MEDALLION FINANCIAL CORP, 10-Q filed on 03 Nov 22
 | XBRL Documents
v3.22.2.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2022
Nov. 02, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2022  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   22,927,839
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 $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.22.2.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents [1] $ 24,754 $ 64,482
Federal funds sold 73,448 60,002
Investment securities 48,354 44,772
Equity investments 10,670 9,726
Loans 1,855,510 1,488,924
Allowance for loan losses (61,535) [2] (50,166)
Net loans receivable 1,793,975 1,438,758
Goodwill 150,803 150,803
Loan collateral in process of foreclosure [3] 24,331 37,430
Intangible assets, net 22,398 23,480
Property, equipment, and right-of-use lease asset, net 12,636 11,762
Accrued interest receivable 11,959 10,621
Income tax receivable 3,420 833
Other assets 22,793 20,388
Total assets 2,199,541 1,873,057
Liabilities    
Deposits [4] 1,555,832 1,250,880
Long-term debt [5] 219,448 219,973
Deferred tax liabilities, net 26,132 18,210
Operating lease liabilities 8,580 9,053
Accrued interest payable 3,432 3,395
Accounts payable and accrued expenses [6] 26,228 15,718
Total liabilities 1,839,652 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 - 28,529,993 shares at September 30, 2022 and 28,124,629 shares at December 31, 2021 issued) 285 281
Additional paid in capital 282,681 280,038
Treasury stock (5,344,923 shares at September 30, 2022 and 2,951,243 shares at December 31, 2021) (43,741) (24,919)
Accumulated other comprehensive income (loss) (3,562) 1,034
Retained earnings 55,438 30,606
Total stockholders’ equity 291,101 287,040
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 359,889 355,828
Total liabilities and equity $ 2,199,541 $ 1,873,057
Number of shares outstanding 23,185,070 25,173,386
Book value per share $ 12.56 $ 11.40
[1] Includes no restricted cash requirement as of September 30, 2022 and $3.0 million as of December 31, 2021.
[2] As of September 30, 2022 and September 30, 2021, there were 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 $7.8 million as of September 30, 2022 and $7.4 million as of December 31, 2021
[4] Includes $3.9 million and $3.2 million of deferred financing costs as of September 30, 2022 and December 31, 2021. Refer to Note 5 for more details.
[5] Includes $3.3 million and $4.0 million of deferred financing costs as of September 30, 2022 and December 31, 2021. Refer to Note 5 for more details.
[6] Includes the short-term portion of lease liabilities of $2.1 million and $2.2 million as of September 30, 2022 and December 31, 2021. Refer to Note 6 for more details.
v3.22.2.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 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 28,529,993 28,124,629
Treasury stock,shares 5,344,923 2,951,243
Restricted cash $ 0.0 $ 3.0
Loan collateral in process of foreclosure, financed sales collateral to third parties 7.8 7.4
Short term lease liabilities 2.1 2.2
Deposits [Member]    
Deferred financing costs 3.9 3.2
Long-Term Debt [Member]    
Deferred financing costs $ 3.3 $ 4.0
v3.22.2.2
Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]        
Interest and fees on loans $ 50,955 $ 41,250 $ 140,759 $ 115,237
Interest and dividends on investment securities 739 247 1,349 716
Total interest income [1] 51,694 41,497 142,108 115,953
Interest on deposits 6,240 4,189 15,306 13,366
Interest on long-term debt 0 3,198 0 9,662
Interest on short-term borrowings 3,414 39 9,952 690
Total interest expense 9,654 7,426 25,258 23,718
Net interest income (loss) 42,040 34,071 116,850 92,235
Provision (benefit) for loan losses 10,047 (337) 21,046 2,000
Net interest income (loss) after loss provision 31,993 34,408 95,804 90,235
Other income (loss)        
Gain (loss) on equity investments (1,123) 4,101 2,985 7,306
Write-down of loan collateral in process of foreclosure (94) (438) (608) (5,385)
Gain on extinguishment of debt 0 0 0 4,626
Sponsorship and race winnings, net 0 3,335 0 10,153
Other income 986 208 6,278 209
Total other (loss) income, net (231) 7,206 8,655 16,909
Other expenses        
Salaries and employee benefits 8,411 7,957 23,709 21,542
Professional fees 3,722 1,963 12,106 4,694
Loan servicing fees 2,159 1,684 6,231 5,062
Collection costs 1,593 1,136 3,935 4,010
Rent expense 629 481 1,764 1,780
Regulatory fees 610 488 1,621 1,383
Amortization of intangible assets 359 362 1,082 1,083
Race team related expenses 0 2,424 0 7,219
Other expenses 1,926 2,228 5,807 6,412
Total other expenses 19,409 18,723 56,255 53,185
Income before income taxes 12,353 22,891 48,204 53,959
Income tax provision 3,205 6,167 12,892 16,573
Net income after taxes 9,148 16,724 35,312 37,386
Less: income attributable to the non-controlling interest 1,512 784 4,535 2,748
Total net income attributable to Medallion Financial Corp. $ 7,636 $ 15,940 $ 30,777 $ 34,638
Basic net income per share $ 0.33 $ 0.65 $ 1.28 $ 1.41
Diluted net income per share $ 0.32 $ 0.64 $ 1.26 $ 1.39
Weighted average common shares outstanding        
Basic 23,154,775 24,634,845 24,020,058 24,583,573
Diluted 23,510,645 24,990,226 24,332,776 24,945,707
[1] Included in interest income is $0.2 million and $0.5 million of paid-in-kind interest for the three and nine months ended September 30, 2022 and $0.2 million and $0.7 million for the three and nine months ended September 30, 2021.
v3.22.2.2
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]        
Interest paid-in-kind $ 0.2 $ 0.2 $ 0.5 $ 0.7
v3.22.2.2
Consolidated Statements of Other Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net income after taxes $ 9,148 $ 16,724 $ 35,312 $ 37,386
Other comprehensive (loss) income, net of tax (1,461) (141) (4,596) (719)
Total comprehensive income 7,687 16,583 30,716 36,667
Less comprehensive income attributable to the non-controlling interest 1,512 784 4,535 2,748
Total comprehensive income attributable to Medallion Financial Corp. $ 6,175 $ 15,799 $ 26,181 $ 33,919
v3.22.2.2
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 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) income, 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)        
Net income 37,386              
Other comprehensive (loss) income, net of tax (719)              
Ending balance at Sep. 30, 2021 338,612 $ 280 279,454 $ (24,919) 11,136 1,293 267,244 71,368
Ending balance, shares at Sep. 30, 2021   28,033,404   (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              
Net change in unrealized gains (losses) on investments, net of tax $ (1,000)              
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)        
Balance at Mar. 31, 2021 $ 312,014 $ 280 278,035 $ (24,919) (15,071) 1,407 239,732 72,282
Balance, shares at Mar. 31, 2021   27,985,598   (2,951,243)        
Net income 11,592       10,267   10,267 1,325
Distributions to non-controlling interest (1,511)             (1,511)
Stock-based compensation expense 576   576       576  
Issuance of restricted stock, net, shares   15,514            
Forfeiture of restricted stock, net, shares   (10,332)            
Exercise of stock options 116   116       116  
Exercise of stock options, shares   22,227            
Net change in unrealized gains (losses) on investments, net of tax 27         27 27  
Ending balance at Jun. 30, 2021 322,814 $ 280 278,727 $ (24,919) (4,804) 1,434 250,718 72,096
Ending balance, shares at Jun. 30, 2021   28,013,007   (2,951,243)        
Net income 16,724       15,940   15,940 784
Distributions to non-controlling interest (1,512)             (1,512)
Stock-based compensation expense 602   602       602  
Forfeiture of restricted stock, net, shares   (678)            
Exercise of stock options 125   125       125  
Exercise of stock options, shares   21,075            
Other comprehensive (loss) income, net of tax (141)              
Net change in unrealized gains (losses) on investments, net of tax (141)         (141) (141)  
Ending balance at Sep. 30, 2021 338,612 $ 280 279,454 $ (24,919) 11,136 1,293 267,244 71,368
Ending balance, shares at Sep. 30, 2021   28,033,404   (2,951,243)        
Balance at Dec. 31, 2021 $ 355,828 $ 281 280,038 $ (24,919) 30,606 1,034 287,040 68,788
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) income, 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   28,526,016   (3,018,903)        
Balance at Dec. 31, 2021 $ 355,828 $ 281 280,038 $ (24,919) 30,606 1,034 287,040 68,788
Balance, shares at Dec. 31, 2021 25,173,386 28,124,629   (2,951,243)        
Net income $ 35,312              
Other comprehensive (loss) income, net of tax (4,596)              
Net change in unrealized gains (losses) on investments, net of tax 4,600              
Ending balance at Sep. 30, 2022 $ 359,889 $ 285 282,681 $ (43,741) 55,438 (3,562) 291,101 68,788
Ending balance, shares at Sep. 30, 2022 23,185,070 28,529,993   (5,344,923)        
Balance at Mar. 31, 2022 $ 362,041 $ 285 280,784 $ (25,536) 38,403 (683) 293,253 68,788
Balance, shares at Mar. 31, 2022   28,526,016   (3,018,903)        
Net income 14,811       13,300   13,300 1,511
Distributions to non-controlling interest (1,511)             (1,511)
Stock-based compensation expense $ 863   863       863  
Issuance of restricted stock, net, shares   4,944            
Forfeiture of restricted stock, net, shares   587            
Exercise of stock options, shares [1] 0              
Purchase of common stock (in Shares)       (1,272,150)        
Purchase of common stock $ (9,974)     $ (9,974)     (9,974)  
Dividend paid on common stock (1,971)       (1,971)   (1,971)  
Other comprehensive (loss) income, net of tax (1,418)         (1,418) (1,418)  
Ending balance at Jun. 30, 2022 362,841 $ 285 281,647 $ (35,510) 49,732 (2,101) 294,053 68,788
Ending balance, shares at Jun. 30, 2022   28,530,373   (4,291,053)        
Net income 9,148       7,636   7,636 1,512
Distributions to non-controlling interest (1,512)             (1,512)
Stock-based compensation expense $ 1,034   1,034       1,034  
Forfeiture of restricted stock, net, shares   (380)            
Exercise of stock options, shares [1] 0              
Purchase of common stock (in Shares)       (1,053,870)        
Purchase of common stock $ (8,231)     $ (8,231)     (8,231)  
Dividend paid on common stock (1,930)       (1,930)   (1,930)  
Other comprehensive (loss) income, net of tax (1,461)         (1,461) (1,461)  
Net change in unrealized gains (losses) on investments, net of tax 1,500              
Ending balance at Sep. 30, 2022 $ 359,889 $ 285 $ 282,681 $ (43,741) $ 55,438 $ (3,562) $ 291,101 $ 68,788
Ending balance, shares at Sep. 30, 2022 23,185,070 28,529,993   (5,344,923)        
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0 and less than $0.1 million for the three and nine months ended September 30, 2022 and was $0.2 million for the year ended December 31, 2021.
v3.22.2.2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]      
Dividends payable, amount per share $ 0.08 $ 0.08 $ 0.08
v3.22.2.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 35,312 $ 37,386
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for loan losses 21,046 2,000
Paid-in-kind interest income (528) (682)
Depreciation and amortization 4,408 5,289
Amortization of origination fees, net 7,184 5,770
Increase in deferred and other tax liabilities, net 5,335 13,113
Net change in value of loan collateral in process of foreclosure 3,806 8,501
Net realized gains on sale of investments (2,985) (7,436)
Stock-based compensation expense 2,495 1,674
Gain on extinguishment of debt 0 (4,626)
(Increase) decrease in accrued interest receivable (1,338) 692
Increase in other assets (5,641) (1,577)
Increase in accounts payable and accrued expenses 9,858 3,498
(Decrease) increase in accrued interest payable 37 (1,626)
Net cash provided by operating activities 78,989 61,976
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (806,788) (564,914)
Proceeds from principal receipts, sales, and maturities of loans 414,760 342,718
Purchases of investments (18,658) (17,979)
Proceeds from principal receipts, sales, and maturities of investments 11,970 21,389
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 17,952 16,661
Net cash used for investing activities (380,764) (202,125)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 676,264 587,945
Repayments of time deposits and funds borrowed (371,800) (470,168)
Cash dividend paid on common stock (5,766) 0
Distributions to non-controlling interests (4,535) (4,534)
Treasury stock repurchased (18,822) 0
Proceeds from the exercise of stock options 152 240
Net cash provided by financing activities 275,493 113,483
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (26,282) (26,666)
Cash, and cash equivalents beginning of period [1] 124,484 112,040
Cash and cash equivalents, end of period (1) [1] 98,202 85,374
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 23,177 23,418
Cash paid during the period for income taxes 5,786 3,150
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 8,659 $ 13,145
[1] Includes Federal Funds Sold.
v3.22.2.2
Organization of Medallion Financial Corp. and its Subsidiaries
 9 Months Ended
Sep. 30, 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 specialty 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. In 2019, the Bank began building a strategic partnership program that targets relationships with financial technology, or fintech, companies to offer loans and other financial services to customers. The Bank entered into an initial partnership in 2020 and continues to evaluate and launch additional partnerships.

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 historically was our primary taxi medallion lending company; and Freshstart Venture Capital Corp., or FSVC, an SBIC that originated and services medallion and commercial loans. MCI, MFC, and FSVC, as SBICs, are regulated by the Small Business Administration, or SBA. MCI and FSVC are financed in part by the SBA.

The Company 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 $34.0 million at September 30, 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. These 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 September 30, 2022 and December 31, 2021.
v3.22.2.2
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 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 U.S., 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, third-party holdings are 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 September 30, 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 $10.7 million and $9.7 million at September 30, 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 September 30, 2022, cumulative impairment of $2.0 million had been recorded with respect to these investments.

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 September 30, 2022 and December 31, 2021, the fair value of these securities were $1.7 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 September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(77

)

 

$

—

 

 

$

(229

)

 

$

(31

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(77

)

 

$

—

 

 

$

(229

)

 

$

(31

)

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at September 30, 2022 and $0.3 million at December 31, 2021, and less than $0.1 million and $0.1 million was amortized to interest income for the three and nine months ended September 30, 2022 and less than $0.1 million and $0.1 million for the three and nine months ended September 30, 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 September 30, 2022 and December 31, 2021, net loan origination costs were $34.3 million and $26.1 million. Net amortization to income for the three and nine months ended September 30, 2022 was $2.3 million and $6.8 million and was $2.0 million and $5.8 million for the three and nine months ended September 30, 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 (Recreation loans in bankruptcy are not charged off at 120 days), 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 typically 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 $6.0 million at September 30, 2022, or 0.33% 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. Recreation 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, 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 "loan collateral in the process of foreclosure" designation reflects that the collection activities on these 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 $19.6 million and $20.5 million at September 30, 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 September 30, 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, which was $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 these 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 September 30, 2022 and December 31, 2021, the Company had goodwill of $150.8 million, all of which related to the Bank. As of September 30, 2022 and December 31, 2021, the Company had intangible assets of $22.4 million and $23.5 million. Amortization expense on the intangible assets for the three and nine months ended September 30, 2022 and 2021 was $0.4 million and $1.1 million. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0.1 million and $0.5 million were outstanding as of September 30, 2022 and December 31, 2021, and of which $0.2 million and $0.5 million was amortized to interest income for the three and nine months ended September 30, 2022 and $0.2 million and $2.0 million was amortized to interest income for the three and nine months ended September 30, 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 September 30, 2022.

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

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Brand-related intellectual property

 

$

17,050

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,348

 

 

 

5,606

 

Total intangible assets

 

$

22,398

 

 

$

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 and $0.3 million for the three and nine months ended September 30, 2022 and was $0.1 million and $0.2 million for the three and nine months ended September 30, 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 $0.7 million and $2.0 million for the three and nine months ended September 30, 2022 and was $0.6 million and $1.8 million for the three and nine months ended September 30, 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 September 30, 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 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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income available to common stockholders

 

$

7,636

 

 

$

15,940

 

 

$

30,777

 

 

$

34,638

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

23,154,775

 

 

 

24,634,845

 

 

 

24,020,058

 

 

 

24,583,573

 

Effect of dilutive stock options

 

 

48,552

 

 

 

98,906

 

 

 

74,097

 

 

 

82,522

 

Effect of restricted stock grants

 

 

307,318

 

 

 

256,475

 

 

 

238,621

 

 

 

279,612

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

23,510,645

 

 

 

24,990,226

 

 

 

24,332,776

 

 

 

24,945,707

 

Basic net income per share

 

$

0.33

 

 

$

0.65

 

 

$

1.28

 

 

$

1.41

 

Diluted net income per share

 

 

0.32

 

 

 

0.64

 

 

 

1.26

 

 

 

1.39

 

Potentially dilutive common shares excluded from the above calculations aggregated 657,579 and 26,000 shares as of September 30, 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 nine months ended September 30, 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 129,638 and 16,803 restricted stock units. The Company recognized $1.0 million and $2.5 million, or $0.04 and $0.10 per share, for the three and nine months ended September 30, 2022, and $0.6 million and $1.7 million, or $0.02 and $0.07 per share, for the three and nine months ended September 30, 2021, of non-cash stock-based compensation expense related to the grants. As of September 30, 2022, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $4.1 million, which is expected to be recognized over the next 10 quarters.

Regulatory Capital

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

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

 

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of September 30, 2022, the Bank’s Tier 1 leverage ratio was 16.2%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

September 30, 2022

 

 

December 31, 2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

228,838

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

297,626

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

320,957

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,834,814

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,829,047

 

 

 

1,482,678

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.2

%

 

 

17.5

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

12.5

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.3

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.6

 

 

 

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 September 30, 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 September 30, 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 the accompanying financial statements, but currently anticipates an initial 10-15% overall increase in the allowance as well as earlier recognition of credit losses and potentially greater volatility in the allowance and provision.

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. ASU 2022-02 is effective upon the adoption of ASU 2016-13. The Company is in the process of evaluating the ASU in conjunction with its adoption of CECL on January 1, 2023.

 

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement, or Topic 820: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2016-13. This new standard is effective for the fiscal years beginning after December 31, 2023 and clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company has assessed the impact the update and determined it does not have a material impact on the accompanying financial statements.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.
v3.22.2.2
Investment Securities
 9 Months Ended
Sep. 30, 2022
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

Fixed maturity securities available for sale at September 30, 2022 and December 31, 2021 consisted of the following:

September 30, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. federal agencies

 

$

45,444

 

 

$

—

 

 

$

(5,356

)

 

$

40,088

 

State and municipalities

 

 

9,015

 

 

 

—

 

 

 

(749

)

 

 

8,266

 

Total

 

$

54,459

 

 

$

—

 

 

$

(6,105

)

 

$

48,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. 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 September 30, 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.

September 30, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

1,613

 

 

$

1,600

 

Due after one year through five years

 

 

7,692

 

 

 

7,389

 

Due after five years through ten years

 

 

9,426

 

 

 

8,172

 

Due after ten years

 

 

35,728

 

 

 

31,193

 

Total

 

$

54,459

 

 

$

48,354

 

The following tables show information pertaining to securities with gross unrealized losses at September 30, 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

 

September 30, 2022
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. federal agencies

 

$

(2,284

)

 

$

25,669

 

 

$

(3,072

)

 

$

12,423

 

State and municipalities

 

 

(249

)

 

 

5,536

 

 

 

(500

)

 

 

2,721

 

Total

 

$

(2,533

)

 

$

31,205

 

 

$

(3,572

)

 

$

15,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 U.S. federal agencies

 

$

(403

)

 

$

16,330

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(9

)

 

 

2,124

 

 

 

(42

)

 

 

(1,956

)

Total

 

$

(412

)

 

$

18,454

 

 

$

(42

)

 

$

(1,956

)

The Company had 58 and 15 securities as of September 30, 2022 and December 31, 2021, with unrealized losses that have not been recognized in 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.

v3.22.2.2
Loans and Allowance for Loan Losses
 9 Months Ended
Sep. 30, 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, as of September 30, 2022 and December 31, 2021.

 

 

September 30, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,171,819

 

 

 

63

%

 

$

961,320

 

 

 

65

%

Home improvement

 

 

575,210

 

 

 

31

 

 

 

436,772

 

 

 

29

 

Commercial

 

 

93,735

 

 

 

5

 

 

 

76,696

 

 

 

5

 

Medallion

 

 

13,973

 

 

 

1

 

 

 

14,046

 

 

 

1

 

Strategic partnership

 

 

773

 

 

*

 

 

 

90

 

 

*

 

Total gross loans

 

 

1,855,510

 

 

 

100

%

 

 

1,488,924

 

 

 

100

%

Allowance for loan losses

 

 

(61,535

)

 

 

 

 

 

(50,166

)

 

 

 

Total net loans

 

$

1,793,975

 

 

 

 

 

$

1,438,758

 

 

 

 

(*) Less than 1%

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2022 and 2021.

Three Months Ended September 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Loan originations

 

 

149,151

 

 

 

100,451

 

 

 

4,500

 

 

 

152

 

 

 

19,428

 

 

 

273,682

 

Principal payments, sales, maturities, and recoveries

 

 

(66,338

)

 

 

(49,630

)

 

 

(4,017

)

 

 

(331

)

 

 

(19,248

)

 

 

(139,564

)

Charge-offs

 

 

(7,534

)

 

 

(1,780

)

 

 

(3,857

)

 

 

—

 

 

 

—

 

 

 

(13,171

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,862

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,862

)

Amortization of origination costs

 

 

(3,008

)

 

 

494

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,514

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

5,800

 

 

 

(513

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,287

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

181

 

 

 

—

 

 

 

—

 

 

 

181

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022
(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

 

 

433,764

 

 

 

295,443

 

 

 

28,172

 

 

 

396

 

 

 

34,267

 

 

 

792,042

 

Principal payments, sales, maturities, and recoveries

 

 

(204,568

)

 

 

(152,800

)

 

 

(6,220

)

 

 

(126

)

 

 

(33,584

)

 

 

(397,298

)

Charge-offs

 

 

(17,675

)

 

 

(3,948

)

 

 

(5,441

)

 

 

(75

)

 

 

—

 

 

 

(27,139

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,391

)

 

 

—

 

 

 

—

 

 

 

(268

)

 

 

—

 

 

 

(8,659

)

Amortization of origination costs

 

 

(8,378

)

 

 

1,194

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,184

)

Amortization of loan premium

 

 

(180

)

 

 

(270

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(450

)

FASB origination costs, net

 

 

15,927

 

 

 

(1,181

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,746

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

528

 

 

 

—

 

 

 

—

 

 

 

528

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2021

 

$

886,206

 

 

$

368,257

 

 

$

69,520

 

 

$

16,514

 

 

$

70

 

 

$

1,340,567

 

Loan originations

 

 

118,407

 

 

 

68,692

 

 

 

5,700

 

 

 

—

 

 

 

2,969

 

 

 

195,768

 

Principal payments, sales, maturities, and recoveries

 

 

(70,350

)

 

 

(38,571

)

 

 

(3,332

)

 

 

(1,449

)

 

 

(2,944

)

 

 

(116,646

)

Charge-offs

 

 

335

 

 

 

239

 

 

 

—

 

 

 

265

 

 

 

—

 

 

 

839

 

Transfer to loan collateral in process of foreclosure, net

 

 

(2,085

)

 

 

—

 

 

 

—

 

 

 

(397

)

 

 

—

 

 

 

(2,482

)

Amortization of origination costs

 

 

(2,532

)

 

 

386

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,146

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

3,869

 

 

 

(139

)

 

 

12

 

 

 

1

 

 

 

—

 

 

 

3,743

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

188

 

 

 

—

 

 

 

—

 

 

 

188

 

Gross loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

346,724

 

 

 

179,743

 

 

 

20,916

 

 

 

—

 

 

 

7,339

 

 

 

554,722

 

Principal payments, sales, maturities, and recoveries

 

 

(199,449

)

 

 

(115,369

)

 

 

(14,861

)

 

 

(5,663

)

 

 

(7,268

)

 

 

(342,610

)

Charge-offs

 

 

(1,334

)

 

 

(237

)

 

 

—

 

 

 

(10,529

)

 

 

—

 

 

 

(12,100

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,118

)

 

 

—

 

 

 

—

 

 

 

(5,027

)

 

 

—

 

 

 

(13,145

)

Amortization of origination costs

 

 

(7,171

)

 

 

1,293

 

 

 

12

 

 

 

(2

)

 

 

—

 

 

 

(5,868

)

Amortization of loan premium

 

 

(161

)

 

 

(256

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,032

)

FASB origination costs, net

 

 

10,613

 

 

 

(433

)

 

 

12

 

 

 

2

 

 

 

—

 

 

 

10,194

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

682

 

 

 

—

 

 

 

—

 

 

 

682

 

Gross loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2022 and 2021.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Allowance for loan losses – beginning balance

 

$

59,152

 

 

$

46,946

 

 

$

50,166

 

 

$

57,548

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(7,534

)

 

 

(2,313

)

 

 

(17,675

)

 

 

(10,038

)

Home improvement

 

 

(1,780

)

 

 

(523

)

 

 

(3,948

)

 

 

(1,990

)

Commercial

 

 

(3,857

)

 

 

—

 

 

 

(5,441

)

 

 

—

 

Medallion

 

 

—

 

 

 

(1,142

)

 

 

(75

)

 

 

(15,047

)

Total charge-offs

 

 

(13,171

)

 

 

(3,978

)

 

 

(27,139

)

 

 

(27,075

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

3,348

 

 

 

2,648

 

 

 

10,473

 

 

 

8,704

 

Home improvement

 

 

713

 

 

 

763

 

 

 

1,857

 

 

 

1,753

 

Commercial

 

 

—

 

 

 

—

 

 

 

47

 

 

 

—

 

Medallion

 

 

1,446

 

 

 

1,406

 

 

 

5,085

 

 

 

4,518

 

Total recoveries

 

 

5,507

 

 

 

4,817

 

 

 

17,462

 

 

 

14,975

 

Net recoveries (charge-offs) (1)

 

 

(7,664

)

 

 

839

 

 

 

(9,677

)

 

 

(12,100

)

Provision (benefit) for loan losses

 

 

10,047

 

 

 

(337

)

 

 

21,046

 

 

 

2,000

 

Allowance for loan losses – ending balance (2)

 

$

61,535

 

 

$

47,448

 

 

$

61,535

 

 

$

47,448

 
(1)
As of September 30, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $252.5 million, some of which may represent collection opportunities for the Company.
(2)
As of September 30, 2022 and September 30, 2021, there were no allowance for loan losses and net charge-offs related to the strategic partnership loans.

The following tables set forth the allowance for loan losses by type as of September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

40,768

 

 

 

66

%

 

 

3.48

%

 

 

132.45

%

Home improvement

 

 

10,208

 

 

 

17

 

 

 

1.77

 

 

 

33.17

 

Commercial

 

 

963

 

 

 

1

 

 

 

1.03

 

 

 

3.13

 

Medallion

 

 

9,596

 

 

 

16

 

 

 

68.68

 

 

 

31.18

 

Total

 

$

61,535

 

 

 

100

%

 

 

3.32

%

 

 

199.93

%

 

December 31, 2021
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

32,435

 

 

 

64

%

 

 

3.37

%

 

 

91.18

%

Home improvement

 

 

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. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Total nonaccrual loans

 

$

30,780

 

 

$

35,571

 

Interest foregone quarter to date

 

 

504

 

 

 

466

 

Amount of foregone interest applied to principal in the quarter

 

 

101

 

 

 

114

 

Interest foregone year to date

 

 

1,670

 

 

 

1,620

 

Amount of foregone interest applied to principal for the year

 

 

301

 

 

 

432

 

Interest foregone life-to-date

 

 

3,251

 

 

 

3,623

 

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

 

 

1,178

 

 

 

942

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

1.7

%

 

 

2.4

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

199.9

%

 

 

141.0

%

The following tables present the performance status of loans as of September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,164,526

 

 

$

7,293

 

 

$

1,171,819

 

 

 

0.62

%

Home improvement

 

 

574,722

 

 

 

488

 

 

 

575,210

 

 

 

0.08

 

Commercial

 

 

84,340

 

 

 

9,395

 

 

 

93,735

 

 

 

10.02

 

Medallion

 

 

—

 

 

 

13,973

 

 

 

13,973

 

 

 

100.00

 

Strategic partnership

 

 

773

 

 

 

—

 

 

 

773

 

 

 

—

 

Total

 

$

1,824,361

 

 

$

31,149

 

 

$

1,855,510

 

 

 

1.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2022 and December 31, 2021, all of which had an allowance recorded against the principal balance.

 

 

September 30, 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

 

$

7,293

 

 

$

7,293

 

 

$

251

 

 

$

5,557

 

 

$

5,557

 

 

$

188

 

Home improvement

 

 

488

 

 

 

488

 

 

 

9

 

 

 

132

 

 

 

132

 

 

 

2

 

Commercial

 

 

9,395

 

 

 

9,469

 

 

 

963

 

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

Medallion

 

 

13,973

 

 

 

15,077

 

 

 

9,596

 

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

Total nonperforming loans with an allowance

 

$

31,149

 

 

$

32,327

 

 

$

10,819

 

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

 

 

Three Months Ended September 30,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,903

 

 

$

114

 

 

$

4,423

 

 

$

148

 

Home improvement

 

 

491

 

 

 

—

 

 

 

161

 

 

 

—

 

Commercial

 

 

13,577

 

 

 

—

 

 

 

16,531

 

 

 

—

 

Medallion

 

 

16,128

 

 

 

—

 

 

 

16,941

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

37,099

 

 

$

114

 

 

$

38,056

 

 

$

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,895

 

 

$

303

 

 

$

4,641

 

 

$

425

 

Home improvement

 

 

459

 

 

 

—

 

 

 

151

 

 

 

—

 

Commercial

 

 

13,494

 

 

 

—

 

 

 

16,926

 

 

 

—

 

Medallion

 

 

16,326

 

 

 

—

 

 

 

17,101

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

37,174

 

 

$

303

 

 

$

38,819

 

 

$

425

 

The following tables show the aging of all loans as of September 30, 2022 and December 31, 2021.

September 30, 2022

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

23,901

 

 

$

9,306

 

 

$

5,090

 

 

$

38,297

 

 

$

1,096,692

 

 

$

1,134,989

 

 

$

—

 

Home improvement

 

 

2,149

 

 

 

882

 

 

 

491

 

 

 

3,522

 

 

 

574,104

 

 

 

577,626

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

93,660

 

 

 

93,734

 

 

 

—

 

Medallion

 

 

654

 

 

 

—

 

 

 

313

 

 

 

967

 

 

 

13,006

 

 

 

13,973

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

773

 

 

 

773

 

 

 

—

 

Total

 

$

26,704

 

 

$

10,188

 

 

$

5,968

 

 

$

42,860

 

 

$

1,778,235

 

 

$

1,821,095

 

 

$

—

 
(1)
Excludes loan premiums of $0.1 million and $34.3 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 330% and 295% as of September 30, 2022 and December 31, 2021.

The following table shows the TDRs which the Company entered into during the three and nine months ended September 30, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

34

 

 

$

549

 

 

$

549

 

Medallion loans

 

 

—

 

 

 

—

 

 

 

—

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

56

 

 

$

825

 

 

$

825

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

As of September 30, 2022, no medallion or commercial loans modified as TDRs in the previous 12 months were in default. As of September 30, 2022, 37 recreation loans modified as TDRs were in default and had an investment value of $0.5 million.

 

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2021

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

8

 

 

$

94

 

 

$

55

 

Medallion loans

 

 

1

 

 

 

77

 

 

 

77

 

Nine months ended September 30, 2021

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

47

 

 

$

568

 

 

$

525

 

Medallion loans

 

 

11

 

 

 

3,071

 

 

 

3,071

 

As of September 30, 2021, 37 medallion loans modified as TDRs in the previous 12 months were in default and had an investment value of $0.5 million. As of September 30, 2021, 37 recreation loans modified as TDRs in the previous 12 months were in default and had an investment value of $0.4 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 and nine months ended September 30, 2022 and 2021.

Three Months Ended September 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

Transfer from loans, net

 

 

2,862

 

 

 

—

 

 

 

2,862

 

Sales

 

 

(1,399

)

 

 

(544

)

 

 

(1,943

)

Cash payments received

 

 

—

 

 

 

(2,243

)

 

 

(2,243

)

Collateral valuation adjustments

 

 

(1,225

)

 

 

(94

)

 

 

(1,319

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 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

 

 

8,391

 

 

 

268

 

 

 

8,659

 

Sales

 

 

(5,797

)

 

 

(2,659

)

 

 

(8,456

)

Cash payments received

 

 

—

 

 

 

(9,496

)

 

 

(9,496

)

Collateral valuation adjustments

 

 

(3,198

)

 

 

(608

)

 

 

(3,806

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2021

 

$

882

 

 

$

48,157

 

 

$

49,039

 

Transfer from loans, net

 

 

2,085

 

 

 

397

 

 

 

2,482

 

Sales

 

 

(1,554

)

 

 

(1,640

)

 

 

(3,194

)

Cash payments received

 

 

—

 

 

 

(4,525

)

 

 

(4,525

)

Collateral valuation adjustments

 

 

(640

)

 

 

(618

)

 

 

(1,258

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 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

 

 

8,118

 

 

 

5,027

 

 

 

13,145

 

Sales

 

 

(5,842

)

 

 

(1,871

)

 

 

(7,713

)

Cash payments received

 

 

—

 

 

 

(8,948

)

 

 

(8,948

)

Collateral valuation adjustments

 

 

(2,935

)

 

 

(5,565

)

 

 

(8,500

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 

As of September 30, 2022, medallion loans in the process of foreclosure included 459 medallions in the New York City market, 335 medallions in the Chicago market, 57 medallions in the Newark market, and 40 medallions in other markets.
v3.22.2.2
Funds Borrowed
 9 Months Ended
Sep. 30, 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 September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

September 30, 2022(1)

 

 

December 31, 2021(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

479,761

 

 

$

375,974

 

 

$

389,223

 

 

$

157,890

 

 

$

155,854

 

 

$

—

 

 

$

1,558,702

 

 

$

1,253,288

 

 

 

1.63

%

Privately placed notes

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

5,000

 

 

 

12,763

 

 

 

14,000

 

 

 

14,000

 

 

 

2,000

 

 

 

21,000

 

 

 

68,763

 

 

 

69,963

 

 

 

2.94

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

5.27

 

Total

 

$

484,761

 

 

$

424,737

 

 

$

403,223

 

 

$

203,140

 

 

$

157,854

 

 

$

107,750

 

 

$

1,781,465

 

 

$

1,477,251

 

 

 

2.16

%
(1)
Excludes deferred financing costs of $7.2 million and $7.1 million as of September 30, 2022 and December 31, 2021.
(2)
Weighted average contractual rate as of September 30, 2022.
(3)
Balance excludes $1.0 million and $0.8 million of strategic partner reserve deposits as of September 30, 2022 and December 31, 2021.

(A) DEPOSITS

Substantially all 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 uninsured deposits as of September 30, 2022 and December 31, 2021. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions and, as of September 30, 2022 and December 31, 2021, the Bank had $9.2 million and $8.7 million in listing service deposit balances. The following table presents the maturity of the deposit pools, which excludes strategic partner reserve deposits, as of September 30, 2022.

(Dollars in thousands)

 

September 30, 2022

 

Three months or less

 

$

110,763

 

Over three months through six months

 

 

128,094

 

Over six months through one year

 

 

240,904

 

Over one year

 

 

1,078,941

 

Total deposits

 

$

1,558,702

 

(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.

(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 September 30, 2022, there were $9.5 million commitments available, and $68.8 million was outstanding, including $7.8 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 September 30, 2022, $15.5 million of the commitment had been drawn, including $8.5 million to replace debentures which matured in 2021.

(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 (3.75% at September 30, 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 September 30, 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 September 30, 2022, the Company did not have any borrowing agreements that contained any such restrictions.
v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases

(6) LEASES

The Company has leased premises that expire at various dates through November 30, 2030 subject to various operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances.

The following table presents the operating lease costs and additional information for the three and nine months ended September 30, 2022 and 2021.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating lease costs

 

$

580

 

 

$

571

 

 

$

1,759

 

 

$

1,715

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

684

 

 

 

481

 

 

 

1,764

 

 

 

1,780

 

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

 

 

(47

)

 

 

(41

)

 

 

(133

)

 

 

(76

)

The following table presents the breakout of the operating leases as of September 30, 2022 and December 31, 2021.

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Operating lease right-of-use assets

 

$

9,699

 

 

$

10,045

 

Other current liabilities

 

 

2,095

 

 

 

2,159

 

Operating lease liabilities

 

 

8,580

 

 

 

9,053

 

Total operating lease liabilities

 

 

10,675

 

 

 

11,212

 

Weighted average remaining lease term

 

5.9 years

 

 

5.4 years

 

Weighted average discount rate

 

 

5.54

%

 

 

5.54

%

At September 30, 2022, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2022

 

$

638

 

2023

 

 

2,518

 

2024

 

 

2,526

 

2025

 

 

2,505

 

2026

 

 

2,440

 

Thereafter

 

 

2,502

 

Total lease payments

 

 

13,129

 

Less imputed interest

 

 

2,454

 

Total operating lease liabilities

 

$

10,675

 
v3.22.2.2
Income Taxes
 9 Months Ended
Sep. 30, 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 September 30, 2022 and December 31, 2021.

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Goodwill and other intangibles

 

$

(43,509

)

 

$

(43,894

)

Provision for loan losses

 

 

10,360

 

 

 

11,057

 

Net operating loss carryforwards (1)

 

 

3,570

 

 

 

12,167

 

Accrued expenses, compensation, and other assets

 

 

4,042

 

 

 

2,579

 

Unrealized gains on other investments

 

 

1,700

 

 

 

2,176

 

Total deferred tax liability

 

 

(23,837

)

 

 

(15,915

)

Valuation allowance

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(26,132

)

 

$

(18,210

)
(1)
As of September 30, 2022, the Company and its subsidiaries had an estimated $10.9 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 $1.3 million as of September 30, 2022.

The components of our tax provision for the three and nine months ended September 30, 2022 and 2021 was as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

693

 

 

$

1,359

 

 

$

2,181

 

 

$

2,154

 

State

 

 

340

 

 

 

721

 

 

 

1,109

 

 

 

991

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

2,081

 

 

 

3,198

 

 

 

7,679

 

 

 

9,252

 

State

 

 

91

 

 

 

889

 

 

 

1,923

 

 

 

4,176

 

Net provision for income taxes

 

$

3,205

 

 

$

6,167

 

 

$

12,892

 

 

$

16,573

 

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision for the three and nine months ended September 30, 2022 and 2021.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Statutory Federal income tax provision at 21%

 

$

2,613

 

 

$

4,807

 

 

$

10,142

 

 

$

11,331

 

State and local income taxes, net of federal income tax

 

 

511

 

 

 

942

 

 

 

1,984

 

 

 

2,217

 

Change in state income tax accruals

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,833

 

Change in effective state income tax rates and accrual

 

 

—

 

 

 

110

 

 

 

—

 

 

 

1,479

 

Income attributable to non-controlling interest

 

 

—

 

 

 

(183

)

 

 

—

 

 

 

(449

)

Non-deductible expenses

 

 

410

 

 

 

132

 

 

 

1,484

 

 

 

(81

)

Other

 

 

(329

)

 

 

359

 

 

 

(718

)

 

 

243

 

Total income tax provision

 

$

3,205

 

 

$

6,167

 

 

$

12,892

 

 

$

16,573

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of September 30, 2022.

The Company has filed tax returns in many states and jurisdictions. Federal, New York State, New York City, and Utah tax filings of the Company for the tax years 2019 through the present are the more significant filings that are open for examination.
v3.22.2.2
Stock Options and Restricted Stock
 9 Months Ended
Sep. 30, 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, and subsequently on April 26, 2022, the Company’s Board of Directors approved an additional 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 14, 2022. A total of 5,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 3,396,965 remained issuable as of September 30, 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 September 30, 2022, 1,081,123 options on the Company’s common stock were outstanding under the Company’s plans, of which 552,056 options were exercisable. Additionally, there were 744,306 unvested shares under the Company’s restricted common stock plan, 130,939 unvested restricted stock units, and 60,992 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 nine months ended September 30, 2021. The following assumption categories are used to determine the value of any option grants. There were no grants issued during the nine months ended September 30, 2022.

 

 

Nine Months Ended September 30,

 

 

 

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, second, and third quarters 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(2,103

)

 

 

4.89 - 7.25

 

 

 

6.37

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2022 (2)

 

 

1,081,609

 

 

$

2.14 - 12.55

 

 

$

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(486

)

 

 

4.89 - 7.25

 

 

 

6.07

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2022 (2)

 

 

1,081,123

 

 

$

2.14 - 12.55

 

 

$

6.53

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

320,922

 

 

$

2.14 - 12.55

 

 

$

6.53

 

September 30, 2022

 

 

552,056

 

 

$

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 $0 and less than $0.1 million for the three and nine months ended September 30, 2022 and was $0.2 million for the year ended December 31, 2021.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2022 and the related exercise price of the underlying options, was $0.6 million for outstanding options and $0.3 million for exercisable options as of September 30, 2022. The remaining contractual life was 7.3 years for outstanding options and 6.8 years for exercisable options at September 30, 2022.

The following table presents the activity for the restricted stock programs for the 2022 first, second, and third quarters 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(583

)

 

 

4.89 - 8.40

 

 

 

7.58

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2022(2)

 

 

744,687

 

 

$

4.89 - 8.40

 

 

$

7.34

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(381

)

 

 

4.89 - 8.40

 

 

 

7.76

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2022 (2)

 

 

744,306

 

 

$

4.89 - 8.40

 

 

$

7.34

 
(1)
The aggregate fair value of the restricted stock vested was $0 and $1.0 million for the three and nine months ended September 30, 2022 and was $1.1 million for the year ended December 31, 2021.
(2)
The aggregate fair value of the restricted stock was $5.2 million as of September 30, 2022. The remaining vesting period was 2.4 years at September 30, 2022.

 

During the three and nine months ended September 30, 2022, the Company granted 129,638 restricted stock units (RSUs) with a grant price of $6.75 and during the year ended December 31, 2021, granted 16,803 RSUs which vested on June 17, 2022 with a grant price of $8.87. For the RSUs granted in 2022 and 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 September 30, 2022, there were 191,931 RSUs outstanding, 60,992 of which had previously vested.

The following table presents the activity for the unvested options outstanding under the plans for the 2022 first, second, and third quarters.

 

 

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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(365

)

 

 

4.89 - 7.25

 

 

 

5.78

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2022

 

 

529,228

 

 

$

4.89 - 7.25

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(161

)

 

 

4.89 - 7.25

 

 

 

5.39

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2022

 

 

529,067

 

 

$

4.89 - 7.25

 

 

$

6.25

 

The intrinsic value of the options vested was $0.0 and $0.3 million for the three and nine months ended September 30, 2022.

v3.22.2.2
Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

The Company currently has five business segments, which include four lending and a non-operating segment, 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 and Florida at 15% and 9% of loans outstanding and with no other states over 9% as of September 30, 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 58%, 20%, and 13% of the segment portfolio as of September 30, 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 37%, 23%, and 12% of total home improvement loans outstanding, and with no other product lines over 10% as of September 30, 2022. The highest concentrations of home improvement loans are in Texas and Florida at 10% and 9% of loans outstanding and with no other states over 9% as of September 30, 2022. The commercial lending segment focuses on enterprise-wide industries, including manufacturing services, and various other industries, and 51% 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 September 30, 2022.

 

Our corporate and other investments segment is a non-operating segment that includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. Additionally, through December 1, 2021, the date of disposition, the Company had another non-operating segment, RPAC, a race car team.

As part of segment reporting, capital ratios for all operating segments have been normalized as a percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment primarily represents the mezzanine lending business, with certain legacy commercial loans (immaterial to total) allocated to corporate and other investments.

The following tables present segment data as of and for the three and nine months ended September 30, 2022 and 2021.

Three Months Ended September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

36,539

 

 

$

11,689

 

 

$

2,493

 

 

 

$

92

 

 

$

881

 

 

$

51,694

 

Total interest expense

 

 

5,003

 

 

 

2,093

 

 

 

780

 

 

 

 

133

 

 

 

1,645

 

 

 

9,654

 

Net interest income (loss)

 

 

31,536

 

 

 

9,596

 

 

 

1,713

 

 

 

 

(41

)

 

 

(764

)

 

 

42,040

 

Provision (recoveries) for loan losses

 

 

7,182

 

 

 

2,041

 

 

 

2,100

 

 

 

 

(1,275

)

 

 

(1

)

 

 

10,047

 

Net interest income (loss) after loss provision

 

 

24,354

 

 

 

7,555

 

 

 

(387

)

 

 

 

1,234

 

 

 

(763

)

 

 

31,993

 

Other income (expense), net

 

 

(7,178

)

 

 

(3,163

)

 

 

(2,214

)

 

 

 

(2,686

)

 

 

(4,399

)

 

 

(19,640

)

Net income (loss) before taxes

 

 

17,176

 

 

 

4,392

 

 

 

(2,601

)

 

 

 

(1,452

)

 

 

(5,162

)

 

 

12,353

 

Income tax (provision) benefit

 

 

(4,499

)

 

 

(1,152

)

 

 

700

 

 

 

 

394

 

 

 

1,352

 

 

 

(3,205

)

Net income (loss) after taxes

 

 

12,677

 

 

 

3,240

 

 

 

(1,901

)

 

 

 

(1,058

)

 

 

(3,810

)

 

 

9,148

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

1,512

 

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

 

$

12,677

 

 

$

3,240

 

 

$

(1,901

)

 

 

$

(1,058

)

 

$

(3,810

)

 

$

7,636

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

1,131,051

 

 

$

565,002

 

 

$

92,772

 

 

 

$

4,377

 

 

$

773

 

 

$

1,793,975

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

 

27,860

 

 

 

354,331

 

 

 

2,199,541

 

Total funds borrowed

 

 

928,194

 

 

 

461,595

 

 

 

82,956

 

 

 

 

22,577

 

 

 

287,143

 

 

 

1,782,465

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.54

%

 

 

2.36

%

 

 

(7.32

)%

 

 

 

(13.00

)%

 

 

(4.10

)%

 

 

1.68

%

Return on average equity

 

 

27.07

 

 

 

14.06

 

 

 

(43.65

)

 

 

 

(74.61

)

 

 

(24.41

)

 

 

10.03

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

10.35

 

Interest yield

 

 

13.19

 

 

 

8.57

 

 

 

10.82

 

 

 

 

8.12

 

 

N/A

 

 

 

10.97

 

Net interest margin

 

 

11.38

 

 

 

7.03

 

 

 

7.43

 

 

 

 

(3.62

)

 

N/A

 

 

 

8.91

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

(1)

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status(2)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

(1)

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio(4)

 

 

1.51

 

 

 

0.78

 

 

 

16.74

 

(3)

 

 

(127.68

)

 

N/A

 

 

 

1.75

 
(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 net recoveries for the period.

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

101,189

 

 

$

31,977

 

 

$

6,701

 

 

 

$

469

 

 

$

1,772

 

 

$

142,108

 

Total interest expense

 

 

12,700

 

 

 

5,060

 

 

 

2,287

 

 

 

 

426

 

 

 

4,785

 

 

 

25,258

 

Net interest income (loss)

 

 

88,489

 

 

 

26,917

 

 

 

4,414

 

 

 

 

43

 

 

 

(3,013

)

 

 

116,850

 

Provision (recoveries) for loan losses

 

 

15,536

 

 

 

4,943

 

 

 

5,234

 

 

 

 

(4,819

)

 

 

152

 

 

 

21,046

 

Net interest income (loss) after loss provision

 

 

72,953

 

 

 

21,974

 

 

 

(820

)

 

 

 

4,862

 

 

 

(3,165

)

 

 

95,804

 

Other income (expense), net

 

 

(21,549

)

 

 

(9,269

)

 

 

(282

)

 

 

 

(4,252

)

 

 

(12,248

)

 

 

(47,600

)

Net income (loss) before taxes

 

 

51,404

 

 

 

12,705

 

 

 

(1,102

)

 

 

 

610

 

 

 

(15,413

)

 

 

48,204

 

Income tax (provision) benefit

 

 

(13,747

)

 

 

(3,398

)

 

 

295

 

 

 

 

(163

)

 

 

4,121

 

 

 

(12,892

)

Net income (loss) after taxes

 

 

37,657

 

 

 

9,307

 

 

 

(807

)

 

 

 

447

 

 

 

(11,292

)

 

 

35,312

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

4,535

 

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

 

$

37,657

 

 

$

9,307

 

 

$

(807

)

 

 

$

447

 

 

$

(11,292

)

 

$

30,777

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

1,131,051

 

 

$

565,002

 

 

$

92,772

 

 

 

$

4,377

 

 

$

773

 

 

$

1,793,975

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

 

27,860

 

 

 

354,331

 

 

 

2,199,541

 

Total funds borrowed

 

 

928,194

 

 

 

461,595

 

 

 

82,956

 

 

 

 

22,577

 

 

 

287,143

 

 

 

1,782,465

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.86

%

 

 

2.48

%

 

 

(1.05

)%

 

 

 

1.30

%

 

 

(4.24

)%

 

 

2.33

%

Return on average equity

 

 

27.16

 

 

 

13.91

 

 

 

(6.08

)

 

 

 

6.99

 

 

 

(25.15

)

 

 

13.05

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

14.06

 

Interest yield

 

 

13.26

 

 

 

8.67

 

 

 

10.55

 

 

 

 

13.61

 

 

N/A

 

 

 

11.03

 

Net interest margin

 

 

11.60

 

 

 

7.30

 

 

 

6.95

 

 

 

 

1.25

 

 

N/A

 

 

 

9.09

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

(1)

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status(2)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

(1)

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio(4)

 

 

0.94

 

 

 

0.57

 

 

 

8.49

 

(3)

 

 

(145.36

)

 

N/A

 

 

 

0.81

 
(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 net recoveries for the period.

(*) Line item is not applicable to segments.

 

 

Three Months Ended September 30, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

30,529

 

 

$

8,586

 

 

$

2,055

 

 

 

$

1

 

 

$

—

 

 

$

326

 

 

$

41,497

 

Total interest expense

 

 

2,305

 

 

 

958

 

 

 

662

 

 

 

 

2,009

 

 

 

38

 

 

 

1,454

 

 

 

7,426

 

Net interest income (loss)

 

 

28,224

 

 

 

7,628

 

 

 

1,393

 

 

 

 

(2,008

)

 

 

(38

)

 

 

(1,128

)

 

 

34,071

 

Provision (recoveries) for loan losses

 

 

916

 

 

 

369

 

 

 

—

 

 

 

 

(1,944

)

 

 

—

 

 

 

322

 

 

 

(337

)

Net interest income (loss) after loss provision

 

 

27,308

 

 

 

7,259

 

 

 

1,393

 

 

 

 

(64

)

 

 

(38

)

 

 

(1,450

)

 

 

34,408

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

3,335

 

 

 

—

 

 

 

3,335

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(2,424

)

 

 

—

 

 

 

(2,424

)

Other income (expense), net

 

 

(8,856

)

 

 

(3,437

)

 

 

636

 

 

 

 

2,073

 

 

 

(2,066

)

 

 

(778

)

 

 

(12,428

)

Net income (loss) before taxes

 

 

18,452

 

 

 

3,822

 

 

 

2,029

 

 

 

 

2,009

 

 

 

(1,193

)

 

 

(2,228

)

 

 

22,891

 

Income tax (provision) benefit

 

 

(4,752

)

 

 

(951

)

 

 

(510

)

 

 

 

(504

)

 

 

299

 

 

 

251

 

 

 

(6,167

)

Net income (loss) after taxes

 

 

13,700

 

 

 

2,871

 

 

 

1,519

 

 

 

 

1,505

 

 

 

(894

)

 

 

(1,977

)

 

 

16,724

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

784

 

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

 

$

13,700

 

 

$

2,871

 

 

$

1,519

 

 

 

$

1,505

 

 

$

(894

)

 

$

(1,977

)

 

$

15,940

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.09

%

 

 

2.89

%

 

 

6.60

%

 

 

 

6.12

%

 

 

(11.28

)%

 

 

(2.65

)%

 

 

3.73

%

Return on average equity

 

 

30.46

 

 

 

14.43

 

 

 

32.99

 

 

 

 

30.62

 

 

 

(11.08

)

 

 

(19.79

)

 

 

20.02

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

24.38

 

Interest yield

 

 

13.78

 

 

 

9.04

 

 

 

12.04

 

 

 

 

0.09

 

 

N/A

 

 

N/A

 

 

 

11.55

 

Net interest margin

 

 

12.74

 

 

 

8.03

 

 

 

8.16

 

 

 

 

(139.64

)

 

N/A

 

 

N/A

 

 

 

9.48

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

 

49.98

 

 

N/A

 

 

N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

 

5.42

 

 

N/A

 

 

N/A

 

 

 

0.29

 

Charge-off (recovery) ratio(4)

 

 

(0.15

)

 

 

(0.25

)

 

 

—

 

(3)

 

 

(43.01

)

 

N/A

 

 

N/A

 

 

 

(0.38

)
(1)
Ratio is based on total commercial lending balances and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances and relates to the total loan business.
(4)
Negative balances indicate net recoveries for the period.

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

86,857

 

 

$

24,732

 

 

$

4,920

 

 

 

$

(1,543

)

 

$

—

 

 

$

987

 

 

$

115,953

 

Total interest expense

 

 

7,962

 

 

 

3,309

 

 

 

1,950

 

 

 

 

5,903

 

 

 

113

 

 

 

4,481

 

 

 

23,718

 

Net interest income (loss)

 

 

78,895

 

 

 

21,423

 

 

 

2,970

 

 

 

 

(7,446

)

 

 

(113

)

 

 

(3,494

)

 

 

92,235

 

Provision (recoveries) for loan losses

 

 

5,546

 

 

 

1,575

 

 

 

—

 

 

 

 

(5,931

)

 

 

—

 

 

 

810

 

 

 

2,000

 

Net interest income (loss) after loss provision

 

 

73,349

 

 

 

19,848

 

 

 

2,970

 

 

 

 

(1,515

)

 

 

(113

)

 

 

(4,304

)

 

 

90,235

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

10,153

 

 

 

—

 

 

 

10,153

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(7,219

)

 

 

—

 

 

 

(7,219

)

Other income (expense), net

 

 

(21,774

)

 

 

(7,989

)

 

 

107

 

 

 

 

(1,228

)

 

 

(5,689

)

 

 

(2,637

)

 

 

(39,210

)

Net income (loss) before taxes

 

 

51,575

 

 

 

11,859

 

 

 

3,077

 

 

 

 

(2,743

)

 

 

(2,868

)

 

 

(6,941

)

 

 

53,959

 

Income tax (provision) benefit

 

 

(13,281

)

 

 

(3,054

)

 

 

(773

)

 

 

 

689

 

 

 

720

 

 

 

(874

)

 

 

(16,573

)

Net income (loss) after taxes

 

 

38,294

 

 

 

8,805

 

 

 

2,304

 

 

 

 

(2,054

)

 

 

(2,148

)

 

 

(7,815

)

 

 

37,386

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

2,748

 

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

 

$

38,294

 

 

$

8,805

 

 

$

2,304

 

 

 

$

(2,054

)

 

$

(2,148

)

 

$

(7,815

)

 

$

34,638

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.08

%

 

 

3.20

%

 

 

3.68

%

 

 

 

(2.52

)%

 

 

(8.89

)%

 

 

(3.68

)%

 

 

2.73

%

Return on average equity

 

 

30.39

 

 

 

16.02

 

 

 

18.38

 

 

 

 

(12.60

)

 

 

(386.73

)

 

 

(27.18

)

 

 

15.61

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

18.71

 

Interest yield

 

 

14.05

 

 

 

9.37

 

 

 

10.56

 

 

 

 

(23.55

)

 

N/A

 

 

N/A

 

 

 

11.56

 

Net interest margin

 

 

12.76

 

 

 

8.11

 

 

 

6.37

 

 

 

 

(113.66

)

 

N/A

 

 

N/A

 

 

 

9.19

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

 

49.98

 

 

N/A

 

 

N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

 

5.42

 

 

N/A

 

 

N/A

 

 

 

0.29

 

Charge-off (recovery) ratio

 

 

0.22

 

 

 

0.09

 

 

 

—

 

(3)

 

 

143.94

 

 

N/A

 

 

N/A

 

 

 

1.17

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

(*) Line item is not applicable to segments.
v3.22.2.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 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 2027, with future minimum payments under these agreements of approximately $12.1 million.

(B) OTHER COMMITMENTS

As of September 30, 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, the SEC filed an amended complaint on April 26, 2022 and the Company filed a motion to dismiss the amended complaint on August 5, 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.
v3.22.2.2
Related Party Transactions
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 2022 and 2021.
v3.22.2.2
Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 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, considering the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At September 30, 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.

 

 

September 30, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

98,202

 

 

$

98,202

 

 

$

124,484

 

 

$

124,484

 

Equity investments

 

 

10,670

 

 

 

10,670

 

 

 

9,726

 

 

 

9,726

 

Investment securities

 

 

48,354

 

 

 

48,354

 

 

 

44,772

 

 

 

44,772

 

Loans receivable

 

 

1,793,975

 

 

 

1,793,975

 

 

 

1,438,758

 

 

 

1,438,758

 

Accrued interest receivable (2)

 

 

11,959

 

 

 

11,959

 

 

 

10,621

 

 

 

10,621

 

Equity securities(3)

 

 

1,721

 

 

 

1,721

 

 

 

1,950

 

 

 

1,950

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

1,782,465

 

 

 

1,782,465

 

 

 

1,478,001

 

 

 

1,478,001

 

Accrued interest payable (2)

 

 

3,432

 

 

 

3,432

 

 

 

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 September 30, 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.
v3.22.2.2
Fair Value of Assets and liabilities
 9 Months Ended
Sep. 30, 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 U.S. Government and agency securities, and certain other sovereign government obligations).

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

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

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

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

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

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

48,354

 

 

 

—

 

 

 

48,354

 

Equity securities

 

 

1,721

 

 

 

—

 

 

 

—

 

 

 

1,721

 

Total(1)

 

$

1,721

 

 

$

49,604

 

 

$

—

 

 

$

51,325

 
(1)
Total unrealized losses of $1.5 million and $4.6 million, net of tax, was included in accumulated other comprehensive loss for the three and nine months ended September 30, 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 September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,670

 

 

$

10,670

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

30,780

 

 

 

30,780

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

24,331

 

 

 

24,331

 

Total

 

$

—

 

 

$

—

 

 

$

65,781

 

 

$

65,781

 

 

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 September 30, 2022 and December 31, 2021.

(Dollars in thousands)

 

Fair Value
at September 30, 2022

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,397

 

 

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

 

 

30,780

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 5.52%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

24,331

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$3.6 - 40.1
(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.
v3.22.2.2
Medallion Bank Preferred Stock (Non-controlling Interest)
 9 Months Ended
Sep. 30, 2022
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.
v3.22.2.2
Subsequent Events
 9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to September 30, 2022 through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.
v3.22.2.2
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 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 U.S., 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, third-party holdings are 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 September 30, 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 $10.7 million and $9.7 million at September 30, 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 September 30, 2022, cumulative impairment of $2.0 million had been recorded with respect to these investments.

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 September 30, 2022 and December 31, 2021, the fair value of these securities were $1.7 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 September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(77

)

 

$

—

 

 

$

(229

)

 

$

(31

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(77

)

 

$

—

 

 

$

(229

)

 

$

(31

)
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at September 30, 2022 and $0.3 million at December 31, 2021, and less than $0.1 million and $0.1 million was amortized to interest income for the three and nine months ended September 30, 2022 and less than $0.1 million and $0.1 million for the three and nine months ended September 30, 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 September 30, 2022 and December 31, 2021, net loan origination costs were $34.3 million and $26.1 million. Net amortization to income for the three and nine months ended September 30, 2022 was $2.3 million and $6.8 million and was $2.0 million and $5.8 million for the three and nine months ended September 30, 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 (Recreation loans in bankruptcy are not charged off at 120 days), 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 typically 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 $6.0 million at September 30, 2022, or 0.33% 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. Recreation 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, 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 "loan collateral in the process of foreclosure" designation reflects that the collection activities on these 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 $19.6 million and $20.5 million at September 30, 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 September 30, 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, which was $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 these 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 September 30, 2022 and December 31, 2021, the Company had goodwill of $150.8 million, all of which related to the Bank. As of September 30, 2022 and December 31, 2021, the Company had intangible assets of $22.4 million and $23.5 million. Amortization expense on the intangible assets for the three and nine months ended September 30, 2022 and 2021 was $0.4 million and $1.1 million. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0.1 million and $0.5 million were outstanding as of September 30, 2022 and December 31, 2021, and of which $0.2 million and $0.5 million was amortized to interest income for the three and nine months ended September 30, 2022 and $0.2 million and $2.0 million was amortized to interest income for the three and nine months ended September 30, 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 September 30, 2022.

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

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Brand-related intellectual property

 

$

17,050

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,348

 

 

 

5,606

 

Total intangible assets

 

$

22,398

 

 

$

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 and $0.3 million for the three and nine months ended September 30, 2022 and was $0.1 million and $0.2 million for the three and nine months ended September 30, 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 $0.7 million and $2.0 million for the three and nine months ended September 30, 2022 and was $0.6 million and $1.8 million for the three and nine months ended September 30, 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 September 30, 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 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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income available to common stockholders

 

$

7,636

 

 

$

15,940

 

 

$

30,777

 

 

$

34,638

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

23,154,775

 

 

 

24,634,845

 

 

 

24,020,058

 

 

 

24,583,573

 

Effect of dilutive stock options

 

 

48,552

 

 

 

98,906

 

 

 

74,097

 

 

 

82,522

 

Effect of restricted stock grants

 

 

307,318

 

 

 

256,475

 

 

 

238,621

 

 

 

279,612

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

23,510,645

 

 

 

24,990,226

 

 

 

24,332,776

 

 

 

24,945,707

 

Basic net income per share

 

$

0.33

 

 

$

0.65

 

 

$

1.28

 

 

$

1.41

 

Diluted net income per share

 

 

0.32

 

 

 

0.64

 

 

 

1.26

 

 

 

1.39

 

Potentially dilutive common shares excluded from the above calculations aggregated 657,579 and 26,000 shares as of September 30, 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 nine months ended September 30, 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 129,638 and 16,803 restricted stock units. The Company recognized $1.0 million and $2.5 million, or $0.04 and $0.10 per share, for the three and nine months ended September 30, 2022, and $0.6 million and $1.7 million, or $0.02 and $0.07 per share, for the three and nine months ended September 30, 2021, of non-cash stock-based compensation expense related to the grants. As of September 30, 2022, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $4.1 million, which is expected to be recognized over the next 10 quarters.
Regulatory Capital

Regulatory Capital

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

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

 

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of September 30, 2022, the Bank’s Tier 1 leverage ratio was 16.2%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

September 30, 2022

 

 

December 31, 2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

228,838

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

297,626

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

320,957

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,834,814

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,829,047

 

 

 

1,482,678

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.2

%

 

 

17.5

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

12.5

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.3

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.6

 

 

 

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 September 30, 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 September 30, 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 the accompanying financial statements, but currently anticipates an initial 10-15% overall increase in the allowance as well as earlier recognition of credit losses and potentially greater volatility in the allowance and provision.

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. ASU 2022-02 is effective upon the adoption of ASU 2016-13. The Company is in the process of evaluating the ASU in conjunction with its adoption of CECL on January 1, 2023.

 

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement, or Topic 820: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, or ASU 2016-13. This new standard is effective for the fiscal years beginning after December 31, 2023 and clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company has assessed the impact the update and determined it does not have a material impact on the accompanying financial statements.
Reclassifications

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.
v3.22.2.2
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 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 September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(77

)

 

$

—

 

 

$

(229

)

 

$

(31

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(77

)

 

$

—

 

 

$

(229

)

 

$

(31

)
Schedule of Intangible Assets

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

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Brand-related intellectual property

 

$

17,050

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,348

 

 

 

5,606

 

Total intangible assets

 

$

22,398

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income available to common stockholders

 

$

7,636

 

 

$

15,940

 

 

$

30,777

 

 

$

34,638

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

23,154,775

 

 

 

24,634,845

 

 

 

24,020,058

 

 

 

24,583,573

 

Effect of dilutive stock options

 

 

48,552

 

 

 

98,906

 

 

 

74,097

 

 

 

82,522

 

Effect of restricted stock grants

 

 

307,318

 

 

 

256,475

 

 

 

238,621

 

 

 

279,612

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

23,510,645

 

 

 

24,990,226

 

 

 

24,332,776

 

 

 

24,945,707

 

Basic net income per share

 

$

0.33

 

 

$

0.65

 

 

$

1.28

 

 

$

1.41

 

Diluted net income per share

 

 

0.32

 

 

 

0.64

 

 

 

1.26

 

 

 

1.39

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

 

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

September 30, 2022

 

 

December 31, 2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

228,838

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

297,626

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

320,957

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,834,814

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,829,047

 

 

 

1,482,678

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.2

%

 

 

17.5

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

12.5

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.3

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.6

 

 

 

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.
v3.22.2.2
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2022
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale at September 30, 2022 and December 31, 2021 consisted of the following:

September 30, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. federal agencies

 

$

45,444

 

 

$

—

 

 

$

(5,356

)

 

$

40,088

 

State and municipalities

 

 

9,015

 

 

 

—

 

 

 

(749

)

 

 

8,266

 

Total

 

$

54,459

 

 

$

—

 

 

$

(6,105

)

 

$

48,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. 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 September 30, 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.

September 30, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

1,613

 

 

$

1,600

 

Due after one year through five years

 

 

7,692

 

 

 

7,389

 

Due after five years through ten years

 

 

9,426

 

 

 

8,172

 

Due after ten years

 

 

35,728

 

 

 

31,193

 

Total

 

$

54,459

 

 

$

48,354

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at September 30, 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

 

September 30, 2022
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of U.S. federal agencies

 

$

(2,284

)

 

$

25,669

 

 

$

(3,072

)

 

$

12,423

 

State and municipalities

 

 

(249

)

 

 

5,536

 

 

 

(500

)

 

 

2,721

 

Total

 

$

(2,533

)

 

$

31,205

 

 

$

(3,572

)

 

$

15,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 U.S. federal agencies

 

$

(403

)

 

$

16,330

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(9

)

 

 

2,124

 

 

 

(42

)

 

 

(1,956

)

Total

 

$

(412

)

 

$

18,454

 

 

$

(42

)

 

$

(1,956

)
v3.22.2.2
Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2022
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of September 30, 2022 and December 31, 2021.

 

 

September 30, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,171,819

 

 

 

63

%

 

$

961,320

 

 

 

65

%

Home improvement

 

 

575,210

 

 

 

31

 

 

 

436,772

 

 

 

29

 

Commercial

 

 

93,735

 

 

 

5

 

 

 

76,696

 

 

 

5

 

Medallion

 

 

13,973

 

 

 

1

 

 

 

14,046

 

 

 

1

 

Strategic partnership

 

 

773

 

 

*

 

 

 

90

 

 

*

 

Total gross loans

 

 

1,855,510

 

 

 

100

%

 

 

1,488,924

 

 

 

100

%

Allowance for loan losses

 

 

(61,535

)

 

 

 

 

 

(50,166

)

 

 

 

Total net loans

 

$

1,793,975

 

 

 

 

 

$

1,438,758

 

 

 

 

(*) Less than 1%
Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2022 and 2021.

Three Months Ended September 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Loan originations

 

 

149,151

 

 

 

100,451

 

 

 

4,500

 

 

 

152

 

 

 

19,428

 

 

 

273,682

 

Principal payments, sales, maturities, and recoveries

 

 

(66,338

)

 

 

(49,630

)

 

 

(4,017

)

 

 

(331

)

 

 

(19,248

)

 

 

(139,564

)

Charge-offs

 

 

(7,534

)

 

 

(1,780

)

 

 

(3,857

)

 

 

—

 

 

 

—

 

 

 

(13,171

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,862

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,862

)

Amortization of origination costs

 

 

(3,008

)

 

 

494

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,514

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

5,800

 

 

 

(513

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,287

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

181

 

 

 

—

 

 

 

—

 

 

 

181

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022
(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

 

 

433,764

 

 

 

295,443

 

 

 

28,172

 

 

 

396

 

 

 

34,267

 

 

 

792,042

 

Principal payments, sales, maturities, and recoveries

 

 

(204,568

)

 

 

(152,800

)

 

 

(6,220

)

 

 

(126

)

 

 

(33,584

)

 

 

(397,298

)

Charge-offs

 

 

(17,675

)

 

 

(3,948

)

 

 

(5,441

)

 

 

(75

)

 

 

—

 

 

 

(27,139

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,391

)

 

 

—

 

 

 

—

 

 

 

(268

)

 

 

—

 

 

 

(8,659

)

Amortization of origination costs

 

 

(8,378

)

 

 

1,194

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,184

)

Amortization of loan premium

 

 

(180

)

 

 

(270

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(450

)

FASB origination costs, net

 

 

15,927

 

 

 

(1,181

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,746

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

528

 

 

 

—

 

 

 

—

 

 

 

528

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2021

 

$

886,206

 

 

$

368,257

 

 

$

69,520

 

 

$

16,514

 

 

$

70

 

 

$

1,340,567

 

Loan originations

 

 

118,407

 

 

 

68,692

 

 

 

5,700

 

 

 

—

 

 

 

2,969

 

 

 

195,768

 

Principal payments, sales, maturities, and recoveries

 

 

(70,350

)

 

 

(38,571

)

 

 

(3,332

)

 

 

(1,449

)

 

 

(2,944

)

 

 

(116,646

)

Charge-offs

 

 

335

 

 

 

239

 

 

 

—

 

 

 

265

 

 

 

—

 

 

 

839

 

Transfer to loan collateral in process of foreclosure, net

 

 

(2,085

)

 

 

—

 

 

 

—

 

 

 

(397

)

 

 

—

 

 

 

(2,482

)

Amortization of origination costs

 

 

(2,532

)

 

 

386

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,146

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

3,869

 

 

 

(139

)

 

 

12

 

 

 

1

 

 

 

—

 

 

 

3,743

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

188

 

 

 

—

 

 

 

—

 

 

 

188

 

Gross loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

346,724

 

 

 

179,743

 

 

 

20,916

 

 

 

—

 

 

 

7,339

 

 

 

554,722

 

Principal payments, sales, maturities, and recoveries

 

 

(199,449

)

 

 

(115,369

)

 

 

(14,861

)

 

 

(5,663

)

 

 

(7,268

)

 

 

(342,610

)

Charge-offs

 

 

(1,334

)

 

 

(237

)

 

 

—

 

 

 

(10,529

)

 

 

—

 

 

 

(12,100

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,118

)

 

 

—

 

 

 

—

 

 

 

(5,027

)

 

 

—

 

 

 

(13,145

)

Amortization of origination costs

 

 

(7,171

)

 

 

1,293

 

 

 

12

 

 

 

(2

)

 

 

—

 

 

 

(5,868

)

Amortization of loan premium

 

 

(161

)

 

 

(256

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,032

)

FASB origination costs, net

 

 

10,613

 

 

 

(433

)

 

 

12

 

 

 

2

 

 

 

—

 

 

 

10,194

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

682

 

 

 

—

 

 

 

—

 

 

 

682

 

Gross loans – September 30, 2021

 

$

933,790

 

 

$

398,774

 

 

$

72,088

 

 

$

14,934

 

 

$

95

 

 

$

1,419,681

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2022 and 2021.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Allowance for loan losses – beginning balance

 

$

59,152

 

 

$

46,946

 

 

$

50,166

 

 

$

57,548

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(7,534

)

 

 

(2,313

)

 

 

(17,675

)

 

 

(10,038

)

Home improvement

 

 

(1,780

)

 

 

(523

)

 

 

(3,948

)

 

 

(1,990

)

Commercial

 

 

(3,857

)

 

 

—

 

 

 

(5,441

)

 

 

—

 

Medallion

 

 

—

 

 

 

(1,142

)

 

 

(75

)

 

 

(15,047

)

Total charge-offs

 

 

(13,171

)

 

 

(3,978

)

 

 

(27,139

)

 

 

(27,075

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

3,348

 

 

 

2,648

 

 

 

10,473

 

 

 

8,704

 

Home improvement

 

 

713

 

 

 

763

 

 

 

1,857

 

 

 

1,753

 

Commercial

 

 

—

 

 

 

—

 

 

 

47

 

 

 

—

 

Medallion

 

 

1,446

 

 

 

1,406

 

 

 

5,085

 

 

 

4,518

 

Total recoveries

 

 

5,507

 

 

 

4,817

 

 

 

17,462

 

 

 

14,975

 

Net recoveries (charge-offs) (1)

 

 

(7,664

)

 

 

839

 

 

 

(9,677

)

 

 

(12,100

)

Provision (benefit) for loan losses

 

 

10,047

 

 

 

(337

)

 

 

21,046

 

 

 

2,000

 

Allowance for loan losses – ending balance (2)

 

$

61,535

 

 

$

47,448

 

 

$

61,535

 

 

$

47,448

 
(1)
As of September 30, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $252.5 million, some of which may represent collection opportunities for the Company.
(2)
As of September 30, 2022 and September 30, 2021, there were no allowance for loan losses and net charge-offs related to the strategic partnership loans.
Summary of Allowance for Loan Losses by Type

The following tables set forth the allowance for loan losses by type as of September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

40,768

 

 

 

66

%

 

 

3.48

%

 

 

132.45

%

Home improvement

 

 

10,208

 

 

 

17

 

 

 

1.77

 

 

 

33.17

 

Commercial

 

 

963

 

 

 

1

 

 

 

1.03

 

 

 

3.13

 

Medallion

 

 

9,596

 

 

 

16

 

 

 

68.68

 

 

 

31.18

 

Total

 

$

61,535

 

 

 

100

%

 

 

3.32

%

 

 

199.93

%

 

December 31, 2021
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

32,435

 

 

 

64

%

 

 

3.37

%

 

 

91.18

%

Home improvement

 

 

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. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Total nonaccrual loans

 

$

30,780

 

 

$

35,571

 

Interest foregone quarter to date

 

 

504

 

 

 

466

 

Amount of foregone interest applied to principal in the quarter

 

 

101

 

 

 

114

 

Interest foregone year to date

 

 

1,670

 

 

 

1,620

 

Amount of foregone interest applied to principal for the year

 

 

301

 

 

 

432

 

Interest foregone life-to-date

 

 

3,251

 

 

 

3,623

 

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

 

 

1,178

 

 

 

942

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

1.7

%

 

 

2.4

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

199.9

%

 

 

141.0

%
Summary of Performance Status of Loan

The following tables present the performance status of loans as of September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,164,526

 

 

$

7,293

 

 

$

1,171,819

 

 

 

0.62

%

Home improvement

 

 

574,722

 

 

 

488

 

 

 

575,210

 

 

 

0.08

 

Commercial

 

 

84,340

 

 

 

9,395

 

 

 

93,735

 

 

 

10.02

 

Medallion

 

 

—

 

 

 

13,973

 

 

 

13,973

 

 

 

100.00

 

Strategic partnership

 

 

773

 

 

 

—

 

 

 

773

 

 

 

—

 

Total

 

$

1,824,361

 

 

$

31,149

 

 

$

1,855,510

 

 

 

1.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2022 and December 31, 2021, all of which had an allowance recorded against the principal balance.

 

 

September 30, 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

 

$

7,293

 

 

$

7,293

 

 

$

251

 

 

$

5,557

 

 

$

5,557

 

 

$

188

 

Home improvement

 

 

488

 

 

 

488

 

 

 

9

 

 

 

132

 

 

 

132

 

 

 

2

 

Commercial

 

 

9,395

 

 

 

9,469

 

 

 

963

 

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

Medallion

 

 

13,973

 

 

 

15,077

 

 

 

9,596

 

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

Total nonperforming loans with an allowance

 

$

31,149

 

 

$

32,327

 

 

$

10,819

 

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

 

 

Three Months Ended September 30,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,903

 

 

$

114

 

 

$

4,423

 

 

$

148

 

Home improvement

 

 

491

 

 

 

—

 

 

 

161

 

 

 

—

 

Commercial

 

 

13,577

 

 

 

—

 

 

 

16,531

 

 

 

—

 

Medallion

 

 

16,128

 

 

 

—

 

 

 

16,941

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

37,099

 

 

$

114

 

 

$

38,056

 

 

$

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,895

 

 

$

303

 

 

$

4,641

 

 

$

425

 

Home improvement

 

 

459

 

 

 

—

 

 

 

151

 

 

 

—

 

Commercial

 

 

13,494

 

 

 

—

 

 

 

16,926

 

 

 

—

 

Medallion

 

 

16,326

 

 

 

—

 

 

 

17,101

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

37,174

 

 

$

303

 

 

$

38,819

 

 

$

425

 
Summary of Aging of Loans

The following tables show the aging of all loans as of September 30, 2022 and December 31, 2021.

September 30, 2022

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

23,901

 

 

$

9,306

 

 

$

5,090

 

 

$

38,297

 

 

$

1,096,692

 

 

$

1,134,989

 

 

$

—

 

Home improvement

 

 

2,149

 

 

 

882

 

 

 

491

 

 

 

3,522

 

 

 

574,104

 

 

 

577,626

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

93,660

 

 

 

93,734

 

 

 

—

 

Medallion

 

 

654

 

 

 

—

 

 

 

313

 

 

 

967

 

 

 

13,006

 

 

 

13,973

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

773

 

 

 

773

 

 

 

—

 

Total

 

$

26,704

 

 

$

10,188

 

 

$

5,968

 

 

$

42,860

 

 

$

1,778,235

 

 

$

1,821,095

 

 

$

—

 
(1)
Excludes loan premiums of $0.1 million and $34.3 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.
Summary of TDRs

The following table shows the TDRs which the Company entered into during the three and nine months ended September 30, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

34

 

 

$

549

 

 

$

549

 

Medallion loans

 

 

—

 

 

 

—

 

 

 

—

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

56

 

 

$

825

 

 

$

825

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2021

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

8

 

 

$

94

 

 

$

55

 

Medallion loans

 

 

1

 

 

 

77

 

 

 

77

 

Nine months ended September 30, 2021

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

47

 

 

$

568

 

 

$

525

 

Medallion loans

 

 

11

 

 

 

3,071

 

 

 

3,071

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

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2022 and 2021.

Three Months Ended September 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

Transfer from loans, net

 

 

2,862

 

 

 

—

 

 

 

2,862

 

Sales

 

 

(1,399

)

 

 

(544

)

 

 

(1,943

)

Cash payments received

 

 

—

 

 

 

(2,243

)

 

 

(2,243

)

Collateral valuation adjustments

 

 

(1,225

)

 

 

(94

)

 

 

(1,319

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 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

 

 

8,391

 

 

 

268

 

 

 

8,659

 

Sales

 

 

(5,797

)

 

 

(2,659

)

 

 

(8,456

)

Cash payments received

 

 

—

 

 

 

(9,496

)

 

 

(9,496

)

Collateral valuation adjustments

 

 

(3,198

)

 

 

(608

)

 

 

(3,806

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2021

 

$

882

 

 

$

48,157

 

 

$

49,039

 

Transfer from loans, net

 

 

2,085

 

 

 

397

 

 

 

2,482

 

Sales

 

 

(1,554

)

 

 

(1,640

)

 

 

(3,194

)

Cash payments received

 

 

—

 

 

 

(4,525

)

 

 

(4,525

)

Collateral valuation adjustments

 

 

(640

)

 

 

(618

)

 

 

(1,258

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 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

 

 

8,118

 

 

 

5,027

 

 

 

13,145

 

Sales

 

 

(5,842

)

 

 

(1,871

)

 

 

(7,713

)

Cash payments received

 

 

—

 

 

 

(8,948

)

 

 

(8,948

)

Collateral valuation adjustments

 

 

(2,935

)

 

 

(5,565

)

 

 

(8,500

)

Loan collateral in process of foreclosure – September 30, 2021

 

$

773

 

 

$

41,771

 

 

$

42,544

 
v3.22.2.2
Funds Borrowed (Tables)
 9 Months Ended
Sep. 30, 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 September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

September 30, 2022(1)

 

 

December 31, 2021(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

479,761

 

 

$

375,974

 

 

$

389,223

 

 

$

157,890

 

 

$

155,854

 

 

$

—

 

 

$

1,558,702

 

 

$

1,253,288

 

 

 

1.63

%

Privately placed notes

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

5,000

 

 

 

12,763

 

 

 

14,000

 

 

 

14,000

 

 

 

2,000

 

 

 

21,000

 

 

 

68,763

 

 

 

69,963

 

 

 

2.94

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

5.27

 

Total

 

$

484,761

 

 

$

424,737

 

 

$

403,223

 

 

$

203,140

 

 

$

157,854

 

 

$

107,750

 

 

$

1,781,465

 

 

$

1,477,251

 

 

 

2.16

%
(1)
Excludes deferred financing costs of $7.2 million and $7.1 million as of September 30, 2022 and December 31, 2021.
(2)
Weighted average contractual rate as of September 30, 2022.
(3)
Balance excludes $1.0 million and $0.8 million of strategic partner reserve deposits as of September 30, 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 September 30, 2022.

(Dollars in thousands)

 

September 30, 2022

 

Three months or less

 

$

110,763

 

Over three months through six months

 

 

128,094

 

Over six months through one year

 

 

240,904

 

Over one year

 

 

1,078,941

 

Total deposits

 

$

1,558,702

 
v3.22.2.2
Leases (Tables)
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2022 and 2021.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating lease costs

 

$

580

 

 

$

571

 

 

$

1,759

 

 

$

1,715

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

684

 

 

 

481

 

 

 

1,764

 

 

 

1,780

 

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

 

 

(47

)

 

 

(41

)

 

 

(133

)

 

 

(76

)
Schedule of Breakout of Operating leases

The following table presents the breakout of the operating leases as of September 30, 2022 and December 31, 2021.

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Operating lease right-of-use assets

 

$

9,699

 

 

$

10,045

 

Other current liabilities

 

 

2,095

 

 

 

2,159

 

Operating lease liabilities

 

 

8,580

 

 

 

9,053

 

Total operating lease liabilities

 

 

10,675

 

 

 

11,212

 

Weighted average remaining lease term

 

5.9 years

 

 

5.4 years

 

Weighted average discount rate

 

 

5.54

%

 

 

5.54

%
Schedule of Maturities of the Lease Liabilities

At September 30, 2022, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2022

 

$

638

 

2023

 

 

2,518

 

2024

 

 

2,526

 

2025

 

 

2,505

 

2026

 

 

2,440

 

Thereafter

 

 

2,502

 

Total lease payments

 

 

13,129

 

Less imputed interest

 

 

2,454

 

Total operating lease liabilities

 

$

10,675

 
v3.22.2.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2022 and December 31, 2021.

(Dollars in thousands)

 

September 30, 2022

 

 

December 31, 2021

 

Goodwill and other intangibles

 

$

(43,509

)

 

$

(43,894

)

Provision for loan losses

 

 

10,360

 

 

 

11,057

 

Net operating loss carryforwards (1)

 

 

3,570

 

 

 

12,167

 

Accrued expenses, compensation, and other assets

 

 

4,042

 

 

 

2,579

 

Unrealized gains on other investments

 

 

1,700

 

 

 

2,176

 

Total deferred tax liability

 

 

(23,837

)

 

 

(15,915

)

Valuation allowance

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(26,132

)

 

$

(18,210

)
(1)
As of September 30, 2022, the Company and its subsidiaries had an estimated $10.9 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 $1.3 million as of September 30, 2022.
Summary of Components of Tax Provision

The components of our tax provision for the three and nine months ended September 30, 2022 and 2021 was as follows:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

693

 

 

$

1,359

 

 

$

2,181

 

 

$

2,154

 

State

 

 

340

 

 

 

721

 

 

 

1,109

 

 

 

991

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

2,081

 

 

 

3,198

 

 

 

7,679

 

 

 

9,252

 

State

 

 

91

 

 

 

889

 

 

 

1,923

 

 

 

4,176

 

Net provision for income taxes

 

$

3,205

 

 

$

6,167

 

 

$

12,892

 

 

$

16,573

 
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 and nine months ended September 30, 2022 and 2021.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Statutory Federal income tax provision at 21%

 

$

2,613

 

 

$

4,807

 

 

$

10,142

 

 

$

11,331

 

State and local income taxes, net of federal income tax

 

 

511

 

 

 

942

 

 

 

1,984

 

 

 

2,217

 

Change in state income tax accruals

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,833

 

Change in effective state income tax rates and accrual

 

 

—

 

 

 

110

 

 

 

—

 

 

 

1,479

 

Income attributable to non-controlling interest

 

 

—

 

 

 

(183

)

 

 

—

 

 

 

(449

)

Non-deductible expenses

 

 

410

 

 

 

132

 

 

 

1,484

 

 

 

(81

)

Other

 

 

(329

)

 

 

359

 

 

 

(718

)

 

 

243

 

Total income tax provision

 

$

3,205

 

 

$

6,167

 

 

$

12,892

 

 

$

16,573

 
v3.22.2.2
Stock Options and Restricted Stock (Tables)
 9 Months Ended
Sep. 30, 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 during the nine months ended September 30, 2022.

 

 

Nine Months Ended September 30,

 

 

 

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, second, and third quarters 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(2,103

)

 

 

4.89 - 7.25

 

 

 

6.37

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2022 (2)

 

 

1,081,609

 

 

$

2.14 - 12.55

 

 

$

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(486

)

 

 

4.89 - 7.25

 

 

 

6.07

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2022 (2)

 

 

1,081,123

 

 

$

2.14 - 12.55

 

 

$

6.53

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

320,922

 

 

$

2.14 - 12.55

 

 

$

6.53

 

September 30, 2022

 

 

552,056

 

 

$

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 $0 and less than $0.1 million for the three and nine months ended September 30, 2022 and was $0.2 million for the year ended December 31, 2021.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2022 and the related exercise price of the underlying options, was $0.6 million for outstanding options and $0.3 million for exercisable options as of September 30, 2022. The remaining contractual life was 7.3 years for outstanding options and 6.8 years for exercisable options at September 30, 2022.
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the 2022 first, second, and third quarters 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(583

)

 

 

4.89 - 8.40

 

 

 

7.58

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2022(2)

 

 

744,687

 

 

$

4.89 - 8.40

 

 

$

7.34

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(381

)

 

 

4.89 - 8.40

 

 

 

7.76

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2022 (2)

 

 

744,306

 

 

$

4.89 - 8.40

 

 

$

7.34

 
(1)
The aggregate fair value of the restricted stock vested was $0 and $1.0 million for the three and nine months ended September 30, 2022 and was $1.1 million for the year ended December 31, 2021.
(2)
The aggregate fair value of the restricted stock was $5.2 million as of September 30, 2022. The remaining vesting period was 2.4 years at September 30, 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, second, and third quarters.

 

 

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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(365

)

 

 

4.89 - 7.25

 

 

 

5.78

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2022

 

 

529,228

 

 

$

4.89 - 7.25

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(161

)

 

 

4.89 - 7.25

 

 

 

5.39

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2022

 

 

529,067

 

 

$

4.89 - 7.25

 

 

$

6.25

 
v3.22.2.2
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Schedule of Segment Data

The following tables present segment data as of and for the three and nine months ended September 30, 2022 and 2021.

Three Months Ended September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

36,539

 

 

$

11,689

 

 

$

2,493

 

 

 

$

92

 

 

$

881

 

 

$

51,694

 

Total interest expense

 

 

5,003

 

 

 

2,093

 

 

 

780

 

 

 

 

133

 

 

 

1,645

 

 

 

9,654

 

Net interest income (loss)

 

 

31,536

 

 

 

9,596

 

 

 

1,713

 

 

 

 

(41

)

 

 

(764

)

 

 

42,040

 

Provision (recoveries) for loan losses

 

 

7,182

 

 

 

2,041

 

 

 

2,100

 

 

 

 

(1,275

)

 

 

(1

)

 

 

10,047

 

Net interest income (loss) after loss provision

 

 

24,354

 

 

 

7,555

 

 

 

(387

)

 

 

 

1,234

 

 

 

(763

)

 

 

31,993

 

Other income (expense), net

 

 

(7,178

)

 

 

(3,163

)

 

 

(2,214

)

 

 

 

(2,686

)

 

 

(4,399

)

 

 

(19,640

)

Net income (loss) before taxes

 

 

17,176

 

 

 

4,392

 

 

 

(2,601

)

 

 

 

(1,452

)

 

 

(5,162

)

 

 

12,353

 

Income tax (provision) benefit

 

 

(4,499

)

 

 

(1,152

)

 

 

700

 

 

 

 

394

 

 

 

1,352

 

 

 

(3,205

)

Net income (loss) after taxes

 

 

12,677

 

 

 

3,240

 

 

 

(1,901

)

 

 

 

(1,058

)

 

 

(3,810

)

 

 

9,148

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

1,512

 

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

 

$

12,677

 

 

$

3,240

 

 

$

(1,901

)

 

 

$

(1,058

)

 

$

(3,810

)

 

$

7,636

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

1,131,051

 

 

$

565,002

 

 

$

92,772

 

 

 

$

4,377

 

 

$

773

 

 

$

1,793,975

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

 

27,860

 

 

 

354,331

 

 

 

2,199,541

 

Total funds borrowed

 

 

928,194

 

 

 

461,595

 

 

 

82,956

 

 

 

 

22,577

 

 

 

287,143

 

 

 

1,782,465

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.54

%

 

 

2.36

%

 

 

(7.32

)%

 

 

 

(13.00

)%

 

 

(4.10

)%

 

 

1.68

%

Return on average equity

 

 

27.07

 

 

 

14.06

 

 

 

(43.65

)

 

 

 

(74.61

)

 

 

(24.41

)

 

 

10.03

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

10.35

 

Interest yield

 

 

13.19

 

 

 

8.57

 

 

 

10.82

 

 

 

 

8.12

 

 

N/A

 

 

 

10.97

 

Net interest margin

 

 

11.38

 

 

 

7.03

 

 

 

7.43

 

 

 

 

(3.62

)

 

N/A

 

 

 

8.91

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

(1)

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status(2)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

(1)

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio(4)

 

 

1.51

 

 

 

0.78

 

 

 

16.74

 

(3)

 

 

(127.68

)

 

N/A

 

 

 

1.75

 
(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 net recoveries for the period.

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

101,189

 

 

$

31,977

 

 

$

6,701

 

 

 

$

469

 

 

$

1,772

 

 

$

142,108

 

Total interest expense

 

 

12,700

 

 

 

5,060

 

 

 

2,287

 

 

 

 

426

 

 

 

4,785

 

 

 

25,258

 

Net interest income (loss)

 

 

88,489

 

 

 

26,917

 

 

 

4,414

 

 

 

 

43

 

 

 

(3,013

)

 

 

116,850

 

Provision (recoveries) for loan losses

 

 

15,536

 

 

 

4,943

 

 

 

5,234

 

 

 

 

(4,819

)

 

 

152

 

 

 

21,046

 

Net interest income (loss) after loss provision

 

 

72,953

 

 

 

21,974

 

 

 

(820

)

 

 

 

4,862

 

 

 

(3,165

)

 

 

95,804

 

Other income (expense), net

 

 

(21,549

)

 

 

(9,269

)

 

 

(282

)

 

 

 

(4,252

)

 

 

(12,248

)

 

 

(47,600

)

Net income (loss) before taxes

 

 

51,404

 

 

 

12,705

 

 

 

(1,102

)

 

 

 

610

 

 

 

(15,413

)

 

 

48,204

 

Income tax (provision) benefit

 

 

(13,747

)

 

 

(3,398

)

 

 

295

 

 

 

 

(163

)

 

 

4,121

 

 

 

(12,892

)

Net income (loss) after taxes

 

 

37,657

 

 

 

9,307

 

 

 

(807

)

 

 

 

447

 

 

 

(11,292

)

 

 

35,312

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

4,535

 

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

 

$

37,657

 

 

$

9,307

 

 

$

(807

)

 

 

$

447

 

 

$

(11,292

)

 

$

30,777

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net

 

$

1,131,051

 

 

$

565,002

 

 

$

92,772

 

 

 

$

4,377

 

 

$

773

 

 

$

1,793,975

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

 

27,860

 

 

 

354,331

 

 

 

2,199,541

 

Total funds borrowed

 

 

928,194

 

 

 

461,595

 

 

 

82,956

 

 

 

 

22,577

 

 

 

287,143

 

 

 

1,782,465

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.86

%

 

 

2.48

%

 

 

(1.05

)%

 

 

 

1.30

%

 

 

(4.24

)%

 

 

2.33

%

Return on average equity

 

 

27.16

 

 

 

13.91

 

 

 

(6.08

)

 

 

 

6.99

 

 

 

(25.15

)

 

 

13.05

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

 

14.06

 

Interest yield

 

 

13.26

 

 

 

8.67

 

 

 

10.55

 

 

 

 

13.61

 

 

N/A

 

 

 

11.03

 

Net interest margin

 

 

11.60

 

 

 

7.30

 

 

 

6.95

 

 

 

 

1.25

 

 

N/A

 

 

 

9.09

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

(1)

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status(2)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

(1)

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio(4)

 

 

0.94

 

 

 

0.57

 

 

 

8.49

 

(3)

 

 

(145.36

)

 

N/A

 

 

 

0.81

 
(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 net recoveries for the period.

(*) Line item is not applicable to segments.

 

 

Three Months Ended September 30, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

30,529

 

 

$

8,586

 

 

$

2,055

 

 

 

$

1

 

 

$

—

 

 

$

326

 

 

$

41,497

 

Total interest expense

 

 

2,305

 

 

 

958

 

 

 

662

 

 

 

 

2,009

 

 

 

38

 

 

 

1,454

 

 

 

7,426

 

Net interest income (loss)

 

 

28,224

 

 

 

7,628

 

 

 

1,393

 

 

 

 

(2,008

)

 

 

(38

)

 

 

(1,128

)

 

 

34,071

 

Provision (recoveries) for loan losses

 

 

916

 

 

 

369

 

 

 

—

 

 

 

 

(1,944

)

 

 

—

 

 

 

322

 

 

 

(337

)

Net interest income (loss) after loss provision

 

 

27,308

 

 

 

7,259

 

 

 

1,393

 

 

 

 

(64

)

 

 

(38

)

 

 

(1,450

)

 

 

34,408

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

3,335

 

 

 

—

 

 

 

3,335

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(2,424

)

 

 

—

 

 

 

(2,424

)

Other income (expense), net

 

 

(8,856

)

 

 

(3,437

)

 

 

636

 

 

 

 

2,073

 

 

 

(2,066

)

 

 

(778

)

 

 

(12,428

)

Net income (loss) before taxes

 

 

18,452

 

 

 

3,822

 

 

 

2,029

 

 

 

 

2,009

 

 

 

(1,193

)

 

 

(2,228

)

 

 

22,891

 

Income tax (provision) benefit

 

 

(4,752

)

 

 

(951

)

 

 

(510

)

 

 

 

(504

)

 

 

299

 

 

 

251

 

 

 

(6,167

)

Net income (loss) after taxes

 

 

13,700

 

 

 

2,871

 

 

 

1,519

 

 

 

 

1,505

 

 

 

(894

)

 

 

(1,977

)

 

 

16,724

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

784

 

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

 

$

13,700

 

 

$

2,871

 

 

$

1,519

 

 

 

$

1,505

 

 

$

(894

)

 

$

(1,977

)

 

$

15,940

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.09

%

 

 

2.89

%

 

 

6.60

%

 

 

 

6.12

%

 

 

(11.28

)%

 

 

(2.65

)%

 

 

3.73

%

Return on average equity

 

 

30.46

 

 

 

14.43

 

 

 

32.99

 

 

 

 

30.62

 

 

 

(11.08

)

 

 

(19.79

)

 

 

20.02

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

24.38

 

Interest yield

 

 

13.78

 

 

 

9.04

 

 

 

12.04

 

 

 

 

0.09

 

 

N/A

 

 

N/A

 

 

 

11.55

 

Net interest margin

 

 

12.74

 

 

 

8.03

 

 

 

8.16

 

 

 

 

(139.64

)

 

N/A

 

 

N/A

 

 

 

9.48

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

 

49.98

 

 

N/A

 

 

N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

 

5.42

 

 

N/A

 

 

N/A

 

 

 

0.29

 

Charge-off (recovery) ratio(4)

 

 

(0.15

)

 

 

(0.25

)

 

 

—

 

(3)

 

 

(43.01

)

 

N/A

 

 

N/A

 

 

 

(0.38

)
(1)
Ratio is based on total commercial lending balances and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances and relates to the total loan business.
(4)
Negative balances indicate net recoveries for the period.

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

86,857

 

 

$

24,732

 

 

$

4,920

 

 

 

$

(1,543

)

 

$

—

 

 

$

987

 

 

$

115,953

 

Total interest expense

 

 

7,962

 

 

 

3,309

 

 

 

1,950

 

 

 

 

5,903

 

 

 

113

 

 

 

4,481

 

 

 

23,718

 

Net interest income (loss)

 

 

78,895

 

 

 

21,423

 

 

 

2,970

 

 

 

 

(7,446

)

 

 

(113

)

 

 

(3,494

)

 

 

92,235

 

Provision (recoveries) for loan losses

 

 

5,546

 

 

 

1,575

 

 

 

—

 

 

 

 

(5,931

)

 

 

—

 

 

 

810

 

 

 

2,000

 

Net interest income (loss) after loss provision

 

 

73,349

 

 

 

19,848

 

 

 

2,970

 

 

 

 

(1,515

)

 

 

(113

)

 

 

(4,304

)

 

 

90,235

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

10,153

 

 

 

—

 

 

 

10,153

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

(7,219

)

 

 

—

 

 

 

(7,219

)

Other income (expense), net

 

 

(21,774

)

 

 

(7,989

)

 

 

107

 

 

 

 

(1,228

)

 

 

(5,689

)

 

 

(2,637

)

 

 

(39,210

)

Net income (loss) before taxes

 

 

51,575

 

 

 

11,859

 

 

 

3,077

 

 

 

 

(2,743

)

 

 

(2,868

)

 

 

(6,941

)

 

 

53,959

 

Income tax (provision) benefit

 

 

(13,281

)

 

 

(3,054

)

 

 

(773

)

 

 

 

689

 

 

 

720

 

 

 

(874

)

 

 

(16,573

)

Net income (loss) after taxes

 

 

38,294

 

 

 

8,805

 

 

 

2,304

 

 

 

 

(2,054

)

 

 

(2,148

)

 

 

(7,815

)

 

 

37,386

 

Income attributable to the non-controlling interest

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

2,748

 

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

 

$

38,294

 

 

$

8,805

 

 

$

2,304

 

 

 

$

(2,054

)

 

$

(2,148

)

 

$

(7,815

)

 

$

34,638

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

902,234

 

 

$

392,278

 

 

$

70,232

 

 

 

$

5,538

 

 

$

—

 

 

$

1,951

 

 

$

1,372,233

 

Total assets

 

 

916,109

 

 

 

405,439

 

 

 

92,257

 

 

 

 

93,683

 

 

 

30,969

 

 

 

266,777

 

 

 

1,805,234

 

Total funds borrowed

 

 

712,474

 

 

 

296,509

 

 

 

73,806

 

 

 

 

74,941

 

 

 

8,054

 

 

 

258,358

 

 

 

1,424,142

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.08

%

 

 

3.20

%

 

 

3.68

%

 

 

 

(2.52

)%

 

 

(8.89

)%

 

 

(3.68

)%

 

 

2.73

%

Return on average equity

 

 

30.39

 

 

 

16.02

 

 

 

18.38

 

 

 

 

(12.60

)

 

 

(386.73

)

 

 

(27.18

)

 

 

15.61

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

 

*

 

 

*

 

 

*

 

 

 

18.71

 

Interest yield

 

 

14.05

 

 

 

9.37

 

 

 

10.56

 

 

 

 

(23.55

)

 

N/A

 

 

N/A

 

 

 

11.56

 

Net interest margin

 

 

12.76

 

 

 

8.11

 

 

 

6.37

 

 

 

 

(113.66

)

 

N/A

 

 

N/A

 

 

 

9.19

 

Reserve coverage

 

 

3.38

 

 

 

1.63

 

 

 

(0.00

)

(1)

 

 

49.98

 

 

N/A

 

 

N/A

 

 

 

3.34

 

Delinquency status(2)

 

 

0.34

 

 

 

0.04

 

 

 

0.10

 

(1)

 

 

5.42

 

 

N/A

 

 

N/A

 

 

 

0.29

 

Charge-off (recovery) ratio

 

 

0.22

 

 

 

0.09

 

 

 

—

 

(3)

 

 

143.94

 

 

N/A

 

 

N/A

 

 

 

1.17

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

(*) Line item is not applicable to segments.
v3.22.2.2
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 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.

 

 

September 30, 2022

 

 

December 31, 2021

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

98,202

 

 

$

98,202

 

 

$

124,484

 

 

$

124,484

 

Equity investments

 

 

10,670

 

 

 

10,670

 

 

 

9,726

 

 

 

9,726

 

Investment securities

 

 

48,354

 

 

 

48,354

 

 

 

44,772

 

 

 

44,772

 

Loans receivable

 

 

1,793,975

 

 

 

1,793,975

 

 

 

1,438,758

 

 

 

1,438,758

 

Accrued interest receivable (2)

 

 

11,959

 

 

 

11,959

 

 

 

10,621

 

 

 

10,621

 

Equity securities(3)

 

 

1,721

 

 

 

1,721

 

 

 

1,950

 

 

 

1,950

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

1,782,465

 

 

 

1,782,465

 

 

 

1,478,001

 

 

 

1,478,001

 

Accrued interest payable (2)

 

 

3,432

 

 

 

3,432

 

 

 

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 September 30, 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.
v3.22.2.2
Fair Value of Assets and liabilities (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

48,354

 

 

 

—

 

 

 

48,354

 

Equity securities

 

 

1,721

 

 

 

—

 

 

 

—

 

 

 

1,721

 

Total(1)

 

$

1,721

 

 

$

49,604

 

 

$

—

 

 

$

51,325

 
(1)
Total unrealized losses of $1.5 million and $4.6 million, net of tax, was included in accumulated other comprehensive loss for the three and nine months ended September 30, 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 September 30, 2022 and December 31, 2021.

September 30, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,670

 

 

$

10,670

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

30,780

 

 

 

30,780

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

24,331

 

 

 

24,331

 

Total

 

$

—

 

 

$

—

 

 

$

65,781

 

 

$

65,781

 

 

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 September 30, 2022 and December 31, 2021.

(Dollars in thousands)

 

Fair Value
at September 30, 2022

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,397

 

 

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

 

 

30,780

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 5.52%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

24,331

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$3.6 - 40.1
(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.
v3.22.2.2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 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 $ 34.0  
v3.22.2.2
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Mar. 31, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 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     $ 1,300,000      
Non-marketable securities 10,700,000     10,700,000   $ 9,700,000  
Impact of equity investment 2,000,000.0     2,000,000.0      
Past Due 42,860,000     42,860,000   41,761,000  
Notes receivable net 79,500     79,500      
Investment securities Amortized to interest income 100,000   $ 100,000 100,000 $ 100,000    
Net loan origination costs       34,300,000   26,100,000  
Net amortization to income (2,300,000)   (2,000,000.0) $ (6,800,000) (5,800,000)    
Percentage of write down of loan balance       40.00%      
Principal portion of loans serviced, fair value 19,600,000     $ 19,600,000   20,500,000  
Loans write down to collateral value 13,171,000   3,978,000 $ 27,139,000 27,075,000    
Intangible assets useful life       20 years      
Goodwill 150,803,000     $ 150,803,000   150,803,000  
Intangible assets, net 22,398,000     22,398,000   23,480,000  
Amortization of intangible assets 359,000   362,000 1,082,000 1,083,000    
Financing receivable, recorded investment, 90 days past due and still accruing 0     0   0  
Depreciation and amortization 100,000   100,000 300,000 200,000    
Amortization expense 700,000   600,000 2,000,000.0 $ 1,800,000    
Deferred costs 7,200,000     $ 7,200,000   $ 7,100,000  
Potential dilutive common shares excluded from EPS computation       657,579 26,000    
Stock based compensation award       0 317,398    
Stock based compensation award, Amount $ 1,000,000.0   $ 600,000 $ 2,500,000 $ 1,700,000    
Stock based compensation award per diluted common share $ 0.04   $ 0.02 $ 0.10 $ 0.07    
Unrecognized compensation cost related to unvested stock options and restricted stock $ 4,100,000     $ 4,100,000      
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period       10 months      
Tier 1 leverage capital to total assets ratio 15.00%     15.00%      
Tier 1 leverage capital ratio 16.20%     16.20%      
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   383,925 163,561 258,120  
Restricted Stock Units [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Stock based compensation award       129,638 16,803    
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 $ 100,000     $ 100,000   $ 500,000  
Loan portfolio premium amortized to interest income 200,000   $ 200,000 500,000 $ 2,000,000.0    
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 5,968,000     5,968,000   4,024,000  
91+ [Member] | Loans [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due $ 6,000,000.0     $ 6,000,000.0   $ 4,000,000.0  
Total loans more than 90 days past due ,percentage 0.33%     0.33%   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 $ 1,700,000     $ 1,700,000   $ 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      
v3.22.2.2
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Equity Securities, FV-NI, Gain (Loss) [Abstract]        
Net losses recognized during the period on equity securities $ (77) $ 0 $ (229) $ (31)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0 0 0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (77) $ 0 $ (229) $ (31)
v3.22.2.2
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Investments In Loans [Line Items]    
Intangibles assets $ 22,398 $ 23,480
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 17,050 17,874
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 5,348 $ 5,606
v3.22.2.2
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Accounting Policies [Abstract]        
Net income available to common stockholders $ 7,636 $ 15,940 $ 30,777 $ 34,638
Weighted average common shares outstanding applicable to basic EPS 23,154,775 24,634,845 24,020,058 24,583,573
Effect of dilutive stock options 48,552 98,906 74,097 82,522
Effect of restricted stock grants 307,318 256,475 238,621 279,612
Adjusted weighted average common shares outstanding applicable to diluted EPS 23,510,645 24,990,226 24,332,776 24,945,707
Basic income per share $ 0.33 $ 0.65 $ 1.28 $ 1.41
Diluted income per share $ 0.32 $ 0.64 $ 1.26 $ 1.39
v3.22.2.2
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 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 $ 228,838 $ 193,459
Tier 1 capital 297,626 262,247
Total capital 320,957 281,211
Average assets 1,834,814 1,495,726
Risk-weighted assets $ 1,829,047 $ 1,482,678
Leverage ratio 16.2 17.5
Common equity Tier 1 capital ratio 12.5 13.1
Tier 1 capital ratio 16.3 17.7
Total capital ratio 17.6 19.0
v3.22.2.2
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 54,459 $ 44,494
Gross Unrealized Gains 0 732
Gross Unrealized Losses (6,105) (454)
Fair Value 48,354 44,772
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 45,444 35,469
Gross Unrealized Gains 0 672
Gross Unrealized Losses (5,356) (403)
Fair Value 40,088 35,738
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 9,015 9,025
Gross Unrealized Gains 0 60
Gross Unrealized Losses (749) (51)
Fair Value $ 8,266 $ 9,034
v3.22.2.2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 1,613  
Amortized Cost, due after one year through five years 7,692  
Amortized Cost, due after five years through ten years 9,426  
Amortized Cost, due after ten years 35,728  
Amortized Cost 54,459 $ 44,494
Market Value, due in one year or less 1,600  
Market Value, due after one year through five years 7,389  
Market Value, due after five years through ten years 8,172  
Market Value, due after ten years 31,193  
Market Value, total $ 48,354 $ 44,772
v3.22.2.2
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (2,533) $ (412)
Fair Value, Less than Twelve Months 31,205 18,454
Gross Unrealized Losses, Twelve Months and Over (3,572) (42)
Fair Value, Twelve Months and Over 15,144 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 (2,284) (403)
Fair Value, Less than Twelve Months 25,669 16,330
Gross Unrealized Losses, Twelve Months and Over (3,072) 0
Fair Value, Twelve Months and Over 12,423 0
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (249) (9)
Fair Value, Less than Twelve Months 5,536 2,124
Gross Unrealized Losses, Twelve Months and Over (500) (42)
Fair Value, Twelve Months and Over $ 2,721 $ 1,956
v3.22.2.2
Investment Securities - Additional Information (Detail) - Securities
Sep. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-Sale [Abstract]    
Number of Securities 58 15
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Jun. 30, 2022
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,821,095 [1] $ 1,461,622 [2]        
Allowance for loan losses (61,535) [3] (50,166) $ (59,152) $ (47,448) [3] $ (46,946) $ (57,548)
Net loans receivable 1,793,975 1,438,758   1,372,233    
Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 1,855,510 1,488,924 1,734,621 1,419,681 1,340,567 1,229,838
Allowance for loan losses (61,535) (50,166)        
Net loans receivable $ 1,793,975 $ 1,438,758        
Percentage of total gross loans 100.00% 100.00%        
Recreation [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,134,989 [1] $ 931,859 [2]        
Allowance for loan losses (40,768) (32,435)        
Recreation [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,171,819 $ 961,320 1,096,670 933,790 886,206 792,686
Percentage of total gross loans 63.00% 65.00%        
Home Improvement [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 577,626 [1] $ 438,931 [2]        
Allowance for loan losses (10,208) (7,356)        
Home Improvement [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 575,210 $ 436,772 526,278 398,774 368,257 334,033
Percentage of total gross loans 31.00% 29.00%        
Commercial [Member]            
Student Loan Portfolio By Program [Line Items]            
Allowance for loan losses $ (963) $ (1,141)        
Commercial [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 93,735 $ 76,696 96,928 72,088 69,520 65,327
Percentage of total gross loans 5.00% 5.00%        
Medallion [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 13,973 [1] $ 14,046 [2]        
Allowance for loan losses (9,596) (9,234)        
Medallion [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 13,973 $ 14,046 14,152 14,934 16,514 37,768
Percentage of total gross loans 1.00% 1.00%        
Strategic Partnership [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 773 [1] $ 90 [2]        
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 773 $ 90 $ 593 $ 95 $ 70 $ 24
[1] Excludes loan premiums of $0.1 million and $34.3 million of capitalized loan origination costs.
[2] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[3] As of September 30, 2022 and September 30, 2021, there were no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.2.2
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     $ 1,461,622,000  
Net recoveries (charge-offs) [2] $ (7,664,000) $ 839,000 (9,677,000) $ (12,100,000)
Transfer to loan collateral in process of foreclosure, net (2,862,000) (2,482,000) (8,659,000) (13,145,000)
Amortization of origination costs     (7,184,000) (5,770,000)
Paid-in-kind interest     528,000 682,000
Gross loans, ending balance [3] 1,821,095,000   1,821,095,000  
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 (2,862,000) (2,085,000) (8,391,000) (8,118,000)
Gross loans, ending balance [3] 1,134,989,000   1,134,989,000  
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] 577,626,000   577,626,000  
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 0 (397,000) (268,000) (5,027,000)
Gross loans, ending balance [3] 13,973,000   13,973,000  
Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     90,000  
Net recoveries (charge-offs)     0 0
Gross loans, ending balance [3] 773,000   773,000  
Bank Holding Company Accounting [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,734,621,000 1,340,567,000 1,488,924,000 1,229,838,000
Loan originations 273,682,000 195,768,000 792,042,000 554,722,000
Principal payments, sales, maturities, and recoveries (139,564,000) (116,646,000) (397,298,000) (342,610,000)
Net recoveries (charge-offs) (13,171,000) 839,000 (27,139,000) (12,100,000)
Transfer to loan collateral in process of foreclosure, net (2,862,000) (2,482,000) (8,659,000) (13,145,000)
Amortization of origination costs (2,514,000) (2,146,000) 7,184,000 (5,868,000)
Amortization of loan premium (150,000) (150,000) (450,000) (2,032,000)
FASB origination costs 5,287,000 3,743,000 14,746,000 10,194,000
Paid-in-kind interest 181,000 188,000 528,000 682,000
Gross loans, ending balance 1,855,510,000 1,419,681,000 1,855,510,000 1,419,681,000
Bank Holding Company Accounting [Member] | Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,096,670,000 886,206,000 961,320,000 792,686,000
Loan originations 149,151,000 118,407,000 433,764,000 346,724,000
Principal payments, sales, maturities, and recoveries (66,338,000) (70,350,000) (204,568,000) (199,449,000)
Net recoveries (charge-offs) (7,534,000) 335,000 (17,675,000) (1,334,000)
Transfer to loan collateral in process of foreclosure, net (2,862,000) (2,085,000) (8,391,000) (8,118,000)
Amortization of origination costs (3,008,000) (2,532,000) 8,378,000 (7,171,000)
Amortization of loan premium (60,000) (60,000) (180,000) (161,000)
FASB origination costs 5,800,000 3,869,000 15,927,000 10,613,000
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 1,171,819,000 933,790,000 1,171,819,000 933,790,000
Bank Holding Company Accounting [Member] | Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 526,278,000 368,257,000 436,772,000 334,033,000
Loan originations 100,451,000 68,692,000 295,443,000 179,743,000
Principal payments, sales, maturities, and recoveries (49,630,000) (38,571,000) (152,800,000) (115,369,000)
Net recoveries (charge-offs) (1,780,000) 239,000 (3,948,000) (237,000)
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 494,000 386,000 1,194,000 1,293,000
Amortization of loan premium (90,000) (90,000) (270,000) (256,000)
FASB origination costs (513,000) (139,000) (1,181,000) (433,000)
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 575,210,000 398,774,000 575,210,000 398,774,000
Bank Holding Company Accounting [Member] | Commercial [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 96,928,000 69,520,000 76,696,000 65,327,000
Loan originations 4,500,000 5,700,000 28,172,000 20,916,000
Principal payments, sales, maturities, and recoveries (4,017,000) (3,332,000) (6,220,000) (14,861,000)
Net recoveries (charge-offs) (3,857,000) 0 (5,441,000) 0
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 0 0 0 12,000
Amortization of loan premium 0 0 0 0
FASB origination costs 0 12,000 0 12,000
Paid-in-kind interest 181,000 188,000 528,000 682,000
Gross loans, ending balance 93,735,000 72,088,000 93,735,000 72,088,000
Bank Holding Company Accounting [Member] | Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 14,152,000 16,514,000 14,046,000 37,768,000
Loan originations 152,000 0 396,000 0
Principal payments, sales, maturities, and recoveries (331,000) (1,449,000) (126,000) (5,663,000)
Net recoveries (charge-offs) 0 265,000 (75,000) (10,529,000)
Transfer to loan collateral in process of foreclosure, net 0 (397,000) (268,000) (5,027,000)
Amortization of origination costs 0 0 0 (2,000)
Amortization of loan premium 0 0 0 (1,615,000)
FASB origination costs 0 1,000 0 2,000
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 13,973,000 14,934,000 13,973,000 14,934,000
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 593,000 70,000 90,000 24,000
Loan originations 19,428,000 2,969,000 34,267,000 7,339,000
Principal payments, sales, maturities, and recoveries (19,248,000) (2,944,000) (33,584,000) (7,268,000)
Net recoveries (charge-offs) 0 0 0 0
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 0 0 0 0
Amortization of loan premium 0 0 0 0
FASB origination costs 0 0 0 0
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance $ 773,000 $ 95,000 $ 773,000 $ 95,000
[1] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[2] As of September 30, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $252.5 million, some of which may represent collection opportunities for the Company.
[3] Excludes loan premiums of $0.1 million and $34.3 million of capitalized loan origination costs.
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance $ 59,152 $ 46,946 $ 50,166 $ 57,548
Total charge-offs (13,171) (3,978) (27,139) (27,075)
Total recoveries 5,507 4,817 17,462 14,975
Net recoveries (charge-offs) [1] (7,664) 839 (9,677) (12,100)
Provision (benefit) for loan losses 10,047 (337) 21,046 2,000
Allowance for loan losses - ending balance [2] 61,535 47,448 61,535 47,448
Recreation [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     32,435  
Total charge-offs (7,534) (2,313) (17,675) (10,038)
Total recoveries 3,348 2,648 10,473 8,704
Allowance for loan losses - ending balance 40,768   40,768  
Home Improvement [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     7,356  
Total charge-offs (1,780) (523) (3,948) (1,990)
Total recoveries 713 763 1,857 1,753
Allowance for loan losses - ending balance 10,208   10,208  
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     1,141  
Total charge-offs (3,857) 0 (5,441) 0
Total recoveries 0 0 47 0
Allowance for loan losses - ending balance 963   963  
Medallion [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for loan losses - beginning balance     9,234  
Total charge-offs 0 (1,142) (75) (15,047)
Total recoveries 1,446 $ 1,406 5,085 $ 4,518
Allowance for loan losses - ending balance $ 9,596   $ 9,596  
[1] As of September 30, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $252.5 million, some of which may represent collection opportunities for the Company.
[2] As of September 30, 2022 and September 30, 2021, there were no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Jun. 30, 2022
Dec. 31, 2021
 [1]
Jun. 30, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 24,331,000 [1] $ 42,544,000 $ 24,331,000 [1] $ 42,544,000 $ 26,974,000 $ 37,430,000 $ 49,039,000 $ 54,560,000
Net charge-offs [2] 7,664,000 $ (839,000) 9,677,000 12,100,000        
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 $ 252,500,000   $ 252,500,000          
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.8 million as of September 30, 2022 and $7.4 million as of December 31, 2021
[2] As of September 30, 2022, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $252.5 million, some of which may represent collection opportunities for the Company.
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
 [1]
Jun. 30, 2021
Dec. 31, 2020
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 61,535 [1] $ 59,152 $ 50,166 $ 47,448 $ 46,946 $ 57,548
Percentage of Allowance 100.00%   100.00%      
Allowance as a Percent of Loan Category 3.32%   3.37%      
Allowance as a Percent of Nonaccrual 199.93%   141.03%      
Recreation [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 40,768   $ 32,435      
Percentage of Allowance 66.00%   64.00%      
Allowance as a Percent of Loan Category 3.48%   3.37%      
Allowance as a Percent of Nonaccrual 132.45%   91.18%      
Home Improvement [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 10,208   $ 7,356      
Percentage of Allowance 17.00%   15.00%      
Allowance as a Percent of Loan Category 1.77%   1.68%      
Allowance as a Percent of Nonaccrual 33.17%   20.68%      
Commercial [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 963   $ 1,141      
Percentage of Allowance 1.00%   2.00%      
Allowance as a Percent of Loan Category 1.03%   1.49%      
Allowance as a Percent of Nonaccrual 3.13%   3.21%      
Medallion [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 9,596   $ 9,234      
Percentage of Allowance 16.00%   19.00%      
Allowance as a Percent of Loan Category 68.68%   65.74%      
Allowance as a Percent of Nonaccrual 31.18%   25.96%      
[1] As of September 30, 2022 and September 30, 2021, there were no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Receivables [Abstract]    
Total nonaccrual loans $ 30,780 $ 35,571
Interest foregone quarter to date 504 466
Amount of foregone interest applied to principal in the quarter 101 114
Interest foregone year to date 1,670 1,620
Amount of foregone interest applied to principal year to date 301 432
Interest foregone life to date 3,251 3,623
Amount of foregone interest applied to principal life-to-date $ 1,178 $ 942
Percentage of nonaccrual loans to gross loan portfolio 1.70% 2.40%
Percentage of allowance for loan losses to nonaccrual loans 199.90% 141.00%
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,855,510 $ 1,488,924
Percentage of Nonperforming to Total 1.68% 2.42%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,824,361 $ 1,452,859
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 31,149 36,065
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,171,819 $ 961,320
Percentage of Nonperforming to Total 0.62% 0.58%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,164,526 $ 955,763
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 7,293 5,557
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 575,210 $ 436,772
Percentage of Nonperforming to Total 0.08% 0.03%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 574,722 $ 436,640
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 488 132
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 93,735 $ 76,696
Percentage of Nonperforming to Total 10.02% 21.29%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 84,340 $ 60,366
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 9,395 16,330
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 13,973 $ 14,046
Percentage of Nonperforming to Total 100.00% 100.00%
Medallion [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 13,973 14,046
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 773 $ 90
Percentage of Nonperforming to Total 0.00% 0.00%
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 773 $ 90
Strategic Partnership [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance $ 31,149   $ 31,149   $ 36,065
Unpaid principal balance, With related allowance 32,327   32,327   37,007
Related Allowance, With related allowance 10,819   10,819   10,168
Average Investment Recorded, With related allowance 37,099 $ 38,056 37,174 $ 38,819  
Interest Income Recognized, With related allowance 114 148 303 425  
Recreation [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 7,293   7,293   5,557
Unpaid principal balance, With related allowance 7,293   7,293   5,557
Related Allowance, With related allowance 251   251   188
Average Investment Recorded, With related allowance 6,903 4,423 6,895 4,641  
Interest Income Recognized, With related allowance 114 148 303 425  
Home Improvement [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 488   488   132
Unpaid principal balance, With related allowance 488   488   132
Related Allowance, With related allowance 9   9   2
Average Investment Recorded, With related allowance 491 161 459 151  
Interest Income Recognized, With related allowance 0 0 0 0  
Commercial [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 9,395   9,395   16,330
Unpaid principal balance, With related allowance 9,469   9,469   16,360
Related Allowance, With related allowance 963   963   1,141
Average Investment Recorded, With related allowance 13,494 16,926 13,577 16,531  
Interest Income Recognized, With related allowance 0 0 0 0  
Medallion [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 13,973   13,973   14,046
Unpaid principal balance, With related allowance 15,077   15,077   14,958
Related Allowance, With related allowance 9,596   9,596   $ 8,837
Average Investment Recorded, With related allowance 16,326 17,101 16,128 16,941  
Interest Income Recognized, With related allowance $ 0 $ 0 $ 0 $ 0  
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 42,860 $ 41,761
Total 1,821,095 [1] 1,461,622 [2]
Accruing 0 0
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 26,704 23,564
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 10,188 14,173
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,968 4,024
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,778,235 1,419,861
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 38,297 30,424
Total 1,134,989 [1] 931,859 [2]
Accruing 0 0
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 23,901 20,037
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 9,306 6,569
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,090 3,818
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,096,692 901,435
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,522 2,128
Total 577,626 [1] 438,931 [2]
Accruing 0 0
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,149 1,517
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 882 479
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 491 132
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 574,104 436,803
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 1,869
Total 93,734 [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 93,660 74,827
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 967 7,340
Total 13,973 [1] 14,046 [2]
Accruing 0 0
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 654 215
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 7,125
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 313 0
Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 13,006 6,706
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Total 773 [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 $ 773 $ 90
[1] Excludes loan premiums of $0.1 million and $34.3 million of capitalized loan origination costs.
[2] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Jun. 30, 2022
Receivables [Abstract]    
Loan premiums $ 0.5 $ 0.1
Capitalized loan origination costs $ 26.8  
v3.22.2.2
Loans and Allowance for Loan Losses - Additional Information (Detail)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2022
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Medallion
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]                
Weighted average loan-to-value ratio 330.00%   330.00%     295.00%    
Allowance for loan loss $ 61,535 [1] $ 47,448 [1] $ 61,535 [1] $ 47,448 [1] $ 59,152 $ 50,166 $ 46,946 $ 57,548
Medallion [Member]                
Financing Receivable Recorded Investment Past Due [Line Items]                
Number of loans modified as TDRs defaulted | TDR 0 1 2 11        
Allowance for loan loss $ 9,596   $ 9,596     9,234    
Recreation [Member]                
Financing Receivable Recorded Investment Past Due [Line Items]                
Number of loans modified as TDRs defaulted | TDR 34 8 56 47        
Allowance for loan loss $ 40,768   $ 40,768     $ 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       37        
TDR investment value   $ 500   $ 500        
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]                
Financing Receivable Recorded Investment Past Due [Line Items]                
Number of loans modified as TDRs defaulted | TDR     37 37        
TDR investment value $ 500 $ 400 $ 500 $ 400        
[1] As of September 30, 2022 and September 30, 2021, there were no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of TDRs (Detail)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Sep. 30, 2022
USD ($)
TDR
Sep. 30, 2021
USD ($)
TDR
Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of Loans | TDR 34 8 56 47
Pre- Modification Investment $ 549 $ 94 $ 825 $ 568
Post- Modification Investment $ 549 $ 55 $ 825 $ 525
Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Number of Loans | TDR 0 1 2 11
Pre- Modification Investment $ 0 $ 77 $ 252 $ 3,071
Post- Modification Investment $ 0 $ 77 $ 252 $ 3,071
v3.22.2.2
Loans and Allowance for Loan Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance $ 26,974 $ 49,039 $ 37,430 [1] $ 54,560
Transfer from loans, net 2,862 2,482 8,659 13,145
Sales (1,943) (3,194) (8,456) (7,713)
Cash payments received (2,243) (4,525) (9,496) (8,948)
Collateral valuation adjustments (1,319) (1,258) (3,806) (8,500)
Loans collateral in process of foreclosure - ending balance 24,331 [1] 42,544 24,331 [1] 42,544
Recreation [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 878 882 1,720 1,432
Transfer from loans, net 2,862 2,085 8,391 8,118
Sales (1,399) (1,554) (5,797) (5,842)
Cash payments received 0 0 0 0
Collateral valuation adjustments (1,225) (640) (3,198) (2,935)
Loans collateral in process of foreclosure - ending balance 1,116 773 1,116 773
Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 26,096 48,157 35,710 53,128
Transfer from loans, net 0 397 268 5,027
Sales (544) (1,640) (2,659) (1,871)
Cash payments received (2,243) (4,525) (9,496) (8,948)
Collateral valuation adjustments (94) (618) (608) (5,565)
Loans collateral in process of foreclosure - ending balance $ 23,215 $ 41,771 $ 23,215 $ 41,771
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.8 million as of September 30, 2022 and $7.4 million as of December 31, 2021
v3.22.2.2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
2023 $ 484,761  
2024 424,737  
2025 403,223  
2026 203,140  
2027 157,854  
Thereafter 107,750  
Long term debt [1] $ 1,781,465 $ 1,477,251
Interest Rate [2] 2.16%  
Deposits [Member]    
Debt Instrument [Line Items]    
2023 [3] $ 479,761  
2024 [3] 375,974  
2025 [3] 389,223  
2026 [3] 157,890  
2027 [3] 155,854  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,558,702 1,253,288
Interest Rate [2],[3] 1.63%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2023 $ 5,000  
2024 12,763  
2025 14,000  
2026 14,000  
2027 2,000  
Thereafter 21,000  
Long term debt [1] $ 68,763 69,963
Interest Rate [2] 2.94%  
Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2023 $ 0  
2024 36,000  
2025 0  
2026 31,250  
2027 0  
Thereafter 53,750  
Long term debt [1] $ 121,000 121,000
Interest Rate [2] 7.66%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
2023 $ 0  
2024 0  
2025 0  
2027 0  
Thereafter 33,000  
Long term debt [1] $ 33,000 $ 33,000
Interest Rate [2] 5.27%  
[1] Excludes deferred financing costs of $7.2 million and $7.1 million as of September 30, 2022 and December 31, 2021.
[2] Weighted average contractual rate as of September 30, 2022.
[3] Balance excludes $1.0 million and $0.8 million of strategic partner reserve deposits as of September 30, 2022 and December 31, 2021.
v3.22.2.2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Debt Disclosure [Abstract]    
Deferred costs $ 7.2 $ 7.1
Reserve Deposits $ 1.0 $ 0.8
v3.22.2.2
Funds Borrowed - Additional Information (Detail)
 3 Months Ended 9 Months Ended 12 Months Ended
Feb. 28, 2021
USD ($)
Jul. 31, 2020
USD ($)
Dec. 31, 2007
USD ($)
Jun. 30, 2007
USD ($)
shares
Sep. 30, 2022
USD ($)
shares
Sep. 30, 2021
USD ($)
Sep. 30, 2022
USD ($)
Deposit
shares
Sep. 30, 2021
USD ($)
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.         $ 9,200,000   $ 9,200,000     $ 8,700,000            
Maturity date Feb. 28, 2026 Sep. 24, 2024                            
Debt instrument face amount   $ 25,000,000.0                            
Issue of common stock | shares         28,529,993   28,529,993     28,124,629            
Preferred securities repurchased from a third party investor     $ 2,000,000.0                          
Long-term debt [1]         $ 219,448,000   $ 219,448,000     $ 219,973,000            
Gain on debt extinguishment         0 $ 0 0 $ 4,626,000                
Debenture Mature 2021 [Member]                                
Debt Instrument [Line Items]                                
Debt instrument commitments drawn         15,500,000   15,500,000                  
Long-term debt         8,500,000   $ 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   $ 33,000,000.0                  
Preferred Securities [Member] | 90 day LIBOR [Member]                                
Debt Instrument [Line Items]                                
Basis spread on variable rate             (3.75%)                  
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%   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   $ 9,500,000                  
Debt instrument outstanding amount         68,800,000   68,800,000                  
Debt instrument remaining amount         7,800,000   $ 7,800,000                  
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                     $ 8,500,000 $ 33,600,000 $ 6,000,000.0 $ 30,000,000.0  
Debt instrument interest rate Percentage 7.25%                       7.50%   8.25%  
Maturity date             2024                  
Maturity date             Dec. 31, 2027                  
Gain loss on sales of loans net                 $ 4,100,000              
Minimum [Member]                                
Debt Instrument [Line Items]                                
Time deposits         $ 250,000   $ 250,000                  
Brokerage [Member] | Maximum [Member]                                
Debt Instrument [Line Items]                                
Average brokerage fee percentage in relation to the maturity of deposits             0.15%                  
[1] Includes $3.3 million and $4.0 million of deferred financing costs as of September 30, 2022 and December 31, 2021. Refer to Note 5 for more details.
v3.22.2.2
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Sep. 30, 2022
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 110,763
Over three months through six months 128,094
Over six months through one year 240,904
Over one year 1,078,941
Total deposits $ 1,558,702
v3.22.2.2
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Leases [Abstract]        
Operating lease costs $ 580 $ 571 $ 1,759 $ 1,715
Operating cash flows from operating leases 684 481 1,764 1,780
Right-of-use asset obtained in exchange for lease liability $ (47) $ (41) $ (133) $ (76)
v3.22.2.2
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Sep. 30, 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 $ 9,699 $ 10,045
Other current liabilities $ 2,095 $ 2,159
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 8,580 $ 9,053
Total operating lease liabilities $ 10,675 $ 11,212
Weighted average remaining lease term 5 years 10 months 24 days 5 years 4 months 24 days
Weighted average discount rate 5.54% 5.54%
v3.22.2.2
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Leases [Abstract]    
Remainder of 2022 $ 638  
2023 2,518  
2024 2,526  
2025 2,505  
2026 2,440  
Thereafter 2,502  
Total lease payments 13,129  
Less imputed interest 2,454  
Total operating lease liabilities $ 10,675 $ 11,212
v3.22.2.2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (43,509) $ (43,894)
Provision for loan losses 10,360 11,057
Net operating loss carryforwards [1] 3,570 12,167
Accrued expenses, compensation, and other assets 4,042 2,579
Unrealized gains on other investments 1,700 2,176
Total deferred tax liability (23,837) (15,915)
Valuation allowance (2,295) (2,295)
Deferred tax liability, net $ (26,132) $ (18,210)
[1] As of September 30, 2022, the Company and its subsidiaries had an estimated $10.9 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 $1.3 million as of September 30, 2022.
v3.22.2.2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member]
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 10.9
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets $ 1.3
December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1.7
v3.22.2.2
Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Current        
Federal $ 693 $ 1,359 $ 2,181 $ 2,154
State 340 721 1,109 991
Deferred        
Federal 2,081 3,198 7,679 9,252
State 91 889 1,923 4,176
Net provision for income taxes $ 3,205 $ 6,167 $ 12,892 $ 16,573
v3.22.2.2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Tax Disclosure [Abstract]        
Statutory Federal income tax provision at 21% $ 2,613 $ 4,807 $ 10,142 $ 11,331
State and local income taxes, net of federal income tax 511 942 1,984 2,217
Change in state income tax accruals 0 0 0 1,833
Change in effective state income tax rates and accrual 0 110 0 1,479
Income attributable to non-controlling interest 0 (183) 0 (449)
Non deductible expenses 410 132 1,484 (81)
Other (329) 359 (718) 243
Total income tax provision $ 3,205 $ 6,167 $ 12,892 $ 16,573
v3.22.2.2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2022
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision percentage 21.00% 21.00%
v3.22.2.2
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Jun. 15, 2018
Sep. 30, 2022
Mar. 31, 2022
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Jun. 30, 2022
Dec. 31, 2020
Mar. 01, 2016
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant                 700,000    
Stock option outstanding   1,081,123 [1] 1,083,712 [1] 1,081,123 [1]   1,111,687 1,081,609 [1] 951,669      
Stock option exercisable   552,056   552,056   320,922          
Unvested shares under restricted common stock plan   529,067 529,593 529,067   790,765 529,228        
Number of shares outstanding, unvested restricted stock units   744,306   744,306              
Intrinsic value of options vested   $ 0.0   $ 300              
Restricted Stock Units [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares outstanding, unvested restricted stock units   191,931   191,931              
Number of shares outstanding, vested restricted stock units   60,992   60,992              
Number of shares, vested       (60,992)              
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   129,638   129,638              
Exercise price for grant per share   $ 6.75   $ 6.75   $ 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] 744,687 [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     383,925 383,925 163,561 258,120          
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 5,710,968   5,710,968              
Shares were rolled into the 2018 Plan   3,396,965   3,396,965              
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   130,939   130,939              
2015 Restricted Stock Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Unvested shares under restricted common stock plan   744,306   744,306              
2006 Stock Option Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Issuance of maximum number of shares approved                     800,000
Number of additional shares available for issuance   0   0              
2006 Stock Option Plan [Member] | Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Share based compensation, options term       10 years              
2015 Director Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant 258,334                 300,000  
2015 Director Plan [Member] | Non Employee Director One [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant 12,000                    
2015 Director Plan [Member] | Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Share based compensation, options term 10 years                    
Amended Director Plan [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant                   200,000  
Number of additional shares available for issuance   0   0              
Amended Director Plan [Member] | Director [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares available for grant   9,000   9,000              
Amended Director Plan [Member] | Maximum [Member]                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Share based compensation, options term       10 years              
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2022 and the related exercise price of the underlying options, was $0.6 million for outstanding options and $0.3 million for exercisable options as of September 30, 2022. The remaining contractual life was 7.3 years for outstanding options and 6.8 years for exercisable options at September 30, 2022
[2] The aggregate fair value of the restricted stock was $5.2 million as of September 30, 2022. The remaining vesting period was 2.4 years at September 30, 2022.
[3] The aggregate fair value of the restricted stock vested was $0 and $1.0 million for the three and nine months ended September 30, 2022 and was $1.1 million for the year ended December 31, 2021.
v3.22.2.2
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 9 Months Ended
Sep. 30, 2022
Sep. 30, 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
v3.22.2.2
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of options beginning balance 1,081,609 [1] 1,083,712 [1] 1,111,687 951,669
Granted 0 0 0 317,398
Cancelled (486) (2,103) (4,783) (113,310)
Exercised [2] 0 0 (23,192) (44,070)
Number of options ending balance 1,081,123 [1] 1,081,609 [1] 1,083,712 [1] 1,111,687
Options exercisable 552,056     320,922
Exercise price per share, lower range limit beginning balance $ 2.14 [1] $ 2.14 [1] $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance 12.55 [1] 12.55 [1] 12.55 12.55
Exercise price per share, granted 0   0 6.79
Exercise price per share, lower range limit ending balance 2.14 [1] 2.14 [1] 2.14 [1] 2.14
Exercise price per share, upper range limit ending balance 12.55 [1] 12.55 [1] 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 6.53 [1] 6.53 [1] 6.41 6.41
Weighted average exercise price, granted     0 6.79
Weighted average exercise price, cancelled 6.07 6.37 5.69 6.64
Weighted average exercise price, exercised [2]     6.53 5.58
Weighted average exercise price, ending balance 6.53 [1] 6.53 [1] 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 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 $ 7.25 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 September 30, 2022 and the related exercise price of the underlying options, was $0.6 million for outstanding options and $0.3 million for exercisable options as of September 30, 2022. The remaining contractual life was 7.3 years for outstanding options and 6.8 years for exercisable options at September 30, 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 $0 and less than $0.1 million for the three and nine months ended September 30, 2022 and was $0.2 million for the year ended December 31, 2021.
v3.22.2.2
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Sep. 30, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]      
Aggregate intrinsic value for option exercised $ 0.0 $ 0.1 $ 0.2
Aggregate intrinsic value of option outstanding 0.6 0.6  
Aggregate intrinsic value of option exercisable $ 0.3 $ 0.3  
Remaining contractual life of option outstanding   7 years 3 months 18 days  
Remaining contractual life of option exercisable   6 years 9 months 18 days  
v3.22.2.2
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, ending balance 744,306     744,306    
Grant price per share, cancelled, lower limit     $ 4.89      
Grant price per share, cancelled, upper limit   $ 7.25 $ 7.25      
Restricted Shares [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, beginning balance 744,687 [1] 745,270 [1] 493,326 [1] 493,326 [1] 416,140 416,140
Number of shares, granted     383,925 383,925 163,561 258,120
Number of shares, cancelled (381) (583) (5,747)     (21,940)
Number of shares, vested [2]     (126,234)     (158,994)
Number of shares, ending balance [1]   744,687 745,270     493,326
Grant price per share, lower range limit beginning balance $ 4.89 [1] $ 4.89 [1] $ 4.89 [1] $ 4.89 [1] $ 4.39 $ 4.39
Grant price per share, upper range limit beginning balance 8.40 [1] 8.40 [1] 8.40 [1] 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 4.89     4.89
Grant price per share, cancelled, upper limit 8.40 8.40 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 4.89 4.89 [1] 4.89 [1] 4.89   4.89 [1]
Grant price per share, upper range limit ending balance 8.40 8.40 [1] 8.40 [1] 8.40   8.40 [1]
Weighted average grant price beginning balance 7.34 [1] 7.34 [1] 6.87 [1] 6.87 [1] $ 6.24 6.24
Weighted average grant price, granted     7.68     7.38
Weighted average grant price, cancelled 7.76 7.58 7.33     5.98
Weighted average grant price, vested [2]     6.55     6.16
Weighted average grant price, ending balance $ 7.34 $ 7.34 [1] $ 7.34 [1] $ 7.34   $ 6.87 [1]
[1] The aggregate fair value of the restricted stock was $5.2 million as of September 30, 2022. The remaining vesting period was 2.4 years at September 30, 2022.
[2] The aggregate fair value of the restricted stock vested was $0 and $1.0 million for the three and nine months ended September 30, 2022 and was $1.1 million for the year ended December 31, 2021.
v3.22.2.2
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Sep. 30, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate fair value of restricted stock vested $ 0 $ 1,000 $ 1,100
Aggregate fair value of restricted stock outstanding $ 5,200 $ 5,200  
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Remaining vesting period of restricted stock   2 years 4 months 24 days  
v3.22.2.2
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
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 529,228 529,593 790,765  
Number of options, granted 0 0 0 317,398
Number of options, cancelled (161) (365) (4,200)  
Number of options, vested     (256,972)  
Number of options ending balance 529,067 529,228 529,593 790,765
Exercise price per share beginning balance, Lower limit $ 4.89 $ 4.89 $ 4.89  
Exercise price per share beginning balance, Upper limit 7.25 7.25 7.25  
Exercise price per share, Cancelled, Lower limit 4.89 4.89 4.89  
Exercise price per share, Cancelled, Upper limit 7.25   7.25  
Exercise price per share, Vested, Lower limit     4.89  
Exercise price per share, Vested, Upper limit   7.25 7.25  
Exercise price per share ending balance, Lower limit 4.89 4.89 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 7.25 7.25 7.25 7.25
Weighted average exercise price 6.52 6.52 6.52  
Weighted average exercise price, cancelled 5.39 5.78 5.48  
Weighted average exercise price, vested     6.55  
Weighted average exercise price $ 6.25 $ 6.52 $ 6.52 $ 6.52
v3.22.2.2
Segment Reporting - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2022
Segment
Dec. 31, 2021
Segment Reporting Disclosure [Line Items]    
Number of business segments 5  
Number of operating segments 4  
Capital ratios for operating segments 12.5 13.1
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 37.00%  
Swimming Pools [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 23.00%  
Windows [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 12.00%  
Solar Panels [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 9.00%  
Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 15.00%  
Texas [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 9.00%  
Florida [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 9.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Recreational Vehicles [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 58.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 20.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Trailers [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 13.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Midwest [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 51.00%  
v3.22.2.2
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss) $ 51,694,000     $ 41,497,000     $ 142,108,000 $ 115,953,000  
Total interest expense 9,654,000     7,426,000     25,258,000 23,718,000  
Net interest income (loss) 42,040,000     34,071,000     116,850,000 92,235,000  
Provision (benefit) for loan losses 10,047,000     (337,000)     21,046,000 2,000,000  
Net interest income (loss) after loss provision 31,993,000     34,408,000     95,804,000 90,235,000  
Sponsorship and race winnings 0     3,335,000     0 10,153,000  
Race team related expenses 0     (2,424,000)     0 (7,219,000)  
Other income (expense), net (19,640,000)     (12,428,000)     (47,600,000) (39,210,000)  
Income before income taxes 12,353,000     22,891,000     48,204,000 53,959,000  
Net income (loss) before taxes 12,353,000     22,891,000     48,204,000 53,959,000  
Income tax (provision) benefit (3,205,000)     (6,167,000)     (12,892,000) (16,573,000)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 9,148,000 $ 14,811,000 $ 11,353,000 16,724,000 $ 11,592,000 $ 9,071,000 35,312,000 37,386,000  
Net income (loss) after taxes 9,148,000           35,312,000    
Less: income attributable to the non-controlling interest 1,512,000     784,000     4,535,000 2,748,000  
Total net income attributable to Medallion Financial Corp. 7,636,000     15,940,000     30,777,000 34,638,000  
Balance Sheet Data                  
Total loans, net 1,793,975,000     1,372,233,000     1,793,975,000 1,372,233,000 $ 1,438,758,000
Total assets 2,199,541,000     1,805,234,000     2,199,541,000 1,805,234,000 $ 1,873,057,000
Total funds borrowed $ 1,782,465,000     $ 1,424,142,000     $ 1,782,465,000 $ 1,424,142,000  
Selected Financial Ratios                  
Return on average assets 1.68%     3.73%     2.33% 2.73%  
Return on average equity 10.03%     20.02%     13.05% 15.61%  
Return on average stockholders' equity 10.35%     24.38%       18.71%  
Interest yield 10.97%     11.55%     11.03% 11.56%  
Net interest margin 8.91%     9.48%     9.09% 9.19%  
Reserve coverage 3.32%     3.34%     3.32% 3.34%  
Delinquency status 0.33% [1]     0.29% [1]     0.33% [2] 0.29% [2]  
Charge-off (recovery) ratio 1.75% [3]     (0.38%) [4]     0.81% [4] 1.17%  
RPAC [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss)       $ 0       $ 0  
Total interest expense       38,000       113,000  
Net interest income (loss)       (38,000)       (113,000)  
Provision (benefit) for loan losses       0       0  
Net interest income (loss) after loss provision       (38,000)       (113,000)  
Sponsorship and race winnings       3,335,000       10,153,000  
Race team related expenses       (2,424,000)       (7,219,000)  
Other income (expense), net       (2,066,000)       (5,689,000)  
Income before income taxes       (1,193,000)       (2,868,000)  
Income tax (provision) benefit       299,000       720,000  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations       (894,000)       (2,148,000)  
Total net income attributable to Medallion Financial Corp.       (894,000)       (2,148,000)  
Balance Sheet Data                  
Total loans, net       0       0  
Total assets       30,969,000       30,969,000  
Total funds borrowed       $ 8,054,000       $ 8,054,000  
Selected Financial Ratios                  
Return on average assets       (11.28%)       (8.89%)  
Return on average equity       (11.08%)       (386.73%)  
Operating Segments [Member] | Consumer Lending [Member]                  
Balance Sheet Data                  
Total assets $ 1,145,380,000           $ 1,145,380,000    
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss) 36,539,000     $ 30,529,000     101,189,000 $ 86,857,000  
Total interest expense 5,003,000     2,305,000     12,700,000 7,962,000  
Net interest income (loss) 31,536,000     28,224,000     88,489,000 78,895,000  
Provision (benefit) for loan losses 7,182,000     916,000     15,536,000 5,546,000  
Net interest income (loss) after loss provision 24,354,000     27,308,000     72,953,000 73,349,000  
Sponsorship and race winnings       0       0  
Race team related expenses       0       0  
Other income (expense), net (7,178,000)     (8,856,000)     (21,549,000) (21,774,000)  
Income before income taxes 17,176,000     18,452,000     51,404,000 51,575,000  
Income tax (provision) benefit (4,499,000)     (4,752,000)     (13,747,000) (13,281,000)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 12,677,000     13,700,000     37,657,000 38,294,000  
Total net income attributable to Medallion Financial Corp. 12,677,000     13,700,000     37,657,000 38,294,000  
Balance Sheet Data                  
Total loans, net 1,131,051,000     902,234,000     1,131,051,000 902,234,000  
Total assets 1,145,380,000     916,109,000     1,145,380,000 916,109,000  
Total funds borrowed $ 928,194,000     $ 712,474,000     $ 928,194,000 $ 712,474,000  
Selected Financial Ratios                  
Return on average assets 4.54%     6.09%     4.86% 6.08%  
Return on average equity 27.07%     30.46%     27.16% 30.39%  
Interest yield 13.19%     13.78%     13.26% 14.05%  
Net interest margin 11.38%     12.74%     11.60% 12.76%  
Reserve coverage 3.48%     3.38%     3.48% 3.38%  
Delinquency status 0.45% [1]     0.34% [1]     0.45% [2] 0.34% [2]  
Charge-off (recovery) ratio 1.51% [3]     (0.15%) [4]     0.94% [4] 0.22%  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss) $ 11,689,000     $ 8,586,000     $ 31,977,000 $ 24,732,000  
Total interest expense 2,093,000     958,000     5,060,000 3,309,000  
Net interest income (loss) 9,596,000     7,628,000     26,917,000 21,423,000  
Provision (benefit) for loan losses 2,041,000     369,000     4,943,000 1,575,000  
Net interest income (loss) after loss provision 7,555,000     7,259,000     21,974,000 19,848,000  
Sponsorship and race winnings       0       0  
Race team related expenses       0       0  
Other income (expense), net (3,163,000)     (3,437,000)     (9,269,000) (7,989,000)  
Income before income taxes 4,392,000     3,822,000     12,705,000 11,859,000  
Income tax (provision) benefit (1,152,000)     (951,000)     (3,398,000) (3,054,000)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 3,240,000     2,871,000     9,307,000 8,805,000  
Total net income attributable to Medallion Financial Corp. 3,240,000     2,871,000     9,307,000 8,805,000  
Balance Sheet Data                  
Total loans, net 565,002,000     392,278,000     565,002,000 392,278,000  
Total assets 569,603,000     405,439,000     569,603,000 405,439,000  
Total funds borrowed $ 461,595,000     $ 296,509,000     $ 461,595,000 $ 296,509,000  
Selected Financial Ratios                  
Return on average assets 2.36%     2.89%     2.48% 3.20%  
Return on average equity 14.06%     14.43%     13.91% 16.02%  
Interest yield 8.57%     9.04%     8.67% 9.37%  
Net interest margin 7.03%     8.03%     7.30% 8.11%  
Reserve coverage 1.77%     1.63%     1.77% 1.63%  
Delinquency status 0.08% [1]     0.04% [1]     0.08% [2] 0.04% [2]  
Charge-off (recovery) ratio 0.78% [3]     0.25% [4]     0.57% [4] 0.09%  
Operating Segments [Member] | Commercial Lending [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss) $ 2,493,000     $ 2,055,000     $ 6,701,000 $ 4,920,000  
Total interest expense 780,000     662,000     2,287,000 1,950,000  
Net interest income (loss) 1,713,000     1,393,000     4,414,000 2,970,000  
Provision (benefit) for loan losses 2,100,000     0     5,234,000 0  
Net interest income (loss) after loss provision (387,000)     1,393,000     (820,000) 2,970,000  
Sponsorship and race winnings       0       0  
Race team related expenses       0       0  
Other income (expense), net 2,214,000     636,000     282,000 107,000  
Income before income taxes 2,601,000     2,029,000     1,102,000 3,077,000  
Income tax (provision) benefit (700,000)     (510,000)     (295,000) (773,000)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 1,901,000     1,519,000     807,000 2,304,000  
Total net income attributable to Medallion Financial Corp. (1,901,000)     1,519,000     (807,000) 2,304,000  
Balance Sheet Data                  
Total loans, net 92,772,000     70,232,000     92,772,000 70,232,000  
Total assets 102,367,000     92,257,000     102,367,000 92,257,000  
Total funds borrowed $ 82,956,000     $ 73,806,000     $ 82,956,000 $ 73,806,000  
Selected Financial Ratios                  
Return on average assets 7.32%     6.60%     1.05% 3.68%  
Return on average equity (43.65%)     32.99%     (6.08%) 18.38%  
Interest yield 10.82%     12.04%     10.55% 10.56%  
Net interest margin 7.43%     8.16%     6.95% 6.37%  
Reserve coverage 1.03%     0.00%     1.03% 0.00%  
Delinquency status 0.08% [1]     0.10% [1]     0.08% [2] 0.10% [2]  
Charge-off (recovery) ratio (16.74%) [3]     0.00% [4]     8.49% [4] 0.00%  
Operating Segments [Member] | Medallion Lending [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss) $ 92,000     $ 1,000     $ 469,000 $ (1,543,000)  
Total interest expense 133,000     2,009,000     426,000 5,903,000  
Net interest income (loss) 41,000     (2,008,000)     43,000 (7,446,000)  
Provision (benefit) for loan losses (1,275,000)     (1,944,000)     (4,819,000) (5,931,000)  
Net interest income (loss) after loss provision 1,234,000     (64,000)     4,862,000 (1,515,000)  
Sponsorship and race winnings       0       0  
Race team related expenses       0       0  
Other income (expense), net (2,686,000)     2,073,000     (4,252,000) (1,228,000)  
Income before income taxes 1,452,000     2,009,000     610,000 (2,743,000)  
Income tax (provision) benefit (394,000)     (504,000)     (163,000) 689,000  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 1,058,000     1,505,000     447,000 (2,054,000)  
Total net income attributable to Medallion Financial Corp. (1,058,000)     1,505,000     447,000 (2,054,000)  
Balance Sheet Data                  
Total loans, net 4,377,000     5,538,000     4,377,000 5,538,000  
Total assets 27,860,000     93,683,000     27,860,000 93,683,000  
Total funds borrowed $ 22,577,000     $ 74,941,000     $ 22,577,000 $ 74,941,000  
Selected Financial Ratios                  
Return on average assets 13.00%     6.12%     1.30% (2.52%)  
Return on average equity (74.61%)     30.62%     6.99% (12.60%)  
Interest yield 8.12%     0.09%     13.61% (23.55%)  
Net interest margin 3.62%     (139.64%)     1.25% (113.66%)  
Reserve coverage 68.68%     49.98%     68.68% 49.98%  
Delinquency status 2.24% [1]     5.42% [1]     2.24% [2] 5.42% [2]  
Charge-off (recovery) ratio (127.68%) [3]     (43.01%) [4]     (145.36%) [4] 143.94%  
Intersegment Eliminations [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income (loss) $ 881,000     $ 326,000     $ 1,772,000 $ 987,000  
Total interest expense 1,645,000     1,454,000     4,785,000 4,481,000  
Net interest income (loss) (764,000)     (1,128,000)     (3,013,000) (3,494,000)  
Provision (benefit) for loan losses 1,000     322,000     152,000 810,000  
Net interest income (loss) after loss provision (763,000)     (1,450,000)     (3,165,000) (4,304,000)  
Sponsorship and race winnings       0       0  
Race team related expenses       0       0  
Other income (expense), net (4,399,000)     (778,000)     (12,248,000) (2,637,000)  
Income before income taxes (5,162,000)     (2,228,000)     (15,413,000) (6,941,000)  
Income tax (provision) benefit 1,352,000     251,000     4,121,000 (874,000)  
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (3,810,000)     (1,977,000)     (11,292,000) (7,815,000)  
Total net income attributable to Medallion Financial Corp. (3,810,000)     (1,977,000)     (11,292,000) (7,815,000)  
Balance Sheet Data                  
Total loans, net 773,000     1,951,000     773,000 1,951,000  
Total assets 354,331,000     266,777,000     354,331,000 266,777,000  
Total funds borrowed $ 287,143,000     $ 258,358,000     $ 287,143,000 $ 258,358,000  
Selected Financial Ratios                  
Return on average assets (4.10%)     (2.65%)     4.24% (3.68%)  
Return on average equity (24.41%)     (19.79%)     (25.15%) (27.18%)  
[1] Loans 90 days or more past due.
[2] Loans 90 days or more past due.
[3] Negative balances indicate net recoveries for the period.
[4] Negative balances indicate net recoveries for the period.
v3.22.2.2
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2027
Future minimum payments $ 12.1
Other commitment $ 1.8
v3.22.2.2
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 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
v3.22.2.2
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Financial assets    
Equity investments $ 10,670 $ 9,726
Investment securities 48,354 44,772
Loans receivable 1,855,510 1,488,924
Carrying Amount [Member]    
Financial assets    
Cash, cash equivalents and federal funds sold [1] 98,202 124,484
Equity investments 10,670 9,726
Investment securities 48,354 44,772
Loans receivable 1,793,975 1,438,758
Accrued interest receivable [2] 11,959 10,621
Equity securities, fair value [3] 1,721 1,950
Financial liabilities    
Funds borrowed 1,782,465 1,478,001
Accrued interest payable [2] 3,432 3,395
Fair Value Recurring [Member]    
Financial assets    
Cash, cash equivalents and federal funds sold [1] 98,202 124,484
Equity investments 10,670 9,726
Investment securities 48,354 44,772
Loans receivable 1,793,975 1,438,758
Accrued interest receivable [2] 11,959 10,621
Equity securities, fair value [3] 1,721 1,950
Financial liabilities    
Funds borrowed 1,782,465 1,478,001
Accrued interest payable [2] $ 3,432 $ 3,395
[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of September 30, 2022 and December 31, 2021. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
v3.22.2.2
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Sep. 30, 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
v3.22.2.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Assets    
Interest-bearing deposits $ 1,300  
Fair Value Recurring [Member]    
Assets    
Interest-bearing deposits 1,250 $ 1,250
Available for sale investment securities 48,354 44,772
Equity securities, fair value [1] 1,721 1,950
Total 51,325 [2] 47,972 [3]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Available for sale investment securities 0  
Equity securities, fair value 1,721 1,950
Total 49,604 [2] 1,950 [3]
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Available for sale investment securities 48,354 44,772
Equity securities, fair value 0  
Total $ 1,721 [2] $ 46,022 [3]
[1] Included within other assets on the balance sheet.
[2] Total unrealized losses of $1.5 million and $4.6 million, net of tax, was included in accumulated other comprehensive loss for the three and nine months ended September 30, 2022 related to these assets.
[3] Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.
v3.22.2.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 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 $ (1,500) $ 141 $ (27) $ (4,600) $ 1,000
v3.22.2.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Assets            
Impaired loans $ 19,600   $ 20,500      
Mortgage Loans in Process of Foreclosure, Amount 24,331 [1] $ 26,974 37,430 [1] $ 42,544 $ 49,039 $ 54,560
Fair Value, Nonrecurring            
Assets            
Equity investments 10,670   9,726      
Impaired loans 30,780   35,571      
Mortgage Loans in Process of Foreclosure, Amount 24,331   37,430      
Total 65,781   82,727      
Fair Value, Nonrecurring | Level 3 [Member]            
Assets            
Equity investments 10,670   9,726      
Impaired loans 30,780   35,571      
Mortgage Loans in Process of Foreclosure, Amount 24,331   37,430      
Total $ 65,781   $ 82,727      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.8 million as of September 30, 2022 and $7.4 million as of December 31, 2021
v3.22.2.2
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 9 Months Ended 12 Months Ended
Sep. 30, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Jun. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value $ 19,600,000 $ 20,500,000        
Loan collateral in process of foreclosure $ 24,331,000 [1] $ 37,430,000 [1] $ 26,974,000 $ 42,544,000 $ 49,039,000 $ 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 0.0000 0.0150        
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Impaired loans value 552 0.0600        
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value [2] $ 0.0 $ 0.0        
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value [2] 79,500 79,500        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 3,600 3,600 [3]        
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 40,100 49,800 [3]        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 0.0 [4] 0.0 [2]        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 79,500 [4] 79,500 [2]        
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 10,397,000 9,453,000        
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 273,000 273,000        
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 30,780,000 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 $ 24,331,000 $ 37,430,000        
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $7.8 million as of September 30, 2022 and $7.4 million as of December 31, 2021
[2] Represents amount net of liquidation costs.
[3] Relates to the recreation portfolio.
[4] Represents amount net of liquidation costs.
v3.22.2.2
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 9 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Sep. 30, 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