MEDALLION FINANCIAL CORP, 10-Q filed on 08 Nov 21
 | XBRL Documents
v3.21.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2021
Nov. 05, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
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   25,078,944
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 $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.21.2
Consolidated Balance Sheets - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Assets    
Cash and cash equivalents [1] $ 30,688,000 $ 54,743,000
Federal funds sold 54,686,000 57,297,000
Investment securities 47,511,000 46,792,000
Equity investments 10,214,000 9,746,000
Loans 1,419,681,000 1,229,838,000
Allowance for loan losses (47,448,000) [2] (57,548,000)
Net loans receivable 1,372,233,000 1,172,290,000
Goodwill 150,803,000 150,803,000
Intangible assets, net 50,007,000 51,090,000
Loan collateral in process of foreclosure [3] 42,544,000 54,560,000
Property, equipment, and right-of-use lease asset, net 11,741,000 12,404,000
Accrued interest receivable 9,646,000 10,338,000
Income tax receivable 540,000 1,757,000
Other assets 24,621,000 20,591,000
Total assets 1,805,234,000 1,642,411,000
Liabilities    
Deposits [4] 1,196,508,000 1,065,398,000
Long-term debt [5] 213,858,000 153,718,000
Deferred tax liabilities, net 12,703,000 807,000
Operating lease liabilities 9,346,000 11,018,000
Short-term borrowings 8,054,000 87,334,000
Accrued interest payable 3,047,000 4,673,000
Accounts payable and accrued expenses [6] 23,106,000 14,902,000
Total liabilities 1,466,622,000 1,337,850,000
Commitments and contingencies [7]
Stockholders’ equity    
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding)
Common stock (50,000,000 shares of $0.01 par value stock authorized- 28,033,404 shares at September 30, 2021 and 27,828,871 shares at December 31, 2020 issued) 280,000 278,000
Additional paid in capital 279,454,000 277,539,000
Treasury stock (2,951,243 shares at September 30, 2021 and December 31, 2020) (24,919,000) (24,919,000)
Accumulated other comprehensive income 1,293,000 2,012,000
Retained earnings (accumulated deficit) 11,136,000 (23,502,000)
Total stockholders’ equity 267,244,000 231,408,000
Non-controlling interest in consolidated subsidiaries 71,368,000 73,153,000
Total equity 338,612,000 304,561,000
Total liabilities and equity $ 1,805,234,000 $ 1,642,411,000
Number of shares outstanding 25,082,161 24,877,628
Book value per share $ 10.65 $ 9.30
[1] Includes restricted cash of $2,970 as of September 30, 2021 and December 31, 2020.
[2] As of September 30, 2021 and September 30, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $4,793 as of September 30, 2021 and $3,535 as of December 31, 2020.
[4] Includes $3,047 and $2,674 of deferred financing costs as of September 30, 2021 and December 31, 2020. Refer to Note 5 for more details.
[5] Includes $4,051 and $3,131 of deferred financing costs as of September 30, 2021 and December 31, 2020. Refer to Note 5 for more details.
[6] Includes the short-term portion of lease liabilities of $2,140 and $2,004 as of September 30, 2021 and December 31, 2020. Refer to Note 6 for more details.
[7] Refer to Note 10 for details.
v3.21.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 28,033,404 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 4,793 3,535
Short term lease liabilities 2,140 2,004
Deposits [Member]    
Deferred financing costs 3,047 2,674
Long-Term Debt [Member]    
Deferred financing costs $ 4,051 $ 3,131
v3.21.2
Consolidated Statements of Operations - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement [Abstract]        
Interest and fees on loans $ 41,250,000 $ 37,201,000 $ 115,237,000 $ 107,544,000
Interest and dividends on investment securities 247,000 239,000 716,000 973,000
Medallion lease income       53,000
Total interest income [1] 41,497,000 37,440,000 115,953,000 108,570,000
Interest on deposits 4,189,000 5,454,000 13,366,000 17,315,000
Interest on short-term borrowings 39,000 520,000 690,000 1,565,000
Interest on long-term debt 3,198,000 2,410,000 9,662,000 7,339,000
Total interest expense [2] 7,426,000 8,384,000 23,718,000 26,219,000
Net interest income (loss) 34,071,000 29,056,000 92,235,000 82,351,000
Provision (benefit) for loan losses (337,000) 39,749,000 2,000,000 73,231,000
Net interest income (loss) after loss provision 34,408,000 (10,693,000) 90,235,000 9,120,000
Other income (loss)        
Sponsorship and race winnings, net 3,335,000 8,962,000 10,153,000 15,161,000
Gain (loss) on equity investments 4,101,000 137,000 7,306,000 (3,423,000)
Write-down of loan collateral in process of foreclosure (438,000) (8,559,000) (5,385,000) (15,828,000)
Gain on extinguishment of debt 2,859,000 23,000 4,626,000 23,000
Other income (loss) 208,000 397,000 209,000 1,303,000
Total other income (loss), net 7,206,000 960,000 16,909,000 (2,764,000)
Other expenses        
Salaries and employee benefits 7,957,000 7,081,000 21,542,000 20,716,000
Race team related expenses 2,424,000 2,636,000 7,219,000 6,584,000
Loan servicing fees 1,684,000 1,729,000 5,062,000 5,070,000
Professional fees 1,963,000 1,651,000 4,694,000 6,559,000
Collection costs 1,136,000 1,516,000 4,010,000 4,206,000
Rent expense 481,000 676,000 1,780,000 2,004,000
Regulatory fees 488,000 348,000 1,383,000 949,000
Travel, meals, and entertainment 175,000 64,000 404,000 303,000
Amortization of intangible assets 362,000 362,000 1,083,000 1,084,000
Other expenses 2,053,000 2,618,000 6,008,000 6,663,000
Total other expenses 18,723,000 18,681,000 53,185,000 54,138,000
Net income (loss) before taxes 22,891,000 (28,414,000) 53,959,000 (47,782,000)
Income tax (provision) benefit (6,167,000) 8,381,000 (16,573,000) 12,483,000
Net income (loss) after taxes 16,724,000 (20,033,000) 37,386,000 (35,299,000)
Less: income attributable to the non-controlling interest 784,000 3,597,000 2,748,000 5,951,000
Total net income (loss) attributable to Medallion Financial Corp. $ 15,940,000 $ (23,630,000) $ 34,638,000 $ (41,250,000)
Basic net income (loss) per share $ 0.65 $ (0.97) $ 1.41 $ (1.69)
Diluted net income (loss) per share 0.64 (0.97) 1.39 (1.69)
Distributions declared per share $ 0 $ 0 $ 0 $ 0
Weighted average common shares outstanding        
Basic 24,634,845 24,461,488 24,583,573 24,440,067
Diluted 24,990,226 24,461,488 24,945,707 24,440,067
[1] Included in interest and investment income is $188 and $682 of paid-in-kind interest for the three and nine months ended September 30, 2021 and $306 and $940 for the three and nine months ended September 30, 2020.
[2] Average borrowings outstanding were $1,391,350 and $1,342,581, and the related average borrowing costs were 2.12% and 2.36% for the three and nine months ended September 30, 2021, and were $1,309,787 and $1,255,053, and 2.55% and 2.79%, for the three and nine months ended September 30, 2020.
v3.21.2
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement [Abstract]        
Interest paid-in-kind $ 188 $ 306 $ 682 $ 940
Average borrowings outstanding $ 1,391,350 $ 1,309,787 $ 1,342,581 $ 1,255,053
Average borrowing costs rate 2.12% 2.55% 2.36% 2.79%
v3.21.2
Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]        
Net income (loss) after taxes $ 16,724 $ (20,033) $ 37,386 $ (35,299)
Other comprehensive income (loss), net of tax (141) (53) (719) 1,075
Total comprehensive income (loss) 16,583 (20,086) 36,667 (34,224)
Less comprehensive income attributable to the non-controlling interest 784 3,597 2,748 5,951
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 15,799 $ (23,683) $ 33,919 $ (40,175)
v3.21.2
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2019 $ 334,468 $ 276 $ 275,511 $ (24,919) $ 11,281 $ 999 $ 263,148 $ 71,320
Balance, shares at Dec. 31, 2019   27,597,802   (2,951,243)        
Net income (loss) (13,001) $ 0 0 $ 0 (13,643) 0 (13,643) 642
Distributions to non-controlling interest (1,507)   0 0 0 0 0  
Stock-based compensation expense 466 2 464 0 0 0 466  
Issuance of restricted stock, net 0 $ 0 0 0 0 0 0 0
Issuance of restricted stock, net, shares   165,674            
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (5,577)            
Net change in unrealized gains (losses) on investments, net of tax 147 $ 0 0 0 0 147 147 0
Ending balance at Mar. 31, 2020 320,573 $ 278 275,975 $ (24,919) (2,362) 1,146 250,118 70,455
Ending balance, shares at Mar. 31, 2020   27,757,899   (2,951,243)        
Balance at Dec. 31, 2019 334,468 $ 276 275,511 $ (24,919) 11,281 999 263,148 71,320
Balance, shares at Dec. 31, 2019   27,597,802   (2,951,243)        
Net income (loss) (35,299)              
Ending balance at Sep. 30, 2020 297,207 $ 278 277,003 $ (24,919) (29,969) 2,074 224,467 72,740
Ending balance, shares at Sep. 30, 2020   27,765,346   (2,951,243)        
Balance at Dec. 31, 2019 334,468 $ 276 275,511 $ (24,919) 11,281 999 263,148 71,320
Balance, shares at Dec. 31, 2019   27,597,802   (2,951,243)        
Net change in unrealized gains (losses) on investments, net of tax (1,013)              
Ending balance at Dec. 31, 2020 $ 304,561 $ 278 277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Ending balance, shares at Dec. 31, 2020 24,877,628 27,828,871   (2,951,243)        
Balance at Mar. 31, 2020 $ 320,573 $ 278 275,975 $ (24,919) (2,362) 1,146 250,118 70,455
Balance, shares at Mar. 31, 2020   27,757,899   (2,951,243)        
Net income (loss) (2,265) $ 0 0 $ 0 (3,977) 0 (3,977) 1,712
Distributions to non-controlling interest (1,512) 0 0 0 0 0 0  
Stock-based compensation expense 520 0 520 0 0 0 520 0
Issuance of restricted stock, net 0 $ 0 0 0 0 0 0 0
Issuance of restricted stock, net, shares   10,416            
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (696)            
Net change in unrealized gains (losses) on investments, net of tax 981 $ 0 0 0 0 981 981 0
Ending balance at Jun. 30, 2020 318,297 $ 278 276,495 $ (24,919) (6,339) 2,127 247,642 70,655
Ending balance, shares at Jun. 30, 2020   27,767,619   (2,951,243)        
Net income (loss) (20,033) $ 0 0 $ 0 (23,630) 0 (23,630) 3,597
Distributions to non-controlling interest (1,512) 0 0 0 0 0 0 (1,512)
Stock-based compensation expense 508 0 508 0 0 0 508 0
Issuance of restricted stock, net 0 0 0 0 0 0 0 0
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (2,273)            
Net change in unrealized gains (losses) on investments, net of tax (53) $ 0 0 0 0 (53) (53) 0
Ending balance at Sep. 30, 2020 297,207 $ 278 277,003 $ (24,919) (29,969) 2,074 224,467 72,740
Ending balance, shares at Sep. 30, 2020   27,765,346   (2,951,243)        
Balance at Dec. 31, 2020 $ 304,561 $ 278 277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Balance, shares at Dec. 31, 2020 24,877,628 27,828,871   (2,951,243)        
Net income (loss) $ 9,071       8,431   8,431 640
Distributions to non-controlling interest (1,511) $ 0 0 $ 0 0 0 0 (1,511)
Stock-based compensation expense 498 2 496 0 0 0 498 0
Issuance of restricted stock, net 0 $ 0 0 0 0 0 0 0
Issuance of restricted stock, net, shares   163,561            
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (7,602)            
Exercise of stock options $ 0 $ 0 0 0 0 0 0 0
Exercise of stock options, shares 768 768            
Net change in unrealized gains (losses) on investments, net of tax $ (605) $ 0 0 0 0 (605) (605)  
Ending balance at Mar. 31, 2021 312,014 $ 280 278,035 $ (24,919) (15,071) 1,407 239,732 72,282
Ending balance, shares at Mar. 31, 2021   27,985,598   (2,951,243)        
Balance at Dec. 31, 2020 $ 304,561 $ 278 277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Balance, shares at Dec. 31, 2020 24,877,628 27,828,871   (2,951,243)        
Net income (loss) $ 37,386              
Net change in unrealized gains (losses) on investments, net of tax (719)              
Ending balance at Sep. 30, 2021 $ 338,612 $ 280 279,454 $ (24,919) 11,136 1,293 267,244 71,368
Ending balance, shares at Sep. 30, 2021 25,082,161 28,033,404   (2,951,243)        
Balance at Mar. 31, 2021 $ 312,014 $ 280 278,035 $ (24,919) (15,071) 1,407 239,732 72,282
Balance, shares at Mar. 31, 2021   27,985,598   (2,951,243)        
Net income (loss) 11,592 $ 0 0 $ 0 10,267 0 10,267 1,325
Distributions to non-controlling interest (1,511) 0 0 0 0 0 0 (1,511)
Stock-based compensation expense 576 0 576 0 0 0 576 0
Issuance of restricted stock, net 0 $ 0 0 0 0 0 0 0
Issuance of restricted stock, net, shares   15,514            
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (10,332)            
Exercise of stock options $ 116 $ 0 116 0 0 0 116 0
Exercise of stock options, shares 22,227 [1] 22,227            
Net change in unrealized gains (losses) on investments, net of tax $ 27 $ 0 0 0 0 27 27 0
Ending balance at Jun. 30, 2021 322,814 $ 280 278,727 $ (24,919) (4,804) 1,434 250,718 72,096
Ending balance, shares at Jun. 30, 2021   28,013,007   (2,951,243)        
Net income (loss) 16,724 $ 0 0 $ 0 15,940 0 15,940 784
Distributions to non-controlling interest (1,512) 0 0 0 0 0 0 (1,512)
Stock-based compensation expense 602 0 602 0 0 0 602 0
Issuance of restricted stock, net 0 0 0 0 0 0 0 0
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (678)            
Exercise of stock options $ 125 $ 0 125 0 0 0 125 0
Exercise of stock options, shares 21,075 [1] 21,075            
Net change in unrealized gains (losses) on investments, net of tax $ (141) $ 0 0 0 0 (141) (141) 0
Ending balance at Sep. 30, 2021 $ 338,612 $ 280 $ 279,454 $ (24,919) $ 11,136 $ 1,293 $ 267,244 $ 71,368
Ending balance, shares at Sep. 30, 2021 25,082,161 28,033,404   (2,951,243)        
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $77,000 and $152,000 for the three and nine months ended September 30, 2021. There was no intrinsic value for the three and nine months ended September 30, 2020.
v3.21.2
Consolidated Statements of Cash Flows - USD ($)
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 37,386,000 $ (35,299,000)
Adjustments to reconcile net income (loss) from operations to net cash provided by operating activities:    
Provision for loan losses 2,000,000 73,231,000
Paid-in-kind interest (682,000) (940,000)
Depreciation and amortization 5,289,000 5,060,000
Increase (decrease) in deferred and other tax liabilities 13,113,000 (11,113,000)
Amortization of origination fees, net 5,770,000 4,572,000
Net change in value of loan collateral in process of foreclosure 8,501,000 21,235,000
Net realized (gains) losses on investments (7,436,000) 3,754,000
Stock-based compensation expense 1,674,000 1,495,000
Gain on extinguishment of debt (4,626,000) (23,000)
Decrease (increase) in accrued interest receivable 692,000 (1,928,000)
Increase in other assets (1,577,000) (7,878,000)
Increase in accounts payable and accrued expenses 3,498,000 4,883,000
Increase (decrease) in accrued interest payable (1,626,000) (504,000)
Net cash provided by operating activities 61,976,000 56,568,000
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (564,914,000) (404,006,000)
Proceeds from principal receipts, sales, and maturities of loans 342,718,000 222,592,000
Purchases of investments (17,979,000) (11,480,000)
Proceeds from principal receipts, sales, and maturities of investments 21,389,000 12,983,000
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 16,661,000 8,303,000
Net cash used for investing activities (202,125,000) (171,608,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 587,945,000 515,982,000
Repayments of time deposits and funds borrowed (470,168,000) (414,501,000)
Distributions to non-controlling interests (4,534,000) (4,531,000)
Proceeds from the exercise of stock options 240,000  
Net cash provided by financing activities 113,483,000 96,950,000
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (26,666,000) (18,090,000)
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] 85,374,000 49,731,000
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 23,418,000 24,769,000
Cash paid during the period for income taxes 3,150,000 100,000
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net 13,145,000 25,569,000
Loans transferred to other foreclosed property $ 0 $ 1,800,000
[1] Includes Federal Funds Sold.
v3.21.2
Organization of Medallion Financial Corp. and its Subsidiaries
 9 Months Ended
Sep. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

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

Medallion Financial Corp., or the Company, is a finance company organized as a Delaware corporation that reports as a bank holding company, but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies. The Bank was formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles (“RVs”), boats and other consumer recreational equipment and to finance home improvements such as replacement windows and roofs . Prior to 2014, the Bank originated commercial loans to finance the purchase of taxi medallions, all of which are serviced by the Company. The loans are financed primarily with time certificates of deposits which are originated nationally through a variety of brokered deposit relationships.

The Company also conducts business through its subsidiaries Medallion Capital, Inc., or MCI, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; Medallion Funding LLC, or MFC, an SBIC, which originates and services medallion and commercial loans; and Freshstart Venture Capital Corp., or FSVC, an SBIC that originated and services medallion and commercial loans. MCI, MFC, 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 NASCAR Cup Series, both of which are consolidated with the Company.

In 2019, the Bank began building a strategic partnership program that targets relationships with financial technology, or fintech, companies. The Bank entered into an initial partnership in 2020 and a second partnership in 2021, and continues to explore opportunities with additional fintech companies.

Taxi Medallion Loan Trust III, or Trust III, was established for the purpose of owning medallion loans originated by MFC or others. Trust III was 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. During the 2021 third quarter, the Company entered into an agreement with the lender to Trust III, whereby, ownership of Trust III was transferred to a third party. For a discussion of the restructuring and disposition, see Note 15. The assets of Trust III were not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party were not available to pay obligations of Trust III. Trust III’s loans were serviced by MFC, until September 30, 2021.

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 September 30, 2021, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

MFC, through several wholly-owned subsidiaries, together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 taxi medallions are carried at a net realizable value of $1,069,875 in other assets on the Company’s consolidated balance sheet at September 30, 2021, compared to a net realizable value of $2,932,000 at December 31, 2020.
v3.21.2
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

the judgments and estimates could change, which may result in future impairments of loans and loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects.

Principles of Consolidation

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

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

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,250,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10,214,000 and $9,746,000 at September 30, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of September 30, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change.

The Company sold 1,166,667 and 500,000 shares of its investment in Upgrade, Inc. during the second and third quarters of 2021 for proceeds of $3,816,000 and $3,000,000, respectively, and a recognized a gain on the sales of $3,179,000 and $2,727,000, during the period. The Company continued to hold 1,000,000 shares of Upgrade, Inc. at a cost of $546,000 as of September 30, 2021.

In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,969,000 as of September 30, 2021 are included in other assets on the consolidated balance sheet.

The table below presents the unrealized portion related to the equity securities held as of September 30, 2021.

(Dollars in thousands)

 

Three Months Ended
September 30, 2021

 

 

Nine Months Ended
September 30, 2021

 

Net losses recognized during the period on equity securities

 

$

—

 

 

$

(31

)

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

 

 

—

 

 

 

—

 

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

 

$

—

 

 

$

(31

)

 

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $301,000 at September 30, 2021 and $278,000 at December 31, 2020, and $40,000 and $121,000 was amortized to interest income for the three and nine months ended September 30, 2021 and $85,000 and $219,000 was amortized to interest income for the three and nine months ended September 30, 2020. 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 September 30, 2021 and December 31, 2020, net loan origination costs were $25,658,000 and $20,684,000. Net amortization to income for the three and nine months ended September 30, 2021 was $2,037,000 and $5,757,000 and $1,681,000 and $4,572,000 for the three and nine months ended September 30, 2020.

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer loan portfolio has different characteristics, typified by a larger number of smaller dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is unlikely the Company will be able 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. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $4,109,000 at September 30, 2021, or 0.29% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in the third quarter 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt recreation loans is to take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the 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 September 30, 2021, there were no consumer or medallion loan modifications related to COVID-19 that would have otherwise been classified as TDRs, and therefore there was no need for the Company to elect this relief under the CARES Act during 2020 and 2021. However, the Company may 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 $0 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at September 30, 2021 and December 31, 2020.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $20,477,000 at September 30, 2021 and $107,131,000 at December 31, 2020. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of September 30, 2021 and December 31, 2020.

Allowance for Loan Losses

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as 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 sub-portfolios during 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 reserved 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 September 30, 2021 and December 31, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,007,000 and $51,090,000. The Company recognized $362,000 and $1,083,000 of amortization expense on the intangible assets for the three and nine months ended September 30, 2021 and $362,000 and $1,084,000 of amortization expense on the intangible assets for the three and nine months ended September 30, 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $685,000 and $2,717,000 were outstanding at September 30, 2021 and December 31, 2020, and of which $150,000 and $2,032,000 was amortized to interest income for the three and nine months ended September 30, 2021 and $893,000 and $1,401,000 was amortized to interest income for the three and nine months ended September 30, 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 September 30, 2021.

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

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Brand-related intellectual property

 

$

18,150

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,692

 

 

 

5,951

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets, net

 

$

50,007

 

 

$

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 $79,000 and $238,000 for the three and nine months ended September 30, 2021 and was $142,000 and $403,000 for the three and nine months ended September 30, 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 $576,000 and $1,814,000 for the three and nine months ended September 30, 2021 and was $648,000 and $1,957,000 for the three and nine months ended September 30, 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 $7,098,000 and $5,805,000 as of September 30, 2021 and December 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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss) resulting from operations
   available to common stockholders

 

$

15,940

 

 

$

(23,630

)

 

$

34,638

 

 

$

(41,250

)

Weighted average common shares
   outstanding applicable to basic EPS

 

 

24,634,845

 

 

 

24,461,488

 

 

 

24,583,573

 

 

 

24,440,067

 

Effect of dilutive stock options

 

 

98,906

 

 

 

—

 

 

 

82,522

 

 

 

—

 

Effect of restricted stock grants

 

 

256,475

 

 

 

—

 

 

 

279,612

 

 

 

—

 

Adjusted weighted average common shares
   outstanding applicable to diluted EPS

 

 

24,990,226

 

 

 

24,461,488

 

 

 

24,945,707

 

 

 

24,440,067

 

Basic income (loss) per share

 

$

0.65

 

 

$

(0.97

)

 

$

1.41

 

 

$

(1.69

)

Diluted income (loss) per share

 

 

0.64

 

 

 

(0.97

)

 

 

1.39

 

 

 

(1.69

)

Potentially dilutive common shares excluded from the above calculations aggregated 26,000 and 834,684 shares as of September 30, 2021 and 2020.

Stock Compensation

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

During the nine months ended September 30, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued 16,803 and 47,156 restricted stock units; and recognized $602,000 and $1,676,000, or $0.02 and $0.07 per share, for the three and nine months ended September 30, 2021, and $508,000 and $1,495,000, or $0.02 and $0.06 per share for the three and nine months ended September 30, 2020, of non-cash stock-based compensation expense related to the grants. As of September 30, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $2,866,000, which is expected to be recognized over the next 14 quarters.

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of September 30, 2021, the Bank’s Tier 1 leverage ratio was 18.21%. 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

 

 

September 30, 2021

 

 

December 31, 2020

 

Common equity Tier 1 capital

 

 

—

 

 

 

—

 

 

$

188,459

 

 

$

148,507

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

257,247

 

 

 

217,295

 

Total capital

 

 

—

 

 

 

—

 

 

 

275,460

 

 

 

233,460

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,412,494

 

 

 

1,283,664

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,422,321

 

 

 

1,243,783

 

Leverage ratio(1)

 

 

4.0

%

 

 

5.0

%

 

 

18.2

%

 

 

16.9

%

Common equity Tier 1 capital ratio(2)

 

 

7.0

 

 

 

6.5

 

 

 

13.3

 

 

 

11.9

 

Tier 1 capital ratio(3)

 

 

8.5

 

 

 

8.0

 

 

 

18.1

 

 

 

17.5

 

Total capital ratio(3)

 

 

10.5

 

 

 

10.0

 

 

 

19.4

 

 

 

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 September 30, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both September 30, 2021 and December 31, 2020.

Recently Issued Accounting Standards

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

In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements, or Topic 205: Depository and Lending, or Topic 942: and Financial Services – Investment Companies, or Topic 946: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This new standard amends certain SEC paragraphs from the Codification in response to the issuance of SEC Final Rule No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses and SEC Rule No.

33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The Company has assessed the impact the update and determined it does not have a material impact on the accompanying financial statements.

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. 
v3.21.2
Investment Securities
 9 Months Ended
Sep. 30, 2021
Schedule Of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

Fixed maturity securities available for sale at September 30, 2021 and December 31, 2020 consisted of the following:

September 30, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of US
   federal agencies

 

$

37,846

 

 

$

918

 

 

$

(275

)

 

$

38,489

 

State and municipalities

 

 

9,027

 

 

 

74

 

 

 

(79

)

 

 

9,022

 

Total

 

$

46,873

 

 

$

992

 

 

$

(354

)

 

$

47,511

 

 

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 September 30, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)

 

Amortized Cost

 

 

Fair Value

 

Due in one year or less

 

$

933

 

 

$

939

 

Due after one year through five years

 

 

9,969

 

 

 

10,266

 

Due after five years through ten years

 

 

10,316

 

 

 

10,659

 

Due after ten years

 

 

25,655

 

 

 

25,647

 

Total

 

$

46,873

 

 

$

47,511

 

The following tables show information pertaining to securities with gross unrealized losses at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

September 30, 2021
(Dollars in thousands)

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of US
   federal agencies

 

$

(275

)

 

$

13,060

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(78

)

 

 

3,989

 

 

 

(1

)

 

 

63

 

Total

 

$

(353

)

 

$

17,049

 

 

$

(1

)

 

$

63

 

 

 

 

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.
v3.21.2
Loans and Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2021
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2021 and December 31, 2020.

 

 

September 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Amount

 

 

As a Percent of
Gross Loans

 

 

Amount

 

 

As a Percent of
Gross Loans

 

Recreation

 

$

933,790

 

 

 

66

%

 

$

792,686

 

 

 

65

%

Home improvement

 

 

398,774

 

 

 

28

 

 

 

334,033

 

 

 

27

 

Commercial

 

 

72,088

 

 

 

5

 

 

 

65,327

 

 

 

5

 

Medallion

 

 

14,934

 

 

 

1

 

 

 

37,768

 

 

 

3

 

Strategic partnership

 

 

95

 

 

 

—

 

 

 

24

 

 

 

—

 

Total gross loans

 

 

1,419,681

 

 

 

100

%

 

 

1,229,838

 

 

 

100

%

Allowance for loan losses

 

 

(47,448

)

 

 

 

 

 

(57,548

)

 

 

 

Total net loans

 

$

1,372,233

 

 

 

 

 

$

1,172,290

 

 

 

 

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2021and 2020.

Three Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – June 30, 2021

 

$

886,206

 

 

$

368,257

 

 

$

69,520

 

 

$

16,514

 

 

$

70

 

 

$

1,340,567

 

Loan originations

 

 

118,407

 

 

 

68,692

 

 

 

5,700

 

 

 

—

 

 

 

2,969

 

 

 

195,768

 

Principal payments, sales, and maturities

 

 

(70,350

)

 

 

(38,571

)

 

 

(3,332

)

 

 

(1,449

)

 

 

(2,944

)

 

 

(116,646

)

Charge-offs, net

 

 

335

 

 

 

239

 

 

 

—

 

 

 

265

 

 

 

—

 

 

 

839

 

Transfer to loan collateral in process
   of foreclosure, net

 

 

(2,085

)

 

 

—

 

 

 

—

 

 

 

(397

)

 

 

—

 

 

 

(2,482

)

Amortization of origination costs

 

 

(2,532

)

 

 

386

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,146

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs

 

 

3,869

 

 

 

(139

)

 

 

12

 

 

 

1

 

 

 

—

 

 

 

3,743

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

188

 

 

 

—

 

 

 

—

 

 

 

188

 

Loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

 

Nine Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

346,724

 

 

 

179,743

 

 

 

20,916

 

 

 

—

 

 

 

7,339

 

 

 

554,722

 

Principal payments, sales and maturities

 

 

(199,449

)

 

 

(115,369

)

 

 

(14,861

)

 

 

(5,663

)

 

 

(7,268

)

 

 

(342,610

)

Charge-offs, net

 

 

(1,334

)

 

 

(237

)

 

 

—

 

 

 

(10,529

)

 

 

—

 

 

 

(12,100

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,118

)

 

 

—

 

 

 

—

 

 

 

(5,027

)

 

 

—

 

 

 

(13,145

)

Amortization of origination costs

 

 

(7,171

)

 

 

1,293

 

 

 

12

 

 

 

(2

)

 

 

—

 

 

 

(5,868

)

Amortization of loan premium

 

 

(161

)

 

 

(256

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,032

)

FASB origination costs

 

 

10,613

 

 

 

(433

)

 

 

12

 

 

 

2

 

 

 

—

 

 

 

10,194

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

682

 

 

 

—

 

 

 

—

 

 

 

682

 

Loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

 

Three Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – June 30, 2020

 

$

786,785

 

 

$

282,072

 

 

$

71,476

 

 

$

120,253

 

 

$

8

 

 

$

1,260,594

 

Loan originations

 

 

73,534

 

 

 

62,515

 

 

 

900

 

 

 

—

 

 

 

142

 

 

 

137,091

 

Principal payments, sales and maturities

 

 

(54,161

)

 

 

(29,312

)

 

 

(1,318

)

 

 

(401

)

 

 

(143

)

 

 

(85,335

)

Charge-offs, net

 

 

(850

)

 

 

(65

)

 

 

3

 

 

 

(15,304

)

 

 

 

 

 

(16,216

)

Transfer to loan collateral in process
   of foreclosure, net

 

 

(2,833

)

 

 

—

 

 

 

—

 

 

 

(10,590

)

 

 

 

 

 

(13,423

)

Amortization of origination costs

 

 

(2,093

)

 

 

509

 

 

 

2

 

 

 

(99

)

 

 

 

 

 

(1,681

)

Amortization of loan premium

 

 

(49

)

 

 

(81

)

 

 

—

 

 

 

(763

)

 

 

 

 

 

(893

)

FASB origination costs

 

 

2,605

 

 

 

(196

)

 

 

—

 

 

 

2

 

 

 

 

 

 

2,411

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

306

 

 

 

—

 

 

 

 

 

 

306

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

 

 

 

(1,800

)

Loans – September 30, 2020

 

$

802,938

 

 

$

315,442

 

 

$

71,369

 

 

$

91,298

 

 

$

7

 

 

$

1,281,054

 

 

Nine Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

—

 

 

$

1,160,855

 

Loan originations

 

 

249,383

 

 

 

140,693

 

 

 

6,075

 

 

 

—

 

 

 

295

 

 

 

396,446

 

Principal payments, sales and maturities

 

 

(140,688

)

 

 

(72,034

)

 

 

(5,422

)

 

 

(4,180

)

 

 

(288

)

 

 

(222,612

)

Charge-offs, net

 

 

(10,796

)

 

 

(897

)

 

 

3

 

 

 

(17,124

)

 

 

—

 

 

 

(28,814

)

Transfer to loan collateral in process
   of foreclosure, net

 

 

(10,615

)

 

 

—

 

 

 

—

 

 

 

(14,934

)

 

 

—

 

 

 

(25,549

)

Amortization of origination costs

 

 

(5,853

)

 

 

1,406

 

 

 

6

 

 

 

(131

)

 

 

—

 

 

 

(4,572

)

Amortization of loan premium

 

 

(152

)

 

 

(248

)

 

 

—

 

 

 

(1,001

)

 

 

—

 

 

 

(1,401

)

FASB origination costs

 

 

8,327

 

 

 

(802

)

 

 

—

 

 

 

36

 

 

 

—

 

 

 

7,561

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

940

 

 

 

—

 

 

 

—

 

 

 

940

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

—

 

 

 

(1,800

)

Loans – September 30, 2020

 

$

802,938

 

 

$

315,442

 

 

$

71,369

 

 

$

91,298

 

 

$

7

 

 

$

1,281,054

 

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2021 and 2020.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Allowance for loan losses – beginning
   balance

 

$

46,946

 

 

$

66,977

 

 

$

57,548

 

 

$

46,093

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(2,313

)

 

 

(3,595

)

 

 

(10,038

)

 

 

(17,546

)

Home improvement

 

 

(523

)

 

 

(643

)

 

 

(1,990

)

 

 

(2,202

)

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

(1,142

)

 

 

(15,448

)

 

 

(15,047

)

 

 

(19,146

)

Total charge-offs

 

 

(3,978

)

 

 

(19,686

)

 

 

(27,075

)

 

 

(38,894

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

2,648

 

 

 

2,745

 

 

 

8,704

 

 

 

6,750

 

Home improvement

 

 

763

 

 

 

578

 

 

 

1,753

 

 

 

1,304

 

Commercial

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

Medallion

 

 

1,406

 

 

 

144

 

 

 

4,518

 

 

 

2,023

 

Total recoveries

 

 

4,817

 

 

 

3,470

 

 

 

14,975

 

 

 

10,080

 

Net charge-offs(1)

 

 

839

 

 

 

(16,216

)

 

 

(12,100

)

 

 

(28,814

)

Provision (benefit) for loan losses

 

 

(337

)

 

 

39,749

 

 

 

2,000

 

 

 

73,231

 

Allowance for loan losses – ending balance(2)

 

$

47,448

 

 

$

90,510

 

 

$

47,448

 

 

$

90,510

 
(1)
As of September 30, 2021 and September 30, 2020, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $301,963 and $268,745, some of which may represent collection opportunities for the Company.
(2)
As of September 30, 2021 and September 30, 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 September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Amount

 

 

Percentage of
Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

31,556

 

 

 

66

%

 

 

3.38

%

 

 

87.88

%

Home improvement

 

 

6,496

 

 

 

14

 

 

 

1.63

 

 

 

18.09

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

9,396

 

 

 

20

 

 

 

62.92

 

 

 

26.17

 

Total

 

$

47,448

 

 

 

100

%

 

 

3.34

%

 

 

132.13

%

 

December 31, 2020
(Dollars in thousands)

 

Amount

 

 

Percentage of
Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

27,348

 

 

 

48

%

 

 

3.45

%

 

 

378.20

%

Home improvement

 

 

5,157

 

 

 

9

 

 

 

1.54

 

 

 NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,043

 

 

 

43

 

 

 

66.31

 

 

 

68.01

 

Total

 

$

57,548

 

 

 

100

%

 

 

4.68

%

 

 

93.17

%

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

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Total nonaccrual loans

 

$

35,910

 

 

$

61,767

 

Interest foregone quarter to date

 

 

377

 

 

 

2,306

 

Amount of foregone interest applied to principal in the quarter

 

 

115

 

 

 

595

 

Interest foregone year to date

 

 

1,187

 

 

 

3,311

 

Amount of foregone interest applied to principal year to date

 

 

358

 

 

 

602

 

Interest foregone life to date

 

 

3,274

 

 

 

5,252

 

Amount of foregone interest applied to principal life to date

 

 

886

 

 

 

792

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

3

%

 

 

5

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

132

%

 

 

93

%

 

The following tables present the performance status of loans as of September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

928,769

 

 

$

5,021

 

 

$

933,790

 

 

 

0.54

%

Home improvement

 

 

398,613

 

 

 

161

 

 

 

398,774

 

 

 

0.04

 

Commercial

 

 

55,703

 

 

 

16,385

 

 

 

72,088

 

 

 

22.73

 

Medallion

 

 

—

 

 

 

14,934

 

 

 

14,934

 

 

 

100.00

 

Strategic partnership

 

 

95

 

 

 

—

 

 

 

95

 

 

 

—

 

Total

 

$

1,383,180

 

 

$

36,501

 

 

$

1,419,681

 

 

 

2.57

%

 

December 31, 2020
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

785,047

 

 

$

7,639

 

 

$

792,686

 

 

 

0.96

%

Home improvement

 

 

333,862

 

 

 

171

 

 

 

334,033

 

 

 

0.05

 

Commercial

 

 

48,731

 

 

 

16,596

 

 

 

65,327

 

 

 

25.40

 

Medallion

 

 

—

 

 

 

37,768

 

(1)

 

37,768

 

 

 

100.00

 

Strategic partnership

 

 

24

 

 

 

—

 

 

 

24

 

 

 

—

 

Total

 

$

1,167,664

 

 

$

62,174

 

 

$

1,229,838

 

 

 

5.06

%
(1)
Includes medallion loan premiums of $1,615 at December 31, 2020.

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

The following tables provide additional information on attributes of the nonperforming loan portfolio as of September 30, 2021 and December 31, 2020, all of which had an allowance recorded against the principal balance.

 

 

September 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,021

 

 

$

5,021

 

 

$

170

 

 

$

7,639

 

 

$

7,639

 

 

$

264

 

Home improvement

 

 

161

 

 

 

161

 

 

 

3

 

 

 

171

 

 

 

171

 

 

 

3

 

Commercial

 

 

16,385

 

 

 

16,400

 

 

 

—

 

 

 

16,596

 

 

 

16,600

 

 

 

—

 

Medallion

 

 

14,934

 

 

 

15,805

 

 

 

9,396

 

 

 

37,768

 

 

 

38,368

 

 

 

25,043

 

Total nonperforming loans
  with an allowance

 

$

36,501

 

 

$

37,387

 

 

$

9,569

 

 

$

62,174

 

 

$

62,778

 

 

$

25,310

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

4,423

 

 

$

148

 

 

$

6,730

 

 

$

167

 

 

$

4,641

 

 

$

425

 

 

$

6,882

 

 

$

428

 

Home improvement

 

 

161

 

 

 

—

 

 

 

103

 

 

 

—

 

 

 

151

 

 

 

—

 

 

 

103

 

 

 

2

 

Commercial

 

 

16,531

 

 

 

—

 

 

 

16,894

 

 

 

—

 

 

 

16,926

 

 

 

—

 

 

 

17,002

 

 

 

47

 

Medallion

 

 

16,941

 

 

 

—

 

 

 

90,032

 

 

 

121

 

 

 

17,101

 

 

 

—

 

 

 

90,396

 

 

 

992

 

Total nonperforming loans
   with an allowance

 

$

38,056

 

 

$

148

 

 

$

113,759

 

 

$

288

 

 

$

38,819

 

 

$

425

 

 

$

114,383

 

 

$

1,469

 

The following tables show the aging of all loans as of September 30, 2021 and December 31, 2020.

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

September 30, 2021
(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Recorded
Investment
90 Days and
Accruing

 

Recreation

 

$

16,603

 

 

$

5,525

 

 

$

3,065

 

 

$

25,193

 

 

$

880,004

 

 

$

905,197

 

 

$

—

 

Home improvement

 

 

794

 

 

 

355

 

 

 

160

 

 

 

1,309

 

 

 

399,712

 

 

 

401,021

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

72,014

 

 

 

72,088

 

 

 

—

 

Medallion

 

 

321

 

 

 

678

 

 

 

810

 

 

 

1,809

 

 

 

13,126

 

 

 

14,935

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

95

 

 

 

95

 

 

 

—

 

Total

 

$

17,718

 

 

$

6,558

 

 

$

4,109

 

 

$

28,385

 

 

$

1,364,951

 

 

$

1,393,336

 

 

$

—

 
(1)
Excludes loan premiums of $685 resulting from purchase price accounting and $25,658 of capitalized loan origination costs.

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

December 31, 2020
(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Recorded
Investment
90 Days and
Accruing

 

Recreation

 

$

22,058

 

 

$

7,582

 

 

$

5,343

 

 

$

34,983

 

 

$

732,391

 

 

$

767,374

 

 

$

—

 

Home improvement

 

 

813

 

 

 

218

 

 

 

170

 

 

 

1,201

 

 

 

335,684

 

 

 

336,885

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

75

 

 

 

75

 

 

 

65,265

 

 

 

65,340

 

 

 

—

 

Medallion

 

 

2,019

 

 

 

973

 

 

 

1,290

 

 

 

4,282

 

 

 

31,871

 

 

 

36,153

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

 

 

24

 

 

 

—

 

Total

 

$

24,890

 

 

$

8,773

 

 

$

6,878

 

 

$

40,541

 

 

$

1,165,235

 

 

$

1,205,776

 

 

$

—

 
(1)
Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 287% and 327% as of September 30, 2021 and December 31, 2020.

The following table shows the TDRs which the Company entered into during the three and nine months ended September 30, 2021.

(Dollars in thousands)

 

Number of
Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2021

 

 

 

 

 

 

 

 

 

     Recreation

 

 

8

 

 

$

94

 

 

$

55

 

     Medallion

 

 

1

 

 

 

77

 

 

 

77

 

Nine months ended September 30, 2021

 

 

 

 

 

 

 

 

 

     Recreation

 

 

47

 

 

$

568

 

 

$

525

 

     Medallion

 

 

11

 

 

 

3,071

 

 

 

3,071

 

During the twelve months ended September 30, 2021, 12 medallion loans modified as TDRs were in default and had an investment value of $1,694,000 as of September 30, 2021, net of a $130,000 allowance for loan losses, 37 recreation loans modified as TDRs were in default and had an investment value of $389,000 as of September 30, 2021, net of a $13,0000 allowance for loan losses, and no commercial loans modified as TDRs were in default.

The following table shows the TDRs which the Company entered into during the three and nine months ended September 30, 2020.

(Dollars in thousands)

 

Number of
Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2020

 

 

 

 

 

 

 

 

 

     Recreation

 

 

18

 

 

$

254

 

 

$

229

 

     Medallion

 

 

3

 

 

 

448

 

 

 

448

 

Nine months ended September 30, 2020

 

 

 

 

 

 

 

 

 

     Recreation

 

 

57

 

 

$

722

 

 

$

510

 

     Medallion

 

 

33

 

 

 

14,089

 

 

 

14,089

 

During the twelve months ended September 30, 2020, 69 medallion loans modified as TDRs were in default and had an investment value of $29,296,000 as of September 30, 2020, net of a $20,420,000 allowance for loan losses, and 56 recreation loans modified as TDRs were in default and had an investment value of $558,000 as of September 30, 2021, net of a $19,000 allowance for loan losses.

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2021 and 2020.

Three Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion (1)

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2021

 

$

882

 

 

$

48,157

 

 

$

49,039

 

Transfer from loans, net

 

 

2,085

 

 

 

397

 

 

 

2,482

 

Sales

 

 

(1,554

)

 

 

(1,640

)

 

 

(3,194

)

Cash payments received

 

 

—

 

 

 

(4,525

)

 

 

(4,525

)

Collateral valuation adjustments

 

 

(640

)

 

 

(618

)

 

 

(1,258

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 
(1)
As of September 30, 2021, medallion loans in the process of foreclosure included 565 medallions in the New York market, 66 medallions in the Newark market, 339 medallions in the Chicago market and 48 in various other markets.

 

Nine Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion (1)

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

Transfer from loans, net

 

 

8,118

 

 

 

5,027

 

 

 

13,145

 

Sales

 

 

(5,842

)

 

 

(1,871

)

 

 

(7,713

)

Cash payments received

 

 

—

 

 

 

(8,948

)

 

 

(8,948

)

Collateral valuation adjustments

 

 

(2,935

)

 

 

(5,565

)

 

 

(8,500

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 
(1)
As of September 30, 2021, medallion loans in the process of foreclosure included 565 medallions in the New York market, 66 medallions in the Newark market, 339 medallions in the Chicago market and 48 in various other markets.

 

Three Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2020

 

$

1,258

 

 

$

46,117

 

 

$

47,375

 

Transfer from loans, net

 

 

2,833

 

 

 

10,611

 

 

 

13,444

 

Sales

 

 

(1,697

)

 

 

—

 

 

 

(1,697

)

Cash payments received

 

 

—

 

 

 

(426

)

 

 

(426

)

Collateral valuation adjustments

 

 

(1,395

)

 

 

(8,559

)

 

 

(9,954

)

Loan collateral in process of foreclosure – September 30, 2020

 

$

999

 

 

$

47,743

 

 

$

48,742

 

 

Nine Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

Transfer from loans, net

 

 

10,615

 

 

 

14,954

 

 

 

25,569

 

Sales

 

 

(5,684

)

 

 

(300

)

 

 

(5,984

)

Cash payments received

 

 

—

 

 

 

(2,318

)

 

 

(2,318

)

Collateral valuation adjustments

 

 

(5,408

)

 

 

(15,828

)

 

 

(21,236

)

Loan collateral in process of foreclosure – September 30, 2020

 

$

999

 

 

$

47,743

 

 

$

48,742

 
v3.21.2
Funds Borrowed
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows:

 

 

Payments Due for the Twelve Months Ending September 30,

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

September 30,
2021(1)

 

 

December 31, 2020(1)

 

 

Interest
Rate (2)

 

Deposits(3)

 

$

443,666

 

 

$

212,403

 

 

$

266,598

 

 

$

117,798

 

 

$

158,340

 

 

$

—

 

 

$

1,198,805

 

 

$

1,067,822

 

 

 

1.26

%

Retail and privately
   placed notes

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

53,750

 

 

 

121,000

 

 

 

103,225

 

 

 

7.66

%

SBA debentures
   and borrowings

 

 

—

 

 

 

5,000

 

 

 

14,909

 

 

 

14,000

 

 

 

14,000

 

 

 

16,000

 

 

 

63,909

 

 

 

68,008

 

 

 

2.92

%

Preferred
   securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.24

%

Notes payable to
   banks

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,261

 

 

 

—

%

Other
   borrowings

 

 

8,054

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,054

 

 

 

8,689

 

 

 

2.00

%

Total

 

$

451,720

 

 

$

217,403

 

 

$

317,507

 

 

$

131,798

 

 

$

203,590

 

 

$

102,750

 

 

$

1,424,768

 

 

$

1,312,005

 

 

 

1.90

%
(1)
Excludes deferred financing costs of $7,098 and $5,805 as of September 30, 2021 and December 31, 2020.
(2)
Weighted average contractual rate as of September 30, 2021.
(3)
Balance excludes $750 and $250 of strategic partner reserve deposits as of September 30, 2021 and December 31, 2020.

(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. The rates paid on the deposits are competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. The Bank did not have any individual time deposits greater than $100,000 as of September 30, 2021. In October 2020, the Bank began to originate time deposits through an internet listing service. These listing service deposits are from other financial institutions, and as of September 30, 2021, totaled $8,738,000. The following table presents the maturity of the broker pools, which excludes strategic partner reserve deposits, as of September 30, 2021.

(Dollars in thousands)

 

September 30, 2021

 

Three months or less

 

$

157,023

 

Over three months through six months

 

 

89,027

 

Over six months through one year

 

 

197,616

 

Over one year

 

 

755,139

 

Total deposits

 

$

1,198,805

 

 

(B) RETAIL AND PRIVATELY PLACED NOTES

In February 2021, the Company completed a private placement to certain institutional investors of $25,000,000 aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3,250,000 principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $3,000,000 principal amount of such notes was issued to certain institutional investors. The Company has used 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. Subsequently in April 2021, an additional $11,650,000 principal amount of such notes was issued to certain institutional investors. The Company has used 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. These notes were repaid at maturity on April 15, 2021.

(C) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year 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% and all remaining unpaid principal and interest are due on April 30, 2024, the maturity date. As of September 30, 2021, $183,985,000 of commitments had been fully utilized, there were $16,500,000 commitments available, and $63,909,000 was outstanding, including $9,909,000 under the SBA Note.

On July 31, 2020, MCI accepted a commitment from the SBA for $25,000,000 in debenture financing. As part of the acceptance, MCI paid the SBA a $250,000 commitment fee. The commitment expires September 24, 2024. $8,500,000 of the commitments has been drawn as of September 30, 2021 to replace debentures which matured in 2021. The remaining balance of $16,500,000 is drawable, $9,500,000 of which upon the infusion of $4,750,000 of capital from either the capitalization of retained earnings or capital infusion from the Company.

(D) PREFERRED SECURITIES

In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (0.13% at September 30, 2021) 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 September 30, 2021, $33,000,000 was outstanding on the preferred securities.

(E) NOTES PAYABLE TO BANKS

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

In the 2021 second quarter, the Company used some of the proceeds of the privately placed notes to pay off twenty five of its notes payable to banks aggregating $17,762,000 principal amount, resulting in a gain on debt extinguishment of $2,859,000.

In March 2021, the Company used some of the proceeds of the privately placed notes to pay off two of its notes payable to banks aggregating $5,207,000 principal amount, one with a maturity of April 15, 2021 and one with a maturity of September 1, 2021, resulting in a gain on debt extinguishment of $1,767,000.

In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. The note required a regular quarterly payment of $70,000 of principal and accrued interest and had a maturity date of December 2023. The entire outstanding balance was settled during the quarter ended September 30, 2021. See Note 15 for more information.

(F) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty. At September 30, 2021, the total outstanding on these notes was $7,554,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2022. Additionally, RPAC has a short term promissory note to an unrelated party for $500,000 due on December 31, 2021.

On June 17, 2020, RPAC was approved for and received a Paycheck Protection Program, or PPP, loan under the CARES Act, in the amount of $747,000 at a 1.00% annual interest rate due in five years. In accordance with its terms, the note was forgiven during the second quarter 2021, as the loan proceeds were used in accordance with the requirements set forth in the PPP.

(G) COVENANT COMPLIANCE

From time to time the Company may enter into debt agreements which may contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including minimum net worth. As of September 30, 2021 the Company did not have any borrowing agreements that contained any such restrictions.
v3.21.2
Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases

(6) LEASES

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

The following table presents the operating lease costs and additional information for the three and nine months ended September 30, 2021 and 2020.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating lease costs

 

$

571

 

 

$

596

 

 

$

1,715

 

 

$

1,788

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

481

 

 

 

632

 

 

 

1,780

 

 

 

1,994

 

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

 

 

(41

)

 

 

(14

)

 

 

(76

)

 

 

(42

)

The following table presents the breakout of the operating leases as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Operating lease right-of-use assets

 

$

10,277

 

 

$

11,737

 

Other current liabilities

 

 

2,140

 

 

 

2,004

 

Operating lease liabilities

 

 

9,346

 

 

 

11,018

 

Total operating lease liabilities

 

 

11,486

 

 

 

13,022

 

Weighted average remaining lease term

 

5.7 years

 

 

6.4 years

 

Weighted average discount rate

 

 

5.55

%

 

 

5.54

%

At September 30, 2021, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2021

 

$

612

 

2022

 

 

2,411

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

Thereafter

 

 

3,521

 

Total lease payments

 

$

13,663

 

Less imputed interest

 

 

2,177

 

Total operating lease liabilities

 

$

11,486

 
v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

(7) INCOME TAXES

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

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Goodwill and other intangibles

 

$

(44,022

)

 

$

(44,799

)

Provision for loan losses

 

 

12,550

 

 

 

19,556

 

Net operating loss carryforwards(1)

 

 

18,745

 

 

 

30,493

 

Accrued expenses, compensation, and other assets

 

 

2,309

 

 

 

1,174

 

Unrealized gains on other investments

 

 

10

 

 

 

(6,769

)

Total deferred tax liability

 

 

(10,408

)

 

 

(345

)

Valuation allowance(2)

 

 

(2,295

)

 

 

(462

)

Deferred tax liability, net

 

$

(12,703

)

 

$

(807

)
(1)
As of September 30, 2021, the Company and its subsidiaries had an estimated $77,838 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $16,450 as of September 30, 2021.
(2)
During the nine months ended September 30, 2021, it was determined that the likelihood of utilization of certain net operating losses was remote and a valuation allowance of $1,833 was assessed against these assets.

The components of our tax (provision) benefit for the three and nine months ended September 30, 2021 and 2020 was as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(1,359

)

 

$

—

 

 

$

(2,154

)

 

$

—

 

State

 

 

(721

)

 

 

(83

)

 

 

(991

)

 

 

(306

)

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(3,198

)

 

 

5,940

 

 

 

(9,252

)

 

 

9,239

 

State

 

 

(889

)

 

 

2,524

 

 

 

(4,176

)

 

 

3,550

 

Net (provision) benefit for income taxes

 

$

(6,167

)

 

$

8,381

 

 

$

(16,573

)

 

$

12,483

 

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit for the three and nine months ended September 30, 2021 and 2020.

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Statutory Federal income tax (provision) benefit at 21%

 

$

(4,807

)

 

$

5,967

 

 

$

(11,331

)

 

$

10,034

 

State and local income taxes, net of federal income tax benefit

 

 

(942

)

 

 

1,201

 

 

 

(2,217

)

 

 

1,961

 

Valuation allowance against net operating losses

 

 

—

 

 

 

—

 

 

 

(1,833

)

 

 

—

 

Change in effective state income tax rates and accrual

 

 

(110

)

 

 

(939

)

 

 

(1,479

)

 

 

(790

)

Income attributable to non-controlling interest

 

 

183

 

 

 

522

 

 

 

449

 

 

 

356

 

Non deductible expenses

 

 

(132

)

 

 

(211

)

 

 

81

 

 

 

(1,000

)

Other

 

 

(359

)

 

 

1,841

 

 

 

(243

)

 

 

1,922

 

Total income tax (provision) benefit

 

$

(6,167

)

 

$

8,381

 

 

$

(16,573

)

 

$

12,483

 

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 September 30, 2021.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2018 through the present are the more significant filings that are open for examination.
v3.21.2
Stock Options and Restricted Stock
 9 Months Ended
Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Options and Restricted Stock

(8) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. A total of 2,210,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 438,132 remained issuable as of September 30, 2021. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, or the 2015 Restricted Stock Plan, on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provided for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock were issuable under the 2015 Restricted Stock Plan, and 241,919 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever occurs first.

The Company had a stock option plan, 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 September 30, 2021, 1,186,586 options on the Company’s common stock were outstanding under the Company’s plans, of which 326,116 options were exercisable. Additionally, there were 860,470 unvested shares under the Company’s restricted common stock plan, and 16,803 unvested restricted stock units, and 47,472 vested restricted stock units under the Company’s restricted stock plans.

The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $3.24 per share and $3.30 per share for the nine months ended September 30, 2021. The following assumption categories are used to determine the value of any option grants.

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Risk free interest rate

 

 

0.97

%

 

 

1.46

%

Expected dividend yield

 

 

—

 

 

 

—

 

Expected life of option in years(1)

 

 

6.25

 

 

 

6.25

 

Expected volatility(2)

 

 

53.98

 

 

 

50.18

 
(1)
Expected life is calculated using the simplified method.
(2)
We determine our expected volatility based on our historical volatility.

The following table presents the activity for the stock option programs for the 2021 first, second, and third quarters and the 2020 full year.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2019

 

 

550,040

 

 

$

2.14-13.53

 

 

$

6.58

 

Granted

 

 

444,557

 

 

 

4.89-6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

 

2.22-13.53

 

 

 

6.91

 

Exercised(1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020

 

 

951,669

 

 

 

2.14-12.55

 

 

 

6.41

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(3,984

)

 

 

6.55-7.25

 

 

 

6.89

 

Exercised(1)

 

 

(768

)

 

 

6.55-7.25

 

 

 

6.79

 

Outstanding at March 31, 2021

 

 

1,264,315

 

 

 

2.14-12.55

 

 

 

6.50

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(32,446

)

 

 

4.89-7.25

 

 

 

5.98

 

Exercised(1)

 

 

(22,227

)

 

 

5.27-7.25

 

 

 

5.76

 

Outstanding at June 30, 2021

 

 

1,209,642

 

 

 

2.14-12.55

 

 

 

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(1,981

)

 

 

4.89 - 7.25

 

 

 

5.85

 

Exercised(1)

 

 

(21,075

)

 

 

5.21 - 7.25

 

 

 

5.34

 

Outstanding at September 30, 2021

 

 

1,186,586

 

 

 

2.14-12.55

 

 

 

6.55

 

Options exercisable at September 30, 2021(2)

 

 

326,116

 

 

 

2.14 - 12.55

 

 

$

6.61

 
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $77,000 and $152,000 for the three and nine months ended September 30, 2021. There was no intrinsic value for the three and nine months ended September 30, 2020.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2021 and the related exercise price of the underlying options, was $1,590,000 for outstanding options and $463,000 for exercisable options as of September 30, 2021. The remaining contractual life was 8.27 years for outstanding options and 7.21 years for exercisable options at September 30, 2021.

The following table presents the activity for the restricted stock programs for the 2021 first, second, and third quarters and the 2020 full year.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2019

 

 

284,879

 

 

$

3.95-7.25

 

 

$

6.01

 

Granted

 

 

229,408

 

 

 

4.89-6.68

 

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

 

3.95-7.25

 

 

 

6.93

 

Vested(1)

 

 

(89,392

)

 

 

3.95-6.55

 

 

 

5.37

 

Outstanding at December 31, 2020

 

 

416,140

 

 

 

4.39-7.25

 

 

 

6.24

 

Granted

 

 

163,561

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(7,602

)

 

 

4.89-7.25

 

 

 

5.96

 

Vested(1)

 

 

(119,577

)

 

 

4.39-7.25

 

 

 

6.09

 

Outstanding at March 31, 2021

 

 

452,522

 

 

 

4.80-7.25

 

 

 

6.48

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(10,332

)

 

 

4.89-7.25

 

 

 

6.13

 

Vested(1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2021

 

 

442,190

 

 

 

4.80-7.25

 

 

 

6.49

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(687

)

 

 

4.89 - 7.25

 

 

 

5.40

 

Vested(1)

 

 

(5,208

)

 

 

 

4.80

 

 

 

4.80

 

Outstanding at September 30, 2021(2)

 

 

436,295

 

 

$

4.89 - 7.25

 

 

$

6.51

 
(1)
The aggregate fair value of the restricted stock vested was $45,000 and $858,000 for the three and nine months ended September 30, 2021 and was $25,000 and 579,000 for the three and nine months ended September 30, 2020.
(2)
The aggregate fair value of the restricted stock was $3,421,000 as of September 30, 2021. The remaining vesting period was 3.43 years at September 30, 2021.

During the nine months ended September 30, 2021, the Company granted 16,803 restricted stock units, or RSUs, that vest on June 17, 2022 with a grant price of $8.87, and during the year ended December 31, 2020, granted 47,156 RSUs that vested on June 19, 2021 with a grant price of $3.16. For the RSUs granted in 2021 and 2020, unitholders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A, which was done for 47,272 units.

The following table presents the activity for the unvested options outstanding under the plans for the 2021 first, second, and third quarters.

 

 

Number of
Options

 

 

 

Exercise
Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2020

 

 

773,362

 

 

$

4.89-7.25

 

 

$

6.42

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(2,530

)

 

 

6.55-7.25

 

 

 

6.96

 

Vested

 

 

(185,278

)

 

 

6.55-7.25

 

 

 

6.67

 

Outstanding at March 31, 2021

 

 

902,952

 

 

 

4.89-7.25

 

 

 

6.50

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(33,134

)

 

 

4.89-7.25

 

 

 

5.99

 

Vested

 

 

(8,000

)

 

 

 

5.58

 

 

 

5.58

 

Outstanding at June 30, 2021

 

 

861,818

 

 

$

4.89-7.25

 

 

 

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(1,348

)

 

 

4.89 - 7.25

 

 

 

5.40

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2021

 

 

860,470

 

 

$

4.89 - 7.25

 

 

$

6.53

 
The intrinsic value of the options vested was $0 and $77,000 for the three and nine months ended September 30, 2021.
v3.21.2
Segment Reporting
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

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

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are operated by the Bank and include loans in all fifty states, with the highest concentrations in Texas, Florida, and California at 15%, 10%, and 8% of loans outstanding and with no other states over 5% as of September 30, 2021. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 60%, 20%, and 9% of the segment portfolio as of September 30, 2021. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in roofs, swimming pools, and windows at 28%, 26%, and 13% of total home improvement loans outstanding, and with no other product lines over 10% as of September 30, 2021. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 62% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, of which 85% were in New York City as of September 30, 2021.

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

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

The following tables present segment data as of and for the three and nine months ended September 30, 2021 and 2020.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

30,529

 

 

$

8,586

 

 

$

2,055

 

 

$

1

 

 

$

—

 

 

$

326

 

 

$

41,497

 

Total interest expense

 

 

2,305

 

 

 

958

 

 

 

662

 

 

 

2,009

 

 

 

38

 

 

 

1,454

 

 

 

7,426

 

Net interest income (loss)

 

 

28,224

 

 

 

7,628

 

 

 

1,393

 

 

 

(2,008

)

 

 

(38

)

 

 

(1,128

)

 

 

34,071

 

Provision for loan losses

 

 

916

 

 

 

369

 

 

 

—

 

 

 

(1,944

)

 

 

—

 

 

 

322

 

 

 

(337

)

Net interest income (loss)
   after loss provision

 

 

27,308

 

 

 

7,259

 

 

 

1,393

 

 

 

(64

)

 

 

(38

)

 

 

(1,450

)

 

 

34,408

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,335

 

 

 

—

 

 

 

3,335

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,424

)

 

 

—

 

 

 

(2,424

)

Other income (expense), net

 

 

(8,856

)

 

 

(3,437

)

 

 

636

 

 

 

2,073

 

 

 

(2,066

)

 

 

(778

)

 

 

(12,428

)

Net income (loss) before taxes

 

 

18,452

 

 

 

3,822

 

 

 

2,029

 

 

 

2,009

 

 

 

(1,193

)

 

 

(2,228

)

 

 

22,891

 

Income tax (provision) benefit

 

 

(4,752

)

 

 

(951

)

 

 

(510

)

 

 

(504

)

 

 

299

 

 

 

251

 

 

 

(6,167

)

Net income (loss)

 

$

13,700

 

 

$

2,871

 

 

$

1,519

 

 

$

1,505

 

 

$

(894

)

 

$

(1,977

)

 

$

16,724

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.09

%

 

 

2.89

%

 

 

6.60

%

 

 

6.12

%

 

 

(11.28

%)

 

 

(2.65

%)

 

 

3.73

%

Return on average equity

 

 

30.46

 

 

 

14.43

 

 

 

32.99

 

 

 

30.62

 

 

 

(11.08

)

 

 

(19.79

)

 

 

19.81

 

Interest yield

 

 

13.78

 

 

 

9.04

 

 

 

12.04

 

 

 

0.09

 

 

 N/A

 

 

 N/A

 

 

 

11.55

 

Net interest margin

 

 

12.74

 

 

 

8.03

 

 

 

8.16

 

 

 

(139.64

)

 

 N/A

 

 

 N/A

 

 

 

9.48

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

49.98

 

 

 N/A

 

 

 N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

5.42

 

 

 N/A

 

 

 N/A

 

 

 

0.29

 

Charge-off ratio(4)

 

 

(0.15

)

 

 

(0.25

)

 

 

—

 

(3)

 

(43.01

)

 

 N/A

 

 

 N/A

 

 

 

(0.38

)
(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.
(4)
Negative balances indicate recoveries for the period.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended
September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

86,857

 

 

$

24,732

 

 

$

4,920

 

 

$

(1,543

)

 

$

—

 

 

$

987

 

 

$

115,953

 

Total interest expense

 

 

7,962

 

 

 

3,309

 

 

 

1,950

 

 

 

5,903

 

 

 

113

 

 

 

4,481

 

 

 

23,718

 

Net interest income (loss)

 

 

78,895

 

 

 

21,423

 

 

 

2,970

 

 

 

(7,446

)

 

 

(113

)

 

 

(3,494

)

 

 

92,235

 

Provision for loan losses

 

 

5,546

 

 

 

1,575

 

 

 

—

 

 

 

(5,931

)

 

 

—

 

 

 

810

 

 

 

2,000

 

Net interest income (loss)
   after loss provision

 

 

73,349

 

 

 

19,848

 

 

 

2,970

 

 

 

(1,515

)

 

 

(113

)

 

 

(4,304

)

 

 

90,235

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,153

 

 

 

—

 

 

 

10,153

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,219

)

 

 

—

 

 

 

(7,219

)

Other income (expense), net

 

 

(21,774

)

 

 

(7,989

)

 

 

107

 

 

 

(1,228

)

 

 

(5,689

)

 

 

(2,637

)

 

 

(39,210

)

Net income (loss) before taxes

 

 

51,575

 

 

 

11,859

 

 

 

3,077

 

 

 

(2,743

)

 

 

(2,868

)

 

 

(6,941

)

 

 

53,959

 

Income tax (provision) benefit

 

 

(13,281

)

 

 

(3,054

)

 

 

(773

)

 

 

689

 

 

 

720

 

 

 

(874

)

 

 

(16,573

)

Net income (loss)

 

$

38,294

 

 

$

8,805

 

 

$

2,304

 

 

$

(2,054

)

 

$

(2,148

)

 

$

(7,815

)

 

$

37,386

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.08

%

 

 

3.20

%

 

 

3.68

%

 

 

(2.52

%)

 

 

(8.89

%)

 

 

(3.68

%)

 

 

2.73

%

Return on average equity

 

 

30.39

 

 

 

16.02

 

 

 

18.38

 

 

 

(12.60

)

 

 

(386.73

)

 

 

(27.18

)

 

 

14.47

 

Interest yield

 

 

14.05

 

 

 

9.37

 

 

 

10.56

 

 

 

(23.55

)

 

 N/A

 

 

 N/A

 

 

 

11.56

 

Net interest margin

 

 

12.76

 

 

 

8.11

 

 

 

6.37

 

 

 

(113.66

)

 

 N/A

 

 

 N/A

 

 

 

9.19

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

49.98

 

 

 N/A

 

 

 N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

5.42

 

 

 N/A

 

 

 N/A

 

 

 

0.29

 

Charge-off ratio(4)

 

 

0.22

 

 

 

0.09

 

 

 

—

 

(3)

 

143.94

 

 

 N/A

 

 

 N/A

 

 

 

1.17

 
(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.
(4)
Negative balances indicate recoveries for the period.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

28,962

 

 

$

7,218

 

 

$

1,791

 

 

$

(909

)

 

$

—

 

 

$

378

 

 

$

37,440

 

Total interest expense

 

 

3,476

 

 

 

1,655

 

 

 

663

 

 

 

(56

)

 

 

42

 

 

 

2,604

 

 

 

8,384

 

Net interest income (loss)

 

 

25,486

 

 

 

5,563

 

 

 

1,128

 

 

 

(853

)

 

 

(42

)

 

 

(2,226

)

 

 

29,056

 

Provision for loan losses

 

 

1,812

 

 

 

745

 

 

 

—

 

 

 

37,196

 

 

 

—

 

 

 

(4

)

 

 

39,749

 

Net interest income (loss) after loss
   provision

 

 

23,674

 

 

 

4,818

 

 

 

1,128

 

 

 

(38,049

)

 

 

(42

)

 

 

(2,222

)

 

 

(10,693

)

Sponsorship and race winning

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,962

 

 

 

—

 

 

 

8,962

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,636

)

 

 

—

 

 

 

(2,636

)

Other income (expense), net

 

 

(7,246

)

 

 

(2,700

)

 

 

(712

)

 

 

(9,738

)

 

 

(2,503

)

 

 

(1,148

)

 

 

(24,047

)

Net income (loss) before taxes

 

 

16,428

 

 

 

2,118

 

 

 

416

 

 

 

(47,787

)

 

 

3,781

 

 

 

(3,370

)

 

 

(28,414

)

Income tax (provision) benefit

 

 

(4,201

)

 

 

(541

)

 

 

(104

)

 

 

11,908

 

 

 

(942

)

 

 

2,261

 

 

 

8,381

 

Net income (loss)

 

$

12,227

 

 

$

1,577

 

 

$

312

 

 

$

(35,879

)

 

$

2,839

 

 

$

(1,109

)

 

$

(20,033

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

774,956

 

 

$

310,691

 

 

$

68,042

 

 

$

33,521

 

 

$

—

 

 

$

3,334

 

 

$

1,190,544

 

Total assets

 

 

788,459

 

 

 

321,084

 

 

 

80,247

 

 

 

142,450

 

 

 

40,112

 

 

 

231,923

 

 

 

1,604,275

 

Total funds borrowed

 

 

628,528

 

 

 

255,778

 

 

 

65,906

 

 

 

113,009

 

 

 

8,652

 

 

 

199,312

 

 

 

1,271,185

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.22

%

 

 

2.06

%

 

 

1.49

%

 

 

(85.70

%)

 

 

31.97

%

 

 

(8.78

%)

 

 

(5.69

%)

Return on average equity

 

 

31.11

 

 

 

10.29

 

 

 

6.82

 

 

 NM

 

 

 NM

 

 

 

(54.58

)

 

 

(29.77

)

Interest yield

 

 

14.97

 

 

 

9.73

 

 

 

10.51

 

 

 

(5.34

)

 

 N/A

 

 

 N/A

 

 

 

11.23

 

Net interest margin

 

 

13.18

 

 

 

7.50

 

 

 

6.62

 

 

 

(3.89

)

 

 N/A

 

 

 N/A

 

 

 

8.72

 

Reserve coverage

 

 

3.48

 

 

 

1.51

 

 

 

—

 

(1)

 

63.28

 

 

 N/A

 

 

 N/A

 

 

 

7.07

 

Delinquency status(2)

 

 

0.52

 

 

 

0.03

 

 

 

2.67

 

(1)

 

8.31

 

 

 N/A

 

 

 N/A

 

 

 

1.07

 

Charge-off ratio

 

 

0.44

 

 

 

0.09

 

 

 

(0.02

)

(3)

 

89.89

 

 

 N/A

 

 

 N/A

 

 

 

5.36

 
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended
September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

82,525

 

 

$

19,431

 

 

$

5,275

 

 

$

86

 

 

$

—

 

 

$

1,253

 

 

$

108,570

 

Total interest expense

 

 

10,268

 

 

 

4,178

 

 

 

1,937

 

 

 

2,781

 

 

 

122

 

 

 

6,933

 

 

 

26,219

 

Net interest income (loss)

 

 

72,257

 

 

 

15,253

 

 

 

3,338

 

 

 

(2,695

)

 

 

(122

)

 

 

(5,680

)

 

 

82,351

 

Provision for loan losses

 

 

20,705

 

 

 

3,041

 

 

 

—

 

 

 

49,489

 

 

 

—

 

 

 

(4

)

 

 

73,231

 

Net interest income (loss) after loss
   provision

 

 

51,552

 

 

 

12,212

 

 

 

3,338

 

 

 

(52,184

)

 

 

(122

)

 

 

(5,676

)

 

 

9,120

 

Sponsorship and race winning

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,161

 

 

 

—

 

 

 

15,161

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,584

)

 

 

—

 

 

 

(6,584

)

Other income (expense), net

 

 

(21,115

)

 

 

(7,002

)

 

 

(2,191

)

 

 

(20,603

)

 

 

(5,726

)

 

 

(8,842

)

 

 

(65,479

)

Net income (loss) before taxes

 

 

30,437

 

 

 

5,210

 

 

 

1,147

 

 

 

(72,787

)

 

 

2,729

 

 

 

(14,518

)

 

 

(47,782

)

Income tax (provision) benefit

 

 

(7,783

)

 

 

(1,332

)

 

 

(286

)

 

 

18,138

 

 

 

(680

)

 

 

4,426

 

 

 

12,483

 

Net income (loss)

 

$

22,654

 

 

$

3,878

 

 

$

861

 

 

$

(54,649

)

 

$

2,049

 

 

$

(10,092

)

 

$

(35,299

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

774,956

 

 

$

310,691

 

 

$

68,042

 

 

$

33,521

 

 

$

—

 

 

$

3,334

 

 

$

1,190,544

 

Total assets

 

 

788,459

 

 

 

321,084

 

 

 

80,247

 

 

 

142,450

 

 

 

40,112

 

 

 

231,923

 

 

 

1,604,275

 

Total funds borrowed

 

 

628,528

 

 

 

255,778

 

 

 

65,906

 

 

 

113,009

 

 

 

8,652

 

 

 

199,312

 

 

 

1,271,185

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.04

%

 

 

1.84

%

 

 

1.37

%

 

 

(38.80

%)

 

 

8.27

%

 

 

(5.45

%)

 

 

(3.43

%)

Return on average equity

 

 

20.20

 

 

 

9.19

 

 

 

6.56

 

 

 

(192.88

)

 

 NM

 

 

 

(22.64

)

 

 

(17.02

)

Interest yield

 

 

14.99

 

 

 

9.62

 

 

 

10.58

 

 

 

0.13

 

 

 N/A

 

 

 N/A

 

 

 

11.31

 

Net interest margin

 

 

13.13

 

 

 

7.53

 

 

 

6.69

 

 

 

(4.12

)

 

 N/A

 

 

 N/A

 

 

 

8.58

 

Reserve coverage

 

 

3.48

 

 

 

1.51

 

 

 

—

 

(1)

 

63.28

 

 

 N/A

 

 

 N/A

 

 

 

7.07

 

Delinquency status(2)

 

 

0.52

 

 

 

0.03

 

 

 

2.67

 

(1)

 

8.31

 

 

 N/A

 

 

 N/A

 

 

 

1.07

 

Charge-off ratio

 

 

1.96

 

 

 

0.44

 

 

 

(0.01

)

(3)

 

26.21

 

 

 N/A

 

 

 N/A

 

 

 

3.30

 
(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. 
v3.21.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(10) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

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

Employment agreements expire at various dates through 2025, with future minimum payments under these agreements of approximately $10,896,000.

(B) OTHER COMMITMENTS

The Company had no commitments to extend credit or make investments outstanding at September 30, 2021. Generally, any commitments would be on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments would be expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

(C) SEC MATTERS

The staff of the SEC has conducted an investigation of the Company relating to certain issues that occurred during the period 2015 to 2017, including (i) the Company’s retention of third parties in 2015 and 2016 concerning posting information about the Company on certain financial websites and (ii) the Company’s financial reporting and disclosures concerning certain assets, including Medallion Bank, in 2016 and 2017, a period when the Company had previously reported as a business development company (“BDC”) under the Investment Company Act of 1940. Since April 2018, the Company does not report as a BDC, and has not worked with such third parties since 2016. The Company does not expect to change previously reported financial results.

The Company is currently engaged in discussions and is cooperating with the SEC staff regarding a potential settlement of some or all aspects of the investigation, which, if reached, is expected to include a civil fine in an amount that is not currently estimable, but which may be material. There can be no assurance that a settlement will be reached, or the terms and timing of any such settlement. If a full settlement is not reached, litigation may ensue. In either event, the Company could incur a loss that could be material to the Company, its results of operations or financial condition.

(D) LITIGATION

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

(E) REGULATORY

In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of FSVC’s transfer to liquidation status and the restructure of the FSVC loan described in Note 5.

v3.21.2
Related Party Transactions
 9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions

(11) RELATED PARTY TRANSACTIONS

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

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

The Company’s subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which it makes an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Mr. Petty of $7,554,000 that earns interest at an annual rate of 2% through September 30, 2021, none of which has been paid to date.

v3.21.2
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2021
Investments All Other Investments [Abstract]  
Fair Value of Financial Instruments

(12) FAIR VALUE OF FINANCIAL INSTRUMENTS

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

(a) Cash—Book value equals fair value.

(b) Equity investments and securities—The Company’s equity securities are recorded at cost less any 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 approximated 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 September 30, 2021 and December 31, 2020, 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.

 

 

September 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Carrying Amount

 

 

Fair Value

 

 

Carrying Amount

 

 

Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and federal funds sold(1)

 

$

85,374

 

 

$

85,374

 

 

$

112,040

 

 

$

112,040

 

Equity investments

 

 

10,214

 

 

 

10,214

 

 

 

9,746

 

 

 

9,746

 

Investment securities

 

 

47,511

 

 

 

47,511

 

 

 

46,792

 

 

 

46,792

 

Loans receivable

 

 

1,372,233

 

 

 

1,372,233

 

 

 

1,172,290

 

 

 

1,172,290

 

Accrued interest receivable(2)

 

 

9,646

 

 

 

9,646

 

 

 

10,338

 

 

 

10,338

 

Equity securities(3)

 

 

1,969

 

 

 

1,969

 

 

 

—

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed(4)

 

 

1,425,518

 

 

 

1,425,518

 

 

 

1,312,255

 

 

 

1,312,591

 

Accrued interest payable(2)

 

 

3,047

 

 

 

3,047

 

 

 

4,673

 

 

 

4,673

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1,250 and $1,500 in interest bearing deposits categorized as level 2 as of September 30, 2021 and December 31, 2020. See Note 13.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 13.
(3)
Included within other assets on the balance sheet.
(4)
There were no publicly traded retail notes as of September 30, 2021. As of December 31, 2020, publicly traded retail notes traded at a premium to par of $336.
v3.21.2
Fair Value of Assets and liabilities
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(13) FAIR VALUE OF ASSETS AND LIABILITIES

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

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

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

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

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

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

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

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

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

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

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

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

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

47,511

 

 

 

—

 

 

 

47,511

 

Equity securities

 

 

1,969

 

 

 

—

 

 

 

—

 

 

 

1,969

 

Total(1)

 

$

1,969

 

 

$

48,761

 

 

$

—

 

 

$

50,730

 
(1)
Total unrealized loss of $141 and $719, net of tax, was included in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 related to these assets.

December 31, 2020
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,500

 

 

$

—

 

 

$

1,500

 

Available for sale investment securities(1)

 

 

—

 

 

 

46,792

 

 

 

—

 

 

 

46,792

 

Total

 

$

—

 

 

$

48,292

 

 

$

—

 

 

$

48,292

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,214

 

 

$

10,214

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

36,501

 

 

 

36,501

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

42,544

 

 

 

42,544

 

Total

 

$

—

 

 

$

—

 

 

$

89,259

 

 

$

89,259

 

 

 

December 31, 2020
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,746

 

 

$

9,746

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

62,174

 

 

 

62,174

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

54,560

 

 

 

54,560

 

Total

 

$

—

 

 

$

—

 

 

$

126,480

 

 

$

126,480

 

Significant Unobservable Inputs

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

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)

 

Fair Value at 9/30/21

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

9,668

 

 

Investee financial
   analysis

 

Financial condition and
   operating performance
   of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

546

 

 

Precedent market
   transaction

 

Offering price

 

 $8.73 / share

Impaired loans

 

 

36,501

 

 

Market approach

 

Historical and actual loss
   experience

 

1.50% - 6.00%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

 $0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

 N/A

Loan collateral in process of
   foreclosure

 

 

42,544

 

 

 Market approach

 

Transfer prices (2)

 

 $0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

 $6.8 - 79.5

 

(Dollars in thousands)

 

Fair Value at 12/31/20

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

8,291

 

 

Investee financial
   analysis

 

Financial condition and
   operating performance
   of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,455

 

 

Precedent market
   transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

62,174

 

 

Market approach

 

Historical and actual loss
   experience

 

1.50% - 6.00%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

 $0.6 - 108.7

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of
   foreclosure

 

 

53,128

 

 

 Market approach

 

Transfer prices (2)

 

 $0.6 - 108.7

 

 

 

1,432

 

 

 

 

Collateral value (3)

 

 $0.7 - 32.3

(1)
Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
(2)
Represents amount net of liquidation costs.
(3)
Relates to the recreation portfolio. 
v3.21.2
Medallion Bank Preferred Stock (Non-controlling Interest)
 9 Months Ended
Sep. 30, 2021
Medallion Bank Preferred Stock (Non-controlling Interest)

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

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

On July 21, 2011, the Bank issued, and the US Treasury purchased 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E, or Series E, for an aggregate purchase price of $26,303,000 under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks. The Bank pays a dividend rate of 9% on the Series E.

v3.21.2
Variable Interest Entities
 9 Months Ended
Sep. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Variable Interest Entities

(15) VARIABLE INTEREST ENTITIES

During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had historically been consolidated as a subsidiary of MFC, 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 was supported by a qualitative assessment that Trust III did not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty. See Note 5 for more details. Subsequent to deconsolidation, the Company’s interest in Trust III was accounted for as an equity investment and had a value of $0 through its disposition in the 2021 third quarter. In addition, the Company remained the servicer of the assets of Trust III for a fee, until its disposition.
v3.21.2
Subsequent Events
 9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

(16) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to September 30, 2021, through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.
v3.21.2
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

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

the judgments and estimates could change, which may result in future impairments of loans and loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects.

Principles of Consolidation

Principles of Consolidation

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

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

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,250,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years.

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 12 and 13 to the consolidated financial statements.

Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10,214,000 and $9,746,000 at September 30, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of September 30, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change.

The Company sold 1,166,667 and 500,000 shares of its investment in Upgrade, Inc. during the second and third quarters of 2021 for proceeds of $3,816,000 and $3,000,000, respectively, and a recognized a gain on the sales of $3,179,000 and $2,727,000, during the period. The Company continued to hold 1,000,000 shares of Upgrade, Inc. at a cost of $546,000 as of September 30, 2021.

In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,969,000 as of September 30, 2021 are included in other assets on the consolidated balance sheet.

The table below presents the unrealized portion related to the equity securities held as of September 30, 2021.

(Dollars in thousands)

 

Three Months Ended
September 30, 2021

 

 

Nine Months Ended
September 30, 2021

 

Net losses recognized during the period on equity securities

 

$

—

 

 

$

(31

)

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

 

 

—

 

 

 

—

 

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

 

$

—

 

 

$

(31

)

 
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $301,000 at September 30, 2021 and $278,000 at December 31, 2020, and $40,000 and $121,000 was amortized to interest income for the three and nine months ended September 30, 2021 and $85,000 and $219,000 was amortized to interest income for the three and nine months ended September 30, 2020. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed.

Loans

Loans

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

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At September 30, 2021 and December 31, 2020, net loan origination costs were $25,658,000 and $20,684,000. Net amortization to income for the three and nine months ended September 30, 2021 was $2,037,000 and $5,757,000 and $1,681,000 and $4,572,000 for the three and nine months ended September 30, 2020.

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer loan portfolio has different characteristics, typified by a larger number of smaller dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is unlikely the Company will be able 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. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $4,109,000 at September 30, 2021, or 0.29% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in the third quarter 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt recreation loans is to take an immediate 40% write down of the loan balance. As a result of the Consolidated Appropriations Act, the 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 September 30, 2021, there were no consumer or medallion loan modifications related to COVID-19 that would have otherwise been classified as TDRs, and therefore there was no need for the Company to elect this relief under the CARES Act during 2020 and 2021. However, the Company may 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 $0 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at September 30, 2021 and December 31, 2020.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $20,477,000 at September 30, 2021 and $107,131,000 at December 31, 2020. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of September 30, 2021 and December 31, 2020.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as 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 sub-portfolios during 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 reserved 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

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 September 30, 2021 and December 31, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,007,000 and $51,090,000. The Company recognized $362,000 and $1,083,000 of amortization expense on the intangible assets for the three and nine months ended September 30, 2021 and $362,000 and $1,084,000 of amortization expense on the intangible assets for the three and nine months ended September 30, 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $685,000 and $2,717,000 were outstanding at September 30, 2021 and December 31, 2020, and of which $150,000 and $2,032,000 was amortized to interest income for the three and nine months ended September 30, 2021 and $893,000 and $1,401,000 was amortized to interest income for the three and nine months ended September 30, 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 September 30, 2021.

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

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Brand-related intellectual property

 

$

18,150

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,692

 

 

 

5,951

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets, net

 

$

50,007

 

 

$

51,090

 
Fixed Assets

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $79,000 and $238,000 for the three and nine months ended September 30, 2021 and was $142,000 and $403,000 for the three and nine months ended September 30, 2020.
Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $576,000 and $1,814,000 for the three and nine months ended September 30, 2021 and was $648,000 and $1,957,000 for the three and nine months ended September 30, 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 $7,098,000 and $5,805,000 as of September 30, 2021 and December 31, 2020.
Income Taxes

Income Taxes

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

Sponsorship and Race Winnings

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

Earnings (Loss) Per Share (EPS)

Earnings (Loss) Per Share (EPS)

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss) resulting from operations
   available to common stockholders

 

$

15,940

 

 

$

(23,630

)

 

$

34,638

 

 

$

(41,250

)

Weighted average common shares
   outstanding applicable to basic EPS

 

 

24,634,845

 

 

 

24,461,488

 

 

 

24,583,573

 

 

 

24,440,067

 

Effect of dilutive stock options

 

 

98,906

 

 

 

—

 

 

 

82,522

 

 

 

—

 

Effect of restricted stock grants

 

 

256,475

 

 

 

—

 

 

 

279,612

 

 

 

—

 

Adjusted weighted average common shares
   outstanding applicable to diluted EPS

 

 

24,990,226

 

 

 

24,461,488

 

 

 

24,945,707

 

 

 

24,440,067

 

Basic income (loss) per share

 

$

0.65

 

 

$

(0.97

)

 

$

1.41

 

 

$

(1.69

)

Diluted income (loss) per share

 

 

0.64

 

 

 

(0.97

)

 

 

1.39

 

 

 

(1.69

)
Potentially dilutive common shares excluded from the above calculations aggregated 26,000 and 834,684 shares as of September 30, 2021 and 2020.
Stock Compensation

Stock Compensation

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

During the nine months ended September 30, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued 16,803 and 47,156 restricted stock units; and recognized $602,000 and $1,676,000, or $0.02 and $0.07 per share, for the three and nine months ended September 30, 2021, and $508,000 and $1,495,000, or $0.02 and $0.06 per share for the three and nine months ended September 30, 2020, of non-cash stock-based compensation expense related to the grants. As of September 30, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $2,866,000, which is expected to be recognized over the next 14 quarters.
Regulatory Capital

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of September 30, 2021, the Bank’s Tier 1 leverage ratio was 18.21%. 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

 

 

September 30, 2021

 

 

December 31, 2020

 

Common equity Tier 1 capital

 

 

—

 

 

 

—

 

 

$

188,459

 

 

$

148,507

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

257,247

 

 

 

217,295

 

Total capital

 

 

—

 

 

 

—

 

 

 

275,460

 

 

 

233,460

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,412,494

 

 

 

1,283,664

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,422,321

 

 

 

1,243,783

 

Leverage ratio(1)

 

 

4.0

%

 

 

5.0

%

 

 

18.2

%

 

 

16.9

%

Common equity Tier 1 capital ratio(2)

 

 

7.0

 

 

 

6.5

 

 

 

13.3

 

 

 

11.9

 

Tier 1 capital ratio(3)

 

 

8.5

 

 

 

8.0

 

 

 

18.1

 

 

 

17.5

 

Total capital ratio(3)

 

 

10.5

 

 

 

10.0

 

 

 

19.4

 

 

 

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 September 30, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both September 30, 2021 and December 31, 2020.
Recently Issued Accounting Standards

Recently Issued Accounting Standards

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

In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements, or Topic 205: Depository and Lending, or Topic 942: and Financial Services – Investment Companies, or Topic 946: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This new standard amends certain SEC paragraphs from the Codification in response to the issuance of SEC Final Rule No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses and SEC Rule No.

33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The Company has assessed the impact the update and determined it does not have a material impact on the accompanying financial statements.

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. 
v3.21.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Unrealized Portion Related to Equity Securities

The table below presents the unrealized portion related to the equity securities held as of September 30, 2021.

(Dollars in thousands)

 

Three Months Ended
September 30, 2021

 

 

Nine Months Ended
September 30, 2021

 

Net losses recognized during the period on equity securities

 

$

—

 

 

$

(31

)

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

 

 

—

 

 

 

—

 

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

 

$

—

 

 

$

(31

)

 
Schedule of Intangible Assets

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

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Brand-related intellectual property

 

$

18,150

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,692

 

 

 

5,951

 

Race organization

 

 

26,165

 

 

 

26,165

 

Total intangible assets, net

 

$

50,007

 

 

$

51,090

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss) resulting from operations
   available to common stockholders

 

$

15,940

 

 

$

(23,630

)

 

$

34,638

 

 

$

(41,250

)

Weighted average common shares
   outstanding applicable to basic EPS

 

 

24,634,845

 

 

 

24,461,488

 

 

 

24,583,573

 

 

 

24,440,067

 

Effect of dilutive stock options

 

 

98,906

 

 

 

—

 

 

 

82,522

 

 

 

—

 

Effect of restricted stock grants

 

 

256,475

 

 

 

—

 

 

 

279,612

 

 

 

—

 

Adjusted weighted average common shares
   outstanding applicable to diluted EPS

 

 

24,990,226

 

 

 

24,461,488

 

 

 

24,945,707

 

 

 

24,440,067

 

Basic income (loss) per share

 

$

0.65

 

 

$

(0.97

)

 

$

1.41

 

 

$

(1.69

)

Diluted income (loss) per share

 

 

0.64

 

 

 

(0.97

)

 

 

1.39

 

 

 

(1.69

)
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

 

 

September 30, 2021

 

 

December 31, 2020

 

Common equity Tier 1 capital

 

 

—

 

 

 

—

 

 

$

188,459

 

 

$

148,507

 

Tier 1 capital

 

 

—

 

 

 

—

 

 

 

257,247

 

 

 

217,295

 

Total capital

 

 

—

 

 

 

—

 

 

 

275,460

 

 

 

233,460

 

Average assets

 

 

—

 

 

 

—

 

 

 

1,412,494

 

 

 

1,283,664

 

Risk-weighted assets

 

 

—

 

 

 

—

 

 

 

1,422,321

 

 

 

1,243,783

 

Leverage ratio(1)

 

 

4.0

%

 

 

5.0

%

 

 

18.2

%

 

 

16.9

%

Common equity Tier 1 capital ratio(2)

 

 

7.0

 

 

 

6.5

 

 

 

13.3

 

 

 

11.9

 

Tier 1 capital ratio(3)

 

 

8.5

 

 

 

8.0

 

 

 

18.1

 

 

 

17.5

 

Total capital ratio(3)

 

 

10.5

 

 

 

10.0

 

 

 

19.4

 

 

 

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.
v3.21.2
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2021
Schedule Of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale at September 30, 2021 and December 31, 2020 consisted of the following:

September 30, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of US
   federal agencies

 

$

37,846

 

 

$

918

 

 

$

(275

)

 

$

38,489

 

State and municipalities

 

 

9,027

 

 

 

74

 

 

 

(79

)

 

 

9,022

 

Total

 

$

46,873

 

 

$

992

 

 

$

(354

)

 

$

47,511

 

 

December 31, 2020
(Dollars in thousands)

 

Amortized Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of US
   federal agencies

 

$

34,929

 

 

$

1,495

 

 

$

(45

)

 

$

36,379

 

State and municipalities

 

 

10,226

 

 

 

189

 

 

 

(2

)

 

 

10,413

 

Total

 

$

45,155

 

 

$

1,684

 

 

$

(47

)

 

$

46,792

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

The amortized cost and estimated market value of investment securities at September 30, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)

 

Amortized Cost

 

 

Fair Value

 

Due in one year or less

 

$

933

 

 

$

939

 

Due after one year through five years

 

 

9,969

 

 

 

10,266

 

Due after five years through ten years

 

 

10,316

 

 

 

10,659

 

Due after ten years

 

 

25,655

 

 

 

25,647

 

Total

 

$

46,873

 

 

$

47,511

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

September 30, 2021
(Dollars in thousands)

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

Mortgage-backed securities, principally obligations of US
   federal agencies

 

$

(275

)

 

$

13,060

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(78

)

 

 

3,989

 

 

 

(1

)

 

 

63

 

Total

 

$

(353

)

 

$

17,049

 

 

$

(1

)

 

$

63

 

 

 

 

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

 
v3.21.2
Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2021
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2021 and December 31, 2020.

 

 

September 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Amount

 

 

As a Percent of
Gross Loans

 

 

Amount

 

 

As a Percent of
Gross Loans

 

Recreation

 

$

933,790

 

 

 

66

%

 

$

792,686

 

 

 

65

%

Home improvement

 

 

398,774

 

 

 

28

 

 

 

334,033

 

 

 

27

 

Commercial

 

 

72,088

 

 

 

5

 

 

 

65,327

 

 

 

5

 

Medallion

 

 

14,934

 

 

 

1

 

 

 

37,768

 

 

 

3

 

Strategic partnership

 

 

95

 

 

 

—

 

 

 

24

 

 

 

—

 

Total gross loans

 

 

1,419,681

 

 

 

100

%

 

 

1,229,838

 

 

 

100

%

Allowance for loan losses

 

 

(47,448

)

 

 

 

 

 

(57,548

)

 

 

 

Total net loans

 

$

1,372,233

 

 

 

 

 

$

1,172,290

 

 

 

 
Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2021and 2020.

Three Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – June 30, 2021

 

$

886,206

 

 

$

368,257

 

 

$

69,520

 

 

$

16,514

 

 

$

70

 

 

$

1,340,567

 

Loan originations

 

 

118,407

 

 

 

68,692

 

 

 

5,700

 

 

 

—

 

 

 

2,969

 

 

 

195,768

 

Principal payments, sales, and maturities

 

 

(70,350

)

 

 

(38,571

)

 

 

(3,332

)

 

 

(1,449

)

 

 

(2,944

)

 

 

(116,646

)

Charge-offs, net

 

 

335

 

 

 

239

 

 

 

—

 

 

 

265

 

 

 

—

 

 

 

839

 

Transfer to loan collateral in process
   of foreclosure, net

 

 

(2,085

)

 

 

—

 

 

 

—

 

 

 

(397

)

 

 

—

 

 

 

(2,482

)

Amortization of origination costs

 

 

(2,532

)

 

 

386

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,146

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs

 

 

3,869

 

 

 

(139

)

 

 

12

 

 

 

1

 

 

 

—

 

 

 

3,743

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

188

 

 

 

—

 

 

 

—

 

 

 

188

 

Loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

 

Nine Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

346,724

 

 

 

179,743

 

 

 

20,916

 

 

 

—

 

 

 

7,339

 

 

 

554,722

 

Principal payments, sales and maturities

 

 

(199,449

)

 

 

(115,369

)

 

 

(14,861

)

 

 

(5,663

)

 

 

(7,268

)

 

 

(342,610

)

Charge-offs, net

 

 

(1,334

)

 

 

(237

)

 

 

—

 

 

 

(10,529

)

 

 

—

 

 

 

(12,100

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,118

)

 

 

—

 

 

 

—

 

 

 

(5,027

)

 

 

—

 

 

 

(13,145

)

Amortization of origination costs

 

 

(7,171

)

 

 

1,293

 

 

 

12

 

 

 

(2

)

 

 

—

 

 

 

(5,868

)

Amortization of loan premium

 

 

(161

)

 

 

(256

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,032

)

FASB origination costs

 

 

10,613

 

 

 

(433

)

 

 

12

 

 

 

2

 

 

 

—

 

 

 

10,194

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

682

 

 

 

—

 

 

 

—

 

 

 

682

 

Loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

 

Three Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – June 30, 2020

 

$

786,785

 

 

$

282,072

 

 

$

71,476

 

 

$

120,253

 

 

$

8

 

 

$

1,260,594

 

Loan originations

 

 

73,534

 

 

 

62,515

 

 

 

900

 

 

 

—

 

 

 

142

 

 

 

137,091

 

Principal payments, sales and maturities

 

 

(54,161

)

 

 

(29,312

)

 

 

(1,318

)

 

 

(401

)

 

 

(143

)

 

 

(85,335

)

Charge-offs, net

 

 

(850

)

 

 

(65

)

 

 

3

 

 

 

(15,304

)

 

 

 

 

 

(16,216

)

Transfer to loan collateral in process
   of foreclosure, net

 

 

(2,833

)

 

 

—

 

 

 

—

 

 

 

(10,590

)

 

 

 

 

 

(13,423

)

Amortization of origination costs

 

 

(2,093

)

 

 

509

 

 

 

2

 

 

 

(99

)

 

 

 

 

 

(1,681

)

Amortization of loan premium

 

 

(49

)

 

 

(81

)

 

 

—

 

 

 

(763

)

 

 

 

 

 

(893

)

FASB origination costs

 

 

2,605

 

 

 

(196

)

 

 

—

 

 

 

2

 

 

 

 

 

 

2,411

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

306

 

 

 

—

 

 

 

 

 

 

306

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

 

 

 

(1,800

)

Loans – September 30, 2020

 

$

802,938

 

 

$

315,442

 

 

$

71,369

 

 

$

91,298

 

 

$

7

 

 

$

1,281,054

 

 

Nine Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic Partnership

 

 

Total

 

Loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

—

 

 

$

1,160,855

 

Loan originations

 

 

249,383

 

 

 

140,693

 

 

 

6,075

 

 

 

—

 

 

 

295

 

 

 

396,446

 

Principal payments, sales and maturities

 

 

(140,688

)

 

 

(72,034

)

 

 

(5,422

)

 

 

(4,180

)

 

 

(288

)

 

 

(222,612

)

Charge-offs, net

 

 

(10,796

)

 

 

(897

)

 

 

3

 

 

 

(17,124

)

 

 

—

 

 

 

(28,814

)

Transfer to loan collateral in process
   of foreclosure, net

 

 

(10,615

)

 

 

—

 

 

 

—

 

 

 

(14,934

)

 

 

—

 

 

 

(25,549

)

Amortization of origination costs

 

 

(5,853

)

 

 

1,406

 

 

 

6

 

 

 

(131

)

 

 

—

 

 

 

(4,572

)

Amortization of loan premium

 

 

(152

)

 

 

(248

)

 

 

—

 

 

 

(1,001

)

 

 

—

 

 

 

(1,401

)

FASB origination costs

 

 

8,327

 

 

 

(802

)

 

 

—

 

 

 

36

 

 

 

—

 

 

 

7,561

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

940

 

 

 

—

 

 

 

—

 

 

 

940

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

—

 

 

 

(1,800

)

Loans – September 30, 2020

 

$

802,938

 

 

$

315,442

 

 

$

71,369

 

 

$

91,298

 

 

$

7

 

 

$

1,281,054

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2021 and 2020.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Allowance for loan losses – beginning
   balance

 

$

46,946

 

 

$

66,977

 

 

$

57,548

 

 

$

46,093

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(2,313

)

 

 

(3,595

)

 

 

(10,038

)

 

 

(17,546

)

Home improvement

 

 

(523

)

 

 

(643

)

 

 

(1,990

)

 

 

(2,202

)

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

(1,142

)

 

 

(15,448

)

 

 

(15,047

)

 

 

(19,146

)

Total charge-offs

 

 

(3,978

)

 

 

(19,686

)

 

 

(27,075

)

 

 

(38,894

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

2,648

 

 

 

2,745

 

 

 

8,704

 

 

 

6,750

 

Home improvement

 

 

763

 

 

 

578

 

 

 

1,753

 

 

 

1,304

 

Commercial

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

Medallion

 

 

1,406

 

 

 

144

 

 

 

4,518

 

 

 

2,023

 

Total recoveries

 

 

4,817

 

 

 

3,470

 

 

 

14,975

 

 

 

10,080

 

Net charge-offs(1)

 

 

839

 

 

 

(16,216

)

 

 

(12,100

)

 

 

(28,814

)

Provision (benefit) for loan losses

 

 

(337

)

 

 

39,749

 

 

 

2,000

 

 

 

73,231

 

Allowance for loan losses – ending balance(2)

 

$

47,448

 

 

$

90,510

 

 

$

47,448

 

 

$

90,510

 
(1)
As of September 30, 2021 and September 30, 2020, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $301,963 and $268,745, some of which may represent collection opportunities for the Company.
(2)
As of September 30, 2021 and September 30, 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 September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Amount

 

 

Percentage of
Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

31,556

 

 

 

66

%

 

 

3.38

%

 

 

87.88

%

Home improvement

 

 

6,496

 

 

 

14

 

 

 

1.63

 

 

 

18.09

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

9,396

 

 

 

20

 

 

 

62.92

 

 

 

26.17

 

Total

 

$

47,448

 

 

 

100

%

 

 

3.34

%

 

 

132.13

%

 

December 31, 2020
(Dollars in thousands)

 

Amount

 

 

Percentage of
Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

27,348

 

 

 

48

%

 

 

3.45

%

 

 

378.20

%

Home improvement

 

 

5,157

 

 

 

9

 

 

 

1.54

 

 

 NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,043

 

 

 

43

 

 

 

66.31

 

 

 

68.01

 

Total

 

$

57,548

 

 

 

100

%

 

 

4.68

%

 

 

93.17

%
Summary of Total Nonaccrual Loans and Foregone Interest

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

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Total nonaccrual loans

 

$

35,910

 

 

$

61,767

 

Interest foregone quarter to date

 

 

377

 

 

 

2,306

 

Amount of foregone interest applied to principal in the quarter

 

 

115

 

 

 

595

 

Interest foregone year to date

 

 

1,187

 

 

 

3,311

 

Amount of foregone interest applied to principal year to date

 

 

358

 

 

 

602

 

Interest foregone life to date

 

 

3,274

 

 

 

5,252

 

Amount of foregone interest applied to principal life to date

 

 

886

 

 

 

792

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

3

%

 

 

5

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

132

%

 

 

93

%

 
Summary of Performance Status of Loan

The following tables present the performance status of loans as of September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

928,769

 

 

$

5,021

 

 

$

933,790

 

 

 

0.54

%

Home improvement

 

 

398,613

 

 

 

161

 

 

 

398,774

 

 

 

0.04

 

Commercial

 

 

55,703

 

 

 

16,385

 

 

 

72,088

 

 

 

22.73

 

Medallion

 

 

—

 

 

 

14,934

 

 

 

14,934

 

 

 

100.00

 

Strategic partnership

 

 

95

 

 

 

—

 

 

 

95

 

 

 

—

 

Total

 

$

1,383,180

 

 

$

36,501

 

 

$

1,419,681

 

 

 

2.57

%

 

December 31, 2020
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

785,047

 

 

$

7,639

 

 

$

792,686

 

 

 

0.96

%

Home improvement

 

 

333,862

 

 

 

171

 

 

 

334,033

 

 

 

0.05

 

Commercial

 

 

48,731

 

 

 

16,596

 

 

 

65,327

 

 

 

25.40

 

Medallion

 

 

—

 

 

 

37,768

 

(1)

 

37,768

 

 

 

100.00

 

Strategic partnership

 

 

24

 

 

 

—

 

 

 

24

 

 

 

—

 

Total

 

$

1,167,664

 

 

$

62,174

 

 

$

1,229,838

 

 

 

5.06

%
(1)
Includes medallion loan premiums of $1,615 at December 31, 2020.
Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of September 30, 2021 and December 31, 2020, all of which had an allowance recorded against the principal balance.

 

 

September 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,021

 

 

$

5,021

 

 

$

170

 

 

$

7,639

 

 

$

7,639

 

 

$

264

 

Home improvement

 

 

161

 

 

 

161

 

 

 

3

 

 

 

171

 

 

 

171

 

 

 

3

 

Commercial

 

 

16,385

 

 

 

16,400

 

 

 

—

 

 

 

16,596

 

 

 

16,600

 

 

 

—

 

Medallion

 

 

14,934

 

 

 

15,805

 

 

 

9,396

 

 

 

37,768

 

 

 

38,368

 

 

 

25,043

 

Total nonperforming loans
  with an allowance

 

$

36,501

 

 

$

37,387

 

 

$

9,569

 

 

$

62,174

 

 

$

62,778

 

 

$

25,310

 

 

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest
Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

4,423

 

 

$

148

 

 

$

6,730

 

 

$

167

 

 

$

4,641

 

 

$

425

 

 

$

6,882

 

 

$

428

 

Home improvement

 

 

161

 

 

 

—

 

 

 

103

 

 

 

—

 

 

 

151

 

 

 

—

 

 

 

103

 

 

 

2

 

Commercial

 

 

16,531

 

 

 

—

 

 

 

16,894

 

 

 

—

 

 

 

16,926

 

 

 

—

 

 

 

17,002

 

 

 

47

 

Medallion

 

 

16,941

 

 

 

—

 

 

 

90,032

 

 

 

121

 

 

 

17,101

 

 

 

—

 

 

 

90,396

 

 

 

992

 

Total nonperforming loans
   with an allowance

 

$

38,056

 

 

$

148

 

 

$

113,759

 

 

$

288

 

 

$

38,819

 

 

$

425

 

 

$

114,383

 

 

$

1,469

 
Summary of Aging of Loans

The following tables show the aging of all loans as of September 30, 2021 and December 31, 2020.

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

September 30, 2021
(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Recorded
Investment
90 Days and
Accruing

 

Recreation

 

$

16,603

 

 

$

5,525

 

 

$

3,065

 

 

$

25,193

 

 

$

880,004

 

 

$

905,197

 

 

$

—

 

Home improvement

 

 

794

 

 

 

355

 

 

 

160

 

 

 

1,309

 

 

 

399,712

 

 

 

401,021

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

72,014

 

 

 

72,088

 

 

 

—

 

Medallion

 

 

321

 

 

 

678

 

 

 

810

 

 

 

1,809

 

 

 

13,126

 

 

 

14,935

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

95

 

 

 

95

 

 

 

—

 

Total

 

$

17,718

 

 

$

6,558

 

 

$

4,109

 

 

$

28,385

 

 

$

1,364,951

 

 

$

1,393,336

 

 

$

—

 
(1)
Excludes loan premiums of $685 resulting from purchase price accounting and $25,658 of capitalized loan origination costs.

 

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

December 31, 2020
(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Recorded
Investment
90 Days and
Accruing

 

Recreation

 

$

22,058

 

 

$

7,582

 

 

$

5,343

 

 

$

34,983

 

 

$

732,391

 

 

$

767,374

 

 

$

—

 

Home improvement

 

 

813

 

 

 

218

 

 

 

170

 

 

 

1,201

 

 

 

335,684

 

 

 

336,885

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

75

 

 

 

75

 

 

 

65,265

 

 

 

65,340

 

 

 

—

 

Medallion

 

 

2,019

 

 

 

973

 

 

 

1,290

 

 

 

4,282

 

 

 

31,871

 

 

 

36,153

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24

 

 

 

24

 

 

 

—

 

Total

 

$

24,890

 

 

$

8,773

 

 

$

6,878

 

 

$

40,541

 

 

$

1,165,235

 

 

$

1,205,776

 

 

$

—

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

The following table shows the TDRs which the Company entered into during the three and nine months ended September 30, 2021.

(Dollars in thousands)

 

Number of
Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2021

 

 

 

 

 

 

 

 

 

     Recreation

 

 

8

 

 

$

94

 

 

$

55

 

     Medallion

 

 

1

 

 

 

77

 

 

 

77

 

Nine months ended September 30, 2021

 

 

 

 

 

 

 

 

 

     Recreation

 

 

47

 

 

$

568

 

 

$

525

 

     Medallion

 

 

11

 

 

 

3,071

 

 

 

3,071

 

The following table shows the TDRs which the Company entered into during the three and nine months ended September 30, 2020.

(Dollars in thousands)

 

Number of
Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2020

 

 

 

 

 

 

 

 

 

     Recreation

 

 

18

 

 

$

254

 

 

$

229

 

     Medallion

 

 

3

 

 

 

448

 

 

 

448

 

Nine months ended September 30, 2020

 

 

 

 

 

 

 

 

 

     Recreation

 

 

57

 

 

$

722

 

 

$

510

 

     Medallion

 

 

33

 

 

 

14,089

 

 

 

14,089

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

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2021 and 2020.

Three Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion (1)

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2021

 

$

882

 

 

$

48,157

 

 

$

49,039

 

Transfer from loans, net

 

 

2,085

 

 

 

397

 

 

 

2,482

 

Sales

 

 

(1,554

)

 

 

(1,640

)

 

 

(3,194

)

Cash payments received

 

 

—

 

 

 

(4,525

)

 

 

(4,525

)

Collateral valuation adjustments

 

 

(640

)

 

 

(618

)

 

 

(1,258

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 
(1)
As of September 30, 2021, medallion loans in the process of foreclosure included 565 medallions in the New York market, 66 medallions in the Newark market, 339 medallions in the Chicago market and 48 in various other markets.

 

Nine Months Ended September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion (1)

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

Transfer from loans, net

 

 

8,118

 

 

 

5,027

 

 

 

13,145

 

Sales

 

 

(5,842

)

 

 

(1,871

)

 

 

(7,713

)

Cash payments received

 

 

—

 

 

 

(8,948

)

 

 

(8,948

)

Collateral valuation adjustments

 

 

(2,935

)

 

 

(5,565

)

 

 

(8,500

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 
(1)
As of September 30, 2021, medallion loans in the process of foreclosure included 565 medallions in the New York market, 66 medallions in the Newark market, 339 medallions in the Chicago market and 48 in various other markets.

 

Three Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2020

 

$

1,258

 

 

$

46,117

 

 

$

47,375

 

Transfer from loans, net

 

 

2,833

 

 

 

10,611

 

 

 

13,444

 

Sales

 

 

(1,697

)

 

 

—

 

 

 

(1,697

)

Cash payments received

 

 

—

 

 

 

(426

)

 

 

(426

)

Collateral valuation adjustments

 

 

(1,395

)

 

 

(8,559

)

 

 

(9,954

)

Loan collateral in process of foreclosure – September 30, 2020

 

$

999

 

 

$

47,743

 

 

$

48,742

 

 

Nine Months Ended September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

Transfer from loans, net

 

 

10,615

 

 

 

14,954

 

 

 

25,569

 

Sales

 

 

(5,684

)

 

 

(300

)

 

 

(5,984

)

Cash payments received

 

 

—

 

 

 

(2,318

)

 

 

(2,318

)

Collateral valuation adjustments

 

 

(5,408

)

 

 

(15,828

)

 

 

(21,236

)

Loan collateral in process of foreclosure – September 30, 2020

 

$

999

 

 

$

47,743

 

 

$

48,742

 
v3.21.2
Funds Borrowed (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The outstanding balances of funds borrowed were as follows:

 

 

Payments Due for the Twelve Months Ending September 30,

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

September 30,
2021(1)

 

 

December 31, 2020(1)

 

 

Interest
Rate (2)

 

Deposits(3)

 

$

443,666

 

 

$

212,403

 

 

$

266,598

 

 

$

117,798

 

 

$

158,340

 

 

$

—

 

 

$

1,198,805

 

 

$

1,067,822

 

 

 

1.26

%

Retail and privately
   placed notes

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

53,750

 

 

 

121,000

 

 

 

103,225

 

 

 

7.66

%

SBA debentures
   and borrowings

 

 

—

 

 

 

5,000

 

 

 

14,909

 

 

 

14,000

 

 

 

14,000

 

 

 

16,000

 

 

 

63,909

 

 

 

68,008

 

 

 

2.92

%

Preferred
   securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.24

%

Notes payable to
   banks

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,261

 

 

 

—

%

Other
   borrowings

 

 

8,054

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,054

 

 

 

8,689

 

 

 

2.00

%

Total

 

$

451,720

 

 

$

217,403

 

 

$

317,507

 

 

$

131,798

 

 

$

203,590

 

 

$

102,750

 

 

$

1,424,768

 

 

$

1,312,005

 

 

 

1.90

%
(1)
Excludes deferred financing costs of $7,098 and $5,805 as of September 30, 2021 and December 31, 2020.
(2)
Weighted average contractual rate as of September 30, 2021.
(3)
Balance excludes $750 and $250 of strategic partner reserve deposits as of September 30, 2021 and December 31, 2020.
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits The following table presents the maturity of the broker pools, which excludes strategic partner reserve deposits, as of September 30, 2021.

(Dollars in thousands)

 

September 30, 2021

 

Three months or less

 

$

157,023

 

Over three months through six months

 

 

89,027

 

Over six months through one year

 

 

197,616

 

Over one year

 

 

755,139

 

Total deposits

 

$

1,198,805

 

 
v3.21.2
Leases (Tables)
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the three and nine months ended September 30, 2021 and 2020.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating lease costs

 

$

571

 

 

$

596

 

 

$

1,715

 

 

$

1,788

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

481

 

 

 

632

 

 

 

1,780

 

 

 

1,994

 

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

 

 

(41

)

 

 

(14

)

 

 

(76

)

 

 

(42

)
Schedule of Breakout of Operating leases

The following table presents the breakout of the operating leases as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Operating lease right-of-use assets

 

$

10,277

 

 

$

11,737

 

Other current liabilities

 

 

2,140

 

 

 

2,004

 

Operating lease liabilities

 

 

9,346

 

 

 

11,018

 

Total operating lease liabilities

 

 

11,486

 

 

 

13,022

 

Weighted average remaining lease term

 

5.7 years

 

 

6.4 years

 

Weighted average discount rate

 

 

5.55

%

 

 

5.54

%
Schedule of Maturities of the Lease Liabilities

At September 30, 2021, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2021

 

$

612

 

2022

 

 

2,411

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

Thereafter

 

 

3,521

 

Total lease payments

 

$

13,663

 

Less imputed interest

 

 

2,177

 

Total operating lease liabilities

 

$

11,486

 
v3.21.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Goodwill and other intangibles

 

$

(44,022

)

 

$

(44,799

)

Provision for loan losses

 

 

12,550

 

 

 

19,556

 

Net operating loss carryforwards(1)

 

 

18,745

 

 

 

30,493

 

Accrued expenses, compensation, and other assets

 

 

2,309

 

 

 

1,174

 

Unrealized gains on other investments

 

 

10

 

 

 

(6,769

)

Total deferred tax liability

 

 

(10,408

)

 

 

(345

)

Valuation allowance(2)

 

 

(2,295

)

 

 

(462

)

Deferred tax liability, net

 

$

(12,703

)

 

$

(807

)
(1)
As of September 30, 2021, the Company and its subsidiaries had an estimated $77,838 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $16,450 as of September 30, 2021.
(2)
During the nine months ended September 30, 2021, it was determined that the likelihood of utilization of certain net operating losses was remote and a valuation allowance of $1,833 was assessed against these assets.
Summary of Components of Tax (Provision) Benefit

The components of our tax (provision) benefit for the three and nine months ended September 30, 2021 and 2020 was as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

(1,359

)

 

$

—

 

 

$

(2,154

)

 

$

—

 

State

 

 

(721

)

 

 

(83

)

 

 

(991

)

 

 

(306

)

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(3,198

)

 

 

5,940

 

 

 

(9,252

)

 

 

9,239

 

State

 

 

(889

)

 

 

2,524

 

 

 

(4,176

)

 

 

3,550

 

Net (provision) benefit for income taxes

 

$

(6,167

)

 

$

8,381

 

 

$

(16,573

)

 

$

12,483

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

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit for the three and nine months ended September 30, 2021 and 2020.

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Statutory Federal income tax (provision) benefit at 21%

 

$

(4,807

)

 

$

5,967

 

 

$

(11,331

)

 

$

10,034

 

State and local income taxes, net of federal income tax benefit

 

 

(942

)

 

 

1,201

 

 

 

(2,217

)

 

 

1,961

 

Valuation allowance against net operating losses

 

 

—

 

 

 

—

 

 

 

(1,833

)

 

 

—

 

Change in effective state income tax rates and accrual

 

 

(110

)

 

 

(939

)

 

 

(1,479

)

 

 

(790

)

Income attributable to non-controlling interest

 

 

183

 

 

 

522

 

 

 

449

 

 

 

356

 

Non deductible expenses

 

 

(132

)

 

 

(211

)

 

 

81

 

 

 

(1,000

)

Other

 

 

(359

)

 

 

1,841

 

 

 

(243

)

 

 

1,922

 

Total income tax (provision) benefit

 

$

(6,167

)

 

$

8,381

 

 

$

(16,573

)

 

$

12,483

 
v3.21.2
Stock Options and Restricted Stock (Tables)
 9 Months Ended
Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Assumption Categories Used to Determine Value of Option Grants The following assumption categories are used to determine the value of any option grants.

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Risk free interest rate

 

 

0.97

%

 

 

1.46

%

Expected dividend yield

 

 

—

 

 

 

—

 

Expected life of option in years(1)

 

 

6.25

 

 

 

6.25

 

Expected volatility(2)

 

 

53.98

 

 

 

50.18

 
(1)
Expected life is calculated using the simplified method.
(2)
We determine our expected volatility based on our historical volatility.
Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the 2021 first, second, and third quarters and the 2020 full year.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2019

 

 

550,040

 

 

$

2.14-13.53

 

 

$

6.58

 

Granted

 

 

444,557

 

 

 

4.89-6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

 

2.22-13.53

 

 

 

6.91

 

Exercised(1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020

 

 

951,669

 

 

 

2.14-12.55

 

 

 

6.41

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(3,984

)

 

 

6.55-7.25

 

 

 

6.89

 

Exercised(1)

 

 

(768

)

 

 

6.55-7.25

 

 

 

6.79

 

Outstanding at March 31, 2021

 

 

1,264,315

 

 

 

2.14-12.55

 

 

 

6.50

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(32,446

)

 

 

4.89-7.25

 

 

 

5.98

 

Exercised(1)

 

 

(22,227

)

 

 

5.27-7.25

 

 

 

5.76

 

Outstanding at June 30, 2021

 

 

1,209,642

 

 

 

2.14-12.55

 

 

 

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(1,981

)

 

 

4.89 - 7.25

 

 

 

5.85

 

Exercised(1)

 

 

(21,075

)

 

 

5.21 - 7.25

 

 

 

5.34

 

Outstanding at September 30, 2021

 

 

1,186,586

 

 

 

2.14-12.55

 

 

 

6.55

 

Options exercisable at September 30, 2021(2)

 

 

326,116

 

 

 

2.14 - 12.55

 

 

$

6.61

 
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $77,000 and $152,000 for the three and nine months ended September 30, 2021. There was no intrinsic value for the three and nine months ended September 30, 2020.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2021 and the related exercise price of the underlying options, was $1,590,000 for outstanding options and $463,000 for exercisable options as of September 30, 2021. The remaining contractual life was 8.27 years for outstanding options and 7.21 years for exercisable options at September 30, 2021.
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the 2021 first, second, and third quarters and the 2020 full year.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2019

 

 

284,879

 

 

$

3.95-7.25

 

 

$

6.01

 

Granted

 

 

229,408

 

 

 

4.89-6.68

 

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

 

3.95-7.25

 

 

 

6.93

 

Vested(1)

 

 

(89,392

)

 

 

3.95-6.55

 

 

 

5.37

 

Outstanding at December 31, 2020

 

 

416,140

 

 

 

4.39-7.25

 

 

 

6.24

 

Granted

 

 

163,561

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(7,602

)

 

 

4.89-7.25

 

 

 

5.96

 

Vested(1)

 

 

(119,577

)

 

 

4.39-7.25

 

 

 

6.09

 

Outstanding at March 31, 2021

 

 

452,522

 

 

 

4.80-7.25

 

 

 

6.48

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(10,332

)

 

 

4.89-7.25

 

 

 

6.13

 

Vested(1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2021

 

 

442,190

 

 

 

4.80-7.25

 

 

 

6.49

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(687

)

 

 

4.89 - 7.25

 

 

 

5.40

 

Vested(1)

 

 

(5,208

)

 

 

 

4.80

 

 

 

4.80

 

Outstanding at September 30, 2021(2)

 

 

436,295

 

 

$

4.89 - 7.25

 

 

$

6.51

 
(1)
The aggregate fair value of the restricted stock vested was $45,000 and $858,000 for the three and nine months ended September 30, 2021 and was $25,000 and 579,000 for the three and nine months ended September 30, 2020.
(2)
The aggregate fair value of the restricted stock was $3,421,000 as of September 30, 2021. The remaining vesting period was 3.43 years at September 30, 2021.
Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the 2021 first, second, and third quarters.

 

 

Number of
Options

 

 

 

Exercise
Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2020

 

 

773,362

 

 

$

4.89-7.25

 

 

$

6.42

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(2,530

)

 

 

6.55-7.25

 

 

 

6.96

 

Vested

 

 

(185,278

)

 

 

6.55-7.25

 

 

 

6.67

 

Outstanding at March 31, 2021

 

 

902,952

 

 

 

4.89-7.25

 

 

 

6.50

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(33,134

)

 

 

4.89-7.25

 

 

 

5.99

 

Vested

 

 

(8,000

)

 

 

 

5.58

 

 

 

5.58

 

Outstanding at June 30, 2021

 

 

861,818

 

 

$

4.89-7.25

 

 

 

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(1,348

)

 

 

4.89 - 7.25

 

 

 

5.40

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2021

 

 

860,470

 

 

$

4.89 - 7.25

 

 

$

6.53

 
v3.21.2
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Schedule of Segment Data

The following tables present segment data as of and for the three and nine months ended September 30, 2021 and 2020.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

30,529

 

 

$

8,586

 

 

$

2,055

 

 

$

1

 

 

$

—

 

 

$

326

 

 

$

41,497

 

Total interest expense

 

 

2,305

 

 

 

958

 

 

 

662

 

 

 

2,009

 

 

 

38

 

 

 

1,454

 

 

 

7,426

 

Net interest income (loss)

 

 

28,224

 

 

 

7,628

 

 

 

1,393

 

 

 

(2,008

)

 

 

(38

)

 

 

(1,128

)

 

 

34,071

 

Provision for loan losses

 

 

916

 

 

 

369

 

 

 

—

 

 

 

(1,944

)

 

 

—

 

 

 

322

 

 

 

(337

)

Net interest income (loss)
   after loss provision

 

 

27,308

 

 

 

7,259

 

 

 

1,393

 

 

 

(64

)

 

 

(38

)

 

 

(1,450

)

 

 

34,408

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,335

 

 

 

—

 

 

 

3,335

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,424

)

 

 

—

 

 

 

(2,424

)

Other income (expense), net

 

 

(8,856

)

 

 

(3,437

)

 

 

636

 

 

 

2,073

 

 

 

(2,066

)

 

 

(778

)

 

 

(12,428

)

Net income (loss) before taxes

 

 

18,452

 

 

 

3,822

 

 

 

2,029

 

 

 

2,009

 

 

 

(1,193

)

 

 

(2,228

)

 

 

22,891

 

Income tax (provision) benefit

 

 

(4,752

)

 

 

(951

)

 

 

(510

)

 

 

(504

)

 

 

299

 

 

 

251

 

 

 

(6,167

)

Net income (loss)

 

$

13,700

 

 

$

2,871

 

 

$

1,519

 

 

$

1,505

 

 

$

(894

)

 

$

(1,977

)

 

$

16,724

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.09

%

 

 

2.89

%

 

 

6.60

%

 

 

6.12

%

 

 

(11.28

%)

 

 

(2.65

%)

 

 

3.73

%

Return on average equity

 

 

30.46

 

 

 

14.43

 

 

 

32.99

 

 

 

30.62

 

 

 

(11.08

)

 

 

(19.79

)

 

 

19.81

 

Interest yield

 

 

13.78

 

 

 

9.04

 

 

 

12.04

 

 

 

0.09

 

 

 N/A

 

 

 N/A

 

 

 

11.55

 

Net interest margin

 

 

12.74

 

 

 

8.03

 

 

 

8.16

 

 

 

(139.64

)

 

 N/A

 

 

 N/A

 

 

 

9.48

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

49.98

 

 

 N/A

 

 

 N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

5.42

 

 

 N/A

 

 

 N/A

 

 

 

0.29

 

Charge-off ratio(4)

 

 

(0.15

)

 

 

(0.25

)

 

 

—

 

(3)

 

(43.01

)

 

 N/A

 

 

 N/A

 

 

 

(0.38

)
(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.
(4)
Negative balances indicate recoveries for the period.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended
September 30, 2021
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

86,857

 

 

$

24,732

 

 

$

4,920

 

 

$

(1,543

)

 

$

—

 

 

$

987

 

 

$

115,953

 

Total interest expense

 

 

7,962

 

 

 

3,309

 

 

 

1,950

 

 

 

5,903

 

 

 

113

 

 

 

4,481

 

 

 

23,718

 

Net interest income (loss)

 

 

78,895

 

 

 

21,423

 

 

 

2,970

 

 

 

(7,446

)

 

 

(113

)

 

 

(3,494

)

 

 

92,235

 

Provision for loan losses

 

 

5,546

 

 

 

1,575

 

 

 

—

 

 

 

(5,931

)

 

 

—

 

 

 

810

 

 

 

2,000

 

Net interest income (loss)
   after loss provision

 

 

73,349

 

 

 

19,848

 

 

 

2,970

 

 

 

(1,515

)

 

 

(113

)

 

 

(4,304

)

 

 

90,235

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,153

 

 

 

—

 

 

 

10,153

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,219

)

 

 

—

 

 

 

(7,219

)

Other income (expense), net

 

 

(21,774

)

 

 

(7,989

)

 

 

107

 

 

 

(1,228

)

 

 

(5,689

)

 

 

(2,637

)

 

 

(39,210

)

Net income (loss) before taxes

 

 

51,575

 

 

 

11,859

 

 

 

3,077

 

 

 

(2,743

)

 

 

(2,868

)

 

 

(6,941

)

 

 

53,959

 

Income tax (provision) benefit

 

 

(13,281

)

 

 

(3,054

)

 

 

(773

)

 

 

689

 

 

 

720

 

 

 

(874

)

 

 

(16,573

)

Net income (loss)

 

$

38,294

 

 

$

8,805

 

 

$

2,304

 

 

$

(2,054

)

 

$

(2,148

)

 

$

(7,815

)

 

$

37,386

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.08

%

 

 

3.20

%

 

 

3.68

%

 

 

(2.52

%)

 

 

(8.89

%)

 

 

(3.68

%)

 

 

2.73

%

Return on average equity

 

 

30.39

 

 

 

16.02

 

 

 

18.38

 

 

 

(12.60

)

 

 

(386.73

)

 

 

(27.18

)

 

 

14.47

 

Interest yield

 

 

14.05

 

 

 

9.37

 

 

 

10.56

 

 

 

(23.55

)

 

 N/A

 

 

 N/A

 

 

 

11.56

 

Net interest margin

 

 

12.76

 

 

 

8.11

 

 

 

6.37

 

 

 

(113.66

)

 

 N/A

 

 

 N/A

 

 

 

9.19

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

49.98

 

 

 N/A

 

 

 N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

5.42

 

 

 N/A

 

 

 N/A

 

 

 

0.29

 

Charge-off ratio(4)

 

 

0.22

 

 

 

0.09

 

 

 

—

 

(3)

 

143.94

 

 

 N/A

 

 

 N/A

 

 

 

1.17

 
(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.
(4)
Negative balances indicate recoveries for the period.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

28,962

 

 

$

7,218

 

 

$

1,791

 

 

$

(909

)

 

$

—

 

 

$

378

 

 

$

37,440

 

Total interest expense

 

 

3,476

 

 

 

1,655

 

 

 

663

 

 

 

(56

)

 

 

42

 

 

 

2,604

 

 

 

8,384

 

Net interest income (loss)

 

 

25,486

 

 

 

5,563

 

 

 

1,128

 

 

 

(853

)

 

 

(42

)

 

 

(2,226

)

 

 

29,056

 

Provision for loan losses

 

 

1,812

 

 

 

745

 

 

 

—

 

 

 

37,196

 

 

 

—

 

 

 

(4

)

 

 

39,749

 

Net interest income (loss) after loss
   provision

 

 

23,674

 

 

 

4,818

 

 

 

1,128

 

 

 

(38,049

)

 

 

(42

)

 

 

(2,222

)

 

 

(10,693

)

Sponsorship and race winning

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,962

 

 

 

—

 

 

 

8,962

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,636

)

 

 

—

 

 

 

(2,636

)

Other income (expense), net

 

 

(7,246

)

 

 

(2,700

)

 

 

(712

)

 

 

(9,738

)

 

 

(2,503

)

 

 

(1,148

)

 

 

(24,047

)

Net income (loss) before taxes

 

 

16,428

 

 

 

2,118

 

 

 

416

 

 

 

(47,787

)

 

 

3,781

 

 

 

(3,370

)

 

 

(28,414

)

Income tax (provision) benefit

 

 

(4,201

)

 

 

(541

)

 

 

(104

)

 

 

11,908

 

 

 

(942

)

 

 

2,261

 

 

 

8,381

 

Net income (loss)

 

$

12,227

 

 

$

1,577

 

 

$

312

 

 

$

(35,879

)

 

$

2,839

 

 

$

(1,109

)

 

$

(20,033

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

774,956

 

 

$

310,691

 

 

$

68,042

 

 

$

33,521

 

 

$

—

 

 

$

3,334

 

 

$

1,190,544

 

Total assets

 

 

788,459

 

 

 

321,084

 

 

 

80,247

 

 

 

142,450

 

 

 

40,112

 

 

 

231,923

 

 

 

1,604,275

 

Total funds borrowed

 

 

628,528

 

 

 

255,778

 

 

 

65,906

 

 

 

113,009

 

 

 

8,652

 

 

 

199,312

 

 

 

1,271,185

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.22

%

 

 

2.06

%

 

 

1.49

%

 

 

(85.70

%)

 

 

31.97

%

 

 

(8.78

%)

 

 

(5.69

%)

Return on average equity

 

 

31.11

 

 

 

10.29

 

 

 

6.82

 

 

 NM

 

 

 NM

 

 

 

(54.58

)

 

 

(29.77

)

Interest yield

 

 

14.97

 

 

 

9.73

 

 

 

10.51

 

 

 

(5.34

)

 

 N/A

 

 

 N/A

 

 

 

11.23

 

Net interest margin

 

 

13.18

 

 

 

7.50

 

 

 

6.62

 

 

 

(3.89

)

 

 N/A

 

 

 N/A

 

 

 

8.72

 

Reserve coverage

 

 

3.48

 

 

 

1.51

 

 

 

—

 

(1)

 

63.28

 

 

 N/A

 

 

 N/A

 

 

 

7.07

 

Delinquency status(2)

 

 

0.52

 

 

 

0.03

 

 

 

2.67

 

(1)

 

8.31

 

 

 N/A

 

 

 N/A

 

 

 

1.07

 

Charge-off ratio

 

 

0.44

 

 

 

0.09

 

 

 

(0.02

)

(3)

 

89.89

 

 

 N/A

 

 

 N/A

 

 

 

5.36

 
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.

 

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended
September 30, 2020
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corp. and
Other
Investments

 

 

Consolidated

 

Total interest income

 

$

82,525

 

 

$

19,431

 

 

$

5,275

 

 

$

86

 

 

$

—

 

 

$

1,253

 

 

$

108,570

 

Total interest expense

 

 

10,268

 

 

 

4,178

 

 

 

1,937

 

 

 

2,781

 

 

 

122

 

 

 

6,933

 

 

 

26,219

 

Net interest income (loss)

 

 

72,257

 

 

 

15,253

 

 

 

3,338

 

 

 

(2,695

)

 

 

(122

)

 

 

(5,680

)

 

 

82,351

 

Provision for loan losses

 

 

20,705

 

 

 

3,041

 

 

 

—

 

 

 

49,489

 

 

 

—

 

 

 

(4

)

 

 

73,231

 

Net interest income (loss) after loss
   provision

 

 

51,552

 

 

 

12,212

 

 

 

3,338

 

 

 

(52,184

)

 

 

(122

)

 

 

(5,676

)

 

 

9,120

 

Sponsorship and race winning

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,161

 

 

 

—

 

 

 

15,161

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,584

)

 

 

—

 

 

 

(6,584

)

Other income (expense), net

 

 

(21,115

)

 

 

(7,002

)

 

 

(2,191

)

 

 

(20,603

)

 

 

(5,726

)

 

 

(8,842

)

 

 

(65,479

)

Net income (loss) before taxes

 

 

30,437

 

 

 

5,210

 

 

 

1,147

 

 

 

(72,787

)

 

 

2,729

 

 

 

(14,518

)

 

 

(47,782

)

Income tax (provision) benefit

 

 

(7,783

)

 

 

(1,332

)

 

 

(286

)

 

 

18,138

 

 

 

(680

)

 

 

4,426

 

 

 

12,483

 

Net income (loss)

 

$

22,654

 

 

$

3,878

 

 

$

861

 

 

$

(54,649

)

 

$

2,049

 

 

$

(10,092

)

 

$

(35,299

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

774,956

 

 

$

310,691

 

 

$

68,042

 

 

$

33,521

 

 

$

—

 

 

$

3,334

 

 

$

1,190,544

 

Total assets

 

 

788,459

 

 

 

321,084

 

 

 

80,247

 

 

 

142,450

 

 

 

40,112

 

 

 

231,923

 

 

 

1,604,275

 

Total funds borrowed

 

 

628,528

 

 

 

255,778

 

 

 

65,906

 

 

 

113,009

 

 

 

8,652

 

 

 

199,312

 

 

 

1,271,185

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.04

%

 

 

1.84

%

 

 

1.37

%

 

 

(38.80

%)

 

 

8.27

%

 

 

(5.45

%)

 

 

(3.43

%)

Return on average equity

 

 

20.20

 

 

 

9.19

 

 

 

6.56

 

 

 

(192.88

)

 

 NM

 

 

 

(22.64

)

 

 

(17.02

)

Interest yield

 

 

14.99

 

 

 

9.62

 

 

 

10.58

 

 

 

0.13

 

 

 N/A

 

 

 N/A

 

 

 

11.31

 

Net interest margin

 

 

13.13

 

 

 

7.53

 

 

 

6.69

 

 

 

(4.12

)

 

 N/A

 

 

 N/A

 

 

 

8.58

 

Reserve coverage

 

 

3.48

 

 

 

1.51

 

 

 

—

 

(1)

 

63.28

 

 

 N/A

 

 

 N/A

 

 

 

7.07

 

Delinquency status(2)

 

 

0.52

 

 

 

0.03

 

 

 

2.67

 

(1)

 

8.31

 

 

 N/A

 

 

 N/A

 

 

 

1.07

 

Charge-off ratio

 

 

1.96

 

 

 

0.44

 

 

 

(0.01

)

(3)

 

26.21

 

 

 N/A

 

 

 N/A

 

 

 

3.30

 
(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. 
v3.21.2
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Investments All Other Investments [Abstract]  
Summary of Carrying Values and Fair Values of Financial Instruments The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

 

September 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

Carrying Amount

 

 

Fair Value

 

 

Carrying Amount

 

 

Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and federal funds sold(1)

 

$

85,374

 

 

$

85,374

 

 

$

112,040

 

 

$

112,040

 

Equity investments

 

 

10,214

 

 

 

10,214

 

 

 

9,746

 

 

 

9,746

 

Investment securities

 

 

47,511

 

 

 

47,511

 

 

 

46,792

 

 

 

46,792

 

Loans receivable

 

 

1,372,233

 

 

 

1,372,233

 

 

 

1,172,290

 

 

 

1,172,290

 

Accrued interest receivable(2)

 

 

9,646

 

 

 

9,646

 

 

 

10,338

 

 

 

10,338

 

Equity securities(3)

 

 

1,969

 

 

 

1,969

 

 

 

—

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed(4)

 

 

1,425,518

 

 

 

1,425,518

 

 

 

1,312,255

 

 

 

1,312,591

 

Accrued interest payable(2)

 

 

3,047

 

 

 

3,047

 

 

 

4,673

 

 

 

4,673

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1,250 and $1,500 in interest bearing deposits categorized as level 2 as of September 30, 2021 and December 31, 2020. See Note 13.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 13.
(3)
Included within other assets on the balance sheet.
(4)
There were no publicly traded retail notes as of September 30, 2021. As of December 31, 2020, publicly traded retail notes traded at a premium to par of $336.
v3.21.2
Fair Value of Assets and liabilities (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

47,511

 

 

 

—

 

 

 

47,511

 

Equity securities

 

 

1,969

 

 

 

—

 

 

 

—

 

 

 

1,969

 

Total(1)

 

$

1,969

 

 

$

48,761

 

 

$

—

 

 

$

50,730

 
(1)
Total unrealized loss of $141 and $719, net of tax, was included in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 related to these assets.

December 31, 2020
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,500

 

 

$

—

 

 

$

1,500

 

Available for sale investment securities(1)

 

 

—

 

 

 

46,792

 

 

 

—

 

 

 

46,792

 

Total

 

$

—

 

 

$

48,292

 

 

$

—

 

 

$

48,292

 
(1)
Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets.
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020.

September 30, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,214

 

 

$

10,214

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

36,501

 

 

 

36,501

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

42,544

 

 

 

42,544

 

Total

 

$

—

 

 

$

—

 

 

$

89,259

 

 

$

89,259

 

 

 

December 31, 2020
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,746

 

 

$

9,746

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

62,174

 

 

 

62,174

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

54,560

 

 

 

54,560

 

Total

 

$

—

 

 

$

—

 

 

$

126,480

 

 

$

126,480

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

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)

 

Fair Value at 9/30/21

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

9,668

 

 

Investee financial
   analysis

 

Financial condition and
   operating performance
   of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

546

 

 

Precedent market
   transaction

 

Offering price

 

 $8.73 / share

Impaired loans

 

 

36,501

 

 

Market approach

 

Historical and actual loss
   experience

 

1.50% - 6.00%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

 $0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

 N/A

Loan collateral in process of
   foreclosure

 

 

42,544

 

 

 Market approach

 

Transfer prices (2)

 

 $0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

 $6.8 - 79.5

 

(Dollars in thousands)

 

Fair Value at 12/31/20

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

8,291

 

 

Investee financial
   analysis

 

Financial condition and
   operating performance
   of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

1,455

 

 

Precedent market
   transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

62,174

 

 

Market approach

 

Historical and actual loss
   experience

 

1.50% - 6.00%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

 $0.6 - 108.7

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of
   foreclosure

 

 

53,128

 

 

 Market approach

 

Transfer prices (2)

 

 $0.6 - 108.7

 

 

 

1,432

 

 

 

 

Collateral value (3)

 

 $0.7 - 32.3

(1)
Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
(2)
Represents amount net of liquidation costs.
(3)
Relates to the recreation portfolio. 
v3.21.2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2021
USD ($)
Medallion
Dec. 31, 2020
USD ($)
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 $ 1,069,875 $ 2,932,000
Medallion Financing Trust I [Member]    
Subsidiary or Equity Method Investee [Line Items]    
Aggregate assets of trust $ 36,083,000  
v3.21.2
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Aug. 31, 2019
Mar. 31, 2019
Apr. 02, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Interest-bearing funds deposited in other banks $ 1,250,000       $ 1,250,000          
Non-marketable securities $ 10,214,000       $ 10,214,000   $ 9,746,000      
Number of share sold 500,000 1,166,667                
Proceed from sale shares of investment $ 3,000,000 $ 3,816,000                
Gain on sale of investment 2,727,000 $ 3,179,000                
Number of shares held in equity securities         1,000,000          
Equity securities, at cost 546,000       $ 546,000          
Investment securities Amortized to interest income 40,000     $ 85,000 121,000 $ 219,000        
Net loan origination costs         25,658,000   20,684,000      
Net amortization to income 2,037,000     1,681,000 5,757,000 4,572,000        
Premiums in loan portfolio 28,385,000       $ 28,385,000   40,541,000      
Percentage of write down of loan balance         40.00%          
Loans pledged as collateral 0       $ 0   15,367,000      
Principal portion of loans serviced, fair value 20,477,000       20,477,000   107,131,000      
Loans write down to collateral value 3,978,000     19,686,000 $ 27,075,000 38,894,000        
Intangible assets useful life         20 years          
Goodwill 150,803,000       $ 150,803,000   150,803,000      
Intangible assets, net 50,007,000       50,007,000   51,090,000      
Amortization of intangible assets 362,000     362,000 1,083,000 1,084,000        
Financing receivable, recorded investment, 90 days past due and still accruing 0       0   0      
Depreciation and amortization 79,000     142,000 238,000 403,000        
Amortization expense 576,000     648,000 1,814,000 $ 1,957,000        
Deferred costs 7,098,000       $ 7,098,000   $ 5,805,000      
Potential dilutive common shares excluded from EPS computation         26,000 834,684        
Stock based compensation award           165,674        
Stock based compensation award         317,398 335,773        
Stock based compensation award, Amount $ 602,000     $ 508,000 $ 1,676,000 $ 1,495,000        
Stock based compensation award per diluted common share $ 0.02     $ 0.02 $ 0.07 $ 0.06        
Unrecognized compensation cost related to unvested stock options and restricted stock $ 2,866,000       $ 2,866,000          
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period         42 months          
Tier 1 leverage capital to total assets ratio   15.00%                
Tier 1 leverage capital ratio 18.21%       18.21%          
Capital conversation buffer         2.50%   2.50%      
Restricted Shares [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Stock based compensation award     163,561   163,561   229,408      
Restricted Stock Units [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Stock based compensation award 16,803       47,156          
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 $ 685,000       $ 685,000   $ 2,717,000      
Loan portfolio premium amortized to interest income 150,000     $ 893,000 2,032,000 $ 1,401,000        
Medallion Bank [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Amortization of intangible assets             0      
Additional impairment of intangible assets         0          
New York City [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Loans write down to collateral value         79,500,000          
91+ [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Premiums in loan portfolio 4,109,000       4,109,000   6,878,000      
91+ [Member] | Loans [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Premiums in loan portfolio $ 4,109,000       $ 4,109,000   $ 6,878,000      
Total loans more than 90 days past due ,percentage 0.29%       0.29%   0.57%      
Bank Holding Company Accounting [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Net premium on investment securities         $ 301,000   $ 278,000      
Other Assets [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Equity securities, fair value $ 1,969,000       $ 1,969,000          
Equity Securities [Member]                    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                    
Interest reserve               $ 2,970,000 $ 2,970,000  
Purchased of equity securities with readily determinable fair value     $ 2,000,000              
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          
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          
v3.21.2
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Equity Securities Fv Ni Gain Loss [Abstract]    
Net losses recognized during the period on equity securities $ (0) $ (31)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ 0 $ (31)
v3.21.2
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Investments In Loans [Line Items]    
Intangibles assets $ 50,007,000 $ 51,090,000
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 18,150,000 18,974,000
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets 5,692,000 5,951,000
Race Organization [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 26,165,000 $ 26,165,000
v3.21.2
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Accounting Policies [Abstract]        
Net income (loss) resulting from operations available to common stockholders $ 15,940 $ (23,630) $ 34,638 $ (41,250)
Weighted average common shares outstanding applicable to basic EPS 24,634,845 24,461,488 24,583,573 24,440,067
Effect of dilutive stock options 98,906   82,522  
Effect of restricted stock grants 256,475   279,612  
Adjusted weighted average common shares outstanding applicable to diluted EPS 24,990,226 24,461,488 24,945,707 24,440,067
Basic income (loss) per share $ 0.65 $ (0.97) $ 1.41 $ (1.69)
Diluted income (loss) per share $ 0.64 $ (0.97) $ 1.39 $ (1.69)
v3.21.2
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
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 $ 188,459 $ 148,507
Tier 1 capital 257,247 217,295
Total capital 275,460 233,460
Average assets 1,412,494 1,283,664
Risk-weighted assets $ 1,422,321 $ 1,243,783
Leverage ratio 18.2 16.9
Common equity Tier 1 capital ratio 13.3 11.9
Tier 1 capital ratio 18.1 17.5
Total capital ratio 19.4 18.8
v3.21.2
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 46,873 $ 45,155
Gross Unrealized Gains 992 1,684
Gross Unrealized Losses (354) (47)
Fair Value 47,511 46,792
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 37,846 34,929
Gross Unrealized Gains 918 1,495
Gross Unrealized Losses (275) (45)
Fair Value 38,489 36,379
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 9,027 10,226
Gross Unrealized Gains 74 189
Gross Unrealized Losses (79) (2)
Fair Value $ 9,022 $ 10,413
v3.21.2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 933  
Amortized Cost, due after one year through five years 9,969  
Amortized Cost, due after five years through ten years 10,316  
Amortized Cost, due after ten years 25,655  
Amortized Cost 46,873 $ 45,155
Market Value, due in one year or less 939  
Market Value, due after one year through five years 10,266  
Market Value, due after five years through ten years 10,659  
Market Value, due after ten years 25,647  
Market Value, total $ 47,511 $ 46,792
v3.21.2
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (353) $ (45)
Fair Value, Less than Twelve Months 17,049 4,028
Gross Unrealized Losses, Twelve Months and Over (1) (2)
Fair Value, Twelve Months and Over 63 196
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (275) (45)
Fair Value, Less than Twelve Months 13,060 4,028
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (78)  
Fair Value, Less than Twelve Months 3,989  
Gross Unrealized Losses, Twelve Months and Over (1) (2)
Fair Value, Twelve Months and Over $ 63 $ 196
v3.21.2
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Jun. 30, 2021
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,393,336 [1] $ 1,205,776 [2]        
Allowance for loan losses (47,448) [3] (57,548) $ (46,946) $ (90,510) [3] $ (66,977) $ (46,093)
Net loans receivable 1,372,233 1,172,290   1,190,544    
Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 1,419,681 1,229,838 1,340,567 1,281,054 1,260,594 1,160,855
Allowance for loan losses (47,448) (57,548)        
Net loans receivable $ 1,372,233 $ 1,172,290        
Percentage of total gross loans 100.00% 100.00%        
Recreation [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 905,197 [1] $ 767,374 [2]        
Allowance for loan losses (31,556) (27,348)        
Recreation [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 933,790 $ 792,686 886,206 802,938 786,785 713,332
Percentage of total gross loans 66.00% 65.00%        
Home Improvement [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 401,021 [1] $ 336,885 [2]        
Allowance for loan losses (6,496) (5,157)        
Home Improvement [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 398,774 $ 334,033 368,257 315,442 282,072 247,324
Percentage of total gross loans 28.00% 27.00%        
Commercial [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 72,088 $ 65,327 69,520 71,369 71,476 69,767
Percentage of total gross loans 5.00% 5.00%        
Medallion [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 14,935 [1] $ 36,153 [2]        
Allowance for loan losses (9,396) (25,043)        
Medallion [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 14,934 $ 37,768 16,514 91,298 120,253 $ 130,432
Percentage of total gross loans 1.00% 3.00%        
Strategic Partnership [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 95 [1] $ 24 [2]        
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 95 $ 24 $ 70 $ 7 $ 8  
[1] Excludes loan premiums of $685 resulting from purchase price accounting and $25,658 of capitalized loan origination costs.
[2] Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
[3] As of September 30, 2021 and September 30, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.21.2
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     $ 1,205,776,000  
Charge-offs, net [2] $ (839,000) $ (16,216,000) (12,100,000) $ (28,814,000)
Transfer to loan collateral in process of foreclosure, net (2,482,000) (13,444,000) (13,145,000) (25,569,000)
Amortization of origination costs     (5,770,000) (4,572,000)
Paid-in-kind interest     682,000 940,000
Transfer to other foreclosed property     0 (1,800,000)
Gross loans, ending balance [3] 1,393,336,000   1,393,336,000  
Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     767,374,000  
Transfer to loan collateral in process of foreclosure, net (2,085,000) (2,833,000) (8,118,000) (10,615,000)
Gross loans, ending balance [3] 905,197,000   905,197,000  
Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     336,885,000  
Gross loans, ending balance [3] 401,021,000   401,021,000  
Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     36,153,000  
Transfer to loan collateral in process of foreclosure, net (397,000) [4] (10,611,000) (5,027,000) [4] (14,954,000)
Gross loans, ending balance [3] 14,935,000   14,935,000  
Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     24,000  
Charge-offs, net     0 0
Gross loans, ending balance [3] 95,000   95,000  
Bank Holding Company Accounting [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,340,567,000 1,260,594,000 1,229,838,000 1,160,855,000
Loan originations 195,768,000 137,091,000 554,722,000 396,446,000
Principal payments, sales, and maturities (116,646,000) (85,335,000) (342,610,000) (222,612,000)
Charge-offs, net 839,000 (16,216,000) (12,100,000) (28,814,000)
Transfer to loan collateral in process of foreclosure, net (2,482,000) (13,423,000) (13,145,000) (25,549,000)
Amortization of origination costs (2,146,000) (1,681,000) (5,868,000) (4,572,000)
Amortization of loan premium (150,000) (893,000) (2,032,000) (1,401,000)
FASB origination costs 3,743,000 2,411,000 10,194,000 7,561,000
Paid-in-kind interest 188,000 306,000 682,000 940,000
Transfer to other foreclosed property   (1,800,000)   (1,800,000)
Gross loans, ending balance 1,419,681,000 1,281,054,000 1,419,681,000 1,281,054,000
Bank Holding Company Accounting [Member] | Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 886,206,000 786,785,000 792,686,000 713,332,000
Loan originations 118,407,000 73,534,000 346,724,000 249,383,000
Principal payments, sales, and maturities (70,350,000) (54,161,000) (199,449,000) (140,688,000)
Charge-offs, net 335,000 (850,000) (1,334,000) (10,796,000)
Transfer to loan collateral in process of foreclosure, net (2,085,000) (2,833,000) (8,118,000) (10,615,000)
Amortization of origination costs (2,532,000) (2,093,000) (7,171,000) (5,853,000)
Amortization of loan premium (60,000) (49,000) (161,000) (152,000)
FASB origination costs 3,869,000 2,605,000 10,613,000 8,327,000
Gross loans, ending balance 933,790,000 802,938,000 933,790,000 802,938,000
Bank Holding Company Accounting [Member] | Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 368,257,000 282,072,000 334,033,000 247,324,000
Loan originations 68,692,000 62,515,000 179,743,000 140,693,000
Principal payments, sales, and maturities (38,571,000) (29,312,000) (115,369,000) (72,034,000)
Charge-offs, net 239,000 (65,000) (237,000) (897,000)
Amortization of origination costs 386,000 509,000 1,293,000 1,406,000
Amortization of loan premium (90,000) (81,000) (256,000) (248,000)
FASB origination costs (139,000) (196,000) (433,000) (802,000)
Gross loans, ending balance 398,774,000 315,442,000 398,774,000 315,442,000
Bank Holding Company Accounting [Member] | Commercial [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 69,520,000 71,476,000 65,327,000 69,767,000
Loan originations 5,700,000 900,000 20,916,000 6,075,000
Principal payments, sales, and maturities (3,332,000) (1,318,000) (14,861,000) (5,422,000)
Charge-offs, net   3,000   3,000
Amortization of origination costs   2,000 12,000 6,000
FASB origination costs 12,000   12,000  
Paid-in-kind interest 188,000 306,000 682,000 940,000
Gross loans, ending balance 72,088,000 71,369,000 72,088,000 71,369,000
Bank Holding Company Accounting [Member] | Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 16,514,000 120,253,000 37,768,000 130,432,000
Principal payments, sales, and maturities (1,449,000) (401,000) (5,663,000) (4,180,000)
Charge-offs, net 265,000 (15,304,000) (10,529,000) (17,124,000)
Transfer to loan collateral in process of foreclosure, net (397,000) (10,590,000) (5,027,000) (14,934,000)
Amortization of origination costs   (99,000) (2,000) (131,000)
Amortization of loan premium 0 (763,000) (1,615,000) (1,001,000)
FASB origination costs 1,000 2,000 2,000 36,000
Transfer to other foreclosed property   (1,800,000)   (1,800,000)
Gross loans, ending balance 14,934,000 91,298,000 14,934,000 91,298,000
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 70,000 8,000 24,000  
Loan originations 2,969,000 142,000 7,339,000 295,000
Principal payments, sales, and maturities (2,944,000) (143,000) (7,268,000) (288,000)
Gross loans, ending balance $ 95,000 $ 7,000 $ 95,000 $ 7,000
[1] Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
[2] As of September 30, 2021 and September 30, 2020, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $301,963 and $268,745, some of which may represent collection opportunities for the Company.
[3] Excludes loan premiums of $685 resulting from purchase price accounting and $25,658 of capitalized loan origination costs.
[4] As of September 30, 2021, medallion loans in the process of foreclosure included 565 medallions in the New York market, 66 medallions in the Newark market, 339 medallions in the Chicago market and 48 in various other markets.
v3.21.2
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance $ 46,946 $ 66,977 $ 57,548 $ 46,093
Total charge-offs (3,978) (19,686) (27,075) (38,894)
Total recoveries 4,817 3,470 14,975 10,080
Charge-offs, net [1] (839) (16,216) (12,100) (28,814)
Provision (benefit) for loan losses (337) 39,749 2,000 73,231
Allowance for loan losses - ending balance [2] 47,448 90,510 47,448 90,510
Recreation [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     27,348  
Total charge-offs (2,313) (3,595) (10,038) (17,546)
Total recoveries 2,648 2,745 8,704 6,750
Allowance for loan losses - ending balance 31,556   31,556  
Home Improvement [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     5,157  
Total charge-offs (523) (643) (1,990) (2,202)
Total recoveries 763 578 1,753 1,304
Allowance for loan losses - ending balance 6,496   6,496  
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Total recoveries   3   3
Medallion [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     25,043  
Total charge-offs (1,142) (15,448) (15,047) (19,146)
Total recoveries 1,406 $ 144 4,518 $ 2,023
Allowance for loan losses - ending balance $ 9,396   $ 9,396  
[1] As of September 30, 2021 and September 30, 2020, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $301,963 and $268,745, some of which may represent collection opportunities for the Company.
[2] As of September 30, 2021 and September 30, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.21.2
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Jun. 30, 2021
Dec. 31, 2020
 [1]
Jun. 30, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 42,544,000 [1] $ 48,742,000 $ 42,544,000 [1] $ 48,742,000 $ 49,039,000 $ 54,560,000 $ 47,375,000 $ 52,711,000
Net charge-offs [2] 839,000 16,216,000 12,100,000 28,814,000        
Strategic Partnership [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Net charge-offs     0 0        
Medallion Bank [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 301,963,000 $ 268,745,000 $ 301,963,000 $ 268,745,000        
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $4,793 as of September 30, 2021 and $3,535 as of December 31, 2020.
[2] As of September 30, 2021 and September 30, 2020, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $301,963 and $268,745, some of which may represent collection opportunities for the Company.
v3.21.2
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
 [1]
Jun. 30, 2020
Dec. 31, 2019
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 47,448 [1] $ 46,946 $ 57,548 $ 90,510 $ 66,977 $ 46,093
Percentage of Allowance 100.00%   100.00%      
Allowance as a Percent of Loan Category 3.34%   4.68%      
Allowance as a Percent of Nonaccrual 132.13%   93.17%      
Recreation [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 31,556   $ 27,348      
Percentage of Allowance 66.00%   48.00%      
Allowance as a Percent of Loan Category 3.38%   3.45%      
Allowance as a Percent of Nonaccrual 87.88%   378.20%      
Home Improvement [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 6,496   $ 5,157      
Percentage of Allowance 14.00%   9.00%      
Allowance as a Percent of Loan Category 1.63%   1.54%      
Allowance as a Percent of Nonaccrual 18.09%          
Medallion [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 9,396   $ 25,043      
Percentage of Allowance 20.00%   43.00%      
Allowance as a Percent of Loan Category 62.92%   66.31%      
Allowance as a Percent of Nonaccrual 26.17%   68.01%      
[1] As of September 30, 2021 and September 30, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.21.2
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Receivables [Abstract]    
Total nonaccrual loans $ 35,910 $ 61,767
Interest foregone quarter to date 377 2,306
Amount of foregone interest applied to principal in the quarter 115 595
Interest foregone year to date 1,187 3,311
Amount of foregone interest applied to principal year to date 358 602
Interest foregone life to date 3,274 5,252
Amount of foregone interest applied to principal life to date $ 886 $ 792
Percentage of nonaccrual loans to gross loan portfolio 3.00% 5.00%
Percentage of allowance for loan losses to nonaccrual loans 132.00% 93.00%
v3.21.2
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,419,681 $ 1,229,838
Percentage of Nonperforming to Total 2.57% 5.06%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,383,180 $ 1,167,664
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 36,501 62,174
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 933,790 $ 792,686
Percentage of Nonperforming to Total 0.54% 0.96%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 928,769 $ 785,047
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 5,021 7,639
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 398,774 $ 334,033
Percentage of Nonperforming to Total 0.04% 0.05%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 398,613 $ 333,862
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 161 171
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 72,088 $ 65,327
Percentage of Nonperforming to Total 22.73% 25.40%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 55,703 $ 48,731
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 16,385 16,596
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 14,934 $ 37,768
Percentage of Nonperforming to Total 100.00% 100.00%
Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 14,934 $ 37,768 [1]
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 95 24
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 95 $ 24
[1] Includes medallion loan premiums of $1,615 at December 31, 2020.
v3.21.2
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]    
Loan premiums $ 85 $ 2,717
Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loan premiums   $ 1,615
v3.21.2
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance $ 36,501   $ 36,501   $ 62,174
Unpaid principal balance, With related allowance 37,387   37,387   62,778
Related Allowance, With related allowance 9,569   9,569   25,310
Average Investment Recorded, With related allowance 38,056 $ 113,759 38,819 $ 114,383  
Interest Income Recognized, With related allowance 148 288 425 1,469  
Recreation [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 5,021   5,021   7,639
Unpaid principal balance, With related allowance 5,021   5,021   7,639
Related Allowance, With related allowance 170   170   264
Average Investment Recorded, With related allowance 4,423 6,730 4,641 6,882  
Interest Income Recognized, With related allowance 148 167 425 428  
Home Improvement [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 161   161   171
Unpaid principal balance, With related allowance 161   161   171
Related Allowance, With related allowance 3   3   3
Average Investment Recorded, With related allowance 161 103 151 103  
Interest Income Recognized, With related allowance       2  
Commercial [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 16,385   16,385   16,596
Unpaid principal balance, With related allowance 16,400   16,400   16,600
Average Investment Recorded, With related allowance 16,531 16,894 16,926 17,002  
Interest Income Recognized, With related allowance       47  
Medallion [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 14,934   14,934   37,768
Unpaid principal balance, With related allowance 15,805   15,805   38,368
Related Allowance, With related allowance 9,396   9,396   $ 25,043
Average Investment Recorded, With related allowance $ 16,941 90,032 $ 17,101 90,396  
Interest Income Recognized, With related allowance   $ 121   $ 992  
v3.21.2
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 28,385 $ 40,541
Current 1,364,951 1,165,235
Total 1,393,336 [1] 1,205,776 [2]
Accruing 0 0
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 17,718 24,890
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,558 8,773
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 4,109 6,878
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 25,193 34,983
Current 880,004 732,391
Total 905,197 [1] 767,374 [2]
Accruing 0 0
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 16,603 22,058
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,525 7,582
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,065 5,343
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,309 1,201
Current 399,712 335,684
Total 401,021 [1] 336,885 [2]
Accruing 0 0
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 794 813
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 355 218
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 160 170
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 75
Current 72,014 65,265
Total 72,088 [1] 65,340 [2]
Accruing 0 0
Commercial Loans [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due   973
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 75
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,809 4,282
Current 13,126 31,871
Total 14,935 [1] 36,153 [2]
Accruing 0 0
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 321 2,019
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 678  
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 810 1,290
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Current 95 24
Total 95 [1] 24 [2]
Accruing 0 $ 0
Strategic Partnership [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 0  
[1] Excludes loan premiums of $685 resulting from purchase price accounting and $25,658 of capitalized loan origination costs.
[2] Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
v3.21.2
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Receivables [Abstract]    
Loan premiums $ 85 $ 2,717
Capitalized loan origination costs $ 25,658 $ 21,345
v3.21.2
Loans and Allowance for Loan Losses - Additional Information (Detail)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2020
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2020
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2020
USD ($)
TDR
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]                    
Weighted average loan-to-value ratio 287.00%   287.00%   287.00%     327.00%    
Allowance for loan loss $ 47,448 [1] $ 90,510 [1] $ 47,448 [1] $ 90,510 [1] $ 47,448 [1] $ 90,510 [1] $ 46,946 $ 57,548 $ 66,977 $ 46,093
Medallion [Member]                    
Financing Receivable Recorded Investment Past Due [Line Items]                    
Number of loans modified as TDRs defaulted | TDR 1 3 11 33            
Allowance for loan loss $ 9,396   $ 9,396   9,396     25,043    
Recreation [Member]                    
Financing Receivable Recorded Investment Past Due [Line Items]                    
Number of loans modified as TDRs defaulted | TDR 8 18 47 57            
Allowance for loan loss $ 31,556   $ 31,556   $ 31,556     $ 27,348    
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]                    
Financing Receivable Recorded Investment Past Due [Line Items]                    
Number of loans modified as TDRs defaulted | TDR         12 69        
TDR investment value 1,694,000 $ 29,296,000 1,694,000 $ 29,296,000 $ 1,694,000 $ 29,296,000        
Allowance for loan loss 130,000 20,420,000 $ 130,000 20,420,000 $ 130,000 $ 20,420,000        
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]                    
Financing Receivable Recorded Investment Past Due [Line Items]                    
Number of loans modified as TDRs defaulted | TDR     0   37 56        
TDR investment value 389,000 558,000 $ 389,000 558,000 $ 389,000 $ 558,000        
Allowance for loan loss $ 13,000 $ 19,000 $ 13,000 $ 19,000 $ 13,000 $ 19,000        
[1] As of September 30, 2021 and September 30, 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.21.2
Loans and Allowance for Loan Losses - Summary of TDRs (Detail)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2020
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2020
USD ($)
TDR
Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of Loans | TDR 8 18 47 57
Pre- Modification Investment $ 94 $ 254 $ 568 $ 722
Post- Modification Investment $ 55 $ 229 $ 525 $ 510
Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of Loans | TDR 1 3 11 33
Pre- Modification Investment $ 77 $ 448 $ 3,071 $ 14,089
Post- Modification Investment $ 77 $ 448 $ 3,071 $ 14,089
v3.21.2
Loans and Allowance for Loan Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance $ 49,039 $ 47,375 $ 54,560 [1] $ 52,711
Transfer from loans, net 2,482 13,444 13,145 25,569
Sales (3,194) (1,697) (7,713) (5,984)
Cash payments received (4,525) (426) (8,948) (2,318)
Collateral valuation adjustments (1,258) (9,954) (8,500) (21,236)
Loans collateral in process of foreclosure - ending balance 42,544 [1] 48,742 42,544 [1] 48,742
Recreation [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 882 1,258 1,432 1,476
Transfer from loans, net 2,085 2,833 8,118 10,615
Sales (1,554) (1,697) (5,842) (5,684)
Collateral valuation adjustments (640) (1,395) (2,935) (5,408)
Loans collateral in process of foreclosure - ending balance 773 999 773 999
Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 48,157 [2] 46,117 53,128 [2] 51,235
Transfer from loans, net 397 [2] 10,611 5,027 [2] 14,954
Sales (1,640) [2]   (1,871) [2] (300)
Cash payments received (4,525) [2] (426) (8,948) [2] (2,318)
Collateral valuation adjustments (618) [2] (8,559) (5,565) [2] (15,828)
Loans collateral in process of foreclosure - ending balance $ 41,771 [2] $ 47,743 $ 41,771 [2] $ 47,743
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $4,793 as of September 30, 2021 and $3,535 as of December 31, 2020.
[2] As of September 30, 2021, medallion loans in the process of foreclosure included 565 medallions in the New York market, 66 medallions in the Newark market, 339 medallions in the Chicago market and 48 in various other markets.
v3.21.2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
2022 $ 451,720  
2023 217,403  
2024 317,507  
2025 131,798  
2026 203,590  
Thereafter 102,750  
Long term debt [1] $ 1,424,768 $ 1,312,005
Interest Rate [2] 1.90%  
Deposits [Member]    
Debt Instrument [Line Items]    
2022 [3] $ 443,666  
2023 [3] 212,403  
2024 [3] 266,598  
2025 [3] 117,798  
2026 [3] 158,340  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,198,805 1,067,822
Interest Rate [2] 1.26%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2023 $ 5,000  
2024 14,909  
2025 14,000  
2026 14,000  
Thereafter 16,000  
Long term debt [1] $ 63,909 68,008
Interest Rate [2] 2.92%  
Retail and Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2022 $ 0  
2023 0  
2024 36,000  
2026 31,250  
Thereafter 53,750  
Long term debt [1] $ 121,000 103,225
Interest Rate [2] 7.66%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
2022 [1]   33,000
2023 $ 0  
2024 0  
2025 0  
2026 0  
Thereafter 33,000  
Long term debt [1] $ 33,000  
Interest Rate [2] 2.24%  
Other Borrowings [Member]    
Debt Instrument [Line Items]    
2022 $ 8,054  
2023 0  
2024 0  
2025 0  
2026 0  
Thereafter 0  
Long term debt [1] $ 8,054 8,689
Interest Rate [2] 2.00%  
Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
2023 $ 0  
2024 0  
2025 0  
2026 0  
Thereafter 0  
Long term debt [1] $ 0 $ 31,261
Interest Rate [2] 0.00%  
[1] Excludes deferred financing costs of $7,098 and $5,805 as of September 30, 2021 and December 31, 2020.
[2] Weighted average contractual rate as of September 30, 2021.
[3] Balance excludes $750 and $250 of strategic partner reserve deposits as of September 30, 2021 and December 31, 2020.
v3.21.2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]    
Deferred costs $ 7,098,000 $ 5,805,000
Reserve Deposits $ 750,000 $ 250,000
v3.21.2
Funds Borrowed - Additional Information (Detail)
 1 Months Ended 3 Months Ended 9 Months Ended
Feb. 28, 2021
USD ($)
Jul. 31, 2020
USD ($)
Jun. 17, 2020
USD ($)
Dec. 31, 2007
USD ($)
Jun. 30, 2007
USD ($)
shares
Mar. 31, 2021
USD ($)
Mar. 31, 2019
USD ($)
Nov. 30, 2018
USD ($)
Apr. 30, 2016
USD ($)
Sep. 30, 2021
USD ($)
shares
Sep. 30, 2020
USD ($)
Mar. 31, 2019
USD ($)
Sep. 30, 2021
USD ($)
Deposit
shares
Sep. 30, 2020
USD ($)
Apr. 30, 2021
USD ($)
Mar. 15, 2021
USD ($)
Dec. 31, 2020
USD ($)
shares
Aug. 31, 2019
USD ($)
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.                   $ 8,738,000,000     $ 8,738,000,000            
Aggregate principal amount $ 25,000,000         $ 5,207,000                     $ 33,600,000    
Debt instrument interest rate Percentage 7.25%                                    
Maturity date Feb. 28, 2026 Sep. 24, 2024                     Dec. 31, 2027            
Principal amount of loan                                     $ 33,485,000
Debt instrument remaining amount   $ 16,500,000                                  
Debt instrument face amount   25,000,000                                  
Commitment fee amount   $ 250,000                                  
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion                   4,750,000,000     $ 4,750,000,000            
Capital contribution                   $ 9,500,000     $ 9,500,000            
Issue of common stock | shares                   28,033,404     28,033,404       27,828,871    
Gain on debt extinguishment           $ 1,767,000       $ 2,859,000 $ 23,000   $ 4,626,000 $ 23,000          
Short term promissory note                   8,054,000     $ 8,054,000       $ 87,334,000    
CARES Act [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument face amount     $ 747,000                                
Annual interest rate     1.00%                                
Maturity term     5 years                                
Richard Petty [Member]                                      
Debt Instrument [Line Items]                                      
Maturity date                         Mar. 31, 2022            
Loan amount                   7,554,000     $ 7,554,000            
Annual interest rate                         2.00%            
Travis Burt [Member]                                      
Debt Instrument [Line Items]                                      
Maturity date                         Dec. 31, 2021            
Short term promissory note                   500,000     $ 500,000            
Dz Bank [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate Percentage               4.00%                      
Debt instrument face amount               $ 1,400,000                      
Debt instrument expiration date               2023-12                      
Debt instrument, frequency of periodic payment               quarterly                      
Debt instrument periodic payment of principal and accrued interest               $ 70,000                      
Debenture Mature 2021 [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument commitments drawn                   8,500,000,000     $ 8,500,000,000            
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                         0.13%            
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]                                      
Debt instrument interest rate Percentage                   3.25%     3.25%            
Loan commitment term                         4 years 6 months            
Commitment fee percentage                         1.00%            
Principal amount of loan                                     34,024,756
Extended maturity date                         Apr. 30, 2024            
Debt instrument commitments amount fully utilized                   $ 183,985,000     $ 183,985,000            
Debt instrument commitments available                   16,500,000     16,500,000            
Debt instrument outstanding amount                   63,909,000     63,909,000            
Debt instrument remaining amount                   9,909,000,000     9,909,000,000            
FSVC's [Member]                                      
Debt Instrument [Line Items]                                      
Principal amount of loan                                     $ 34,024,756
7.25% Unsecured Senior Notes Due February 2026 [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount                             $ 3,000,000 $ 3,250,000      
7.50% Unsecured Senior Notes Due December 2027 [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount                             $ 11,650,000 $ 8,500,000      
Notes Payable to Banks Due in April 2021 [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount                   17,762,000     17,762,000            
Notes Payable to Banks with Maturity of April 15, 2021 [Member]                                      
Debt Instrument [Line Items]                                      
Maturity date           Apr. 15, 2021                          
Notes Payable to Banks with Maturity of September 1, 2021 [Member]                                      
Debt Instrument [Line Items]                                      
Maturity date           Sep. 01, 2021                          
Retail and Privately Placed Notes [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount             $ 30,000,000   $ 33,625,000     $ 30,000,000           $ 6,000,000  
Debt instrument interest rate Percentage             8.25%   9.00%     8.25%         7.50%    
Maturity date             2024   2021                    
Gain loss on sales of loans net                       $ 4,145,000              
Net proceeds from offering                 $ 31,786,000                    
Minimum [Member]                                      
Debt Instrument [Line Items]                                      
Time deposits                   $ 250,000     $ 250,000            
Brokerage [Member] | Maximum [Member]                                      
Debt Instrument [Line Items]                                      
Average brokerage fee percentage in relation to the maturity of deposits                         0.15%            
v3.21.2
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Sep. 30, 2021
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 157,023
Over three months through six months 89,027
Over six months through one year 197,616
Over one year 755,139
Total Deposits $ 1,198,805
v3.21.2
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Leases [Abstract]        
Operating lease costs $ 571 $ 596 $ 1,715 $ 1,788
Operating cash flows from operating leases 481 632 1,780 1,994
Right-of-use asset obtained in exchange for lease liability $ (41) $ (14) $ (76) $ (42)
v3.21.2
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating lease right-of-use assets $ 10,277 $ 11,737
Other current liabilities 2,140 2,004
Operating lease liabilities 9,346 11,018
Total operating lease liabilities $ 11,486 $ 13,022
Weighted average remaining lease term 5 years 8 months 12 days 6 years 4 months 24 days
Weighted average discount rate 5.55% 5.54%
v3.21.2
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Leases [Abstract]    
Remainder of 2021 $ 612  
2022 2,411  
2023 2,356  
2024 2,373  
2025 2,390  
Thereafter 3,521  
Total lease payments 13,663  
Less imputed interest 2,177  
Total operating lease liabilities $ 11,486 $ 13,022
v3.21.2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (44,022) $ (44,799)
Provision for loan losses 12,550 19,556
Net operating loss carryforwards [1] 18,745 30,493
Accrued expenses, compensation, and other assets 2,309 1,174
Unrealized gains on other investments (10) (6,769)
Total deferred tax liability (10,408) (345)
Valuation allowance [2] (2,295) (462)
Deferred tax liability, net $ (12,703) $ (807)
[1] As of September 30, 2021, the Company and its subsidiaries had an estimated $77,838 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $16,450 as of September 30, 2021.
[2] During the nine months ended September 30, 2021, it was determined that the likelihood of utilization of certain net operating losses was remote and a valuation allowance of $1,833 was assessed against these assets.
v3.21.2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail)
$ in Thousands
 9 Months Ended
Sep. 30, 2021
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Valuation allowance $ 1,833
Medallion Chicago [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 77,838
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards $ 16,450
Medallion Chicago [Member] | December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1,712
v3.21.2
Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Current        
Federal $ (1,359)   $ (2,154)  
State (721) $ (83) (991) $ (306)
Deferred        
Federal (3,198) 5,940 (9,252) 9,239
State (889) 2,524 (4,176) 3,550
Net (provision) benefit for income taxes $ (6,167) $ 8,381 $ (16,573) $ 12,483
v3.21.2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Tax Disclosure [Abstract]        
Statutory Federal income tax (provision) benefit at 21% $ (4,807) $ 5,967 $ (11,331) $ 10,034
State and local income taxes, net of federal income tax benefit (942) 1,201 (2,217) 1,961
Valuation allowance against net operating losses 0   (1,833)  
Change in effective state income tax rates and accrual (110) 939 (1,479) 790
Income attributable to non-controlling interest 183 522 449 356
Non deductible expenses (132) (211) 81 (1,000)
Other (359) 1,841 (243) 1,922
Net (provision) benefit for income taxes $ (6,167) $ 8,381 $ (16,573) $ 12,483
v3.21.2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Income Tax Disclosure [Abstract]    
Statutory Federal income tax (provision) benefit percentage 21.00% 21.00%
v3.21.2
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Jun. 15, 2018
Sep. 30, 2021
Mar. 31, 2021
Jun. 30, 2021
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Mar. 01, 2016
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Stock option outstanding   1,186,586 1,264,315 1,209,642 1,186,586   951,669 550,040      
Stock option exercisable [1]   326,116     326,116            
Unvested shares under restricted common stock plan   860,470 902,952 861,818 860,470   773,362        
Weighted average fair value of options granted     $ 6.79                
Number of shares, granted           165,674          
Intrinsic value of options vested   $ 0     $ 77,000            
Restricted Stock Units [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares outstanding, unvested restricted stock units   16,803     16,803            
Number of shares outstanding, vested restricted stock units   47,472     47,472            
Number of shares vested with deferred settlement         47,272            
Restricted Stock Units [Member] | Vest on June 17, 2022 [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares outstanding, unvested restricted stock units   16,803     16,803            
Number of shares, granted         16,803            
Exercise price for grant per share         $ 8.87            
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares outstanding, unvested restricted stock units             47,156        
Number of shares, granted             47,156        
Exercise price for grant per share             $ 3.16        
Restricted Shares [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares outstanding, unvested restricted stock units   436,295 [2] 452,522 442,190 436,295 [2]   416,140 284,879      
Weighted average fair value of options granted         $ 3.24 $ 3.30          
Number of shares, granted     163,561   163,561   229,408        
Exercise price for grant per share     $ 6.79       $ 6.21        
2018 Equity Incentive Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant 241,919 2,210,968     2,210,968            
Shares were rolled into the 2018 Plan   438,132     438,132            
2015 Restricted Stock Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant                 700,000    
Unvested shares under restricted common stock plan   860,470     860,470            
2006 Stock Option Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Issuance of maximum number of shares approved                     800,000
Number of additional shares available for issuance   0     0            
2006 Stock Option Plan [Member] | Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Share based compensation, options term         10 years            
2015 Director Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant 258,334                 300,000  
2015 Director Plan [Member] | Non Employee Director One [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant 12,000                    
2015 Director Plan [Member] | Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Share based compensation, options term 10 years                    
Amended Director Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant   200,000     200,000            
Number of additional shares available for issuance   0     0            
Amended Director Plan [Member] | Director [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant   9,000     9,000            
Amended Director Plan [Member] | Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Share based compensation, options term       10 years              
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2021 and the related exercise price of the underlying options, was $1,590,000 for outstanding options and $463,000 for exercisable options as of September 30, 2021. The remaining contractual life was 8.27 years for outstanding options and 7.21 years for exercisable options at September 30, 2021.
[2] The aggregate fair value of the restricted stock was $3,421,000 as of September 30, 2021. The remaining vesting period was 3.43 years at September 30, 2021.
v3.21.2
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]    
Risk free interest rate 0.97% 1.46%
Expected dividend yield 0.00%  
Expected life of option in years [1] 6 years 3 months 6 years 3 months
Expected volatility [2] 53.98% 50.18%
[1] Expected life is calculated using the simplified method.
[2] We determine our expected volatility based on our historical volatility
v3.21.2
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of options beginning balance 1,209,642 1,264,315 951,669 550,040
Granted   0 317,398 444,557
Cancelled (1,981) (32,446) (3,984) (42,928)
Exercised (21,075) [1] (22,227) [1] (768)  
Number of options ending balance 1,186,586 1,209,642 1,264,315 951,669
Options exercisable [2] 326,116      
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14 $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance 12.55 12.55 12.55 13.53
Exercise price per share, granted     6.79  
Exercise price per share, lower range limit ending balance 2.14 2.14 2.14 2.14
Exercise price per share, upper range limit ending balance 12.55 12.55 12.55 12.55
Exercise price per share, option exercisable lower range limit [2] 2.14      
Exercise price per share, option exercisable upper range limit [2] 12.55      
Weighted average exercise price, beginning balance 6.53 6.50 6.41 6.58
Weighted average exercise price, granted 0 0 6.79 6.24
Weighted average exercise price, cancelled 5.85 5.98 6.89 6.91
Weighted average exercise price, exercised 5.34 [1] 5.76 [1] 6.79  
Weighted average exercise price, ending balance 6.55 6.53 6.50 6.41
Weighted average exercise price, options exercisable [2] 6.61      
Minimum [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Exercise price per share, granted       4.89
Exercise price per share, cancelled 4.89 4.89 6.55 2.22
Exercise price per share, exercised 5.21 [1] 5.27 [1] 6.55  
Maximum [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Exercise price per share, granted       6.68
Exercise price per share, cancelled 7.25 7.25 7.25 $ 13.53
Exercise price per share, exercised $ 7.25 [1] $ 7.25 [1] $ 7.25  
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $77,000 and $152,000 for the three and nine months ended September 30, 2021. There was no intrinsic value for the three and nine months ended September 30, 2020.
[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2021 and the related exercise price of the underlying options, was $1,590,000 for outstanding options and $463,000 for exercisable options as of September 30, 2021. The remaining contractual life was 8.27 years for outstanding options and 7.21 years for exercisable options at September 30, 2021.
v3.21.2
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward        
Aggregate intrinsic value for option exercised $ 77,000 $ 0 $ 152,000 $ 0
Aggregate intrinsic value of option outstanding 1,590,000   1,590,000  
Aggregate intrinsic value of option exercisable $ 463,000   $ 463,000  
Remaining contractual life of option outstanding     8 years 3 months 7 days  
Remaining contractual life of option exercisable     7 years 2 months 15 days  
v3.21.2
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, granted         165,674  
Grant price per share, cancelled, lower limit   $ 5.58 $ 6.55      
Grant price per share, cancelled, upper limit     $ 7.25      
Restricted Shares [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, beginning balance 442,190 452,522 416,140 416,140 284,879 284,879
Number of shares, granted     163,561 163,561   229,408
Number of shares, cancelled (687) (10,332) (7,602)     (8,755)
Number of shares, vested [1] (5,208)   (119,577)     (89,392)
Number of shares, ending balance 436,295 [2] 442,190 452,522 436,295 [2]   416,140
Grant price per share, lower range limit beginning balance $ 4.80 $ 4.80 $ 4.39 $ 4.39 $ 3.95 $ 3.95
Grant price per share, upper range limit beginning balance 7.25 7.25 7.25 7.25 7.25 7.25
Grant price per share, granted, lower limit 4.89         4.89
Grant price per share, granted, upper limit 7.25         6.68
Grant price per share, cancelled, lower limit   4.89 4.89     3.95
Grant price per share, cancelled, upper limit 4.80 [1] 7.25 7.25     7.25
Grant price per share, vested, lower limit [1]     4.39     3.95
Grant price per share, vested, upper limit [1]     7.25     6.55
Grant price per share, lower range limit ending balance 4.89 [2] 4.80 4.80 4.89 [2]   4.39
Grant price per share, upper range limit ending balance 7.25 [2] 7.25 7.25 7.25 [2]   7.25
Grant price per share, granted     6.79      
Weighted average grant price beginning balance 6.49 6.48 6.24 6.24 $ 6.01 6.01
Weighted average grant price, granted     6.79     6.21
Weighted average grant price, cancelled 5.40 6.13 5.96     6.93
Weighted average grant price, vested [1] 4.80   6.09     5.37
Weighted average grant price, ending balance $ 6.51 [2] $ 6.49 $ 6.48 $ 6.51 [2]   $ 6.24
[1] The aggregate fair value of the restricted stock vested was $45,000 and $858,000 for the three and nine months ended September 30, 2021 and was $25,000 and 579,000 for the three and nine months ended September 30, 2020.
[2] The aggregate fair value of the restricted stock was $3,421,000 as of September 30, 2021. The remaining vesting period was 3.43 years at September 30, 2021.
v3.21.2
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Aggregate fair value of restricted stock vested $ 45,000 $ 25,000 $ 858,000 $ 579,000
Aggregate fair value of restricted stock outstanding $ 3,421,000   $ 3,421,000  
Remaining vesting period of restricted stock     3 years 5 months 4 days  
v3.21.2
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward          
Number of options beginning balance 861,818 902,952 773,362 773,362  
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross   0 317,398   444,557
Number of options, cancelled (1,348) (33,134) (2,530)    
Number of options, vested   (8,000) (185,278)    
Number of options ending balance 860,470 861,818 902,952 860,470 773,362
Exercise price per share beginning balance, Lower limit $ 4.89 $ 4.89 $ 4.89 $ 4.89  
Exercise price per share beginning balance, Upper limit 7.25 7.25 7.25 7.25  
Exercise price per share, Granted     6.79    
Exercise price per share, Cancelled, Lower limit 4.89 4.89 6.55    
Exercise price per share, Cancelled, Upper limit 7.25 7.25 7.25    
Exercise price per share, Vested, Lower limit   5.58 6.55    
Exercise price per share, Vested, Upper limit     7.25    
Exercise price per share ending balance, Lower limit 4.89 4.89 4.89 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 7.25 7.25 7.25 7.25 7.25
Weighted average exercise price 6.53 6.50 6.42 6.42  
Weighted average exercise price, granted     6.79    
Weighted average exercise price, cancelled 5.40 5.99 6.96    
Weighted average exercise price, vested   5.58 6.67    
Weighted average exercise price $ 6.53 $ 6.53 $ 6.50 $ 6.53 $ 6.42
v3.21.2
Segment Reporting - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2021
Segment
Dec. 31, 2020
Segment Reporting Disclosure [Line Items]    
Number of business segments 6  
Number of operating segments 4  
Number of non-operating segments 2  
Common equity Tier 1 capital ratio 13.3 11.9
Operating Segments [Member]    
Segment Reporting Disclosure [Line Items]    
Common equity Tier 1 capital ratio 20  
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 28.00%  
Swimming Pools [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 26.00%  
Windows [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 13.00%  
Solar Panels [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 15.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 8.00%  
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Recreational Vehicles [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 60.00%  
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 20.00%  
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Trailers [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 9.00%  
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Midwest [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 62.00%  
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | New York City [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 85.00%  
v3.21.2
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 41,497     $ 37,440     $ 115,953 $ 108,570  
Total interest expense 7,426     8,384     23,718 26,219  
Net interest income (loss) 34,071     29,056     92,235 82,351  
Provision for loan losses (337)     39,749     2,000 73,231  
Net interest income (loss) after loss provision 34,408     (10,693)     90,235 9,120  
Sponsorship and race winnings 3,335     8,962     10,153 15,161  
Race team related expenses (2,424)     (2,636)     (7,219) (6,584)  
Other income (expense), net (12,428)     (24,047)     (39,210) (65,479)  
Net income (loss) before taxes 22,891     (28,414)     53,959 (47,782)  
Income tax (provision) benefit (6,167)     8,381     (16,573) 12,483  
Net income (loss) 16,724 $ 11,592 $ 9,071 (20,033) $ (2,265) $ (13,001) 37,386 (35,299)  
Balance Sheet Data                  
Total loans, net 1,372,233     1,190,544     1,372,233 1,190,544 $ 1,172,290
Total assets 1,805,234     1,604,275     1,805,234 1,604,275 $ 1,642,411
Total funds borrowed $ 1,424,142     $ 1,271,185     $ 1,424,142 $ 1,271,185  
Selected Financial Ratios                  
Return on average assets 3.73%     (5.69%)     2.73% (3.43%)  
Return on average equity 19.81%     (29.77%)     14.47% (17.02%)  
Interest yield 11.55%     11.23%     11.56% 11.31%  
Net interest margin 9.48%     8.72%     9.19% 8.58%  
Reserve coverage 3.34%     7.07%     3.34% 7.07%  
Delinquency status 0.29%     1.07%     0.29% 1.07%  
Charge-off ratio 0.38%     5.36%     (1.17%) 3.30%  
RPAC [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 0           $ 0    
Total interest expense 38     $ 42     113 $ 122  
Net interest income (loss) (38)     (42)     (113) (122)  
Provision for loan losses 0           0    
Net interest income (loss) after loss provision (38)     (42)     (113) (122)  
Sponsorship and race winnings 3,335     8,962     10,153 15,161  
Race team related expenses (2,424)     (2,636)     (7,219) 6,584  
Other income (expense), net (2,066)     (2,503)     (5,689) (5,726)  
Net income (loss) before taxes (1,193)     3,781     (2,868) 2,729  
Income tax (provision) benefit 299     (942)     720 (680)  
Net income (loss) (894)     2,839     (2,148) 2,049  
Balance Sheet Data                  
Total loans, net 0           0    
Total assets 30,969     40,112     30,969 40,112  
Total funds borrowed $ 8,054     $ 8,652     $ 8,054 $ 8,652  
Selected Financial Ratios                  
Return on average assets (11.28%)     31.97%     (8.89%) 8.27%  
Return on average equity (11.08%)           (386.73%)    
Operating Segments [Member]                  
Selected Financial Ratios                  
Charge-off ratio       (3.00%)          
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 30,529     $ 28,962     $ 86,857 $ 82,525  
Total interest expense 2,305     3,476     7,962 10,268  
Net interest income (loss) 28,224     25,486     78,895 72,257  
Provision for loan losses 916     1,812     5,546 20,705  
Net interest income (loss) after loss provision 27,308     23,674     73,349 51,552  
Sponsorship and race winnings 0           0    
Race team related expenses 0           0    
Other income (expense), net (8,856)     (7,246)     (21,774) (21,115)  
Net income (loss) before taxes 18,452     16,428     51,575 30,437  
Income tax (provision) benefit (4,752)     (4,201)     (13,281) (7,783)  
Net income (loss) 13,700     12,227     38,294 22,654  
Balance Sheet Data                  
Total loans, net 902,234     774,956     902,234 774,956  
Total assets 916,109     788,459     916,109 788,459  
Total funds borrowed $ 712,474     $ 628,528     $ 712,474 $ 628,528  
Selected Financial Ratios                  
Return on average assets 6.09%     6.22%     6.08% 4.04%  
Return on average equity 30.46%     31.11%     30.39% 20.20%  
Interest yield 13.78%     14.97%     14.05% 14.99%  
Net interest margin 12.74%     13.18%     12.76% 13.13%  
Reserve coverage 3.38%     3.48%     3.38% 3.48%  
Delinquency status 0.34%     0.52%     0.34% 0.52%  
Charge-off ratio (0.15%)     0.44%     0.22% 1.96%  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 8,586     $ 7,218     $ 24,732 $ 19,431  
Total interest expense 958     1,655     3,309 4,178  
Net interest income (loss) 7,628     5,563     21,423 15,253  
Provision for loan losses 369     745     1,575 3,041  
Net interest income (loss) after loss provision 7,259     4,818     19,848 12,212  
Sponsorship and race winnings 0           0    
Race team related expenses 0           0    
Other income (expense), net (3,437)     (2,700)     (7,989) (7,002)  
Net income (loss) before taxes 3,822     2,118     11,859 5,210  
Income tax (provision) benefit (951)     (541)     (3,054) (1,332)  
Net income (loss) 2,871     1,577     8,805 3,878  
Balance Sheet Data                  
Total loans, net 392,278     310,691     392,278 310,691  
Total assets 405,439     321,084     405,439 321,084  
Total funds borrowed $ 296,509     $ 255,778     $ 296,509 $ 255,778  
Selected Financial Ratios                  
Return on average assets 2.89%     2.06%     3.20% 1.84%  
Return on average equity 14.43%     10.29%     16.02% 9.19%  
Interest yield 9.04%     9.73%     9.37% 9.62%  
Net interest margin 8.03%     7.50%     8.11% 7.53%  
Reserve coverage 1.63%     1.51%     1.63% 1.51%  
Delinquency status 0.04%     0.03%     0.04% 0.03%  
Charge-off ratio 0.25%     0.09%     0.09% 0.44%  
Operating Segments [Member] | Commercial Lending [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 2,055     $ 1,791     $ 4,920 $ 5,275  
Total interest expense 662     663     1,950 1,937  
Net interest income (loss) 1,393     1,128     2,970 3,338  
Provision for loan losses 0           0    
Net interest income (loss) after loss provision 1,393     1,128     2,970 3,338  
Sponsorship and race winnings 0           0    
Race team related expenses 0           0    
Other income (expense), net 636     712     107 (2,191)  
Net income (loss) before taxes 2,029     416     3,077 1,147  
Income tax (provision) benefit (510)     (104)     (773) (286)  
Net income (loss) 1,519     312     2,304 861  
Balance Sheet Data                  
Total loans, net 70,232     68,042     70,232 68,042  
Total assets 92,257     80,247     92,257 80,247  
Total funds borrowed $ 73,806     $ 65,906     $ 73,806 $ 65,906  
Selected Financial Ratios                  
Return on average assets 6.60%     1.49%     3.68% 1.37%  
Return on average equity 32.99%     6.82%     18.38% 6.56%  
Interest yield 12.04%     10.51%     10.56% 10.58%  
Net interest margin 8.16%     6.62%     6.37% 6.69%  
Reserve coverage             (0.00%)    
Delinquency status 0.10%     2.67%     0.10% 2.67%  
Charge-off ratio       (0.02%)       (0.01%)  
Operating Segments [Member] | Medallion Lending [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 1     $ (909)     $ (1,543) $ 86  
Total interest expense 2,009     (56)     5,903 2,781  
Net interest income (loss) (2,008)     (853)     (7,446) (2,695)  
Provision for loan losses (1,944)     37,196     (5,931) 49,489  
Net interest income (loss) after loss provision (64)     (38,049)     (1,515) (52,184)  
Sponsorship and race winnings 0           0    
Race team related expenses 0           0    
Other income (expense), net 2,073     (9,738)     (1,228) (20,603)  
Net income (loss) before taxes 2,009     (47,787)     (2,743) (72,787)  
Income tax (provision) benefit (504)     11,908     689 (18,138)  
Net income (loss) 1,505     (35,879)     (2,054) (54,649)  
Balance Sheet Data                  
Total loans, net 5,538     33,521     5,538 33,521  
Total assets 93,683     142,450     93,683 142,450  
Total funds borrowed $ 74,941     $ 113,009     $ 74,941 $ 113,009  
Selected Financial Ratios                  
Return on average assets (6.12%)     (85.70%)     (2.52%) (38.80%)  
Return on average equity (30.62%)           12.60% (192.88%)  
Interest yield (0.09%)     (5.34%)     23.55% 0.13%  
Net interest margin (139.64%)     (3.89%)     113.66% (4.12%)  
Reserve coverage 49.98%     63.28%     49.98% 63.28%  
Delinquency status 5.42%     8.31%     5.42% 8.31%  
Charge-off ratio 43.01%     89.89%     143.94% 26.21%  
Intersegment Eliminations [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 326     $ 378     $ 987 $ 1,253  
Total interest expense 1,454     2,604     4,481 6,933  
Net interest income (loss) (1,128)     (2,226)     (3,494) (5,680)  
Provision for loan losses 322     (4)     810 (4)  
Net interest income (loss) after loss provision (1,450)     (2,222)     (4,304) (5,676)  
Sponsorship and race winnings 0           0    
Race team related expenses 0                
Other income (expense), net (778)     (1,148)     (2,637) (8,842)  
Net income (loss) before taxes (2,228)     (3,370)     (6,941) (14,518)  
Income tax (provision) benefit 251     2,261     (874) 4,426  
Net income (loss) (1,977)     (1,109)     (7,815) (10,092)  
Balance Sheet Data                  
Total loans, net 1,951     3,334     1,951 3,334  
Total assets 266,777     231,923     266,777 231,923  
Total funds borrowed $ 258,358     $ 199,312     $ 258,358 $ 199,312  
Selected Financial Ratios                  
Return on average assets (2.65%)     (8.78%)     (3.68%) (5.45%)  
Return on average equity (19.79%)     (54.58%)     (27.18%) (22.64%)  
v3.21.2
Commitments and Contingencies - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2021
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2025
Future minimum payments $ 10,896,000
v3.21.2
Related Party Transactions - Additional Information (Detail) - USD ($)
 1 Months Ended 3 Months Ended 9 Months Ended
Mar. 01, 2021
Jan. 31, 2020
Jun. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Related Party Transaction [Line Items]          
Repayments of note payable       $ 470,168,000 $ 414,501,000
LAX Group,LLC [Member] | Senior Vice President [Member]          
Related Party Transaction [Line Items]          
Salary from related party $ 195,000        
Officer [Member] | LAX Group,LLC [Member]          
Related Party Transaction [Line Items]          
Salary from related party   $ 178,000 $ 133,000    
Consulting services revenue from related party   $ 4,200      
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member]          
Related Party Transaction [Line Items]          
Equity ownership percentage by a related party   10.00%      
Common stock vesting percentage   3.34%      
Percentage of equity raised from outside investors   5.00%      
Percentage of bonus received from related party   10.00%      
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | Minimum [Member]          
Related Party Transaction [Line Items]          
Valuation of equity raised from outside investors   $ 1,500,000      
Petty Trust [Member] | RPAC [Member]          
Related Party Transaction [Line Items]          
Annual payment for services provided to the entity       700,000  
Note payable to the Petty Trust       $ 7,554,000  
Interest percentage of Notes payable       2.00%  
Repayments of note payable       $ 0  
v3.21.2
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financial assets    
Equity investments $ 10,214 $ 9,746
Investment securities 47,511 46,792
Loans receivable 1,419,681 1,229,838
Carrying Amount [Member]    
Financial assets    
Cash, cash equivalents and federal funds sold [1] 85,374 112,040
Equity investments 10,214 9,746
Investment securities 47,511 46,792
Loans receivable 1,372,233 1,172,290
Accrued interest receivable [2] 9,646 10,338
Equity securities, fair value [3] 1,969  
Financial liabilities    
Funds borrowed [4] 1,425,518 1,312,255
Accrued interest payable [2] 3,047 4,673
Fair Value Recurring [Member]    
Financial assets    
Cash, cash equivalents and federal funds sold [1] 85,374 112,040
Equity investments 10,214 9,746
Investment securities 47,511 46,792
Loans receivable 1,372,233 1,172,290
Accrued interest receivable [2] 9,646 10,338
Equity securities, fair value [3] 1,969  
Financial liabilities    
Funds borrowed [4] 1,425,518 1,312,591
Accrued interest payable [2] $ 3,047 $ 4,673
[1] Categorized as level 1 within the fair value hierarchy, excluding $1,250 and $1,500 in interest bearing deposits categorized as level 2 as of September 30, 2021 and December 31, 2020. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
[4] There were no publicly traded retail notes as of September 30, 2021. As of December 31, 2020, publicly traded retail notes traded at a premium to par of $336.
v3.21.2
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,250,000  
Publicly traded retail notes traded at a premium to par 0 $ 336,000
Fair Value Recurring [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks 1,250,000 1,500,000
Fair Value Recurring [Member] | Level 2 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,250,000 $ 1,500,000
v3.21.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Assets    
Interest-bearing deposits $ 1,250,000  
Fair Value Recurring [Member]    
Assets    
Interest-bearing deposits 1,250,000 $ 1,500,000
Available for sale investment securities 47,511,000 46,792,000 [1]
Equity securities, fair value [2] 1,969,000  
Total 50,730,000 [3] 48,292,000
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,969,000  
Total [3] 1,969,000  
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250,000 1,500,000
Available for sale investment securities 47,511,000 46,792,000 [1]
Total $ 48,761,000 [3] $ 48,292,000
[1] Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets.
[2] Included within other assets on the balance sheet.
[3] Total unrealized loss of $141 and $719, net of tax, was included in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 related to these assets.
v3.21.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]                
Net change in unrealized losses on investments, net of tax $ 141 $ (27) $ 605 $ 53 $ (981) $ (147) $ 719 $ 1,013
v3.21.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Assets            
Impaired loans $ 20,477,000   $ 107,131,000      
Mortgage Loans In Process Of Foreclosure Amount 42,544,000 [1] $ 49,039,000 54,560,000 [1] $ 48,742,000 $ 47,375,000 $ 52,711,000
Fair Value, Nonrecurring            
Assets            
Equity investments 10,214,000   9,746,000      
Impaired loans 36,501,000   62,174,000      
Mortgage Loans In Process Of Foreclosure Amount 42,544,000   54,560,000      
Total 89,259,000   126,480,000      
Fair Value, Nonrecurring | Level 3 [Member]            
Assets            
Equity investments 10,214,000   9,746,000      
Impaired loans 36,501,000   62,174,000      
Mortgage Loans In Process Of Foreclosure Amount 42,544,000   54,560,000      
Total $ 89,259,000   $ 126,480,000      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $4,793 as of September 30, 2021 and $3,535 as of December 31, 2020.
v3.21.2
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 9 Months Ended 12 Months Ended
Sep. 30, 2021
USD ($)
$ / shares
Dec. 31, 2020
USD ($)
$ / shares
Jun. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value $ 20,477,000 $ 107,131,000        
Loan collateral in process of foreclosure $ 42,544,000 [1] $ 54,560,000 [1] $ 49,039,000 $ 48,742,000 $ 47,375,000 $ 52,711,000
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity Value | $ / shares $ 8.73 $ 8.73        
Impaired Loans [Member] | Market Approach [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Impaired loans, balance percentage 0.60 0.60        
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Impaired loans value 0.0150 0.0150        
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Impaired loans value 0.0600 0.0600        
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value $ 0.0 $ 600        
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value 79,500 108,700        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 6,800 700        
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 79,500 32,300        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 0.0 600        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 79,500 108,700        
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity investments [2] 9,668,000 8,291,000        
Level 3 [Member] | Impaired Loans [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity investments 546,000 1,455,000        
Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value 36,501,000 62,174,000        
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure [3]   1,432,000        
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure [4] $ 42,544,000 $ 53,128,000        
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $4,793 as of September 30, 2021 and $3,535 as of December 31, 2020.
[2] Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
[3] Relates to the recreation portfolio
[4] Represents amount net of liquidation costs.
v3.21.2
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
 9 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Sep. 30, 2021
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  
v3.21.2
Variable Interest Entities - Additional Information (Detail) - USD ($)
 9 Months Ended
Feb. 28, 2021
Jul. 31, 2020
Oct. 31, 2018
Sep. 30, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]          
Variable interest entity net gain     $ 25,325,000    
Equity investments       $ 10,214,000 $ 9,746,000
Maturity date Feb. 28, 2026 Sep. 24, 2024   Dec. 31, 2027  
Medallion Financing Trust I [Member]          
Variable Interest Entity [Line Items]          
Promissory note payable     $ 1,400,000    
Taxi Medallion Loan Trust III [Member]          
Variable Interest Entity [Line Items]          
Equity investments       $ 0