MEDALLION FINANCIAL CORP, 10-Q filed on 07 Aug 23
 | XBRL Documents
v3.23.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2023
Aug. 04, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   23,362,089
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Shell Company false  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-37747  
Entity Tax Identification Number 04-3291176  
Entity Address, Address Line One 437 MADISON AVENUE, 38th Floor  
Entity Address, City or Town NEW YORK  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10022  
City Area Code 212  
Local Phone Number 328-2100  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.23.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Assets    
Cash and cash equivalents $ 82,257 $ 33,172
Federal funds sold 42,297 72,426
Investment securities 53,692 48,492
Equity investments 11,404 10,293
Loans 2,156,998 1,916,953
Allowance for loan losses (74,971) [1] (63,845) [2]
Net loans receivable 2,082,027 1,853,108
Goodwill 150,803 150,803
Intangible assets, net 21,315 22,035
Loan collateral in process of foreclosure [3] 16,803 21,819
Accrued interest receivable 13,345 12,613
Property, equipment, and right-of-use lease asset, net 13,343 13,168
Income tax receivable 2,795 2,095
Other assets 29,056 19,855
Total assets 2,519,137 2,259,879
Liabilities    
Deposits [4] 1,813,785 1,607,110
Long-term debt [5] 178,128 214,320
Short-term borrowings [6] 67,880 5,000
Deferred tax liabilities, net 26,840 26,753
Operating lease liabilities 7,629 8,408
Accrued interest payable 4,449 4,790
Accounts payable and accrued expenses [7] 32,662 22,974
Total liabilities 2,131,373 1,889,355
Commitments and contingencies
Stockholders’ equity    
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding) 0 0
Common stock (50,000,000 shares of $0.01 par value stock authorized - XX shares at June 30, 2023 and 28,663,827 shares at December 31, 2022 issued) 289 287
Additional paid in capital 285,435 283,663
Treasury stock (5,602,154 shares at June 30, 2023 and December 31, 2022) (45,538) (45,538)
Accumulated other comprehensive income (loss) (3,749) (3,349)
Retained earnings 82,539 66,673
Total stockholders’ equity 318,976 301,736
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 387,764 370,524
Total liabilities and equity $ 2,519,137 $ 2,259,879
Number of shares outstanding 23,345,017 23,061,673
Book value per share $ 13.66 $ 13.08
[1] As of June 30, 2023 and June 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[2] Represents allowance prior to the adoption of ASU 2016-13.
[3] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.8 million as of June 30, 2023 and $7.5 million as of December 31, 2022.
[4] Includes $3.9 million and $3.8 million of deferred financing costs as of June 30, 2023 and December 31, 2022. Refer to Note 5 for more details.
[5] Includes $2.9 million and $3.2 million of deferred financing costs as of June 30, 2023 and December 31, 2022. Refer to Note 5 for more details.
[6] Includes $28.0 million of borrowings through the Federal Reserve discount window.
[7] Includes the short-term portion of lease liabilities of $2.2 million as of both June 30, 2023 and December 31, 2022. Refer to Note 6 for more details.
v3.23.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
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 28,947,171 28,663,827
Treasury stock,shares 5,602,154 5,602,154
Loan collateral in process of foreclosure, financed sales collateral to third parties $ 6.8 $ 7.5
Short term lease liabilities 2.2 2.2
Deposits [Member]    
Deferred financing costs 3.9 3.8
Long-Term Debt [Member]    
Deferred financing costs 2.9 $ 3.2
Federal reserve discount window [Member]    
Borrowings $ 28.0  
v3.23.2
Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Interest and fees on loans $ 59,630 $ 46,740 $ 114,799 $ 89,804
Interest and dividends on investment securities 2,096 371 2,769 610
Total interest income [1] 61,726 47,111 117,568 90,414
Interest on deposits 11,329 4,912 19,928 9,066
Interest on long-term debt 2,940 3,318 5,793 6,539
Interest on short-term borrowings 766 0 1,554 0
Total interest expense 15,035 8,230 27,275 15,605
Net interest income (loss) 46,691 38,881 90,293 74,809
Provision for credit losses 8,476 7,759 12,514 10,999
Net interest income after provision for credit losses 38,215 31,122 77,779 63,810
Other income (loss)        
Gain on sale of loans and medallion 1,306 2,667 3,161 4,543
Write-down of loan collateral in process of foreclosure (21) (128) (273) (514)
Gain on equity investments 99 4,241 9 4,108
Other income 558 578 1,128 750
Total other income, net 1,942 7,358 4,025 8,887
Other expenses        
Salaries and employee benefits 9,339 7,730 18,175 15,298
Loan servicing fees 2,361 2,119 4,583 4,072
Collection costs 1,608 999 3,146 2,342
Professional fees 1,368 4,392 3,075 8,384
Rent expense 603 490 1,226 1,135
Regulatory fees 781 560 1,463 1,011
Amortization of intangible assets 363 363 723 721
Other expenses 2,580 2,160 5,004 3,882
Total other expenses 19,003 18,813 37,395 36,845
Income before income taxes 21,154 19,667 44,409 35,852
Income tax provision 5,472 4,856 11,854 9,687
Net income after taxes 15,682 14,811 32,555 26,165
Less: income attributable to the non-controlling interest 1,512 1,511 3,024 3,024
Total net income attributable to Medallion Financial Corp. $ 14,170 $ 13,300 $ 29,531 $ 23,141
Basic net income per share $ 0.63 $ 0.55 $ 1.32 $ 0.95
Diluted net income per share $ 0.62 $ 0.54 $ 1.29 $ 0.93
Weighted average common shares outstanding        
Basic 22,488,463 24,153,015 22,416,089 24,459,870
Diluted 22,853,927 24,421,867 22,915,094 24,751,012
[1] Included in interest income is $0.4 million and $0.6 million of paid-in-kind interest for the three and six months ended June 30, 2023 and $0.2 million and $0.3 million for the three and six months ended June 30, 2022.
v3.23.2
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Interest paid-in-kind $ 0.4 $ 0.2 $ 0.6 $ 0.3
v3.23.2
Consolidated Statements of Other Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 15,682 $ 14,811 $ 32,555 $ 26,165
Other comprehensive loss, net of tax (906) (1,418) (400) (3,135)
Total comprehensive income 14,776 13,393 32,155 23,030
Less comprehensive income attributable to the non-controlling interest 1,512 1,511 3,024 3,024
Total comprehensive income attributable to Medallion Financial Corp. $ 13,264 $ 11,882 $ 29,131 $ 20,006
v3.23.2
Consolidated Statement of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings (Accumulated Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Capital in Excess of Par [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Treasury Stock [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Retained Earnings (Accumulated Deficit) [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Parent [Member]
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2021 $ 355,828 $ 281 $ 280,038 $ (24,919) $ 30,606 $ 1,034 $ 287,040 $ 68,788                
Balance, shares at Dec. 31, 2021   28,124,629   (2,951,243)                        
Net income 11,353       9,841   9,841 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 598 $ 4 594       598                  
Issuance of restricted stock, net, shares   383,925                            
Forfeiture of restricted stock, net, shares   (5,730)                            
Exercise of stock options, value 152   152       152                  
Exercise of stock options, shares   23,192                            
Purchase of common stock (in Shares)       (67,660)                        
Purchase of common stock (617)     $ (617)     (617)                  
Dividend paid on common stock (2,044)       (2,044)   (2,044)                  
Other comprehensive loss, net of tax (1,717)         (1,717) (1,717)                  
Ending balance at Mar. 31, 2022 362,041 $ 285 280,784 $ (25,536) 38,403 (683) 293,253 68,788                
Ending balance, shares at Mar. 31, 2022   28,526,016   (3,018,903)                        
Balance at Dec. 31, 2021 355,828 $ 281 280,038 $ (24,919) 30,606 1,034 287,040 68,788                
Balance, shares at Dec. 31, 2021   28,124,629   (2,951,243)                        
Net income 26,165                              
Other comprehensive loss, net of tax (3,135)                              
Ending balance at Jun. 30, 2022 362,841 $ 285 281,647 $ (35,510) 49,732 (2,101) 294,053 68,788                
Ending balance, shares at Jun. 30, 2022   28,530,373   (4,291,053)                        
Balance at Dec. 31, 2021 $ 355,828 $ 281 280,038 $ (24,919) 30,606 1,034 287,040 68,788                
Balance, shares at Dec. 31, 2021   28,124,629   (2,951,243)                        
Exercise of stock options, shares 23,745                              
Net change in unrealized gains on investments, net of tax $ (4,400)                              
Ending balance at Dec. 31, 2022 370,524 $ 287 283,663 $ (45,538) 66,673 (3,349) 301,736 68,788 $ 360,589 $ 287 $ 283,663 $ (45,538) $ 56,738 $ (3,349) $ 291,801 $ 68,788
Ending balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 $ (9,935)       (9,935)   (9,935)                  
Ending balance, shares at Dec. 31, 2022 23,061,673 28,663,827   (5,602,154)           28,663,827   (5,602,154)        
Balance at Mar. 31, 2022 $ 362,041 $ 285 280,784 $ (25,536) 38,403 (683) 293,253 68,788                
Balance, shares at Mar. 31, 2022   28,526,016   (3,018,903)                        
Net income 14,811       13,300   13,300 1,511                
Distributions to non-controlling interest (1,511)             (1,511)                
Stock-based compensation expense 863   863       863                  
Forfeiture of restricted stock, net, shares   587                            
Issuance in connection with vesting of restricted stock units   4,944                            
Purchase of common stock (in Shares)       1,272,150                        
Purchase of common stock (9,974)     $ 9,974     (9,974)                  
Dividend paid on common stock (1,971)       1,971   (1,971)                  
Other comprehensive loss, net of tax (1,418)         (1,418) (1,418)                  
Ending balance at Jun. 30, 2022 362,841 $ 285 281,647 $ (35,510) 49,732 (2,101) 294,053 68,788                
Ending balance, shares at Jun. 30, 2022   28,530,373   (4,291,053)                        
Balance at Dec. 31, 2022 $ 370,524 $ 287 283,663 $ (45,538) 66,673 (3,349) 301,736 68,788 360,589 $ 287 283,663 $ (45,538) 56,738 (3,349) 291,801 68,788
Balance, shares at Dec. 31, 2022 23,061,673 28,663,827   (5,602,154)           28,663,827   (5,602,154)        
Net income $ 16,873       15,361   15,361 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 1,036 $ 2 1,034       1,036                  
Issuance of restricted stock, net, shares   304,749                            
Withheld restricted stock for employees' tax obligations, shares   (91,169)                            
Withheld restricted stock for employees' tax obligations, value (768)   (768)       (768)                  
Forfeiture of restricted stock, net, shares   (9,843)                            
Exercise of stock options, value $ 292   292       292                  
Exercise of stock options, shares 44,583 [1] 44,583                            
Dividend paid on common stock $ (1,863)       (1,863)   (1,863)                  
Net change in unrealized gains on investments, net of tax 506         506 506                  
Ending balance at Mar. 31, 2023 375,153 $ 289 284,221 $ (45,538) 70,236 (2,843) 306,365 68,788                
Ending balance, shares at Mar. 31, 2023   28,912,147   (5,602,154)                        
Balance at Dec. 31, 2022 370,524 $ 287 283,663 $ (45,538) 66,673 (3,349) 301,736 68,788 $ 360,589 $ 287 $ 283,663 $ (45,538) $ 56,738 $ (3,349) $ 291,801 $ 68,788
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022 $ (9,935)       (9,935)   (9,935)                  
Balance, shares at Dec. 31, 2022 23,061,673 28,663,827   (5,602,154)           28,663,827   (5,602,154)        
Net income $ 32,555                              
Other comprehensive loss, net of tax (400)                              
Net change in unrealized gains on investments, net of tax 400                              
Ending balance at Jun. 30, 2023 $ 387,764 $ 289 285,435 $ (45,538) 82,539 (3,749) 318,976 68,788                
Ending balance, shares at Jun. 30, 2023 23,345,017 28,947,171   (5,602,154)                        
Balance at Mar. 31, 2023 $ 375,153 $ 289 284,221 $ (45,538) 70,236 (2,843) 306,365 68,788                
Balance, shares at Mar. 31, 2023   28,912,147   (5,602,154)                        
Net income 15,682       14,170   14,170 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense $ 1,214 $ 0 1,214       1,214                  
Issuance of restricted stock, net, shares   11,734                            
Forfeiture of restricted stock, net, shares   (204)                            
Issuance in connection with vesting of restricted stock units   23,211                            
Exercise of stock options, shares 283 [1] 283                            
Dividend paid on common stock $ (1,867)       (1,867)   (1,867)                  
Other comprehensive loss, net of tax (906)         (906) (906)                  
Net change in unrealized gains on investments, net of tax 900                              
Ending balance at Jun. 30, 2023 $ 387,764 $ 289 $ 285,435 $ (45,538) $ 82,539 $ (3,749) $ 318,976 $ 68,788                
Ending balance, shares at Jun. 30, 2023 23,345,017 28,947,171   (5,602,154)                        
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2023 and was $0.1 million for the year ended December 31, 2022.
v3.23.2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]        
Dividends payable, amount per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
v3.23.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 32,555 $ 26,165
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for credit losses 12,514 10,999
Paid-in-kind interest income (644) (347)
Depreciation and amortization 2,538 2,844
Amortization of origination fees, net 4,667 4,670
Increase in deferred and other tax liabilities, net 3,164 5,309
Net change in value of loan collateral in process of foreclosure 4,362 2,487
Net realized loss (gains) on sale of investments 99 (4,108)
Stock-based compensation expense 2,250 1,461
Increase in accrued interest receivable (732) (913)
Increase in other assets (10,989) (5,470)
Increase in accounts payable and accrued expenses 8,841 8,186
(Decrease) increase in accrued interest payable (341) 153
Net cash provided by operating activities 58,284 51,436
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (583,669) (528,139)
Proceeds from principal receipts, sales, and maturities of loans 313,847 270,009
Purchases of investments (8,224) (15,809)
Proceeds from principal receipts, sales, and maturities of investments 1,400 9,937
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 11,308 13,766
Net cash used for investing activities (265,338) (250,236)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 513,795 506,158
Repayments of time deposits and funds borrowed (280,622) (288,154)
Cash dividend paid on common stock (3,663) (3,896)
Distributions to non-controlling interests (3,024) (3,023)
Payment of withholding taxes on net settlement of vested stock (768) 0
Treasury stock repurchased 0 (10,591)
Proceeds from the exercise of stock options 292 152
Net cash provided by financing activities 226,010 200,646
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 18,956 1,846
Cash, and cash equivalents beginning of period [1] 105,598 124,484
Cash and cash equivalents, end of period (1) [1] 124,554 126,330
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 25,999 14,123
Cash paid during the period for income taxes 8,662 3,175
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 10,654 $ 5,797
[1] Includes federal funds sold.
v3.23.2
Organization of Medallion Financial Corp. and its Subsidiaries
 6 Months Ended
Jun. 30, 2023
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 roofs, swimming pools, and windows. Prior to 2015, 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.

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 historically originated and serviced 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 June 30, 2023, 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.
v3.23.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

Principles of Consolidation

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

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, 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 June 30, 2023, cash includes $1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years.

Fair Value of Assets and Liabilities

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

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $11.4 million and $10.3 million at June 30, 2023 and December 31, 2022, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of June 30, 2023, a cumulative impairment of $2.5 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 both June 30, 2023 and December 31, 2022, the fair value of these securities were $1.7 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.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net losses recognized during the period on equity securities

 

$

(28

)

 

$

(63

)

 

$

—

 

 

$

(154

)

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

 

$

(28

)

 

$

(63

)

 

$

—

 

 

$

(154

)

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at both June 30, 2023 and December 31, 2022, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 2023 and 2022. 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable.

 

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 are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At June 30, 2023 and December 31, 2022, net loan origination costs were $40.4 million and $34.9 million. Net amortization to income for the three and six months ended June 30, 2023 was $2.4 million and $4.3 million and was $2.4 million and $4.5 million for the three and six months ended June 30, 2022.

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. Consumer loans are placed on nonaccrual when they become 90 days past due 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 $6.2 million at June 30, 2023, or 0.29% of the total loan portfolio, compared to $8.9 million, or 0.47%, at December 31, 2022. Beginning in the first quarter of 2023, the Company began charging off recreation loans at the point when borrowers filed for bankruptcy. This change resulted in approximately $2.5 million of loans being charged off in the six months ended June 30, 2023.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. 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 interest 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. Modified loans are considered impaired loans.

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 $15.6 million and $19.5 million at June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022.

 

Allowance for Credit Losses

On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquency and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)

 

December 31, 2022
Pre-Topic 326
Adoption

 

 

Effect of ASC 326
Adoption
(Transition Amounts)

 

 

January 1, 2023
Post-ASC 326
Adoption

 

Assets:

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

Recreation

 

$

41,966

 

 

$

10,037

 

 

$

52,003

 

Home improvement

 

 

11,340

 

 

 

1,518

 

 

 

12,858

 

Commercial

 

 

1,049

 

 

 

2,157

 

 

 

3,206

 

Medallion

 

 

9,490

 

 

 

—

 

 

 

9,490

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

Allowance for credit losses on loans

 

$

63,845

 

 

$

13,712

 

 

$

77,557

 

Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available.

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 June 30, 2023 and December 31, 2022, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2023 and December 31, 2022, the Company had intangible assets of $21.3 million and $22.0 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2023 and 2022 was $0.4 million and $0.7 million. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022, concluding that there was no impairment of these assets.

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Brand-related intellectual property

 

$

16,227

 

 

$

16,775

 

Home improvement contractor relationships

 

 

5,088

 

 

 

5,260

 

Total intangible assets

 

$

21,315

 

 

$

22,035

 

 

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $0.1 million for the three and six months ended June 30, 2023 and 2022.

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight-line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $0.8 million and $1.5 million for the three and six months ended June 30, 2023 and was $0.7 million and $1.3 million for the three and six months ended June 30, 2022. 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 $6.8 million and $7.0 million as of June 30, 2023 and December 31, 2022.

Income Taxes

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

Earnings Per Share (EPS)

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

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income available to common stockholders

 

$

14,170

 

 

$

13,300

 

 

$

29,531

 

 

$

23,141

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

22,488,463

 

 

 

24,153,015

 

 

 

22,416,089

 

 

 

24,459,870

 

Effect of restricted stock grants

 

 

276,420

 

 

 

184,620

 

 

 

379,924

 

 

 

204,273

 

Effect of dilutive stock options

 

 

43,567

 

 

 

84,232

 

 

 

96,342

 

 

 

86,869

 

Effect of performance share units

 

 

45,477

 

 

 

—

 

 

 

22,739

 

 

 

—

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

22,853,927

 

 

 

24,421,867

 

 

 

22,915,094

 

 

 

24,751,012

 

Basic net income per share

 

$

0.63

 

 

$

0.55

 

 

$

1.32

 

 

$

0.95

 

Diluted net income per share

 

 

0.62

 

 

 

0.54

 

 

 

1.29

 

 

 

0.93

 

Potentially dilutive common shares excluded from the above calculations aggregated 644,478 and 832,895 shares as of June 30, 2023 and 2022.

 

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 six months ended June 30, 2023 and 2022, the Company issued 316,483 and 383,925 restricted shares of stock-based compensation awards, 296,444 and 0 performance stock units and no restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.2 million and $2.2 million, or $0.05 and $0.10 per share, for the three and six months ended June 30, 2023, and $0.9 million and $1.5 million, or $0.04 and $0.06 per diluted common share, for the three and six months ended June 30, 2022, of non-cash stock-based compensation expense related to the grants. As of June 30, 2023, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $5.9 million, which is expected to be recognized over the next 11 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 credit losses be maintained. As of June 30, 2023, the Bank’s Tier 1 leverage ratio was 16.0%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

June 30, 2023

 

 

December 31, 2022

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

267,700

 

 

$

242,049

 

Tier 1 capital

 

 

 

 

 

 

 

 

336,488

 

 

 

310,837

 

Total capital

 

 

 

 

 

 

 

 

363,589

 

 

 

334,913

 

Average assets

 

 

 

 

 

 

 

 

2,099,762

 

 

 

1,917,904

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,123,720

 

 

 

1,888,530

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.0

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

12.6

 

 

 

12.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

15.8

 

 

 

16.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.1

 

 

 

17.7

 
(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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $6.2 million and increased the Tier 1 capital ratio by 27 basis points.

In the table above, the minimum risk-based ratios as of June 30, 2023 and December 31, 2022 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 June 30, 2023 and December 31, 2022.

 

Recently Issued and Adopted Accounting Standards

On January 1, 2023, the Company adopted ASC 326. Please refer to Allowance for Credit Losses, within this footnote, for the impact of adopting this standard.

In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures, or Topic 323: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The main objective of this new standard is to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. The Company is assessing the impact of the update 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.
v3.23.2
Investment Securities
 6 Months Ended
Jun. 30, 2023
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of June 30, 2023 and December 31, 2022:

June 30, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

46,195

 

 

$

—

 

 

$

(5,187

)

 

$

41,008

 

State and municipalities

 

 

13,862

 

 

 

—

 

 

 

(1,178

)

 

 

12,684

 

Total

 

$

60,057

 

 

$

—

 

 

$

(6,365

)

 

$

53,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

The amortized cost and estimated market value of investment securities at June 30, 2023 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.

June 30, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

9,478

 

 

 

9,035

 

Due after five years through ten years

 

 

9,417

 

 

 

8,240

 

Due after ten years

 

 

41,162

 

 

 

36,417

 

Total

 

$

60,057

 

 

$

53,692

 

The following tables show information pertaining to securities with gross unrealized losses at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

June 30, 2023
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(90

)

 

$

6,057

 

 

$

(5,097

)

 

$

34,951

 

State and municipalities

 

 

(87

)

 

 

4,957

 

 

 

(1,091

)

 

 

7,723

 

Total

 

$

(177

)

 

$

11,014

 

 

$

(6,188

)

 

$

42,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 U.S. 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

 

 

As of June 30, 2023 and December 31, 2022, the Company had 62 and 57 securities with unrealized losses that have not been recognized in income. The investments are mortgage-backed securities and similar instruments with lower risk characteristics. The decline in value was due to the rapid increase in market rates during 2022 and 2023, not the underlying asset credit performance. The Company regularly reviews investment securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period. We presently do not intend to sell our investment securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost.
v3.23.2
Loans and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2023
Text Block [Abstract]  
Loans and Allowance for Credit Losses

(4) LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2023 and December 31, 2022.

 

 

June 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,331,114

 

 

 

62

%

 

$

1,183,512

 

 

 

62

%

Home improvement

 

 

728,468

 

 

 

34

 

 

 

626,399

 

 

 

33

 

Commercial

 

 

92,637

 

 

 

4

 

 

 

92,899

 

 

 

5

 

Medallion

 

 

3,448

 

 

*

 

 

 

13,571

 

 

 

1

 

Strategic partnership

 

 

1,331

 

 

*

 

 

 

572

 

 

*

 

Total gross loans

 

 

2,156,998

 

 

 

100

%

 

 

1,916,953

 

 

 

100

%

Allowance for credit losses

 

 

(74,971

)

 

 

 

 

 

(63,845

)

 

 

 

Total net loans

 

$

2,082,027

 

 

 

 

 

$

1,853,108

 

 

 

 

(*) Less than 1%.

The following tables show the activity of the gross loans for the three and six months ended June 30, 2023 and 2022.

Three Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2023

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

Loan originations

 

 

190,007

 

 

 

117,035

 

 

 

4,750

 

 

 

1,300

 

 

 

33,174

 

 

 

346,266

 

Principal payments, sales, maturities, and recoveries

 

 

(63,463

)

 

 

(55,350

)

 

 

(6,922

)

 

 

(1,531

)

 

 

(33,613

)

 

 

(160,879

)

Charge-offs

 

 

(9,166

)

 

 

(2,575

)

 

 

(900

)

 

 

(221

)

 

 

—

 

 

 

(12,862

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,991

)

 

 

—

 

 

 

—

 

 

 

(159

)

 

 

—

 

 

 

(4,150

)

Amortization of origination costs

 

 

(3,159

)

 

 

665

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,494

)

FASB origination costs, net

 

 

7,506

 

 

 

(949

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,557

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

380

 

 

 

—

 

 

 

—

 

 

 

380

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

Loan originations

 

 

291,688

 

 

 

212,016

 

 

 

7,750

 

 

 

1,923

 

 

 

60,180

 

 

 

573,557

 

Principal payments, sales, maturities, and recoveries

 

 

(119,680

)

 

 

(105,205

)

 

 

(7,756

)

 

 

(5,926

)

 

 

(59,421

)

 

 

(297,988

)

Charge-offs

 

 

(21,756

)

 

 

(4,489

)

 

 

(900

)

 

 

(3,814

)

 

 

—

 

 

 

(30,959

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,348

)

 

 

—

 

 

 

—

 

 

 

(2,306

)

 

 

—

 

 

 

(10,654

)

Amortization of origination costs

 

 

(5,918

)

 

 

1,251

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,667

)

FASB origination costs, net

 

 

11,616

 

 

 

(1,504

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,112

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

644

 

 

 

—

 

 

 

—

 

 

 

644

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2022

 

$

1,004,091

 

 

$

473,408

 

 

$

77,867

 

 

$

13,849

 

 

$

226

 

 

$

1,569,441

 

Loan originations

 

 

170,207

 

 

 

105,172

 

 

 

19,272

 

 

 

472

 

 

 

9,830

 

 

 

304,953

 

Principal payments, sales, maturities, and recoveries

 

 

(73,114

)

 

 

(51,006

)

 

 

(386

)

 

 

(30

)

 

 

(9,463

)

 

 

(133,999

)

Charge-offs

 

 

(5,074

)

 

 

(1,108

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,182

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,618

)

 

 

—

 

 

 

—

 

 

 

(139

)

 

 

—

 

 

 

(2,757

)

Amortization of origination costs

 

 

(2,931

)

 

 

380

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,551

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

6,169

 

 

 

(478

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,691

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

175

 

 

 

—

 

 

 

—

 

 

 

175

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

284,613

 

 

 

194,992

 

 

 

23,672

 

 

 

564

 

 

 

14,839

 

 

 

518,680

 

Principal payments, sales, maturities, and recoveries

 

 

(138,230

)

 

 

(103,170

)

 

 

(2,203

)

 

 

(115

)

 

 

(14,336

)

 

 

(258,054

)

Charge-offs

 

 

(10,141

)

 

 

(2,168

)

 

 

(1,584

)

 

 

(75

)

 

 

—

 

 

 

(13,968

)

Transfer to loan collateral in process of foreclosure, net

 

 

(5,529

)

 

 

—

 

 

 

—

 

 

 

(268

)

 

 

—

 

 

 

(5,797

)

Amortization of origination costs

 

 

(5,370

)

 

 

700

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,670

)

Amortization of loan premium

 

 

(120

)

 

 

(180

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(300

)

FASB origination costs, net

 

 

10,127

 

 

 

(668

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,459

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

347

 

 

 

—

 

 

 

—

 

 

 

347

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Allowance for credit losses – beginning balance (1)

 

$

70,280

 

 

$

50,686

 

 

$

63,845

 

 

$

50,166

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

—

 

 

 

13,712

 

 

 

—

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(9,166

)

 

 

(5,074

)

 

 

(21,756

)

 

 

(10,141

)

Home improvement

 

 

(2,575

)

 

 

(1,108

)

 

 

(4,489

)

 

 

(2,168

)

Commercial

 

 

(900

)

 

 

—

 

 

 

(900

)

 

 

(1,584

)

Medallion

 

 

(221

)

 

 

—

 

 

 

(3,814

)

 

 

(75

)

Total charge-offs

 

 

(12,862

)

 

 

(6,182

)

 

 

(30,959

)

 

 

(13,968

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

3,282

 

 

 

3,615

 

 

 

6,053

 

 

 

7,125

 

Home improvement

 

 

627

 

 

 

585

 

 

 

1,259

 

 

 

1,144

 

Commercial

 

 

—

 

 

 

13

 

 

 

10

 

 

 

47

 

Medallion

 

 

5,168

 

 

 

2,676

 

 

 

8,537

 

 

 

3,639

 

Total recoveries

 

 

9,077

 

 

 

6,889

 

 

 

15,859

 

 

 

11,955

 

Net recoveries (charge-offs) (2)

 

 

(3,785

)

 

 

707

 

 

 

(15,100

)

 

 

(2,013

)

Provision (benefit) for credit losses

 

 

8,476

 

 

 

7,759

 

 

 

12,514

 

 

 

10,999

 

Allowance for credit losses – ending balance (3)

 

$

74,971

 

 

$

59,152

 

 

$

74,971

 

 

$

59,152

 
(1)
Represents allowance prior to the adoption of ASU 2016-13.
(2)
As of June 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $231.4 million, some of which may represent collection opportunities for the Company.
(3)
As of June 30, 2023 and June 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

 

With the adoption of ASC 326, the Company also adopted ASU 2022-02, Financial Instruments – Credit Losses, or Topic 326: Troubled Debt Restructurings and Vintage Disclosures. Under this standard, the Company is required to disclose current period gross write-offs, by year of origination, for financing receivables.

The following table sets forth the gross charge-offs for the three months ended June 30, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

3,568

 

 

$

2,344

 

 

$

785

 

 

$

918

 

 

$

1,507

 

 

$

9,166

 

Home improvement

 

 

39

 

 

 

1,548

 

 

 

473

 

 

 

158

 

 

 

91

 

 

 

266

 

 

 

2,575

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

221

 

 

 

221

 

Total

 

$

83

 

 

$

5,116

 

 

$

2,817

 

 

$

943

 

 

$

1,909

 

 

$

1,994

 

 

$

12,862

 

The following table sets forth the gross charge-offs for the six months ended June 30, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

7,176

 

 

$

5,414

 

 

$

2,456

 

 

$

2,472

 

 

$

4,194

 

 

$

21,756

 

Home improvement

 

 

39

 

 

 

2,452

 

 

 

1,101

 

 

 

301

 

 

 

222

 

 

 

374

 

 

 

4,489

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,814

 

 

 

3,814

 

Total

 

$

83

 

 

$

9,628

 

 

$

6,515

 

 

$

2,757

 

 

$

3,594

 

 

$

8,382

 

 

$

30,959

 

The following tables set forth the allowance for credit losses by type as of June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

54,187

 

 

 

72

%

 

 

4.07

%

 

 

335.63

%

Home improvement

 

 

16,447

 

 

 

22

 

 

 

2.26

 

 

 

101.87

 

Commercial

 

 

2,518

 

 

 

3

 

 

 

2.72

 

 

 

15.60

 

Medallion

 

 

1,819

 

 

 

3

 

 

 

52.76

 

 

 

11.27

 

Total

 

$

74,971

 

 

 

100

%

 

 

3.48

%

 

 

464.36

%

 

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

%

The following table presents total nonaccrual loans and foregone interest. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Total nonaccrual loans

 

$

16,145

 

 

$

32,133

 

Interest foregone quarter to date

 

 

237

 

 

 

231

 

Amount of foregone interest applied to principal in the quarter

 

 

63

 

 

 

94

 

Interest foregone year to date

 

 

507

 

 

 

1,267

 

Amount of foregone interest applied to principal for the year

 

 

133

 

 

 

375

 

Interest foregone life-to-date

 

 

1,655

 

 

 

2,419

 

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

 

 

789

 

 

 

1,204

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

0.7

%

 

 

1.7

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

464.4

%

 

 

198.7

%

 

The following tables present the performance status of loans as of June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,325,745

 

 

$

5,369

 

 

$

1,331,114

 

 

 

0.40

%

Home improvement

 

 

727,332

 

 

 

1,136

 

 

 

728,468

 

 

 

0.16

 

Commercial

 

 

86,445

 

 

 

6,192

 

 

 

92,637

 

 

 

6.68

 

Medallion

 

 

—

 

 

 

3,448

 

 

 

3,448

 

 

 

100.00

 

Strategic partnership

 

 

1,331

 

 

 

—

 

 

 

1,331

 

 

 

—

 

Total

 

$

2,140,853

 

 

$

16,145

 

 

$

2,156,998

 

 

 

0.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

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 June 30, 2023 and December 31, 2022, all of which had an allowance recorded against the principal balance.

 

June 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,369

 

 

$

5,369

 

 

$

219

 

 

$

9,666

 

 

$

9,666

 

 

$

343

 

Home improvement

 

 

1,136

 

 

 

1,136

 

 

 

26

 

 

 

579

 

 

 

579

 

 

 

10

 

Commercial

 

 

6,192

 

 

 

6,301

 

 

 

472

 

 

 

8,734

 

 

 

8,823

 

 

 

963

 

Medallion

 

 

3,448

 

 

 

4,128

 

 

 

1,819

 

 

 

13,571

 

 

 

14,686

 

 

 

9,490

 

Total nonperforming loans with an allowance

 

$

16,145

 

 

$

16,934

 

 

$

2,536

 

 

$

32,550

 

 

$

33,754

 

 

$

10,806

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,230

 

 

$

7

 

 

$

5,197

 

 

$

119

 

Home improvement

 

 

1,138

 

 

 

1

 

 

 

396

 

 

 

—

 

Commercial

 

 

5,652

 

 

 

—

 

 

 

13,577

 

 

 

—

 

Medallion

 

 

4,686

 

 

 

—

 

 

 

16,095

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

16,706

 

 

$

8

 

 

$

35,265

 

 

$

119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,208

 

 

$

9

 

 

$

5,265

 

 

$

223

 

Home improvement

 

 

1,129

 

 

 

1

 

 

 

388

 

 

 

—

 

Commercial

 

 

5,644

 

 

 

—

 

 

 

13,561

 

 

 

—

 

Medallion

 

 

4,908

 

 

 

—

 

 

 

16,798

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

16,889

 

 

$

10

 

 

$

36,012

 

 

$

223

 

 

The following tables show the aging of all loans as of June 30, 2023 and December 31, 2022.

June 30, 2023

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

28,438

 

 

$

9,464

 

 

$

4,978

 

 

$

42,880

 

 

$

1,245,120

 

 

$

1,288,000

 

 

$

—

 

Home improvement

 

 

2,505

 

 

 

1,657

 

 

 

1,138

 

 

 

5,300

 

 

 

725,899

 

 

 

731,199

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

93,894

 

 

 

93,968

 

 

 

—

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,448

 

 

 

3,448

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,331

 

 

 

1,331

 

 

 

—

 

Total

 

$

30,943

 

 

$

11,121

 

 

$

6,190

 

 

$

48,254

 

 

$

2,069,692

 

 

$

2,117,946

 

 

$

—

 
(1)
Excludes $40.4 million of capitalized loan origination costs.

 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.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 196% and 339% as of June 30, 2023 and December 31, 2022.

Under ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures," concurrent with the elimination of troubled debt restructuring, or TDR, disclosures, the Company must disclose loans to borrowers experiencing financial difficulty that were modified during the reporting period. The Company did not have any such loan modifications on January 1, 2023 or during the six months ended June 30, 2023.

The following table shows the TDRs that the Company entered into during the three and six months ended June 30, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended June 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

12

 

 

$

147

 

 

$

147

 

Medallion loans

 

 

—

 

 

 

—

 

 

 

—

 

Six months ended June 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

22

 

 

$

276

 

 

$

276

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

As of June 30, 2022, no medallion or commercial loans modified as TDRs in the previous 12 months were in default. As of June 30, 2022, 20 recreation loans modified as TDRs were in default and had an investment value of $0.2 million.

 

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and six months ended June 30, 2023 and 2022.

Three Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2023

 

$

1,461

 

 

$

19,006

 

 

$

20,467

 

Transfer from loans, net

 

 

3,991

 

 

 

159

 

 

 

4,150

 

Sales

 

 

(2,583

)

 

 

(553

)

 

 

(3,136

)

Cash payments received

 

 

(128

)

 

 

(2,517

)

 

 

(2,645

)

Collateral valuation adjustments

 

 

(2,012

)

 

 

(21

)

 

 

(2,033

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 

Transfer from loans, net

 

 

8,348

 

 

 

2,306

 

 

 

10,654

 

Sales

 

 

(4,778

)

 

 

(568

)

 

 

(5,346

)

Cash payments received

 

 

(128

)

 

 

(5,834

)

 

 

(5,962

)

Collateral valuation adjustments

 

 

(4,089

)

 

 

(273

)

 

 

(4,362

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2022

 

$

1,369

 

 

$

32,465

 

 

$

33,834

 

Transfer from loans, net

 

 

2,618

 

 

 

139

 

 

 

2,757

 

Sales

 

 

(2,146

)

 

 

(1,999

)

 

 

(4,145

)

Cash payments received

 

 

—

 

 

 

(4,381

)

 

 

(4,381

)

Collateral valuation adjustments

 

 

(963

)

 

 

(128

)

 

 

(1,091

)

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

5,529

 

 

 

268

 

 

 

5,797

 

Sales

 

 

(4,398

)

 

 

(2,115

)

 

 

(6,513

)

Cash payments received

 

 

—

 

 

 

(7,253

)

 

 

(7,253

)

Collateral valuation adjustments

 

 

(1,973

)

 

 

(514

)

 

 

(2,487

)

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

As of June 30, 2023, medallion loans in the process of foreclosure included 435 medallions in the New York City market, 251 medallions in the Chicago market, 46 medallions in the Newark market, and 34 medallions in other markets.
v3.23.2
Funds Borrowed
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

 

Payments Due for the Twelve Months Ending June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

June 30, 2023 (1)

 

 

December 31, 2022(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

678,737

 

 

$

563,203

 

 

$

281,895

 

 

$

198,331

 

 

$

93,777

 

 

$

—

 

 

$

1,815,943

 

 

$

1,609,672

 

 

 

2.70

%

Federal reserve discount window

 

 

28,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,000

 

 

 

—

 

 

 

5.25

 

Privately placed notes

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

—

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

3,880

 

 

 

12,500

 

 

 

15,500

 

 

 

4,500

 

 

 

—

 

 

 

30,500

 

 

 

66,880

 

 

 

68,512

 

 

 

3.13

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

7.62

 

Total

 

$

746,617

 

 

$

575,703

 

 

$

328,645

 

 

$

202,831

 

 

$

147,527

 

 

$

63,500

 

 

$

2,064,823

 

 

$

1,832,184

 

 

 

3.12

%
(1)
Excludes deferred financing costs of $6.8 million and $7.0 million as of June 30, 2023 and December 31, 2022.
(2)
Weighted average contractual rate as of June 30, 2023.
(3)
Balance excludes $1.5 million and $1.3 million of strategic partner reserve deposits as of June 30, 2023 and December 31, 2022.

(A) DEPOSITS

Most deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. In October 2020, the Bank began to originate time deposits through internet listing services. These deposits are from other financial institutions and, as of June 30, 2023 and December 31, 2022, the Bank had $12.3 million and $12.4 million in listing service deposit balances. In April 2023, the Bank began to originate retail savings deposits through a third-party service provider and, as of June 30, 2023, the Bank had $23.9 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2023.

(Dollars in thousands)

 

June 30, 2023

 

Three months or less

 

$

162,219

 

Over three months through six months

 

 

186,757

 

Over six months through one year

 

 

329,761

 

Over one year

 

 

1,138,754

 

Total deposits

 

$

1,817,491

 

(B) FEDERAL RESERVE DISCOUNT WINDOW

In March 2023, the Bank established a discount window line of credit at the Federal Reserve. As of June 30, 2023, the Bank had $38.9 million in investment securities pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is 100% of fair value, for a total of $38.7 million in secured borrowing capacity, of which $28.0 million was utilized as of June 30, 2023.

(C) 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 March 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.

 

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four-and-a-half year term and a 1% fee, which fee was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33.5 million in principal into a new loan by the SBA to FSVC in the principal amount of $34.0 million, or the SBA Loan. In connection with the SBA Loan, FSVC executed a Note, or the SBA Note, with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34.0 million. The SBA Loan bears interest at a rate of 3.25% and all remaining unpaid principal and interest are due on April 30, 2024, the maturity date. As of June 30, 2023, $66.9 million was outstanding, including $1.4 million under the SBA Note.

(E) 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. Prior to the cessation of LIBOR on June 30, 2023, the notes bore a variable rate of interest of 90-day LIBOR plus 2.13%. With the cessation of LIBOR, interest is calculated using the Secured Overnight Financing Rate (SOFR) adjusted by a relevant spread adjustment of approximately 26 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 June 30, 2023, $33.0 million was outstanding on the preferred securities.

(F) 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 June 30, 2023, the Company did not have any borrowing agreements that contained any such restrictions.
v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases

(6) LEASES

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

The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2023 and 2022.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease costs

 

$

597

 

 

$

590

 

 

$

1,195

 

 

$

1,179

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

603

 

 

 

435

 

 

 

1,226

 

 

 

1,080

 

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

 

 

(56

)

 

 

(40

)

 

 

(111

)

 

 

(85

)

The following table presents the breakout of the operating leases as of June 30, 2023 and December 31, 2022.

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Operating lease right-of-use assets

 

$

9,001

 

 

$

9,723

 

Other current liabilities

 

 

2,188

 

 

 

2,239

 

Operating lease liabilities

 

 

7,629

 

 

 

8,408

 

Total operating lease liabilities

 

 

9,817

 

 

 

10,647

 

Weighted average remaining lease term

 

5.1 years

 

 

5.5 years

 

Weighted average discount rate

 

 

5.59

%

 

 

5.66

%

 

At June 30, 2023, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2023

 

$

1,250

 

2024

 

 

2,508

 

2025

 

 

2,492

 

2026

 

 

2,440

 

2027

 

 

1,212

 

Thereafter

 

 

1,290

 

Total lease payments

 

 

11,192

 

Less imputed interest

 

 

1,375

 

Total operating lease liabilities

 

$

9,817

 
v3.23.2
Income Taxes
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022.

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Goodwill and other intangibles

 

$

(43,215

)

 

$

(43,397

)

Provision for credit losses

 

 

10,913

 

 

 

9,945

 

Net operating loss carryforwards (1)

 

 

3,730

 

 

 

3,730

 

Accrued expenses, compensation, and other assets

 

 

3,601

 

 

 

3,819

 

Unrealized gains on other investments

 

 

426

 

 

 

1,445

 

Total deferred tax liability

 

 

(24,545

)

 

 

(24,458

)

Valuation allowance

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(26,840

)

 

$

(26,753

)
(1)
As of June 30, 2023, 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 as of June 30, 2023.

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2023 and 2022 as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

3,873

 

 

$

984

 

 

$

6,456

 

 

$

1,488

 

State

 

 

1,175

 

 

 

447

 

 

 

1,964

 

 

 

769

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

204

 

 

 

2,378

 

 

 

2,450

 

 

 

5,598

 

State

 

 

220

 

 

 

1,047

 

 

 

984

 

 

 

1,832

 

Net provision for income taxes

 

$

5,472

 

 

$

4,856

 

 

$

11,854

 

 

$

9,687

 

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2023 and 2022.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Statutory Federal income tax provision at 21%

 

$

4,442

 

 

$

4,130

 

 

$

9,326

 

 

$

7,529

 

State and local income taxes, net of federal income tax

 

 

869

 

 

 

808

 

 

 

1,824

 

 

 

1,473

 

Non-deductible expenses

 

 

19

 

 

 

362

 

 

 

1,076

 

 

 

1,075

 

Other

 

 

142

 

 

 

(444

)

 

 

(372

)

 

 

(390

)

Total income tax provision

 

$

5,472

 

 

$

4,856

 

 

$

11,854

 

 

$

9,687

 

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 June 30, 2023.

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.
v3.23.2
Stock Options and Restricted Stock
 6 Months Ended
Jun. 30, 2023
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 2,408,252 remained issuable as of June 30, 2023. 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 vested 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 vested 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 June 30, 2023, 983,986 options on the Company’s common stock were outstanding under the Company’s plans, of which 721,726 options were vested. Additionally, as of June 30, 2023, there were 917,734 unvested restricted shares, 296,444 performance share units, no unvested restricted stock units, and 157,447 vested restricted stock units under the 2018 Plan.

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. There were no options granted during the six months ended June 30, 2023 and 2022. The following assumption categories are used to determine the value of any option grants.

During 2023, the Company’s Compensation Committee of the Board of Directors began granting performance stock units, or PSUs, to certain officers and employees of the Company. Granted PSUs are subject to specified performance criteria for a particular performance period. The number of PSUs that vest can range from zero to 200% of the grant amount. In addition, dividends that accrue during the vesting period are reinvested in dividend equivalent PSUs. PSUs and the related dividend equivalent PSUs are converted into shares of common stock after vesting. Once the PSUs and dividend equivalent PSUs have vested, shares of common stock are delivered.

 

The following table presents the activity for the stock option programs for the 2023 first and second quarters and the 2022 full year.

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2021

 

 

1,111,687

 

 

$

2.14-12.55

 

 

$

6.41

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(26,093

)

 

 

4.89 - 12.55

 

 

 

7.08

 

Exercised

 

 

(23,745

)

 

 

4.89 - 7.25

 

 

 

6.51

 

Outstanding at December 31, 2022

 

 

1,061,849

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(25,194

)

 

 

4.89 - 9.38

 

 

 

6.97

 

Exercised (1)

 

 

(44,583

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2023

 

 

992,072

 

 

$

2.14 - 9.38

 

 

$

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(7,803

)

 

 

4.89 - 7.25

 

 

 

6.31

 

Exercised (1)

 

 

(283

)

 

 

 

4.89

 

 

 

4.89

 

Outstanding at June 30, 2023 (2)

 

 

983,986

 

 

$

2.14 - 9.38

 

 

$

6.50

 

Options vested at:

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

548,426

 

 

$

2.14 - 9.38

 

 

$

6.51

 

June 30, 2023

 

 

721,726

 

 

$

2.14 - 9.38

 

 

$

6.50

 
(1)
The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2023 and was $0.1 million for the year ended December 31, 2022.
(2)
The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $1.4 million for outstanding options and $1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023.

The following table presents the activity for the unvested options outstanding under the plans described above for the 2023 first and second quarter.

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2022

 

 

513,423

 

 

$

4.89 - 7.25

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(2,951

)

 

 

4.89 - 7.25

 

 

 

5.53

 

Vested

 

 

(248,212

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2023

 

 

262,260

 

 

$

4.89 - 7.25

 

 

$

6.49

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2023

 

 

262,260

 

 

$

4.89 - 7.25

 

 

$

6.49

 

The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2023.

The following table presents the activity for the restricted stock programs for the 2023 first and second quarter and the 2022 full year.

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2021

 

 

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

 

 

857,288

 

 

$

4.89 - 7.25

 

 

$

7.27

 

Granted

 

 

304,749

 

 

 

 

8.08

 

 

 

8.08

 

Cancelled

 

 

(9,843

)

 

 

4.89 - 8.40

 

 

 

7.18

 

Vested

 

 

(245,990

)

 

 

4.89 - 7.68

 

 

 

7.12

 

Outstanding at March 31, 2023

 

 

906,204

 

 

$

4.89 - 8.40

 

 

$

7.58

 

Granted

 

 

11,734

 

 

 

 

7.67

 

 

 

7.67

 

Cancelled

 

 

(204

)

 

 

 

6.86

 

 

 

6.86

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2023 (2)

 

 

917,734

 

 

$

4.89 - 8.40

 

 

$

7.59

 
(1)
The aggregate fair value of the restricted stock vested was $2.1 million for the six months ended June 30, 2023 and was $1.0 million for the year ended December 31, 2022.
(2)
The aggregate fair value of the restricted stock was $7.3 million as of June 30, 2023. The remaining vesting period was 2.6 years at June 30, 2023.

 

During the three and six months ended June 30, 2023, the Company did not grant any restricted stock units, or RSUs, and during the year ended December 31, 2022, granted 129,638 RSUs with a vesting date of June 14, 2023 and a grant price of $6.75. For the RSUs granted in 2022, 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 June 30, 2023, there were 157,447 RSUs outstanding, all of which had previously vested.

During the three and six months ended June 30, 2023, the Company granted 296,444 PSUs at a grant price of $6.08. The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date, or are forfeited if the performance conditions are not met.
v3.23.2
Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

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

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are operated by the Bank and loans are made to borrowers residing nationwide. The highest concentrations of recreation loans are in Texas and Florida at 15% and 10% of loans outstanding and with no other states over 10% as of June 30, 2023. 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 and boats make up 59% and 19% of the segment portfolio, with no other product lines exceeding 10%, as of June 30, 2023. 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 41%, 19%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of June 30, 2023. 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 June 30, 2023. The commercial lending segment focuses on enterprise-wide industries, including manufacturing services, and various other industries, with California, Minnesota, Illinois, and Texas each having 23%, 15%, 12%, and 11% of the segment portfolio, and no other states having a concentration greater than 10%. The commercial lending business has concentrations in manufacturing, wholesale trade, construction, and administrative and support services making up 48%, 13%, 12%, and 11%, of the loans outstanding as of June 30, 2023, with no other product lines exceeding 10%. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, primarily all of which are located in the New York City metropolitan area as of June 30, 2023.

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.

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 three and six months ended June 30, 2023.

Three Months Ended June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

41,109

 

 

$

15,292

 

 

$

2,814

 

 

$

787

 

 

$

1,724

 

 

$

61,726

 

Total interest expense

 

 

7,580

 

 

 

4,194

 

 

 

852

 

 

 

46

 

 

 

2,363

 

 

 

15,035

 

Net interest income (loss)

 

 

33,529

 

 

 

11,098

 

 

 

1,962

 

 

 

741

 

 

 

(639

)

 

 

46,691

 

Provision (benefit) for credit losses

 

 

10,135

 

 

 

3,739

 

 

 

(113

)

 

 

(5,311

)

 

 

26

 

 

 

8,476

 

Net interest income (loss) after loss provision

 

 

23,394

 

 

 

7,359

 

 

 

2,075

 

 

 

6,052

 

 

 

(665

)

 

 

38,215

 

Other income (expense), net

 

 

(8,444

)

 

 

(4,386

)

 

 

(804

)

 

 

561

 

 

 

(3,988

)

 

 

(17,061

)

Net income (loss) before taxes

 

 

14,950

 

 

 

2,973

 

 

 

1,271

 

 

 

6,613

 

 

 

(4,653

)

 

 

21,154

 

Income tax (provision) benefit

 

 

(3,867

)

 

 

(769

)

 

 

(329

)

 

 

(1,713

)

 

 

1,206

 

 

 

(5,472

)

Net income (loss) after taxes

 

$

11,083

 

 

$

2,204

 

 

$

942

 

 

$

4,900

 

 

$

(3,447

)

 

$

15,682

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14,170

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.59

%

 

 

1.28

%

 

 

3.76

%

 

 

100.63

%

 

 

(3.69

)%

 

 

2.60

%

Return on average equity

 

 

22.94

 

 

 

8.19

 

 

 

23.97

 

 

 

641.63

 

 

 

(22.83

)

 

 

16.52

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

18.24

 

Interest yield

 

 

13.03

 

 

 

8.79

 

 

 

11.87

 

 

 

83.55

 

 

N/A

 

 

 

11.59

 

Net interest margin, gross

 

 

10.63

 

 

 

6.38

 

 

 

8.28

 

 

 

78.67

 

 

N/A

 

 

 

8.48

 

Net interest margin, net of allowance

 

 

11.08

 

 

 

6.53

 

 

 

8.54

 

 

 

166.23

 

 

N/A

 

 

 

8.77

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

N/A

 

 

 

3.48

 

Delinquency status (1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.29

 

Charge-off ratio (2)

 

 

1.86

 

 

 

1.12

 

 

 

3.80

 

 

 

(525.21

)

 

N/A

 

 

 

0.74

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

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

79,008

 

 

$

28,941

 

 

$

5,515

 

 

$

1,097

 

 

$

3,007

 

 

$

117,568

 

Total interest expense

 

 

13,484

 

 

 

7,473

 

 

 

1,661

 

 

 

113

 

 

 

4,544

 

 

 

27,275

 

Net interest income (loss)

 

 

65,524

 

 

 

21,468

 

 

 

3,854

 

 

 

984

 

 

 

(1,537

)

 

 

90,293

 

Provision (benefit) for credit losses

 

 

17,886

 

 

 

6,820

 

 

 

214

 

 

 

(12,395

)

 

 

(11

)

 

 

12,514

 

Net interest income (loss) after loss provision

 

 

47,638

 

 

 

14,648

 

 

 

3,640

 

 

 

13,379

 

 

 

(1,526

)

 

 

77,779

 

Other income (expense), net

 

 

(16,247

)

 

 

(8,379

)

 

 

(953

)

 

 

153

 

 

 

(7,944

)

 

 

(33,370

)

Net income (loss) before taxes

 

 

31,391

 

 

 

6,269

 

 

 

2,687

 

 

 

13,532

 

 

 

(9,470

)

 

 

44,409

 

Income tax (provision) benefit

 

 

(8,380

)

 

 

(1,674

)

 

 

(718

)

 

 

(3,612

)

 

 

2,530

 

 

 

(11,854

)

Net income (loss) after taxes

 

$

23,011

 

 

$

4,595

 

 

$

1,969

 

 

$

9,920

 

 

$

(6,940

)

 

$

32,555

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

29,531

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

1.39

%

 

 

3.94

%

 

 

94.20

%

 

 

(3.70

)%

 

 

2.79

%

Return on average equity

 

 

24.13

 

 

 

8.76

 

 

 

24.74

 

 

 

590.25

 

 

 

(23.24

)

 

 

17.49

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

19.45

 

Interest yield

 

 

12.93

 

 

 

8.66

 

 

 

11.71

 

 

 

28.80

 

 

N/A

 

 

 

11.01

 

Net interest margin, gross

 

 

10.72

 

 

 

6.43

 

 

 

8.18

 

 

 

25.84

 

 

N/A

 

 

 

8.45

 

Net interest margin, net of allowance

 

 

11.18

 

 

 

6.57

 

 

 

8.43

 

 

 

73.52

 

 

N/A

 

 

 

8.75

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

N/A

 

 

 

3.48

 

Delinquency status(1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.29

 

Charge-off ratio(2)

 

 

2.57

 

 

 

0.97

 

 

 

1.89

 

 

 

(124.01

)

 

N/A

 

 

 

1.51

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

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the three and six months ended June 30, 2022.

Three Months Ended June 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

33,514

 

 

$

10,587

 

 

$

2,278

 

 

$

231

 

 

$

501

 

 

$

47,111

 

Total interest expense

 

 

4,096

 

 

 

1,626

 

 

 

785

 

 

 

140

 

 

 

1,583

 

 

 

8,230

 

Net interest income (loss)

 

 

29,418

 

 

 

8,961

 

 

 

1,493

 

 

 

91

 

 

 

(1,082

)

 

 

38,881

 

Provision (benefit) for credit losses

 

 

6,674

 

 

 

1,697

 

 

 

1,879

 

 

 

(2,272

)

 

 

(219

)

 

 

7,759

 

Net interest income (loss) after loss provision

 

 

22,744

 

 

 

7,264

 

 

 

(386

)

 

 

2,363

 

 

 

(863

)

 

 

31,122

 

Other expense, net

 

 

(7,551

)

 

 

(3,210

)

 

 

3,263

 

 

 

(357

)

 

 

(3,600

)

 

 

(11,455

)

Net income (loss) before taxes

 

 

15,193

 

 

 

4,054

 

 

 

2,877

 

 

 

2,006

 

 

 

(4,463

)

 

 

19,667

 

Income tax (provision) benefit

 

 

(3,567

)

 

 

(975

)

 

 

(816

)

 

 

(540

)

 

 

1,042

 

 

 

(4,856

)

Net income (loss) after taxes

 

$

11,626

 

 

$

3,079

 

 

$

2,061

 

 

$

1,466

 

 

$

(3,421

)

 

$

14,811

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,511

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

13,300

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Total assets

 

 

1,072,356

 

 

 

521,931

 

 

 

103,643

 

 

 

31,258

 

 

 

382,943

 

 

 

2,112,131

 

Total funds borrowed

 

 

861,083

 

 

 

419,102

 

 

 

83,224

 

 

 

25,100

 

 

 

307,496

 

 

 

1,696,005

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.53

%

 

 

2.49

%

 

 

8.70

%

 

 

17.04

%

 

 

(3.56

)%

 

 

2.93

%

Return on average equity

 

 

25.52

 

 

 

14.03

 

 

 

49.03

 

 

 

95.46

 

 

 

(20.01

)

 

 

16.33

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

18.11

 

Interest yield

 

 

12.83

 

 

 

8.51

 

 

 

10.41

 

 

 

6.66

 

 

N/A

 

 

 

10.64

 

Net interest margin, gross

 

 

11.26

 

 

 

7.20

 

 

 

6.82

 

 

 

2.62

 

 

N/A

 

 

 

8.78

 

Net interest margin, net of allowance

 

 

11.65

 

 

 

7.33

 

 

 

6.93

 

 

 

7.88

 

 

N/A

 

 

 

9.07

 

Reserve coverage

 

 

3.44

 

 

 

1.75

 

 

 

2.81

 

 

 

66.61

 

 

N/A

 

 

 

3.41

 

Delinquency status (1)

 

 

0.36

 

 

 

0.07

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.25

 

Charge-off ratio (2)

 

 

0.56

 

 

 

0.42

 

 

 

(0.06

)

 

 

(77.17

)

 

N/A

 

 

 

(0.17

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

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

64,650

 

 

$

20,288

 

 

$

4,208

 

 

$

377

 

 

$

891

 

 

$

90,414

 

Total interest expense

 

 

7,697

 

 

 

2,967

 

 

 

1,507

 

 

 

293

 

 

 

3,141

 

 

 

15,605

 

Net interest income (loss)

 

 

56,953

 

 

 

17,321

 

 

 

2,701

 

 

 

84

 

 

 

(2,250

)

 

 

74,809

 

Provision (benefit) for credit losses

 

 

8,354

 

 

 

2,902

 

 

 

3,134

 

 

 

(3,544

)

 

 

153

 

 

 

10,999

 

Net interest income (loss) after loss provision

 

 

48,599

 

 

 

14,419

 

 

 

(433

)

 

 

3,628

 

 

 

(2,403

)

 

 

63,810

 

Other expense, net

 

 

(14,371

)

 

 

(6,106

)

 

 

1,932

 

 

 

(1,566

)

 

 

(7,847

)

 

 

(27,958

)

Net income (loss) before taxes

 

 

34,228

 

 

 

8,313

 

 

 

1,499

 

 

 

2,062

 

 

 

(10,250

)

 

 

35,852

 

Income tax (provision) benefit

 

 

(9,248

)

 

 

(2,246

)

 

 

(405

)

 

 

(557

)

 

 

2,769

 

 

 

(9,687

)

Net income (loss) after taxes

 

$

24,980

 

 

$

6,067

 

 

$

1,094

 

 

$

1,505

 

 

$

(7,481

)

 

$

26,165

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

23,141

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Total assets

 

 

1,072,356

 

 

 

521,931

 

 

 

103,643

 

 

 

31,258

 

 

 

382,943

 

 

 

2,112,131

 

Total funds borrowed

 

 

861,083

 

 

 

419,102

 

 

 

83,224

 

 

 

25,100

 

 

 

307,496

 

 

 

1,696,005

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.04

%

 

 

2.56

%

 

 

2.41

%

 

 

5.85

%

 

 

(4.24

)%

 

 

2.68

%

Return on average equity

 

 

27.27

 

 

 

13.87

 

 

 

12.20

 

 

 

30.73

 

 

 

(24.86

)

 

 

14.57

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

15.93

 

Interest yield

 

 

12.85

 

 

 

8.57

 

 

 

10.13

 

 

 

5.47

 

 

N/A

 

 

 

10.68

 

Net interest margin, gross

 

 

11.32

 

 

 

7.32

 

 

 

6.50

 

 

 

1.22

 

 

N/A

 

 

 

8.84

 

Net interest margin, net of allowance

 

 

11.71

 

 

 

7.45

 

 

 

6.60

 

 

 

3.61

 

 

N/A

 

 

 

9.15

 

Reserve coverage

 

 

3.44

 

 

 

1.75

 

 

 

2.81

 

 

 

66.61

 

 

N/A

 

 

 

3.41

 

Delinquency status(1)

 

 

0.36

 

 

 

0.07

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.25

 

Charge-off ratio(2)

 

 

0.60

 

 

 

0.43

 

 

 

3.70

 

 

 

(51.66

)

 

N/A

 

 

 

0.26

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

(*) Line item is not applicable to segments.
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

(10) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers, including Mr. Alvin Murstein and Mr. Andrew Murstein, for either a one-, two-, three-, four-, or 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, in addition to Mr. Andrew Murstein's employment agreement, as further described below, there is currently one agreement that renews after two years for additional one-year terms and one agreement with a three-year term that does not have a renewal period. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period.

On April 25, 2023, Mr. Alvin Murstein, the Company’s Chairman of the Board and Chief Executive Officer, notified the Company of his election not to renew the term of his employment pursuant to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Accordingly, the term of his employment as Chief Executive Officer of the Company will expire on May 28, 2027, unless sooner terminated in accordance with the provisions thereof.

In addition, on April 27, 2023, Mr. Andrew Murstein, the Company’s President and Chief Operating Officer, entered into an amendment to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Pursuant to such amendment, effective as of May 29, 2023, (i) the expiration of his then current term of employment shall be revised to end on May 28, 2027, and (ii) on May 29, 2024, and on each May 29 thereafter, such term of employment shall automatically renew each year for a three-year term unless, prior to the end of the first year of the then-applicable three-year term, either Mr. Murstein or the Company provides at least 30 days’ advance notice to the other party of its intention not to renew the then term of employment for a new three-year term, in each case unless such employment term is otherwise terminated pursuant to the terms thereof.

As of June 30, 2023, employment agreements expire at various dates through 2027, with future minimum payments under these agreements of approximately $11.8 million.

(B) OTHER COMMITMENTS

As of June 30, 2023, 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.
v3.23.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions

(11) RELATED PARTY TRANSACTIONS

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

Jeffrey Rudnick, the son of one of the Company’s directors, serves as the Company’s Senior Vice President at a salary of $250,950 per year, an increase from $239,000 per year in 2022. Mr. Rudnick received an annual cash bonus of $85,000 and $75,000 as well as an equity bonus in the amount of $50,000 and $45,019, during the six months ended June 30, 2023 and 2022.
v3.23.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2023
Investments, All Other Investments [Abstract]  
Fair Value of Financial Instruments

(12) FAIR VALUE OF FINANCIAL INSTRUMENTS

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

(a) Cash 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 approximates 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, considering the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At June 30, 2023 and December 31, 2022, 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.

 

June 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

124,554

 

 

$

124,554

 

 

$

105,598

 

 

$

105,598

 

Equity investments

 

 

11,404

 

 

 

11,404

 

 

 

10,293

 

 

 

10,293

 

Investment securities

 

 

53,692

 

 

 

53,692

 

 

 

48,492

 

 

 

48,492

 

Loans receivable

 

 

2,082,027

 

 

 

2,082,027

 

 

 

1,853,108

 

 

 

1,853,108

 

Accrued interest receivable (2)

 

 

13,345

 

 

 

13,345

 

 

 

12,613

 

 

 

12,613

 

Equity securities (3)

 

 

1,724

 

 

 

1,724

 

 

 

1,724

 

 

 

1,724

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,066,607

 

 

 

2,066,607

 

 

 

1,833,484

 

 

 

1,833,484

 

Accrued interest payable (2)

 

 

4,449

 

 

 

4,449

 

 

 

4,790

 

 

 

4,790

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2023 and $1.3 million as of December 31, 2022. See Note 13.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 13.
(3)
Included within other assets on the balance sheet.
v3.23.2
Fair Value of Assets and liabilities
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Assets and liabilities

(13) FAIR VALUE OF ASSETS AND LIABILITIES

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

In accordance with FASB ASC 820, the Company has categorized its assets and liabilities measured at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). 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 U.S. Government and agency securities, and certain other sovereign government obligations).

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

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

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

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

Equity investments were recorded at cost less impairment plus or minus observable price changes. The Company measures equity investments 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 recurring basis as of June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

53,692

 

 

 

—

 

 

 

53,692

 

Equity securities

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

1,724

 

Total (1)

 

$

1,724

 

 

$

54,942

 

 

$

—

 

 

$

56,666

 
(1)
Total unrealized losses of $0.9 million and $0.4 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2023 related to these assets.

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 other comprehensive loss for the year ended December 31, 2022 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 June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

11,404

 

 

$

11,404

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

16,145

 

 

 

16,145

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

16,803

 

 

 

16,803

 

Total

 

$

—

 

 

$

—

 

 

$

44,352

 

 

$

44,352

 

 

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

 

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 June 30, 2023 and December 31, 2022.

(Dollars in thousands except per share amounts)

 

Fair Value
at June 30, 2023

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

11,131

 

 

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

 

 

16,145

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 7.59%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

16,803

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$0.5 - $43.2
(1)
Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
(2)
Represents amount net of liquidation costs.
(3)
Relates to the recreation portfolio.

(Dollars in thousands except per share amounts)

 

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
(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.
v3.23.2
Medallion Bank Preferred Stock (Non-controlling Interest)
 6 Months Ended
Jun. 30, 2023
Medallion Bank Preferred Stock (Non-controlling Interest)

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

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46.0 million aggregate liquidation amount, yielding net proceeds of $42.5 million, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is based on the Secured Overnight Financing Rate, or SOFR, and is expected to be three-month Term 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.
v3.23.2
Subsequent Events
 6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to June 30, 2023 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there was one subsequent event that required disclosure.

On July 10, 2023, MCI accepted a commitment from the SBA for $20.0 million in debenture financing with a ten-year term. MCI can draw funds under the commitment, in whole or in part, until September 30, 2027. In connection with the commitment, MCI paid the SBA a leverage fee of $0.2 million, with the remaining $0.4 million of the fee to be paid pro rata as MCI draws under the commitment. Of the commitment, $4.8 million is currently drawable, and the balance of $15.2 million is drawable upon the infusion of $7.6 million of capital from either the capitalization of retained earnings or a capital infusion into MCI from the Company.
v3.23.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

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

Principles of Consolidation

Principles of Consolidation

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

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, 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 June 30, 2023, cash includes $1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years.

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

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

Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $11.4 million and $10.3 million at June 30, 2023 and December 31, 2022, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of June 30, 2023, a cumulative impairment of $2.5 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 both June 30, 2023 and December 31, 2022, the fair value of these securities were $1.7 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.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net losses recognized during the period on equity securities

 

$

(28

)

 

$

(63

)

 

$

—

 

 

$

(154

)

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

 

$

(28

)

 

$

(63

)

 

$

—

 

 

$

(154

)
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at both June 30, 2023 and December 31, 2022, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 2023 and 2022. 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable.
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 are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At June 30, 2023 and December 31, 2022, net loan origination costs were $40.4 million and $34.9 million. Net amortization to income for the three and six months ended June 30, 2023 was $2.4 million and $4.3 million and was $2.4 million and $4.5 million for the three and six months ended June 30, 2022.

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. Consumer loans are placed on nonaccrual when they become 90 days past due 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 $6.2 million at June 30, 2023, or 0.29% of the total loan portfolio, compared to $8.9 million, or 0.47%, at December 31, 2022. Beginning in the first quarter of 2023, the Company began charging off recreation loans at the point when borrowers filed for bankruptcy. This change resulted in approximately $2.5 million of loans being charged off in the six months ended June 30, 2023.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. 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 interest 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. Modified loans are considered impaired loans.

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 $15.6 million and $19.5 million at June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022.

Allowance for Loan Losses

Allowance for Credit Losses

On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquency and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)

 

December 31, 2022
Pre-Topic 326
Adoption

 

 

Effect of ASC 326
Adoption
(Transition Amounts)

 

 

January 1, 2023
Post-ASC 326
Adoption

 

Assets:

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

Recreation

 

$

41,966

 

 

$

10,037

 

 

$

52,003

 

Home improvement

 

 

11,340

 

 

 

1,518

 

 

 

12,858

 

Commercial

 

 

1,049

 

 

 

2,157

 

 

 

3,206

 

Medallion

 

 

9,490

 

 

 

—

 

 

 

9,490

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

Allowance for credit losses on loans

 

$

63,845

 

 

$

13,712

 

 

$

77,557

 

Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available.

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 June 30, 2023 and December 31, 2022, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2023 and December 31, 2022, the Company had intangible assets of $21.3 million and $22.0 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2023 and 2022 was $0.4 million and $0.7 million. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2022, concluding that there was no impairment of these assets.

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Brand-related intellectual property

 

$

16,227

 

 

$

16,775

 

Home improvement contractor relationships

 

 

5,088

 

 

 

5,260

 

Total intangible assets

 

$

21,315

 

 

$

22,035

 

 
Fixed Assets

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $0.1 million for the three and six months ended June 30, 2023 and 2022.
Deferred Costs

Deferred Costs

Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight-line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $0.8 million and $1.5 million for the three and six months ended June 30, 2023 and was $0.7 million and $1.3 million for the three and six months ended June 30, 2022. 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 $6.8 million and $7.0 million as of June 30, 2023 and December 31, 2022.
Income Taxes

Income Taxes

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

Earnings Per Share (EPS)

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

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income available to common stockholders

 

$

14,170

 

 

$

13,300

 

 

$

29,531

 

 

$

23,141

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

22,488,463

 

 

 

24,153,015

 

 

 

22,416,089

 

 

 

24,459,870

 

Effect of restricted stock grants

 

 

276,420

 

 

 

184,620

 

 

 

379,924

 

 

 

204,273

 

Effect of dilutive stock options

 

 

43,567

 

 

 

84,232

 

 

 

96,342

 

 

 

86,869

 

Effect of performance share units

 

 

45,477

 

 

 

—

 

 

 

22,739

 

 

 

—

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

22,853,927

 

 

 

24,421,867

 

 

 

22,915,094

 

 

 

24,751,012

 

Basic net income per share

 

$

0.63

 

 

$

0.55

 

 

$

1.32

 

 

$

0.95

 

Diluted net income per share

 

 

0.62

 

 

 

0.54

 

 

 

1.29

 

 

 

0.93

 

Potentially dilutive common shares excluded from the above calculations aggregated 644,478 and 832,895 shares as of June 30, 2023 and 2022.

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 six months ended June 30, 2023 and 2022, the Company issued 316,483 and 383,925 restricted shares of stock-based compensation awards, 296,444 and 0 performance stock units and no restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.2 million and $2.2 million, or $0.05 and $0.10 per share, for the three and six months ended June 30, 2023, and $0.9 million and $1.5 million, or $0.04 and $0.06 per diluted common share, for the three and six months ended June 30, 2022, of non-cash stock-based compensation expense related to the grants. As of June 30, 2023, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $5.9 million, which is expected to be recognized over the next 11 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 credit losses be maintained. As of June 30, 2023, the Bank’s Tier 1 leverage ratio was 16.0%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

June 30, 2023

 

 

December 31, 2022

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

267,700

 

 

$

242,049

 

Tier 1 capital

 

 

 

 

 

 

 

 

336,488

 

 

 

310,837

 

Total capital

 

 

 

 

 

 

 

 

363,589

 

 

 

334,913

 

Average assets

 

 

 

 

 

 

 

 

2,099,762

 

 

 

1,917,904

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,123,720

 

 

 

1,888,530

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.0

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

12.6

 

 

 

12.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

15.8

 

 

 

16.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.1

 

 

 

17.7

 
(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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $6.2 million and increased the Tier 1 capital ratio by 27 basis points.

In the table above, the minimum risk-based ratios as of June 30, 2023 and December 31, 2022 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 June 30, 2023 and December 31, 2022.
Recently Issued and Adopted Accounting Standards

Recently Issued and Adopted Accounting Standards

On January 1, 2023, the Company adopted ASC 326. Please refer to Allowance for Credit Losses, within this footnote, for the impact of adopting this standard.

In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures, or Topic 323: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The main objective of this new standard is to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. The Company is assessing the impact of the update 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.
v3.23.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Summary of Unrealized Portion Related to Equity Securities

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

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net losses recognized during the period on equity securities

 

$

(28

)

 

$

(63

)

 

$

—

 

 

$

(154

)

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

 

$

(28

)

 

$

(63

)

 

$

—

 

 

$

(154

)
Summary of finalized adoption related to the allowance for credit losses on loans The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)

 

December 31, 2022
Pre-Topic 326
Adoption

 

 

Effect of ASC 326
Adoption
(Transition Amounts)

 

 

January 1, 2023
Post-ASC 326
Adoption

 

Assets:

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

Recreation

 

$

41,966

 

 

$

10,037

 

 

$

52,003

 

Home improvement

 

 

11,340

 

 

 

1,518

 

 

 

12,858

 

Commercial

 

 

1,049

 

 

 

2,157

 

 

 

3,206

 

Medallion

 

 

9,490

 

 

 

—

 

 

 

9,490

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

Allowance for credit losses on loans

 

$

63,845

 

 

$

13,712

 

 

$

77,557

 
Schedule of Intangible Assets

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Brand-related intellectual property

 

$

16,227

 

 

$

16,775

 

Home improvement contractor relationships

 

 

5,088

 

 

 

5,260

 

Total intangible assets

 

$

21,315

 

 

$

22,035

 

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

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income available to common stockholders

 

$

14,170

 

 

$

13,300

 

 

$

29,531

 

 

$

23,141

 

Weighted average common shares outstanding applicable
   to basic EPS

 

 

22,488,463

 

 

 

24,153,015

 

 

 

22,416,089

 

 

 

24,459,870

 

Effect of restricted stock grants

 

 

276,420

 

 

 

184,620

 

 

 

379,924

 

 

 

204,273

 

Effect of dilutive stock options

 

 

43,567

 

 

 

84,232

 

 

 

96,342

 

 

 

86,869

 

Effect of performance share units

 

 

45,477

 

 

 

—

 

 

 

22,739

 

 

 

—

 

Adjusted weighted average common shares outstanding
   applicable to diluted EPS

 

 

22,853,927

 

 

 

24,421,867

 

 

 

22,915,094

 

 

 

24,751,012

 

Basic net income per share

 

$

0.63

 

 

$

0.55

 

 

$

1.32

 

 

$

0.95

 

Diluted net income per share

 

 

0.62

 

 

 

0.54

 

 

 

1.29

 

 

 

0.93

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

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

June 30, 2023

 

 

December 31, 2022

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

267,700

 

 

$

242,049

 

Tier 1 capital

 

 

 

 

 

 

 

 

336,488

 

 

 

310,837

 

Total capital

 

 

 

 

 

 

 

 

363,589

 

 

 

334,913

 

Average assets

 

 

 

 

 

 

 

 

2,099,762

 

 

 

1,917,904

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,123,720

 

 

 

1,888,530

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.0

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

12.6

 

 

 

12.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

15.8

 

 

 

16.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.1

 

 

 

17.7

 
(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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $6.2 million and increased the Tier 1 capital ratio by 27 basis points.
v3.23.2
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2023
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale maturity securities available for sale as of June 30, 2023 and December 31, 2022:

June 30, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

46,195

 

 

$

—

 

 

$

(5,187

)

 

$

41,008

 

State and municipalities

 

 

13,862

 

 

 

—

 

 

 

(1,178

)

 

 

12,684

 

Total

 

$

60,057

 

 

$

—

 

 

$

(6,365

)

 

$

53,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

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

The amortized cost and estimated market value of investment securities at June 30, 2023 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.

June 30, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

9,478

 

 

 

9,035

 

Due after five years through ten years

 

 

9,417

 

 

 

8,240

 

Due after ten years

 

 

41,162

 

 

 

36,417

 

Total

 

$

60,057

 

 

$

53,692

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

June 30, 2023
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(90

)

 

$

6,057

 

 

$

(5,097

)

 

$

34,951

 

State and municipalities

 

 

(87

)

 

 

4,957

 

 

 

(1,091

)

 

 

7,723

 

Total

 

$

(177

)

 

$

11,014

 

 

$

(6,188

)

 

$

42,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 U.S. 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

 

 

As of
v3.23.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Text Block [Abstract]  
Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2023 and December 31, 2022.

 

 

June 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,331,114

 

 

 

62

%

 

$

1,183,512

 

 

 

62

%

Home improvement

 

 

728,468

 

 

 

34

 

 

 

626,399

 

 

 

33

 

Commercial

 

 

92,637

 

 

 

4

 

 

 

92,899

 

 

 

5

 

Medallion

 

 

3,448

 

 

*

 

 

 

13,571

 

 

 

1

 

Strategic partnership

 

 

1,331

 

 

*

 

 

 

572

 

 

*

 

Total gross loans

 

 

2,156,998

 

 

 

100

%

 

 

1,916,953

 

 

 

100

%

Allowance for credit losses

 

 

(74,971

)

 

 

 

 

 

(63,845

)

 

 

 

Total net loans

 

$

2,082,027

 

 

 

 

 

$

1,853,108

 

 

 

 

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

The following tables show the activity of the gross loans for the three and six months ended June 30, 2023 and 2022.

Three Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2023

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

Loan originations

 

 

190,007

 

 

 

117,035

 

 

 

4,750

 

 

 

1,300

 

 

 

33,174

 

 

 

346,266

 

Principal payments, sales, maturities, and recoveries

 

 

(63,463

)

 

 

(55,350

)

 

 

(6,922

)

 

 

(1,531

)

 

 

(33,613

)

 

 

(160,879

)

Charge-offs

 

 

(9,166

)

 

 

(2,575

)

 

 

(900

)

 

 

(221

)

 

 

—

 

 

 

(12,862

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,991

)

 

 

—

 

 

 

—

 

 

 

(159

)

 

 

—

 

 

 

(4,150

)

Amortization of origination costs

 

 

(3,159

)

 

 

665

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,494

)

FASB origination costs, net

 

 

7,506

 

 

 

(949

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,557

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

380

 

 

 

—

 

 

 

—

 

 

 

380

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

Loan originations

 

 

291,688

 

 

 

212,016

 

 

 

7,750

 

 

 

1,923

 

 

 

60,180

 

 

 

573,557

 

Principal payments, sales, maturities, and recoveries

 

 

(119,680

)

 

 

(105,205

)

 

 

(7,756

)

 

 

(5,926

)

 

 

(59,421

)

 

 

(297,988

)

Charge-offs

 

 

(21,756

)

 

 

(4,489

)

 

 

(900

)

 

 

(3,814

)

 

 

—

 

 

 

(30,959

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,348

)

 

 

—

 

 

 

—

 

 

 

(2,306

)

 

 

—

 

 

 

(10,654

)

Amortization of origination costs

 

 

(5,918

)

 

 

1,251

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,667

)

FASB origination costs, net

 

 

11,616

 

 

 

(1,504

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,112

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

644

 

 

 

—

 

 

 

—

 

 

 

644

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2022

 

$

1,004,091

 

 

$

473,408

 

 

$

77,867

 

 

$

13,849

 

 

$

226

 

 

$

1,569,441

 

Loan originations

 

 

170,207

 

 

 

105,172

 

 

 

19,272

 

 

 

472

 

 

 

9,830

 

 

 

304,953

 

Principal payments, sales, maturities, and recoveries

 

 

(73,114

)

 

 

(51,006

)

 

 

(386

)

 

 

(30

)

 

 

(9,463

)

 

 

(133,999

)

Charge-offs

 

 

(5,074

)

 

 

(1,108

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,182

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,618

)

 

 

—

 

 

 

—

 

 

 

(139

)

 

 

—

 

 

 

(2,757

)

Amortization of origination costs

 

 

(2,931

)

 

 

380

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,551

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

6,169

 

 

 

(478

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,691

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

175

 

 

 

—

 

 

 

—

 

 

 

175

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

284,613

 

 

 

194,992

 

 

 

23,672

 

 

 

564

 

 

 

14,839

 

 

 

518,680

 

Principal payments, sales, maturities, and recoveries

 

 

(138,230

)

 

 

(103,170

)

 

 

(2,203

)

 

 

(115

)

 

 

(14,336

)

 

 

(258,054

)

Charge-offs

 

 

(10,141

)

 

 

(2,168

)

 

 

(1,584

)

 

 

(75

)

 

 

—

 

 

 

(13,968

)

Transfer to loan collateral in process of foreclosure, net

 

 

(5,529

)

 

 

—

 

 

 

—

 

 

 

(268

)

 

 

—

 

 

 

(5,797

)

Amortization of origination costs

 

 

(5,370

)

 

 

700

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,670

)

Amortization of loan premium

 

 

(120

)

 

 

(180

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(300

)

FASB origination costs, net

 

 

10,127

 

 

 

(668

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,459

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

347

 

 

 

—

 

 

 

—

 

 

 

347

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 
Summary of Activity in Allowance for Credit Losses

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2023 and 2022.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Allowance for credit losses – beginning balance (1)

 

$

70,280

 

 

$

50,686

 

 

$

63,845

 

 

$

50,166

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

—

 

 

 

13,712

 

 

 

—

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(9,166

)

 

 

(5,074

)

 

 

(21,756

)

 

 

(10,141

)

Home improvement

 

 

(2,575

)

 

 

(1,108

)

 

 

(4,489

)

 

 

(2,168

)

Commercial

 

 

(900

)

 

 

—

 

 

 

(900

)

 

 

(1,584

)

Medallion

 

 

(221

)

 

 

—

 

 

 

(3,814

)

 

 

(75

)

Total charge-offs

 

 

(12,862

)

 

 

(6,182

)

 

 

(30,959

)

 

 

(13,968

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

3,282

 

 

 

3,615

 

 

 

6,053

 

 

 

7,125

 

Home improvement

 

 

627

 

 

 

585

 

 

 

1,259

 

 

 

1,144

 

Commercial

 

 

—

 

 

 

13

 

 

 

10

 

 

 

47

 

Medallion

 

 

5,168

 

 

 

2,676

 

 

 

8,537

 

 

 

3,639

 

Total recoveries

 

 

9,077

 

 

 

6,889

 

 

 

15,859

 

 

 

11,955

 

Net recoveries (charge-offs) (2)

 

 

(3,785

)

 

 

707

 

 

 

(15,100

)

 

 

(2,013

)

Provision (benefit) for credit losses

 

 

8,476

 

 

 

7,759

 

 

 

12,514

 

 

 

10,999

 

Allowance for credit losses – ending balance (3)

 

$

74,971

 

 

$

59,152

 

 

$

74,971

 

 

$

59,152

 
(1)
Represents allowance prior to the adoption of ASU 2016-13.
(2)
As of June 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $231.4 million, some of which may represent collection opportunities for the Company.
(3)
As of June 30, 2023 and June 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
Summary of gross charge offs

The following table sets forth the gross charge-offs for the three months ended June 30, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

3,568

 

 

$

2,344

 

 

$

785

 

 

$

918

 

 

$

1,507

 

 

$

9,166

 

Home improvement

 

 

39

 

 

 

1,548

 

 

 

473

 

 

 

158

 

 

 

91

 

 

 

266

 

 

 

2,575

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

221

 

 

 

221

 

Total

 

$

83

 

 

$

5,116

 

 

$

2,817

 

 

$

943

 

 

$

1,909

 

 

$

1,994

 

 

$

12,862

 

The following table sets forth the gross charge-offs for the six months ended June 30, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

7,176

 

 

$

5,414

 

 

$

2,456

 

 

$

2,472

 

 

$

4,194

 

 

$

21,756

 

Home improvement

 

 

39

 

 

 

2,452

 

 

 

1,101

 

 

 

301

 

 

 

222

 

 

 

374

 

 

 

4,489

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,814

 

 

 

3,814

 

Total

 

$

83

 

 

$

9,628

 

 

$

6,515

 

 

$

2,757

 

 

$

3,594

 

 

$

8,382

 

 

$

30,959

 
Summary of Allowance for Credit Losses by Type

The following tables set forth the allowance for credit losses by type as of June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

54,187

 

 

 

72

%

 

 

4.07

%

 

 

335.63

%

Home improvement

 

 

16,447

 

 

 

22

 

 

 

2.26

 

 

 

101.87

 

Commercial

 

 

2,518

 

 

 

3

 

 

 

2.72

 

 

 

15.60

 

Medallion

 

 

1,819

 

 

 

3

 

 

 

52.76

 

 

 

11.27

 

Total

 

$

74,971

 

 

 

100

%

 

 

3.48

%

 

 

464.36

%

 

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

%
Summary of Total Nonaccrual Loans and Foregone Interest

The following table presents total nonaccrual loans and foregone interest. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Total nonaccrual loans

 

$

16,145

 

 

$

32,133

 

Interest foregone quarter to date

 

 

237

 

 

 

231

 

Amount of foregone interest applied to principal in the quarter

 

 

63

 

 

 

94

 

Interest foregone year to date

 

 

507

 

 

 

1,267

 

Amount of foregone interest applied to principal for the year

 

 

133

 

 

 

375

 

Interest foregone life-to-date

 

 

1,655

 

 

 

2,419

 

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

 

 

789

 

 

 

1,204

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

0.7

%

 

 

1.7

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

464.4

%

 

 

198.7

%

 
Summary of Performance Status of Loan

The following tables present the performance status of loans as of June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,325,745

 

 

$

5,369

 

 

$

1,331,114

 

 

 

0.40

%

Home improvement

 

 

727,332

 

 

 

1,136

 

 

 

728,468

 

 

 

0.16

 

Commercial

 

 

86,445

 

 

 

6,192

 

 

 

92,637

 

 

 

6.68

 

Medallion

 

 

—

 

 

 

3,448

 

 

 

3,448

 

 

 

100.00

 

Strategic partnership

 

 

1,331

 

 

 

—

 

 

 

1,331

 

 

 

—

 

Total

 

$

2,140,853

 

 

$

16,145

 

 

$

2,156,998

 

 

 

0.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%
Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of June 30, 2023 and December 31, 2022, all of which had an allowance recorded against the principal balance.

 

June 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,369

 

 

$

5,369

 

 

$

219

 

 

$

9,666

 

 

$

9,666

 

 

$

343

 

Home improvement

 

 

1,136

 

 

 

1,136

 

 

 

26

 

 

 

579

 

 

 

579

 

 

 

10

 

Commercial

 

 

6,192

 

 

 

6,301

 

 

 

472

 

 

 

8,734

 

 

 

8,823

 

 

 

963

 

Medallion

 

 

3,448

 

 

 

4,128

 

 

 

1,819

 

 

 

13,571

 

 

 

14,686

 

 

 

9,490

 

Total nonperforming loans with an allowance

 

$

16,145

 

 

$

16,934

 

 

$

2,536

 

 

$

32,550

 

 

$

33,754

 

 

$

10,806

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,230

 

 

$

7

 

 

$

5,197

 

 

$

119

 

Home improvement

 

 

1,138

 

 

 

1

 

 

 

396

 

 

 

—

 

Commercial

 

 

5,652

 

 

 

—

 

 

 

13,577

 

 

 

—

 

Medallion

 

 

4,686

 

 

 

—

 

 

 

16,095

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

16,706

 

 

$

8

 

 

$

35,265

 

 

$

119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

5,208

 

 

$

9

 

 

$

5,265

 

 

$

223

 

Home improvement

 

 

1,129

 

 

 

1

 

 

 

388

 

 

 

—

 

Commercial

 

 

5,644

 

 

 

—

 

 

 

13,561

 

 

 

—

 

Medallion

 

 

4,908

 

 

 

—

 

 

 

16,798

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

16,889

 

 

$

10

 

 

$

36,012

 

 

$

223

 

 
Summary of Aging of Loans

The following tables show the aging of all loans as of June 30, 2023 and December 31, 2022.

June 30, 2023

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

28,438

 

 

$

9,464

 

 

$

4,978

 

 

$

42,880

 

 

$

1,245,120

 

 

$

1,288,000

 

 

$

—

 

Home improvement

 

 

2,505

 

 

 

1,657

 

 

 

1,138

 

 

 

5,300

 

 

 

725,899

 

 

 

731,199

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

93,894

 

 

 

93,968

 

 

 

—

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,448

 

 

 

3,448

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,331

 

 

 

1,331

 

 

 

—

 

Total

 

$

30,943

 

 

$

11,121

 

 

$

6,190

 

 

$

48,254

 

 

$

2,069,692

 

 

$

2,117,946

 

 

$

—

 
(1)
Excludes $40.4 million of capitalized loan origination costs.

 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.
Summary of TDRs

The following table shows the TDRs that the Company entered into during the three and six months ended June 30, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended June 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

12

 

 

$

147

 

 

$

147

 

Medallion loans

 

 

—

 

 

 

—

 

 

 

—

 

Six months ended June 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

22

 

 

$

276

 

 

$

276

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

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

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three and six months ended June 30, 2023 and 2022.

Three Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2023

 

$

1,461

 

 

$

19,006

 

 

$

20,467

 

Transfer from loans, net

 

 

3,991

 

 

 

159

 

 

 

4,150

 

Sales

 

 

(2,583

)

 

 

(553

)

 

 

(3,136

)

Cash payments received

 

 

(128

)

 

 

(2,517

)

 

 

(2,645

)

Collateral valuation adjustments

 

 

(2,012

)

 

 

(21

)

 

 

(2,033

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 

Transfer from loans, net

 

 

8,348

 

 

 

2,306

 

 

 

10,654

 

Sales

 

 

(4,778

)

 

 

(568

)

 

 

(5,346

)

Cash payments received

 

 

(128

)

 

 

(5,834

)

 

 

(5,962

)

Collateral valuation adjustments

 

 

(4,089

)

 

 

(273

)

 

 

(4,362

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2022

 

$

1,369

 

 

$

32,465

 

 

$

33,834

 

Transfer from loans, net

 

 

2,618

 

 

 

139

 

 

 

2,757

 

Sales

 

 

(2,146

)

 

 

(1,999

)

 

 

(4,145

)

Cash payments received

 

 

—

 

 

 

(4,381

)

 

 

(4,381

)

Collateral valuation adjustments

 

 

(963

)

 

 

(128

)

 

 

(1,091

)

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022
(Dollars in thousands)

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

5,529

 

 

 

268

 

 

 

5,797

 

Sales

 

 

(4,398

)

 

 

(2,115

)

 

 

(6,513

)

Cash payments received

 

 

—

 

 

 

(7,253

)

 

 

(7,253

)

Collateral valuation adjustments

 

 

(1,973

)

 

 

(514

)

 

 

(2,487

)

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 
v3.23.2
Funds Borrowed (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Outstanding Balances of Funds Borrowed

The following table presents outstanding balances of funds borrowed.

 

Payments Due for the Twelve Months Ending June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

June 30, 2023 (1)

 

 

December 31, 2022(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

678,737

 

 

$

563,203

 

 

$

281,895

 

 

$

198,331

 

 

$

93,777

 

 

$

—

 

 

$

1,815,943

 

 

$

1,609,672

 

 

 

2.70

%

Federal reserve discount window

 

 

28,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,000

 

 

 

—

 

 

 

5.25

 

Privately placed notes

 

 

36,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

—

 

 

 

121,000

 

 

 

121,000

 

 

 

7.66

 

SBA debentures and borrowings

 

 

3,880

 

 

 

12,500

 

 

 

15,500

 

 

 

4,500

 

 

 

—

 

 

 

30,500

 

 

 

66,880

 

 

 

68,512

 

 

 

3.13

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

7.62

 

Total

 

$

746,617

 

 

$

575,703

 

 

$

328,645

 

 

$

202,831

 

 

$

147,527

 

 

$

63,500

 

 

$

2,064,823

 

 

$

1,832,184

 

 

 

3.12

%
(1)
Excludes deferred financing costs of $6.8 million and $7.0 million as of June 30, 2023 and December 31, 2022.
(2)
Weighted average contractual rate as of June 30, 2023.
(3)
Balance excludes $1.5 million and $1.3 million of strategic partner reserve deposits as of June 30, 2023 and December 31, 2022.
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2023.

(Dollars in thousands)

 

June 30, 2023

 

Three months or less

 

$

162,219

 

Over three months through six months

 

 

186,757

 

Over six months through one year

 

 

329,761

 

Over one year

 

 

1,138,754

 

Total deposits

 

$

1,817,491

 
v3.23.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2023 and 2022.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease costs

 

$

597

 

 

$

590

 

 

$

1,195

 

 

$

1,179

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

603

 

 

 

435

 

 

 

1,226

 

 

 

1,080

 

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

 

 

(56

)

 

 

(40

)

 

 

(111

)

 

 

(85

)
Schedule of Breakout of Operating leases

The following table presents the breakout of the operating leases as of June 30, 2023 and December 31, 2022.

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Operating lease right-of-use assets

 

$

9,001

 

 

$

9,723

 

Other current liabilities

 

 

2,188

 

 

 

2,239

 

Operating lease liabilities

 

 

7,629

 

 

 

8,408

 

Total operating lease liabilities

 

 

9,817

 

 

 

10,647

 

Weighted average remaining lease term

 

5.1 years

 

 

5.5 years

 

Weighted average discount rate

 

 

5.59

%

 

 

5.66

%

 
Schedule of Maturities of the Lease Liabilities

At June 30, 2023, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2023

 

$

1,250

 

2024

 

 

2,508

 

2025

 

 

2,492

 

2026

 

 

2,440

 

2027

 

 

1,212

 

Thereafter

 

 

1,290

 

Total lease payments

 

 

11,192

 

Less imputed interest

 

 

1,375

 

Total operating lease liabilities

 

$

9,817

 
v3.23.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022.

(Dollars in thousands)

 

June 30, 2023

 

 

December 31, 2022

 

Goodwill and other intangibles

 

$

(43,215

)

 

$

(43,397

)

Provision for credit losses

 

 

10,913

 

 

 

9,945

 

Net operating loss carryforwards (1)

 

 

3,730

 

 

 

3,730

 

Accrued expenses, compensation, and other assets

 

 

3,601

 

 

 

3,819

 

Unrealized gains on other investments

 

 

426

 

 

 

1,445

 

Total deferred tax liability

 

 

(24,545

)

 

 

(24,458

)

Valuation allowance

 

 

(2,295

)

 

 

(2,295

)

Deferred tax liability, net

 

$

(26,840

)

 

$

(26,753

)
(1)
As of June 30, 2023, 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 as of June 30, 2023.
Summary of Components of Tax Provision

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2023 and 2022 as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

3,873

 

 

$

984

 

 

$

6,456

 

 

$

1,488

 

State

 

 

1,175

 

 

 

447

 

 

 

1,964

 

 

 

769

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

204

 

 

 

2,378

 

 

 

2,450

 

 

 

5,598

 

State

 

 

220

 

 

 

1,047

 

 

 

984

 

 

 

1,832

 

Net provision for income taxes

 

$

5,472

 

 

$

4,856

 

 

$

11,854

 

 

$

9,687

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

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2023 and 2022.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Statutory Federal income tax provision at 21%

 

$

4,442

 

 

$

4,130

 

 

$

9,326

 

 

$

7,529

 

State and local income taxes, net of federal income tax

 

 

869

 

 

 

808

 

 

 

1,824

 

 

 

1,473

 

Non-deductible expenses

 

 

19

 

 

 

362

 

 

 

1,076

 

 

 

1,075

 

Other

 

 

142

 

 

 

(444

)

 

 

(372

)

 

 

(390

)

Total income tax provision

 

$

5,472

 

 

$

4,856

 

 

$

11,854

 

 

$

9,687

 
v3.23.2
Stock Options and Restricted Stock (Tables)
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the 2023 first and second quarters and the 2022 full year.

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2021

 

 

1,111,687

 

 

$

2.14-12.55

 

 

$

6.41

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(26,093

)

 

 

4.89 - 12.55

 

 

 

7.08

 

Exercised

 

 

(23,745

)

 

 

4.89 - 7.25

 

 

 

6.51

 

Outstanding at December 31, 2022

 

 

1,061,849

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(25,194

)

 

 

4.89 - 9.38

 

 

 

6.97

 

Exercised (1)

 

 

(44,583

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2023

 

 

992,072

 

 

$

2.14 - 9.38

 

 

$

6.53

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(7,803

)

 

 

4.89 - 7.25

 

 

 

6.31

 

Exercised (1)

 

 

(283

)

 

 

 

4.89

 

 

 

4.89

 

Outstanding at June 30, 2023 (2)

 

 

983,986

 

 

$

2.14 - 9.38

 

 

$

6.50

 

Options vested at:

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

548,426

 

 

$

2.14 - 9.38

 

 

$

6.51

 

June 30, 2023

 

 

721,726

 

 

$

2.14 - 9.38

 

 

$

6.50

 
(1)
The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2023 and was $0.1 million for the year ended December 31, 2022.
(2)
The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $1.4 million for outstanding options and $1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023.
Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans described above for the 2023 first and second quarter.

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2022

 

 

513,423

 

 

$

4.89 - 7.25

 

 

$

6.52

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(2,951

)

 

 

4.89 - 7.25

 

 

 

5.53

 

Vested

 

 

(248,212

)

 

 

4.89 - 7.25

 

 

 

6.55

 

Outstanding at March 31, 2023

 

 

262,260

 

 

$

4.89 - 7.25

 

 

$

6.49

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2023

 

 

262,260

 

 

$

4.89 - 7.25

 

 

$

6.49

 
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the 2023 first and second quarter and the 2022 full year.

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2021

 

 

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

 

 

857,288

 

 

$

4.89 - 7.25

 

 

$

7.27

 

Granted

 

 

304,749

 

 

 

 

8.08

 

 

 

8.08

 

Cancelled

 

 

(9,843

)

 

 

4.89 - 8.40

 

 

 

7.18

 

Vested

 

 

(245,990

)

 

 

4.89 - 7.68

 

 

 

7.12

 

Outstanding at March 31, 2023

 

 

906,204

 

 

$

4.89 - 8.40

 

 

$

7.58

 

Granted

 

 

11,734

 

 

 

 

7.67

 

 

 

7.67

 

Cancelled

 

 

(204

)

 

 

 

6.86

 

 

 

6.86

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2023 (2)

 

 

917,734

 

 

$

4.89 - 8.40

 

 

$

7.59

 
(1)
The aggregate fair value of the restricted stock vested was $2.1 million for the six months ended June 30, 2023 and was $1.0 million for the year ended December 31, 2022.
(2)
The aggregate fair value of the restricted stock was $7.3 million as of June 30, 2023. The remaining vesting period was 2.6 years at June 30, 2023.
v3.23.2
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Schedule of Segment Data

The following table presents segment data as of and for the three and six months ended June 30, 2023.

Three Months Ended June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

41,109

 

 

$

15,292

 

 

$

2,814

 

 

$

787

 

 

$

1,724

 

 

$

61,726

 

Total interest expense

 

 

7,580

 

 

 

4,194

 

 

 

852

 

 

 

46

 

 

 

2,363

 

 

 

15,035

 

Net interest income (loss)

 

 

33,529

 

 

 

11,098

 

 

 

1,962

 

 

 

741

 

 

 

(639

)

 

 

46,691

 

Provision (benefit) for credit losses

 

 

10,135

 

 

 

3,739

 

 

 

(113

)

 

 

(5,311

)

 

 

26

 

 

 

8,476

 

Net interest income (loss) after loss provision

 

 

23,394

 

 

 

7,359

 

 

 

2,075

 

 

 

6,052

 

 

 

(665

)

 

 

38,215

 

Other income (expense), net

 

 

(8,444

)

 

 

(4,386

)

 

 

(804

)

 

 

561

 

 

 

(3,988

)

 

 

(17,061

)

Net income (loss) before taxes

 

 

14,950

 

 

 

2,973

 

 

 

1,271

 

 

 

6,613

 

 

 

(4,653

)

 

 

21,154

 

Income tax (provision) benefit

 

 

(3,867

)

 

 

(769

)

 

 

(329

)

 

 

(1,713

)

 

 

1,206

 

 

 

(5,472

)

Net income (loss) after taxes

 

$

11,083

 

 

$

2,204

 

 

$

942

 

 

$

4,900

 

 

$

(3,447

)

 

$

15,682

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14,170

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.59

%

 

 

1.28

%

 

 

3.76

%

 

 

100.63

%

 

 

(3.69

)%

 

 

2.60

%

Return on average equity

 

 

22.94

 

 

 

8.19

 

 

 

23.97

 

 

 

641.63

 

 

 

(22.83

)

 

 

16.52

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

18.24

 

Interest yield

 

 

13.03

 

 

 

8.79

 

 

 

11.87

 

 

 

83.55

 

 

N/A

 

 

 

11.59

 

Net interest margin, gross

 

 

10.63

 

 

 

6.38

 

 

 

8.28

 

 

 

78.67

 

 

N/A

 

 

 

8.48

 

Net interest margin, net of allowance

 

 

11.08

 

 

 

6.53

 

 

 

8.54

 

 

 

166.23

 

 

N/A

 

 

 

8.77

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

N/A

 

 

 

3.48

 

Delinquency status (1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.29

 

Charge-off ratio (2)

 

 

1.86

 

 

 

1.12

 

 

 

3.80

 

 

 

(525.21

)

 

N/A

 

 

 

0.74

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

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

79,008

 

 

$

28,941

 

 

$

5,515

 

 

$

1,097

 

 

$

3,007

 

 

$

117,568

 

Total interest expense

 

 

13,484

 

 

 

7,473

 

 

 

1,661

 

 

 

113

 

 

 

4,544

 

 

 

27,275

 

Net interest income (loss)

 

 

65,524

 

 

 

21,468

 

 

 

3,854

 

 

 

984

 

 

 

(1,537

)

 

 

90,293

 

Provision (benefit) for credit losses

 

 

17,886

 

 

 

6,820

 

 

 

214

 

 

 

(12,395

)

 

 

(11

)

 

 

12,514

 

Net interest income (loss) after loss provision

 

 

47,638

 

 

 

14,648

 

 

 

3,640

 

 

 

13,379

 

 

 

(1,526

)

 

 

77,779

 

Other income (expense), net

 

 

(16,247

)

 

 

(8,379

)

 

 

(953

)

 

 

153

 

 

 

(7,944

)

 

 

(33,370

)

Net income (loss) before taxes

 

 

31,391

 

 

 

6,269

 

 

 

2,687

 

 

 

13,532

 

 

 

(9,470

)

 

 

44,409

 

Income tax (provision) benefit

 

 

(8,380

)

 

 

(1,674

)

 

 

(718

)

 

 

(3,612

)

 

 

2,530

 

 

 

(11,854

)

Net income (loss) after taxes

 

$

23,011

 

 

$

4,595

 

 

$

1,969

 

 

$

9,920

 

 

$

(6,940

)

 

$

32,555

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

29,531

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

1.39

%

 

 

3.94

%

 

 

94.20

%

 

 

(3.70

)%

 

 

2.79

%

Return on average equity

 

 

24.13

 

 

 

8.76

 

 

 

24.74

 

 

 

590.25

 

 

 

(23.24

)

 

 

17.49

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

19.45

 

Interest yield

 

 

12.93

 

 

 

8.66

 

 

 

11.71

 

 

 

28.80

 

 

N/A

 

 

 

11.01

 

Net interest margin, gross

 

 

10.72

 

 

 

6.43

 

 

 

8.18

 

 

 

25.84

 

 

N/A

 

 

 

8.45

 

Net interest margin, net of allowance

 

 

11.18

 

 

 

6.57

 

 

 

8.43

 

 

 

73.52

 

 

N/A

 

 

 

8.75

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

N/A

 

 

 

3.48

 

Delinquency status(1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.29

 

Charge-off ratio(2)

 

 

2.57

 

 

 

0.97

 

 

 

1.89

 

 

 

(124.01

)

 

N/A

 

 

 

1.51

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

(*) Line item is not applicable to segments.

 

The following table presents segment data as of and for the three and six months ended June 30, 2022.

Three Months Ended June 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

33,514

 

 

$

10,587

 

 

$

2,278

 

 

$

231

 

 

$

501

 

 

$

47,111

 

Total interest expense

 

 

4,096

 

 

 

1,626

 

 

 

785

 

 

 

140

 

 

 

1,583

 

 

 

8,230

 

Net interest income (loss)

 

 

29,418

 

 

 

8,961

 

 

 

1,493

 

 

 

91

 

 

 

(1,082

)

 

 

38,881

 

Provision (benefit) for credit losses

 

 

6,674

 

 

 

1,697

 

 

 

1,879

 

 

 

(2,272

)

 

 

(219

)

 

 

7,759

 

Net interest income (loss) after loss provision

 

 

22,744

 

 

 

7,264

 

 

 

(386

)

 

 

2,363

 

 

 

(863

)

 

 

31,122

 

Other expense, net

 

 

(7,551

)

 

 

(3,210

)

 

 

3,263

 

 

 

(357

)

 

 

(3,600

)

 

 

(11,455

)

Net income (loss) before taxes

 

 

15,193

 

 

 

4,054

 

 

 

2,877

 

 

 

2,006

 

 

 

(4,463

)

 

 

19,667

 

Income tax (provision) benefit

 

 

(3,567

)

 

 

(975

)

 

 

(816

)

 

 

(540

)

 

 

1,042

 

 

 

(4,856

)

Net income (loss) after taxes

 

$

11,626

 

 

$

3,079

 

 

$

2,061

 

 

$

1,466

 

 

$

(3,421

)

 

$

14,811

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,511

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

13,300

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Total assets

 

 

1,072,356

 

 

 

521,931

 

 

 

103,643

 

 

 

31,258

 

 

 

382,943

 

 

 

2,112,131

 

Total funds borrowed

 

 

861,083

 

 

 

419,102

 

 

 

83,224

 

 

 

25,100

 

 

 

307,496

 

 

 

1,696,005

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.53

%

 

 

2.49

%

 

 

8.70

%

 

 

17.04

%

 

 

(3.56

)%

 

 

2.93

%

Return on average equity

 

 

25.52

 

 

 

14.03

 

 

 

49.03

 

 

 

95.46

 

 

 

(20.01

)

 

 

16.33

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

18.11

 

Interest yield

 

 

12.83

 

 

 

8.51

 

 

 

10.41

 

 

 

6.66

 

 

N/A

 

 

 

10.64

 

Net interest margin, gross

 

 

11.26

 

 

 

7.20

 

 

 

6.82

 

 

 

2.62

 

 

N/A

 

 

 

8.78

 

Net interest margin, net of allowance

 

 

11.65

 

 

 

7.33

 

 

 

6.93

 

 

 

7.88

 

 

N/A

 

 

 

9.07

 

Reserve coverage

 

 

3.44

 

 

 

1.75

 

 

 

2.81

 

 

 

66.61

 

 

N/A

 

 

 

3.41

 

Delinquency status (1)

 

 

0.36

 

 

 

0.07

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.25

 

Charge-off ratio (2)

 

 

0.56

 

 

 

0.42

 

 

 

(0.06

)

 

 

(77.17

)

 

N/A

 

 

 

(0.17

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

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

64,650

 

 

$

20,288

 

 

$

4,208

 

 

$

377

 

 

$

891

 

 

$

90,414

 

Total interest expense

 

 

7,697

 

 

 

2,967

 

 

 

1,507

 

 

 

293

 

 

 

3,141

 

 

 

15,605

 

Net interest income (loss)

 

 

56,953

 

 

 

17,321

 

 

 

2,701

 

 

 

84

 

 

 

(2,250

)

 

 

74,809

 

Provision (benefit) for credit losses

 

 

8,354

 

 

 

2,902

 

 

 

3,134

 

 

 

(3,544

)

 

 

153

 

 

 

10,999

 

Net interest income (loss) after loss provision

 

 

48,599

 

 

 

14,419

 

 

 

(433

)

 

 

3,628

 

 

 

(2,403

)

 

 

63,810

 

Other expense, net

 

 

(14,371

)

 

 

(6,106

)

 

 

1,932

 

 

 

(1,566

)

 

 

(7,847

)

 

 

(27,958

)

Net income (loss) before taxes

 

 

34,228

 

 

 

8,313

 

 

 

1,499

 

 

 

2,062

 

 

 

(10,250

)

 

 

35,852

 

Income tax (provision) benefit

 

 

(9,248

)

 

 

(2,246

)

 

 

(405

)

 

 

(557

)

 

 

2,769

 

 

 

(9,687

)

Net income (loss) after taxes

 

$

24,980

 

 

$

6,067

 

 

$

1,094

 

 

$

1,505

 

 

$

(7,481

)

 

$

26,165

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

23,141

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Total assets

 

 

1,072,356

 

 

 

521,931

 

 

 

103,643

 

 

 

31,258

 

 

 

382,943

 

 

 

2,112,131

 

Total funds borrowed

 

 

861,083

 

 

 

419,102

 

 

 

83,224

 

 

 

25,100

 

 

 

307,496

 

 

 

1,696,005

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

5.04

%

 

 

2.56

%

 

 

2.41

%

 

 

5.85

%

 

 

(4.24

)%

 

 

2.68

%

Return on average equity

 

 

27.27

 

 

 

13.87

 

 

 

12.20

 

 

 

30.73

 

 

 

(24.86

)

 

 

14.57

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

15.93

 

Interest yield

 

 

12.85

 

 

 

8.57

 

 

 

10.13

 

 

 

5.47

 

 

N/A

 

 

 

10.68

 

Net interest margin, gross

 

 

11.32

 

 

 

7.32

 

 

 

6.50

 

 

 

1.22

 

 

N/A

 

 

 

8.84

 

Net interest margin, net of allowance

 

 

11.71

 

 

 

7.45

 

 

 

6.60

 

 

 

3.61

 

 

N/A

 

 

 

9.15

 

Reserve coverage

 

 

3.44

 

 

 

1.75

 

 

 

2.81

 

 

 

66.61

 

 

N/A

 

 

 

3.41

 

Delinquency status(1)

 

 

0.36

 

 

 

0.07

 

 

 

0.08

 

 

 

—

 

 

N/A

 

 

 

0.25

 

Charge-off ratio(2)

 

 

0.60

 

 

 

0.43

 

 

 

3.70

 

 

 

(51.66

)

 

N/A

 

 

 

0.26

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

(*) Line item is not applicable to segments.
v3.23.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
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.

 

June 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

124,554

 

 

$

124,554

 

 

$

105,598

 

 

$

105,598

 

Equity investments

 

 

11,404

 

 

 

11,404

 

 

 

10,293

 

 

 

10,293

 

Investment securities

 

 

53,692

 

 

 

53,692

 

 

 

48,492

 

 

 

48,492

 

Loans receivable

 

 

2,082,027

 

 

 

2,082,027

 

 

 

1,853,108

 

 

 

1,853,108

 

Accrued interest receivable (2)

 

 

13,345

 

 

 

13,345

 

 

 

12,613

 

 

 

12,613

 

Equity securities (3)

 

 

1,724

 

 

 

1,724

 

 

 

1,724

 

 

 

1,724

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,066,607

 

 

 

2,066,607

 

 

 

1,833,484

 

 

 

1,833,484

 

Accrued interest payable (2)

 

 

4,449

 

 

 

4,449

 

 

 

4,790

 

 

 

4,790

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2023 and $1.3 million as of December 31, 2022. See Note 13.
(2)
Categorized as level 3 within the fair value hierarchy. See Note 13.
(3)
Included within other assets on the balance sheet.
v3.23.2
Fair Value of Assets and liabilities (Tables)
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Available for sale investment securities

 

 

—

 

 

 

53,692

 

 

 

—

 

 

 

53,692

 

Equity securities

 

 

1,724

 

 

 

—

 

 

 

—

 

 

 

1,724

 

Total (1)

 

$

1,724

 

 

$

54,942

 

 

$

—

 

 

$

56,666

 
(1)
Total unrealized losses of $0.9 million and $0.4 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2023 related to these assets.

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 other comprehensive loss for the year ended December 31, 2022 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 June 30, 2023 and December 31, 2022.

June 30, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

11,404

 

 

$

11,404

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

16,145

 

 

 

16,145

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

16,803

 

 

 

16,803

 

Total

 

$

—

 

 

$

—

 

 

$

44,352

 

 

$

44,352

 

 

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

 
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 June 30, 2023 and December 31, 2022.

(Dollars in thousands except per share amounts)

 

Fair Value
at June 30, 2023

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

11,131

 

 

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

 

 

16,145

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 7.59%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

16,803

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$0.5 - $43.2
(1)
Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.
(2)
Represents amount net of liquidation costs.
(3)
Relates to the recreation portfolio.

(Dollars in thousands except per share amounts)

 

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
(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.
v3.23.2
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
Jun. 30, 2023
USD ($)
Medallion Financing Trust I [Member]  
Subsidiary or Equity Method Investee [Line Items]  
Aggregate assets of trust $ 34.0
v3.23.2
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 01, 2023
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Interest-bearing funds deposited in other banks   $ 1,300,000     $ 1,300,000    
Non-marketable securities   11,400,000     11,400,000   $ 10,300,000
Impact of equity investment   2,500,000     2,500,000    
Past Due   48,254,000     48,254,000   57,618,000
Notes receivable net   79,500     79,500    
Net loan origination costs         40,400,000   34,900,000
Net amortization to income   (2,400,000)   $ (2,400,000) (4,300,000) $ (4,500,000)  
Amount of loan charged off         2,500,000    
Principal portion of loans serviced, fair value   15,600,000     15,600,000   19,500,000
Loans write down to collateral value   12,862,000   6,182,000 $ 30,959,000 13,968,000  
Intangible assets useful life         20 years    
Goodwill   150,803,000     $ 150,803,000   150,803,000
Intangible assets, net   21,315,000     21,315,000   22,035,000
Amortization of intangible assets   363,000   363,000 723,000 721,000  
Depreciation and amortization   100,000   100,000 100,000 100,000  
Amortization expense   800,000   700,000 1,500,000 $ 1,300,000  
Deferred costs   6,800,000     $ 6,800,000   $ 7,000,000.0
Potential dilutive common shares excluded from EPS computation         644,478 832,895  
Stock based compensation award         296,444 0  
Stock based compensation award, Amount   $ 1,200,000   $ 900,000 $ 2,200,000 $ 1,500,000  
Stock based compensation award per diluted common share   $ 0.05   $ 0.04 $ 0.10 $ 0.06  
Unrecognized compensation cost related to unvested stock options and restricted stock   $ 5,900,000     $ 5,900,000    
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period         11 months    
Tier 1 leverage capital to total assets ratio   15.00%     15.00%    
Tier 1 leverage capital ratio   16.00%     16.00%    
Capital conversation buffer         2.50%   2.50%
Consumer Loan [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Increase in allowance for credit losses on loans $ 13,700,000            
Commercial Loans [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Financing receivable allowance for credit loss $ 9,900,000            
Restricted Shares [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Stock based compensation award   11,734 304,749   316,483 383,925 522,475
Restricted Stock Units [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Stock based compensation award         0 0  
Medallion Bank [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Amortization of intangible assets             $ 0
90+ [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due   $ 6,190,000     $ 6,190,000   8,903,000
90+ [Member] | Loans [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Past Due   $ 6,200,000     $ 6,200,000   $ 8,900,000
Total loans more than 90 days past due ,percentage   0.29%     0.29%   0.47%
Bank Holding Company Accounting [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Net premium on investment securities         $ 100,000   $ 100,000
Other Assets [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Equity securities, fair value   $ 1,700,000     1,700,000   $ 1,700,000
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         5 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         6 years    
Investment securities Amortized to interest income   $ 100,000       $ 100,000  
Estimated useful life of fixed assets         10 years    
v3.23.2
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Equity Securities, FV-NI, Gain (Loss) [Abstract]        
Net losses recognized during the period on equity securities $ (28) $ (63) $ 0 $ (154)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0 0 0
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (28) $ (63) $ 0 $ (154)
v3.23.2
Summary of Significant Accounting Policies - Summary of Finalized Adoption Related to the Allowance for Credit Losses on Loans (Detail) - USD ($)
$ in Thousands
Jan. 01, 2023
Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss   $ 63,845
Recreation [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss   41,966
Home Improvement [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss   11,340
Commercial [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss   1,049
Medallion [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss   9,490
Strategic Partnership [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss   $ 0
December 31, 2022 Pre-Topic 326 Adoption    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss $ 77,557  
December 31, 2022 Pre-Topic 326 Adoption | Recreation [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 52,003  
December 31, 2022 Pre-Topic 326 Adoption | Home Improvement [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 12,858  
December 31, 2022 Pre-Topic 326 Adoption | Commercial [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 3,206  
December 31, 2022 Pre-Topic 326 Adoption | Medallion [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 9,490  
December 31, 2022 Pre-Topic 326 Adoption | Strategic Partnership [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 0  
Effect of ASC 326 Adoption    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 13,712  
Effect of ASC 326 Adoption | Recreation [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 10,037  
Effect of ASC 326 Adoption | Home Improvement [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 1,518  
Effect of ASC 326 Adoption | Commercial [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 2,157  
Effect of ASC 326 Adoption | Medallion [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss 0  
Effect of ASC 326 Adoption | Strategic Partnership [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans, allowance for credit loss $ 0  
v3.23.2
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Investments In Loans [Line Items]    
Intangibles assets $ 21,315 $ 22,035
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 16,227 16,775
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 5,088 $ 5,260
v3.23.2
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Accounting Policies [Abstract]        
Net income available to common stockholders $ 14,170 $ 13,300 $ 29,531 $ 23,141
Weighted average common shares outstanding applicable to basic EPS 22,488,463 24,153,015 22,416,089 24,459,870
Effect of restricted stock grants 276,420 184,620 379,924 204,273
Effect of dilutive stock options 43,567 84,232 96,342 86,869
Effect of performance share units 45,477 0 22,739 0
Adjusted weighted average common shares outstanding applicable to diluted EPS 22,853,927 24,421,867 22,915,094 24,751,012
Basic net income per share $ 0.63 $ 0.55 $ 1.32 $ 0.95
Diluted net income per share $ 0.62 $ 0.54 $ 1.29 $ 0.93
v3.23.2
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
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 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 $ 267,700 $ 242,049
Tier 1 capital 336,488 310,837
Total capital 363,589 334,913
Average assets 2,099,762 1,917,904
Risk-weighted assets $ 2,123,720 $ 1,888,530
Leverage ratio [1] 0.160 0.162
Common equity Tier 1 capital ratio [2] 0.126 0.128
Tier 1 capital ratio [3] 0.158 0.165
Total capital ratio [3] 0.171 0.177
[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. With the adoption of CECL on January 1, 2023 the Bank elected to phase in the regulatory capital effects of the transition amount, which reduced the capital impact by $6.2 million and increased the Tier 1 capital ratio by 27 basis points.
v3.23.2
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios - (Parenthetical) (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Accounting Policies [Abstract]  
Effects of the transition amount in capital $ 6.2
v3.23.2
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 60,057 $ 54,301
Gross Unrealized Gains 0 13
Gross Unrealized Losses (6,365) (5,822)
Fair Value 53,692 48,492
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 46,195 43,286
Gross Unrealized Gains 0 0
Gross Unrealized Losses (5,187) (4,933)
Fair Value 41,008 38,353
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 13,862 11,015
Gross Unrealized Gains 0 13
Gross Unrealized Losses (1,178) (889)
Fair Value $ 12,684 $ 10,139
v3.23.2
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
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 9,478  
Amortized Cost, due after five years through ten years 9,417  
Amortized Cost, due after ten years 41,162  
Amortized Cost 60,057 $ 54,301
Market Value, due in one year or less 0  
Market Value, due after one year through five years 9,035  
Market Value, due after five years through ten years 8,240  
Market Value, due after ten years 36,417  
Market Value, total $ 53,692 $ 48,492
v3.23.2
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (177) $ (1,017)
Fair Value, Less than Twelve Months 11,014 16,949
Gross Unrealized Losses, Twelve Months and Over (6,188) (4,805)
Fair Value, Twelve Months and Over 42,674 29,525
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (90) (731)
Fair Value, Less than Twelve Months 6,057 12,321
Gross Unrealized Losses, Twelve Months and Over (5,097) (4,202)
Fair Value, Twelve Months and Over 34,951 26,023
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (87) (286)
Fair Value, Less than Twelve Months 4,957 4,628
Gross Unrealized Losses, Twelve Months and Over (1,091) (603)
Fair Value, Twelve Months and Over $ 7,723 $ 3,502
v3.23.2
Investment Securities - Additional Information (Detail) - Securities
Jun. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-Sale [Abstract]    
Number of Securities 62 57
v3.23.2
Loans and Allowance for Credit Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 2,117,946 [1] $ 1,882,585 [2]        
Allowance for loan losses (74,971) [3] (63,845) [4] $ (70,280) [4] $ (59,152) [3] $ (50,686) [4] $ (50,166) [4]
Net loans receivable 2,082,027 1,853,108        
Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 2,156,998 1,916,953 1,984,180 1,734,621 1,569,441 1,488,924
Allowance for loan losses (74,971) (63,845)        
Net loans receivable $ 2,082,027 $ 1,853,108        
Percentage of total gross loans 100.00% 100.00%        
Recreation [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,288,000 [1] $ 1,146,095 [2]        
Allowance for loan losses (54,187) (41,966)        
Recreation [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,331,114 $ 1,183,512 1,213,380 1,096,670 1,004,091 961,320
Percentage of total gross loans 62.00% 62.00%        
Home Improvement [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 731,199 [1] $ 628,877 [2]        
Allowance for loan losses (16,447) (11,340)        
Home Improvement [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 728,468 $ 626,399 669,642 526,278 473,408 436,772
Percentage of total gross loans 34.00% 33.00%        
Commercial [Member]            
Student Loan Portfolio By Program [Line Items]            
Allowance for loan losses $ (2,518) $ (1,049)        
Commercial [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 92,637 $ 92,899 95,329 96,928 77,867 76,696
Percentage of total gross loans 4.00% 5.00%        
Medallion [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 3,448 [1] $ 13,571 [2]        
Allowance for loan losses (1,819) (9,490)        
Medallion [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 3,448 $ 13,571 4,059 14,152 13,849 14,046
Percentage of total gross loans   1.00%        
Strategic Partnership [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 1,331 [1] $ 572 [2]        
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,331 $ 572 $ 1,770 $ 593 $ 226 $ 90
[1] Excludes $40.4 million of capitalized loan origination costs.
[2] Excludes $34.9 million of capitalized loan origination costs.
[3] As of June 30, 2023 and June 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[4] Represents allowance prior to the adoption of ASU 2016-13.
v3.23.2
Loans and Allowance for Credit Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     $ 1,882,585  
Net recoveries (charge-offs) [2] $ (3,785) $ 707 (15,100) $ (2,013)
Transfer to loan collateral in process of foreclosure, net (4,150) (2,757) (10,654) (5,797)
Amortization of origination costs     (4,667) (4,670)
Paid-in-kind interest     644 347
Gross loans, ending balance [3] 2,117,946   2,117,946  
Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     1,146,095  
Transfer to loan collateral in process of foreclosure, net (3,991) (2,618) (8,348) (5,529)
Gross loans, ending balance [3] 1,288,000   1,288,000  
Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     628,877  
Gross loans, ending balance [3] 731,199   731,199  
Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     13,571  
Transfer to loan collateral in process of foreclosure, net (159) (139) (2,306) (268)
Gross loans, ending balance [3] 3,448   3,448  
Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     572  
Net recoveries (charge-offs)     0 0
Gross loans, ending balance [3] 1,331   1,331  
Bank Holding Company Accounting [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,984,180 1,569,441 1,916,953 1,488,924
Loan originations 346,266 304,953 573,557 518,680
Principal payments, sales, maturities, and recoveries (160,879) (133,999) (297,988) (258,054)
Net recoveries (charge-offs) (12,862) (6,182) (30,959) (13,968)
Transfer to loan collateral in process of foreclosure, net (4,150) (2,757) (10,654) (5,797)
Amortization of origination costs (2,494) (2,551) (4,667) (4,670)
Amortization of loan premium   (150)   (300)
FASB origination costs, net 6,557 5,691 10,112 9,459
Paid-in-kind interest 380 175 644 347
Gross loans, ending balance 2,156,998 1,734,621 2,156,998 1,734,621
Bank Holding Company Accounting [Member] | Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,213,380 1,004,091 1,183,512 961,320
Loan originations 190,007 170,207 291,688 284,613
Principal payments, sales, maturities, and recoveries (63,463) (73,114) (119,680) (138,230)
Net recoveries (charge-offs) (9,166) (5,074) (21,756) (10,141)
Transfer to loan collateral in process of foreclosure, net (3,991) (2,618) (8,348) (5,529)
Amortization of origination costs (3,159) (2,931) (5,918) (5,370)
Amortization of loan premium   (60)   (120)
FASB origination costs, net 7,506 6,169 11,616 10,127
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 1,331,114 1,096,670 1,331,114 1,096,670
Bank Holding Company Accounting [Member] | Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 669,642 473,408 626,399 436,772
Loan originations 117,035 105,172 212,016 194,992
Principal payments, sales, maturities, and recoveries (55,350) (51,006) (105,205) (103,170)
Net recoveries (charge-offs) (2,575) (1,108) (4,489) (2,168)
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 665 380 1,251 700
Amortization of loan premium   (90)   (180)
FASB origination costs, net (949) (478) (1,504) (668)
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 728,468 526,278 728,468 526,278
Bank Holding Company Accounting [Member] | Commercial [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 95,329 77,867 92,899 76,696
Loan originations 4,750 19,272 7,750 23,672
Principal payments, sales, maturities, and recoveries (6,922) (386) (7,756) (2,203)
Net recoveries (charge-offs) (900) 0 (900) (1,584)
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 0 0 0 0
Amortization of loan premium   0   0
FASB origination costs, net 0 0 0 0
Paid-in-kind interest 380 175 644 347
Gross loans, ending balance 92,637 96,928 92,637 96,928
Bank Holding Company Accounting [Member] | Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 4,059 13,849 13,571 14,046
Loan originations 1,300 472 1,923 564
Principal payments, sales, maturities, and recoveries (1,531) (30) (5,926) (115)
Net recoveries (charge-offs) (221) 0 (3,814) (75)
Transfer to loan collateral in process of foreclosure, net (159) (139) (2,306) (268)
Amortization of origination costs 0 0 0 0
Amortization of loan premium   0   0
FASB origination costs, net 0 0 0 0
Paid-in-kind interest 0 0 0  
Gross loans, ending balance 3,448 14,152 3,448 14,152
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,770 226 572 90
Loan originations 33,174 9,830 60,180 14,839
Principal payments, sales, maturities, and recoveries (33,613) (9,463) (59,421) (14,336)
Net recoveries (charge-offs) 0 0 0 0
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 0 0 0 0
Amortization of loan premium   0   0
FASB origination costs, net   0 0 0
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance $ 1,331 $ 593 $ 1,331 $ 593
[1] Excludes $34.9 million of capitalized loan origination costs.
[2] As of June 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $231.4 million, some of which may represent collection opportunities for the Company.
[3] Excludes $40.4 million of capitalized loan origination costs.
v3.23.2
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance [1] $ 70,280 $ 50,686 $ 63,845 $ 50,166
Total charge-offs (12,862) (6,182) (30,959) (13,968)
Total recoveries 9,077 6,889 15,859 11,955
Net recoveries (charge-offs) [2] (3,785) 707 (15,100) (2,013)
Provision (benefit) for credit losses 8,476 7,759 12,514 10,999
Allowance for credit losses - ending balance [3] 74,971 59,152 74,971 59,152
Accounting Standards Update 2016-13 [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance 0 0 13,712 0
Recreation [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     41,966  
Total charge-offs (9,166) (5,074) (21,756) (10,141)
Total recoveries 3,282 3,615 6,053 7,125
Allowance for credit losses - ending balance 54,187   54,187  
Home Improvement [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     11,340  
Total charge-offs (2,575) (1,108) (4,489) (2,168)
Total recoveries 627 585 1,259 1,144
Allowance for credit losses - ending balance 16,447   16,447  
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     1,049  
Total charge-offs (900) 0 (900) (1,584)
Total recoveries 0 13 10 47
Allowance for credit losses - ending balance 2,518   2,518  
Medallion [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     9,490  
Total charge-offs (221) 0 (3,814) (75)
Total recoveries 5,168 $ 2,676 8,537 $ 3,639
Allowance for credit losses - ending balance $ 1,819   $ 1,819  
[1] Represents allowance prior to the adoption of ASU 2016-13.
[2] As of June 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $231.4 million, some of which may represent collection opportunities for the Company.
[3] As of June 30, 2023 and June 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
v3.23.2
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Dec. 31, 2022
 [1]
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 16,803 [1] $ 26,974 $ 16,803 [1] $ 26,974 $ 20,467 $ 21,819 $ 33,834 $ 37,430
Net charge-offs [2] 3,785 $ (707) 15,100 2,013        
Strategic Partnership [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Net charge-offs     0 $ 0        
Medallion Bank [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 231,400   $ 231,400          
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.8 million as of June 30, 2023 and $7.5 million as of December 31, 2022.
[2] As of June 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $231.4 million, some of which may represent collection opportunities for the Company.
v3.23.2
Loans and Allowance for Credit Losses - Summary of Current Period Gross Charge Offs (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Financing Receivable, Past Due [Line Items]    
2023 $ 83 $ 83
2022 5,116 9,628
2021 2,817 6,515
2020 943 2,757
2019 1,909 3,594
Prior 1,994 8,382
Total 12,862 30,959
Recreation [Member]    
Financing Receivable, Past Due [Line Items]    
2023 44 44
2022 3,568 7,176
2021 2,344 5,414
2020 785 2,456
2019 918 2,472
Prior 1,507 4,194
Total 9,166 21,756
Home Improvement [Member]    
Financing Receivable, Past Due [Line Items]    
2023 39 39
2022 1,548 2,452
2021 473 1,101
2020 158 301
2019 91 222
Prior 266 374
Total 2,575 4,489
Commercial Loan [Member]    
Financing Receivable, Past Due [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 900 900
Prior 0 0
Total 900 900
Medallion [Member]    
Financing Receivable, Past Due [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 221 3,814
Total $ 221 $ 3,814
v3.23.2
Loans and Allowance for Credit Losses - Summary of Allowance for Credit Losses by Type (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
 [2]
Dec. 31, 2022
Jun. 30, 2022
 [1]
Mar. 31, 2022
 [2]
Dec. 31, 2021
 [2]
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 74,971 [1] $ 70,280 $ 63,845 [2] $ 59,152 $ 50,686 $ 50,166
Percentage of Allowance 100.00%   100.00%      
Allowance as a Percent of Loan Category 3.48%   3.33%      
Allowance as a Percent of Nonaccrual 464.36%   198.69%      
Recreation [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 54,187   $ 41,966      
Percentage of Allowance 72.00%   66.00%      
Allowance as a Percent of Loan Category 4.07%   3.55%      
Allowance as a Percent of Nonaccrual 335.63%   130.60%      
Home Improvement [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 16,447   $ 11,340      
Percentage of Allowance 22.00%   18.00%      
Allowance as a Percent of Loan Category 2.26%   1.81%      
Allowance as a Percent of Nonaccrual 101.87%   35.29%      
Commercial [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 2,518   $ 1,049      
Percentage of Allowance 3.00%   1.00%      
Allowance as a Percent of Loan Category 2.72%   1.13%      
Allowance as a Percent of Nonaccrual 15.60%   3.26%      
Medallion [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 1,819   $ 9,490      
Percentage of Allowance 3.00%   15.00%      
Allowance as a Percent of Loan Category 52.76%   69.93%      
Allowance as a Percent of Nonaccrual 11.27%   29.53%      
[1] As of June 30, 2023 and June 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[2] Represents allowance prior to the adoption of ASU 2016-13.
v3.23.2
Loans and Allowance for Credit Losses - Summary of Non Accrual Loan (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Receivables [Abstract]    
Total nonaccrual loans $ 16,145 $ 32,133
Interest foregone quarter to date 237 231
Amount of foregone interest applied to principal in the quarter 63 94
Interest foregone year to date 507 1,267
Amount of foregone interest applied to principal for the year 133 375
Interest foregone life-to-date 1,655 2,419
Amount of foregone interest applied to principal life-to-date $ 789 $ 1,204
Percentage of nonaccrual loans to gross loan portfolio 0.70% 1.70%
Percentage of allowance for credit losses to nonaccrual loans 464.40% 198.70%
v3.23.2
Loans and Allowance for Credit Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 2,156,998 $ 1,916,953
Percentage of Nonperforming to Total 0.75% 1.70%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 2,140,853 $ 1,884,403
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 16,145 32,550
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,331,114 $ 1,183,512
Percentage of Nonperforming to Total 0.40% 0.82%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,325,745 $ 1,173,846
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 5,369 9,666
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 728,468 $ 626,399
Percentage of Nonperforming to Total 0.16% 0.09%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 727,332 $ 625,820
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 1,136 579
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 92,637 $ 92,899
Percentage of Nonperforming to Total 6.68% 9.40%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 86,445 $ 84,165
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 6,192 8,734
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 3,448 $ 13,571
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 3,448 13,571
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,331 $ 572
Percentage of Nonperforming to Total 0.00% 0.00%
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,331 $ 572
Strategic Partnership [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
v3.23.2
Loans and Allowance for Credit Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance $ 16,145   $ 16,145   $ 32,550
Unpaid principal balance, With related allowance 16,934   16,934   33,754
Related Allowance, With related allowance 2,536   2,536   10,806
Average Investment Recorded, With related allowance 16,706 $ 35,265 16,889 $ 36,012  
Interest Income Recognized, With related allowance 8 119 10 223  
Recreation [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 5,369   5,369   9,666
Unpaid principal balance, With related allowance 5,369   5,369   9,666
Related Allowance, With related allowance 219   219   343
Average Investment Recorded, With related allowance 5,230 5,197 5,208 5,265  
Interest Income Recognized, With related allowance 7 119 9 223  
Home Improvement [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 1,136   1,136   579
Unpaid principal balance, With related allowance 1,136   1,136   579
Related Allowance, With related allowance 26   26   10
Average Investment Recorded, With related allowance 1,138 396 1,129 388  
Interest Income Recognized, With related allowance 1 0 1 0  
Commercial [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 6,192   6,192   8,734
Unpaid principal balance, With related allowance 6,301   6,301   8,823
Related Allowance, With related allowance 472   472   963
Average Investment Recorded, With related allowance 5,652 13,577 5,644 13,561  
Interest Income Recognized, With related allowance 0 0 0 0  
Medallion [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 3,448   3,448   13,571
Unpaid principal balance, With related allowance 4,128   4,128   14,686
Related Allowance, With related allowance 1,819   1,819   $ 9,490
Average Investment Recorded, With related allowance 4,686 16,095 4,908 16,798  
Interest Income Recognized, With related allowance $ 0 $ 0 $ 0 $ 0  
v3.23.2
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 48,254 $ 57,618
Total 2,117,946 [1] 1,882,585 [2]
Accruing 0 0
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,069,692 1,824,967
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 30,943 35,189
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 11,121 13,526
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,190 8,903
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 42,880 51,023
Total 1,288,000 [1] 1,146,095 [2]
Accruing 0 0
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,245,120 1,095,072
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 28,438 31,781
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 9,464 11,877
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 4,978 7,365
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,300 5,101
Total 731,199 [1] 628,877 [2]
Accruing 0 0
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 725,899 623,776
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,505 3,266
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,657 1,256
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,138 579
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 74
Total 93,968 [1] 93,470 [2]
Accruing 0 0
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 93,894 93,396
Commercial Loans [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Commercial Loans [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Commercial Loans [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 74
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 1,420
Total 3,448 [1] 13,571 [2]
Accruing 0 0
Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,448 12,151
Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 142
Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 393
Medallion [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 885
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Total 1,331 [1] 572 [2]
Accruing 0 0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,331 572
Strategic Partnership [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Strategic Partnership [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Strategic Partnership [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 0 $ 0
[1] Excludes $40.4 million of capitalized loan origination costs.
[2] Excludes $34.9 million of capitalized loan origination costs.
v3.23.2
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Receivables [Abstract]    
Capitalized loan origination costs $ 40.4 $ 34.9
v3.23.2
Loans and Allowance for Credit Losses - Additional Information (Detail)
$ in Millions
 6 Months Ended
Jun. 30, 2022
USD ($)
TDR
Jun. 30, 2023
Dec. 31, 2022
Financing Receivable Recorded Investment Past Due [Line Items]      
Weighted average loan-to-value ratio   196.00% 339.00%
Medallion [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs in default in previous 12 months 0    
Recreation [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs in default in previous 12 months 20    
Number of loans modified as TDRs in default, investment value | $ $ 0.2    
Commercial Loans [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs in default in previous 12 months 0    
v3.23.2
Loans and Allowance for Credit Losses - Summary of TDRs (Detail)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
TDR
Jun. 30, 2022
USD ($)
TDR
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 12 22
Pre- Modification Investment $ 147 $ 276
Post- Modification Investment $ 147 $ 276
Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 0 2
Pre- Modification Investment $ 0 $ 252
Post- Modification Investment $ 0 $ 252
v3.23.2
Loans and Allowance for Credit Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance $ 20,467 $ 33,834 $ 21,819 [1] $ 37,430
Transfer from loans, net 4,150 2,757 10,654 5,797
Sales (3,136) (4,145) (5,346) (6,513)
Cash payments received (2,645) (4,381) (5,962) (7,253)
Collateral valuation adjustments (2,033) (1,091) (4,362) (2,487)
Loans collateral in process of foreclosure - ending balance 16,803 [1] 26,974 16,803 [1] 26,974
Recreation [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 1,461 1,369 1,376 1,720
Transfer from loans, net 3,991 2,618 8,348 5,529
Sales (2,583) (2,146) (4,778) (4,398)
Cash payments received (128) 0 (128) 0
Collateral valuation adjustments (2,012) (963) (4,089) (1,973)
Loans collateral in process of foreclosure - ending balance 729 878 729 878
Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 19,006 32,465 20,443 35,710
Transfer from loans, net 159 139 2,306 268
Sales (553) (1,999) (568) (2,115)
Cash payments received (2,517) (4,381) (5,834) (7,253)
Collateral valuation adjustments (21) (128) (273) (514)
Loans collateral in process of foreclosure - ending balance $ 16,074 $ 26,096 $ 16,074 $ 26,096
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.8 million as of June 30, 2023 and $7.5 million as of December 31, 2022.
v3.23.2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
2024 $ 746,617  
2025 575,703  
2026 328,645  
2027 202,831  
2028 147,527  
Thereafter 63,500  
Long term debt [1] $ 2,064,823 $ 1,832,184
Interest Rate [2] 3.12%  
Deposits [Member]    
Debt Instrument [Line Items]    
2024 [3] $ 678,737  
2025 [3] 563,203  
2026 [3] 281,895  
2027 [3] 198,331  
2028 [3] 93,777  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,815,943 1,609,672
Interest Rate [2],[3] 2.70%  
Federal reserve discount window [Member]    
Debt Instrument [Line Items]    
2024 $ 28,000  
2025 0  
2026 0  
2027 0  
2028 0  
Thereafter 0  
Long term debt [1] $ 28,000 0
Interest Rate [2] 5.25%  
Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2024 $ 36,000  
2025 0  
2026 31,250  
2027 0  
2028 53,750  
Thereafter 0  
Long term debt [1] $ 121,000 121,000
Interest Rate [2] 7.66%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2024 $ 3,880  
2025 12,500  
2026 15,500  
2027 4,500  
2028 0  
Thereafter 30,500  
Long term debt [1] $ 66,880 68,512
Interest Rate [2] 3.13%  
Preferred Securities [Member]    
Debt Instrument [Line Items]    
2024 $ 0  
2025 0  
2026 0  
2027 0  
2028 0  
Thereafter 33,000  
Long term debt [1] $ 33,000 $ 33,000
Interest Rate [2] 7.62%  
[1] Excludes deferred financing costs of $6.8 million and $7.0 million as of June 30, 2023 and December 31, 2022.
[2] Weighted average contractual rate as of June 30, 2023.
[3] Balance excludes $1.5 million and $1.3 million of strategic partner reserve deposits as of June 30, 2023 and December 31, 2022.
v3.23.2
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
Deferred costs $ 6.8 $ 7.0
Reserve Deposits $ 1.5 $ 1.3
v3.23.2
Funds Borrowed - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Feb. 28, 2021
Dec. 31, 2007
Jun. 30, 2007
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2019
Dec. 31, 2022
Apr. 30, 2021
Mar. 15, 2021
Dec. 31, 2020
Aug. 31, 2019
Mar. 31, 2019
Dec. 31, 2017
Debt Instrument [Line Items]                              
Listing services deposits from other financial institutions.       $ 12,300,000   $ 12,300,000     $ 12,400,000            
Retail savings deposit balance       23,900,000   23,900,000                  
Aggregate principal amount                         $ 6,000,000.0    
Maturity date Feb. 28, 2026                            
Gain loss on sales of loans net       $ 1,306,000 $ 2,667,000 $ 3,161,000 $ 4,543,000                
Issue of common stock       28,947,171   28,947,171     28,663,827            
Preferred securities repurchased from a third party investor   $ 2,000,000.0                          
Long-term debt [1]       $ 178,128,000   $ 178,128,000     $ 214,320,000            
Investment securities pledged       53,692,000   $ 53,692,000     $ 48,492,000            
Preferred Securities [Member]                              
Debt Instrument [Line Items]                              
Maturity date           Sep. 30, 2037                  
Sale of preferred securities     $ 35,000,000.0                        
Issue of common stock     1,083                        
Preferred securities outstanding       $ 33,000,000.0   $ 33,000,000.0                  
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           26 basis points                  
Preferred Securities [Member] | Unsecured Debt [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount of unsecured junior subordinated notes     $ 36,100,000                        
Small Business Administration Debentures and Borrowings [Member]                              
Debt Instrument [Line Items]                              
Debt instrument interest rate Percentage       3.25%   3.25%                  
Loan commitment term           4 years 6 months                  
Commitment fee percentage           1.00%                  
Principal amount of loan                             $ 34,000,000.0
Extended maturity date           Apr. 30, 2024                  
Debt instrument outstanding amount       $ 66,900,000   $ 66,900,000                  
Debt instrument remaining amount       1,400,000   1,400,000                  
Borrowings       66,900,000   66,900,000                  
FSVC's [Member]                              
Debt Instrument [Line Items]                              
Principal amount of loan                             $ 33,500,000
Federal reserve discount window [Member]                              
Debt Instrument [Line Items]                              
Debt instrument outstanding amount       28,000,000.0   28,000,000.0                  
Investment securities pledged       38,900,000   $ 38,900,000                  
Pledged securities advance rate of fair value           100.00%                  
Borrowing capacity       38,700,000   $ 38,700,000                  
Borrowings       28,000,000.0   $ 28,000,000.0                  
7.25% Unsecured Senior Notes Due February 2026 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount                   $ 3,000,000.0 $ 3,300,000        
7.50% Unsecured Senior Notes Due December 2027 [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount                   $ 11,700,000          
Privately Placed Notes [Member]                              
Debt Instrument [Line Items]                              
Aggregate principal amount $ 25,000,000.0                   $ 8,500,000 $ 33,600,000   $ 30,000,000.0  
Debt instrument interest rate Percentage 7.25%                     7.50%   8.25%  
Maturity date           2024                  
Maturity date           Dec. 31, 2027                  
Gain loss on sales of loans net               $ 4,100,000              
Minimum [Member]                              
Debt Instrument [Line Items]                              
Time deposits       $ 250,000   $ 250,000                  
Brokerage [Member] | Maximum [Member]                              
Debt Instrument [Line Items]                              
Average brokerage fee percentage in relation to the maturity of deposits           0.15%                  
[1] Includes $2.9 million and $3.2 million of deferred financing costs as of June 30, 2023 and December 31, 2022. Refer to Note 5 for more details.
v3.23.2
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Jun. 30, 2023
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 162,219
Over three months through six months 186,757
Over six months through one year 329,761
Over one year 1,138,754
Total deposits $ 1,817,491
v3.23.2
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]        
Operating lease costs $ 597 $ 590 $ 1,195 $ 1,179
Operating cash flows from operating leases 603 435 1,226 1,080
Right-of-use asset obtained in exchange for lease liability $ (56) $ (40) $ (111) $ (85)
v3.23.2
Leases - Schedule of Breakout of Operating leases (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
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 $ 9,001 $ 9,723
Other current liabilities $ 2,188 $ 2,239
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 7,629 $ 8,408
Total operating lease liabilities $ 9,817 $ 10,647
Weighted average remaining lease term 5 years 1 month 6 days 5 years 6 months
Weighted average discount rate 5.59% 5.66%
v3.23.2
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Remainder of 2023 $ 1,250  
2024 2,508  
2025 2,492  
2026 2,440  
2027 1,212  
Thereafter 1,290  
Total lease payments 11,192  
Less imputed interest 1,375  
Total operating lease liabilities $ 9,817 $ 10,647
v3.23.2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ (43,215) $ (43,397)
Provision for credit losses 10,913 9,945
Net operating loss carryforwards [1] 3,730 3,730
Accrued expenses, compensation, and other assets 3,601 3,819
Unrealized gains on other investments 426 1,445
Total deferred tax liability (24,545) (24,458)
Valuation allowance (2,295) (2,295)
Deferred tax liability, net $ (26,840) $ (26,753)
[1] As of June 30, 2023, 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 as of June 30, 2023.
v3.23.2
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member]
$ in Millions
 6 Months Ended
Jun. 30, 2023
USD ($)
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
v3.23.2
Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Current        
Federal $ 3,873 $ 984 $ 6,456 $ 1,488
State 1,175 447 1,964 769
Deferred        
Federal 204 2,378 2,450 5,598
State 220 1,047 984 1,832
Net provision for income taxes $ 5,472 $ 4,856 $ 11,854 $ 9,687
v3.23.2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
Statutory Federal income tax provision at 21% $ 4,442 $ 4,130 $ 9,326 $ 7,529
State and local income taxes, net of federal income tax 869 808 1,824 1,473
Non deductible expenses 19 362 1,076 1,075
Other 142 (444) (372) (390)
Total income tax provision $ 5,472 $ 4,856 $ 11,854 $ 9,687
v3.23.2
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision percentage 21.00% 21.00%
v3.23.2
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 15, 2018
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock option outstanding   983,986 [1] 992,072 983,986 [1]   1,061,849 1,111,687  
Stock option exercisable   721,726   721,726        
Unvested shares under restricted common stock plan   262,260 262,260 262,260   513,423    
Intrinsic value of options vested   $ 0.4   $ 0.4        
Restricted Stock Units [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding, unvested restricted stock units   157,447   157,447        
Number of shares outstanding, vested restricted stock units   157,447   157,447        
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    
Weighted average grant price, granted       $ 6.75        
Restricted Shares [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding, unvested restricted stock units   917,734 [2] 906,204 917,734 [2]   857,288 493,326  
Weighted average fair value of options granted       $ 0 $ 0      
Number of shares, granted   11,734 304,749 316,483 383,925 522,475    
Weighted average grant price, granted   $ 7.67 $ 8.08     $ 7.46    
PSU [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding, performance share units   296,444   296,444        
Number of shares, granted   296,444   296,444        
Weighted average grant price, granted   $ 6.08   $ 6.08        
Maximum [Member] | PSU [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award vesting rights, percentage       200.00%        
Minimum [Member] | PSU [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award vesting rights, percentage       0.00%        
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   5,710,968        
Shares were rolled into the 2018 Plan   2,408,252   2,408,252        
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding, vested restricted stock units   0   0        
2018 Restricted Stock Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Unvested shares under restricted common stock plan   917,734   917,734        
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   800,000        
Number of additional shares available for issuance   0   0        
2006 Stock Option Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term       10 years        
2015 Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 258,334             300,000
2015 Director Plan [Member] | Non Employee Director One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 12,000              
2015 Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
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   0        
Amended Director Plan [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   9,000   9,000        
Amended Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Share based compensation, options term       10 years        
[1] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $1.4 million for outstanding options and $1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023
[2] The aggregate fair value of the restricted stock was $7.3 million as of June 30, 2023. The remaining vesting period was 2.6 years at June 30, 2023.
v3.23.2
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options beginning balance 992,072 1,061,849 1,111,687
Granted 0 0 0
Cancelled (7,803) (25,194) (26,093)
Exercised (283) [1] (44,583) [1] (23,745)
Number of options ending balance 983,986 [2] 992,072 1,061,849
Options vested 721,726   548,426
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance 9.38 [2] 9.38 12.55
Exercise price per share, granted 0 0 0
Exercise price per share, exercised [1] 4.89    
Exercise price per share, lower range limit ending balance 2.14 [2] 2.14 2.14
Exercise price per share, upper range limit ending balance   9.38 [2] 9.38
Exercise price per share, option Vested upper range limit 9.38   9.38
Exercise price per share, option Vested lower range limit 2.14   2.14
Weighted average exercise price, beginning balance 6.53 6.51 6.41
Weighted average exercise price, granted 0 0 0
Weighted average exercise price, cancelled 6.31 6.97 7.08
Weighted average exercise price, exercised 4.89 [1] 6.55 [1] 6.51
Weighted average exercise price, ending balance 6.50 [2] 6.53 6.51
Weighted average exercise price, options vested 6.50   6.51
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, cancelled 4.89 4.89 4.89
Exercise price per share, exercised   4.89 [1] 4.89
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, cancelled $ 7.25 9.38 12.55
Exercise price per share, exercised   $ 7.25 [1] $ 7.25
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2023 and was $0.1 million for the year ended December 31, 2022.
[2] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2023 and the related exercise price of the underlying options, was $1.4 million for outstanding options and $1.0 million for vested options as of June 30, 2023. The remaining contractual life was 6.6 years for outstanding options and 6.4 years for vested options at June 30, 2023
v3.23.2
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Aggregate intrinsic value for option exercised     $ 0.1
Aggregate intrinsic value of option outstanding $ 1.4 $ 1.4  
Aggregate intrinsic value of option vested 1.0 $ 1.0  
Remaining contractual life of option vested   6 years 4 months 24 days  
Maximum [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Aggregate intrinsic value for option exercised $ 0.1 $ 0.1  
v3.23.2
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]        
Number of options beginning balance 262,260 513,423 513,423  
Number of options, granted 0 0   0
Number of options, cancelled 0 (2,951)    
Number of options, vested 0 (248,212)    
Number of options ending balance 262,260 262,260 262,260 513,423
Exercise price per share beginning balance, Lower limit $ 4.89 $ 4.89 $ 4.89  
Exercise price per share beginning balance, Upper limit 7.25 7.25 7.25  
Exercise price per share, Cancelled, Lower limit   4.89    
Exercise price per share, Cancelled, Upper limit 0 7.25    
Exercise price per share, Vested, Lower limit   4.89    
Exercise price per share, Vested, Upper limit 0 7.25    
Exercise price per share ending balance, Lower limit 4.89 4.89 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 7.25 7.25 7.25 7.25
Weighted average exercise price 6.49 6.52 6.52  
Weighted average exercise price, cancelled 0 5.53    
Weighted average exercise price, vested 0 6.55    
Weighted average exercise price $ 6.49 $ 6.49 $ 6.49 $ 6.52
v3.23.2
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Grant price per share, cancelled, lower limit   $ 4.89      
Grant price per share, cancelled, upper limit $ 0 $ 7.25      
Restricted Shares [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares, beginning balance 906,204 857,288 857,288 493,326 493,326
Number of shares, granted 11,734 304,749 316,483 383,925 522,475
Number of shares, cancelled (204) (9,843)     (29,373)
Number of shares, vested 0 [1] (245,990)     (129,140) [1]
Number of shares, ending balance 917,734 [2] 906,204 917,734 [2]   857,288
Grant price per share, lower range limit beginning balance $ 4.89 $ 4.89 $ 4.89 $ 4.89 $ 4.89
Grant price per share, upper range limit beginning balance 8.40 7.25 7.25 7.25 7.25
Grant price per share, granted, lower limit         6.86
Grant price per share, granted, upper limit 7.67 8.08     7.68
Grant price per share, cancelled, lower limit   4.89     4.89
Grant price per share, cancelled, upper limit 6.86 8.40     8.40
Grant price per share, vested, lower limit   4.89     4.89 [1]
Grant price per share, vested, upper limit 0 [1] 7.68     7.25 [1]
Grant price per share, lower range limit ending balance 4.89 [2] 4.89 4.89 [2]   4.89
Grant price per share, upper range limit ending balance 8.40 [2] 8.40 8.40 [2]   7.25
Weighted average grant price beginning balance 7.58 7.27 7.27 $ 6.87 6.87
Weighted average grant price, granted 7.67 8.08     7.46
Weighted average grant price, cancelled 6.86 7.18     7.32
Weighted average grant price, vested 0 [1] 7.12     6.53 [1]
Weighted average grant price, ending balance $ 7.59 [2] $ 7.58 $ 7.59 [2]   $ 7.27
[1] The aggregate fair value of the restricted stock vested was $2.1 million for the six months ended June 30, 2023 and was $1.0 million for the year ended December 31, 2022.
[2] The aggregate fair value of the restricted stock was $7.3 million as of June 30, 2023. The remaining vesting period was 2.6 years at June 30, 2023.
v3.23.2
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Aggregate fair value of restricted stock vested $ 2.1 $ 1.0
Aggregate fair value of restricted stock outstanding $ 7.3  
Remaining vesting period of restricted stock 2 years 7 months 6 days  
v3.23.2
Segment Reporting - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2023
Segment
Dec. 31, 2022
Segment Reporting Disclosure [Line Items]    
Number of business segments 5  
Number of operating segments 4  
Number of non-operating segments 1  
Capital ratios for operating segments [1] 0.126 0.128
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 41.00%  
Swimming Pools [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 19.00%  
Windows [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 13.00%  
Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Other Product Lines [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Manufacturing [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 48.00%  
Wholesale Trade [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 13.00%  
Construction [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 12.00%  
Administrative And Support Services [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 11.00%  
Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 15.00%  
Texas [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Florida [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Florida [Member] | Home Improvement [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Other States [Member]    
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 59.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 19.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 10.00%  
Commercial Lending Segment | Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Commercial Lending Segment | Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 11.00%  
Commercial Lending Segment | California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 23.00%  
Commercial Lending Segment | Minnesota    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 15.00%  
Commercial Lending Segment | Illinois    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 12.00%  
Commercial Lending Segment | Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Other Product Lines [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 10.00%  
[1] Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
v3.23.2
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Segment Reporting Disclosure [Line Items]              
Total interest income $ 61,726   $ 47,111   $ 117,568 $ 90,414  
Total interest expense 15,035   8,230   27,275 15,605  
Net interest income (loss) 46,691   38,881   90,293 74,809  
Provision (benefit) for credit losses 8,476   7,759   12,514 10,999  
Net interest income (loss) after loss provision 38,215   31,122   77,779 63,810  
Other income (expense), net (17,061)   (11,455)   (33,370) (27,958)  
Income before income taxes 21,154   19,667   44,409 35,852  
Income tax (provision) benefit (5,472)   (4,856)   (11,854) (9,687)  
Net income (loss) after taxes 15,682 $ 16,873 14,811 $ 11,353 32,555 26,165  
Income attributable to the non-controlling interest 1,512   1,511   3,024 3,024  
Total net income attributable to Medallion Financial Corp. 14,170   13,300   29,531 23,141  
Balance Sheet Data              
Total loans 2,082,027       2,082,027   $ 1,853,108
Loans 2,156,998   1,734,621   2,156,998 1,734,621 1,916,953
Total assets 2,519,137   2,112,131   2,519,137 2,112,131 $ 2,259,879
Total funds borrowed $ 2,066,607   $ 1,696,005   $ 2,066,607 $ 1,696,005  
Selected Financial Ratios              
Return on average assets 2.60%   2.93%   2.79% 2.68%  
Return on average equity 16.52%   16.33%   17.49% 14.57%  
Return on average stockholders' equity 18.24%   18.11%   19.45% 15.93%  
Interest yield 11.59%   10.64%   11.01% 10.68%  
Net interest margin, gross 8.48%   8.78%   8.45% 8.84%  
Net interest margin, net of allowance 8.77%   9.07%   8.75% 9.15%  
Reserve coverage 3.48%   3.41%   3.48% 3.41%  
Delinquency status 0.29% [1]   0.25% [2]   0.29% [3] 0.25% [4]  
Charge-off (recovery) ratio 0.74% [5]   (0.17%) [6]   1.51% [7] 0.26% [8]  
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 41,109   $ 33,514   $ 79,008 $ 64,650  
Total interest expense 7,580   4,096   13,484 7,697  
Net interest income (loss) 33,529   29,418   65,524 56,953  
Provision (benefit) for credit losses 10,135   6,674   17,886 8,354  
Net interest income (loss) after loss provision 23,394   22,744   47,638 48,599  
Other income (expense), net (8,444)   (7,551)   (16,247) (14,371)  
Income before income taxes 14,950   15,193   31,391 34,228  
Income tax (provision) benefit (3,867)   (3,567)   (8,380) (9,248)  
Net income (loss) after taxes 11,083   11,626   23,011 24,980  
Balance Sheet Data              
Total loans 1,331,114   1,096,670   1,331,114 1,096,670  
Total assets 1,294,925   1,072,356   1,294,925 1,072,356  
Total funds borrowed $ 1,062,309   $ 861,083   $ 1,062,309 $ 861,083  
Selected Financial Ratios              
Return on average assets 3.59%   4.53%   3.84% 5.04%  
Return on average equity 22.94%   25.52%   24.13% 27.27%  
Interest yield 13.03%   12.83%   12.93% 12.85%  
Net interest margin, gross 10.63%   11.26%   10.72% 11.32%  
Net interest margin, net of allowance 11.08%   11.65%   11.18% 11.71%  
Reserve coverage 4.07%   3.44%   4.07% 3.44%  
Delinquency status 0.39% [1]   0.36% [2]   0.39% [3] 0.36% [4]  
Charge-off (recovery) ratio 1.86% [5]   0.56% [6]   2.57% [7] 0.60% [8]  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 15,292   $ 10,587   $ 28,941 $ 20,288  
Total interest expense 4,194   1,626   7,473 2,967  
Net interest income (loss) 11,098   8,961   21,468 17,321  
Provision (benefit) for credit losses 3,739   1,697   6,820 2,902  
Net interest income (loss) after loss provision 7,359   7,264   14,648 14,419  
Other income (expense), net (4,386)   (3,210)   (8,379) (6,106)  
Income before income taxes 2,973   4,054   6,269 8,313  
Income tax (provision) benefit (769)   (975)   (1,674) (2,246)  
Net income (loss) after taxes 2,204   3,079   4,595 6,067  
Balance Sheet Data              
Total loans 728,468   526,278   728,468 526,278  
Total assets 718,383   521,931   718,383 521,931  
Total funds borrowed $ 589,335   $ 419,102   $ 589,335 $ 419,102  
Selected Financial Ratios              
Return on average assets 1.28%   2.49%   1.39% 2.56%  
Return on average equity 8.19%   14.03%   8.76% 13.87%  
Interest yield 8.79%   8.51%   8.66% 8.57%  
Net interest margin, gross 6.38%   7.20%   6.43% 7.32%  
Net interest margin, net of allowance 6.53%   7.33%   6.57% 7.45%  
Reserve coverage 2.26%   1.75%   2.26% 1.75%  
Delinquency status 0.16% [1]   0.07% [2]   0.16% [3] 0.07% [4]  
Charge-off (recovery) ratio 1.12% [5]   0.42% [6]   0.97% [7] 0.43% [8]  
Operating Segments [Member] | Commercial Lending [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 2,814   $ 2,278   $ 5,515 $ 4,208  
Total interest expense 852   785   1,661 1,507  
Net interest income (loss) 1,962   1,493   3,854 2,701  
Provision (benefit) for credit losses (113)   1,879   214 3,134  
Net interest income (loss) after loss provision 2,075   (386)   3,640 (433)  
Other income (expense), net (804)   3,263   (953) 1,932  
Income before income taxes 1,271   2,877   2,687 1,499  
Income tax (provision) benefit (329)   (816)   (718) (405)  
Net income (loss) after taxes 942   2,061   1,969 1,094  
Balance Sheet Data              
Total loans 92,637   96,928   92,637 96,928  
Total assets 99,713   103,643   99,713 103,643  
Total funds borrowed $ 81,801   $ 83,224   $ 81,801 $ 83,224  
Selected Financial Ratios              
Return on average assets 3.76%   8.70%   3.94% 2.41%  
Return on average equity 23.97%   49.03%   24.74% 12.20%  
Interest yield 11.87%   10.41%   11.71% 10.13%  
Net interest margin, gross 8.28%   6.82%   8.18% 6.50%  
Net interest margin, net of allowance 8.54%   6.93%   8.43% 6.60%  
Reserve coverage 2.72%   2.81%   2.72% 2.81%  
Delinquency status 0.08% [1]   0.08% [2]   0.08% [3] 0.08% [4]  
Charge-off (recovery) ratio 3.80% [5]   (0.06%) [6]   1.89% [7] 3.70% [8]  
Operating Segments [Member] | Medallion Lending [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 787   $ 231   $ 1,097 $ 377  
Total interest expense 46   140   113 293  
Net interest income (loss) 741   91   984 84  
Provision (benefit) for credit losses (5,311)   (2,272)   (12,395) (3,544)  
Net interest income (loss) after loss provision 6,052   2,363   13,379 3,628  
Other income (expense), net 561   (357)   153 (1,566)  
Income before income taxes 6,613   2,006   13,532 2,062  
Income tax (provision) benefit (1,713)   (540)   (3,612) (557)  
Net income (loss) after taxes 4,900   1,466   9,920 1,505  
Balance Sheet Data              
Total loans 3,448   14,152   3,448 14,152  
Total assets 18,724   31,258   18,724 31,258  
Total funds borrowed $ 15,360   $ 25,100   $ 15,360 $ 25,100  
Selected Financial Ratios              
Return on average assets 100.63%   17.04%   94.20% 5.85%  
Return on average equity 641.63%   95.46%   590.25% 30.73%  
Interest yield 83.55%   6.66%   28.80% 5.47%  
Net interest margin, gross 78.67%   2.62%   25.84% 1.22%  
Net interest margin, net of allowance 166.23%   7.88%   73.52% 3.61%  
Reserve coverage 52.76%   66.61%   52.76% 66.61%  
Delinquency status 0.00% [1]   0.00% [2]   0.00% [3] 0.00% [4]  
Charge-off (recovery) ratio (525.21%) [5]   (77.17%) [6]   (124.01%) [7] (51.66%) [8]  
Intersegment Eliminations [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 1,724   $ 501   $ 3,007 $ 891  
Total interest expense 2,363   1,583   4,544 3,141  
Net interest income (loss) (639)   (1,082)   (1,537) (2,250)  
Provision (benefit) for credit losses 26   (219)   (11) 153  
Net interest income (loss) after loss provision (665)   (863)   (1,526) (2,403)  
Other income (expense), net (3,988)   (3,600)   (7,944) (7,847)  
Income before income taxes (4,653)   (4,463)   (9,470) (10,250)  
Income tax (provision) benefit 1,206   1,042   2,530 2,769  
Net income (loss) after taxes (3,447)   (3,421)   (6,940) (7,481)  
Balance Sheet Data              
Total loans 1,331   593   1,331 593  
Total assets 387,392   382,943   387,392 382,943  
Total funds borrowed $ 317,802   $ 307,496   $ 317,802 $ 307,496  
Selected Financial Ratios              
Return on average assets (3.69%)   (3.56%)   (3.70%) (4.24%)  
Return on average equity (22.83%)   (20.01%)   (23.24%) (24.86%)  
[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] Loans 90 days or more past due.
[5] Negative balances indicate net recoveries for the period.
[6] Negative balances indicate net recoveries for the period.
[7] Negative balances indicate net recoveries for the period.
[8] Negative balances indicate net recoveries for the period.
v3.23.2
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 6 Months Ended
Jun. 30, 2023
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description employment agreements expire at various dates through 2027
Future minimum payments $ 11.8
Other commitment $ 0.0
v3.23.2
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Related Party Transaction [Line Items]    
Salary from related party $ 250,950 $ 239,000
Annual cash bonus 85,000 75,000
Equity bonus $ 50,000 $ 45,019
v3.23.2
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Financial assets      
Equity investments $ 11,404 $ 10,293  
Investment securities 53,692 48,492  
Loans receivable 2,156,998 1,916,953 $ 1,734,621
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents and federal funds sold [1] 124,554 105,598  
Equity investments 11,404 10,293  
Investment securities 53,692 48,492  
Loans receivable 2,082,027 1,853,108  
Accrued interest receivable [2] 13,345 12,613  
Equity securities, fair value [3] 1,724 1,724  
Financial liabilities      
Funds borrowed 2,066,607 1,833,484  
Accrued interest payable [2] 4,449 4,790  
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents and federal funds sold [1] 124,554 105,598  
Equity investments 11,404 10,293  
Investment securities 53,692 48,492  
Loans receivable 2,082,027 1,853,108  
Accrued interest receivable [2] 13,345 12,613  
Equity securities, fair value [3] 1,724 1,724  
Financial liabilities      
Funds borrowed 2,066,607 1,833,484  
Accrued interest payable [2] $ 4,449 $ 4,790  
[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2023 and $1.3 million as of December 31, 2022. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
v3.23.2
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
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
v3.23.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Assets    
Interest-bearing deposits $ 1,300  
Fair Value Recurring [Member]    
Assets    
Interest-bearing deposits 1,250 $ 1,250
Available for sale investment securities 53,692 48,492
Equity securities, fair value [1] 1,724 1,724
Total 56,666 [2] 51,466 [3]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,724 1,724
Total 1,724 [2] 1,724 [3]
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Available for sale investment securities 53,692 48,492
Total $ 54,942 [2] $ 49,742 [3]
[1] Included within other assets on the balance sheet.
[2] Total unrealized losses of $0.9 million and $0.4 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2023 related to these assets.
[3] Total unrealized losses of $4.4 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2022 related to these assets.
v3.23.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]        
Net change in unrealized gains (losses) on investments, net of tax $ 900 $ 506 $ 400 $ (4,400)
v3.23.2
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Assets            
Impaired loans $ 15,600   $ 19,500      
Loan collateral in process of foreclosure 16,803 [1] $ 20,467 21,819 [1] $ 26,974 $ 33,834 $ 37,430
Fair Value, Nonrecurring            
Assets            
Equity investments 11,404   10,293      
Impaired loans 16,145   32,133      
Loan collateral in process of foreclosure 16,803   21,819      
Total 44,352   64,245      
Fair Value, Nonrecurring | Level 3 [Member]            
Assets            
Equity investments 11,404   10,293      
Impaired loans 16,145   32,133      
Loan collateral in process of foreclosure 16,803   21,819      
Total $ 44,352   $ 64,245      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.8 million as of June 30, 2023 and $7.5 million as of December 31, 2022.
v3.23.2
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Mar. 31, 2023
USD ($)
Jun. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value $ 15,600,000 $ 19,500,000        
Loan collateral in process of foreclosure $ 16,803,000 [1] $ 21,819,000 [1] $ 20,467,000 $ 26,974,000 $ 33,834,000 $ 37,430,000
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        
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 0.0000        
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 0.0759 0.0655        
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value $ 0.0 [2] $ 0.0 [3]        
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value 79,500 [2] 79,500 [3]        
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 500 [4] 2,500 [5]        
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 43,200 [4] 54,100 [5]        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 0.0 [2] 0.0 [3]        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 79,500 [2] 79,500 [3]        
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity investments 11,131,000 10,020,000        
Level 3 [Member] | Impaired Loans [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity investments 273,000 273,000        
Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Principal portion of loans serviced, fair value 16,145,000 32,133,000        
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 $ 16,803,000 $ 21,819,000        
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.8 million as of June 30, 2023 and $7.5 million as of December 31, 2022.
[2] Represents amount net of liquidation costs.
[3] Represents amount net of liquidation costs.
[4] Relates to the recreation portfolio.
[5] Relates to the recreation portfolio.
v3.23.2
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 6 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Jun. 30, 2023
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 Term 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  
v3.23.2
Subsequent Event - Additional Information (Details) - USD ($)
$ in Thousands
Jul. 10, 2023
Feb. 28, 2021
Jun. 30, 2023
Dec. 31, 2022
Subsequent Event [Line Items]        
Maturity date   Feb. 28, 2026    
Long-Term Debt [1]     $ 178,128 $ 214,320
Medallion Capital, Inc. | Subsequent Event [Member]        
Subsequent Event [Line Items]        
Debt instrument face amount $ 20,000      
Debt instrument payment period 10 years      
Maturity date Sep. 30, 2027      
Debt instrument leverage fee $ 200      
Debt instrument remaining leverage fee 400      
Line Of Credit Facility Drawn Amount 4,800      
Long-Term Debt 15,200      
Long term debt under capital infusion $ 7,600      
[1] Includes $2.9 million and $3.2 million of deferred financing costs as of June 30, 2023 and December 31, 2022. Refer to Note 5 for more details.