MEDALLION FINANCIAL CORP, 10-Q filed on 05 May 22
 | XBRL Documents
v3.22.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2022
May 04, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2022  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   25,506,630
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-37747  
Entity Tax Identification Number 04-3291176  
Entity Address, Address Line One 437 MADISON AVENUE, 38th Floor  
Entity Address, City or Town NEW YORK  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10022  
City Area Code 212  
Local Phone Number 328-2100  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.22.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents [1] $ 56,951 $ 64,482
Federal funds sold 81,843 60,002
Investment securities 47,075 44,772
Equity investments 10,076 9,726
Loans 1,569,441 1,488,924
Allowance for loan losses (50,686) [2] (50,166)
Net loans receivable 1,518,755 1,438,758
Goodwill 150,803 150,803
Intangible assets, net 23,120 23,480
Loan collateral in process of foreclosure [3] 33,834 37,430 [4]
Property, equipment, and right-of-use lease asset, net 11,605 11,762
Accrued interest receivable 10,603 10,621
Income tax receivable 184 833
Other assets 21,776 20,388
Total assets 1,966,625 1,873,057
Liabilities    
Deposits [5] 1,332,112 1,250,880
Long-term debt [6] 220,006 219,973
Deferred tax liabilities, net 21,731 18,210
Operating lease liabilities 8,548 9,053
Accrued interest payable 3,068 3,395
Accounts payable and accrued expenses [7] 19,119 15,718
Total liabilities 1,604,584 1,517,229
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- 28,526,016 shares at March 31, 2022 and 28,124,629 shares at December 31, 2021 issued) 285 281
Additional paid in capital 280,784 280,038
Treasury stock (3,018,903 shares at March 31, 2022 and 2,951,243 December 31, 2021) (25,536) (24,919)
Accumulated other comprehensive income (loss) (683) 1,034
Retained earnings 38,403 30,606
Total stockholders’ equity 293,253 287,040
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 362,041 355,828
Total liabilities and equity $ 1,966,625 $ 1,873,057
Number of shares outstanding 25,507,113 25,173,386
Book value per share $ 11.50 $ 11.40
[1] Includes restricted cash of $0 million and $3.0 million as of March 31, 2022 and December 31, 2021.
[2] As of March 31, 2022 and March 31, 2021, 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, of $7.7 million as of March 31, 2022 and $7.4 million as of December 31, 2021.
[4] Represents amount net of liquidation costs.
[5] Includes $3.4 million and $3.2 million of deferred financing costs as of March 31, 2022 and December 31, 2021. Refer to Note 5 for more details.
[6] Includes $3.8 million and $4.0 million of deferred financing costs as of March 31, 2022 and December 31, 2021. Refer to Note 5 for more details.
[7] Includes the short-term portion of lease liabilities of $2.2 million as of March 31, 2022 and December 31, 2021. Refer to Note 6 for more details.
v3.22.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
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 28,526,016 28,124,629
Treasury stock,shares 3,018,903 2,951,243
Restricted cash $ 0.0 $ 3.0
Loan collateral in process of foreclosure, financed sales collateral to third parties 7.7 7.4
Short term lease liabilities 2.2 2.2
Deposits [Member]    
Deferred financing costs 3.4 3.2
Long-Term Debt [Member]    
Deferred financing costs $ 3.8 $ 4.0
v3.22.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Interest and fees on loans $ 43,064 $ 36,855
Interest and dividends on investment securities 239 225
Total interest income [1] 43,303 37,080
Interest on deposits 4,154 4,711
Interest on long-term debt 3,221 3,293
Interest on short-term borrowings 0 403
Total interest expense 7,375 8,407
Net interest income (loss) 35,928 28,673
Provision for loan losses 3,240 3,019
Net interest income after provision for loan losses 32,688 25,654
Other income (loss)    
Loss on equity investments (133) 0
Write-down of loan collateral in process of foreclosure (386) (2,785)
Gain on extinguishment of debt 0 (1,767)
Sponsorship and race winnings, net 0 2,473
Other income 2,048 482
Total other income net 1,529 1,937
Other expenses    
Salaries and employee benefits 7,568 5,685
Loan servicing fees 1,953 1,647
Professional fees 3,992 507
Collection costs 1,343 1,232
Rent expense 645 675
Regulatory fees 451 438
Amortization of intangible assets 360 361
Race team related expenses 0 2,122
Other expenses 1,721 1,975
Total other expenses 18,033 14,642
Income before income taxes 16,184 12,949
Income tax provision (4,831) (3,878)
Net income after taxes 11,353 9,071
Less: income attributable to the non-controlling interest 1,512 640
Total net income attributable to Medallion Financial Corp. $ 9,841 $ 8,431
Basic net income per share $ 0.40 $ 0.34
Diluted net income per share $ 0.39 $ 0.34
Weighted average common shares outstanding    
Basic 24,770,134 24,518,775
Diluted 25,083,566 24,895,108
[1] Included in interest income is $0.2 million of paid-in-kind interest for the three months ended March 31, 2022 and $0.3 million for the three months ended March 31, 2021.
v3.22.1
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Interest paid-in-kind $ 0.2 $ 0.3
v3.22.1
Consolidated Statements of Other Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net income after taxes $ 11,353 $ 9,071
Other comprehensive loss, net of tax (1,717) (605)
Total comprehensive income 9,636 8,466
Less comprehensive income attributable to the non-controlling interest 1,512 640
Total comprehensive income attributable to Medallion Financial Corp. $ 8,124 $ 7,826
v3.22.1
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2020 $ 304,561 $ 278 $ 277,539 $ (24,919) $ (23,502) $ 2,012 $ 231,408 $ 73,153
Balance, shares at Dec. 31, 2020   27,828,871   (2,951,243)        
Net income 9,071       8,431   8,431 640
Distributions to non-controlling interest (1,511)             (1,511)
Stock-based compensation expense 498 $ 2 496       498  
Issuance of restricted stock, net, shares   163,561            
Forfeiture of restricted stock, net, shares   (7,602)            
Exercise of stock options, shares   768            
Other comprehensive loss, net of tax (605)         (605) (605)  
Ending balance at Mar. 31, 2021 312,014 $ 280 278,035 $ (24,919) (15,071) 1,407 239,732 72,282
Ending balance, shares at Mar. 31, 2021   27,985,598   (2,951,243)        
Balance at Dec. 31, 2020 $ 304,561 $ 278 277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Balance, shares at Dec. 31, 2020   27,828,871   (2,951,243)        
Exercise of stock options, shares [1] 44,070              
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)        
Net income $ 11,353       9,841   9,841 1,512
Distributions to non-controlling interest (1,512)             (1,512)
Stock-based compensation expense 598 $ 4 594       598  
Issuance of restricted stock, net, shares   383,925            
Forfeiture of restricted stock, net, shares   (5,730)            
Exercise of stock options $ 152   152       152  
Exercise of stock options, shares 23,192 [1] 23,192            
Purchase of common stock (in Shares)       (67,660)        
Purchase of common stock $ (617)     $ (617)     (617)  
Dividend paid on common stock (2,044)       (2,044)   (2,044)  
Other comprehensive loss, net of tax (1,717)         (1,717) (1,717)  
Ending balance at Mar. 31, 2022 $ 362,041 $ 285 $ 280,784 $ (25,536) $ 38,403 $ (683) $ 293,253 $ 68,788
Ending balance, shares at Mar. 31, 2022 25,507,113 28,526,016   (3,018,903)        
[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 less than $0.1 million for the three months ended March 31, 2022 and 2021.
v3.22.1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical)
Mar. 31, 2022
$ / shares
Statement of Stockholders' Equity [Abstract]  
Dividends payable, amount per share $ 0.08
v3.22.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 11,353 $ 9,071
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for loan losses 3,240 3,019
Paid-in-kind interest (172) (325)
Depreciation and amortization 1,640 1,321
Increase (decrease) in deferred and other tax liabilities 4,170 3,620
Amortization of origination fees, net 2,119 1,656
Net change in value of loan collateral in process of foreclosure 1,396 4,002
Net realized losses on investments 241  
Stock-based compensation expense 598 498
Gain on extinguishment of debt 0 (1,767)
Decrease in accrued interest receivable 18 1,123
Increase in other assets (2,455) (2,228)
Increase in accounts payable and accrued expenses 2,833 944
(Decrease) increase in accrued interest payable (327) 126
Net cash provided by operating activities 24,654 21,060
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (217,495) (150,598)
Proceeds from principal receipts, sales, and maturities of loans 129,121 113,144
Purchases of investments (8,407) (2,000)
Proceeds from principal receipts, sales, and maturities of investments 3,856 8,280
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 5,240 3,627
Net cash used for investing activities (87,685) (27,547)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 200,528 181,179
Repayments of time deposits and funds borrowed (119,226) (144,944)
Cash dividend paid on common stock (1,984)  
Distributions to non-controlling interests (1,512) (1,511)
Treasury stock repurchased (617)  
Proceeds from the exercise of stock options 152  
Net cash provided by financing activities 77,341 34,724
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 14,310 28,237
Cash, cash equivalents and restricted cash, beginning of period 124,484 112,040
Cash, cash equivalents and restricted cash, end of period [1] 138,794 140,277
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 7,056 7,637
Cash paid during the period for income taxes 12 4
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 3,040 $ 3,802
[1] Includes Federal Funds Sold.
v3.22.1
Organization of Medallion Financial Corp. and its Subsidiaries
 3 Months Ended
Mar. 31, 2022
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, a second partnership in 2021, and a third partnership in 2022. The Bank 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 March 31, 2022, 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, some of which are leased to fleet operators. The 159 taxi medallions are carried at a net realizable value of $1.0 million in other assets on the Company’s consolidated balance sheet at March 31, 2022 and December 31, 2021.
v3.22.1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2022
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. As of March 31, 2022, cash 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 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.1 million and $9.7 million at March 31, 2022 and December 31, 2021, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of March 31, 2022, the Company determined that there was no impairment or observable price change.

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 gain (loss) on equity investments. As of March 31, 2022 and December 31, 2021, the fair value of these securities were $1.9 million and $2.0 million and are included in other assets on the consolidated balance sheet.

The table below presents the unrealized portion related to the equity securities held.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(91

)

 

$

(28

)

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

 

 

—

 

 

 

—

 

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

 

$

(91

)

 

$

(28

)

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at March 31, 2022 and $0.3 million at December 31, 2021, and less than $0.1 million was amortized to interest income for the three months ended March 31, 2022 and 2021. 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. At March 31, 2022 and December 31, 2021, net loan origination costs were $28.4 million and $26.1 million. Net amortization to income for the three months ended March 31, 2022 was $2.1 million and $1.7 million for the three months ended March 31, 2021.

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 $4.2 million at March 31, 2022, or 0.27% of the total loan portfolio, compared to $4.0 million, or 0.28%, at December 31, 2021.

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. 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.

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. For New York City medallion loans in the process of foreclosure, although market prices fluctuate, and may exceed the internally determined value, the Company continued to utilize a net value of $79,500 when assessing net realizable value for the medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. 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 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 at March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021.

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, 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 continued to use $79,500 as its internally determined value for assessing net realizable value for the medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The Company continues to monitor the

impact of COVID-19 on the consumer, commercial, and medallion loans. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Goodwill and Intangible Assets

The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of March 31, 2022 and December 31, 2021, the Company had goodwill of $150.8 million, all of which related to the Bank. As of March 31, 2022 and December 31, 2021, the Company had intangible assets of $23.1 million and $23.5 million. Amortization expense on the intangible assets for the three months ended March 31, 2022 and 2021 was $0.4 million. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0.4 million and $0.5 million were outstanding as of March 31, 2022 and December 31, 2021, and of which $0.1 million was amortized to interest income for the three months ended March 31, 2022 and 2021. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2021, concluding that there was no impairment of these assets. The Company has reviewed these assets, all of which relate to the Bank, and concluded that no impairment exists as of March 31, 2022.

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

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Brand-related intellectual property

 

$

17,600

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,520

 

 

 

5,606

 

Total intangible assets

 

$

23,120

 

 

$

23,480

 

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 $0.1 million for the three months ended March 31, 2022 and 2021.

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 $0.6 million for the three months ended March 31, 2022 and was $0.6 million for the three months ended March 31, 2021. 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 $7.2 million and $7.1 million as of March 31, 2022 and December 31, 2021.

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.

 

Earnings Per Share (EPS)

Basic earnings 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 considering to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS.

 

 

Three Months Ended March 31,

 

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

 

2022

 

 

2021

 

Net income available to common stockholders

 

$

9,841

 

 

$

8,431

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

24,770,134

 

 

 

24,518,775

 

Effect of dilutive stock options

 

 

89,507

 

 

 

21,168

 

Effect of restricted stock grants

 

 

223,925

 

 

 

355,165

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

25,083,566

 

 

 

24,895,108

 

Basic income per share

 

$

0.40

 

 

$

0.34

 

Diluted income per share

 

 

0.39

 

 

 

0.34

 

Potentially dilutive common shares excluded from the above calculations aggregated 466,867 and 1,188,455 shares as of March 31, 2022 and 2021.

Stock Compensation

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

During the three months ended March 31, 2022 and 2021, the Company issued 383,925 and 163,561 restricted shares of stock-based compensation awards, issued 0 and 317,398 shares of other stock-based compensation awards, and issued no restricted stock units; and recognized $0.6 million, or $0.02 per share, for the three months ended March 31, 2022, and $0.5 million, or $0.02 for the three months ended March 31, 2021, of non-cash stock-based compensation expense related to the grants. As of March 31, 2022, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $5.1 million, which is expected to be recognized over the next 12 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 March 31, 2022, the Bank’s Tier 1 leverage ratio was 17.51%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

March 31, 2022

 

 

December 31, 2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

205,731

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

274,519

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

294,472

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,567,781

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,563,232

 

 

 

1,482,678

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

17.5

%

 

 

17.5

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.2

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.6

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.8

 

 

 

19.0

 
(1)
Calculated by dividing Tier 1 capital by average assets.
(2)
Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
(3)
Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In the table above, the minimum risk-based ratios as of March 31, 2022 and December 31, 2021 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2022 and December 31, 2021.

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.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses, or Topic 326: Troubled Debt Restructurings and Vintage Disclosures, or ASU 2022-02. The main objective of this new standard is to amend ASU 2016-13 in response to feedback received from the post-implementation review process. The amendments update ASU 2016-13 to require that an entity measure and record the lifetime expected credit losses on an asset upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. The amendments also

require the disclosure of current period gross write-offs, by year of origination, for financing receivables. We are assessing the impact the update will have on our 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.
v3.22.1
Investment Securities
 3 Months Ended
Mar. 31, 2022
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

Fixed maturity securities available for sale at March 31, 2022 and December 31, 2021 consisted of the following:

March 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

41,902

 

 

$

112

 

 

$

(1,961

)

 

$

40,053

 

State and municipalities

 

 

7,280

 

 

 

10

 

 

 

(268

)

 

 

7,022

 

Total

 

$

49,182

 

 

$

122

 

 

$

(2,229

)

 

$

47,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

The amortized cost and estimated market value of investment securities at March 31, 2022 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.

March 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

22

 

 

$

22

 

Due after one year through five years

 

 

9,568

 

 

 

9,494

 

Due after five years through ten years

 

 

9,734

 

 

 

9,238

 

Due after ten years

 

 

29,858

 

 

 

28,321

 

Total

 

$

49,182

 

 

$

47,075

 

The following tables show information pertaining to securities with gross unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

March 31, 2022
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(759

)

 

$

18,862

 

 

$

(1,202

)

 

$

11,040

 

State and municipalities

 

 

(137

)

 

 

3,119

 

 

 

(131

)

 

 

1,474

 

Total

 

$

(896

)

 

$

21,981

 

 

$

(1,333

)

 

$

12,514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

The Company had 37 and 15 securities at March 31, 2022 and December 31, 2021, with unrealized losses that 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.

v3.22.1
Loans and Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2022
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at March 31, 2022 and December 31, 2021.

 

 

March 31, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,004,091

 

 

 

64

%

 

$

961,320

 

 

 

65

%

Home improvement

 

 

473,408

 

 

 

30

 

 

 

436,772

 

 

 

29

 

Commercial

 

 

77,867

 

 

 

5

 

 

 

76,696

 

 

 

5

 

Medallion

 

 

13,849

 

 

 

1

 

 

 

14,046

 

 

 

1

 

Strategic partnership

 

 

226

 

 

 

0

 

 

 

90

 

 

 

—

 

Total gross loans

 

 

1,569,441

 

 

 

100

%

 

 

1,488,924

 

 

 

100

%

Allowance for loan losses

 

 

(50,686

)

 

 

 

 

 

(50,166

)

 

 

 

Total net loans

 

$

1,518,755

 

 

 

 

 

$

1,438,758

 

 

 

 

The following tables show the activity of the gross loans for the three months ended March 31, 2022 and 2021.


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

114,406

 

 

 

89,820

 

 

 

4,400

 

 

 

92

 

 

 

5,009

 

 

 

213,727

 

Principal payments, sales, maturities, and recoveries

 

 

(65,116

)

 

 

(52,164

)

 

 

(1,817

)

 

 

(85

)

 

 

(4,873

)

 

 

(124,055

)

Charge-offs

 

 

(5,067

)

 

 

(1,060

)

 

 

(1,584

)

 

 

(75

)

 

 

—

 

 

 

(7,786

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,911

)

 

 

—

 

 

 

—

 

 

 

(129

)

 

 

—

 

 

 

(3,040

)

Amortization of origination costs

 

 

(2,439

)

 

 

320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,119

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

3,958

 

 

 

(190

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,768

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

172

 

 

 

—

 

 

 

—

 

 

 

172

 

Gross loans – March 31, 2022

 

$

1,004,091

 

 

$

473,408

 

 

$

77,867

 

 

$

13,849

 

 

$

226

 

 

$

1,569,441

 

 


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

93,850

 

 

 

48,059

 

 

 

4,156

 

 

 

—

 

 

 

1,944

 

 

 

148,009

 

Principal payments, sales, maturities, and recoveries

 

 

(55,958

)

 

 

(39,637

)

 

 

(10,965

)

 

 

(636

)

 

 

(1,910

)

 

 

(109,106

)

Charge-offs

 

 

(5,053

)

 

 

(681

)

 

 

 

 

 

(1,114

)

 

 

—

 

 

 

(6,848

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,053

)

 

 

—

 

 

 

—

 

 

 

(696

)

 

 

—

 

 

 

(3,749

)

Amortization of origination costs

 

 

(2,162

)

 

 

497

 

 

 

11

 

 

 

(2

)

 

 

—

 

 

 

(1,656

)

Amortization of loan premium

 

 

(41

)

 

 

(76

)

 

 

—

 

 

 

(70

)

 

 

—

 

 

 

(187

)

FASB origination costs, net

 

 

2,663

 

 

 

(74

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,589

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

325

 

 

 

—

 

 

 

—

 

 

 

325

 

Gross loans – March 31, 2021

 

$

822,932

 

 

$

342,121

 

 

$

58,854

 

 

$

35,250

 

 

$

58

 

 

$

1,259,215

 

The following table sets forth the activity in the allowance for loan losses for the three months ended March 31, 2022 and 2021.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Allowance for loan losses – beginning balance

 

$

50,166

 

 

$

57,548

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(5,067

)

 

 

(5,053

)

Home improvement

 

 

(1,060

)

 

 

(681

)

Commercial

 

 

(1,584

)

 

 

—

 

Medallion

 

 

(75

)

 

 

(1,114

)

Total charge-offs

 

 

(7,786

)

 

 

(6,848

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

3,510

 

 

 

2,469

 

Home improvement

 

 

559

 

 

 

432

 

Commercial

 

 

34

 

 

 

—

 

Medallion

 

 

963

 

 

 

1,189

 

Total recoveries

 

 

5,066

 

 

 

4,090

 

Net charge-offs (1)

 

 

(2,720

)

 

 

(2,758

)

Provision for loan losses

 

 

3,240

 

 

 

3,019

 

Allowance for loan losses – ending balance (2)

 

$

50,686

 

 

$

57,809

 
(1)
As of March 31, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $257.0 million, some of which may represent collection opportunities for the Company.
(2)
As of March 31, 2022 and March 31, 2021, 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 March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation (1)

 

$

32,558

 

 

 

64

%

 

 

3.24

%

 

 

98.99

%

Home improvement (2)

 

 

8,059

 

 

 

16

 

 

 

1.70

 

 

 

24.50

 

Commercial

 

 

828

 

 

 

2

 

 

 

1.06

 

 

 

2.52

 

Medallion

 

 

9,241

 

 

 

18

 

 

 

66.73

 

 

 

28.10

 

Total

 

$

50,686

 

 

 

100

%

 

 

3.23

%

 

 

154.10

%

 

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

%

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

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Total nonaccrual loans

 

$

32,891

 

 

$

35,571

 

Interest foregone for the year

 

 

754

 

 

 

1,620

 

Amount of foregone interest applied to principal for the year

 

 

107

 

 

 

432

 

Interest foregone life-to-date

 

 

2,458

 

 

 

3,623

 

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

 

 

1,016

 

 

 

942

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

2

%

 

 

2

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

154

%

 

 

141

%

The following tables present the performance status of loans as of March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

998,590

 

 

$

5,501

 

 

$

1,004,091

 

 

 

0.55

%

Home improvement

 

 

473,114

 

 

 

294

 

 

 

473,408

 

 

 

0.06

 

Commercial

 

 

64,357

 

 

 

13,510

 

 

 

77,867

 

 

 

17.35

 

Medallion

 

 

—

 

 

 

13,849

 

 

 

13,849

 

 

 

100.00

 

Strategic partnership

 

 

226

 

 

 

—

 

 

 

226

 

 

 

—

 

Total

 

$

1,536,287

 

 

$

33,154

 

 

$

1,569,441

 

 

 

2.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

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

 

The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2022 and December 31, 2021, all of which had an allowance recorded against the principal balance.

 

 

March 31, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,501

 

 

$

5,501

 

 

$

186

 

 

$

5,557

 

 

$

5,557

 

 

$

188

 

Home improvement

 

 

294

 

 

 

294

 

 

 

5

 

 

 

132

 

 

 

132

 

 

 

2

 

Commercial

 

 

13,510

 

 

 

13,555

 

 

 

828

 

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

Medallion

 

 

13,849

 

 

 

14,821

 

 

 

9,241

 

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

Total nonperforming loans with an allowance

 

$

33,154

 

 

$

34,171

 

 

$

10,260

 

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

 

 

For the Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,207

 

 

$

129

 

 

$

5,617

 

 

$

184

 

Home improvement

 

 

298

 

 

 

1

 

 

 

150

 

 

 

—

 

Commercial

 

 

16,368

 

 

 

—

 

 

 

17,358

 

 

 

—

 

Medallion

 

 

15,943

 

 

 

—

 

 

 

35,535

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

37,816

 

 

$

130

 

 

$

58,660

 

 

$

184

 

The following tables show the aging of all loans as of March 31, 2022 and December 31, 2021.

 March 31, 2022

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

18,927

 

 

$

6,096

 

 

$

3,802

 

 

$

28,825

 

 

$

944,347

 

 

$

973,172

 

 

$

—

 

Home improvement

 

 

1,379

 

 

 

672

 

 

 

297

 

 

 

2,348

 

 

 

473,179

 

 

 

475,527

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

77,793

 

 

 

77,867

 

 

 

—

 

Medallion

 

 

—

 

 

 

146

 

 

 

—

 

 

 

146

 

 

 

13,704

 

 

 

13,850

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

226

 

 

 

226

 

 

 

—

 

Total

 

$

20,306

 

 

$

6,914

 

 

$

4,173

 

 

$

31,393

 

 

$

1,509,249

 

 

$

1,540,642

 

 

$

—

 
(1)
Excludes loan premiums of $0.4 million and $28.4 million of capitalized loan origination costs.

 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.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 295% as of March 31, 2022 and December 31, 2021.

The following table shows the TDRs which the Company entered into during the three months ended March 31, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

10

 

 

 

129

 

 

 

129

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

During the twelve months ended March 31, 2022, there were no medallion loans modified as TDRs in default as of March 31, 2022, 24 recreation loans modified as TDRs were in default and had an investment value of $0.3 million as of March 31, 2022, and no commercial loans modified as TDRs were in default.

 

The following table shows the TDRs which the Company entered into during the three months ended March 31, 2021.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

18

 

 

 

172

 

 

 

166

 

Medallion loans

 

 

8

 

 

 

2,738

 

 

 

2,738

 

During the twelve months ended March 31, 2021, 35 medallion loans modified as TDRs were in default and had an investment value of $20.6 million as of March 31, 2021, net of a $16.1 million allowance for loan losses, and 36 recreation loans modified as TDRs were in default and had an investment value of $0.4 million as of March 31, 2021 and an allowance for loan losses of less than $0.1 million.

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

2,911

 

 

 

129

 

 

 

3,040

 

Sales

 

 

(2,252

)

 

 

(116

)

 

 

(2,368

)

Cash payments received

 

 

—

 

 

 

(2,872

)

 

 

(2,872

)

Collateral valuation adjustments

 

 

(1,010

)

 

 

(386

)

 

 

(1,396

)

Loan collateral in process of foreclosure – March 31, 2022

 

$

1,369

 

 

$

32,465

 

 

$

33,834

 

 

Three Months Ended March 31, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

Transfer from loans, net

 

 

3,053

 

 

 

749

 

 

 

3,802

 

Sales

 

 

(2,298

)

 

 

—

 

 

 

(2,298

)

Cash payments received

 

 

—

 

 

 

(1,329

)

 

 

(1,329

)

Collateral valuation adjustments

 

 

(1,217

)

 

 

(2,785

)

 

 

(4,002

)

Loan collateral in process of foreclosure – March 31, 2021

 

$

970

 

 

$

49,763

 

 

$

50,733

 

As of March 31, 2022, medallion loans in the process of foreclosure included 481 medallions in the New York market, 335 medallions in the Chicago market, 61 medallions in the Newark market, and 47 medallions in other markets.
v3.22.1
Funds Borrowed
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows:

 

 

Payments Due for the Twelve Months Ending March 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

March 31, 2022(1)

 

 

December 31, 2021(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

405,783

 

 

$

254,340

 

 

$

343,449

 

 

$

170,965

 

 

$

160,252

 

 

$

—

 

 

$

1,334,789

 

 

$

1,253,288

 

 

 

1.24

%

Privately placed notes

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

5,000

 

 

 

2,500

 

 

 

21,264

 

 

 

15,500

 

 

 

4,500

 

 

 

21,000

 

 

 

69,764

 

 

 

69,963

 

 

 

2.95

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.71

 

Total

 

$

410,783

 

 

$

292,840

 

 

$

364,713

 

 

$

217,715

 

 

$

164,752

 

 

$

107,750

 

 

$

1,558,553

 

 

$

1,477,251

 

 

 

1.84

%
(1)
Excludes deferred financing costs of $7.2 million and $7.1 million as of March 31, 2022 and December 31, 2021.
(2)
Weighted average contractual rate as of March 31, 2022.
(3)
Balance excludes $0.8 million of strategic partner reserve deposits as of March 31, 2022 and December 31, 2021.

 

(A) DEPOSITS

Most 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 March 31, 2022. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions and, as of March 31, 2022 and December 31, 2021, the Bank had $8.7 million in listing services deposits. The following table presents the maturity of the deposit pools, which excludes strategic partner reserve deposits, as of March 31, 2022.

(Dollars in thousands)

 

March 31, 2022

 

Three months or less

 

$

168,243

 

Over three months through six months

 

 

73,985

 

Over six months through one year

 

 

163,555

 

Over one year

 

 

929,006

 

Total deposits

 

$

1,334,789

 

(B) 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 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 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 2019. 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, which 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 March 31, 2022, there were $9.5 million commitments available, and $69.8 million was outstanding, including $8.8 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 March 31, 2022, $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 (0.96% at March 31, 2022) 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 March 31, 2022, $33.0 million was outstanding on the preferred securities.

(E) COVENANT COMPLIANCE

From time to time the Company may enter into debt agreements which may contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including minimum net worth. As of March 31, 2022, the Company did not have any borrowing agreements that contained any such restrictions.
v3.22.1
Leases
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases

(6) LEASES

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

The following table presents the operating lease costs and additional information for the three months ended March 31, 2022 and 2021.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Operating lease costs

 

$

590

 

 

$

572

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

645

 

 

 

675

 

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

 

 

(45

)

 

 

(18

)

The following table presents the breakout of the operating leases as of March 31, 2022 and December 31, 2021.

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Operating lease right-of-use assets

 

$

9,536

 

 

$

10,045

 

Other current liabilities

 

 

2,153

 

 

 

2,159

 

Operating lease liabilities

 

 

8,548

 

 

 

9,053

 

Total operating lease liabilities

 

 

10,701

 

 

 

11,212

 

Weighted average remaining lease term

 

5.2 years

 

 

5.4 years

 

Weighted average discount rate

 

 

5.54

%

 

 

5.54

%

At March 31, 2022, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2022

 

$

1,823

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

2026

 

 

2,408

 

Thereafter

 

 

1,164

 

Total lease payments

 

 

12,514

 

Less imputed interest

 

 

1,813

 

Total operating lease liabilities

 

$

10,701

 
v3.22.1
Income Taxes
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021.

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Goodwill and other intangibles

 

$

(43,766

)

 

$

(43,894

)

Provision for loan losses

 

 

10,115

 

 

 

11,057

 

Net operating loss carryforwards (1)

 

 

9,627

 

 

 

12,167

 

Accrued expenses, compensation, and other assets

 

 

1,901

 

 

 

2,579

 

Unrealized gains on other investments

 

 

2,687

 

 

 

2,176

 

Total deferred tax liability

 

 

(19,436

)

 

 

(15,915

)

Valuation allowance(2)

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(21,731

)

 

$

(18,210

)
(1)
As of March 31, 2022, the Company and its subsidiaries had an estimated $42.3 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 $7.3 million as of March 31, 2022.
(2)
During the three months ended March 31, 2022, 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 components of our tax provision for the three months ended March 31, 2022 and 2021 was as follows:

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Current

 

 

 

 

 

 

Federal

 

$

504

 

 

$

—

 

State

 

 

322

 

 

 

170

 

Deferred

 

 

 

 

 

 

Federal

 

 

3,220

 

 

 

3,053

 

State

 

 

785

 

 

 

655

 

Net provision for income taxes

 

$

4,831

 

 

$

3,878

 

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision for the three months ended March 31, 2022 and 2021.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Statutory Federal income tax provision at 21%

 

$

3,399

 

 

$

2,719

 

State and local income taxes, net of federal income tax

 

 

665

 

 

 

532

 

Change in state income tax accruals

 

 

—

 

 

 

170

 

Change in effective state income tax rates and accrual

 

 

—

 

 

 

(200

)

Income attributable to non-controlling interest

 

 

—

 

 

 

(219

)

Non deductible expenses

 

 

713

 

 

 

172

 

Other

 

 

54

 

 

 

704

 

Total income tax provision

 

$

4,831

 

 

$

3,878

 

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 March 31, 2022.

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.
v3.22.1
Stock Options and Restricted Stock
 3 Months Ended
Mar. 31, 2022
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, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. A total of 2,210,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 25,996 remained issuable as of March 31, 2022. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan, or the 2015 Restricted Stock Plan, on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan

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

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

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

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

Additional shares are only available for future issuance under the 2018 Plan. At March 31, 2022, 1,083,712 options on the Company’s common stock were outstanding under the Company’s plans, of which 554,119 options were exercisable. Additionally, there were 745,270 unvested shares under the Company’s restricted common stock plan, and 16,957 unvested restricted stock units, and 47,715 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 per share for the three months ended March 31, 2021. The following assumption categories are used to determine the value of any option grants. There were no grants issued for the three months ended March 31, 2022.

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Risk free interest rate

 

 

—

 

 

 

0.97

%

Expected dividend yield

 

 

—

 

 

 

—

 

Expected life of option in years (1)

 

 

—

 

 

 

6.25

 

Expected volatility (2)

 

 

—

 

 

 

53.98

%
(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 2022 first quarter and the 2021 full year.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

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

 

 

1,111,687

 

 

$

2.14 - 12.55

 

 

 

6.41

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(4,783

)

 

 

4.89 - 7.25

 

 

 

5.69

 

Exercised (1)

 

 

(23,192

)

 

 

4.89 - 7.25

 

 

 

6.53

 

Outstanding at March 31, 2022 (2)

 

 

1,083,712

 

 

$

2.14 - 12.55

 

 

$

6.53

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

320,922

 

 

$

2.14 - 12.55

 

 

$

6.53

 

March 31, 2022

 

 

554,119

 

 

$

2.14 - 12.55

 

 

$

6.54

 
(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 less than $0.1 million for the three months ended March 31, 2022 and 2021.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2022 and the related exercise price of the underlying options, was $2.2 million for outstanding options and $1.1 million for exercisable options as of March 31, 2022. The remaining contractual life was 7.8 years for outstanding options and 7.3 years for exercisable options at March 31, 2022.

The following table presents the activity for the restricted stock programs for the 2022 first quarter and the 2021 full year.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

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 - 8.40

 

 

 

6.87

 

Granted

 

 

383,925

 

 

 

 

7.68

 

 

 

7.68

 

Cancelled

 

 

(5,747

)

 

 

4.89 - 8.40

 

 

 

7.33

 

Vested (1)

 

 

(126,234

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2022(2)

 

 

745,270

 

 

$

4.89 - 8.40

 

 

$

7.34

 
(1)
The aggregate fair value of the restricted stock vested was $0.7 million for the three months ended March 31, 2022 and was $0.8 million for the three months ended March 31, 2021.
(2)
The aggregate fair value of the restricted stock was $6.3 million as of March 31, 2022. The remaining vesting period was 2.9 years at March 31, 2022.

During the three months ended March 31, 2022, the Company granted no restricted stock units (RSUs) and during the year ended December 31, 2021, granted 16,803 RSUs that vest on June 17, 2022 with a grant price of $8.87. For the RSUs granted in 2021, 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 March 31, 2022, there were 64,672 RSUs outstanding, 47,715 of which were vested.

The following table presents the activity for the unvested options outstanding under the plans for the 2022 first quarter.

 

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2021

 

 

790,765

 

 

$

4.89 - 7.25

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(4,200

)

 

 

4.89 - 7.25

 

 

 

5.48

 

Vested

 

 

(256,972

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2022

 

 

529,593

 

 

$

4.89 - 7.25

 

 

$

6.52

 

The intrinsic value of the options vested was $0.1 million for the three months ended March 31, 2022.

v3.22.1
Segment Reporting
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

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

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are operated by the Bank and include loans in all fifty states. The highest concentrations of recreation loans are in Texas, Florida, and California at 16%, 10%, and 10% of loans outstanding and with no other states over 5% as of March 31, 2022. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 59%, 19%, and 8% of the segment portfolio as of March 31, 2022. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements

concentrated in roofs, swimming pools, and windows at 33%, 26%, and 12% of total home improvement loans outstanding, and with no other product lines over 10% as of March 31, 2022. The highest concentrations of home improvement loans are in Texas, Florida, and Ohio at 12%, 10%, and 8% of loans outstanding and with no other states over 6% as of March 31, 2022. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 49% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, substantially all of which are located in the New York City metropolitan area as of March 31, 2022.

In addition, our non-operating segments include 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 well as RPAC, a race car team through our disposition on December 1, 2021.

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

The following tables present segment data as of and for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

31,135

 

 

$

9,700

 

 

$

1,930

 

 

 

$

146

 

 

$

392

 

 

$

43,303

 

Total interest expense

 

 

3,601

 

 

 

1,341

 

 

 

722

 

 

 

 

153

 

 

 

1,558

 

 

 

7,375

 

Net interest income (loss)

 

 

27,534

 

 

 

8,359

 

 

 

1,208

 

 

 

 

(7

)

 

 

(1,166

)

 

 

35,928

 

Provision (recoveries) for loan losses

 

 

1,680

 

 

 

1,204

 

 

 

1,255

 

 

 

 

(869

)

 

 

(30

)

 

 

3,240

 

Net interest income (loss) after loss provision

 

 

25,854

 

 

 

7,155

 

 

 

(47

)

 

 

 

862

 

 

 

(1,136

)

 

 

32,688

 

Other income (expense), net

 

 

(6,820

)

 

 

(2,896

)

 

 

(1,330

)

 

 

 

(806

)

 

 

(4,652

)

 

 

(16,504

)

Net income (loss) before taxes

 

 

19,034

 

 

 

4,259

 

 

 

(1,377

)

 

 

 

56

 

 

 

(5,788

)

 

 

16,184

 

Income tax (provision) benefit

 

 

(5,681

)

 

 

(1,271

)

 

 

411

 

 

 

 

(17

)

 

 

1,727

 

 

 

(4,831

)

Net income (loss) after taxes

 

$

13,353

 

 

$

2,988

 

 

$

(966

)

 

 

$

39

 

 

$

(4,061

)

 

$

11,353

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

971,533

 

 

$

465,349

 

 

$

76,787

 

 

 

$

4,608

 

 

$

478

 

 

$

1,518,755

 

Total assets

 

 

984,535

 

 

 

469,886

 

 

 

86,461

 

 

 

 

37,752

 

 

 

387,991

 

 

 

1,966,625

 

Total funds borrowed

 

 

780,621

 

 

 

372,565

 

 

 

68,553

 

 

 

 

29,933

 

 

 

307,632

 

 

 

1,559,304

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.62

%

 

 

2.66

%

 

 

(3.83

)%

 

 

 

0.25

%

 

 

(4.80

)%

 

 

2.41

%

Return on average equity

 

 

29.27

 

 

 

13.85

 

 

 

(12.33

)

 

 

 

1.30

 

 

 

(28.30

)

 

 

13.70

 

Interest yield

 

 

13.30

 

 

 

8.71

 

 

 

10.12

 

 

 

 

12.49

 

 

N/A

 

 

 

11.06

 

Net interest margin

 

 

11.76

 

 

 

7.50

 

 

 

6.34

 

 

 

 

(0.67

)

 

N/A

 

 

 

9.20

 

Reserve coverage

 

 

3.24

 

 

 

1.70

 

 

 

1.06

 

(1)

 

 

66.73

 

 

N/A

 

 

 

3.23

 

Delinquency status(2)

 

 

0.39

 

 

 

0.06

 

 

 

0.10

 

(1)

 

 

—

 

 

N/A

 

 

 

0.27

 

Charge-off ratio(4)

 

 

0.67

 

 

 

0.46

 

 

 

8.13

 

(3)

 

 

(76.13

)

 

N/A

 

 

 

0.75

 
(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.

Three Months Ended March 31, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

27,442

 

 

$

7,918

 

 

$

1,482

 

 

 

$

(69

)

 

$

—

 

 

$

307

 

 

$

37,080

 

Total interest expense

 

 

2,794

 

 

 

1,208

 

 

 

572

 

 

 

 

1,370

 

 

 

41

 

 

 

2,422

 

 

 

8,407

 

Net interest income (loss)

 

 

24,648

 

 

 

6,710

 

 

 

910

 

 

 

 

(1,439

)

 

 

(41

)

 

 

(2,115

)

 

 

28,673

 

Provision for loan losses

 

 

3,613

 

 

 

450

 

 

 

—

 

 

 

 

(1,044

)

 

 

—

 

 

 

—

 

 

 

3,019

 

Net interest income (loss) after loss provision

 

 

21,035

 

 

 

6,260

 

 

 

910

 

 

 

 

(395

)

 

 

(41

)

 

 

(2,115

)

 

 

25,654

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

2,473

 

 

 

—

 

 

 

2,473

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(2,122

)

 

 

—

 

 

 

(2,122

)

Other income (expense), net

 

 

(5,463

)

 

 

(1,914

)

 

 

(460

)

 

 

 

(2,144

)

 

 

(1,761

)

 

 

(1,314

)

 

 

(13,056

)

Net income (loss) before taxes

 

 

15,572

 

 

 

4,346

 

 

 

450

 

 

 

 

(2,539

)

 

 

(1,451

)

 

 

(3,429

)

 

 

12,949

 

Income tax (provision) benefit

 

 

(4,010

)

 

 

(1,119

)

 

 

(113

)

 

 

 

637

 

 

 

364

 

 

 

363

 

 

 

(3,878

)

Net income (loss) after taxes

 

$

11,562

 

 

$

3,227

 

 

$

337

 

 

 

$

(1,902

)

 

$

(1,087

)

 

$

(3,066

)

 

$

9,071

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

794,554

 

 

$

336,763

 

 

$

55,567

 

 

 

$

11,177

 

 

$

—

 

 

$

3,345

 

 

$

1,201,406

 

Total assets

 

 

807,244

 

 

 

348,456

 

 

 

71,922

 

 

 

 

116,639

 

 

 

32,724

 

 

 

311,765

 

 

 

1,688,750

 

Total funds borrowed

 

 

641,993

 

 

 

277,672

 

 

 

59,533

 

 

 

 

92,469

 

 

 

8,726

 

 

 

266,366

 

 

 

1,346,759

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.92

%

 

 

3.80

%

 

 

1.79

%

 

 

 

(6.40

)%

 

 

(13.27

)%

 

 

(4.16

)%

 

 

2.08

%

Return on average equity

 

 

29.59

 

 

 

19.00

 

 

 

8.96

 

 

 

 

(31.98

)

 

 

(378.20

)

 

 

(30.80

)

 

 

11.09

 

Interest yield

 

 

14.36

 

 

 

9.66

 

 

 

10.37

 

 

 

 

(2.34

)

 

N/A

 

 

N/A

 

 

 

11.84

 

Net interest margin

 

 

12.90

 

 

 

8.19

 

 

 

6.37

 

 

 

 

(48.86

)

 

N/A

 

 

N/A

 

 

 

9.18

 

Reserve coverage

 

 

3.45

 

 

 

1.57

 

 

 

0.00

 

(1)

 

 

68.29

 

 

N/A

 

 

N/A

 

 

 

4.59

 

Delinquency status(2)

 

 

0.40

 

 

 

0.04

 

 

 

0.13

 

(1)

 

 

2.20

 

 

N/A

 

 

N/A

 

 

 

0.33

 

Charge-off ratio(4)

 

 

1.35

 

 

 

0.30

 

 

 

0.00

 

(3)

 

 

(2.55

)

 

N/A

 

 

N/A

 

 

 

0.95

 
(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.
v3.22.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2022
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 $12.0 million.

(B) OTHER COMMITMENTS

As of March 31, 2022 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 Company filed a motion to dismiss the complaint on March 22, 2022, and the SEC filed an amended complaint on April 26, 2022.

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.
v3.22.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2022
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, serves as the Company’s Senior Vice President at a salary of $239,000 per year, an increase from $195,000 per year in 2021. Mr. Rudnick received an annual cash bonus of $75,000 and $32,500 as well as an equity bonus in the amount of $45,019 and $30,000, during the three months ended March 31, 2022 and 2021.
v3.22.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2022
Investments, All Other Investments [Abstract]  
Fair Value of Financial Instruments

(12) FAIR VALUE OF FINANCIAL INSTRUMENTS

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

(a) Cash—Book value equals fair value.

(b) Equity investments and securities—The Company’s equity securities are recorded at cost less any impairment plus or minus observable price changes.

(c) Investment securities—The Company’s investments are recorded at the estimated fair value of such investments.

(d) Loans receivable—The Company’s loans are recorded at book value which approximated fair value.

(e) Floating rate borrowings—Due to the short-term nature of these instruments, the carrying amount approximated fair value.

(f) Commitments to extend credit—The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At March 31, 2022 and December 31, 2021, 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.

 

 

March 31, 2021

 

 

December 31, 2021

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

138,794

 

 

$

138,794

 

 

$

124,484

 

 

$

124,484

 

Equity investments

 

 

10,076

 

 

 

10,076

 

 

 

9,726

 

 

 

9,726

 

Investment securities

 

 

47,075

 

 

 

47,075

 

 

 

44,772

 

 

 

44,772

 

Loans receivable

 

 

1,518,755

 

 

 

1,518,755

 

 

 

1,438,758

 

 

 

1,438,758

 

Accrued interest receivable (2)

 

 

10,603

 

 

 

10,603

 

 

 

10,621

 

 

 

10,621

 

Equity securities(3)

 

 

1,859

 

 

 

1,859

 

 

 

1,950

 

 

 

1,950

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

1,559,303

 

 

 

1,559,303

 

 

 

1,478,001

 

 

 

1,478,001

 

Accrued interest payable (2)

 

 

3,068

 

 

 

3,068

 

 

 

3,395

 

 

 

3,395

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of March 31, 2022 and December 31, 2021. See Note 13.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 13.
(3)
Included within other assets on the balance sheet.
v3.22.1
Fair Value of Assets and liabilities
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(13) FAIR VALUE OF ASSETS AND LIABILITIES

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

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

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

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

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

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

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

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

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

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

47,075

 

 

 

—

 

 

 

47,075

 

Equity securities

 

 

1,859

 

 

 

—

 

 

 

—

 

 

 

1,859

 

Total(1)

 

$

1,859

 

 

$

48,325

 

 

$

—

 

 

$

50,184

 
(1)
Total unrealized losses of $1.7 million, net of tax, was included in accumulated other comprehensive loss for the three months ended March 31, 2022 related to these assets.

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.

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 March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,076

 

 

$

10,076

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

32,891

 

 

 

32,891

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

33,834

 

 

 

33,834

 

Total

 

$

—

 

 

$

—

 

 

$

76,801

 

 

$

76,801

 

 

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

 

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 March 31, 2022 and December 31, 2021.

(Dollars in thousands)

 

Fair Value
at March 31, 2022

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

9,803

 

 

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

 

 

32,891

 

 

Market approach

 

Historical and actual loss experience

 

0.11% - 6.00%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

33,834

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.3 - 42.8
(1)
Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
(2)
Represents amount net of liquidation costs.
(3)
Relates to the recreation portfolio.

(Dollars in thousands)

 

Fair Value
at 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
(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.
v3.22.1
Medallion Bank Preferred Stock (Non-controlling Interest)
 9 Months Ended
Sep. 30, 2021
Medallion Bank Preferred Stock (Non-controlling Interest)

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

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46.0 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.
v3.22.1
Subsequent Events
 3 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to March 31, 2022 through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.
v3.22.1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2022
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. As of March 31, 2022, cash 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 12 and 13 to the consolidated financial statements.

Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.1 million and $9.7 million at March 31, 2022 and December 31, 2021, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of March 31, 2022, the Company determined that there was no impairment or observable price change.

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 gain (loss) on equity investments. As of March 31, 2022 and December 31, 2021, the fair value of these securities were $1.9 million and $2.0 million and are included in other assets on the consolidated balance sheet.

The table below presents the unrealized portion related to the equity securities held.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(91

)

 

$

(28

)

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

 

 

—

 

 

 

—

 

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

 

$

(91

)

 

$

(28

)
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 $0.1 million at March 31, 2022 and $0.3 million at December 31, 2021, and less than $0.1 million was amortized to interest income for the three months ended March 31, 2022 and 2021. 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. At March 31, 2022 and December 31, 2021, net loan origination costs were $28.4 million and $26.1 million. Net amortization to income for the three months ended March 31, 2022 was $2.1 million and $1.7 million for the three months ended March 31, 2021.

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 $4.2 million at March 31, 2022, or 0.27% of the total loan portfolio, compared to $4.0 million, or 0.28%, at December 31, 2021.

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. 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.

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. For New York City medallion loans in the process of foreclosure, although market prices fluctuate, and may exceed the internally determined value, the Company continued to utilize a net value of $79,500 when assessing net realizable value for the medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. 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 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 at March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021.

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, 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 continued to use $79,500 as its internally determined value for assessing net realizable value for the medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The Company continues to monitor the

impact of COVID-19 on the consumer, commercial, and medallion loans. 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 March 31, 2022 and December 31, 2021, the Company had goodwill of $150.8 million, all of which related to the Bank. As of March 31, 2022 and December 31, 2021, the Company had intangible assets of $23.1 million and $23.5 million. Amortization expense on the intangible assets for the three months ended March 31, 2022 and 2021 was $0.4 million. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0.4 million and $0.5 million were outstanding as of March 31, 2022 and December 31, 2021, and of which $0.1 million was amortized to interest income for the three months ended March 31, 2022 and 2021. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2021, concluding that there was no impairment of these assets. The Company has reviewed these assets, all of which relate to the Bank, and concluded that no impairment exists as of March 31, 2022.

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

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Brand-related intellectual property

 

$

17,600

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,520

 

 

 

5,606

 

Total intangible assets

 

$

23,120

 

 

$

23,480

 
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 $0.1 million for the three months ended March 31, 2022 and 2021.
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 $0.6 million for the three months ended March 31, 2022 and was $0.6 million for the three months ended March 31, 2021. 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 $7.2 million and $7.1 million as of March 31, 2022 and December 31, 2021.
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.
Earnings Per Share (EPS)

Earnings Per Share (EPS)

Basic earnings 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 considering to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS.

 

 

Three Months Ended March 31,

 

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

 

2022

 

 

2021

 

Net income available to common stockholders

 

$

9,841

 

 

$

8,431

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

24,770,134

 

 

 

24,518,775

 

Effect of dilutive stock options

 

 

89,507

 

 

 

21,168

 

Effect of restricted stock grants

 

 

223,925

 

 

 

355,165

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

25,083,566

 

 

 

24,895,108

 

Basic income per share

 

$

0.40

 

 

$

0.34

 

Diluted income per share

 

 

0.39

 

 

 

0.34

 

Potentially dilutive common shares excluded from the above calculations aggregated 466,867 and 1,188,455 shares as of March 31, 2022 and 2021.

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 three months ended March 31, 2022 and 2021, the Company issued 383,925 and 163,561 restricted shares of stock-based compensation awards, issued 0 and 317,398 shares of other stock-based compensation awards, and issued no restricted stock units; and recognized $0.6 million, or $0.02 per share, for the three months ended March 31, 2022, and $0.5 million, or $0.02 for the three months ended March 31, 2021, of non-cash stock-based compensation expense related to the grants. As of March 31, 2022, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $5.1 million, which is expected to be recognized over the next 12 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 March 31, 2022, the Bank’s Tier 1 leverage ratio was 17.51%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

March 31, 2022

 

 

December 31, 2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

205,731

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

274,519

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

294,472

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,567,781

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,563,232

 

 

 

1,482,678

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

17.5

%

 

 

17.5

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.2

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.6

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.8

 

 

 

19.0

 
(1)
Calculated by dividing Tier 1 capital by average assets.
(2)
Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
(3)
Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In the table above, the minimum risk-based ratios as of March 31, 2022 and December 31, 2021 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2022 and December 31, 2021.
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.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses, or Topic 326: Troubled Debt Restructurings and Vintage Disclosures, or ASU 2022-02. The main objective of this new standard is to amend ASU 2016-13 in response to feedback received from the post-implementation review process. The amendments update ASU 2016-13 to require that an entity measure and record the lifetime expected credit losses on an asset upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. The amendments also

require the disclosure of current period gross write-offs, by year of origination, for financing receivables. We are assessing the impact the update will have on our 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.
v3.22.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Summary of Unrealized Portion Related to Equity Securities

The table below presents the unrealized portion related to the equity securities held.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(91

)

 

$

(28

)

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

 

 

—

 

 

 

—

 

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

 

$

(91

)

 

$

(28

)
Schedule of Intangible Assets

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

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Brand-related intellectual property

 

$

17,600

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,520

 

 

 

5,606

 

Total intangible assets

 

$

23,120

 

 

$

23,480

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

 

 

Three Months Ended March 31,

 

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

 

2022

 

 

2021

 

Net income available to common stockholders

 

$

9,841

 

 

$

8,431

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

24,770,134

 

 

 

24,518,775

 

Effect of dilutive stock options

 

 

89,507

 

 

 

21,168

 

Effect of restricted stock grants

 

 

223,925

 

 

 

355,165

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

25,083,566

 

 

 

24,895,108

 

Basic income per share

 

$

0.40

 

 

$

0.34

 

Diluted income per share

 

 

0.39

 

 

 

0.34

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

 

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

March 31, 2022

 

 

December 31, 2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

205,731

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

274,519

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

294,472

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,567,781

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,563,232

 

 

 

1,482,678

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

17.5

%

 

 

17.5

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.2

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

17.6

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.8

 

 

 

19.0

 
(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.
v3.22.1
Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2022
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale at March 31, 2022 and December 31, 2021 consisted of the following:

March 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

41,902

 

 

$

112

 

 

$

(1,961

)

 

$

40,053

 

State and municipalities

 

 

7,280

 

 

 

10

 

 

 

(268

)

 

 

7,022

 

Total

 

$

49,182

 

 

$

122

 

 

$

(2,229

)

 

$

47,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

The amortized cost and estimated market value of investment securities at March 31, 2022 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.

March 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

22

 

 

$

22

 

Due after one year through five years

 

 

9,568

 

 

 

9,494

 

Due after five years through ten years

 

 

9,734

 

 

 

9,238

 

Due after ten years

 

 

29,858

 

 

 

28,321

 

Total

 

$

49,182

 

 

$

47,075

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

March 31, 2022
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(759

)

 

$

18,862

 

 

$

(1,202

)

 

$

11,040

 

State and municipalities

 

 

(137

)

 

 

3,119

 

 

 

(131

)

 

 

1,474

 

Total

 

$

(896

)

 

$

21,981

 

 

$

(1,333

)

 

$

12,514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)
The Company had 37 and 15 securities at March 31, 2022 and December 31, 2021, with u
v3.22.1
Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2022
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at March 31, 2022 and December 31, 2021.

 

 

March 31, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,004,091

 

 

 

64

%

 

$

961,320

 

 

 

65

%

Home improvement

 

 

473,408

 

 

 

30

 

 

 

436,772

 

 

 

29

 

Commercial

 

 

77,867

 

 

 

5

 

 

 

76,696

 

 

 

5

 

Medallion

 

 

13,849

 

 

 

1

 

 

 

14,046

 

 

 

1

 

Strategic partnership

 

 

226

 

 

 

0

 

 

 

90

 

 

 

—

 

Total gross loans

 

 

1,569,441

 

 

 

100

%

 

 

1,488,924

 

 

 

100

%

Allowance for loan losses

 

 

(50,686

)

 

 

 

 

 

(50,166

)

 

 

 

Total net loans

 

$

1,518,755

 

 

 

 

 

$

1,438,758

 

 

 

 
Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the three months ended March 31, 2022 and 2021.


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

114,406

 

 

 

89,820

 

 

 

4,400

 

 

 

92

 

 

 

5,009

 

 

 

213,727

 

Principal payments, sales, maturities, and recoveries

 

 

(65,116

)

 

 

(52,164

)

 

 

(1,817

)

 

 

(85

)

 

 

(4,873

)

 

 

(124,055

)

Charge-offs

 

 

(5,067

)

 

 

(1,060

)

 

 

(1,584

)

 

 

(75

)

 

 

—

 

 

 

(7,786

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,911

)

 

 

—

 

 

 

—

 

 

 

(129

)

 

 

—

 

 

 

(3,040

)

Amortization of origination costs

 

 

(2,439

)

 

 

320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,119

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

3,958

 

 

 

(190

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,768

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

172

 

 

 

—

 

 

 

—

 

 

 

172

 

Gross loans – March 31, 2022

 

$

1,004,091

 

 

$

473,408

 

 

$

77,867

 

 

$

13,849

 

 

$

226

 

 

$

1,569,441

 

 


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

93,850

 

 

 

48,059

 

 

 

4,156

 

 

 

—

 

 

 

1,944

 

 

 

148,009

 

Principal payments, sales, maturities, and recoveries

 

 

(55,958

)

 

 

(39,637

)

 

 

(10,965

)

 

 

(636

)

 

 

(1,910

)

 

 

(109,106

)

Charge-offs

 

 

(5,053

)

 

 

(681

)

 

 

 

 

 

(1,114

)

 

 

—

 

 

 

(6,848

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,053

)

 

 

—

 

 

 

—

 

 

 

(696

)

 

 

—

 

 

 

(3,749

)

Amortization of origination costs

 

 

(2,162

)

 

 

497

 

 

 

11

 

 

 

(2

)

 

 

—

 

 

 

(1,656

)

Amortization of loan premium

 

 

(41

)

 

 

(76

)

 

 

—

 

 

 

(70

)

 

 

—

 

 

 

(187

)

FASB origination costs, net

 

 

2,663

 

 

 

(74

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,589

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

325

 

 

 

—

 

 

 

—

 

 

 

325

 

Gross loans – March 31, 2021

 

$

822,932

 

 

$

342,121

 

 

$

58,854

 

 

$

35,250

 

 

$

58

 

 

$

1,259,215

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the three months ended March 31, 2022 and 2021.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Allowance for loan losses – beginning balance

 

$

50,166

 

 

$

57,548

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(5,067

)

 

 

(5,053

)

Home improvement

 

 

(1,060

)

 

 

(681

)

Commercial

 

 

(1,584

)

 

 

—

 

Medallion

 

 

(75

)

 

 

(1,114

)

Total charge-offs

 

 

(7,786

)

 

 

(6,848

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

3,510

 

 

 

2,469

 

Home improvement

 

 

559

 

 

 

432

 

Commercial

 

 

34

 

 

 

—

 

Medallion

 

 

963

 

 

 

1,189

 

Total recoveries

 

 

5,066

 

 

 

4,090

 

Net charge-offs (1)

 

 

(2,720

)

 

 

(2,758

)

Provision for loan losses

 

 

3,240

 

 

 

3,019

 

Allowance for loan losses – ending balance (2)

 

$

50,686

 

 

$

57,809

 
(1)
As of March 31, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $257.0 million, some of which may represent collection opportunities for the Company.
(2)
As of March 31, 2022 and March 31, 2021, 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 March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation (1)

 

$

32,558

 

 

 

64

%

 

 

3.24

%

 

 

98.99

%

Home improvement (2)

 

 

8,059

 

 

 

16

 

 

 

1.70

 

 

 

24.50

 

Commercial

 

 

828

 

 

 

2

 

 

 

1.06

 

 

 

2.52

 

Medallion

 

 

9,241

 

 

 

18

 

 

 

66.73

 

 

 

28.10

 

Total

 

$

50,686

 

 

 

100

%

 

 

3.23

%

 

 

154.10

%

 

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

%
Summary of Total Nonaccrual Loans and Foregone Interest

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

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Total nonaccrual loans

 

$

32,891

 

 

$

35,571

 

Interest foregone for the year

 

 

754

 

 

 

1,620

 

Amount of foregone interest applied to principal for the year

 

 

107

 

 

 

432

 

Interest foregone life-to-date

 

 

2,458

 

 

 

3,623

 

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

 

 

1,016

 

 

 

942

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

2

%

 

 

2

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

154

%

 

 

141

%
Summary of Performance Status of Loan

The following tables present the performance status of loans as of March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

998,590

 

 

$

5,501

 

 

$

1,004,091

 

 

 

0.55

%

Home improvement

 

 

473,114

 

 

 

294

 

 

 

473,408

 

 

 

0.06

 

Commercial

 

 

64,357

 

 

 

13,510

 

 

 

77,867

 

 

 

17.35

 

Medallion

 

 

—

 

 

 

13,849

 

 

 

13,849

 

 

 

100.00

 

Strategic partnership

 

 

226

 

 

 

—

 

 

 

226

 

 

 

—

 

Total

 

$

1,536,287

 

 

$

33,154

 

 

$

1,569,441

 

 

 

2.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%
Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2022 and December 31, 2021, all of which had an allowance recorded against the principal balance.

 

 

March 31, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,501

 

 

$

5,501

 

 

$

186

 

 

$

5,557

 

 

$

5,557

 

 

$

188

 

Home improvement

 

 

294

 

 

 

294

 

 

 

5

 

 

 

132

 

 

 

132

 

 

 

2

 

Commercial

 

 

13,510

 

 

 

13,555

 

 

 

828

 

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

Medallion

 

 

13,849

 

 

 

14,821

 

 

 

9,241

 

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

Total nonperforming loans with an allowance

 

$

33,154

 

 

$

34,171

 

 

$

10,260

 

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

 

 

For the Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,207

 

 

$

129

 

 

$

5,617

 

 

$

184

 

Home improvement

 

 

298

 

 

 

1

 

 

 

150

 

 

 

—

 

Commercial

 

 

16,368

 

 

 

—

 

 

 

17,358

 

 

 

—

 

Medallion

 

 

15,943

 

 

 

—

 

 

 

35,535

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

37,816

 

 

$

130

 

 

$

58,660

 

 

$

184

 
Summary of Aging of Loans

The following tables show the aging of all loans as of March 31, 2022 and December 31, 2021.

 March 31, 2022

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

18,927

 

 

$

6,096

 

 

$

3,802

 

 

$

28,825

 

 

$

944,347

 

 

$

973,172

 

 

$

—

 

Home improvement

 

 

1,379

 

 

 

672

 

 

 

297

 

 

 

2,348

 

 

 

473,179

 

 

 

475,527

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

77,793

 

 

 

77,867

 

 

 

—

 

Medallion

 

 

—

 

 

 

146

 

 

 

—

 

 

 

146

 

 

 

13,704

 

 

 

13,850

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

226

 

 

 

226

 

 

 

—

 

Total

 

$

20,306

 

 

$

6,914

 

 

$

4,173

 

 

$

31,393

 

 

$

1,509,249

 

 

$

1,540,642

 

 

$

—

 
(1)
Excludes loan premiums of $0.4 million and $28.4 million of capitalized loan origination costs.

 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

 

 

$

—

 
Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
Summary of TDRs

The following table shows the TDRs which the Company entered into during the three months ended March 31, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

10

 

 

 

129

 

 

 

129

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

The following table shows the TDRs which the Company entered into during the three months ended March 31, 2021.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

18

 

 

 

172

 

 

 

166

 

Medallion loans

 

 

8

 

 

 

2,738

 

 

 

2,738

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

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

2,911

 

 

 

129

 

 

 

3,040

 

Sales

 

 

(2,252

)

 

 

(116

)

 

 

(2,368

)

Cash payments received

 

 

—

 

 

 

(2,872

)

 

 

(2,872

)

Collateral valuation adjustments

 

 

(1,010

)

 

 

(386

)

 

 

(1,396

)

Loan collateral in process of foreclosure – March 31, 2022

 

$

1,369

 

 

$

32,465

 

 

$

33,834

 

 

Three Months Ended March 31, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

Transfer from loans, net

 

 

3,053

 

 

 

749

 

 

 

3,802

 

Sales

 

 

(2,298

)

 

 

—

 

 

 

(2,298

)

Cash payments received

 

 

—

 

 

 

(1,329

)

 

 

(1,329

)

Collateral valuation adjustments

 

 

(1,217

)

 

 

(2,785

)

 

 

(4,002

)

Loan collateral in process of foreclosure – March 31, 2021

 

$

970

 

 

$

49,763

 

 

$

50,733

 

As of March 31, 2022, medallion loans in the process of foreclosure included 481 medallions in the New York market, 335 medallions in the Chicago market, 61 medallions in the Newark market, and 47 medallions in other markets.
v3.22.1
Funds Borrowed (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The outstanding balances of funds borrowed were as follows:

 

 

Payments Due for the Twelve Months Ending March 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

March 31, 2022(1)

 

 

December 31, 2021(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

405,783

 

 

$

254,340

 

 

$

343,449

 

 

$

170,965

 

 

$

160,252

 

 

$

—

 

 

$

1,334,789

 

 

$

1,253,288

 

 

 

1.24

%

Privately placed notes

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

5,000

 

 

 

2,500

 

 

 

21,264

 

 

 

15,500

 

 

 

4,500

 

 

 

21,000

 

 

 

69,764

 

 

 

69,963

 

 

 

2.95

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

2.71

 

Total

 

$

410,783

 

 

$

292,840

 

 

$

364,713

 

 

$

217,715

 

 

$

164,752

 

 

$

107,750

 

 

$

1,558,553

 

 

$

1,477,251

 

 

 

1.84

%
(1)
Excludes deferred financing costs of $7.2 million and $7.1 million as of March 31, 2022 and December 31, 2021.
(2)
Weighted average contractual rate as of March 31, 2022.
Balance excludes $0.8 million of strategic partner reserve deposits as of March 31, 2022 and December 31, 2021.
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits The following table presents the maturity of the deposit pools, which excludes strategic partner reserve deposits, as of March 31, 2022.

(Dollars in thousands)

 

March 31, 2022

 

Three months or less

 

$

168,243

 

Over three months through six months

 

 

73,985

 

Over six months through one year

 

 

163,555

 

Over one year

 

 

929,006

 

Total deposits

 

$

1,334,789

 
v3.22.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the three months ended March 31, 2022 and 2021.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Operating lease costs

 

$

590

 

 

$

572

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

645

 

 

 

675

 

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

 

 

(45

)

 

 

(18

)
Schedule of Breakout of Operating leases

The following table presents the breakout of the operating leases as of March 31, 2022 and December 31, 2021.

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Operating lease right-of-use assets

 

$

9,536

 

 

$

10,045

 

Other current liabilities

 

 

2,153

 

 

 

2,159

 

Operating lease liabilities

 

 

8,548

 

 

 

9,053

 

Total operating lease liabilities

 

 

10,701

 

 

 

11,212

 

Weighted average remaining lease term

 

5.2 years

 

 

5.4 years

 

Weighted average discount rate

 

 

5.54

%

 

 

5.54

%
Schedule of Maturities of the Lease Liabilities

At March 31, 2022, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2022

 

$

1,823

 

2023

 

 

2,356

 

2024

 

 

2,373

 

2025

 

 

2,390

 

2026

 

 

2,408

 

Thereafter

 

 

1,164

 

Total lease payments

 

 

12,514

 

Less imputed interest

 

 

1,813

 

Total operating lease liabilities

 

$

10,701

 
v3.22.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021.

(Dollars in thousands)

 

March 31, 2022

 

 

December 31, 2021

 

Goodwill and other intangibles

 

$

(43,766

)

 

$

(43,894

)

Provision for loan losses

 

 

10,115

 

 

 

11,057

 

Net operating loss carryforwards (1)

 

 

9,627

 

 

 

12,167

 

Accrued expenses, compensation, and other assets

 

 

1,901

 

 

 

2,579

 

Unrealized gains on other investments

 

 

2,687

 

 

 

2,176

 

Total deferred tax liability

 

 

(19,436

)

 

 

(15,915

)

Valuation allowance(2)

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(21,731

)

 

$

(18,210

)
(1)
As of March 31, 2022, the Company and its subsidiaries had an estimated $42.3 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 $7.3 million as of March 31, 2022.
(2)
During the three months ended March 31, 2022, 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

The components of our tax provision for the three months ended March 31, 2022 and 2021 was as follows:

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Current

 

 

 

 

 

 

Federal

 

$

504

 

 

$

—

 

State

 

 

322

 

 

 

170

 

Deferred

 

 

 

 

 

 

Federal

 

 

3,220

 

 

 

3,053

 

State

 

 

785

 

 

 

655

 

Net provision for income taxes

 

$

4,831

 

 

$

3,878

 
Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision for the three months ended March 31, 2022 and 2021.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Statutory Federal income tax provision at 21%

 

$

3,399

 

 

$

2,719

 

State and local income taxes, net of federal income tax

 

 

665

 

 

 

532

 

Change in state income tax accruals

 

 

—

 

 

 

170

 

Change in effective state income tax rates and accrual

 

 

—

 

 

 

(200

)

Income attributable to non-controlling interest

 

 

—

 

 

 

(219

)

Non deductible expenses

 

 

713

 

 

 

172

 

Other

 

 

54

 

 

 

704

 

Total income tax provision

 

$

4,831

 

 

$

3,878

 
v3.22.1
Stock Options and Restricted Stock (Tables)
 3 Months Ended
Mar. 31, 2022
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. There were no grants issued for the three months ended March 31, 2022.

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Risk free interest rate

 

 

—

 

 

 

0.97

%

Expected dividend yield

 

 

—

 

 

 

—

 

Expected life of option in years (1)

 

 

—

 

 

 

6.25

 

Expected volatility (2)

 

 

—

 

 

 

53.98

%
(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 2022 first quarter and the 2021 full year.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

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

 

 

1,111,687

 

 

$

2.14 - 12.55

 

 

 

6.41

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(4,783

)

 

 

4.89 - 7.25

 

 

 

5.69

 

Exercised (1)

 

 

(23,192

)

 

 

4.89 - 7.25

 

 

 

6.53

 

Outstanding at March 31, 2022 (2)

 

 

1,083,712

 

 

$

2.14 - 12.55

 

 

$

6.53

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

320,922

 

 

$

2.14 - 12.55

 

 

$

6.53

 

March 31, 2022

 

 

554,119

 

 

$

2.14 - 12.55

 

 

$

6.54

 
(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 less than $0.1 million for the three months ended March 31, 2022 and 2021.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2022 and the related exercise price of the underlying options, was $2.2 million for outstanding options and $1.1 million for exercisable options as of March 31, 2022. The remaining contractual life was 7.8 years for outstanding options and 7.3 years for exercisable options at March 31, 2022.
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the 2022 first quarter and the 2021 full year.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

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 - 8.40

 

 

 

6.87

 

Granted

 

 

383,925

 

 

 

 

7.68

 

 

 

7.68

 

Cancelled

 

 

(5,747

)

 

 

4.89 - 8.40

 

 

 

7.33

 

Vested (1)

 

 

(126,234

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2022(2)

 

 

745,270

 

 

$

4.89 - 8.40

 

 

$

7.34

 
(1)
The aggregate fair value of the restricted stock vested was $0.7 million for the three months ended March 31, 2022 and was $0.8 million for the three months ended March 31, 2021.
(2)
The aggregate fair value of the restricted stock was $6.3 million as of March 31, 2022. The remaining vesting period was 2.9 years at March 31, 2022.
Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the 2022 first quarter.

 

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2021

 

 

790,765

 

 

$

4.89 - 7.25

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(4,200

)

 

 

4.89 - 7.25

 

 

 

5.48

 

Vested

 

 

(256,972

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2022

 

 

529,593

 

 

$

4.89 - 7.25

 

 

$

6.52

 
v3.22.1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Data

The following tables present segment data as of and for the three months ended March 31, 2022 and 2021.

Three Months Ended March 31, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

31,135

 

 

$

9,700

 

 

$

1,930

 

 

 

$

146

 

 

$

392

 

 

$

43,303

 

Total interest expense

 

 

3,601

 

 

 

1,341

 

 

 

722

 

 

 

 

153

 

 

 

1,558

 

 

 

7,375

 

Net interest income (loss)

 

 

27,534

 

 

 

8,359

 

 

 

1,208

 

 

 

 

(7

)

 

 

(1,166

)

 

 

35,928

 

Provision (recoveries) for loan losses

 

 

1,680

 

 

 

1,204

 

 

 

1,255

 

 

 

 

(869

)

 

 

(30

)

 

 

3,240

 

Net interest income (loss) after loss provision

 

 

25,854

 

 

 

7,155

 

 

 

(47

)

 

 

 

862

 

 

 

(1,136

)

 

 

32,688

 

Other income (expense), net

 

 

(6,820

)

 

 

(2,896

)

 

 

(1,330

)

 

 

 

(806

)

 

 

(4,652

)

 

 

(16,504

)

Net income (loss) before taxes

 

 

19,034

 

 

 

4,259

 

 

 

(1,377

)

 

 

 

56

 

 

 

(5,788

)

 

 

16,184

 

Income tax (provision) benefit

 

 

(5,681

)

 

 

(1,271

)

 

 

411

 

 

 

 

(17

)

 

 

1,727

 

 

 

(4,831

)

Net income (loss) after taxes

 

$

13,353

 

 

$

2,988

 

 

$

(966

)

 

 

$

39

 

 

$

(4,061

)

 

$

11,353

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

971,533

 

 

$

465,349

 

 

$

76,787

 

 

 

$

4,608

 

 

$

478

 

 

$

1,518,755

 

Total assets

 

 

984,535

 

 

 

469,886

 

 

 

86,461

 

 

 

 

37,752

 

 

 

387,991

 

 

 

1,966,625

 

Total funds borrowed

 

 

780,621

 

 

 

372,565

 

 

 

68,553

 

 

 

 

29,933

 

 

 

307,632

 

 

 

1,559,304

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.62

%

 

 

2.66

%

 

 

(3.83

)%

 

 

 

0.25

%

 

 

(4.80

)%

 

 

2.41

%

Return on average equity

 

 

29.27

 

 

 

13.85

 

 

 

(12.33

)

 

 

 

1.30

 

 

 

(28.30

)

 

 

13.70

 

Interest yield

 

 

13.30

 

 

 

8.71

 

 

 

10.12

 

 

 

 

12.49

 

 

N/A

 

 

 

11.06

 

Net interest margin

 

 

11.76

 

 

 

7.50

 

 

 

6.34

 

 

 

 

(0.67

)

 

N/A

 

 

 

9.20

 

Reserve coverage

 

 

3.24

 

 

 

1.70

 

 

 

1.06

 

(1)

 

 

66.73

 

 

N/A

 

 

 

3.23

 

Delinquency status(2)

 

 

0.39

 

 

 

0.06

 

 

 

0.10

 

(1)

 

 

—

 

 

N/A

 

 

 

0.27

 

Charge-off ratio(4)

 

 

0.67

 

 

 

0.46

 

 

 

8.13

 

(3)

 

 

(76.13

)

 

N/A

 

 

 

0.75

 
(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.

Three Months Ended March 31, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

27,442

 

 

$

7,918

 

 

$

1,482

 

 

 

$

(69

)

 

$

—

 

 

$

307

 

 

$

37,080

 

Total interest expense

 

 

2,794

 

 

 

1,208

 

 

 

572

 

 

 

 

1,370

 

 

 

41

 

 

 

2,422

 

 

 

8,407

 

Net interest income (loss)

 

 

24,648

 

 

 

6,710

 

 

 

910

 

 

 

 

(1,439

)

 

 

(41

)

 

 

(2,115

)

 

 

28,673

 

Provision for loan losses

 

 

3,613

 

 

 

450

 

 

 

—

 

 

 

 

(1,044

)

 

 

—

 

 

 

—

 

 

 

3,019

 

Net interest income (loss) after loss provision

 

 

21,035

 

 

 

6,260

 

 

 

910

 

 

 

 

(395

)

 

 

(41

)

 

 

(2,115

)

 

 

25,654

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

2,473

 

 

 

—

 

 

 

2,473

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(2,122

)

 

 

—

 

 

 

(2,122

)

Other income (expense), net

 

 

(5,463

)

 

 

(1,914

)

 

 

(460

)

 

 

 

(2,144

)

 

 

(1,761

)

 

 

(1,314

)

 

 

(13,056

)

Net income (loss) before taxes

 

 

15,572

 

 

 

4,346

 

 

 

450

 

 

 

 

(2,539

)

 

 

(1,451

)

 

 

(3,429

)

 

 

12,949

 

Income tax (provision) benefit

 

 

(4,010

)

 

 

(1,119

)

 

 

(113

)

 

 

 

637

 

 

 

364

 

 

 

363

 

 

 

(3,878

)

Net income (loss) after taxes

 

$

11,562

 

 

$

3,227

 

 

$

337

 

 

 

$

(1,902

)

 

$

(1,087

)

 

$

(3,066

)

 

$

9,071

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

794,554

 

 

$

336,763

 

 

$

55,567

 

 

 

$

11,177

 

 

$

—

 

 

$

3,345

 

 

$

1,201,406

 

Total assets

 

 

807,244

 

 

 

348,456

 

 

 

71,922

 

 

 

 

116,639

 

 

 

32,724

 

 

 

311,765

 

 

 

1,688,750

 

Total funds borrowed

 

 

641,993

 

 

 

277,672

 

 

 

59,533

 

 

 

 

92,469

 

 

 

8,726

 

 

 

266,366

 

 

 

1,346,759

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.92

%

 

 

3.80

%

 

 

1.79

%

 

 

 

(6.40

)%

 

 

(13.27

)%

 

 

(4.16

)%

 

 

2.08

%

Return on average equity

 

 

29.59

 

 

 

19.00

 

 

 

8.96

 

 

 

 

(31.98

)

 

 

(378.20

)

 

 

(30.80

)

 

 

11.09

 

Interest yield

 

 

14.36

 

 

 

9.66

 

 

 

10.37

 

 

 

 

(2.34

)

 

N/A

 

 

N/A

 

 

 

11.84

 

Net interest margin

 

 

12.90

 

 

 

8.19

 

 

 

6.37

 

 

 

 

(48.86

)

 

N/A

 

 

N/A

 

 

 

9.18

 

Reserve coverage

 

 

3.45

 

 

 

1.57

 

 

 

0.00

 

(1)

 

 

68.29

 

 

N/A

 

 

N/A

 

 

 

4.59

 

Delinquency status(2)

 

 

0.40

 

 

 

0.04

 

 

 

0.13

 

(1)

 

 

2.20

 

 

N/A

 

 

N/A

 

 

 

0.33

 

Charge-off ratio(4)

 

 

1.35

 

 

 

0.30

 

 

 

0.00

 

(3)

 

 

(2.55

)

 

N/A

 

 

N/A

 

 

 

0.95

 
(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.
v3.22.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
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.

 

 

March 31, 2021

 

 

December 31, 2021

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

138,794

 

 

$

138,794

 

 

$

124,484

 

 

$

124,484

 

Equity investments

 

 

10,076

 

 

 

10,076

 

 

 

9,726

 

 

 

9,726

 

Investment securities

 

 

47,075

 

 

 

47,075

 

 

 

44,772

 

 

 

44,772

 

Loans receivable

 

 

1,518,755

 

 

 

1,518,755

 

 

 

1,438,758

 

 

 

1,438,758

 

Accrued interest receivable (2)

 

 

10,603

 

 

 

10,603

 

 

 

10,621

 

 

 

10,621

 

Equity securities(3)

 

 

1,859

 

 

 

1,859

 

 

 

1,950

 

 

 

1,950

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

1,559,303

 

 

 

1,559,303

 

 

 

1,478,001

 

 

 

1,478,001

 

Accrued interest payable (2)

 

 

3,068

 

 

 

3,068

 

 

 

3,395

 

 

 

3,395

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of March 31, 2022 and December 31, 2021. See Note 13.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 13.
(3)
Included within other assets on the balance sheet.
v3.22.1
Fair Value of Assets and liabilities (Tables)
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

47,075

 

 

 

—

 

 

 

47,075

 

Equity securities

 

 

1,859

 

 

 

—

 

 

 

—

 

 

 

1,859

 

Total(1)

 

$

1,859

 

 

$

48,325

 

 

$

—

 

 

$

50,184

 
(1)
Total unrealized losses of $1.7 million, net of tax, was included in accumulated other comprehensive loss for the three months ended March 31, 2022 related to these assets.

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.
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 March 31, 2022 and December 31, 2021.

March 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,076

 

 

$

10,076

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

32,891

 

 

 

32,891

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

33,834

 

 

 

33,834

 

Total

 

$

—

 

 

$

—

 

 

$

76,801

 

 

$

76,801

 

 

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

 
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 March 31, 2022 and December 31, 2021.

(Dollars in thousands)

 

Fair Value
at March 31, 2022

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

9,803

 

 

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

 

 

32,891

 

 

Market approach

 

Historical and actual loss experience

 

0.11% - 6.00%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

33,834

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.3 - 42.8
(1)
Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
(2)
Represents amount net of liquidation costs.
(3)
Relates to the recreation portfolio.

(Dollars in thousands)

 

Fair Value
at 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
(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.
v3.22.1
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Medallion
Dec. 31, 2021
USD ($)
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 $ 1.0
Medallion Financing Trust I [Member]    
Subsidiary or Equity Method Investee [Line Items]    
Aggregate assets of trust $ 36.1  
v3.22.1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
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 10,100,000   $ 9,700,000  
Past Due 31,393,000   41,761,000  
Notes receivable net 79,500      
Investment securities Amortized to interest income 100,000 $ 100,000    
Net loan origination costs 28,400,000   26,100,000  
Net amortization to income $ (2,100,000) (1,700,000)    
Percentage of write down of loan balance 40.00%      
Principal portion of loans serviced, fair value $ 20,500,000   20,500,000  
Loans write down to collateral value $ (7,786,000) (6,848,000)    
Intangible assets useful life 20 years      
Goodwill $ 150,803,000   150,803,000  
Intangible assets, net 23,120,000   23,480,000  
Amortization of intangible assets 360,000 361,000    
Financing receivable, recorded investment, 90 days past due and still accruing 0   0  
Depreciation and amortization 100,000 100,000    
Amortization expense 600,000 $ 600,000    
Deferred costs $ 7,200,000   $ 7,100,000  
Potential dilutive common shares excluded from EPS computation 466,867 1,188,455    
Stock based compensation award 0 317,398    
Stock based compensation award, Amount $ 600,000 $ 500,000    
Stock based compensation award per diluted common share $ 0.02 $ 0.02    
Unrecognized compensation cost related to unvested stock options and restricted stock $ 5,100,000      
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period 12 months      
Tier 1 leverage capital to total assets ratio 15.00%      
Tier 1 leverage capital ratio 17.51%      
Capital conversation buffer 2.50%   2.50%  
Restricted Shares [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Stock based compensation award 383,925 163,561 258,120  
Restricted Stock Units [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Stock based compensation award 0 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 $ 400,000   $ 500,000  
Loan portfolio premium amortized to interest income 100,000 $ 100,000    
Medallion Bank [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Amortization of intangible assets 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 4,173,000   4,024,000  
91+ [Member] | Loans [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Past Due $ 4,200,000   $ 4,000,000.0  
Total loans more than 90 days past due ,percentage 0.27%   0.28%  
Bank Holding Company Accounting [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Net premium on investment securities $ 100,000   $ 300,000  
Other Assets [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Equity securities, fair value $ 1,900,000   $ 2,000,000.0  
Equity Securities [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
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      
v3.22.1
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Equity Securities, FV-NI, Gain (Loss) [Abstract]    
Net losses recognized during the period on equity securities $ (91) $ (28)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (91) $ (28)
v3.22.1
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Investments In Loans [Line Items]    
Intangibles assets $ 23,120 $ 23,480
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 17,600 17,874
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 5,520 $ 5,606
v3.22.1
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Accounting Policies [Abstract]    
Net income available to common stockholders $ 9,841 $ 8,431
Weighted average common shares outstanding applicable to basic EPS 24,770,134 24,518,775
Effect of dilutive stock options 89,507 21,168
Effect of restricted stock grants 223,925 355,165
Adjusted weighted average common shares outstanding applicable to diluted EPS 25,083,566 24,895,108
Basic income per share $ 0.40 $ 0.34
Diluted income per share $ 0.39 $ 0.34
v3.22.1
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
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 $ 205,731 $ 193,459
Tier 1 capital 274,519 262,247
Total capital 294,472 281,211
Average assets 1,567,781 1,495,726
Risk-weighted assets $ 1,563,232 $ 1,482,678
Leverage ratio 17.5 17.5
Common equity Tier 1 capital ratio 13.2 13.1
Tier 1 capital ratio 17.6 17.7
Total capital ratio 18.8 19.0
v3.22.1
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 49,182 $ 44,494
Gross Unrealized Gains 122 732
Gross Unrealized Losses (2,229) (454)
Fair Value 47,075 44,772
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 41,902 35,469
Gross Unrealized Gains 112 672
Gross Unrealized Losses (1,961) (403)
Fair Value 40,053 35,738
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 7,280 9,025
Gross Unrealized Gains 10 60
Gross Unrealized Losses (268) (51)
Fair Value $ 7,022 $ 9,034
v3.22.1
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 22  
Amortized Cost, due after one year through five years 9,568  
Amortized Cost, due after five years through ten years 9,734  
Amortized Cost, due after ten years 29,858  
Amortized Cost 49,182 $ 44,494
Market Value, due in one year or less 22  
Market Value, due after one year through five years 9,494  
Market Value, due after five years through ten years 9,238  
Market Value, due after ten years 28,321  
Market Value, total $ 47,075 $ 44,772
v3.22.1
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (896) $ (412)
Fair Value, Less than Twelve Months 21,981 18,454
Gross Unrealized Losses, Twelve Months and Over (1,333) (42)
Fair Value, Twelve Months and Over 12,514 1,956
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (759) (403)
Fair Value, Less than Twelve Months 18,862 16,330
Gross Unrealized Losses, Twelve Months and Over (1,202) 0
Fair Value, Twelve Months and Over 11,040 0
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (137) (9)
Fair Value, Less than Twelve Months 3,119 2,124
Gross Unrealized Losses, Twelve Months and Over (131) (42)
Fair Value, Twelve Months and Over $ 1,474 $ 1,956
v3.22.1
Investment Securities - Additional Information (Detail) - Securities
Mar. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Abstract]    
Number of Securities 37 15
v3.22.1
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Dec. 31, 2020
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 1,540,642 [1] $ 1,461,622 [2]    
Allowance for loan losses (50,686) [3] (50,166) $ (57,809) [3] $ (57,548)
Net loans receivable 1,518,755 1,438,758    
Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans 1,569,441 1,488,924 1,259,215 1,229,838
Allowance for loan losses 50,686 50,166    
Net loans receivable $ 1,518,755 $ 1,438,758    
Percentage of total gross loans 100.00% 100.00%    
Recreation [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 973,172 [1] $ 931,859 [2]    
Allowance for loan losses (32,558) (32,435)    
Recreation [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 1,004,091 $ 961,320 822,932 792,686
Percentage of total gross loans 64.00% 65.00%    
Home Improvement [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 475,527 [1] $ 438,931 [2]    
Allowance for loan losses (8,059) (7,356)    
Home Improvement [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 473,408 $ 436,772 342,121 334,033
Percentage of total gross loans 30.00% 29.00%    
Commercial [Member]        
Student Loan Portfolio By Program [Line Items]        
Allowance for loan losses $ (828) $ (1,141)    
Commercial [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 77,867 $ 76,696 58,854 65,327
Percentage of total gross loans 5.00% 5.00%    
Medallion [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 13,850 [1] $ 14,046 [2]    
Allowance for loan losses (9,241) (9,234)    
Medallion [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 13,849 $ 14,046 35,250 37,768
Percentage of total gross loans 1.00% 1.00%    
Strategic Partnership [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 226 [1] $ 90 [2]    
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 226 $ 90 $ 58 $ 24
Percentage of total gross loans 0.00%    
[1] Excludes loan premiums of $0.4 million and $28.4 million of capitalized loan origination costs.

 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

 

 

$

—

 
[2] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[3] As of March 31, 2022 and March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.1
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance [1] $ 1,461,622,000  
Charge-offs [2] 2,720,000 $ 2,758,000
Transfer to loan collateral in process of foreclosure, net (3,040,000) (3,802,000)
Amortization of origination costs (2,119,000) (1,656,000)
Paid-in-kind interest 172,000 325,000
Gross loans, ending balance [3] 1,540,642,000  
Recreation [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance [1] 931,859,000  
Transfer to loan collateral in process of foreclosure, net (2,911,000) (3,053,000)
Gross loans, ending balance [3] 973,172,000  
Home Improvement [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance [1] 438,931,000  
Gross loans, ending balance [3] 475,527,000  
Medallion [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance [1] 14,046,000  
Transfer to loan collateral in process of foreclosure, net (129,000) (749,000)
Gross loans, ending balance [3] 13,850,000  
Strategic Partnership [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance [1] 90,000  
Charge-offs 0 0
Gross loans, ending balance [3] 226,000  
Bank Holding Company Accounting [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 1,488,924,000 1,229,838,000
Loan originations 213,727,000 148,009,000
Principal payments, sales, maturities, and recoveries 124,055,000 109,106,000
Charge-offs 7,786,000 6,848,000
Transfer to loan collateral in process of foreclosure, net 3,040,000 3,749,000
Amortization of origination costs (2,119,000) (1,656,000)
Amortization of loan premium 150,000 187,000
FASB origination costs 3,768,000 2,589,000
Paid-in-kind interest 172,000 325,000
Gross loans, ending balance 1,569,441,000 1,259,215,000
Bank Holding Company Accounting [Member] | Recreation [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 961,320,000 792,686,000
Loan originations 114,406,000 93,850,000
Principal payments, sales, maturities, and recoveries 65,116,000 55,958,000
Charge-offs 5,067,000 5,053,000
Transfer to loan collateral in process of foreclosure, net 2,911,000 3,053,000
Amortization of origination costs (2,439,000) (2,162,000)
Amortization of loan premium 60,000 41,000
FASB origination costs 3,958,000 2,663,000
Paid-in-kind interest
Gross loans, ending balance 1,004,091,000 822,932,000
Bank Holding Company Accounting [Member] | Home Improvement [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 436,772,000 334,033,000
Loan originations 89,820,000 48,059,000
Principal payments, sales, maturities, and recoveries 52,164,000 39,637,000
Charge-offs 1,060,000 681,000
Transfer to loan collateral in process of foreclosure, net
Amortization of origination costs 320,000 497,000
Amortization of loan premium 90,000 76,000
FASB origination costs (190,000) (74,000)
Paid-in-kind interest
Gross loans, ending balance 473,408,000 342,121,000
Bank Holding Company Accounting [Member] | Commercial [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 76,696,000 65,327,000
Loan originations 4,400,000 4,156,000
Principal payments, sales, maturities, and recoveries 1,817,000 10,965,000
Charge-offs 1,584,000  
Transfer to loan collateral in process of foreclosure, net
Amortization of origination costs 11,000
Amortization of loan premium
FASB origination costs
Paid-in-kind interest 172,000 325,000
Gross loans, ending balance 77,867,000 58,854,000
Bank Holding Company Accounting [Member] | Medallion [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 14,046,000 37,768,000
Loan originations 92,000
Principal payments, sales, maturities, and recoveries 85,000 636,000
Charge-offs 75,000 1,114,000
Transfer to loan collateral in process of foreclosure, net 129,000 696,000
Amortization of origination costs (2,000)
Amortization of loan premium 70,000
FASB origination costs
Paid-in-kind interest
Gross loans, ending balance 13,849,000 35,250,000
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 90,000 24,000
Loan originations 5,009,000 1,944,000
Principal payments, sales, maturities, and recoveries 4,873,000 1,910,000
Charge-offs
Transfer to loan collateral in process of foreclosure, net
Amortization of origination costs
Amortization of loan premium
FASB origination costs
Paid-in-kind interest
Gross loans, ending balance $ 226,000 $ 58,000
[1] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[2] As of March 31, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $257.0 million, some of which may represent collection opportunities for the Company.
[3] Excludes loan premiums of $0.4 million and $28.4 million of capitalized loan origination costs.

 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

 

 

$

—

 
v3.22.1
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for loan losses - beginning balance $ 50,166 $ 57,548
Total charge-offs 7,786 6,848
Total recoveries 5,066 4,090
Charge-offs [1] 2,720 2,758
Provision for loan losses 3,240 3,019
Allowance for loan losses - ending balance [2] 50,686 57,809
Recreation [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for loan losses - beginning balance 32,435  
Total charge-offs 5,067 5,053
Total recoveries 3,510 2,469
Allowance for loan losses - ending balance 32,558  
Home Improvement [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for loan losses - beginning balance 7,356  
Total charge-offs 1,060 681
Total recoveries 559 432
Allowance for loan losses - ending balance 8,059  
Commercial [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for loan losses - beginning balance 1,141  
Total charge-offs 1,584
Total recoveries 34
Allowance for loan losses - ending balance 828  
Medallion [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for loan losses - beginning balance 9,234  
Total charge-offs 75 1,114
Total recoveries 963 $ 1,189
Allowance for loan losses - ending balance $ 9,241  
[1] As of March 31, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $257.0 million, some of which may represent collection opportunities for the Company.
[2] As of March 31, 2022 and March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.1
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
 [1],[2]
Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loan collateral process of foreclosure $ 33,834,000 [1] $ 50,733,000 $ 37,430,000 $ 54,560,000
Net charge-offs [3] (2,720,000) (2,758,000)    
Strategic Partnership [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Net charge-offs 0 $ 0    
Medallion Bank [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loan collateral process of foreclosure $ 257,000,000.0      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.7 million as of March 31, 2022 and $7.4 million as of December 31, 2021.
[2] Represents amount net of liquidation costs.
[3] As of March 31, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $257.0 million, some of which may represent collection opportunities for the Company.
v3.22.1
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
 [1]
Dec. 31, 2020
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 50,686 [1] $ 50,166 $ 57,809 $ 57,548
Percentage of Allowance 100.00% 100.00%    
Allowance as a Percent of Loan Category 3.23% 3.37%    
Allowance as a Percent of Nonaccrual 154.10% 141.03%    
Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 32,558 $ 32,435    
Percentage of Allowance 64.00% 64.00%    
Allowance as a Percent of Loan Category 3.24% 3.37%    
Allowance as a Percent of Nonaccrual 98.99% 91.18%    
Home Improvement [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 8,059 $ 7,356    
Percentage of Allowance 16.00% 15.00%    
Allowance as a Percent of Loan Category 1.70% 1.68%    
Allowance as a Percent of Nonaccrual 24.50% 20.68%    
Commercial [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 828 $ 1,141    
Percentage of Allowance 2.00% 2.00%    
Allowance as a Percent of Loan Category 1.06% 1.49%    
Allowance as a Percent of Nonaccrual 2.52% 3.21%    
Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 9,241 $ 9,234    
Percentage of Allowance 18.00% 19.00%    
Allowance as a Percent of Loan Category 66.73% 65.74%    
Allowance as a Percent of Nonaccrual 28.10% 25.96%    
[1] As of March 31, 2022 and March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.1
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Receivables [Abstract]    
Total nonaccrual loans $ 32,891 $ 35,571
Interest foregone quarter to date 754 1,620
Amount of foregone interest applied to principal in the quarter 107 432
Interest foregone life to date 2,458 3,623
Amount of foregone interest applied to principal life-to-date $ 1,016 $ 942
Percentage of nonaccrual loans to gross loan portfolio 2.00% 2.00%
Percentage of allowance for loan losses to nonaccrual loans 154.00% 141.00%
v3.22.1
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,569,441 $ 1,488,924
Percentage of Nonperforming to Total 2.11% 2.42%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,536,287 $ 1,452,859
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 33,154 36,065
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,004,091 $ 961,320
Percentage of Nonperforming to Total 0.55% 0.58%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 998,590 $ 955,763
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 5,501 5,557
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 473,408 $ 436,772
Percentage of Nonperforming to Total 0.06% 0.03%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 473,114 $ 436,640
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 294 132
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 77,867 $ 76,696
Percentage of Nonperforming to Total 17.35% 21.29%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 64,357 $ 60,366
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 13,510 16,330
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 13,849 $ 14,046
Percentage of Nonperforming to Total 100.00% 100.00%
Medallion [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans
Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 13,849 14,046
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 226 $ 90
Percentage of Nonperforming to Total
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 226 $ 90
Strategic Partnership [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans
v3.22.1
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance $ 33,154   $ 36,065
Unpaid principal balance, With related allowance 34,171   37,007
Related Allowance, With related allowance 10,260   10,168
Average Investment Recorded, With related allowance 37,816 $ 58,660  
Interest Income Recognized, With related allowance 130 184  
Recreation [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 5,501   5,557
Unpaid principal balance, With related allowance 5,501   5,557
Related Allowance, With related allowance 186   188
Average Investment Recorded, With related allowance 5,207 5,617  
Interest Income Recognized, With related allowance 129 184  
Home Improvement [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 294   132
Unpaid principal balance, With related allowance 294   132
Related Allowance, With related allowance 5   2
Average Investment Recorded, With related allowance 298 150  
Interest Income Recognized, With related allowance 1 0  
Commercial [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 13,510   16,330
Unpaid principal balance, With related allowance 13,555   16,360
Related Allowance, With related allowance 828   1,141
Average Investment Recorded, With related allowance 16,368 17,358  
Interest Income Recognized, With related allowance 0 0  
Medallion [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 13,849   14,046
Unpaid principal balance, With related allowance 14,821   14,958
Related Allowance, With related allowance 9,241   $ 8,837
Average Investment Recorded, With related allowance 15,943 35,535  
Interest Income Recognized, With related allowance $ 0 $ 0  
v3.22.1
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 31,393 $ 41,761
Total 1,540,642 [1] 1,461,622 [2]
Accruing 0 0
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 20,306 23,564
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,914 14,173
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 4,173 4,024
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,509,249 1,419,861
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 28,825 30,424
Total 973,172 [1] 931,859 [2]
Accruing 0 0
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 18,927 20,037
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,096 6,569
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,802 3,818
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 944,347 901,435
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,348 2,128
Total 475,527 [1] 438,931 [2]
Accruing 0 0
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,379 1,517
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 672 479
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 297 132
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 473,179 436,803
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 1,869
Total 77,867 [1] 76,696 [2]
Accruing 0 0
Commercial Loans [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 1,795
Commercial Loans [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 74
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 77,793 74,827
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 146 7,340
Total 13,850 [1] 14,046 [2]
Accruing 0 0
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 215
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 146 7,125
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 13,704 6,706
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Total 226 [1] 90 [2]
Accruing 0 0
Strategic Partnership [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Strategic Partnership [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Strategic Partnership [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 226 $ 90
[1] Excludes loan premiums of $0.4 million and $28.4 million of capitalized loan origination costs.

 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

 

 

$

—

 
[2] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
v3.22.1
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Receivables [Abstract]    
Loan premiums $ 0.4 $ 0.5
Capitalized loan origination costs $ 28.4 $ 26.8
v3.22.1
Loans and Allowance for Loan Losses - Additional Information (Detail)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
USD ($)
TDR
Mar. 31, 2021
USD ($)
TDR
Medallion
Mar. 31, 2022
USD ($)
Medallion
TDR
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]          
Weighted average loan-to-value ratio       295.00%  
Allowance for loan loss $ 50,686 [1] $ 57,809 [1] $ 50,686 [1] $ 50,166 $ 57,548
Medallion [Member]          
Financing Receivable Recorded Investment Past Due [Line Items]          
Number of loans modified as TDRs defaulted | TDR 2 8      
Allowance for loan loss $ 9,241   9,241 9,234  
Recreation [Member]          
Financing Receivable Recorded Investment Past Due [Line Items]          
Number of loans modified as TDRs defaulted | TDR 10 18      
Allowance for loan loss $ 32,558   $ 32,558 32,435  
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]          
Financing Receivable Recorded Investment Past Due [Line Items]          
Number of loans modified as TDRs defaulted | Medallion   35 0    
TDR investment value   $ 20,600      
Allowance for loan loss   $ 16,100      
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]          
Financing Receivable Recorded Investment Past Due [Line Items]          
Number of loans modified as TDRs defaulted | TDR 0 36 24    
TDR investment value $ 300 $ 400 $ 300    
Allowance for loan loss       $ 100  
[1] As of March 31, 2022 and March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.1
Loans and Allowance for Loan Losses - Summary of TDRs (Detail)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
TDR
Mar. 31, 2021
USD ($)
TDR
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 10 18
Pre- Modification Investment $ 129 $ 172
Post- Modification Investment $ 129 $ 166
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 2 8
Pre- Modification Investment $ 252 $ 2,738
Post- Modification Investment $ 252 $ 2,738
v3.22.1
Loans and Allowance for Loan Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance $ 37,430 [1],[2] $ 54,560
Transfer from loans, net 3,040 3,802
Sales (2,368) (2,298)
Cash payments received (2,872) (1,329)
Collateral valuation adjustments (1,396) (4,002)
Loans collateral in process of foreclosure - ending balance 33,834 [1] 50,733
Recreation [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 1,720 1,432
Transfer from loans, net 2,911 3,053
Sales (2,252) (2,298)
Cash payments received 0 0
Collateral valuation adjustments (1,010) (1,217)
Loans collateral in process of foreclosure - ending balance 1,369 970
Medallion [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 35,710 53,128
Transfer from loans, net 129 749
Sales (116) 0
Cash payments received (2,872) (1,329)
Collateral valuation adjustments (386) (2,785)
Loans collateral in process of foreclosure - ending balance $ 32,465 $ 49,763
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.7 million as of March 31, 2022 and $7.4 million as of December 31, 2021.
[2] Represents amount net of liquidation costs.
v3.22.1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
2023 $ 410,783  
2024 292,840  
2025 364,713  
2026 217,715  
2027 164,752  
Thereafter 107,750  
Long term debt [1] $ 1,558,553 $ 1,477,251
Interest Rate [2] 1.84%  
Deposits [Member]    
Debt Instrument [Line Items]    
2023 [3] $ 405,783  
2024 [3] 254,340  
2025 [3] 343,449  
2026 [3] 170,965  
2027 [3] 160,252  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,334,789 1,253,288
Interest Rate [2],[3] 1.24%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2023 $ 5,000  
2024 2,500  
2025 21,264  
2026 15,500  
2027 4,500  
Thereafter 21,000  
Long term debt [1] $ 69,764 69,963
Interest Rate [2] 2.95%  
Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2023  
2024 36,000  
2025  
2026 31,250  
2027  
Thereafter 53,750  
Long term debt [1] $ 121,000 121,000
Interest Rate [2] 7.66%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
2023  
2024  
2025  
2026  
2027  
Thereafter 33,000  
Long term debt [1] $ 33,000 $ 33,000
Interest Rate [2] 2.71%  
[1] Excludes deferred financing costs of $7.2 million and $7.1 million as of March 31, 2022 and December 31, 2021.
[2] Weighted average contractual rate as of March 31, 2022.
[3] Balance excludes $0.8 million of strategic partner reserve deposits as of March 31, 2022 and December 31, 2021.
v3.22.1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Debt Disclosure [Abstract]    
Deferred costs $ 7.2 $ 7.1
Reserve Deposits $ 0.8 $ 0.8
v3.22.1
Funds Borrowed - Additional Information (Detail)
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 28, 2021
USD ($)
Jul. 31, 2020
USD ($)
Dec. 31, 2007
USD ($)
Jun. 30, 2007
USD ($)
shares
Apr. 30, 2016
USD ($)
Mar. 31, 2022
USD ($)
Deposit
shares
Mar. 31, 2021
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2021
USD ($)
shares
Apr. 30, 2021
USD ($)
Mar. 15, 2021
USD ($)
Dec. 31, 2020
USD ($)
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     $ 8,700,000            
Maturity date           2021                  
Maturity date Feb. 28, 2026 Sep. 24, 2024                          
Debt instrument face amount   $ 25,000,000.0                          
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion           $ 4,800,000                  
Issue of common stock | shares           28,526,016     28,124,629            
Preferred securities repurchased from a third party investor     $ 2,000,000.0                        
Long-term debt [1]           $ 220,006,000     $ 219,973,000            
Gain on debt extinguishment           0 $ (1,767,000)                
Debenture Mature 2021 [Member]                              
Debt Instrument [Line Items]                              
Debt instrument commitments drawn           15,500,000                  
Long-term debt           $ 8,500,000                  
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           (0.96%)                  
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]                              
Debt instrument interest rate Percentage           3.25%                  
Loan commitment term           4 years 6 months                  
Commitment fee percentage   1.00%       1.00%                  
Principal amount of loan                             $ 34,000,000.0
Extended maturity date           Apr. 30, 2024                  
Debt instrument commitments available           $ 9,500,000                  
Debt instrument outstanding amount           69,800,000                  
Debt instrument remaining amount           $ 8,800,000                  
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
7.25% Unsecured Senior Notes Due February 2026 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount                   $ 3,000,000.0 $ 3,300,000        
7.50% Unsecured Senior Notes Due December 2027 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount                   $ 11,700,000          
Privately Placed Notes [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount $ 25,000,000.0       $ 33,600,000           $ 8,500,000 $ 33,600,000 $ 6,000,000.0 $ 30,000,000.0  
Debt instrument interest rate Percentage 7.25%       9.00%             7.50%   8.25%  
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                    
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 $3.8 million and $4.0 million of deferred financing costs as of March 31, 2022 and December 31, 2021. Refer to Note 5 for more details.
v3.22.1
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Mar. 31, 2022
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 168,243
Over three months through six months 73,985
Over six months through one year 163,555
Over one year 929,006
Total Deposits $ 1,334,789
v3.22.1
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Leases [Abstract]    
Operating lease costs $ 590 $ 572
Operating cash flows from operating leases 645 675
Right-of-use asset obtained in exchange for lease liability $ (45) $ (18)
v3.22.1
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
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 $ 9,536 $ 10,045
Other current liabilities $ 2,153 $ 2,159
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 8,548 $ 9,053
Total operating lease liabilities $ 10,701 $ 11,212
Weighted average remaining lease term 5 years 2 months 12 days 5 years 4 months 24 days
Weighted average discount rate 5.54% 5.54%
v3.22.1
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Remainder of 2022 $ 1,823  
2023 2,356  
2024 2,373  
2025 2,390  
2026 2,408  
Thereafter 1,164  
Total lease payments 12,514  
Less imputed interest 1,813  
Total operating lease liabilities $ 10,701 $ 11,212
v3.22.1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (43,766) $ (43,894)
Provision for loan losses 10,115 11,057
Net operating loss carryforwards [1] 9,627 12,167
Accrued expenses, compensation, and other assets 1,901 2,579
Unrealized gains on other investments 2,687 2,176
Total deferred tax liability (19,436) (15,915)
Valuation allowance [2] (2,295) (2,295)
Deferred tax liability, net $ (21,731) $ (18,210)
[1] As of March 31, 2022, the Company and its subsidiaries had an estimated $42.3 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 $7.3 million as of March 31, 2022.
[2] During the three months ended March 31, 2022, 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.
v3.22.1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Valuation allowance $ 1.8
Medallion Chicago [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 42.3
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets $ 7.3
Medallion Chicago [Member] | December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1.7
v3.22.1
Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Current    
Federal $ (504) $ 0
State (322) (170)
Deferred    
Federal (3,220) (3,053)
State (785) (655)
Total income tax provision $ (4,831) $ (3,878)
v3.22.1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision at 21% $ (3,399) $ (2,719)
State and local income taxes, net of federal income tax (665) (532)
Change in state income tax accruals 0 (170)
Change in effective state income tax rates and accrual 0 200
Income attributable to non-controlling interest 0 219
Non deductible expenses (713) (172)
Other (54) (704)
Total income tax provision $ (4,831) $ (3,878)
v3.22.1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision percentage 21.00% 21.00%
v3.22.1
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Jun. 15, 2018
Mar. 31, 2022
Mar. 31, 2021
Jun. 30, 2021
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Mar. 01, 2016
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Stock option outstanding   1,083,712 [1]       1,111,687 951,669 [1]      
Stock option exercisable   554,119       320,922        
Unvested shares under restricted common stock plan   529,593       790,765        
Intrinsic value of options vested   $ 0.1                
Restricted Stock Units [Member]                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares outstanding, unvested restricted stock units   64,672                
Number of shares outstanding, vested restricted stock units   47,715                
Number of shares, vested   (47,715)                
Restricted Stock Units [Member] | Vest on June 17, 2022 [Member]                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares, granted   0                
Exercise price for grant per share   $ 8.87                
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member]                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares, granted           16,803        
Restricted Shares [Member]                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares outstanding, unvested restricted stock units   745,270 [2]       493,326 [2] 416,140      
Number of shares, vested [3]   (126,234)       (158,994)        
Weighted average fair value of options granted     $ 3.50              
Number of shares, granted   383,925 163,561     258,120        
Exercise price for grant per share   $ 7.68       $ 7.38        
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   25,996                
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member]                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares outstanding, unvested restricted stock units   16,957                
2015 Restricted Stock Plan [Member]                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares available for grant               700,000    
Unvested shares under restricted common stock plan   745,270                
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  
Share based compensation, options term 10 years                  
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            
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2022 and the related exercise price of the underlying options, was $2.2 million for outstanding options and $1.1 million for exercisable options as of March 31, 2022. The remaining contractual life was 7.8 years for outstanding options and 7.3 years for exercisable options at March 31, 2022.
[2] The aggregate fair value of the restricted stock was $6.3 million as of March 31, 2022. The remaining vesting period was 2.9 years at March 31, 2022.
[3] The aggregate fair value of the restricted stock vested was $0.7 million for the three months ended March 31, 2022 and was $0.8 million for the three months ended March 31, 2021.
v3.22.1
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]    
Risk free interest rate 0.00% 0.97%
Expected dividend yield 0.00% 0.00%
Expected life of option in years [1]   6 years 3 months
Expected volatility [2] 0.00% 53.98%
[1] Expected life is calculated using the simplified method.
[2] We determine our expected volatility based on our historical volatility
v3.22.1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of options beginning balance 1,111,687 951,669 [1]
Granted 0 317,398
Cancelled (4,783) (113,310)
Exercised [2] (23,192) (44,070)
Number of options ending balance 1,083,712 [1] 1,111,687
Options exercisable 554,119 320,922
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14 [1]
Exercise price per share, upper range limit beginning balance 12.55 12.55 [1]
Exercise price per share, granted 0 6.79
Exercise price per share, lower range limit ending balance 2.14 [1] 2.14
Exercise price per share, upper range limit ending balance 12.55 [1] 12.55
Exercise price per share, option exercisable lower range limit 2.14 2.14
Exercise price per share, option exercisable upper range limit 12.55 12.55
Weighted average exercise price, beginning balance 6.41 6.41 [1]
Weighted average exercise price, granted 0 6.79
Weighted average exercise price, cancelled 5.69 6.64
Weighted average exercise price, exercised [2] 6.53 5.58
Weighted average exercise price, ending balance 6.53 [1] 6.41
Weighted average exercise price, options exercisable 6.54 6.53
Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Exercise price per share, cancelled 4.89 4.89
Exercise price per share, exercised [2] 4.89 5.21
Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Exercise price per share, cancelled 7.25 11.53
Exercise price per share, exercised [2] $ 7.25 $ 7.25
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2022 and the related exercise price of the underlying options, was $2.2 million for outstanding options and $1.1 million for exercisable options as of March 31, 2022. The remaining contractual life was 7.8 years for outstanding options and 7.3 years for exercisable options at March 31, 2022.
[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 less than $0.1 million for the three months ended March 31, 2022 and 2021.
v3.22.1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Aggregate intrinsic value for option exercised $ 0.1 $ 0.1
Aggregate intrinsic value of option outstanding 2.2  
Aggregate intrinsic value of option exercisable $ 1.1  
Remaining contractual life of option outstanding 7 years 9 months 18 days  
Remaining contractual life of option exercisable 7 years 3 months 18 days  
v3.22.1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant price per share, cancelled, lower limit $ 4.89    
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 493,326 [1] 416,140 416,140
Number of shares, granted 383,925 163,561 258,120
Number of shares, cancelled (5,747)   (21,940)
Number of shares, vested [2] (126,234)   (158,994)
Number of shares, ending balance [1] 745,270   493,326
Grant price per share, lower range limit beginning balance $ 4.89 [1] $ 4.39 $ 4.39
Grant price per share, upper range limit beginning balance 8.40 [1] 7.25 7.25
Grant price per share, granted, lower limit     6.79
Grant price per share, granted, upper limit 7.68   8.40
Grant price per share, cancelled, lower limit 4.89   4.89
Grant price per share, cancelled, upper limit 8.40   7.25
Grant price per share, vested, lower limit [2] 4.89   4.39
Grant price per share, vested, upper limit [2] 7.25   7.25
Grant price per share, lower range limit ending balance [1] 4.89   4.89
Grant price per share, upper range limit ending balance [1] 8.40   8.40
Weighted average grant price beginning balance 6.87 [1] $ 6.24 6.24
Weighted average grant price, granted 7.68   7.38
Weighted average grant price, cancelled 7.33   5.98
Weighted average grant price, vested [2] 6.55   6.16
Weighted average grant price, ending balance [1] $ 7.34   $ 6.87
[1] The aggregate fair value of the restricted stock was $6.3 million as of March 31, 2022. The remaining vesting period was 2.9 years at March 31, 2022.
[2] The aggregate fair value of the restricted stock vested was $0.7 million for the three months ended March 31, 2022 and was $0.8 million for the three months ended March 31, 2021.
v3.22.1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Aggregate fair value of restricted stock vested $ 0.7 $ 0.8
Aggregate fair value of restricted stock outstanding $ 6.3  
Remaining vesting period of restricted stock 2 years 10 months 24 days  
v3.22.1
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]    
Number of options beginning balance 790,765  
Number of options, granted 0 317,398
Number of options, cancelled (4,200)  
Number of options, vested (256,972)  
Number of options ending balance 529,593 790,765
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 4.89  
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 6.52  
Weighted average exercise price, cancelled 5.48  
Weighted average exercise price, vested 6.55  
Weighted average exercise price $ 6.52 $ 6.52
v3.22.1
Segment Reporting - Additional Information (Detail)
 3 Months Ended
Mar. 31, 2022
Segment
Dec. 31, 2021
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 13.2 13.1
Operating Segments [Member]    
Segment Reporting Disclosure [Line Items]    
Capital ratios for operating segments 20  
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 33.00%  
Swimming Pools [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 26.00%  
Windows [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 12.00%  
Solar Panels [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 6.00%  
Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 16.00%  
Texas [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 12.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Florida [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Ohio [Member] | Home Improvement [Member]    
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 59.00%  
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 8.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Midwest [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 49.00%  
v3.22.1
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 43,303 $ 37,080  
Total interest expense 7,375 8,407  
Net interest income (loss) 35,928 28,673  
Provision for loan losses 3,240 3,019  
Net interest income after provision for loan losses 32,688 25,654  
Sponsorship and race winnings 0 2,473  
Race team related expenses 0 2,122  
Other income (expense), net (16,504) 13,056  
Income before income taxes 16,184 12,949  
Net income (loss) before taxes 16,184 12,949  
Income tax (provision) benefit (4,831) (3,878)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 11,353 9,071  
Net income (loss) after taxes 11,353 9,071  
Balance Sheet Data      
Total loans, net 1,518,755   $ 1,438,758
total loans net 1,518,755 1,201,406  
Total assets 1,966,625 1,688,750 $ 1,873,057
Total funds borrowed $ 1,559,304 $ 1,346,759  
Selected Financial Ratios      
Return on average assets 2.41% 2.08%  
Return on average equity 13.70% 11.09%  
Interest yield 11.06% 11.84%  
Net interest margin 9.20% 9.18%  
Reserve coverage 3.23% 4.59%  
Delinquency status 0.27% [1] 0.33% [2]  
Charge-off ratio 0.75% [3] 0.95% [4]  
RPAC [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss)    
Total interest expense   41  
Net interest income (loss)   (41)  
Provision for loan losses    
Net interest income after provision for loan losses   (41)  
Sponsorship and race winnings   2,473  
Race team related expenses   (2,122)  
Other income (expense), net   (1,761)  
Income before income taxes   (1,451)  
Income tax (provision) benefit   364  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations   (1,087)  
Balance Sheet Data      
Total loans, net    
Total assets   32,724  
Total funds borrowed   $ 8,726  
Selected Financial Ratios      
Return on average assets   (13.27%)  
Return on average equity   (378.20%)  
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 31,135 $ 27,442  
Total interest expense 3,601 2,794  
Net interest income (loss) 27,534 24,648  
Provision for loan losses 1,680 3,613  
Net interest income after provision for loan losses 25,854 21,035  
Sponsorship and race winnings    
Race team related expenses    
Other income (expense), net (6,820) (5,463)  
Income before income taxes 19,034 15,572  
Income tax (provision) benefit (5,681) (4,010)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 13,353 11,562  
Balance Sheet Data      
Total loans, net 971,533 794,554  
Total assets 984,535 807,244  
Total funds borrowed $ 780,621 $ 641,993  
Selected Financial Ratios      
Return on average assets 5.62% 5.92%  
Return on average equity 29.27% 29.59%  
Interest yield 13.30% 14.36%  
Net interest margin 11.76% 12.90%  
Reserve coverage 3.24% 3.45%  
Delinquency status 0.39% [1] 0.40% [2]  
Charge-off ratio 0.67% [3] 1.35% [4]  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 9,700 $ 7,918  
Total interest expense 1,341 1,208  
Net interest income (loss) 8,359 6,710  
Provision for loan losses 1,204 450  
Net interest income after provision for loan losses 7,155 6,260  
Sponsorship and race winnings    
Race team related expenses    
Other income (expense), net (2,896) (1,914)  
Income before income taxes 4,259 4,346  
Income tax (provision) benefit (1,271) (1,119)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 2,988 3,227  
Balance Sheet Data      
Total loans, net 465,349 336,763  
Total assets 469,886 348,456  
Total funds borrowed $ 372,565 $ 277,672  
Selected Financial Ratios      
Return on average assets 2.66% 3.80%  
Return on average equity 13.85% 19.00%  
Interest yield 8.71% 9.66%  
Net interest margin 7.50% 8.19%  
Reserve coverage 1.70% 1.57%  
Delinquency status 0.06% [1] 0.04% [2]  
Charge-off ratio 0.46% [3] 0.30% [4]  
Operating Segments [Member] | Commercial Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 1,930 $ 1,482  
Total interest expense 722 572  
Net interest income (loss) 1,208 910  
Provision for loan losses 1,255  
Net interest income after provision for loan losses (47) 910  
Sponsorship and race winnings    
Race team related expenses    
Other income (expense), net (1,330) (460)  
Income before income taxes (1,377) 450  
Income tax (provision) benefit 411 (113)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (966) 337  
Balance Sheet Data      
Total loans, net 76,787 55,567  
Total assets 86,461 71,922  
Total funds borrowed $ 68,553 $ 59,533  
Selected Financial Ratios      
Return on average assets (3.83%) 1.79%  
Return on average equity (12.33%) 8.96%  
Interest yield 10.12% 10.37%  
Net interest margin 6.34% 6.37%  
Reserve coverage 1.06% [5] 0.00% [6]  
Delinquency status 0.10% [1],[5] 0.13% [2],[6]  
Charge-off ratio (8.13%) [3],[7] 0.00% [4],[8]  
Operating Segments [Member] | Medallion Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 146 $ (69)  
Total interest expense 153 1,370  
Net interest income (loss) (7) (1,439)  
Provision for loan losses (869) (1,044)  
Net interest income after provision for loan losses 862 (395)  
Sponsorship and race winnings    
Race team related expenses    
Other income (expense), net (806) (2,144)  
Income before income taxes 56 (2,539)  
Income tax (provision) benefit (17) 637  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 39 (1,902)  
Balance Sheet Data      
Total loans, net 4,608 11,177  
Total assets 37,752 116,639  
Total funds borrowed $ 29,933 $ 92,469  
Selected Financial Ratios      
Return on average assets 0.25% (6.40%)  
Return on average equity 1.30% (31.98%)  
Interest yield 12.49% (2.34%)  
Net interest margin (0.67%) (48.86%)  
Reserve coverage 66.73% 68.29%  
Delinquency status [1] 2.20% [2]  
Charge-off ratio (76.13%) [3] (2.55%) [4]  
Intersegment Eliminations [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 392 $ 307  
Total interest expense 1,558 2,422  
Net interest income (loss) (1,166) (2,115)  
Provision for loan losses (30)  
Net interest income after provision for loan losses (1,136) (2,115)  
Sponsorship and race winnings    
Race team related expenses    
Other income (expense), net (4,652) (1,314)  
Income before income taxes (5,788) (3,429)  
Income tax (provision) benefit 1,727 363  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (4,061) (3,066)  
Balance Sheet Data      
Total loans, net 478 3,345  
Total assets 387,991 311,765  
Total funds borrowed $ (307,632) $ 266,366  
Selected Financial Ratios      
Return on average assets (4.80%) (4.16%)  
Return on average equity (28.30%) (30.80%)  
[1] Loans 90 days or more past due.
[2] Loans 90 days or more past due.
[3] Negative balances indicate recoveries for the period.
[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 to the total loan business.
[8] Ratio is based on total commercial lending balances, and relates to the total loan business.
v3.22.1
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2026
Future minimum payments $ 12.0
Other commitment $ 1.8
v3.22.1
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Related Party Transaction [Line Items]    
Salary from related party $ 239,000 $ 195,000
Annual cash bonus 75,000 32,500
Equity bonus $ 45,019 $ 30,000
v3.22.1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Financial assets      
Equity investments $ 10,076 $ 9,726  
Investment securities 47,075 44,772  
Loans receivable 1,569,441 1,488,924  
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents and federal funds sold [1]   124,484 $ 138,794
Equity investments   9,726 10,076
Investment securities   44,772 47,075
Loans receivable   1,438,758 1,518,755
Accrued interest receivable [2]   10,621 10,603
Equity securities, fair value [3]   1,950 1,859
Financial liabilities      
Funds borrowed   1,478,001 1,559,303
Accrued interest payable [2]   3,395 3,068
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents and federal funds sold [1]   124,484 138,794
Equity investments   9,726 10,076
Investment securities   44,772 47,075
Loans receivable   1,438,758 1,518,755
Accrued interest receivable [2]   10,621 10,603
Equity securities, fair value $ 1,859 1,950 [3] 1,859 [3]
Financial liabilities      
Funds borrowed   1,478,001 1,559,303
Accrued interest payable [2]   $ 3,395 $ 3,068
[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of March 31, 2022 and December 31, 2021. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
v3.22.1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,300  
Fair Value Recurring [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks 1,250 $ 1,250
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 $ 1,250
v3.22.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
 [1]
Assets      
Interest-bearing deposits $ 1,300    
Fair Value Recurring [Member]      
Assets      
Interest-bearing deposits 1,250 $ 1,250  
Available for sale investment securities 47,075 44,772  
Equity securities, fair value 1,859 1,950 [1] $ 1,859
Total 50,184 [2] 47,972 [3]  
Fair Value Recurring [Member] | Level 1 [Member]      
Assets      
Equity securities, fair value 1,859 1,950  
Total 1,859 [2] 1,950 [3]  
Fair Value Recurring [Member] | Level 2 [Member]      
Assets      
Interest-bearing deposits 1,250 1,250  
Available for sale investment securities 47,075 44,772  
Total $ 48,325 [2] $ 46,022 [3]  
[1] Included within other assets on the balance sheet.
[2] Total unrealized losses of $1.7 million, net of tax, was included in accumulated other comprehensive loss for the three months ended March 31, 2022 related to these assets.
[3] Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.
v3.22.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]    
Net change in unrealized losses on investments, net of tax $ 1.7 $ 1.0
v3.22.1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Dec. 31, 2020
Assets        
Impaired loans $ 20,500 $ 20,500    
Mortgage Loans in Process of Foreclosure, Amount 33,834 [1] 37,430 [1],[2] $ 50,733 $ 54,560
Fair Value, Nonrecurring        
Assets        
Equity investments 10,076 9,726    
Impaired loans 32,891 35,571    
Mortgage Loans in Process of Foreclosure, Amount 33,834 37,430    
Total 76,801 82,727    
Fair Value, Nonrecurring | Level 3 [Member]        
Assets        
Equity investments 10,076 9,726    
Impaired loans 32,891 35,571    
Mortgage Loans in Process of Foreclosure, Amount 33,834 37,430    
Total $ 76,801 $ 82,727    
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.7 million as of March 31, 2022 and $7.4 million as of December 31, 2021.
[2] Represents amount net of liquidation costs.
v3.22.1
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 3 Months Ended 12 Months Ended
Mar. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Principal portion of loans serviced, fair value $ 20,500,000 $ 20,500,000    
Loan collateral in process of foreclosure $ 33,834,000 [1] $ 37,430,000 [1],[2] $ 50,733,000 $ 54,560,000
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity Value | $ / shares $ 8.73 $ 8.73    
Impaired Loans [Member] | Market Approach [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Impaired loans, balance percentage 0.60 0.60    
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Impaired loans value 0.0011      
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 $ 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 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   0.0150    
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   0.0600    
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 2,300 $ 3,600    
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 42,800 49,800    
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   0.0    
Loan collateral in process of foreclosure value 0.0 0.0    
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   79,500    
Loan collateral in process of foreclosure value 79,500 79,500    
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity investments 9,803,000 [3] 9,453,000 [4]    
Level 3 [Member] | Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity investments   273,000    
Level 3 [Member] | Impaired Loans [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity investments 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 32,891,000 $ 35,571,000    
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 [5] $ 33,834,000      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.7 million as of March 31, 2022 and $7.4 million as of December 31, 2021.
[2] Represents amount net of liquidation costs.
[3] Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
[4] Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
[5] Represents amount net of liquidation costs.
v3.22.1
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Mar. 31, 2022
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  
v3.22.1
Variable Interest Entities - Additional Information (Detail) - USD ($)
$ in Thousands
Feb. 28, 2021
Jul. 31, 2020
Mar. 31, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]        
Equity investments     $ 10,076 $ 9,726
Maturity date Feb. 28, 2026 Sep. 24, 2024