MEDALLION FINANCIAL CORP, 10-K filed on 16 Mar 21
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v3.20.4
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2020
Mar. 12, 2021
Jun. 30, 2020
Document and Entity Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Annual Report true    
Document Transition Report false    
Document Period End Date Dec. 31, 2020    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity Registrant Name MEDALLION FINANCIAL CORP    
Entity Central Index Key 0001000209    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Common Stock, Shares Outstanding   25,039,969  
Entity Public Float     $ 54,470,199
Entity Emerging Growth Company false    
Entity Small Business true    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Incorporation, State or Country Code DE    
Entity File Number 001-37747    
Entity Tax Identification Number 04-3291176    
Entity Address, Address Line One 437 MADISON AVENUE, 38th Floor    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10022    
City Area Code 212    
Local Phone Number 328-2100    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Definitive Proxy Statement for its 2021 Annual Meeting of Shareholders, which Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2020, are incorporated by reference into Part III of this Form 10-K.

   
Common Stock [Member]      
Document and Entity Information [Line Items]      
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol MFIN    
Security Exchange Name NASDAQ    
9.000% Senior Notes due 2021 [Member]      
Document and Entity Information [Line Items]      
Title of 12(b) Security 9.000% Senior Notes due 2021    
Trading Symbol MFINL    
Security Exchange Name NASDAQ    
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Assets    
Cash and cash equivalents [1] $ 54,743 $ 17,700
Federal funds sold 57,297 50,121
Equity investments 9,746 10,079
Investment securities 46,792 48,998
Loans 1,229,838 1,160,855
Allowance for loan losses [2],[3] (57,548) (46,093)
Net loans receivable 1,172,290 1,114,762
Accrued interest receivable 10,338 8,662
Property, equipment, and right-of-use lease asset, net 12,404 14,375
Loan collateral in process of foreclosure [4] 54,560 52,711
Goodwill 150,803 150,803
Intangible assets, net 51,090 52,536
Income tax receivable 1,757 1,516
Other assets 20,591 19,404
Total assets 1,642,411 1,541,667
Liabilities    
Accounts payable and accrued expenses [5] 14,902 16,234
Accrued interest payable 4,673 4,398
Deposits [6] 1,065,398 951,651
Short-term borrowings 87,334 38,223
Deferred tax liabilities, net 807 9,341
Operating lease liabilities 11,018 12,738
Long-term debt [7] 153,718 174,614
Total liabilities 1,337,850 1,207,199
Commitments and contingencies [8]
Stockholders’ equity    
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding)
Common stock (50,000,000 shares of $0.01 par value stock authorized- 27,828,871 shares at December 31, 2020 and 27,597,802 shares at December 31, 2019 issued) 278 276
Additional paid in capital 277,539 275,511
Treasury stock (2,951,243 shares at December 31, 2020 and December 31, 2019) (24,919) (24,919)
Accumulated other comprehensive income (loss) 2,012 999
Retained earnings (accumulated deficit) (23,502) 11,281
Total stockholders’ equity 231,408 263,148
Non-controlling interest in consolidated subsidiaries 73,153 71,320
Total equity 304,561 334,468
Total liabilities and equity $ 1,642,411 $ 1,541,667
Number of shares outstanding 24,877,628 24,646,559
Book value per share $ 9.30 $ 10.68
[1] Includes restricted cash of $2,970 as of December 31, 2020 and 2019.
[2] As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[3] As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[4] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019.
[5] Includes the short-term portion of lease liabilities of $2,004 and $2,085 as of December 31, 2020 and 2019. Refer to Note 7 for more details.
[6] Includes $2,674 and $2,594 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details.
[7] Includes $3,131 and $2,511 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details.
[8] Refer to Note 11 for details.
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 27,828,871 27,597,802
Treasury stock,shares 2,951,243 2,951,243
Restricted cash $ 2,970 $ 2,970
Loan collateral in process of foreclosure, financed sales collateral to third parties 3,535 8,163
Short term lease liabilities 2,004 2,085
Deposits [Member]    
Deferred financing costs 2,674 2,594
Long-Term Debt [Member]    
Deferred financing costs $ 3,131 $ 2,511
v3.20.4
Consolidated Statements of Operations - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Interest and fees on loans [1]     $ 95,080,000
Interest and dividends on investment securities [1]     1,644,000
Medallion lease income [1]     133,000
Interest income on investments [1]     3,287,000
Total interest income /total investment income [1],[2]     100,836,000
Interest on deposits [1]     14,230,000
Interest on short-term borrowings [1]     4,441,000
Interest on long-term debt [1]     6,145,000
Interest expense [1]     3,551,000
Total interest expense [1],[3]     28,367,000
Net interest income/net investment income $ 110,811,000 $ 97,517,000 72,469,000 [1]
Provision for loan losses 69,817,000 47,386,000 59,008,000 [1]
Net interest income after provision for loan losses 40,994,000 50,131,000 13,461,000 [1]
Other income (loss)      
Writedown of loan collateral in process of foreclosure [1]     (2,188,000)
Sponsorship and race winnings, net 20,042,000 18,742,000 14,368,000 [1]
Gain (loss) on equity investments [1]     (939,000)
Gain on the extinguishment of debt   4,145,000  
Gain on deconsolidation of Trust III [1]     25,325,000
Gain on sale of loans [1]     4,946,000
Other income [1]     494,000
Total other income (loss), net [1]     42,006,000
Other expenses      
Salaries and employee benefits [1]     21,706,000
Race team related expenses 8,366,000 8,996,000 7,121,000 [1]
Professional fees [1]     9,332,000
Loan servicing fees [1]     3,470,000
Collection costs [1]     5,207,000
Rent expense [1]     2,040,000
Regulatory fees [1]     1,703,000
Amortization of intangible assets 1,445,000 1,446,000 1,083,000 [1]
Travel, meals, and entertainment [1]     1,448,000
Intangible asset impairment [1]     5,615,000
Other expenses [1]     7,464,000
Total other expenses [1],[4]     66,189,000
Income (loss) before income taxes/net investment loss before taxes (36,981,000) 2,337,000 (10,722,000) [1],[4]
Income tax (provision) benefit [1]     (373,000)
Net income (loss) after taxes/net investment income (loss) after taxes [1]     (11,095,000)
Net realized losses on investments [1],[5]     (34,745,000)
Income tax benefit [1]     8,426,000
Total net realized losses on investments [1]     (26,319,000)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries [1]     29,115,000
Net change in unrealized depreciation on investments other than securities [1]     (1,915,000)
Net change in unrealized appreciation (depreciation) on investments [1]     (4,403,000)
Income tax (provision) benefit [1]     (8,122,000)
Net unrealized appreciation on investments [1]     14,675,000
Net realized/unrealized gains (losses) on investments [1]     (11,644,000)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations $ (26,907,000) $ 1,996,000 (22,739,000) [1]
Less: income attributable to the non-controlling interest [1]     2,307,000
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations [1]     $ (25,046,000)
Basic net loss per share $ (1.42) $ (0.07) $ (1.03) [1]
Diluted net loss per share $ (1.42) $ (0.07) $ (1.03) [1]
Weighted average common shares outstanding      
Basic 24,445,452 24,342,979 24,214,978 [1]
Diluted 24,445,452 24,342,979 24,214,978 [1]
Bank Holding Company Accounting [Member]      
Interest and fees on loans $ 143,701,000 $ 130,167,000  
Interest and dividends on investment securities 1,208,000 2,225,000  
Medallion lease income 53,000 170,000  
Total interest income /total investment income [2] 144,962,000 132,562,000  
Interest on deposits 22,330,000 22,521,000  
Interest on short-term borrowings 2,006,000 3,242,000  
Interest on long-term debt 9,815,000 9,282,000  
Total interest expense [3] 34,151,000 35,045,000  
Net interest income/net investment income 110,811,000 97,517,000  
Provision for loan losses 69,817,000 47,386,000  
Net interest income after provision for loan losses 40,994,000 50,131,000  
Other income (loss)      
Writedown of loan collateral in process of foreclosure (24,523,000) (4,381,000)  
Sponsorship and race winnings, net 20,042,000 18,742,000  
Gain (loss) on equity investments (2,985,000)    
Gain on the extinguishment of debt   4,145,000  
Other income 1,530,000 1,881,000  
Total other income (loss), net (5,936,000) 20,387,000  
Other expenses      
Salaries and employee benefits 28,172,000 24,971,000  
Race team related expenses 8,366,000 8,996,000  
Professional fees 8,047,000 7,402,000  
Loan servicing fees 6,737,000 5,253,000  
Collection costs 5,454,000 6,638,000  
Rent expense 2,833,000 2,419,000  
Regulatory fees 1,822,000 1,722,000  
Amortization of intangible assets 1,445,000 1,446,000  
Travel, meals, and entertainment 375,000 1,138,000  
Other expenses 8,788,000 8,196,000  
Total other expenses [4] 72,039,000 68,181,000  
Income (loss) before income taxes/net investment loss before taxes [4] (36,981,000) 2,337,000  
Income tax (provision) benefit 10,074,000 (341,000)  
Net income (loss) after taxes/net investment income (loss) after taxes (26,907,000) 1,996,000  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (26,907,000) 1,996,000  
Less: income attributable to the non-controlling interest 7,876,000 3,758,000  
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations $ (34,783,000) $ (1,762,000)  
Basic net loss per share $ (1.42) $ (0.07)  
Diluted net loss per share $ (1.42) $ (0.07)  
Weighted average common shares outstanding      
Basic 24,445,452 24,342,979  
Diluted 24,445,452 24,342,979  
Controlled Subsidiary Investment [Member]      
Dividend income from controlled subsidiaries [1]     $ 28,000
Interest income [1]     10,000
Affiliate Investment [Member]      
Interest income [1]     $ 654,000
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] Included in interest and investment income is $1,188, $834, and $1,869 of paid in kind interest for the years ended December 31, 2020, 2019, and 2018.
[3] Average borrowings outstanding were $1,258,486, $1,138,746, and $1,198,124, and the related average borrowing costs were 2.71%, 3.08%, and 2.37% for the years ended December 31, 2020, 2019, and 2018.
[4] Includes $256 of net revenues received from Medallion Bank for the year ended December 31, 2018, primarily for expense reimbursements. See Notes 5 and 12 for additional information.
[5] There were no net losses on investment securities of affiliated issuers for the year ended December 31, 2018.
v3.20.4
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Interest paid in kind $ 1,188 $ 834 $ 1,869
Average borrowings outstanding   $ 1,138,746 $ 1,198,124
Average borrowing costs rate   3.08% 2.37%
Net realized gains (losses) on investments [1],[2]     $ (34,745)
Affiliated Entity [Member]      
Net realized gains (losses) on investments     0
Medallion Bank [Member]      
Revenue     $ 256
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] There were no net losses on investment securities of affiliated issuers for the year ended December 31, 2018.
v3.20.4
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
 [1]
Statement Of Income And Comprehensive Income [Abstract]      
Net income (loss) after taxes/net decrease on net assets resulting from operations $ (26,907) $ 1,996 $ (22,739)
Other comprehensive income (loss), net of tax 1,013 1,081 (82)
Total comprehensive income (loss) (25,894) 3,077 (22,821)
Less: comprehensive income attributable to the non-controlling interest 7,876 3,758 2,307
Total comprehensive loss attributable to Medallion Financial Corp. $ (33,770) $ (681) $ (25,128)
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Consolidated Statement of Changes in Stockholders' Equity and Changes in Net Assets - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Capital in Excess of Par [Member]
Capital in Excess of Par [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Treasury Stock [Member]
Treasury Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Parent [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Noncontrolling Interest [Member]
Noncontrolling Interest [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Accumulated Undistributed Net Investment Loss [Member]
Accumulated Undistributed Net Investment Loss [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Net Unrealized Appreciation on Investment Net of Tax [Member]
Net Unrealized Appreciation on Investment Net of Tax [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance at Dec. 31, 2017 $ 287,159   $ 273   $ 273,716   $ (24,919)           $ 287,159              
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017                                 $ (65,592)   $ 103,681  
Balance, shares at Dec. 31, 2017     27,294,327       (2,951,243)                          
Net increase (decrease) in net assets resulting from operations (14,874)                       (14,874)              
Net increase (decrease) in net assets resulting from operations | Investment Company Accounting [Member]                                 (38,299)   23,425  
Stock-based compensation 152   $ 1   151               152              
Issuance of restricted stock, net, shares     95,726                                  
Ending balance at Mar. 31, 2018 272,437 $ 299,502 $ 274 $ 274 273,867 $ 273,867 $ (24,919) $ (24,919)   $ 23,215 $ 23,215   272,437 $ 272,437   $ 27,065        
Ending balance (Investment Company Accounting [Member]) at Mar. 31, 2018                                 (103,891) $ 103,891 127,106 $ (127,106)
Ending balance, shares at Mar. 31, 2018     27,390,053 27,390,053     (2,951,243) (2,951,243)                        
Change in Accounting Principle, Type [Extensible List]                   mfin:AdoptionOfBankHoldingCompanyAccountingMember                    
Change in Accounting Principle, Type [Extensible List] | Investment Company Accounting [Member]                                   mfin:AdoptionOfBankHoldingCompanyAccountingMember   mfin:AdoptionOfBankHoldingCompanyAccountingMember
Balance at Dec. 31, 2017 287,159   $ 273   273,716   $ (24,919)           287,159              
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017                                 (65,592)   103,681  
Balance, shares at Dec. 31, 2017     27,294,327       (2,951,243)                          
Net income (loss) [1] (22,739)                                      
Ending balance at Dec. 31, 2018 290,204   $ 274   274,292   $ (24,919)   $ 13,043     $ (82) 262,608   $ 27,596          
Ending balance, shares at Dec. 31, 2018     27,385,600       (2,951,243)                          
Balance at Mar. 31, 2018 272,437 $ 299,502 $ 274 $ 274 273,867 $ 273,867 $ (24,919) $ (24,919)   $ 23,215 $ 23,215   272,437 $ 272,437   $ 27,065        
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018                                 $ (103,891) $ 103,891 $ 127,106 $ (127,106)
Balance, shares at Mar. 31, 2018     27,390,053 27,390,053     (2,951,243) (2,951,243)                        
Net income (loss) (7,865)               (10,172)       (10,172)   2,307          
Distributions to non-controlling interest (1,776)                           (1,776)          
Stock-based compensation 425       425               425              
Forfeiture of restricted stock, net, shares     (4,453)                                  
Net change in unrealized gains (losses) on investments, net of tax (82)                     (82) (82)              
Ending balance at Dec. 31, 2018 290,204   $ 274   274,292   $ (24,919)   13,043     (82) 262,608   27,596          
Ending balance, shares at Dec. 31, 2018     27,385,600       (2,951,243)                          
Net income (loss) 1,996               (1,762)       (1,762)   3,758          
Non-controlling interest equity raised by Medallion Bank [2] 42,485                           42,485          
Distributions to non-controlling interest (2,519)                           (2,519)          
Stock-based compensation 1,221   $ 2   1,219               1,221              
Issuance of restricted stock, net     $ 0                                  
Issuance of restricted stock, net, shares     216,148                                  
Forfeiture of restricted stock, net     $ 0                                  
Forfeiture of restricted stock, net, shares     (3,946)                                  
Net change in unrealized gains (losses) on investments, net of tax 1,081                     1,081 1,081              
Ending balance at Dec. 31, 2019 $ 334,468   $ 276   275,511   $ (24,919)   11,281     999 263,148   71,320          
Ending balance, shares at Dec. 31, 2019 24,646,559   27,597,802       (2,951,243)                          
Net income (loss) $ (26,907)               (34,783)       (34,783)   7,876          
Distributions to non-controlling interest (6,043)                           (6,043)          
Stock-based compensation 2,030   $ 2   2,028               2,030              
Issuance of restricted stock, net     $ 0                                  
Issuance of restricted stock, net, shares     229,408                                  
Forfeiture of restricted stock, net     $ 0                                  
Forfeiture of restricted stock, net, shares     (8,755)                                  
Issuance of restricted stock units, net, shares     10,416                                  
Net change in unrealized gains (losses) on investments, net of tax 1,013                     1,013 1,013              
Ending balance at Dec. 31, 2020 $ 304,561   $ 278   $ 277,539   $ (24,919)   $ (23,502)     $ 2,012 $ 231,408   $ 73,153          
Ending balance, shares at Dec. 31, 2020 24,877,628   27,828,871       (2,951,243)                          
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2]

Refer to Note 18 for details.
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes/net decrease on net assets resulting from operations $ (26,907,000) $ 1,996,000 $ (22,739,000) [1]
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
Provision for loan losses 69,817,000 47,386,000 59,008,000 [1]
Paid-in-kind interest (1,188,000) (834,000) (1,869,000) [1]
Depreciation and amortization 7,714,000 7,499,000 5,564,000 [1]
Amortization of origination fees, net 6,022,000 4,952,000 3,132,000 [1]
(Decrease) increase in deferred and other tax liabilities, net (8,776,000) 853,000 13,637,000 [1]
Net change in value of loan collateral in process of foreclosure 31,926,000 11,838,000 9,926,000 [1]
Net realized (gains) losses on sale of investments 4,305,000 (1,820,000) (5,921,000) [1]
Net change in unrealized (appreciation) depreciation on investments   1,734,000 6,457,000 [1]
Stock-based compensation expense 2,030,000 1,221,000 576,000 [1]
Gain on deconsolidation of Trust III [1]     (25,325,000)
Gain on extinguishment of debt   (4,145,000)  
Intangible asset impairment [1]     5,615,000
(Increase) decrease in accrued interest receivable (1,676,000) (1,249,000) 797,000 [1]
Decrease in other assets 2,223,000 2,838,000 1,309,000 [1]
Decrease in accounts payable and accrued expenses (7,206,000) (8,024,000) (675,000) [1]
Increase in accrued interest payable 422,000 690,000 139,000 [1]
Loans originated [1]     (8,193,000)
Proceeds from principal receipts, sales, and maturities of loans [1]     13,279,000
Capital returned by Medallion Bank and other controlled subsidiaries, net [1]     93,000
Net change in unrealized depreciation on investment other than securities [1]     1,915,000
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries [1]     (29,115,000)
Net realized losses on investments [1],[2]     34,745,000
Increase in other liabilities [1]     4,196,000
Net cash provided by operating activities 78,706,000 64,935,000 66,551,000 [1]
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (506,106,000) (471,069,000) (333,740,000) [1]
Proceeds from principal receipts, sales, and maturities of loans 321,831,000 251,653,000 302,409,000 [1]
Purchases of investments (15,580,000) (10,507,000) (10,376,000) [1]
Proceeds from principal receipts, sales, and maturities of investments 15,399,000 7,119,000 6,417,000 [1]
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 13,499,000 16,294,000 11,593,000 [1]
Net cash used for investing activities (170,957,000) (206,510,000) (23,697,000) [1]
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from time deposits and funds borrowed 668,577,000 525,842,000 364,139,000 [1]
Repayments of time deposits and funds borrowed (526,064,000) (414,277,000) (389,951,000) [1]
Purchase of federal funds   4,000,000 8,000,000 [1]
Repayments of federal funds   (4,000,000) (8,000,000) [1]
Non-controlling interest equity raised by Medallion Bank   42,485,000  
Distributions to non-controlling interests (6,043,000) (2,367,000) (1,776,000) [1]
Payments of declared distributions [1]     (66,000)
Net cash provided by (used for) financing activities 136,470,000 151,683,000 (27,654,000) [1]
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 44,219,000 10,108,000 15,200,000 [1]
Cash and cash equivalents, beginning of period [3],[4] 67,821,000 57,713,000 [1] 42,513,000 [1]
Cash and cash equivalents, end of period [4] 112,040,000 67,821,000 [3] 57,713,000 [1],[3]
SUPPLEMENTAL INFORMATION      
Cash paid during the period for interest 31,204,000 32,008,000 25,102,000 [1]
Cash paid during the period for income taxes 104,000 310,000 85,000 [1]
NON-CASH INVESTING      
Loans transferred to loan collateral in process of foreclosure, net 47,254,000 $ 31,348,000 32,125,000 [1]
Loans transferred to other foreclosed property $ 1,800,000    
Previously Unconsolidated Subsidiaries [Member]      
SUPPLEMENTAL INFORMATION      
Cash, cash equivalents and federal funds sold     29,923,000
Medallion Bank [Member]      
SUPPLEMENTAL INFORMATION      
Deposit     $ 100,000
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] There were no net losses on investment securities of affiliated issuers for the year ended December 31, 2018.
[3] Included in the beginning balance for the year ended December 31, 2018 was $29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with the Bank.
[4] Includes federal funds sold.
v3.20.4
Organization of Medallion Financial Corp. and its Subsidiaries
 12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

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

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

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

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

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

Beginning in 2019, the Bank began the process to build out a strategic partnership program with financial technology, or fintech, companies. The Bank entered into an initial partnership in 2020 and began issuing its first loans, while continuing to explore opportunities with additional fintech companies.

Taxi Medallion Loan Trust III, or Trust III, was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity, or VIE, and MFC was the primary beneficiary until the 2018 fourth quarter. As a result, the Company consolidated Trust III in its financial results until consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 20. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Trust III. Trust III’s loans are serviced by MFC.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $36,083,000 at December 31, 2020, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

MFC, through several wholly-owned subsidiaries, or together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 medallions are carried at a net realizable value of $2,932,000 in other assets on the Company’s consolidated balance sheet at December 31, 2020, compared to a net realizable value of $3,091,000 at December 31, 2019.

v3.20.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change to Bank Holding Company Accounting

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

Use of Estimates

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

Principles of Consolidation

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

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

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,500,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 16 and 17 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investment in equity securities with readily determinable value to be valued as such, and those that do not are measured at cost, less any impairment plus or minus any observable price change. Equity investments of $9,746,000 and $10,079,000 at December 31, 2020 and 2019, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2020 and 2019, the Company determined that there was no impairment or observable price change.

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. 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 $278,000 and $248,000 at December 31, 2020 and 2019, and $291,000 and $79,000 was amortized to interest income for the years ended December 31, 2020 and 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 to interest income for the three months ended March 31, 2018. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the 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 5 for additional details.

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, and therefore changed the Company’s financial reporting from Investment Company Accounting to Bank Holding Company Accounting. As a result, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2020 and 2019, net loan origination costs were $20,684,000 and $17,839,000. Net amortization to income for the years ended December 31, 2020, 2019 and 2018 was $6,021,000, $4,952,000, and 3,128,000 ($3,993,000 when combined with the Bank).

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded to write the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as a recovery. Total loans 90 days or more past due were $6,878,000 at December 31, 2020, or 0.57% of the total loan portfolio, compared to $8,663,000, or 0.76% at December 31, 2019.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance, and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the CARES Act relief period was extended to the later of January 1, 2022 or 60 days after the date which the coronavirus, or COVID-19, national emergency terminates, companies may elect to (a) suspend the requirements of US GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs and (b) suspend any determination of a loan modified as a result of the effects of COVID-19 as a TDR, including impairment for accounting purposes. Any such suspension is applicable for the term of the loan modification, but solely with respect to any modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019, and shall not apply to any adverse impact on the credit of a borrower that is not related to COVID-19. As of December 31, 2020, there were no consumer or medallion loan modifications related to COVID-19 that would have otherwise been classified as a TDR, and therefore there was no need for the Company to elect this relief under the CARES Act during 2020. However, we expect to have loan modifications related to COVID-19 that would apply under this provision of the CARES Act in the future.

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

The Company had $15,367,000 and $28,833,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2020 and 2019.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $107,131,000 and $113,581,000 at December 31, 2020 and 2019. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of December 31, 2020 and 2019. The Company assigned its servicing rights of the Bank’s portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from the Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at the median sales price for the collateral over the most recent quarter, historically non-delinquent nonperforming loans are valued at either the median sales price for the collateral over the most recent quarter or the discounted cash flow if such loans were modified and it is clear that sources other than the taxi business were instrumental in keeping such loans current, and performing medallion loans are reserved utilizing historical loss ratios over a three-year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result of COVID-19, there was an increase in the reserve percentages of 50 basis points on the recreation subprime loan business during the twelve months ended December 31, 2020. In addition, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six month deferral period with borrowers, and therefore deemed all such loans as impaired. As a result, all medallion loans were written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions. In total, write-downs on medallion assets were approximately $46,087,000 during 2020.  The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Had there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more past due would have resulted in increased reserves and/or charge-offs. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

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

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

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

Goodwill and Intangible Assets

The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2020 and 2019, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $51,090,000 and $52,536,000, and the Company recognized $1,445,000, $1,446,000 and $1,083,000 of amortization expense on the intangible assets for the twelve months ended December 31, 2020, 2019, and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,717,000 and $5,758,000 were outstanding at December 31, 2020 and 2019, and of which $3,041,000, $3,289,000 and $3,339,000 were amortized to interest income for the twelve months ended December 31, 2020, 2019, and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2020 and 2019, who concluded there was no impairment on the Bank and on the RPAC intangible asset.

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

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Brand-related intellectual property

 

$

18,974

 

 

$

20,075

 

Home improvement contractor relationships

 

 

5,951

 

 

 

6,296

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets

 

$

51,090

 

 

$

52,536

 

 

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $412,000, $418,000, and $422,000 for the years ended December 31, 2020, 2019, and 2018.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2,558,000, $2,348,000, and $1,864,000 for the years ended December 31, 2020, 2019, and 2018, recorded as interest expense. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the Company’s balance sheet for all of these purposes were $5,805,000 and $5,105,000 at December 31, 2020 and 2019.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.

Sponsorship and Race Winnings

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

Earnings (Loss) Per Share (EPS)

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

 

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share data)

 

2020

 

 

2019

 

 

2018

 

Net loss/net increase in net assets resulting from

   operations available to common stockholders

 

$

(34,783

)

 

$

(1,762

)

 

$

(25,046

)

Weighted average common shares outstanding applicable

   to basic EPS

 

 

24,445,452

 

 

 

24,342,979

 

 

 

24,214,978

 

Effect of dilutive stock options

 

 

—

 

 

 

—

 

 

 

—

 

Effect of restricted stock grants

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,445,452

 

 

 

24,342,979

 

 

 

24,214,978

 

Basic loss per share

 

$

(1.42

)

 

$

(0.07

)

 

$

(1.03

)

Diluted loss per share

 

 

(1.42

)

 

 

(0.07

)

 

 

(1.03

)

 

Potentially dilutive common shares excluded from the above calculations aggregated 934,003, 462,180, and 100,000 shares as of December 31, 2020, 2019, and 2018.

Stock Compensation

The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income/ net increase in net assets resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income/net increase net assets resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

During 2020, 2019, and 2018, the Company issued 229,408, 216,148, and 101,010 restricted shares of stock-based compensation awards, issued 444,557, 449,450, and 39,000 shares of other stock-based compensation awards, and issued 47,156, 26,040, and 0 of restricted share units of stock based compensation awards, and recognized $2,030,000, $1,221,000, and $576,000, or $0.08, $0.05, and $0.02, per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2020, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $2,405,000, which is expected to be recognized over the next 16 quarters. See Note 9 for additional details.

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2020, the Bank’s Tier 1 leverage ratio was 16.93%. The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

 

 

Regulatory

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

Minimum

 

 

Well-Capitalized

 

 

December 31, 2020

 

 

December 31, 2019

 

Common equity tier 1 capital

 

 

—

 

 

 

—

 

 

$

148,507

 

 

$

158,187

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

217,295

 

 

 

226,975

 

Total capital

 

 

—

 

 

 

—

 

 

 

233,460

 

 

 

241,842

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,283,664

 

 

 

1,172,866

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,243,783

 

 

 

1,144,337

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.9

%

 

 

19.4

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

11.9

 

 

 

13.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.5

 

 

 

19.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.8

 

 

 

21.1

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

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

(3)

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

In the table above, the minimum risk-based ratios as of December 31, 2020 and 2019 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 2020 and 2019.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates

are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.

v3.20.4
Investment Securities
 12 Months Ended
Dec. 31, 2020
Schedule Of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

Fixed maturity securities available for sale at December 31, 2020 and 2019 consisted of the following:

 

December 31, 2020

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

34,929

 

 

$

1,495

 

 

$

(45

)

 

$

36,379

 

State and municipalities

 

 

10,226

 

 

 

189

 

 

 

(2

)

 

 

10,413

 

Total

 

$

45,155

 

 

$

1,684

 

 

$

(47

)

 

$

46,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

36,335

 

 

$

411

 

 

$

(112

)

 

$

36,634

 

State and municipalities

 

 

12,279

 

 

 

186

 

 

 

(101

)

 

 

12,364

 

Total

 

$

48,614

 

 

$

597

 

 

$

(213

)

 

$

48,998

 

 

The amortized cost and estimated market value of investment securities as of December 31, 2020 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

25

 

 

$

25

 

Due after one year through five years

 

 

12,485

 

 

 

12,956

 

Due after five years through ten years

 

 

14,499

 

 

 

15,214

 

Due after ten years

 

 

18,146

 

 

 

18,597

 

Total

 

$

45,155

 

 

$

46,792

 

 

 

The following tables show information pertaining to securities with gross unrealized losses at December 31, 2020 and 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2020

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(45

)

 

$

4,028

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

196

 

Total

 

$

(45

)

 

$

4,028

 

 

$

(2

)

 

$

196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2019

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(74

)

 

$

8,291

 

 

$

(38

)

 

$

4,939

 

State and municipalities

 

 

(17

)

 

 

2,099

 

 

 

(84

)

 

 

2,739

 

Total

 

$

(91

)

 

$

10,390

 

 

$

(122

)

 

$

7,678

 

 

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

v3.20.4
Loans and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2020 and 2019.

 

 

 

As of December 31, 2020

 

 

As of December 31, 2019

 

(Dollars in thousands)

 

Amount

 

 

As a

Percent of

Gross Loans

 

 

Amount

 

 

As a

Percent of

Gross Loans

 

Recreation

 

$

792,686

 

 

 

65

%

 

$

713,332

 

 

 

62

%

Home improvement

 

 

334,033

 

 

 

27

 

 

 

247,324

 

 

 

21

 

Commercial

 

 

65,327

 

 

 

5

 

 

 

69,767

 

 

 

6

 

Medallion

 

 

37,768

 

 

 

3

 

 

 

130,432

 

 

 

11

 

Strategic partnership

 

 

24

 

 

 

—

 

 

 

—

 

 

 

—

 

Total gross loans

 

 

1,229,838

 

 

 

100

%

 

 

1,160,855

 

 

 

100

%

Allowance for loan losses

 

 

(57,548

)

 

 

 

 

 

 

(46,093

)

 

 

 

 

Total net loans

 

$

1,172,290

 

 

 

 

 

 

$

1,114,762

 

 

 

 

 

 

The following tables show the activity of the gross loans for the twelve months ended December 31, 2020 and 2019.

Twelve Months Ended December 31, 2020

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

—

 

 

$

1,160,855

 

Loan originations

 

 

294,885

 

 

 

193,098

 

 

 

7,575

 

 

 

—

 

 

 

1,663

 

 

 

497,221

 

Principal payments, sales, and maturities

 

 

(187,989

)

 

 

(105,813

)

 

 

(13,183

)

 

 

(13,207

)

 

 

(1,639

)

 

 

(321,831

)

Charge-offs, net

 

 

(14,457

)

 

 

(1,229

)

 

 

(28

)

 

 

(42,648

)

 

 

—

 

 

 

(58,362

)

Transfer to loan collateral in process of foreclosure, net

 

 

(14,871

)

 

 

—

 

 

 

—

 

 

 

(32,383

)

 

 

—

 

 

 

(47,254

)

Amortization of origination costs

 

 

(7,809

)

 

 

1,910

 

 

 

8

 

 

 

(131

)

 

 

—

 

 

 

(6,022

)

Amortization of loan premium

 

 

(191

)

 

 

(320

)

 

 

—

 

 

 

(2,531

)

 

 

—

 

 

 

(3,042

)

FASB origination costs, net

 

 

9,786

 

 

 

(937

)

 

 

—

 

 

 

36

 

 

 

—

 

 

 

8,885

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,188

 

 

 

—

 

 

 

—

 

 

 

1,188

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

—

 

 

 

(1,800

)

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

 

 

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Total

 

Gross loans – December 31, 2018

 

$

587,038

 

 

$

183,155

 

 

$

64,083

 

 

$

183,606

 

 

$

1,017,882

 

Loan originations

 

 

301,403

 

 

 

142,112

 

 

 

18,578

 

 

 

—

 

 

 

462,093

 

Principal payments, sales, and maturities

 

 

(146,873

)

 

 

(76,157

)

 

 

(13,553

)

 

 

(15,070

)

 

 

(251,653

)

Charge-offs, net

 

 

(17,419

)

 

 

(786

)

 

 

(819

)

 

 

(18,664

)

 

 

(37,688

)

Transfer to loan collateral in process of foreclosure, net

 

 

(14,512

)

 

 

—

 

 

 

—

 

 

 

(16,836

)

 

 

(31,348

)

Amortization of origination costs

 

 

(6,428

)

 

 

1,561

 

 

 

34

 

 

 

(119

)

 

 

(4,952

)

Amortization of loan premium

 

 

(247

)

 

 

(416

)

 

 

—

 

 

 

(2,626

)

 

 

(3,289

)

FASB origination costs, net

 

 

10,370

 

 

 

(2,145

)

 

 

610

 

 

 

141

 

 

 

8,976

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

834

 

 

 

—

 

 

 

834

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

1,160,855

 

 

The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2020 and 2019.

 

 

 

Twelve Months Ended

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Allowance for loan losses – beginning balance

 

$

46,093

 

 

$

36,395

 

Charge-offs

 

 

 

 

 

 

 

 

Recreation

 

 

(23,543

)

 

 

(24,433

)

Home improvement

 

 

(2,909

)

 

 

(2,504

)

Commercial

 

 

(31

)

 

 

(819

)

Medallion

 

 

(49,361

)

 

 

(22,205

)

Total charge-offs

 

 

(75,844

)

 

 

(49,961

)

Recoveries

 

 

 

 

 

 

 

 

Recreation

 

 

9,086

 

 

 

7,014

 

Home improvement

 

 

1,680

 

 

 

1,718

 

Commercial

 

 

3

 

 

 

—

 

Medallion

 

 

6,713

 

 

 

3,541

 

Total recoveries

 

 

17,482

 

 

 

12,273

 

Net charge-offs (1)

 

 

(58,362

)

 

 

(37,688

)

Provision for loan losses

 

 

69,817

 

 

 

47,386

 

Allowance for loan losses – ending balance (2) (3)

 

$

57,548

 

 

$

46,093

 

 

 

(1)

As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company.

(2)

As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.   

(3)

As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.

The following tables set forth the allowance for loan losses by type as of December 31, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

 

Allowance as

a Percent of

Nonaccrual

 

Recreation

 

$

27,348

 

 

 

48

%

 

 

3.45

%

 

 

378.20

%

Home improvement

 

 

5,157

 

 

 

9

 

 

 

1.54

 

 

NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,043

 

 

 

43

 

 

 

66.31

 

 

 

68.01

 

Total

 

$

57,548

 

 

 

100

%

 

 

4.68

%

 

 

93.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

 

Allowance as

a Percent of

Nonaccrual

 

Recreation

 

$

18,075

 

 

 

39

%

 

 

2.53

%

 

 

228.25

%

Home improvement

 

 

2,608

 

 

 

6

 

 

 

1.05

 

 

NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,410

 

 

 

55

 

 

 

19.48

 

 

 

389.84

 

Total

 

$

46,093

 

 

 

100

%

 

 

3.97

%

 

 

174.04

%

 

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

 

 

 

December 31,

 

(Dollars in thousands)

 

2020

 

 

2019

 

 

2018

 

Total nonaccrual loans

 

$

61,767

 

 

$

26,484

 

 

$

34,877

 

Interest foregone for the year

 

 

3,311

 

 

 

2,152

 

 

 

1,153

 

Amount of foregone interest applied to principal

   for the year

 

 

602

 

 

 

254

 

 

 

535

 

Interest foregone life-to-date

 

 

5,252

 

 

 

2,744

 

 

 

1,952

 

Amount of foregone interest applied to principal

   life-to-date

 

 

792

 

 

 

471

 

 

 

1,214

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

5

%

 

 

2

%

 

 

3

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

93

 

 

 

174

 

 

 

104

 

 

 

The following tables present the performance status of loans as of December 31, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

785,047

 

 

$

7,639

 

 

$

792,686

 

 

 

0.96

%

Home improvement

 

 

333,862

 

 

 

171

 

 

 

334,033

 

 

 

0.05

 

Commercial

 

 

48,731

 

 

 

16,596

 

 

 

65,327

 

 

 

25.40

 

Medallion

 

 

—

 

 

 

37,768

 

(1)

 

37,768

 

 

 

100.00

 

Strategic partnership

 

 

24

 

 

 

—

 

 

 

24

 

 

 

0.00

 

Total

 

$

1,167,664

 

 

$

62,174

 

(2)

$

1,229,838

 

 

 

5.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

705,070

 

 

$

8,262

 

 

$

713,332

 

 

 

1.16

%

Home improvement

 

 

247,139

 

 

 

185

 

 

 

247,324

 

 

 

0.07

 

Commercial

 

 

57,905

 

 

 

11,862

 

 

 

69,767

 

 

 

17.00

 

Medallion

 

 

88,248

 

 

 

42,184

 

 

 

130,432

 

 

 

32.34

 

Total

 

$

1,098,362

 

 

$

62,493

 

(2)

$

1,160,855

 

 

 

5.38

%

 

 

(1)

Includes medallion loan premiums of $1,615 as of December 31, 2020.

 

(2)

Includes $408 and $36,009 of TDRs as of December 31, 2020 and 2019, which are accruing and paying currently, but which are considered nonperforming loans under GAAP.

 

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

The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2020 and 2019, all of which had an allowance recorded against the principal balance.

 

 

 

December 31, 2020

 

 

December 31, 2019

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

7,639

 

 

$

7,639

 

 

$

264

 

 

$

8,262

 

 

$

8,262

 

 

$

329

 

Home improvement

 

 

171

 

 

 

171

 

 

 

3

 

 

 

185

 

 

 

185

 

 

 

3

 

Commercial

 

 

16,596

 

 

 

16,600

 

 

 

—

 

 

 

11,862

 

 

 

11,867

 

 

 

—

 

Medallion

 

 

37,768

 

 

 

38,368

 

 

 

25,043

 

 

 

42,184

 

 

 

42,650

 

 

 

14,824

 

Total nonperforming loans with an allowance

 

$

62,174

 

 

$

62,778

 

 

$

25,310

 

 

$

62,493

 

 

$

62,964

 

 

$

15,156

 

 

 

 

For the Twelve Months Ended

 

 

 

December 31, 2020

 

December 31, 2019

 

(Dollars in thousands)

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

 

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

7,949

 

 

$

560

 

 

 

$

8,317

 

 

$

471

 

Home improvement

 

 

172

 

 

 

2

 

 

 

 

185

 

 

 

—

 

Commercial

 

 

16,884

 

 

 

123

 

 

 

 

7,886

 

 

 

392

 

Medallion

 

 

40,928

 

 

 

465

 

 

 

 

44,721

 

 

 

346

 

Total nonperforming loans with an allowance

 

$

65,933

 

 

$

1,150

 

 

 

$

61,109

 

 

$

1,209

 

 

 

The following tables show the aging of all loans as of December 31, 2020 and 2019.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2020

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

22,058

 

 

$

7,582

 

 

$

5,343

 

 

$

34,983

 

 

$

732,391

 

 

$

767,374

 

 

$

—

 

Home improvement

 

 

813

 

 

 

218

 

 

 

170

 

 

 

1,201

 

 

 

335,684

 

 

 

336,885

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

75

 

 

 

75

 

 

 

65,265

 

 

 

65,340

 

 

 

—

 

Medallion

 

 

2,019

 

 

 

973

 

 

 

1,290

 

 

 

4,282

 

 

 

31,871

 

 

 

36,153

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

 

 

24

 

 

 

—

 

Total

 

$

24,890

 

 

$

8,773

 

 

$

6,878

 

 

$

40,541

 

 

$

1,165,235

 

 

$

1,205,776

 

 

$

—

 

 

(1)

Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2019

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

27,357

 

 

$

8,426

 

 

$

5,800

 

 

$

41,583

 

 

$

648,227

 

 

$

689,810

 

 

$

—

 

Home improvement

 

931

 

 

427

 

 

184

 

 

 

1,542

 

 

 

249,288

 

 

 

250,830

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

107

 

 

 

107

 

 

 

69,660

 

 

 

69,767

 

 

 

—

 

Medallion

 

 

12,491

 

 

 

2,118

 

 

 

2,572

 

 

 

17,181

 

 

 

109,106

 

 

 

126,287

 

 

 

—

 

Total

 

$

40,779

 

 

$

10,971

 

 

$

8,663

 

 

$

60,413

 

 

$

1,076,281

 

 

$

1,136,694

 

 

$

—

 

 

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

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 327% and 190% as of December 31, 2020 and 2019.

 

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2020.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Recreation loans

 

 

77

 

 

 

1,053

 

 

 

749

 

Commercial loans

 

 

1

 

 

 

1,821

 

 

 

1,821

 

Medallion loans

 

 

59

 

 

 

33,505

 

 

 

33,505

 

 

During the twelve months ended December 31, 2020, five medallion loans modified as troubled debt restructurings were in default and had an investment value of $738,000 as of December 31, 2020, net of $331,000 of an allowance for loan loss, 43 recreation loans modified as troubled debt restructuring were in default and had an investment value of $433,000 as of December 31, 2020, net of a $15,000 allowance for loan losses, and no commercial loans modified as trouble debt restructurings were in default.

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2019.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Recreation loans

 

 

294

 

 

$

4,433

 

 

$

2,831

 

Medallion loans

 

 

71

 

 

 

31,376

 

 

 

31,385

 

 

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

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2020 and 2019.

 

Twelve Months Ended December 31, 2020

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

Transfer from loans, net

 

 

14,871

 

 

 

32,403

 

 

 

47,274

 

Sales

 

 

(7,512

)

 

 

(300

)

 

 

(7,812

)

Cash payments received

 

 

—

 

 

 

(5,687

)

 

 

(5,687

)

Collateral valuation adjustments

 

 

(7,403

)

 

 

(24,523

)

 

 

(31,926

)

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

 

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2018

 

$

1,503

 

 

$

47,992

 

 

$

49,495

 

Transfer from loans, net

 

 

14,512

 

 

 

16,836

 

 

 

31,348

 

Sales

 

 

(7,591

)

 

 

(1,515

)

 

 

(9,106

)

Cash payments received

 

 

—

 

 

 

(7,697

)

 

 

(7,697

)

Collateral valuation adjustments

 

 

(6,948

)

 

 

(4,381

)

 

 

(11,329

)

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

v3.20.4
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments
 12 Months Ended
Dec. 31, 2020
Schedule Of Investments [Abstract]  
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

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

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

 

(Dollars in thousands)

 

Medallion

Loans

 

 

Commercial

Loans

 

 

Investments

in

Subsidiaries

 

 

Equity

Investments

 

 

Investments

Other Than

Securities

 

 

Total

 

Balance December 31, 2017

 

$

(20,338

)

 

$

(513

)

 

$

158,920

 

 

$

3,121

 

 

$

(1,490

)

 

$

139,700

 

Net change in unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appreciation on investments

 

 

—

 

 

 

—

 

 

 

38,795

 

 

 

(998

)

 

 

—

 

 

 

37,797

 

Depreciation on investments

 

 

(38,170

)

 

 

18

 

 

 

—

 

 

 

—

 

 

 

(1,915

)

 

 

(40,067

)

Reversal of unrealized appreciation

   (depreciation) related to realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Losses on investments

 

 

34,747

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34,747

 

Balance March 31, 2018

 

$

(23,761

)

 

$

(495

)

 

$

197,715

 

 

$

2,123

 

 

$

(3,405

)

 

$

172,177

 

 

 

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

 

 

 

 

 

 

(Dollars in thousands)

 

Three Months Ended

March 31, 2018

 

Net change in unrealized appreciation

   (depreciation) on investments

 

 

 

 

Unrealized appreciation

 

$

(998

)

Unrealized depreciation

 

 

(38,152

)

Net unrealized appreciation on investments in

   Medallion Bank and other controlled subsidiaries

 

 

29,115

 

Realized gains

 

 

—

 

Realized losses

 

 

34,747

 

Net unrealized losses on investments other than

   securities and other assets

 

 

(1,915

)

Total

 

$

22,797

 

Net realized gains (losses) on investments

 

 

 

 

Realized gains

 

$

—

 

Realized losses

 

 

(34,747

)

Other gains

 

 

—

 

Direct charge-offs

 

 

2

 

Total

 

$

(34,745

)

 
v3.20.4
Funds Borrowed
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Funds Borrowed

(6) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows.

 

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

Thereafter

 

 

December 31, 2020(1)

 

 

December 31, 2019(1)

 

 

Interest

Rate (2)

 

Deposits (3)

 

$

393,835

 

 

$

241,605

 

 

$

190,387

 

 

$

120,040

 

 

$

121,955

 

 

$

—

 

 

$

1,067,822

 

 

$

954,245

 

 

 

1.71

%

Retail and privately placed

   notes (4)

 

 

33,625

 

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

33,600

 

 

 

103,225

 

 

 

69,625

 

 

 

8.25

%

SBA debentures and

   borrowings

 

 

22,508

 

 

 

—

 

 

 

5,000

 

 

 

5,000

 

 

 

14,000

 

 

 

21,500

 

 

 

68,008

 

 

 

71,746

 

 

 

3.36

%

Preferred securities (4)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.35

%

Notes payable to banks

 

 

30,701

 

 

 

280

 

 

 

280

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,261

 

 

 

33,183

 

 

 

3.67

%

Other borrowings

 

 

500

 

 

 

7,442

 

 

 

—

 

 

 

—

 

 

 

747

 

 

 

—

 

 

 

8,689

 

 

 

7,794

 

 

 

1.91

%

Total

 

$

481,169

 

 

$

249,327

 

 

$

195,667

 

 

$

161,040

 

 

$

136,702

 

 

$

88,100

 

 

$

1,312,005

 

 

$

1,169,593

 

 

 

2.37

%

 

(1)

Excludes deferred financing costs of $5,805 and $5,105 as of December 31, 2020 and 2019.

(2)

Weighted average contractual rate as of December 31, 2020.

(3)

Balance excludes $250 of strategic partner reserve deposits as of December 31, 2020.

(4)

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

 

(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. The Bank did not have any individual time deposits greater than $100,000 as of December 31, 2020. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions, which as of December 2020, had $995,000 in listing services deposits. The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of December 31, 2020.

 

(Dollars in  thousands)

 

December 31, 2020

 

Three months or less

 

$

125,766

 

Over three months through six months

 

 

117,602

 

Over six months through one year

 

 

150,467

 

Over one year

 

 

673,987

 

Total deposits

 

$

1,067,822

 

 

 

(B) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year 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 extended to the maturity date of the Company’s publicly-traded 9.000% Senior Notes, which is currently April 15, 2021; or the Public Debt, provided, however, that (1) upon the Company’s refinancing of such senior notes, the maturity date shall mean the earlier of (a) the maturity date of such refinanced debt or (b) April 30, 2024, and (2) upon the Company’s repayment of such senior notes without refinancing, the maturity date shall mean April 30, 2024. As of December 31, 2020, $175,485,000 of commitments had been fully utilized, there were $25,000,000 of commitments available, and $68,008,000 was outstanding, including $14,008,000 under the SBA Note.

On July 31, 2020, MCI accepted a commitment from the SBA for $25,000,000 in debenture financing with a ten-year term. MCI can draw funds under the commitment, in whole or in part, until September 24, 2024. In connection with the commitment, MCI paid the SBA a leverage fee of $250,000, with the remaining $500,000 of the fee to be paid pro rata as MCI draws under the commitment. Of the committed amount, $8,500,000 has been reserved to replace $8,500,000 of debentures which mature in 2021. The remaining balance of $16,500,000 is drawable upon the infusion of $8,250,000 of capital from either the capitalization of retained earnings or capital infusion from the Company. As of December 31, 2020, none of the commitments had been drawn.

(C) NOTES PAYABLE TO BANKS

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

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2020.

 

(Dollars in thousands)

Borrower

 

# of

Lenders/

Notes

 

Note

Dates

 

Maturity

Dates

 

Type

 

Note

Amounts

 

 

Balance

Outstanding at

December 31,

2020

 

 

Payment

 

Average

Interest

Rate at

December 31,

2020

 

 

Interest Rate

Index(1)

Medallion

  Financial Corp.

 

5/5

 

4/11 - 8/14

 

2/21 - 9/21

 

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

 

$

19,734

 

(2)

$

19,734

 

 

Interest only(3)

 

 

3.75

%

 

Various(3)

Medallion

   Chicago

 

2/23

 

11/11 - 12/11

 

2/21

 

Term loans secured by owned Chicago taxi medallions (4)

 

 

18,449

 

 

 

10,687

 

 

$134 of principal & interest paid monthly

 

 

3.50

%

 

N/A

Medallion

   Funding

 

1/1

 

11/18

 

12/23

 

Term loan unsecured

 

 

1,400

 

 

 

840

 

 

$70 principal & interest paid quarterly

 

 

4.00

%

 

N/A

 

 

 

 

 

 

 

 

 

 

$

39,583

 

 

$

31,261

 

 

 

 

 

 

 

 

 

 

(1)

At December 31, 2020, 30 day LIBOR was 0.14%, 360 day LIBOR was 0.34%, and the prime rate was 3.25%.

(2)

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

(3)

Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging from $12 to $85.

(4)

Guaranteed by the Company.

On July 6, 2019, the Company paid $10,819,000 at maturity in satisfaction of all its outstanding obligations under one of its credit facilities. In connection with this payment, the Company obtained a waiver from one of its other lenders, with a term note of $1,839,000, of certain resulting repayment and other obligations, which waiver expires on June 15, 2021.

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

In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. See Note 20 for more information.

As a result of the cash flow shortages due to the slowdown in the taxi industry resulting from the COVID-19 pandemic, the Company received 180 day payment deferrals that terminated in August and modifications to provide for interest only payments from September through the end of 2020 for the notes payable to banks described above. Beginning in 2021, the Company returned to repaying the principal balance along with interest.

(D) RETAIL AND PRIVATELY PLACED NOTES

In February 2021, the Company completed a private placement to certain institutional investors of $25,000,000 aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3,250,000 principal amount of such notes was issued to certain institutional investors. The Company will use the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt.

In December 2020, the Company completed a private placement to certain institutional investors of $33,600,000 aggregate principal amount of 7.50% unsecured senior notes due December 2027, with interest payable semiannually. In February and March 2021, an additional $8,500,000 principal amount of such notes was issued to certain institutional investors. The Company will use the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt.

In March 2019, the Company completed a private placement to certain institutional investors of $30,000,000 aggregate principal amount of 8.25% unsecured senior notes due 2024, with interest payable semiannually. The Company used the net proceeds from the

offering for general corporate purposes, including repaying certain borrowings under its notes payable to banks at a discount, which led to a gain of $4,145,000 in the 2019 first quarter. In August 2019, an additional $6,000,000 principal amount of such notes was issued to certain institutional investors.

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

(E) PREFERRED SECURITIES

In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (0.24% at December 31, 2020) plus 2.13%. The notes mature in September 2037 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, 2020, $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 12 for more details). At December 31, 2020, the total outstanding on these notes was $7,442,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2022. Additionally, RPAC has a short term promissory note to an unrelated party, for $500,000 due on December 31, 2021.

On June 17, 2020, RPAC was approved for and received a Paycheck Protection Program, or PPP, loan under the CARES Act. As of December 31, 2020, the total outstanding balance of such loan was $747,000 at a 1.00% annual interest rate due in five years. Under the terms of the note, RPAC could be granted forgiveness for all or a portion of the balance if the loan proceeds are used in accordance with the requirements set forth in the PPP. As of December 31, 2020, RPAC had not applied for forgiveness of this loan.

(G) COVENANT COMPLIANCE

Certain of the Company’s debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth. The Company was in compliance with such restrictions as of December 31, 2020.

v3.20.4
Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

(7) LEASES

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

The following table presents the operating lease costs and additional information for the twelve months ended December 31, 2020 and 2019.

 

(Dollars in  thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Operating lease costs

 

$

2,384

 

 

$

2,184

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

2,821

 

 

 

2,419

 

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

 

 

251

 

 

 

2,413

 

The following table presents the breakout of the operating leases as of December 31, 2020 and 2019.

 

 

(Dollars in  thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Operating lease right-of-use assets

 

$

11,737

 

 

$

13,482

 

Other current liabilities

 

 

2,004

 

 

 

2,085

 

Operating lease liabilities

 

 

11,018

 

 

 

12,738

 

Total operating lease liabilities

 

 

13,022

 

 

 

14,823

 

Weighted average remaining lease term

 

6.4 years

 

 

7.3 years

 

Weighted average discount rate

 

5.54%

 

 

 

5.54

%

 

At December 31, 2020, maturities of the lease liabilities were as follows.

 

(Dollars in  thousands)

 

 

 

 

2021

 

$

2,474

 

2022

 

 

2,406

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

Thereafter

 

 

3,521

 

Total lease payments

 

 

15,520

 

Less imputed interest

 

 

2,498

 

Total operating lease liabilities

 

$

13,022

 

Occupancy expense was $2,833,000, $2,436,000, and $2,287,000 for the years ended December 31, 2020, 2019, and 2018.

v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

(8) INCOME TAXES

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

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of December 31, 2020 and 2019.

 

(Dollars in thousands)

 

2020

 

 

2019

 

Goodwill and other intangibles

 

$

(44,799

)

 

$

(45,595

)

Provision for loan losses

 

 

19,556

 

 

 

19,198

 

Net operating loss carryforwards (1)

 

 

30,493

 

 

 

22,607

 

Accrued expenses, compensation, and other assets

 

 

1,174

 

 

 

1,701

 

Unrealized gains on other investments

 

 

(6,769

)

 

 

(6,790

)

Total deferred tax liability

 

 

(345

)

 

 

(8,879

)

Valuation allowance

 

 

(462

)

 

 

(462

)

Deferred tax liability, net

 

 

(807

)

 

 

(9,341

)

Taxes receivable

 

 

1,757

 

 

 

1,516

 

Net deferred and other tax liabilities

 

$

950

 

 

$

(7,825

)

 

(1)

As of December 31, 2020, the Company and its subsidiaries had an estimated $124,150 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $30,031 as of December 31, 2020.

The components of our tax (provision) benefit for the years ended December 31, 2020, 2019, and 2018 were as follows.

 

(Dollars in thousands)

 

2020

 

 

2019

 

 

2018

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

 

$

(2,797

)

State

 

 

(260

)

 

 

519

 

 

 

(1,078

)

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

7,702

 

 

 

(489

)

 

 

5,270

 

State

 

 

2,632

 

 

 

(371

)

 

 

(1,464

)

Net (provision) benefit for income taxes

 

$

10,074

 

 

$

(341

)

 

$

(69

)

 

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2020, 2019, and 2018.

 

(Dollars in thousands)

 

2020

 

 

2019

 

 

2018

 

Statutory Federal income tax (provision) benefit at 21%

 

$

7,766

 

 

$

(642

)

 

$

4,935

 

State and local income taxes, net of federal income

   tax benefit

 

 

1,518

 

 

 

(120

)

 

 

440

 

Revaluation of net operating losses

 

 

1,228

 

 

 

380

 

 

 

—

 

Change in effective state income tax rate

 

 

(145

)

 

 

(891

)

 

 

(2,564

)

Change in state income tax accruals

 

 

(260

)

 

 

640

 

 

 

—

 

Income attributable to non-controlling interest

 

 

460

 

 

 

309

 

 

 

—

 

Non deductible expenses

 

 

(453

)

 

 

—

 

 

 

—

 

Utilization of carry forwards

 

 

—

 

 

 

—

 

 

 

(910

)

Appreciation of Medallion Bank

 

 

—

 

 

 

—

 

 

 

(1,974

)

Other

 

 

(40

)

 

 

(17

)

 

 

4

 

Total income tax (provision) benefit

 

$

10,074

 

 

$

(341

)

 

$

(69

)

 

 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of December 31, 2020.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2017 through the present are the more significant filings that are open for examination.

v3.20.4
Stock Options and Restricted Stock
 12 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Options and Restricted Stock

(9) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. A total of 2,210,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 862,069 remained issuable as of December 31, 2020. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, or the 2015 Restricted Stock Plan, on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provided for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock were issuable under the 2015 Restricted Stock Plan, and 241,919 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was

approved, and these remaining shares were rolled into the 2018 Plan. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever occurs first.

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

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

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

Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2020, 951,669 options on the Company’s common stock were outstanding under the Company’s plans, of which 178,307 options were exercisable. Additionally, there were 416,140 unvested shares of the Company’s common stock outstanding and 62,780 unvested restricted share units under the Company’s restricted stock plans.

The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $3.09, $3.10, and $1.06 per share for the years ended December 31, 2020, 2019, and 2018. The following assumption categories are used to determine the value of any option grants.

 

 

 

Year ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Risk free interest rate

 

 

1.23

%

 

 

2.29

%

 

 

2.82

%

Expected dividend yield

 

 

—

 

 

 

0.66

 

 

 

4.86

 

Expected life of option in years (1)

 

 

6.25

 

 

 

6.25

 

 

 

6.00

 

Expected volatility (2)

 

 

51.03

%

 

 

49.03

%

 

 

30.00

%

 

(1)

Expected life is calculated using the simplified method.

(2)

We determine our expected volatility based on our historical volatility.

 

The following table presents the activity for the stock option programs for the years ended December 31, 2020, 2019, and 2018.

 

 

 

Number of

Options

 

 

Exercise

Price Per

Share

 

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2017

 

 

320,626

 

 

$2.14-13.84

 

 

$

8.78

 

Granted

 

 

39,000

 

 

5.27-5.58

 

 

 

5.46

 

Cancelled

 

 

(214,960

)

 

9.22-9.24

 

 

 

9.22

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2018

 

 

144,666

 

 

2.14-13.84

 

 

 

7.23

 

Granted

 

 

449,450

 

 

5.21-7.25

 

 

 

6.61

 

Cancelled

 

 

(44,076

)

 

6.55-13.84

 

 

 

9.00

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

550,040

 

 

2.14-13.53

 

 

 

6.58

 

Granted

 

 

444,557

 

 

4.89-6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

2.22-13.53

 

 

 

6.91

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020 (2)

 

 

951,669

 

 

$2.14-12.55

 

 

$

6.41

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

81,889

 

 

$2.14-13.84

 

 

$

9.25

 

December 31, 2019

 

 

62,778

 

 

2.14-13.53

 

 

 

7.60

 

December 31, 2020 (2)

 

 

178,307

 

 

2.14-12.55

 

 

 

6.33

 

 

(1)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2020, 2019, and 2018.

(2)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020.

The following table presents the activity for the restricted stock programs for the years ended December 31, 2020, 2019, and 2018.

 

 

 

Number of

Shares

 

 

Grant

Price Per

Share

 

Weighted

Average

Grant Price

 

Outstanding at December 31, 2017

 

 

408,582

 

 

$2.06-10.38

 

$

3.45

 

Granted

 

 

101,010

 

 

3.93-5.27

 

 

4.41

 

Cancelled

 

 

(9,737

)

 

3.93-9.08

 

 

4.66

 

Vested (1)

 

 

(308,940

)

 

2.06-10.38

 

 

3.35

 

Outstanding at December 31, 2018

 

 

190,915

 

 

2.14-5.27

 

 

4.06

 

Granted

 

 

216,148

 

 

4.80-7.25

 

 

6.59

 

Cancelled

 

 

(3,946

)

 

3.93-6.55

 

 

4.97

 

Vested (1)

 

 

(118,238

)

 

2.06-4.80

 

 

3.89

 

Outstanding at December 31, 2019

 

 

284,879

 

 

3.95-7.25

 

 

6.01

 

Granted

 

 

229,408

 

 

4.89-6.68

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

3.95-7.25

 

 

6.93

 

Vested (1)

 

 

(89,392

)

 

3.95-6.55

 

 

5.37

 

Outstanding at December 31, 2020 (2)

 

 

416,140

 

 

$4.39-7.25

 

$

6.24

 

 

(1)

The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018.

(2)

The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020.

During the twelve months ended December 31, 2020, the Company granted 47,156 restricted stock units that vest on June 19, 2021 with a grant price of $3.16. Unitholders have the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A, which was done for 16,524 units. The remaining 10,416 units vested and settled.

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2020.

 

 

 

Number of

Options

 

 

Exercise Price

Per Share

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2019

 

 

487,262

 

 

$2.14-7.25

 

$

6.45

 

Granted

 

 

444,557

 

 

4.89-6.68

 

 

6.24

 

Cancelled

 

 

(20,630

)

 

6.55-7.25

 

 

6.76

 

Vested

 

 

(137,827

)

 

2.14-6.55

 

 

6.05

 

Outstanding at December 31, 2020

 

 

773,362

 

 

$4.89-7.25

 

$

6.42

 

 

The intrinsic value of the options vested was $45,000, $43,000, and $32,000 in 2020, 2019, and 2018.

v3.20.4
Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

(10) SEGMENT REPORTING

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

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank in all fifty states, with the highest concentrations in Texas, Florida, and California, at 15%, 10%, and 9% of loans outstanding and with no other states over 9% as of December 31, 2020. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 60%, 19%, and 12% of the segment portfolio as of December 31, 2020. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, windows, and solar panels, at 27%, 24%, 13%, and 8% of total home improvement loans outstanding, and with no other product lines over 8% as of December 31, 2020. The commercial lending segment focuses on enterprise wide industries, including manufacturing and various other industries, in which 53% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of medallions, taxis, and related assets, of which 89% were in New York City as of December 31, 2020.

In addition, our non-operating segments include RPAC, which is a race car team, and our corporate and other investments segment, which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. As a result of COVID-19, the race season had been suspended from March 15, 2020 through May 17, 2020. As states began to reopen, NASCAR resumed races and completed all races scheduled. Commencing with the second quarter 2020, the Bank began issuing loans related to the new strategic partnership business, which is currently included within the corporate and other investment segment due to its small size.

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

 

 

The following tables present segment data as of and for the twelve months ended December 31, 2020 and 2019, and as of and for the nine months ended December 31, 2018.

 

Year Ended December 31, 2020

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

110,706

 

 

$

27,273

 

 

$

6,926

 

 

$

(1,518

)

 

$

—

 

 

$

1,575

 

 

$

144,962

 

Total interest expense

 

 

13,013

 

 

 

5,699

 

 

 

2,538

 

 

 

3,610

 

 

 

163

 

 

 

9,128

 

 

 

34,151

 

Net interest income (loss)

 

 

97,693

 

 

 

21,574

 

 

 

4,388

 

 

 

(5,128

)

 

 

(163

)

 

 

(7,553

)

 

 

110,811

 

Provision for loan losses

 

 

23,736

 

 

 

3,778

 

 

 

—

 

 

 

42,276

 

 

 

—

 

 

 

27

 

 

 

69,817

 

Net interest income (loss) after loss provision

 

 

73,957

 

 

 

17,796

 

 

 

4,388

 

 

 

(47,404

)

 

 

(163

)

 

 

(7,580

)

 

 

40,994

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,042

 

 

 

—

 

 

 

20,042

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,366

)

 

 

—

 

 

 

(8,366

)

Other income (expense), net

 

 

(27,341

)

 

 

(9,611

)

 

 

(3,196

)

 

 

(30,366

)

 

 

(7,973

)

 

 

(11,164

)

 

 

(89,651

)

Net income (loss) before taxes

 

 

46,616

 

 

 

8,185

 

 

 

1,192

 

 

 

(77,770

)

 

 

3,540

 

 

 

(18,744

)

 

 

(36,981

)

Income tax (provision) benefit

 

 

(12,004

)

 

 

(2,108

)

 

 

(299

)

 

 

19,520

 

 

 

(889

)

 

 

5,854

 

 

 

10,074

 

Net income (loss) after taxes

 

$

34,612

 

 

$

6,077

 

 

$

893

 

 

$

(58,250

)

 

$

2,651

 

 

$

(12,890

)

 

$

(26,907

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

765,338

 

 

$

328,876

 

 

$

62,037

 

 

$

12,725

 

 

$

—

 

 

$

3,314

 

 

$

1,172,290

 

Total assets

 

 

777,605

 

 

 

340,494

 

 

 

80,622

 

 

 

124,554

 

 

 

33,711

 

 

 

285,425

 

 

 

1,642,411

 

Total funds borrowed

 

 

621,735

 

 

 

272,284

 

 

 

65,924

 

 

 

98,636

 

 

 

8,689

 

 

 

244,987

 

 

 

1,312,255

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.59

%

 

 

2.07

%

 

 

1.07

%

 

 

(33.21

%)

 

 

7.98

%

 

 

(5.06

%)

 

 

(2.16

)%

Return on average equity

 

 

22.93

 

 

 

10.35

 

 

 

5.17

 

 

 

(165.21

)

 

 

(363.66

)

 

 

(23.29

)

 

 

(10.90

)

Interest yield

 

 

14.90

 

 

 

9.66

 

 

 

10.51

 

 

 

(2.11

)

 

N/A

 

 

N/A

 

 

 

11.32

 

Net interest margin

 

 

13.15

 

 

 

7.62

 

 

 

6.66

 

 

 

(7.14

)

 

N/A

 

 

N/A

 

 

 

8.65

 

Reserve coverage

 

 

3.45

 

 

 

1.54

 

 

 

0.00

 

(1)

 

66.31

 

 

N/A

 

 

N/A

 

 

 

4.68

 

Delinquency status(2)

 

 

0.70

 

 

 

0.05

 

 

 

0.11

 

(1)

 

3.57

 

 

N/A

 

 

N/A

 

 

 

0.57

 

Charge-off ratio

 

 

1.95

 

 

 

0.44

 

 

 

0.04

 

(3)

 

59.38

 

 

N/A

 

 

N/A

 

 

 

5.00

 

 

(1)

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

(2)

Loans 90 days or more past due.

(3)

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

 

 

Year Ended December 31, 2019

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

99,463

 

 

$

19,943

 

 

$

7,183

 

 

$

3,665

 

 

$

—

 

 

$

2,308

 

 

$

132,562

 

Total interest expense

 

 

13,304

 

 

 

4,757

 

 

 

2,833

 

 

 

7,962

 

 

 

159

 

 

 

6,030

 

 

 

35,045

 

Net interest income (loss)

 

 

86,159

 

 

 

15,186

 

 

 

4,350

 

 

 

(4,297

)

 

 

(159

)

 

 

(3,722

)

 

 

97,517

 

Provision for loan losses

 

 

28,638

 

 

 

1,598

 

 

 

364

 

 

 

16,331

 

 

 

—

 

 

 

455

 

 

 

47,386

 

Net interest income (loss) after loss provision

 

 

57,521

 

 

 

13,588

 

 

 

3,986

 

 

 

(20,628

)

 

 

(159

)

 

 

(4,177

)

 

 

50,131

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,742

 

 

 

—

 

 

 

18,742

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,996

)

 

 

—

 

 

 

(8,996

)

Other income (expense), net

 

 

(23,490

)

 

 

(7,520

)

 

 

(1,149

)

 

 

(10,493

)

 

 

(6,942

)

 

 

(7,946

)

 

 

(57,540

)

Net income (loss) before taxes

 

 

34,031

 

 

 

6,068

 

 

 

2,837

 

 

 

(31,121

)

 

 

2,645

 

 

 

(12,123

)

 

 

2,337

 

Income tax (provision) benefit

 

 

(8,813

)

 

 

(1,572

)

 

 

(684

)

 

 

7,596

 

 

 

(329

)

 

 

3,461

 

 

 

(341

)

Net income (loss) after taxes

 

$

25,218

 

 

$

4,496

 

 

$

2,153

 

 

$

(23,525

)

 

$

2,316

 

 

$

(8,662

)

 

$

1,996

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

695,257

 

 

$

244,716

 

 

$

66,405

 

 

$

105,022

 

 

$

—

 

 

$

3,362

 

 

$

1,114,762

 

Total assets

 

 

707,377

 

 

 

252,704

 

 

 

84,924

 

 

 

217,483

 

 

 

31,538

 

 

 

247,641

 

 

 

1,541,667

 

Total funds borrowed

 

 

563,805

 

 

 

201,605

 

 

 

68,666

 

 

 

176,825

 

 

 

7,794

 

 

 

150,898

 

 

 

1,169,593

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

2.20

%

 

 

2.44

%

 

 

(9.73

%)

 

 

7.28

%

 

 

(3.71

%)

 

 

(0.12

)%

Return on average equity

 

 

17.19

 

 

 

10.22

 

 

 

12.21

 

 

 

(48.49

)

 

 

(96.37

)

 

 

(14.26

)

 

 

(0.59

)

Interest yield

 

 

15.39

 

 

 

9.50

 

 

 

11.39

 

 

 

2.88

 

 

N/A

 

 

N/A

 

 

 

11.75

 

Net interest margin

 

 

13.33

 

 

 

7.24

 

 

 

6.90

 

 

 

(3.38

)

 

N/A

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

2.53

 

 

 

1.05

 

 

 

0.00

 

(1)

 

19.48

 

 

N/A

 

 

N/A

 

 

 

3.97

 

Delinquency status(2)

 

 

0.84

 

 

 

0.07

 

 

 

0.15

 

(1)

 

2.04

 

 

N/A

 

 

N/A

 

 

 

0.76

 

Charge-off ratio

 

 

2.69

 

 

 

0.37

 

 

 

1.30

 

(3)

 

14.68

 

 

N/A

 

 

N/A

 

 

 

3.60

 

 

(1)

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

(2)

Loans 90 days or more past due.

(3)

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

 

 

Nine Months Ended December 31, 2018

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

68,870

 

 

$

12,799

 

 

$

7,076

 

 

$

6,317

 

 

$

—

 

 

$

1,741

 

 

$

96,803

 

Total interest expense

 

 

6,986

 

 

 

2,290

 

 

 

1,502

 

 

 

10,125

 

 

 

121

 

 

 

3,792

 

 

 

24,816

 

Net interest income (loss)

 

 

61,884

 

 

 

10,509

 

 

 

5,574

 

 

 

(3,808

)

 

 

(121

)

 

 

(2,051

)

 

 

71,987

 

Provision for loan losses

 

 

15,118

 

 

 

2,453

 

 

 

—

 

 

 

41,437

 

 

 

—

 

 

 

—

 

 

 

59,008

 

Net interest income (loss) after loss

   provision

 

 

46,766

 

 

 

8,056

 

 

 

5,574

 

 

 

(45,245

)

 

 

(121

)

 

 

(2,051

)

 

 

12,979

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,368

 

 

 

—

 

 

 

14,368

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,121

)

 

 

—

 

 

 

(7,121

)

Other income (expense), net

 

 

(14,242

)

 

 

(3,093

)

 

 

(1,824

)

 

 

9,742

 

 

 

(11,476

)

 

 

(6,489

)

 

 

(27,382

)

Net income (loss) before taxes

 

 

32,524

 

 

 

4,963

 

 

 

3,750

 

 

 

(35,503

)

 

 

(4,350

)

 

 

(8,540

)

 

 

(7,156

)

Income tax (provision) benefit

 

 

(8,579

)

 

 

(1,319

)

 

 

(862

)

 

 

7,938

 

 

 

1,108

 

 

 

1,005

 

 

 

(709

)

Net income (loss) after taxes

 

$

23,945

 

 

$

3,644

 

 

$

2,888

 

 

$

(27,565

)

 

$

(3,242

)

 

$

(7,535

)

 

$

(7,865

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

580,182

 

 

$

181,359

 

 

$

59,973

 

 

$

155,863

 

 

$

—

 

 

$

4,110

 

 

$

981,487

 

Total assets

 

 

590,746

 

 

 

188,892

 

 

 

93,807

 

 

 

273,501

 

 

 

29,925

 

 

 

204,975

 

 

 

1,381,846

 

Total funds borrowed

 

 

434,527

 

 

 

143,815

 

 

 

53,719

 

 

 

294,465

 

 

 

7,649

 

 

 

127,853

 

 

 

1,062,028

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.48

%

 

 

2.56

%

 

 

4.27

%

 

 

(10.13

)%

 

 

(11.69

)%

 

 

(4.07

)%

 

 

(0.90

)%

Return on average equity

 

 

22.60

 

 

 

11.30

 

 

 

9.43

 

 

NM

 

 

NM

 

 

 

(12.37

)

 

 

(4.62

)

Interest yield

 

 

15.78

 

 

 

9.06

 

 

 

14.25

 

 

 

3.58

 

 

N/A

 

 

N/A

 

 

 

10.98

 

Net interest margin

 

 

14.18

 

 

 

7.44

 

 

 

11.23

 

 

 

(2.16

)

 

N/A

 

 

N/A

 

 

 

8.19

 

Reserve coverage

 

 

1.17

 

 

 

0.98

 

 

 

0.00

 

 

 

15.11

 

 

N/A

 

 

N/A

 

 

 

3.58

 

Delinquency status(2)

 

 

0.73

 

 

 

0.07

 

 

 

0.44

 

(1)

 

9.43

 

 

N/A

 

 

N/A

 

 

 

2.14

 

Charge-off ratio

 

 

1.89

 

 

 

0.46

 

 

 

0.00

 

 

 

7.21

 

 

N/A

 

 

N/A

 

 

 

2.73

 

 

(1)

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

(2)

Loans 90 days or more past due.

 
v3.20.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(11) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a one-, two- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year of each five-year term, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one or two-year terms; however, there is currently one agreement that renews after two years for additional one- year terms and one agreement with a two-year term that does not have a renewal period. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period. Employment agreements expire at various dates through 2025, with future minimum payments under these agreements of approximately $12,056,000 as follows.

 

(Dollars in thousands)

 

 

 

 

2021

 

$

3,965

 

2022

 

 

3,081

 

2023

 

 

2,073

 

2024

 

 

2,073

 

2025

 

 

864

 

Thereafter

 

 

—

 

Total

 

$

12,056

 

 

 

(B) OTHER COMMITMENTS

The Company had no commitments to extend credit or make investments outstanding at December 31, 2020. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

 

(C) LITIGATION

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

(D) REGULATORY

In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of FSVC transfer to liquidation status and the restructure of the FSVC loan described in Note 6.

v3.20.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions

(12) RELATED PARTY TRANSACTIONS

Certain directors, officers, and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company.

Jeffrey Rudnick, the son of one of the Company’s directors, was an officer of LAX Group, LLC, or LAX, one of the Company’s equity investments that sold its assets on December 16, 2020. Mr. Rudnick receives a salary from LAX of $178,000 per year, which was reduced to $133,000 in the 2020 second quarter, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year-end bonus. In addition, Mr. Rudnick provided consulting services to the Company directly for a monthly retainer of $4,200. Effective March 1, 2021, Mr. Rudnick serves as the Company’s Senior Vice President at a salary of $195,000 per year and is no longer providing consulting services to the Company.

The Company’s subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which it makes an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Mr. Petty of $7,442,000, that earns interest at an annual rate of 2% through March 2022, none of which has been paid to date.

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

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

For the three months ended March 31, 2018, other income received from the Bank that was not eliminated under Investment Company Accounting was $256,000.

 

 
v3.20.4
Stockholders'/Shareholders' Equity
 12 Months Ended
Dec. 31, 2020
Federal Home Loan Banks [Abstract]  
Stockholders'/Shareholders' Equity

(13) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY

In November 2003, the Company announced a stock repurchase program which authorized the repurchase of up to $10,000,000 of common stock. In November 2004, the repurchase program was increased by an additional $10,000,000, which was further increased to a total of $20,000,000 in July 2014, and which was further increased to a total of $26,000,000 in July 2015. As of December 31, 2020, a total of 2,931,125 shares had been repurchased for $24,587,000, and $22,874,509 of shares remain authorized for repurchase under the program. There were no purchases in 2020, 2019, and 2018.
v3.20.4
Selected Financial Ratios and Other Data
 12 Months Ended
Dec. 31, 2020
Investment Company [Abstract]  
Selected Financial Ratios and Other Data

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

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

 

 

 

Three

Months

Ended

March 31,

 

(Dollars in thousands, except per share data)

 

2018

 

Net share data

 

 

 

 

Net asset value at the beginning of the year

 

$

11.80

 

Net investment income (loss)

 

 

(0.15

)

Income tax provision (benefit)

 

 

0.03

 

Net realized gains (losses) on investments

 

 

(1.44

)

Net change in unrealized appreciation on investments

 

 

0.94

 

Net increase (decrease) in net assets resulting from

   operations

 

 

(0.62

)

Issuance of common stock

 

 

(0.03

)

Total increase (decrease) in net asset value

 

 

(0.65

)

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

 

$

11.15

 

Per share market value at beginning of year

 

$

3.53

 

Per share market value at end of period/year

 

 

4.65

 

Total return (2)

 

 

(129

%)

Ratios/supplemental data

 

 

 

 

Total shareholders’ equity (net assets)

 

$

272,437

 

Average net assets

 

 

284,021

 

Total expense ratio (3) (4)

 

 

10.02

%

Operating expenses to average net assets (4)

 

 

5.87

 

Net investment income (loss) after income taxes to average

   net assets (4)

 

 

(4.61

)

 

(1)

Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and $0.00 of undistributed net realized gains per share for the period presented.

(2)

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

(3)

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

(4)

MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter.  

v3.20.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2020
Postemployment Benefits [Abstract]  
Employee Benefit Plans

(15) EMPLOYEE BENEFIT PLANS

The Company has a 401(k) Investment Plan, or the 401(k) Plan, which covers all full-time and part-time employees of the Company who have attained the age of 21 and have a minimum of thirty (30) days of service, including the employees of Medallion Bank. Under the 401(k) Plan, an employee may elect to defer not less than 1% of total annual compensation, up to the applicable limits set forth in the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. Once eligible full-time employees have completed a minimum of one (1) year of service, and part time employees have worked at least 500 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third 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 $203,000, $193,000, and $182,000 for the years ended December 31, 2020, 2019, and 2018.

v3.20.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2020
Investments All Other Investments [Abstract]  
Fair Value of Financial Instruments

(16) FAIR VALUE OF FINANCIAL INSTRUMENTS

FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet commitments, if practicable. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. Fair value estimates that were derived from broker quotes cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.

 

(a)

Cash – Book value equals fair value.

 

(b)

Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes.

 

(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, 2020 and December 31, 2019, 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, 2020

 

 

December 31, 2019

 

(Dollars in  thousands)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents, and federal funds sold (1)

 

$

112,040

 

 

$

112,040

 

 

$

67,821

 

 

$

67,821

 

Equity investments

 

 

9,746

 

 

 

9,746

 

 

 

10,079

 

 

 

10,079

 

Investment securities

 

 

46,792

 

 

 

46,792

 

 

 

48,998

 

 

 

48,998

 

Loans receivable

 

 

1,172,290

 

 

 

1,172,290

 

 

 

1,114,762

 

 

 

1,114,762

 

Accrued interest receivable (2)

 

 

10,338

 

 

 

10,338

 

 

 

8,662

 

 

 

8,662

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (3)

 

 

1,312,255

 

 

 

1,312,591

 

 

 

1,169,593

 

 

 

1,171,274

 

Accrued interest payable (2)

 

 

4,673

 

 

 

4,673

 

 

 

4,398

 

 

 

4,398

 

 

(1)

Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17.

(2)

Categorized as level 3 within the fair value hierarchy. See Note 17.

(3)

As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681.

 
v3.20.4
Fair Value of Assets and liabilities
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(17) FAIR VALUE OF ASSETS AND LIABILITIES

The Company follows the provisions of FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

In accordance with FASB ASC 820, the Company has categorized its assets and liabilities measured at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). Our assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred.

As required by FASB ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a level 3 fair value measurement may include inputs that are observable (levels 1 and 2) and unobservable (level 3). Therefore gains and losses for such assets and liabilities categorized within the level 3 table below may include changes in fair value that are attributable to both observable inputs (levels 1 and 2) and unobservable inputs (level 3).

Assets and liabilities measured at fair value, recorded on the consolidated balance sheets, are categorized based on the inputs to the valuation techniques as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives, most US Government and agency securities, and certain other sovereign government obligations).

Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

 

A)

Quoted prices for similar assets or liabilities in active markets (for example, restricted stock);

 

B)

Quoted price for identical or similar assets or liabilities in non-active markets (for example, corporate and municipal bonds, which trade infrequently);

 

C)

Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and

 

D)

Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives).

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the assets or liability (examples include certain private equity investments, and certain residential and commercial mortgage-related assets, including loans, securities, and derivatives).

A review of fair value hierarchy classification is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain assets or liabilities. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in/out of the level 3 category as of the beginning of the quarter in which the reclassifications occur.

Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented.

The following 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, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,500

 

 

$

—

 

 

$

1,500

 

Available for sale investment securities

 

 

—

 

 

 

46,792

 

 

 

—

 

 

 

46,792

 

Total(1)

 

$

—

 

 

$

48,292

 

 

$

—

 

 

$

48,292

 

 

(1)

Total unrealized gains of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2020 related to these assets.

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale investment securities (1)

 

$

—

 

 

$

48,998

 

 

$

—

 

 

$

48,998

 

Total

 

$

—

 

 

$

48,998

 

 

$

—

 

 

$

48,998

 

 

(1)

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,746

 

 

$

9,746

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

62,174

 

 

 

62,174

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

54,560

 

 

 

54,560

 

Total

 

$

—

 

 

$

—

 

 

$

126,480

 

 

$

126,480

 

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,079

 

 

$

10,079

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

34,915

 

 

 

34,915

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

52,711

 

 

 

52,711

 

Total

 

$

—

 

 

$

—

 

 

$

97,705

 

 

$

97,705

 

 

Significant Unobservable Inputs

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

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2020 and 2019.

 

(Dollars in thousands)

 

Fair Value

at 12/31/20

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity investments

 

$

8,291

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

62,174

 

 

Market approach

 

Historical and actual loss experience

 

1.50% - 6.00%

 

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

 

Median transfer price (2)

 

$0.6 - 108.7

 

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

53,128

 

 

Market approach

 

Median transfer price (2)

 

$0.6 - 108.7

 

 

 

1,432

 

 

 

 

Collateral value (3)

 

$0.7 - 32.3

 

(1)

Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)

Represents amount net of liquidation costs.

(3)

Relates to the recreation portfolio.

 

(Dollars in thousands)

 

Fair Value

at 12/31/19

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity Investments

 

$

7,435

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,189

 

 

Investee book value adjusted for market appreciation

 

Financial condition and operating performance of the investee

 

N/A

 

 

 

 

 

 

Public company comparables

 

Business enterprise value

 

$4,855 – $6,120

 

 

 

 

 

 

 

 

Business enterprise value/revenue multiples

 

1.59-5.98x

 

 

 

 

 

 

 

 

Discount for lack of marketability

 

25%

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

 
v3.20.4
Medallion Bank Preferred Stock (Non-controlling Interest)
 12 Months Ended
Dec. 31, 2020
Medallion Bank [Member]  
Medallion Bank Preferred Stock (Non-controlling Interest)

(18) MEDALLION BANK PREFERRED STOCK (Non-controlling interest)

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46,000,000 aggregate liquidation amount, yielding net proceeds of $42,485,000, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be three-month Secured Overnight Financing Rate, or SOFR) plus a spread of 6.46% per annum.

On July 21, 2011, the Bank issued, and the US Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E, or Series E, for an aggregate purchase price of $26,303,000 under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small

business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9% on the Series E.

v3.20.4
Parent Company Only Condensed Financial Statements
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Parent Company Only Condensed Financial Statements

(19) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS

The following shows the condensed financial information of Medallion Financial Corp. (parent company only).

Condensed Balance Sheets

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

33,743

 

 

$

4,477

 

Net loans receivable

 

 

12,293

 

 

 

26,802

 

Loan collateral in process of foreclosure

 

 

9,960

 

 

 

11,104

 

Goodwill and intangible assets

 

 

175,731

 

 

 

177,176

 

Investment in bank subsidiaries

 

 

149,686

 

 

 

158,201

 

Investment in non-bank subsidiaries

 

 

88,165

 

 

 

92,856

 

Income tax receivable

 

 

1,470

 

 

 

4,708

 

Other assets

 

 

10,912

 

 

 

14,111

 

Total assets

 

$

481,960

 

 

$

489,435

 

Liabilities

 

 

 

 

 

 

 

 

Other liabilities

 

$

21,302

 

 

$

18,660

 

Intercompany payables

 

 

51,352

 

 

 

54,904

 

Short-term borrowings

 

 

53,359

 

 

 

8,188

 

Deferred tax liabilities

 

 

24,172

 

 

 

30,728

 

Long-term borrowings

 

 

100,367

 

 

 

113,807

 

Total liabilities

 

 

250,552

 

 

 

226,287

 

Total stockholders’ equity

 

 

231,408

 

 

 

263,148

 

Total liabilities and equity

 

$

481,960

 

 

$

489,435

 

Condensed Statements of Operations

 

 

 

Year Ended

 

 

 

 

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Interest income

 

$

(2,824

)

 

$

(2,552

)

 

$

(1,958

)

Interest expense

 

 

8,602

 

 

 

8,856

 

 

 

5,480

 

Net interest loss

 

 

(11,426

)

 

 

(11,408

)

 

 

(7,438

)

Provision for loan losses

 

 

5,127

 

 

 

6,377

 

 

 

19,190

 

Net interest loss after provision for loan losses

 

 

(16,553

)

 

 

(17,785

)

 

 

(26,628

)

Other income (expense), net

 

 

(22,062

)

 

 

(13,686

)

 

 

(16,913

)

Loss before income taxes and undistributed earnings of

   subsidiaries

 

 

(38,615

)

 

 

(31,471

)

 

 

(43,541

)

Income tax benefit

 

 

10,454

 

 

 

7,013

 

 

 

5,328

 

Loss before undistributed earnings of subsidiaries

 

 

(28,161

)

 

 

(24,458

)

 

 

(38,213

)

Undistributed earnings (losses) of subsidiaries

 

 

(6,622

)

 

 

22,696

 

 

 

28,041

 

Net income (loss) attributable to parent company

 

$

(34,783

)

 

$

(1,762

)

 

$

(10,172

)

 

 

Condensed Statements of Other Comprehensive Income (Loss)

 

 

 

Year Ended

 

 

 

 

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Net loss

 

$

(34,783

)

 

$

(1,762

)

 

$

(10,172

)

Other comprehensive income (loss)

 

 

1,013

 

 

 

1,081

 

 

 

(82

)

Total comprehensive income (loss) attributable to Medallion Financial Corp.

 

$

(33,770

)

 

$

(681

)

 

$

(10,254

)

Condensed Statements of Cash Flow

 

 

 

Year Ended

 

 

 

 

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

CASH FLOWS FROM OPERATING ACTIVITIES

   Net loss

 

$

(34,783

)

 

$

(1,762

)

 

$

(10,172

)

Adjustments to reconcile net loss to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed (earnings) losses of subsidiaries

 

 

6,622

 

 

 

(22,696

)

 

 

(28,041

)

Provision for loan losses

 

 

5,127

 

 

 

6,377

 

 

 

19,190

 

Depreciation and amortization

 

 

5,357

 

 

 

5,484

 

 

 

5,451

 

Change in deferred and other tax assets/liabilities, net

 

 

(3,317

)

 

 

(2,225

)

 

 

4,512

 

Net change in loan collateral in process of foreclosure

 

 

4,940

 

 

 

906

 

 

 

678

 

Net change in unrealized depreciation on investments

 

 

3,493

 

 

 

1,786

 

 

 

—

 

Stock-based compensation expense

 

 

2,031

 

 

 

1,221

 

 

 

425

 

Decrease in other assets

 

 

2,299

 

 

 

988

 

 

 

4,073

 

Increase in deferred financing costs

 

 

(1,233

)

 

 

(1,297

)

 

 

—

 

Decrease in intercompany payables

 

 

(3,552

)

 

 

(8,448

)

 

 

(3,368

)

Increase in other liabilities

 

 

2,336

 

 

 

(1,759

)

 

 

4,237

 

Net cash used by operating activities

 

 

(10,680

)

 

 

(21,425

)

 

 

(3,015

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Loans originated

 

 

(14

)

 

 

(3,312

)

 

 

(309

)

Proceeds from principal receipts, sales, and maturities of loans and investments

 

 

1,193

 

 

 

2,313

 

 

 

10,900

 

Purchases of investments

 

 

(2,304

)

 

 

(1,125

)

 

 

—

 

Proceeds from sale and principal payments of loan collateral in process of foreclosure

 

 

1,276

 

 

 

2,403

 

 

 

487

 

Dividends from subsidiaries

 

 

7,597

 

 

 

6,248

 

 

 

5,200

 

Net cash provided by investing activities

 

 

7,748

 

 

 

6,527

 

 

 

16,278

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

33,600

 

 

 

36,000

 

 

 

—

 

Repayments of funds borrowed

 

 

(1,402

)

 

 

(17,735

)

 

 

(17,208

)

Net cash provided by (used for) financing activities

 

 

32,198

 

 

 

18,265

 

 

 

(17,208

)

NET INCREASE (DECREASE) IN CASH AND

   CASH EQUIVALENTS

 

 

29,266

 

 

 

3,367

 

 

 

(3,945

)

Cash and cash equivalents, beginning of period

 

 

4,477

 

 

 

1,110

 

 

 

5,055

 

Cash and cash equivalents, end of period

 

$

33,743

 

 

$

4,477

 

 

$

1,110

 

 
v3.20.4
Variable Interest Entities
 12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Variable Interest Entities

(20) VARIABLE INTEREST ENTITIES

During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are

considered a variable interest. This conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty. See Note 6 for more details. The Company’s interest in Trust III is accounted for as an equity investment and has a value of $0 as of December 31, 2020 and 2019. In addition, MFC remains the servicer of the assets of Trust III for a fee.

In December 2008, Trust III entered into the DZ loan agreement with DZ Bank, to provide up to $200,000,000 of financing through a commercial paper conduit to acquire medallion loans from MFC, or the DZ loan. The loan, which has an outstanding balance of $86,825,000, currently terminates on May 15, 2021. Borrowings under the DZ loan are collateralized by Trust III’s assets.
v3.20.4
Subsequent Events
 12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

(21) SUBSEQUENT EVENTS

The Company evaluated the effects of events that have occurred subsequent to the year ended December 31, 2020, through the date of financial statement issuance.

On March 11, 2021, one of the notes payable to banks with a maturity of September 1, 2021 was paid off.

On March 12, 2021, one of the notes payable to banks with a maturity of April 15, 2021 was paid off.

A lender for one of the notes payable to banks with a maturity date of February 1, 2021 has agreed to extend such note until December 31, 2021.

A lender for nine of the notes payable to banks with maturity dates of February 9, 2021 has agreed to extend such notes until December 31, 2021.

Fourteen of the notes payable to banks with maturity dates of February 1, 2021 were extended until April 1, 2021.

 
v3.20.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Change to Bank Holding Company Accounting

Change to Bank Holding Company Accounting

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

Use of Estimates

Use of Estimates

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

Principles of Consolidation

Principles of Consolidation

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

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

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,500,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years.
Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 16 and 17 to the consolidated financial statements.

Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investment in equity securities with readily determinable value to be valued as such, and those that do not are measured at cost, less any impairment plus or minus any observable price change. Equity investments of $9,746,000 and $10,079,000 at December 31, 2020 and 2019, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2020 and 2019, the Company determined that there was no impairment or observable price change.

Investment Securities (Bank Holding Company Accounting)

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. 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 $278,000 and $248,000 at December 31, 2020 and 2019, and $291,000 and $79,000 was amortized to interest income for the years ended December 31, 2020 and 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 to interest income for the three months ended March 31, 2018. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the 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 5 for additional details.

Loans

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, and therefore changed the Company’s financial reporting from Investment Company Accounting to Bank Holding Company Accounting. As a result, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2020 and 2019, net loan origination costs were $20,684,000 and $17,839,000. Net amortization to income for the years ended December 31, 2020, 2019 and 2018 was $6,021,000, $4,952,000, and 3,128,000 ($3,993,000 when combined with the Bank).

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. These loans are placed on nonaccrual, when they become 90 days past due, or earlier if they enter bankruptcy, and are charged off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded to write the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as a recovery. Total loans 90 days or more past due were $6,878,000 at December 31, 2020, or 0.57% of the total loan portfolio, compared to $8,663,000, or 0.76% at December 31, 2019.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance, and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the CARES Act relief period was extended to the later of January 1, 2022 or 60 days after the date which the coronavirus, or COVID-19, national emergency terminates, companies may elect to (a) suspend the requirements of US GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs and (b) suspend any determination of a loan modified as a result of the effects of COVID-19 as a TDR, including impairment for accounting purposes. Any such suspension is applicable for the term of the loan modification, but solely with respect to any modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019, and shall not apply to any adverse impact on the credit of a borrower that is not related to COVID-19. As of December 31, 2020, there were no consumer or medallion loan modifications related to COVID-19 that would have otherwise been classified as a TDR, and therefore there was no need for the Company to elect this relief under the CARES Act during 2020. However, we expect to have loan modifications related to COVID-19 that would apply under this provision of the CARES Act in the future.

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

The Company had $15,367,000 and $28,833,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2020 and 2019.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $107,131,000 and $113,581,000 at December 31, 2020 and 2019. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of December 31, 2020 and 2019. The Company assigned its servicing rights of the Bank’s portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from the Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at the median sales price for the collateral over the most recent quarter, historically non-delinquent nonperforming loans are valued at either the median sales price for the collateral over the most recent quarter or the discounted cash flow if such loans were modified and it is clear that sources other than the taxi business were instrumental in keeping such loans current, and performing medallion loans are reserved utilizing historical loss ratios over a three-year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result of COVID-19, there was an increase in the reserve percentages of 50 basis points on the recreation subprime loan business during the twelve months ended December 31, 2020. In addition, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six month deferral period with borrowers, and therefore deemed all such loans as impaired. As a result, all medallion loans were written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions. In total, write-downs on medallion assets were approximately $46,087,000 during 2020.  The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Had there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more past due would have resulted in increased reserves and/or charge-offs. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

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

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

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

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

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of December 31, 2020 and 2019, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $51,090,000 and $52,536,000, and the Company recognized $1,445,000, $1,446,000 and $1,083,000 of amortization expense on the intangible assets for the twelve months ended December 31, 2020, 2019, and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,717,000 and $5,758,000 were outstanding at December 31, 2020 and 2019, and of which $3,041,000, $3,289,000 and $3,339,000 were amortized to interest income for the twelve months ended December 31, 2020, 2019, and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2020 and 2019, who concluded there was no impairment on the Bank and on the RPAC intangible asset.

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

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Brand-related intellectual property

 

$

18,974

 

 

$

20,075

 

Home improvement contractor relationships

 

 

5,951

 

 

 

6,296

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets

 

$

51,090

 

 

$

52,536

 
Fixed Assets

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $412,000, $418,000, and $422,000 for the years ended December 31, 2020, 2019, and 2018.

Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2,558,000, $2,348,000, and $1,864,000 for the years ended December 31, 2020, 2019, and 2018, recorded as interest expense. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amounts on the Company’s balance sheet for all of these purposes were $5,805,000 and $5,105,000 at December 31, 2020 and 2019.

Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or ASC 740. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis and are stated at tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating losses, capital losses and any tax credit carryforwards. A valuation allowance is provided against a deferred tax asset when it is more likely than not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is considered to determine whether a valuation allowance for deferred tax assets is needed. Items considered in determining the Company’s valuation allowance include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. The Company recognizes tax benefits of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. The Company records income tax related interest and penalties, if applicable, within current income tax expense.
Sponsorship and Race Winnings

Sponsorship and Race Winnings

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

Earnings (Loss) Per Share (EPS)

Earnings (Loss) Per Share (EPS)

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

 

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share data)

 

2020

 

 

2019

 

 

2018

 

Net loss/net increase in net assets resulting from

   operations available to common stockholders

 

$

(34,783

)

 

$

(1,762

)

 

$

(25,046

)

Weighted average common shares outstanding applicable

   to basic EPS

 

 

24,445,452

 

 

 

24,342,979

 

 

 

24,214,978

 

Effect of dilutive stock options

 

 

—

 

 

 

—

 

 

 

—

 

Effect of restricted stock grants

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,445,452

 

 

 

24,342,979

 

 

 

24,214,978

 

Basic loss per share

 

$

(1.42

)

 

$

(0.07

)

 

$

(1.03

)

Diluted loss per share

 

 

(1.42

)

 

 

(0.07

)

 

 

(1.03

)

 

Potentially dilutive common shares excluded from the above calculations aggregated 934,003, 462,180, and 100,000 shares as of December 31, 2020, 2019, and 2018.

Stock Compensation

Stock Compensation

The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income/ net increase in net assets resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income/net increase net assets resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

During 2020, 2019, and 2018, the Company issued 229,408, 216,148, and 101,010 restricted shares of stock-based compensation awards, issued 444,557, 449,450, and 39,000 shares of other stock-based compensation awards, and issued 47,156, 26,040, and 0 of restricted share units of stock based compensation awards, and recognized $2,030,000, $1,221,000, and $576,000, or $0.08, $0.05, and $0.02, per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2020, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $2,405,000, which is expected to be recognized over the next 16 quarters. See Note 9 for additional details.

Regulatory Capital

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2020, the Bank’s Tier 1 leverage ratio was 16.93%. The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

 

 

Regulatory

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

Minimum

 

 

Well-Capitalized

 

 

December 31, 2020

 

 

December 31, 2019

 

Common equity tier 1 capital

 

 

—

 

 

 

—

 

 

$

148,507

 

 

$

158,187

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

217,295

 

 

 

226,975

 

Total capital

 

 

—

 

 

 

—

 

 

 

233,460

 

 

 

241,842

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,283,664

 

 

 

1,172,866

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,243,783

 

 

 

1,144,337

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.9

%

 

 

19.4

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

11.9

 

 

 

13.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.5

 

 

 

19.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.8

 

 

 

21.1

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

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

(3)

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

In the table above, the minimum risk-based ratios as of December 31, 2020 and 2019 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 2020 and 2019.
Recently Issued Accounting Standards

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates

are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans.

Reclassifications

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.

v3.20.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Schedule of Intangible Assets

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

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Brand-related intellectual property

 

$

18,974

 

 

$

20,075

 

Home improvement contractor relationships

 

 

5,951

 

 

 

6,296

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets

 

$

51,090

 

 

$

52,536

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

 

 

Years Ended December 31,

 

(Dollars in thousands, except share and per share data)

 

2020

 

 

2019

 

 

2018

 

Net loss/net increase in net assets resulting from

   operations available to common stockholders

 

$

(34,783

)

 

$

(1,762

)

 

$

(25,046

)

Weighted average common shares outstanding applicable

   to basic EPS

 

 

24,445,452

 

 

 

24,342,979

 

 

 

24,214,978

 

Effect of dilutive stock options

 

 

—

 

 

 

—

 

 

 

—

 

Effect of restricted stock grants

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,445,452

 

 

 

24,342,979

 

 

 

24,214,978

 

Basic loss per share

 

$

(1.42

)

 

$

(0.07

)

 

$

(1.03

)

Diluted loss per share

 

 

(1.42

)

 

 

(0.07

)

 

 

(1.03

)

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

 

 

Regulatory

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

Minimum

 

 

Well-Capitalized

 

 

December 31, 2020

 

 

December 31, 2019

 

Common equity tier 1 capital

 

 

—

 

 

 

—

 

 

$

148,507

 

 

$

158,187

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

217,295

 

 

 

226,975

 

Total capital

 

 

—

 

 

 

—

 

 

 

233,460

 

 

 

241,842

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,283,664

 

 

 

1,172,866

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,243,783

 

 

 

1,144,337

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.9

%

 

 

19.4

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

11.9

 

 

 

13.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.5

 

 

 

19.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.8

 

 

 

21.1

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

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

(3)

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

v3.20.4
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2020
Schedule Of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale at December 31, 2020 and 2019 consisted of the following:

 

December 31, 2020

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

34,929

 

 

$

1,495

 

 

$

(45

)

 

$

36,379

 

State and municipalities

 

 

10,226

 

 

 

189

 

 

 

(2

)

 

 

10,413

 

Total

 

$

45,155

 

 

$

1,684

 

 

$

(47

)

 

$

46,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

36,335

 

 

$

411

 

 

$

(112

)

 

$

36,634

 

State and municipalities

 

 

12,279

 

 

 

186

 

 

 

(101

)

 

 

12,364

 

Total

 

$

48,614

 

 

$

597

 

 

$

(213

)

 

$

48,998

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

The amortized cost and estimated market value of investment securities as of December 31, 2020 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized

Cost

 

 

Fair

Value

 

Due in one year or less

 

$

25

 

 

$

25

 

Due after one year through five years

 

 

12,485

 

 

 

12,956

 

Due after five years through ten years

 

 

14,499

 

 

 

15,214

 

Due after ten years

 

 

18,146

 

 

 

18,597

 

Total

 

$

45,155

 

 

$

46,792

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at December 31, 2020 and 2019, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2020

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(45

)

 

$

4,028

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

196

 

Total

 

$

(45

)

 

$

4,028

 

 

$

(2

)

 

$

196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2019

(Dollars in thousands)

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

(74

)

 

$

8,291

 

 

$

(38

)

 

$

4,939

 

State and municipalities

 

 

(17

)

 

 

2,099

 

 

 

(84

)

 

 

2,739

 

Total

 

$

(91

)

 

$

10,390

 

 

$

(122

)

 

$

7,678

 
v3.20.4
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2020 and 2019.

 

 

 

As of December 31, 2020

 

 

As of December 31, 2019

 

(Dollars in thousands)

 

Amount

 

 

As a

Percent of

Gross Loans

 

 

Amount

 

 

As a

Percent of

Gross Loans

 

Recreation

 

$

792,686

 

 

 

65

%

 

$

713,332

 

 

 

62

%

Home improvement

 

 

334,033

 

 

 

27

 

 

 

247,324

 

 

 

21

 

Commercial

 

 

65,327

 

 

 

5

 

 

 

69,767

 

 

 

6

 

Medallion

 

 

37,768

 

 

 

3

 

 

 

130,432

 

 

 

11

 

Strategic partnership

 

 

24

 

 

 

—

 

 

 

—

 

 

 

—

 

Total gross loans

 

 

1,229,838

 

 

 

100

%

 

 

1,160,855

 

 

 

100

%

Allowance for loan losses

 

 

(57,548

)

 

 

 

 

 

 

(46,093

)

 

 

 

 

Total net loans

 

$

1,172,290

 

 

 

 

 

 

$

1,114,762

 

 

 

 

 
Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the twelve months ended December 31, 2020 and 2019.

Twelve Months Ended December 31, 2020

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

—

 

 

$

1,160,855

 

Loan originations

 

 

294,885

 

 

 

193,098

 

 

 

7,575

 

 

 

—

 

 

 

1,663

 

 

 

497,221

 

Principal payments, sales, and maturities

 

 

(187,989

)

 

 

(105,813

)

 

 

(13,183

)

 

 

(13,207

)

 

 

(1,639

)

 

 

(321,831

)

Charge-offs, net

 

 

(14,457

)

 

 

(1,229

)

 

 

(28

)

 

 

(42,648

)

 

 

—

 

 

 

(58,362

)

Transfer to loan collateral in process of foreclosure, net

 

 

(14,871

)

 

 

—

 

 

 

—

 

 

 

(32,383

)

 

 

—

 

 

 

(47,254

)

Amortization of origination costs

 

 

(7,809

)

 

 

1,910

 

 

 

8

 

 

 

(131

)

 

 

—

 

 

 

(6,022

)

Amortization of loan premium

 

 

(191

)

 

 

(320

)

 

 

—

 

 

 

(2,531

)

 

 

—

 

 

 

(3,042

)

FASB origination costs, net

 

 

9,786

 

 

 

(937

)

 

 

—

 

 

 

36

 

 

 

—

 

 

 

8,885

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,188

 

 

 

—

 

 

 

—

 

 

 

1,188

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

—

 

 

 

(1,800

)

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

 

 

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Total

 

Gross loans – December 31, 2018

 

$

587,038

 

 

$

183,155

 

 

$

64,083

 

 

$

183,606

 

 

$

1,017,882

 

Loan originations

 

 

301,403

 

 

 

142,112

 

 

 

18,578

 

 

 

—

 

 

 

462,093

 

Principal payments, sales, and maturities

 

 

(146,873

)

 

 

(76,157

)

 

 

(13,553

)

 

 

(15,070

)

 

 

(251,653

)

Charge-offs, net

 

 

(17,419

)

 

 

(786

)

 

 

(819

)

 

 

(18,664

)

 

 

(37,688

)

Transfer to loan collateral in process of foreclosure, net

 

 

(14,512

)

 

 

—

 

 

 

—

 

 

 

(16,836

)

 

 

(31,348

)

Amortization of origination costs

 

 

(6,428

)

 

 

1,561

 

 

 

34

 

 

 

(119

)

 

 

(4,952

)

Amortization of loan premium

 

 

(247

)

 

 

(416

)

 

 

—

 

 

 

(2,626

)

 

 

(3,289

)

FASB origination costs, net

 

 

10,370

 

 

 

(2,145

)

 

 

610

 

 

 

141

 

 

 

8,976

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

834

 

 

 

—

 

 

 

834

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

1,160,855

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2020 and 2019.

 

 

 

Twelve Months Ended

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Allowance for loan losses – beginning balance

 

$

46,093

 

 

$

36,395

 

Charge-offs

 

 

 

 

 

 

 

 

Recreation

 

 

(23,543

)

 

 

(24,433

)

Home improvement

 

 

(2,909

)

 

 

(2,504

)

Commercial

 

 

(31

)

 

 

(819

)

Medallion

 

 

(49,361

)

 

 

(22,205

)

Total charge-offs

 

 

(75,844

)

 

 

(49,961

)

Recoveries

 

 

 

 

 

 

 

 

Recreation

 

 

9,086

 

 

 

7,014

 

Home improvement

 

 

1,680

 

 

 

1,718

 

Commercial

 

 

3

 

 

 

—

 

Medallion

 

 

6,713

 

 

 

3,541

 

Total recoveries

 

 

17,482

 

 

 

12,273

 

Net charge-offs (1)

 

 

(58,362

)

 

 

(37,688

)

Provision for loan losses

 

 

69,817

 

 

 

47,386

 

Allowance for loan losses – ending balance (2) (3)

 

$

57,548

 

 

$

46,093

 

 

 

(1)

As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company.

(2)

As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.   

(3)

As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
Summary of Allowance for Loan Losses by Type

The following tables set forth the allowance for loan losses by type as of December 31, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

 

Allowance as

a Percent of

Nonaccrual

 

Recreation

 

$

27,348

 

 

 

48

%

 

 

3.45

%

 

 

378.20

%

Home improvement

 

 

5,157

 

 

 

9

 

 

 

1.54

 

 

NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,043

 

 

 

43

 

 

 

66.31

 

 

 

68.01

 

Total

 

$

57,548

 

 

 

100

%

 

 

4.68

%

 

 

93.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

(Dollars in thousands)

 

Amount

 

 

Percentage

of Allowance

 

 

Allowance as

a Percent of

Loan Category

 

 

Allowance as

a Percent of

Nonaccrual

 

Recreation

 

$

18,075

 

 

 

39

%

 

 

2.53

%

 

 

228.25

%

Home improvement

 

 

2,608

 

 

 

6

 

 

 

1.05

 

 

NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,410

 

 

 

55

 

 

 

19.48

 

 

 

389.84

 

Total

 

$

46,093

 

 

 

100

%

 

 

3.97

%

 

 

174.04

%
Summary of Total Nonaccrual Loans and Foregone Interest

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

 

 

 

December 31,

 

(Dollars in thousands)

 

2020

 

 

2019

 

 

2018

 

Total nonaccrual loans

 

$

61,767

 

 

$

26,484

 

 

$

34,877

 

Interest foregone for the year

 

 

3,311

 

 

 

2,152

 

 

 

1,153

 

Amount of foregone interest applied to principal

   for the year

 

 

602

 

 

 

254

 

 

 

535

 

Interest foregone life-to-date

 

 

5,252

 

 

 

2,744

 

 

 

1,952

 

Amount of foregone interest applied to principal

   life-to-date

 

 

792

 

 

 

471

 

 

 

1,214

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

5

%

 

 

2

%

 

 

3

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

93

 

 

 

174

 

 

 

104

 
Summary of Performance Status of Loan

The following tables present the performance status of loans as of December 31, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

785,047

 

 

$

7,639

 

 

$

792,686

 

 

 

0.96

%

Home improvement

 

 

333,862

 

 

 

171

 

 

 

334,033

 

 

 

0.05

 

Commercial

 

 

48,731

 

 

 

16,596

 

 

 

65,327

 

 

 

25.40

 

Medallion

 

 

—

 

 

 

37,768

 

(1)

 

37,768

 

 

 

100.00

 

Strategic partnership

 

 

24

 

 

 

—

 

 

 

24

 

 

 

0.00

 

Total

 

$

1,167,664

 

 

$

62,174

 

(2)

$

1,229,838

 

 

 

5.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of

Nonperforming

to Total

 

Recreation

 

$

705,070

 

 

$

8,262

 

 

$

713,332

 

 

 

1.16

%

Home improvement

 

 

247,139

 

 

 

185

 

 

 

247,324

 

 

 

0.07

 

Commercial

 

 

57,905

 

 

 

11,862

 

 

 

69,767

 

 

 

17.00

 

Medallion

 

 

88,248

 

 

 

42,184

 

 

 

130,432

 

 

 

32.34

 

Total

 

$

1,098,362

 

 

$

62,493

 

(2)

$

1,160,855

 

 

 

5.38

%

 

 

(1)

Includes medallion loan premiums of $1,615 as of December 31, 2020.

 

(2)

Includes $408 and $36,009 of TDRs as of December 31, 2020 and 2019, which are accruing and paying currently, but which are considered nonperforming loans under GAAP.

Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2020 and 2019, all of which had an allowance recorded against the principal balance.

 

 

 

December 31, 2020

 

 

December 31, 2019

 

(Dollars in thousands)

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

7,639

 

 

$

7,639

 

 

$

264

 

 

$

8,262

 

 

$

8,262

 

 

$

329

 

Home improvement

 

 

171

 

 

 

171

 

 

 

3

 

 

 

185

 

 

 

185

 

 

 

3

 

Commercial

 

 

16,596

 

 

 

16,600

 

 

 

—

 

 

 

11,862

 

 

 

11,867

 

 

 

—

 

Medallion

 

 

37,768

 

 

 

38,368

 

 

 

25,043

 

 

 

42,184

 

 

 

42,650

 

 

 

14,824

 

Total nonperforming loans with an allowance

 

$

62,174

 

 

$

62,778

 

 

$

25,310

 

 

$

62,493

 

 

$

62,964

 

 

$

15,156

 

 

 

 

For the Twelve Months Ended

 

 

 

December 31, 2020

 

December 31, 2019

 

(Dollars in thousands)

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

 

 

Average

Investment

Recorded

 

 

Interest Income

(Expense)

Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

7,949

 

 

$

560

 

 

 

$

8,317

 

 

$

471

 

Home improvement

 

 

172

 

 

 

2

 

 

 

 

185

 

 

 

—

 

Commercial

 

 

16,884

 

 

 

123

 

 

 

 

7,886

 

 

 

392

 

Medallion

 

 

40,928

 

 

 

465

 

 

 

 

44,721

 

 

 

346

 

Total nonperforming loans with an allowance

 

$

65,933

 

 

$

1,150

 

 

 

$

61,109

 

 

$

1,209

 
Summary of Aging of Loans

The following tables show the aging of all loans as of December 31, 2020 and 2019.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2020

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

22,058

 

 

$

7,582

 

 

$

5,343

 

 

$

34,983

 

 

$

732,391

 

 

$

767,374

 

 

$

—

 

Home improvement

 

 

813

 

 

 

218

 

 

 

170

 

 

 

1,201

 

 

 

335,684

 

 

 

336,885

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

75

 

 

 

75

 

 

 

65,265

 

 

 

65,340

 

 

 

—

 

Medallion

 

 

2,019

 

 

 

973

 

 

 

1,290

 

 

 

4,282

 

 

 

31,871

 

 

 

36,153

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

 

 

24

 

 

 

—

 

Total

 

$

24,890

 

 

$

8,773

 

 

$

6,878

 

 

$

40,541

 

 

$

1,165,235

 

 

$

1,205,776

 

 

$

—

 

 

(1)

Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.

 

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

Investment

 

December 31, 2019

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

90 Days and

Accruing

 

Recreation

 

$

27,357

 

 

$

8,426

 

 

$

5,800

 

 

$

41,583

 

 

$

648,227

 

 

$

689,810

 

 

$

—

 

Home improvement

 

931

 

 

427

 

 

184

 

 

 

1,542

 

 

 

249,288

 

 

 

250,830

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

107

 

 

 

107

 

 

 

69,660

 

 

 

69,767

 

 

 

—

 

Medallion

 

 

12,491

 

 

 

2,118

 

 

 

2,572

 

 

 

17,181

 

 

 

109,106

 

 

 

126,287

 

 

 

—

 

Total

 

$

40,779

 

 

$

10,971

 

 

$

8,663

 

 

$

60,413

 

 

$

1,076,281

 

 

$

1,136,694

 

 

$

—

 

 

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

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2020.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Recreation loans

 

 

77

 

 

 

1,053

 

 

 

749

 

Commercial loans

 

 

1

 

 

 

1,821

 

 

 

1,821

 

Medallion loans

 

 

59

 

 

 

33,505

 

 

 

33,505

 

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2019.

 

(Dollars in thousands)

 

Number of Loans

 

 

Pre-

Modification

Investment

 

 

Post-

Modification

Investment

 

Recreation loans

 

 

294

 

 

$

4,433

 

 

$

2,831

 

Medallion loans

 

 

71

 

 

 

31,376

 

 

 

31,385

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

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2020 and 2019.

 

Twelve Months Ended December 31, 2020

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

Transfer from loans, net

 

 

14,871

 

 

 

32,403

 

 

 

47,274

 

Sales

 

 

(7,512

)

 

 

(300

)

 

 

(7,812

)

Cash payments received

 

 

—

 

 

 

(5,687

)

 

 

(5,687

)

Collateral valuation adjustments

 

 

(7,403

)

 

 

(24,523

)

 

 

(31,926

)

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

 

Twelve Months Ended December 31, 2019

(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2018

 

$

1,503

 

 

$

47,992

 

 

$

49,495

 

Transfer from loans, net

 

 

14,512

 

 

 

16,836

 

 

 

31,348

 

Sales

 

 

(7,591

)

 

 

(1,515

)

 

 

(9,106

)

Cash payments received

 

 

—

 

 

 

(7,697

)

 

 

(7,697

)

Collateral valuation adjustments

 

 

(6,948

)

 

 

(4,381

)

 

 

(11,329

)

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 
v3.20.4
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables)
 12 Months Ended
Dec. 31, 2020
Schedule Of Investments [Abstract]  
Schedule of Unrealized Appreciation (Depreciation) on Investments

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

 

(Dollars in thousands)

 

Medallion

Loans

 

 

Commercial

Loans

 

 

Investments

in

Subsidiaries

 

 

Equity

Investments

 

 

Investments

Other Than

Securities

 

 

Total

 

Balance December 31, 2017

 

$

(20,338

)

 

$

(513

)

 

$

158,920

 

 

$

3,121

 

 

$

(1,490

)

 

$

139,700

 

Net change in unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appreciation on investments

 

 

—

 

 

 

—

 

 

 

38,795

 

 

 

(998

)

 

 

—

 

 

 

37,797

 

Depreciation on investments

 

 

(38,170

)

 

 

18

 

 

 

—

 

 

 

—

 

 

 

(1,915

)

 

 

(40,067

)

Reversal of unrealized appreciation

   (depreciation) related to realized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Losses on investments

 

 

34,747

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34,747

 

Balance March 31, 2018

 

$

(23,761

)

 

$

(495

)

 

$

197,715

 

 

$

2,123

 

 

$

(3,405

)

 

$

172,177

 

 

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

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

 

 

 

 

 

 

(Dollars in thousands)

 

Three Months Ended

March 31, 2018

 

Net change in unrealized appreciation

   (depreciation) on investments

 

 

 

 

Unrealized appreciation

 

$

(998

)

Unrealized depreciation

 

 

(38,152

)

Net unrealized appreciation on investments in

   Medallion Bank and other controlled subsidiaries

 

 

29,115

 

Realized gains

 

 

—

 

Realized losses

 

 

34,747

 

Net unrealized losses on investments other than

   securities and other assets

 

 

(1,915

)

Total

 

$

22,797

 

Net realized gains (losses) on investments

 

 

 

 

Realized gains

 

$

—

 

Realized losses

 

 

(34,747

)

Other gains

 

 

—

 

Direct charge-offs

 

 

2

 

Total

 

$

(34,745

)

 
v3.20.4
Funds Borrowed (Tables)
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The outstanding balances of funds borrowed were as follows.

 

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in  thousands)

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

Thereafter

 

 

December 31, 2020(1)

 

 

December 31, 2019(1)

 

 

Interest

Rate (2)

 

Deposits (3)

 

$

393,835

 

 

$

241,605

 

 

$

190,387

 

 

$

120,040

 

 

$

121,955

 

 

$

—

 

 

$

1,067,822

 

 

$

954,245

 

 

 

1.71

%

Retail and privately placed

   notes (4)

 

 

33,625

 

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

33,600

 

 

 

103,225

 

 

 

69,625

 

 

 

8.25

%

SBA debentures and

   borrowings

 

 

22,508

 

 

 

—

 

 

 

5,000

 

 

 

5,000

 

 

 

14,000

 

 

 

21,500

 

 

 

68,008

 

 

 

71,746

 

 

 

3.36

%

Preferred securities (4)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.35

%

Notes payable to banks

 

 

30,701

 

 

 

280

 

 

 

280

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,261

 

 

 

33,183

 

 

 

3.67

%

Other borrowings

 

 

500

 

 

 

7,442

 

 

 

—

 

 

 

—

 

 

 

747

 

 

 

—

 

 

 

8,689

 

 

 

7,794

 

 

 

1.91

%

Total

 

$

481,169

 

 

$

249,327

 

 

$

195,667

 

 

$

161,040

 

 

$

136,702

 

 

$

88,100

 

 

$

1,312,005

 

 

$

1,169,593

 

 

 

2.37

%

 

(1)

Excludes deferred financing costs of $5,805 and $5,105 as of December 31, 2020 and 2019.

(2)

Weighted average contractual rate as of December 31, 2020.

(3)

Balance excludes $250 of strategic partner reserve deposits as of December 31, 2020.

(4)

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

 
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of December 31, 2020.

 

(Dollars in  thousands)

 

December 31, 2020

 

Three months or less

 

$

125,766

 

Over three months through six months

 

 

117,602

 

Over six months through one year

 

 

150,467

 

Over one year

 

 

673,987

 

Total deposits

 

$

1,067,822

 

 
Summary of Key Attributes of Various Borrowing Arrangements with Lenders

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2020.

 

(Dollars in thousands)

Borrower

 

# of

Lenders/

Notes

 

Note

Dates

 

Maturity

Dates

 

Type

 

Note

Amounts

 

 

Balance

Outstanding at

December 31,

2020

 

 

Payment

 

Average

Interest

Rate at

December 31,

2020

 

 

Interest Rate

Index(1)

Medallion

  Financial Corp.

 

5/5

 

4/11 - 8/14

 

2/21 - 9/21

 

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

 

$

19,734

 

(2)

$

19,734

 

 

Interest only(3)

 

 

3.75

%

 

Various(3)

Medallion

   Chicago

 

2/23

 

11/11 - 12/11

 

2/21

 

Term loans secured by owned Chicago taxi medallions (4)

 

 

18,449

 

 

 

10,687

 

 

$134 of principal & interest paid monthly

 

 

3.50

%

 

N/A

Medallion

   Funding

 

1/1

 

11/18

 

12/23

 

Term loan unsecured

 

 

1,400

 

 

 

840

 

 

$70 principal & interest paid quarterly

 

 

4.00

%

 

N/A

 

 

 

 

 

 

 

 

 

 

$

39,583

 

 

$

31,261

 

 

 

 

 

 

 

 

 

 

(1)

At December 31, 2020, 30 day LIBOR was 0.14%, 360 day LIBOR was 0.34%, and the prime rate was 3.25%.

(2)

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

(3)

Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging from $12 to $85.

(4)

Guaranteed by the Company.

v3.20.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the twelve months ended December 31, 2020 and 2019.

 

(Dollars in  thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Operating lease costs

 

$

2,384

 

 

$

2,184

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

2,821

 

 

 

2,419

 

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

 

 

251

 

 

 

2,413

 
Schedule of Breakout of Operating leases

The following table presents the breakout of the operating leases as of December 31, 2020 and 2019.

 

 

(Dollars in  thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Operating lease right-of-use assets

 

$

11,737

 

 

$

13,482

 

Other current liabilities

 

 

2,004

 

 

 

2,085

 

Operating lease liabilities

 

 

11,018

 

 

 

12,738

 

Total operating lease liabilities

 

 

13,022

 

 

 

14,823

 

Weighted average remaining lease term

 

6.4 years

 

 

7.3 years

 

Weighted average discount rate

 

5.54%

 

 

 

5.54

%

 
Schedule of Maturities of the Lease Liabilities

At December 31, 2020, maturities of the lease liabilities were as follows.

 

(Dollars in  thousands)

 

 

 

 

2021

 

$

2,474

 

2022

 

 

2,406

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

Thereafter

 

 

3,521

 

Total lease payments

 

 

15,520

 

Less imputed interest

 

 

2,498

 

Total operating lease liabilities

 

$

13,022

 
v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of December 31, 2020 and 2019.

 

(Dollars in thousands)

 

2020

 

 

2019

 

Goodwill and other intangibles

 

$

(44,799

)

 

$

(45,595

)

Provision for loan losses

 

 

19,556

 

 

 

19,198

 

Net operating loss carryforwards (1)

 

 

30,493

 

 

 

22,607

 

Accrued expenses, compensation, and other assets

 

 

1,174

 

 

 

1,701

 

Unrealized gains on other investments

 

 

(6,769

)

 

 

(6,790

)

Total deferred tax liability

 

 

(345

)

 

 

(8,879

)

Valuation allowance

 

 

(462

)

 

 

(462

)

Deferred tax liability, net

 

 

(807

)

 

 

(9,341

)

Taxes receivable

 

 

1,757

 

 

 

1,516

 

Net deferred and other tax liabilities

 

$

950

 

 

$

(7,825

)

 

(1)

As of December 31, 2020, the Company and its subsidiaries had an estimated $124,150 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $30,031 as of December 31, 2020.

Summary of Components of Tax (Provision) Benefit

The components of our tax (provision) benefit for the years ended December 31, 2020, 2019, and 2018 were as follows.

 

(Dollars in thousands)

 

2020

 

 

2019

 

 

2018

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

—

 

 

$

—

 

 

$

(2,797

)

State

 

 

(260

)

 

 

519

 

 

 

(1,078

)

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

7,702

 

 

 

(489

)

 

 

5,270

 

State

 

 

2,632

 

 

 

(371

)

 

 

(1,464

)

Net (provision) benefit for income taxes

 

$

10,074

 

 

$

(341

)

 

$

(69

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

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2020, 2019, and 2018.

 

(Dollars in thousands)

 

2020

 

 

2019

 

 

2018

 

Statutory Federal income tax (provision) benefit at 21%

 

$

7,766

 

 

$

(642

)

 

$

4,935

 

State and local income taxes, net of federal income

   tax benefit

 

 

1,518

 

 

 

(120

)

 

 

440

 

Revaluation of net operating losses

 

 

1,228

 

 

 

380

 

 

 

—

 

Change in effective state income tax rate

 

 

(145

)

 

 

(891

)

 

 

(2,564

)

Change in state income tax accruals

 

 

(260

)

 

 

640

 

 

 

—

 

Income attributable to non-controlling interest

 

 

460

 

 

 

309

 

 

 

—

 

Non deductible expenses

 

 

(453

)

 

 

—

 

 

 

—

 

Utilization of carry forwards

 

 

—

 

 

 

—

 

 

 

(910

)

Appreciation of Medallion Bank

 

 

—

 

 

 

—

 

 

 

(1,974

)

Other

 

 

(40

)

 

 

(17

)

 

 

4

 

Total income tax (provision) benefit

 

$

10,074

 

 

$

(341

)

 

$

(69

)
v3.20.4
Stock Options and Restricted Stock (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Assumption Categories Used to Determine Value of Option Grants The following assumption categories are used to determine the value of any option grants.

 

 

 

Year ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Risk free interest rate

 

 

1.23

%

 

 

2.29

%

 

 

2.82

%

Expected dividend yield

 

 

—

 

 

 

0.66

 

 

 

4.86

 

Expected life of option in years (1)

 

 

6.25

 

 

 

6.25

 

 

 

6.00

 

Expected volatility (2)

 

 

51.03

%

 

 

49.03

%

 

 

30.00

%

 

(1)

Expected life is calculated using the simplified method.

(2)

We determine our expected volatility based on our historical volatility.

 
Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the years ended December 31, 2020, 2019, and 2018.

 

 

 

Number of

Options

 

 

Exercise

Price Per

Share

 

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2017

 

 

320,626

 

 

$2.14-13.84

 

 

$

8.78

 

Granted

 

 

39,000

 

 

5.27-5.58

 

 

 

5.46

 

Cancelled

 

 

(214,960

)

 

9.22-9.24

 

 

 

9.22

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2018

 

 

144,666

 

 

2.14-13.84

 

 

 

7.23

 

Granted

 

 

449,450

 

 

5.21-7.25

 

 

 

6.61

 

Cancelled

 

 

(44,076

)

 

6.55-13.84

 

 

 

9.00

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

550,040

 

 

2.14-13.53

 

 

 

6.58

 

Granted

 

 

444,557

 

 

4.89-6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

2.22-13.53

 

 

 

6.91

 

Exercised (1)

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020 (2)

 

 

951,669

 

 

$2.14-12.55

 

 

$

6.41

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

81,889

 

 

$2.14-13.84

 

 

$

9.25

 

December 31, 2019

 

 

62,778

 

 

2.14-13.53

 

 

 

7.60

 

December 31, 2020 (2)

 

 

178,307

 

 

2.14-12.55

 

 

 

6.33

 

 

(1)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2020, 2019, and 2018.

(2)

The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020.

Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the years ended December 31, 2020, 2019, and 2018.

 

 

 

Number of

Shares

 

 

Grant

Price Per

Share

 

Weighted

Average

Grant Price

 

Outstanding at December 31, 2017

 

 

408,582

 

 

$2.06-10.38

 

$

3.45

 

Granted

 

 

101,010

 

 

3.93-5.27

 

 

4.41

 

Cancelled

 

 

(9,737

)

 

3.93-9.08

 

 

4.66

 

Vested (1)

 

 

(308,940

)

 

2.06-10.38

 

 

3.35

 

Outstanding at December 31, 2018

 

 

190,915

 

 

2.14-5.27

 

 

4.06

 

Granted

 

 

216,148

 

 

4.80-7.25

 

 

6.59

 

Cancelled

 

 

(3,946

)

 

3.93-6.55

 

 

4.97

 

Vested (1)

 

 

(118,238

)

 

2.06-4.80

 

 

3.89

 

Outstanding at December 31, 2019

 

 

284,879

 

 

3.95-7.25

 

 

6.01

 

Granted

 

 

229,408

 

 

4.89-6.68

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

3.95-7.25

 

 

6.93

 

Vested (1)

 

 

(89,392

)

 

3.95-6.55

 

 

5.37

 

Outstanding at December 31, 2020 (2)

 

 

416,140

 

 

$4.39-7.25

 

$

6.24

 

 

(1)

The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018.

(2)

The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020.

Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2020.

 

 

 

Number of

Options

 

 

Exercise Price

Per Share

 

Weighted

Average

Exercise Price

 

Outstanding at December 31, 2019

 

 

487,262

 

 

$2.14-7.25

 

$

6.45

 

Granted

 

 

444,557

 

 

4.89-6.68

 

 

6.24

 

Cancelled

 

 

(20,630

)

 

6.55-7.25

 

 

6.76

 

Vested

 

 

(137,827

)

 

2.14-6.55

 

 

6.05

 

Outstanding at December 31, 2020

 

 

773,362

 

 

$4.89-7.25

 

$

6.42

 

 
v3.20.4
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Schedule of Segment Data

The following tables present segment data as of and for the twelve months ended December 31, 2020 and 2019, and as of and for the nine months ended December 31, 2018.

 

Year Ended December 31, 2020

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

110,706

 

 

$

27,273

 

 

$

6,926

 

 

$

(1,518

)

 

$

—

 

 

$

1,575

 

 

$

144,962

 

Total interest expense

 

 

13,013

 

 

 

5,699

 

 

 

2,538

 

 

 

3,610

 

 

 

163

 

 

 

9,128

 

 

 

34,151

 

Net interest income (loss)

 

 

97,693

 

 

 

21,574

 

 

 

4,388

 

 

 

(5,128

)

 

 

(163

)

 

 

(7,553

)

 

 

110,811

 

Provision for loan losses

 

 

23,736

 

 

 

3,778

 

 

 

—

 

 

 

42,276

 

 

 

—

 

 

 

27

 

 

 

69,817

 

Net interest income (loss) after loss provision

 

 

73,957

 

 

 

17,796

 

 

 

4,388

 

 

 

(47,404

)

 

 

(163

)

 

 

(7,580

)

 

 

40,994

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,042

 

 

 

—

 

 

 

20,042

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,366

)

 

 

—

 

 

 

(8,366

)

Other income (expense), net

 

 

(27,341

)

 

 

(9,611

)

 

 

(3,196

)

 

 

(30,366

)

 

 

(7,973

)

 

 

(11,164

)

 

 

(89,651

)

Net income (loss) before taxes

 

 

46,616

 

 

 

8,185

 

 

 

1,192

 

 

 

(77,770

)

 

 

3,540

 

 

 

(18,744

)

 

 

(36,981

)

Income tax (provision) benefit

 

 

(12,004

)

 

 

(2,108

)

 

 

(299

)

 

 

19,520

 

 

 

(889

)

 

 

5,854

 

 

 

10,074

 

Net income (loss) after taxes

 

$

34,612

 

 

$

6,077

 

 

$

893

 

 

$

(58,250

)

 

$

2,651

 

 

$

(12,890

)

 

$

(26,907

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

765,338

 

 

$

328,876

 

 

$

62,037

 

 

$

12,725

 

 

$

—

 

 

$

3,314

 

 

$

1,172,290

 

Total assets

 

 

777,605

 

 

 

340,494

 

 

 

80,622

 

 

 

124,554

 

 

 

33,711

 

 

 

285,425

 

 

 

1,642,411

 

Total funds borrowed

 

 

621,735

 

 

 

272,284

 

 

 

65,924

 

 

 

98,636

 

 

 

8,689

 

 

 

244,987

 

 

 

1,312,255

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.59

%

 

 

2.07

%

 

 

1.07

%

 

 

(33.21

%)

 

 

7.98

%

 

 

(5.06

%)

 

 

(2.16

)%

Return on average equity

 

 

22.93

 

 

 

10.35

 

 

 

5.17

 

 

 

(165.21

)

 

 

(363.66

)

 

 

(23.29

)

 

 

(10.90

)

Interest yield

 

 

14.90

 

 

 

9.66

 

 

 

10.51

 

 

 

(2.11

)

 

N/A

 

 

N/A

 

 

 

11.32

 

Net interest margin

 

 

13.15

 

 

 

7.62

 

 

 

6.66

 

 

 

(7.14

)

 

N/A

 

 

N/A

 

 

 

8.65

 

Reserve coverage

 

 

3.45

 

 

 

1.54

 

 

 

0.00

 

(1)

 

66.31

 

 

N/A

 

 

N/A

 

 

 

4.68

 

Delinquency status(2)

 

 

0.70

 

 

 

0.05

 

 

 

0.11

 

(1)

 

3.57

 

 

N/A

 

 

N/A

 

 

 

0.57

 

Charge-off ratio

 

 

1.95

 

 

 

0.44

 

 

 

0.04

 

(3)

 

59.38

 

 

N/A

 

 

N/A

 

 

 

5.00

 

 

(1)

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

(2)

Loans 90 days or more past due.

(3)

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

 

 

Year Ended December 31, 2019

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

99,463

 

 

$

19,943

 

 

$

7,183

 

 

$

3,665

 

 

$

—

 

 

$

2,308

 

 

$

132,562

 

Total interest expense

 

 

13,304

 

 

 

4,757

 

 

 

2,833

 

 

 

7,962

 

 

 

159

 

 

 

6,030

 

 

 

35,045

 

Net interest income (loss)

 

 

86,159

 

 

 

15,186

 

 

 

4,350

 

 

 

(4,297

)

 

 

(159

)

 

 

(3,722

)

 

 

97,517

 

Provision for loan losses

 

 

28,638

 

 

 

1,598

 

 

 

364

 

 

 

16,331

 

 

 

—

 

 

 

455

 

 

 

47,386

 

Net interest income (loss) after loss provision

 

 

57,521

 

 

 

13,588

 

 

 

3,986

 

 

 

(20,628

)

 

 

(159

)

 

 

(4,177

)

 

 

50,131

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,742

 

 

 

—

 

 

 

18,742

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,996

)

 

 

—

 

 

 

(8,996

)

Other income (expense), net

 

 

(23,490

)

 

 

(7,520

)

 

 

(1,149

)

 

 

(10,493

)

 

 

(6,942

)

 

 

(7,946

)

 

 

(57,540

)

Net income (loss) before taxes

 

 

34,031

 

 

 

6,068

 

 

 

2,837

 

 

 

(31,121

)

 

 

2,645

 

 

 

(12,123

)

 

 

2,337

 

Income tax (provision) benefit

 

 

(8,813

)

 

 

(1,572

)

 

 

(684

)

 

 

7,596

 

 

 

(329

)

 

 

3,461

 

 

 

(341

)

Net income (loss) after taxes

 

$

25,218

 

 

$

4,496

 

 

$

2,153

 

 

$

(23,525

)

 

$

2,316

 

 

$

(8,662

)

 

$

1,996

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

695,257

 

 

$

244,716

 

 

$

66,405

 

 

$

105,022

 

 

$

—

 

 

$

3,362

 

 

$

1,114,762

 

Total assets

 

 

707,377

 

 

 

252,704

 

 

 

84,924

 

 

 

217,483

 

 

 

31,538

 

 

 

247,641

 

 

 

1,541,667

 

Total funds borrowed

 

 

563,805

 

 

 

201,605

 

 

 

68,666

 

 

 

176,825

 

 

 

7,794

 

 

 

150,898

 

 

 

1,169,593

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

2.20

%

 

 

2.44

%

 

 

(9.73

%)

 

 

7.28

%

 

 

(3.71

%)

 

 

(0.12

)%

Return on average equity

 

 

17.19

 

 

 

10.22

 

 

 

12.21

 

 

 

(48.49

)

 

 

(96.37

)

 

 

(14.26

)

 

 

(0.59

)

Interest yield

 

 

15.39

 

 

 

9.50

 

 

 

11.39

 

 

 

2.88

 

 

N/A

 

 

N/A

 

 

 

11.75

 

Net interest margin

 

 

13.33

 

 

 

7.24

 

 

 

6.90

 

 

 

(3.38

)

 

N/A

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

2.53

 

 

 

1.05

 

 

 

0.00

 

(1)

 

19.48

 

 

N/A

 

 

N/A

 

 

 

3.97

 

Delinquency status(2)

 

 

0.84

 

 

 

0.07

 

 

 

0.15

 

(1)

 

2.04

 

 

N/A

 

 

N/A

 

 

 

0.76

 

Charge-off ratio

 

 

2.69

 

 

 

0.37

 

 

 

1.30

 

(3)

 

14.68

 

 

N/A

 

 

N/A

 

 

 

3.60

 

 

(1)

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

(2)

Loans 90 days or more past due.

(3)

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

 

 

Nine Months Ended December 31, 2018

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

Lending

 

 

Medallion

Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

68,870

 

 

$

12,799

 

 

$

7,076

 

 

$

6,317

 

 

$

—

 

 

$

1,741

 

 

$

96,803

 

Total interest expense

 

 

6,986

 

 

 

2,290

 

 

 

1,502

 

 

 

10,125

 

 

 

121

 

 

 

3,792

 

 

 

24,816

 

Net interest income (loss)

 

 

61,884

 

 

 

10,509

 

 

 

5,574

 

 

 

(3,808

)

 

 

(121

)

 

 

(2,051

)

 

 

71,987

 

Provision for loan losses

 

 

15,118

 

 

 

2,453

 

 

 

—

 

 

 

41,437

 

 

 

—

 

 

 

—

 

 

 

59,008

 

Net interest income (loss) after loss

   provision

 

 

46,766

 

 

 

8,056

 

 

 

5,574

 

 

 

(45,245

)

 

 

(121

)

 

 

(2,051

)

 

 

12,979

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,368

 

 

 

—

 

 

 

14,368

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,121

)

 

 

—

 

 

 

(7,121

)

Other income (expense), net

 

 

(14,242

)

 

 

(3,093

)

 

 

(1,824

)

 

 

9,742

 

 

 

(11,476

)

 

 

(6,489

)

 

 

(27,382

)

Net income (loss) before taxes

 

 

32,524

 

 

 

4,963

 

 

 

3,750

 

 

 

(35,503

)

 

 

(4,350

)

 

 

(8,540

)

 

 

(7,156

)

Income tax (provision) benefit

 

 

(8,579

)

 

 

(1,319

)

 

 

(862

)

 

 

7,938

 

 

 

1,108

 

 

 

1,005

 

 

 

(709

)

Net income (loss) after taxes

 

$

23,945

 

 

$

3,644

 

 

$

2,888

 

 

$

(27,565

)

 

$

(3,242

)

 

$

(7,535

)

 

$

(7,865

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

580,182

 

 

$

181,359

 

 

$

59,973

 

 

$

155,863

 

 

$

—

 

 

$

4,110

 

 

$

981,487

 

Total assets

 

 

590,746

 

 

 

188,892

 

 

 

93,807

 

 

 

273,501

 

 

 

29,925

 

 

 

204,975

 

 

 

1,381,846

 

Total funds borrowed

 

 

434,527

 

 

 

143,815

 

 

 

53,719

 

 

 

294,465

 

 

 

7,649

 

 

 

127,853

 

 

 

1,062,028

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.48

%

 

 

2.56

%

 

 

4.27

%

 

 

(10.13

)%

 

 

(11.69

)%

 

 

(4.07

)%

 

 

(0.90

)%

Return on average equity

 

 

22.60

 

 

 

11.30

 

 

 

9.43

 

 

NM

 

 

NM

 

 

 

(12.37

)

 

 

(4.62

)

Interest yield

 

 

15.78

 

 

 

9.06

 

 

 

14.25

 

 

 

3.58

 

 

N/A

 

 

N/A

 

 

 

10.98

 

Net interest margin

 

 

14.18

 

 

 

7.44

 

 

 

11.23

 

 

 

(2.16

)

 

N/A

 

 

N/A

 

 

 

8.19

 

Reserve coverage

 

 

1.17

 

 

 

0.98

 

 

 

0.00

 

 

 

15.11

 

 

N/A

 

 

N/A

 

 

 

3.58

 

Delinquency status(2)

 

 

0.73

 

 

 

0.07

 

 

 

0.44

 

(1)

 

9.43

 

 

N/A

 

 

N/A

 

 

 

2.14

 

Charge-off ratio

 

 

1.89

 

 

 

0.46

 

 

 

0.00

 

 

 

7.21

 

 

N/A

 

 

N/A

 

 

 

2.73

 

 

(1)

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

(2)

Loans 90 days or more past due.
v3.20.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Under Employment Agreements Employment agreements expire at various dates through 2025, with future minimum payments under these agreements of approximately $12,056,000 as follows.

(Dollars in thousands)

 

 

 

 

2021

 

$

3,965

 

2022

 

 

3,081

 

2023

 

 

2,073

 

2024

 

 

2,073

 

2025

 

 

864

 

Thereafter

 

 

—

 

Total

 

$

12,056

 

 

 
v3.20.4
Selected Financial Ratios and Other Data (Tables)
 12 Months Ended
Dec. 31, 2020
Investment Company [Abstract]  
Summary of Selected Financial Ratios and Other Data

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

 

 

 

Three

Months

Ended

March 31,

 

(Dollars in thousands, except per share data)

 

2018

 

Net share data

 

 

 

 

Net asset value at the beginning of the year

 

$

11.80

 

Net investment income (loss)

 

 

(0.15

)

Income tax provision (benefit)

 

 

0.03

 

Net realized gains (losses) on investments

 

 

(1.44

)

Net change in unrealized appreciation on investments

 

 

0.94

 

Net increase (decrease) in net assets resulting from

   operations

 

 

(0.62

)

Issuance of common stock

 

 

(0.03

)

Total increase (decrease) in net asset value

 

 

(0.65

)

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

 

$

11.15

 

Per share market value at beginning of year

 

$

3.53

 

Per share market value at end of period/year

 

 

4.65

 

Total return (2)

 

 

(129

%)

Ratios/supplemental data

 

 

 

 

Total shareholders’ equity (net assets)

 

$

272,437

 

Average net assets

 

 

284,021

 

Total expense ratio (3) (4)

 

 

10.02

%

Operating expenses to average net assets (4)

 

 

5.87

 

Net investment income (loss) after income taxes to average

   net assets (4)

 

 

(4.61

)

 

(1)

Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and $0.00 of undistributed net realized gains per share for the period presented.

(2)

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

(3)

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

(4)

MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter.  

v3.20.4
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2020
Investments All Other Investments [Abstract]  
Summary of Carrying Values and Fair Values of Financial Instruments The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

 

December 31, 2020

 

 

December 31, 2019

 

(Dollars in  thousands)

 

Carrying

Amount

 

 

Fair

Value

 

 

Carrying

Amount

 

 

Fair

Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents, and federal funds sold (1)

 

$

112,040

 

 

$

112,040

 

 

$

67,821

 

 

$

67,821

 

Equity investments

 

 

9,746

 

 

 

9,746

 

 

 

10,079

 

 

 

10,079

 

Investment securities

 

 

46,792

 

 

 

46,792

 

 

 

48,998

 

 

 

48,998

 

Loans receivable

 

 

1,172,290

 

 

 

1,172,290

 

 

 

1,114,762

 

 

 

1,114,762

 

Accrued interest receivable (2)

 

 

10,338

 

 

 

10,338

 

 

 

8,662

 

 

 

8,662

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (3)

 

 

1,312,255

 

 

 

1,312,591

 

 

 

1,169,593

 

 

 

1,171,274

 

Accrued interest payable (2)

 

 

4,673

 

 

 

4,673

 

 

 

4,398

 

 

 

4,398

 

 

(1)

Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17.

(2)

Categorized as level 3 within the fair value hierarchy. See Note 17.

(3)

As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681.

 
v3.20.4
Fair Value of Assets and liabilities (Tables)
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented.

The following 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, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,500

 

 

$

—

 

 

$

1,500

 

Available for sale investment securities

 

 

—

 

 

 

46,792

 

 

 

—

 

 

 

46,792

 

Total(1)

 

$

—

 

 

$

48,292

 

 

$

—

 

 

$

48,292

 

 

(1)

Total unrealized gains of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2020 related to these assets.

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale investment securities (1)

 

$

—

 

 

$

48,998

 

 

$

—

 

 

$

48,998

 

Total

 

$

—

 

 

$

48,998

 

 

$

—

 

 

$

48,998

 

 

(1)

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

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2020 and 2019.

 

December 31, 2020

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,746

 

 

$

9,746

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

62,174

 

 

 

62,174

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

54,560

 

 

 

54,560

 

Total

 

$

—

 

 

$

—

 

 

$

126,480

 

 

$

126,480

 

 

December 31, 2019

(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,079

 

 

$

10,079

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

34,915

 

 

 

34,915

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

52,711

 

 

 

52,711

 

Total

 

$

—

 

 

$

—

 

 

$

97,705

 

 

$

97,705

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

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of December 31, 2020 and 2019.

 

(Dollars in thousands)

 

Fair Value

at 12/31/20

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity investments

 

$

8,291

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

62,174

 

 

Market approach

 

Historical and actual loss experience

 

1.50% - 6.00%

 

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

 

Median transfer price (2)

 

$0.6 - 108.7

 

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

53,128

 

 

Market approach

 

Median transfer price (2)

 

$0.6 - 108.7

 

 

 

1,432

 

 

 

 

Collateral value (3)

 

$0.7 - 32.3

 

(1)

Includes projections based on revenue, EBITDA, leverage and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)

Represents amount net of liquidation costs.

(3)

Relates to the recreation portfolio.

 

(Dollars in thousands)

 

Fair Value

at 12/31/19

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range

(Weighted Average)

Equity Investments

 

$

7,435

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower

 

N/A

 

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,189

 

 

Investee book value adjusted for market appreciation

 

Financial condition and operating performance of the investee

 

N/A

 

 

 

 

 

 

Public company comparables

 

Business enterprise value

 

$4,855 – $6,120

 

 

 

 

 

 

 

 

Business enterprise value/revenue multiples

 

1.59-5.98x

 

 

 

 

 

 

 

 

Discount for lack of marketability

 

25%

 

 

 

1,455

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

 
v3.20.4
Parent Company Only Condensed Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheets

The following shows the condensed financial information of Medallion Financial Corp. (parent company only).

Condensed Balance Sheets

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

33,743

 

 

$

4,477

 

Net loans receivable

 

 

12,293

 

 

 

26,802

 

Loan collateral in process of foreclosure

 

 

9,960

 

 

 

11,104

 

Goodwill and intangible assets

 

 

175,731

 

 

 

177,176

 

Investment in bank subsidiaries

 

 

149,686

 

 

 

158,201

 

Investment in non-bank subsidiaries

 

 

88,165

 

 

 

92,856

 

Income tax receivable

 

 

1,470

 

 

 

4,708

 

Other assets

 

 

10,912

 

 

 

14,111

 

Total assets

 

$

481,960

 

 

$

489,435

 

Liabilities

 

 

 

 

 

 

 

 

Other liabilities

 

$

21,302

 

 

$

18,660

 

Intercompany payables

 

 

51,352

 

 

 

54,904

 

Short-term borrowings

 

 

53,359

 

 

 

8,188

 

Deferred tax liabilities

 

 

24,172

 

 

 

30,728

 

Long-term borrowings

 

 

100,367

 

 

 

113,807

 

Total liabilities

 

 

250,552

 

 

 

226,287

 

Total stockholders’ equity

 

 

231,408

 

 

 

263,148

 

Total liabilities and equity

 

$

481,960

 

 

$

489,435

 
Condensed Statements of Operations

Condensed Statements of Operations

 

 

 

Year Ended

 

 

 

 

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Interest income

 

$

(2,824

)

 

$

(2,552

)

 

$

(1,958

)

Interest expense

 

 

8,602

 

 

 

8,856

 

 

 

5,480

 

Net interest loss

 

 

(11,426

)

 

 

(11,408

)

 

 

(7,438

)

Provision for loan losses

 

 

5,127

 

 

 

6,377

 

 

 

19,190

 

Net interest loss after provision for loan losses

 

 

(16,553

)

 

 

(17,785

)

 

 

(26,628

)

Other income (expense), net

 

 

(22,062

)

 

 

(13,686

)

 

 

(16,913

)

Loss before income taxes and undistributed earnings of

   subsidiaries

 

 

(38,615

)

 

 

(31,471

)

 

 

(43,541

)

Income tax benefit

 

 

10,454

 

 

 

7,013

 

 

 

5,328

 

Loss before undistributed earnings of subsidiaries

 

 

(28,161

)

 

 

(24,458

)

 

 

(38,213

)

Undistributed earnings (losses) of subsidiaries

 

 

(6,622

)

 

 

22,696

 

 

 

28,041

 

Net income (loss) attributable to parent company

 

$

(34,783

)

 

$

(1,762

)

 

$

(10,172

)

 

 
Condensed Statements of Other Comprehensive Income (Loss)

Condensed Statements of Other Comprehensive Income (Loss)

 

 

 

Year Ended

 

 

 

 

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

Net loss

 

$

(34,783

)

 

$

(1,762

)

 

$

(10,172

)

Other comprehensive income (loss)

 

 

1,013

 

 

 

1,081

 

 

 

(82

)

Total comprehensive income (loss) attributable to Medallion Financial Corp.

 

$

(33,770

)

 

$

(681

)

 

$

(10,254

)
Condensed Statements of Cash Flow

Condensed Statements of Cash Flow

 

 

 

Year Ended

 

 

 

 

 

(Dollars in thousands)

 

December 31, 2020

 

 

December 31, 2019

 

 

Nine Months Ended

December 31, 2018

 

CASH FLOWS FROM OPERATING ACTIVITIES

   Net loss

 

$

(34,783

)

 

$

(1,762

)

 

$

(10,172

)

Adjustments to reconcile net loss to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed (earnings) losses of subsidiaries

 

 

6,622

 

 

 

(22,696

)

 

 

(28,041

)

Provision for loan losses

 

 

5,127

 

 

 

6,377

 

 

 

19,190

 

Depreciation and amortization

 

 

5,357

 

 

 

5,484

 

 

 

5,451

 

Change in deferred and other tax assets/liabilities, net

 

 

(3,317

)

 

 

(2,225

)

 

 

4,512

 

Net change in loan collateral in process of foreclosure

 

 

4,940

 

 

 

906

 

 

 

678

 

Net change in unrealized depreciation on investments

 

 

3,493

 

 

 

1,786

 

 

 

—

 

Stock-based compensation expense

 

 

2,031

 

 

 

1,221

 

 

 

425

 

Decrease in other assets

 

 

2,299

 

 

 

988

 

 

 

4,073

 

Increase in deferred financing costs

 

 

(1,233

)

 

 

(1,297

)

 

 

—

 

Decrease in intercompany payables

 

 

(3,552

)

 

 

(8,448

)

 

 

(3,368

)

Increase in other liabilities

 

 

2,336

 

 

 

(1,759

)

 

 

4,237

 

Net cash used by operating activities

 

 

(10,680

)

 

 

(21,425

)

 

 

(3,015

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Loans originated

 

 

(14

)

 

 

(3,312

)

 

 

(309

)

Proceeds from principal receipts, sales, and maturities of loans and investments

 

 

1,193

 

 

 

2,313

 

 

 

10,900

 

Purchases of investments

 

 

(2,304

)

 

 

(1,125

)

 

 

—

 

Proceeds from sale and principal payments of loan collateral in process of foreclosure

 

 

1,276

 

 

 

2,403

 

 

 

487

 

Dividends from subsidiaries

 

 

7,597

 

 

 

6,248

 

 

 

5,200

 

Net cash provided by investing activities

 

 

7,748

 

 

 

6,527

 

 

 

16,278

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

33,600

 

 

 

36,000

 

 

 

—

 

Repayments of funds borrowed

 

 

(1,402

)

 

 

(17,735

)

 

 

(17,208

)

Net cash provided by (used for) financing activities

 

 

32,198

 

 

 

18,265

 

 

 

(17,208

)

NET INCREASE (DECREASE) IN CASH AND

   CASH EQUIVALENTS

 

 

29,266

 

 

 

3,367

 

 

 

(3,945

)

Cash and cash equivalents, beginning of period

 

 

4,477

 

 

 

1,110

 

 

 

5,055

 

Cash and cash equivalents, end of period

 

$

33,743

 

 

$

4,477

 

 

$

1,110

 

 
v3.20.4
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2020
USD ($)
Medallion
Dec. 31, 2019
USD ($)
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 $ 2,932,000 $ 3,091,000
Medallion Financing Trust I [Member]    
Subsidiary or Equity Method Investee [Line Items]    
Aggregate assets of trust $ 36,083,000  
v3.20.4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Aug. 31, 2019
Mar. 31, 2019
Apr. 02, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Interest-bearing funds deposited in other banks     $ 1,500,000                
Non-marketable securities     9,746,000 $ 10,079,000              
Net premium on investment securities [1]         $ 3,287,000            
Investment securities Amortized to interest income $ 21,000 $ 80,000 291,000 79,000              
Net loan origination costs     20,684,000 17,839,000              
Net amortization to income     6,021,000 4,952,000 3,128,000            
Premiums in loan portfolio     $ 40,541,000 60,413,000              
Percentage of write down of loan balance     40.00%                
Loans pledged as collateral     $ 15,367,000 28,833,000              
Principal portion of loans serviced, fair value     107,131,000 113,581,000              
Loans write down to collateral value     $ 75,844,000 49,961,000              
Intangible assets useful life     20 years                
Goodwill     $ 150,803,000 150,803,000              
Intangible assets, net     51,090,000 52,536,000              
Amortization of intangible assets     1,445,000 1,446,000 1,083,000 [1]            
Financing receivable, recorded investment, 90 days past due and still accruing     0 0              
Depreciation and amortization     412,000 418,000 422,000            
Amortization expense     2,558,000 2,348,000 $ 1,864,000            
Deferred costs     $ 5,805,000 $ 5,105,000              
Potential dilutive common shares excluded from EPS computation     934,003 462,180 100,000            
Stock based compensation award     444,557 449,450 39,000            
Stock based compensation award, Amount     $ 2,030,000 $ 1,221,000 $ 576,000            
Stock based compensation award per diluted common share     $ 0.08 $ 0.05 $ 0.02            
Unrecognized compensation cost related to unvested stock options and restricted stock     $ 2,405,000                
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period     48 months                
Tier 1 leverage capital ratio     16.93%                
Capital conversation buffer       2.50% 2.50%            
Restricted Shares [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Stock based compensation award     229,408 216,148 101,010            
Restricted Stock Units [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Stock based compensation award     47,156 26,040 0            
Medallion [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Premiums in loan portfolio     $ 4,282,000 $ 17,181,000              
Loans write down to collateral value     49,361,000 22,205,000              
Financing receivable, recorded investment, 90 days past due and still accruing     0 0              
New York City [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Loans write down to collateral value     79,500,000                
New York City [Member] | Medallion [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Loans write down to collateral value     46,087,000                
91+ [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Premiums in loan portfolio     6,878,000 8,663,000              
91+ [Member] | Medallion [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Premiums in loan portfolio     1,290,000 2,572,000              
91+ [Member] | Loans [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Premiums in loan portfolio     $ 6,878,000 $ 8,663,000              
Total loans more than 90 days past due ,percentage     0.57% 0.76%              
Medallion Bank [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Appreciation in Investment in Medallion Bank $ 39,826,000               $ 7,849,000 $ 128,918,000 $ 15,500,000
Net amortization to income         $ 3,993,000            
Amortization of intangible assets     $ 0 $ 0              
RPAC [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Premiums in loan portfolio               $ 12,387,000      
Financing receivable, recorded investment, 90 days past due and still accruing     2,717,000 5,758,000              
Loan portfolio premium amortized to interest income     3,041,000 3,289,000 $ 3,339,000            
Bank Holding Company Accounting [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Net premium on investment securities     $ 278,000 $ 248,000              
Private Placement [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Interest reserve           $ 2,970,000 $ 2,970,000        
Minimum [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Interest bearing loan term     4 years                
Estimated useful life of fixed assets     3 years                
Tier 1 leverage capital to total assets ratio     15.00%                
Maximum [Member]                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Interest bearing loan term     7 years                
Estimated useful life of fixed assets     10 years                
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Investments In Loans [Line Items]    
Intangibles assets $ 51,090 $ 52,536
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 18,974 20,075
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets 5,951 6,296
Race Organization [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 26,165 $ 26,165
v3.20.4
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]      
Net loss/net increase in net assets resulting from operations available to common stockholders $ (34,783) $ (1,762) $ (25,046)
Weighted average common shares outstanding applicable to basic EPS 24,445,452 24,342,979 24,214,978 [1]
Adjusted weighted average common shares outstanding applicable to diluted EPS 24,445,452 24,342,979 24,214,978 [1]
Basic net loss per share $ (1.42) $ (0.07) $ (1.03) [1]
Diluted net loss per share $ (1.42) $ (0.07) $ (1.03) [1]
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
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 4.0  
Regulatory, Minimum, Common equity tier 1 capital ratio 7.00%  
Regulatory, Minimum, Tier 1 capital ratio 8.5  
Regulatory, Minimum, Total capital ratio 10.5  
Regulatory, Well-Capitalized, Common equity tier 1 capital $ 0  
Regulatory, Well-Capitalized, Tier 1 capital 0  
Regulatory, Well-Capitalized, Total capital 0  
Regulatory, Well-Capitalized, Average assets 0  
Regulatory, Well-Capitalized, Risk-weighted assets $ 0  
Regulatory, Well-Capitalized, Leverage ratio 5.0  
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio 6.50%  
Regulatory, Well-Capitalized, Tier 1 capital ratio 8.0  
Regulatory, Well-Capitalized, Total capital ratio 10.0  
Common equity tier 1 capital $ 148,507 $ 158,187
Tier 1 capital 217,295 226,975
Total capital 233,460 241,842
Average assets 1,283,664 1,172,866
Risk-weighted assets $ 1,243,783 $ 1,144,337
Leverage ratio 16.9 19.4
Common equity Tier 1 capital ratio 11.9 13.8
Tier 1 capital ratio 17.5 19.8
Total capital ratio 18.8 21.1
v3.20.4
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 45,155 $ 48,614
Gross Unrealized Gains 1,684 597
Gross Unrealized Losses (47) (213)
Fair Value 46,792 48,998
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 34,929 36,335
Gross Unrealized Gains 1,495 411
Gross Unrealized Losses (45) (112)
Fair Value 36,379 36,634
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 10,226 12,279
Gross Unrealized Gains 189 186
Gross Unrealized Losses (2) (101)
Fair Value $ 10,413 $ 12,364
v3.20.4
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 25  
Amortized Cost, due after one year through five years 12,485  
Amortized Cost, due after five years through ten years 14,499  
Amortized Cost, due after ten years 18,146  
Amortized Cost 45,155 $ 48,614
Market Value, due in one year or less 25  
Market Value, due after one year through five years 12,956  
Market Value, due after five years through ten years 15,214  
Market Value, due after ten years 18,597  
Market Value, total $ 46,792 $ 48,998
v3.20.4
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (45) $ (91)
Fair Value, Less than Twelve Months 4,028 10,390
Gross Unrealized Losses, Twelve Months and Over (2) (122)
Fair Value, Twelve Months and Over 196 7,678
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (45) (74)
Fair Value, Less than Twelve Months 4,028 8,291
Gross Unrealized Losses, Twelve Months and Over   (38)
Fair Value, Twelve Months and Over   4,939
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months   (17)
Fair Value, Less than Twelve Months   2,099
Gross Unrealized Losses, Twelve Months and Over (2) (84)
Fair Value, Twelve Months and Over $ 196 $ 2,739
v3.20.4
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 1,205,776,000 [1] $ 1,136,694,000 [2]    
Allowance for loan losses (57,548,000) [3],[4] (46,093,000) [3],[4] $ (36,395,000) $ (46,093,000)
Net loans receivable 1,172,290,000 1,114,762,000 981,487,000  
Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans 1,229,838,000 1,160,855,000 1,017,882,000  
Allowance for loan losses (57,548,000) (46,093,000)    
Net loans receivable $ 1,172,290,000 $ 1,114,762,000    
Percentage of total gross loans 100.00% 100.00%    
Recreation [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 767,374,000 [1] $ 689,810,000 [2]    
Allowance for loan losses (27,348,000) (18,075,000)    
Recreation [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 792,686,000 $ 713,332,000 587,038,000  
Percentage of total gross loans 65.00% 62.00%    
Home Improvement [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 336,885,000 [1] $ 250,830,000 [2]    
Allowance for loan losses (5,157,000) (2,608,000)    
Home Improvement [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 334,033,000 $ 247,324,000 183,155,000  
Percentage of total gross loans 27.00% 21.00%    
Commercial [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 65,327,000 $ 69,767,000 64,083,000  
Percentage of total gross loans 5.00% 6.00%    
Medallion [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 36,153,000 [1] $ 126,287,000 [2]    
Allowance for loan losses (25,043,000) (25,410,000)    
Medallion [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 37,768,000 $ 130,432,000 $ 183,606,000  
Percentage of total gross loans 3.00% 11.00%    
Strategic Partnership [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans [1] $ 24,000      
Allowance for loan losses 0      
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 24,000      
[1] Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
[2] Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.
[3] As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[4] As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.20.4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] $ 1,136,694,000    
Charge-offs, net [2] (58,362,000) $ (37,688,000)  
Transfer to loan collateral in process of foreclosure, net (47,274,000) (31,348,000)  
Amortization of origination costs (6,022,000) (4,952,000) $ (3,132,000) [3]
Paid-in-kind interest 1,188,000 834,000 1,869,000 [3]
Loans transferred to other foreclosed property 1,800,000    
Gross loans, ending balance 1,205,776,000 [4] 1,136,694,000 [1]  
Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 689,810,000    
Transfer to loan collateral in process of foreclosure, net (14,871,000) (14,512,000)  
Gross loans, ending balance 767,374,000 [4] 689,810,000 [1]  
Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 250,830,000    
Gross loans, ending balance 336,885,000 [4] 250,830,000 [1]  
Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 126,287,000    
Transfer to loan collateral in process of foreclosure, net (32,403,000) (16,836,000)  
Gross loans, ending balance 36,153,000 [4] 126,287,000 [1]  
Strategic Partnership [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Charge-offs, net 0    
Gross loans, ending balance [4] 24,000    
Bank Holding Company Accounting [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 1,160,855,000 1,017,882,000  
Loan originations 497,221,000 462,093,000  
Principal payments, sales, and maturities (321,831,000) (251,653,000)  
Charge-offs, net (58,362,000) (37,688,000)  
Transfer to loan collateral in process of foreclosure, net (47,254,000) (31,348,000)  
Amortization of origination costs (6,022,000) (4,952,000)  
Amortization of loan premium (3,042,000) (3,289,000)  
FASB origination costs, net 8,885,000 8,976,000  
Paid-in-kind interest 1,188,000 834,000  
Loans transferred to other foreclosed property (1,800,000)    
Gross loans, ending balance 1,229,838,000 1,160,855,000 1,017,882,000
Bank Holding Company Accounting [Member] | Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 713,332,000 587,038,000  
Loan originations 294,885,000 301,403,000  
Principal payments, sales, and maturities (187,989,000) (146,873,000)  
Charge-offs, net (14,457,000) (17,419,000)  
Transfer to loan collateral in process of foreclosure, net (14,871,000) (14,512,000)  
Amortization of origination costs (7,809,000) (6,428,000)  
Amortization of loan premium (191,000) (247,000)  
FASB origination costs, net 9,786,000 10,370,000  
Gross loans, ending balance 792,686,000 713,332,000 587,038,000
Bank Holding Company Accounting [Member] | Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 247,324,000 183,155,000  
Loan originations 193,098,000 142,112,000  
Principal payments, sales, and maturities (105,813,000) (76,157,000)  
Charge-offs, net (1,229,000) (786,000)  
Amortization of origination costs 1,910,000 1,561,000  
Amortization of loan premium (320,000) (416,000)  
FASB origination costs, net (937,000) (2,145,000)  
Gross loans, ending balance 334,033,000 247,324,000 183,155,000
Bank Holding Company Accounting [Member] | Commercial [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 69,767,000 64,083,000  
Loan originations 7,575,000 18,578,000  
Principal payments, sales, and maturities (13,183,000) (13,553,000)  
Charge-offs, net (28,000) (819,000)  
Amortization of origination costs 8,000 34,000  
FASB origination costs, net   610,000  
Paid-in-kind interest 1,188,000 834,000  
Gross loans, ending balance 65,327,000 69,767,000 64,083,000
Bank Holding Company Accounting [Member] | Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 130,432,000 183,606,000  
Principal payments, sales, and maturities (13,207,000) (15,070,000)  
Charge-offs, net (42,648,000) (18,664,000)  
Transfer to loan collateral in process of foreclosure, net (32,383,000) (16,836,000)  
Amortization of origination costs (131,000) (119,000)  
Amortization of loan premium (2,531,000) (2,626,000)  
FASB origination costs, net 36,000 141,000  
Loans transferred to other foreclosed property (1,800,000)    
Gross loans, ending balance 37,768,000 $ 130,432,000 $ 183,606,000
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Loan originations 1,663,000    
Principal payments, sales, and maturities (1,639,000)    
Gross loans, ending balance $ 24,000    
[1] Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.
[2] As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company.
[3] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[4] Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
v3.20.4
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]          
Allowance for loan losses - beginning balance $ 46,093 $ 46,093 [1],[2] $ 36,395    
Total charge-offs   (75,844) (49,961)    
Total recoveries   17,482 12,273    
Net charge-offs [3]   (58,362) (37,688)    
Provision for loan losses 59,008 69,817 47,386 $ 59,008 [4]  
Allowance for loan losses - ending balance $ 46,093 46,093 [1],[2] 36,395 $ 36,395 $ 57,548 [1],[2]
Recreation [Member]          
Financing Receivable, Allowance for Credit Losses [Line Items]          
Allowance for loan losses - beginning balance   18,075      
Total charge-offs   (23,543) (24,433)    
Total recoveries   9,086 7,014    
Allowance for loan losses - ending balance   18,075     27,348
Home Improvement [Member]          
Financing Receivable, Allowance for Credit Losses [Line Items]          
Allowance for loan losses - beginning balance   2,608      
Total charge-offs   (2,909) (2,504)    
Total recoveries   1,680 1,718    
Allowance for loan losses - ending balance   2,608     5,157
Commercial [Member]          
Financing Receivable, Allowance for Credit Losses [Line Items]          
Total charge-offs   (31) (819)    
Total recoveries   3      
Medallion [Member]          
Financing Receivable, Allowance for Credit Losses [Line Items]          
Allowance for loan losses - beginning balance   25,410      
Total charge-offs   (49,361) (22,205)    
Total recoveries   6,713 $ 3,541    
Allowance for loan losses - ending balance   $ 25,410     $ 25,043
[1] As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[2] As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3] As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company.
[4] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loans process of foreclosure $ 54,560,000 [1] $ 52,711,000 [1] $ 49,495,000  
Allowance for loan losses - ending balance 57,548,000 [2],[3] 46,093,000 [2],[3] $ 36,395,000 $ 46,093,000
Net charge-offs [4] 58,362,000 $ 37,688,000    
Strategic Partnership [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - ending balance 0      
Net charge-offs 0      
Medallion Bank [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loans process of foreclosure $ 279,188,000      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019.
[2] As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[3] As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[4] As of December 31, 2020, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $279,188, some of which represents collection opportunities for the Company.
v3.20.4
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Financing Receivable Recorded Investment Past Due [Line Items]        
Allowance for loan losses - ending balance $ 57,548 [1],[2] $ 46,093 [1],[2] $ 36,395 $ 46,093
Percentage of Allowance 100.00% 100.00%    
Allowance as a Percent of Loan Category 4.68% 3.97%    
Allowance as a Percent of Nonaccrual 93.17% 174.04%    
Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Allowance for loan losses - ending balance $ 27,348 $ 18,075    
Percentage of Allowance 48.00% 39.00%    
Allowance as a Percent of Loan Category 3.45% 2.53%    
Allowance as a Percent of Nonaccrual 378.20% 228.25%    
Home Improvement [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Allowance for loan losses - ending balance $ 5,157 $ 2,608    
Percentage of Allowance 9.00% 6.00%    
Allowance as a Percent of Loan Category 1.54% 1.05%    
Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Allowance for loan losses - ending balance $ 25,043 $ 25,410    
Percentage of Allowance 43.00% 55.00%    
Allowance as a Percent of Loan Category 66.31% 19.48%    
Allowance as a Percent of Nonaccrual 68.01% 389.84%    
[1] As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[2] As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.20.4
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Receivables [Abstract]      
Total nonaccrual loans $ 61,767 $ 26,484 $ 34,877
Interest foregone for the year 3,311 2,152 1,153
Amount of foregone interest applied to principal for the year 602 254 535
Interest foregone life-to-date 5,252 2,744 1,952
Amount of foregone interest applied to principal life-to-date $ 792 $ 471 $ 1,214
Percentage of nonaccrual loans to gross loan portfolio 5.00% 2.00% 3.00%
Percentage of allowance for loan losses to nonaccrual loans 93.00% 174.00% 104.00%
v3.20.4
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,229,838 $ 1,160,855
Percentage of Nonperforming to Total 5.06% 5.38%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,167,664 $ 1,098,362
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans [1] 62,174 62,493
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 792,686 $ 713,332
Percentage of Nonperforming to Total 0.96% 1.16%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 785,047 $ 705,070
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 7,639 8,262
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 334,033 $ 247,324
Percentage of Nonperforming to Total 0.05% 0.07%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 333,862 $ 247,139
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 171 185
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 65,327 $ 69,767
Percentage of Nonperforming to Total 25.40% 17.00%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 48,731 $ 57,905
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 16,596 11,862
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 37,768 $ 130,432
Percentage of Nonperforming to Total 100.00% 32.34%
Medallion [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans   $ 88,248
Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 37,768 [2] $ 42,184
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 24  
Percentage of Nonperforming to Total 0.00%  
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 24  
[1] Includes $408 and $36,009 of TDRs as of December 31, 2020 and 2019, which are accruing and paying currently, but which are considered nonperforming loans under GAAP.
[2]

Includes medallion loan premiums of $1,615 as of December 31, 2020.
v3.20.4
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]    
Loan premiums $ 2,717 $ 5,758
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
TDR loans 408 $ 36,009
Non - Performing [Member] | Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loan premiums $ 1,615  
v3.20.4
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance $ 62,174 $ 62,493
Unpaid principal balance, With related allowance 62,778 62,964
Related Allowance, With related allowance 25,310 15,156
Average Investment Recorded, With related allowance 65,933 61,109
Interest Income (Expense) Recognized, With related allowance 1,150 1,209
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 7,639 8,262
Unpaid principal balance, With related allowance 7,639 8,262
Related Allowance, With related allowance 264 329
Average Investment Recorded, With related allowance 7,949 8,317
Interest Income (Expense) Recognized, With related allowance 560 471
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 171 185
Unpaid principal balance, With related allowance 171 185
Related Allowance, With related allowance 3 3
Average Investment Recorded, With related allowance 172 185
Interest Income (Expense) Recognized, With related allowance 2  
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 16,596 11,862
Unpaid principal balance, With related allowance 16,600 11,867
Average Investment Recorded, With related allowance 16,884 7,886
Interest Income (Expense) Recognized, With related allowance 123 392
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 37,768 42,184
Unpaid principal balance, With related allowance 38,368 42,650
Related Allowance, With related allowance 25,043 14,824
Average Investment Recorded, With related allowance 40,928 44,721
Interest Income (Expense) Recognized, With related allowance $ 465 $ 346
v3.20.4
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 40,541 $ 60,413
Current 1,165,235 1,076,281
Total 1,205,776 [1] 1,136,694 [2]
Accruing 0 0
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 24,890 40,779
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 8,773 10,971
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,878 8,663
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 34,983 41,583
Current 732,391 648,227
Total 767,374 [1] 689,810 [2]
Accruing 0 0
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 22,058 27,357
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 7,582 8,426
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,343 5,800
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,201 1,542
Current 335,684 249,288
Total 336,885 [1] 250,830 [2]
Accruing 0 0
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 813 931
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 218 427
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 170 184
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 75 107
Current 65,265 69,660
Total 65,340 [1] 69,767 [2]
Accruing 0 0
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 75 107
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 4,282 17,181
Current 31,871 109,106
Total 36,153 [1] 126,287 [2]
Accruing 0 0
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,019 12,491
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 973 2,118
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,290 $ 2,572
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Current 24  
Total [1] 24  
Accruing $ 0  
[1] Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
[2] Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.
v3.20.4
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Receivables [Abstract]    
Loan premiums $ 2,717 $ 5,758
Capitalized loan origination costs $ 21,345 $ 18,403
v3.20.4
Loans and Allowance for Loan Losses - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2020
USD ($)
TDR
Dec. 31, 2019
USD ($)
TDR
Dec. 31, 2018
USD ($)
Mar. 31, 2018
USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]        
Weighted average loan-to-value ratio 327.00% 190.00%    
Allowance for loan loss $ 57,548,000 [1],[2] $ 46,093,000 [1],[2] $ 36,395,000 $ 46,093,000
Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of loans modified as TDRs defaulted | TDR 59 71    
Allowance for loan loss $ 25,043,000 $ 25,410,000    
Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of loans modified as TDRs defaulted | TDR 77 294    
Allowance for loan loss $ 27,348,000 $ 18,075,000    
Commercial Loans [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of loans modified as TDRs defaulted | TDR 1      
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of loans modified as TDRs defaulted | TDR 5 4    
TDR investment value $ 738,000 $ 1,023,000    
Allowance for loan loss $ 331,000 $ 428,000    
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of loans modified as TDRs defaulted | TDR 43 213    
TDR investment value $ 433,000 $ 1,905,000    
Allowance for loan loss $ 15,000 $ 76,000    
Troubled Debt Restructuring Defaulted [Member] | Commercial Loans [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of loans modified as TDRs defaulted | TDR 0      
[1] As of December 31, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[2] As of December 31, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.20.4
Loans and Allowance for Loan Losses - Summary of TDRs (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
TDR
Dec. 31, 2019
USD ($)
TDR
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 77 294
Pre- Modification Investment $ 1,053 $ 4,433
Post- Modification Investment $ 749 $ 2,831
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 1  
Pre- Modification Investment $ 1,821  
Post- Modification Investment $ 1,821  
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 59 71
Pre- Modification Investment $ 33,505 $ 31,376
Post- Modification Investment $ 33,505 $ 31,385
v3.20.4
Loans and Allowance for Loan Losses - Summary of Activities of the Loans Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance $ 52,711 [1] $ 49,495
Transfer from loans, net 47,274 31,348
Sales (7,812) (9,106)
Cash payments received (5,687) (7,697)
Collateral valuation adjustments (31,926) (11,329)
Loans collateral in process of foreclosure - ending balance [1] 54,560 52,711
Recreation [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 1,476 1,503
Transfer from loans, net 14,871 14,512
Sales (7,512) (7,591)
Collateral valuation adjustments (7,403) (6,948)
Loans collateral in process of foreclosure - ending balance 1,432 1,476
Medallion [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 51,235 47,992
Transfer from loans, net 32,403 16,836
Sales (300) (1,515)
Cash payments received (5,687) (7,697)
Collateral valuation adjustments (24,523) (4,381)
Loans collateral in process of foreclosure - ending balance $ 53,128 $ 51,235
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019.
v3.20.4
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Unrealized Appreciation (Depreciation) on Investments (Detail)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
USD ($)
Debt Securities, Available-for-sale [Line Items]  
Beginning balance $ 139,700
Appreciation on investments 37,797
Depreciation on investments (40,067)
Losses on investments 34,747
Ending balance 172,177
Medallion [Member]  
Debt Securities, Available-for-sale [Line Items]  
Beginning balance (20,338)
Depreciation on investments (38,170)
Losses on investments 34,747
Ending balance (23,761)
Commercial Loans [Member]  
Debt Securities, Available-for-sale [Line Items]  
Beginning balance (513)
Depreciation on investments 18
Ending balance (495)
Investments in Subsidiaries [Member]  
Debt Securities, Available-for-sale [Line Items]  
Beginning balance 158,920
Appreciation on investments 38,795
Ending balance 197,715
Equity Investments [Member]  
Debt Securities, Available-for-sale [Line Items]  
Beginning balance 3,121
Appreciation on investments (998)
Ending balance 2,123
Investments Other than Securities [Member]  
Debt Securities, Available-for-sale [Line Items]  
Beginning balance (1,490)
Depreciation on investments (1,915)
Ending balance $ (3,405)
v3.20.4
Schedule of Pre-Tax Changes in Unrealized and Realized Gains and Losses in Investment Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2018
Net change in unrealized appreciation (depreciation) on investments    
Unrealized appreciation $ 37,797  
Unrealized depreciation 40,067  
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries [1]   $ 29,115
Net realized gains (losses) on investments    
Total [1],[2]   $ (34,745)
Investment Company Accounting [Member]    
Net change in unrealized appreciation (depreciation) on investments    
Unrealized appreciation (998)  
Unrealized depreciation (38,152)  
Realized losses 34,747  
Net unrealized losses on investments other than securities and other assets (1,915)  
Total 22,797  
Net realized gains (losses) on investments    
Realized losses (34,747)  
Direct charge-offs 2  
Total (34,745)  
Medallion Financing Trust I [Member] | Investment Company Accounting [Member]    
Net change in unrealized appreciation (depreciation) on investments    
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries $ 29,115  
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] There were no net losses on investment securities of affiliated issuers for the year ended December 31, 2018.
v3.20.4
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
2021 $ 481,169  
2022 249,327  
2023 195,667  
2024 161,040  
2025 136,702  
Thereafter 88,100  
Long term debt [1] $ 1,312,005 $ 1,169,593
Interest Rate [2] 2.37%  
Deposits [Member]    
Debt Instrument [Line Items]    
2021 [3] $ 393,835  
2022 [3] 241,605  
2023 [3] 190,387  
2024 [3] 120,040  
2025 [3] 121,955  
Long term debt [1],[3] $ 1,067,822 954,245
Interest Rate [2],[3] 1.71%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2021 $ 22,508  
2023 5,000  
2024 5,000  
2025 14,000  
Thereafter 21,500  
Long term debt [1] $ 68,008 71,746
Interest Rate [2] 3.36%  
Retail and Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2021 [4] $ 33,625  
2024 [4] 36,000  
Thereafter [4] 33,600  
Long term debt [1],[4] $ 103,225 69,625
Interest Rate [2],[4] 8.25%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
Thereafter [4] $ 33,000  
Long term debt [1],[4] $ 33,000 33,000
Interest Rate [2],[4] 2.35%  
Other Borrowings [Member]    
Debt Instrument [Line Items]    
2021 $ 500  
2022 7,442  
2025 747  
Long term debt [1] $ 8,689 7,794
Interest Rate [2] 1.91%  
Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
2021 $ 30,701  
2022 280  
2023 280  
Long term debt [1] $ 31,261 $ 33,183
Interest Rate [2] 3.67%  
[1] Excludes deferred financing costs of $5,805 and $5,105 as of December 31, 2020 and 2019.
[2] Weighted average contractual rate as of December 31, 2020.
[3] Balance excludes $250 of strategic partner reserve deposits as of December 31, 2020.
[4] Relates to loans held at Medallion Financial Corp. (parent company only).
v3.20.4
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Debt Disclosure [Abstract]    
Deferred costs $ 5,805,000 $ 5,105,000
Reserve Deposits $ 250,000  
v3.20.4
Funds Borrowed - Additional Information (Detail)
 1 Months Ended 3 Months Ended 12 Months Ended
Jul. 06, 2019
USD ($)
Dec. 31, 2007
USD ($)
Jun. 30, 2007
USD ($)
shares
Dec. 31, 2020
USD ($)
shares
Jul. 31, 2020
USD ($)
Mar. 31, 2019
USD ($)
Nov. 30, 2018
USD ($)
Apr. 30, 2016
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
Deposit
shares
Dec. 31, 2019
USD ($)
shares
Dec. 31, 2018
USD ($)
Mar. 15, 2021
USD ($)
Feb. 28, 2021
USD ($)
Aug. 31, 2019
USD ($)
Dec. 31, 2017
USD ($)
Debt Instrument [Line Items]                                
Number of individual with time deposits greater than $100,000 | Deposit                   0            
Listing services deposits from other financial institutions.       $ 995,000           $ 995,000            
Debt instrument outstanding amount         $ 8,500,000                      
Debt instrument remaining amount         16,500,000                      
Debt instrument face amount         $ 25,000,000                      
Debentures term         10 years                      
Leverage fee amount         $ 250,000                      
Remaining portion of leverage fee amount         500,000                      
Debentures borrowed [1]       153,718,000           153,718,000 $ 174,614,000          
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion         $ 8,250,000                      
Debt instrument commitments drawn       $ 0           $ 0            
Repayments of credit facilities $ 10,819,000                              
Waiver of loan from lender $ 1,839,000                              
Waiver Expiry Date Jun. 15, 2021                              
Pay off one of the notes payable discount rate           50.00%                    
Gain on debt extinguishment                 $ 4,145,000   $ 4,145,000          
Gain loss on sales of loans net [2]                       $ 4,946,000        
Issue of common stock | shares       27,828,871           27,828,871 27,597,802          
Short term promissory note       $ 87,334,000           $ 87,334,000 $ 38,223,000          
Maturity term         10 years                      
CARES Act [Member]                                
Debt Instrument [Line Items]                                
Debentures term                   5 years            
Loan amount       747,000           $ 747,000            
Annual interest rate                   1.00%            
Maturity term                   5 years            
Richard Petty [Member]                                
Debt Instrument [Line Items]                                
Maturity date                   Mar. 31, 2022            
Loan amount       7,442,000           $ 7,442,000            
Annual interest rate                   2.00%            
Travis Burt [Member]                                
Debt Instrument [Line Items]                                
Maturity date                   Dec. 31, 2021            
Short term promissory note       $ 500,000           $ 500,000            
Retail and Privately Placed Notes [Member]                                
Debt Instrument [Line Items]                                
Debt instrument interest rate Percentage       7.50%   8.25%   9.00% 8.25% 7.50%            
Aggregate principal amount       $ 33,600,000   $ 30,000,000   $ 33,625,000 $ 30,000,000 $ 33,600,000         $ 6,000,000  
Maturity date           2024   2021                
Maturity date       Dec. 31, 2027                        
Gain loss on sales of loans net                 $ 4,145,000              
Net proceeds from offering               $ 31,786,000                
Subsequent Event [Member] | Retail and Privately Placed Notes [Member]                                
Debt Instrument [Line Items]                                
Debt instrument interest rate Percentage                           7.25%    
Aggregate principal amount                           $ 25,000,000    
Subsequent Event [Member] | Retail and Privately Placed Notes [Member] | 7.25% Unsecured Senior Notes Due February 2026 [Member]                                
Debt Instrument [Line Items]                                
Aggregate principal amount                         $ 3,250,000      
Subsequent Event [Member] | Retail and Privately Placed Notes [Member] | 7.50% Unsecured Senior Notes Due December 2027 [Member]                                
Debt Instrument [Line Items]                                
Aggregate principal amount                         $ 8,500,000      
Dz Bank [Member]                                
Debt Instrument [Line Items]                                
Debt instrument interest rate Percentage             4.00%                  
Debt instrument face amount             $ 1,400,000                  
Debt instrument expiration date             2023-12                  
Debenture Mature2021                                
Debt Instrument [Line Items]                                
Debentures borrowed         $ 8,500,000                      
Preferred Securities [Member]                                
Debt Instrument [Line Items]                                
Maturity date                   Sep. 30, 2037            
Sale of preferred securities     $ 35,000,000                          
Issue of common stock | shares     1,083                          
Preferred securities outstanding       $ 33,000,000           $ 33,000,000            
Preferred Securities [Member] | 90 day LIBOR [Member]                                
Debt Instrument [Line Items]                                
Basis spread on variable rate                   0.24%            
Preferred Securities [Member] | LIBOR Rate [Member]                                
Debt Instrument [Line Items]                                
Basis spread on variable rate                   2.13%            
Preferred Securities [Member] | Unsecured Debt [Member]                                
Debt Instrument [Line Items]                                
Aggregate principal amount of unsecured junior subordinated notes     $ 36,083,000                          
Preferred Securities [Member] | Third Party Investors [Member]                                
Debt Instrument [Line Items]                                
Preferred securities repurchased from a third party investor   $ 2,000,000                            
Small Business Administration Debentures and Borrowings [Member]                                
Debt Instrument [Line Items]                                
Loan commitment term                   4 years 6 months            
Commitment fee percentage                   1.00%            
Principal amount of loan                               $ 34,024,756
Debt instrument interest rate Percentage       3.25%           3.25%            
Extended maturity date                   Apr. 15, 2021            
Debt instrument commitments amount fully utilized       $ 175,485,000           $ 175,485,000            
Debt instrument commitments available       25,000,000           25,000,000            
Debt instrument outstanding amount       68,008,000           68,008,000            
Debt instrument remaining amount       14,008,000           14,008,000            
FSVC's [Member]                                
Debt Instrument [Line Items]                                
Principal amount of loan                               $ 33,485,000
Maximum [Member]                                
Debt Instrument [Line Items]                                
Debenture last issuance date         Sep. 24, 2024                      
Minimum [Member]                                
Debt Instrument [Line Items]                                
Time deposits       $ 250,000           250,000            
Minimum [Member] | Paid on or Before February 1, 2018 [Member] | Small Business Administration Debentures and Borrowings [Member]                                
Debt Instrument [Line Items]                                
Debt instrument minimum annual payment                   5,000,000            
Minimum [Member] | Paid on or Before February 1, 2019 [Member] | Small Business Administration Debentures and Borrowings [Member]                                
Debt Instrument [Line Items]                                
Debt instrument minimum annual payment                   $ 7,600,000            
Brokerage [Member] | Maximum [Member]                                
Debt Instrument [Line Items]                                
Average brokerage fee percentage in relation to the maturity of deposits                   0.15%            
[1] Includes $3,131 and $2,511 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details.
[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Dec. 31, 2020
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 125,766
Over three months through six months 117,602
Over six months through one year 150,467
Over one year 673,987
Total deposits $ 1,067,822
v3.20.4
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Jul. 31, 2020
Dec. 31, 2019
Notes Payable [Line Items]      
Note Amounts   $ 25,000,000  
Average Interest Rate [1] 2.37%    
Notes Payable to Banks [Member]      
Notes Payable [Line Items]      
Note Amounts     $ 39,583,000
Balance outstanding $ 31,261,000    
Average Interest Rate [1] 3.67%    
Notes Payable to Banks [Member] | Medallion Financial Corp [Member]      
Notes Payable [Line Items]      
Note Dates Apr. 30, 2011    
Note Dates Aug. 31, 2014    
Maturity Dates Feb. 28, 2021    
Maturity Dates Sep. 30, 2021    
Type [2] Term loans and demand notes secured by pledged loans    
Note Amounts [2]     19,734,000
Balance outstanding $ 19,734,000    
Payment [3] Interest only    
Average Interest Rate 3.75%    
Notes Payable to Banks [Member] | Medallion Chicago [Member]      
Notes Payable [Line Items]      
Note Dates Nov. 30, 2011    
Note Dates Dec. 31, 2011    
Maturity Dates Feb. 28, 2021    
Type [4] Term loans secured by owned Chicago taxi medallions    
Note Amounts     18,449,000
Balance outstanding $ 10,687,000    
Payment $134 of principal & interest paid monthly    
Average Interest Rate 3.50%    
Notes Payable to Banks [Member] | Medallion Funding [Member]      
Notes Payable [Line Items]      
Note Dates Nov. 30, 2018    
Maturity Dates Dec. 31, 2023    
Type Term loan unsecured    
Note Amounts     $ 1,400,000
Balance outstanding $ 840,000    
Payment $70 principal & interest paid quarterly    
Average Interest Rate 4.00%    
[1] Weighted average contractual rate as of December 31, 2020.
[2] One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
[3] Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging from $12 to $85.
[4] Guaranteed by the Company.
v3.20.4
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2020
USD ($)
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 $ 85,000
Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Description of variable rate basis 30 day LIBOR was 0.14%, 360 day LIBOR was 0.34%,
Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Description of variable rate basis One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
Debt Instrument interest rate, stated percentage 3.75%
30 Day LIBOR [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Debt Instrument interest rate, stated percentage 0.14%
360 Day LIBOR [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Debt Instrument interest rate, stated percentage 0.34%
Prime Rate [Member] | Medallion Financial Corp [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Debt Instrument interest rate, stated percentage 3.25%
Prime Rate Plus [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Basis spread on variable rate 0.50%
Fixed Interest Rate [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Basis spread on variable rate 3.75%
LIBOR Rate [Member] | Medallion Chicago [Member] | Notes Payable to Banks [Member]  
Notes Payable [Line Items]  
Basis spread on variable rate 2.00%
v3.20.4
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Operating lease costs $ 2,384 $ 2,184
Operating cash flows from operating leases 2,821 2,419
Right-of-use asset obtained in exchange for lease liability $ 251 $ 2,413
v3.20.4
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
Operating lease right-of-use assets $ 11,737 $ 13,482
Other current liabilities $ 2,004 $ 2,085
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Operating lease liabilities $ 11,018 $ 12,738
Total operating lease liabilities $ 13,022 $ 14,823
Weighted average remaining lease term 6 years 4 months 24 days 7 years 3 months 18 days
Weighted average discount rate 5.54% 5.54%
v3.20.4
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
2021 $ 2,474  
2022 2,406  
2023 2,356  
2024 2,373  
2025 2,390  
Thereafter 3,521  
Total lease payments 15,520  
Less imputed interest 2,498  
Total operating lease liabilities $ 13,022 $ 14,823
v3.20.4
Leases - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Leases [Abstract]      
Occupancy expense $ 2,833,000 $ 2,436,000 $ 2,287,000
v3.20.4
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (44,799) $ (45,595)
Provision for loan losses 19,556 19,198
Net operating loss carryforwards [1] 30,493 22,607
Accrued expenses, compensation, and other assets 1,174 1,701
Unrealized gains on other investments (6,769) (6,790)
Total deferred tax liability (345) (8,879)
Valuation allowance (462) (462)
Deferred tax liability, net (807) (9,341)
Taxes receivable 1,757 1,516
Net deferred and other tax liabilities $ 950 $ (7,825)
[1] As of December 31, 2020, the Company and its subsidiaries had an estimated $124,150 of net operating loss carryforwards, $1,712 which expires at various dates between December 31, 2026 and December 31, 2035, and which had a net asset value of $30,031 as of December 31, 2020.
v3.20.4
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, 2020
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 124,150
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets $ 30,031
December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1,712
v3.20.4
Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current        
Federal       $ (2,797)
State   $ (260) $ 519 (1,078)
Deferred        
Federal   7,702 (489) 5,270
State   2,632 (371) (1,464)
Net (provision) benefit for income taxes $ (709) $ 10,074 $ (341) $ (69)
v3.20.4
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]        
Statutory Federal income tax (provision) benefit at 21%   $ 7,766 $ (642) $ 4,935
State and local income taxes, net of federal income tax benefit   1,518 (120) 440
Revaluation of net operating losses   1,228 380  
Change in effective state income tax rate   (145) (891) (2,564)
Change in state income tax accruals   (260) 640  
Income attributable to non-controlling interest   460 309  
Non deductible expenses   (453)    
Utilization of carry forwards       (910)
Appreciation of Medallion Bank       (1,974)
Other   (40) (17) 4
Net (provision) benefit for income taxes $ (709) $ 10,074 $ (341) $ (69)
v3.20.4
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Statutory Federal income tax (provision) benefit percentage 21.00% 21.00% 21.00%
v3.20.4
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
 12 Months Ended
Jun. 15, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Mar. 01, 2016
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock option outstanding   951,669 [1] 550,040 144,666 320,626      
Stock option exercisable   178,307 [1] 62,778 81,889        
Unvested shares of common stock outstanding   773,362 487,262          
Weighted average fair value of options granted   $ 6.24            
Intrinsic value of options vested   $ 45,000 $ 43,000 $ 32,000        
Restricted Stock Units [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding   62,780            
Number of shares, granted   47,156 26,040 0        
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding   47,156            
Number of shares, granted   47,156            
Vesting period   1 year            
Exercise price for grant per share   $ 3.16            
Number of shares vested with deferred settlement   16,524            
Number of shares vested and settled   10,416            
Restricted Shares [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding   416,140 [2] 284,879 190,915 408,582      
Weighted average fair value of options granted   $ 3.09 $ 3.10 $ 1.06        
Number of shares, granted   229,408 216,148 101,010        
Exercise price for grant per share   $ 6.21 $ 6.59 $ 4.41        
Number of shares vested and settled [3]   89,392 118,238 308,940        
2018 Equity Incentive Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 241,919 2,210,968            
Shares were rolled into the 2018 Plan   862,069            
2015 Restricted Stock Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant           700,000    
Unvested shares of common stock outstanding   416,140            
2006 Stock Option Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Issuance of maximum number of shares approved               800,000
Number of additional shares available for issuance   0            
2006 Stock Option Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term   10 years            
2015 Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 258,334           300,000  
2015 Director Plan [Member] | Non Employee Director One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 12,000              
2015 Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term 10 years              
Amended Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   200,000            
Number of additional shares available for issuance   0            
Amended Director Plan [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   9,000            
Amended Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term   10 years            
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020.
[2] The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020.
[3] The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018.
v3.20.4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]      
Risk free interest rate 1.23% 2.29% 2.82%
Expected dividend yield   0.66% 4.86%
Expected life of option in years [1] 6 years 3 months 6 years 3 months 6 years
Expected volatility [2] 51.03% 49.03% 30.00%
[1] Expected life is calculated using the simplified method.
[2] We determine our expected volatility based on our historical volatility.
v3.20.4
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options beginning balance 550,040 144,666 320,626
Granted 444,557 449,450 39,000
Cancelled (42,928) (44,076) (214,960)
Exercised [1] 0 0 0
Number of options ending balance 951,669 [2] 550,040 144,666
Options exercisable 178,307 [2] 62,778 81,889
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14 $ 7.10
Exercise price per share, upper range limit beginning balance 13.84 13.84 13.84
Exercise price per share, exercised [1] 0 0 0
Exercise price per share, lower range limit ending balance 2.14 [2] 2.14 2.14
Exercise price per share, upper range limit ending balance 13.53 [2] 13.84 13.84
Exercise price per share, option exercisable lower range limit 2.14 [2] 2.14 7.10
Exercise price per share, option exercisable upper range limit 13.53 [2] 13.84 13.84
Weighted average exercise price, beginning balance 6.58 7.23 8.78
Weighted average exercise price, granted 6.24 6.61 5.46
Weighted average exercise price, cancelled 6.91 9.00 9.22
Weighted average exercise price, exercised [1] 0 0 0
Weighted average exercise price, ending balance 6.41 [2] 6.58 7.23
Weighted average exercise price, options exercisable 6.33 [2] 7.60 9.25
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, granted 5.21 5.27 2.14
Exercise price per share, cancelled 6.55 9.22 10.76
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, granted 7.25 5.58 2.61
Exercise price per share, cancelled $ 13.84 $ 9.24 $ 11.21
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 for 2020, 2019, and 2018.
[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2020 and the related exercise price of the underlying options, was $45,000 for outstanding options and $43,000 for exercisable options as of December 31, 2020. The remaining contractual life was 8.60 years for outstanding options and 7.23 years for exercisable options at December 31, 2020.
v3.20.4
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward      
Aggregate intrinsic value for option exercised $ 0 $ 0 $ 0
Aggregate intrinsic value of option outstanding 45,000    
Aggregate intrinsic value of option exercisable $ 43,000    
Remaining contractual life of option outstanding 8 years 7 months 6 days    
Remaining contractual life of option exercisable 7 years 2 months 23 days    
v3.20.4
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant price per share, cancelled, lower limit $ 2.14    
Grant price per share, cancelled, upper limit $ 6.55    
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares, beginning balance 284,879 190,915 408,582
Number of shares, granted 229,408 216,148 101,010
Number of shares, cancelled (8,755) (3,946) (9,737)
Number of shares, vested [1] (89,392) (118,238) (308,940)
Number of shares, ending balance 416,140 [2] 284,879 190,915
Grant price per share, lower range limit beginning balance $ 3.95 $ 2.14 $ 2.06
Grant price per share, upper range limit beginning balance 7.25 5.27 10.38
Grant price per share, granted, lower limit 4.89 4.80 3.93
Grant price per share, granted, upper limit 6.68 7.25 5.27
Grant price per share, cancelled, lower limit 3.95 3.93 3.93
Grant price per share, cancelled, upper limit 7.25 6.55 9.08
Grant price per share, vested, lower limit [1] 3.95 2.06 2.06
Grant price per share, vested, upper limit [1] 6.55 4.80 10.38
Grant price per share, lower range limit ending balance 4.39 [2] 3.95 2.14
Grant price per share, upper range limit ending balance 7.25 [2] 7.25 5.27
Weighted average grant price beginning balance 6.01 4.06 3.45
Weighted average grant price, granted 6.21 6.59 4.41
Weighted average grant price, cancelled 6.93 4.97 4.66
Weighted average grant price, vested [1] 5.37 3.89 3.35
Weighted average grant price, ending balance $ 6.24 [2] $ 6.01 $ 4.06
[1] The aggregate fair value of the restricted stock vested was $579,000, $736,000, and $1,270,000 for 2020, 2019, and 2018.
[2] The aggregate fair value of the restricted stock was $2,039,000 as of December 31, 2020. The remaining vesting period was 2.03 years at December 31, 2020.
v3.20.4
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate fair value of restricted stock vested $ 579,000 $ 736,000 $ 1,270,000
Aggregate fair value of restricted stock outstanding $ 2,039,000    
Remaining vesting period of restricted stock 2 years 10 days    
v3.20.4
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward      
Number of options beginning balance 487,262    
Number of options, granted 444,557 449,450 39,000
Number of options, cancelled (20,630)    
Number of options, vested (137,827)    
Number of options ending balance 773,362 487,262  
Exercise price per share beginning balance, Lower limit $ 2.14    
Exercise price per share beginning balance, Upper limit 7.25    
Exercise price per share, Granted, Lower limit 4.89    
Exercise price per share, Granted, Upper limit 6.68    
Exercise price per share, Cancelled, Lower limit 6.55    
Exercise price per share, Cancelled, Upper limit 7.25    
Exercise price per share, Vested, Lower limit 2.14    
Exercise price per share, Vested, Upper limit 6.55    
Exercise price per share ending balance, Lower limit 4.89 $ 2.14  
Exercise price per share ending balance, Upper limit 7.25 7.25  
Weighted average exercise price 6.45    
Weighted average exercise price, granted 6.24    
Weighted average exercise price, cancelled 6.76    
Weighted average exercise price, vested 6.05    
Weighted average exercise price $ 6.42 $ 6.45  
v3.20.4
Segment Reporting - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2020
Segment
Dec. 31, 2019
Segment Reporting Disclosure [Line Items]    
Number of business segments 6  
Number of operating segments 4  
Number of non-operating segments 2  
Loan outstanding percent 9.00%  
Capital ratios for operating segments 11.9 13.8
Operating Segments [Member]    
Segment Reporting Disclosure [Line Items]    
Capital ratios for operating segments 20  
Swimming Pools [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 27.00%  
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 24.00%  
Windows [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 13.00%  
Solar Panels [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 8.00%  
Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 8.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 15.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 9.00%  
California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Geographic Concentration Risk [Member] | Recreational Vehicles [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 60.00%  
Geographic Concentration Risk [Member] | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 19.00%  
Geographic Concentration Risk [Member] | Trailers [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 12.00%  
Geographic Concentration Risk [Member] | Midwest [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 53.00%  
Geographic Concentration Risk [Member] | New York City [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 89.00%  
v3.20.4
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Disclosure [Line Items]        
Total interest income $ 96,803 $ 144,962 $ 132,562  
Total interest expense 24,816 34,151 35,045  
Net interest income/net investment income 71,987 110,811 97,517 $ 72,469 [1]
Provision for loan losses 59,008 69,817 47,386 59,008 [1]
Net interest income after provision for loan losses 12,979 40,994 50,131 13,461 [1]
Sponsorship and race winnings 14,368 20,042 18,742 14,368 [1]
Race team related expenses (7,121) (8,366) (8,996) (7,121) [1]
Other income (expense), net (27,382) (89,651) (57,540)  
Income (loss) before income taxes/net investment loss before taxes (7,156) (36,981) 2,337 (10,722) [1],[2]
Income tax (provision) benefit (709) 10,074 (341) (69)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (7,865) (26,907) 1,996 (22,739) [1]
Balance Sheet Data        
Total loans net 981,487 1,172,290 1,114,762 981,487
Total assets 1,381,846 1,642,411 1,541,667 1,381,846
Total funds borrowed $ 1,062,028 $ 1,312,255 $ 1,169,593 1,062,028
Selected Financial Ratios        
Return on average assets (0.90%) (2.16%) (0.12%)  
Return on average equity (4.62%) (10.90%) (0.59%)  
Interest yield 10.98% 11.32% 11.75%  
Net interest margin 8.19% 8.65% 8.64%  
Reserve coverage 3.58% 4.68% 3.97%  
Delinquency status [3] 2.14% 0.57% 0.76%  
Charge-off ratio 2.73% 5.00% 3.60%  
RPAC [Member]        
Segment Reporting Disclosure [Line Items]        
Total interest expense $ 121 $ 163 $ 159  
Net interest income/net investment income (121) (163) (159)  
Net interest income after provision for loan losses (121) (163) (159)  
Sponsorship and race winnings 14,368 20,042 18,742  
Race team related expenses (7,121) (8,366) (8,996)  
Other income (expense), net (11,476) (7,973) (6,942)  
Income (loss) before income taxes/net investment loss before taxes (4,350) 3,540 2,645  
Income tax (provision) benefit 1,108 (889) (329)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (3,242) 2,651 2,316  
Balance Sheet Data        
Total assets 29,925 33,711 31,538 29,925
Total funds borrowed $ 7,649 $ 8,689 $ 7,794 7,649
Selected Financial Ratios        
Return on average assets (11.69%) 7.98% 7.28%  
Return on average equity   (363.66%) (96.37%)  
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]        
Segment Reporting Disclosure [Line Items]        
Total interest income $ 68,870 $ 110,706 $ 99,463  
Total interest expense 6,986 13,013 13,304  
Net interest income/net investment income 61,884 97,693 86,159  
Provision for loan losses 15,118 23,736 28,638  
Net interest income after provision for loan losses 46,766 73,957 57,521  
Other income (expense), net (14,242) (27,341) (23,490)  
Income (loss) before income taxes/net investment loss before taxes 32,524 46,616 34,031  
Income tax (provision) benefit (8,579) (12,004) (8,813)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 23,945 34,612 25,218  
Balance Sheet Data        
Total loans net 580,182 765,338 695,257 580,182
Total assets 590,746 777,605 707,377 590,746
Total funds borrowed $ 434,527 $ 621,735 $ 563,805 434,527
Selected Financial Ratios        
Return on average assets 5.48% 4.59% 3.84%  
Return on average equity 22.60% 22.93% 17.19%  
Interest yield 15.78% 14.90% 15.39%  
Net interest margin 14.18% 13.15% 13.33%  
Reserve coverage 1.17% 3.45% 2.53%  
Delinquency status [3] 0.73% 0.70% 0.84%  
Charge-off ratio 1.89% 1.95% 2.69%  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]        
Segment Reporting Disclosure [Line Items]        
Total interest income $ 12,799 $ 27,273 $ 19,943  
Total interest expense 2,290 5,699 4,757  
Net interest income/net investment income 10,509 21,574 15,186  
Provision for loan losses 2,453 3,778 1,598  
Net interest income after provision for loan losses 8,056 17,796 13,588  
Other income (expense), net (3,093) (9,611) (7,520)  
Income (loss) before income taxes/net investment loss before taxes 4,963 8,185 6,068  
Income tax (provision) benefit (1,319) (2,108) (1,572)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 3,644 6,077 4,496  
Balance Sheet Data        
Total loans net 181,359 328,876 244,716 181,359
Total assets 188,892 340,494 252,704 188,892
Total funds borrowed $ 143,815 $ 272,284 $ 201,605 143,815
Selected Financial Ratios        
Return on average assets 2.56% 2.07% 2.20%  
Return on average equity 11.30% 10.35% 10.22%  
Interest yield 9.06% 9.66% 9.50%  
Net interest margin 7.44% 7.62% 7.24%  
Reserve coverage 0.98% 1.54% 1.05%  
Delinquency status [3] 0.07% 0.05% 0.07%  
Charge-off ratio 0.46% 0.44% 0.37%  
Operating Segments [Member] | Commercial Lending [Member]        
Segment Reporting Disclosure [Line Items]        
Total interest income $ 7,076 $ 6,926 $ 7,183  
Total interest expense 1,502 2,538 2,833  
Net interest income/net investment income 5,574 4,388 4,350  
Provision for loan losses     364  
Net interest income after provision for loan losses 5,574 4,388 3,986  
Other income (expense), net (1,824) (3,196) (1,149)  
Income (loss) before income taxes/net investment loss before taxes 3,750 1,192 2,837  
Income tax (provision) benefit (862) (299) (684)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 2,888 893 2,153  
Balance Sheet Data        
Total loans net 59,973 62,037 66,405 59,973
Total assets 93,807 80,622 84,924 93,807
Total funds borrowed $ 53,719 $ 65,924 $ 68,666 53,719
Selected Financial Ratios        
Return on average assets 4.27% 1.07% 2.44%  
Return on average equity 9.43% 5.17% 12.21%  
Interest yield 14.25% 10.51% 11.39%  
Net interest margin 11.23% 6.66% 6.90%  
Reserve coverage 0.00% 0.00% [4] 0.00% [4]  
Delinquency status [3],[4] 0.44% 0.11% 0.15%  
Charge-off ratio 0.00% 0.04% [5] 1.30% [5]  
Operating Segments [Member] | Medallion Lending [Member]        
Segment Reporting Disclosure [Line Items]        
Total interest income $ 6,317 $ (1,518) $ 3,665  
Total interest expense 10,125 3,610 7,962  
Net interest income/net investment income (3,808) (5,128) (4,297)  
Provision for loan losses 41,437 42,276 16,331  
Net interest income after provision for loan losses (45,245) (47,404) (20,628)  
Other income (expense), net 9,742 (30,366) (10,493)  
Income (loss) before income taxes/net investment loss before taxes (35,503) (77,770) (31,121)  
Income tax (provision) benefit 7,938 19,520 7,596  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (27,565) (58,250) (23,525)  
Balance Sheet Data        
Total loans net 155,863 12,725 105,022 155,863
Total assets 273,501 124,554 217,483 273,501
Total funds borrowed $ 294,465 $ 98,636 $ 176,825 294,465
Selected Financial Ratios        
Return on average assets (10.13%) (33.21%) (9.73%)  
Return on average equity   (165.21%) (48.49%)  
Interest yield 3.58% (2.11%) 2.88%  
Net interest margin (2.16%) (7.14%) (3.38%)  
Reserve coverage 15.11% 66.31% 19.48%  
Delinquency status [3] 9.43% 3.57% 2.04%  
Charge-off ratio 7.21% 59.38% 14.68%  
Intersegment Eliminations [Member]        
Segment Reporting Disclosure [Line Items]        
Total interest income $ 1,741 $ 1,575 $ 2,308  
Total interest expense 3,792 9,128 6,030  
Net interest income/net investment income (2,051) (7,553) (3,722)  
Provision for loan losses   27 455  
Net interest income after provision for loan losses (2,051) (7,580) (4,177)  
Other income (expense), net (6,489) (11,164) (7,946)  
Income (loss) before income taxes/net investment loss before taxes (8,540) (18,744) (12,123)  
Income tax (provision) benefit 1,005 5,854 3,461  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (7,535) (12,890) (8,662)  
Balance Sheet Data        
Total loans net 4,110 3,314 3,362 4,110
Total assets 204,975 285,425 247,641 204,975
Total funds borrowed $ 127,853 $ 244,987 $ 150,898 $ 127,853
Selected Financial Ratios        
Return on average assets (4.07%) (5.06%) (3.71%)  
Return on average equity (12.37%) (23.29%) (14.26%)  
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] Includes $256 of net revenues received from Medallion Bank for the year ended December 31, 2018, primarily for expense reimbursements. See Notes 5 and 12 for additional information.
[3]

Loans 90 days or more past due.
[4]

Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
[5]

Ratio is based on total commercial lending balances, and relates to the total loan business.
v3.20.4
Commitments and Contingencies - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2020
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2025
Future minimum payments $ 12,056,000
v3.20.4
Commitments and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail)
Dec. 31, 2020
USD ($)
Commitments And Contingencies [Abstract]  
2021 $ 3,965,000
2022 3,081,000
2023 2,073,000
2024 2,073,000
2025 864,000
Total $ 12,056,000
v3.20.4
Related Party Transactions - Additional Information (Detail) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Mar. 01, 2021
Mar. 31, 2022
Jun. 30, 2020
Jun. 30, 2019
Mar. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
 [1]
Related Party Transaction [Line Items]                
Repayments of note payable           $ 526,064,000 $ 414,277,000 $ 389,951,000
Medallion Servicing Corporation [Member]                
Related Party Transaction [Line Items]                
Interest income         $ 1,290,000      
Other income         $ 256,000      
LAX Group,LLC [Member] | Subsequent Event [Member] | Senior Vice President [Member]                
Related Party Transaction [Line Items]                
Salary from related party $ 195,000              
Officer [Member] | LAX Group,LLC [Member]                
Related Party Transaction [Line Items]                
Salary from related party     $ 133,000       178,000  
Consulting services revenue from related party           $ 4,200    
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member]                
Related Party Transaction [Line Items]                
Equity ownership percentage by a related party           10.00%    
Common stock vesting percentage           3.34%    
Percentage of equity raised from outside investors           5.00%    
Percentage of bonus received from related party           10.00%    
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | Minimum [Member]                
Related Party Transaction [Line Items]                
Valuation of equity raised from outside investors           $ 1,500,000    
Petty Trust [Member] | RPAC [Member]                
Related Party Transaction [Line Items]                
Annual payment for services provided to the entity           700,000    
Repayments of note payable           $ 0    
Sponsorship fees       $ 7,000,000        
Proceeds from sponsorship             $ 5,600,000  
Petty Trust [Member] | RPAC [Member] | Scenario Forecast [Member]                
Related Party Transaction [Line Items]                
Note payable to the Petty Trust   $ 7,442,000            
Interest percentage of Notes payable   2.00%            
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Stockholder's/Shareholder's Equity - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Jul. 31, 2015
Jul. 31, 2014
Nov. 30, 2004
Nov. 30, 2003
Stockholders Equity [Line Items]              
Stock repurchased during period 2,951,243 2,951,243          
Payment for repurchase of common stock $ 24,919,000 $ 24,919,000          
Stock Repurchase Program [Member]              
Stockholders Equity [Line Items]              
Repurchases of common stock       $ 26,000,000 $ 20,000,000 $ 10,000,000 $ 10,000,000
Stock repurchased during period 2,931,125            
Payment for repurchase of common stock $ 24,587,000            
Stock purchased during period 0 0 0        
Shares remain authorized for repurchase amount $ 22,874,509            
v3.20.4
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Net share data          
Net asset value at the beginning of the year $ 11.80        
Net investment income (loss) (0.15)        
Income tax provision (benefit) 0.03        
Net realized gains (losses) on investments (1.44)        
Net change in unrealized appreciation on investments 0.94        
Net increase (decrease) in net assets resulting from operations (0.62)        
Issuance of common stock (0.03)        
Total increase (decrease) in net asset value (0.65)        
Net asset value at the end of the period/year [1] 11.15        
Per share market value at beginning of year 3.53        
Per share market value at end of period/year $ 4.65        
Total return [2] (129.00%)        
Ratios/supplemental data          
Total shareholders’ equity (net assets) $ 272,437 $ 304,561 $ 334,468 $ 290,204 $ 287,159
Average net assets $ 284,021        
Total expense ratio [3],[4] 10.02%        
Operating expenses to average net assets [3] 5.87%        
Net investment income (loss) after income taxes to average net assets [3] (4.61%)        
[1] Includes $0.00 of undistributed net investment income per share as of March 31, 2018 and $0.00 of undistributed net realized gains per share for the period presented.
[2] Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.
[3] MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter.
[4] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.
v3.20.4
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Parenthetical) (Detail)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2018
USD ($)
$ / shares
Investment Holdings [Line Items]  
Undistributed net investment income per share | $ / shares $ 0.00
Undistributed net realized gains per share | $ / shares $ 0.00
Servicing fee | $ $ 1,290
Operating expenses | $ $ 1,150
Total expense ratio 10.02% [1],[2]
Operating expense ratio 5.87% [1]
Excluding Impact of Medallion Servicing Corp. Amounts [Member]  
Investment Holdings [Line Items]  
Total expense ratio 11.75%
Operating expense ratio 6.88%
Net investment income ratio 7.51%
[1] MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter.
[2] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.
v3.20.4
Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Contribution Plan Disclosure [Line Items]      
Minimum percentage of total annual compensation allowed to be deferred 1.00%    
Employer matching contribution, description Once eligible full-time employees have completed a minimum of one (1) year of service, and part time employees have worked at least 500 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third of the first 6% of the employee’s annual contributions, subject to legal limits.    
Employee contributions to 401(k) Plan matched by company in an amount per employee of first 6% of employee's annual contributions 33.33%    
Defined benefit plan amount expense $ 203,000 $ 193,000 $ 182,000
v3.20.4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Financial assets    
Equity investments $ 9,746 $ 10,079
Investment securities 46,792 48,998
Loans receivable 1,229,838 1,160,855
Carrying Amount [Member]    
Financial assets    
Cash, cash equivalents, and federal funds sold [1] 112,040 67,821
Equity investments 9,746 10,079
Investment securities 46,792 48,998
Loans receivable 1,172,290 1,114,762
Accrued interest receivable [2] 10,338 8,662
Financial liabilities    
Funds borrowed [3] 1,312,255 1,169,593
Accrued interest payable [2] 4,673 4,398
Fair Value Recurring [Member]    
Financial assets    
Cash, cash equivalents, and federal funds sold [1] 112,040 67,821
Equity investments 9,746 10,079
Investment securities 46,792 48,998
Loans receivable 1,172,290 1,114,762
Accrued interest receivable [2] 10,338 8,662
Financial liabilities    
Funds borrowed [3] 1,312,591 1,171,274
Accrued interest payable [2] $ 4,673 $ 4,398
[1] Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17.
[2] Categorized as level 3 within the fair value hierarchy. See Note 17.
[3] As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681.
v3.20.4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,500,000  
Publicly traded retail notes traded at a premium to par 336,000 $ 1,681,000
Fair Value Recurring [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks 1,500,000  
Fair Value Recurring [Member] | Level 2 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,500,000  
v3.20.4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Assets    
Interest-bearing deposits $ 1,500,000  
Fair Value Recurring [Member]    
Assets    
Interest-bearing deposits 1,500,000  
Available for sale investment securities 46,792,000 [1] $ 48,998,000 [2]
Total 48,292,000 48,998,000
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,500,000  
Available for sale investment securities 46,792,000 [1] 48,998,000 [2]
Total $ 48,292,000 $ 48,998,000
[1] Total unrealized gains of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2020 related to these assets.
[2] Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 2019 related to these assets.
v3.20.4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]      
Net change in unrealized gains (losses) on investments, net of tax $ (82) $ 1,013 $ 1,081
v3.20.4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Assets      
Impaired loans $ 107,131,000 $ 113,581,000  
Loan collateral in process of foreclosure 54,560,000 [1] 52,711,000 [1] $ 49,495,000
Fair Value, Nonrecurring      
Assets      
Equity investments 9,746,000 10,079,000  
Impaired loans 62,174,000 34,915,000  
Loan collateral in process of foreclosure 54,560,000 52,711,000  
Total 126,480,000 97,705,000  
Fair Value, Nonrecurring | Level 3 [Member]      
Assets      
Equity investments 9,746,000 10,079,000  
Impaired loans 62,174,000 34,915,000  
Loan collateral in process of foreclosure 54,560,000 52,711,000  
Total $ 126,480,000 $ 97,705,000  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019.
v3.20.4
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 12 Months Ended
Dec. 31, 2020
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value $ 107,131,000 $ 113,581,000  
Loan collateral in process of foreclosure $ 54,560,000 [1] $ 52,711,000 [1] $ 49,495,000
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity Value | $ / shares $ 8.73 $ 8.73  
Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity Value   $ 4,855,000  
Equity Value   1.59  
Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity Value   $ 6,120,000  
Equity Investments [Member] | Precedent Arms Length Offer [Member] | Discount Rate [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity Value   0.25  
Impaired Loans [Member] | Market Approach [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans, balance percentage 0.60    
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans value 0.0150    
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans value 0.0600    
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value $ 600    
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value 108,700    
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value 700    
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value 32,300    
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value 600    
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value 108,700    
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity investments 8,291,000 $ 7,435,000  
Level 3 [Member] | Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity investments 1,455,000 1,455,000  
Level 3 [Member] | Equity Investments [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Financial Condition and Operating Performance of the Investee [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity investments   $ 1,189,000  
Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value 62,174,000    
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure 1,432,000    
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure $ 53,128,000    
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019.
v3.20.4
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Dec. 31, 2020
Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Preferred stock, liquidation preference per share     $ 1,000
U.S. Treasury Securities [Member] | Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
US Treasury shares purchased   26,303  
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Initial public offering shares 1,840,000    
Preferred stock, aggregate liquidation amount $ 46,000,000    
Preferred stock, net of liquidation amount $ 42,485,000    
Percentage of dividend payment rate 8.00%    
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | SOFR [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Percentage of liquidation rate basis 6.46%    
Dividend description of variable rate basis three-month Secured Overnight Financing Rate, or SOFR    
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Percentage of dividend payment rate     9.00%
Aggregate purchase price   $ 26,303,000  
v3.20.4
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Assets      
Net loans receivable $ 1,172,290 $ 1,114,762 $ 981,487
Loan collateral in process of foreclosure 54,560 [1] 52,711 [1] 49,495
Income tax receivable 1,757 1,516  
Other assets 20,591 19,404  
Total assets 1,642,411 1,541,667 $ 1,381,846
Liabilities      
Short-term borrowings 87,334 38,223  
Deferred tax liabilities 807 9,341  
Long-term borrowings [2] 153,718 174,614  
Total liabilities 1,337,850 1,207,199  
Total stockholders’ equity 231,408 263,148  
Total liabilities and equity 1,642,411 1,541,667  
Parent Company [Member]      
Assets      
Cash 33,743 4,477  
Net loans receivable 12,293 26,802  
Loan collateral in process of foreclosure 9,960 11,104  
Goodwill and intangible assets 175,731 177,176  
Investment in bank subsidiaries 149,686 158,201  
Investment in non-bank subsidiaries 88,165 92,856  
Income tax receivable 1,470 4,708  
Other assets 10,912 14,111  
Total assets 481,960 489,435  
Liabilities      
Other liabilities 21,302 18,660  
Intercompany payables 51,352 54,904  
Short-term borrowings 53,359 8,188  
Deferred tax liabilities 24,172 30,728  
Long-term borrowings 100,367 113,807  
Total liabilities 250,552 226,287  
Total stockholders’ equity 231,408 263,148  
Total liabilities and equity $ 481,960 $ 489,435  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by Medallion Bank of $3,535 and $8,163 as of December 31, 2020 and 2019.
[2] Includes $3,131 and $2,511 of deferred financing costs as of December 31, 2020 and 2019. Refer to Note 6 for more details.
v3.20.4
Parent Company Only Condensed Financial Statements - Condensed Statements of Operations (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Condensed Income Statements, Captions [Line Items]        
Interest expense [1]       $ 3,551
Net interest income/net investment income $ 71,987 $ 110,811 $ 97,517 72,469 [1]
Provision for loan losses 59,008 69,817 47,386 59,008 [1]
Net interest income after provision for loan losses 12,979 40,994 50,131 13,461 [1]
Income (loss) before income taxes/net investment loss before taxes (7,156) (36,981) 2,337 (10,722) [1],[2]
Income tax benefit [1]       8,426
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations [1]       $ (25,046)
Parent Company [Member]        
Condensed Income Statements, Captions [Line Items]        
Interest income (1,958) (2,824) (2,552)  
Interest expense 5,480 8,602 8,856  
Net interest income/net investment income (7,438) (11,426) (11,408)  
Provision for loan losses 19,190 5,127 6,377  
Net interest income after provision for loan losses (26,628) (16,553) (17,785)  
Other income (expense), net (16,913) (22,062) (13,686)  
Income (loss) before income taxes/net investment loss before taxes (43,541) (38,615) (31,471)  
Income tax benefit 5,328 10,454 7,013  
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations (38,213) (28,161) (24,458)  
Undistributed earnings (losses) of subsidiaries 28,041 (6,622) 22,696  
Net income (loss) attributable to parent company $ (10,172) $ (34,783) $ (1,762)  
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
[2] Includes $256 of net revenues received from Medallion Bank for the year ended December 31, 2018, primarily for expense reimbursements. See Notes 5 and 12 for additional information.
v3.20.4
Parent Company Only Condensed Financial Statements - Condensed Statements of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
 [1]
Condensed Statement of Income Captions [Line Items]        
Net income (loss) $ (7,865) $ (26,907) $ 1,996 $ (22,739)
Other comprehensive income (loss)   1,013 1,081 (82)
Total comprehensive loss attributable to Medallion Financial Corp.   (33,770) (681) $ (25,128)
Parent Company [Member]        
Condensed Statement of Income Captions [Line Items]        
Net income (loss) (10,172) (34,783) (1,762)  
Other comprehensive income (loss) (82) 1,013 1,081  
Total comprehensive loss attributable to Medallion Financial Corp. $ (10,254) $ (33,770) $ (681)  
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Parent Company Only Condensed Financial Statements - Condensed Statements of Cash Flow (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss) after taxes/net decrease on net assets resulting from operations $ (7,865) $ (26,907) $ 1,996 $ (22,739) [1]
Adjustments to reconcile net loss to net cash provided by operating activities:        
Provision for loan losses   69,817 47,386 59,008 [1]
Depreciation and amortization   7,714 7,499 5,564 [1]
Change in deferred and other tax assets/liabilities, net   (8,776) 853 13,637 [1]
Net change in value of loan collateral in process of foreclosure   31,926 11,838 9,926 [1]
Net change in unrealized depreciation on investments     1,734 6,457 [1]
Stock-based compensation expense   2,030 1,221 576 [1]
Decrease in other assets   2,223 2,838 1,309 [1]
Increase in other liabilities [1]       4,196
Net cash provided by operating activities   78,706 64,935 66,551 [1]
CASH FLOWS FROM INVESTING ACTIVITIES        
Loans originated   (506,106) (471,069) (333,740) [1]
Proceeds from principal receipts, sales, and maturities of loans   321,831 251,653 302,409 [1]
Purchases of investments   (15,580) (10,507) (10,376) [1]
Proceeds from the sale and principal payments on loan collateral in process of foreclosure   13,499 16,294 11,593 [1]
Net cash used for investing activities   (170,957) (206,510) (23,697) [1]
CASH FLOWS FROM FINANCING ACTIVITIES        
Proceeds from funds borrowed   668,577 525,842 364,139 [1]
Repayments of time deposits and funds borrowed   (526,064) (414,277) (389,951) [1]
Net cash provided by (used for) financing activities   136,470 151,683 (27,654) [1]
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   44,219 10,108 15,200 [1]
Parent Company [Member]        
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss) after taxes/net decrease on net assets resulting from operations (10,172) (34,783) (1,762)  
Adjustments to reconcile net loss to net cash provided by operating activities:        
Equity in undistributed (earnings) losses of subsidiaries (28,041) 6,622 (22,696)  
Provision for loan losses 19,190 5,127 6,377  
Depreciation and amortization 5,451 5,357 5,484  
Change in deferred and other tax assets/liabilities, net 4,512 (3,317) (2,225)  
Net change in value of loan collateral in process of foreclosure 678 4,940 906  
Net change in unrealized depreciation on investments   3,493 1,786  
Stock-based compensation expense 425 2,031 1,221  
Decrease in other assets 4,073 2,299 988  
Increase in deferred financing costs   (1,233) (1,297)  
Decrease in intercompany payables (3,368) (3,552) (8,448)  
Increase in other liabilities 4,237 2,336 (1,759)  
Net cash provided by operating activities (3,015) (10,680) (21,425)  
CASH FLOWS FROM INVESTING ACTIVITIES        
Loans originated (309) (14) (3,312)  
Proceeds from principal receipts, sales, and maturities of loans 10,900 1,193 2,313  
Purchases of investments   (2,304) (1,125)  
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 487 1,276 2,403  
Dividends from subsidiaries 5,200 7,597 6,248  
Net cash used for investing activities 16,278 7,748 6,527  
CASH FLOWS FROM FINANCING ACTIVITIES        
Proceeds from funds borrowed   33,600 36,000  
Repayments of time deposits and funds borrowed (17,208) (1,402) (17,735)  
Net cash provided by (used for) financing activities (17,208) 32,198 18,265  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,945) 29,266 3,367  
Cash and cash equivalents, beginning of period 5,055 4,477 1,110  
Cash and cash equivalents, end of period $ 1,110 $ 33,743 $ 4,477 $ 1,110
[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.
v3.20.4
Variable Interest Entities - Additional Information (Detail) - USD ($)
 12 Months Ended
Oct. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2008
Variable Interest Entity [Line Items]        
Variable interest entity net gain $ 25,325,000      
Equity investments   $ 9,746,000 $ 10,079,000  
Medallion Financing Trust I [Member]        
Variable Interest Entity [Line Items]        
Promissory note payable $ 1,400,000      
Taxi Medallion Loan Trust III [Member]        
Variable Interest Entity [Line Items]        
Equity investments   0 $ 0  
Taxi Medallion Loan Trust III [Member] | DZ Loan [Member] | Commercial Paper [Member]        
Variable Interest Entity [Line Items]        
Line of credit facility maximum borrowing capacity       $ 200,000,000
Long-term debt   $ 86,825,000    
Maturity date   May 15, 2021    
v3.20.4
Subsequent Events - Additional Information (Detail)
 12 Months Ended
Mar. 12, 2021
Mar. 11, 2021
Dec. 31, 2020
Notes Payable to Banks with Maturity of September 1, 2021 [Member] | Subsequent Event [Member]      
Subsequent Event [Line Items]      
Maturity date   Sep. 01, 2021  
Notes Payable to Banks with Maturity of April 15, 2021 [Member] | Subsequent Event [Member]      
Subsequent Event [Line Items]      
Maturity date Apr. 15, 2021    
Notes Payable to Banks with Maturity of February 1, 2021 [Member]      
Subsequent Event [Line Items]      
Maturity date     Feb. 01, 2021
Notes Payable to Banks with Maturity of February 9, 2021 [Member]      
Subsequent Event [Line Items]      
Maturity date     Feb. 09, 2021