. 30, 2017
 [3]
Mar. 31, 2017
 [3]
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Disclosure [Line Items]                                
Total interest income                         $ 96,803 $ 132,562    
Total interest expense                         24,816 35,045 $ 28,367 [1],[2]  
Net interest income/net investment income $ 26,587 $ 25,415 $ 23,194 $ 22,321 $ 23,003 [3] $ 24,265 $ 24,719 $ 482 $ 6,020 $ 5,567 $ 3,787 $ 4,250 71,987 97,517 72,469 [2]  
Provision for loan losses                         59,008 [4] 47,386 59,008 [2]  
Net interest income (loss) after loss provision                         12,979 50,131 13,461 [2]  
Sponsorship and race winnings                         14,368 18,742 14,368 [2]  
Race team related expenses                         (7,121) (8,996) (7,121) [2]  
Other income (expense), net                         (27,382) (57,540)    
Income (loss) before income taxes/net investment loss before taxes 2,076 7,600 (8,478) 1,139 14,712 [3] (3,963) (17,905) (3,566) (2,903) (2,490) (1,293) (435) (7,156) 2,337 (10,722) [2],[5]  
Income tax (provision) benefit                         (709) (341) (69) $ 36,226
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (191) $ 7,435 $ (6,643) $ 1,395 9,865 [3] $ (3,846) $ (13,884) $ (14,874) $ 3,345 $ 619 $ (4,797) $ 1,111 (7,865) 1,996 (22,739) [2]  
Balance Sheet Data                                
Total loans net 1,114,762       981,487               981,487 1,114,762 981,487  
Total assets 1,541,667       1,381,846               1,381,846 1,541,667 1,381,846  
Total funds borrowed 1,169,593 [6]       1,062,028               $ 1,062,028 $ 1,169,593 [6] 1,062,028  
Selected Financial Ratios                                
Return on average assets                         (0.90%) (0.12%)    
Return on average equity                         (4.62%) (0.59%)    
Interest yield                         10.98% 11.75%    
Net interest margin                         8.19% 8.64%    
Reserve coverage                         3.58% 3.97%    
Delinquency status [7]                         2.14% 0.76%    
Charge-off ratio                         2.73% 3.60%    
RPAC [Member]                                
Segment Reporting Disclosure [Line Items]                                
Total interest expense                         $ 121 $ 159    
Net interest income/net investment income                         (121) (159)    
Net interest income (loss) after loss provision                         (121) (159)    
Sponsorship and race winnings                         14,368 18,742    
Race team related expenses                         (7,121) (8,996)    
Other income (expense), net                         (11,476) (6,942)    
Income (loss) before income taxes/net investment loss before taxes                         (4,350) 2,645    
Income tax (provision) benefit                         1,108 (329)    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         (3,242) 2,316    
Balance Sheet Data                                
Total assets 31,538       29,925               29,925 31,538 29,925  
Total funds borrowed 7,794       7,649               $ 7,649 $ 7,794 7,649  
Selected Financial Ratios                                
Return on average assets                         (11.69%) 7.28%    
Return on average equity                           (96.37%)    
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]                                
Segment Reporting Disclosure [Line Items]                                
Total interest income                         $ 68,870 $ 99,463    
Total interest expense                         6,986 13,304    
Net interest income/net investment income                         61,884 86,159    
Provision for loan losses                         15,118 28,638    
Net interest income (loss) after loss provision                         46,766 57,521    
Other income (expense), net                         (14,242) (23,490)    
Income (loss) before income taxes/net investment loss before taxes                         32,524 34,031    
Income tax (provision) benefit                         (8,579) (8,813)    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         23,945 25,218    
Balance Sheet Data                                
Total loans net 695,257       580,182               580,182 695,257 580,182  
Total assets 707,377       590,746               590,746 707,377 590,746  
Total funds borrowed 563,805       434,527               $ 434,527 $ 563,805 434,527  
Selected Financial Ratios                                
Return on average assets                         5.48% 3.84%    
Return on average equity                         22.60% 17.19%    
Interest yield                         15.78% 15.39%    
Net interest margin                         14.18% 13.33%    
Reserve coverage                         1.17% 2.53%    
Delinquency status [7]                         0.73% 0.84%    
Charge-off ratio                         1.89% 2.69%    
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]                                
Segment Reporting Disclosure [Line Items]                                
Total interest income                         $ 12,799 $ 19,943    
Total interest expense                         2,290 4,757    
Net interest income/net investment income                         10,509 15,186    
Provision for loan losses                         2,453 1,598    
Net interest income (loss) after loss provision                         8,056 13,588    
Other income (expense), net                         (3,093) (7,520)    
Income (loss) before income taxes/net investment loss before taxes                         4,963 6,068    
Income tax (provision) benefit                         (1,319) (1,572)    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         3,644 4,496    
Balance Sheet Data                                
Total loans net 244,716       181,359               181,359 244,716 181,359  
Total assets 252,704       188,892               188,892 252,704 188,892  
Total funds borrowed 201,605       143,815               $ 143,815 $ 201,605 143,815  
Selected Financial Ratios                                
Return on average assets                         2.56% 2.20%    
Return on average equity                         11.30% 10.22%    
Interest yield                         9.06% 9.50%    
Net interest margin                         7.44% 7.24%    
Reserve coverage                         0.98% 1.05%    
Delinquency status [7]                         0.07% 0.07%    
Charge-off ratio                         0.46% 0.37%    
Operating Segments [Member] | Commercial Lending [Member]                                
Segment Reporting Disclosure [Line Items]                                
Total interest income                         $ 7,076 $ 7,183    
Total interest expense                         1,502 2,833    
Net interest income/net investment income                         5,574 4,350    
Provision for loan losses                           364    
Net interest income (loss) after loss provision                         5,574 3,986    
Other income (expense), net                         (1,824) (1,149)    
Income (loss) before income taxes/net investment loss before taxes                         3,750 2,837    
Income tax (provision) benefit                         (862) (684)    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         2,888 2,153    
Balance Sheet Data                                
Total loans net 66,405       59,973               59,973 66,405 59,973  
Total assets 84,924       93,807               93,807 84,924 93,807  
Total funds borrowed 68,666       53,719               $ 53,719 $ 68,666 53,719  
Selected Financial Ratios                                
Return on average assets                         4.27% 2.44%    
Return on average equity                         9.43% 12.21%    
Interest yield                         14.25% 11.39%    
Net interest margin                         11.23% 6.90%    
Reserve coverage                         0.00% 0.00% [8]    
Delinquency status [7],[8]                         0.44% 0.15%    
Charge-off ratio                         0.00% 1.30% [9]    
Operating Segments [Member] | Medallion Lending [Member]                                
Segment Reporting Disclosure [Line Items]                                
Total interest income                         $ 6,317 $ 3,665    
Total interest expense                         10,125 7,962    
Net interest income/net investment income                         (3,808) (4,297)    
Provision for loan losses                         41,437 16,331    
Net interest income (loss) after loss provision                         (45,245) (20,628)    
Other income (expense), net                         9,742 (10,493)    
Income (loss) before income taxes/net investment loss before taxes                         (35,503) (31,121)    
Income tax (provision) benefit                         7,938 7,596    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         (27,565) (23,525)    
Balance Sheet Data                                
Total loans net 105,022       155,863               155,863 105,022 155,863  
Total assets 217,483       273,501               273,501 217,483 273,501  
Total funds borrowed 176,825       294,465               $ 294,465 $ 176,825 294,465  
Selected Financial Ratios                                
Return on average assets                         (10.13%) (9.73%)    
Return on average equity                           (48.49%)    
Interest yield                         3.58% 2.88%    
Net interest margin                         (2.16%) (3.38%)    
Reserve coverage                         15.11% 19.48%    
Delinquency status [7]                         9.43% 2.04%    
Charge-off ratio                         7.21% 14.68%    
Intersegment Eliminations [Member]                                
Segment Reporting Disclosure [Line Items]                                
Total interest income                         $ 1,741 $ 2,308    
Total interest expense                         3,792 6,030    
Net interest income/net investment income                         (2,051) (3,722)    
Provision for loan losses                           455    
Net interest income (loss) after loss provision                         (2,051) (4,177)    
Other income (expense), net                         (6,489) (7,946)    
Income (loss) before income taxes/net investment loss before taxes                         (8,540) (12,123)    
Income tax (provision) benefit                         1,005 3,461    
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         (7,535) (8,662)    
Balance Sheet Data                                
Total loans net 3,362       4,110               4,110 3,362 4,110  
Total assets 247,641       204,975               204,975 247,641 204,975  
Total funds borrowed $ 150,898       $ 127,853               $ 127,853 $ 150,898 $ 127,853  
Selected Financial Ratios                                
Return on average assets                         (4.07%) (3.71%)    
Return on average equity                         (12.37%) (14.26%)    
[1] Average borrowings outstanding were $1,138,746, $1,198,124, and $334,022, and the related average borrowing costs were 3.08%, 2.37%, and 4.12% for the years ended December 31, 2019, 2018, and 2017.
[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[3] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[4] Includes $8,161 of reversal of provision for loan losses related to the deconsolidation of Trust III in the 2018 fourth quarter.
[5] Includes $256 and $870 of net revenues received from Medallion Bank for the years ended December 31, 2018 and 2017, primarily for expense reimbursements. See Notes 6 and 14 for additional information.
[6] Excludes deferred financing costs of $5,105
[7] Loans 90 days or more past due.
[8] Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
[9] Ratio is based on total commercial lending balances, and relates to the total loan business.
v3.20.1
Commitments and Contingencies - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2019
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2024
Future minimum payments $ 5,670,000
v3.20.1
Commitments and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail)
Dec. 31, 2019
USD ($)
Commitments And Contingencies [Abstract]  
2020 $ 2,389,000
2021 1,654,000
2022 673,000
2023 673,000
2024 281,000
Thereafter 0
Total $ 5,670,000
v3.20.1
Related Party Transactions - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Jun. 30, 2019
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Related Party Transaction [Line Items]          
Repayments of note payable     $ 414,277,000 $ 389,951,000 [1]  
RPAC [Member]          
Related Party Transaction [Line Items]          
Interest income   $ 0     $ 56,000
Medallion Bank [Member]          
Related Party Transaction [Line Items]          
Loan receivable to bank         311,988,000
Medallion Servicing Corporation [Member]          
Related Party Transaction [Line Items]          
Interest income   $ 1,290,000     5,272,000
Medallion Fine Art Inc [Member]          
Related Party Transaction [Line Items]          
Loan receivable to bank         999,000
Interest income       $ 10,000 165,000
Loan amount advanced         0
Loan amount repaid         $ 2,365,000
Medallion Fine Art Inc [Member] | Paid In Kind [Member]          
Related Party Transaction [Line Items]          
Interest rate on loan   12.00%      
Officer [Member] | LAX Group,LLC [Member]          
Related Party Transaction [Line Items]          
Salary from related party     171,000    
Consulting services revenue from related party     $ 4,200    
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member]          
Related Party Transaction [Line Items]          
Equity ownership percentage by a related party     10.00%    
Common stock vesting percentage     3.34%    
Percentage of equity raised from outside investors     5.00%    
Percentage of bonus received from related party     10.00%    
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | Minimum [Member]          
Related Party Transaction [Line Items]          
Valuation of equity raised from outside investors     $ 1,500,000    
Petty Trust [Member] | RPAC [Member]          
Related Party Transaction [Line Items]          
Annual payment for services provided to the entity     700,000    
Note payable to the Petty Trust     $ 7,294,000    
Interest percentage of Notes payable     2.00%    
Repayments of note payable     $ 0    
Sponsorship fees $ 7,000,000        
Proceeds from sponsorship     $ 5,600,000    
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Related Party Transaction - Summary of Net Revenue Received (Detail) - Medallion Bank [Member] - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Schedule of Other Related Party Transactions [Line Items]    
Reimbursement of operating expenses $ 250 $ 865
Loan origination and servicing fees 6 5
Total other income $ 256 $ 870
v3.20.1
Stockholder's/Shareholder's Equity - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jul. 31, 2015
Jul. 31, 2014
Nov. 30, 2004
Nov. 30, 2003
Stockholders Equity [Line Items]              
Stock repurchased during period 2,951,243 2,951,243          
Payment for repurchase of common stock $ 24,919,000 $ 24,919,000          
Stock Repurchase Program [Member]              
Stockholders Equity [Line Items]              
Repurchases of common stock       $ 26,000,000 $ 20,000,000 $ 10,000,000 $ 10,000,000
Stock repurchased during period 2,931,125            
Payment for repurchase of common stock $ 24,587,000            
Stock purchased during period 0 0 0        
Shares remain authorized for repurchase amount $ 22,874,509            
v3.20.1
Other Operating Expenses - Summary of Major Components of Other Operating Expenses (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Other Operating Expenses [Abstract]    
Directors’ fees $ 89 $ 319
Miscellaneous taxes 120 258
Computer expense 74 244
Other expenses 304 727
Total other operating expenses $ 587 $ 1,548
v3.20.1
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2019
Dec. 31, 2018
Net share data            
Net asset value at the beginning of the year $ 11.80 $ 11.91 $ 11.42 $ 11.16    
Net investment income (loss) (0.15) (0.33) (0.41) 0.69    
Income tax provision (benefit) 0.03 1.51 (1.90) 0.00    
Net realized gains (losses) on investments (1.44) (1.82) 0.02 0.31    
Net change in unrealized appreciation on investments 0.94 0.65 3.26 0.20    
Net increase (decrease) in net assets resulting from operations (0.62) 0.01 0.97 1.20    
Issuance of common stock (0.03) (0.12)        
Repurchase of common stock     $ 0.12 $ 0.06    
Distribution of net investment income     $ (0.60) $ (0.81)    
Return of capital       $ (0.18)    
Total distributions     $ (0.60) (0.99)    
Other       (0.01)    
Total increase (decrease) in net asset value (0.65) (0.11) 0.49 0.26    
Net asset value at the end of the period/year [1] 11.15 11.80 11.91 11.42    
Per share market value at beginning of year 3.53 3.02 7.04 10.01    
Per share market value at end of period/year $ 4.65 $ 3.53 $ 3.02 $ 7.04    
Total return [2] (129.00%) 17.00% (54.00%) (22.00%)    
Ratios/supplemental data            
Total shareholders’ equity (net assets) $ 272,437,000 $ 287,159,000 $ 286,096,000 $ 278,088,000 $ 334,468,000 $ 290,204,000
Average net assets $ 284,021,000 $ 285,704,000 $ 276,978,000 $ 276,745,000    
Total expense ratio [3],[4],[5] 10.02% (3.03%) 29.36% 9.45%    
Operating expenses to average net assets [3],[4] 5.87% 4.83% 8.23% 6.04%    
Net investment income (loss) after income taxes to average net assets [3],[4] (4.61%) (2.49%) 0.04% 6.08%    
[1] Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and December 31, 2017, 2016, and 2015, and $0.00 of undistributed net realized gains per share for all periods presented.
[2] Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.
[3] MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, and $5,658, and operating expenses of $1,150, $4,211, $5,249, and $6,044, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, and 2015. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, and 11.63%, 8.23%, and 5.94% in 2015.
[4] These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.
[5] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.
v3.20.1
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Parenthetical) (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Investment Holdings [Line Items]        
Undistributed net investment income per share $ 0.00 $ 0.00 $ 0.00 $ 0.00
Undistributed net realized gains per share $ 0.00 $ 0.00 $ 0.00 $ 0.00
Servicing fee $ 1,290 $ 5,272 $ 5,421 $ 5,658
Operating expenses $ 1,150 $ 4,211 $ 5,249 $ 6,044
Total expense ratio [1],[2],[3] 10.02% (3.03%) 29.36% 9.45%
Operating expense ratio [1],[2] 5.87% 4.83% 8.23% 6.04%
Net investment income ratio     1.88%  
Goodwill impairment writeoff     $ 5,099  
Total expense ratio excluding goodwill impairment writeoff     27.52%  
Operating expense ratio excluding goodwill impairment writeoff     6.39%  
Excluding Impact of Medallion Servicing Corp. Amounts [Member]        
Investment Holdings [Line Items]        
Total expense ratio 11.75% (1.37%) 29.42% 11.63%
Operating expense ratio 6.88% 6.31% 8.28% 8.23%
Net investment income ratio 7.51% (2.49%) 1.95% 5.94%
[1] MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, and $5,658, and operating expenses of $1,150, $4,211, $5,249, and $6,044, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, and 2015. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, and 11.63%, 8.23%, and 5.94% in 2015.
[2] These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.
[3] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.
v3.20.1
Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]      
Minimum percentage of total annual compensation allowed to be deferred 1.00%    
Employer matching contribution, description The Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third of the first 6% of the employee’s annual contributions, subject to legal limits.    
Employee contributions to 401(k) Plan matched by company in an amount per employee of first 6% of employee's annual contributions 33.33%    
Defined benefit plan amount expense $ 193,000 $ 182,000 $ 185,000
v3.20.1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Financial assets    
Equity investments $ 10,079 $ 9,197
Investment securities 48,998 45,324
Loans receivable 1,160,855 1,017,882
Carrying Amount [Member]    
Financial assets    
Cash and federal funds sold [1] 67,821 57,713
Equity investments 10,079 9,197
Investment securities 48,998 45,324
Loans receivable 1,114,762 981,487
Accrued interest receivable [2] 8,662 7,413
Financial liabilities    
Funds borrowed [3] 1,169,593 1,062,028
Accrued interest payable [2] 4,398 3,852
Fair Value Recurring [Member]    
Financial assets    
Cash and federal funds sold [1] 67,821 57,713
Equity investments 10,079 9,197
Investment securities 48,998 45,324
Loans receivable 1,114,762 981,487
Accrued interest receivable [2] 8,662 7,413
Financial liabilities    
Funds borrowed [3] 1,171,274 1,062,297
Accrued interest payable [2] $ 4,398 $ 3,852
[1] Categorized as level 1 within the fair value hierarchy. See Note 20.
[2] Categorized as level 3 within the fair value hierarchy. See Note 20.
[3] As of December 31, 2019 and 2018, publicly traded unsecured notes traded at a premium to par of $1,681 and $269.
v3.20.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value Recurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Assets    
Equity investments $ 10,079 $ 9,197
Available for sale investment securities 48,998 [1] 45,324 [2]
Total 59,077 54,521
Level 2 [Member]    
Assets    
Available for sale investment securities 48,998 [1] 45,324 [2]
Total 48,998 45,324
Level 3 [Member]    
Assets    
Equity investments 10,079 9,197
Total $ 10,079 $ 9,197
[1] Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets.
[2] Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.
v3.20.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]    
Net change in unrealized gains (losses) on investments, net of tax $ (82) $ 1,081
v3.20.1
Fair Value of Assets and Liabilities - Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Equity Investments [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Beginning balance $ 9,521 $ 9,458 $ 9,197 $ 9,521
Gains (losses) included in earnings (993) (1,274) 87  
Purchases, investments, and issuances 935 1,232 3,396  
Sales, maturities, settlements, and distributions (5) (1,596) (2,601)  
Transfers in [1]   1,377    
Ending balance 9,458 9,197 10,079 9,197
Amounts related to held assets (993) [2]   $ (1,734) [3] (1,851) [4]
Medallion Loans [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Beginning balance 208,279 161,155   208,279
Gains (losses) included in earnings (38,190)      
Purchases, investments, and issuances 7      
Sales, maturities, settlements, and distributions (8,941)      
Ending balance 161,155      
Amounts related to held assets [2] (38,190)      
Commercial Loans [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Beginning balance 90,188 93,620   90,188
Gains (losses) included in earnings (8)      
Purchases, investments, and issuances 7,252      
Sales, maturities, settlements, and distributions (3,812)      
Ending balance 93,620      
Amounts related to held assets [2] (10)      
Investment [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Beginning balance 302,147 331,169   302,147
Gains (losses) included in earnings 29,143      
Purchases, investments, and issuances 462      
Sales, maturities, settlements, and distributions (583)      
Ending balance 331,169      
Amounts related to held assets [2] 29,143      
Investments Other than Securities [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Beginning balance 7,450 5,535   7,450
Gains (losses) included in earnings (1,915)      
Ending balance 5,535      
Amounts related to held assets [2] (1,915)      
Other Assets [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Beginning balance 339 $ 339   $ 339
Ending balance $ 339      
[1] Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.
[2] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018.
[3] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2019.
[4] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.
v3.20.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
 [2]
Assets      
Impaired loans $ 113,581,000 $ 140,180,000  
Loan collateral in process of foreclosure 52,711,000 [1] 49,495,000 [1] $ 52,848,000
Fair Value, Measurements, Nonrecurring [Member]      
Assets      
Impaired loans 34,915,000 47,974,000  
Loan collateral in process of foreclosure 52,711,000 49,495,000  
Total 87,626,000 97,469,000  
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]      
Assets      
Impaired loans 34,915,000 47,974,000  
Loan collateral in process of foreclosure 52,711,000 49,495,000  
Total $ 87,626,000 $ 97,469,000  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $8,163 and $3,134 as of December 31, 2019 and 2018.
[2] Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.
v3.20.1
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) - Equity Investments [Member]
 12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
Precedent Market Transactions [Member] | Equity Method Offering Price [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity Value | $ / shares $ 8.73 $ 8.73
Public Company Comparables [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Minimum [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity Value $ 4,855,000  
Equity Value 1.59  
Public Company Comparables [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Maximum [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity Value $ 6,120,000  
Equity Value 5.98  
Public Company Comparables [Member] | Discount Rate [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity Value 0.25  
Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Minimum [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity Value   $ 6,014,000
Equity Value   0.96
Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Maximum [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity Value   $ 7,214,000
Equity Value   4.54
Level 3 [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity investments $ 7,435,000 $ 5,683,000
Level 3 [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Financial Condition and Operating Performance of the Investee [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity investments 1,189,000 1,850,000
Level 3 [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity investments $ 1,455,000 1,455,000
Level 3 [Member] | Investee Book Value [Member] | Equity Method Valuation Indicated By Investee Filings [Member]    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Equity investments   $ 209,000
v3.20.1
Medallion Bank Preferred Stock - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Feb. 27, 2009
Dec. 31, 2019
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 ABC and D Non-cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member]        
Changes In Equity And Comprehensive Income Line Items [Line Items]        
Aggregate purchase price     $ 21,498,000  
Redemption of preferred stock       $ 4,000,000
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | 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    
v3.20.1
Parent Company Only Condensed Financial Information - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
 [3]
Assets      
Cash [1] $ 17,700 $ 23,842  
Net loans receivable 1,114,762 981,487  
Loans in process of foreclosure investment 52,711 [2] 49,495 [2] $ 52,848
Income tax receivable 1,516    
Other assets 19,404 25,210  
Total assets 1,541,667 1,381,846  
Liabilities      
Short-term borrowings 38,223 55,178  
Deferred tax liabilities 9,341 8,785  
Long-term borrowings [4] 174,614 158,810  
Total liabilities 1,207,199 1,091,642  
Total stockholders’ equity 263,148 262,608  
Total liabilities and equity 1,541,667 1,381,846  
Parent Company [Member]      
Assets      
Cash 4,477 1,110  
Net loans receivable 26,802 37,737  
Loans in process of foreclosure investment 11,104 12,001  
Goodwill and intangible assets 177,176 178,621  
Investments in bank subsidiaries 158,201 142,469  
Investments in non-bank subsidiaries 92,856 91,059  
Income tax receivable 4,708    
Other assets 14,111 5,776  
Total assets 489,435 468,773  
Liabilities      
Other liabilities 18,660 9,073  
Intercompany payables 54,904 63,352  
Short-term borrowings 8,188 38,870  
Deferred tax liabilities 30,728 28,245  
Long-term borrowings 113,807 66,625  
Total liabilities 226,287 206,165  
Total stockholders’ equity 263,148 262,608  
Total liabilities and equity $ 489,435 $ 468,773  
[1] Includes restricted cash of $2,970 as of December 31, 2019.
[2] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $8,163 and $3,134 as of December 31, 2019 and 2018.
[3] Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.
[4] Includes $2,511 of deferred financing costs as of December 31, 2019. Refer to Note 7 for more details.
v3.20.1
Parent Company Only Condensed Financial Information - Condensed Statements of Operations (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
 [2]
Sep. 30, 2018
 [2]
Jun. 30, 2018
 [2]
Mar. 31, 2018
 [2]
Dec. 31, 2017
 [2]
Sep. 30, 2017
 [2]
Jun. 30, 2017
 [2]
Mar. 31, 2017
 [2]
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Condensed Income Statements, Captions [Line Items]                              
Interest income                         $ 96,803 $ 132,562  
Interest expense [1]                             $ 3,551
Net interest income/net investment income $ 26,587 $ 25,415 $ 23,194 $ 22,321 $ 23,003 $ 24,265 $ 24,719 $ 482 $ 6,020 $ 5,567 $ 3,787 $ 4,250 71,987 97,517 72,469 [1]
Provision for loan losses                         59,008 [3] 47,386 59,008 [1]
Net interest income after provision for loan losses                         12,979 50,131 13,461 [1]
Income (loss) before income taxes/net investment loss before taxes 2,076 7,600 (8,478) 1,139 14,712 (3,963) (17,905) (3,566) $ (2,903) $ (2,490) $ (1,293) $ (435) (7,156) 2,337 (10,722) [1],[4]
Income tax benefit [1]                             8,426
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations $ (465) $ 4,975 $ (7,500) $ 1,228 $ 9,172 $ (4,697) $ (14,647) $ (14,874)             $ (25,046) [1]
Parent Company [Member]                              
Condensed Income Statements, Captions [Line Items]                              
Interest income                         (1,958) (2,552)  
Interest expense                         5,480 8,856  
Net interest income/net investment income                         (7,438) (11,408)  
Provision for loan losses                         19,190 6,377  
Net interest income after provision for loan losses                         (26,628) (17,785)  
Other income (expenses), net                         (16,913) (13,686)  
Income (loss) before income taxes/net investment loss before taxes                         (43,541) (31,471)  
Income tax benefit                         5,328 7,013  
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations                         (38,213) (24,458)  
Undistributed earnings of subsidiaries                         28,041 22,696  
Net income (loss) attributable to parent company                         $ (10,172) $ (1,762)  
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[3] Includes $8,161 of reversal of provision for loan losses related to the deconsolidation of Trust III in the 2018 fourth quarter.
[4] Includes $256 and $870 of net revenues received from Medallion Bank for the years ended December 31, 2018 and 2017, primarily for expense reimbursements. See Notes 6 and 14 for additional information.
v3.20.1
Parent Company Only Condensed Financial Information - Condensed Statements of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
 [1]
Sep. 30, 2018
 [1]
Jun. 30, 2018
 [1]
Mar. 31, 2018
 [1]
Dec. 31, 2017
 [1]
Sep. 30, 2017
 [1]
Jun. 30, 2017
 [1]
Mar. 31, 2017
 [1]
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
 [2]
Condensed Statement of Income Captions [Line Items]                              
Net income (loss) $ (191) $ 7,435 $ (6,643) $ 1,395 $ 9,865 $ (3,846) $ (13,884) $ (14,874) $ 3,345 $ 619 $ (4,797) $ 1,111 $ (7,865) $ 1,996 $ (22,739)
Other comprehensive income (loss)                           1,081 (82)
Total comprehensive income (loss) attributable to Medallion Financial Corp.                           (681) $ (25,128)
Parent Company [Member]                              
Condensed Statement of Income Captions [Line Items]                              
Net income (loss)                         (10,172) (1,762)  
Other comprehensive income (loss)                         (82) 1,081  
Total comprehensive income (loss) attributable to Medallion Financial Corp.                         $ (10,254) $ (681)  
[1] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flow (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
 [1]
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
 [1]
Sep. 30, 2017
 [1]
Jun. 30, 2017
 [1]
Mar. 31, 2017
 [1]
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES                              
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations $ (191) $ 7,435 $ (6,643) $ 1,395 $ 9,865 [1] $ (3,846) $ (13,884) [1] $ (14,874) [1] $ 3,345 $ 619 $ (4,797) $ 1,111 $ (7,865) $ 1,996 $ (22,739) [2]
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                              
Provision for loan losses                           47,386 59,008 [2]
Depreciation and amortization                           7,499 5,564 [2]
Change in deferred and other tax assets/liabilities, net                           853 13,637 [2]
Net change in loan collateral in process of foreclosure                           11,838 9,926 [2]
Net change in unrealized depreciation on investments                           1,734 6,457 [2]
Stock-based compensation expense                           1,221 576 [2]
Decrease in other assets                           2,838 1,309 [2]
Increase in other liabilities [2]                             4,196
Net cash provided by operating activities                           64,935 66,551 [2]
CASH FLOWS FROM INVESTING ACTIVITIES                              
Loans originated                           (471,069) (333,740) [2]
Proceeds from principal receipts, sales, and maturities of loans and investments                           251,653 302,409 [2]
Purchases of investments                           10,507 10,376 [2]
Net cash used for investing activities                           (206,510) (23,697) [2]
CASH FLOWS FROM FINANCING ACTIVITIES                              
Proceeds from funds borrowed                           525,842 364,139 [2]
Repayments of funds borrowed                           (414,277) (389,951) [2]
Net cash provided by (used for) financing activities                           151,683 (27,654) [2]
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                           10,108 15,200 [2]
Parent Company [Member]                              
CASH FLOWS FROM OPERATING ACTIVITIES                              
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations                         (10,172) (1,762)  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:                              
Equity in undistributed earnings of subsidiaries                         (28,041) (22,696)  
Provision for loan losses                         19,190 6,377  
Depreciation and amortization                         5,451 5,484  
Change in deferred and other tax assets/liabilities, net                         4,512 (2,225)  
Proceeds from sales of loan collateral in process of foreclosure                         487 2,403  
Net change in loan collateral in process of foreclosure                         678 906  
Net change in unrealized depreciation on investments                           1,786  
Stock-based compensation expense                         425 1,221  
Decrease in other assets                         4,073 988  
Increase in deferred financing costs                           (1,297)  
Decrease in intercompany payables                         (3,368) (8,448)  
Increase in other liabilities                         4,237 (1,759)  
Net cash provided by operating activities                         (2,528) (19,022)  
CASH FLOWS FROM INVESTING ACTIVITIES                              
Loans originated                         (309) (3,312)  
Proceeds from principal receipts, sales, and maturities of loans and investments                         10,900 2,313  
Purchases of investments                           1,125  
Dividends from subsidiaries                         5,200 6,248  
Net cash used for investing activities                         15,791 4,124  
CASH FLOWS FROM FINANCING ACTIVITIES                              
Proceeds from funds borrowed                           36,000  
Repayments of funds borrowed                         (17,208) (17,735)  
Net cash provided by (used for) financing activities                         (17,208) 18,265  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                         (3,945) 3,367  
Cash and cash equivalents, beginning of period       $ 1,110     $ 5,055           5,055 1,110  
Cash and cash equivalents, end of period $ 4,477       $ 1,110     $ 5,055         $ 1,110 $ 4,477 $ 1,110
[1] The three months ended March 31, 2018 and earlier quarters have been accounted for under Investment Company Accounting, and subsequent quarters have been accounted for under Bank Holding Company Accounting.
[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.1
Variable Interest Entities - Additional Information (Detail) - USD ($)
 12 Months Ended
Oct. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2008
Variable Interest Entity [Line Items]        
Variable interest entity net gain $ 25,325,000      
Equity investments   $ 10,079,000 $ 9,197,000  
Medallion Financing Trust I [Member]        
Variable Interest Entity [Line Items]        
Promissory note payable $ 1,400,000      
Taxi Medallion Loan Trust III [Member]        
Variable Interest Entity [Line Items]        
Equity investments   0 $ 0  
Taxi Medallion Loan Trust III [Member] | DZ Loan [Member] | Commercial Paper [Member]        
Variable Interest Entity [Line Items]        
Line of credit facility maximum borrowing capacity       $ 200,000,000
Long-term debt   $ 88,780,000    
Maturity date   Nov. 15, 2020