MEDALLION FINANCIAL CORP, 10-Q filed on 06 Nov 23
 | XBRL Documents
v3.23.3
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2023
Nov. 03, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2023  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   23,363,731
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 $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.23.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets    
Cash and cash equivalents $ 37,472 $ 33,172
Federal funds sold 90,170 72,426
Investment securities 53,175 48,492
Equity investments 10,542 10,293
Loans 2,203,038 1,916,953
Allowance for loan losses (79,133) [1] (63,845) [2]
Net loans receivable 2,123,905 1,853,108
Goodwill 150,803 150,803
Intangible assets, net 20,952 22,035
Loan collateral in process of foreclosure [3] 15,923 21,819
Accrued interest receivable 13,593 12,613
Property, equipment, and right-of-use lease asset, net 13,278 13,168
Income tax receivable 0 2,095
Other assets 28,814 19,855
Total assets 2,558,627 2,259,879
Liabilities    
Deposits [4] 1,855,096 1,607,110
Long-term debt [5] 218,137 214,320
Short-term borrowings 18,489 5,000
Deferred tax liabilities, net 23,131 26,753
Operating lease liabilities 7,075 8,408
Accrued interest payable 4,624 4,790
Income tax payable 2,866 0
Accounts payable and accrued expenses [6] 31,947 22,974
Total liabilities 2,161,365 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 - 28,965,885 shares at September 30, 2023 and 28,663,827 shares at December 31, 2022 issued) 290 287
Additional paid in capital 286,782 283,663
Treasury stock (5,602,154 shares at September 30, 2023 and December 31, 2022) (45,538) (45,538)
Accumulated other comprehensive loss (4,960) (3,349)
Retained earnings 91,900 66,673
Total stockholders’ equity 328,474 301,736
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 397,262 370,524
Total liabilities and equity $ 2,558,627 $ 2,259,879
Number of shares outstanding 23,363,731 23,061,673
Book value per share $ 14.06 $ 13.08
[1] As of September 30, 2023 and September 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 $6.2 million as of September 30, 2023 and $7.5 million as of December 31, 2022.
[4] Includes $4.1 million and $3.8 million of deferred financing costs as of September 30, 2023 and December 31, 2022. Refer to Note 5 for more details.
[5] Includes $4.1 million and $3.2 million of deferred financing costs as of September 30, 2023 and December 31, 2022. Refer to Note 5 for more details.
[6] Includes the short-term portion of lease liabilities of $2.2 million as of both September 30, 2023 and December 31, 2022. Refer to Note 6 for more details.
v3.23.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Sep. 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 28,965,885 28,663,827
Treasury stock,shares 5,602,154 5,602,154
Loan collateral in process of foreclosure, financed sales collateral to third parties $ 6.2 $ 7.5
Short term lease liabilities 2.2 2.2
Deposits [Member]    
Deferred financing costs 4.1 3.8
Long-Term Debt [Member]    
Deferred financing costs $ 4.1 $ 3.2
v3.23.3
Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]        
Interest and fees on loans $ 64,608 $ 50,955 $ 179,407 $ 140,759
Interest and dividends on investment securities 1,278 739 4,048 1,349
Total interest income [1] 65,886 51,694 183,455 142,108
Interest on deposits 13,432 6,240 33,360 15,306
Interest on long-term debt 2,901 3,414 8,694 9,952
Interest on short-term borrowings 769 0 2,325 0
Total interest expense 17,102 9,654 44,379 25,258
Net interest income (loss) 48,784 42,040 139,076 116,850
Provision for credit losses 14,532 10,047 27,045 21,046
Net interest income after provision for credit losses 34,252 31,993 112,031 95,804
Other income (loss)        
Gain on sale of loans and taxi medallions 1,417 518 4,578 5,061
Gain (loss) on equity investments 2,180 (1,123) 2,189 2,985
Write-down of loan collateral in process of foreclosure (30) (94) (303) (608)
Other income 739 468 1,868 1,217
Total other income (loss), net 4,306 (231) 8,332 8,655
Other expenses        
Salaries and employee benefits 9,630 8,411 27,805 23,709
Loan servicing fees 2,501 2,159 7,084 6,231
Collection costs 1,583 1,593 4,729 3,935
Professional fees 1,148 3,722 4,223 12,106
Rent expense 629 629 1,855 1,764
Regulatory fees 1,021 610 2,484 1,621
Amortization of intangible assets 361 359 1,084 1,082
Other expenses 2,216 1,926 7,220 5,807
Total other expenses 19,089 19,409 56,484 56,255
Income before income taxes 19,469 12,353 63,879 48,204
Income tax provision 6,727 3,205 18,582 12,892
Net income after taxes 12,742 9,148 45,297 35,312
Less: income attributable to the non-controlling interest 1,512 1,512 4,536 4,535
Total net income attributable to Medallion Financial Corp. $ 11,230 $ 7,636 $ 40,761 $ 30,777
Basic net income per share $ 0.5 $ 0.33 $ 1.81 $ 1.28
Diluted net income per share $ 0.48 $ 0.32 $ 1.77 $ 1.26
Weighted average common shares outstanding        
Basic 22,596,982 23,154,775 22,469,968 24,020,058
Diluted 23,392,901 23,510,645 23,067,944 24,332,776
[1] Included in interest income is $0.4 million and $1.1 million of paid-in-kind interest for the three and nine months ended September 30, 2023 and $0.2 million and $0.5 million for the three and nine months ended September 30, 2022.
v3.23.3
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]        
Interest paid-in-kind $ 0.4 $ 0.2 $ 1.1 $ 0.5
v3.23.3
Consolidated Statements of Other Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 12,742 $ 9,148 $ 45,297 $ 35,312
Other comprehensive loss, net of tax (1,211) (1,461) (1,611) (4,596)
Total comprehensive income 11,531 7,687 43,686 30,716
Less comprehensive income attributable to the non-controlling interest 1,512 1,512 4,536 4,535
Total comprehensive income attributable to Medallion Financial Corp. $ 10,019 $ 6,175 $ 39,150 $ 26,181
v3.23.3
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)                  
Dividends 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 35,312                              
Other comprehensive loss, net of tax (4,596)                              
Ending balance at Sep. 30, 2022 359,889 $ 285 282,681 $ (43,741) 55,438 (3,562) 291,101 68,788                
Ending balance, shares at Sep. 30, 2022   28,529,993   (5,344,923)                        
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)                  
Dividends 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)                        
Net income 9,148       7,636   7,636 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 1,034   1,034       1,034                  
Forfeiture of restricted stock, net, shares   (380)                            
Purchase of common stock (in Shares)       (1,053,870)                        
Purchase of common stock (8,231)     $ (8,231)     (8,231)                  
Dividends paid on common stock (1,930)       (1,930)   (1,930)                  
Other comprehensive loss, net of tax (1,461)         (1,461) (1,461)                  
Ending balance at Sep. 30, 2022 359,889 $ 285 282,681 $ (43,741) 55,438 (3,562) 291,101 68,788                
Ending balance, shares at Sep. 30, 2022   28,529,993   (5,344,923)                        
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                            
Dividends 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 $ 45,297                              
Other comprehensive loss, net of tax (1,611)                              
Net change in unrealized gains on investments, net of tax (1,600)                              
Ending balance at Sep. 30, 2023 $ 397,262 $ 290 286,782 $ (45,538) 91,900 (4,960) 328,474 68,788                
Ending balance, shares at Sep. 30, 2023 23,363,731 28,965,885   (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   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                            
Dividends paid on common stock $ (1,867)       (1,867)   (1,867)                  
Other comprehensive loss, net of tax (906)         (906) (906)                  
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   28,947,171   (5,602,154)                        
Net income 12,742       11,230   11,230 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 1,232   1,232       1,232                  
Forfeiture of restricted stock, net, shares   (126)                            
Exercise of stock options, value $ 116 $ 1 115       116                  
Exercise of stock options, shares 18,840 [1] 18,840                            
Dividends paid on common stock $ (1,869)       (1,869)   (1,869)                  
Other comprehensive loss, net of tax (1,211)         (1,211) (1,211)                  
Net change in unrealized gains on investments, net of tax (1,200)                              
Ending balance at Sep. 30, 2023 $ 397,262 $ 290 $ 286,782 $ (45,538) $ 91,900 $ (4,960) $ 328,474 $ 68,788                
Ending balance, shares at Sep. 30, 2023 23,363,731 28,965,885   (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 $0.1 million for the three and nine months ended September 30, 2023 and was $0.1 million for the year ended December 31, 2022.
v3.23.3
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]            
Dividends payable, amount per share $ 0.08 $ 0.08 $ 0.08 $ 0.08 $ 0.08 $ 0.08
v3.23.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 45,297 $ 35,312
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for credit losses 27,045 21,046
Paid-in-kind interest income (1,086) (528)
Depreciation and amortization 3,878 4,408
Amortization of origination fees, net 7,279 7,184
Increase in deferred and other tax liabilities, net 5,116 5,335
Net change in value of loan collateral in process of foreclosure 6,673 3,806
Net realized loss (gains) on sale of investments 3,136 (2,985)
Stock-based compensation expense 3,482 2,495
Increase in accrued interest receivable (980) (1,338)
Increase in other assets (13,033) (5,641)
Increase in accounts payable and accrued expenses 7,500 9,858
(Decrease) increase in accrued interest payable (166) 37
Net cash provided by operating activities 94,141 78,989
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (805,048) (806,788)
Proceeds from principal receipts, sales, and maturities of loans 471,917 414,760
Purchases of investments (10,169) (18,658)
Proceeds from principal receipts, sales, and maturities of investments 467 11,970
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 14,607 17,952
Net cash used for investing activities (328,226) (380,764)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 683,568 676,264
Repayments of time deposits and funds borrowed (417,084) (371,800)
Cash dividend paid on common stock (5,459) (5,766)
Distributions to non-controlling interests (4,536) (4,535)
Payment of withholding taxes on net settlement of vested stock (768) 0
Treasury stock repurchased 0 (18,822)
Proceeds from the exercise of stock options 408 152
Net cash provided by financing activities 256,129 275,493
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 22,044 (26,282)
Cash, and cash equivalents beginning of period [1] 105,598 124,484
Cash and cash equivalents, end of period (1) [1] 127,642 98,202
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 42,054 23,177
Cash paid during the period for income taxes 12,822 5,786
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 15,384 $ 8,659
[1] Includes federal funds sold.
v3.23.3
Organization of Medallion Financial Corp. and its Subsidiaries
 9 Months Ended
Sep. 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 taxi medallion and commercial loans. MCI, MFC, and FSVC, as SBICs, are regulated by the Small Business Administration, or SBA. MCI and FSVC are financed in part by the SBA.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $34.0 million at September 30, 2023, are comprised solely of a subordinated note from the Company and 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.
v3.23.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 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.

The Company’s investment in the Bank is consolidated for financial statement purposes. In the notes to the consolidated financial statements included in its Annual Report on Form 10-K, the Company presents its investment in the Bank. Beginning with its financial statements for the year ended December 31, 2022, the presentation was revised to include the preferred equity and applicable non-controlling interest in the Bank to provide a fuller scope of the underlying investment.As the Company’s investment in the Bank is eliminated in consolidation this change in presentation did not have an impact on the Company’s consolidated financial statements.

 

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. As of September 30, 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 $10.5 million and $10.3 million at September 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 September 30, 2023, a cumulative impairment of $3.4 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both September 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 September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

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

 

$

(54

)

 

$

(77

)

 

$

(54

)

 

$

(229

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(54

)

 

$

(77

)

 

$

(54

)

 

$

(229

)

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 September 30, 2023 and December 31, 2022, and less than $0.1 million was amortized to interest income for each of the three and nine months ended September 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 September 30, 2023 and December 31, 2022, net loan origination costs were $41.0 million and $34.9 million. Net amortization to income was $2.2 million and $6.5 million for the three and nine months ended September 30, 2023 and was $2.3 million and $6.8 million for the three and nine months ended September 30, 2022.

 

Interest income is recorded on the accrual basis. Taxi 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 is 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 $7.0 million at September 30, 2023, or 0.32% 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 first quarter of 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 taxi 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 taxi 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 taxi 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 at September 30, 2023 and $19.5 million at 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 September 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 taxi 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 taxi 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 September 30, 2023 and December 31, 2022, the Company had goodwill of $150.8 million, all of which related to the Bank. As of September 30, 2023 and December 31, 2022, the Company had intangible assets of $21.0 million and $22.0 million. Amortization expense on the intangible assets for the three and nine months ended September 30, 2023 and 2022 was $0.4 million and $1.1 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)

 

September 30, 2023

 

 

December 31, 2022

 

Brand-related intellectual property

 

$

15,950

 

 

$

16,775

 

Home improvement contractor relationships

 

 

5,002

 

 

 

5,260

 

Total intangible assets

 

$

20,952

 

 

$

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 and $0.3 million for the three and nine months ended September 30, 2023 and $0.1 million and $0.2 million for the three and nine months ended September 30, 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 $2.3 million for the three and nine months ended September 30, 2023 and was $0.7 million and $2.0 million for the three and nine months ended September 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 $8.2 million and $7.0 million as of September 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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income available to common stockholders

 

$

11,230

 

 

$

7,636

 

 

$

40,761

 

 

$

30,777

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,596,982

 

 

 

23,154,775

 

 

 

22,469,968

 

 

 

24,020,058

 

Effect of restricted stock grants

 

 

481,197

 

 

 

307,318

 

 

 

413,682

 

 

 

238,621

 

Effect of dilutive stock options

 

 

183,274

 

 

 

48,552

 

 

 

125,319

 

 

 

74,097

 

Effect of performance share units

 

 

131,448

 

 

 

—

 

 

 

58,975

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,392,901

 

 

 

23,510,645

 

 

 

23,067,944

 

 

 

24,332,776

 

Basic net income per share

 

$

0.50

 

 

$

0.33

 

 

$

1.81

 

 

$

1.28

 

Diluted net income per share

 

 

0.48

 

 

 

0.32

 

 

 

1.77

 

 

 

1.26

 

Potentially dilutive common shares excluded from the above calculations aggregated 9,000 and 657,579 shares as of September 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 nine months ended September 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 83,158 and 129,638 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.2 million and $3.5 million, or $0.05 and $0.15 per share, for the three and nine months ended September 30, 2023, and $1.0 million and $2.5 million, or $0.04 and $0.10 per diluted common share, for the three and nine months ended September 30, 2022, of non-cash stock-based compensation expense related to the grants. As of September 30, 2023, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $5.4 million, which is expected to be recognized over the next 10 quarters.

 

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could preclude the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of September 30, 2023, the Bank’s Tier 1 leverage ratio was 16.1%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

September 30, 2023

 

 

December 31, 2022

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

283,342

 

 

$

242,049

 

Tier 1 capital

 

 

 

 

 

 

 

 

352,130

 

 

 

310,837

 

Total capital

 

 

 

 

 

 

 

 

379,754

 

 

 

334,913

 

Average assets

 

 

 

 

 

 

 

 

2,190,234

 

 

 

1,917,904

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,162,430

 

 

 

1,888,530

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.1

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.1

 

 

 

12.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.3

 

 

 

16.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.6

 

 

 

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 September 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 September 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.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. The amendments in this update seek to clarify or improve disclosure and presentation requirements. 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.
v3.23.3
Investment Securities
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022:

September 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

 

$

45,300

 

 

$

—

 

 

$

(6,344

)

 

$

38,956

 

State and municipalities

 

 

13,733

 

 

 

12

 

 

 

(1,650

)

 

 

12,095

 

Agency bonds

 

 

2,189

 

 

 

—

 

 

 

(65

)

 

 

2,124

 

Total

 

$

61,222

 

 

$

12

 

 

$

(8,059

)

 

$

53,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 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.

September 30, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

2,429

 

 

$

2,341

 

Due after one year through five years

 

 

7,373

 

 

 

6,970

 

Due after five years through ten years

 

 

8,938

 

 

 

7,558

 

Due after ten years

 

 

42,482

 

 

 

36,306

 

Total

 

$

61,222

 

 

$

53,175

 

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

 

September 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

 

$

(207

)

 

$

5,822

 

 

$

(6,137

)

 

$

33,134

 

State and municipalities

 

 

(286

)

 

 

4,757

 

 

 

(1,364

)

 

 

7,295

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(65

)

 

 

2,124

 

Total

 

$

(493

)

 

$

10,579

 

 

$

(7,566

)

 

$

42,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 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 unlikely that we will be required to sell these securities before recovery of our amortized cost.
v3.23.3
Loans and Allowance for Credit Losses
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022.

 

 

September 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,346,440

 

 

 

61

%

 

$

1,183,512

 

 

 

62

%

Home improvement

 

 

750,508

 

 

 

34

 

 

 

626,399

 

 

 

33

 

Commercial

 

 

100,322

 

 

 

5

 

 

 

92,899

 

 

 

5

 

Medallion

 

 

3,927

 

 

*

 

 

 

13,571

 

 

 

1

 

Strategic partnership

 

 

1,841

 

 

*

 

 

 

572

 

 

*

 

Total gross loans

 

 

2,203,038

 

 

 

100

%

 

 

1,916,953

 

 

 

100

%

Allowance for credit losses

 

 

(79,133

)

 

 

 

 

 

(63,845

)

 

 

 

Total net loans

 

$

2,123,905

 

 

 

 

 

$

1,853,108

 

 

 

 

(*) Less than 1%.

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

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Loan originations

 

 

92,603

 

 

 

79,333

 

 

 

8,900

 

 

 

100

 

 

 

36,457

 

 

 

217,393

 

Principal payments, sales, maturities, and recoveries

 

 

(61,885

)

 

 

(53,095

)

 

 

(1,657

)

 

 

(281

)

 

 

(35,947

)

 

 

(152,865

)

Charge-offs

 

 

(11,684

)

 

 

(3,890

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15,574

)

Transfer to loan collateral in process of foreclosure, net

 

 

(4,730

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,730

)

Amortization of origination costs

 

 

(3,259

)

 

 

647

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,612

)

FASB origination costs, net

 

 

4,281

 

 

 

(955

)

 

 

—

 

 

 

660

 

 

 

—

 

 

 

3,986

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

442

 

 

 

—

 

 

 

—

 

 

 

442

 

Gross loans – September 30, 2023

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 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

 

 

384,291

 

 

 

291,349

 

 

 

16,650

 

 

 

2,023

 

 

 

96,637

 

 

 

790,950

 

Principal payments, sales, maturities, and recoveries

 

 

(181,565

)

 

 

(158,300

)

 

 

(9,413

)

 

 

(6,207

)

 

 

(95,368

)

 

 

(450,853

)

Charge-offs

 

 

(33,440

)

 

 

(8,379

)

 

 

(900

)

 

 

(3,814

)

 

 

—

 

 

 

(46,533

)

Transfer to loan collateral in process of foreclosure, net

 

 

(13,078

)

 

 

—

 

 

 

—

 

 

 

(2,306

)

 

 

—

 

 

 

(15,384

)

Amortization of origination costs

 

 

(9,177

)

 

 

1,898

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,279

)

FASB origination costs, net

 

 

15,897

 

 

 

(2,459

)

 

 

—

 

 

 

660

 

 

 

—

 

 

 

14,098

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,086

 

 

 

—

 

 

 

—

 

 

 

1,086

 

Gross loans – September 30, 2023

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Loan originations

 

 

149,151

 

 

 

100,451

 

 

 

4,500

 

 

 

152

 

 

 

19,428

 

 

 

273,682

 

Principal payments, sales, maturities, and recoveries

 

 

(66,338

)

 

 

(49,630

)

 

 

(4,017

)

 

 

(331

)

 

 

(19,248

)

 

 

(139,564

)

Charge-offs

 

 

(7,534

)

 

 

(1,780

)

 

 

(3,857

)

 

 

—

 

 

 

—

 

 

 

(13,171

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,862

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,862

)

Amortization of origination costs

 

 

(3,008

)

 

 

494

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,514

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

5,800

 

 

 

(513

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,287

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

181

 

 

 

—

 

 

 

—

 

 

 

181

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

433,764

 

 

 

295,443

 

 

 

28,172

 

 

 

396

 

 

 

34,267

 

 

 

792,042

 

Principal payments, sales, maturities, and recoveries

 

 

(204,568

)

 

 

(152,800

)

 

 

(6,220

)

 

 

(126

)

 

 

(33,584

)

 

 

(397,298

)

Charge-offs

 

 

(17,675

)

 

 

(3,948

)

 

 

(5,441

)

 

 

(75

)

 

 

—

 

 

 

(27,139

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,391

)

 

 

—

 

 

 

—

 

 

 

(268

)

 

 

—

 

 

 

(8,659

)

Amortization of origination costs

 

 

(8,378

)

 

 

1,194

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,184

)

Amortization of loan premium

 

 

(180

)

 

 

(270

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(450

)

FASB origination costs, net

 

 

15,927

 

 

 

(1,181

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,746

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

528

 

 

 

—

 

 

 

—

 

 

 

528

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

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

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Allowance for credit losses – beginning balance (1)

 

$

74,971

 

 

$

59,152

 

 

$

63,845

 

 

$

50,166

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

—

 

 

 

13,712

 

 

 

—

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(11,684

)

 

 

(7,534

)

 

 

(33,440

)

 

 

(17,675

)

Home improvement

 

 

(3,890

)

 

 

(1,780

)

 

 

(8,379

)

 

 

(3,948

)

Commercial

 

 

—

 

 

 

(3,857

)

 

 

(900

)

 

 

(5,441

)

Medallion

 

 

—

 

 

 

—

 

 

 

(3,814

)

 

 

(75

)

Total charge-offs

 

 

(15,574

)

 

 

(13,171

)

 

 

(46,533

)

 

 

(27,139

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

2,651

 

 

 

3,348

 

 

 

8,705

 

 

 

10,473

 

Home improvement

 

 

882

 

 

 

713

 

 

 

2,141

 

 

 

1,857

 

Commercial

 

 

—

 

 

 

—

 

 

 

10

 

 

 

47

 

Medallion

 

 

1,671

 

 

 

1,446

 

 

 

10,208

 

 

 

5,085

 

Total recoveries

 

 

5,204

 

 

 

5,507

 

 

 

21,064

 

 

 

17,462

 

Net charge-offs (2)

 

 

(10,370

)

 

 

(7,664

)

 

 

(25,469

)

 

 

(9,677

)

Provision for credit losses

 

 

14,532

 

 

 

10,047

 

 

 

27,045

 

 

 

21,046

 

Allowance for credit losses – ending balance (3)

 

$

79,133

 

 

$

61,535

 

 

$

79,133

 

 

$

61,535

 
(1)
Represents allowance prior to the adoption of ASU 2016-13.
(2)
As of September 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $201.7 million, some of which may represent collection opportunities for the Company.
(3)
As of September 30, 2023 and September 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 September 30, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

890

 

 

$

4,587

 

 

$

2,250

 

 

$

1,175

 

 

$

1,273

 

 

$

1,509

 

 

$

11,684

 

Home improvement

 

 

964

 

 

 

1,783

 

 

 

733

 

 

 

158

 

 

 

106

 

 

 

146

 

 

 

3,890

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,854

 

 

$

6,370

 

 

$

2,983

 

 

$

1,333

 

 

$

1,379

 

 

$

1,655

 

 

$

15,574

 

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

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

934

 

 

$

11,763

 

 

$

7,664

 

 

$

3,631

 

 

$

3,745

 

 

$

5,703

 

 

$

33,440

 

Home improvement

 

 

1,003

 

 

 

4,235

 

 

 

1,834

 

 

 

459

 

 

 

328

 

 

 

520

 

 

 

8,379

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,814

 

 

 

3,814

 

Total

 

$

1,937

 

 

$

15,998

 

 

$

9,498

 

 

$

4,090

 

 

$

4,973

 

 

$

10,037

 

 

$

46,533

 

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

September 30, 2023
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

57,032

 

 

 

72

%

 

 

4.24

%

 

 

276.21

%

Home improvement

 

 

17,300

 

 

 

22

 

 

 

2.31

 

 

 

83.79

 

Commercial

 

 

3,114

 

 

 

4

 

 

 

3.10

 

 

 

15.08

 

Medallion

 

 

1,687

 

 

 

2

 

 

 

42.97

 

 

 

8.17

 

Total

 

$

79,133

 

 

 

100

%

 

 

3.59

%

 

 

383.25

%

 

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)

 

September 30, 2023

 

 

December 31, 2022

 

Total nonaccrual loans

 

$

20,648

 

 

$

32,133

 

Interest foregone quarter to date

 

 

190

 

 

 

231

 

Amount of foregone interest applied to principal in the quarter

 

 

49

 

 

 

94

 

Interest foregone year to date

 

 

618

 

 

 

1,267

 

Amount of foregone interest applied to principal for the year

 

 

183

 

 

 

375

 

Interest foregone life-to-date

 

 

1,837

 

 

 

2,419

 

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

 

 

839

 

 

 

1,204

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

0.9

%

 

 

1.7

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

383.2

%

 

 

198.7

%

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

September 30, 2023
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,339,934

 

 

$

6,506

 

 

$

1,346,440

 

 

 

0.48

%

Home improvement

 

 

749,528

 

 

 

980

 

 

 

750,508

 

 

 

0.13

 

Commercial

 

 

91,087

 

 

 

9,235

 

 

 

100,322

 

 

 

9.21

 

Medallion

 

 

—

 

 

 

3,927

 

 

 

3,927

 

 

 

100.00

 

Strategic partnership

 

 

1,841

 

 

 

—

 

 

 

1,841

 

 

 

—

 

Total

 

$

2,182,390

 

 

$

20,648

 

 

$

2,203,038

 

 

 

0.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

September 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

 

$

6,506

 

 

$

6,506

 

 

$

276

 

 

$

9,666

 

 

$

9,666

 

 

$

343

 

Home improvement

 

 

980

 

 

 

980

 

 

 

23

 

 

 

579

 

 

 

579

 

 

 

10

 

Commercial

 

 

9,235

 

 

 

9,344

 

 

 

1,121

 

 

 

8,734

 

 

 

8,823

 

 

 

963

 

Medallion

 

 

3,927

 

 

 

4,657

 

 

 

1,687

 

 

 

13,571

 

 

 

14,686

 

 

 

9,490

 

Total nonperforming loans with an allowance

 

$

20,648

 

 

$

21,487

 

 

$

3,107

 

 

$

32,550

 

 

$

33,754

 

 

$

10,806

 

 

 

Three Months Ended September 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,361

 

 

$

7

 

 

$

6,903

 

 

$

114

 

Home improvement

 

 

980

 

 

 

2

 

 

 

491

 

 

 

—

 

Commercial

 

 

3,085

 

 

 

—

 

 

 

13,577

 

 

 

—

 

Medallion

 

 

4,571

 

 

 

—

 

 

 

16,128

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

14,997

 

 

$

9

 

 

$

37,099

 

 

$

114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,300

 

 

$

10

 

 

$

6,895

 

 

$

303

 

Home improvement

 

 

865

 

 

 

2

 

 

 

459

 

 

 

—

 

Commercial

 

 

5,229

 

 

 

—

 

 

 

13,494

 

 

 

—

 

Medallion

 

 

4,795

 

 

 

—

 

 

 

16,326

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

17,189

 

 

$

12

 

 

$

37,174

 

 

$

303

 

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

September 30, 2023

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

33,187

 

 

$

12,328

 

 

$

5,913

 

 

$

51,428

 

 

$

1,250,877

 

 

$

1,302,305

 

 

$

—

 

Home improvement

 

 

4,177

 

 

 

1,613

 

 

 

980

 

 

 

6,770

 

 

 

746,777

 

 

 

753,547

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

102,183

 

 

 

102,257

 

 

 

—

 

Medallion

 

 

—

 

 

 

16

 

 

 

—

 

 

 

16

 

 

 

3,911

 

 

 

3,927

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,841

 

 

 

1,841

 

 

 

—

 

Total

 

$

37,364

 

 

$

13,957

 

 

$

6,967

 

 

$

58,288

 

 

$

2,105,589

 

 

$

2,163,877

 

 

$

—

 
(1)
Excludes $41.0 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 taxi medallion loans was approximately 189% and 339% as of September 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 nine months ended September 30, 2023.

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

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

34

 

 

$

549

 

 

$

549

 

Medallion loans

 

 

—

 

 

 

—

 

 

 

—

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

56

 

 

$

825

 

 

$

825

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 

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

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

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

Transfer from loans, net

 

 

4,730

 

 

 

—

 

 

 

4,730

 

Sales

 

 

(1,080

)

 

 

(117

)

 

 

(1,197

)

Cash payments received

 

 

(163

)

 

 

(1,939

)

 

 

(2,102

)

Collateral valuation adjustments

 

 

(2,281

)

 

 

(30

)

 

 

(2,311

)

Loan collateral in process of foreclosure – September 30, 2023

 

$

1,935

 

 

$

13,988

 

 

$

15,923

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 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

 

 

13,078

 

 

 

2,306

 

 

 

15,384

 

Sales

 

 

(5,858

)

 

 

(685

)

 

 

(6,543

)

Cash payments received

 

 

(291

)

 

 

(7,773

)

 

 

(8,064

)

Collateral valuation adjustments

 

 

(6,370

)

 

 

(303

)

 

 

(6,673

)

Loan collateral in process of foreclosure – September 30, 2023

 

$

1,935

 

 

$

13,988

 

 

$

15,923

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

Transfer from loans, net

 

 

2,862

 

 

 

—

 

 

 

2,862

 

Sales

 

 

(1,399

)

 

 

(544

)

 

 

(1,943

)

Cash payments received

 

 

—

 

 

 

(2,243

)

 

 

(2,243

)

Collateral valuation adjustments

 

 

(1,225

)

 

 

(94

)

 

 

(1,319

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

8,391

 

 

 

268

 

 

 

8,659

 

Sales

 

 

(5,797

)

 

 

(2,659

)

 

 

(8,456

)

Cash payments received

 

 

—

 

 

 

(9,496

)

 

 

(9,496

)

Collateral valuation adjustments

 

 

(3,198

)

 

 

(608

)

 

 

(3,806

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

As of September 30, 2023, taxi medallion loans in the process of foreclosure included 429 taxi medallions in the New York City market, 230 taxi medallions in the Chicago market, 32 taxi medallions in the Newark market, and 31 taxi medallions in other markets.
v3.23.3
Funds Borrowed
 9 Months Ended
Sep. 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 September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

September 30, 2023 (1)

 

 

December 31, 2022(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

718,976

 

 

$

568,943

 

 

$

285,870

 

 

$

167,466

 

 

$

116,424

 

 

$

—

 

 

$

1,857,679

 

 

$

1,609,672

 

 

 

2.96

%

Privately placed notes

 

 

3,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

92,750

 

 

 

—

 

 

 

127,000

 

 

 

121,000

 

 

 

7.99

 

SBA debentures and borrowings

 

 

5,489

 

 

 

14,000

 

 

 

14,000

 

 

 

2,000

 

 

 

1,250

 

 

 

34,000

 

 

 

70,739

 

 

 

68,512

 

 

 

3.52

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

7.79

 

Federal reserve and other borrowings

 

 

10,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

 

 

—

 

 

 

5.85

 

Total

 

$

737,465

 

 

$

582,943

 

 

$

331,120

 

 

$

169,466

 

 

$

210,424

 

 

$

67,000

 

 

$

2,098,418

 

 

$

1,832,184

 

 

 

3.35

%
(1)
Excludes deferred financing costs of $8.2 million and $7.0 million as of September 30, 2023 and December 31, 2022.
(2)
Weighted average contractual rate as of September 30, 2023.
(3)
Balance excludes $1.5 million and $1.3 million of strategic partner reserve deposits as of September 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 September 30, 2023 and December 31, 2022, the Bank had $12.1 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 September 30, 2023, the Bank had $18.0 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of September 30, 2023.

(Dollars in thousands)

 

September 30, 2023

 

Three months or less

 

$

204,577

 

Over three months through six months

 

 

157,064

 

Over six months through one year

 

 

357,335

 

Over one year

 

 

1,140,203

 

Total deposits

 

$

1,859,179

 

(B) FEDERAL RESERVE DISCOUNT WINDOW AND OTHER BORROWINGS

In March 2023, the Bank established a discount window line of credit at the Federal Reserve. As of September 30, 2023, the Bank had approximately $37.0 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 approximately $37.0 million in secured borrowing capacity, of which none was utilized as of September 30, 2023.

The Bank has borrowings arrangements with several commercial banks. These agreements are accommodations that can be terminated at any time, for any reason, and allow the Bank to borrow up to $75.0 million. As of September 30, 2023, $10.0 million was outstanding on these lines, with $65.0 million available.

(C) PRIVATELY PLACED NOTES

In September 2023, the Company completed a private placement to certain institutional investors of $39.0 million aggregate principal amount of 9.25% unsecured senior notes due September 2028, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including the repurchase of $33.0 million of the 8.25% notes issued in March 2019 with a maturity date of March 2024 described below.

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. As described above, in September 2023, the Company repurchased and cancelled $33.0 million of these notes, leaving $3.0 million principal amount remaining outstanding as of September 30, 2023.

(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 September 30, 2023, $70.7 million was outstanding, including $0.5 million under the SBA Note.

On July 10, 2023, MCI accepted a commitment from the SBA for $20.0 million in debenture financing. In connection with the commitment, MCI paid the SBA a leverage fee of $0.2 million, with an additional $0.4 million fee to be paid pro-rata as MCI draws under the commitment. As of September 30, 2023, $4.8 million of the commitment had been drawn, and $10.3 million was drawable, with the balance of $5.0 million drawable upon the infusion of $2.5 million of capital from either the capitalization of retained earnings or a capital infusion into MCI from the Company.

(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 September 30, 2023, $33.0 million was outstanding on the preferred securities.

(F) COVENANT COMPLIANCE

Certain of the Company's debt agreements contain financial covenants that require the Company to maintain certain financial ratios and minimum tangible net worth. As of September 30, 2023, the Company was in compliance with all such covenants.
v3.23.3
Leases
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease costs

 

$

597

 

 

$

580

 

 

$

1,792

 

 

$

1,759

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

629

 

 

 

684

 

 

 

1,855

 

 

 

1,764

 

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

 

 

(56

)

 

 

(47

)

 

 

(167

)

 

 

(133

)

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

(Dollars in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

Operating lease right-of-use assets

 

$

8,505

 

 

$

9,723

 

Other current liabilities

 

 

2,193

 

 

 

2,239

 

Operating lease liabilities

 

 

7,075

 

 

 

8,408

 

Total operating lease liabilities

 

 

9,268

 

 

 

10,647

 

Weighted average remaining lease term

 

5.0 years

 

 

5.5 years

 

Weighted average discount rate

 

 

5.59

%

 

 

5.66

%

 

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

(Dollars in thousands)

 

 

 

Remainder of 2023

 

$

629

 

2024

 

 

2,508

 

2025

 

 

2,492

 

2026

 

 

2,440

 

2027

 

 

1,213

 

Thereafter

 

 

1,290

 

Total lease payments

 

 

10,572

 

Less imputed interest

 

 

1,304

 

Total operating lease liabilities

 

$

9,268

 
v3.23.3
Income Taxes
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022.

(Dollars in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

Goodwill and other intangibles

 

$

43,125

 

 

$

43,397

 

Provision for credit losses

 

 

(11,491

)

 

 

(9,945

)

Net operating loss carryforwards (1)

 

 

(3,804

)

 

 

(3,730

)

Accrued expenses, compensation, and other assets

 

 

(6,038

)

 

 

(3,819

)

Unrealized gains on other investments

 

 

(2,094

)

 

 

(1,445

)

Total deferred tax liability

 

 

19,698

 

 

 

24,458

 

Valuation allowance

 

 

3,433

 

 

 

2,295

 

Deferred tax liability, net

 

$

23,131

 

 

$

26,753

 
(1)
As of September 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 $0.4 million as of September 30, 2023.

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

5,893

 

 

$

693

 

 

$

12,349

 

 

$

2,181

 

State

 

 

1,753

 

 

 

340

 

 

 

3,717

 

 

 

1,109

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(689

)

 

 

2,081

 

 

 

1,761

 

 

 

7,679

 

State

 

 

(230

)

 

 

91

 

 

 

755

 

 

 

1,923

 

Net provision for income taxes

 

$

6,727

 

 

$

3,205

 

 

$

18,582

 

 

$

12,892

 

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Statutory Federal income tax provision at 21%

 

$

4,088

 

 

$

2,613

 

 

$

13,414

 

 

$

10,142

 

State and local income taxes, net of federal income tax

 

 

800

 

 

 

511

 

 

 

2,624

 

 

 

1,984

 

Non-deductible expenses

 

 

624

 

 

 

410

 

 

 

1,701

 

 

 

1,484

 

Deferred tax asset valuation allowance

 

 

1,138

 

 

 

—

 

 

 

1,138

 

 

 

—

 

Other

 

 

77

 

 

 

(329

)

 

 

(295

)

 

 

(718

)

Total income tax provision

 

$

6,727

 

 

$

3,205

 

 

$

18,582

 

 

$

12,892

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of September 30, 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 2020 through the present are the more significant filings that are open for examination.
v3.23.3
Stock Options and Restricted Stock
 9 Months Ended
Sep. 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, performance share 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 2,317,228 were issuable as of September 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’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 September 30, 2023, 965,146 options on the Company’s common stock were outstanding under the Company’s plans, of which 702,886 options were vested. Additionally, as of September 30, 2023, there were 917,608 unvested restricted shares, 296,444 unvested performance share units, 83,944 unvested restricted stock units, and 158,937 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 nine months ended September 30, 2023 and 2022.

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, second, and third 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Exercised (1)

 

 

(18,840

)

 

 

4.89 - 7.25

 

 

 

6.17

 

Outstanding at September 30, 2023 (2)

 

 

965,146

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options vested at:

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

548,426

 

 

$

2.14 - 9.38

 

 

$

6.51

 

September 30, 2023

 

 

702,886

 

 

$

2.14 - 9.38

 

 

$

6.51

 
(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 $0.1 million for the three and nine months ended September 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 September 30, 2023 and the related exercise price of the underlying options, was $0.5 million for outstanding options and $0.4 million for vested options as of September 30, 2023. The remaining contractual life was 6.4 years for outstanding options and 6.1 years for vested options at September 30, 2023.

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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2023

 

 

262,260

 

 

$

4.89 - 7.25

 

 

$

6.49

 

The intrinsic value of the options vested was $0.4 million for the nine months ended September 30, 2023.

 

The following table presents the activity for the restricted stock programs for the 2023 first, second, and third 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 (1)

 

 

(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

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2023 (2)

 

 

917,734

 

 

$

4.89 - 8.40

 

 

$

7.59

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(126

)

 

 

 

6.86

 

 

 

7.59

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2023

 

 

917,608

 

 

$

4.89 - 8.40

 

 

$

7.59

 
(1)
The aggregate fair value of the restricted stock vested was $2.1 million for the nine months ended September 30, 2023 and was $1.0 million for the year ended December 31, 2022.
(2)
The aggregate fair value of the restricted stock was $6.4 million as of September 30, 2023. The remaining vesting period was 2.4 years at September 30, 2023.

During the three and nine months ended September 30, 2023, the Company granted 83,158 restricted stock units, or RSUs, with a vesting date of June 22, 2024 and a grant price of $9.14 and during the year ended December 31, 2022, granted 129,638 RSUs which vested on June 14, 2023 and a grant price of $6.75. For the RSUs granted in 2023 and 2022, unit holders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of September 30, 2023, there were 242,881 RSUs outstanding, all of which 158,937 had previously vested.

During the nine months ended September 30, 2023, the Company granted 296,444 PSUs at a grant price of $6.08. No PSUs were granted during the three months ended September 30, 2023. 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.
v3.23.3
Segment Reporting
 9 Months Ended
Sep. 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 taxi medallion. The recreation and home improvement lending segments are operated by the Bank and loans are made to borrowers residing nationwide. 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 58% and 20% of the segment portfolio, with no other product lines exceeding 10%, as of September 30, 2023. 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 September 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 40%, 19%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of September 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 September 30, 2023. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, wholesale trade, construction, and administrative and support services making up 43%, 16%, 15%, and 10%, of the loans outstanding as of September 30, 2023, with no other product lines exceeding 10%. The commercial lending segment invests across the United States with concentrations in California, Minnesota, Illinois, and Texas each having 25%, 14%, 11%, and 10% of the segment portfolio, and no other states having a concentration greater than 10%. The taxi 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 September 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 nine months ended September 30, 2023.

Three Months Ended September 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

44,341

 

 

$

16,578

 

 

$

3,248

 

 

$

342

 

 

$

1,377

 

 

$

65,886

 

Total interest expense

 

 

8,770

 

 

 

5,187

 

 

 

921

 

 

 

(69

)

 

 

2,293

 

 

 

17,102

 

Net interest income (loss)

 

 

35,571

 

 

 

11,391

 

 

 

2,327

 

 

 

411

 

 

 

(916

)

 

 

48,784

 

Provision (benefit) for credit losses

 

 

11,877

 

 

 

3,860

 

 

 

621

 

 

 

(1,772

)

 

 

(54

)

 

 

14,532

 

Net interest income (loss) after loss provision

 

 

23,694

 

 

 

7,531

 

 

 

1,706

 

 

 

2,183

 

 

 

(862

)

 

 

34,252

 

Other income

 

 

128

 

 

 

1

 

 

 

2,322

 

 

 

1,404

 

 

 

451

 

 

 

4,306

 

Other expenses

 

 

(8,637

)

 

 

(4,433

)

 

 

(1,129

)

 

 

(1,421

)

 

 

(3,469

)

 

 

(19,089

)

Net income (loss) before taxes

 

 

15,185

 

 

 

3,099

 

 

 

2,899

 

 

 

2,166

 

 

 

(3,880

)

 

 

19,469

 

Income tax (provision) benefit

 

 

(5,169

)

 

 

(1,051

)

 

 

(907

)

 

 

(955

)

 

 

1,355

 

 

 

(6,727

)

Net income (loss) after taxes

 

$

10,016

 

 

$

2,048

 

 

$

1,992

 

 

$

1,211

 

 

$

(2,525

)

 

$

12,742

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,230

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

Total assets

 

 

1,307,860

 

 

 

739,452

 

 

 

97,298

 

 

 

17,258

 

 

 

396,759

 

 

 

2,558,627

 

Total funds borrowed

 

 

1,074,592

 

 

 

607,565

 

 

 

79,944

 

 

 

14,180

 

 

 

323,638

 

 

 

2,099,919

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.01

%

 

 

1.11

%

 

 

8.12

%

 

 

26.70

%

 

 

(2.56

)%

 

 

2.01

%

Return on average equity

 

 

19.50

 

 

 

7.21

 

 

 

52.31

 

 

 

172.77

 

 

 

(16.56

)

 

 

12.89

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

13.80

 

Interest yield

 

 

13.12

 

 

 

8.88

 

 

 

13.05

 

 

 

35.22

 

 

N/A

 

 

 

11.28

 

Net interest margin, gross

 

 

10.53

 

 

 

6.10

 

 

 

9.35

 

 

 

42.32

 

 

N/A

 

 

 

8.35

 

Net interest margin, net of allowance

 

 

10.99

 

 

 

6.24

 

 

 

9.61

 

 

 

77.54

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

4.24

 

 

 

2.31

 

 

 

3.10

 

 

 

42.97

 

 

N/A

 

 

 

3.59

 

Delinquency status (1)

 

 

0.45

 

 

 

0.13

 

 

 

0.07

 

 

 

—

 

 

N/A

 

 

 

0.32

 

Charge-off (recovery) ratio (2)

 

 

2.67

 

 

 

1.61

 

 

 

—

 

 

 

(172.06

)

 

N/A

 

 

 

1.88

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

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

123,349

 

 

$

45,519

 

 

$

8,763

 

 

$

1,439

 

 

$

4,385

 

 

$

183,455

 

Total interest expense

 

 

22,254

 

 

 

12,660

 

 

 

2,582

 

 

 

44

 

 

 

6,839

 

 

 

44,379

 

Net interest income (loss)

 

 

101,095

 

 

 

32,859

 

 

 

6,181

 

 

 

1,395

 

 

 

(2,454

)

 

 

139,076

 

Provision (benefit) for credit losses

 

 

29,763

 

 

 

10,680

 

 

 

835

 

 

 

(14,167

)

 

 

(66

)

 

 

27,045

 

Net interest income (loss) after loss provision

 

 

71,332

 

 

 

22,179

 

 

 

5,346

 

 

 

15,562

 

 

 

(2,388

)

 

 

112,031

 

Other income

 

 

128

 

 

 

4

 

 

 

2,936

 

 

 

4,327

 

 

 

937

 

 

 

8,332

 

Other expenses

 

 

(24,884

)

 

 

(12,815

)

 

 

(2,696

)

 

 

(4,191

)

 

 

(11,898

)

 

 

(56,484

)

Net income (loss) before taxes

 

 

46,576

 

 

 

9,368

 

 

 

5,586

 

 

 

15,698

 

 

 

(13,349

)

 

 

63,879

 

Income tax (provision) benefit

 

 

(13,549

)

 

 

(2,725

)

 

 

(1,625

)

 

 

(4,567

)

 

 

3,884

 

 

 

(18,582

)

Net income (loss) after taxes

 

$

33,027

 

 

$

6,643

 

 

$

3,961

 

 

$

11,131

 

 

$

(9,465

)

 

$

45,297

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,536

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

40,761

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

Total assets

 

 

1,307,860

 

 

 

739,452

 

 

 

97,298

 

 

 

17,258

 

 

 

396,759

 

 

 

2,558,627

 

Total funds borrowed

 

 

1,074,592

 

 

 

607,565

 

 

 

79,944

 

 

 

14,180

 

 

 

323,638

 

 

 

2,099,919

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.56

%

 

 

1.30

%

 

 

5.33

%

 

 

73.52

%

 

 

(3.31

)%

 

 

2.52

%

Return on average equity

 

 

22.56

 

 

 

8.21

 

 

 

33.61

 

 

 

463.36

 

 

 

(20.93

)

 

 

15.90

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

17.49

 

Interest yield

 

 

13.03

 

 

 

8.76

 

 

 

12.11

 

 

 

29.27

 

 

N/A

 

 

 

11.10

 

Net interest margin, gross

 

 

10.68

 

 

 

6.32

 

 

 

8.55

 

 

 

28.38

 

 

N/A

 

 

 

8.42

 

Net interest margin, net of allowance

 

 

11.14

 

 

 

6.46

 

 

 

8.79

 

 

 

72.66

 

 

N/A

 

 

 

8.71

 

Reserve coverage

 

 

4.24

 

 

 

2.31

 

 

 

3.10

 

 

 

42.97

 

 

N/A

 

 

 

3.59

 

Delinquency status(1)

 

 

0.45

 

 

 

0.13

 

 

 

0.07

 

 

 

—

 

 

N/A

 

 

 

0.32

 

Charge-off (recovery) ratio(2)

 

 

2.61

 

 

 

1.20

 

 

 

1.23

 

 

 

(130.08

)

 

N/A

 

 

 

1.65

 
(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 nine months ended September 30, 2022.

Three Months September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

36,539

 

 

$

11,689

 

 

$

2,493

 

 

$

92

 

 

$

881

 

 

$

51,694

 

Total interest expense

 

 

5,003

 

 

 

2,093

 

 

 

780

 

 

 

133

 

 

 

1,645

 

 

 

9,654

 

Net interest income (loss)

 

 

31,536

 

 

 

9,596

 

 

 

1,713

 

 

 

(41

)

 

 

(764

)

 

 

42,040

 

Provision (benefit) for credit losses

 

 

7,182

 

 

 

2,041

 

 

 

2,100

 

 

 

(1,275

)

 

 

(1

)

 

 

10,047

 

Net interest income (loss) after loss provision

 

 

24,354

 

 

 

7,555

 

 

 

(387

)

 

 

1,234

 

 

 

(763

)

 

 

31,993

 

Other income (loss), net

 

 

—

 

 

 

2

 

 

 

(1,075

)

 

 

439

 

 

 

403

 

 

 

(231

)

Other expenses

 

 

(7,178

)

 

 

(3,165

)

 

 

(1,139

)

 

 

(3,125

)

 

 

(4,802

)

 

 

(19,409

)

Net income (loss) before taxes

 

 

17,176

 

 

 

4,392

 

 

 

(2,601

)

 

 

(1,452

)

 

 

(5,162

)

 

 

12,353

 

Income tax (provision) benefit

 

 

(4,499

)

 

 

(1,152

)

 

 

700

 

 

 

394

 

 

 

1,352

 

 

 

(3,205

)

Net income (loss) after taxes

 

$

12,677

 

 

$

3,240

 

 

$

(1,901

)

 

$

(1,058

)

 

$

(3,810

)

 

$

9,148

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7,636

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

28,553

 

 

 

353,638

 

 

 

2,199,541

 

Total funds borrowed

 

 

941,801

 

 

 

468,362

 

 

 

84,172

 

 

 

23,478

 

 

 

290,784

 

 

 

1,808,597

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.54

%

 

 

2.36

%

 

 

(7.32

)%

 

 

(13.92

)%

 

 

(4.10

)%

 

 

1.68

%

Return on average equity

 

 

27.07

 

 

 

14.06

 

 

 

(43.65

)

 

 

(82.88

)

 

 

(24.45

)

 

 

10.03

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

10.35

 

Interest yield

 

 

12.72

 

 

 

8.41

 

 

 

10.60

 

 

 

2.62

 

 

N/A

 

 

 

10.61

 

Net interest margin, gross

 

 

10.98

 

 

 

6.91

 

 

 

7.29

 

 

 

(1.17

)

 

N/A

 

 

 

8.63

 

Net interest margin, net of allowance

 

 

11.38

 

 

 

7.03

 

 

 

7.43

 

 

 

(3.62

)

 

N/A

 

 

 

8.91

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status (1)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio (2)

 

 

1.46

 

 

 

0.77

 

 

 

16.41

 

 

 

(41.15

)

 

N/A

 

 

 

1.69

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

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

101,189

 

 

$

31,977

 

 

$

6,701

 

 

$

469

 

 

$

1,772

 

 

$

142,108

 

Total interest expense

 

 

12,700

 

 

 

5,060

 

 

 

2,287

 

 

 

426

 

 

 

4,785

 

 

 

25,258

 

Net interest income (loss)

 

 

88,489

 

 

 

26,917

 

 

 

4,414

 

 

 

43

 

 

 

(3,013

)

 

 

116,850

 

Provision (benefit) for credit losses

 

 

15,536

 

 

 

4,943

 

 

 

5,234

 

 

 

(4,819

)

 

 

152

 

 

 

21,046

 

Net interest income (loss) after loss provision

 

 

72,953

 

 

 

21,974

 

 

 

(820

)

 

 

4,862

 

 

 

(3,165

)

 

 

95,804

 

Other income

 

 

—

 

 

 

13

 

 

 

3,199

 

 

 

3,993

 

 

 

1,450

 

 

 

8,655

 

Other expenses

 

 

(21,549

)

 

 

(9,282

)

 

 

(3,481

)

 

 

(8,245

)

 

 

(13,698

)

 

 

(56,255

)

Net income (loss) before taxes

 

 

51,404

 

 

 

12,705

 

 

 

(1,102

)

 

 

610

 

 

 

(15,413

)

 

 

48,204

 

Income tax (provision) benefit

 

 

(13,747

)

 

 

(3,398

)

 

 

295

 

 

 

(163

)

 

 

4,121

 

 

 

(12,892

)

Net income (loss) after taxes

 

$

37,657

 

 

$

9,307

 

 

$

(807

)

 

$

447

 

 

$

(11,292

)

 

$

35,312

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,535

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30,777

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

28,553

 

 

 

353,638

 

 

 

2,199,541

 

Total funds borrowed

 

 

941,801

 

 

 

468,362

 

 

 

84,172

 

 

 

23,478

 

 

 

290,784

 

 

 

1,808,597

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.42

%

 

 

2.10

%

 

 

(1.06

)%

 

 

2.27

%

 

 

(4.07

)%

 

 

2.33

%

Return on average equity

 

 

26.88

 

 

 

12.75

 

 

 

(6.41

)

 

 

13.73

 

 

 

(24.68

)

 

 

13.05

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

14.06

 

Interest yield

 

 

12.81

 

 

 

8.52

 

 

 

10.39

 

 

 

4.51

 

 

N/A

 

 

 

10.69

 

Net interest margin, gross

 

 

11.20

 

 

 

7.17

 

 

 

6.84

 

 

 

0.41

 

 

N/A

 

 

 

8.79

 

Net interest margin, net of allowance

 

 

11.60

 

 

 

7.30

 

 

 

6.95

 

 

 

1.25

 

 

N/A

 

 

 

9.09

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status (1)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio (2)

 

 

0.91

 

 

 

0.56

 

 

 

8.36

 

 

 

(48.19

)

 

N/A

 

 

 

0.78

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

(*) Line item is not applicable to segments.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 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-applicable 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 September 30, 2023, employment agreements expire at various dates through 2027, with future minimum payments under these agreements of approximately $11.0 million.

(B) OTHER COMMITMENTS

As of September 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 anti-fraud, 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 against 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.
v3.23.3
Related Party Transactions
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022.
v3.23.3
Fair Value of Financial Instruments
 9 Months Ended
Sep. 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 September 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.

 

September 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)

 

$

127,642

 

 

$

127,642

 

 

$

105,598

 

 

$

105,598

 

Equity investments

 

 

10,542

 

 

 

10,542

 

 

 

10,293

 

 

 

10,293

 

Investment securities

 

 

53,175

 

 

 

53,175

 

 

 

48,492

 

 

 

48,492

 

Loans receivable

 

 

2,123,905

 

 

 

2,123,905

 

 

 

1,853,108

 

 

 

1,853,108

 

Accrued interest receivable (2)

 

 

13,593

 

 

 

13,593

 

 

 

12,613

 

 

 

12,613

 

Equity securities (3)

 

 

1,671

 

 

 

1,671

 

 

 

1,724

 

 

 

1,724

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,099,918

 

 

 

2,099,918

 

 

 

1,833,484

 

 

 

1,833,484

 

Accrued interest payable (2)

 

 

4,624

 

 

 

4,624

 

 

 

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 September 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.
v3.23.3
Fair Value of Assets and Liabilities
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022.

September 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

 

 

—

 

 

 

53,175

 

 

 

—

 

 

 

53,175

 

Equity securities

 

 

1,671

 

 

 

—

 

 

 

—

 

 

 

1,671

 

Total (1)

 

$

1,671

 

 

$

54,425

 

 

$

—

 

 

$

56,096

 
(1)
Total unrealized losses of $1.2 million and $1.6 million, net of tax, was included in other comprehensive income for the three and nine months ended September 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 September 30, 2023 and December 31, 2022.

September 30, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,542

 

 

$

10,542

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

20,648

 

 

 

20,648

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

15,923

 

 

 

15,923

 

Total

 

$

—

 

 

$

—

 

 

$

47,113

 

 

$

47,113

 

 

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 September 30, 2023 and December 31, 2022.

(Dollars in thousands except per share amounts)

 

Fair Value
at September 30, 2023

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,269

 

 

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

 

 

20,648

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 8.04%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

15,923

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.9 - $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.
v3.23.3
Medallion Bank Preferred Stock (Non-controlling Interest)
 9 Months Ended
Sep. 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.
v3.23.3
Subsequent Events
 9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to September 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 October 18, 2023, the Company received $9.4 million of net proceeds from one of our larger taxi medallion borrowers, resulting in a recovery of approximately $8.0 million to be recognized in the fourth quarter of 2023.
v3.23.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 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.

The Company’s investment in the Bank is consolidated for financial statement purposes. In the notes to the consolidated financial statements included in its Annual Report on Form 10-K, the Company presents its investment in the Bank. Beginning with its financial statements for the year ended December 31, 2022, the presentation was revised to include the preferred equity and applicable non-controlling interest in the Bank to provide a fuller scope of the underlying investment.As the Company’s investment in the Bank is eliminated in consolidation this change in presentation did not have an impact on the Company’s consolidated financial statements.
Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. As of September 30, 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 $10.5 million and $10.3 million at September 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 September 30, 2023, a cumulative impairment of $3.4 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both September 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 September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

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

 

$

(54

)

 

$

(77

)

 

$

(54

)

 

$

(229

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(54

)

 

$

(77

)

 

$

(54

)

 

$

(229

)
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 September 30, 2023 and December 31, 2022, and less than $0.1 million was amortized to interest income for each of the three and nine months ended September 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 September 30, 2023 and December 31, 2022, net loan origination costs were $41.0 million and $34.9 million. Net amortization to income was $2.2 million and $6.5 million for the three and nine months ended September 30, 2023 and was $2.3 million and $6.8 million for the three and nine months ended September 30, 2022.

 

Interest income is recorded on the accrual basis. Taxi 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 is 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 $7.0 million at September 30, 2023, or 0.32% 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 first quarter of 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 taxi 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 taxi 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 taxi 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 at September 30, 2023 and $19.5 million at 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 September 30, 2023 and December 31, 2022.

Allowance for Credit 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 taxi 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 taxi 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 September 30, 2023 and December 31, 2022, the Company had goodwill of $150.8 million, all of which related to the Bank. As of September 30, 2023 and December 31, 2022, the Company had intangible assets of $21.0 million and $22.0 million. Amortization expense on the intangible assets for the three and nine months ended September 30, 2023 and 2022 was $0.4 million and $1.1 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)

 

September 30, 2023

 

 

December 31, 2022

 

Brand-related intellectual property

 

$

15,950

 

 

$

16,775

 

Home improvement contractor relationships

 

 

5,002

 

 

 

5,260

 

Total intangible assets

 

$

20,952

 

 

$

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 and $0.3 million for the three and nine months ended September 30, 2023 and $0.1 million and $0.2 million for the three and nine months ended September 30, 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 $2.3 million for the three and nine months ended September 30, 2023 and was $0.7 million and $2.0 million for the three and nine months ended September 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 $8.2 million and $7.0 million as of September 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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income available to common stockholders

 

$

11,230

 

 

$

7,636

 

 

$

40,761

 

 

$

30,777

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,596,982

 

 

 

23,154,775

 

 

 

22,469,968

 

 

 

24,020,058

 

Effect of restricted stock grants

 

 

481,197

 

 

 

307,318

 

 

 

413,682

 

 

 

238,621

 

Effect of dilutive stock options

 

 

183,274

 

 

 

48,552

 

 

 

125,319

 

 

 

74,097

 

Effect of performance share units

 

 

131,448

 

 

 

—

 

 

 

58,975

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,392,901

 

 

 

23,510,645

 

 

 

23,067,944

 

 

 

24,332,776

 

Basic net income per share

 

$

0.50

 

 

$

0.33

 

 

$

1.81

 

 

$

1.28

 

Diluted net income per share

 

 

0.48

 

 

 

0.32

 

 

 

1.77

 

 

 

1.26

 

Potentially dilutive common shares excluded from the above calculations aggregated 9,000 and 657,579 shares as of September 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 nine months ended September 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 83,158 and 129,638 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.2 million and $3.5 million, or $0.05 and $0.15 per share, for the three and nine months ended September 30, 2023, and $1.0 million and $2.5 million, or $0.04 and $0.10 per diluted common share, for the three and nine months ended September 30, 2022, of non-cash stock-based compensation expense related to the grants. As of September 30, 2023, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $5.4 million, which is expected to be recognized over the next 10 quarters.
Regulatory Capital

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could preclude the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of September 30, 2023, the Bank’s Tier 1 leverage ratio was 16.1%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

September 30, 2023

 

 

December 31, 2022

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

283,342

 

 

$

242,049

 

Tier 1 capital

 

 

 

 

 

 

 

 

352,130

 

 

 

310,837

 

Total capital

 

 

 

 

 

 

 

 

379,754

 

 

 

334,913

 

Average assets

 

 

 

 

 

 

 

 

2,190,234

 

 

 

1,917,904

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,162,430

 

 

 

1,888,530

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.1

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.1

 

 

 

12.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.3

 

 

 

16.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.6

 

 

 

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 September 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 September 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.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. The amendments in this update seek to clarify or improve disclosure and presentation requirements. 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.
v3.23.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 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 September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

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

 

$

(54

)

 

$

(77

)

 

$

(54

)

 

$

(229

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(54

)

 

$

(77

)

 

$

(54

)

 

$

(229

)
Summary of Finalized Adoption Related to 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)

 

September 30, 2023

 

 

December 31, 2022

 

Brand-related intellectual property

 

$

15,950

 

 

$

16,775

 

Home improvement contractor relationships

 

 

5,002

 

 

 

5,260

 

Total intangible assets

 

$

20,952

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income available to common stockholders

 

$

11,230

 

 

$

7,636

 

 

$

40,761

 

 

$

30,777

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,596,982

 

 

 

23,154,775

 

 

 

22,469,968

 

 

 

24,020,058

 

Effect of restricted stock grants

 

 

481,197

 

 

 

307,318

 

 

 

413,682

 

 

 

238,621

 

Effect of dilutive stock options

 

 

183,274

 

 

 

48,552

 

 

 

125,319

 

 

 

74,097

 

Effect of performance share units

 

 

131,448

 

 

 

—

 

 

 

58,975

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,392,901

 

 

 

23,510,645

 

 

 

23,067,944

 

 

 

24,332,776

 

Basic net income per share

 

$

0.50

 

 

$

0.33

 

 

$

1.81

 

 

$

1.28

 

Diluted net income per share

 

 

0.48

 

 

 

0.32

 

 

 

1.77

 

 

 

1.26

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

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

September 30, 2023

 

 

December 31, 2022

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

283,342

 

 

$

242,049

 

Tier 1 capital

 

 

 

 

 

 

 

 

352,130

 

 

 

310,837

 

Total capital

 

 

 

 

 

 

 

 

379,754

 

 

 

334,913

 

Average assets

 

 

 

 

 

 

 

 

2,190,234

 

 

 

1,917,904

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,162,430

 

 

 

1,888,530

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.1

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.1

 

 

 

12.8

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.3

 

 

 

16.5

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.6

 

 

 

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.
v3.23.3
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2023
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale maturity securities available for sale as of September 30, 2023 and December 31, 2022:

September 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

 

$

45,300

 

 

$

—

 

 

$

(6,344

)

 

$

38,956

 

State and municipalities

 

 

13,733

 

 

 

12

 

 

 

(1,650

)

 

 

12,095

 

Agency bonds

 

 

2,189

 

 

 

—

 

 

 

(65

)

 

 

2,124

 

Total

 

$

61,222

 

 

$

12

 

 

$

(8,059

)

 

$

53,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 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.

September 30, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

2,429

 

 

$

2,341

 

Due after one year through five years

 

 

7,373

 

 

 

6,970

 

Due after five years through ten years

 

 

8,938

 

 

 

7,558

 

Due after ten years

 

 

42,482

 

 

 

36,306

 

Total

 

$

61,222

 

 

$

53,175

 
Summary of Securities with Gross Unrealized Losses

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

 

September 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

 

$

(207

)

 

$

5,822

 

 

$

(6,137

)

 

$

33,134

 

State and municipalities

 

 

(286

)

 

 

4,757

 

 

 

(1,364

)

 

 

7,295

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(65

)

 

 

2,124

 

Total

 

$

(493

)

 

$

10,579

 

 

$

(7,566

)

 

$

42,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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
v3.23.3
Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022.

 

 

September 30, 2023

 

 

December 31, 2022

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,346,440

 

 

 

61

%

 

$

1,183,512

 

 

 

62

%

Home improvement

 

 

750,508

 

 

 

34

 

 

 

626,399

 

 

 

33

 

Commercial

 

 

100,322

 

 

 

5

 

 

 

92,899

 

 

 

5

 

Medallion

 

 

3,927

 

 

*

 

 

 

13,571

 

 

 

1

 

Strategic partnership

 

 

1,841

 

 

*

 

 

 

572

 

 

*

 

Total gross loans

 

 

2,203,038

 

 

 

100

%

 

 

1,916,953

 

 

 

100

%

Allowance for credit losses

 

 

(79,133

)

 

 

 

 

 

(63,845

)

 

 

 

Total net loans

 

$

2,123,905

 

 

 

 

 

$

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 nine months ended September 30, 2023 and 2022.

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Loan originations

 

 

92,603

 

 

 

79,333

 

 

 

8,900

 

 

 

100

 

 

 

36,457

 

 

 

217,393

 

Principal payments, sales, maturities, and recoveries

 

 

(61,885

)

 

 

(53,095

)

 

 

(1,657

)

 

 

(281

)

 

 

(35,947

)

 

 

(152,865

)

Charge-offs

 

 

(11,684

)

 

 

(3,890

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15,574

)

Transfer to loan collateral in process of foreclosure, net

 

 

(4,730

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,730

)

Amortization of origination costs

 

 

(3,259

)

 

 

647

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,612

)

FASB origination costs, net

 

 

4,281

 

 

 

(955

)

 

 

—

 

 

 

660

 

 

 

—

 

 

 

3,986

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

442

 

 

 

—

 

 

 

—

 

 

 

442

 

Gross loans – September 30, 2023

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 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

 

 

384,291

 

 

 

291,349

 

 

 

16,650

 

 

 

2,023

 

 

 

96,637

 

 

 

790,950

 

Principal payments, sales, maturities, and recoveries

 

 

(181,565

)

 

 

(158,300

)

 

 

(9,413

)

 

 

(6,207

)

 

 

(95,368

)

 

 

(450,853

)

Charge-offs

 

 

(33,440

)

 

 

(8,379

)

 

 

(900

)

 

 

(3,814

)

 

 

—

 

 

 

(46,533

)

Transfer to loan collateral in process of foreclosure, net

 

 

(13,078

)

 

 

—

 

 

 

—

 

 

 

(2,306

)

 

 

—

 

 

 

(15,384

)

Amortization of origination costs

 

 

(9,177

)

 

 

1,898

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,279

)

FASB origination costs, net

 

 

15,897

 

 

 

(2,459

)

 

 

—

 

 

 

660

 

 

 

—

 

 

 

14,098

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,086

 

 

 

—

 

 

 

—

 

 

 

1,086

 

Gross loans – September 30, 2023

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – June 30, 2022

 

$

1,096,670

 

 

$

526,278

 

 

$

96,928

 

 

$

14,152

 

 

$

593

 

 

$

1,734,621

 

Loan originations

 

 

149,151

 

 

 

100,451

 

 

 

4,500

 

 

 

152

 

 

 

19,428

 

 

 

273,682

 

Principal payments, sales, maturities, and recoveries

 

 

(66,338

)

 

 

(49,630

)

 

 

(4,017

)

 

 

(331

)

 

 

(19,248

)

 

 

(139,564

)

Charge-offs

 

 

(7,534

)

 

 

(1,780

)

 

 

(3,857

)

 

 

—

 

 

 

—

 

 

 

(13,171

)

Transfer to loan collateral in process of foreclosure, net

 

 

(2,862

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,862

)

Amortization of origination costs

 

 

(3,008

)

 

 

494

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,514

)

Amortization of loan premium

 

 

(60

)

 

 

(90

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(150

)

FASB origination costs, net

 

 

5,800

 

 

 

(513

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,287

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

181

 

 

 

—

 

 

 

—

 

 

 

181

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2021

 

$

961,320

 

 

$

436,772

 

 

$

76,696

 

 

$

14,046

 

 

$

90

 

 

$

1,488,924

 

Loan originations

 

 

433,764

 

 

 

295,443

 

 

 

28,172

 

 

 

396

 

 

 

34,267

 

 

 

792,042

 

Principal payments, sales, maturities, and recoveries

 

 

(204,568

)

 

 

(152,800

)

 

 

(6,220

)

 

 

(126

)

 

 

(33,584

)

 

 

(397,298

)

Charge-offs

 

 

(17,675

)

 

 

(3,948

)

 

 

(5,441

)

 

 

(75

)

 

 

—

 

 

 

(27,139

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,391

)

 

 

—

 

 

 

—

 

 

 

(268

)

 

 

—

 

 

 

(8,659

)

Amortization of origination costs

 

 

(8,378

)

 

 

1,194

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,184

)

Amortization of loan premium

 

 

(180

)

 

 

(270

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(450

)

FASB origination costs, net

 

 

15,927

 

 

 

(1,181

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

14,746

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

528

 

 

 

—

 

 

 

—

 

 

 

528

 

Gross loans – September 30, 2022

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 
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 nine months ended September 30, 2023 and 2022.

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Allowance for credit losses – beginning balance (1)

 

$

74,971

 

 

$

59,152

 

 

$

63,845

 

 

$

50,166

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

—

 

 

 

13,712

 

 

 

—

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(11,684

)

 

 

(7,534

)

 

 

(33,440

)

 

 

(17,675

)

Home improvement

 

 

(3,890

)

 

 

(1,780

)

 

 

(8,379

)

 

 

(3,948

)

Commercial

 

 

—

 

 

 

(3,857

)

 

 

(900

)

 

 

(5,441

)

Medallion

 

 

—

 

 

 

—

 

 

 

(3,814

)

 

 

(75

)

Total charge-offs

 

 

(15,574

)

 

 

(13,171

)

 

 

(46,533

)

 

 

(27,139

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

2,651

 

 

 

3,348

 

 

 

8,705

 

 

 

10,473

 

Home improvement

 

 

882

 

 

 

713

 

 

 

2,141

 

 

 

1,857

 

Commercial

 

 

—

 

 

 

—

 

 

 

10

 

 

 

47

 

Medallion

 

 

1,671

 

 

 

1,446

 

 

 

10,208

 

 

 

5,085

 

Total recoveries

 

 

5,204

 

 

 

5,507

 

 

 

21,064

 

 

 

17,462

 

Net charge-offs (2)

 

 

(10,370

)

 

 

(7,664

)

 

 

(25,469

)

 

 

(9,677

)

Provision for credit losses

 

 

14,532

 

 

 

10,047

 

 

 

27,045

 

 

 

21,046

 

Allowance for credit losses – ending balance (3)

 

$

79,133

 

 

$

61,535

 

 

$

79,133

 

 

$

61,535

 
(1)
Represents allowance prior to the adoption of ASU 2016-13.
(2)
As of September 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $201.7 million, some of which may represent collection opportunities for the Company.
(3)
As of September 30, 2023 and September 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 September 30, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

890

 

 

$

4,587

 

 

$

2,250

 

 

$

1,175

 

 

$

1,273

 

 

$

1,509

 

 

$

11,684

 

Home improvement

 

 

964

 

 

 

1,783

 

 

 

733

 

 

 

158

 

 

 

106

 

 

 

146

 

 

 

3,890

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,854

 

 

$

6,370

 

 

$

2,983

 

 

$

1,333

 

 

$

1,379

 

 

$

1,655

 

 

$

15,574

 

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

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

934

 

 

$

11,763

 

 

$

7,664

 

 

$

3,631

 

 

$

3,745

 

 

$

5,703

 

 

$

33,440

 

Home improvement

 

 

1,003

 

 

 

4,235

 

 

 

1,834

 

 

 

459

 

 

 

328

 

 

 

520

 

 

 

8,379

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,814

 

 

 

3,814

 

Total

 

$

1,937

 

 

$

15,998

 

 

$

9,498

 

 

$

4,090

 

 

$

4,973

 

 

$

10,037

 

 

$

46,533

 
Summary of Allowance for Credit Losses by Type

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

September 30, 2023
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

57,032

 

 

 

72

%

 

 

4.24

%

 

 

276.21

%

Home improvement

 

 

17,300

 

 

 

22

 

 

 

2.31

 

 

 

83.79

 

Commercial

 

 

3,114

 

 

 

4

 

 

 

3.10

 

 

 

15.08

 

Medallion

 

 

1,687

 

 

 

2

 

 

 

42.97

 

 

 

8.17

 

Total

 

$

79,133

 

 

 

100

%

 

 

3.59

%

 

 

383.25

%

 

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)

 

September 30, 2023

 

 

December 31, 2022

 

Total nonaccrual loans

 

$

20,648

 

 

$

32,133

 

Interest foregone quarter to date

 

 

190

 

 

 

231

 

Amount of foregone interest applied to principal in the quarter

 

 

49

 

 

 

94

 

Interest foregone year to date

 

 

618

 

 

 

1,267

 

Amount of foregone interest applied to principal for the year

 

 

183

 

 

 

375

 

Interest foregone life-to-date

 

 

1,837

 

 

 

2,419

 

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

 

 

839

 

 

 

1,204

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

0.9

%

 

 

1.7

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

383.2

%

 

 

198.7

%
Summary of Performance Status of Loan

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

September 30, 2023
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,339,934

 

 

$

6,506

 

 

$

1,346,440

 

 

 

0.48

%

Home improvement

 

 

749,528

 

 

 

980

 

 

 

750,508

 

 

 

0.13

 

Commercial

 

 

91,087

 

 

 

9,235

 

 

 

100,322

 

 

 

9.21

 

Medallion

 

 

—

 

 

 

3,927

 

 

 

3,927

 

 

 

100.00

 

Strategic partnership

 

 

1,841

 

 

 

—

 

 

 

1,841

 

 

 

—

 

Total

 

$

2,182,390

 

 

$

20,648

 

 

$

2,203,038

 

 

 

0.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

September 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

 

$

6,506

 

 

$

6,506

 

 

$

276

 

 

$

9,666

 

 

$

9,666

 

 

$

343

 

Home improvement

 

 

980

 

 

 

980

 

 

 

23

 

 

 

579

 

 

 

579

 

 

 

10

 

Commercial

 

 

9,235

 

 

 

9,344

 

 

 

1,121

 

 

 

8,734

 

 

 

8,823

 

 

 

963

 

Medallion

 

 

3,927

 

 

 

4,657

 

 

 

1,687

 

 

 

13,571

 

 

 

14,686

 

 

 

9,490

 

Total nonperforming loans with an allowance

 

$

20,648

 

 

$

21,487

 

 

$

3,107

 

 

$

32,550

 

 

$

33,754

 

 

$

10,806

 

 

 

Three Months Ended September 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,361

 

 

$

7

 

 

$

6,903

 

 

$

114

 

Home improvement

 

 

980

 

 

 

2

 

 

 

491

 

 

 

—

 

Commercial

 

 

3,085

 

 

 

—

 

 

 

13,577

 

 

 

—

 

Medallion

 

 

4,571

 

 

 

—

 

 

 

16,128

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

14,997

 

 

$

9

 

 

$

37,099

 

 

$

114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,300

 

 

$

10

 

 

$

6,895

 

 

$

303

 

Home improvement

 

 

865

 

 

 

2

 

 

 

459

 

 

 

—

 

Commercial

 

 

5,229

 

 

 

—

 

 

 

13,494

 

 

 

—

 

Medallion

 

 

4,795

 

 

 

—

 

 

 

16,326

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

17,189

 

 

$

12

 

 

$

37,174

 

 

$

303

 
T
Summary of Aging of Loans he following tables show the aging of all loans as of September 30, 2023 and December 31, 2022.

September 30, 2023

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

33,187

 

 

$

12,328

 

 

$

5,913

 

 

$

51,428

 

 

$

1,250,877

 

 

$

1,302,305

 

 

$

—

 

Home improvement

 

 

4,177

 

 

 

1,613

 

 

 

980

 

 

 

6,770

 

 

 

746,777

 

 

 

753,547

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

74

 

 

 

74

 

 

 

102,183

 

 

 

102,257

 

 

 

—

 

Medallion

 

 

—

 

 

 

16

 

 

 

—

 

 

 

16

 

 

 

3,911

 

 

 

3,927

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,841

 

 

 

1,841

 

 

 

—

 

Total

 

$

37,364

 

 

$

13,957

 

 

$

6,967

 

 

$

58,288

 

 

$

2,105,589

 

 

$

2,163,877

 

 

$

—

 
(1)
Excludes $41.0 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 nine months ended September 30, 2022.

(Dollars in thousands)

 

Number of Loans

 

 

Pre-
Modification
Investment

 

 

Post-
Modification
Investment

 

Three months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

34

 

 

$

549

 

 

$

549

 

Medallion loans

 

 

—

 

 

 

—

 

 

 

—

 

Nine months ended September 30, 2022

 

 

 

 

 

 

 

 

 

Recreation loans

 

 

56

 

 

$

825

 

 

$

825

 

Medallion loans

 

 

2

 

 

 

252

 

 

 

252

 
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 taxi medallion loans, for the three and nine months ended September 30, 2023 and 2022.

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

Transfer from loans, net

 

 

4,730

 

 

 

—

 

 

 

4,730

 

Sales

 

 

(1,080

)

 

 

(117

)

 

 

(1,197

)

Cash payments received

 

 

(163

)

 

 

(1,939

)

 

 

(2,102

)

Collateral valuation adjustments

 

 

(2,281

)

 

 

(30

)

 

 

(2,311

)

Loan collateral in process of foreclosure – September 30, 2023

 

$

1,935

 

 

$

13,988

 

 

$

15,923

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 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

 

 

13,078

 

 

 

2,306

 

 

 

15,384

 

Sales

 

 

(5,858

)

 

 

(685

)

 

 

(6,543

)

Cash payments received

 

 

(291

)

 

 

(7,773

)

 

 

(8,064

)

Collateral valuation adjustments

 

 

(6,370

)

 

 

(303

)

 

 

(6,673

)

Loan collateral in process of foreclosure – September 30, 2023

 

$

1,935

 

 

$

13,988

 

 

$

15,923

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – June 30, 2022

 

$

878

 

 

$

26,096

 

 

$

26,974

 

Transfer from loans, net

 

 

2,862

 

 

 

—

 

 

 

2,862

 

Sales

 

 

(1,399

)

 

 

(544

)

 

 

(1,943

)

Cash payments received

 

 

—

 

 

 

(2,243

)

 

 

(2,243

)

Collateral valuation adjustments

 

 

(1,225

)

 

 

(94

)

 

 

(1,319

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2021

 

$

1,720

 

 

$

35,710

 

 

$

37,430

 

Transfer from loans, net

 

 

8,391

 

 

 

268

 

 

 

8,659

 

Sales

 

 

(5,797

)

 

 

(2,659

)

 

 

(8,456

)

Cash payments received

 

 

—

 

 

 

(9,496

)

 

 

(9,496

)

Collateral valuation adjustments

 

 

(3,198

)

 

 

(608

)

 

 

(3,806

)

Loan collateral in process of foreclosure – September 30, 2022

 

$

1,116

 

 

$

23,215

 

 

$

24,331

 

As of September 30, 2023, taxi medallion loans in the process of foreclosure included 429 taxi medallions in the New York City market, 230 taxi medallions in the Chicago market, 32 taxi medallions in the Newark market, and 31 taxi medallions in other markets.
v3.23.3
Funds Borrowed (Tables)
 9 Months Ended
Sep. 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 September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

September 30, 2023 (1)

 

 

December 31, 2022(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

718,976

 

 

$

568,943

 

 

$

285,870

 

 

$

167,466

 

 

$

116,424

 

 

$

—

 

 

$

1,857,679

 

 

$

1,609,672

 

 

 

2.96

%

Privately placed notes

 

 

3,000

 

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

92,750

 

 

 

—

 

 

 

127,000

 

 

 

121,000

 

 

 

7.99

 

SBA debentures and borrowings

 

 

5,489

 

 

 

14,000

 

 

 

14,000

 

 

 

2,000

 

 

 

1,250

 

 

 

34,000

 

 

 

70,739

 

 

 

68,512

 

 

 

3.52

 

Preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

7.79

 

Federal reserve and other borrowings

 

 

10,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

 

 

—

 

 

 

5.85

 

Total

 

$

737,465

 

 

$

582,943

 

 

$

331,120

 

 

$

169,466

 

 

$

210,424

 

 

$

67,000

 

 

$

2,098,418

 

 

$

1,832,184

 

 

 

3.35

%
(1)
Excludes deferred financing costs of $8.2 million and $7.0 million as of September 30, 2023 and December 31, 2022.
(2)
Weighted average contractual rate as of September 30, 2023.
(3)
Balance excludes $1.5 million and $1.3 million of strategic partner reserve deposits as of September 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 September 30, 2023.

(Dollars in thousands)

 

September 30, 2023

 

Three months or less

 

$

204,577

 

Over three months through six months

 

 

157,064

 

Over six months through one year

 

 

357,335

 

Over one year

 

 

1,140,203

 

Total deposits

 

$

1,859,179

 
v3.23.3
Leases (Tables)
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease costs

 

$

597

 

 

$

580

 

 

$

1,792

 

 

$

1,759

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

629

 

 

 

684

 

 

 

1,855

 

 

 

1,764

 

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

 

 

(56

)

 

 

(47

)

 

 

(167

)

 

 

(133

)
Schedule of Breakout of Operating Leases

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

(Dollars in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

Operating lease right-of-use assets

 

$

8,505

 

 

$

9,723

 

Other current liabilities

 

 

2,193

 

 

 

2,239

 

Operating lease liabilities

 

 

7,075

 

 

 

8,408

 

Total operating lease liabilities

 

 

9,268

 

 

 

10,647

 

Weighted average remaining lease term

 

5.0 years

 

 

5.5 years

 

Weighted average discount rate

 

 

5.59

%

 

 

5.66

%

 
Schedule of Maturities of the Lease Liabilities

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

(Dollars in thousands)

 

 

 

Remainder of 2023

 

$

629

 

2024

 

 

2,508

 

2025

 

 

2,492

 

2026

 

 

2,440

 

2027

 

 

1,213

 

Thereafter

 

 

1,290

 

Total lease payments

 

 

10,572

 

Less imputed interest

 

 

1,304

 

Total operating lease liabilities

 

$

9,268

 
v3.23.3
Income Taxes (Tables)
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022.

(Dollars in thousands)

 

September 30, 2023

 

 

December 31, 2022

 

Goodwill and other intangibles

 

$

43,125

 

 

$

43,397

 

Provision for credit losses

 

 

(11,491

)

 

 

(9,945

)

Net operating loss carryforwards (1)

 

 

(3,804

)

 

 

(3,730

)

Accrued expenses, compensation, and other assets

 

 

(6,038

)

 

 

(3,819

)

Unrealized gains on other investments

 

 

(2,094

)

 

 

(1,445

)

Total deferred tax liability

 

 

19,698

 

 

 

24,458

 

Valuation allowance

 

 

3,433

 

 

 

2,295

 

Deferred tax liability, net

 

$

23,131

 

 

$

26,753

 
(1)
As of September 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 $0.4 million as of September 30, 2023.
Summary of Components of Tax Provision

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

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

5,893

 

 

$

693

 

 

$

12,349

 

 

$

2,181

 

State

 

 

1,753

 

 

 

340

 

 

 

3,717

 

 

 

1,109

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(689

)

 

 

2,081

 

 

 

1,761

 

 

 

7,679

 

State

 

 

(230

)

 

 

91

 

 

 

755

 

 

 

1,923

 

Net provision for income taxes

 

$

6,727

 

 

$

3,205

 

 

$

18,582

 

 

$

12,892

 
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 nine months ended September 30, 2023 and 2022.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(Dollars in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Statutory Federal income tax provision at 21%

 

$

4,088

 

 

$

2,613

 

 

$

13,414

 

 

$

10,142

 

State and local income taxes, net of federal income tax

 

 

800

 

 

 

511

 

 

 

2,624

 

 

 

1,984

 

Non-deductible expenses

 

 

624

 

 

 

410

 

 

 

1,701

 

 

 

1,484

 

Deferred tax asset valuation allowance

 

 

1,138

 

 

 

—

 

 

 

1,138

 

 

 

—

 

Other

 

 

77

 

 

 

(329

)

 

 

(295

)

 

 

(718

)

Total income tax provision

 

$

6,727

 

 

$

3,205

 

 

$

18,582

 

 

$

12,892

 
v3.23.3
Stock Options and Restricted Stock (Tables)
 9 Months Ended
Sep. 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, second, and third 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Exercised (1)

 

 

(18,840

)

 

 

4.89 - 7.25

 

 

 

6.17

 

Outstanding at September 30, 2023 (2)

 

 

965,146

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options vested at:

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

548,426

 

 

$

2.14 - 9.38

 

 

$

6.51

 

September 30, 2023

 

 

702,886

 

 

$

2.14 - 9.38

 

 

$

6.51

 
(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 $0.1 million for the three and nine months ended September 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 September 30, 2023 and the related exercise price of the underlying options, was $0.5 million for outstanding options and $0.4 million for vested options as of September 30, 2023. The remaining contractual life was 6.4 years for outstanding options and 6.1 years for vested options at September 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, second, and third 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 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, second, and third 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 (1)

 

 

(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

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2023 (2)

 

 

917,734

 

 

$

4.89 - 8.40

 

 

$

7.59

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(126

)

 

 

 

6.86

 

 

 

7.59

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at September 30, 2023

 

 

917,608

 

 

$

4.89 - 8.40

 

 

$

7.59

 
(1)
The aggregate fair value of the restricted stock vested was $2.1 million for the nine months ended September 30, 2023 and was $1.0 million for the year ended December 31, 2022.
(2)
The aggregate fair value of the restricted stock was $6.4 million as of September 30, 2023. The remaining vesting period was 2.4 years at September 30, 2023.
v3.23.3
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 nine months ended September 30, 2023.

Three Months Ended September 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

44,341

 

 

$

16,578

 

 

$

3,248

 

 

$

342

 

 

$

1,377

 

 

$

65,886

 

Total interest expense

 

 

8,770

 

 

 

5,187

 

 

 

921

 

 

 

(69

)

 

 

2,293

 

 

 

17,102

 

Net interest income (loss)

 

 

35,571

 

 

 

11,391

 

 

 

2,327

 

 

 

411

 

 

 

(916

)

 

 

48,784

 

Provision (benefit) for credit losses

 

 

11,877

 

 

 

3,860

 

 

 

621

 

 

 

(1,772

)

 

 

(54

)

 

 

14,532

 

Net interest income (loss) after loss provision

 

 

23,694

 

 

 

7,531

 

 

 

1,706

 

 

 

2,183

 

 

 

(862

)

 

 

34,252

 

Other income

 

 

128

 

 

 

1

 

 

 

2,322

 

 

 

1,404

 

 

 

451

 

 

 

4,306

 

Other expenses

 

 

(8,637

)

 

 

(4,433

)

 

 

(1,129

)

 

 

(1,421

)

 

 

(3,469

)

 

 

(19,089

)

Net income (loss) before taxes

 

 

15,185

 

 

 

3,099

 

 

 

2,899

 

 

 

2,166

 

 

 

(3,880

)

 

 

19,469

 

Income tax (provision) benefit

 

 

(5,169

)

 

 

(1,051

)

 

 

(907

)

 

 

(955

)

 

 

1,355

 

 

 

(6,727

)

Net income (loss) after taxes

 

$

10,016

 

 

$

2,048

 

 

$

1,992

 

 

$

1,211

 

 

$

(2,525

)

 

$

12,742

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,230

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

Total assets

 

 

1,307,860

 

 

 

739,452

 

 

 

97,298

 

 

 

17,258

 

 

 

396,759

 

 

 

2,558,627

 

Total funds borrowed

 

 

1,074,592

 

 

 

607,565

 

 

 

79,944

 

 

 

14,180

 

 

 

323,638

 

 

 

2,099,919

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.01

%

 

 

1.11

%

 

 

8.12

%

 

 

26.70

%

 

 

(2.56

)%

 

 

2.01

%

Return on average equity

 

 

19.50

 

 

 

7.21

 

 

 

52.31

 

 

 

172.77

 

 

 

(16.56

)

 

 

12.89

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

13.80

 

Interest yield

 

 

13.12

 

 

 

8.88

 

 

 

13.05

 

 

 

35.22

 

 

N/A

 

 

 

11.28

 

Net interest margin, gross

 

 

10.53

 

 

 

6.10

 

 

 

9.35

 

 

 

42.32

 

 

N/A

 

 

 

8.35

 

Net interest margin, net of allowance

 

 

10.99

 

 

 

6.24

 

 

 

9.61

 

 

 

77.54

 

 

N/A

 

 

 

8.64

 

Reserve coverage

 

 

4.24

 

 

 

2.31

 

 

 

3.10

 

 

 

42.97

 

 

N/A

 

 

 

3.59

 

Delinquency status (1)

 

 

0.45

 

 

 

0.13

 

 

 

0.07

 

 

 

—

 

 

N/A

 

 

 

0.32

 

Charge-off (recovery) ratio (2)

 

 

2.67

 

 

 

1.61

 

 

 

—

 

 

 

(172.06

)

 

N/A

 

 

 

1.88

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

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

123,349

 

 

$

45,519

 

 

$

8,763

 

 

$

1,439

 

 

$

4,385

 

 

$

183,455

 

Total interest expense

 

 

22,254

 

 

 

12,660

 

 

 

2,582

 

 

 

44

 

 

 

6,839

 

 

 

44,379

 

Net interest income (loss)

 

 

101,095

 

 

 

32,859

 

 

 

6,181

 

 

 

1,395

 

 

 

(2,454

)

 

 

139,076

 

Provision (benefit) for credit losses

 

 

29,763

 

 

 

10,680

 

 

 

835

 

 

 

(14,167

)

 

 

(66

)

 

 

27,045

 

Net interest income (loss) after loss provision

 

 

71,332

 

 

 

22,179

 

 

 

5,346

 

 

 

15,562

 

 

 

(2,388

)

 

 

112,031

 

Other income

 

 

128

 

 

 

4

 

 

 

2,936

 

 

 

4,327

 

 

 

937

 

 

 

8,332

 

Other expenses

 

 

(24,884

)

 

 

(12,815

)

 

 

(2,696

)

 

 

(4,191

)

 

 

(11,898

)

 

 

(56,484

)

Net income (loss) before taxes

 

 

46,576

 

 

 

9,368

 

 

 

5,586

 

 

 

15,698

 

 

 

(13,349

)

 

 

63,879

 

Income tax (provision) benefit

 

 

(13,549

)

 

 

(2,725

)

 

 

(1,625

)

 

 

(4,567

)

 

 

3,884

 

 

 

(18,582

)

Net income (loss) after taxes

 

$

33,027

 

 

$

6,643

 

 

$

3,961

 

 

$

11,131

 

 

$

(9,465

)

 

$

45,297

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,536

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

40,761

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,346,440

 

 

$

750,508

 

 

$

100,322

 

 

$

3,927

 

 

$

1,841

 

 

$

2,203,038

 

Total assets

 

 

1,307,860

 

 

 

739,452

 

 

 

97,298

 

 

 

17,258

 

 

 

396,759

 

 

 

2,558,627

 

Total funds borrowed

 

 

1,074,592

 

 

 

607,565

 

 

 

79,944

 

 

 

14,180

 

 

 

323,638

 

 

 

2,099,919

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.56

%

 

 

1.30

%

 

 

5.33

%

 

 

73.52

%

 

 

(3.31

)%

 

 

2.52

%

Return on average equity

 

 

22.56

 

 

 

8.21

 

 

 

33.61

 

 

 

463.36

 

 

 

(20.93

)

 

 

15.90

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

17.49

 

Interest yield

 

 

13.03

 

 

 

8.76

 

 

 

12.11

 

 

 

29.27

 

 

N/A

 

 

 

11.10

 

Net interest margin, gross

 

 

10.68

 

 

 

6.32

 

 

 

8.55

 

 

 

28.38

 

 

N/A

 

 

 

8.42

 

Net interest margin, net of allowance

 

 

11.14

 

 

 

6.46

 

 

 

8.79

 

 

 

72.66

 

 

N/A

 

 

 

8.71

 

Reserve coverage

 

 

4.24

 

 

 

2.31

 

 

 

3.10

 

 

 

42.97

 

 

N/A

 

 

 

3.59

 

Delinquency status(1)

 

 

0.45

 

 

 

0.13

 

 

 

0.07

 

 

 

—

 

 

N/A

 

 

 

0.32

 

Charge-off (recovery) ratio(2)

 

 

2.61

 

 

 

1.20

 

 

 

1.23

 

 

 

(130.08

)

 

N/A

 

 

 

1.65

 
(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 nine months ended September 30, 2022.

Three Months September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

36,539

 

 

$

11,689

 

 

$

2,493

 

 

$

92

 

 

$

881

 

 

$

51,694

 

Total interest expense

 

 

5,003

 

 

 

2,093

 

 

 

780

 

 

 

133

 

 

 

1,645

 

 

 

9,654

 

Net interest income (loss)

 

 

31,536

 

 

 

9,596

 

 

 

1,713

 

 

 

(41

)

 

 

(764

)

 

 

42,040

 

Provision (benefit) for credit losses

 

 

7,182

 

 

 

2,041

 

 

 

2,100

 

 

 

(1,275

)

 

 

(1

)

 

 

10,047

 

Net interest income (loss) after loss provision

 

 

24,354

 

 

 

7,555

 

 

 

(387

)

 

 

1,234

 

 

 

(763

)

 

 

31,993

 

Other income (loss), net

 

 

—

 

 

 

2

 

 

 

(1,075

)

 

 

439

 

 

 

403

 

 

 

(231

)

Other expenses

 

 

(7,178

)

 

 

(3,165

)

 

 

(1,139

)

 

 

(3,125

)

 

 

(4,802

)

 

 

(19,409

)

Net income (loss) before taxes

 

 

17,176

 

 

 

4,392

 

 

 

(2,601

)

 

 

(1,452

)

 

 

(5,162

)

 

 

12,353

 

Income tax (provision) benefit

 

 

(4,499

)

 

 

(1,152

)

 

 

700

 

 

 

394

 

 

 

1,352

 

 

 

(3,205

)

Net income (loss) after taxes

 

$

12,677

 

 

$

3,240

 

 

$

(1,901

)

 

$

(1,058

)

 

$

(3,810

)

 

$

9,148

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7,636

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

28,553

 

 

 

353,638

 

 

 

2,199,541

 

Total funds borrowed

 

 

941,801

 

 

 

468,362

 

 

 

84,172

 

 

 

23,478

 

 

 

290,784

 

 

 

1,808,597

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.54

%

 

 

2.36

%

 

 

(7.32

)%

 

 

(13.92

)%

 

 

(4.10

)%

 

 

1.68

%

Return on average equity

 

 

27.07

 

 

 

14.06

 

 

 

(43.65

)

 

 

(82.88

)

 

 

(24.45

)

 

 

10.03

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

10.35

 

Interest yield

 

 

12.72

 

 

 

8.41

 

 

 

10.60

 

 

 

2.62

 

 

N/A

 

 

 

10.61

 

Net interest margin, gross

 

 

10.98

 

 

 

6.91

 

 

 

7.29

 

 

 

(1.17

)

 

N/A

 

 

 

8.63

 

Net interest margin, net of allowance

 

 

11.38

 

 

 

7.03

 

 

 

7.43

 

 

 

(3.62

)

 

N/A

 

 

 

8.91

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status (1)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio (2)

 

 

1.46

 

 

 

0.77

 

 

 

16.41

 

 

 

(41.15

)

 

N/A

 

 

 

1.69

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

(*) Line item is not applicable to segments.

Nine Months Ended September 30, 2022

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

101,189

 

 

$

31,977

 

 

$

6,701

 

 

$

469

 

 

$

1,772

 

 

$

142,108

 

Total interest expense

 

 

12,700

 

 

 

5,060

 

 

 

2,287

 

 

 

426

 

 

 

4,785

 

 

 

25,258

 

Net interest income (loss)

 

 

88,489

 

 

 

26,917

 

 

 

4,414

 

 

 

43

 

 

 

(3,013

)

 

 

116,850

 

Provision (benefit) for credit losses

 

 

15,536

 

 

 

4,943

 

 

 

5,234

 

 

 

(4,819

)

 

 

152

 

 

 

21,046

 

Net interest income (loss) after loss provision

 

 

72,953

 

 

 

21,974

 

 

 

(820

)

 

 

4,862

 

 

 

(3,165

)

 

 

95,804

 

Other income

 

 

—

 

 

 

13

 

 

 

3,199

 

 

 

3,993

 

 

 

1,450

 

 

 

8,655

 

Other expenses

 

 

(21,549

)

 

 

(9,282

)

 

 

(3,481

)

 

 

(8,245

)

 

 

(13,698

)

 

 

(56,255

)

Net income (loss) before taxes

 

 

51,404

 

 

 

12,705

 

 

 

(1,102

)

 

 

610

 

 

 

(15,413

)

 

 

48,204

 

Income tax (provision) benefit

 

 

(13,747

)

 

 

(3,398

)

 

 

295

 

 

 

(163

)

 

 

4,121

 

 

 

(12,892

)

Net income (loss) after taxes

 

$

37,657

 

 

$

9,307

 

 

$

(807

)

 

$

447

 

 

$

(11,292

)

 

$

35,312

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,535

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30,777

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,171,819

 

 

$

575,210

 

 

$

93,735

 

 

$

13,973

 

 

$

773

 

 

$

1,855,510

 

Total assets

 

 

1,145,380

 

 

 

569,603

 

 

 

102,367

 

 

 

28,553

 

 

 

353,638

 

 

 

2,199,541

 

Total funds borrowed

 

 

941,801

 

 

 

468,362

 

 

 

84,172

 

 

 

23,478

 

 

 

290,784

 

 

 

1,808,597

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.42

%

 

 

2.10

%

 

 

(1.06

)%

 

 

2.27

%

 

 

(4.07

)%

 

 

2.33

%

Return on average equity

 

 

26.88

 

 

 

12.75

 

 

 

(6.41

)

 

 

13.73

 

 

 

(24.68

)

 

 

13.05

 

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

14.06

 

Interest yield

 

 

12.81

 

 

 

8.52

 

 

 

10.39

 

 

 

4.51

 

 

N/A

 

 

 

10.69

 

Net interest margin, gross

 

 

11.20

 

 

 

7.17

 

 

 

6.84

 

 

 

0.41

 

 

N/A

 

 

 

8.79

 

Net interest margin, net of allowance

 

 

11.60

 

 

 

7.30

 

 

 

6.95

 

 

 

1.25

 

 

N/A

 

 

 

9.09

 

Reserve coverage

 

 

3.48

 

 

 

1.77

 

 

 

1.03

 

 

 

68.68

 

 

N/A

 

 

 

3.32

 

Delinquency status (1)

 

 

0.45

 

 

 

0.08

 

 

 

0.08

 

 

 

2.24

 

 

N/A

 

 

 

0.33

 

Charge-off (recovery) ratio (2)

 

 

0.91

 

 

 

0.56

 

 

 

8.36

 

 

 

(48.19

)

 

N/A

 

 

 

0.78

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

(*) Line item is not applicable to segments.
v3.23.3
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 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.

 

September 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)

 

$

127,642

 

 

$

127,642

 

 

$

105,598

 

 

$

105,598

 

Equity investments

 

 

10,542

 

 

 

10,542

 

 

 

10,293

 

 

 

10,293

 

Investment securities

 

 

53,175

 

 

 

53,175

 

 

 

48,492

 

 

 

48,492

 

Loans receivable

 

 

2,123,905

 

 

 

2,123,905

 

 

 

1,853,108

 

 

 

1,853,108

 

Accrued interest receivable (2)

 

 

13,593

 

 

 

13,593

 

 

 

12,613

 

 

 

12,613

 

Equity securities (3)

 

 

1,671

 

 

 

1,671

 

 

 

1,724

 

 

 

1,724

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,099,918

 

 

 

2,099,918

 

 

 

1,833,484

 

 

 

1,833,484

 

Accrued interest payable (2)

 

 

4,624

 

 

 

4,624

 

 

 

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 September 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.
v3.23.3
Fair Value of Assets and liabilities (Tables)
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022.

September 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

 

 

—

 

 

 

53,175

 

 

 

—

 

 

 

53,175

 

Equity securities

 

 

1,671

 

 

 

—

 

 

 

—

 

 

 

1,671

 

Total (1)

 

$

1,671

 

 

$

54,425

 

 

$

—

 

 

$

56,096

 
(1)
Total unrealized losses of $1.2 million and $1.6 million, net of tax, was included in other comprehensive income for the three and nine months ended September 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 September 30, 2023 and December 31, 2022.

September 30, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,542

 

 

$

10,542

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

20,648

 

 

 

20,648

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

15,923

 

 

 

15,923

 

Total

 

$

—

 

 

$

—

 

 

$

47,113

 

 

$

47,113

 

 

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 September 30, 2023 and December 31, 2022.

(Dollars in thousands except per share amounts)

 

Fair Value
at September 30, 2023

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,269

 

 

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

 

 

20,648

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 8.04%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

15,923

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.9 - $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.
v3.23.3
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
Sep. 30, 2023
USD ($)
Medallion Financing Trust I [Member]  
Subsidiary or Equity Method Investee [Line Items]  
Aggregate assets of trust $ 34.0
v3.23.3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Jan. 01, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                  
Interest-bearing funds deposited in other banks   $ 1,300,000       $ 1,300,000      
Non-marketable securities   10,500,000       10,500,000   $ 10,300,000  
Impact of equity investment   3,400,000       3,400,000      
Past Due   58,288,000       58,288,000   57,618,000  
Notes receivable net   79,500       79,500      
Equity securities, fair value   1,700,000       1,700,000   1,700,000  
Net loan origination costs           41,000,000   34,900,000  
Net Amortization to income   2,200,000     $ 2,300,000 6,500,000 $ 6,800,000    
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   $ 15,574,000     13,171,000 $ 46,533,000 27,139,000    
Intangible assets useful life   20 years       20 years      
Goodwill   $ 150,803,000       $ 150,803,000   150,803,000  
Intangible assets, net   20,952,000       20,952,000   22,035,000  
Amortization of intangible assets   361,000     359,000 1,084,000 1,082,000    
Depreciation and amortization   100,000       300,000 200,000    
Amortization expense   800,000     700,000 2,300,000 $ 2,000,000    
Deferred costs   8,200,000       $ 8,200,000   $ 7,000,000  
Potential dilutive common shares excluded from EPS computation           9,000 657,579    
Stock based compensation award           296,444 0    
Stock based compensation award, Amount   $ 1,200,000     $ 1,000,000 $ 3,500,000 $ 2,500,000    
Stock based compensation award per diluted common share   $ 0.05     $ 0.04 $ 0.15 $ 0.1    
Unrecognized compensation cost related to unvested stock options and restricted stock   $ 5,400,000       $ 5,400,000      
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period           10 months      
Tier 1 leverage capital to total assets ratio   15.00%       15.00%      
Tier 1 leverage capital ratio   16.10%       16.10%      
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   0 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           83,158 129,638    
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   $ 6,967,000       $ 6,967,000   8,903,000  
90+ [Member] | Loans [Member]                  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                  
Past Due   $ 7,000,000       $ 7,000,000   $ 8,900,000  
Total loans more than 90 days past due ,percentage   0.32%       0.32%   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  
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
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       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 $ 100,000 $ 100,000    
Estimated useful life of fixed assets   10 years       10 years      
v3.23.3
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Equity Securities, FV-NI, Gain (Loss) [Abstract]        
Net gains (losses) recognized during the period on equity securities $ (54) $ (77) $ (54) $ (229)
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0 0 0
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (54) $ (77) $ (54) $ (229)
v3.23.3
Summary of Significant Accounting Policies - Summary of Finalized Adoption Related to 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  
v3.23.3
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Investments In Loans [Line Items]    
Intangibles assets $ 20,952 $ 22,035
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 15,950 16,775
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 5,002 $ 5,260
v3.23.3
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Accounting Policies [Abstract]        
Net income available to common stockholders $ 11,230 $ 7,636 $ 40,761 $ 30,777
Weighted average common shares outstanding applicable to basic EPS 22,596,982 23,154,775 22,469,968 24,020,058
Effect of restricted stock grants 481,197 307,318 413,682 238,621
Effect of dilutive stock options 183,274 48,552 125,319 74,097
Effect of performance share units 131,448 0 58,975 0
Adjusted weighted average common shares outstanding applicable to diluted EPS 23,392,901 23,510,645 23,067,944 24,332,776
Basic net income per share $ 0.5 $ 0.33 $ 1.81 $ 1.28
Diluted net income per share $ 0.48 $ 0.32 $ 1.77 $ 1.26
v3.23.3
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Accounting Policies [Abstract]    
Regulatory, Minimum, Leverage ratio [1] 0.04  
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] 0.05  
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio [2] 6.50%  
Regulatory, Well-Capitalized, Tier 1 capital ratio [3] 0.08  
Regulatory, Well-Capitalized, Total capital ratio [3] 0.10  
Common equity Tier 1 capital $ 283,342 $ 242,049
Tier 1 capital 352,130 310,837
Total capital 379,754 334,913
Average assets 2,190,234 1,917,904
Risk-weighted assets $ 2,162,430 $ 1,888,530
Leverage ratio [1] 0.161 0.162
Common equity Tier 1 capital ratio [2] 0.131 0.128
Tier 1 capital ratio [3] 0.163 0.165
Total capital ratio [3] 0.176 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.
v3.23.3
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios - (Parenthetical) (Details)
$ in Millions
Sep. 30, 2023
USD ($)
Accounting Policies [Abstract]  
Effects of the transition amount in capital $ 6.2
v3.23.3
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 61,222 $ 54,301
Gross Unrealized Gains 12 13
Gross Unrealized Losses (8,059) (5,822)
Fair Value 53,175 48,492
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 45,300 43,286
Gross Unrealized Gains 0 0
Gross Unrealized Losses (6,344) (4,933)
Fair Value 38,956 38,353
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 13,733 11,015
Gross Unrealized Gains 12 13
Gross Unrealized Losses (1,650) (889)
Fair Value 12,095 $ 10,139
Agency Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,189  
Gross Unrealized Gains 0  
Gross Unrealized Losses (65)  
Fair Value $ 2,124  
v3.23.3
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 2,429  
Amortized Cost, due after one year through five years 7,373  
Amortized Cost, due after five years through ten years 8,938  
Amortized Cost, due after ten years 42,482  
Amortized Cost 61,222 $ 54,301
Market Value, due in one year or less 2,341  
Market Value, due after one year through five years 6,970  
Market Value, due after five years through ten years 7,558  
Market Value, due after ten years 36,306  
Market Value, total $ 53,175 $ 48,492
v3.23.3
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (493) $ (1,017)
Fair Value, Less than Twelve Months 10,579 16,949
Gross Unrealized Losses, Twelve Months and Over (7,566) (4,805)
Fair Value, Twelve Months and Over 42,553 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 (207) (731)
Fair Value, Less than Twelve Months 5,822 12,321
Gross Unrealized Losses, Twelve Months and Over (6,137) (4,202)
Fair Value, Twelve Months and Over 33,134 26,023
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (286) (286)
Fair Value, Less than Twelve Months 4,757 4,628
Gross Unrealized Losses, Twelve Months and Over (1,364) (603)
Fair Value, Twelve Months and Over 7,295 $ 3,502
Agency Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months 0  
Fair Value, Less than Twelve Months 0  
Gross Unrealized Losses, Twelve Months and Over (65)  
Fair Value, Twelve Months and Over $ 2,124  
v3.23.3
Investment Securities - Additional Information (Detail) - Securities
Sep. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-Sale [Abstract]    
Number of Securities 62 57
v3.23.3
Loans and Allowance for Credit Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Jun. 30, 2023
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 2,163,877 [1] $ 1,882,585 [2]        
Allowance for loan losses (79,133) [3] (63,845) [4] $ (74,971) [4] $ (61,535) [3] $ (59,152) [4] $ (50,166) [4]
Net loans receivable 2,123,905 1,853,108   1,855,510    
Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 2,203,038 1,916,953 2,156,998 1,855,510 1,734,621 1,488,924
Allowance for loan losses (79,133) (63,845)        
Net loans receivable $ 2,123,905 $ 1,853,108        
Percentage of total gross loans 100.00% 100.00%        
Recreation [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,302,305 [1] $ 1,146,095 [2]        
Allowance for loan losses (57,032) (41,966)        
Recreation [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,346,440 $ 1,183,512 1,331,114 1,171,819 1,096,670 961,320
Percentage of total gross loans 61.00% 62.00%        
Home Improvement [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 753,547 [1] $ 628,877 [2]        
Allowance for loan losses (17,300) (11,340)        
Home Improvement [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 750,508 $ 626,399 728,468 575,210 526,278 436,772
Percentage of total gross loans 34.00% 33.00%        
Commercial [Member]            
Student Loan Portfolio By Program [Line Items]            
Allowance for loan losses $ (3,114) $ (1,049)        
Commercial [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 100,322 $ 92,899 92,637 93,735 96,928 76,696
Percentage of total gross loans 5.00% 5.00%        
Medallion [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 3,927 [1] $ 13,571 [2]        
Allowance for loan losses (1,687) (9,490)        
Medallion [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 3,927 $ 13,571 3,448 13,973 14,152 14,046
Percentage of total gross loans   1.00%        
Strategic Partnership [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 1,841 [1] $ 572 [2]        
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,841 $ 572 $ 1,331 $ 773 $ 593 $ 90
[1] Excludes $41.0 million of capitalized loan origination costs.
[2] Excludes $34.9 million of capitalized loan origination costs.
[3] As of September 30, 2023 and September 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[4] Represents allowance prior to the adoption of ASU 2016-13.
v3.23.3
Loans and Allowance for Credit Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     $ 1,882,585,000  
Net charge-offs [2] $ (10,370,000) $ (7,664,000) (25,469,000) $ (9,677,000)
Transfer to loan collateral in process of foreclosure, net (4,730,000) (2,862,000) (15,384,000) (8,659,000)
Amortization of origination costs     (7,279,000) (7,184,000)
Paid-in-kind interest     1,086,000 528,000
Gross loans, ending balance [3] 2,163,877,000   2,163,877,000  
Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     1,146,095,000  
Transfer to loan collateral in process of foreclosure, net (4,730,000) (2,862,000) (13,078,000) (8,391,000)
Gross loans, ending balance [3] 1,302,305,000   1,302,305,000  
Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     628,877,000  
Gross loans, ending balance [3] 753,547,000   753,547,000  
Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     13,571,000  
Transfer to loan collateral in process of foreclosure, net 0 0 (2,306,000) (268,000)
Gross loans, ending balance [3] 3,927,000   3,927,000  
Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance [1]     572,000  
Net charge-offs     0 0
Gross loans, ending balance [3] 1,841,000   1,841,000  
Bank Holding Company Accounting [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 2,156,998,000 1,734,621,000 1,916,953,000 1,488,924,000
Loan originations 217,393,000 273,682,000 790,950,000 792,042,000
Principal payments, sales, maturities, and recoveries (152,865,000) (139,564,000) (450,853,000) (397,298,000)
Net charge-offs (15,574,000) (13,171,000) (46,533,000) (27,139,000)
Transfer to loan collateral in process of foreclosure, net (4,730,000) (2,862,000) (15,384,000) (8,659,000)
Amortization of origination costs (2,612,000) (2,514,000) (7,279,000) (7,184,000)
Amortization of loan premium   (150,000)   (450,000)
FASB origination costs, net 3,986,000 5,287,000 14,098,000 14,746,000
Paid-in-kind interest 442,000 181,000 1,086,000 528,000
Gross loans, ending balance 2,203,038,000 1,855,510,000 2,203,038,000 1,855,510,000
Bank Holding Company Accounting [Member] | Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,331,114,000 1,096,670,000 1,183,512,000 961,320,000
Loan originations 92,603,000 149,151,000 384,291,000 433,764,000
Principal payments, sales, maturities, and recoveries (61,885,000) (66,338,000) (181,565,000) (204,568,000)
Net charge-offs (11,684,000) (7,534,000) (33,440,000) (17,675,000)
Transfer to loan collateral in process of foreclosure, net (4,730,000) (2,862,000) (13,078,000) (8,391,000)
Amortization of origination costs (3,259,000) (3,008,000) (9,177,000) (8,378,000)
Amortization of loan premium   (60,000)   (180,000)
FASB origination costs, net 4,281,000 5,800,000 15,897,000 15,927,000
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 1,346,440,000 1,171,819,000 1,346,440,000 1,171,819,000
Bank Holding Company Accounting [Member] | Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 728,468,000 526,278,000 626,399,000 436,772,000
Loan originations 79,333,000 100,451,000 291,349,000 295,443,000
Principal payments, sales, maturities, and recoveries (53,095,000) (49,630,000) (158,300,000) (152,800,000)
Net charge-offs (3,890,000) (1,780,000) (8,379,000) (3,948,000)
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination costs 647,000 494,000 1,898,000 1,194,000
Amortization of loan premium   (90,000)   (270,000)
FASB origination costs, net (955,000) (513,000) (2,459,000) (1,181,000)
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 750,508,000 575,210,000 750,508,000 575,210,000
Bank Holding Company Accounting [Member] | Commercial [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 92,637,000 96,928,000 92,899,000 76,696,000
Loan originations 8,900,000 4,500,000 16,650,000 28,172,000
Principal payments, sales, maturities, and recoveries (1,657,000) (4,017,000) (9,413,000) (6,220,000)
Net charge-offs 0 (3,857,000) (900,000) (5,441,000)
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 442,000 181,000 1,086,000 528,000
Gross loans, ending balance 100,322,000 93,735,000 100,322,000 93,735,000
Bank Holding Company Accounting [Member] | Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 3,448,000 14,152,000 13,571,000 14,046,000
Loan originations 100,000 152,000 2,023,000 396,000
Principal payments, sales, maturities, and recoveries (281,000) (331,000) (6,207,000) (126,000)
Net charge-offs 0 0 (3,814,000) (75,000)
Transfer to loan collateral in process of foreclosure, net 0 0 (2,306,000) (268,000)
Amortization of origination costs 0 0 0 0
Amortization of loan premium   0   0
FASB origination costs, net 660,000 0 660,000 0
Paid-in-kind interest 0 0 0  
Gross loans, ending balance 3,927,000 13,973,000 3,927,000 13,973,000
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,331,000 593,000 572,000 90,000
Loan originations 36,457,000 19,428,000 96,637,000 34,267,000
Principal payments, sales, maturities, and recoveries (35,947,000) (19,248,000) (95,368,000) (33,584,000)
Net 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 0
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance $ 1,841,000 $ 773,000 $ 1,841,000 $ 773,000
[1] Excludes $34.9 million of capitalized loan origination costs.
[2] As of September 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $201.7 million, some of which may represent collection opportunities for the Company.
[3] Excludes $41.0 million of capitalized loan origination costs.
v3.23.3
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance [1] $ 74,971 $ 59,152 $ 63,845 $ 50,166
Total charge-offs (15,574) (13,171) (46,533) (27,139)
Total recoveries 5,204 5,507 21,064 17,462
Net charge-offs [2] (10,370) (7,664) (25,469) (9,677)
Provision (benefit) for credit losses 14,532 10,047 27,045 21,046
Allowance for credit losses - ending balance [3] 79,133 61,535 79,133 61,535
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 (11,684) (7,534) (33,440) (17,675)
Total recoveries 2,651 3,348 8,705 10,473
Allowance for credit losses - ending balance 57,032   57,032  
Home Improvement [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     11,340  
Total charge-offs (3,890) (1,780) (8,379) (3,948)
Total recoveries 882 713 2,141 1,857
Allowance for credit losses - ending balance 17,300   17,300  
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     1,049  
Total charge-offs 0 (3,857) (900) (5,441)
Total recoveries 0 0 10 47
Allowance for credit losses - ending balance 3,114   3,114  
Medallion [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     9,490  
Total charge-offs 0 0 (3,814) (75)
Total recoveries 1,671 $ 1,446 10,208 $ 5,085
Allowance for credit losses - ending balance $ 1,687   $ 1,687  
[1] Represents allowance prior to the adoption of ASU 2016-13.
[2] As of September 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $201.7 million, some of which may represent collection opportunities for the Company.
[3] As of September 30, 2023 and September 30, 2022, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
v3.23.3
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Credit Losses (Parenthetical) (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Jun. 30, 2023
Dec. 31, 2022
 [1]
Jun. 30, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 15,923,000 [1] $ 24,331,000 $ 15,923,000 [1] $ 24,331,000 $ 16,803,000 $ 21,819,000 $ 26,974,000 $ 37,430,000
Net charge-offs [2] 10,370,000 $ 7,664,000 25,469,000 9,677,000        
Strategic Partnership [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Net charge-offs     0 $ 0        
Medallion Bank [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 201,700,000   $ 201,700,000          
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.2 million as of September 30, 2023 and $7.5 million as of December 31, 2022.
[2] As of September 30, 2023, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $201.7 million, some of which may represent collection opportunities for the Company.
v3.23.3
Loans and Allowance for Credit Losses - Summary of Gross Charge Offs (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Financing Receivable, Past Due [Line Items]    
2023 $ 1,854 $ 1,937
2022 6,370 15,998
2021 2,983 9,498
2020 1,333 4,090
2019 1,379 4,973
Prior 1,655 10,037
Total 15,574 46,533
Recreation [Member]    
Financing Receivable, Past Due [Line Items]    
2023 890 934
2022 4,587 11,763
2021 2,250 7,664
2020 1,175 3,631
2019 1,273 3,745
Prior 1,509 5,703
Total 11,684 33,440
Home Improvement [Member]    
Financing Receivable, Past Due [Line Items]    
2023 964 1,003
2022 1,783 4,235
2021 733 1,834
2020 158 459
2019 106 328
Prior 146 520
Total 3,890 8,379
Commercial Loan [Member]    
Financing Receivable, Past Due [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 900
Prior 0 0
Total 0 900
Medallion [Member]    
Financing Receivable, Past Due [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 3,814
Total $ 0 $ 3,814
v3.23.3
Loans and Allowance for Credit Losses - Summary of Allowance for Credit Losses by Type (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Jun. 30, 2023
 [2]
Dec. 31, 2022
Sep. 30, 2022
 [1]
Jun. 30, 2022
 [2]
Dec. 31, 2021
 [2]
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 79,133 [1] $ 74,971 $ 63,845 [2] $ 61,535 $ 59,152 $ 50,166
Percentage of Allowance 100.00%   100.00%      
Allowance as a Percent of Loan Category 3.59%   3.33%      
Allowance as a Percent of Nonaccrual 383.25%   198.69%      
Recreation [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 57,032   $ 41,966      
Percentage of Allowance 72.00%   66.00%      
Allowance as a Percent of Loan Category 4.24%   3.55%      
Allowance as a Percent of Nonaccrual 276.21%   130.60%      
Home Improvement [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 17,300   $ 11,340      
Percentage of Allowance 22.00%   18.00%      
Allowance as a Percent of Loan Category 2.31%   1.81%      
Allowance as a Percent of Nonaccrual 83.79%   35.29%      
Commercial [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 3,114   $ 1,049      
Percentage of Allowance 4.00%   1.00%      
Allowance as a Percent of Loan Category 3.10%   1.13%      
Allowance as a Percent of Nonaccrual 15.08%   3.26%      
Medallion [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 1,687   $ 9,490      
Percentage of Allowance 2.00%   15.00%      
Allowance as a Percent of Loan Category 42.97%   69.93%      
Allowance as a Percent of Nonaccrual 8.17%   29.53%      
[1] As of September 30, 2023 and September 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.
v3.23.3
Loans and Allowance for Credit Losses - Summary of Summary of Total Nonaccrual Loans and Foregone Interest (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Receivables [Abstract]    
Total nonaccrual loans $ 20,648 $ 32,133
Interest foregone quarter to date 190 231
Amount of foregone interest applied to principal in the quarter 49 94
Interest foregone year to date 618 1,267
Amount of foregone interest applied to principal for the year 183 375
Interest foregone life-to-date 1,837 2,419
Amount of foregone interest applied to principal life-to-date $ 839 $ 1,204
Percentage of nonaccrual loans to gross loan portfolio 0.90% 1.70%
Percentage of allowance for credit losses to nonaccrual loans 383.20% 198.70%
v3.23.3
Loans and Allowance for Credit Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 2,203,038 $ 1,916,953
Percentage of Nonperforming to Total 0.94% 1.70%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 2,182,390 $ 1,884,403
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 20,648 32,550
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,346,440 $ 1,183,512
Percentage of Nonperforming to Total 0.48% 0.82%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,339,934 $ 1,173,846
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 6,506 9,666
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 750,508 $ 626,399
Percentage of Nonperforming to Total 0.13% 0.09%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 749,528 $ 625,820
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 980 579
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 100,322 $ 92,899
Percentage of Nonperforming to Total 9.21% 9.40%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 91,087 $ 84,165
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 9,235 8,734
Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 3,927 $ 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 3,927 13,571
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,841 $ 572
Percentage of Nonperforming to Total 0.00% 0.00%
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,841 $ 572
Strategic Partnership [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
v3.23.3
Loans and Allowance for Credit Losses - Summary of Attributes of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance $ 20,648   $ 20,648   $ 32,550
Unpaid principal balance, With related allowance 21,487   21,487   33,754
Related Allowance, With related allowance 3,107   3,107   10,806
Average Investment Recorded, With related allowance 14,997 $ 37,099 17,189 $ 37,174  
Interest Income Recognized, With related allowance 9 114 12 303  
Recreation [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 6,506   6,506   9,666
Unpaid principal balance, With related allowance 6,506   6,506   9,666
Related Allowance, With related allowance 276   276   343
Average Investment Recorded, With related allowance 6,361 6,903 6,300 6,895  
Interest Income Recognized, With related allowance 7 114 10 303  
Home Improvement [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 980   980   579
Unpaid principal balance, With related allowance 980   980   579
Related Allowance, With related allowance 23   23   10
Average Investment Recorded, With related allowance 980 491 865 459  
Interest Income Recognized, With related allowance 2 0 2 0  
Commercial [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 9,235   9,235   8,734
Unpaid principal balance, With related allowance 9,344   9,344   8,823
Related Allowance, With related allowance 1,121   1,121   963
Average Investment Recorded, With related allowance 3,085 13,577 5,229 13,494  
Interest Income Recognized, With related allowance 0 0 0 0  
Medallion [Member]          
Financing Receivable, Recorded Investment [Line Items]          
Recorded Investment, With related allowance 3,927   3,927   13,571
Unpaid principal balance, With related allowance 4,657   4,657   14,686
Related Allowance, With related allowance 1,687   1,687   $ 9,490
Average Investment Recorded, With related allowance 4,571 16,128 4,795 16,326  
Interest Income Recognized, With related allowance $ 0 $ 0 $ 0 $ 0  
v3.23.3
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 58,288 $ 57,618
Total 2,163,877 [1] 1,882,585 [2]
Accruing 0 0
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,105,589 1,824,967
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 37,364 35,189
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 13,957 13,526
91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,967 8,903
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 51,428 51,023
Total 1,302,305 [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 1,250,877 1,095,072
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 33,187 31,781
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 12,328 11,877
Recreation [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,913 7,365
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,770 5,101
Total 753,547 [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 746,777 623,776
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 4,177 3,266
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,613 1,256
Home Improvement [Member] | 91+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 980 579
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 74 74
Total 102,257 [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 102,183 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 16 1,420
Total 3,927 [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 3,911 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 16 393
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 1,841 [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 1,841 572
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 $41.0 million of capitalized loan origination costs.
[2] Excludes $34.9 million of capitalized loan origination costs.
v3.23.3
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Receivables [Abstract]    
Capitalized loan origination costs $ 41.0 $ 34.9
v3.23.3
Loans and Allowance for Credit Losses - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
TDR
Sep. 30, 2023
Dec. 31, 2022
Financing Receivable Recorded Investment Past Due [Line Items]      
Weighted average loan-to-value ratio   189.00% 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 37    
Number of loans modified as TDRs in default, investment value | $ $ 0.5    
Commercial Loans [Member]      
Financing Receivable Recorded Investment Past Due [Line Items]      
Number of loans modified as TDRs in default in previous 12 months 0    
v3.23.3
Loans and Allowance for Credit Losses - Summary of TDRs (Detail)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
USD ($)
TDR
Sep. 30, 2022
USD ($)
TDR
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Number of Loans | TDR 34 56
Pre- Modification Investment $ 549 $ 825
Post- Modification Investment $ 549 $ 825
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
v3.23.3
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 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance $ 16,803 $ 26,974 $ 21,819 [1] $ 37,430
Transfer from loans, net 4,730 2,862 15,384 8,659
Sales 1,197 (1,943) 6,543 (8,456)
Cash payments received 2,102 (2,243) 8,064 (9,496)
Collateral valuation adjustments 2,311 (1,319) 6,673 (3,806)
Loans collateral in process of foreclosure - ending balance 15,923 [1] 24,331 15,923 [1] 24,331
Recreation [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 729 878 1,376 1,720
Transfer from loans, net 4,730 2,862 13,078 8,391
Sales 1,080 (1,399) 5,858 (5,797)
Cash payments received 163 0 291 0
Collateral valuation adjustments 2,281 (1,225) 6,370 (3,198)
Loans collateral in process of foreclosure - ending balance 1,935 1,116 1,935 1,116
Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 16,074 26,096 20,443 35,710
Transfer from loans, net 0 0 2,306 268
Sales 117 (544) 685 (2,659)
Cash payments received 1,939 (2,243) 7,773 (9,496)
Collateral valuation adjustments 30 (94) 303 (608)
Loans collateral in process of foreclosure - ending balance $ 13,988 $ 23,215 $ 13,988 $ 23,215
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.2 million as of September 30, 2023 and $7.5 million as of December 31, 2022.
v3.23.3
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
2024 $ 737,465  
2025 582,943  
2026 331,120  
2027 169,466  
2028 210,424  
Thereafter 67,000  
Long term debt [1] $ 2,098,418 $ 1,832,184
Interest Rate [2] 3.35%  
Deposits [Member]    
Debt Instrument [Line Items]    
2024 [3] $ 718,976  
2025 [3] 568,943  
2026 [3] 285,870  
2027 [3] 167,466  
2028 [3] 116,424  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,857,679 1,609,672
Interest Rate [2],[3] 2.96%  
Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2024 $ 3,000  
2025 0  
2026 31,250  
2027 0  
2028 92,750  
Thereafter 0  
Long term debt [1] $ 127,000 121,000
Interest Rate [2] 7.99%  
Small Business Administration Debentures and Borrowings [Member]    
Debt Instrument [Line Items]    
2024 $ 5,489  
2025 14,000  
2026 14,000  
2027 2,000  
2028 1,250  
Thereafter 34,000  
Long term debt [1] $ 70,739 68,512
Interest Rate [2] 3.52%  
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] 7.79%  
Federal Reserve and Other Borrowings [Member]    
Debt Instrument [Line Items]    
2024 $ 10,000  
2025 0  
2026 0  
2027 0  
2028 0  
Thereafter 0  
Long term debt [1] $ 10,000 $ 0
Interest Rate [2] 5.85%  
[1] Excludes deferred financing costs of $8.2 million and $7.0 million as of September 30, 2023 and December 31, 2022.
[2] Weighted average contractual rate as of September 30, 2023.
[3] Balance excludes $1.5 million and $1.3 million of strategic partner reserve deposits as of September 30, 2023 and December 31, 2022.
v3.23.3
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
Deferred costs $ 8.2 $ 7.0
Reserve deposits $ 1.5 $ 1.3
v3.23.3
Funds Borrowed - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Jul. 10, 2023
Feb. 28, 2021
Dec. 31, 2007
Jun. 30, 2007
Sep. 30, 2023
Sep. 30, 2022
Jun. 30, 2023
Sep. 30, 2023
Sep. 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. $ 12,100,000         $ 12,100,000     $ 12,100,000     $ 12,400,000            
Retail savings deposit balance $ 18,000,000         18,000,000     18,000,000                  
Aggregate principal amount                               $ 6,000,000    
Maturity date Sep. 30, 2028   Feb. 28, 2026                              
Gain loss on sales of loans net           $ 1,417,000 $ 518,000   $ 4,578,000 $ 5,061,000                
Issue of common stock 28,965,885         28,965,885     28,965,885     28,663,827            
Preferred securities repurchased from a third party investor       $ 2,000,000                            
Long-term debt [1] $ 218,137,000         $ 218,137,000     $ 218,137,000     $ 214,320,000            
Investment securities pledged 53,175,000         53,175,000     53,175,000     $ 48,492,000            
Medallion Capital, Inc.                                    
Debt Instrument [Line Items]                                    
Debt instrument face amount   $ 20,000,000                                
Long-term debt 5,000,000         5,000,000     5,000,000                  
Debt instrument leverage fee   200,000                                
Debt instrument, additional leverage fee   $ 400,000                                
Line Of Credit Facility Drawn Amount 4,800,000         4,800,000     4,800,000                  
Line Of Credit Facility Drawable Amount 10,300,000         10,300,000     10,300,000                  
Long term debt under capital infusion 2,500,000         2,500,000     2,500,000                  
Preferred Securities [Member]                                    
Debt Instrument [Line Items]                                    
Maturity date               Sep. 30, 2037                    
Sale of preferred securities         $ 35,000,000                          
Issue of common stock         1,083                          
Preferred securities outstanding $ 33,000,000         $ 33,000,000     $ 33,000,000                  
Preferred Securities [Member] | LIBOR [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%     3.25%                  
Loan commitment term                 4 years 6 months                  
Commitment fee percentage                 1.00%                  
Principal amount of loan                                   $ 34,000,000
Extended maturity date                 Apr. 30, 2024                  
Debt instrument outstanding amount $ 70,700,000         $ 70,700,000     $ 70,700,000                  
Debt instrument remaining amount 500,000         500,000     500,000                  
FSVC's [Member]                                    
Debt Instrument [Line Items]                                    
Principal amount of loan                                   $ 33,500,000
Federal reserve discount window and other borrowings [Member]                                    
Debt Instrument [Line Items]                                    
Debt instrument outstanding amount 0         0     0                  
Investment securities pledged 37,000,000         37,000,000     $ 37,000,000                  
Pledged securities advance rate of fair value                 100.00%                  
Borrowing capacity 37,000,000         37,000,000     $ 37,000,000                  
Commercial Banks [Member]                                    
Debt Instrument [Line Items]                                    
Line of credit outstanding                 10,000,000                  
Debt instrument remaining amount 65,000,000         65,000,000     65,000,000                  
Borrowing capacity 75,000,000         75,000,000     75,000,000                  
7.25% Unsecured Senior Notes Due February 2026 [Member]                                    
Debt Instrument [Line Items]                                    
Aggregate principal amount                         $ 3,000,000 $ 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 $ 39,000,000   $ 25,000,000     $ 39,000,000     $ 39,000,000         $ 8,500,000 $ 33,600,000   $ 30,000,000  
Debt instrument interest rate Percentage 9.25%   7.25%     9.25%     9.25%           7.50%   8.25%  
Maturity date                 2024                  
Maturity date                 Dec. 31, 2027                  
Repurchase amount $ 33,000,000         $ 33,000,000     $ 33,000,000               $ 33,000,000  
Principal amount remaining outstanding 3,000,000         3,000,000     3,000,000                  
Gain loss on sales of loans net                     $ 4,100,000              
Minimum [Member]                                    
Debt Instrument [Line Items]                                    
Time deposits $ 250,000         $ 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 $4.1 million and $3.2 million of deferred financing costs as of September 30, 2023 and December 31, 2022. Refer to Note 5 for more details.
v3.23.3
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Sep. 30, 2023
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 204,577
Over three months through six months 157,064
Over six months through one year 357,335
Over one year 1,140,203
Total deposits $ 1,859,179
v3.23.3
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Leases [Abstract]        
Operating lease costs $ 597 $ 580 $ 1,792 $ 1,759
Operating cash flows from operating leases 629 684 1,855 1,764
Right-of-use asset obtained in exchange for lease liability $ (56) $ (47) $ (167) $ (133)
v3.23.3
Leases - Schedule of Breakout of Operating Leases (Detail) - USD ($)
$ in Thousands
Sep. 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 $ 8,505 $ 9,723
Other current liabilities $ 2,193 $ 2,239
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 7,075 $ 8,408
Total operating lease liabilities $ 9,268 $ 10,647
Weighted average remaining lease term 5 years 5 years 6 months
Weighted average discount rate 5.59% 5.66%
v3.23.3
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Remainder of 2023 $ 629  
2024 2,508  
2025 2,492  
2026 2,440  
2027 1,213  
Thereafter 1,290  
Total lease payments 10,572  
Less imputed interest 1,304  
Total operating lease liabilities $ 9,268 $ 10,647
v3.23.3
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ 43,125 $ 43,397
Provision for credit losses (11,491) (9,945)
Net operating loss carryforwards [1] (3,804) (3,730)
Accrued expenses, compensation, and other assets (6,038) (3,819)
Unrealized gains on other investments (2,094) (1,445)
Total deferred tax liability 19,698 24,458
Valuation allowance 3,433 2,295
Deferred tax liability, net $ 23,131 $ 26,753
[1] As of September 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 $0.4 million as of September 30, 2023.
v3.23.3
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member]
$ in Millions
 9 Months Ended
Sep. 30, 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 $ 0.4
December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1.7
v3.23.3
Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Current        
Federal $ 5,893 $ 693 $ 12,349 $ 2,181
State 1,753 340 3,717 1,109
Deferred        
Federal (689) 2,081 1,761 7,679
State (230) 91 755 1,923
Net provision for income taxes $ 6,727 $ 3,205 $ 18,582 $ 12,892
v3.23.3
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]        
Statutory Federal income tax provision at 21% $ 4,088 $ 2,613 $ 13,414 $ 10,142
State and local income taxes, net of federal income tax 800 511 2,624 1,984
Non-deductible expenses 624 410 1,701 1,484
Deferred tax asset valuation allowance 1,138 0 1,138 0
Other 77 (329) (295) (718)
Net provision for income taxes $ 6,727 $ 3,205 $ 18,582 $ 12,892
v3.23.3
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision percentage 21.00% 21.00%
v3.23.3
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Jun. 15, 2018
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2023
Sep. 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   965,146 [1] 983,986 [1] 992,072 965,146 [1]   1,061,849 1,111,687  
Stock option exercisable   702,886     702,886        
Unvested shares under restricted common stock plan   262,260 262,260 262,260 262,260   513,423    
Number of shares vested         158,937        
Intrinsic value of options vested         $ 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   242,881     242,881        
Number of shares outstanding, vested restricted stock units   158,937     158,937        
Restricted Stock Units [Member] | Vest on June 22, 2024 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares, granted         83,158        
Weighted average grant price, granted             $ 9.14    
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   917,608 917,734 [2] 906,204 917,608   857,288 493,326  
Number of shares vested   0 0 245,990 [3]     129,140 [4]    
Weighted average fair value of options granted         $ 0 $ 0      
Number of shares, granted   0 11,734 304,749 316,483 383,925 522,475    
Weighted average grant price, granted   $ 0 $ 7.67 $ 8.08     $ 7.46    
PSU [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares, granted   0     296,444        
Weighted average grant price, granted         $ 6.08        
Unvested Performance Shares [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares outstanding, performance share units   296,444     296,444        
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   2,317,228     2,317,228        
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   83,944     83,944        
2018 Restricted Stock Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unvested shares under restricted common stock plan   917,608     917,608        
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 September 30, 2023 and the related exercise price of the underlying options, was $0.5 million for outstanding options and $0.4 million for vested options as of September 30, 2023. The remaining contractual life was 6.4 years for outstanding options and 6.1 years for vested options at September 30, 2023
[2] The aggregate fair value of the restricted stock was $6.4 million as of September 30, 2023. The remaining vesting period was 2.4 years at September 30, 2023.
[3] The aggregate fair value of the restricted stock vested was $2.1 million for the nine months ended September 30, 2023 and was $1.0 million for the year ended December 31, 2022.
[4] 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 $0.1 million for the three and nine months ended September 30, 2023 and was $0.1 million for the year ended December 31, 2022.
v3.23.3
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Sep. 30, 2023
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 983,986 [1] 992,072 1,061,849 1,111,687
Granted 0 0 0 0
Cancelled 0 (7,803) (25,194) (26,093)
Exercised (18,840) [2] (283) [2] (44,583) [2] (23,745)
Number of options ending balance 965,146 [1] 983,986 [1] 992,072 1,061,849
Options vested 702,886     548,426
Exercise price per share, lower range limit beginning balance $ 2.14 [1] $ 2.14 $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance 9.38 [1] 9.38 9.38 12.55
Exercise price per share, granted 0 0 0 0
Exercise price per share, cancelled 0      
Exercise price per share, exercised [2]   4.89    
Exercise price per share, lower range limit ending balance 2.14 2.14 [1] 2.14 2.14
Exercise price per share, upper range limit ending balance 9.38 9.38 [1] 9.38 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 6.5 [1] 6.53 6.51 6.41
Weighted average exercise price, granted 0 0 0 0
Weighted average exercise price, cancelled 0 6.31 6.97 7.08
Weighted average exercise price, exercised 6.17 4.89 [2] 6.55 [2] 6.51
Weighted average exercise price, ending balance 6.51 6.5 [1] 6.53 6.51
Weighted average exercise price, options vested 6.51     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   4.89 [2] 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   $ 7.25 [2] $ 7.25
[1] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at September 30, 2023 and the related exercise price of the underlying options, was $0.5 million for outstanding options and $0.4 million for vested options as of September 30, 2023. The remaining contractual life was 6.4 years for outstanding options and 6.1 years for vested options at September 30, 2023
[2] 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 $0.1 million for the three and nine months ended September 30, 2023 and was $0.1 million for the year ended December 31, 2022.
v3.23.3
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 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 $ 0.5 $ 0.5  
Aggregate intrinsic value of option vested 0.4 $ 0.4  
Remaining contractual life of option outstanding   6 years 4 months 24 days  
Remaining contractual life of option vested   6 years 1 month 6 days  
Maximum [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Aggregate intrinsic value for option exercised $ 0.1 $ 0.1  
v3.23.3
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 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 262,260 262,260 513,423 513,423  
Number of options, granted 0 0 0   0
Number of options, cancelled 0 0 (2,951)    
Number of options, vested 0 0 (248,212)    
Number of options ending balance 262,260 262,260 262,260 262,260 513,423
Exercise price per share beginning balance, Lower limit $ 4.89 $ 4.89 $ 4.89 $ 4.89  
Exercise price per share beginning balance, Upper limit 7.25 7.25 7.25 7.25  
Exercise price per share, Cancelled, Lower limit     4.89    
Exercise price per share, Cancelled, Upper limit 0 0 7.25    
Exercise price per share, Vested, Lower limit     4.89    
Exercise price per share, Vested, Upper limit 0 0 7.25    
Exercise price per share ending balance, Lower limit 4.89 4.89 4.89 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 7.25 7.25 7.25 7.25 7.25
Weighted average exercise price 6.49 6.49 6.52 6.52  
Weighted average exercise price, cancelled 0 0 5.53    
Weighted average exercise price, vested 0 0 6.55    
Weighted average exercise price $ 6.49 $ 6.49 $ 6.49 $ 6.49 $ 6.52
v3.23.3
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, vested       (158,937)    
Grant price per share, cancelled, lower limit     $ 4.89      
Grant price per share, cancelled, upper limit $ 0 $ 0 $ 7.25      
Restricted Shares [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, beginning balance 917,734 [1] 906,204 857,288 857,288 493,326 493,326
Number of shares, granted 0 11,734 304,749 316,483 383,925 522,475
Number of shares, cancelled (126) (204) (9,843)     (29,373)
Number of shares, vested 0 0 (245,990) [2]     (129,140) [3]
Number of shares, ending balance 917,608 917,734 [1] 906,204 917,608   857,288
Grant price per share, lower range limit beginning balance $ 4.89 [1] $ 4.89 $ 4.89 $ 4.89 $ 4.89 $ 4.89
Grant price per share, upper range limit beginning balance 8.4 [1] 8.4 7.25 7.25 7.25 7.25
Grant price per share, granted, lower limit           6.86
Grant price per share, granted, upper limit 0 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 6.86 8.4     8.4
Grant price per share, vested, lower limit [3]     4.89     4.89
Grant price per share, vested, upper limit 0 0 7.68 [3]     7.25 [3]
Grant price per share, lower range limit ending balance 4.89 4.89 [1] 4.89 4.89   4.89
Grant price per share, upper range limit ending balance 8.4 8.4 [1] 8.4 8.4   7.25
Weighted average grant price beginning balance 7.59 [1] 7.58 7.27 7.27 $ 6.87 6.87
Weighted average grant price, granted 0 7.67 8.08     7.46
Weighted average grant price, cancelled 7.59 6.86 7.18     7.32
Weighted average grant price, vested 0 0 7.12 [3]     6.53 [3]
Weighted average grant price, ending balance $ 7.59 $ 7.59 [1] $ 7.58 $ 7.59   $ 7.27
[1] The aggregate fair value of the restricted stock was $6.4 million as of September 30, 2023. The remaining vesting period was 2.4 years at September 30, 2023.
[2] The aggregate fair value of the restricted stock vested was $2.1 million for the nine months ended September 30, 2023 and was $1.0 million for the year ended December 31, 2022.
[3] 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 $0.1 million for the three and nine months ended September 30, 2023 and was $0.1 million for the year ended December 31, 2022.
v3.23.3
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 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 $ 6.4  
Remaining vesting period of restricted stock 2 years 4 months 24 days  
v3.23.3
Segment Reporting - Additional Information (Detail)
 9 Months Ended
Sep. 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] 0.131 0.128
Roofs [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 40.00%  
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%  
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 58.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Boats [Member]    
Segment Reporting Disclosure [Line Items]    
Aggregate percentage of loans lending 20.00%  
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | 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 | Manufacturing [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 43.00%  
Commercial Lending Segment | Wholesale Trade [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 16.00%  
Commercial Lending Segment | Construction [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 15.00%  
Commercial Lending Segment | Administrative And Support Services [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Commercial Lending Segment | Texas [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 10.00%  
Commercial Lending Segment | California [Member]    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 25.00%  
Commercial Lending Segment | Minnesota    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 14.00%  
Commercial Lending Segment | Illinois    
Segment Reporting Disclosure [Line Items]    
Loan outstanding percent 11.00%  
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.
v3.23.3
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 65,886     $ 51,694     $ 183,455 $ 142,108  
Total interest expense 17,102     9,654     44,379 25,258  
Net interest income (loss) 48,784     42,040     139,076 116,850  
Provision (benefit) for credit losses 14,532     10,047     27,045 21,046  
Net interest income (loss) after loss provision 34,252     31,993     112,031 95,804  
Other income (loss), net 4,306     (231)     8,332 8,655  
Other expenses (19,089)     (19,409)     (56,484) (56,255)  
Income before income taxes 19,469     12,353     63,879 48,204  
Income tax (provision) benefit (6,727)     (3,205)     (18,582) (12,892)  
Net income (loss) after taxes 12,742 $ 15,682 $ 16,873 9,148 $ 14,811 $ 11,353 45,297 35,312  
Income attributable to the non-controlling interest 1,512     1,512     4,536 4,535  
Total net income attributable to Medallion Financial Corp. 11,230     7,636     40,761 30,777  
Balance Sheet Data                  
Total loans 2,123,905     1,855,510     2,123,905 1,855,510 $ 1,853,108
Loans 2,203,038     1,855,510     2,203,038 1,855,510 1,916,953
Total assets 2,558,627     2,199,541     2,558,627 2,199,541 $ 2,259,879
Total funds borrowed $ 2,099,919     $ 1,808,597     $ 2,099,919 $ 1,808,597  
Selected Financial Ratios                  
Return on average assets 2.01%     1.68%     2.52% 2.33%  
Return on average equity 12.89%     10.03%     15.90% 13.05%  
Return on average stockholders' equity 13.80%     10.35%     17.49% 14.06%  
Interest yield 11.28%     10.61%     11.10% 10.69%  
Net interest margin, gross 8.35%     8.63%     8.42% 8.79%  
Net interest margin, net of allowance 8.64%     8.91%     8.71% 9.09%  
Reserve coverage 3.59%     3.32%     3.59% 3.32%  
Delinquency status 0.32% [1]     0.33% [2]     0.32% [3] 0.33% [4]  
Charge-off (recovery) ratio 1.88% [5]     1.69% [6]     1.65% [7] 0.78% [8]  
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 44,341     $ 36,539     $ 123,349 $ 101,189  
Total interest expense 8,770     5,003     22,254 12,700  
Net interest income (loss) 35,571     31,536     101,095 88,489  
Provision (benefit) for credit losses 11,877     7,182     29,763 15,536  
Net interest income (loss) after loss provision 23,694     24,354     71,332 72,953  
Other income (loss), net 128     0     128 0  
Other expenses (8,637)     (7,178)     (24,884) (21,549)  
Income before income taxes 15,185     17,176     46,576 51,404  
Income tax (provision) benefit (5,169)     (4,499)     (13,549) (13,747)  
Net income (loss) after taxes 10,016     12,677     33,027 37,657  
Balance Sheet Data                  
Total loans 1,346,440     1,171,819     1,346,440 1,171,819  
Total assets 1,307,860     1,145,380     1,307,860 1,145,380  
Total funds borrowed $ 1,074,592     $ 941,801     $ 1,074,592 $ 941,801  
Selected Financial Ratios                  
Return on average assets 3.01%     4.54%     3.56% 4.42%  
Return on average equity 19.50%     27.07%     22.56% 26.88%  
Interest yield 13.12%     12.72%     13.03% 12.81%  
Net interest margin, gross 10.53%     10.98%     10.68% 11.20%  
Net interest margin, net of allowance 10.99%     11.38%     11.14% 11.60%  
Reserve coverage 4.24%     3.48%     4.24% 3.48%  
Delinquency status 0.45% [1]     0.45% [2]     0.45% [3] 0.45% [4]  
Charge-off (recovery) ratio 2.67% [5]     1.46% [6]     2.61% [7] 0.91% [8]  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 16,578     $ 11,689     $ 45,519 $ 31,977  
Total interest expense 5,187     2,093     12,660 5,060  
Net interest income (loss) 11,391     9,596     32,859 26,917  
Provision (benefit) for credit losses 3,860     2,041     10,680 4,943  
Net interest income (loss) after loss provision 7,531     7,555     22,179 21,974  
Other income (loss), net 1     2     4 13  
Other expenses (4,433)     (3,165)     (12,815) (9,282)  
Income before income taxes 3,099     4,392     9,368 12,705  
Income tax (provision) benefit (1,051)     (1,152)     (2,725) (3,398)  
Net income (loss) after taxes 2,048     3,240     6,643 9,307  
Balance Sheet Data                  
Total loans 750,508     575,210     750,508 575,210  
Total assets 739,452     569,603     739,452 569,603  
Total funds borrowed $ 607,565     $ 468,362     $ 607,565 $ 468,362  
Selected Financial Ratios                  
Return on average assets 1.11%     2.36%     1.30% 2.10%  
Return on average equity 7.21%     14.06%     8.21% 12.75%  
Interest yield 8.88%     8.41%     8.76% 8.52%  
Net interest margin, gross 6.10%     6.91%     6.32% 7.17%  
Net interest margin, net of allowance 6.24%     7.03%     6.46% 7.30%  
Reserve coverage 2.31%     1.77%     2.31% 1.77%  
Delinquency status 0.13% [1]     0.08% [2]     0.13% [3] 0.08% [4]  
Charge-off (recovery) ratio 1.61% [5]     0.77% [6]     1.20% [7] 0.56% [8]  
Operating Segments [Member] | Commercial Lending [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 3,248     $ 2,493     $ 8,763 $ 6,701  
Total interest expense 921     780     2,582 2,287  
Net interest income (loss) 2,327     1,713     6,181 4,414  
Provision (benefit) for credit losses 621     2,100     835 5,234  
Net interest income (loss) after loss provision 1,706     (387)     5,346 (820)  
Other income (loss), net 2,322     (1,075)     2,936 3,199  
Other expenses (1,129)     (1,139)     (2,696) (3,481)  
Income before income taxes 2,899     (2,601)     5,586 (1,102)  
Income tax (provision) benefit (907)     700     (1,625) 295  
Net income (loss) after taxes 1,992     (1,901)     3,961 (807)  
Balance Sheet Data                  
Total loans 100,322     93,735     100,322 93,735  
Total assets 97,298     102,367     97,298 102,367  
Total funds borrowed $ 79,944     $ 84,172     $ 79,944 $ 84,172  
Selected Financial Ratios                  
Return on average assets 8.12%     (7.32%)     5.33% (1.06%)  
Return on average equity 52.31%     (43.65%)     33.61% (6.41%)  
Interest yield 13.05%     10.60%     12.11% 10.39%  
Net interest margin, gross 9.35%     7.29%     8.55% 6.84%  
Net interest margin, net of allowance 9.61%     7.43%     8.79% 6.95%  
Reserve coverage 3.10%     1.03%     3.10% 1.03%  
Delinquency status 0.07% [1]     0.08% [2]     0.07% [3] 0.08% [4]  
Charge-off (recovery) ratio 0.00% [5]     16.41% [6]     1.23% [7] 8.36% [8]  
Operating Segments [Member] | Medallion Lending [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 342     $ 92     $ 1,439 $ 469  
Total interest expense (69)     133     44 426  
Net interest income (loss) 411     (41)     1,395 43  
Provision (benefit) for credit losses (1,772)     (1,275)     (14,167) (4,819)  
Net interest income (loss) after loss provision 2,183     1,234     15,562 4,862  
Other income (loss), net 1,404     439     4,327 3,993  
Other expenses (1,421)     (3,125)     (4,191) (8,245)  
Income before income taxes 2,166     (1,452)     15,698 610  
Income tax (provision) benefit (955)     394     (4,567) (163)  
Net income (loss) after taxes 1,211     (1,058)     11,131 447  
Balance Sheet Data                  
Total loans 3,927     13,973     3,927 13,973  
Total assets 17,258     28,553     17,258 28,553  
Total funds borrowed $ 14,180     $ 23,478     $ 14,180 $ 23,478  
Selected Financial Ratios                  
Return on average assets 26.70%     (13.92%)     73.52% 2.27%  
Return on average equity 172.77%     (82.88%)     463.36% 13.73%  
Interest yield 35.22%     2.62%     29.27% 4.51%  
Net interest margin, gross 42.32%     (1.17%)     28.38% 0.41%  
Net interest margin, net of allowance 77.54%     (3.62%)     72.66% 1.25%  
Reserve coverage 42.97%     68.68%     42.97% 68.68%  
Delinquency status 0.00% [1]     2.24% [2]     0.00% [3] 0.00% [4]  
Charge-off (recovery) ratio (172.06%) [5]     (41.15%) [6]     (130.08%) [7] (48.19%) [8]  
Intersegment Eliminations [Member]                  
Segment Reporting Disclosure [Line Items]                  
Total interest income $ 1,377     $ 881     $ 4,385 $ 1,772  
Total interest expense 2,293     1,645     6,839 4,785  
Net interest income (loss) (916)     (764)     (2,454) (3,013)  
Provision (benefit) for credit losses (54)     (1)     (66) 152  
Net interest income (loss) after loss provision (862)     (763)     (2,388) (3,165)  
Other income (loss), net 451     403     937 1,450  
Other expenses (3,469)     (4,802)     (11,898) (13,698)  
Income before income taxes (3,880)     (5,162)     (13,349) (15,413)  
Income tax (provision) benefit 1,355     1,352     3,884 4,121  
Net income (loss) after taxes (2,525)     (3,810)     (9,465) (11,292)  
Balance Sheet Data                  
Total loans 1,841     773     1,841 773  
Total assets 396,759     353,638     396,759 353,638  
Total funds borrowed $ 323,638     $ 290,784     $ 323,638 $ 290,784  
Selected Financial Ratios                  
Return on average assets (2.56%)     (4.10%)     (3.31%) (4.07%)  
Return on average equity (16.56%)     (24.45%)     (20.93%) (24.68%)  
[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.
v3.23.3
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2023
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description employment agreements expire at various dates through 2027
Future minimum payments $ 11.0
Other commitment $ 0.0
v3.23.3
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 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
v3.23.3
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Financial assets      
Equity investments $ 10,542 $ 10,293  
Investment securities 53,175 48,492  
Loans receivable 2,203,038 1,916,953 $ 1,855,510
Equity securities, fair value 1,700 1,700  
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents and federal funds sold [1] 127,642 105,598  
Equity investments 10,542 10,293  
Investment securities 53,175 48,492  
Loans receivable 2,123,905 1,853,108  
Accrued interest receivable [2] 13,593 12,613  
Equity securities, fair value [3] 1,671 1,724  
Financial liabilities      
Funds borrowed 2,099,918 1,833,484  
Accrued interest payable [2] 4,624 4,790  
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents and federal funds sold [1] 127,642 105,598  
Equity investments 10,542 10,293  
Investment securities 53,175 48,492  
Loans receivable 2,123,905 1,853,108  
Accrued interest receivable [2] 13,593 12,613  
Equity securities, fair value [3] 1,671 1,724  
Financial liabilities      
Funds borrowed 2,099,918 1,833,484  
Accrued interest payable [2] $ 4,624 $ 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 September 30, 2023 and $1.3 million as of December 31, 2022. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
v3.23.3
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Sep. 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
v3.23.3
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets    
Interest-bearing deposits $ 1,300  
Equity securities, fair value 1,700 $ 1,700
Fair Value Recurring [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Available for sale investment securities 53,175 48,492
Equity securities, fair value [1] 1,671 1,724
Total 56,096 [2] 51,466 [3]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,671 1,724
Total 1,671 [2] 1,724 [3]
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Available for sale investment securities 53,175 48,492
Total $ 54,425 [2] $ 49,742 [3]
[1] Included within other assets on the balance sheet.
[2] Total unrealized losses of $1.2 million and $1.6 million, net of tax, was included in other comprehensive income for the three and nine months ended September 30, 2023 related to these assets.
[3] Total unrealized losses of $4.4 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2022 related to these assets.
v3.23.3
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Mar. 31, 2023
Sep. 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 $ (1,200) $ 506 $ (1,600) $ (4,400)
v3.23.3
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Sep. 30, 2023
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Assets            
Equity investments $ 1,700   $ 1,700      
Impaired loans 15,600   19,500      
Loan collateral in process of foreclosure 15,923 [1] $ 16,803 21,819 [1] $ 24,331 $ 26,974 $ 37,430
Fair Value, Nonrecurring            
Assets            
Equity investments 10,542   10,293      
Impaired loans 20,648   32,133      
Loan collateral in process of foreclosure 15,923   21,819      
Total 47,113   64,245      
Fair Value, Nonrecurring | Level 3 [Member]            
Assets            
Equity investments 10,542   10,293      
Impaired loans 20,648   32,133      
Loan collateral in process of foreclosure 15,923   21,819      
Total $ 47,113   $ 64,245      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.2 million as of September 30, 2023 and $7.5 million as of December 31, 2022.
v3.23.3
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Jun. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity investments $ 1,700,000 $ 1,700,000        
Principal portion of loans serviced, fair value 15,600,000 19,500,000        
Loan collateral in process of foreclosure $ 15,923,000 [1] $ 21,819,000 [1] $ 16,803,000 $ 24,331,000 $ 26,974,000 $ 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 0        
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 0.0804 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 [2] $ 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 2,900 [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 [2] 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 10,269,000 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 20,648,000 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 $ 15,923,000 $ 21,819,000        
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $6.2 million as of September 30, 2023 and $7.5 million as of December 31, 2022.
[2] Represents amount net of liquidation costs.
[3] Represents amount net of liquidation costs.
[4] Relates to the recreation portfolio.
[5] Relates to the recreation portfolio.
v3.23.3
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 9 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Sep. 30, 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  
v3.23.3
Subsequent Event - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Oct. 18, 2023
Dec. 31, 2023
Forecast [Member]    
Subsequent Event [Line Items]    
Recovery of debt related costs   $ 8.0
Subsequent Event [Member]    
Subsequent Event [Line Items]    
Net proceeds from borrower $ 9.4