MEDALLION FINANCIAL CORP, 10-K filed on 14 Mar 22
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v3.22.0.1
Document and Entity Information - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Mar. 11, 2022
Document and Entity Information [Line Items]    
Document Type 10-K  
Amendment Flag false  
Document Annual Report true  
Document Transition Report false  
Document Period End Date Dec. 31, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus FY  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Well-known Seasoned Issuer No  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   25,543,325
Entity Public Float $ 182,908,826  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
ICFR Auditor Attestation Flag true  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-37747  
Entity Tax Identification Number 04-3291176  
Entity Address, Address Line One 437 MADISON AVENUE, 38th Floor  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10022  
City Area Code 212  
Local Phone Number 328-2100  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Definitive Proxy Statement for its 2022 Annual Meeting of Shareholders, for which a Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2021, are incorporated by reference into Part III of this Form 10-K.

  
Auditor Firm ID 339  
Auditor Name Mazars USA LLP  
Auditor Location New York, New York  
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Assets    
Cash and cash equivalents [1] $ 64,482 $ 54,743
Federal funds sold 60,002 57,297
Investment securities 44,772 46,792
Equity investments 9,726 9,746
Loans 1,488,924 1,229,838
Allowance for loan losses [2] (50,166) (57,548)
Net loans receivable 1,438,758 1,172,290
Goodwill 150,803 150,803
Loan collateral in process of foreclosure [3] 37,430 54,560
Intangible assets, net 23,480 51,090
Property, equipment, and right-of-use lease asset, net 11,762 12,404
Accrued interest receivable 10,621 10,338
Income tax receivable 833 1,757
Other assets 20,388 20,591
Total assets 1,873,057 1,642,411
Liabilities    
Deposits [4] 1,250,880 1,065,398
Long-term Debt [5] 219,973 153,718
Deferred tax liabilities, net 18,210 807
Operating lease liabilities 9,053 11,018
Accrued interest payable 3,395 4,673
Short-term borrowings 0 87,334
Accounts payable and accrued expenses [6] 15,718 14,902
Total liabilities 1,517,229 1,337,850
Commitments and contingencies
Stockholders’ equity    
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding) 0 0
Common stock (50,000,000 shares of $0.01 par value stock authorized- XX shares at December 31, 2021 and 27,828,871 shares at December 31, 2020 issued) 281 278
Additional paid in capital 280,038 277,539
Treasury stock (2,951,243 shares at December 31, 2021 and December 31, 2020) (24,919) (24,919)
Accumulated other comprehensive income (loss) 1,034 2,012
Retained earnings (accumulated deficit) 30,606 (23,502)
Total stockholders’ equity 287,040 231,408
Non-controlling interest in consolidated subsidiaries 68,788 73,153
Total equity 355,828 304,561
Total liabilities and equity $ 1,873,057 $ 1,642,411
Number of shares outstanding 25,173,386 24,877,628
Book value per share $ 11.40 $ 9.30
[1] Includes restricted cash of $3.0 million as of December 31, 2021 and 2020.
[2] As of December 31, 2021 and 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 $7.4 million and $3.5 million as of December 31, 2021 and 2020.
[4] Includes $3.2 million and $2.7 million of deferred financing costs as of December 31, 2021 and 2020. Refer to Note 5 for more details.
[5] Includes $4.0 million and $3.1 million of deferred financing costs as of December 31, 2021 and 2020. Refer to Note 5 for more details.
[6] Includes the short-term portion of lease liabilities of $2.2 million and $2.0 million as of December 31, 2021 and 2020. Refer to Note 6 for more details.
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 28,124,629 27,828,871
Treasury stock,shares 2,951,243 2,951,243
Restricted cash $ 3.0 $ 3.0
Loan collateral in process of foreclosure, financed sales collateral to third parties 7.4 3.5
Short term lease liabilities 2.2 2.0
Deposits [Member]    
Deferred financing costs 3.2 2.7
Long-Term Debt [Member]    
Deferred financing costs $ 4.0 $ 3.1
v3.22.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Interest and fees on loans $ 157,990 $ 143,701 $ 130,167
Interest and dividends on investment securities 976 1,208 2,225
Medallion lease income 0 53 170
Total interest income /total investment income [1] 158,966 144,962 132,562
Interest on deposits 17,543 22,330 22,521
Interest on short-term borrowings 690 2,006 3,242
Interest on long-term debt 12,907 9,815 9,282
Total interest expense [2] 31,140 34,151 35,045
Net interest income (loss) 127,826 110,811 97,517
Provision for loan losses 4,622 69,817 47,386
Net interest income (loss) after provision (benefit) for loan losses 123,204 40,994 50,131
Other income (loss)      
Sponsorship and race winnings, net 12,567 20,042 18,742
Gain (loss) on equity investments 17,379 (2,985) 0
Writedown of loan collateral in process of foreclosure (5,592) (24,523) 4,381
Gain on extinguishment of debt 4,626 4,145
Other income 2,586 1,530 1,881
Total other income (loss), net 31,566 (5,936) 20,387
Other expenses      
Salaries and employee benefits 31,591 28,172 24,971
Race team related expenses 9,559 8,366 8,996
Loan servicing fees 7,013 6,737 5,253
Professional fees 5,311 8,047 7,402
Collection costs 5,279 5,454 6,638
Rent expense 2,454 2,833 2,419
Regulatory fees 1,872 1,822 1,722
Amortization of intangible assets 1,445 1,445 1,446
Travel, meals, and entertainment 634 375 1,138
Other expenses 7,741 8,788 8,196
Total other expenses 72,899 72,039 68,181
Income (loss) before income taxes 81,871 (36,981) 2,337
Income tax (provision) benefit (24,217) 10,074 (341)
Net income (loss) after taxes 57,654 (26,907) 1,996
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 57,654 (26,907) 1,996
Less: income attributable to the non-controlling interest 3,546 7,876 3,758
Total net income (loss) attributable to Medallion Financial Corp. $ 54,108 $ (34,783) $ (1,762)
Basic net income (loss) per share $ 2.20 $ (1.42) $ (0.07)
Diluted net income loss per share 2.17 (1.42) (0.07)
Distributions declared per share $ 0 $ 0 $ 0
Weighted average common shares outstanding      
Basic 24,599,804 24,445,452 24,342,979
Diluted 24,943,169 24,445,452 24,342,979
[1] Included in interest and investment income is $0.8 million, $1.2 million, and $0.8 million of paid-in-kind interest for the years ended December 31, 2021, 2020, and 2019.
[2] Average borrowings outstanding were $1,370.7 million, $1,258.5 million and $1,138.7 million as of December 31, 2021, 2020, and 2019 and the related average borrowing costs were 2.28%, 2.71%, and 3.08% for the years ended December 31, 2021, 2020, and 2019.
v3.22.0.1
Consolidated Statements of Operations (Parenthetical) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Interest paid in kind $ 800,000 $ 1,200,000 $ 800,000
Average borrowings outstanding $ 1,370,700 $ 1,258,500,000 $ 1,138,700,000
Average borrowing costs rate 2.28% 2.71% 3.08%
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Consolidated Statements of Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income (loss) after taxes $ 57,654 $ (26,907) $ 1,996
Other comprehensive income (loss), net of tax (978) 1,013 1,081
Total comprehensive income (loss) 56,676 (25,894) 3,077
Less: comprehensive income attributable to the non-controlling interest 3,546 7,876 3,758
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 53,130 $ (33,770) $ (681)
v3.22.0.1
Consolidated Statement of Changes in Stockholders' Equity and Changes in Net Assets - 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, 2018 $ 290,204 $ 274 $ 274,292 $ (24,919) $ 13,043 $ (82) $ 262,608 $ 27,596
Balance, shares at Dec. 31, 2018   27,385,600   (2,951,243)        
Net income (loss) 1,996       (1,762)   (1,762) 3,758
Non-controlling interest equity raised by Medallion Bank 42,485             42,485
Distributions to non-controlling interest (2,519)             (2,519)
Stock-based compensation $ 1,221 $ 2 1,219       1,221  
Issuance of restricted stock, net, shares   216,148            
Forfeiture of restricted stock, net, shares   (3,946)            
Exercise of stock options,shares [1] 0              
Net change in unrealized gains (losses) on investments, net of tax $ 1,081         1,081 1,081  
Ending balance at Dec. 31, 2019 334,468 $ 276 275,511 $ (24,919) 11,281 999 263,148 71,320
Ending balance, shares at Dec. 31, 2019   27,597,802   (2,951,243)        
Net income (loss) (26,907)       (34,783) 0 (34,783) 7,876
Distributions to non-controlling interest (6,043)             (6,043)
Stock-based compensation $ 2,030 $ 2 2,028       2,030  
Issuance of restricted stock, net, shares   229,408            
Forfeiture of restricted stock, net, shares   (8,755)            
Issuance of restricted stock units, net, shares   10,416            
Exercise of stock options,shares [1] 0              
Net change in unrealized gains (losses) on investments, net of tax $ 1,013         1,013 1,013  
Ending balance at Dec. 31, 2020 $ 304,561 $ 278 277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Ending balance, shares at Dec. 31, 2020 24,877,628 27,828,871   (2,951,243)        
Net income (loss) $ 57,654       54,108 0 54,108 3,546
Distributions to non-controlling interest (6,516)             (6,516)
Disposition of RPAC (1,395)             (1,395)
Stock-based compensation 2,261 $ 3 2,258 2,261
Stock-based compensation,shares   0            
Issuance of restricted stock, net 0 $ 0 0 0 0 0 0 0
Issuance of restricted stock, net, shares   258,120            
Forfeiture of restricted stock, net 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares   (21,940)            
Issuance of restricted stock units, net, shares   15,508            
Exercise of stock options,value $ 241 241 241
Exercise of stock options,shares 44,070 [1] 44,070            
Net change in unrealized gains (losses) on investments, net of tax $ (978) (978) (978)
Ending balance at Dec. 31, 2021 $ 355,828 $ 281 $ 280,038 $ (24,919) $ 30,606 $ 1,034 $ 287,040 $ 68,788
Ending balance, shares at Dec. 31, 2021 25,173,386 28,124,629   (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 $0.2 million for the year ended December 31, 2021 and $0 for the years ended December 31, 2020, and 2019.
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes $ 57,654 $ (26,907) $ 1,996
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
Provision for loan losses 4,622 69,817 47,386
Paid-in-kind interest income (814) (1,188) (834)
Depreciation and amortization 6,519 7,714 7,499
Amortization of origination fees, net 7,996 6,022 4,952
(Decrease) increase in deferred and other tax liabilities, net 18,327 (8,776) 853
Net change in value of loan collateral in process of foreclosure 8,966 31,926 11,838
Net realized (gains) losses on sale of investments (17,380) 4,305 (1,820)
Net change in unrealized (appreciation) depreciation on investments 0   1,734
Stock-based compensation expense 2,261 2,030 1,221
Gain on extinguishment of debt (4,626) (4,145)
Increase in accrued interest receivable (283) (1,676) (1,249)
Gain on disposition of RPAC (715)    
Decrease (increase) in other assets (5,354) 2,223 2,838
Decrease (increase) in accounts payable and accrued expenses 2,694 (7,206) (8,024)
(Decrease) Increase in accrued interest payable (1,141) 422 690
Net cash provided by operating activities 78,726 78,706 64,935
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (760,790) (506,106) (471,069)
Proceeds from principal receipts, sales, and maturities of loans 464,448 321,831 251,653
Purchases of investments (19,354) (15,580) (10,507)
Proceeds from disposition of RPAC, net 17,676    
Proceeds from principal receipts, sales, and maturities of investments 35,647 15,399 7,119
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 24,052 13,499 16,294
Net cash used for investing activities (238,321) (170,957) (206,510)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from time deposits and funds borrowed 805,577 668,577 525,842
Repayments of time deposits and funds borrowed (627,263) (526,064) (414,277)
Purchase of federal funds 0   4,000
Repayments of federal funds 0   (4,000)
Non-controlling interest equity raised by Medallion Bank 0   42,485
Distributions to non-controlling interests (6,516) (6,043) (2,367)
Proceeds from the exercise of stock options 241    
Net cash provided by financing activities 172,039 136,470 151,683
NET INCREASE IN CASH AND CASH EQUIVALENTS 12,444 44,219 10,108
Cash and cash equivalents, beginning of period 112,040 [1] 67,821 [1] 57,713
Cash and cash equivalents, end of period [1] 124,484 112,040 67,821
SUPPLEMENTAL INFORMATION      
Cash paid during the period for interest 29,867 31,204 32,008
Cash paid during the period for income taxes 5,479 104 310
NON-CASH INVESTING      
Loans transferred to loan collateral in process of foreclosure, net 15,888 47,254 $ 31,348
Loans transferred to other foreclosed property $ 0 $ 1,800  
[1] Includes federal funds sold.
v3.22.0.1
Organization of Medallion Financial Corp. and its Subsidiaries
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

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

Medallion Financial Corp., or the Company, is a finance company organized as a Delaware corporation that reports as a bank holding company, but is not a bank holding company for regulatory purposes. The Company conducts its business through various wholly-owned subsidiaries including its primary operating company, Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities. The Bank is subject to competition from other financial institutions and to the regulations of certain federal and state agencies, and undergoes examinations by those agencies. The Bank was 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.

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.

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 $36.1 million at December 31, 2021, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.

MFC, through several wholly-owned subsidiaries, together, Medallion Chicago, purchased $8.7 million of City of Chicago taxi medallions out of foreclosure. The 159 taxi medallions are carried at a net realizable value of $1.0 million in other assets on the Company’s consolidated balance sheets at December 31, 2021, compared to a net realizable value of $2.9 million at December 31, 2020.

The Company had 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 were consolidated with the Company's financial results. On December 1, 2021, the Company completed a full divestiture of its investment in RPAC and all debt and equity securities were settled in full.

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.
v3.22.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

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

Principles of Consolidation

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

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

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $3.0 million 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. As of December 31, 2021, cash also includes $1.3 million of interest-bearing funds deposited in other banks, that are mainly callable, with original 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 14 and 15 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $9.7 million as of both December 31, 2021 and 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. For the year ended December 31, 2021, the Company determined that there was impairment of $0.8 million with respect to its equity investments and no impairment or observable price changes for the year ended December 31, 2020.

The Company sold approximately 80% of its investment in Upgrade, Inc. during 2021 for proceeds of $12.5 million and recognized a gain of $11.3 million on the sales during the year. As of December 31, 2021 the Company's remaining investment in Upgrade, Inc. had a cost of $0.3 million as of December 31, 2021.

During 2021, the Company purchased $2.0 million 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 $2.0 million as of December 31, 2021 are included in other assets on the consolidated balance sheet.

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

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

Net losses recognized during the period on equity securities

 

$

(50

)

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

 

$

(50

)

 

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 $0.3 million as of both December 31, 2021 and 2020, and $0.1 million, $0.3 million, and $0.1 million was amortized to interest income for the years ended December 31, 2021, 2020, and 2019. 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.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of December 31, 2021 and 2020, net loan origination costs were $26.1 million and $20.7 million. Net amortization to income for the years ended December 31, 2021, 2020, and 2019 were $7.7 million, $6.0 million, and $5.0 million.

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 $4.0 million or 0.28% of the total loan portfolio as of December 31, 2021, as compared to $6.9 million, or 0.57% as of 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 and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the relief period was extended to January 1, 2022, at which date relief was terminated. 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 December 31, 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 no loans pledged under borrowing arrangements as of December 31, 2021 and had $15.4 million of net loans pledged as collateral under borrowing arrangements as of 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 $20.5 million and $107.1 million as of December 31, 2021 and 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 December 31, 2021 and 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 December 31, 2021 and 2020, the Company had goodwill of $150.8 million, all of which related to the Bank. As of December 31, 2021 and 2020, the Company had intangible assets of $23.5 million and $51.1 million. During 2021, the Company disposed of its investment in RPAC, resulting in the removal of $26.2 million of intangible assets. The Company recognized $1.4 million of amortization expense on the intangible assets for each of the years ended December 31, 2021, 2020, and 2019. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0.5 million and $2.7 million were outstanding as of December 31, 2021 and 2020, and of which $2.2 million, $3.0 million, and $3.3 million was amortized to interest income for the years ended December 31, 2021, 2020, and 2019. Management

performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2021 and 2020, concluding that there was no impairment of these assets.

The following table details of the intangible assets as of December 31, 2021 and 2020:

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Brand-related intellectual property

 

$

17,874

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,606

 

 

 

5,951

 

Race organization

 

 

—

 

 

 

26,165

 

Total intangible assets

 

$

23,480

 

 

$

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 $0.3 million, $0.4 million, and $0.4 million for the years ended December 31, 2021, 2020, and 2019.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2.4 million, $2.6 million, and $2.3 million for the years ended December 31, 2021, 2020, and 2019. 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 $7.1 million and $5.8 million as of December 31, 2021 and 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.

 

 

Year Ended December 31,

 

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

 

2021

 

 

2020

 

 

2019

 

Net income (loss) available to common stockholders

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Weighted average common shares outstanding applicable
   to basic EPS

 

 

24,599,804

 

 

 

24,445,452

 

 

 

24,342,979

 

Effect of dilutive stock options

 

 

92,602

 

 

 

—

 

 

 

—

 

Effect of restricted stock grants

 

 

250,763

 

 

 

—

 

 

 

—

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

24,943,169

 

 

 

24,445,452

 

 

 

24,342,979

 

Basic income (loss) per share

 

$

2.20

 

 

$

(1.42

)

 

$

(0.07

)

Diluted income (loss) per share

 

 

2.17

 

 

 

(1.42

)

 

 

(0.07

)

Potentially dilutive common shares excluded from the above calculations aggregated 421,190 shares, 934,003 shares, and 462,180 shares as of December 31, 2021, 2020, and 2019.

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 years ended December 31, 2021, 2020, and 2019, the Company issued 258,120, 229,408, and 216,148 restricted shares of stock-based compensation awards, issued 317,398, 444,557, and 449,450 shares of other stock-based compensation awards, and issued 16,803, 47,156, and 26,040 restricted stock units; and recognized $2.3 million, $2.0 million, and $1.2 million, or $0.09, $0.08, and $0.05 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $3.0 million, which is expected to be recognized over the next 13 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 December 31, 2021, the Bank’s Tier 1 leverage ratio was 17.53%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

December 31,

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

2021

 

 

2020

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

193,459

 

 

$

148,507

 

Tier 1 capital

 

 

 

 

 

 

 

 

262,247

 

 

 

217,295

 

Total capital

 

 

 

 

 

 

 

 

281,211

 

 

 

233,460

 

Average assets

 

 

 

 

 

 

 

 

1,495,726

 

 

 

1,283,664

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,482,678

 

 

 

1,243,783

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

17.5

%

 

 

16.9

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.1

 

 

 

11.9

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.7

 

 

 

17.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

19.0

 

 

 

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

Recently Issued Accounting Standards

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

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. 
v3.22.0.1
Investment Securities
 12 Months Ended
Dec. 31, 2021
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of December 31, 2021 and 2020.

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

35,469

 

 

$

672

 

 

$

(403

)

 

$

35,738

 

State and municipalities

 

 

9,025

 

 

 

60

 

 

 

(51

)

 

 

9,034

 

Total

 

$

44,494

 

 

$

732

 

 

$

(454

)

 

$

44,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 as of December 31, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

10

 

 

$

10

 

Due after one year through five years

 

 

9,907

 

 

 

10,107

 

Due after five years through ten years

 

 

9,919

 

 

 

10,107

 

Due after ten years

 

 

24,658

 

 

 

24,548

 

Total

 

$

44,494

 

 

$

44,772

 

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

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2021
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(403

)

 

$

16,330

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(9

)

 

 

2,124

 

 

 

(42

)

 

 

(1,956

)

Total

 

$

(412

)

 

$

18,454

 

 

$

(42

)

 

$

(1,956

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

v3.22.0.1
Loans and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2021
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

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

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

961,320

 

 

 

65

%

 

$

792,686

 

 

 

65

%

Home improvement

 

 

436,772

 

 

 

29

 

 

 

334,033

 

 

 

27

 

Commercial

 

 

76,696

 

 

 

5

 

 

 

65,327

 

 

 

5

 

Medallion

 

 

14,046

 

 

 

1

 

 

 

37,768

 

 

 

3

 

Strategic partnership

 

 

90

 

 

 

—

 

 

 

24

 

 

 

—

 

Total gross loans

 

 

1,488,924

 

 

 

100

%

 

 

1,229,838

 

 

 

100

%

Allowance for loan losses

 

 

(50,166

)

 

 

 

 

 

(57,548

)

 

 

 

Total net loans

 

$

1,438,758

 

 

 

 

 

$

1,172,290

 

 

 

 

The following tables show the activity of the gross loans for the years ended December 31, 2021 and 2020.


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

441,921

 

 

 

258,038

 

 

 

36,415

 

 

 

—

 

 

 

10,997

 

 

 

747,371

 

Principal payments, sales, and maturities

 

 

(264,424

)

 

 

(155,442

)

 

 

(25,873

)

 

 

(7,778

)

 

 

(10,931

)

 

 

(464,448

)

Charge-offs, net

 

 

(2,581

)

 

 

(551

)

 

 

—

 

 

 

(8,872

)

 

 

—

 

 

 

(12,004

)

Transfer to loan collateral in process of foreclosure, net

 

 

(10,431

)

 

 

—

 

 

 

—

 

 

 

(5,457

)

 

 

—

 

 

 

(15,888

)

Amortization of origination costs

 

 

(9,678

)

 

 

1,671

 

 

 

13

 

 

 

(2

)

 

 

—

 

 

 

(7,996

)

Amortization of loan premium

 

 

(221

)

 

 

(346

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,182

)

FASB origination costs, net

 

 

14,048

 

 

 

(631

)

 

 

—

 

 

 

2

 

 

 

—

 

 

 

13,419

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

814

 

 

 

—

 

 

 

—

 

 

 

814

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

 


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

—

 

 

$

1,160,855

 

Loan originations

 

 

294,885

 

 

 

193,098

 

 

 

7,575

 

 

 

—

 

 

 

1,663

 

 

 

497,221

 

Principal payments, sales, and maturities

 

 

(187,989

)

 

 

(105,813

)

 

 

(13,183

)

 

 

(13,207

)

 

 

(1,639

)

 

 

(321,831

)

Charge-offs, net

 

 

(14,457

)

 

 

(1,229

)

 

 

(28

)

 

 

(42,648

)

 

 

—

 

 

 

(58,362

)

Transfer to loan collateral in process of foreclosure, net

 

 

(14,871

)

 

 

—

 

 

 

—

 

 

 

(32,383

)

 

 

—

 

 

 

(47,254

)

Amortization of origination costs

 

 

(7,809

)

 

 

1,910

 

 

 

8

 

 

 

(131

)

 

 

—

 

 

 

(6,022

)

Amortization of loan premium

 

 

(191

)

 

 

(320

)

 

 

—

 

 

 

(2,531

)

 

 

—

 

 

 

(3,042

)

FASB origination costs, net

 

 

9,786

 

 

 

(937

)

 

 

—

 

 

 

36

 

 

 

—

 

 

 

8,885

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,188

 

 

 

—

 

 

 

—

 

 

 

1,188

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

—

 

 

 

(1,800

)

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2021 and 2020.

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Allowance for loan losses – beginning balance

 

$

57,548

 

 

$

46,093

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(14,712

)

 

 

(23,543

)

Home improvement

 

 

(2,949

)

 

 

(2,909

)

Commercial

 

 

—

 

 

 

(31

)

Medallion

 

 

(15,287

)

 

 

(49,361

)

Total charge-offs

 

 

(32,948

)

 

 

(75,844

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

12,131

 

 

 

9,086

 

Home improvement

 

 

2,398

 

 

 

1,680

 

Commercial

 

 

—

 

 

 

3

 

Medallion

 

 

6,415

 

 

 

6,713

 

Total recoveries

 

 

20,944

 

 

 

17,482

 

Net charge-offs (1)

 

 

(12,004

)

 

 

(58,362

)

Provision for loan losses

 

 

4,622

 

 

 

69,817

 

Allowance for loan losses – ending balance (2)

 

$

50,166

 

 

$

57,548

 
(1)
As of December 31, 2021, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $258.3 million, some of which represents collection opportunities for the Company.
(2)
As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.

The following tables set forth the allowance for loan losses by type as of December 31, 2021 and 2020.

December 31, 2021
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation (1)

 

$

32,435

 

 

 

64

%

 

 

3.37

%

 

 

91.18

%

Home improvement (2)

 

 

7,356

 

 

 

15

 

 

 

1.68

 

 

 

20.68

 

Commercial

 

 

1,141

 

 

 

2

 

 

 

1.49

 

 

 

3.21

 

Medallion

 

 

9,234

 

 

 

19

 

 

 

65.74

 

 

 

25.96

 

Total

 

$

50,166

 

 

 

100

%

 

 

3.37

%

 

 

141.03

%
(1)
As of December 31, 2021 allowance reflects $4.2 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
(2)
As of December 31, 2021 allowance reflects $0.5 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.

December 31, 2020
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation (1)

 

$

27,348

 

 

 

48

%

 

 

3.45

%

 

 

378.20

%

Home improvement (2)

 

 

5,157

 

 

 

9

 

 

 

1.54

 

 

NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,043

 

 

 

43

 

 

 

66.31

 

 

 

68.01

 

Total

 

$

57,548

 

 

 

100

%

 

 

4.68

%

 

 

93.17

%
(1)
As of December 31, 2020 allowance reflects $6.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
(2)
As of December 31, 2020 allowance reflects $0.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.

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.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Total nonaccrual loans

 

$

35,571

 

 

$

61,767

 

 

$

26,484

 

Interest foregone for the year

 

 

1,620

 

 

 

3,311

 

 

 

2,152

 

Amount of foregone interest applied to principal for the year

 

 

432

 

 

 

602

 

 

 

254

 

Interest foregone life-to-date

 

 

3,623

 

 

 

5,252

 

 

 

2,744

 

Amount of foregone interest applied to principal life-to-date

 

 

942

 

 

 

792

 

 

 

471

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

2.4

%

 

 

5.0

%

 

 

2.0

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

141.0

%

 

 

93.0

%

 

 

174.0

%

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

December 31, 2021
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

955,763

 

 

$

5,557

 

 

 

$

961,320

 

 

 

0.58

%

Home improvement

 

 

436,640

 

 

 

132

 

 

 

 

436,772

 

 

 

0.03

 

Commercial

 

 

60,366

 

 

 

16,330

 

 

 

 

76,696

 

 

 

21.29

 

Medallion

 

 

—

 

 

 

14,046

 

 

 

 

14,046

 

 

 

100.00

 

Strategic partnership

 

 

90

 

 

 

—

 

 

 

 

90

 

 

 

—

 

Total

 

$

1,452,859

 

 

$

36,065

 

 

 

$

1,488,924

 

 

 

2.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $1.6 million as of December 31, 2020.

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

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

 

 

December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,557

 

 

$

5,557

 

 

$

188

 

 

$

7,639

 

 

$

7,639

 

 

$

264

 

Home improvement

 

 

132

 

 

 

132

 

 

 

2

 

 

 

171

 

 

 

171

 

 

 

3

 

Commercial

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

 

 

16,596

 

 

 

16,600

 

 

 

—

 

Medallion

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

 

 

37,768

 

 

 

38,368

 

 

 

25,043

 

Total nonperforming loans with an allowance

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

$

62,174

 

 

$

62,778

 

 

$

25,310

 

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,618

 

 

$

515

 

 

$

7,949

 

 

$

560

 

Home improvement

 

 

108

 

 

 

—

 

 

 

172

 

 

 

2

 

Commercial

 

 

16,816

 

 

 

93

 

 

 

16,884

 

 

 

123

 

Medallion

 

 

17,538

 

 

 

—

 

 

 

40,928

 

 

 

465

 

Total nonperforming loans with an allowance

 

$

40,080

 

 

$

608

 

 

$

65,933

 

 

$

1,150

 

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

 December 31, 2021

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

20,037

 

 

$

6,569

 

 

$

3,818

 

 

$

30,424

 

 

$

901,435

 

 

$

931,859

 

 

$

—

 

Home improvement

 

 

1,517

 

 

 

479

 

 

 

132

 

 

 

2,128

 

 

 

436,803

 

 

 

438,931

 

 

 

—

 

Commercial

 

 

1,795

 

 

 

—

 

 

 

74

 

 

 

1,869

 

 

 

74,827

 

 

 

76,696

 

 

 

—

 

Medallion

 

 

215

 

 

 

7,125

 

 

 

—

 

 

 

7,340

 

 

 

6,706

 

 

 

14,046

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

90

 

 

 

90

 

 

 

—

 

Total

 

$

23,564

 

 

$

14,173

 

 

$

4,024

 

 

$

41,761

 

 

$

1,419,861

 

 

$

1,461,622

 

 

$

—

 
(1)
Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.

 December 31, 2020

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

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 $2.7 million and $21.3 million of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 295% and 327% as of December 31, 2021 and 2020.

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2021.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

56

 

 

 

668

 

 

 

585

 

Medallion loans

 

 

11

 

 

 

3,071

 

 

 

3,071

 

One medallion loan modified as a TDR in the twelve months preceding the year ended December 31, 2021, having a gross investment value of $0.2 million and an allowance for loan loss of $0.1 million, was in default as of December 31, 2021. A total of 31 recreation loans modified as TDRs in the twelve months preceding the year ended December 31, 2021, having a gross investment value of $0.3 million and an allowance for loan losses of less than $0.1 million, were in default as of December 31, 2021.

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

77

 

 

 

1,053

 

 

 

749

 

Commercial loans

 

 

1

 

 

 

1,821

 

 

 

1,821

 

Medallion loans

 

 

59

 

 

 

33,505

 

 

 

33,505

 

Five medallion loans modified as a TDR in the twelve months preceding the year ended December 31, 2020, having a gross investment value of $1.0 million and an allowance for loan losses of $0.3 million, were in default as of December 31, 2020. A total of 43 recreation loans modified as TDRs were in the twelve months preceding the year ended December 31, 2020, having a gross investment value of $0.1 million and an allowance for loan losses of $0.1 million, were in default as of December 31, 2020.

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the years ended December 31, 2021 and 2020.

Year Ended December 31, 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

 

 

10,431

 

 

 

5,457

 

 

 

15,888

 

Sales

 

 

(6,951

)

 

 

(2,928

)

 

 

(9,879

)

Cash payments received

 

 

—

 

 

 

(14,173

)

 

 

(14,173

)

Collateral valuation adjustments

 

 

(3,192

)

 

 

(5,774

)

 

 

(8,966

)

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 
(1)
As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 62 medallions in the Newark market, 335 medallions in the Chicago market, and 48 medallions in various other markets.

Year Ended December 31, 2020
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

Transfer from loans, net

 

 

14,871

 

 

 

32,403

 

 

 

47,274

 

Sales

 

 

(7,512

)

 

 

(300

)

 

 

(7,812

)

Cash payments received

 

 

—

 

 

 

(5,687

)

 

 

(5,687

)

Collateral valuation adjustments

 

 

(7,403

)

 

 

(24,523

)

 

 

(31,926

)

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 
v3.22.0.1
Funds Borrowed
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

December 31, 2021(1)

 

 

December 31, 2020(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

405,311

 

 

$

242,965

 

 

$

289,685

 

 

$

165,798

 

 

$

149,529

 

 

$

—

 

 

$

1,253,288

 

 

$

1,067,822

 

 

 

1.20

%

Retail and privately placed notes

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

53,750

 

 

 

121,000

 

 

 

103,225

 

 

 

7.66

 

SBA debentures and borrowings

 

 

—

 

 

 

5,000

 

 

 

13,963

 

 

 

14,000

 

 

 

14,000

 

 

 

23,000

 

 

 

69,963

 

 

 

68,008

 

 

 

2.72

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.31

 

Notes payable to banks

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,261

 

 

 

—

 

Other borrowings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,689

 

 

 

—

 

Total

 

$

405,311

 

 

$

247,965

 

 

$

339,648

 

 

$

179,798

 

 

$

194,779

 

 

$

109,750

 

 

$

1,477,251

 

 

$

1,312,005

 

 

 

1.82

%
(1)
Excludes deferred financing costs of $7.1 million and $5.8 million as of December 31, 2021 and 2020.
(2)
Weighted average contractual rate as of December 31, 2021.
(3)
Balance excludes $0.8 million and $0.3 million of strategic partner reserve deposits as of December 31, 2021 and 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 highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. The Bank did not have any individual time deposits greater than $0.1 million as of December 31, 2021. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions, which as of December 31, 2021 and 2020, had $8.7 million and $1.0 million in listing services deposits. The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of December 31, 2021.

(Dollars in thousands)

 

December 31, 2021

 

Three months or less

 

$

119,027

 

Over three months through six months

 

 

168,243

 

Over six months through one year

 

 

118,041

 

Over one year

 

 

847,977

 

Total deposits

 

$

1,253,288

 

(B) RETAIL AND PRIVATELY PLACED NOTES

In February 2021, the Company completed a private placement to certain institutional investors of $25.0 million aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3.3 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $3.0 million 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 $33.6 million aggregate principal amount of 7.50% unsecured senior notes due December 2027, with interest payable semiannually. In February and March 2021, an additional $8.5 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $11.7 million 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 $30.0 million 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 $4.1 million in the 2019 first quarter. In August 2019, an additional $6.0 million principal amount of such notes was issued to certain institutional investors.

In April 2016, the Company issued a total of $33.6 million 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 $31.8 million 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, of which the fee was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33.5 million in principal into a new loan by the SBA to FSVC in the principal amount of $34.0 million, 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 $34.0 million. 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 December 31, 2021, there were $9.5 million commitments available, and $70.0 million was outstanding, including $9.0 million under the SBA Note.

On July 31, 2020, MCI accepted a commitment from the SBA for $25.0 million in debenture financing. As part of the acceptance, MCI paid the SBA a 1% commitment fee. The commitment expires September 24, 2024. As of December 31, 2021, $15.5 million of the commitment had been drawn, including $8.5 million to replace debentures which matured in 2021. The remaining balance of $9.5 million is drawable upon the infusion of $4.8 million 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 $36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35.0 million 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 (0.21% at December 31, 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, $2.0 million of the preferred securities were repurchased from a third-party investor. As of December 31, 2021, $33.0 million 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 were typically secured by various assets of the underlying borrower. As of December 31, 2021, the Company did not have any notes payable to banks.

During 2021, the Company used some of the proceeds of the privately placed notes to pay off all of its notes payable to banks aggregating $23.0 million, principal amount, resulting in a gain on debt extinguishment of $4.6 million.

In November 2018, MFC entered into a note to the benefit of DZ Bank for $1.4 million 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. During 2021, the note was settled in its entirety.

(F) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty. Additionally, RPAC had a short-term promissory note to an unrelated party for $0.5 million and due on December 31, 2021. In connection with the Company's complete divestiture of its investment in RPAC, all debt with respect to RPAC has been removed from the Company's balance sheet.

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 $0.7 million 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 and minimum net worth. As of December 31, 2021, the Company did not have any borrowing agreements that contained any such restrictions
v3.22.0.1
Leases
 12 Months Ended
Dec. 31, 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 years ended December 31, 2021, 2020, and 2019.

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Operating lease costs

 

$

2,287

 

 

$

2,384

 

 

$

2,184

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

2,454

 

 

 

2,821

 

 

 

2,419

 

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

 

 

(118

)

 

 

251

 

 

 

2,413

 

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

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Operating lease right-of-use assets

 

$

10,045

 

 

$

11,737

 

Other current liabilities

 

 

2,159

 

 

 

2,004

 

Operating lease liabilities

 

 

9,053

 

 

 

11,018

 

Total operating lease liabilities

 

 

11,212

 

 

 

13,022

 

Weighted average remaining lease term

 

5.4 years

 

 

6.4 years

 

Weighted average discount rate

 

 

5.54

%

 

 

5.54

%

 

The following table presents maturities of the lease liabilities as of December 31, 2021.

(Dollars in thousands)

 

 

 

2022

 

$

2,439

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

2026

 

 

2,408

 

Thereafter

 

 

1,164

 

Total lease payments

 

 

13,130

 

Less imputed interest

 

 

1,918

 

Total operating lease liabilities

 

$

11,212

 
v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 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 December 31, 2021 and 2020.

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Goodwill and other intangibles

 

$

(43,894

)

 

$

(44,799

)

Provision for loan losses

 

 

11,057

 

 

 

19,556

 

Net operating loss carryforwards (1)

 

 

12,167

 

 

 

30,493

 

Accrued expenses, compensation, and other assets

 

 

2,579

 

 

 

1,174

 

Unrealized gains (losses) on other investments

 

 

2,176

 

 

 

(6,769

)

Total deferred tax liability

 

 

(15,915

)

 

 

(345

)

Valuation allowance(2)

 

 

(2,295

)

 

 

(462

)

Deferred tax liability, net

 

$

(18,210

)

 

$

(807

)
(1)
As of December 31, 2021, the Company and its subsidiaries had an estimated $52.4 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $9.9 million of December 31, 2021.
(2)
During the year ended December 31, 2021, it was determined that the likelihood of utilization of certain net operating losses was remote and a valuation allowance of $1.8 million was assessed against these assets.

The following table shows the components of our tax (provision) benefit for the years ended December 31, 2021, 2020, and 2019.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(3,550

)

 

$

—

 

 

$

—

 

State

 

 

(1,563

)

 

 

(260

)

 

 

519

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

(13,686

)

 

 

7,702

 

 

 

(489

)

State

 

 

(5,418

)

 

 

2,632

 

 

 

(371

)

Net (provision) benefit for income taxes

 

$

(24,217

)

 

$

10,074

 

 

$

(341

)

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2021, 2020, and 2019.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Statutory Federal income tax (provision) benefit at 21%

 

$

(17,193

)

 

$

7,766

 

 

$

(642

)

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

 

 

(3,363

)

 

 

1,518

 

 

 

(120

)

Valuation allowance against net operating losses

 

 

(1,833

)

 

 

1,228

 

 

 

380

 

Change in effective state income tax rates and accrual

 

 

(1,691

)

 

 

(405

)

 

 

(251

)

Income attributable to non-controlling interest

 

 

628

 

 

 

460

 

 

 

309

 

Non deductible expenses

 

 

(178

)

 

 

(453

)

 

 

—

 

Other

 

 

(587

)

 

 

(40

)

 

 

(17

)

Total income tax (provision) benefit

 

$

(24,217

)

 

$

10,074

 

 

$

(341

)

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given

to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of December 31, 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.

v3.22.0.1
Stock Options and Restricted Stock
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [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, 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 399,987 remained issuable as of December 31, 2021. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

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

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

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

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

Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2021, 1,111,687 options on the Company’s common stock were outstanding under the Company’s plans, of which 320,922 options were exercisable. Additionally,

there were 493,326 unvested shares of the Company’s common stock outstanding and 16,803 unvested restricted stock units and 47,272 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 $3.50, $3.09, and $3.10 per share for the years ended December 31, 2021, 2020, and 2019. The following assumption categories are used to determine the value of any option grants.

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Risk free interest rate

 

 

0.97

%

 

 

1.23

%

 

 

2.29

%

Expected dividend yield

 

 

—

 

 

 

—

 

 

 

0.66

 

Expected life of option in years (1)

 

 

6.25

 

 

 

6.25

 

 

 

6.25

 

Expected volatility (2)

 

 

53.98

%

 

 

51.03

%

 

 

49.03

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

The following table presents the activity for the stock option programs for the years ended December 31, 2021, 2020, and 2019.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2018

 

 

144,666

 

 

$

2.14 - 13.84

 

 

$

7.23

 

Granted

 

 

449,450

 

 

 

5.21 - 7.25

 

 

 

6.61

 

Cancelled

 

 

(44,076

)

 

 

6.55 - 13.84

 

 

 

9.00

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

550,040

 

 

 

2.14 - 13.53

 

 

 

6.58

 

Granted

 

 

444,557

 

 

 

4.89 - 6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

 

2.22 - 13.53

 

 

 

6.91

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020 (2)

 

 

951,669

 

 

 

2.14 - 12.55

 

 

 

6.41

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(113,310

)

 

 

4.89 - 11.53

 

 

 

6.64

 

Exercised (1)

 

 

(44,070

)

 

 

5.21 - 7.25

 

 

 

5.58

 

Outstanding at December 31, 2021 (2)

 

 

1,111,687

 

 

$

2.14-12.55

 

 

$

6.41

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

62,778

 

 

$

2.14-13.53

 

 

$

7.60

 

December 31, 2020

 

 

178,307

 

 

 

2.14-12.55

 

 

 

6.33

 

December 31, 2021

 

 

320,922

 

 

 

2.14-12.55

 

 

 

6.53

 
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0.2 million for the year ended December 31, 2021 and $0 for the years ended December 31, 2020, and 2019.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2021 and the related exercise price of the underlying options, was $0.1 million for outstanding options and $0.1 million for exercisable options as of December 31, 2021. The remaining contractual life was 8.03 years for outstanding options and 7.07 years for exercisable options at December 31, 2021.

The following table presents the activity for the restricted stock programs for the years ended December 31, 2021, 2020, and 2019.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2018

 

 

190,915

 

 

$

2.14 - 5.27

 

$

4.06

 

Granted

 

 

216,148

 

 

 

4.80 - 7.25

 

 

6.59

 

Cancelled

 

 

(3,946

)

 

 

3.93 - 6.55

 

 

4.97

 

Vested (1)

 

 

(118,238

)

 

 

2.06 - 4.80

 

 

3.89

 

Outstanding at December 31, 2019

 

 

284,879

 

 

 

3.95 - 7.25

 

 

6.01

 

Granted

 

 

229,408

 

 

 

4.89 - 6.68

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

 

3.95 - 7.25

 

 

6.93

 

Vested (1)

 

 

(89,392

)

 

 

3.95 - 6.55

 

 

5.37

 

Outstanding at December 31, 2020

 

 

416,140

 

 

 

4.39 - 7.25

 

 

6.24

 

Granted

 

 

258,120

 

 

 

6.79 - 8.40

 

 

7.38

 

Cancelled

 

 

(21,940

)

 

 

4.89 - 7.25

 

 

5.98

 

Vested (1)

 

 

(158,994

)

 

 

4.39 - 7.25

 

 

6.16

 

Outstanding at December 31, 2021(2)

 

 

493,326

 

 

$

4.89 - 7.25

 

$

6.87

 
(1)
The aggregate fair value of the restricted stock vested was $1.1 million, $0.6 million, and $0.7 million for the years ended December 31, 2021, 2020, and 2019.
(2)
The aggregate fair value of the restricted stock was $2.9 million as of December 31, 2021. The remaining vesting period was 3.17 years at December 31, 2021.

For the year ended December 31, 2021, the Company granted 16,803 restricted stock units (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. As of December 31, 2021, there were 47,272 vested RSUs outstanding.

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2021.

 

 

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

 

 

(106,717

)

 

 

4.89 - 7.25

 

 

 

6.41

 

Vested

 

 

(193,278

)

 

 

5.58 - 7.25

 

 

 

6.63

 

Outstanding at December 31, 2021

 

 

790,765

 

 

$

4.89 - 7.25

 

 

$

6.52

 

The intrinsic value of the options vested was less than $0.1 million for each of the years ended December 31, 2021, 2020, and 2019.

v3.22.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 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 conducted by the Bank in all fifty states. The highest concentrations of recreation loans are in Texas, California, and Florida at 16%, 10%, and 9% of loans outstanding and with no other states over 5% as of December 31, 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 other consumer recreational equipment make up 60%, 19%, and 9% of the segment portfolio as of December 31, 2021. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being roofs, swimming pools, and windows at 30%, 26%, and 13% with no other product lines exceeding 6% . The highest concentrations of home improvement loans are in Florida, Texas, and Ohio at 10%, 10%, and 8% of loans outstanding and with no other states over 5% as of December 31, 2021. The commercial lending segment focuses on enterprise wide industries, including manufacturing and various other industries, in which 51% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of medallions, taxis, and related assets, of which 89% were in New York City as of December 31, 2021.

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

 

The following tables present segment data as of and for the years ended December 31, 2021, 2020, and 2019.

Year Ended December 31, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC (1)

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

118,305

 

 

$

34,204

 

 

$

6,592

 

 

 

$

(1,483

)

 

$

—

 

 

$

1,348

 

 

$

158,966

 

Total interest expense

 

 

9,993

 

 

 

4,153

 

 

 

2,720

 

 

 

 

5,914

 

 

 

546

 

 

 

7,814

 

 

 

31,140

 

Net interest income (loss)

 

 

108,312

 

 

 

30,051

 

 

 

3,872

 

 

 

 

(7,397

)

 

 

(546

)

 

 

(6,466

)

 

 

127,826

 

Provision for loan losses

 

 

7,671

 

 

 

2,750

 

 

 

—

 

 

 

 

(7,752

)

 

 

—

 

 

 

1,953

 

 

 

4,622

 

Net interest income (loss) after loss provision

 

 

100,641

 

 

 

27,301

 

 

 

3,872

 

 

 

 

355

 

 

 

(546

)

 

 

(8,419

)

 

 

123,204

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

12,567

 

 

 

—

 

 

 

12,567

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(9,559

)

 

 

—

 

 

 

(9,559

)

Other income (expense), net

 

 

(30,156

)

 

 

(11,640

)

 

 

3,101

 

 

 

 

(1,991

)

 

 

(5,108

)

 

 

1,455

 

 

 

(44,339

)

Net income (loss) before taxes

 

 

70,485

 

 

 

15,661

 

 

 

6,973

 

 

 

 

(1,636

)

 

 

(2,646

)

 

 

(6,964

)

 

 

81,873

 

Income tax (provision) benefit

 

 

(18,699

)

 

 

(4,155

)

 

 

(1,850

)

 

 

 

433

 

 

 

(1,498

)

 

 

1,552

 

 

 

(24,217

)

Net income (loss) after taxes

 

$

51,786

 

 

$

11,506

 

 

$

5,123

 

 

 

$

(1,203

)

 

$

(4,144

)

 

$

(5,412

)

 

$

57,656

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

928,885

 

 

$

429,416

 

 

$

73,713

 

 

 

$

4,812

 

 

$

—

 

 

$

1,933

 

 

$

1,438,759

 

Total assets

 

 

896,223

 

 

 

371,781

 

 

 

103,631

 

 

 

 

42,011

 

 

 

—

 

 

 

459,411

 

 

 

1,873,057

 

Total funds borrowed

 

 

710,616

 

 

 

294,786

 

 

 

82,169

 

 

 

 

69,221

 

 

 

—

 

 

 

328,358

 

 

 

1,485,150

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.00

%

 

 

3.01

%

 

 

5.85

%

 

 

 

(1.15

)%

 

 

20.35

%

 

 

(1.89

)%

 

 

3.12

%

Return on average equity

 

 

30.01

 

 

 

15.04

 

 

 

29.23

 

 

 

 

(5.75

)

 

 

885.29

 

 

 

(13.62

)

 

 

21.24

 

Interest yield

 

 

13.94

 

 

 

9.30

 

 

 

10.41

 

 

 

 

(18.77

)

 

N/A

 

 

N/A

 

 

 

11.48

 

Net interest margin

 

 

12.76

 

 

 

8.17

 

 

 

6.12

 

 

 

 

(93.60

)

 

N/A

 

 

N/A

 

 

 

9.26

 

Reserve coverage

 

 

3.37

 

 

 

1.68

 

 

 

1.49

 

(1)

 

 

65.74

 

 

N/A

 

 

N/A

 

 

 

3.37

 

Delinquency status(2)

 

 

0.41

 

 

 

0.03

 

 

 

0.10

 

(1)

 

 

—

 

 

N/A

 

 

N/A

 

 

 

0.28

 

Charge-off ratio(4)

 

 

0.30

 

 

 

0.15

 

 

 

—

 

(3)

 

 

95.40

 

 

N/A

 

 

N/A

 

 

 

0.85

 
(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.
(5)
The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale.

Year Ended December 31, 2020

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

110,706

 

 

$

27,273

 

 

$

6,926

 

 

 

$

(1,518

)

 

$

—

 

 

$

1,575

 

 

$

144,962

 

Total interest expense

 

 

13,013

 

 

 

5,699

 

 

 

2,538

 

 

 

 

3,610

 

 

 

163

 

 

 

9,128

 

 

 

34,151

 

Net interest income (loss)

 

 

97,693

 

 

 

21,574

 

 

 

4,388

 

 

 

 

(5,128

)

 

 

(163

)

 

 

(7,553

)

 

 

110,811

 

Provision for loan losses

 

 

23,736

 

 

 

3,778

 

 

 

—

 

 

 

 

42,276

 

 

 

—

 

 

 

27

 

 

 

69,817

 

Net interest income (loss) after loss provision

 

 

73,957

 

 

 

17,796

 

 

 

4,388

 

 

 

 

(47,404

)

 

 

(163

)

 

 

(7,580

)

 

 

40,994

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

20,042

 

 

 

—

 

 

 

20,042

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(8,366

)

 

 

—

 

 

 

(8,366

)

Other income (expense), net

 

 

(27,341

)

 

 

(9,611

)

 

 

(3,196

)

 

 

 

(30,366

)

 

 

(7,973

)

 

 

(11,164

)

 

 

(89,651

)

Net income (loss) before taxes

 

 

46,616

 

 

 

8,185

 

 

 

1,192

 

 

 

 

(77,770

)

 

 

3,540

 

 

 

(18,744

)

 

 

(36,981

)

Income tax (provision) benefit

 

 

(12,004

)

 

 

(2,108

)

 

 

(299

)

 

 

 

19,520

 

 

 

(889

)

 

 

5,854

 

 

 

10,074

 

Net income (loss) after taxes

 

$

34,612

 

 

$

6,077

 

 

$

893

 

 

 

$

(58,250

)

 

$

2,651

 

 

$

(12,890

)

 

$

(26,907

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

765,338

 

 

$

328,876

 

 

$

62,037

 

 

 

$

12,725

 

 

$

—

 

 

$

3,314

 

 

$

1,172,290

 

Total assets

 

 

777,605

 

 

 

340,494

 

 

 

80,622

 

 

 

 

124,554

 

 

 

33,711

 

 

 

285,425

 

 

 

1,642,411

 

Total funds borrowed

 

 

621,735

 

 

 

272,284

 

 

 

65,924

 

 

 

 

98,636

 

 

 

8,689

 

 

 

244,987

 

 

 

1,312,255

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.59

%

 

 

2.07

%

 

 

1.07

%

 

 

 

(33.21

)%

 

 

7.98

%

 

 

(5.06

)%

 

 

(2.16

)%

Return on average equity

 

 

22.93

 

 

 

10.35

 

 

 

5.17

 

 

 

 

(165.21

)

 

 

(363.66

)

 

 

(23.29

)

 

 

(10.90

)

Interest yield

 

 

14.90

 

 

 

9.66

 

 

 

10.51

 

 

 

 

(2.11

)

 

N/A

 

 

N/A

 

 

 

11.32

 

Net interest margin

 

 

13.15

 

 

 

7.62

 

 

 

6.66

 

 

 

 

(7.14

)

 

N/A

 

 

N/A

 

 

 

8.65

 

Reserve coverage

 

 

3.45

 

 

 

1.54

 

 

 

0.00

 

(1)

 

 

66.31

 

 

N/A

 

 

N/A

 

 

 

4.68

 

Delinquency status(2)

 

 

0.70

 

 

 

0.05

 

 

 

0.11

 

(1)

 

 

3.57

 

 

N/A

 

 

N/A

 

 

 

0.57

 

Charge-off ratio

 

 

1.95

 

 

 

0.44

 

 

 

0.04

 

(3)

 

 

59.38

 

 

N/A

 

 

N/A

 

 

 

5.00

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

Year Ended December 31, 2019

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

99,463

 

 

$

19,943

 

 

$

7,183

 

 

 

$

3,665

 

 

$

—

 

 

$

2,308

 

 

$

132,562

 

Total interest expense

 

 

13,304

 

 

 

4,757

 

 

 

2,833

 

 

 

 

7,962

 

 

 

159

 

 

 

6,030

 

 

 

35,045

 

Net interest income (loss)

 

 

86,159

 

 

 

15,186

 

 

 

4,350

 

 

 

 

(4,297

)

 

 

(159

)

 

 

(3,722

)

 

 

97,517

 

Provision for loan losses

 

 

28,638

 

 

 

1,598

 

 

 

364

 

 

 

 

16,331

 

 

 

—

 

 

 

455

 

 

 

47,386

 

Net interest income (loss) after loss provision

 

 

57,521

 

 

 

13,588

 

 

 

3,986

 

 

 

 

(20,628

)

 

 

(159

)

 

 

(4,177

)

 

 

50,131

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

18,742

 

 

 

—

 

 

 

18,742

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(8,996

)

 

 

—

 

 

 

(8,996

)

Other income (expense), net

 

 

(23,490

)

 

 

(7,520

)

 

 

(1,149

)

 

 

 

(10,493

)

 

 

(6,942

)

 

 

(7,946

)

 

 

(57,540

)

Net income (loss) before taxes

 

 

34,031

 

 

 

6,068

 

 

 

2,837

 

 

 

 

(31,121

)

 

 

2,645

 

 

 

(12,123

)

 

 

2,337

 

Income tax (provision) benefit

 

 

(8,813

)

 

 

(1,572

)

 

 

(684

)

 

 

 

7,596

 

 

 

(329

)

 

 

3,461

 

 

 

(341

)

Net income (loss) after taxes

 

$

25,218

 

 

$

4,496

 

 

$

2,153

 

 

 

$

(23,525

)

 

$

2,316

 

 

$

(8,662

)

 

$

1,996

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

695,257

 

 

$

244,716

 

 

$

66,405

 

 

 

$

105,022

 

 

$

—

 

 

$

3,362

 

 

$

1,114,762

 

Total assets

 

 

707,377

 

 

 

252,704

 

 

 

84,924

 

 

 

 

217,483

 

 

 

31,538

 

 

 

247,641

 

 

 

1,541,667

 

Total funds borrowed

 

 

563,805

 

 

 

201,605

 

 

 

68,666

 

 

 

 

176,825

 

 

 

7,794

 

 

 

150,898

 

 

 

1,169,593

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

2.20

%

 

 

2.44

%

 

 

 

(9.73

)%

 

 

7.28

%

 

 

(3.71

)%

 

 

(0.12

)%

Return on average equity

 

 

17.19

 

 

 

10.22

 

 

 

12.21

 

 

 

 

(48.49

)

 

 

(96.37

)

 

 

(14.26

)

 

 

(0.59

)

Interest yield

 

 

15.39

 

 

 

9.50

 

 

 

11.39

 

 

 

 

2.88

 

 

N/A

 

 

N/A

 

 

 

11.75

 

Net interest margin

 

 

13.33

 

 

 

7.24

 

 

 

6.90

 

 

 

 

(3.38

)

 

N/A

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

2.53

 

 

 

1.05

 

 

 

0.00

 

(1)

 

 

19.48

 

 

N/A

 

 

N/A

 

 

 

3.97

 

Delinquency status(2)

 

 

0.84

 

 

 

0.07

 

 

 

0.15

 

(1)

 

 

2.04

 

 

N/A

 

 

N/A

 

 

 

0.76

 

Charge-off ratio

 

 

2.69

 

 

 

0.37

 

 

 

1.30

 

(3)

 

 

14.68

 

 

N/A

 

 

N/A

 

 

 

3.60

 
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.
v3.22.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 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-, three- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year of each five-year term, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one or two-year term (as applicable); however, there is currently one agreement that renews after two years for additional one- year terms and one agreement with a three-year term that does not have a renewal period. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period. Employment agreements expire at various dates through 2026, with future minimum payments under these agreements of approximately $12.1 million as follows:

(Dollars in thousands)

 

 

 

2022

 

$

3,996

 

2023

 

 

2,816

 

2024

 

 

2,272

 

2025

 

 

2,094

 

2025

 

 

872

 

Thereafter

 

 

—

 

Total

 

$

12,050

 

(B) OTHER COMMITMENTS

As of December 31, 2021 the Company had one commitment to extend credit of up to $1.8 million with an expiration date of January 1, 2025. 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 LITIGATION

On December 29, 2021, the SEC filed a civil complaint in the U.S. District Court for the Southern District of New York against the Company and its President and Chief Operating Officer alleging certain violations of the antifraud, books and records, internal controls and anti-touting provisions of the federal securities laws. The litigation relates 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 SEC is seeking injunctive relief, disgorgement plus pre-judgment interest and civil penalties in amounts unspecified, as well as an officer and director bar against the Company’s President and Chief Operating Officer. The Company and its President and Chief Operating Officer intend to defend themselves vigorously and believe that the SEC will not prevail on its claims. Nevertheless, depending on the outcome of the litigation, the Company could incur a loss and other penalties that could be material to the Company, its results of operations and/or financial condition, as well as a bar against its President and Chief Operating Officer. In addition, the Company has and expects to further incur significant legal fees and expenses in defending such charges by the SEC and the Company may be subject to shareholder litigation relating to these SEC matters.

(D) OTHER LITIGATION AND REGULATORY MATTERS

The Company and its subsidiaries are subject to inquiries from certain regulators and are currently involved in various legal proceedings incident to the normal course of business, including collection matters with respect to certain loans. We intend to vigorously defend any outstanding claims and pursue our legal rights. In the opinion of management, based on the advice of legal counsel, except for the pending SEC litigation, as described above, there is no proceeding pending, or to the knowledge of management threatened, which in the event of an adverse decision could result in a material adverse impact on the financial condition or results of operations of the Company.
v3.22.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 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. 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 for 2021 (which was increased to $239,000 effective January 1, 2022), and is no longer providing consulting services to the Company.

Until the Company’s complete divestiture in RPAC in the fourth quarter of 2021, the Company had an agreement with minority shareholder Richard Petty, in which it made an annual payment of $0.7 million per year for services provided to the entity. In addition, RPAC had a note payable to a trust controlled by Mr. Petty of $7.6 million that earned interest at an annual rate of 2%. As a result of the Company's divestiture of its investment in RPAC, all debt and equity securities have been removed from the consolidated balance sheet.
v3.22.0.1
Stockholders'/Shareholders' Equity
 12 Months Ended
Dec. 31, 2021
Federal Home Loan Banks [Abstract]  
Stockholders'/Shareholders' Equity

(12) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY

As of December 31, 2021, a total of $22,874,509 of shares remain authorized for repurchase under the Company's stock repurchase program. There were no purchases during the years ended December 31, 2021, 2020, and 2019.
v3.22.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Postemployment Benefits [Abstract]  
Employee Benefit Plans

(13) EMPLOYEE BENEFIT PLANS

The Company has a 401(k) Investment Plan, or the 401(k) Plan, which covers all full-time and part-time employees of the Company who have attained the age of 21 and have a minimum of thirty (30) days of service, including the employees of Medallion Bank. Under the 401(k) Plan, an employee may elect to defer not less than 1% of total annual compensation, up to the applicable limits set forth in the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. Once eligible full-time employees have completed a minimum of one (1) year of service, and part time employees have worked at least 1,000 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third of the first 6% of the employee’s annual contributions, subject to legal limits. The Company’s 401(k) plan expense, including amounts for the employees of Medallion Bank and other consolidated subsidiaries in the prior year periods, was approximately $0.3 million, $0.2 million, and $0.2 million for the years ended December 31, 2021, 2020, and 2019.

v3.22.0.1
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2021
Investments, All Other Investments [Abstract]  
Fair Value of Financial Instruments

(14) 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 and cash equivalents – Book value equals fair value.
(b)
Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes.
(c)
Investment securities – The Company’s investments are recorded at the estimated fair value of such investments.
(d)
Loans receivable – The Company’s loans are recorded at book value which approximated fair value.
(e)
Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value.
(f)
Commitments to extend credit – The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At December 31, 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.

 

 

December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

124,484

 

 

$

124,484

 

 

$

112,040

 

 

$

112,040

 

Equity investments

 

 

9,726

 

 

 

9,726

 

 

 

9,746

 

 

 

9,746

 

Investment securities

 

 

44,772

 

 

 

44,772

 

 

 

46,792

 

 

 

46,792

 

Loans receivable

 

 

1,438,758

 

 

 

1,438,758

 

 

 

1,172,290

 

 

 

1,172,290

 

Accrued interest receivable (2)

 

 

10,621

 

 

 

10,621

 

 

 

10,338

 

 

 

10,338

 

Equity securities(3)

 

 

1,950

 

 

 

1,950

 

 

 

—

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (4)

 

 

1,478,001

 

 

 

1,478,001

 

 

 

1,312,255

 

 

 

1,312,591

 

Accrued interest payable (2)

 

 

3,395

 

 

 

3,395

 

 

 

4,673

 

 

 

4,673

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million as of December 31, 2021 and $1.5 million as of December 31, 2020 of interest-bearing deposits categorized as level 2. See Note 15.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 15.
(3)
Included within other assets on the balance sheet.
(4)
All publicly traded notes were paid off in April 2021. As of December 31, 2020, publicly traded unsecured notes traded at a premium to par of $0.3 million.  
v3.22.0.1
Fair Value of Assets and liabilities
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(15) FAIR VALUE OF ASSETS AND LIABILITIES

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

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

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

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

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

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

a)
Quoted prices for similar assets or liabilities in active markets (for example, restricted stock);
b)
Quoted price for identical or similar assets or liabilities in non-active markets (for example, corporate and municipal bonds, which trade infrequently);
c)
Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and
d)
Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives).

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

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

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

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

December 31, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

44,772

 

 

 

—

 

 

 

44,772

 

Equity securities

 

 

1,950

 

 

 

—

 

 

 

—

 

 

 

1,950

 

Total(1)

 

$

1,950

 

 

$

46,022

 

 

$

—

 

 

$

47,972

 
(1)
Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 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

 

 

—

 

 

 

46,792

 

 

 

—

 

 

 

46,792

 

Total(1)

 

$

—

 

 

$

48,292

 

 

$

—

 

 

$

48,292

 
(1)
Total unrealized gains of $1.0 million, 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 December 31, 2021 and 2020.

December 31, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,726

 

 

$

9,726

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

35,571

 

 

 

35,571

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

37,430

 

 

 

37,430

 

Total

 

$

—

 

 

$

—

 

 

$

82,727

 

 

$

82,727

 

 

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 December 31, 2021 and 2020.

(Dollars in thousands)

 

Fair Value
at December 31, 2021

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

9,453

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

273

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

35,571

 

 

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

 

 

37,430

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$3.6 - 49.8

 

(Dollars in thousands)

 

Fair Value
at December 31, 2020

 

 

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.
v3.22.0.1
Medallion Bank Preferred Stock (Non-controlling Interest)
 12 Months Ended
Dec. 31, 2021
Medallion Bank Preferred Stock (Non-controlling Interest)

(16) 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 $46.0 million aggregate liquidation amount, yielding net proceeds of $42.5 million, 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 U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E, or Series E, for an aggregate purchase price of $26.3 million under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9% on the Series E.
v3.22.0.1
Parent Company Only Condensed Financial Statements
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Parent Company Only Condensed Financial Statements

(17) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS

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

Condensed Balance Sheets

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

Cash

 

$

40,540

 

 

$

33,743

 

Investment in bank subsidiary(1)

 

 

367,945

 

 

 

325,417

 

Investment in non-bank subsidiaries

 

 

88,018

 

 

 

88,165

 

Income tax receivable

 

 

18,763

 

 

 

1,470

 

Loan collateral in process of foreclosure

 

 

5,811

 

 

 

9,960

 

Net loans receivable

 

 

3,302

 

 

 

12,293

 

Other assets

 

 

8,674

 

 

 

10,912

 

Total assets

 

$

533,053

 

 

$

481,960

 

Liabilities

 

 

 

 

 

 

Long-term borrowings(2)

 

$

151,103

 

 

$

100,367

 

Short-term borrowings(2)

 

 

—

 

 

 

53,359

 

Intercompany payables

 

 

39,703

 

 

 

51,352

 

Deferred tax liabilities

 

 

35,799

 

 

 

24,172

 

Other liabilities

 

 

19,408

 

 

 

21,302

 

Total liabilities

 

 

246,013

 

 

 

250,552

 

Total stockholders’ equity

 

 

287,040

 

 

 

231,408

 

Total liabilities and equity

 

$

533,053

 

 

$

481,960

 
(1)
Includes $174.3 million and $175.7 million of goodwill and intangible assets of the Company which relate specifically to the Bank.
(2)
Includes $2.9 million and $2.2 million of deferred financing costs as of December 31, 2021 and 2020.

Condensed Statements of Operations

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Interest and dividend income (loss)

 

$

16,446

 

 

$

4,773

 

 

$

(2,552

)

Interest expense

 

 

11,209

 

 

 

8,602

 

 

 

8,856

 

Net interest income (loss)

 

 

5,237

 

 

 

(3,829

)

 

 

(11,408

)

Provision (benefit) for loan losses

 

 

(4,718

)

 

 

5,127

 

 

 

6,377

 

Net interest income (loss) after provision for loan losses

 

 

9,955

 

 

 

(8,956

)

 

 

(17,785

)

Other income (expense), net

 

 

(6,224

)

 

 

(22,062

)

 

 

(13,686

)

Income (loss) before income taxes and undistributed earnings of subsidiaries

 

 

3,731

 

 

 

(31,018

)

 

 

(31,471

)

Income tax benefit

 

 

4,452

 

 

 

10,454

 

 

 

7,013

 

Income (loss) before undistributed earnings of subsidiaries

 

 

8,183

 

 

 

(20,564

)

 

 

(24,458

)

Undistributed earnings (losses) of subsidiaries

 

 

45,925

 

 

 

(14,219

)

 

 

22,696

 

Net income (loss) attributable to parent company

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Condensed Statements of Other Comprehensive Income (Loss)

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Net (income) loss

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Other comprehensive income (loss)

 

 

(978

)

 

 

1,013

 

 

 

1,081

 

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

 

$

53,130

 

 

$

(33,770

)

 

$

(681

)

 

Condensed Statements of Cash Flow

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income (loss)/net decrease in net assets resulting from operations

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations
   to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed (earnings) losses of subsidiaries

 

 

(60,304

)

 

 

6,622

 

 

 

(22,696

)

(Benefit) provision for loan losses

 

 

(4,718

)

 

 

5,127

 

 

 

6,377

 

Depreciation and amortization

 

 

4,485

 

 

 

5,357

 

 

 

5,484

 

Change in deferred and other tax assets/liabilities, net

 

 

(5,666

)

 

 

(3,317

)

 

 

(2,225

)

Net change in loan collateral in process of foreclosure

 

 

1,619

 

 

 

4,940

 

 

 

906

 

Net change in unrealized depreciation on investments

 

 

—

 

 

 

3,493

 

 

 

1,786

 

Gain on extinguishment of debt

 

 

(2,204

)

 

 

—

 

 

 

—

 

Net realized gains on sale of investments

 

 

(11,701

)

 

 

—

 

 

 

—

 

Stock-based compensation expense

 

 

2,261

 

 

 

2,031

 

 

 

1,221

 

Decrease (increase) in other assets

 

 

(1,150

)

 

 

2,299

 

 

 

988

 

Increase in deferred financing costs

 

 

(1,504

)

 

 

(1,233

)

 

 

(1,297

)

Decrease in intercompany payables

 

 

(11,649

)

 

 

(3,552

)

 

 

(8,448

)

(Decrease) increase in other liabilities

 

 

(1,894

)

 

 

2,336

 

 

 

(1,759

)

Net cash used for operating activities

 

 

(38,317

)

 

 

(10,680

)

 

 

(21,425

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Loans originated

 

 

—

 

 

 

(14

)

 

 

(3,312

)

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

 

 

28,552

 

 

 

1,193

 

 

 

2,313

 

Purchases of investments

 

 

(90

)

 

 

(2,304

)

 

 

(1,125

)

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

 

 

666

 

 

 

1,276

 

 

 

2,403

 

Investment in subsidiaries

 

 

(3,500

)

 

 

 

 

 

 

Dividends from subsidiaries

 

 

19,000

 

 

 

7,597

 

 

 

6,248

 

Net cash provided by investing activities

 

 

44,628

 

 

 

7,748

 

 

 

6,527

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

51,400

 

 

 

33,600

 

 

 

36,000

 

Repayments of funds borrowed

 

 

(51,155

)

 

 

(1,402

)

 

 

(17,735

)

Proceeds from the exercise of stock options

 

 

241

 

 

 

—

 

 

 

—

 

Net cash provided by financing activities

 

 

486

 

 

 

32,198

 

 

 

18,265

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

6,797

 

 

 

29,266

 

 

 

3,367

 

Cash and cash equivalents, beginning of period

 

 

33,743

 

 

 

4,477

 

 

 

1,110

 

Cash and cash equivalents, end of period

 

$

40,540

 

 

$

33,743

 

 

$

4,477

 
v3.22.0.1
Variable Interest Entities
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities

(18) 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 was a VIE since the key decision-making authority rested in the servicing agreement (where MFC was the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights were 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 $25.3 million recorded as well as a new promissory note payable by MFC of $1.4 million issued in settlement of the limited guaranty. 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 transfer to a third party in the 2021 third quarter. In addition, the Company remained the servicer of the assets of Trust III for a fee, until its disposition.
v3.22.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

(19) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to December 31, 2021, through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.
v3.22.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 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 $3.0 million 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. As of December 31, 2021, cash also includes $1.3 million of interest-bearing funds deposited in other banks, that are mainly callable, with original 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 14 and 15 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 $9.7 million as of both December 31, 2021 and 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. For the year ended December 31, 2021, the Company determined that there was impairment of $0.8 million with respect to its equity investments and no impairment or observable price changes for the year ended December 31, 2020.

The Company sold approximately 80% of its investment in Upgrade, Inc. during 2021 for proceeds of $12.5 million and recognized a gain of $11.3 million on the sales during the year. As of December 31, 2021 the Company's remaining investment in Upgrade, Inc. had a cost of $0.3 million as of December 31, 2021.

During 2021, the Company purchased $2.0 million 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 $2.0 million as of December 31, 2021 are included in other assets on the consolidated balance sheet.

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

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

Net losses recognized during the period on equity securities

 

$

(50

)

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

 

$

(50

)

 
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 $0.3 million as of both December 31, 2021 and 2020, and $0.1 million, $0.3 million, and $0.1 million was amortized to interest income for the years ended December 31, 2021, 2020, and 2019. 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.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of December 31, 2021 and 2020, net loan origination costs were $26.1 million and $20.7 million. Net amortization to income for the years ended December 31, 2021, 2020, and 2019 were $7.7 million, $6.0 million, and $5.0 million.

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 $4.0 million or 0.28% of the total loan portfolio as of December 31, 2021, as compared to $6.9 million, or 0.57% as of 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 and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the relief period was extended to January 1, 2022, at which date relief was terminated. 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 December 31, 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 no loans pledged under borrowing arrangements as of December 31, 2021 and had $15.4 million of net loans pledged as collateral under borrowing arrangements as of 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 $20.5 million and $107.1 million as of December 31, 2021 and 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 December 31, 2021 and 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 December 31, 2021 and 2020, the Company had goodwill of $150.8 million, all of which related to the Bank. As of December 31, 2021 and 2020, the Company had intangible assets of $23.5 million and $51.1 million. During 2021, the Company disposed of its investment in RPAC, resulting in the removal of $26.2 million of intangible assets. The Company recognized $1.4 million of amortization expense on the intangible assets for each of the years ended December 31, 2021, 2020, and 2019. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0.5 million and $2.7 million were outstanding as of December 31, 2021 and 2020, and of which $2.2 million, $3.0 million, and $3.3 million was amortized to interest income for the years ended December 31, 2021, 2020, and 2019. Management

performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2021 and 2020, concluding that there was no impairment of these assets.

The following table details of the intangible assets as of December 31, 2021 and 2020:

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Brand-related intellectual property

 

$

17,874

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,606

 

 

 

5,951

 

Race organization

 

 

—

 

 

 

26,165

 

Total intangible assets

 

$

23,480

 

 

$

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 $0.3 million, $0.4 million, and $0.4 million for the years ended December 31, 2021, 2020, and 2019.
Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2.4 million, $2.6 million, and $2.3 million for the years ended December 31, 2021, 2020, and 2019. 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 $7.1 million and $5.8 million as of December 31, 2021 and 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.

 

 

Year Ended December 31,

 

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

 

2021

 

 

2020

 

 

2019

 

Net income (loss) available to common stockholders

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Weighted average common shares outstanding applicable
   to basic EPS

 

 

24,599,804

 

 

 

24,445,452

 

 

 

24,342,979

 

Effect of dilutive stock options

 

 

92,602

 

 

 

—

 

 

 

—

 

Effect of restricted stock grants

 

 

250,763

 

 

 

—

 

 

 

—

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

24,943,169

 

 

 

24,445,452

 

 

 

24,342,979

 

Basic income (loss) per share

 

$

2.20

 

 

$

(1.42

)

 

$

(0.07

)

Diluted income (loss) per share

 

 

2.17

 

 

 

(1.42

)

 

 

(0.07

)

Potentially dilutive common shares excluded from the above calculations aggregated 421,190 shares, 934,003 shares, and 462,180 shares as of December 31, 2021, 2020, and 2019.

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 years ended December 31, 2021, 2020, and 2019, the Company issued 258,120, 229,408, and 216,148 restricted shares of stock-based compensation awards, issued 317,398, 444,557, and 449,450 shares of other stock-based compensation awards, and issued 16,803, 47,156, and 26,040 restricted stock units; and recognized $2.3 million, $2.0 million, and $1.2 million, or $0.09, $0.08, and $0.05 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $3.0 million, which is expected to be recognized over the next 13 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 December 31, 2021, the Bank’s Tier 1 leverage ratio was 17.53%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

December 31,

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

2021

 

 

2020

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

193,459

 

 

$

148,507

 

Tier 1 capital

 

 

 

 

 

 

 

 

262,247

 

 

 

217,295

 

Total capital

 

 

 

 

 

 

 

 

281,211

 

 

 

233,460

 

Average assets

 

 

 

 

 

 

 

 

1,495,726

 

 

 

1,283,664

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,482,678

 

 

 

1,243,783

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

17.5

%

 

 

16.9

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.1

 

 

 

11.9

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.7

 

 

 

17.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

19.0

 

 

 

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 December 31, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both December 31, 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. 
v3.22.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Unrealized Portion Related to Equity Securities

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

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

Net losses recognized during the period on equity securities

 

$

(50

)

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

 

$

(50

)

 
Schedule of Intangible Assets

The following table details of the intangible assets as of December 31, 2021 and 2020:

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Brand-related intellectual property

 

$

17,874

 

 

$

18,974

 

Home improvement contractor relationships

 

 

5,606

 

 

 

5,951

 

Race organization

 

 

—

 

 

 

26,165

 

Total intangible assets

 

$

23,480

 

 

$

51,090

 
Summary of the Calculation of Basic and 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.

 

 

Year Ended December 31,

 

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

 

2021

 

 

2020

 

 

2019

 

Net income (loss) available to common stockholders

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Weighted average common shares outstanding applicable
   to basic EPS

 

 

24,599,804

 

 

 

24,445,452

 

 

 

24,342,979

 

Effect of dilutive stock options

 

 

92,602

 

 

 

—

 

 

 

—

 

Effect of restricted stock grants

 

 

250,763

 

 

 

—

 

 

 

—

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

24,943,169

 

 

 

24,445,452

 

 

 

24,342,979

 

Basic income (loss) per share

 

$

2.20

 

 

$

(1.42

)

 

$

(0.07

)

Diluted income (loss) per share

 

 

2.17

 

 

 

(1.42

)

 

 

(0.07

)
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

 

 

December 31,

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

2021

 

 

2020

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

193,459

 

 

$

148,507

 

Tier 1 capital

 

 

 

 

 

 

 

 

262,247

 

 

 

217,295

 

Total capital

 

 

 

 

 

 

 

 

281,211

 

 

 

233,460

 

Average assets

 

 

 

 

 

 

 

 

1,495,726

 

 

 

1,283,664

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,482,678

 

 

 

1,243,783

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

17.5

%

 

 

16.9

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.1

 

 

 

11.9

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.7

 

 

 

17.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

19.0

 

 

 

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.
v3.22.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2021
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale ixed maturity securities available for sale as of December 31, 2021 and 2020.

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

35,469

 

 

$

672

 

 

$

(403

)

 

$

35,738

 

State and municipalities

 

 

9,025

 

 

 

60

 

 

 

(51

)

 

 

9,034

 

Total

 

$

44,494

 

 

$

732

 

 

$

(454

)

 

$

44,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 as of December 31, 2021 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

10

 

 

$

10

 

Due after one year through five years

 

 

9,907

 

 

 

10,107

 

Due after five years through ten years

 

 

9,919

 

 

 

10,107

 

Due after ten years

 

 

24,658

 

 

 

24,548

 

Total

 

$

44,494

 

 

$

44,772

 
Summary of Securities with Gross Unrealized Losses

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

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2021
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(403

)

 

$

16,330

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(9

)

 

 

2,124

 

 

 

(42

)

 

 

(1,956

)

Total

 

$

(412

)

 

$

18,454

 

 

$

(42

)

 

$

(1,956

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
v3.22.0.1
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Text Block [Abstract]    
Summary of Inclusive Capitalized Loans

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

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

961,320

 

 

 

65

%

 

$

792,686

 

 

 

65

%

Home improvement

 

 

436,772

 

 

 

29

 

 

 

334,033

 

 

 

27

 

Commercial

 

 

76,696

 

 

 

5

 

 

 

65,327

 

 

 

5

 

Medallion

 

 

14,046

 

 

 

1

 

 

 

37,768

 

 

 

3

 

Strategic partnership

 

 

90

 

 

 

—

 

 

 

24

 

 

 

—

 

Total gross loans

 

 

1,488,924

 

 

 

100

%

 

 

1,229,838

 

 

 

100

%

Allowance for loan losses

 

 

(50,166

)

 

 

 

 

 

(57,548

)

 

 

 

Total net loans

 

$

1,438,758

 

 

 

 

 

$

1,172,290

 

 

 

 
 
Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the years ended December 31, 2021 and 2020.


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

441,921

 

 

 

258,038

 

 

 

36,415

 

 

 

—

 

 

 

10,997

 

 

 

747,371

 

Principal payments, sales, and maturities

 

 

(264,424

)

 

 

(155,442

)

 

 

(25,873

)

 

 

(7,778

)

 

 

(10,931

)

 

 

(464,448

)

Charge-offs, net

 

 

(2,581

)

 

 

(551

)

 

 

—

 

 

 

(8,872

)

 

 

—

 

 

 

(12,004

)

Transfer to loan collateral in process of foreclosure, net

 

 

(10,431

)

 

 

—

 

 

 

—

 

 

 

(5,457

)

 

 

—

 

 

 

(15,888

)

Amortization of origination costs

 

 

(9,678

)

 

 

1,671

 

 

 

13

 

 

 

(2

)

 

 

—

 

 

 

(7,996

)

Amortization of loan premium

 

 

(221

)

 

 

(346

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,182

)

FASB origination costs, net

 

 

14,048

 

 

 

(631

)

 

 

—

 

 

 

2

 

 

 

—

 

 

 

13,419

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

814

 

 

 

—

 

 

 

—

 

 

 

814

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

 


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2019

 

$

713,332

 

 

$

247,324

 

 

$

69,767

 

 

$

130,432

 

 

$

—

 

 

$

1,160,855

 

Loan originations

 

 

294,885

 

 

 

193,098

 

 

 

7,575

 

 

 

—

 

 

 

1,663

 

 

 

497,221

 

Principal payments, sales, and maturities

 

 

(187,989

)

 

 

(105,813

)

 

 

(13,183

)

 

 

(13,207

)

 

 

(1,639

)

 

 

(321,831

)

Charge-offs, net

 

 

(14,457

)

 

 

(1,229

)

 

 

(28

)

 

 

(42,648

)

 

 

—

 

 

 

(58,362

)

Transfer to loan collateral in process of foreclosure, net

 

 

(14,871

)

 

 

—

 

 

 

—

 

 

 

(32,383

)

 

 

—

 

 

 

(47,254

)

Amortization of origination costs

 

 

(7,809

)

 

 

1,910

 

 

 

8

 

 

 

(131

)

 

 

—

 

 

 

(6,022

)

Amortization of loan premium

 

 

(191

)

 

 

(320

)

 

 

—

 

 

 

(2,531

)

 

 

—

 

 

 

(3,042

)

FASB origination costs, net

 

 

9,786

 

 

 

(937

)

 

 

—

 

 

 

36

 

 

 

—

 

 

 

8,885

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,188

 

 

 

—

 

 

 

—

 

 

 

1,188

 

Transfer to other foreclosed property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,800

)

 

 

—

 

 

 

(1,800

)

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 
 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2021 and 2020.

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Allowance for loan losses – beginning balance

 

$

57,548

 

 

$

46,093

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(14,712

)

 

 

(23,543

)

Home improvement

 

 

(2,949

)

 

 

(2,909

)

Commercial

 

 

—

 

 

 

(31

)

Medallion

 

 

(15,287

)

 

 

(49,361

)

Total charge-offs

 

 

(32,948

)

 

 

(75,844

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

12,131

 

 

 

9,086

 

Home improvement

 

 

2,398

 

 

 

1,680

 

Commercial

 

 

—

 

 

 

3

 

Medallion

 

 

6,415

 

 

 

6,713

 

Total recoveries

 

 

20,944

 

 

 

17,482

 

Net charge-offs (1)

 

 

(12,004

)

 

 

(58,362

)

Provision for loan losses

 

 

4,622

 

 

 

69,817

 

Allowance for loan losses – ending balance (2)

 

$

50,166

 

 

$

57,548

 
(1)
As of December 31, 2021, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $258.3 million, some of which represents collection opportunities for the Company.
(2)
As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
  
Summary of Allowance for Loan Losses by Type

The following tables set forth the allowance for loan losses by type as of December 31, 2021 and 2020.

December 31, 2021
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation (1)

 

$

32,435

 

 

 

64

%

 

 

3.37

%

 

 

91.18

%

Home improvement (2)

 

 

7,356

 

 

 

15

 

 

 

1.68

 

 

 

20.68

 

Commercial

 

 

1,141

 

 

 

2

 

 

 

1.49

 

 

 

3.21

 

Medallion

 

 

9,234

 

 

 

19

 

 

 

65.74

 

 

 

25.96

 

Total

 

$

50,166

 

 

 

100

%

 

 

3.37

%

 

 

141.03

%
(1)
As of December 31, 2021 allowance reflects $4.2 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
(2)
As of December 31, 2021 allowance reflects $0.5 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.

December 31, 2020
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation (1)

 

$

27,348

 

 

 

48

%

 

 

3.45

%

 

 

378.20

%

Home improvement (2)

 

 

5,157

 

 

 

9

 

 

 

1.54

 

 

NM

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

25,043

 

 

 

43

 

 

 

66.31

 

 

 

68.01

 

Total

 

$

57,548

 

 

 

100

%

 

 

4.68

%

 

 

93.17

%
(1)
As of December 31, 2020 allowance reflects $6.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
(2)
As of December 31, 2020 allowance reflects $0.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
  
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.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Total nonaccrual loans

 

$

35,571

 

 

$

61,767

 

 

$

26,484

 

Interest foregone for the year

 

 

1,620

 

 

 

3,311

 

 

 

2,152

 

Amount of foregone interest applied to principal for the year

 

 

432

 

 

 

602

 

 

 

254

 

Interest foregone life-to-date

 

 

3,623

 

 

 

5,252

 

 

 

2,744

 

Amount of foregone interest applied to principal life-to-date

 

 

942

 

 

 

792

 

 

 

471

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

2.4

%

 

 

5.0

%

 

 

2.0

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

141.0

%

 

 

93.0

%

 

 

174.0

%
 
Summary of Performance Status of Loan

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

December 31, 2021
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

955,763

 

 

$

5,557

 

 

 

$

961,320

 

 

 

0.58

%

Home improvement

 

 

436,640

 

 

 

132

 

 

 

 

436,772

 

 

 

0.03

 

Commercial

 

 

60,366

 

 

 

16,330

 

 

 

 

76,696

 

 

 

21.29

 

Medallion

 

 

—

 

 

 

14,046

 

 

 

 

14,046

 

 

 

100.00

 

Strategic partnership

 

 

90

 

 

 

—

 

 

 

 

90

 

 

 

—

 

Total

 

$

1,452,859

 

 

$

36,065

 

 

 

$

1,488,924

 

 

 

2.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $1.6 million as of 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 December 31, 2021 and 2020, all of which had an allowance recorded against the principal balance.

 

 

December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,557

 

 

$

5,557

 

 

$

188

 

 

$

7,639

 

 

$

7,639

 

 

$

264

 

Home improvement

 

 

132

 

 

 

132

 

 

 

2

 

 

 

171

 

 

 

171

 

 

 

3

 

Commercial

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

 

 

16,596

 

 

 

16,600

 

 

 

—

 

Medallion

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

 

 

37,768

 

 

 

38,368

 

 

 

25,043

 

Total nonperforming loans with an allowance

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

$

62,174

 

 

$

62,778

 

 

$

25,310

 

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,618

 

 

$

515

 

 

$

7,949

 

 

$

560

 

Home improvement

 

 

108

 

 

 

—

 

 

 

172

 

 

 

2

 

Commercial

 

 

16,816

 

 

 

93

 

 

 

16,884

 

 

 

123

 

Medallion

 

 

17,538

 

 

 

—

 

 

 

40,928

 

 

 

465

 

Total nonperforming loans with an allowance

 

$

40,080

 

 

$

608

 

 

$

65,933

 

 

$

1,150

 
 
Summary of Aging of Loans

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

 December 31, 2021

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

20,037

 

 

$

6,569

 

 

$

3,818

 

 

$

30,424

 

 

$

901,435

 

 

$

931,859

 

 

$

—

 

Home improvement

 

 

1,517

 

 

 

479

 

 

 

132

 

 

 

2,128

 

 

 

436,803

 

 

 

438,931

 

 

 

—

 

Commercial

 

 

1,795

 

 

 

—

 

 

 

74

 

 

 

1,869

 

 

 

74,827

 

 

 

76,696

 

 

 

—

 

Medallion

 

 

215

 

 

 

7,125

 

 

 

—

 

 

 

7,340

 

 

 

6,706

 

 

 

14,046

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

90

 

 

 

90

 

 

 

—

 

Total

 

$

23,564

 

 

$

14,173

 

 

$

4,024

 

 

$

41,761

 

 

$

1,419,861

 

 

$

1,461,622

 

 

$

—

 
(1)
Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.

 December 31, 2020

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

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 $2.7 million and $21.3 million of capitalized loan origination costs.
  
Summary of TDRs

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2021.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

56

 

 

 

668

 

 

 

585

 

Medallion loans

 

 

11

 

 

 

3,071

 

 

 

3,071

 
One medallion loan modified as a TDR in the twelve months preceding the year ended

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

77

 

 

 

1,053

 

 

 

749

 

Commercial loans

 

 

1

 

 

 

1,821

 

 

 

1,821

 

Medallion loans

 

 

59

 

 

 

33,505

 

 

 

33,505

 

Five medallion loans modified as a TDR in the twelve months preceding the year ended December 31, 2020, having a gross investment value of $1.0 million and an allowance for loan losses of $0.3 million, were in default as of December 31, 2020. A total of 43 recreation loans modified as TDRs were in the twelve months preceding the year ended December 31, 2020, having a gross investment value of $0.1 million and an allowance for loan losses of $0.1 million, were in default as of December 31, 2020.

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

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the years ended December 31, 2021 and 2020.

Year Ended December 31, 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

 

 

10,431

 

 

 

5,457

 

 

 

15,888

 

Sales

 

 

(6,951

)

 

 

(2,928

)

 

 

(9,879

)

Cash payments received

 

 

—

 

 

 

(14,173

)

 

 

(14,173

)

Collateral valuation adjustments

 

 

(3,192

)

 

 

(5,774

)

 

 

(8,966

)

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 
(1)
As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 62 medallions in the Newark market, 335 medallions in the Chicago market, and 48 medallions in various other markets.

Year Ended December 31, 2020
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2019

 

$

1,476

 

 

$

51,235

 

 

$

52,711

 

Transfer from loans, net

 

 

14,871

 

 

 

32,403

 

 

 

47,274

 

Sales

 

 

(7,512

)

 

 

(300

)

 

 

(7,812

)

Cash payments received

 

 

—

 

 

 

(5,687

)

 

 

(5,687

)

Collateral valuation adjustments

 

 

(7,403

)

 

 

(24,523

)

 

 

(31,926

)

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 
 
v3.22.0.1
Funds Borrowed (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The following table presents outstanding balances of funds borrowed.

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

December 31, 2021(1)

 

 

December 31, 2020(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

405,311

 

 

$

242,965

 

 

$

289,685

 

 

$

165,798

 

 

$

149,529

 

 

$

—

 

 

$

1,253,288

 

 

$

1,067,822

 

 

 

1.20

%

Retail and privately placed notes

 

 

—

 

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

53,750

 

 

 

121,000

 

 

 

103,225

 

 

 

7.66

 

SBA debentures and borrowings

 

 

—

 

 

 

5,000

 

 

 

13,963

 

 

 

14,000

 

 

 

14,000

 

 

 

23,000

 

 

 

69,963

 

 

 

68,008

 

 

 

2.72

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.31

 

Notes payable to banks

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,261

 

 

 

—

 

Other borrowings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,689

 

 

 

—

 

Total

 

$

405,311

 

 

$

247,965

 

 

$

339,648

 

 

$

179,798

 

 

$

194,779

 

 

$

109,750

 

 

$

1,477,251

 

 

$

1,312,005

 

 

 

1.82

%
(1)
Excludes deferred financing costs of $7.1 million and $5.8 million as of December 31, 2021 and 2020.
(2)
Weighted average contractual rate as of December 31, 2021.
(3)
Balance excludes $0.8 million and $0.3 million of strategic partner reserve deposits as of December 31, 2021 and 2020.
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of December 31, 2021.

(Dollars in thousands)

 

December 31, 2021

 

Three months or less

 

$

119,027

 

Over three months through six months

 

 

168,243

 

Over six months through one year

 

 

118,041

 

Over one year

 

 

847,977

 

Total deposits

 

$

1,253,288

 
v3.22.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the years ended December 31, 2021, 2020, and 2019.

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Operating lease costs

 

$

2,287

 

 

$

2,384

 

 

$

2,184

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

2,454

 

 

 

2,821

 

 

 

2,419

 

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

 

 

(118

)

 

 

251

 

 

 

2,413

 
Schedule of Breakout of Operating leases

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

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Operating lease right-of-use assets

 

$

10,045

 

 

$

11,737

 

Other current liabilities

 

 

2,159

 

 

 

2,004

 

Operating lease liabilities

 

 

9,053

 

 

 

11,018

 

Total operating lease liabilities

 

 

11,212

 

 

 

13,022

 

Weighted average remaining lease term

 

5.4 years

 

 

6.4 years

 

Weighted average discount rate

 

 

5.54

%

 

 

5.54

%

 
Schedule of Maturities of the Lease Liabilities .

(Dollars in thousands)

 

 

 

2022

 

$

2,439

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

2026

 

 

2,408

 

Thereafter

 

 

1,164

 

Total lease payments

 

 

13,130

 

Less imputed interest

 

 

1,918

 

Total operating lease liabilities

 

$

11,212

 
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2021 and 2020.

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Goodwill and other intangibles

 

$

(43,894

)

 

$

(44,799

)

Provision for loan losses

 

 

11,057

 

 

 

19,556

 

Net operating loss carryforwards (1)

 

 

12,167

 

 

 

30,493

 

Accrued expenses, compensation, and other assets

 

 

2,579

 

 

 

1,174

 

Unrealized gains (losses) on other investments

 

 

2,176

 

 

 

(6,769

)

Total deferred tax liability

 

 

(15,915

)

 

 

(345

)

Valuation allowance(2)

 

 

(2,295

)

 

 

(462

)

Deferred tax liability, net

 

$

(18,210

)

 

$

(807

)
(1)
As of December 31, 2021, the Company and its subsidiaries had an estimated $52.4 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $9.9 million of December 31, 2021.
(2)
During the year ended December 31, 2021, it was determined that the likelihood of utilization of certain net operating losses was remote and a valuation allowance of $1.8 million was assessed against these assets.
Summary of Components of Tax (Provision) Benefit

The following table shows the components of our tax (provision) benefit for the years ended December 31, 2021, 2020, and 2019.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(3,550

)

 

$

—

 

 

$

—

 

State

 

 

(1,563

)

 

 

(260

)

 

 

519

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

(13,686

)

 

 

7,702

 

 

 

(489

)

State

 

 

(5,418

)

 

 

2,632

 

 

 

(371

)

Net (provision) benefit for income taxes

 

$

(24,217

)

 

$

10,074

 

 

$

(341

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

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2021, 2020, and 2019.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Statutory Federal income tax (provision) benefit at 21%

 

$

(17,193

)

 

$

7,766

 

 

$

(642

)

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

 

 

(3,363

)

 

 

1,518

 

 

 

(120

)

Valuation allowance against net operating losses

 

 

(1,833

)

 

 

1,228

 

 

 

380

 

Change in effective state income tax rates and accrual

 

 

(1,691

)

 

 

(405

)

 

 

(251

)

Income attributable to non-controlling interest

 

 

628

 

 

 

460

 

 

 

309

 

Non deductible expenses

 

 

(178

)

 

 

(453

)

 

 

—

 

Other

 

 

(587

)

 

 

(40

)

 

 

(17

)

Total income tax (provision) benefit

 

$

(24,217

)

 

$

10,074

 

 

$

(341

)
v3.22.0.1
Stock Options and Restricted Stock (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Summary of Assumption Categories Used to Determine Value of Option Grants The following assumption categories are used to determine the value of any option grants.

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Risk free interest rate

 

 

0.97

%

 

 

1.23

%

 

 

2.29

%

Expected dividend yield

 

 

—

 

 

 

—

 

 

 

0.66

 

Expected life of option in years (1)

 

 

6.25

 

 

 

6.25

 

 

 

6.25

 

Expected volatility (2)

 

 

53.98

%

 

 

51.03

%

 

 

49.03

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

The following table presents the activity for the stock option programs for the years ended December 31, 2021, 2020, and 2019.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2018

 

 

144,666

 

 

$

2.14 - 13.84

 

 

$

7.23

 

Granted

 

 

449,450

 

 

 

5.21 - 7.25

 

 

 

6.61

 

Cancelled

 

 

(44,076

)

 

 

6.55 - 13.84

 

 

 

9.00

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2019

 

 

550,040

 

 

 

2.14 - 13.53

 

 

 

6.58

 

Granted

 

 

444,557

 

 

 

4.89 - 6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

 

2.22 - 13.53

 

 

 

6.91

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020 (2)

 

 

951,669

 

 

 

2.14 - 12.55

 

 

 

6.41

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(113,310

)

 

 

4.89 - 11.53

 

 

 

6.64

 

Exercised (1)

 

 

(44,070

)

 

 

5.21 - 7.25

 

 

 

5.58

 

Outstanding at December 31, 2021 (2)

 

 

1,111,687

 

 

$

2.14-12.55

 

 

$

6.41

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

62,778

 

 

$

2.14-13.53

 

 

$

7.60

 

December 31, 2020

 

 

178,307

 

 

 

2.14-12.55

 

 

 

6.33

 

December 31, 2021

 

 

320,922

 

 

 

2.14-12.55

 

 

 

6.53

 
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0.2 million for the year ended December 31, 2021 and $0 for the years ended December 31, 2020, and 2019.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2021 and the related exercise price of the underlying options, was $0.1 million for outstanding options and $0.1 million for exercisable options as of December 31, 2021. The remaining contractual life was 8.03 years for outstanding options and 7.07 years for exercisable options at December 31, 2021.
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the years ended December 31, 2021, 2020, and 2019.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2018

 

 

190,915

 

 

$

2.14 - 5.27

 

$

4.06

 

Granted

 

 

216,148

 

 

 

4.80 - 7.25

 

 

6.59

 

Cancelled

 

 

(3,946

)

 

 

3.93 - 6.55

 

 

4.97

 

Vested (1)

 

 

(118,238

)

 

 

2.06 - 4.80

 

 

3.89

 

Outstanding at December 31, 2019

 

 

284,879

 

 

 

3.95 - 7.25

 

 

6.01

 

Granted

 

 

229,408

 

 

 

4.89 - 6.68

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

 

3.95 - 7.25

 

 

6.93

 

Vested (1)

 

 

(89,392

)

 

 

3.95 - 6.55

 

 

5.37

 

Outstanding at December 31, 2020

 

 

416,140

 

 

 

4.39 - 7.25

 

 

6.24

 

Granted

 

 

258,120

 

 

 

6.79 - 8.40

 

 

7.38

 

Cancelled

 

 

(21,940

)

 

 

4.89 - 7.25

 

 

5.98

 

Vested (1)

 

 

(158,994

)

 

 

4.39 - 7.25

 

 

6.16

 

Outstanding at December 31, 2021(2)

 

 

493,326

 

 

$

4.89 - 7.25

 

$

6.87

 
(1)
The aggregate fair value of the restricted stock vested was $1.1 million, $0.6 million, and $0.7 million for the years ended December 31, 2021, 2020, and 2019.
The aggregate fair value of the restricted stock was $2.9 million as of December 31, 2021. The remaining vesting period was 3.17 years at December 31, 2021.
Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2021.

 

 

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

 

 

(106,717

)

 

 

4.89 - 7.25

 

 

 

6.41

 

Vested

 

 

(193,278

)

 

 

5.58 - 7.25

 

 

 

6.63

 

Outstanding at December 31, 2021

 

 

790,765

 

 

$

4.89 - 7.25

 

 

$

6.52

 
v3.22.0.1
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Segment Data The following tables present segment data as of and for the years ended December 31, 2021, 2020, and 2019.

Year Ended December 31, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC (1)

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

118,305

 

 

$

34,204

 

 

$

6,592

 

 

 

$

(1,483

)

 

$

—

 

 

$

1,348

 

 

$

158,966

 

Total interest expense

 

 

9,993

 

 

 

4,153

 

 

 

2,720

 

 

 

 

5,914

 

 

 

546

 

 

 

7,814

 

 

 

31,140

 

Net interest income (loss)

 

 

108,312

 

 

 

30,051

 

 

 

3,872

 

 

 

 

(7,397

)

 

 

(546

)

 

 

(6,466

)

 

 

127,826

 

Provision for loan losses

 

 

7,671

 

 

 

2,750

 

 

 

—

 

 

 

 

(7,752

)

 

 

—

 

 

 

1,953

 

 

 

4,622

 

Net interest income (loss) after loss provision

 

 

100,641

 

 

 

27,301

 

 

 

3,872

 

 

 

 

355

 

 

 

(546

)

 

 

(8,419

)

 

 

123,204

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

12,567

 

 

 

—

 

 

 

12,567

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(9,559

)

 

 

—

 

 

 

(9,559

)

Other income (expense), net

 

 

(30,156

)

 

 

(11,640

)

 

 

3,101

 

 

 

 

(1,991

)

 

 

(5,108

)

 

 

1,455

 

 

 

(44,339

)

Net income (loss) before taxes

 

 

70,485

 

 

 

15,661

 

 

 

6,973

 

 

 

 

(1,636

)

 

 

(2,646

)

 

 

(6,964

)

 

 

81,873

 

Income tax (provision) benefit

 

 

(18,699

)

 

 

(4,155

)

 

 

(1,850

)

 

 

 

433

 

 

 

(1,498

)

 

 

1,552

 

 

 

(24,217

)

Net income (loss) after taxes

 

$

51,786

 

 

$

11,506

 

 

$

5,123

 

 

 

$

(1,203

)

 

$

(4,144

)

 

$

(5,412

)

 

$

57,656

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

928,885

 

 

$

429,416

 

 

$

73,713

 

 

 

$

4,812

 

 

$

—

 

 

$

1,933

 

 

$

1,438,759

 

Total assets

 

 

896,223

 

 

 

371,781

 

 

 

103,631

 

 

 

 

42,011

 

 

 

—

 

 

 

459,411

 

 

 

1,873,057

 

Total funds borrowed

 

 

710,616

 

 

 

294,786

 

 

 

82,169

 

 

 

 

69,221

 

 

 

—

 

 

 

328,358

 

 

 

1,485,150

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.00

%

 

 

3.01

%

 

 

5.85

%

 

 

 

(1.15

)%

 

 

20.35

%

 

 

(1.89

)%

 

 

3.12

%

Return on average equity

 

 

30.01

 

 

 

15.04

 

 

 

29.23

 

 

 

 

(5.75

)

 

 

885.29

 

 

 

(13.62

)

 

 

21.24

 

Interest yield

 

 

13.94

 

 

 

9.30

 

 

 

10.41

 

 

 

 

(18.77

)

 

N/A

 

 

N/A

 

 

 

11.48

 

Net interest margin

 

 

12.76

 

 

 

8.17

 

 

 

6.12

 

 

 

 

(93.60

)

 

N/A

 

 

N/A

 

 

 

9.26

 

Reserve coverage

 

 

3.37

 

 

 

1.68

 

 

 

1.49

 

(1)

 

 

65.74

 

 

N/A

 

 

N/A

 

 

 

3.37

 

Delinquency status(2)

 

 

0.41

 

 

 

0.03

 

 

 

0.10

 

(1)

 

 

—

 

 

N/A

 

 

N/A

 

 

 

0.28

 

Charge-off ratio(4)

 

 

0.30

 

 

 

0.15

 

 

 

—

 

(3)

 

 

95.40

 

 

N/A

 

 

N/A

 

 

 

0.85

 
(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.
(5)
The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale.

Year Ended December 31, 2020

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

110,706

 

 

$

27,273

 

 

$

6,926

 

 

 

$

(1,518

)

 

$

—

 

 

$

1,575

 

 

$

144,962

 

Total interest expense

 

 

13,013

 

 

 

5,699

 

 

 

2,538

 

 

 

 

3,610

 

 

 

163

 

 

 

9,128

 

 

 

34,151

 

Net interest income (loss)

 

 

97,693

 

 

 

21,574

 

 

 

4,388

 

 

 

 

(5,128

)

 

 

(163

)

 

 

(7,553

)

 

 

110,811

 

Provision for loan losses

 

 

23,736

 

 

 

3,778

 

 

 

—

 

 

 

 

42,276

 

 

 

—

 

 

 

27

 

 

 

69,817

 

Net interest income (loss) after loss provision

 

 

73,957

 

 

 

17,796

 

 

 

4,388

 

 

 

 

(47,404

)

 

 

(163

)

 

 

(7,580

)

 

 

40,994

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

20,042

 

 

 

—

 

 

 

20,042

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(8,366

)

 

 

—

 

 

 

(8,366

)

Other income (expense), net

 

 

(27,341

)

 

 

(9,611

)

 

 

(3,196

)

 

 

 

(30,366

)

 

 

(7,973

)

 

 

(11,164

)

 

 

(89,651

)

Net income (loss) before taxes

 

 

46,616

 

 

 

8,185

 

 

 

1,192

 

 

 

 

(77,770

)

 

 

3,540

 

 

 

(18,744

)

 

 

(36,981

)

Income tax (provision) benefit

 

 

(12,004

)

 

 

(2,108

)

 

 

(299

)

 

 

 

19,520

 

 

 

(889

)

 

 

5,854

 

 

 

10,074

 

Net income (loss) after taxes

 

$

34,612

 

 

$

6,077

 

 

$

893

 

 

 

$

(58,250

)

 

$

2,651

 

 

$

(12,890

)

 

$

(26,907

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

765,338

 

 

$

328,876

 

 

$

62,037

 

 

 

$

12,725

 

 

$

—

 

 

$

3,314

 

 

$

1,172,290

 

Total assets

 

 

777,605

 

 

 

340,494

 

 

 

80,622

 

 

 

 

124,554

 

 

 

33,711

 

 

 

285,425

 

 

 

1,642,411

 

Total funds borrowed

 

 

621,735

 

 

 

272,284

 

 

 

65,924

 

 

 

 

98,636

 

 

 

8,689

 

 

 

244,987

 

 

 

1,312,255

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.59

%

 

 

2.07

%

 

 

1.07

%

 

 

 

(33.21

)%

 

 

7.98

%

 

 

(5.06

)%

 

 

(2.16

)%

Return on average equity

 

 

22.93

 

 

 

10.35

 

 

 

5.17

 

 

 

 

(165.21

)

 

 

(363.66

)

 

 

(23.29

)

 

 

(10.90

)

Interest yield

 

 

14.90

 

 

 

9.66

 

 

 

10.51

 

 

 

 

(2.11

)

 

N/A

 

 

N/A

 

 

 

11.32

 

Net interest margin

 

 

13.15

 

 

 

7.62

 

 

 

6.66

 

 

 

 

(7.14

)

 

N/A

 

 

N/A

 

 

 

8.65

 

Reserve coverage

 

 

3.45

 

 

 

1.54

 

 

 

0.00

 

(1)

 

 

66.31

 

 

N/A

 

 

N/A

 

 

 

4.68

 

Delinquency status(2)

 

 

0.70

 

 

 

0.05

 

 

 

0.11

 

(1)

 

 

3.57

 

 

N/A

 

 

N/A

 

 

 

0.57

 

Charge-off ratio

 

 

1.95

 

 

 

0.44

 

 

 

0.04

 

(3)

 

 

59.38

 

 

N/A

 

 

N/A

 

 

 

5.00

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

Year Ended December 31, 2019

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

99,463

 

 

$

19,943

 

 

$

7,183

 

 

 

$

3,665

 

 

$

—

 

 

$

2,308

 

 

$

132,562

 

Total interest expense

 

 

13,304

 

 

 

4,757

 

 

 

2,833

 

 

 

 

7,962

 

 

 

159

 

 

 

6,030

 

 

 

35,045

 

Net interest income (loss)

 

 

86,159

 

 

 

15,186

 

 

 

4,350

 

 

 

 

(4,297

)

 

 

(159

)

 

 

(3,722

)

 

 

97,517

 

Provision for loan losses

 

 

28,638

 

 

 

1,598

 

 

 

364

 

 

 

 

16,331

 

 

 

—

 

 

 

455

 

 

 

47,386

 

Net interest income (loss) after loss provision

 

 

57,521

 

 

 

13,588

 

 

 

3,986

 

 

 

 

(20,628

)

 

 

(159

)

 

 

(4,177

)

 

 

50,131

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

18,742

 

 

 

—

 

 

 

18,742

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(8,996

)

 

 

—

 

 

 

(8,996

)

Other income (expense), net

 

 

(23,490

)

 

 

(7,520

)

 

 

(1,149

)

 

 

 

(10,493

)

 

 

(6,942

)

 

 

(7,946

)

 

 

(57,540

)

Net income (loss) before taxes

 

 

34,031

 

 

 

6,068

 

 

 

2,837

 

 

 

 

(31,121

)

 

 

2,645

 

 

 

(12,123

)

 

 

2,337

 

Income tax (provision) benefit

 

 

(8,813

)

 

 

(1,572

)

 

 

(684

)

 

 

 

7,596

 

 

 

(329

)

 

 

3,461

 

 

 

(341

)

Net income (loss) after taxes

 

$

25,218

 

 

$

4,496

 

 

$

2,153

 

 

 

$

(23,525

)

 

$

2,316

 

 

$

(8,662

)

 

$

1,996

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

695,257

 

 

$

244,716

 

 

$

66,405

 

 

 

$

105,022

 

 

$

—

 

 

$

3,362

 

 

$

1,114,762

 

Total assets

 

 

707,377

 

 

 

252,704

 

 

 

84,924

 

 

 

 

217,483

 

 

 

31,538

 

 

 

247,641

 

 

 

1,541,667

 

Total funds borrowed

 

 

563,805

 

 

 

201,605

 

 

 

68,666

 

 

 

 

176,825

 

 

 

7,794

 

 

 

150,898

 

 

 

1,169,593

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

2.20

%

 

 

2.44

%

 

 

 

(9.73

)%

 

 

7.28

%

 

 

(3.71

)%

 

 

(0.12

)%

Return on average equity

 

 

17.19

 

 

 

10.22

 

 

 

12.21

 

 

 

 

(48.49

)

 

 

(96.37

)

 

 

(14.26

)

 

 

(0.59

)

Interest yield

 

 

15.39

 

 

 

9.50

 

 

 

11.39

 

 

 

 

2.88

 

 

N/A

 

 

N/A

 

 

 

11.75

 

Net interest margin

 

 

13.33

 

 

 

7.24

 

 

 

6.90

 

 

 

 

(3.38

)

 

N/A

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

2.53

 

 

 

1.05

 

 

 

0.00

 

(1)

 

 

19.48

 

 

N/A

 

 

N/A

 

 

 

3.97

 

Delinquency status(2)

 

 

0.84

 

 

 

0.07

 

 

 

0.15

 

(1)

 

 

2.04

 

 

N/A

 

 

N/A

 

 

 

0.76

 

Charge-off ratio

 

 

2.69

 

 

 

0.37

 

 

 

1.30

 

(3)

 

 

14.68

 

 

N/A

 

 

N/A

 

 

 

3.60

 
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.
v3.22.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Under Employment Agreements future minimum payments under these agreements of approximately $12.1 million as follows:

(Dollars in thousands)

 

 

 

2022

 

$

3,996

 

2023

 

 

2,816

 

2024

 

 

2,272

 

2025

 

 

2,094

 

2025

 

 

872

 

Thereafter

 

 

—

 

Total

 

$

12,050

 
v3.22.0.1
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 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.

 

 

December 31,

 

 

 

2021

 

 

2020

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

124,484

 

 

$

124,484

 

 

$

112,040

 

 

$

112,040

 

Equity investments

 

 

9,726

 

 

 

9,726

 

 

 

9,746

 

 

 

9,746

 

Investment securities

 

 

44,772

 

 

 

44,772

 

 

 

46,792

 

 

 

46,792

 

Loans receivable

 

 

1,438,758

 

 

 

1,438,758

 

 

 

1,172,290

 

 

 

1,172,290

 

Accrued interest receivable (2)

 

 

10,621

 

 

 

10,621

 

 

 

10,338

 

 

 

10,338

 

Equity securities(3)

 

 

1,950

 

 

 

1,950

 

 

 

—

 

 

 

—

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed (4)

 

 

1,478,001

 

 

 

1,478,001

 

 

 

1,312,255

 

 

 

1,312,591

 

Accrued interest payable (2)

 

 

3,395

 

 

 

3,395

 

 

 

4,673

 

 

 

4,673

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million as of December 31, 2021 and $1.5 million as of December 31, 2020 of interest-bearing deposits categorized as level 2. See Note 15.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 15.
(3)
Included within other assets on the balance sheet.
(4)
All publicly traded notes were paid off in April 2021. As of December 31, 2020, publicly traded unsecured notes traded at a premium to par of $0.3 million.  
v3.22.0.1
Fair Value of Assets and liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

December 31, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

44,772

 

 

 

—

 

 

 

44,772

 

Equity securities

 

 

1,950

 

 

 

—

 

 

 

—

 

 

 

1,950

 

Total(1)

 

$

1,950

 

 

$

46,022

 

 

$

—

 

 

$

47,972

 
(1)
Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 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

 

 

—

 

 

 

46,792

 

 

 

—

 

 

 

46,792

 

Total(1)

 

$

—

 

 

$

48,292

 

 

$

—

 

 

$

48,292

 
Total unrealized gains of $1.0 million, 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 December 31, 2021 and 2020.

December 31, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

9,726

 

 

$

9,726

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

35,571

 

 

 

35,571

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

37,430

 

 

 

37,430

 

Total

 

$

—

 

 

$

—

 

 

$

82,727

 

 

$

82,727

 

 

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 December 31, 2021 and 2020.

(Dollars in thousands)

 

Fair Value
at December 31, 2021

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

9,453

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

273

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

35,571

 

 

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

 

 

37,430

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$3.6 - 49.8

 

(Dollars in thousands)

 

Fair Value
at December 31, 2020

 

 

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.
v3.22.0.1
Parent Company Only Condensed Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheets

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

Condensed Balance Sheets

 

 

December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

Cash

 

$

40,540

 

 

$

33,743

 

Investment in bank subsidiary(1)

 

 

367,945

 

 

 

325,417

 

Investment in non-bank subsidiaries

 

 

88,018

 

 

 

88,165

 

Income tax receivable

 

 

18,763

 

 

 

1,470

 

Loan collateral in process of foreclosure

 

 

5,811

 

 

 

9,960

 

Net loans receivable

 

 

3,302

 

 

 

12,293

 

Other assets

 

 

8,674

 

 

 

10,912

 

Total assets

 

$

533,053

 

 

$

481,960

 

Liabilities

 

 

 

 

 

 

Long-term borrowings(2)

 

$

151,103

 

 

$

100,367

 

Short-term borrowings(2)

 

 

—

 

 

 

53,359

 

Intercompany payables

 

 

39,703

 

 

 

51,352

 

Deferred tax liabilities

 

 

35,799

 

 

 

24,172

 

Other liabilities

 

 

19,408

 

 

 

21,302

 

Total liabilities

 

 

246,013

 

 

 

250,552

 

Total stockholders’ equity

 

 

287,040

 

 

 

231,408

 

Total liabilities and equity

 

$

533,053

 

 

$

481,960

 
(1)
Includes $174.3 million and $175.7 million of goodwill and intangible assets of the Company which relate specifically to the Bank.
(2)
Includes $2.9 million and $2.2 million of deferred financing costs as of December 31, 2021 and 2020.
Condensed Statements of Operations

Condensed Statements of Operations

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Interest and dividend income (loss)

 

$

16,446

 

 

$

4,773

 

 

$

(2,552

)

Interest expense

 

 

11,209

 

 

 

8,602

 

 

 

8,856

 

Net interest income (loss)

 

 

5,237

 

 

 

(3,829

)

 

 

(11,408

)

Provision (benefit) for loan losses

 

 

(4,718

)

 

 

5,127

 

 

 

6,377

 

Net interest income (loss) after provision for loan losses

 

 

9,955

 

 

 

(8,956

)

 

 

(17,785

)

Other income (expense), net

 

 

(6,224

)

 

 

(22,062

)

 

 

(13,686

)

Income (loss) before income taxes and undistributed earnings of subsidiaries

 

 

3,731

 

 

 

(31,018

)

 

 

(31,471

)

Income tax benefit

 

 

4,452

 

 

 

10,454

 

 

 

7,013

 

Income (loss) before undistributed earnings of subsidiaries

 

 

8,183

 

 

 

(20,564

)

 

 

(24,458

)

Undistributed earnings (losses) of subsidiaries

 

 

45,925

 

 

 

(14,219

)

 

 

22,696

 

Net income (loss) attributable to parent company

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)
Condensed Statements of Other Comprehensive Income (Loss)

Condensed Statements of Other Comprehensive Income (Loss)

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

Net (income) loss

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Other comprehensive income (loss)

 

 

(978

)

 

 

1,013

 

 

 

1,081

 

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

 

$

53,130

 

 

$

(33,770

)

 

$

(681

)

 
Condensed Statements of Cash Flow

Condensed Statements of Cash Flow

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income (loss)/net decrease in net assets resulting from operations

 

$

54,108

 

 

$

(34,783

)

 

$

(1,762

)

Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations
   to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Equity in undistributed (earnings) losses of subsidiaries

 

 

(60,304

)

 

 

6,622

 

 

 

(22,696

)

(Benefit) provision for loan losses

 

 

(4,718

)

 

 

5,127

 

 

 

6,377

 

Depreciation and amortization

 

 

4,485

 

 

 

5,357

 

 

 

5,484

 

Change in deferred and other tax assets/liabilities, net

 

 

(5,666

)

 

 

(3,317

)

 

 

(2,225

)

Net change in loan collateral in process of foreclosure

 

 

1,619

 

 

 

4,940

 

 

 

906

 

Net change in unrealized depreciation on investments

 

 

—

 

 

 

3,493

 

 

 

1,786

 

Gain on extinguishment of debt

 

 

(2,204

)

 

 

—

 

 

 

—

 

Net realized gains on sale of investments

 

 

(11,701

)

 

 

—

 

 

 

—

 

Stock-based compensation expense

 

 

2,261

 

 

 

2,031

 

 

 

1,221

 

Decrease (increase) in other assets

 

 

(1,150

)

 

 

2,299

 

 

 

988

 

Increase in deferred financing costs

 

 

(1,504

)

 

 

(1,233

)

 

 

(1,297

)

Decrease in intercompany payables

 

 

(11,649

)

 

 

(3,552

)

 

 

(8,448

)

(Decrease) increase in other liabilities

 

 

(1,894

)

 

 

2,336

 

 

 

(1,759

)

Net cash used for operating activities

 

 

(38,317

)

 

 

(10,680

)

 

 

(21,425

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Loans originated

 

 

—

 

 

 

(14

)

 

 

(3,312

)

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

 

 

28,552

 

 

 

1,193

 

 

 

2,313

 

Purchases of investments

 

 

(90

)

 

 

(2,304

)

 

 

(1,125

)

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

 

 

666

 

 

 

1,276

 

 

 

2,403

 

Investment in subsidiaries

 

 

(3,500

)

 

 

 

 

 

 

Dividends from subsidiaries

 

 

19,000

 

 

 

7,597

 

 

 

6,248

 

Net cash provided by investing activities

 

 

44,628

 

 

 

7,748

 

 

 

6,527

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

51,400

 

 

 

33,600

 

 

 

36,000

 

Repayments of funds borrowed

 

 

(51,155

)

 

 

(1,402

)

 

 

(17,735

)

Proceeds from the exercise of stock options

 

 

241

 

 

 

—

 

 

 

—

 

Net cash provided by financing activities

 

 

486

 

 

 

32,198

 

 

 

18,265

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

6,797

 

 

 

29,266

 

 

 

3,367

 

Cash and cash equivalents, beginning of period

 

 

33,743

 

 

 

4,477

 

 

 

1,110

 

Cash and cash equivalents, end of period

 

$

40,540

 

 

$

33,743

 

 

$

4,477

 
v3.22.0.1
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 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 $ 8.7  
Number of medallions purchased out of foreclosure | Medallion 159  
Net realizable value of medallions $ 1.0 $ 2.9
Medallion Financing Trust I [Member]    
Subsidiary or Equity Method Investee [Line Items]    
Aggregate assets of trust $ 36.1  
v3.22.0.1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
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   $ 1,300,000          
Non-marketable securities   9,700,000 $ 9,700,000        
Equity Method Investment Other Than Temporary Impairment   $ 800,000          
Percentage of investments sold   80.00%          
Proceed from sale shares of investment   $ 12,500,000          
Gain on sale of investment   11,300,000          
Equity securities, at cost   300          
Investment securities Amortized to interest income   100,000 300,000 $ 100,000      
Appreciation in Investment in Medallion Bank   26,200,000          
Net loan origination costs   26,100,000 20,700,000        
Net amortization to income   (7,700,000) 6,000,000.0 5,000,000.0      
Past Due   $ 41,761,000 40,541,000        
Percentage of write down of loan balance   40.00%          
Loans pledged as collateral   $ 0 15,400,000        
Loans write down to collateral value   (32,948,000) 75,844,000        
Principal portion of loans serviced, fair value   $ 20,500,000 107,100,000        
Intangible assets useful life   20 years          
Goodwill   $ 150,803,000 150,803,000        
Intangible assets, net   23,480,000 51,090,000        
Amortization of intangible assets   1,445,000 1,445,000 1,446,000      
Financing receivable, recorded investment, 90 days past due and still accruing   0 0        
Depreciation and amortization   300,000 400,000 400,000      
Amortization expense     2,600,000 $ 2,300,000      
Deferred costs   $ 7,100,000 $ 5,800,000        
Potential dilutive common shares excluded from EPS computation   421,190 934,003 462,180      
Stock based compensation award   317,398 444,557 449,450      
Stock based compensation award, Amount   $ 2,300,000 $ 2,000,000.0 $ 1,200,000      
Stock based compensation award per diluted common share   $ 0.09 $ 0.08 $ 0.05      
Unrecognized compensation cost related to unvested stock options and restricted stock   $ 3,000,000.0          
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period   13 months          
Tier 1 leverage capital to total assets ratio   15.00%          
Tier 1 leverage capital ratio   17.53%          
Capital conversation buffer   2.50%          
Restricted Shares [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Stock based compensation award   258,120 229,408 216,148      
Restricted Stock Units [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Stock based compensation award   16,803 47,156 26,040      
Medallion [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due   $ 7,340,000 $ 4,282,000        
Loans write down to collateral value   (15,287,000) 49,361,000        
Financing receivable, recorded investment, 90 days past due and still accruing   0 0        
New York City [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Loans write down to collateral value   79,500          
91+ [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due   $ 4,024,000 6,878,000        
91+ [Member] | Medallion [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due     $ 1,290,000        
91+ [Member] | Loans [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Total loans more than 90 days past due ,percentage   0.28% 0.57%        
Past Due   $ 4,000.0 $ 6,900,000        
Medallion Bank [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Amortization of intangible assets     0        
RPAC [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due             $ 12,400,000
Financing receivable, recorded investment, 90 days past due and still accruing   500,000 2,700,000        
Loan portfolio premium amortized to interest income   2,200,000 $ 3,000,000.0 $ 3,300,000      
Bank Holding Company Accounting [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Net premium on investment securities   300,000          
Private Placement [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Interest reserve         $ 3,000,000.0    
Other Assets              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Equity securities, fair value   $ 2,000,000.0          
Equity Securities Member              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Interest reserve           $ 3,000,000.0  
Purchased of equity securities with readily determinable fair value $ 2,000,000.0            
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          
v3.22.0.1
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Equity Securities, FV-NI, Gain (Loss) [Abstract]  
Net losses recognized during the period on equity securities $ (50)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (50)
v3.22.0.1
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investments In Loans [Line Items]    
Intangibles assets $ 23,480 $ 51,090
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 17,874 18,974
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets 5,606 5,951
Race Organization [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 0 $ 26,165
v3.22.0.1
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]      
Net income (loss) available to common stockholders $ 54,108 $ (34,783) $ (1,762)
Weighted average common shares outstanding applicable to basic EPS 24,599,804 24,445,452 24,342,979
Effect of dilutive stock options 92,602 0 0
Effect of restricted stock grants 250,763 0 0
Adjusted weighted average common shares outstanding applicable to diluted EPS 24,943,169 24,445,452 24,342,979
Basic income (loss) per share $ 2.20 $ (1.42) $ (0.07)
Diluted income (loss) per share $ 2.17 $ (1.42) $ (0.07)
v3.22.0.1
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Accounting Policies [Abstract]    
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, 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 $ 193,459 $ 148,507
Tier 1 capital 262,247 217,295
Total capital 281,211 233,460
Average assets 1,495,726 1,283,664
Risk-weighted assets $ 1,482,678 $ 1,243,783
Leverage ratio 17.5 16.9
Capital ratios for operating segments 13.1 11.9
Tier 1 capital ratio 17.7 17.5
Total capital ratio 19.0 18.8
v3.22.0.1
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 44,494 $ 45,155
Gross Unrealized Gains 732 1,684
Gross Unrealized Losses (454) (47)
Fair Value 44,772 46,792
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 35,469 34,929
Gross Unrealized Gains 672 1,495
Gross Unrealized Losses (403) (45)
Fair Value 35,738 36,379
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 9,025 10,226
Gross Unrealized Gains 60 189
Gross Unrealized Losses (51) (2)
Fair Value $ 9,034 $ 10,413
v3.22.0.1
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 10  
Amortized Cost, due after one year through five years 9,907  
Amortized Cost, due after five years through ten years 9,919  
Amortized Cost, due after ten years 24,658  
Amortized Cost 44,494 $ 45,155
Market Value, due in one year or less 10  
Market Value, due after one year through five years 10,107  
Market Value, due after five years through ten years 10,107  
Market Value, due after ten years 24,548  
Market Value, total $ 44,772 $ 46,792
v3.22.0.1
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (412) $ (45)
Fair Value, Less than Twelve Months 18,454 4,028
Gross Unrealized Losses, Twelve Months and Over (42) (2)
Fair Value, Twelve Months and Over 1,956 196
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (403) (45)
Fair Value, Less than Twelve Months 16,330 4,028
Gross Unrealized Losses, Twelve Months and Over   0
Fair Value, Twelve Months and Over   0
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (9) 0
Fair Value, Less than Twelve Months 2,124 0
Gross Unrealized Losses, Twelve Months and Over (42) (2)
Fair Value, Twelve Months and Over $ 1,956 $ 196
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 1,461,622 $ 1,205,776  
Allowance for loan losses (50,166) [1] (57,548) [1] $ (46,093)
Net loans receivable 1,438,758 1,172,290  
Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans 1,488,924 1,229,838 1,160,855
Allowance for loan losses 50,166 57,548  
Net loans receivable $ 1,438,758 $ 1,172,290  
Percentage of total gross loans 100.00% 100.00%  
Recreation [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 931,859 [2] $ 767,374 [3]  
Allowance for loan losses (32,435) [4] (27,348) [5]  
Recreation [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 961,320 $ 792,686 713,332
Percentage of total gross loans 65.00% 65.00%  
Home Improvement [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 438,931 [2] $ 336,885 [3]  
Allowance for loan losses (7,356) [6] (5,157) [7]  
Home Improvement [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 436,772 $ 334,033 247,324
Percentage of total gross loans 29.00% 27.00%  
Commercial [Member]      
Student Loan Portfolio By Program [Line Items]      
Allowance for loan losses $ (1,141)    
Commercial [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 76,696 $ 65,327 69,767
Percentage of total gross loans 5.00% 5.00%  
Medallion [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 14,046 [2] $ 36,153 [3]  
Allowance for loan losses (9,234) (25,043)  
Medallion [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 14,046 $ 37,768 $ 130,432
Percentage of total gross loans 1.00% 3.00%  
Strategic Partnership [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 90 [2] $ 24 [3]  
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 90 $ 24  
Percentage of total gross loans 0.00%    
[1] As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[3] Excludes loan premiums of $2.7 million and $21.3 million of capitalized loan origination costs.
[4] As of December 31, 2021 allowance reflects $4.2 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[5] As of December 31, 2020 allowance reflects $6.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[6] As of December 31, 2021 allowance reflects $0.5 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[7] As of December 31, 2020 allowance reflects $0.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
v3.22.0.1
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance $ 1,205,776    
Charge-offs, net [1] 12,004 $ (58,362)  
Transfer to loan collateral in process of foreclosure, net (15,888) (47,274)  
Amortization of origination costs (7,996) (6,022) $ (4,952)
Paid-in-kind interest 814 1,188 834
Loans transferred to other foreclosed property 0 1,800  
Gross loans, ending balance 1,461,622 1,205,776  
Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [2] 767,374    
Transfer to loan collateral in process of foreclosure, net (10,431) (14,871)  
Gross loans, ending balance 931,859 [3] 767,374 [2]  
Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [2] 336,885    
Gross loans, ending balance 438,931 [3] 336,885 [2]  
Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [2] 36,153    
Transfer to loan collateral in process of foreclosure, net (5,457) [4] (32,403)  
Gross loans, ending balance 14,046 [3] 36,153 [2]  
Strategic Partnership [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [2] 24    
Charge-offs, net 0 0  
Gross loans, ending balance 90 [3] 24 [2]  
Bank Holding Company Accounting [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 1,229,838 1,160,855  
Loan originations 747,371 497,221  
Principal payments, sales, and maturities 464,448 321,831  
Charge-offs, net 12,004 58,362  
Transfer to loan collateral in process of foreclosure, net 15,888 47,254  
Amortization of origination costs (7,996) 6,022  
Amortization of loan premium 2,182 3,042  
FASB origination costs, net 13,419 8,885  
Paid-in-kind interest 814 1,188  
Loans transferred to other foreclosed property   (1,800)  
Gross loans, ending balance 1,488,924 1,229,838 1,160,855
Bank Holding Company Accounting [Member] | Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 792,686 713,332  
Loan originations 441,921 294,885  
Principal payments, sales, and maturities 264,424 (187,989)  
Charge-offs, net 2,581 (14,457)  
Transfer to loan collateral in process of foreclosure, net 10,431 (14,871)  
Amortization of origination costs (9,678) (7,809)  
Amortization of loan premium 221 (191)  
FASB origination costs, net 14,048 9,786  
Gross loans, ending balance 961,320 792,686 713,332
Bank Holding Company Accounting [Member] | Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 334,033 247,324  
Loan originations 258,038 193,098  
Principal payments, sales, and maturities 155,442 (105,813)  
Charge-offs, net 551 (1,229)  
Transfer to loan collateral in process of foreclosure, net 0    
Amortization of origination costs 1,671 1,910  
Amortization of loan premium 346 (320)  
FASB origination costs, net (631) (937)  
Gross loans, ending balance 436,772 334,033 247,324
Bank Holding Company Accounting [Member] | Commercial [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 65,327 69,767  
Loan originations 36,415 7,575  
Principal payments, sales, and maturities 25,873 (13,183)  
Charge-offs, net 0 (28)  
Transfer to loan collateral in process of foreclosure, net 0    
Amortization of origination costs 13 8  
Amortization of loan premium    
FASB origination costs, net    
Paid-in-kind interest 814 1,188  
Gross loans, ending balance 76,696 65,327 69,767
Bank Holding Company Accounting [Member] | Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 37,768 130,432  
Principal payments, sales, and maturities 7,778 (13,207)  
Charge-offs, net 8,872 (42,648)  
Transfer to loan collateral in process of foreclosure, net 5,457 (32,383)  
Amortization of origination costs (2) (131)  
Amortization of loan premium 1,615 (2,531)  
FASB origination costs, net 2 36  
Loans transferred to other foreclosed property   (1,800)  
Gross loans, ending balance 14,046 37,768 $ 130,432
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 24    
Loan originations 10,997 1,663  
Principal payments, sales, and maturities 10,931 1,639  
Gross loans, ending balance $ 90 $ 24  
[1] As of December 31, 2021, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $258.3 million, some of which represents collection opportunities for the Company.
[2] Excludes loan premiums of $2.7 million and $21.3 million of capitalized loan origination costs.
[3] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[4] As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 62 medallions in the Newark market, 335 medallions in the Chicago market, and 48 medallions in various other markets.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance $ 57,548 [1] $ 46,093  
Total charge-offs 32,948 (75,844)  
Total recoveries 20,944 17,482  
Net charge-offs [2] 12,004 (58,362)  
Provision for loan losses 4,622 69,817 $ 47,386
Allowance for loan losses - ending balance 50,166 [1] 57,548 [1] $ 46,093
Recreation [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance [3] 27,348    
Total charge-offs 14,712 (23,543)  
Total recoveries 12,131 9,086  
Allowance for loan losses - ending balance 32,435 [4] 27,348 [3]  
Home Improvement [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance [5] 5,157    
Total charge-offs 2,949 (2,909)  
Total recoveries 2,398 1,680  
Allowance for loan losses - ending balance 7,356 [6] 5,157 [5]  
Commercial [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Total charge-offs   (31)  
Total recoveries   3  
Allowance for loan losses - ending balance 1,141    
Medallion [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance 25,043    
Total charge-offs 15,287 (49,361)  
Total recoveries 6,415 6,713  
Allowance for loan losses - ending balance $ 9,234 $ 25,043  
[1] As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2] As of December 31, 2021, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $258.3 million, some of which represents collection opportunities for the Company.
[3] As of December 31, 2020 allowance reflects $6.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[4] As of December 31, 2021 allowance reflects $4.2 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[5] As of December 31, 2020 allowance reflects $0.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[6] As of December 31, 2021 allowance reflects $0.5 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]      
Cumulative charges of loans and loans process of foreclosure $ 37,430 [1] $ 54,560 [1] $ 52,711
Allowance for loan losses - ending balance 50,166 [2] 57,548 [2] $ 46,093
Net charge-offs [3] (12,004) 58,362  
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 loans process of foreclosure $ 258,300    
[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 $7.4 million and $3.5 million as of December 31, 2021 and 2020.
[2] As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3] As of December 31, 2021, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $258.3 million, some of which represents collection opportunities for the Company.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 50,166 [1] $ 57,548 [1] $ 46,093
Percentage of Allowance 100.00% 100.00%  
Allowance as a Percent of Loan Category 3.37% 4.68%  
Allowance as a Percent of Nonaccrual 141.03% 93.17%  
Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 32,435 [2] $ 27,348 [3]  
Percentage of Allowance 64.00% [2] 48.00% [3]  
Allowance as a Percent of Loan Category 3.37% [2] 3.45% [3]  
Allowance as a Percent of Nonaccrual 91.18% [2] 378.20% [3]  
Loans And Leases Receivable Allowance Covered $ 4,200 $ 6,800  
Home Improvement [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 7,356 [4] $ 5,157 [5]  
Percentage of Allowance 15.00% [4] 9.00% [5]  
Allowance as a Percent of Loan Category 1.68% [4] 1.54% [5]  
Allowance as a Percent of Nonaccrual [4] 20.68%    
Commercial [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 1,141    
Percentage of Allowance 2.00%    
Allowance as a Percent of Loan Category 1.49%    
Allowance as a Percent of Nonaccrual 3.21%    
Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 9,234 $ 25,043  
Percentage of Allowance 19.00% 43.00%  
Allowance as a Percent of Loan Category 65.74% 66.31%  
Allowance as a Percent of Nonaccrual 25.96% 68.01%  
Loans And Leases Receivable Allowance Covered $ 500 $ 800  
[1] As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2] As of December 31, 2021 allowance reflects $4.2 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[3] As of December 31, 2020 allowance reflects $6.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[4] As of December 31, 2021 allowance reflects $0.5 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[5] As of December 31, 2020 allowance reflects $0.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Parenthecial) (Detail) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Medallion [Member]    
Financing Receivable, Past Due [Line Items]    
Loans and Leases Receivable, Allowance, Covered $ 0.5 $ 0.8
Recreation [Member]    
Financing Receivable, Past Due [Line Items]    
Loans and Leases Receivable, Allowance, Covered $ 4.2 $ 6.8
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Receivables [Abstract]      
Total nonaccrual loans $ 35,571 $ 61,767 $ 26,484
Interest foregone for the year 1,620 3,311 2,152
Amount of foregone interest applied to principal for the year 432 602 254
Interest foregone life-to-date 3,623 5,252 2,744
Amount of foregone interest applied to principal life-to-date $ 942 $ 792 $ 471
Percentage of nonaccrual loans to gross loan portfolio 2.40% 5.00% 2.00%
Percentage of allowance for loan losses to nonaccrual loans 141.00% 93.00% 174.00%
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,488,924 $ 1,229,838
Percentage of Nonperforming to Total 2.42% 5.06%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,452,859 $ 1,167,664
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 36,065 62,174
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 961,320 $ 792,686
Percentage of Nonperforming to Total 0.58% 0.96%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 955,763 $ 785,047
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 5,557 7,639
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 436,772 $ 334,033
Percentage of Nonperforming to Total 0.03% 0.05%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 436,640 $ 333,862
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 132 171
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 76,696 $ 65,327
Percentage of Nonperforming to Total 21.29% 25.40%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 60,366 $ 48,731
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 16,330 16,596
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 14,046 $ 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 $ 14,046 $ 37,768 [1]
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 90 24
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 90 $ 24
[1] Includes medallion loan premiums of $1.6 million as of December 31, 2020.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]    
Loan premiums $ 0.5 $ 2.7
Non - Performing [Member] | Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loan premiums   $ 1.6
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance $ 36,065 $ 62,174
Unpaid principal balance, With related allowance 37,007 62,778
Related Allowance, With related allowance 10,168 25,310
Average Investment Recorded, With related allowance 40,080 65,933
Interest Income (Expense) Recognized, With related allowance 608 1,150
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 5,557 7,639
Unpaid principal balance, With related allowance 5,557 7,639
Related Allowance, With related allowance 188 264
Average Investment Recorded, With related allowance 5,618 7,949
Interest Income (Expense) Recognized, With related allowance 515 560
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 132 171
Unpaid principal balance, With related allowance 132 171
Related Allowance, With related allowance 2 3
Average Investment Recorded, With related allowance 108 172
Interest Income (Expense) Recognized, With related allowance 0 2
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 16,330 16,596
Unpaid principal balance, With related allowance 16,360 16,600
Related Allowance, With related allowance 1,141  
Average Investment Recorded, With related allowance 16,816 16,884
Interest Income (Expense) Recognized, With related allowance 93 123
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 14,046 37,768
Unpaid principal balance, With related allowance 14,958 38,368
Related Allowance, With related allowance 8,837 25,043
Average Investment Recorded, With related allowance 17,538 40,928
Interest Income (Expense) Recognized, With related allowance $ 0 $ 465
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 41,761 $ 40,541
Total gross loans 1,461,622 1,205,776
Accruing 0 0
Current 41,761 40,541
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,419,861 1,165,235
Current 1,419,861 1,165,235
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 23,564 24,890
Current 23,564 24,890
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 14,173 8,773
Current 14,173 8,773
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 4,024 6,878
Current 4,024 6,878
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 30,424 34,983
Total gross loans 931,859 [1] 767,374 [2]
Accruing 0 0
Current 30,424 34,983
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 901,435 732,391
Current 901,435 732,391
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 20,037 22,058
Current 20,037 22,058
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,569 7,582
Current 6,569 7,582
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,818 5,343
Current 3,818 5,343
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,128 1,201
Total gross loans 438,931 [1] 336,885 [2]
Accruing 0 0
Current 2,128 1,201
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 436,803 335,684
Current 436,803 335,684
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,517 813
Current 1,517 813
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 479 218
Current 479 218
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 132 170
Current 132 170
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,869 75
Total gross loans 76,696 [1] 65,340 [2]
Accruing 0 0
Current 1,869 75
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74,827 65,265
Current 74,827 65,265
Commercial Loans [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,795  
Current 1,795  
Commercial Loans [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due   973
Current   973
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 75
Current 74 75
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 7,340 4,282
Total gross loans 14,046 [1] 36,153 [2]
Accruing 0 0
Current 7,340 4,282
Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,706 31,871
Current 6,706 31,871
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 215 2,019
Current 215 2,019
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 7,125  
Current 7,125  
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due   1,290
Current   1,290
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Total gross loans 90 [1] 24 [2]
Accruing 0 0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 90 24
Current $ 90 $ 24
[1] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[2] Excludes loan premiums of $2.7 million and $21.3 million of capitalized loan origination costs.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Receivables [Abstract]    
Loan premiums $ 0.5 $ 2.7
Capitalized loan origination costs $ 26.8 $ 21.3
v3.22.0.1
Loans and Allowance for Loan Losses - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
TDR
Dec. 31, 2020
USD ($)
TDR
Medallion
Dec. 31, 2019
USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]      
Weighted average loan-to-value ratio 295.00% 327.00%  
Allowance for loan loss $ 50,166 [1] $ 57,548 [1] $ 46,093
Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 1,100 59  
Allowance for loan loss $ 9,234 $ 25,043  
Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 56,000,000 77  
Allowance for loan loss $ 32,435 [2] $ 27,348 [3]  
Commercial Loans [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR   1  
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | Medallion   5  
TDR investment value 200 $ 1,000  
Allowance for loan loss $ 100 $ 300  
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 31 43  
TDR investment value $ 300 $ 100  
Allowance for loan loss   $ 100  
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member] | Maximum [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan loss $ 100    
[1] As of December 31, 2021 and 2020, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2] As of December 31, 2021 allowance reflects $4.2 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
[3] As of December 31, 2020 allowance reflects $6.8 million of loan loss allowance having been netted with loan principal in connection with the initial consolidation of Medallion Bank in 2018.
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of TDRs (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
TDR
Dec. 31, 2020
USD ($)
TDR
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 56,000,000 77
Pre- Modification Investment $ 668 $ 1,053
Post- Modification Investment $ 585 $ 749
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR   1
Pre- Modification Investment   $ 1,821
Post- Modification Investment   $ 1,821
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 1,100 59
Pre- Modification Investment $ 3,071 $ 33,505
Post- Modification Investment $ 3,071 $ 33,505
v3.22.0.1
Loans and Allowance for Loan Losses - Summary of Activities of the Loans Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance $ 54,560 [1] $ 52,711
Transfer from loans, net 15,888 47,274
Sales (9,879) (7,812)
Cash payments received (14,173) (5,687)
Collateral valuation adjustments (8,966) (31,926)
Loans collateral in process of foreclosure - ending balance [1] 37,430 54,560
Recreation [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 1,432 1,476
Transfer from loans, net 10,431 14,871
Sales (6,951) (7,512)
Cash payments received 0  
Collateral valuation adjustments (3,192) (7,403)
Loans collateral in process of foreclosure - ending balance 1,720 1,432
Medallion [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 53,128 [2] 51,235
Transfer from loans, net 5,457 [2] 32,403
Sales (2,928) [2] (300)
Cash payments received (14,173) [2] (5,687)
Collateral valuation adjustments (5,774) [2] (24,523)
Loans collateral in process of foreclosure - ending balance [2] $ 35,710 $ 53,128
[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 $7.4 million and $3.5 million as of December 31, 2021 and 2020.
[2] As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 62 medallions in the Newark market, 335 medallions in the Chicago market, and 48 medallions in various other markets.
v3.22.0.1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
2022 $ 405,311  
2023 247,965  
2024 339,648  
2025 179,798  
2026 194,779  
Thereafter 109,750  
Long term debt $ 1,477,251 $ 1,312,005 [1]
Interest Rate [2] 1.82%  
Deposits [Member]    
Debt Instrument [Line Items]    
2022 [3] $ 405,311  
2023 [3] 242,965  
2024 [3] 289,685  
2025 [3] 165,798  
2026 [3] 149,529  
Thereafter [3] 0  
Long term debt [3] $ 1,253,288 1,067,822
Interest Rate [2] 1.20%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2022 $ 0  
2023 5,000  
2024 13,963  
2025 14,000  
2026 14,000  
Thereafter 23,000  
Long term debt $ 69,963 68,008 [1]
Interest Rate [2] 2.72%  
Retail and Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2022 $ 0  
2023 0  
2024 36,000  
2025 0  
2026 31,250  
Thereafter 53,750  
Long term debt $ 121,000 103,225 [1]
Interest Rate [2] 7.66%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
2022 $ 0  
2023 0  
2024 0  
2025 0  
2026 0  
Thereafter 33,000  
Long term debt $ 33,000 33,000 [1]
Interest Rate [2] 2.31%  
Other Borrowings [Member]    
Debt Instrument [Line Items]    
2022 $ 0  
2023 0  
2024 0  
2025 0  
2026 0  
Thereafter 0  
Long term debt $ 0 8,689 [1]
Interest Rate [2] 0.00%  
Notes Payable to Banks [Member]    
Debt Instrument [Line Items]    
2022 $ 0  
2023 0  
2024 0  
2025 0  
2026 0  
Thereafter 0  
Long term debt $ 0 $ 31,261 [1]
Interest Rate [2] 0.00%  
[1] Excludes deferred financing costs of $7.1 million and $5.8 million as of December 31, 2021 and 2020.
[2] Weighted average contractual rate as of December 31, 2021.
[3] Balance excludes $0.8 million and $0.3 million of strategic partner reserve deposits as of December 31, 2021 and 2020.
v3.22.0.1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]    
Deferred costs $ 7.1 $ 5.8
Reserve Deposits $ 0.8 $ 0.3
v3.22.0.1
Funds Borrowed - Additional Information (Detail)
 1 Months Ended 12 Months Ended
Feb. 28, 2021
USD ($)
Jul. 31, 2020
USD ($)
Jun. 17, 2020
USD ($)
Dec. 31, 2007
USD ($)
Jun. 30, 2007
USD ($)
shares
Nov. 30, 2018
USD ($)
Apr. 30, 2016
USD ($)
Dec. 31, 2021
USD ($)
Deposit
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
Apr. 30, 2021
USD ($)
Mar. 15, 2021
USD ($)
Aug. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
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.               $ 8,700,000 $ 1,000,000.0            
Debt instrument face amount   $ 25,000,000.0                          
Debentures borrowed [1]               219,973,000 153,718,000            
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion               4,800,000              
Gain on debt extinguishment               $ 4,626,000 $ 4,145,000          
Maturity date               2021              
Maturity date Feb. 28, 2026 Sep. 24, 2024                          
Issue of common stock | shares               28,124,629 27,828,871            
Preferred securities repurchased from a third party investor       $ 2,000,000.0                      
Short term promissory note               $ 0 $ 87,334,000            
CARES Act [Member]                              
Debt Instrument [Line Items]                              
Debt instrument face amount     $ 700,000                        
Annual interest rate     1.00%                        
Travis Burt [Member]                              
Debt Instrument [Line Items]                              
Maturity date               Dec. 31, 2021              
Short term promissory note               $ 500,000              
Retail and Privately Placed Notes [Member]                              
Debt Instrument [Line Items]                              
Debt instrument interest rate Percentage 7.25%           9.00%   7.50%         8.25%  
Aggregate principal amount $ 25,000,000.0           $ 33,600,000   $ 33,600,000     $ 8,500,000 $ 6,000,000.0 $ 30,000,000.0  
Maturity date               2024              
Maturity date               Dec. 31, 2027              
Gain loss on sales of loans net               $ 4,100,000              
Net proceeds from offering             $ 31,800,000                
Retail and Privately Placed Notes [Member] | 7.25% Unsecured Senior Notes Due February 2026 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount                     $ 3,000,000.0 $ 3,300,000      
Retail and Privately Placed Notes [Member] | 7.50% Unsecured Senior Notes Due December 2027 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount                     $ 11,700,000        
Dz Bank [Member]                              
Debt Instrument [Line Items]                              
Debt instrument interest rate Percentage           4.00%                  
Debt instrument periodic payment of principal and accrued interest           $ 70,000                  
Debt instrument face amount           $ 1,400,000                  
Debt instrument, frequency of periodic payment           quarterly                  
Debt instrument expiration date           2023-12                  
Debenture Mature2021                              
Debt Instrument [Line Items]                              
Debentures borrowed               8,500,000              
Debt instrument commitments drawn               $ 15,500,000              
Preferred Securities [Member]                              
Debt Instrument [Line Items]                              
Maturity date               Sep. 30, 2037              
Sale of preferred securities         $ 35,000,000.0                    
Issue of common stock | shares         1,083                    
Preferred securities outstanding               $ 33,000,000.0              
Preferred Securities [Member] | 90 day LIBOR [Member]                              
Debt Instrument [Line Items]                              
Basis spread on variable rate               0.21%              
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         $ 36,100,000                    
Small Business Administration Debentures and Borrowings [Member]                              
Debt Instrument [Line Items]                              
Loan commitment term               4 years 6 months              
Commitment fee percentage   1.00%           1.00%              
Principal amount of loan                             $ 34,000,000.0
Debt instrument interest rate Percentage               3.25%              
Extended maturity date               Apr. 30, 2024              
Debt instrument commitments available               $ 9,500,000              
Debt instrument outstanding amount               70,000,000.0              
Debt instrument remaining amount               9,000,000.0              
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion   $ 9,500,000                          
FSVC's [Member]                              
Debt Instrument [Line Items]                              
Principal amount of loan                             $ 33,500,000
Notes Payable to Banks Due in April 2021 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount               23,000,000.0              
Notes Payable to Banks [Member]                              
Debt Instrument [Line Items]                              
Gain on debt extinguishment               4,600,000              
Maximum [Member]                              
Debt Instrument [Line Items]                              
Time deposits               100,000              
Minimum [Member]                              
Debt Instrument [Line Items]                              
Time deposits               $ 250,000              
Brokerage [Member] | Maximum [Member]                              
Debt Instrument [Line Items]                              
Average brokerage fee percentage in relation to the maturity of deposits                 0.15%            
[1] Includes $4.0 million and $3.1 million of deferred financing costs as of December 31, 2021 and 2020. Refer to Note 5 for more details.
v3.22.0.1
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Dec. 31, 2021
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 119,027
Over three months through six months 168,243
Over six months through one year 118,041
Over one year 847,977
Total deposits $ 1,253,288
v3.22.0.1
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - USD ($)
$ in Millions
 12 Months Ended
Feb. 28, 2021
Jul. 31, 2020
Dec. 31, 2020
Dec. 31, 2021
Notes Payable [Line Items]        
Maturity Dates Feb. 28, 2026 Sep. 24, 2024    
Maturity Dates     Feb. 28, 2021  
Maturity Dates     Sep. 30, 2021  
Note Amounts   $ 25.0    
Average Interest Rate [1]       1.82%
Notes Payable to Banks [Member]        
Notes Payable [Line Items]        
Average Interest Rate [1]       0.00%
[1] Weighted average contractual rate as of December 31, 2021.
v3.22.0.1
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Operating lease costs $ 2,287 $ 2,384 $ 2,184
Operating cash flows from operating leases 2,454 2,821 2,419
Right-of-use asset obtained in exchange for lease liability $ (118) $ 251 $ 2,413
v3.22.0.1
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property Equipment And Right Of Use Asset Net Property Equipment And Right Of Use Asset Net
Operating lease right-of-use assets $ 10,045 $ 11,737
Other current liabilities $ 2,159 $ 2,004
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 9,053 $ 11,018
Total operating lease liabilities $ 11,212 $ 13,022
Weighted average remaining lease term 5 years 4 months 24 days 6 years 4 months 24 days
Weighted average discount rate 5.54% 5.54%
v3.22.0.1
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
2022 $ 2,439  
2023 2,356  
2024 2,373  
2025 2,390  
2026 2,408  
Thereafter 1,164  
Total lease payments 13,130  
Less imputed interest 1,918  
Total operating lease liabilities $ 11,212 $ 13,022
v3.22.0.1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (43,894) $ (44,799)
Provision for loan losses 11,057 19,556
Net operating loss carryforwards [1] 12,167 30,493
Accrued expenses, compensation, and other assets 2,579 1,174
Unrealized gains (losses) on other investments (2,176) 6,769
Total deferred tax liability (15,915) (345)
Valuation allowance [2] (2,295) (462)
Deferred tax liability, net $ (18,210) $ (807)
[1] As of December 31, 2021, the Company and its subsidiaries had an estimated $52.4 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $9.9 million of December 31, 2021.
[2] During the year ended December 31, 2021, it was determined that the likelihood of utilization of certain net operating losses was remote and a valuation allowance of $1.8 million was assessed against these assets.
v3.22.0.1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Valuation allowance $ 1.8
Medallion Chicago [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 52.4
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets $ 9.9
Medallion Chicago [Member] | December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1.7
v3.22.0.1
Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current      
Federal $ (3,550) $ 0 $ 0
State (1,563) (260) 519
Deferred      
Federal (13,686) 7,702 (489)
State (5,418) 2,632 (371)
Total income tax (provision) benefit $ (24,217) $ 10,074 $ (341)
v3.22.0.1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Statutory Federal income tax (provision) benefit at 21% $ (17,193) $ 7,766 $ (642)
State and local income taxes, net of federal income tax benefit (3,363) 1,518 (120)
Valuation allowance against net operating losses (1,833) 1,228 380
Change in effective state income tax rates and accrual (1,691) (405) (251)
Income attributable to non-controlling interest 628 460 309
Non deductible expenses (178) (453) 0
Other (587) (40) (17)
Total income tax (provision) benefit $ (24,217) $ 10,074 $ (341)
v3.22.0.1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Statutory Federal income tax (provision) benefit percentage 21.00% 21.00% 21.00%
v3.22.0.1
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 6 Months Ended 12 Months Ended
Jun. 15, 2018
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Mar. 01, 2016
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock option outstanding     1,111,687 [1] 951,669 [1] 550,040 144,666      
Stock option exercisable     320,922 178,307 [1] 62,778        
Unvested shares of common stock outstanding     790,765 773,362          
Weighted average fair value of options granted     $ 6.79            
Intrinsic value of options vested     $ 0.1 $ 0.1 $ 0.1        
Vest on June 17, 2022 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares outstanding     16,803            
Restricted Stock Units [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares outstanding     16,803            
Number of shares outstanding, vested restricted stock units     47,272            
Number of shares vested and settled     47,272            
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares outstanding       47,156          
Weighted average grant price, granted     $ 3.16 $ 3.16          
Restricted Stock Units [Member] | Vest on June 17, 2022 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Weighted average grant price, granted     $ 8.87            
Restricted Shares [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares outstanding     493,326 [2] 416,140 [2] 284,879 190,915      
Weighted average fair value of options granted     $ 3.50 $ 3.09 $ 3.10        
Number of shares, granted     258,120 229,408 216,148        
Weighted average grant price, granted     $ 7.38 $ 6.21 $ 6.59        
Number of shares vested and settled [3]     158,994 89,392 118,238        
2018 Equity Incentive Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant 241,919   2,210,968            
Shares were rolled into the 2018 Plan     399,987            
2015 Restricted Stock Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant             700,000    
Unvested shares of common stock outstanding     493,326            
2006 Stock Option Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Issuance of maximum number of shares approved                 800,000
Number of additional shares available for issuance     0            
2006 Stock Option Plan [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, options term     10 years            
2015 Director Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant 258,334             300,000  
2015 Director Plan [Member] | Non Employee Director One [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant 12,000                
Amended Director Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant     200,000            
Number of additional shares available for issuance     0            
Amended Director Plan [Member] | Director [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares available for grant     9,000            
Amended Director Plan [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, options term   10 years              
Vesting period 10 years                
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2021 and the related exercise price of the underlying options, was $0.1 million for outstanding options and $0.1 million for exercisable options as of December 31, 2021. The remaining contractual life was 8.03 years for outstanding options and 7.07 years for exercisable options at December 31, 2021.
[2] The aggregate fair value of the restricted stock was $2.9 million as of December 31, 2021. The remaining vesting period was 3.17 years at December 31, 2021.
[3] The aggregate fair value of the restricted stock vested was $1.1 million, $0.6 million, and $0.7 million for the years ended December 31, 2021, 2020, and 2019.
v3.22.0.1
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
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% 1.23% 2.29%
Expected dividend yield 0.00% 0.00% 0.66%
Expected life of option in years [1] 6 years 3 months 6 years 3 months 6 years 3 months
Expected volatility [2] 53.98% 51.03% 49.03%
[1] Expected life is calculated using the simplified method.
[2] We determine our expected volatility based on our historical volatility.
v3.22.0.1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options beginning balance 951,669 [1] 550,040 144,666
Granted 317,398 444,557  
Cancelled (113,310) (42,928) (44,076)
Exercise of stock options,shares [2] 44,070 0 0
Number of options ending balance 1,111,687 [1] 951,669 [1] 550,040
Options exercisable 320,922 178,307 [1] 62,778
Exercise price per share, lower range limit beginning balance $ 2.14 [1] $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance   13.53 13.84
Exercise price per share, exercised [2]   0 0
Exercise price per share, lower range limit ending balance 2.14 [1] 2.14 [1] 2.14
Exercise price per share, upper range limit ending balance 12.55 [1]   13.53
Exercise price per share, option exercisable lower range limit 2.14 2.14 [1] 2.14
Exercise price per share, option exercisable upper range limit 12.55 12.55 [1] 13.53
Weighted average exercise price, beginning balance 6.41 [1] 6.58 7.23
Weighted average exercise price, granted 6.79 6.24 6.61
Weighted average exercise price, cancelled 6.64 6.91 9.00
Weighted average exercise price, exercised [2] 5.58 0 0
Weighted average exercise price, ending balance 6.41 [1] 6.41 [1] 6.58
Weighted average exercise price, options exercisable 6.53 6.33 [1] $ 7.60
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted     449,450
Exercise price per share, granted   4.89 $ 5.21
Exercise price per share, cancelled 4.89 2.22 6.55
Exercise price per share, exercised 5.21    
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, upper range limit beginning balance [1] 12.55    
Exercise price per share, granted 6.79 6.68 7.25
Exercise price per share, cancelled 11.53 13.53 $ 13.84
Exercise price per share, exercised $ 7.25    
Exercise price per share, upper range limit ending balance [1]   $ 12.55  
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2021 and the related exercise price of the underlying options, was $0.1 million for outstanding options and $0.1 million for exercisable options as of December 31, 2021. The remaining contractual life was 8.03 years for outstanding options and 7.07 years for exercisable options at December 31, 2021.
[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0.2 million for the year ended December 31, 2021 and $0 for the years ended December 31, 2020, and 2019.
v3.22.0.1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Aggregate intrinsic value for option exercised $ 200 $ 0 $ 0
Aggregate intrinsic value of option outstanding 100    
Aggregate intrinsic value of option exercisable $ 100    
Remaining contractual life of option outstanding 8 years 10 days    
Remaining contractual life of option exercisable 7 years 25 days    
v3.22.0.1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant price per share, cancelled, lower limit $ 5.58    
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 416,140 [1] 284,879 190,915
Number of shares, granted 258,120 229,408 216,148
Number of shares, cancelled (21,940) (8,755) (3,946)
Number of shares, vested [2] (158,994) (89,392) (118,238)
Number of shares, ending balance 493,326 [1] 416,140 [1] 284,879
Grant price per share, lower range limit beginning balance $ 4.39 [1] $ 3.95 $ 2.14
Grant price per share, upper range limit beginning balance 7.25 [1] 7.25 5.27
Grant price per share, granted, lower limit 6.79 4.89 4.80
Grant price per share, granted, upper limit 8.40 6.68 7.25
Grant price per share, cancelled, lower limit 4.89 3.95 3.93
Grant price per share, cancelled, upper limit 7.25 7.25 6.55
Grant price per share, vested, lower limit 4.39 [2] 3.95 2.06
Grant price per share, vested, upper limit 7.25 [2] 6.55 4.80
Grant price per share, lower range limit ending balance 4.89 4.39 [1] 3.95
Grant price per share, upper range limit ending balance 7.25 7.25 [1] 7.25
Weighted average grant price beginning balance 6.24 [1] 6.01 4.06
Weighted average grant price, granted 7.38 6.21 6.59
Weighted average grant price, cancelled 5.98 6.93 4.97
Weighted average grant price, vested [2] 6.16 5.37 3.89
Weighted average grant price, ending balance $ 6.87 [1] $ 6.24 [1] $ 6.01
[1] The aggregate fair value of the restricted stock was $2.9 million as of December 31, 2021. The remaining vesting period was 3.17 years at December 31, 2021.
[2] The aggregate fair value of the restricted stock vested was $1.1 million, $0.6 million, and $0.7 million for the years ended December 31, 2021, 2020, and 2019.
v3.22.0.1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate fair value of restricted stock vested $ 1.1 $ 0.6 $ 0.7
Aggregate fair value of restricted stock outstanding $ 2.9    
Remaining vesting period of restricted stock 3 years 2 months 1 day    
v3.22.0.1
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]    
Number of options beginning balance 773,362  
Number of options, granted 317,398 444,557
Number of options, cancelled (106,717)  
Number of options, vested (193,278)  
Number of options ending balance 790,765 773,362
Exercise price per share, Granted $ 6.79  
Exercise price per share beginning balance, Lower limit 4.89  
Exercise price per share beginning balance, Upper limit 7.25  
Exercise price per share, Cancelled, Lower limit 4.89  
Exercise price per share, Cancelled, Upper limit 7.25  
Exercise price per share, Vested, Lower limit 5.58  
Exercise price per share, Vested, Upper limit 7.25  
Exercise price per share ending balance, Lower limit 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 7.25 7.25
Weighted average exercise price 6.42  
Weighted average exercise price, granted 6.79  
Weighted average exercise price, cancelled 6.41  
Weighted average exercise price, vested 6.63  
Weighted average exercise price $ 6.52 $ 6.42
v3.22.0.1
Segment Reporting - Additional Information (Detail)
 12 Months Ended
Dec. 31, 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  
Capital ratios for operating segments 13.1 11.9
Operating Segments [Member]    
Segment Reporting Disclosure [Line Items]    
Capital ratios for operating segments 20  
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 30.00%  
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 5.00%  
Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 6.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 16.00%  
Texas [Member] | Home Improvement    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 9.00%  
Florida [Member] | Home Improvement    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Ohio [Member] | Home Improvement    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 8.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Recreational Vehicles [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 60.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 19.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Trailers [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 9.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Midwest [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 51.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net Member | New York City [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 89.00%  
v3.22.0.1
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 158,966 $ 144,962 $ 132,562
Total interest expense 31,140 34,151 35,045
Net interest income (loss) 127,826 110,811 97,517
Provision for loan losses 4,622 69,817 47,386
Net interest income (loss) after provision (benefit) for loan losses 123,204 40,994 50,131
Sponsorship and race winnings 12,567 20,042 18,742
Race team related expenses (9,559) (8,366) (8,996)
Other income (expense), net (44,339) (89,651) (57,540)
Income (loss) before income taxes 81,871 (36,981) 2,337
net income loss before taxes 81,873 (36,981) 2,337
Income tax (provision) benefit (24,217) 10,074 (341)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 57,654 (26,907) 1,996
net income loss after taxes 57,656 (26,907) 1,996
Balance Sheet Data      
Total loans net 1,438,758 1,172,290  
total loans net 1,438,759 1,172,290 1,114,762
Total assets 1,873,057 1,642,411 1,541,667
Total funds borrowed $ 1,485,150 $ 1,312,255 $ 1,169,593
Selected Financial Ratios      
Return on average assets 3.12% (2.16%) (0.12%)
Return on average equity 21.24% (10.90%) (0.59%)
Interest yield 11.48% 11.32% 11.75%
Net interest margin 9.26% 8.65% 8.64%
Reserve coverage 3.37% 4.68% 3.97%
Delinquency status 0.28% [1] 0.57% [2] 0.76% [3]
Charge-off ratio (0.85%) [4] 5.00% 3.60%
RPAC [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss)
Total interest expense 546 163 159
Net interest income (loss) (546) (163) (159)
Provision for loan losses
Net interest income (loss) after provision (benefit) for loan losses (546) (163) (159)
Sponsorship and race winnings 12,567 20,042 18,742
Race team related expenses (9,559) (8,366) (8,996)
Other income (expense), net (5,108) (7,973) (6,942)
Income (loss) before income taxes (2,646) 3,540 2,645
Income tax (provision) benefit (1,498) (889) (329)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (4,144) 2,651 2,316
Balance Sheet Data      
Total loans net
Total assets 33,711 31,538
Total funds borrowed $ 8,689 $ 7,794
Selected Financial Ratios      
Return on average assets 20.35% 7.98% 7.28%
Return on average equity 885.29% (363.66%) (96.37%)
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 118,305 $ 110,706 $ 99,463
Total interest expense 9,993 13,013 13,304
Net interest income (loss) 108,312 97,693 86,159
Provision for loan losses 7,671 23,736 28,638
Net interest income (loss) after provision (benefit) for loan losses 100,641 73,957 57,521
Sponsorship and race winnings
Race team related expenses
Other income (expense), net (30,156) (27,341) (23,490)
Income (loss) before income taxes 70,485 46,616 34,031
Income tax (provision) benefit (18,699) (12,004) (8,813)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 51,786 34,612 25,218
Balance Sheet Data      
Total loans net 928,885 765,338 695,257
Total assets 896,223 777,605 707,377
Total funds borrowed $ 710,616 $ 621,735 $ 563,805
Selected Financial Ratios      
Return on average assets 6.00% 4.59% 3.84%
Return on average equity 30.01% 22.93% 17.19%
Interest yield 13.94% 14.90% 15.39%
Net interest margin 12.76% 13.15% 13.33%
Reserve coverage 3.37% 3.45% 2.53%
Delinquency status 0.41% [1] 0.70% [2] 0.84% [2]
Charge-off ratio 0.30% [4] 1.95% 2.69%
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 34,204 $ 27,273 $ 19,943
Total interest expense 4,153 5,699 4,757
Net interest income (loss) 30,051 21,574 15,186
Provision for loan losses 2,750 3,778 1,598
Net interest income (loss) after provision (benefit) for loan losses 27,301 17,796 13,588
Sponsorship and race winnings
Race team related expenses
Other income (expense), net (11,640) (9,611) (7,520)
Income (loss) before income taxes 15,661 8,185 6,068
Income tax (provision) benefit (4,155) (2,108) (1,572)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 11,506 6,077 4,496
Balance Sheet Data      
Total loans net 429,416 328,876 244,716
Total assets 371,781 340,494 252,704
Total funds borrowed $ 294,786 $ 272,284 $ 201,605
Selected Financial Ratios      
Return on average assets 3.01% 2.07% 2.20%
Return on average equity 15.04% 10.35% 10.22%
Interest yield 9.30% 9.66% 9.50%
Net interest margin 8.17% 7.62% 7.24%
Reserve coverage 1.68% 1.54% 1.05%
Delinquency status 0.03% [1] 0.05% [2] 0.07% [2]
Charge-off ratio 0.15% [4] 0.44% 0.37%
Operating Segments [Member] | Commercial Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 6,592 $ 6,926 $ 7,183
Total interest expense 2,720 2,538 2,833
Net interest income (loss) 3,872 4,388 4,350
Provision for loan losses 364
Net interest income (loss) after provision (benefit) for loan losses 3,872 4,388 3,986
Sponsorship and race winnings
Race team related expenses
Other income (expense), net 3,101 (3,196) (1,149)
Income (loss) before income taxes 6,973 1,192 2,837
Income tax (provision) benefit (1,850) (299) (684)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 5,123 893 2,153
Balance Sheet Data      
Total loans net 73,713 62,037 66,405
Total assets 103,631 80,622 84,924
Total funds borrowed $ 82,169 $ 65,924 $ 68,666
Selected Financial Ratios      
Return on average assets 5.85% 1.07% 2.44%
Return on average equity 29.23% 5.17% 12.21%
Interest yield 10.41% 10.51% 11.39%
Net interest margin 6.12% 6.66% 6.90%
Reserve coverage 1.49% [5] 0.00% [6] 0.00% [6]
Delinquency status 0.10% [1],[5] 0.11% [2],[6] 0.15% [2],[7]
Charge-off ratio 0.04% [8] 1.30% [9]
Operating Segments [Member] | Medallion Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ (1,483) $ (1,518) $ 3,665
Total interest expense 5,914 3,610 7,962
Net interest income (loss) (7,397) (5,128) (4,297)
Provision for loan losses (7,752) 42,276 16,331
Net interest income (loss) after provision (benefit) for loan losses 355 (47,404) (20,628)
Sponsorship and race winnings
Race team related expenses
Other income (expense), net (1,991) (30,366) (10,493)
Income (loss) before income taxes (1,636) (77,770) (31,121)
Income tax (provision) benefit 433 19,520 (7,596)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (1,203) (58,250) (23,525)
Balance Sheet Data      
Total loans net 4,812 12,725 105,022
Total assets 42,011 124,554 217,483
Total funds borrowed $ 69,221 $ 98,636 $ 176,825
Selected Financial Ratios      
Return on average assets (1.15%) (33.21%) (9.73%)
Return on average equity (5.75%) (165.21%) (48.49%)
Interest yield (18.77%) (2.11%) 2.88%
Net interest margin (93.60%) (7.14%) (3.38%)
Reserve coverage 65.74% 66.31% 19.48%
Delinquency status 3.57% [2] 2.04% [2]
Charge-off ratio 95.40% 59.38% 14.68%
Intersegment Eliminations [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 1,348 $ 1,575 $ 2,308
Total interest expense 7,814 9,128 6,030
Net interest income (loss) (6,466) (7,553) (3,722)
Provision for loan losses 1,953 27 455
Net interest income (loss) after provision (benefit) for loan losses (8,419) (7,580) (4,177)
Sponsorship and race winnings
Race team related expenses
Other income (expense), net 1,455 (11,164) (7,946)
Income (loss) before income taxes (6,964) (18,744) (12,123)
Income tax (provision) benefit 1,552 5,854 (3,461)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (5,412) (12,890) (8,662)
Balance Sheet Data      
Total loans net 1,933 3,314 3,362
Total assets 459,411 285,425 247,641
Total funds borrowed $ 328,358 $ 244,987 $ 150,898
Selected Financial Ratios      
Return on average assets (1.89%) (5.06%) (3.71%)
Return on average equity (13.62%) (23.29%) (14.26%)
[1] Loans 90 days or more past due.
[2] Loans 90 days or more past due.
[3] Loans 90 days or more past due.
[4] Negative balances indicate recoveries for the period.
[5] Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
[6] Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
[7] Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
[8] Ratio is based on total commercial lending balances, and relates to the total loan business.
[9] Ratio is based on total commercial lending balances, and relates to the total loan business.
v3.22.0.1
Commitments and Contingencies - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2026
Future minimum payments $ 12,050
Other Commitment $ 1,800
v3.22.0.1
Commitments and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail)
$ in Thousands
Dec. 31, 2021
USD ($)
Commitments And Contingencies [Abstract]  
2022 $ 3,996
2023 2,816
2024 2,272
2025 2,094
2025 872
Thereafter 0
Total $ 12,050
v3.22.0.1
Related Party Transactions - Additional Information (Detail) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 01, 2022
Mar. 31, 2021
Jun. 30, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]            
Salary from related party $ 239,000          
Repayments of note payable       $ 627,263,000 $ 526,064,000 $ 414,277,000
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     $ 133,000   $ 178,000  
Consulting services revenue from related party       4,200,000    
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       $ 7,600    
Interest percentage of Notes payable       2.00%    
v3.22.0.1
Stockholder's/Shareholder's Equity - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Stockholders Equity [Line Items]      
Stock repurchased during period 2,951,243 2,951,243  
Payment for repurchase of common stock $ 24,919,000 $ 24,919,000  
Stock Repurchase Program [Member]      
Stockholders Equity [Line Items]      
Stock purchased during period 0 0 0
Shares remain authorized for repurchase amount $ 22,874,509    
v3.22.0.1
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Ratios/supplemental data        
Total shareholders’ equity (net assets) $ 355,828 $ 304,561 $ 334,468 $ 290,204
v3.22.0.1
Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Contribution Plan Disclosure [Line Items]      
Minimum percentage of total annual compensation allowed to be deferred 1.00%    
Employer matching contribution, description Once eligible full-time employees have completed a minimum of one (1) year of service, and part time employees have worked at least 1,000 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to one-third of the first 6% of the employee’s annual contributions, subject to legal limits.    
Employee contributions to 401(k) Plan matched by company in an amount per employee of first 6% of employee's annual contributions 33.33%    
Defined benefit plan amount expense $ 0.3 $ 0.2 $ 0.2
v3.22.0.1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Financial assets      
Equity investments $ 9,726 $ 0 $ 9,746
Investment securities 44,772   46,792
Loans receivable 1,488,924   1,229,838
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 124,484   112,040
Equity investments 9,726   9,746
Investment securities 44,772   46,792
Loans receivable 1,438,758   1,172,290
Accrued interest receivable [2] 10,621   10,338
Equity securities, fair value 1,950  
Financial liabilities      
Funds borrowed [3] 1,478,001   1,312,255
Accrued interest payable [2] 3,395   4,673
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 124,484   112,040
Equity investments 9,726   9,746
Investment securities 44,772   46,792
Loans receivable 1,438,758   1,172,290
Accrued interest receivable [2] 10,621   10,338
Equity securities, fair value 1,950  
Financial liabilities      
Funds borrowed [3] 1,478,001   1,312,591
Accrued interest payable [2] $ 3,395   $ 4,673
[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million as of December 31, 2021 and $1.5 million as of December 31, 2020 of interest-bearing deposits categorized as level 2. See Note 15.
[2] Categorized as level 3 within the fair value hierarchy. See Note 15.
(3)
Included within other assets on the balance sheet.
[3] All publicly traded notes were paid off in April 2021. As of December 31, 2020, publicly traded unsecured notes traded at a premium to par of $0.3 million
v3.22.0.1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,300,000  
Publicly traded retail notes traded at a premium to par   $ 300
Level 2 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks   1,500,000
Fair Value Recurring [Member]    
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
v3.22.0.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Assets    
Interest-bearing deposits $ 1,300  
Level 2 [Member]    
Assets    
Interest-bearing deposits   $ 1,500
Fair Value Recurring [Member]    
Assets    
Interest-bearing deposits 1,250 1,500
Available for sale investment securities 44,772 46,792
Equity securities, fair value 1,950
Total 47,972 [1] 48,292 [2]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,950  
Total [1] 1,950  
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,500
Available for sale investment securities 44,772 46,792
Total $ 46,022 [1] $ 48,292 [2]
[1] Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.
[2] Total unrealized gains of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets.
v3.22.0.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]      
Net change in unrealized gains (losses) on investments, net of tax $ (978) $ 1,013 $ 1,081
v3.22.0.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Assets      
Impaired loans $ 20,500 $ 107,100  
Loan collateral in process of foreclosure 37,430 [1] 54,560 [1] $ 52,711
Fair Value, Nonrecurring      
Assets      
Equity securities, fair value 9,726 9,746  
Impaired loans 35,571 62,174  
Loan collateral in process of foreclosure 37,430 54,560  
Total 82,727 126,480  
Fair Value, Nonrecurring | Level 3 [Member]      
Assets      
Equity securities, fair value 9,726 9,746  
Impaired loans 35,571 62,174  
Loan collateral in process of foreclosure 37,430 54,560  
Total $ 82,727 $ 126,480  
[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 $7.4 million and $3.5 million as of December 31, 2021 and 2020.
v3.22.0.1
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 12 Months Ended
Dec. 31, 2021
USD ($)
$ / shares
Dec. 31, 2020
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value $ 20,500,000 $ 107,100,000  
Loan collateral in process of foreclosure $ 37,430,000 [1] $ 54,560,000 [1] $ 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 60 [2]  
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans value 0.0150    
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans value 0.0600    
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value [2] $ 0.0    
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 [2] 79,500    
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans value   1.50  
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Impaired loans value   6.00  
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 [3] 3,600 $ 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 [3] 49,800 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]      
Principal portion of loans serviced, fair value [2]   600  
Loan collateral in process of foreclosure value [2] 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]      
Principal portion of loans serviced, fair value [2]   108,700  
Loan collateral in process of foreclosure value [2] 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 securities, fair value 9,453,000   8,291,000
Level 3 [Member] | Equity Investments [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Equity Method Offering Price [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity securities, fair value     $ 1,455,000
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 securities, fair value 273,000    
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 35,571,000 62,174,000  
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Median Transfer Price [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure   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 $ 37,430,000 $ 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 $7.4 million and $3.5 million as of December 31, 2021 and 2020.
[2] Represents amount net of liquidation costs
[3] Relates to the recreation portfolio.
v3.22.0.1
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Dec. 31, 2021
Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Preferred stock, liquidation preference per share     $ 1,000
U.S. Treasury Securities [Member] | Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
US Treasury shares purchased   26,303  
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Initial public offering shares 1,840,000    
Preferred stock, aggregate liquidation amount $ 46.0    
Preferred stock, net of liquidation amount $ 42.5    
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   $ 26.3  
v3.22.0.1
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Assets      
Income tax receivable $ 833 $ 1,757  
Loan collateral in process of foreclosure 37,430 [1] 54,560 [1] $ 52,711
Net loans receivable 1,438,758 1,172,290  
Other assets 20,388 20,591  
Total assets 1,873,057 1,642,411 $ 1,541,667
Liabilities      
Long-term borrowings [2] 219,973 153,718  
Short-term borrowings 0 87,334  
Deferred tax liabilities 18,210 807  
Total liabilities 1,517,229 1,337,850  
Total stockholders’ equity 287,040 231,408  
Total liabilities and equity 1,873,057 1,642,411  
Parent Company [Member]      
Assets      
Cash 40,540 33,743  
Investment in bank subsidiaries [3] 367,945 325,417  
Investment in non-bank subsidiaries 88,018 88,165  
Income tax receivable 18,763 1,470  
Loan collateral in process of foreclosure 5,811 9,960  
Net loans receivable 3,302 12,293  
Other assets 8,674 10,912  
Total assets 533,053 481,960  
Liabilities      
Long-term borrowings [4] 151,103 100,367  
Short-term borrowings [4] 0 53,359  
Intercompany payables 39,703 51,352  
Deferred tax liabilities 35,799 24,172  
Other liabilities 19,408 21,302  
Total liabilities 246,013 250,552  
Total stockholders’ equity 287,040 231,408  
Total liabilities and equity $ 533,053 $ 481,960  
[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 $7.4 million and $3.5 million as of December 31, 2021 and 2020.
[2] Includes $4.0 million and $3.1 million of deferred financing costs as of December 31, 2021 and 2020. Refer to Note 5 for more details.
[3] Includes $174.3 million and $175.7 million of goodwill and intangible assets of the Company which relate specifically to the Bank.
[4] Includes $2.9 million and $2.2 million of deferred financing costs as of December 31, 2021 and 2020.
v3.22.0.1
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Condensed Balance Sheet Statements, Captions [Line Items]    
Intangibles assets $ 23,480 $ 51,090
Parent Company [Member]    
Condensed Balance Sheet Statements, Captions [Line Items]    
Goodwill and intangible assets 174,300 175,700
Deferred financing costs $ 2,900 $ 2,200
v3.22.0.1
Parent Company Only Condensed Financial Statements - Condensed Statements of Operations (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Condensed Income Statements, Captions [Line Items]      
Net interest income (loss) $ 127,826 $ 110,811 $ 97,517
Provision for loan losses 4,622 69,817 47,386
Net interest income (loss) after provision (benefit) for loan losses 123,204 40,994 50,131
Income (loss) before income taxes 81,871 (36,981) 2,337
Total net income (loss) attributable to Medallion Financial Corp. 54,108 (34,783) (1,762)
Parent Company [Member]      
Condensed Income Statements, Captions [Line Items]      
Interest and dividend income (loss) 16,446 4,773 (2,552)
Interest expense 11,209 8,602 8,856
Net interest income (loss) 5,237 (3,829) (11,408)
Provision for loan losses (4,718) 5,127 6,377
Net interest income (loss) after provision (benefit) for loan losses 9,955 (8,956) (17,785)
Other income (expense), net (6,224) (22,062) (13,686)
Income (loss) before income taxes 3,731 (31,018) (31,471)
Income tax benefit 4,452 10,454 7,013
Total net income (loss) attributable to Medallion Financial Corp. 8,183 (20,564) (24,458)
Undistributed earnings (losses) of subsidiaries 45,925 (14,219) 22,696
Net income (loss) attributable to parent company $ 54,108 $ (34,783) $ (1,762)
v3.22.0.1
Parent Company Only Condensed Financial Statements - Condensed Statements of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Condensed Statement of Income Captions [Line Items]      
Net income (loss) $ 57,654 $ (26,907) $ 1,996
Other comprehensive income (loss) (978) 1,013 1,081
Total comprehensive income (loss) attributable to Medallion Financial Corp. 53,130 (33,770) (681)
Parent Company [Member]      
Condensed Statement of Income Captions [Line Items]      
Net income (loss) 54,108 (34,783) (1,762)
Other comprehensive income (loss) (978) 1,013 (1,081)
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 53,130 $ (33,770) $ (681)
v3.22.0.1
Parent Company Only Condensed Financial Statements - Condensed Statements of Cash Flow (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes $ 57,654 $ (26,907) $ 1,996
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
(Benefit) provision for loan losses 4,622 69,817 47,386
Depreciation and amortization 6,519 7,714 7,499
Change in deferred and other tax assets/liabilities, net 18,327 (8,776) 853
Net change in value of loan collateral in process of foreclosure 8,966 31,926 11,838
Net change in unrealized depreciation on investments 0   1,734
Gain on extinguishment of debt (4,626) (4,145)
Net realized (gains) losses on sale of investments (17,380) 4,305 (1,820)
Stock-based compensation expense 2,261 2,030 1,221
Decrease (increase) in other assets (5,354) 2,223 2,838
Net cash provided by operating activities 78,726 78,706 64,935
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (760,790) (506,106) (471,069)
Proceeds from principal receipts, sales, and maturities of loans 464,448 321,831 251,653
Purchases of investments (19,354) (15,580) (10,507)
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 24,052 13,499 16,294
Net cash used for investing activities (238,321) (170,957) (206,510)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from funds borrowed 805,577 668,577 525,842
Repayments of time deposits and funds borrowed (627,263) (526,064) (414,277)
Proceeds from the exercise of stock options 241    
Net cash provided by financing activities 172,039 136,470 151,683
NET INCREASE IN CASH AND CASH EQUIVALENTS 12,444 44,219 10,108
Parent Company [Member]      
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes 54,108 (34,783) (1,762)
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
Equity in undistributed (earnings) losses of subsidiaries (45,925) 14,219 (22,696)
equity in undistributed earnings losses of subsidiaries (60,304) 6,622 (22,696)
(Benefit) provision for loan losses (4,718) 5,127 6,377
Depreciation and amortization 4,485 5,357 5,484
Change in deferred and other tax assets/liabilities, net (5,666) (3,317) (2,225)
Net change in value of loan collateral in process of foreclosure (1,619) (4,940) (906)
Net change in unrealized depreciation on investments 0 3,493 1,786
Gain on extinguishment of debt 2,204 0 0
Net realized (gains) losses on sale of investments 11,701 0 0
Stock-based compensation expense 2,261 2,031 1,221
Decrease (increase) in other assets 1,150 (2,299) (988)
Increase in deferred financing costs 1,504 1,233 1,297
Decrease in intercompany payables (11,649) 3,552 8,448
(Decrease) increase in other liabilities (1,894) 2,336 (1,759)
Net cash provided by operating activities (38,317) (10,680) (21,425)
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated 0 14 3,312
Proceeds from principal receipts, sales, and maturities of loans 28,552 1,193 2,313
Purchases of investments 90 2,304 1,125
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 666 1,276 2,403
Investment in subsidiaries 3,500    
Dividends from subsidiaries 19,000 7,597 6,248
Net cash used for investing activities 44,628 7,748 6,527
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from funds borrowed 51,400 33,600 36,000
Repayments of time deposits and funds borrowed 51,155 1,402 17,735
Proceeds from the exercise of stock options 241 0 0
Net cash provided by financing activities 486 32,198 18,265
NET INCREASE IN CASH AND CASH EQUIVALENTS 6,797 29,266 3,367
Cash and cash equivalents, beginning of period 33,743 4,477 1,110
Cash and cash equivalents, end of period $ 40,540 $ 33,743 $ 4,477
v3.22.0.1
Variable Interest Entities - Additional Information (Detail) - USD ($)
$ in Thousands
Feb. 28, 2021
Jul. 31, 2020
Oct. 31, 2018
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]            
Variable interest entity net gain     $ 25,300      
Equity investments       $ 9,726 $ 0 $ 9,746
Maturity date Feb. 28, 2026 Sep. 24, 2024        
Medallion Financing Trust I [Member]            
Variable Interest Entity [Line Items]            
Promissory note payable     $ 1,400