MEDALLION FINANCIAL CORP, 10-K filed on 10 Mar 23
 | XBRL Documents
v3.22.4
Document and Entity Information - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Mar. 03, 2023
Document and Entity Information [Line Items]    
Document Type 10-K  
Amendment Flag false  
Document Annual Report true  
Document Transition Report false  
Document Period End Date Dec. 31, 2022  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus FY  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Well-known Seasoned Issuer No  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   23,319,836
Entity Public Float $ 124,245,741  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
ICFR Auditor Attestation Flag true  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-37747  
Entity Tax Identification Number 04-3291176  
Entity Address, Address Line One 437 MADISON AVENUE, 38th Floor  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10022  
City Area Code 212  
Local Phone Number 328-2100  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Definitive Proxy Statement for its 2023 Annual Meeting of Shareholders, for which a Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2022, are incorporated by reference into Part III of this Form 10-K.

  
Auditor Firm ID 339  
Auditor Name Mazars USA LLP  
Auditor Location New York, New York  
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents [1] $ 33,172 $ 64,482
Federal funds sold 72,426 60,002
Investment securities 48,492 44,772
Equity investments 10,293 9,726
Loans 1,916,953 1,488,924
Allowance for loan losses [2] (63,845) (50,166)
Net loans receivable 1,853,108 1,438,758
Goodwill 150,803 150,803
Loan collateral in process of foreclosure [3] 21,819 37,430
Intangible assets, net 22,035 23,480
Property, equipment, and right-of-use lease asset, net 13,168 11,762
Accrued interest receivable 12,613 10,621
Income tax receivable 2,095 833
Other assets 19,855 20,388
Total assets 2,259,879 1,873,057
Liabilities    
Deposits [4] 1,607,110 1,250,880
Long-Term Debt [5] 214,320 219,973
Deferred tax liabilities, net 26,753 18,210
Operating lease liabilities 8,408 9,053
Accrued interest payable 4,790 3,395
Short-Term Debt 5,000 0
Accounts payable and accrued expenses [6] 22,974 15,718
Total liabilities 1,889,355 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 - 28,663,827 shares at December 31, 2022 and 28,124,629 shares at December 31, 2021 issued) 287 281
Additional paid in capital 283,663 280,038
Treasury stock (5,602,154 shares at December 31, 2022 and 2,951,243 December 31, 2021) (45,538) (24,919)
Accumulated other comprehensive income (loss) (3,349) 1,034
Retained earnings 66,673 30,606
Total stockholders’ equity 301,736 287,040
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 370,524 355,828
Total liabilities and equity $ 2,259,879 $ 1,873,057
Number of shares outstanding 23,061,673 25,173,386
Book value per share $ 13.08 $ 11.40
[1] Includes no restricted cash requirement as of December 31, 2022 and restricted cash of $3.0 million as of December 31, 2021.
[2] As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $7.5 million and $7.4 million as of December 31, 2022 and 2021.
[4] Includes $3.8 million and $3.2 million of deferred financing costs as of December 31, 2022 and 2021. Refer to Note 5 for more details.
[5] Includes $3.2 million and $4.0 million of deferred financing costs as of December 31, 2022 and 2021. Refer to Note 5 for more details.
[6] Includes the short-term portion of lease liabilities of $2.2 million and $2.2 million as of December 31, 2022 and 2021. Refer to Note 6 for more details.
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued 28,663,827 28,124,629
Treasury stock, shares 5,602,154 2,951,243
Restricted cash $ 0.0 $ 3.0
Loan collateral in process of foreclosure, financed sales collateral to third parties 7.5 7.4
Short term lease liabilities 2.2 2.2
Deposits [Member]    
Deferred financing costs 3.8 3.2
Long-Term Debt [Member]    
Deferred financing costs $ 3.2 $ 4.0
v3.22.4
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest and fees on loans $ 195,074 $ 157,990 $ 143,701
Interest and dividends on investment securities 1,547 976 1,208
Medallion lease income 0 0 53
Total interest income [1] 196,621 158,966 144,962
Interest on deposits 22,666 17,543 22,330
Interest on long-term debt 13,387 12,907 9,815
Interest on short-term borrowings 132 690 2,006
Total interest expense [2] 36,185 31,140 34,151
Net interest income (loss) 160,436 127,826 110,811
Provision for loan losses 30,059 4,622 69,817
Net interest income (loss) after loss provision 130,377 123,204 40,994
Other income (loss)      
Gain on sale of loans and medallion 5,448 1,788 1,019
Gain (loss) on equity investments 2,779 17,379 (2,985)
Write-down of loan collateral in process of foreclosure (657) (5,592) (24,523)
Gain on extinguishment of debt 0 4,626 0
Sponsorship and race winnings, net 0 12,567 20,042
Other income 1,956 798 511
Total other income (loss), net 9,526 31,566 (5,936)
Other expenses      
Salaries and employee benefits 31,130 31,591 28,172
Professional fees 13,054 5,311 8,047
Loan servicing fees 8,371 7,013 6,737
Collection costs 5,314 5,279 5,454
Rent expense 2,378 2,454 2,833
Regulatory fees 2,418 1,872 1,822
Amortization of intangible assets 1,445 1,445 1,445
Race team related expenses 0 9,559 8,366
Other expenses 7,943 8,375 9,163
Total other expenses 72,053 72,899 72,039
Income (loss) before income taxes 67,850 81,871 (36,981)
Income tax (provision) benefit (17,963) (24,217) 10,074
Net income (loss) after taxes 49,887 57,654 (26,907)
Less: income attributable to the non-controlling interest 6,047 3,546 7,876
Total net income (loss) attributable to Medallion Financial Corp. $ 43,840 $ 54,108 $ (34,783)
Basic net income (loss) per share $ 1.86 $ 2.20 $ (1.42)
Diluted net income( loss) per share $ 1.83 $ 2.17 $ (1.42)
Weighted average common shares outstanding      
Basic 23,583,049 24,599,804 24,445,452
Diluted 23,927,342 24,943,169 24,445,452
[1] Included in interest and investment income is $0.7 million, $0.8 million, and $1.2 million of paid-in-kind interest for the years ended December 31, 2022, 2021, and 2020.
[2] Average borrowings outstanding were $1.7 billion, $1.4 billion and $1.3 billion as of December 31, 2022, 2021, and 2020 and the related average borrowing costs were 2.17%, 2.28%, and 2.71% for the years ended December 31, 2022, 2021, and 2020.
v3.22.4
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Interest paid in kind $ 0.7 $ 0.8 $ 1.2
Average borrowings outstanding $ 1.7 $ 1.4 $ 1.3
Average borrowing costs rate 2.17% 2.28% 2.71%
v3.22.4
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) after taxes $ 49,887 $ 57,654 $ (26,907)
Other comprehensive income (loss), net of tax (4,383) (978) 1,013
Total comprehensive income (loss) 45,504 56,676 (25,894)
Less: comprehensive income attributable to the non-controlling interest 6,047 3,546 7,876
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 39,457 $ 53,130 $ (33,770)
v3.22.4
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2019 $ 334,468 $ 276 $ 275,511 $ (24,919) $ 11,281 $ 999 $ 263,148 $ 71,320
Balance, shares at Dec. 31, 2019   27,597,802   (2,951,243)        
Net income (loss) (26,907)       (34,783)   (34,783) 7,876
Distributions to non-controlling interest (6,043)             (6,043)
Stock-based compensation $ 2,030 $ 2 2,028       2,030  
Issuance of restricted stock, net, shares   229,408            
Forfeiture of restricted stock, net, shares   (8,755)            
Issuance of restricted stock units, net, shares   10,416            
Exercise of stock options,shares [1] 0              
Net change in unrealized gains on investments, net of tax $ 1,013         1,013 1,013  
Ending balance at Dec. 31, 2020 304,561 $ 278 277,539 $ (24,919) (23,502) 2,012 231,408 73,153
Ending balance, shares at Dec. 31, 2020   27,828,871   (2,951,243)        
Net income (loss) 57,654       54,108   54,108 3,546
Distributions to non-controlling interest (6,516)             (6,516)
Disposition of RPAC (1,395)             (1,395)
Stock-based compensation 2,261 $ 3 2,258       2,261  
Issuance of restricted stock, net, shares   258,120            
Forfeiture of restricted stock, net, shares   (21,940)            
Issuance of restricted stock units, net, shares   15,508            
Exercise of stock options,value $ 241   241       241  
Exercise of stock options,shares 44,070 [1] 44,070            
Net change in unrealized gains on investments, net of tax $ (978)         (978) (978)  
Ending balance at Dec. 31, 2021 $ 355,828 $ 281 280,038 $ (24,919) 30,606 1,034 287,040 68,788
Ending balance, shares at Dec. 31, 2021 25,173,386 28,124,629   (2,951,243)        
Net income (loss) $ 49,887       43,840   43,840 6,047
Distributions to non-controlling interest (6,047)             (6,047)
Stock-based compensation 3,476 $ 6 3,470       3,476  
Issuance of restricted stock, net, shares   522,475            
Forfeiture of restricted stock, net, shares   (29,359)            
Issuance of restricted stock units, net, shares   22,337            
Exercise of stock options,value $ 155   155       155  
Exercise of stock options,shares 23,745 [1] 23,745            
Purchase of common stock (in Shares)       (2,650,911)        
Purchase of common stock $ (20,619)     $ (20,619)     (20,619)  
Dividend paid on common stock (7,773)       (7,773)   (7,773)  
Net change in unrealized gains on investments, net of tax (4,383)         (4,383) (4,383)  
Ending balance at Dec. 31, 2022 $ 370,524 $ 287 $ 283,663 $ (45,538) $ 66,673 $ (3,349) $ 301,736 $ 68,788
Ending balance, shares at Dec. 31, 2022 23,061,673 28,663,827   (5,602,154)        
[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 $0.1 million, $0.2 million, and $0 for the years ended December 31, 2022, 2021, and 2020.
v3.22.4
Consolidated Statement of Changes in Stockholders Equity (Parenthetical)
Dec. 31, 2022
$ / shares
Statement of Stockholders' Equity [Abstract]  
Dividends payable amount per share $ 0.08
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes $ 49,887 $ 57,654 $ (26,907)
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
Provision for loan losses 30,059 4,622 69,817
Paid-in-kind interest income (724) (814) (1,188)
Depreciation and amortization 5,229 6,519 7,714
Amortization of origination fees, net 8,707 7,996 6,022
(Decrease) increase in deferred and other tax liabilities, net 7,281 18,327 (8,776)
Net change in value of loan collateral in process of foreclosure 5,738 8,966 31,926
Net realized (gains) losses on sale of investments (2,779) (17,380) 4,305
Stock-based compensation expense 3,476 2,261 2,030
Gain on extinguishment of debt 0 (4,626) 0
Increase in accrued interest receivable (1,992) (283) (1,676)
Gain on disposition of RPAC 0 (715) 0
Decrease (increase) in other assets (3,919) (5,354) 2,223
Decrease (increase) in accounts payable and accrued expenses 6,382 2,694 (7,206)
(Decrease) Increase in accrued interest payable 1,395 (1,141) 422
Net cash provided by operating activities 108,740 78,726 78,706
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (1,000,785) (760,790) (506,106)
Proceeds from principal receipts, sales, and maturities of loans 535,067 464,448 321,831
Purchases of investments (20,713) (19,354) (15,580)
Proceeds from disposition of RPAC, net 0 17,676 0
Proceeds from principal receipts, sales, and maturities of investments 14,762 35,647 15,399
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 22,664 24,052 13,499
Net cash used for investing activities (449,005) (238,321) (170,957)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from time deposits and funds borrowed 839,104 805,577 668,577
Repayments of time deposits and funds borrowed (483,671) (627,263) (526,064)
Treasury stock repurchased (20,619) 0 0
Distributions to non-controlling interests (6,047) (6,516) (6,043)
Cash dividend paid on common stock (7,543) 0 0
Proceeds from the exercise of stock options 155 241 0
Net cash provided by financing activities 321,379 172,039 136,470
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (18,886) 12,444 44,219
Cash and cash equivalents, beginning of period 124,484 [1] 112,040 [1] 67,821
Cash and cash equivalents, end of period [1] 105,598 124,484 112,040
SUPPLEMENTAL INFORMATION      
Cash paid during the period for interest 31,976 29,867 31,204
Cash paid during the period for income taxes 8,848 5,479 104
NON-CASH INVESTING      
Loans transferred to loan collateral in process of foreclosure, net 12,791 15,888 47,254
Loans transferred to other foreclosed property $ 0 $ 0 $ 1,800
[1] Includes federal funds sold.
v3.22.4
Organization of Medallion Financial Corp. and its Subsidiaries
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization of Medallion Financial Corp. and its Subsidiaries

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

Medallion Financial Corp., or the Company, is a 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, or “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 deposit 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 the Company's 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 December 31, 2022, are not available to pay obligations of its affiliates or any other party, and the assets of affiliates or any other party are not available to pay obligations of Fin Trust.
v3.22.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

Principles of Consolidation

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

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

 

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. As of December 31, 2022, cash also includes $1.3 million of interest-bearing funds deposited in other banks, that are mainly callable, with original terms of 3 to 5 years.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 14 and 15 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.3 million and $9.7 million as of December 31, 2022 and 2021, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2022, cumulative impairment of $2.4 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 December 31, 2022 and 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 following table presents the unrealized portion related to the equity securities held as of December 31, 2022.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(226

)

 

$

(50

)

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

 

 

—

 

 

 

—

 

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

 

$

(226

)

 

$

(50

)

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million and $0.3 million as of December 31, 2022 and 2021, and $0.1 million, $0.1 million, and $0.3 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed.

 

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of December 31, 2022 and 2021, net loan origination costs were $34.9 million and $26.1 million. Net amortization to income for the years ended December 31, 2022, 2021, and 2020 were $8.7 million, $8.0 million, and $6.0 million.

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer loan portfolio has different characteristics, typified by a larger number of smaller dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. Consumer loans are placed on nonaccrual when they become 90 days past due, or earlier if they enter bankruptcy, and are charged-off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $8.9 million or 0.47% of the total loan portfolio as of December 31, 2022, as compared to $4.0 million, or 0.28% as of 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 these 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 $19.5 million and $20.5 million at December 31, 2022 and 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 December 31, 2022 and 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 December 31, 2022 and 2021, the Company had intangible assets of $22.0 million and $23.5 million. During 2021, the Company disposed of its investment in RPAC Racing LLC, or RPAC, resulting in the removal of $26.2 million of intangible assets. The Company recognized $1.4 million of amortization expense on the intangible assets for each of the years ended December 31, 2022 and 2021. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0 and $0.5 million were outstanding as of December 31, 2022 and 2021, and of which $0.5 million, $2.2 million, and $3.0 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022 and 2021, concluding that there was no impairment of these assets.

The following table details of the intangible assets as of December 31, 2022 and 2021:

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Brand-related intellectual property

 

$

16,775

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,260

 

 

 

5,606

 

Total intangible assets

 

$

22,035

 

 

$

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 $0.4 million, $0.3 million, and $0.4 million for the years ended December 31, 2022, 2021, and 2020.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2.6 million, $2.4 million, and $2.6 million for the years ended December 31, 2022, 2021, and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $7.0 million and $7.1 million as of December 31, 2022 and 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 (Loss) Per Share (EPS)

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

 

 

Year Ended December 31,

 

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

 

2022

 

 

2021

 

 

2020

 

Net income (loss) available to common stockholders

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

Weighted average common shares outstanding applicable
   to basic EPS

 

 

23,583,049

 

 

 

24,599,804

 

 

 

24,445,452

 

Effect of dilutive stock options

 

 

67,825

 

 

 

92,602

 

 

 

—

 

Effect of restricted stock grants

 

 

276,469

 

 

 

250,763

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,927,342

 

 

 

24,943,169

 

 

 

24,445,452

 

Basic income (loss) per share

 

$

1.86

 

 

$

2.20

 

 

$

(1.42

)

Diluted income (loss) per share

 

 

1.83

 

 

 

2.17

 

 

 

(1.42

)

Potentially dilutive common shares excluded from the above calculations aggregated 347,963 shares, 421,190, and 934,003 shares as of December 31, 2022, 2021, and 2020.

Stock Compensation

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

During the years ended December 31, 2022, 2021, and 2020, the Company issued 522,475, 258,120, and 229,408 restricted shares of stock-based compensation awards, issued 0, 317,398, and 444,557 shares of other stock-based compensation awards, and issued 129,638, 16,803, and 47,156 restricted stock units; and recognized $3.5 million, $2.3 million, and $2.0 million, or $0.15, $0.09, and $0.08 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2022, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $3.9 million, which is expected to be recognized over the next 9 quarters.

 

Regulatory Capital

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

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

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

 

 

December 31,

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

2022

 

 

2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

242,049

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

310,837

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

334,913

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,917,904

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,888,530

 

 

 

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

 

 

 

12.8

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.5

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.7

 

 

 

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 December 31, 2022 and 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 December 31, 2022 and 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 adopted Topic 326 on January 1, 2023. The Company anticipates the adoption will increase in the Company's allowance for loan losses (allowance for credit losses under CECL) by $11.6 million for consumer loans and a $2.2 million increase with respect to the Company's commercial loans. The medallion loan allowance will not be affected. With the adoption of CECL, the Company expects that there will be earlier recognition of credit losses, including a near-term effect of larger loan loss provisions, compared to the incurred losses accounting standard.

 

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 Securities and Exchange Commission, or the 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 of 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 was effective upon the adoption of ASU 2016-13.

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 of 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.
v3.22.4
Investment Securities
 12 Months Ended
Dec. 31, 2022
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of December 31, 2022 and 2021.

December 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

43,286

 

 

$

—

 

 

$

(4,933

)

 

$

38,353

 

State and municipalities

 

 

11,015

 

 

 

13

 

 

 

(889

)

 

 

10,139

 

Total

 

$

54,301

 

 

$

13

 

 

$

(5,822

)

 

$

48,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

35,469

 

 

$

672

 

 

$

(403

)

 

$

35,738

 

State and municipalities

 

 

9,025

 

 

 

60

 

 

 

(51

)

 

 

9,034

 

Total

 

$

44,494

 

 

$

732

 

 

$

(454

)

 

$

44,772

 

The amortized cost and estimated market value of investment securities as of December 31, 2022 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

December 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

9,625

 

 

 

9,222

 

Due after five years through ten years

 

 

9,303

 

 

 

8,170

 

Due after ten years

 

 

35,373

 

 

 

31,100

 

Total

 

$

54,301

 

 

$

48,492

 

 

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

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2022
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(731

)

 

$

12,321

 

 

$

(4,202

)

 

$

26,023

 

State and municipalities

 

 

(286

)

 

 

4,628

 

 

 

(603

)

 

 

3,502

 

Total

 

$

(1,017

)

 

$

16,949

 

 

$

(4,805

)

 

$

29,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2021
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(403

)

 

$

16,330

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(9

)

 

 

2,124

 

 

 

(42

)

 

 

1,956

 

Total

 

$

(412

)

 

$

18,454

 

 

$

(42

)

 

$

1,956

 

As of December 31, 2022 and 2021, the Company had 57 and 15 securities 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.
v3.22.4
Loans and Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2022
Text Block [Abstract]  
Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES

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

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,183,512

 

 

 

62

%

 

$

961,320

 

 

 

65

%

Home improvement

 

 

626,399

 

 

 

33

 

 

 

436,772

 

 

 

29

 

Commercial

 

 

92,899

 

 

 

5

 

 

 

76,696

 

 

 

5

 

Medallion

 

 

13,571

 

 

 

1

 

 

 

14,046

 

 

 

1

 

Strategic partnership

 

 

572

 

 

*

 

 

 

90

 

 

*

 

Total gross loans

 

 

1,916,953

 

 

 

100

%

 

 

1,488,924

 

 

 

100

%

Allowance for loan losses

 

 

(63,845

)

 

 

 

 

 

(50,166

)

 

 

 

Total net loans

 

$

1,853,108

 

 

 

 

 

$

1,438,758

 

 

 

 

(*) Less than 1%.

The following tables show the activity of the gross loans for the years ended December 31, 2022 and 2021.


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

513,062

 

 

 

392,543

 

 

 

28,172

 

 

 

605

 

 

 

49,526

 

 

 

983,908

 

Principal payments, sales, maturities, and recoveries

 

 

(259,326

)

 

 

(196,203

)

 

 

(6,610

)

 

 

(419

)

 

 

(49,044

)

 

 

(511,602

)

Charge-offs

 

 

(27,055

)

 

 

(6,393

)

 

 

(6,083

)

 

 

(314

)

 

 

—

 

 

 

(39,845

)

Transfer to loan collateral in process of foreclosure, net

 

 

(12,444

)

 

 

—

 

 

 

—

 

 

 

(347

)

 

 

—

 

 

 

(12,791

)

Amortization of origination costs

 

 

(10,470

)

 

 

1,763

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,707

)

Amortization of loan premium

 

 

(213

)

 

 

(322

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(535

)

FASB origination costs, net

 

 

18,638

 

 

 

(1,761

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,877

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

724

 

 

 

—

 

 

 

—

 

 

 

724

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

 

 


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

441,921

 

 

 

258,038

 

 

 

36,415

 

 

 

—

 

 

 

10,997

 

 

 

747,371

 

Principal payments, sales, maturities, and recoveries

 

 

(252,293

)

 

 

(153,044

)

 

 

(25,873

)

 

 

(1,363

)

 

 

(10,931

)

 

 

(443,504

)

Charge-offs

 

 

(14,712

)

 

 

(2,949

)

 

 

—

 

 

 

(15,287

)

 

 

—

 

 

 

(32,948

)

Transfer to loan collateral in process of foreclosure, net

 

 

(10,431

)

 

 

—

 

 

 

—

 

 

 

(5,457

)

 

 

—

 

 

 

(15,888

)

Amortization of origination costs

 

 

(9,678

)

 

 

1,671

 

 

 

13

 

 

 

(2

)

 

 

—

 

 

 

(7,996

)

Amortization of loan premium

 

 

(221

)

 

 

(346

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,182

)

FASB origination costs, net

 

 

14,048

 

 

 

(631

)

 

 

—

 

 

 

2

 

 

 

—

 

 

 

13,419

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

814

 

 

 

—

 

 

 

—

 

 

 

814

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2022 and 2021.

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Allowance for loan losses – beginning balance

 

$

50,166

 

 

$

57,548

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(27,055

)

 

 

(14,712

)

Home improvement

 

 

(6,393

)

 

 

(2,949

)

Commercial

 

 

(6,083

)

 

 

—

 

Medallion

 

 

(314

)

 

 

(15,287

)

Total charge-offs

 

 

(39,845

)

 

 

(32,948

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

13,785

 

 

 

12,131

 

Home improvement

 

 

2,761

 

 

 

2,398

 

Commercial

 

 

47

 

 

 

—

 

Medallion

 

 

6,872

 

 

 

6,415

 

Total recoveries

 

 

23,465

 

 

 

20,944

 

Net charge-offs (1)

 

 

(16,380

)

 

 

(12,004

)

Provision for loan losses

 

 

30,059

 

 

 

4,622

 

Allowance for loan losses – ending balance (2)

 

$

63,845

 

 

$

50,166

 
(1)
As of December 31, 2022, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $244.2 million, some of which represent collection opportunities for the Company.
(2)
As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.

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

December 31, 2022
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

41,966

 

 

 

66

%

 

 

3.55

%

 

 

130.60

%

Home improvement

 

 

11,340

 

 

 

18

 

 

 

1.81

 

 

 

35.29

 

Commercial

 

 

1,049

 

 

 

1

 

 

 

1.13

 

 

 

3.26

 

Medallion

 

 

9,490

 

 

 

15

 

 

 

69.93

 

 

 

29.53

 

Total

 

$

63,845

 

 

 

100

%

 

 

3.33

%

 

 

198.69

%

 

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

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Total nonaccrual loans

 

$

32,133

 

 

$

35,571

 

 

$

61,767

 

Interest foregone for the year

 

 

1,267

 

 

 

1,620

 

 

 

3,311

 

Amount of foregone interest applied to principal for the year

 

 

375

 

 

 

432

 

 

 

602

 

Interest foregone life-to-date

 

 

2,419

 

 

 

3,623

 

 

 

5,252

 

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

 

 

1,204

 

 

 

942

 

 

 

792

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

1.7

%

 

 

2.4

%

 

 

5.0

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

198.7

%

 

 

141.0

%

 

 

93.0

%

 

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

December 31, 2022
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,173,846

 

 

$

9,666

 

 

$

1,183,512

 

 

 

0.82

%

Home improvement

 

 

625,820

 

 

 

579

 

 

 

626,399

 

 

 

0.09

 

Commercial

 

 

84,165

 

 

 

8,734

 

 

 

92,899

 

 

 

9.40

 

Medallion

 

 

—

 

 

 

13,571

 

 

 

13,571

 

 

 

100.00

 

Strategic partnership

 

 

572

 

 

 

—

 

 

 

572

 

 

 

—

 

Total

 

$

1,884,403

 

 

$

32,550

 

 

$

1,916,953

 

 

 

1.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

9,666

 

 

$

9,666

 

 

$

343

 

 

$

5,557

 

 

$

5,557

 

 

$

188

 

Home improvement

 

 

579

 

 

 

579

 

 

 

10

 

 

 

132

 

 

 

132

 

 

 

2

 

Commercial

 

 

8,734

 

 

 

8,823

 

 

 

963

 

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

Medallion

 

 

13,571

 

 

 

14,686

 

 

 

9,490

 

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

Total nonperforming loans with an allowance

 

$

32,550

 

 

$

33,754

 

 

$

10,806

 

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

9,093

 

 

$

401

 

 

$

5,618

 

 

$

515

 

Home improvement

 

 

514

 

 

 

4

 

 

 

108

 

 

 

—

 

Commercial

 

 

13,381

 

 

 

—

 

 

 

16,816

 

 

 

93

 

Medallion

 

 

16,019

 

 

 

—

 

 

 

17,538

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

39,007

 

 

$

405

 

 

$

40,080

 

 

$

608

 

 

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

December 31, 2022

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

31,781

 

 

$

11,877

 

 

$

7,365

 

 

$

51,023

 

 

$

1,095,072

 

 

$

1,146,095

 

 

$

—

 

Home improvement

 

 

3,266

 

 

 

1,256

 

 

 

579

 

 

 

5,101

 

 

 

623,776

 

 

 

628,877

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

93,396

 

 

 

93,470

 

 

 

—

 

Medallion

 

 

142

 

 

 

393

 

 

 

885

 

 

 

1,420

 

 

 

12,151

 

 

 

13,571

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

572

 

 

 

572

 

 

 

—

 

Total

 

$

35,189

 

 

$

13,526

 

 

$

8,903

 

 

$

57,618

 

 

$

1,824,967

 

 

$

1,882,585

 

 

$

—

 
(1)
Excludes $34.9 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 339% and 295% as of December 31, 2022 and 2021.

The following table shows the TDRs which the Company entered into during the year ended December 31, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

80

 

 

 

1,203

 

 

 

1,203

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

As of December 31, 2022, no medallion loans and two commercial loans were modified as TDRs in the previous 12 months. Modified medallion loans and commercial loans had a respective investment value of $0.9 million and $5.3 million. As of December 31, 2022, 63 recreation loans modified as TDRs were in default and had an investment value of $0.9 million.

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

56

 

 

 

668

 

 

 

585

 

Medallion loans

 

 

11

 

 

 

3,071

 

 

 

3,071

 

As of December 31, 2021, one medallion loan modified as TDRs in the previous 12 months were in default and had an investment value of $0.2 million. As of December 31, 2021, 31 recreation loans modified as TDRs were in default and had an investment value of $0.3 million.

 

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the years ended December 31, 2022 and 2021.

Year Ended December 31, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion(1)

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

12,444

 

 

 

347

 

 

 

12,791

 

Sales

 

 

(7,707

)

 

 

(2,668

)

 

 

(10,375

)

Cash payments received

 

 

—

 

 

 

(12,289

)

 

 

(12,289

)

Collateral valuation adjustments

 

 

(5,081

)

 

 

(657

)

 

 

(5,738

)

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 
(1)
As of December 31, 2022, medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets.

Year Ended December 31, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion(1)

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

Transfer from loans, net

 

 

10,431

 

 

 

5,457

 

 

 

15,888

 

Sales

 

 

(6,951

)

 

 

(2,928

)

 

 

(9,879

)

Cash payments received

 

 

—

 

 

 

(14,173

)

 

 

(14,173

)

Collateral valuation adjustments

 

 

(3,192

)

 

 

(5,774

)

 

 

(8,966

)

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 
(1)
As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets.
v3.22.4
Funds Borrowed
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

December 31, 2022(1)

 

 

December 31, 2021(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

508,218

 

 

$

419,560

 

 

$

384,720

 

 

$

149,329

 

 

$

147,845

 

 

$

—

 

 

$

1,609,672

 

 

$

1,253,288

 

 

 

1.91

%

Retail and privately placed notes

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

53,750

 

 

 

—

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

5,000

 

 

 

7,762

 

 

 

14,000

 

 

 

14,000

 

 

 

2,000

 

 

 

25,750

 

 

 

68,512

 

 

 

69,963

 

 

 

3.08

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

6.86

 

Total

 

$

513,218

 

 

$

463,322

 

 

$

398,720

 

 

$

194,579

 

 

$

203,595

 

 

$

58,750

 

 

$

1,832,184

 

 

$

1,477,251

 

 

 

2.43

%
(1)
Excludes deferred financing costs of $7.0 million and $7.1 million as of December 31, 2022 and 2021.
(2)
Weighted average contractual rate as of December 31, 2022.
(3)
Balance excludes $1.3 million and $0.8 million of strategic partner reserve deposits as of December 31, 2022 and 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 December 31, 2022 and 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 December 31, 2022 and 2021, the Bank had $12.4 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 December 31, 2022.

(Dollars in thousands)

 

December 31, 2022

 

Three months or less

 

$

152,517

 

Over three months through six months

 

 

117,179

 

Over six months through one year

 

 

238,522

 

Over one year

 

 

1,101,454

 

Total deposits

 

$

1,609,672

 

 

(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, of which the fee was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33.5 million in principal into a new loan by the SBA to FSVC in the principal amount of $34.0 million, or the SBA Loan. In connection with the SBA Loan, FSVC executed a Note, or the SBA Note, with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34.0 million. The SBA Loan bears interest at a rate of 3.25% and all remaining unpaid principal and interest are due on April 30, 2024, the maturity date. As of December 31, 2022, there were $4.8 million commitments available, and $68.5 million was outstanding, including $2.8 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 December 31, 2022, $20.2 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 (4.77% at December 31, 2022) plus 2.13%. With the cessation of LIBOR in 2023, interest will be calculated using the Secured Overnight Financing Rate (SOFR) adjusted by a relevant spread adjustment of approximately 43 basis points, plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the preferred securities were repurchased from a third-party investor. As of December 31, 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 and minimum net worth. As of December 31, 2022, the Company did not have any borrowing agreements that contained any such restrictions
v3.22.4
Leases
 12 Months Ended
Dec. 31, 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 years ended December 31, 2022, 2021, and 2020.

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Operating lease costs

 

$

2,216

 

 

$

2,287

 

 

$

2,384

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

2,378

 

 

 

2,454

 

 

 

2,821

 

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

 

 

(187

)

 

 

(118

)

 

 

251

 

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

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Operating lease right-of-use assets

 

$

9,723

 

 

$

10,045

 

Other current liabilities

 

 

2,239

 

 

 

2,159

 

Operating lease liabilities

 

 

8,408

 

 

 

9,053

 

Total operating lease liabilities

 

 

10,647

 

 

 

11,212

 

Weighted average remaining lease term

 

5.5 years

 

 

5.4 years

 

Weighted average discount rate

 

 

5.66

%

 

 

5.54

%

The following table presents maturities of the lease liabilities as of December 31, 2022.

(Dollars in thousands)

 

 

 

2023

 

$

2,518

 

2024

 

 

2,526

 

2025

 

 

2,505

 

2026

 

 

2,440

 

2027

 

 

1,212

 

Thereafter

 

 

1,290

 

Total lease payments

 

 

12,491

 

Less imputed interest

 

 

1,844

 

Total operating lease liabilities

 

$

10,647

 
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

(7) INCOME TAXES

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

The following table sets forth the significant components of the Company's deferred and other tax assets and liabilities as of December 31, 2022 and 2021.

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Goodwill and other intangibles

 

$

(43,397

)

 

$

(43,894

)

Provision for loan losses

 

 

9,945

 

 

 

11,057

 

Net operating loss carryforwards (1)

 

 

3,730

 

 

 

12,167

 

Accrued expenses, compensation, and other assets

 

 

3,819

 

 

 

2,579

 

Unrealized gains on other investments

 

 

1,445

 

 

 

2,176

 

Total deferred tax liability

 

 

(24,458

)

 

 

(15,915

)

Valuation allowance

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(26,753

)

 

$

(18,210

)
(1)
As of December 31, 2022, the Company had an estimated $11.1 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 $1.4 million of December 31, 2022.

The following table shows the components of the Company's tax (provision) benefit for the years ended December 31, 2022, 2021, and 2020.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(5,213

)

 

$

(3,550

)

 

$

—

 

State

 

 

(560

)

 

 

(1,563

)

 

 

(260

)

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

(8,090

)

 

 

(13,686

)

 

 

7,702

 

State

 

 

(4,100

)

 

 

(5,418

)

 

 

2,632

 

Net (provision) benefit for income taxes

 

$

(17,963

)

 

$

(24,217

)

 

$

10,074

 

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2022, 2021, and 2020.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Statutory Federal income tax (provision) benefit at 21%

 

$

(14,249

)

 

$

(17,193

)

 

$

7,766

 

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

 

 

(2,787

)

 

 

(3,363

)

 

 

1,518

 

Valuation allowance against net operating losses

 

 

—

 

 

 

(1,833

)

 

 

1,228

 

Change in effective state income tax rates and accrual

 

 

811

 

 

 

(1,691

)

 

 

(405

)

Income attributable to non-controlling interest

 

 

—

 

 

 

628

 

 

 

460

 

Non-deductible expenses

 

 

(1,987

)

 

 

(178

)

 

 

(453

)

Other

 

 

249

 

 

 

(587

)

 

 

(40

)

Total income tax (provision) benefit

 

$

(17,963

)

 

$

(24,217

)

 

$

10,074

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of December 31, 2022.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2019 through the present are the more significant filings that are open for examination.

v3.22.4
Stock Options and Restricted Stock
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock Options and Restricted Stock

(8) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020, and subsequently on April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further 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 3,295,129 remained issuable as of December 31, 2022. Awards under the 2018 Plan are subject to certain limitations as set forth in the 2018 Plan, which will terminate when all shares of common stock authorized for delivery have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2018 Plan, whichever occurs first.

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

 

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

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

Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2022, 1,061,849 options on the Company’s common stock were outstanding under the Company’s plans, of which 548,426 options were exercisable. Additionally, there were 857,288 unvested shares under the Company’s restricted common stock plan, 114,946 unvested restricted stock units and 61,642 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 were $3.50, and $3.09 per share for the years ended December 31, 2021 and 2020. There were no options granted during the year ended December 31, 2022. The following assumption categories are used to determine the value of any option grants.

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Risk free interest rate

 

 

—

 

 

 

0.97

%

 

 

1.23

%

Expected dividend yield

 

 

—

 

 

 

—

 

 

 

—

 

Expected life of option in years (1)

 

 

—

 

 

 

6.25

 

 

 

6.25

 

Expected volatility (2)

 

 

—

 

 

 

53.98

%

 

 

51.03

%
(1)
Expected life is calculated using the simplified method.
(2)
The Company determines its expected volatility based on the Company's historical volatility.

 

The following table presents the activity for the stock option programs for the years ended December 31, 2022, 2021, and 2020.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2019

 

 

550,040

 

 

$

2.14 - 13.53

 

 

$

6.58

 

Granted

 

 

444,557

 

 

 

4.89 - 6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

 

2.22 - 13.53

 

 

 

6.91

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020 (2)

 

 

951,669

 

 

 

2.14 - 12.55

 

 

 

6.41

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(113,310

)

 

 

4.89 - 11.53

 

 

 

6.64

 

Exercised (1)

 

 

(44,070

)

 

 

5.21 - 7.25

 

 

 

5.58

 

Outstanding at December 31, 2021 (2)

 

 

1,111,687

 

 

 

2.14-12.55

 

 

 

6.41

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(26,093

)

 

 

4.89 - 12.55

 

 

 

7.08

 

Exercised (1)

 

 

(23,745

)

 

 

4.89 - 7.25

 

 

 

6.51

 

Outstanding at December 31, 2022 (2)

 

 

1,061,849

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

178,307

 

 

$

2.14-12.55

 

 

$

6.33

 

December 31, 2021

 

 

320,922

 

 

 

2.14-12.55

 

 

 

6.53

 

December 31, 2022

 

 

548,426

 

 

 

2.14 - 9.38

 

 

 

6.51

 
(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 $0.1 million, $0.2 million, and $0 for the years ended December 31, 2022, 2021, and 2020.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $0.7 million for outstanding options and $0.4 million for exercisable options as of December 31, 2022. The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022.

The following table presents the activity for the restricted stock programs for the years ended December 31, 2022, 2021, and 2020.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2019

 

 

284,879

 

 

$

3.95 - 7.25

 

$

6.01

 

Granted

 

 

229,408

 

 

 

4.89 - 6.68

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

 

3.95 - 7.25

 

 

6.93

 

Vested (1)

 

 

(89,392

)

 

 

3.95 - 6.55

 

 

5.37

 

Outstanding at December 31, 2020

 

 

416,140

 

 

 

4.39 - 7.25

 

 

6.24

 

Granted

 

 

258,120

 

 

 

6.79 - 8.40

 

 

7.38

 

Cancelled

 

 

(21,940

)

 

 

4.89 - 7.25

 

 

5.98

 

Vested (1)

 

 

(158,994

)

 

 

4.39 - 7.25

 

 

6.16

 

Outstanding at December 31, 2021 (2)

 

 

493,326

 

 

 

4.89 - 7.25

 

 

6.87

 

Granted

 

 

522,475

 

 

 

6.86 -7.68

 

 

7.46

 

Cancelled

 

 

(29,373

)

 

 

4.89 - 8.40

 

 

7.32

 

Vested (1)

 

 

(129,140

)

 

 

4.89 - 7.25

 

 

6.53

 

Outstanding at December 31, 2022(2)

 

 

857,288

 

 

$

4.89 - 7.25

 

$

7.27

 
(1)
The aggregate fair value of the restricted stock vested was $1.0 million, $1.1 million, and $0.6 million for the years ended December 31, 2022, 2021, and 2020.
(2)
The aggregate fair value of the restricted stock was $6.1 million as of December 31, 2022. The remaining vesting period was 2.17 years at December 31, 2022.

During the year ended December 31, 2022, the Company granted 129,638 restricted stock units (RSUs) with a vesting date of June 14, 2023 at a grant price of $6.75 and during the year ended December 31, 2021 granted 16,803 RSUs with a vesting date of 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 December 31, 2022, there were 176,588 RSUs outstanding, including 61,642 which had previously vested.

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2022.

 

 

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

 

 

(20,370

)

 

 

4.89 - 7.25

 

 

 

6.34

 

Vested

 

 

(256,972

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at December 31, 2022

 

 

513,423

 

 

$

4.89 - 7.25

 

 

$

6.52

 

The intrinsic value of the options vested was $0.3 million for the year ended December 31, 2022 and less than $0.1 million for the years ended December 31, 2021 and 2020.

v3.22.4
Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

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

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank and loans are made to borrowers residing nationwide. The highest concentrations of recreation loans are in Texas and Florida at 16% and 11% of loans outstanding and with no other states over 10% as of December 31, 2022. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 58%, 19%, and 14% of the segment portfolio with no other product lines exceeding 10% as of December 31, 2022. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being roofs, swimming pools, and windows at 37%, 23%, and 12%, with no other product lines exceeding 10%. The highest concentrations of home improvement loans are in Texas and Florida at 10% and 10%, of loans outstanding and with no other states over 10% as of December 31, 2022. The commercial lending segment focuses on enterprise wide industries, including manufacturing and various other industries, in which 44% 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 December 31, 2022.

The Company's corporate and other investments segment is a non-operating segment that includes items not allocated to the Company's 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 table presents segment data as of and for the year ended December 31, 2022.

Year Ended December 31, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

139,145

 

 

$

44,703

 

 

$

9,348

 

 

$

632

 

 

$

2,793

 

 

$

196,621

 

Total interest expense

 

 

17,932

 

 

 

7,697

 

 

 

3,040

 

 

 

508

 

 

 

7,008

 

 

 

36,185

 

Net interest income (loss)

 

 

121,213

 

 

 

37,006

 

 

 

6,308

 

 

 

124

 

 

 

(4,215

)

 

 

160,436

 

Provision (benefit) for loan losses

 

 

22,802

 

 

 

7,616

 

 

 

5,963

 

 

 

(6,474

)

 

 

152

 

 

 

30,059

 

Net interest income (loss) after loss provision

 

 

98,411

 

 

 

29,390

 

 

 

345

 

 

 

6,598

 

 

 

(4,367

)

 

 

130,377

 

Other expense, net

 

 

(30,463

)

 

 

(13,500

)

 

 

(1,604

)

 

 

(6,179

)

 

 

(10,781

)

 

 

(62,527

)

Net income (loss) before taxes

 

 

67,948

 

 

 

15,890

 

 

 

(1,259

)

 

 

419

 

 

 

(15,148

)

 

 

67,850

 

Income tax (provision) benefit

 

 

(17,989

)

 

 

(4,207

)

 

 

333

 

 

 

(111

)

 

 

4,011

 

 

 

(17,963

)

Net income (loss) after taxes

 

 

49,959

 

 

 

11,683

 

 

 

(926

)

 

 

308

 

 

 

(11,137

)

 

 

49,887

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,047

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

43,840

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

1,141,546

 

 

$

615,059

 

 

$

91,850

 

 

$

4,081

 

 

$

572

 

 

$

1,853,108

 

Total assets

 

 

1,154,680

 

 

 

618,923

 

 

 

101,447

 

 

 

24,648

 

 

 

360,181

 

 

 

2,259,879

 

Total funds borrowed

 

 

936,789

 

 

 

502,131

 

 

 

82,304

 

 

 

19,997

 

 

 

292,214

 

 

 

1,833,435

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.71

%

 

 

2.23

%

 

 

(0.90

)%

 

 

0.74

%

 

 

(3.12

)%

 

 

2.40

%

Return on average equity

 

 

26.83

 

 

 

12.72

 

 

 

(5.28

)

 

 

4.03

 

 

 

(18.62

)

 

 

13.74

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

14.92

 

Interest yield

 

 

13.28

 

 

 

8.64

 

 

 

10.78

 

 

 

14.05

 

 

N/A

 

 

 

11.06

 

Net interest margin

 

 

11.57

 

 

 

7.16

 

 

 

7.28

 

 

 

2.76

 

 

N/A

 

 

 

9.05

 

Reserve coverage

 

 

3.55

 

 

 

1.81

 

 

 

1.13

 

 

 

69.93

 

 

N/A

 

 

 

3.33

 

Delinquency status(1)

 

 

0.64

 

 

 

0.09

 

 

 

0.08

 

 

 

6.52

 

 

N/A

 

 

 

0.47

 

Charge-off ratio(2)

 

 

1.27

 

 

 

0.70

 

 

 

6.96

 

 

 

(145.76

)

 

N/A

 

 

 

0.99

 

 

(1)
Loans 90 days or more past due.
(2)
Negative balances indicate recoveries for the period

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the year ended December 31, 2021.

Year Ended December 31, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC (2)

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

118,305

 

 

$

34,204

 

 

$

6,592

 

 

$

(1,483

)

 

$

—

 

 

$

1,348

 

 

$

158,966

 

Total interest expense

 

 

9,993

 

 

 

4,153

 

 

 

2,720

 

 

 

5,914

 

 

 

546

 

 

 

7,814

 

 

 

31,140

 

Net interest income (loss)

 

 

108,312

 

 

 

30,051

 

 

 

3,872

 

 

 

(7,397

)

 

 

(546

)

 

 

(6,466

)

 

 

127,826

 

Provision (benefit) for loan losses

 

 

7,671

 

 

 

2,750

 

 

 

—

 

 

 

(7,752

)

 

 

—

 

 

 

1,953

 

 

 

4,622

 

Net interest income (loss) after loss provision

 

 

100,641

 

 

 

27,301

 

 

 

3,872

 

 

 

355

 

 

 

(546

)

 

 

(8,419

)

 

 

123,204

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,567

 

 

 

—

 

 

 

12,567

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,559

)

 

 

—

 

 

 

(9,559

)

Other income (expense), net

 

 

(30,156

)

 

 

(11,640

)

 

 

3,101

 

 

 

(1,991

)

 

 

(5,108

)

 

 

1,453

 

 

 

(44,341

)

Net income (loss) before taxes

 

 

70,485

 

 

 

15,661

 

 

 

6,973

 

 

 

(1,636

)

 

 

(2,646

)

 

 

(6,966

)

 

 

81,871

 

Income tax (provision) benefit

 

 

(18,699

)

 

 

(4,155

)

 

 

(1,850

)

 

 

433

 

 

 

(1,498

)

 

 

1,552

 

 

 

(24,217

)

Net income (loss) after taxes

 

 

51,786

 

 

 

11,506

 

 

 

5,123

 

 

 

(1,203

)

 

 

(4,144

)

 

 

(5,414

)

 

 

57,654

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,546

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

54,108

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

928,885

 

 

$

429,416

 

 

$

73,713

 

 

$

4,812

 

 

$

—

 

 

$

1,932

 

 

$

1,438,758

 

Total assets

 

 

896,223

 

 

 

371,781

 

 

 

103,631

 

 

 

42,011

 

 

 

—

 

 

 

459,411

 

 

 

1,873,057

 

Total funds borrowed

 

 

710,616

 

 

 

294,786

 

 

 

82,169

 

 

 

69,221

 

 

 

—

 

 

 

328,358

 

 

 

1,485,150

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.00

%

 

 

3.01

%

 

 

5.85

%

 

 

(1.15

)%

 

 

20.35

%

 

 

(1.89

)%

 

 

3.33

%

Return on average equity

 

 

30.01

 

 

 

15.04

 

 

 

29.23

 

 

 

(5.75

)

 

 

885.29

 

 

 

(13.62

)

 

 

17.64

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

21.24

 

Interest yield

 

 

13.94

 

 

 

9.30

 

 

 

10.41

 

 

 

(18.77

)

 

N/A

 

 

N/A

 

 

 

11.48

 

Net interest margin

 

 

12.76

 

 

 

8.17

 

 

 

6.12

 

 

 

(93.60

)

 

N/A

 

 

N/A

 

 

 

9.26

 

Reserve coverage

 

 

3.37

 

 

 

1.68

 

 

 

1.49

 

 

 

65.74

 

 

N/A

 

 

N/A

 

 

 

3.37

 

Delinquency status(1)

 

 

0.41

 

 

 

0.03

 

 

 

0.10

 

 

 

—

 

 

N/A

 

 

N/A

 

 

 

0.28

 

Charge-off ratio

 

 

0.30

 

 

 

0.15

 

 

 

—

 

 

 

95.40

 

 

N/A

 

 

N/A

 

 

 

0.85

 
(1)
Loans 90 days or more past due.
(2)
The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale.

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the year ended December 31, 2020.

Year Ended December 31, 2020

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

110,706

 

 

$

27,273

 

 

$

6,926

 

 

$

(1,518

)

 

$

—

 

 

$

1,575

 

 

$

144,962

 

Total interest expense

 

 

13,013

 

 

 

5,699

 

 

 

2,538

 

 

 

3,610

 

 

 

163

 

 

 

9,128

 

 

 

34,151

 

Net interest income (loss)

 

 

97,693

 

 

 

21,574

 

 

 

4,388

 

 

 

(5,128

)

 

 

(163

)

 

 

(7,553

)

 

 

110,811

 

Provision for loan losses

 

 

23,736

 

 

 

3,778

 

 

 

—

 

 

 

42,276

 

 

 

—

 

 

 

27

 

 

 

69,817

 

Net interest income (loss) after loss provision

 

 

73,957

 

 

 

17,796

 

 

 

4,388

 

 

 

(47,404

)

 

 

(163

)

 

 

(7,580

)

 

 

40,994

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,042

 

 

 

—

 

 

 

20,042

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,366

)

 

 

—

 

 

 

(8,366

)

Other expense, net

 

 

(27,341

)

 

 

(9,611

)

 

 

(3,196

)

 

 

(30,366

)

 

 

(7,973

)

 

 

(11,164

)

 

 

(89,651

)

Net income (loss) before taxes

 

 

46,616

 

 

 

8,185

 

 

 

1,192

 

 

 

(77,770

)

 

 

3,540

 

 

 

(18,744

)

 

 

(36,981

)

Income tax (provision) benefit

 

 

(12,004

)

 

 

(2,108

)

 

 

(299

)

 

 

19,520

 

 

 

(889

)

 

 

5,854

 

 

 

10,074

 

Net income (loss) after taxes

 

 

34,612

 

 

 

6,077

 

 

 

893

 

 

 

(58,250

)

 

 

2,651

 

 

 

(12,890

)

 

 

(26,907

)

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,876

 

Total net loss attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(34,783

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

765,338

 

 

$

328,876

 

 

$

62,037

 

 

$

12,725

 

 

$

—

 

 

$

3,314

 

 

$

1,172,290

 

Total assets

 

 

777,605

 

 

 

340,494

 

 

 

80,622

 

 

 

124,554

 

 

 

33,711

 

 

 

285,425

 

 

 

1,642,411

 

Total funds borrowed

 

 

621,735

 

 

 

272,284

 

 

 

65,924

 

 

 

98,636

 

 

 

8,689

 

 

 

244,987

 

 

 

1,312,255

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.59

%

 

 

2.07

%

 

 

1.07

%

 

 

(33.21

)%

 

 

7.98

%

 

 

(5.06

)%

 

 

(1.67

)%

Return on average equity

 

 

22.93

 

 

 

10.35

 

 

 

5.17

 

 

 

(165.21

)

 

 

(363.66

)

 

 

(23.29

)

 

 

8.43

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

(14.06

)

Interest yield

 

 

14.90

 

 

 

9.66

 

 

 

10.51

 

 

 

(2.11

)

 

N/A

 

 

N/A

 

 

 

11.32

 

Net interest margin

 

 

13.15

 

 

 

7.62

 

 

 

6.66

 

 

 

(7.14

)

 

N/A

 

 

N/A

 

 

 

8.65

 

Reserve coverage

 

 

3.45

 

 

 

1.54

 

 

 

0.00

 

 

 

66.31

 

 

N/A

 

 

N/A

 

 

 

4.68

 

Delinquency status(1)

 

 

0.70

 

 

 

0.05

 

 

 

0.11

 

 

 

3.57

 

 

N/A

 

 

N/A

 

 

 

0.57

 

Charge-off ratio

 

 

1.95

 

 

 

0.44

 

 

 

0.04

 

 

 

59.38

 

 

N/A

 

 

N/A

 

 

 

5.00

 
(1)
Loans 90 days or more past due.

(*) Line item is not applicable to segments.
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(10) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a one-, two-, three- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year of each five-year term, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one or two-year term (as applicable); however, there is currently one agreement that renews after two years for additional one- year terms. 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 $11.8 million as follows:

(Dollars in thousands)

 

 

 

2023

 

$

4,128

 

2024

 

 

2,493

 

2025

 

 

2,131

 

2026

 

 

2,131

 

2027

 

 

888

 

Thereafter

 

 

—

 

Total

 

$

11,771

 

(B) OTHER COMMITMENTS

As of December 31, 2022 the Company had no other commitments. 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. The Company intends to vigorously defend any outstanding claims and pursue its 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.
v3.22.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

(11) RELATED PARTY TRANSACTIONS

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

Jeffrey Rudnick, the son of one of the Company’s directors, served as the Company’s Senior Vice President at a salary of $239,000 and 195,000 per year during 2022 and 2021, which was increased to $250,950 effective January 1, 2023. Mr. Rudnick received an annual cash bonus of $85,000, $75,000, and $32,500 as well as an equity bonus in the amount of $50,000, $45,019, and $30,000 for the years ended December 31, 2022, 2021, and 2020.
v3.22.4
Stockholders'/Shareholders' Equity
 12 Months Ended
Dec. 31, 2022
Federal Home Loan Banks [Abstract]  
Stockholders'/Shareholders' Equity

(12) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY

On April 29, 2022, the Company's board of directors authorized a new stock repurchase program, pursuant to which the Company was authorized to repurchase up to $35 million of its shares, which was increased to $40 million on August 10, 2022. Such new repurchase program replaced the previous one, which was terminated. During the year ended December 31, 2022 the Company repurchased 2,650,911 shares of its common stock at an aggregate cost of $20,618,843. Accordingly, as of December 31, 2022, up to $19,998,012 of shares remain authorized for repurchase under the Company's stock repurchase program. There were no purchases during the years ended December 31, 2021 and 2020.

The following table presents the Company’s purchases for the year ended December 31, 2022.

 

 

Total Shares of Common Stock Repurchased

 

 

Average Price Paid per Share

 

 

Total
Amount Paid

 

 

Maximum Value of Shares Yet to Be Purchased

 

January 1 - January 31

 

 

—

 

 

$

—

 

 

$

—

 

 

$

22,874,509

 

February 1 - February 28

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,874,509

 

March 1 - March 31

 

 

67,660

 

 

 

9.12

 

 

 

616,855

 

 

 

22,257,654

 

April 1 - April 30

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,257,654

 

May 1 - May 31

 

 

1,056,933

 

 

 

7.87

 

 

 

8,316,012

 

 

 

26,683,988

 

June 1 - June 30

 

 

215,217

 

 

 

7.71

 

 

 

1,658,542

 

 

 

25,025,447

 

July 1 - July 31

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,025,447

 

August 1 - August 31

 

 

734,547

 

 

 

7.93

 

 

 

5,822,227

 

 

 

24,203,219

 

September 1 - September 30

 

 

319,323

 

 

 

7.54

 

 

 

2,408,673

 

 

 

21,794,546

 

October 1 - October 31

 

 

257,231

 

 

 

6.98

 

 

 

1,796,534

 

 

 

19,998,012

 

November 1 - November 30

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,998,012

 

December 1 - December 31

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,998,012

 

Total

 

 

2,650,911

 

 

$

7.78

 

 

 

20,618,843

 

 

$

19,998,012

 
v3.22.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Postemployment Benefits [Abstract]  
Employee Benefit Plans

(13) EMPLOYEE BENEFIT PLANS

The Company has a 401(k) Investment Plan, or the 401(k) Plan, which, effective June 1, 2022, covers all full-time and part-time employees of the Company who have attained the age of 18 and have a minimum of thirty (30) days of service. Under the 401(k) Plan, an employee may elect to defer not less than 1% of total annual compensation, up to the applicable limits set forth in the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. Once eligible full-time employees have completed a minimum of ninety (90) days of service, and part time employees have worked at least 1,000 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to fifty percent of the first 8% of the employee’s annual contributions, subject to legal limits. Prior to June 1, 2022, the 401(k) Plan covered full- and part-time employees of the Company aged 21 and older that had completed a minimum of thirty (30) days of service, with the Company matching one-third of the first 6% of the contributions of eligible employees that had completed at least one (1) year of service (in the case of full-time employees) or 1,000 hours (in the case of part-time employees). The Company’s 401(k) plan expense was approximately $0.3 million, $0.3 million, and $0.2 million for the years ended December 31, 2022, 2021, and 2020.

v3.22.4
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2022
Investments, All Other Investments [Abstract]  
Fair Value of Financial Instruments

(14) FAIR VALUE OF FINANCIAL INSTRUMENTS

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

(a)
Cash and cash equivalents – Book value equals fair value.
(b)
Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes.
(c)
Investment securities – The Company’s investments are recorded at the estimated fair value of such investments.
(d)
Loans receivable – The Company’s loans are recorded at book value which approximated fair value.
(e)
Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value.
(f)
Commitments to extend credit – The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At December 31, 2022 and 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.

 

 

December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

105,598

 

 

$

105,598

 

 

$

124,484

 

 

$

124,484

 

Equity investments

 

 

10,293

 

 

 

10,293

 

 

 

9,726

 

 

 

9,726

 

Investment securities

 

 

48,492

 

 

 

48,492

 

 

 

44,772

 

 

 

44,772

 

Loans receivable

 

 

1,853,108

 

 

 

1,853,108

 

 

 

1,438,758

 

 

 

1,438,758

 

Accrued interest receivable (2)

 

 

12,613

 

 

 

12,613

 

 

 

10,621

 

 

 

10,621

 

Equity securities(3)

 

 

1,724

 

 

 

1,724

 

 

 

1,950

 

 

 

1,950

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

1,833,434

 

 

 

1,833,434

 

 

 

1,478,001

 

 

 

1,478,001

 

Accrued interest payable (2)

 

 

4,790

 

 

 

4,790

 

 

 

3,395

 

 

 

3,395

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million as of December 31, 2022 and $1.3 million as of December 31, 2021 of interest-bearing deposits categorized as level 2. See Note 15.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 15.
(3)
Included within other assets on the balance sheet.
v3.22.4
Fair Value of Assets and liabilities
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(15) FAIR VALUE OF ASSETS AND LIABILITIES

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

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

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

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

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

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

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

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

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

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

 

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

December 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

48,492

 

 

 

—

 

 

 

48,492

 

Equity securities

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

1,724

 

Total(1)

 

$

1,724

 

 

$

49,742

 

 

$

—

 

 

$

51,466

 
(1)
Total unrealized losses of $4.4 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2022 related to these assets.

December 31, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

44,772

 

 

 

—

 

 

 

44,772

 

Equity securities

 

 

1,950

 

 

 

—

 

 

 

—

 

 

 

1,950

 

Total(1)

 

$

1,950

 

 

$

46,022

 

 

$

—

 

 

$

47,972

 
(1)
Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.

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

December 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,293

 

 

$

10,293

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

32,133

 

 

 

32,133

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

21,819

 

 

 

21,819

 

Total

 

$

—

 

 

$

—

 

 

$

64,245

 

 

$

64,245

 

 

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 December 31, 2022 and 2021.

(Dollars in thousands)

 

Fair Value
at December 31, 2022

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,020

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

273

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

32,133

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 6.55%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

21,819

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.5 - 54.1

 

(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.
v3.22.4
Medallion Bank Preferred Stock (Non-controlling Interest)
 12 Months Ended
Dec. 31, 2022
Medallion Bank Preferred Stock (Non-controlling Interest)

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

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46.0 million aggregate liquidation amount, yielding net proceeds of $42.5 million, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be three-month Secured Overnight Financing Rate, or SOFR) plus a spread of 6.46% per annum.

On July 21, 2011, the Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E 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.
v3.22.4
Parent Company Only Condensed Financial Statements
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Parent Company Only Condensed Financial Statements

(17) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS

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

Condensed Balance Sheets

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Cash

 

$

20,669

 

 

$

40,540

 

Investment in bank subsidiary(1)

 

 

479,496

 

 

 

367,945

 

Investment in non-bank subsidiaries

 

 

83,727

 

 

 

88,018

 

Income tax receivable

 

 

22,835

 

 

 

18,763

 

Loan collateral in process of foreclosure

 

 

2,001

 

 

 

5,811

 

Net loans receivable

 

 

2,538

 

 

 

3,302

 

Other assets

 

 

7,603

 

 

 

8,674

 

Total assets

 

$

618,869

 

 

$

533,053

 

Liabilities

 

 

 

 

 

 

Long-term borrowings(2)

 

$

151,808

 

 

$

151,103

 

Deferred tax liabilities

 

 

38,091

 

 

 

35,799

 

Intercompany payables

 

 

33,378

 

 

 

39,703

 

Other liabilities

 

 

25,068

 

 

 

19,408

 

Total liabilities

 

 

248,345

 

 

 

246,013

 

Total stockholders’ equity

 

 

370,524

 

 

 

287,040

 

Total liabilities and equity

 

$

618,869

 

 

$

533,053

 
(1)
Includes $172.8 million and $174.3 million of goodwill and intangible assets of the Company which relate specifically to the Bank.
(2)
Includes $2.1 million and $2.9 million of deferred financing costs as of December 31, 2022 and 2021.

Condensed Statements of Operations

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Interest and dividend income

 

$

24,631

 

 

$

16,446

 

 

$

4,773

 

Interest expense

 

 

11,289

 

 

 

11,209

 

 

 

8,602

 

Net interest income (loss)

 

 

13,342

 

 

 

5,237

 

 

 

(3,829

)

Provision (benefit) for loan losses

 

 

(353

)

 

 

(4,718

)

 

 

5,127

 

Net interest income (loss) after provision for loan losses

 

 

13,695

 

 

 

9,955

 

 

 

(8,956

)

Other expense, net

 

 

(18,423

)

 

 

(6,224

)

 

 

(22,062

)

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

 

 

(4,728

)

 

 

3,731

 

 

 

(31,018

)

Income tax benefit

 

 

7,940

 

 

 

4,452

 

 

 

10,454

 

Income (loss) before undistributed earnings of subsidiaries

 

 

3,212

 

 

 

8,183

 

 

 

(20,564

)

Undistributed earnings (losses) of subsidiaries

 

 

40,628

 

 

 

45,925

 

 

 

(14,219

)

Net income (loss) attributable to parent company

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

Condensed Statements of Other Comprehensive Income (Loss)

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Net (income) loss

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

Other comprehensive income (loss)

 

 

(4,383

)

 

 

(978

)

 

 

1,013

 

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

 

$

39,457

 

 

$

53,130

 

 

$

(33,770

)

 

Condensed Statements of Cash Flow

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

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

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

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

 

 

 

 

 

 

 

 

 

Equity in undistributed (earnings) losses of subsidiaries

 

 

(64,300

)

 

 

(60,304

)

 

 

6,622

 

(Benefit) provision for loan losses

 

 

(353

)

 

 

(4,718

)

 

 

5,127

 

Depreciation and amortization

 

 

2,740

 

 

 

4,485

 

 

 

5,357

 

Change in deferred and other tax assets/liabilities, net

 

 

(1,780

)

 

 

(5,666

)

 

 

(3,317

)

Net change in loan collateral in process of foreclosure

 

 

64

 

 

 

1,619

 

 

 

4,940

 

Net change in unrealized depreciation on investments

 

 

—

 

 

 

—

 

 

 

3,493

 

Gain on extinguishment of debt

 

 

—

 

 

 

(2,204

)

 

 

—

 

Net realized gains on sale of investments

 

 

—

 

 

 

(11,701

)

 

 

—

 

Stock-based compensation expense

 

 

3,476

 

 

 

2,261

 

 

 

2,031

 

Decrease (increase) in other assets

 

 

1,055

 

 

 

(1,150

)

 

 

2,299

 

Increase in deferred financing costs

 

 

(39

)

 

 

(1,504

)

 

 

(1,233

)

Decrease in intercompany payables

 

 

(6,325

)

 

 

(11,649

)

 

 

(3,552

)

(Decrease) increase in other liabilities

 

 

5,430

 

 

 

(1,894

)

 

 

2,336

 

Net cash used for operating activities

 

 

(16,192

)

 

 

(38,317

)

 

 

(10,680

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Loans originated

 

 

(92

)

 

 

—

 

 

 

(14

)

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

 

 

723

 

 

 

28,552

 

 

 

1,193

 

Purchases of investments

 

 

—

 

 

 

(90

)

 

 

(2,304

)

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

 

 

3,697

 

 

 

666

 

 

 

1,276

 

Investment in subsidiaries

 

 

(4,750

)

 

 

(3,500

)

 

 

 

Dividends from subsidiaries

 

 

24,750

 

 

 

19,000

 

 

 

7,597

 

Net cash provided by investing activities

 

 

24,328

 

 

 

44,628

 

 

 

7,748

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

—

 

 

 

51,400

 

 

 

33,600

 

Repayments of funds borrowed

 

 

—

 

 

 

(51,155

)

 

 

(1,402

)

Treasury stock repurchased

 

 

(20,619

)

 

 

—

 

 

 

—

 

Dividends paid to shareholders

 

 

(7,543

)

 

 

—

 

 

 

—

 

Proceeds from the exercise of stock options

 

 

155

 

 

 

241

 

 

 

—

 

Net cash (used for) provided by financing activities

 

 

(28,007

)

 

 

486

 

 

 

32,198

 

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

 

(19,871

)

 

 

6,797

 

 

 

29,266

 

Cash and cash equivalents, beginning of period

 

 

40,540

 

 

 

33,743

 

 

 

4,477

 

Cash and cash equivalents, end of period

 

$

20,669

 

 

$

40,540

 

 

$

33,743

 
v3.22.4
Variable Interest Entities
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities

(18) VARIABLE INTEREST ENTITIES

During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had historically been consolidated as a subsidiary of MFC, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III was a VIE since the key decision-making authority rested in the servicing agreement (where MFC was the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights were considered a variable interest. This conclusion was supported by a qualitative assessment that Trust III did not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25.3 million recorded as well as a new promissory note payable by MFC of $1.4 million issued in settlement of the limited guaranty. Subsequent to deconsolidation, the Company’s interest in Trust III was accounted for as an equity investment and had a value of $0 through its transfer to a third party in the 2021 third quarter. In addition, the Company remained the servicer of the assets of Trust III for a fee, until its disposition.
v3.22.4
Subsequent Events
 12 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

(19) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to December 31, 2022, through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.
v3.22.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

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

Principles of Consolidation

Principles of Consolidation

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

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

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. As of December 31, 2022, cash also includes $1.3 million of interest-bearing funds deposited in other banks, that are mainly callable, with original terms of 3 to 5 years.

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or FASB ASC 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. FASB ASC 820 defines fair value as an exit price (i.e. a price that would be received to sell, as opposed to acquire, an asset or transfer a liability), and emphasizes that fair value is a market-based measurement. It establishes a fair value hierarchy that distinguishes between assumptions developed based on market data obtained from independent external sources and the reporting entity’s own assumptions. Further, it specifies that fair value measurement should consider adjustment for risk, such as the risk inherent in the valuation technique or its inputs. See also Notes 14 and 15 to the consolidated financial statements.

Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.3 million and $9.7 million as of December 31, 2022 and 2021, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of December 31, 2022, cumulative impairment of $2.4 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 December 31, 2022 and 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 following table presents the unrealized portion related to the equity securities held as of December 31, 2022.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(226

)

 

$

(50

)

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

 

 

—

 

 

 

—

 

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

 

$

(226

)

 

$

(50

)
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million and $0.3 million as of December 31, 2022 and 2021, and $0.1 million, $0.1 million, and $0.3 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed.

Loans

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. As of December 31, 2022 and 2021, net loan origination costs were $34.9 million and $26.1 million. Net amortization to income for the years ended December 31, 2022, 2021, and 2020 were $8.7 million, $8.0 million, and $6.0 million.

Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer loan portfolio has different characteristics, typified by a larger number of smaller dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is unlikely the Company will be able to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. Consumer loans are placed on nonaccrual when they become 90 days past due, or earlier if they enter bankruptcy, and are charged-off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $8.9 million or 0.47% of the total loan portfolio as of December 31, 2022, as compared to $4.0 million, or 0.28% as of 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 these 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 $19.5 million and $20.5 million at December 31, 2022 and 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 December 31, 2022 and 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 December 31, 2022 and 2021, the Company had intangible assets of $22.0 million and $23.5 million. During 2021, the Company disposed of its investment in RPAC Racing LLC, or RPAC, resulting in the removal of $26.2 million of intangible assets. The Company recognized $1.4 million of amortization expense on the intangible assets for each of the years ended December 31, 2022 and 2021. Additionally, loan portfolio premiums of $12.4 million were determined as of April 2, 2018, of which $0 and $0.5 million were outstanding as of December 31, 2022 and 2021, and of which $0.5 million, $2.2 million, and $3.0 million was amortized to interest income for the years ended December 31, 2022, 2021, and 2020. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022 and 2021, concluding that there was no impairment of these assets.

The following table details of the intangible assets as of December 31, 2022 and 2021:

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Brand-related intellectual property

 

$

16,775

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,260

 

 

 

5,606

 

Total intangible assets

 

$

22,035

 

 

$

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 $0.4 million, $0.3 million, and $0.4 million for the years ended December 31, 2022, 2021, and 2020.
Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $2.6 million, $2.4 million, and $2.6 million for the years ended December 31, 2022, 2021, and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $7.0 million and $7.1 million as of December 31, 2022 and 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 (Loss) Per Share (EPS)

Earnings (Loss) Per Share (EPS)

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

 

 

Year Ended December 31,

 

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

 

2022

 

 

2021

 

 

2020

 

Net income (loss) available to common stockholders

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

Weighted average common shares outstanding applicable
   to basic EPS

 

 

23,583,049

 

 

 

24,599,804

 

 

 

24,445,452

 

Effect of dilutive stock options

 

 

67,825

 

 

 

92,602

 

 

 

—

 

Effect of restricted stock grants

 

 

276,469

 

 

 

250,763

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,927,342

 

 

 

24,943,169

 

 

 

24,445,452

 

Basic income (loss) per share

 

$

1.86

 

 

$

2.20

 

 

$

(1.42

)

Diluted income (loss) per share

 

 

1.83

 

 

 

2.17

 

 

 

(1.42

)

Potentially dilutive common shares excluded from the above calculations aggregated 347,963 shares, 421,190, and 934,003 shares as of December 31, 2022, 2021, and 2020.
Stock Compensation

Stock Compensation

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

During the years ended December 31, 2022, 2021, and 2020, the Company issued 522,475, 258,120, and 229,408 restricted shares of stock-based compensation awards, issued 0, 317,398, and 444,557 shares of other stock-based compensation awards, and issued 129,638, 16,803, and 47,156 restricted stock units; and recognized $3.5 million, $2.3 million, and $2.0 million, or $0.15, $0.09, and $0.08 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2022, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $3.9 million, which is expected to be recognized over the next 9 quarters.
Regulatory Capital

Regulatory Capital

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

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

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

 

 

December 31,

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

2022

 

 

2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

242,049

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

310,837

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

334,913

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,917,904

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,888,530

 

 

 

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

 

 

 

12.8

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.5

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.7

 

 

 

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 December 31, 2022 and 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 December 31, 2022 and 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 adopted Topic 326 on January 1, 2023. The Company anticipates the adoption will increase in the Company's allowance for loan losses (allowance for credit losses under CECL) by $11.6 million for consumer loans and a $2.2 million increase with respect to the Company's commercial loans. The medallion loan allowance will not be affected. With the adoption of CECL, the Company expects that there will be earlier recognition of credit losses, including a near-term effect of larger loan loss provisions, compared to the incurred losses accounting standard.

 

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 Securities and Exchange Commission, or the 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 of 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 was effective upon the adoption of ASU 2016-13.

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 of 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.
v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Unrealized Portion Related to Equity Securities

The following table presents the unrealized portion related to the equity securities held as of December 31, 2022.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Net losses recognized during the period on equity securities

 

$

(226

)

 

$

(50

)

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

 

 

—

 

 

 

—

 

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

 

$

(226

)

 

$

(50

)
Schedule of Intangible Assets

The following table details of the intangible assets as of December 31, 2022 and 2021:

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Brand-related intellectual property

 

$

16,775

 

 

$

17,874

 

Home improvement contractor relationships

 

 

5,260

 

 

 

5,606

 

Total intangible assets

 

$

22,035

 

 

$

23,480

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

 

 

Year Ended December 31,

 

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

 

2022

 

 

2021

 

 

2020

 

Net income (loss) available to common stockholders

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

Weighted average common shares outstanding applicable
   to basic EPS

 

 

23,583,049

 

 

 

24,599,804

 

 

 

24,445,452

 

Effect of dilutive stock options

 

 

67,825

 

 

 

92,602

 

 

 

—

 

Effect of restricted stock grants

 

 

276,469

 

 

 

250,763

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,927,342

 

 

 

24,943,169

 

 

 

24,445,452

 

Basic income (loss) per share

 

$

1.86

 

 

$

2.20

 

 

$

(1.42

)

Diluted income (loss) per share

 

 

1.83

 

 

 

2.17

 

 

 

(1.42

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

 

 

Regulatory

 

 

December 31,

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

2022

 

 

2021

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

242,049

 

 

$

193,459

 

Tier 1 capital

 

 

 

 

 

 

 

 

310,837

 

 

 

262,247

 

Total capital

 

 

 

 

 

 

 

 

334,913

 

 

 

281,211

 

Average assets

 

 

 

 

 

 

 

 

1,917,904

 

 

 

1,495,726

 

Risk-weighted assets

 

 

 

 

 

 

 

 

1,888,530

 

 

 

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

 

 

 

12.8

 

 

 

13.1

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.5

 

 

 

17.7

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.7

 

 

 

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.
v3.22.4
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2022
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale

The following tables present details of fixed maturity securities available for sale as of December 31, 2022 and 2021.

December 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

43,286

 

 

$

—

 

 

$

(4,933

)

 

$

38,353

 

State and municipalities

 

 

11,015

 

 

 

13

 

 

 

(889

)

 

 

10,139

 

Total

 

$

54,301

 

 

$

13

 

 

$

(5,822

)

 

$

48,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

35,469

 

 

$

672

 

 

$

(403

)

 

$

35,738

 

State and municipalities

 

 

9,025

 

 

 

60

 

 

 

(51

)

 

 

9,034

 

Total

 

$

44,494

 

 

$

732

 

 

$

(454

)

 

$

44,772

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

The amortized cost and estimated market value of investment securities as of December 31, 2022 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

December 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

9,625

 

 

 

9,222

 

Due after five years through ten years

 

 

9,303

 

 

 

8,170

 

Due after ten years

 

 

35,373

 

 

 

31,100

 

Total

 

$

54,301

 

 

$

48,492

 

 
Summary of Securities with Gross Unrealized Losses

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

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2022
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(731

)

 

$

12,321

 

 

$

(4,202

)

 

$

26,023

 

State and municipalities

 

 

(286

)

 

 

4,628

 

 

 

(603

)

 

 

3,502

 

Total

 

$

(1,017

)

 

$

16,949

 

 

$

(4,805

)

 

$

29,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2021
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Mortgage-backed securities, principally obligations of US federal agencies

 

$

(403

)

 

$

16,330

 

 

$

—

 

 

$

—

 

State and municipalities

 

 

(9

)

 

 

2,124

 

 

 

(42

)

 

 

1,956

 

Total

 

$

(412

)

 

$

18,454

 

 

$

(42

)

 

$

1,956

 
As of December 31, 2022 and 2021, the Company had 57 and 15 securities with unrealized losses that
v3.22.4
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2022
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

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

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,183,512

 

 

 

62

%

 

$

961,320

 

 

 

65

%

Home improvement

 

 

626,399

 

 

 

33

 

 

 

436,772

 

 

 

29

 

Commercial

 

 

92,899

 

 

 

5

 

 

 

76,696

 

 

 

5

 

Medallion

 

 

13,571

 

 

 

1

 

 

 

14,046

 

 

 

1

 

Strategic partnership

 

 

572

 

 

*

 

 

 

90

 

 

*

 

Total gross loans

 

 

1,916,953

 

 

 

100

%

 

 

1,488,924

 

 

 

100

%

Allowance for loan losses

 

 

(63,845

)

 

 

 

 

 

(50,166

)

 

 

 

Total net loans

 

$

1,853,108

 

 

 

 

 

$

1,438,758

 

 

 

 

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

The following tables show the activity of the gross loans for the years ended December 31, 2022 and 2021.


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

513,062

 

 

 

392,543

 

 

 

28,172

 

 

 

605

 

 

 

49,526

 

 

 

983,908

 

Principal payments, sales, maturities, and recoveries

 

 

(259,326

)

 

 

(196,203

)

 

 

(6,610

)

 

 

(419

)

 

 

(49,044

)

 

 

(511,602

)

Charge-offs

 

 

(27,055

)

 

 

(6,393

)

 

 

(6,083

)

 

 

(314

)

 

 

—

 

 

 

(39,845

)

Transfer to loan collateral in process of foreclosure, net

 

 

(12,444

)

 

 

—

 

 

 

—

 

 

 

(347

)

 

 

—

 

 

 

(12,791

)

Amortization of origination costs

 

 

(10,470

)

 

 

1,763

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,707

)

Amortization of loan premium

 

 

(213

)

 

 

(322

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(535

)

FASB origination costs, net

 

 

18,638

 

 

 

(1,761

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,877

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

724

 

 

 

—

 

 

 

—

 

 

 

724

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

 

 


(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2020

 

$

792,686

 

 

$

334,033

 

 

$

65,327

 

 

$

37,768

 

 

$

24

 

 

$

1,229,838

 

Loan originations

 

 

441,921

 

 

 

258,038

 

 

 

36,415

 

 

 

—

 

 

 

10,997

 

 

 

747,371

 

Principal payments, sales, maturities, and recoveries

 

 

(252,293

)

 

 

(153,044

)

 

 

(25,873

)

 

 

(1,363

)

 

 

(10,931

)

 

 

(443,504

)

Charge-offs

 

 

(14,712

)

 

 

(2,949

)

 

 

—

 

 

 

(15,287

)

 

 

—

 

 

 

(32,948

)

Transfer to loan collateral in process of foreclosure, net

 

 

(10,431

)

 

 

—

 

 

 

—

 

 

 

(5,457

)

 

 

—

 

 

 

(15,888

)

Amortization of origination costs

 

 

(9,678

)

 

 

1,671

 

 

 

13

 

 

 

(2

)

 

 

—

 

 

 

(7,996

)

Amortization of loan premium

 

 

(221

)

 

 

(346

)

 

 

—

 

 

 

(1,615

)

 

 

—

 

 

 

(2,182

)

FASB origination costs, net

 

 

14,048

 

 

 

(631

)

 

 

—

 

 

 

2

 

 

 

—

 

 

 

13,419

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

814

 

 

 

—

 

 

 

—

 

 

 

814

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the years ended December 31, 2022 and 2021.

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Allowance for loan losses – beginning balance

 

$

50,166

 

 

$

57,548

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(27,055

)

 

 

(14,712

)

Home improvement

 

 

(6,393

)

 

 

(2,949

)

Commercial

 

 

(6,083

)

 

 

—

 

Medallion

 

 

(314

)

 

 

(15,287

)

Total charge-offs

 

 

(39,845

)

 

 

(32,948

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

13,785

 

 

 

12,131

 

Home improvement

 

 

2,761

 

 

 

2,398

 

Commercial

 

 

47

 

 

 

—

 

Medallion

 

 

6,872

 

 

 

6,415

 

Total recoveries

 

 

23,465

 

 

 

20,944

 

Net charge-offs (1)

 

 

(16,380

)

 

 

(12,004

)

Provision for loan losses

 

 

30,059

 

 

 

4,622

 

Allowance for loan losses – ending balance (2)

 

$

63,845

 

 

$

50,166

 
(1)
As of December 31, 2022, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $244.2 million, some of which represent collection opportunities for the Company.
(2)
As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
Summary of Allowance for Loan Losses by Type

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

December 31, 2022
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

41,966

 

 

 

66

%

 

 

3.55

%

 

 

130.60

%

Home improvement

 

 

11,340

 

 

 

18

 

 

 

1.81

 

 

 

35.29

 

Commercial

 

 

1,049

 

 

 

1

 

 

 

1.13

 

 

 

3.26

 

Medallion

 

 

9,490

 

 

 

15

 

 

 

69.93

 

 

 

29.53

 

Total

 

$

63,845

 

 

 

100

%

 

 

3.33

%

 

 

198.69

%

 

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

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Total nonaccrual loans

 

$

32,133

 

 

$

35,571

 

 

$

61,767

 

Interest foregone for the year

 

 

1,267

 

 

 

1,620

 

 

 

3,311

 

Amount of foregone interest applied to principal for the year

 

 

375

 

 

 

432

 

 

 

602

 

Interest foregone life-to-date

 

 

2,419

 

 

 

3,623

 

 

 

5,252

 

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

 

 

1,204

 

 

 

942

 

 

 

792

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

1.7

%

 

 

2.4

%

 

 

5.0

%

Percentage of allowance for loan losses to nonaccrual loans

 

 

198.7

%

 

 

141.0

%

 

 

93.0

%

 
Summary of Performance Status of Loan

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

December 31, 2022
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,173,846

 

 

$

9,666

 

 

$

1,183,512

 

 

 

0.82

%

Home improvement

 

 

625,820

 

 

 

579

 

 

 

626,399

 

 

 

0.09

 

Commercial

 

 

84,165

 

 

 

8,734

 

 

 

92,899

 

 

 

9.40

 

Medallion

 

 

—

 

 

 

13,571

 

 

 

13,571

 

 

 

100.00

 

Strategic partnership

 

 

572

 

 

 

—

 

 

 

572

 

 

 

—

 

Total

 

$

1,884,403

 

 

$

32,550

 

 

$

1,916,953

 

 

 

1.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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.
Summary of Attributes of Nonperforming Loan Portfolio

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

 

 

December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

9,666

 

 

$

9,666

 

 

$

343

 

 

$

5,557

 

 

$

5,557

 

 

$

188

 

Home improvement

 

 

579

 

 

 

579

 

 

 

10

 

 

 

132

 

 

 

132

 

 

 

2

 

Commercial

 

 

8,734

 

 

 

8,823

 

 

 

963

 

 

 

16,330

 

 

 

16,360

 

 

 

1,141

 

Medallion

 

 

13,571

 

 

 

14,686

 

 

 

9,490

 

 

 

14,046

 

 

 

14,958

 

 

 

8,837

 

Total nonperforming loans with an allowance

 

$

32,550

 

 

$

33,754

 

 

$

10,806

 

 

$

36,065

 

 

$

37,007

 

 

$

10,168

 

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

9,093

 

 

$

401

 

 

$

5,618

 

 

$

515

 

Home improvement

 

 

514

 

 

 

4

 

 

 

108

 

 

 

—

 

Commercial

 

 

13,381

 

 

 

—

 

 

 

16,816

 

 

 

93

 

Medallion

 

 

16,019

 

 

 

—

 

 

 

17,538

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

39,007

 

 

$

405

 

 

$

40,080

 

 

$

608

 

 
Summary of Aging of Loans

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

December 31, 2022

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

31,781

 

 

$

11,877

 

 

$

7,365

 

 

$

51,023

 

 

$

1,095,072

 

 

$

1,146,095

 

 

$

—

 

Home improvement

 

 

3,266

 

 

 

1,256

 

 

 

579

 

 

 

5,101

 

 

 

623,776

 

 

 

628,877

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

93,396

 

 

 

93,470

 

 

 

—

 

Medallion

 

 

142

 

 

 

393

 

 

 

885

 

 

 

1,420

 

 

 

12,151

 

 

 

13,571

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

572

 

 

 

572

 

 

 

—

 

Total

 

$

35,189

 

 

$

13,526

 

 

$

8,903

 

 

$

57,618

 

 

$

1,824,967

 

 

$

1,882,585

 

 

$

—

 
(1)
Excludes $34.9 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 year ended December 31, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

80

 

 

 

1,203

 

 

 

1,203

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Recreation loans

 

 

56

 

 

 

668

 

 

 

585

 

Medallion loans

 

 

11

 

 

 

3,071

 

 

 

3,071

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

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the years ended December 31, 2022 and 2021.

Year Ended December 31, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion(1)

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

12,444

 

 

 

347

 

 

 

12,791

 

Sales

 

 

(7,707

)

 

 

(2,668

)

 

 

(10,375

)

Cash payments received

 

 

—

 

 

 

(12,289

)

 

 

(12,289

)

Collateral valuation adjustments

 

 

(5,081

)

 

 

(657

)

 

 

(5,738

)

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 
(1)
As of December 31, 2022, medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets.

Year Ended December 31, 2021
(Dollars in thousands)

 

Recreation

 

 

Medallion(1)

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2020

 

$

1,432

 

 

$

53,128

 

 

$

54,560

 

Transfer from loans, net

 

 

10,431

 

 

 

5,457

 

 

 

15,888

 

Sales

 

 

(6,951

)

 

 

(2,928

)

 

 

(9,879

)

Cash payments received

 

 

—

 

 

 

(14,173

)

 

 

(14,173

)

Collateral valuation adjustments

 

 

(3,192

)

 

 

(5,774

)

 

 

(8,966

)

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 
(1)
As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets.
v3.22.4
Funds Borrowed (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The following table presents outstanding balances of funds borrowed.

 

 

Payments Due for the Year Ending December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

Thereafter

 

 

December 31, 2022(1)

 

 

December 31, 2021(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

508,218

 

 

$

419,560

 

 

$

384,720

 

 

$

149,329

 

 

$

147,845

 

 

$

—

 

 

$

1,609,672

 

 

$

1,253,288

 

 

 

1.91

%

Retail and privately placed notes

 

 

—

 

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

53,750

 

 

 

—

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

5,000

 

 

 

7,762

 

 

 

14,000

 

 

 

14,000

 

 

 

2,000

 

 

 

25,750

 

 

 

68,512

 

 

 

69,963

 

 

 

3.08

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

6.86

 

Total

 

$

513,218

 

 

$

463,322

 

 

$

398,720

 

 

$

194,579

 

 

$

203,595

 

 

$

58,750

 

 

$

1,832,184

 

 

$

1,477,251

 

 

 

2.43

%
(1)
Excludes deferred financing costs of $7.0 million and $7.1 million as of December 31, 2022 and 2021.
(2)
Weighted average contractual rate as of December 31, 2022.
(3)
Balance excludes $1.3 million and $0.8 million of strategic partner reserve deposits as of December 31, 2022 and 2021.
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits December 31, 2022.

(Dollars in thousands)

 

December 31, 2022

 

Three months or less

 

$

152,517

 

Over three months through six months

 

 

117,179

 

Over six months through one year

 

 

238,522

 

Over one year

 

 

1,101,454

 

Total deposits

 

$

1,609,672

 

 
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the years ended December 31, 2022, 2021, and 2020.

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Operating lease costs

 

$

2,216

 

 

$

2,287

 

 

$

2,384

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

2,378

 

 

 

2,454

 

 

 

2,821

 

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

 

 

(187

)

 

 

(118

)

 

 

251

 
Schedule of Breakout of Operating leases

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

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Operating lease right-of-use assets

 

$

9,723

 

 

$

10,045

 

Other current liabilities

 

 

2,239

 

 

 

2,159

 

Operating lease liabilities

 

 

8,408

 

 

 

9,053

 

Total operating lease liabilities

 

 

10,647

 

 

 

11,212

 

Weighted average remaining lease term

 

5.5 years

 

 

5.4 years

 

Weighted average discount rate

 

 

5.66

%

 

 

5.54

%
Schedule of Maturities of the Lease Liabilities .

(Dollars in thousands)

 

 

 

2023

 

$

2,518

 

2024

 

 

2,526

 

2025

 

 

2,505

 

2026

 

 

2,440

 

2027

 

 

1,212

 

Thereafter

 

 

1,290

 

Total lease payments

 

 

12,491

 

Less imputed interest

 

 

1,844

 

Total operating lease liabilities

 

$

10,647

 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of the Company's deferred and other tax assets and liabilities as of December 31, 2022 and 2021.

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Goodwill and other intangibles

 

$

(43,397

)

 

$

(43,894

)

Provision for loan losses

 

 

9,945

 

 

 

11,057

 

Net operating loss carryforwards (1)

 

 

3,730

 

 

 

12,167

 

Accrued expenses, compensation, and other assets

 

 

3,819

 

 

 

2,579

 

Unrealized gains on other investments

 

 

1,445

 

 

 

2,176

 

Total deferred tax liability

 

 

(24,458

)

 

 

(15,915

)

Valuation allowance

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(26,753

)

 

$

(18,210

)
(1)
As of December 31, 2022, the Company had an estimated $11.1 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 $1.4 million of December 31, 2022.
Summary of Components of Tax (Provision) Benefit

The following table shows the components of the Company's tax (provision) benefit for the years ended December 31, 2022, 2021, and 2020.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(5,213

)

 

$

(3,550

)

 

$

—

 

State

 

 

(560

)

 

 

(1,563

)

 

 

(260

)

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

(8,090

)

 

 

(13,686

)

 

 

7,702

 

State

 

 

(4,100

)

 

 

(5,418

)

 

 

2,632

 

Net (provision) benefit for income taxes

 

$

(17,963

)

 

$

(24,217

)

 

$

10,074

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

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported for the years ended December 31, 2022, 2021, and 2020.

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Statutory Federal income tax (provision) benefit at 21%

 

$

(14,249

)

 

$

(17,193

)

 

$

7,766

 

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

 

 

(2,787

)

 

 

(3,363

)

 

 

1,518

 

Valuation allowance against net operating losses

 

 

—

 

 

 

(1,833

)

 

 

1,228

 

Change in effective state income tax rates and accrual

 

 

811

 

 

 

(1,691

)

 

 

(405

)

Income attributable to non-controlling interest

 

 

—

 

 

 

628

 

 

 

460

 

Non-deductible expenses

 

 

(1,987

)

 

 

(178

)

 

 

(453

)

Other

 

 

249

 

 

 

(587

)

 

 

(40

)

Total income tax (provision) benefit

 

$

(17,963

)

 

$

(24,217

)

 

$

10,074

 
v3.22.4
Stock Options and Restricted Stock (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Assumption Categories Used to Determine Value of Option Grants The following assumption categories are used to determine the value of any option grants.

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Risk free interest rate

 

 

—

 

 

 

0.97

%

 

 

1.23

%

Expected dividend yield

 

 

—

 

 

 

—

 

 

 

—

 

Expected life of option in years (1)

 

 

—

 

 

 

6.25

 

 

 

6.25

 

Expected volatility (2)

 

 

—

 

 

 

53.98

%

 

 

51.03

%
(1)
Expected life is calculated using the simplified method.
(2)
The Company determines its expected volatility based on the Company's historical volatility.
Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the years ended December 31, 2022, 2021, and 2020.

 

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2019

 

 

550,040

 

 

$

2.14 - 13.53

 

 

$

6.58

 

Granted

 

 

444,557

 

 

 

4.89 - 6.68

 

 

 

6.24

 

Cancelled

 

 

(42,928

)

 

 

2.22 - 13.53

 

 

 

6.91

 

Exercised (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at December 31, 2020 (2)

 

 

951,669

 

 

 

2.14 - 12.55

 

 

 

6.41

 

Granted

 

 

317,398

 

 

 

 

6.79

 

 

 

6.79

 

Cancelled

 

 

(113,310

)

 

 

4.89 - 11.53

 

 

 

6.64

 

Exercised (1)

 

 

(44,070

)

 

 

5.21 - 7.25

 

 

 

5.58

 

Outstanding at December 31, 2021 (2)

 

 

1,111,687

 

 

 

2.14-12.55

 

 

 

6.41

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(26,093

)

 

 

4.89 - 12.55

 

 

 

7.08

 

Exercised (1)

 

 

(23,745

)

 

 

4.89 - 7.25

 

 

 

6.51

 

Outstanding at December 31, 2022 (2)

 

 

1,061,849

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options exercisable at

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

178,307

 

 

$

2.14-12.55

 

 

$

6.33

 

December 31, 2021

 

 

320,922

 

 

 

2.14-12.55

 

 

 

6.53

 

December 31, 2022

 

 

548,426

 

 

 

2.14 - 9.38

 

 

 

6.51

 
(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 $0.1 million, $0.2 million, and $0 for the years ended December 31, 2022, 2021, and 2020.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $0.7 million for outstanding options and $0.4 million for exercisable options as of December 31, 2022. The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022.
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the years ended December 31, 2022, 2021, and 2020.

 

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2019

 

 

284,879

 

 

$

3.95 - 7.25

 

$

6.01

 

Granted

 

 

229,408

 

 

 

4.89 - 6.68

 

 

6.21

 

Cancelled

 

 

(8,755

)

 

 

3.95 - 7.25

 

 

6.93

 

Vested (1)

 

 

(89,392

)

 

 

3.95 - 6.55

 

 

5.37

 

Outstanding at December 31, 2020

 

 

416,140

 

 

 

4.39 - 7.25

 

 

6.24

 

Granted

 

 

258,120

 

 

 

6.79 - 8.40

 

 

7.38

 

Cancelled

 

 

(21,940

)

 

 

4.89 - 7.25

 

 

5.98

 

Vested (1)

 

 

(158,994

)

 

 

4.39 - 7.25

 

 

6.16

 

Outstanding at December 31, 2021 (2)

 

 

493,326

 

 

 

4.89 - 7.25

 

 

6.87

 

Granted

 

 

522,475

 

 

 

6.86 -7.68

 

 

7.46

 

Cancelled

 

 

(29,373

)

 

 

4.89 - 8.40

 

 

7.32

 

Vested (1)

 

 

(129,140

)

 

 

4.89 - 7.25

 

 

6.53

 

Outstanding at December 31, 2022(2)

 

 

857,288

 

 

$

4.89 - 7.25

 

$

7.27

 
(1)
The aggregate fair value of the restricted stock vested was $1.0 million, $1.1 million, and $0.6 million for the years ended December 31, 2022, 2021, and 2020.
The aggregate fair value of the restricted stock was $6.1 million as of December 31, 2022. The remaining vesting period was 2.17 years at December 31, 2022.
Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2022.

 

 

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

 

 

(20,370

)

 

 

4.89 - 7.25

 

 

 

6.34

 

Vested

 

 

(256,972

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at December 31, 2022

 

 

513,423

 

 

$

4.89 - 7.25

 

 

$

6.52

 
v3.22.4
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Data The following table presents segment data as of and for the year ended December 31, 2022.

Year Ended December 31, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

139,145

 

 

$

44,703

 

 

$

9,348

 

 

$

632

 

 

$

2,793

 

 

$

196,621

 

Total interest expense

 

 

17,932

 

 

 

7,697

 

 

 

3,040

 

 

 

508

 

 

 

7,008

 

 

 

36,185

 

Net interest income (loss)

 

 

121,213

 

 

 

37,006

 

 

 

6,308

 

 

 

124

 

 

 

(4,215

)

 

 

160,436

 

Provision (benefit) for loan losses

 

 

22,802

 

 

 

7,616

 

 

 

5,963

 

 

 

(6,474

)

 

 

152

 

 

 

30,059

 

Net interest income (loss) after loss provision

 

 

98,411

 

 

 

29,390

 

 

 

345

 

 

 

6,598

 

 

 

(4,367

)

 

 

130,377

 

Other expense, net

 

 

(30,463

)

 

 

(13,500

)

 

 

(1,604

)

 

 

(6,179

)

 

 

(10,781

)

 

 

(62,527

)

Net income (loss) before taxes

 

 

67,948

 

 

 

15,890

 

 

 

(1,259

)

 

 

419

 

 

 

(15,148

)

 

 

67,850

 

Income tax (provision) benefit

 

 

(17,989

)

 

 

(4,207

)

 

 

333

 

 

 

(111

)

 

 

4,011

 

 

 

(17,963

)

Net income (loss) after taxes

 

 

49,959

 

 

 

11,683

 

 

 

(926

)

 

 

308

 

 

 

(11,137

)

 

 

49,887

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,047

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

43,840

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

1,141,546

 

 

$

615,059

 

 

$

91,850

 

 

$

4,081

 

 

$

572

 

 

$

1,853,108

 

Total assets

 

 

1,154,680

 

 

 

618,923

 

 

 

101,447

 

 

 

24,648

 

 

 

360,181

 

 

 

2,259,879

 

Total funds borrowed

 

 

936,789

 

 

 

502,131

 

 

 

82,304

 

 

 

19,997

 

 

 

292,214

 

 

 

1,833,435

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.71

%

 

 

2.23

%

 

 

(0.90

)%

 

 

0.74

%

 

 

(3.12

)%

 

 

2.40

%

Return on average equity

 

 

26.83

 

 

 

12.72

 

 

 

(5.28

)

 

 

4.03

 

 

 

(18.62

)

 

 

13.74

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

14.92

 

Interest yield

 

 

13.28

 

 

 

8.64

 

 

 

10.78

 

 

 

14.05

 

 

N/A

 

 

 

11.06

 

Net interest margin

 

 

11.57

 

 

 

7.16

 

 

 

7.28

 

 

 

2.76

 

 

N/A

 

 

 

9.05

 

Reserve coverage

 

 

3.55

 

 

 

1.81

 

 

 

1.13

 

 

 

69.93

 

 

N/A

 

 

 

3.33

 

Delinquency status(1)

 

 

0.64

 

 

 

0.09

 

 

 

0.08

 

 

 

6.52

 

 

N/A

 

 

 

0.47

 

Charge-off ratio(2)

 

 

1.27

 

 

 

0.70

 

 

 

6.96

 

 

 

(145.76

)

 

N/A

 

 

 

0.99

 

 

(1)
Loans 90 days or more past due.
(2)
Negative balances indicate recoveries for the period

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the year ended December 31, 2021.

Year Ended December 31, 2021

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC (2)

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

118,305

 

 

$

34,204

 

 

$

6,592

 

 

$

(1,483

)

 

$

—

 

 

$

1,348

 

 

$

158,966

 

Total interest expense

 

 

9,993

 

 

 

4,153

 

 

 

2,720

 

 

 

5,914

 

 

 

546

 

 

 

7,814

 

 

 

31,140

 

Net interest income (loss)

 

 

108,312

 

 

 

30,051

 

 

 

3,872

 

 

 

(7,397

)

 

 

(546

)

 

 

(6,466

)

 

 

127,826

 

Provision (benefit) for loan losses

 

 

7,671

 

 

 

2,750

 

 

 

—

 

 

 

(7,752

)

 

 

—

 

 

 

1,953

 

 

 

4,622

 

Net interest income (loss) after loss provision

 

 

100,641

 

 

 

27,301

 

 

 

3,872

 

 

 

355

 

 

 

(546

)

 

 

(8,419

)

 

 

123,204

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,567

 

 

 

—

 

 

 

12,567

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,559

)

 

 

—

 

 

 

(9,559

)

Other income (expense), net

 

 

(30,156

)

 

 

(11,640

)

 

 

3,101

 

 

 

(1,991

)

 

 

(5,108

)

 

 

1,453

 

 

 

(44,341

)

Net income (loss) before taxes

 

 

70,485

 

 

 

15,661

 

 

 

6,973

 

 

 

(1,636

)

 

 

(2,646

)

 

 

(6,966

)

 

 

81,871

 

Income tax (provision) benefit

 

 

(18,699

)

 

 

(4,155

)

 

 

(1,850

)

 

 

433

 

 

 

(1,498

)

 

 

1,552

 

 

 

(24,217

)

Net income (loss) after taxes

 

 

51,786

 

 

 

11,506

 

 

 

5,123

 

 

 

(1,203

)

 

 

(4,144

)

 

 

(5,414

)

 

 

57,654

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,546

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

54,108

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

928,885

 

 

$

429,416

 

 

$

73,713

 

 

$

4,812

 

 

$

—

 

 

$

1,932

 

 

$

1,438,758

 

Total assets

 

 

896,223

 

 

 

371,781

 

 

 

103,631

 

 

 

42,011

 

 

 

—

 

 

 

459,411

 

 

 

1,873,057

 

Total funds borrowed

 

 

710,616

 

 

 

294,786

 

 

 

82,169

 

 

 

69,221

 

 

 

—

 

 

 

328,358

 

 

 

1,485,150

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

6.00

%

 

 

3.01

%

 

 

5.85

%

 

 

(1.15

)%

 

 

20.35

%

 

 

(1.89

)%

 

 

3.33

%

Return on average equity

 

 

30.01

 

 

 

15.04

 

 

 

29.23

 

 

 

(5.75

)

 

 

885.29

 

 

 

(13.62

)

 

 

17.64

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

21.24

 

Interest yield

 

 

13.94

 

 

 

9.30

 

 

 

10.41

 

 

 

(18.77

)

 

N/A

 

 

N/A

 

 

 

11.48

 

Net interest margin

 

 

12.76

 

 

 

8.17

 

 

 

6.12

 

 

 

(93.60

)

 

N/A

 

 

N/A

 

 

 

9.26

 

Reserve coverage

 

 

3.37

 

 

 

1.68

 

 

 

1.49

 

 

 

65.74

 

 

N/A

 

 

N/A

 

 

 

3.37

 

Delinquency status(1)

 

 

0.41

 

 

 

0.03

 

 

 

0.10

 

 

 

—

 

 

N/A

 

 

N/A

 

 

 

0.28

 

Charge-off ratio

 

 

0.30

 

 

 

0.15

 

 

 

—

 

 

 

95.40

 

 

N/A

 

 

N/A

 

 

 

0.85

 
(1)
Loans 90 days or more past due.
(2)
The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale.

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the year ended December 31, 2020.

Year Ended December 31, 2020

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

RPAC

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income (loss)

 

$

110,706

 

 

$

27,273

 

 

$

6,926

 

 

$

(1,518

)

 

$

—

 

 

$

1,575

 

 

$

144,962

 

Total interest expense

 

 

13,013

 

 

 

5,699

 

 

 

2,538

 

 

 

3,610

 

 

 

163

 

 

 

9,128

 

 

 

34,151

 

Net interest income (loss)

 

 

97,693

 

 

 

21,574

 

 

 

4,388

 

 

 

(5,128

)

 

 

(163

)

 

 

(7,553

)

 

 

110,811

 

Provision for loan losses

 

 

23,736

 

 

 

3,778

 

 

 

—

 

 

 

42,276

 

 

 

—

 

 

 

27

 

 

 

69,817

 

Net interest income (loss) after loss provision

 

 

73,957

 

 

 

17,796

 

 

 

4,388

 

 

 

(47,404

)

 

 

(163

)

 

 

(7,580

)

 

 

40,994

 

Sponsorship and race winnings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,042

 

 

 

—

 

 

 

20,042

 

Race team related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,366

)

 

 

—

 

 

 

(8,366

)

Other expense, net

 

 

(27,341

)

 

 

(9,611

)

 

 

(3,196

)

 

 

(30,366

)

 

 

(7,973

)

 

 

(11,164

)

 

 

(89,651

)

Net income (loss) before taxes

 

 

46,616

 

 

 

8,185

 

 

 

1,192

 

 

 

(77,770

)

 

 

3,540

 

 

 

(18,744

)

 

 

(36,981

)

Income tax (provision) benefit

 

 

(12,004

)

 

 

(2,108

)

 

 

(299

)

 

 

19,520

 

 

 

(889

)

 

 

5,854

 

 

 

10,074

 

Net income (loss) after taxes

 

 

34,612

 

 

 

6,077

 

 

 

893

 

 

 

(58,250

)

 

 

2,651

 

 

 

(12,890

)

 

 

(26,907

)

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,876

 

Total net loss attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(34,783

)

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans net

 

$

765,338

 

 

$

328,876

 

 

$

62,037

 

 

$

12,725

 

 

$

—

 

 

$

3,314

 

 

$

1,172,290

 

Total assets

 

 

777,605

 

 

 

340,494

 

 

 

80,622

 

 

 

124,554

 

 

 

33,711

 

 

 

285,425

 

 

 

1,642,411

 

Total funds borrowed

 

 

621,735

 

 

 

272,284

 

 

 

65,924

 

 

 

98,636

 

 

 

8,689

 

 

 

244,987

 

 

 

1,312,255

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.59

%

 

 

2.07

%

 

 

1.07

%

 

 

(33.21

)%

 

 

7.98

%

 

 

(5.06

)%

 

 

(1.67

)%

Return on average equity

 

 

22.93

 

 

 

10.35

 

 

 

5.17

 

 

 

(165.21

)

 

 

(363.66

)

 

 

(23.29

)

 

 

8.43

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

(14.06

)

Interest yield

 

 

14.90

 

 

 

9.66

 

 

 

10.51

 

 

 

(2.11

)

 

N/A

 

 

N/A

 

 

 

11.32

 

Net interest margin

 

 

13.15

 

 

 

7.62

 

 

 

6.66

 

 

 

(7.14

)

 

N/A

 

 

N/A

 

 

 

8.65

 

Reserve coverage

 

 

3.45

 

 

 

1.54

 

 

 

0.00

 

 

 

66.31

 

 

N/A

 

 

N/A

 

 

 

4.68

 

Delinquency status(1)

 

 

0.70

 

 

 

0.05

 

 

 

0.11

 

 

 

3.57

 

 

N/A

 

 

N/A

 

 

 

0.57

 

Charge-off ratio

 

 

1.95

 

 

 

0.44

 

 

 

0.04

 

 

 

59.38

 

 

N/A

 

 

N/A

 

 

 

5.00

 
(1)
Loans 90 days or more past due.

(*) Line item is not applicable to segments.
v3.22.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Under Employment Agreements future minimum payments under these agreements of approximately $11.8 million as follows:

(Dollars in thousands)

 

 

 

2023

 

$

4,128

 

2024

 

 

2,493

 

2025

 

 

2,131

 

2026

 

 

2,131

 

2027

 

 

888

 

Thereafter

 

 

—

 

Total

 

$

11,771

 
v3.22.4
Stockholders'/Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]  
Schedule of Repurchase Agreements

The following table presents the Company’s purchases for the year ended December 31, 2022.

 

 

Total Shares of Common Stock Repurchased

 

 

Average Price Paid per Share

 

 

Total
Amount Paid

 

 

Maximum Value of Shares Yet to Be Purchased

 

January 1 - January 31

 

 

—

 

 

$

—

 

 

$

—

 

 

$

22,874,509

 

February 1 - February 28

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,874,509

 

March 1 - March 31

 

 

67,660

 

 

 

9.12

 

 

 

616,855

 

 

 

22,257,654

 

April 1 - April 30

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22,257,654

 

May 1 - May 31

 

 

1,056,933

 

 

 

7.87

 

 

 

8,316,012

 

 

 

26,683,988

 

June 1 - June 30

 

 

215,217

 

 

 

7.71

 

 

 

1,658,542

 

 

 

25,025,447

 

July 1 - July 31

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,025,447

 

August 1 - August 31

 

 

734,547

 

 

 

7.93

 

 

 

5,822,227

 

 

 

24,203,219

 

September 1 - September 30

 

 

319,323

 

 

 

7.54

 

 

 

2,408,673

 

 

 

21,794,546

 

October 1 - October 31

 

 

257,231

 

 

 

6.98

 

 

 

1,796,534

 

 

 

19,998,012

 

November 1 - November 30

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,998,012

 

December 1 - December 31

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,998,012

 

Total

 

 

2,650,911

 

 

$

7.78

 

 

 

20,618,843

 

 

$

19,998,012

 
v3.22.4
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Investments, All Other Investments [Abstract]  
Summary of Carrying Values and Fair Values of Financial Instruments The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

 

December 31,

 

 

 

2022

 

 

2021

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

105,598

 

 

$

105,598

 

 

$

124,484

 

 

$

124,484

 

Equity investments

 

 

10,293

 

 

 

10,293

 

 

 

9,726

 

 

 

9,726

 

Investment securities

 

 

48,492

 

 

 

48,492

 

 

 

44,772

 

 

 

44,772

 

Loans receivable

 

 

1,853,108

 

 

 

1,853,108

 

 

 

1,438,758

 

 

 

1,438,758

 

Accrued interest receivable (2)

 

 

12,613

 

 

 

12,613

 

 

 

10,621

 

 

 

10,621

 

Equity securities(3)

 

 

1,724

 

 

 

1,724

 

 

 

1,950

 

 

 

1,950

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

1,833,434

 

 

 

1,833,434

 

 

 

1,478,001

 

 

 

1,478,001

 

Accrued interest payable (2)

 

 

4,790

 

 

 

4,790

 

 

 

3,395

 

 

 

3,395

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million as of December 31, 2022 and $1.3 million as of December 31, 2021 of interest-bearing deposits categorized as level 2. See Note 15.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 15.
(3)
Included within other assets on the balance sheet.
v3.22.4
Fair Value of Assets and liabilities (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

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

December 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

48,492

 

 

 

—

 

 

 

48,492

 

Equity securities

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

1,724

 

Total(1)

 

$

1,724

 

 

$

49,742

 

 

$

—

 

 

$

51,466

 
(1)
Total unrealized losses of $4.4 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2022 related to these assets.

December 31, 2021
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

44,772

 

 

 

—

 

 

 

44,772

 

Equity securities

 

 

1,950

 

 

 

—

 

 

 

—

 

 

 

1,950

 

Total(1)

 

$

1,950

 

 

$

46,022

 

 

$

—

 

 

$

47,972

 
(1)
Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

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

December 31, 2022
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,293

 

 

$

10,293

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

32,133

 

 

 

32,133

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

21,819

 

 

 

21,819

 

Total

 

$

—

 

 

$

—

 

 

$

64,245

 

 

$

64,245

 

 

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 December 31, 2022 and 2021.

(Dollars in thousands)

 

Fair Value
at December 31, 2022

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,020

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

273

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

32,133

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 6.55%

 

 

 

 

 

 

 

 

 

60% of balance

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

21,819

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.5 - 54.1

 

(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.
v3.22.4
Parent Company Only Condensed Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheets

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

Condensed Balance Sheets

 

 

December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Cash

 

$

20,669

 

 

$

40,540

 

Investment in bank subsidiary(1)

 

 

479,496

 

 

 

367,945

 

Investment in non-bank subsidiaries

 

 

83,727

 

 

 

88,018

 

Income tax receivable

 

 

22,835

 

 

 

18,763

 

Loan collateral in process of foreclosure

 

 

2,001

 

 

 

5,811

 

Net loans receivable

 

 

2,538

 

 

 

3,302

 

Other assets

 

 

7,603

 

 

 

8,674

 

Total assets

 

$

618,869

 

 

$

533,053

 

Liabilities

 

 

 

 

 

 

Long-term borrowings(2)

 

$

151,808

 

 

$

151,103

 

Deferred tax liabilities

 

 

38,091

 

 

 

35,799

 

Intercompany payables

 

 

33,378

 

 

 

39,703

 

Other liabilities

 

 

25,068

 

 

 

19,408

 

Total liabilities

 

 

248,345

 

 

 

246,013

 

Total stockholders’ equity

 

 

370,524

 

 

 

287,040

 

Total liabilities and equity

 

$

618,869

 

 

$

533,053

 
(1)
Includes $172.8 million and $174.3 million of goodwill and intangible assets of the Company which relate specifically to the Bank.
(2)
Includes $2.1 million and $2.9 million of deferred financing costs as of December 31, 2022 and 2021.
Condensed Statements of Operations

Condensed Statements of Operations

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Interest and dividend income

 

$

24,631

 

 

$

16,446

 

 

$

4,773

 

Interest expense

 

 

11,289

 

 

 

11,209

 

 

 

8,602

 

Net interest income (loss)

 

 

13,342

 

 

 

5,237

 

 

 

(3,829

)

Provision (benefit) for loan losses

 

 

(353

)

 

 

(4,718

)

 

 

5,127

 

Net interest income (loss) after provision for loan losses

 

 

13,695

 

 

 

9,955

 

 

 

(8,956

)

Other expense, net

 

 

(18,423

)

 

 

(6,224

)

 

 

(22,062

)

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

 

 

(4,728

)

 

 

3,731

 

 

 

(31,018

)

Income tax benefit

 

 

7,940

 

 

 

4,452

 

 

 

10,454

 

Income (loss) before undistributed earnings of subsidiaries

 

 

3,212

 

 

 

8,183

 

 

 

(20,564

)

Undistributed earnings (losses) of subsidiaries

 

 

40,628

 

 

 

45,925

 

 

 

(14,219

)

Net income (loss) attributable to parent company

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)
Condensed Statements of Other Comprehensive Income (Loss)

Condensed Statements of Other Comprehensive Income (Loss)

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

Net (income) loss

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

Other comprehensive income (loss)

 

 

(4,383

)

 

 

(978

)

 

 

1,013

 

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

 

$

39,457

 

 

$

53,130

 

 

$

(33,770

)

 
Condensed Statements of Cash Flow

Condensed Statements of Cash Flow

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

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

 

$

43,840

 

 

$

54,108

 

 

$

(34,783

)

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

 

 

 

 

 

 

 

 

 

Equity in undistributed (earnings) losses of subsidiaries

 

 

(64,300

)

 

 

(60,304

)

 

 

6,622

 

(Benefit) provision for loan losses

 

 

(353

)

 

 

(4,718

)

 

 

5,127

 

Depreciation and amortization

 

 

2,740

 

 

 

4,485

 

 

 

5,357

 

Change in deferred and other tax assets/liabilities, net

 

 

(1,780

)

 

 

(5,666

)

 

 

(3,317

)

Net change in loan collateral in process of foreclosure

 

 

64

 

 

 

1,619

 

 

 

4,940

 

Net change in unrealized depreciation on investments

 

 

—

 

 

 

—

 

 

 

3,493

 

Gain on extinguishment of debt

 

 

—

 

 

 

(2,204

)

 

 

—

 

Net realized gains on sale of investments

 

 

—

 

 

 

(11,701

)

 

 

—

 

Stock-based compensation expense

 

 

3,476

 

 

 

2,261

 

 

 

2,031

 

Decrease (increase) in other assets

 

 

1,055

 

 

 

(1,150

)

 

 

2,299

 

Increase in deferred financing costs

 

 

(39

)

 

 

(1,504

)

 

 

(1,233

)

Decrease in intercompany payables

 

 

(6,325

)

 

 

(11,649

)

 

 

(3,552

)

(Decrease) increase in other liabilities

 

 

5,430

 

 

 

(1,894

)

 

 

2,336

 

Net cash used for operating activities

 

 

(16,192

)

 

 

(38,317

)

 

 

(10,680

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Loans originated

 

 

(92

)

 

 

—

 

 

 

(14

)

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

 

 

723

 

 

 

28,552

 

 

 

1,193

 

Purchases of investments

 

 

—

 

 

 

(90

)

 

 

(2,304

)

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

 

 

3,697

 

 

 

666

 

 

 

1,276

 

Investment in subsidiaries

 

 

(4,750

)

 

 

(3,500

)

 

 

 

Dividends from subsidiaries

 

 

24,750

 

 

 

19,000

 

 

 

7,597

 

Net cash provided by investing activities

 

 

24,328

 

 

 

44,628

 

 

 

7,748

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Proceeds from funds borrowed

 

 

—

 

 

 

51,400

 

 

 

33,600

 

Repayments of funds borrowed

 

 

—

 

 

 

(51,155

)

 

 

(1,402

)

Treasury stock repurchased

 

 

(20,619

)

 

 

—

 

 

 

—

 

Dividends paid to shareholders

 

 

(7,543

)

 

 

—

 

 

 

—

 

Proceeds from the exercise of stock options

 

 

155

 

 

 

241

 

 

 

—

 

Net cash (used for) provided by financing activities

 

 

(28,007

)

 

 

486

 

 

 

32,198

 

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

 

(19,871

)

 

 

6,797

 

 

 

29,266

 

Cash and cash equivalents, beginning of period

 

 

40,540

 

 

 

33,743

 

 

 

4,477

 

Cash and cash equivalents, end of period

 

$

20,669

 

 

$

40,540

 

 

$

33,743

 
v3.22.4
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
Dec. 31, 2022
USD ($)
Medallion Financing Trust I [Member]  
Subsidiary or Equity Method Investee [Line Items]  
Aggregate assets of trust $ 34.0
v3.22.4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Apr. 02, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Interest-bearing funds deposited in other banks $ 1,300,000      
Non-marketable securities 10,300,000 $ 9,700,000    
Impact of equity investment 2,400,000      
Past Due 57,618,000 41,761,000    
Notes receivable net 79,500      
Investment securities Amortized to interest income 100,000 100,000 $ 300,000  
Appreciation in Investment in Medallion Bank   26,200,000    
Net loan origination costs 34,900,000 26,100,000    
Net amortization to income $ 8,700,000 8,000,000.0 6,000,000.0  
Percentage of write down of loan balance 40.00%      
Principal portion of loans serviced, fair value $ 19,500,000 20,500,000    
Loans write down to collateral value $ 39,845,000 32,948,000    
Intangible assets useful life 20 years      
Goodwill $ 150,803,000 150,803,000    
Intangible assets, net 22,035,000 23,480,000    
Amortization of intangible assets 1,445,000 1,445,000 1,445,000  
Financing receivable, recorded investment, 90 days past due and still accruing 0 0    
Depreciation and amortization 400,000 300,000 400,000  
Amortization expense 2,600,000 2,400,000 $ 2,600,000  
Deferred costs $ 7,000,000.0 $ 7,100,000    
Potential dilutive common shares excluded from EPS computation 347,963 421,190 934,003  
Stock based compensation award 0 317,398 444,557  
Stock based compensation award, Amount $ 3,500,000 $ 2,300,000 $ 2,000,000.0  
Stock based compensation award per diluted common share $ 0.15 $ 0.09 $ 0.08  
Unrecognized compensation cost related to unvested stock options and restricted stock $ 3,900,000      
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period 9 months      
Tier 1 leverage capital to total assets ratio 15.00%      
Tier 1 leverage capital ratio 16.20%      
Capital conversation buffer 2.50% 2.50%    
Consumer Loan [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Allowance for credit losses $ 11,600,000      
Commercial Loan [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Allowance for credit losses $ 2,200,000      
Restricted Shares [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Stock based compensation award 522,475 258,120 229,408  
Restricted Stock Units [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Stock based compensation award 129,638 16,803 47,156  
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 $ 0 $ 500,000    
Loan portfolio premium amortized to interest income 500,000 2,200,000 $ 3,000,000.0  
Medallion Bank [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Amortization of intangible assets 0      
New York City [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Loans write down to collateral value 79,500      
91+ [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Past Due 8,903,000 4,024,000    
91+ [Member] | Loans [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Past Due $ 8,900,000 $ 4,000,000.0    
Total loans more than 90 days past due ,percentage 0.47% 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 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 3 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 5 years      
Estimated useful life of fixed assets 10 years      
v3.22.4
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Equity Securities, FV-NI, Gain (Loss) [Abstract]    
Net losses recognized during the period on equity securities $ (226) $ (50)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (226) $ (50)
v3.22.4
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Investments In Loans [Line Items]    
Intangibles assets $ 22,035 $ 23,480
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 16,775 17,874
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 5,260 $ 5,606
v3.22.4
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Net income (loss) available to common stockholders $ 43,840 $ 54,108 $ (34,783)
Weighted average common shares outstanding applicable to basic EPS 23,583,049 24,599,804 24,445,452
Effect of dilutive stock options 67,825 92,602 0
Effect of restricted stock grants 276,469 250,763 0
Adjusted weighted average common shares outstanding applicable to diluted EPS 23,927,342 24,943,169 24,445,452
Basic income (loss) per share $ 1.86 $ 2.20 $ (1.42)
Diluted income (loss) per share $ 1.83 $ 2.17 $ (1.42)
v3.22.4
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Accounting Policies [Abstract]    
Regulatory, Minimum, Leverage ratio [1] 0.040  
Regulatory, Minimum, Common equity tier 1 capital ratio [2] 7.00%  
Regulatory, Minimum, Tier 1 Buffer capital ratio [3] 8.50%  
Regulatory, Minimum, Total capital ratio [3] 0.105  
Regulatory, Well-Capitalized, Leverage ratio [1] 0.050  
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio [2] 6.50%  
Regulatory, Well-Capitalized, Tier 1 capital ratio [3] 0.080  
Regulatory, Well-Capitalized, Total capital ratio [3] 0.100  
Common equity tier 1 capital $ 242,049 $ 193,459
Tier 1 capital 310,837 262,247
Total capital 334,913 281,211
Average assets 1,917,904 1,495,726
Risk-weighted assets $ 1,888,530 $ 1,482,678
Leverage ratio [1] 0.162 0.175
Common equity tier 1 capital ratio [2] 0.128 0.131
Tier 1 capital ratio [3] 0.165 0.177
Total capital ratio [3] 0.177 0.190
[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.
v3.22.4
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 54,301 $ 44,494
Gross Unrealized Gains 13 732
Gross Unrealized Losses (5,822) (454)
Fair Value 48,492 44,772
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 43,286 35,469
Gross Unrealized Gains 0 672
Gross Unrealized Losses (4,933) (403)
Fair Value 38,353 35,738
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 11,015 9,025
Gross Unrealized Gains 13 60
Gross Unrealized Losses (889) (51)
Fair Value $ 10,139 $ 9,034
v3.22.4
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 0  
Amortized Cost, due after one year through five years 9,625  
Amortized Cost, due after five years through ten years 9,303  
Amortized Cost, due after ten years 35,373  
Amortized Cost 54,301 $ 44,494
Market Value, due in one year or less 0  
Market Value, due after one year through five years 9,222  
Market Value, due after five years through ten years 8,170  
Market Value, due after ten years 31,100  
Market Value, total $ 48,492 $ 44,772
v3.22.4
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (1,017) $ (412)
Fair Value, Less than Twelve Months 16,949 18,454
Gross Unrealized Losses, Twelve Months and Over (4,805) (42)
Fair Value, Twelve Months and Over 29,525 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 (731) (403)
Fair Value, Less than Twelve Months 12,321 16,330
Gross Unrealized Losses, Twelve Months and Over (4,202) 0
Fair Value, Twelve Months and Over 26,023 0
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (286) (9)
Fair Value, Less than Twelve Months 4,628 2,124
Gross Unrealized Losses, Twelve Months and Over (603) (42)
Fair Value, Twelve Months and Over $ 3,502 $ 1,956
v3.22.4
Investment Securities - Additional Information (Detail) - Securities
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-Sale [Abstract]    
Number of Securities 57 15
v3.22.4
Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 1,882,585 $ 1,461,622 [1]  
Allowance for loan losses (63,845) [2] (50,166) [2] $ (57,548)
Net loans receivable 1,853,108 1,438,758 1,172,290
Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans 1,916,953 1,488,924 1,229,838
Allowance for loan losses (63,845) (50,166)  
Net loans receivable $ 1,853,108 $ 1,438,758  
Percentage of total gross loans 100.00% 100.00%  
Recreation [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 1,146,095 $ 931,859 [1]  
Allowance for loan losses (41,966) (32,435)  
Recreation [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 1,183,512 $ 961,320 792,686
Percentage of total gross loans 62.00% 65.00%  
Home Improvement [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 628,877 $ 438,931 [1]  
Allowance for loan losses (11,340) (7,356)  
Home Improvement [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 626,399 $ 436,772 334,033
Percentage of total gross loans 33.00% 29.00%  
Commercial [Member]      
Student Loan Portfolio By Program [Line Items]      
Allowance for loan losses $ (1,049) $ (1,141)  
Commercial [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 92,899 $ 76,696 65,327
Percentage of total gross loans 5.00% 5.00%  
Medallion [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 13,571 $ 14,046 [1]  
Allowance for loan losses (9,490) (9,234)  
Medallion [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 13,571 $ 14,046 37,768
Percentage of total gross loans 1.00% 1.00%  
Strategic Partnership [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 572 $ 90 [1]  
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]      
Student Loan Portfolio By Program [Line Items]      
Total gross loans $ 572 $ 90 $ 24
[1] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[2] As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.4
Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] $ 1,461,622    
Charge-offs, net [2] (16,380) $ (12,004)  
Transfer to loan collateral in process of foreclosure, net (12,791) (15,888)  
Amortization of origination costs (8,707) (7,996) $ (6,022)
Paid-in-kind interest 724 814 1,188
Loans transferred to other foreclosed property 0 0 1,800
Gross loans, ending balance 1,882,585 1,461,622 [1]  
Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 931,859    
Transfer to loan collateral in process of foreclosure, net (12,444) (10,431)  
Gross loans, ending balance 1,146,095 931,859 [1]  
Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 438,931    
Gross loans, ending balance 628,877 438,931 [1]  
Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 14,046    
Transfer to loan collateral in process of foreclosure, net (347) [3] (5,457) [4]  
Paid-in-kind interest 0    
Gross loans, ending balance 13,571 14,046 [1]  
Strategic Partnership [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance [1] 90    
Charge-offs, net 0 0  
Gross loans, ending balance 572 90 [1]  
Bank Holding Company Accounting [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 1,488,924 1,229,838  
Loan originations 983,908 747,371  
Principal payments, sales, maturities, and recoveries (511,602) (443,504)  
Charge-offs, net (39,845) (32,948)  
Transfer to loan collateral in process of foreclosure, net (12,791) (15,888)  
Amortization of origination costs (8,707) (7,996)  
Amortization of loan premium (535) (2,182)  
FASB origination costs, net 16,877 13,419  
Paid-in-kind interest 724 814  
Gross loans, ending balance 1,916,953 1,488,924 1,229,838
Bank Holding Company Accounting [Member] | Recreation [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 961,320 792,686  
Loan originations 513,062 441,921  
Principal payments, sales, maturities, and recoveries (259,326) (252,293)  
Charge-offs, net (27,055) (14,712)  
Transfer to loan collateral in process of foreclosure, net (12,444) (10,431)  
Amortization of origination costs (10,470) (9,678)  
Amortization of loan premium (213) (221)  
FASB origination costs, net 18,638 14,048  
Paid-in-kind interest 0 0  
Gross loans, ending balance 1,183,512 961,320 792,686
Bank Holding Company Accounting [Member] | Home Improvement [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 436,772 334,033  
Loan originations 392,543 258,038  
Principal payments, sales, maturities, and recoveries (196,203) (153,044)  
Charge-offs, net (6,393) (2,949)  
Transfer to loan collateral in process of foreclosure, net 0 0  
Amortization of origination costs 1,763 1,671  
Amortization of loan premium (322) (346)  
FASB origination costs, net (1,761) (631)  
Paid-in-kind interest 0 0  
Gross loans, ending balance 626,399 436,772 334,033
Bank Holding Company Accounting [Member] | Commercial [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 76,696 65,327  
Loan originations 28,172 36,415  
Principal payments, sales, maturities, and recoveries (6,610) (25,873)  
Charge-offs, net (6,083) 0  
Transfer to loan collateral in process of foreclosure, net 0 0  
Amortization of origination costs 0 13  
Amortization of loan premium 0 0  
FASB origination costs, net 0 0  
Paid-in-kind interest 724 814  
Gross loans, ending balance 92,899 76,696 65,327
Bank Holding Company Accounting [Member] | Medallion [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 14,046 37,768  
Loan originations 605 0  
Principal payments, sales, maturities, and recoveries (419) (1,363)  
Charge-offs, net (314) (15,287)  
Transfer to loan collateral in process of foreclosure, net (347) (5,457)  
Amortization of origination costs 0 (2)  
Amortization of loan premium 0 (1,615)  
FASB origination costs, net 0 2  
Paid-in-kind interest   0  
Gross loans, ending balance 13,571 14,046 37,768
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]      
Schedule Of Gross Real Estate And Loan Activity [Line Items]      
Gross loans, beginning balance 90 24  
Loan originations 49,526 10,997  
Principal payments, sales, maturities, and recoveries (49,044) (10,931)  
Charge-offs, net 0 0  
Transfer to loan collateral in process of foreclosure, net 0 0  
Amortization of origination costs 0 0  
Amortization of loan premium 0 0  
FASB origination costs, net 0 0  
Paid-in-kind interest 0 0  
Gross loans, ending balance $ 572 $ 90 $ 24
[1] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[2] As of December 31, 2022, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $244.2 million, some of which represent collection opportunities for the Company.
[3] As of December 31, 2022, medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets.
[4] As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets.
v3.22.4
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance $ 50,166 [1] $ 57,548  
Total charge-offs (39,845) (32,948)  
Total recoveries 23,465 20,944  
Net charge-offs [2] (16,380) (12,004)  
Provision for loan losses 30,059 4,622 $ 69,817
Allowance for loan losses - ending balance 63,845 [1] 50,166 [1] $ 57,548
Recreation [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance 32,435    
Total charge-offs (27,055) (14,712)  
Total recoveries 13,785 12,131  
Allowance for loan losses - ending balance 41,966 32,435  
Home Improvement [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance 7,356    
Total charge-offs (6,393) (2,949)  
Total recoveries 2,761 2,398  
Allowance for loan losses - ending balance 11,340 7,356  
Commercial [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance 1,141    
Total charge-offs 47 0  
Total recoveries 6,083 0  
Allowance for loan losses - ending balance 1,049 1,141  
Medallion [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Allowance for loan losses - beginning balance 9,234    
Total charge-offs (314) (15,287)  
Total recoveries 6,872 6,415  
Allowance for loan losses - ending balance $ 9,490 $ 9,234  
[1] As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2] As of December 31, 2022, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $244.2 million, some of which represent collection opportunities for the Company.
v3.22.4
Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]      
Cumulative charges of loans and loans process of foreclosure $ 21,819 [1] $ 37,430 [1] $ 54,560
Allowance for loan losses - ending balance 63,845 [2] 50,166 [2] $ 57,548
Net charge-offs [3] 16,380 12,004  
Strategic Partnership [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Net charge-offs 0 $ 0  
Medallion Bank [Member]      
Financing Receivable, Allowance for Credit Losses [Line Items]      
Cumulative charges of loans and loans process of foreclosure $ 244,200    
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $7.5 million and $7.4 million as of December 31, 2022 and 2021.
[2] As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3] As of December 31, 2022, cumulative charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $244.2 million, some of which represent collection opportunities for the Company.
v3.22.4
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 63,845 [1] $ 50,166 [1] $ 57,548
Percentage of Allowance 100.00% 100.00%  
Allowance as a Percent of Loan Category 3.33% 3.37%  
Allowance as a Percent of Nonaccrual 198.69% 141.03%  
Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 41,966 $ 32,435  
Percentage of Allowance 66.00% 64.00%  
Allowance as a Percent of Loan Category 3.55% 3.37%  
Allowance as a Percent of Nonaccrual 130.60% 91.18%  
Home Improvement [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 11,340 $ 7,356  
Percentage of Allowance 18.00% 15.00%  
Allowance as a Percent of Loan Category 1.81% 1.68%  
Allowance as a Percent of Nonaccrual 35.29% 20.68%  
Commercial [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 1,049 $ 1,141  
Percentage of Allowance 1.00% 2.00%  
Allowance as a Percent of Loan Category 1.13% 1.49%  
Allowance as a Percent of Nonaccrual 3.26% 3.21%  
Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Allowance for loan losses - ending balance $ 9,490 $ 9,234  
Percentage of Allowance 15.00% 19.00%  
Allowance as a Percent of Loan Category 69.93% 65.74%  
Allowance as a Percent of Nonaccrual 29.53% 25.96%  
[1] As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.4
Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Receivables [Abstract]      
Total nonaccrual loans $ 32,133 $ 35,571 $ 61,767
Interest foregone for the year 1,267 1,620 3,311
Amount of foregone interest applied to principal for the year 375 432 602
Interest foregone life-to-date 2,419 3,623 5,252
Amount of foregone interest applied to principal life-to-date $ 1,204 $ 942 $ 792
Percentage of nonaccrual loans to gross loan portfolio 1.70% 2.40% 5.00%
Percentage of allowance for loan losses to nonaccrual loans 198.70% 141.00% 93.00%
v3.22.4
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,916,953 $ 1,488,924
Percentage of Nonperforming to Total 1.70% 2.42%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,884,403 $ 1,452,859
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 32,550 36,065
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,183,512 $ 961,320
Percentage of Nonperforming to Total 0.82% 0.58%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,173,846 $ 955,763
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 9,666 5,557
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 626,399 $ 436,772
Percentage of Nonperforming to Total 0.09% 0.03%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 625,820 $ 436,640
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 579 132
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 92,899 $ 76,696
Percentage of Nonperforming to Total 9.40% 21.29%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 84,165 $ 60,366
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 8,734 16,330
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 13,571 $ 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 13,571 14,046
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 572 $ 90
Percentage of Nonperforming to Total 0.00% 0.00%
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 572 $ 90
Strategic Partnership [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
v3.22.4
Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail)
$ in Millions
Dec. 31, 2021
USD ($)
Financing Receivable, Recorded Investment [Line Items]  
Loan premiums $ 0.5
v3.22.4
Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance $ 32,550 $ 36,065
Unpaid principal balance, With related allowance 33,754 37,007
Related Allowance, With related allowance 10,806 10,168
Average Investment Recorded, With related allowance 39,007 40,080
Interest Income (Expense) Recognized, With related allowance 405 608
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 9,666 5,557
Unpaid principal balance, With related allowance 9,666 5,557
Related Allowance, With related allowance 343 188
Average Investment Recorded, With related allowance 9,093 5,618
Interest Income (Expense) Recognized, With related allowance 401 515
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 579 132
Unpaid principal balance, With related allowance 579 132
Related Allowance, With related allowance 10 2
Average Investment Recorded, With related allowance 514 108
Interest Income (Expense) Recognized, With related allowance 4 0
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 8,734 16,330
Unpaid principal balance, With related allowance 8,823 16,360
Related Allowance, With related allowance 963 1,141
Average Investment Recorded, With related allowance 13,381 16,816
Interest Income (Expense) Recognized, With related allowance 0 93
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Recorded Investment, With related allowance 13,571 14,046
Unpaid principal balance, With related allowance 14,686 14,958
Related Allowance, With related allowance 9,490 8,837
Average Investment Recorded, With related allowance 16,019 17,538
Interest Income (Expense) Recognized, With related allowance $ 0 $ 0
v3.22.4
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 57,618 $ 41,761
Total gross loans 1,882,585 1,461,622 [1]
Accruing 0 0
Current 57,618 41,761
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,824,967 1,419,861
Current 1,824,967 1,419,861
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 35,189 23,564
Current 35,189 23,564
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 13,526 14,173
Current 13,526 14,173
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 8,903 4,024
Current 8,903 4,024
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 51,023 [2] 30,424
Total gross loans 1,146,095 931,859 [1]
Accruing 0 0
Current 51,023 [2] 30,424
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,095,072 901,435
Current 1,095,072 901,435
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 31,781 20,037
Current 31,781 20,037
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 11,877 6,569
Current 11,877 6,569
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 7,365 3,818
Current 7,365 3,818
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,101 [2] 2,128
Total gross loans 628,877 438,931 [1]
Accruing 0 0
Current 5,101 [2] 2,128
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 623,776 436,803
Current 623,776 436,803
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,266 1,517
Current 3,266 1,517
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,256 479
Current 1,256 479
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 579 132
Current 579 132
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 [2] 1,869
Total gross loans 93,470 76,696 [1]
Accruing 0 0
Current 74 [2] 1,869
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 93,396 74,827
Current 93,396 74,827
Commercial Loans [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 1,795
Current 0 1,795
Commercial Loans [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Current 0 0
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 74
Current 74 74
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,420 [2] 7,340
Total gross loans 13,571 14,046 [1]
Accruing 0 0
Current 1,420 [2] 7,340
Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 12,151 6,706
Current 12,151 6,706
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 142 215
Current 142 215
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 393 7,125
Current 393 7,125
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 885 0
Current 885 0
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 [2] 0
Total gross loans 572 90 [1]
Accruing 0 0
Current 0 [2] 0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 572 90
Current 572 90
Strategic Partnership [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Current 0 0
Strategic Partnership [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Current 0 0
Strategic Partnership [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Current $ 0 $ 0
[1] Excludes loan premiums of $0.5 million and $26.8 million of capitalized loan origination costs.
[2] Excludes $34.9 million of capitalized loan origination costs.
v3.22.4
Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Receivables [Abstract]    
Loan premiums   $ 0.5
Capitalized loan origination costs $ 34.9 $ 26.8
v3.22.4
Loans and Allowance for Loan Losses - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
TDR
Dec. 31, 2021
USD ($)
TDR
Dec. 31, 2020
USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]      
Weighted average loan-to-value ratio 339.00% 295.00%  
Allowance for loan loss $ 63,845 [1] $ 50,166 [1] $ 57,548
Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 2 11  
Allowance for loan loss $ 9,490 $ 9,234  
Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 80 56  
Allowance for loan loss $ 41,966 $ 32,435  
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 0    
TDR investment value $ 900 $ 200  
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 63 31  
TDR investment value $ 900 $ 300  
Troubled Debt Restructuring Defaulted [Member] | Commercial Loans [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs defaulted | TDR 2    
TDR investment value $ 5,300    
[1] As of December 31, 2022 and 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
v3.22.4
Loans and Allowance for Loan Losses - Summary of TDRs (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
TDR
Dec. 31, 2021
USD ($)
TDR
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 80 56
Pre- Modification Investment $ 1,203 $ 668
Post- Modification Investment $ 1,203 $ 585
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 2 11
Pre- Modification Investment $ 252 $ 3,071
Post- Modification Investment $ 252 $ 3,071
v3.22.4
Loans and Allowance for Loan Losses - Summary of Activities of the Loans Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance $ 37,430 [1] $ 54,560
Transfer from loans, net 12,791 15,888
Sales (10,375) (9,879)
Cash payments received (12,289) (14,173)
Collateral valuation adjustments (5,738) (8,966)
Loans collateral in process of foreclosure - ending balance [1] 21,819 37,430
Recreation [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 1,720 1,432
Transfer from loans, net 12,444 10,431
Sales (7,707) (6,951)
Cash payments received 0 0
Collateral valuation adjustments (5,081) (3,192)
Loans collateral in process of foreclosure - ending balance 1,376 1,720
Medallion [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance [2] 35,710 [3] 53,128
Transfer from loans, net 347 [3] 5,457 [2]
Sales (2,668) [3] (2,928) [2]
Cash payments received (12,289) [3] (14,173) [2]
Collateral valuation adjustments (657) [3] (5,774) [2]
Loans collateral in process of foreclosure - ending balance [3] $ 20,443 $ 35,710 [2]
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $7.5 million and $7.4 million as of December 31, 2022 and 2021.
[2] As of December 31, 2021, medallion loans in the process of foreclosure included 516 medallions in the New York market, 335 medallions in the Chicago market, 62 medallions in the Newark market, and 48 medallions in various other markets.
[3] As of December 31, 2022, medallion loans in the process of foreclosure included 452 medallions in the New York market, 335 medallions in the Chicago market, 54 medallions in the Newark market, and 39 medallions in various other markets.
v3.22.4
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
2023 $ 513,218  
2024 463,322  
2025 398,720  
2026 194,579  
2027 203,595  
Thereafter 58,750  
Long term debt [1] $ 1,832,184 $ 1,477,251
Interest Rate [2] 2.43%  
Deposits [Member]    
Debt Instrument [Line Items]    
2023 [3] $ 508,218  
2024 [3] 419,560  
2025 [3] 384,720  
2026 [3] 149,329  
2027 [3] 147,845  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,609,672 1,253,288
Interest Rate [2],[3] 1.91%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2023 $ 5,000  
2024 7,762  
2025 14,000  
2026 14,000  
2027 2,000  
Thereafter 25,750  
Long term debt [1] $ 68,512 69,963
Interest Rate [2] 3.08%  
Retail and Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2023 $ 0  
2024 36,000  
2025 0  
2026 31,250  
2027 53,750  
Thereafter 0  
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  
2026 0  
2027 0  
Thereafter 33,000  
Long term debt [1] $ 33,000 $ 33,000
Interest Rate [2] 6.86%  
[1] Excludes deferred financing costs of $7.0 million and $7.1 million as of December 31, 2022 and 2021.
[2] Weighted average contractual rate as of December 31, 2022
[3] Balance excludes $1.3 million and $0.8 million of strategic partner reserve deposits as of December 31, 2022 and 2021.
v3.22.4
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Disclosure [Abstract]    
Deferred costs $ 7.0 $ 7.1
Reserve Deposits $ 1.3 $ 0.8
v3.22.4
Funds Borrowed - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Feb. 28, 2021
USD ($)
Jul. 31, 2020
USD ($)
Dec. 31, 2007
USD ($)
Jun. 30, 2007
USD ($)
shares
Dec. 31, 2022
USD ($)
Deposit
shares
Dec. 31, 2021
USD ($)
Deposit
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Apr. 30, 2021
USD ($)
Mar. 15, 2021
USD ($)
Aug. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2017
USD ($)
Debt Instrument [Line Items]                          
Number of individual with time deposits greater than $100,000 | Deposit         0 0              
Listing services deposits from other financial institutions.         $ 12,400 $ 8,700              
Debt instrument face amount   $ 25,000                      
Debentures borrowed [1]         214,320 219,973              
Gain on debt extinguishment         0 4,626 $ 0            
Aggregate principal amount                     $ 6,000    
Maturity date Feb. 28, 2026 Sep. 24, 2024                      
Gain on sale of loans and medallion         $ 5,448 $ 1,788 $ 1,019            
Issue of common stock | shares         28,663,827 28,124,629              
Preferred securities repurchased from a third party investor     $ 2,000                    
Short term promissory note         $ 5,000 $ 0              
7.25% Unsecured Senior Notes Due February 2026 [Member]                          
Debt Instrument [Line Items]                          
Aggregate principal amount                 $ 3,000 $ 3,300      
7.50% Unsecured Senior Notes Due December 2027 [Member]                          
Debt Instrument [Line Items]                          
Aggregate principal amount                 $ 11,700        
Privately Placed Notes [Member]                          
Debt Instrument [Line Items]                          
Debt instrument interest rate Percentage 7.25%           7.50%         8.25%  
Aggregate principal amount $ 25,000           $ 33,600     $ 8,500   $ 30,000  
Maturity date         2024                
Maturity date         Dec. 31, 2027                
Gain on sale of loans and medallion               $ 4,100          
Debenture Mature2021                          
Debt Instrument [Line Items]                          
Debentures borrowed         $ 8,500                
Debt instrument commitments drawn         $ 20,200                
Preferred Securities [Member]                          
Debt Instrument [Line Items]                          
Maturity date         Sep. 30, 2037                
Sale of preferred securities       $ 35,000                  
Issue of common stock | shares       1,083                  
Preferred securities outstanding         $ 33,000                
Preferred Securities [Member] | 90 day LIBOR [Member]                          
Debt Instrument [Line Items]                          
Basis spread on variable rate         4.77%                
Preferred Securities [Member] | LIBOR Rate [Member]                          
Debt Instrument [Line Items]                          
Basis spread on variable rate         2.13%                
Preferred Securities [Member] | SOFR Rate [Member]                          
Debt Instrument [Line Items]                          
Basis spread on variable rate         2.13%                
Description of variable rate basis         43 basis points                
Preferred Securities [Member] | Unsecured Debt [Member]                          
Debt Instrument [Line Items]                          
Aggregate principal amount of unsecured junior subordinated notes       $ 36,100                  
Small Business Administration Debentures and Borrowings [Member]                          
Debt Instrument [Line Items]                          
Loan commitment term           4 years 6 months              
Commitment fee percentage   1.00%       1.00%              
Principal amount of loan                         $ 34,000
Debt instrument interest rate Percentage           3.25%              
Extended maturity date           Apr. 30, 2024              
Debt instrument commitments available         $ 4,800                
Debt instrument outstanding amount         68,500                
Debt instrument remaining amount         2,800                
FSVC's [Member]                          
Debt Instrument [Line Items]                          
Principal amount of loan                         $ 33,500
Minimum [Member]                          
Debt Instrument [Line Items]                          
Time deposits         $ 250,000                
Brokerage [Member] | Maximum [Member]                          
Debt Instrument [Line Items]                          
Average brokerage fee percentage in relation to the maturity of deposits         0.15%                
[1] Includes $3.2 million and $4.0 million of deferred financing costs as of December 31, 2022 and 2021. Refer to Note 5 for more details.
v3.22.4
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Dec. 31, 2022
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 152,517
Over three months through six months 117,179
Over six months through one year 238,522
Over one year 1,101,454
Total deposits $ 1,609,672
v3.22.4
Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - USD ($)
$ in Millions
Feb. 28, 2021
Jul. 31, 2020
Dec. 31, 2022
Notes Payable [Line Items]      
Maturity Dates Feb. 28, 2026 Sep. 24, 2024  
Note Amounts   $ 25.0  
Average Interest Rate [1]     2.43%
[1] Weighted average contractual rate as of December 31, 2022
v3.22.4
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease costs $ 2,216 $ 2,287 $ 2,384
Operating cash flows from operating leases 2,378 2,454 2,821
Right-of-use asset obtained in exchange for lease liability $ (187) $ (118) $ 251
v3.22.4
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property Equipment And Right Of Use Asset Net Property Equipment And Right Of Use Asset Net
Operating lease right-of-use assets $ 9,723 $ 10,045
Other current liabilities $ 2,239 $ 2,159
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 8,408 $ 9,053
Total operating lease liabilities $ 10,647 $ 11,212
Weighted average remaining lease term 5 years 6 months 5 years 4 months 24 days
Weighted average discount rate 5.66% 5.54%
v3.22.4
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
2023 $ 2,518  
2024 2,526  
2025 2,505  
2026 2,440  
2027 1,212  
Thereafter 1,290  
Total lease payments 12,491  
Less imputed interest 1,844  
Total operating lease liabilities $ 10,647 $ 11,212
v3.22.4
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (43,397) $ (43,894)
Provision for loan losses 9,945 11,057
Net operating loss carryforwards [1] 3,730 12,167
Accrued expenses, compensation, and other assets 3,819 2,579
Unrealized gains on other investments (1,445) 2,176
Total deferred tax liability (24,458) (15,915)
Valuation allowance (2,295) (2,295)
Deferred tax liability, net $ (26,753) $ (18,210)
[1] As of December 31, 2022, the Company had an estimated $11.1 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 $1.4 million of December 31, 2022.
v3.22.4
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Income Tax Rate Reconciliation [Line Items]    
Net operating loss carryforwards $ 11.1  
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035  
Net operating loss carryforwards assets $ 1.4  
December 31, 2026 To December 31, 2035 [Member]    
Income Tax Rate Reconciliation [Line Items]    
Net operating loss carryforwards   $ 1.7
v3.22.4
Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current      
Federal $ (5,213) $ (3,550) $ 0
State (560) (1,563) (260)
Deferred      
Federal (8,090) (13,686) 7,702
State (4,100) (5,418) 2,632
Net (provision) benefit for income taxes $ (17,963) $ (24,217) $ 10,074
v3.22.4
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Statutory Federal income tax (provision) benefit at 21% $ (14,249) $ (17,193) $ 7,766
State and local income taxes, net of federal income tax benefit (2,787) (3,363) 1,518
Valuation allowance against net operating losses 0 (1,833) 1,228
Change in effective state income tax rates and accrual 811 (1,691) (405)
Income attributable to non-controlling interest 0 628 460
Non deductible expenses (1,987) (178) (453)
Other 249 (587) (40)
Income tax (provision) benefit $ (17,963) $ (24,217) $ 10,074
v3.22.4
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Statutory Federal income tax (provision) benefit percentage 21.00% 21.00% 21.00%
v3.22.4
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 15, 2018
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Feb. 29, 2016
Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Stock option outstanding   1,061,849 [1] 1,111,687 [1] 951,669 [1] 550,040    
Stock option exercisable   548,426 320,922 178,307      
Unvested shares of common stock outstanding   513,423 790,765        
Number of shares outstanding [2]   857,288          
Intrinsic value of options vested   $ 0.3 $ 0.1 $ 0.1      
Restricted Stock Units [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding   176,588          
Number of shares outstanding, vested restricted stock units   61,642          
Number of shares vested and settled   61,642          
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 Stock Units [Member] | Vest on June 14, 2023 [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares, granted   129,638          
Restricted Stock Units [Member] | Vest on June 17, 2022 [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Weighted average grant price, granted   $ 8.87 $ 75        
Restricted Shares [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding     493,326 [2] 416,140 284,879    
Weighted average fair value of options granted   $ 0 $ 3.50 $ 3.09      
Number of shares, granted   522,475 258,120 229,408      
Weighted average grant price, granted   $ 7.46 $ 7.38 $ 6.21      
Number of shares vested and settled [3]   129,140 158,994 89,392      
2018 Equity Incentive Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares available for grant   5,710,968          
Shares were rolled into the 2018 Plan   3,295,129          
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding   114,946          
2015 Restricted Stock Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Unvested shares of common stock outstanding   857,288          
2006 Stock Option Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Issuance of maximum number of shares approved             800,000
Number of additional shares available for issuance   0          
2006 Stock Option Plan [Member] | Maximum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share based compensation, options term   10 years          
2015 Director Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares available for grant 258,334         300,000  
2015 Director Plan [Member] | Non Employee Director One [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares available for grant 12,000            
2015 Director Plan [Member] | Maximum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period 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          
Amended Director Plan [Member] | Director [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares available for grant   9,000          
Amended Director Plan [Member] | Maximum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share based compensation, options term   10 years          
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $0.7 million for outstanding options and $0.4 million for exercisable options as of December 31, 2022. The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022.
[2] The aggregate fair value of the restricted stock was $6.1 million as of December 31, 2022. The remaining vesting period was 2.17 years at December 31, 2022.
[3] The aggregate fair value of the restricted stock vested was $1.0 million, $1.1 million, and $0.6 million for the years ended December 31, 2022, 2021, and 2020.
v3.22.4
Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]      
Risk free interest rate 0.00% 0.97% 1.23%
Expected dividend yield 0.00% 0.00% 0.00%
Expected life of option in years [1] 0 years 6 years 3 months 6 years 3 months
Expected volatility [2] 0.00% 53.98% 51.03%
[1] Expected life is calculated using the simplified method.
[2] The Company determines its expected volatility based on the Company's historical volatility
v3.22.4
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options beginning balance 1,111,687 [1] 951,669 [1] 550,040
Granted 0 317,398 444,557
Cancelled (26,093) (113,310) (42,928)
Exercised [2] (23,745) (44,070) 0
Number of options ending balance [1] 1,061,849 1,111,687 951,669
Options exercisable 548,426 320,922 178,307
Exercise price per share, lower range limit beginning balance $ 2.14 [1] $ 2.14 [1] $ 2.14
Exercise price per share, upper range limit beginning balance 12.55 [1] 12.55 [1] 13.53
Exercise price per share, granted 0    
Exercise price per share, lower range limit ending balance [1] 2.14 2.14 2.14
Exercise price per share, upper range limit ending balance [1] 9.38 12.55 12.55
Exercise price per share, option exercisable lower range limit 2.14 2.14 2.14
Exercise price per share, option exercisable upper range limit 9.38 12.55 12.55
Weighted average exercise price, beginning balance 6.41 [1] 6.41 [1] 6.58
Weighted average exercise price, granted 0 6.79 6.24
Weighted average exercise price, cancelled 7.08 6.64 6.91
Weighted average exercise price, exercised [2] 6.51 5.58 0
Weighted average exercise price, ending balance [1] 6.51 6.41 6.41
Weighted average exercise price, options exercisable 6.51 6.53 6.33
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, granted     4.89
Exercise price per share, cancelled   4.89 2.22
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, granted   6.79 6.68
Exercise price per share, cancelled 12.55 11.53 13.53
Exercise price per share, exercised [2] $ 7.25 $ 7.25 $ 0
[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2022 and the related exercise price of the underlying options, was $0.7 million for outstanding options and $0.4 million for exercisable options as of December 31, 2022. The remaining contractual life was 7.05 years for outstanding options and 6.61 years for exercisable options at December 31, 2022.
[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $0.1 million, $0.2 million, and $0 for the years ended December 31, 2022, 2021, and 2020.
v3.22.4
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]      
Aggregate intrinsic value for option exercised $ 0.1 $ 0.2 $ 0.0
Aggregate intrinsic value of option outstanding 0.7    
Aggregate intrinsic value of option exercisable $ 0.4    
Remaining contractual life of option outstanding 7 years 18 days    
Remaining contractual life of option exercisable 6 years 7 months 9 days    
v3.22.4
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares, ending balance [1] 857,288    
Grant price per share, cancelled, lower limit $ 4.89    
Grant price per share, cancelled, upper limit $ 7.25    
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares, beginning balance 493,326 [1] 416,140 284,879
Number of shares, granted 522,475 258,120 229,408
Number of shares, cancelled (29,373) (21,940) (8,755)
Number of shares, vested [2] (129,140) (158,994) (89,392)
Number of shares, ending balance   493,326 [1] 416,140
Grant price per share, lower range limit beginning balance $ 4.89 [1] $ 4.39 $ 3.95
Grant price per share, upper range limit beginning balance 7.25 [1] 7.25 7.25
Grant price per share, granted, lower limit 6.86 6.79 4.89
Grant price per share, granted, upper limit 7.68 8.40 6.68
Grant price per share, cancelled, lower limit 4.89 4.89 3.95
Grant price per share, cancelled, upper limit 8.40 7.25 7.25
Grant price per share, vested, lower limit [2] 4.89 4.39 3.95
Grant price per share, vested, upper limit [2] 7.25 7.25 6.55
Grant price per share, lower range limit ending balance 4.89 [1] 4.89 [1] 4.39
Grant price per share, upper range limit ending balance 7.25 [1] 7.25 [1] 7.25
Weighted average grant price beginning balance 6.87 [1] 6.24 6.01
Weighted average grant price, granted 7.46 7.38 6.21
Weighted average grant price, cancelled 7.32 5.98 6.93
Weighted average grant price, vested [2] 6.53 6.16 5.37
Weighted average grant price, ending balance $ 7.27 [1] $ 6.87 [1] $ 6.24
[1] The aggregate fair value of the restricted stock was $6.1 million as of December 31, 2022. The remaining vesting period was 2.17 years at December 31, 2022.
[2] The aggregate fair value of the restricted stock vested was $1.0 million, $1.1 million, and $0.6 million for the years ended December 31, 2022, 2021, and 2020.
v3.22.4
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate fair value of restricted stock outstanding $ 6.1    
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate fair value of restricted stock vested $ 1.0 $ 1.1 $ 0.6
Remaining vesting period of restricted stock 2 years 2 months 1 day    
v3.22.4
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]      
Number of options beginning balance 790,765    
Number of options, granted 0 317,398 444,557
Number of options, cancelled (20,370)    
Number of options, vested (256,972)    
Number of options ending balance 513,423 790,765  
Exercise price per share beginning balance, Lower limit $ 4.89    
Exercise price per share beginning balance, Upper limit 7.25    
Exercise price per share, Cancelled, Lower limit 4.89    
Exercise price per share, Cancelled, Upper limit 7.25    
Exercise price per share, Vested, Lower limit 4.89    
Exercise price per share, Vested, Upper limit 7.25    
Exercise price per share ending balance, Lower limit 4.89 $ 4.89  
Exercise price per share ending balance, Upper limit 7.25 7.25  
Weighted average exercise price 6.52    
Weighted average exercise price, cancelled 6.34    
Weighted average exercise price, vested 6.55    
Weighted average exercise price $ 6.52 $ 6.52  
v3.22.4
Segment Reporting - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2022
Segment
Segment Reporting Disclosure [Line Items]  
Number of business segments 5
Number of operating segments 4
Number of non-operating segments 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%
Other Product Lines [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
Texas [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 16.00%
Texas [Member] | Home Improvement  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
Florida [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 11.00%
Florida [Member] | Home Improvement  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
Other States [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
Other States [Member] | Home Improvement  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
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 19.00%
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Trailers [Member]  
Segment Reporting Disclosure [Line Items]  
Aggregate percentage of loans lending 14.00%
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Other Product Lines [Member]  
Segment Reporting Disclosure [Line Items]  
Aggregate percentage of loans lending 10.00%
Geographic Concentration Risk [Member] | Sales Revenue Net Member | Midwest [Member]  
Segment Reporting Disclosure [Line Items]  
Aggregate percentage of loans lending 44.00%
v3.22.4
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 196,621 $ 158,966 $ 144,962
Total interest expense 36,185 31,140 34,151
Net interest income (loss) 160,436 127,826 110,811
Provision (benefit) for loan losses 30,059 4,622 69,817
Net interest income (loss) after loss provision 130,377 123,204 40,994
Sponsorship and race winnings 0 12,567 20,042
Race team related expenses 0 (9,559) (8,366)
Other income (expense), net (62,527) (44,341) (89,651)
Income (loss) before income taxes 67,850 81,871 (36,981)
Income tax (provision) benefit (17,963) (24,217) 10,074
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 49,887 57,654 (26,907)
Less: income attributable to the non-controlling interest 6,047 3,546 7,876
Total net income (loss) attributable to Medallion Financial Corp. 43,840 54,108 (34,783)
Balance Sheet Data      
Total loans net 1,853,108 1,438,758 1,172,290
Total assets 2,259,879 1,873,057 1,642,411
Total funds borrowed $ 1,833,435 $ 1,485,150 $ 1,312,255
Selected Financial Ratios      
Return on average assets 2.40% 3.33% (1.67%)
Return on average equity 13.74% 17.64% 8.43%
Return on average stockholders' equity 14.92% 21.24% (14.06%)
Interest yield 11.06% 11.48% 11.32%
Net interest margin 9.05% 9.26% 8.65%
Reserve coverage 3.33% 3.37% 4.68%
Delinquency status 0.47% [1] 0.28% [2] 0.57% [3]
Charge-off ratio 0.99% [4] 0.85% 5.00%
RPAC [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss)   $ 0 [5] $ 0
Total interest expense   546 [5] 163
Net interest income (loss)   (546) [5] (163)
Provision (benefit) for loan losses   0 [5] 0
Net interest income (loss) after loss provision   (546) [5] (163)
Sponsorship and race winnings   12,567 [5] 20,042
Race team related expenses   (9,559) [5] (8,366)
Other income (expense), net   (5,108) [5] (7,973)
Income (loss) before income taxes   (2,646) [5] 3,540
Income tax (provision) benefit   (1,498) [5] (889)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations   (4,144) [5] 2,651
Balance Sheet Data      
Total loans net   0 [5] 0
Total assets   0 [5] 33,711
Total funds borrowed   $ 0 [5] $ 8,689
Selected Financial Ratios      
Return on average assets   20.35% [5] 7.98%
Return on average equity   885.29% [5] (363.66%)
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 139,145 $ 118,305 $ 110,706
Total interest expense 17,932 9,993 13,013
Net interest income (loss) 121,213 108,312 97,693
Provision (benefit) for loan losses 22,802 7,671 23,736
Net interest income (loss) after loss provision 98,411 100,641 73,957
Sponsorship and race winnings   0 0
Race team related expenses   0 0
Other income (expense), net (30,463) (30,156) (27,341)
Income (loss) before income taxes 67,948 70,485 46,616
Income tax (provision) benefit (17,989) (18,699) (12,004)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 49,959 51,786 34,612
Balance Sheet Data      
Total loans net 1,141,546 928,885 765,338
Total assets 1,154,680 896,223 777,605
Total funds borrowed $ 936,789 $ 710,616 $ 621,735
Selected Financial Ratios      
Return on average assets 4.71% 6.00% 4.59%
Return on average equity 26.83% 30.01% 22.93%
Interest yield 13.28% 13.94% 14.90%
Net interest margin 11.57% 12.76% 13.15%
Reserve coverage 3.55% 3.37% 3.45%
Delinquency status 0.64% [1] 0.41% [2] 0.70% [3]
Charge-off ratio 1.27% [4] 0.30% 1.95%
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 44,703 $ 34,204 $ 27,273
Total interest expense 7,697 4,153 5,699
Net interest income (loss) 37,006 30,051 21,574
Provision (benefit) for loan losses 7,616 2,750 3,778
Net interest income (loss) after loss provision 29,390 27,301 17,796
Sponsorship and race winnings   0 0
Race team related expenses   0 0
Other income (expense), net (13,500) (11,640) (9,611)
Income (loss) before income taxes 15,890 15,661 8,185
Income tax (provision) benefit (4,207) (4,155) (2,108)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 11,683 11,506 6,077
Balance Sheet Data      
Total loans net 615,059 429,416 328,876
Total assets 618,923 371,781 340,494
Total funds borrowed $ 502,131 $ 294,786 $ 272,284
Selected Financial Ratios      
Return on average assets 2.23% 3.01% 2.07%
Return on average equity 12.72% 15.04% 10.35%
Interest yield 8.64% 9.30% 9.66%
Net interest margin 7.16% 8.17% 7.62%
Reserve coverage 1.81% 1.68% 1.54%
Delinquency status 0.09% [1] 0.03% [2] 0.05% [3]
Charge-off ratio 0.70% [4] 0.15% 0.44%
Operating Segments [Member] | Commercial Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 9,348 $ 6,592 $ 6,926
Total interest expense 3,040 2,720 2,538
Net interest income (loss) 6,308 3,872 4,388
Provision (benefit) for loan losses 5,963 0 0
Net interest income (loss) after loss provision 345 3,872 4,388
Sponsorship and race winnings   0 0
Race team related expenses   0 0
Other income (expense), net (1,604) 3,101 (3,196)
Income (loss) before income taxes (1,259) 6,973 1,192
Income tax (provision) benefit 333 (1,850) (299)
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (926) 5,123 893
Balance Sheet Data      
Total loans net 91,850 73,713 62,037
Total assets 101,447 103,631 80,622
Total funds borrowed $ 82,304 $ 82,169 $ 65,924
Selected Financial Ratios      
Return on average assets (0.90%) 5.85% 1.07%
Return on average equity (5.28%) 29.23% 5.17%
Interest yield 10.78% 10.41% 10.51%
Net interest margin 7.28% 6.12% 6.66%
Reserve coverage 1.13% 1.49% 0.00%
Delinquency status 0.08% [1] 0.10% [2] 0.11% [3]
Charge-off ratio 6.96% [4] 0.00% 0.04%
Operating Segments [Member] | Medallion Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 632 $ (1,483) $ (1,518)
Total interest expense 508 5,914 3,610
Net interest income (loss) 124 (7,397) (5,128)
Provision (benefit) for loan losses (6,474) (7,752) 42,276
Net interest income (loss) after loss provision 6,598 355 (47,404)
Sponsorship and race winnings   0 0
Race team related expenses   0 0
Other income (expense), net (6,179) (1,991) (30,366)
Income (loss) before income taxes 419 (1,636) (77,770)
Income tax (provision) benefit (111) 433 19,520
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations 308 (1,203) (58,250)
Balance Sheet Data      
Total loans net 4,081 4,812 12,725
Total assets 24,648 42,011 124,554
Total funds borrowed $ 19,997 $ 69,221 $ 98,636
Selected Financial Ratios      
Return on average assets 0.74% (1.15%) (33.21%)
Return on average equity 4.03% (5.75%) (165.21%)
Interest yield 14.05% (18.77%) (2.11%)
Net interest margin 2.76% (93.60%) (7.14%)
Reserve coverage 69.93% 65.74% 66.31%
Delinquency status 6.52% [1] 0.00% [2] 3.57% [3]
Charge-off ratio (145.76%) [4] 95.40% 59.38%
Intersegment Eliminations [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income (loss) $ 2,793 $ 1,348 $ 1,575
Total interest expense 7,008 7,814 9,128
Net interest income (loss) (4,215) (6,466) (7,553)
Provision (benefit) for loan losses 152 1,953 27
Net interest income (loss) after loss provision (4,367) (8,419) (7,580)
Sponsorship and race winnings   0 0
Race team related expenses   0 0
Other income (expense), net (10,781) 1,453 (11,164)
Income (loss) before income taxes (15,148) (6,966) (18,744)
Income tax (provision) benefit 4,011 1,552 5,854
Net income (loss) after taxes/net increase (decrease) on net assets resulting from operations (11,137) (5,414) (12,890)
Balance Sheet Data      
Total loans net 572 1,932 3,314
Total assets 360,181 459,411 285,425
Total funds borrowed $ 292,214 $ 328,358 $ 244,987
Selected Financial Ratios      
Return on average assets (3.12%) (1.89%) (5.06%)
Return on average equity (18.62%) (13.62%) (23.29%)
[1] Loans 90 days or more past due.
[2] Loans 90 days or more past due.
[3] Loans 90 days or more past due.
[4] Negative balances indicate recoveries for the period
[5] The Company sold its interest in RPAC in December 2021. Selected earnings data are applicable through the date of sale.
v3.22.4
Commitments and Contingencies - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description Employment agreements expire at various dates through 2027
Future minimum payments $ 11,771
Other Commitment $ 0
v3.22.4
Commitments and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail)
$ in Thousands
Dec. 31, 2022
USD ($)
Commitments And Contingencies [Abstract]  
2023 $ 4,128
2024 2,493
2025 2,131
2025 2,131
2026 888
Thereafter 0
Total $ 11,771
v3.22.4
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 12 Months Ended
Jan. 01, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]        
Salary from related party $ 250,950 $ 239,000 $ 195,000  
Annual cash bonus   85,000 75,000 $ 32,500
Equity Bonus   $ 50,000 $ 45,019 $ 30,000
v3.22.4
Stockholder's/Shareholder's Equity - Additional Information (Detail) - Stock Repurchase Program [Member] - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2022
Aug. 10, 2022
Apr. 29, 2022
Stockholders Equity [Line Items]          
Repurchases of common stock       $ 40,000 $ 35,000
Stock repurchased during period     2,650,911    
Payment for repurchase of common stock     $ 20,618,843    
Stock purchased during period 0 0      
Shares remain authorized for repurchase amount     $ 19,998,012    
v3.22.4
Stockholder's/Shareholder's Equity - summary of Company purchases (Detail) - Stock Repurchase Program [Member]
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 2,650,911
Average Price Paid per Share | $ / shares $ 7.78
Total Amount Paid $ 20,618,843
Maximum Value of Shares Yet to Be Purchased $ 19,998,012
January 1 to January 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 0
Average Price Paid per Share | $ / shares $ 0
Total Amount Paid $ 0
Maximum Value of Shares Yet to Be Purchased $ 22,874,509
February 1 to February 28 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 0
Average Price Paid per Share | $ / shares $ 0
Total Amount Paid $ 0
Maximum Value of Shares Yet to Be Purchased $ 22,874,509
March 1 to March 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 67,660
Average Price Paid per Share | $ / shares $ 9.12
Total Amount Paid $ 616,855
Maximum Value of Shares Yet to Be Purchased $ 22,257,654
April 1 to April 30 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 0
Average Price Paid per Share | $ / shares $ 0
Total Amount Paid $ 0
Maximum Value of Shares Yet to Be Purchased $ 22,257,654
May 1 to May 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 1,056,933
Average Price Paid per Share | $ / shares $ 7.87
Total Amount Paid $ 8,316,012
Maximum Value of Shares Yet to Be Purchased $ 26,683,988
June 1 to June 30 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 215,217
Average Price Paid per Share | $ / shares $ 7.71
Total Amount Paid $ 1,658,542
Maximum Value of Shares Yet to Be Purchased $ 25,025,447
July 1 to July 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 0
Average Price Paid per Share | $ / shares $ 0
Total Amount Paid $ 0
Maximum Value of Shares Yet to Be Purchased $ 25,025,447
August 1 to August 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 734,547
Average Price Paid per Share | $ / shares $ 7.93
Total Amount Paid $ 5,822,227
Maximum Value of Shares Yet to Be Purchased $ 24,203,219
September 1 to September 30 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 319,323
Average Price Paid per Share | $ / shares $ 7.54
Total Amount Paid $ 2,408,673
Maximum Value of Shares Yet to Be Purchased $ 21,794,546
October 1 to October 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 257,231
Average Price Paid per Share | $ / shares $ 6.98
Total Amount Paid $ 1,796,534
Maximum Value of Shares Yet to Be Purchased $ 19,998,012
November 1 to November 30 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 0
Average Price Paid per Share | $ / shares $ 0
Total Amount Paid $ 0
Maximum Value of Shares Yet to Be Purchased $ 19,998,012
December 1 to December 31 [Member]  
Equity, Class of Treasury Stock [Line Items]  
Total Shares of Common Stock Repurchased | shares 0
Average Price Paid per Share | $ / shares $ 0
Total Amount Paid $ 0
Maximum Value of Shares Yet to Be Purchased $ 19,998,012
v3.22.4
Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Ratios/supplemental data        
Total shareholders’ equity (net assets) $ 370,524 $ 355,828 $ 304,561 $ 334,468
v3.22.4
Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Contribution Plan Disclosure [Line Items]        
Minimum percentage of total annual compensation allowed to be deferred   1.00%    
Employer matching contribution, description   Once eligible full-time employees have completed a minimum of ninety (90) days of service, and part time employees have worked at least 1,000 hours, the Company matches employee contributions to the 401(k) Plan in an amount per employee equal to fifty percent of the first 8% of the employee’s annual contributions, subject to legal limits. Prior to June 1, 2022, the 401(k) Plan covered full- and part-time employees of the Company aged 21 and older that had completed a minimum of thirty (30) days of service, with the Company matching one-third of the first 6% of the contributions of eligible employees that had completed at least one (1) year of service (in the case of full-time employees) or 1,000 hours (in the case of part-time employees).    
Employee contributions to 401(k) Plan matched by company in an amount per employee of first 6% of employee's annual contributions 50.00% 33.33%    
Defined benefit plan amount expense   $ 0.3 $ 0.3 $ 0.2
v3.22.4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Financial assets      
Equity investments $ 10,293 $ 9,726 $ 0
Investment securities 48,492 44,772  
Loans receivable 1,916,953 1,488,924  
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 105,598 124,484  
Equity investments 10,293 9,726  
Investment securities 48,492 44,772  
Loans receivable 1,853,108 1,438,758  
Accrued interest receivable [2] 12,613 10,621  
Equity securities, fair value [3] 1,724 1,950  
Financial liabilities      
Funds borrowed 1,833,434 1,478,001  
Accrued interest payable [2] 4,790 3,395  
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 105,598 124,484  
Equity investments 10,293 9,726  
Investment securities 48,492 44,772  
Loans receivable 1,853,108 1,438,758  
Accrued interest receivable [2] 12,613 10,621  
Equity securities, fair value [3] 1,724 1,950  
Financial liabilities      
Funds borrowed 1,833,434 1,478,001  
Accrued interest payable [2] $ 4,790 $ 3,395  
[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million as of December 31, 2022 and $1.3 million as of December 31, 2021 of interest-bearing deposits categorized as level 2. See Note 15.
[2] Categorized as level 3 within the fair value hierarchy. See Note 15
[3] Included within other assets on the balance sheet.
v3.22.4
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,300  
Fair Value Recurring [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks 1,250 $ 1,250
Fair Value Recurring [Member] | Level 2 [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Interest-bearing funds deposited in other banks $ 1,250 $ 1,250
v3.22.4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 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 48,492 44,772
Equity securities, fair value [1] 1,724 1,950
Total 51,466 [2] 47,972 [3]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,724 1,950
Total 1,724 [2] 1,950 [3]
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Available for sale investment securities 48,492 44,772
Total $ 49,742 [2] $ 46,022 [3]
[1] Included within other assets on the balance sheet.
[2] Total unrealized losses of $4.4 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2022 related to these assets.
[3] Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.
v3.22.4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]      
Net change in unrealized gains (losses) on investments, net of tax $ (4,383) $ (978) $ 1,013
v3.22.4
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assets      
Impaired loans $ 19,500 $ 20,500  
Loan collateral in process of foreclosure 21,819 [1] 37,430 [1] $ 54,560
Fair Value, Nonrecurring      
Assets      
Equity securities, fair value 10,293 9,726  
Impaired loans 32,133 35,571  
Loan collateral in process of foreclosure 21,819 37,430  
Total 64,245 82,727  
Fair Value, Nonrecurring | Level 3 [Member]      
Assets      
Equity securities, fair value 10,293 9,726  
Impaired loans 32,133 35,571  
Loan collateral in process of foreclosure 21,819 37,430  
Total $ 64,245 $ 82,727  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $7.5 million and $7.4 million as of December 31, 2022 and 2021.
v3.22.4
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Dec. 31, 2020
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Principal portion of loans serviced, fair value $ 19,500,000 $ 20,500,000  
Loan collateral in process of foreclosure $ 21,819,000 [1] $ 37,430,000 [1] $ 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 0.0655 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] 2,500 3,600  
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value [3] 54,100 49,800  
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value [2] 0.0 0.0  
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Loan collateral in process of foreclosure value [2] 79,500 79,500  
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity securities, fair value 10,020,000 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 securities, fair value 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 32,133,000 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 $ 21,819,000 $ 37,430,000  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $7.5 million and $7.4 million as of December 31, 2022 and 2021.
[2] Represents amount net of liquidation costs.
[3] Relates to the recreation portfolio.
v3.22.4
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Dec. 31, 2022
Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Preferred stock, liquidation preference per share     $ 1,000
U.S. Treasury Securities [Member] | Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
US Treasury shares purchased   26,303  
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Initial public offering shares 1,840,000    
Preferred stock, aggregate liquidation amount $ 46.0    
Preferred stock, net of liquidation amount $ 42.5    
Percentage of dividend payment rate 8.00%    
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | SOFR [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Percentage of liquidation rate basis 6.46%    
Dividend description of variable rate basis three-month Secured Overnight Financing Rate, or SOFR    
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member]      
Changes In Equity And Comprehensive Income Line Items [Line Items]      
Percentage of dividend payment rate     9.00%
Aggregate purchase price   $ 26.3  
v3.22.4
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assets      
Income tax receivable $ 2,095 $ 833  
Loan collateral in process of foreclosure 21,819 [1] 37,430 [1] $ 54,560
Net loans receivable 1,853,108 1,438,758 1,172,290
Other assets 19,855 20,388  
Total assets 2,259,879 1,873,057 $ 1,642,411
Liabilities      
Long-term borrowings [2] 214,320 219,973  
Short-term borrowings 5,000 0  
Deferred tax liabilities 26,753 18,210  
Total liabilities 1,889,355 1,517,229  
Total stockholders’ equity 301,736 287,040  
Total liabilities and equity 2,259,879 1,873,057  
Parent Company [Member]      
Assets      
Cash 20,669 40,540  
Investment in bank subsidiaries [3] 479,496 367,945  
Investment in non-bank subsidiaries 83,727 88,018  
Income tax receivable 22,835 18,763  
Loan collateral in process of foreclosure 2,001 5,811  
Net loans receivable 2,538 3,302  
Other assets 7,603 8,674  
Total assets 618,869 533,053  
Liabilities      
Long-term borrowings [4] 151,808 151,103  
Deferred tax liabilities 38,091 35,799  
Intercompany payables 33,378 39,703  
Other liabilities 25,068 19,408  
Total liabilities 248,345 246,013  
Total stockholders’ equity 370,524 287,040  
Total liabilities and equity $ 618,869 $ 533,053  
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $7.5 million and $7.4 million as of December 31, 2022 and 2021.
[2] Includes $3.2 million and $4.0 million of deferred financing costs as of December 31, 2022 and 2021. Refer to Note 5 for more details.
[3] Includes $172.8 million and $174.3 million of goodwill and intangible assets of the Company which relate specifically to the Bank.
[4] Includes $2.1 million and $2.9 million of deferred financing costs as of December 31, 2022 and 2021.
v3.22.4
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Parenthetical) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]    
Intangibles assets $ 22,035 $ 23,480
Parent Company [Member]    
Condensed Balance Sheet Statements, Captions [Line Items]    
Goodwill and intangible assets 172,800 174,300
Deferred financing costs $ 2,100 $ 2,900
v3.22.4
Parent Company Only Condensed Financial Statements - Condensed Statements of Operations (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Condensed Income Statements, Captions [Line Items]      
Net interest income (loss) $ 160,436 $ 127,826 $ 110,811
Provision (benefit) for loan losses 30,059 4,622 69,817
Net interest income (loss) after loss provision 130,377 123,204 40,994
Income (loss) before income taxes 67,850 81,871 (36,981)
Total net income (loss) attributable to Medallion Financial Corp. 43,840 54,108 (34,783)
Parent Company [Member]      
Condensed Income Statements, Captions [Line Items]      
Interest and dividend income 24,631 16,446 4,773
Interest expense 11,289 11,209 8,602
Net interest income (loss) 13,342 5,237 (3,829)
Provision (benefit) for loan losses (353) (4,718) 5,127
Net interest income (loss) after loss provision 13,695 9,955 (8,956)
Other expense, net (18,423) (6,224) (22,062)
Income (loss) before income taxes (4,728) 3,731 (31,018)
Income tax benefit 7,940 4,452 10,454
Total net income (loss) attributable to Medallion Financial Corp. 3,212 8,183 (20,564)
Undistributed earnings (losses) of subsidiaries 40,628 45,925 (14,219)
Net income (loss) attributable to parent company $ 43,840 $ 54,108 $ (34,783)
v3.22.4
Parent Company Only Condensed Financial Statements - Condensed Statements of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Condensed Statement of Income Captions [Line Items]      
Net (income) loss $ 49,887 $ 57,654 $ (26,907)
Other comprehensive income (loss) (4,383) (978) 1,013
Total comprehensive income (loss) attributable to Medallion Financial Corp. 39,457 53,130 (33,770)
Parent Company [Member]      
Condensed Statement of Income Captions [Line Items]      
Net (income) loss 43,840 54,108 (34,783)
Other comprehensive income (loss) (4,383) (978) 1,013
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 39,457 $ 53,130 $ (33,770)
v3.22.4
Parent Company Only Condensed Financial Statements - Condensed Statements of Cash Flow (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes $ 49,887 $ 57,654 $ (26,907)
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
(Benefit) provision for loan losses 30,059 4,622 69,817
Depreciation and amortization 5,229 6,519 7,714
Change in deferred and other tax assets/liabilities, net 7,281 18,327 (8,776)
Net change in loan collateral in process of foreclosure 5,738 8,966 31,926
Gain on extinguishment of debt 0 (4,626) 0
Net realized gains on sale of investments (2,779) (17,380) 4,305
Stock-based compensation expense 3,476 2,261 2,030
Decrease (increase) in other assets (3,919) (5,354) 2,223
Net cash provided by operating activities 108,740 78,726 78,706
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (1,000,785) (760,790) (506,106)
Proceeds from principal receipts, sales, and maturities of loans and investments 535,067 464,448 321,831
Purchases of investments (20,713) (19,354) (15,580)
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 22,664 24,052 13,499
Net cash used for investing activities (449,005) (238,321) (170,957)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from funds borrowed 839,104 805,577 668,577
Repayments of funds borrowed (483,671) (627,263) (526,064)
Treasury stock repurchased (20,619) 0 0
Proceeds from the exercise of stock options 155 241 0
Net cash provided by financing activities 321,379 172,039 136,470
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (18,886) 12,444 44,219
Parent Company [Member]      
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) after taxes 43,840 54,108 (34,783)
Adjustments to reconcile net income (loss)/net decrease in net assets resulting from operations to net cash provided by operating activities:      
Equity in undistributed (earnings) losses of subsidiaries (64,300) (60,304) 6,622
(Benefit) provision for loan losses (353) (4,718) 5,127
Depreciation and amortization 2,740 4,485 5,357
Change in deferred and other tax assets/liabilities, net (1,780) (5,666) (3,317)
Net change in loan collateral in process of foreclosure 64 1,619 4,940
Net change in unrealized depreciation on investments 0 0 3,493
Gain on extinguishment of debt 0 (2,204) 0
Net realized gains on sale of investments 0 (11,701) 0
Stock-based compensation expense 3,476 2,261 2,031
Decrease (increase) in other assets 1,055 (1,150) 2,299
Increase in deferred financing costs (39) (1,504) (1,233)
Decrease in intercompany payables (6,325) (11,649) (3,552)
(Decrease) increase in other liabilities 5,430 (1,894) 2,336
Net cash provided by operating activities (16,192) (38,317) (10,680)
CASH FLOWS FROM INVESTING ACTIVITIES      
Loans originated (92) 0 (14)
Proceeds from principal receipts, sales, and maturities of loans and investments 723 28,552 1,193
Purchases of investments 0 (90) (2,304)
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 3,697 666 1,276
Investment in subsidiaries (4,750) (3,500)  
Dividends from subsidiaries 24,750 19,000 7,597
Net cash used for investing activities 24,328 44,628 7,748
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from funds borrowed 0 51,400 33,600
Repayments of funds borrowed 0 (51,155) (1,402)
Treasury stock repurchased (20,619) 0 0
Dividends paid to shareholders (7,543) 0 0
Proceeds from the exercise of stock options 155 241 0
Net cash provided by financing activities (28,007) 486 32,198
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (19,871) 6,797 29,266
Cash and cash equivalents, beginning of period 40,540 33,743 4,477
Cash and cash equivalents, end of period $ 20,669 $ 40,540 $ 33,743
v3.22.4
Variable Interest Entities - Additional Information (Detail) - USD ($)
$ in Thousands
Feb. 28, 2021
Jul. 31, 2020
Oct. 31, 2018
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Variable Interest Entity [Line Items]            
Variable interest entity net gain     $ 25,300      
Equity investments       $ 10,293 $ 9,726 $ 0
Maturity date Feb. 28, 2026 Sep. 24, 2024        
Medallion Financing Trust I [Member]            
Variable Interest Entity [Line Items]            
Promissory note payable     $ 1,400      
v3.22.4
Subsequent Events - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Subsequent Event [Line Items]  
Purchase of common stock, value $ 20,619