MEDALLION FINANCIAL CORP, 10-Q filed on 05 May 21
v3.21.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2021
May 03, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   25,033,486
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-37747  
Entity Tax Identification Number 04-3291176  
Entity Address, Address Line One 437 MADISON AVENUE, 38th Floor  
Entity Address, City or Town NEW YORK  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10022  
City Area Code 212  
Local Phone Number 328-2100  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.21.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Assets    
Cash and cash equivalents [1] $ 69,477 $ 54,743
Federal funds sold 70,800 57,297
Investment securities 38,081 46,792
Equity investments 9,529 9,746
Loans 1,259,215 1,229,838
Allowance for loan losses (57,809) [2],[3] (57,548)
Net loans receivable 1,201,406 1,172,290
Accrued interest receivable 9,215 10,338
Income tax receivable 859 1,757
Property, equipment, and right-of-use lease asset, net 11,858 12,404
Loan collateral in process of foreclosure [4] 50,733 54,560
Goodwill 150,803 150,803
Intangible assets, net 50,729 51,090
Other assets 25,260 20,591
Total assets 1,688,750 1,642,411
Liabilities    
Accounts payable and accrued expenses [5] 17,746 14,902
Accrued interest payable 4,762 4,673
Deposits [6] 1,084,074 1,065,398
Short-term borrowings 73,937 87,334
Deferred tax liabilities, net 3,528 807
Operating lease liabilities 10,464 11,018
Long-term debt [7] 182,225 153,718
Total liabilities 1,376,736 1,337,850
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- 27,985,598 shares at March 31, 2021 and 27,828,871 shares at December 31, 2020 issued) 280 278
Additional paid in capital 278,035 277,539
Treasury stock (2,951,243 shares at March 31, 2021 and December 31, 2020) (24,919) (24,919)
Accumulated other comprehensive income 1,407 2,012
Retained earnings (accumulated deficit) (15,071) (23,502)
Total stockholders’ equity 239,732 231,408
Non-controlling interest in consolidated subsidiaries 72,282 73,153
Total equity 312,014 304,561
Total liabilities and equity $ 1,688,750 $ 1,642,411
Number of shares outstanding 25,034,355 24,877,628
Book value per share $ 9.58 $ 9.30
[1] Includes restricted cash of $2,970 as of March 31, 2021 and December 31, 2020.
[2] As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3] As of September 30, 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] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,818 as of March 31, 2021 and $3,535 as of December 31, 2020.
[5] Includes the short-term portion of lease liabilities of $2,048 and $2,004 as of March 31, 2021 and December 31, 2020. Refer to Note 6 for more details.
[6] Includes $2,661 and $2,674 of deferred financing costs as of March 31, 2021 and December 31, 2020. Refer to Note 5 for more details.
[7] Includes $3,862 and $3,131 of deferred financing costs as of March 31, 2021 and December 31, 2020. Refer to Note 5 for more details.
[8] Refer to Note 10 for details.
v3.21.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 27,985,598 27,828,871
Treasury stock,shares 2,951,243 2,951,243
Restricted cash $ 2,970 $ 2,970
Loan collateral in process of foreclosure, financed sales collateral to third parties 3,818 3,535
Short term lease liabilities 2,048 2,004
Deposits [Member]    
Deferred financing costs 2,661 2,674
Long-Term Debt [Member]    
Deferred financing costs $ 3,862 $ 3,131
v3.21.1
Consolidated Statements of Operations - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Statement [Abstract]    
Interest and fees on loans $ 36,855,000 $ 35,019,000
Interest and dividends on investment securities 225,000 470,000
Medallion lease income   53,000
Total interest income [1] 37,080,000 35,542,000
Interest on deposits 4,711,000 5,941,000
Interest on short-term borrowings 403,000 564,000
Interest on long-term debt 3,293,000 2,495,000
Total interest expense [2] 8,407,000 9,000,000
Net interest income 28,673,000 26,542,000
Provision for loan losses 3,019,000 16,541,000
Net interest income after provision for loan losses 25,654,000 10,001,000
Other income (loss)    
Write-down of loan collateral in process of foreclosure (2,785,000) (6,286,000)
Sponsorship and race winnings, net 2,473,000 2,573,000
Gain on extinguishment of debt 1,767,000  
Loss on equity investments   (3,510,000)
Other income 482,000 243,000
Total other income (loss), net 1,937,000 (6,980,000)
Other expenses    
Salaries and employee benefits 5,685,000 6,933,000
Race team related expenses 2,122,000 2,130,000
Loan servicing fees 1,647,000 1,612,000
Collection costs 1,232,000 1,229,000
Professional fees 507,000 3,589,000
Rent expense 675,000 697,000
Regulatory fees 438,000 365,000
Amortization of intangible assets 361,000 361,000
Other expenses 1,975,000 2,355,000
Total other expenses 14,642,000 19,271,000
Income (loss) before income taxes 12,949,000 (16,250,000)
Income tax (provision) benefit (3,878,000) 3,249,000
Net income (loss) after taxes 9,071,000 (13,001,000)
Less: income attributable to the non-controlling interest 640,000 642,000
Total net income (loss) attributable to Medallion Financial Corp. $ 8,431,000 $ (13,643,000)
Basic net income (loss) per share $ 0.34 $ (0.56)
Diluted net income (loss) per share $ 0.34 $ (0.56)
Weighted average common shares outstanding    
Basic 24,518,775 24,401,773
Diluted 24,895,108 24,401,773
[1] Included in interest and investment income is $325 and $293 of paid-in-kind interest for the three months ended March 31, 2021 and 2020.
[2] Average borrowings outstanding were $1,305,162 and $1,164,483, and the related average borrowing costs were 2.61% and 3.11%, for the three months ended March 31, 2021 and 2020.
v3.21.1
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Statement [Abstract]    
Interest paid-in-kind $ 325 $ 293
Average borrowings outstanding $ 1,305,162 $ 1,164,483
Average borrowing costs rate 2.61% 3.11%
v3.21.1
Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]    
Net income (loss) after taxes $ 9,071 $ (13,001)
Other comprehensive income (loss), net of tax (605) 147
Total comprehensive income (loss) 8,466 (12,854)
Less comprehensive income attributable to the non-controlling interest 640 642
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 7,826 $ (13,496)
v3.21.1
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Preferred Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2019 $ 334,468 $ 276   $ 275,511 $ (24,919) $ 11,281 $ 999 $ 263,148 $ 71,320
Balance, shares at Dec. 31, 2019   27,597,802     (2,951,243)        
Net income (loss) (13,001)         (13,643)   (13,643) 642
Distributions to non-controlling interest (1,507)               (1,507)
Stock-based compensation expense 466 $ 2   464       466  
Issuance of restricted stock, net 0 $ 0 $ 0 0 $ 0 0 0 0 0
Issuance of restricted stock, net, shares   165,674              
Forfeiture of restricted stock, net 0 $ 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (5,577)              
Net change in unrealized gains (losses) on investments, net of tax 147           147 147  
Ending balance at Mar. 31, 2020 320,573 $ 278   275,975 $ (24,919) (2,362) 1,146 250,118 70,455
Ending balance, shares at Mar. 31, 2020   27,757,899     (2,951,243)        
Balance at Dec. 31, 2019 $ 334,468 $ 276   275,511 $ (24,919) 11,281 999 263,148 71,320
Balance, shares at Dec. 31, 2019   27,597,802     (2,951,243)        
Exercise of stock options, shares [1] 0                
Net change in unrealized gains (losses) on investments, net of tax $ (1,013)                
Ending balance at Dec. 31, 2020 $ 304,561 $ 278   277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Ending balance, shares at Dec. 31, 2020 24,877,628 27,828,871     (2,951,243)        
Net income (loss) $ 9,071         8,431   8,431 640
Distributions to non-controlling interest (1,511)               (1,511)
Stock-based compensation expense $ 498 $ 2   496       498  
Issuance of restricted stock, net, shares   163,561              
Forfeiture of restricted stock, net, shares   (7,602)              
Exercise of stock options, shares 768 [1] 768              
Net change in unrealized gains (losses) on investments, net of tax $ (605)           (605) (605)  
Ending balance at Mar. 31, 2021 $ 312,014 $ 280   $ 278,035 $ (24,919) $ (15,071) $ 1,407 $ 239,732 $ 72,282
Ending balance, shares at Mar. 31, 2021 25,034,355 27,985,598     (2,951,243)        
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $1,000 and $0 for the three months ended March 31, 2021 and 2020.
v3.21.1
Consolidated Statements of Cash Flows - USD ($)
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 9,071,000 $ (13,001,000)
Adjustments to reconcile net loss from operations to net cash provided by operating activities:    
Provision for loan losses 3,019,000 16,541,000
Paid-in-kind interest (325,000) (293,000)
Depreciation and amortization 1,321,000 1,590,000
Increase (decrease) in deferred and other tax liabilities 3,620,000 (2,713,000)
Amortization of origination fees, net 1,656,000 1,304,000
Net change in value of loan collateral in process of foreclosure 4,002,000 8,825,000
Net realized losses on investments   3,554,000
Stock-based compensation expense 498,000 466,000
Gain on extinguishment of debt (1,767,000)  
Decrease in accrued interest receivable 1,123,000 125,000
(Increase) decrease in other assets (2,228,000) 205,000
Increase in accounts payable and accrued expenses 944,000 1,249,000
(Increase) decrease in accrued interest payable 126,000 (1,062,000)
Net cash provided by operating activities 21,060,000 16,790,000
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (150,598,000) (107,149,000)
Proceeds from principal receipts, sales, and maturities of loans 113,144,000 67,368,000
Purchases of investments (2,000,000) (6,541,000)
Proceeds from principal receipts, sales, and maturities of investments 8,280,000 7,692,000
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 3,627,000 4,007,000
Net cash used for investing activities (27,547,000) (34,623,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 181,179,000 114,418,000
Repayments of time deposits and funds borrowed (144,944,000) (107,402,000)
Distributions to non-controlling interests (1,511,000) (1,507,000)
Net cash provided by financing activities 34,724,000 5,509,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 28,237,000 (12,324,000)
Cash, cash equivalents and restricted cash, beginning of period [1] 112,040,000 67,821,000
Cash, cash equivalents and restricted cash, end of period [1] 140,277,000 55,497,000
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 7,637,000 9,339,000
Cash paid during the period for income taxes 4,000 3,000
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 3,802,000 $ 6,938,000
[1] Includes federal funds sold.
v3.21.1
Organization of Medallion Financial Corp. and its Subsidiaries
3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

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

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

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

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

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

In 2019, the Bank began the process to build out a strategic partnership program with financial technology, or fintech, companies. The Bank entered into an initial partnership in 2020 and a second partnership in 2021, which will soon be active, 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 15. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Trust III. Trust III’s loans are serviced by MFC.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $36,083,000 at March 31, 2021, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

MFC, through several wholly-owned subsidiaries, together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 taxi medallions are carried at a net realizable value of $2,298,000 in other assets on the Company’s consolidated balance sheet at March 31, 2021, compared to a net realizable value of $2,932,000 and $3,091,000 at December 31, 2020 and March 31, 2020.

v3.21.1
Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  

Use of Estimates

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

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

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

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,500,000 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, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $9,529,000 and $9,746,000 at March 31, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of March 31, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change.   

In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,972,000 as of March 31, 2021 are included in other assets on the consolidated balance sheet.

The table below presents the unrealized portion related to the equity securities held as of March 31, 2021.

 

(Dollars in thousands)

 

March 31, 2021

 

Net losses recognized during the period on equity securities

 

$

(28

)

Less: Net gains (losses) recognized during the period on equity securities sold during the period

 

 

 

Unrealized losses recognized during the reporting period on equity securities still held at the reporting date

 

$

(28

)

 

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $235,000 at March 31, 2021 and $278,000 at December 31, 2020, and $43,000 and $55,000 was amortized to interest income for the three months ended March 31, 2021 and 2020. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed.

Loans

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

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At March 31, 2021 and December 31, 2020, net loan origination costs were $21,618,000 and $20,684,000. Net amortization to income for the three months ended March 31, 2021 and 2020 was $1,656,000 and $1,304,000.

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 $4,118,000 at March 31, 2021, or 0.33% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the

entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in the third quarter 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is to take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the Coronavirus Aid, Relief, and Economic Security Act, or 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. During the relief period, companies may elect to (a) suspend the requirements of 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 March 31, 2021, 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 and 2021. 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 $11,020,000 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at March 31, 2021 and December 31, 2020.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $106,325,000 at March 31, 2021 and $107,131,000 at December 31, 2020. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of March 31, 2021 and December 31, 2020. 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

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as 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 2020, of which there was an increase of 25-50 basis points for the three months ended March 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 in the third quarter of 2020. As a result, all medallion loans were placed on nonaccrual and written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions.  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.

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 March 31, 2021, December 31, 2020, and March 31, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,729,000, $51,090,000, and $52,175,000, and the Company recognized $361,000 of amortization expense on the intangible assets for the three months ended March 31, 2021 and 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,530,000, $2,717,000, and $5,429,000 were outstanding at March 31, 2021, December 31, 2020, and March 31, 2020, and of which $187,000 and $329,000 were amortized to interest income for the three months ended March 31, 2021 and 2020. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2020, who concluded there was no impairment on the Bank and on the RPAC intangible asset. The Company reviewed the goodwill related to the Bank and the RPAC intangible assets, considered whether the current COVID-19 pandemic had any effect on such goodwill, and concluded that there was no additional impairment as of March 31, 2021.

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

 

(Dollars in thousands)

 

March 31, 2021

 

 

December 31, 2020

 

Brand-related intellectual property

 

$

18,699

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,865

 

 

 

5,951

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets, net

 

$

50,729

 

 

$

51,090

 

 

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $84,000 and $121,000 for the three months ended March 31, 2021 and 2020.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $645,000 and $723,000 for the three months ended March 31, 2021 and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $6,523,000, $5,805,000, and $4,674,000 as of March 31, 2021, December 31, 2020, and March 31, 2020.

Income Taxes

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

Sponsorship and Race Winnings

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

Earnings (Loss) Per Share (EPS)

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

 

 

 

Three Months Ended March 31,

 

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

 

2021

 

 

2020

 

Net income (loss) resulting from operations

   available to common stockholders

 

$

8,431

 

 

$

(13,643

)

Weighted average common shares outstanding applicable to

   basic EPS

 

 

24,518,775

 

 

 

24,401,773

 

Effect of dilutive stock options

 

 

21,168

 

 

 

 

Effect of restricted stock grants

 

 

355,165

 

 

 

 

Adjusted weighted average common shares outstanding

   applicable to diluted EPS

 

 

24,895,108

 

 

 

24,401,773

 

Basic income (loss) per share

 

$

0.34

 

 

$

(0.56

)

Diluted income (loss) per share

 

 

0.34

 

 

 

(0.56

)

 

Potentially dilutive common shares excluded from the above calculations aggregated 1,188,455 and 807,368 shares as of March 31, 2021 and 2020.

Stock Compensation

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

During the three months ended March 31, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued no restricted stock units; and recognized $498,000 and $466,000, or $0.02 and $0.02 per share, for the three months ended March 31, 2021 and 2020, of non-cash stock-based compensation expense related to the grants. As of March 31, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $4,100,000, which is expected to be recognized over the next 16 quarters. See Note 8 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 with, such as certain purchases of assets, the Company or its affiliates.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of March 31, 2021, the Bank’s Tier 1 leverage ratio was 18.03%. 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

 

 

March 31, 2021

 

 

December 31, 2020

 

Common equity Tier 1 capital

 

 

 

 

 

 

 

$

159,268

 

 

$

148,507

 

Tier 1 capital

 

 

 

 

 

 

 

 

228,056

 

 

 

217,295

 

Total capital

 

 

 

 

 

 

 

 

244,623

 

 

 

233,460

 

Average assets

 

 

 

 

 

 

 

 

1,265,004

 

 

 

1,283,664

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,276,656

 

 

 

1,243,783

 

Leverage ratio(1)

 

 

4.0

%

 

 

5.0

%

 

 

18.0

%

 

 

16.9

%

Common equity Tier 1 capital ratio(2)

 

 

7.0

 

 

 

6.5

 

 

 

12.5

 

 

 

11.9

 

Tier 1 capital ratio(3)

 

 

8.5

 

 

 

8.0

 

 

 

17.9

 

 

 

17.5

 

Total capital ratio(3)

 

 

10.5

 

 

 

10.0

 

 

 

19.2

 

 

 

18.8

 

 

(1)

Calculated by dividing Tier 1 capital by average assets.

(2)

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

(3)

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

In the table above, the minimum risk-based ratios as of March 31, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2021 and December 31, 2020.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans.

Reclassifications

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

v3.21.1
Investment Securities
3 Months Ended
Mar. 31, 2021
Schedule Of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

Fixed maturity securities available for sale at March 31, 2021 and December 31, 2020 consisted of the following:

 

March 31, 2021

(Dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of US

   federal agencies

 

$

29,365

 

 

$

1,005

 

 

$

(219

)

 

$

30,151

 

State and municipalities

 

 

7,919

 

 

 

92

 

 

 

(81

)

 

 

7,930

 

Total

 

$

37,284

 

 

$

1,097

 

 

$

(300

)

 

$

38,081

 

 

December 31, 2020

(Dollars in thousands)

 

Amortized Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of

   US federal agencies

 

$

34,929

 

 

$

1,495

 

 

$

(45

)

 

$

36,379

 

State and municipalities

 

 

10,226

 

 

 

189

 

 

 

(2

)

 

 

10,413

 

Total

 

$

45,155

 

 

$

1,684

 

 

$

(47

)

 

$

46,792

 

 

The amortized cost and estimated market value of investment securities at March 31, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized Cost

 

 

Fair Value

 

Due in one year or less

 

$

20

 

 

$

20

 

Due after one year through five years

 

 

8,678

 

 

 

8,977

 

Due after five years through ten years

 

 

14,006

 

 

 

14,344

 

Due after ten years

 

 

14,580

 

 

 

14,740

 

Total

 

$

37,284

 

 

$

38,081

 

 

The following tables show information pertaining to securities with gross unrealized losses at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

March 31, 2021

(Dollars in thousands)

 

Gross Unrealized

Losses

 

 

Fair Value

 

 

Gross Unrealized

Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of

   US federal agencies

 

$

(219

)

 

$

5,577

 

 

$

 

                      -

$

 

State and municipalities

 

 

(78

)

 

 

3,935

 

 

 

(3

)

 

 

127

 

Total

 

$

(297

)

 

$

9,512

 

 

$

(3

)

 

$

127

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2020

(Dollars in thousands)

 

Gross Unrealized

Losses

 

 

Fair Value

 

 

Gross Unrealized

Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of

   US federal agencies

 

$

(45

)

 

$

4,028

 

 

$

 

 

$

 

State and municipalities

 

 

 

 

 

 

 

 

(2

)

 

 

196

 

Total

 

$

(45

)

 

$

4,028

 

 

$

(2

)

 

$

196

 

 

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

v3.21.1
Loans and Allowance for Loan Losses
3 Months Ended
Mar. 31, 2021
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at March 31, 2021 and December 31, 2020.

 

 

 

March 31, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Amount

 

 

As a Percent of

Gross Loans

 

 

Amount

 

 

As a Percent of

Gross Loans

 

Recreation

 

$

822,932

 

 

 

65

%

 

$

792,686

 

 

 

65

%

Home improvement

 

 

342,121

 

 

 

27

 

 

 

334,033

 

 

 

27

 

Commercial

 

 

58,854

 

 

 

5

 

 

 

65,327

 

 

 

5

 

Medallion

 

 

35,250

 

 

 

3

 

 

 

37,768

 

 

 

3

 

Strategic partnership

 

 

58

 

 

 

 

 

 

24

 

 

 

 

Total gross loans

 

 

1,259,215

 

 

 

100

%

 

 

1,229,838

 

 

 

100

%

Allowance for loan losses

 

 

(57,809

)

 

 

 

 

 

 

(57,548

)

 

 

 

 

Total net loans

 

$

1,201,406

 

 

 

 

 

 

$

1,172,290

 

 

 

 

 

 

The following tables show the activity of the gross loans for the three months ended March 31, 2021 and 2020.

 

Three Months Ended March 31, 2021

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

93,850

 

 

 

48,059

 

 

 

4,156

 

 

 

 

 

 

1,944

 

 

 

148,009

 

Principal payments, sales, and maturities

 

 

(58,427

)

 

 

(40,069

)

 

 

(10,965

)

 

 

(1,825

)

 

 

(1,910

)

 

 

(113,196

)

Charge-offs, net

 

 

(2,584

)

 

 

(249

)

 

 

 

 

 

 

75

 

 

 

 

 

 

(2,758

)

Transfer to loan collateral in process

   of foreclosure, net

 

 

(3,053

)

 

 

 

 

 

 

 

 

(696

)

 

 

 

 

 

(3,749

)

Amortization of origination costs

 

 

(2,162

)

 

 

497

 

 

 

11

 

 

 

(2

)

 

 

 

 

 

(1,656

)

Amortization of loan premium

 

 

(41

)

 

 

(76

)

 

 

 

 

 

(70

)

 

 

 

 

 

(187

)

FASB origination costs

 

 

2,663

 

 

 

(74

)

 

 

 

 

 

 

 

 

 

 

 

2,589

 

Paid-in-kind interest

 

 

 

 

 

 

 

 

325

 

 

 

 

 

 

 

 

 

325

 

Gross loans – March 31, 2021

 

$

822,932

 

 

$

342,121

 

 

$

58,854

 

 

$

35,250

 

 

$

58

 

 

$

1,259,215

 

 

 

Three Months Ended March 31, 2020

(Dollars in thousands)

 

Recreation

 

 

Home

Improvement

 

 

Commercial

 

 

Medallion

 

 

Total

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

1,160,855

 

Loan originations

 

 

69,643

 

 

 

33,465

 

 

 

2,175

 

 

 

 

 

105,283

 

Principal payments, sales and maturities

 

 

(37,070

)

 

 

(24,225

)

 

 

(3,999

)

 

 

(2,075

)

 

 

(67,369

)

Charge-offs, net