MEDALLION FINANCIAL CORP, 10-Q filed on 07 May 24
 | XBRL Documents
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Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2024
May 06, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2024  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   23,376,542
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 $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.24.1.u1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Assets    
Cash and cash equivalents $ 54,778 $ 52,591
Federal funds sold 114,347 97,254
Investment securities 53,038 54,282
Equity investments 16,374 11,430
Loans 2,228,426 2,215,886
Allowance for credit losses (83,827) [1] (84,235) [2]
Net loans receivable 2,144,599 2,131,651
Goodwill 150,803 150,803
Intangible assets, net 20,230 20,591
Property, equipment, and right-of-use lease asset, net 14,024 14,076
Accrued interest receivable 12,673 13,538
Loan collateral in process of foreclosure [3] 10,198 11,772
Income tax receivable 671
Other assets 27,698 29,168
Total assets 2,618,762 2,587,827
Liabilities    
Deposits [4] 1,879,061 1,866,657
Long-term debt [5] 225,558 235,544
Short-term borrowings 32,500 8,000
Deferred tax liabilities, net 24,846 21,207
Operating lease liabilities 6,710 7,019
Accrued interest payable 6,077 6,822
Income tax payable 1,980
Accounts payable and accrued expenses [6] 24,206 30,804
Total liabilities 2,200,938 2,176,053
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 - 29,243,878 shares at March 31, 2024 and 29,051,800 shares at December 31, 2023 issued) 292 291
Additional paid in capital 288,685 288,046
Treasury stock (5,866,314 shares at March 31, 2024 and 5,602,154 at December 31, 2023) (47,664) (45,538)
Accumulated other comprehensive loss (3,846) (3,696)
Retained earnings 111,569 103,883
Total stockholders’ equity 349,036 342,986
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 417,824 411,774
Total liabilities and equity $ 2,618,762 $ 2,587,827
Number of shares outstanding 23,377,564 23,449,646
Book value per share $ 14.93 $ 14.63
[1] As of March 31, 2024 and March 31, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[2] 2023 beginning balance 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 $5.8 million as of March 31, 2024 and $6.2 million as of December 31, 2023.
[4] Includes $4.3 million of deferred financing costs as of both March 31, 2024 and December 31, 2023. Refer to Note 5 for more details.
[5] Includes $4.2 million of deferred financing costs as of both March 31, 2024 and December 31, 2023. Refer to Note 5 for more details.
[6] Includes the short-term portion of lease liabilities of $2.3 million and $2.5 million as of March 31, 2024 and December 31, 2023. Refer to Note 6 for more details.
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Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
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 29,243,878 29,051,800
Treasury stock,shares 5,866,314 5,602,154
Loan collateral in process of foreclosure, financed sales collateral to third parties $ 5.8 $ 6.2
Short term lease liabilities 2.3 2.5
Deposits [Member]    
Deferred financing costs 4.3 4.3
Long-Term Debt [Member]    
Deferred financing costs $ 4.2 $ 4.2
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Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Interest and fees on loans $ 65,221 $ 55,169
Interest and dividends on investment securities 1,849 674
Total interest income [1] 67,070 55,843
Interest on deposits 14,752 8,599
Interest on long-term debt 4,255 2,853
Interest on short-term borrowings 146 788
Total interest expense 19,153 12,240
Net interest income (loss) 47,917 43,603
Provision for credit losses 17,201 4,038
Net interest income after provision for credit losses 30,716 39,565
Other income (loss)    
Gain (loss) on equity investments 4,167 (90)
Gain on sale of loans and taxi medallions 588 1,855
Write-down of loan collateral in process of foreclosure 0 (252)
Other income 648 570
Total other income, net 5,403 2,083
Other expenses    
Salaries and employee benefits 9,457 8,836
Loan servicing fees 2,470 2,222
Collection costs 1,467 1,538
Regulatory fees 977 682
Professional fees 771 1,707
Rent expense 657 623
Amortization of intangible assets 361 360
Other expenses 2,065 2,425
Total other expenses 18,225 18,393
Income before income taxes 17,894 23,255
Income tax provision 6,358 6,382
Net income after taxes 11,536 16,873
Less: income attributable to the non-controlling interest 1,512 1,512
Total net income attributable to Medallion Financial Corp. $ 10,024 $ 15,361
Basic net income per share $ 0.44 $ 0.69
Diluted net income per share $ 0.42 $ 0.67
Weighted average common shares outstanding    
Basic 22,641,385 22,342,911
Diluted 23,765,045 22,975,457
[1] Included in interest income is $0.6 million of paid-in-kind interest for the three months ended March 31, 2024 and $0.3 million for the three months ended March 31, 2023.
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Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Interest paid in kind $ 0.6 $ 0.3
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Consolidated Statements of Other Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 11,536 $ 16,873
Other comprehensive income (loss), net of tax (150) 506
Total comprehensive income 11,386 17,379
Less comprehensive income attributable to the non-controlling interest 1,512 1,512
Total comprehensive income attributable to Medallion Financial Corp. $ 9,874 $ 15,867
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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, 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   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                            
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   28,663,827   (5,602,154)           28,663,827   (5,602,154)        
Exercise of stock options, shares [1] 68,945                              
Net change in unrealized gains on investments, net of tax $ (300)                              
Ending balance at Dec. 31, 2023 $ 411,774 $ 291 288,046 $ (45,538) 103,883 (3,696) 342,986 68,788                
Ending balance, shares at Dec. 31, 2023 23,449,646 29,051,800   (5,602,154)                        
Net income $ 11,536       10,024   10,024 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 1,496 $ 1 1,495       1,496                  
Issuance of restricted stock, net, shares   296,178                            
Withheld restricted stock for employees' tax obligations, shares   (116,275)                            
Withheld restricted stock for employees' tax obligations, value (944)   (944)       (944)                  
Forfeiture of restricted stock, net, shares   (1,208)                            
Exercise of stock options, value $ 88   88       88                  
Exercise of stock options, shares 13,383 [1] 13,383                            
Purchase of common stock (in Shares)       (264,160)                        
Purchase of common stock $ (2,126)     $ (2,126)     (2,126)                  
Dividends paid on common stock (2,338)       (2,338)   (2,338)                  
Net change in unrealized gains on investments, net of tax (150)         (150) (150)                  
Ending balance at Mar. 31, 2024 $ 417,824 $ 292 $ 288,685 $ (47,664) $ 111,569 $ (3,846) $ 349,036 $ 68,788                
Ending balance, shares at Mar. 31, 2024 23,377,564 29,243,878   (5,866,314)                        
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three months ended March 31, 2024 and was $0.1 million for the year ended December 31, 2023.
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Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares
Mar. 31, 2024
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]    
Dividends payable, amount per share $ 0.1 $ 0.08
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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income resulting from operations $ 11,536 $ 16,873
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for credit losses 17,201 4,038
Paid-in-kind interest income (608) (264)
Depreciation and amortization 1,381 1,300
Amortization of origination fees, net 2,007 2,173
Increase in deferred and other tax liabilities, net 6,290 6,437
Net change in value of loan collateral in process of foreclosure 3,240 2,330
Net (gains) loss on investments (4,167) 90
Net change in unrealized appreciation on other investments 0 (28)
Stock-based compensation expense 1,496 1,036
Increase in accrued interest receivable 865 378
Decrease (increase) in other assets 522 (8,605)
(Decrease) increase in accounts payable and accrued expenses (6,763) 4,120
Decrease in accrued interest payable (745) (751)
Net cash provided by operating activities 32,255 29,127
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (175,721) (230,846)
Proceeds from principal receipts, sales, and maturities of loans 138,748 143,891
Purchases of investments (795) (450)
Proceeds from principal receipts, sales, and maturities of investments 1,103 438
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 3,759 5,526
Net cash used for investing activities (32,906) (81,441)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 212,807 240,056
Repayments of time deposits and funds borrowed (185,900) (157,100)
Cash dividend paid on common stock (2,482) (1,870)
Distributions to non-controlling interests (1,512) (1,512)
Payment of withholding taxes on net settlement of vested stock (944) (768)
Treasury stock repurchased (2,126) 0
Proceeds from the exercise of stock options 88 292
Net cash provided by financing activities 19,931 79,098
NET INCREASE IN CASH AND CASH EQUIVALENTS 19,280 26,784
Cash, and cash equivalents beginning of period [1] 149,845 105,598
Cash and cash equivalents, end of period (1) [1] 169,125 132,382
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 18,976 12,372
Cash paid during the period for income taxes 10 143
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 5,425 $ 6,504
[1] Includes federal funds sold.
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Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ 10,024 $ 15,361
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Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Non Rule 10b5-1 Arrangement Modified false
Rule 10b5-1 Arrangement Modified false
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Organization of Medallion Financial Corp. and its Subsidiaries
 3 Months Ended
Mar. 31, 2024
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, collector automobiles, 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 Medallion Capital, 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, which historically originated and serviced taxi medallion and commercial loans and was an SBIC through 2023. Medallion Capital and MFC, as SBICs, are regulated by the Small Business Administration, or SBA. Medallion Capital is 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 trust 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 March 31, 2024, 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.
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Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
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.

 

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. As of March 31, 2024, 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 $16.4 million and $11.4 million at March 31, 2024 and December 31, 2023, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. As of March 31, 2024, cumulative appreciation of $4.7 million and cumulative impairment of $4.0 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both March 31, 2024 and December 31, 2023, 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 March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

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

 

$

(19

)

 

$

28

 

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

 

$

(19

)

 

$

28

 

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at both March 31, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for the three months ended March 31, 2024 and 2023. 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 March 31, 2024 and December 31, 2023, net loan origination costs were $40.7 million and $40.0 million. Net amortization to income was $2.0 million for the three months ended March 31, 2024 and was $1.9 million for the three months ended March 31, 2023.

 

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. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. Consumer loans are placed on nonaccrual when they become 90 days past due, or earlier if they enter bankruptcy, and are charged-off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $16.1 million at March 31, 2024, or 0.74% of the total loan portfolio, compared to $16.8 million, or 0.77%, at December 31, 2023. 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 $14.0 million at March 31, 2024 and December 31, 2023. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of March 31, 2024 and December 31, 2023.

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 delinquent loan performance 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

 

Taxi 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 March 31, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of March 31, 2024 and December 31, 2023, the Company had intangible assets of $20.2 million and $20.6 million. Amortization expense on the intangible assets for the three months ended March 31, 2024 and 2023 was $0.4 million. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2023, concluding that there was no impairment of these assets.

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

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Brand-related intellectual property

 

$

15,400

 

 

$

15,675

 

Home improvement contractor relationships

 

 

4,830

 

 

 

4,916

 

Total intangible assets

 

$

20,230

 

 

$

20,591

 

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 three months ended March 31, 2024 and 2023.

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 for the three months ended March 31, 2024 and 2023. 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 $8.5 million as of both March 31, 2024 and December 31, 2023.

 

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 March 31,

 

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

 

2024

 

 

2023

 

Net income attributable to common stockholders

 

$

10,024

 

 

$

15,361

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,641,385

 

 

 

22,342,911

 

Effect of restricted stock grants

 

 

610,333

 

 

 

483,429

 

Effect of dilutive stock options

 

 

254,793

 

 

 

149,117

 

Effect of performance stock unit grants

 

 

258,534

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,765,045

 

 

 

22,975,457

 

Basic net income per share

 

$

0.44

 

 

$

0.69

 

Diluted net income per share

 

 

0.42

 

 

 

0.67

 

Potentially dilutive common shares excluded from the above calculations aggregated 9,000 shares as of March 31, 2024 and 2023.

Stock Compensation

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

During the three months ended March 31, 2024 and 2023, the Company issued 296,178 and 304,749 restricted shares of stock-based compensation awards, 215,687 and 0 performance stock units, and no restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.5 million, or $0.06 per share, for the three months ended March 31, 2024, and $1.0 million, or $0.05 per diluted common share, for the three months ended March 31, 2023, of non-cash stock-based compensation expense related to the grants. As of March 31, 2024, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $9.3 million, which is expected to be recognized over the next 12 quarters.

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of March 31, 2024, the Bank’s Tier 1 leverage ratio was 16.4%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

March 31, 2024

 

 

December 31, 2023

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

298,662

 

 

$

293,774

 

Tier 1 capital

 

 

 

 

 

 

 

 

367,450

 

 

 

362,561

 

Total capital

 

 

 

 

 

 

 

 

395,297

 

 

 

390,153

 

Average assets

 

 

 

 

 

 

 

 

2,236,357

 

 

 

2,232,816

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,176,939

 

 

 

2,155,641

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.4

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.7

 

 

 

13.6

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.9

 

 

 

16.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.2

 

 

 

18.1

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

In the table above, the minimum risk-based ratios as of March 31, 2024 and December 31, 2023 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2024 and December 31, 2023.

Recently Issued and Adopted Accounting Standards

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.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, or Topic 280: Improvements to Reportable Segment Disclosures. The main objective of this update is to provide transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2023. The Company is assessing the impact of the update on the accompanying financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes, or Topic 740: Improvements to Income Tax Disclosures. The main objective of this update is to improve financial reporting disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update are effective for the annual periods beginning after December 15, 2024. 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.
v3.24.1.u1
Investment Securities
 3 Months Ended
Mar. 31, 2024
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of March 31, 2024 and December 31, 2023:

March 31, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

43,804

 

 

$

—

 

 

$

(5,074

)

 

$

38,730

 

State and municipalities

 

 

13,550

 

 

 

13

 

 

 

(1,415

)

 

 

12,148

 

Agency bonds

 

 

2,185

 

 

 

—

 

 

 

(25

)

 

 

2,160

 

Total

 

$

59,539

 

 

$

13

 

 

$

(6,514

)

 

$

53,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

44,653

 

 

$

—

 

 

$

(4,791

)

 

$

39,862

 

State and municipalities

 

 

13,733

 

 

 

21

 

 

 

(1,501

)

 

 

12,253

 

Agency bonds

 

 

2,187

 

 

 

—

 

 

 

(20

)

 

 

2,167

 

Total

 

$

60,573

 

 

$

21

 

 

$

(6,312

)

 

$

54,282

 

The amortized cost and estimated market value of investment securities at March 31, 2024 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

3,970

 

 

$

3,886

 

Due after one year through five years

 

 

5,885

 

 

 

5,662

 

Due after five years through ten years

 

 

8,484

 

 

 

7,414

 

Due after ten years

 

 

41,200

 

 

 

36,076

 

Total

 

$

59,539

 

 

$

53,038

 

The following tables show information pertaining to securities with gross unrealized losses at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

March 31, 2024
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(39

)

 

$

1,875

 

 

$

(5,035

)

 

$

36,766

 

State and municipalities

 

 

(1

)

 

 

41

 

 

 

(1,414

)

 

 

12,064

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(25

)

 

 

2,160

 

Total

 

$

(40

)

 

$

1,916

 

 

$

(6,474

)

 

$

50,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2023
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(78

)

 

$

5,797

 

 

$

(4,714

)

 

$

33,971

 

State and municipalities

 

 

(204

)

 

 

4,839

 

 

 

(1,296

)

 

 

7,371

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

2,167

 

Total

 

$

(282

)

 

$

10,636

 

 

$

(6,030

)

 

$

43,509

 

As of March 31, 2024 and December 31, 2023, the Company had 60 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 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.
v3.24.1.u1
Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023.

 

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,365,165

 

 

 

61

%

 

$

1,336,226

 

 

 

60

%

Home improvement

 

 

752,262

 

 

 

34

 

 

 

760,617

 

 

 

34

 

Commercial

 

 

106,570

 

 

 

5

 

 

 

114,827

 

 

 

5

 

Taxi medallion

 

 

3,560

 

 

*

 

 

 

3,663

 

 

*

 

Strategic partnership

 

 

869

 

 

*

 

 

 

553

 

 

*

 

Total gross loans

 

 

2,228,426

 

 

 

100

%

 

 

2,215,886

 

 

 

100

%

Allowance for credit losses

 

 

(83,827

)

 

 

 

 

 

(84,235

)

 

 

 

Total net loans

 

$

2,144,599

 

 

 

 

 

$

2,131,651

 

 

 

 

(*) Less than 1%.

The following tables show the activity of the gross loans for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2023

 

$

1,336,226

 

 

$

760,617

 

 

$

114,827

 

 

$

3,663

 

 

$

553

 

 

$

2,215,886

 

Loan originations

 

 

105,765

 

 

 

51,576

 

 

 

—

 

 

 

—

 

 

 

15,746

 

 

 

173,087

 

Principal payments, sales, maturities, and recoveries

 

 

(64,886

)

 

 

(54,917

)

 

 

(8,872

)

 

 

(103

)

 

 

(15,430

)

 

 

(144,208

)

Charge-offs

 

 

(18,101

)

 

 

(4,898

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(22,999

)

Transfer to loan collateral in process of foreclosure, net

 

 

5,425

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,425

 

Amortization of origination costs

 

 

(2,952

)

 

 

938

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

(2,007

)

FASB origination costs, net

 

 

3,688

 

 

 

(1,054

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,634

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

608

 

 

 

—

 

 

 

—

 

 

 

608

 

Gross loans – March 31, 2024

 

$

1,365,165

 

 

$

752,262

 

 

$

106,570

 

 

$

3,560

 

 

$

869

 

 

$

2,228,426

 

 

Three Months Ended March 31, 2023
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

Loan originations

 

 

101,681

 

 

 

94,981

 

 

 

3,000

 

 

 

623

 

 

 

27,006

 

 

 

227,291

 

Principal payments, sales, maturities, and recoveries

 

 

(56,217

)

 

 

(49,855

)

 

 

(834

)

 

 

(4,395

)

 

 

(25,808

)

 

 

(137,109

)

Charge-offs

 

 

(12,590

)

 

 

(1,914

)

 

 

—

 

 

 

(3,593

)

 

 

—

 

 

 

(18,097

)

Transfer to loan collateral in process of foreclosure, net

 

 

(4,357

)

 

 

—

 

 

 

—

 

 

 

(2,147

)

 

 

—

 

 

 

(6,504

)

Amortization of origination costs

 

 

(2,759

)

 

 

586

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,173

)

FASB origination costs, net

 

 

4,110

 

 

 

(555

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,555

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

264

 

 

 

—

 

 

 

—

 

 

 

264

 

Gross loans – March 31, 2023

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

 

The following table sets forth the activity in the allowance for credit losses for the three months ended March 31, 2024 and 2023.

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Allowance for credit losses – beginning balance (1)

 

$

84,235

 

 

$

63,845

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

13,712

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(18,101

)

 

 

(12,590

)

Home improvement

 

 

(4,898

)

 

 

(1,914

)

Commercial

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

(3,593

)

Total charge-offs

 

 

(22,999

)

 

 

(18,097

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

3,548

 

 

 

2,771

 

Home improvement

 

 

911

 

 

 

632

 

Commercial

 

 

20

 

 

 

10

 

Taxi medallion

 

 

911

 

 

 

3,369

 

Total recoveries

 

 

5,390

 

 

 

6,782

 

Net charge-offs (2)

 

 

(17,609

)

 

 

(11,315

)

Provision for credit losses

 

 

17,201

 

 

 

4,038

 

Allowance for credit losses – ending balance (3)

 

$

83,827

 

 

$

70,280

 
(1)
2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
(2)
As of March 31, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.7 million, including $105.5 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
(3)
As of March 31, 2024 and March 31, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

The following table sets forth the gross charge-offs for the three months ended March 31, 2024, by the year of origination:

(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Recreation

 

$

—

 

 

$

3,763

 

 

$

6,818

 

 

$

3,497

 

 

$

1,289

 

 

$

2,734

 

 

$

18,101

 

Home improvement

 

 

—

 

 

 

1,524

 

 

 

1,680

 

 

 

1,163

 

 

 

287

 

 

 

244

 

 

 

4,898

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

5,287

 

 

$

8,498

 

 

$

4,660

 

 

$

1,576

 

 

$

2,978

 

 

$

22,999

 

The following table sets forth the gross charge-offs for the three months ended March 31, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

—

 

 

$

3,608

 

 

$

3,070

 

 

$

1,671

 

 

$

1,554

 

 

$

2,687

 

 

$

12,590

 

Home improvement

 

 

—

 

 

 

904

 

 

 

628

 

 

 

143

 

 

 

131

 

 

 

108

 

 

 

1,914

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,593

 

 

 

3,593

 

Total

 

$

—

 

 

$

4,512

 

 

$

3,698

 

 

$

1,814

 

 

$

1,685

 

 

$

6,388

 

 

$

18,097

 

The following tables set forth the allowance for credit losses by type as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

60,011

 

 

 

72

%

 

 

4.40

%

 

 

274.26

%

Home improvement

 

 

17,930

 

 

 

21

 

 

 

2.38

 

 

 

81.94

 

Commercial

 

 

4,384

 

 

 

5

 

 

 

4.11

 

 

 

20.04

 

Taxi medallion

 

 

1,502

 

 

 

2

 

 

 

42.20

 

 

 

6.86

 

Total

 

$

83,827

 

 

 

100

%

 

 

3.76

%

 

 

383.10

%

 

December 31, 2023
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

57,532

 

 

 

68

%

 

 

4.31

%

 

 

221.50

%

Home improvement

 

 

21,019

 

 

 

25

 

 

 

2.76

 

 

 

80.92

 

Commercial

 

 

4,148

 

 

 

5

 

 

 

3.61

 

 

 

15.97

 

Taxi medallion

 

 

1,536

 

 

 

2

 

 

 

41.93

 

 

 

5.91

 

Total

 

$

84,235

 

 

 

100

%

 

 

3.80

%

 

 

324.31

%

 

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

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Total nonaccrual loans

 

$

21,881

 

 

$

25,974

 

Interest foregone quarter to date

 

 

309

 

 

 

928

 

Amount of foregone interest applied to principal in the quarter

 

 

64

 

 

 

238

 

Interest foregone life-to-date

 

 

1,101

 

 

 

2,119

 

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

 

 

816

 

 

 

822

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

1.0

%

 

 

1.2

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

383.1

%

 

 

324.3

%

The following tables present the performance status of loans as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,358,293

 

 

$

6,872

 

 

$

1,365,165

 

 

 

0.50

%

Home improvement

 

 

750,903

 

 

 

1,359

 

 

 

752,262

 

 

 

0.18

 

Commercial

 

 

96,480

 

 

 

10,090

 

 

 

106,570

 

 

 

9.47

 

Taxi medallion

 

 

—

 

 

 

3,560

 

 

 

3,560

 

 

 

100.00

 

Strategic partnership

 

 

869

 

 

 

—

 

 

 

869

 

 

 

—

 

Total

 

$

2,206,545

 

 

$

21,881

 

 

$

2,228,426

 

 

 

0.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,326,567

 

 

$

9,659

 

 

$

1,336,226

 

 

 

0.72

%

Home improvement

 

 

759,128

 

 

 

1,489

 

 

 

760,617

 

 

 

0.20

 

Commercial

 

 

103,664

 

 

 

11,163

 

 

 

114,827

 

 

 

9.72

 

Taxi medallion

 

 

—

 

 

 

3,663

 

 

 

3,663

 

 

 

100.00

 

Strategic partnership

 

 

553

 

 

 

—

 

 

 

553

 

 

 

—

 

Total

 

$

2,189,912

 

 

$

25,974

 

 

$

2,215,886

 

 

 

1.17

%

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

The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2024 and December 31, 2023, all of which had an allowance recorded against the principal balance.

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,872

 

 

$

6,872

 

 

$

302

 

 

$

9,655

 

 

$

9,655

 

 

$

416

 

Home improvement

 

 

1,359

 

 

 

1,359

 

 

 

32

 

 

 

1,493

 

 

 

1,493

 

 

 

41

 

Commercial

 

 

10,090

 

 

 

10,243

 

 

 

2,320

 

 

 

11,163

 

 

 

11,301

 

 

 

1,897

 

Taxi medallion

 

 

3,560

 

 

 

4,223

 

 

 

1,502

 

 

 

3,663

 

 

 

4,347

 

 

 

1,536

 

Total nonperforming loans with an allowance

 

$

21,881

 

 

$

22,697

 

 

$

4,156

 

 

$

25,974

 

 

$

26,796

 

 

$

3,890

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,721

 

 

$

16

 

 

$

4,656

 

 

$

13

 

Home improvement

 

 

1,363

 

 

 

1

 

 

 

441

 

 

 

1

 

Commercial

 

 

10,243

 

 

 

—

 

 

 

5,652

 

 

 

—

 

Taxi medallion

 

 

4,254

 

 

 

—

 

 

 

6,093

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

22,581

 

 

$

17

 

 

$

16,842

 

 

$

14

 

 

The following tables show the aging of all loans as of March 31, 2024 and December 31, 2023.

March 31, 2024

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

37,205

 

 

$

11,905

 

 

$

6,374

 

 

$

55,484

 

 

$

1,265,310

 

 

$

1,320,794

 

 

$

—

 

Home improvement

 

 

3,495

 

 

 

1,680

 

 

 

1,362

 

 

 

6,537

 

 

 

749,294

 

 

 

755,831

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

8,396

 

 

 

8,396

 

 

 

99,190

 

 

 

107,586

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

100

 

 

 

—

 

 

 

100

 

 

 

3,460

 

 

 

3,560

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

869

 

 

 

869

 

 

 

—

 

Total

 

$

40,700

 

 

$

13,685

 

 

$

16,132

 

 

$

70,517

 

 

$

2,118,123

 

 

$

2,188,640

 

 

$

—

 
(1)
Excludes $40.7 million of capitalized loan origination costs.

 December 31, 2023

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

40,282

 

 

$

15,039

 

 

$

9,095

 

 

$

64,416

 

 

$

1,228,175

 

 

$

1,292,591

 

 

$

—

 

Home improvement

 

 

3,936

 

 

 

2,562

 

 

 

1,502

 

 

 

8,000

 

 

 

756,069

 

 

 

764,069

 

 

 

—

 

Commercial

 

 

—

 

 

 

2,156

 

 

 

6,240

 

 

 

8,396

 

 

 

107,140

 

 

 

115,536

 

 

 

—

 

Taxi medallion

 

 

201

 

 

 

—

 

 

 

—

 

 

 

201

 

 

 

3,462

 

 

 

3,663

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

553

 

 

 

553

 

 

 

—

 

Total

 

$

44,419

 

 

$

19,757

 

 

$

16,837

 

 

$

81,013

 

 

$

2,095,399

 

 

$

2,176,412

 

 

$

—

 
(1)
Excludes $40.0 million of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the taxi medallion loans was approximately 188% and 183% as of March 31, 2024 and December 31, 2023.

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 months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024
(Dollars in thousands)

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2023

 

$

1,779

 

 

$

9,993

 

 

$

11,772

 

Transfer from loans, net

 

 

5,425

 

 

 

—

 

 

 

5,425

 

Sales

 

 

—

 

 

 

(39

)

 

 

(39

)

Cash payments received

 

 

(2,447

)

 

 

(1,273

)

 

 

(3,720

)

Collateral valuation and other adjustments

 

 

(3,282

)

 

 

42

 

 

 

(3,240

)

Loan collateral in process of foreclosure – March 31, 2024

 

$

1,475

 

 

$

8,723

 

 

$

10,198

 

 

Three Months Ended March 31, 2023
(Dollars in thousands)

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 

Transfer from loans, net

 

 

4,357

 

 

 

2,147

 

 

 

6,504

 

Sales

 

 

(2,195

)

 

 

(15

)

 

 

(2,210

)

Cash payments received

 

 

—

 

 

 

(3,317

)

 

 

(3,317

)

Collateral valuation adjustments

 

 

(2,077

)

 

 

(252

)

 

 

(2,329

)

Loan collateral in process of foreclosure – March 31, 2023

 

$

1,461

 

 

$

19,006

 

 

$

20,467

 

As of March 31, 2024, taxi medallion loans in the process of foreclosure included 329 taxi medallions in the New York City market, 193 taxi medallions in the Chicago market, 25 taxi medallions in the Newark market, and 31 taxi medallions in various other markets.
v3.24.1.u1
Funds Borrowed
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

 

Payments Due for the Twelve Months Ending March 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

 

March 31, 2024 (1)

 

 

December 31, 2023(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

721,155

 

 

$

479,582

 

 

$

350,070

 

 

$

157,800

 

 

$

173,239

 

 

$

—

 

 

$

1,881,846

 

 

$

1,869,439

 

 

 

3.17

%

Retail and privately placed notes

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

39,000

 

 

 

12,500

 

 

 

136,500

 

 

 

139,500

 

 

 

8.08

 

SBA debentures and borrowings

 

 

12,500

 

 

 

15,500

 

 

 

4,500

 

 

 

—

 

 

 

2,500

 

 

 

37,750

 

 

 

72,750

 

 

 

75,250

 

 

 

3.54

 

Trust preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

7.71

 

Federal reserve and other borrowings

 

 

20,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,000

 

 

 

—

 

 

 

5.95

 

Total

 

$

753,655

 

 

$

526,332

 

 

$

354,570

 

 

$

211,550

 

 

$

214,739

 

 

$

83,250

 

 

$

2,144,096

 

 

$

2,117,189

 

 

 

3.59

%
(1)
Excludes deferred financing costs of $8.5 million as of both March 31, 2024 and December 31, 2023.
(2)
Weighted average contractual rate as of March 31, 2024.
(3)
Balance excludes $1.5 million of strategic partner reserve deposits as of both March 31, 2024 and December 31, 2023.

(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. Additionally, the Bank raises deposits through listing services and, as of March 31, 2024 and December 31, 2023, the Bank had $12.1 million and $11.8 million in listing service deposit balances from other financial institutions. In April 2023, the Bank began to originate retail savings deposits through a third-party service provider and, as of March 31, 2024 and December 31, 2023, the Bank had $12.4 million and $14.9 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of March 31, 2024.

(Dollars in thousands)

 

March 31, 2024

 

Three months or less

 

$

202,913

 

Over three months through six months

 

 

186,507

 

Over six months through one year

 

 

331,735

 

Over one year

 

 

1,160,691

 

Deposits

 

 

1,881,846

 

 Strategic partner collateral deposits

 

 

1,500

 

Total deposits

 

$

1,883,346

 

(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 March 31, 2024, the Bank had approximately $36.9 million in investment securities pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is 100% of fair value, for a total of approximately $36.9 million in secured borrowing capacity, of which none was utilized as of March 31, 2024.

The Bank has borrowing 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 March 31, 2024, $20.0 million was utilized.

(C) PRIVATELY PLACED NOTES

In December 2023, the Company completed a private placement to certain institutional investors of $12.5 million aggregate principal amount of 9.00% unsecured senior notes due December 2033, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, which included the repayment of the remaining 8.25% notes that matured in March 2024.

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 in 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. The remaining $3.0 million principal amount outstanding was repaid in March 2024 at maturity.

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for Medallion Capital and FSVC, typically for a four and a half year term and a 1% fee. 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 bore an interest rate of 3.25% with all remaining unpaid principal and interest being due on April 30, 2024, the maturity date. In October 2023, FSVC repaid, in full, all amounts due to the SBA under the SBA Note.

On July 10, 2023, Medallion Capital accepted a commitment from the SBA for $20.0 million in debenture financing. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with an additional $0.4 million fee to be paid pro-rata as Medallion Capital draws under the commitment. As of March 31, 2024, $9.8 million of the commitment had been drawn, and $8.0 million was drawable, with the balance of $2.2 million drawable upon the infusion of $1.1 million of capital from either the capitalization of retained earnings or a capital infusion into Medallion Capital from the Company.

On February 28, 2024, Medallion Capital accepted a commitment from the SBA for $18.5 million in debenture financing with a ten-year term. Medallion Capital can draw funds under the commitment, in whole or in part, until September 30, 2028. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with the remaining $0.4 million of the fee to be paid pro rata as Medallion Capital draws under the commitment. As of March 31, 2024, none of the commitment had been drawn, with the entire $18.5 million drawable upon the infusion of $9.3 million of capital from either the capitalization of retained earnings or a capital infusion into Medallion Capital from the Company.

(E) TRUST 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 trust preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. With the cessation of LIBOR on June 30, 2023, 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 trust preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the trust preferred securities were repurchased from a third-party investor. As of March 31, 2024, $33.0 million was outstanding on the trust preferred securities.

(F) OTHER BORROWINGS

In January 2024, Medallion Capital entered into a $7.5 million revolving credit facility with a regional bank. The facility allows Medallion Capital to finance, on a short-term basis, investments for which it anticipates receiving financing from the SBA. The facility bears interest at a rate of 2.75% plus one month SOFR, has an annual facility fee of 0.1%, matures on January 1, 2025, and requires that Medallion Capital have total commitments available from the SBA of at least the total requested advance. As of March 31, 2024, the facility had no outstanding borrowings.

(G) 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 March 31, 2024, the Company was in compliance with all such covenants.
v3.24.1.u1
Leases
 3 Months Ended
Mar. 31, 2024
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 months ended March 31, 2024 and 2023.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Operating lease costs

 

$

604

 

 

$

597

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

657

 

 

 

623

 

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

 

 

(59

)

 

 

(56

)

The following table presents the breakout of the operating leases as of March 31, 2024 and December 31, 2023.

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Operating lease right-of-use assets

 

$

8,327

 

 

$

8,785

 

Other current liabilities

 

 

2,255

 

 

 

2,472

 

Operating lease liabilities

 

 

6,710

 

 

 

7,019

 

Total operating lease liabilities

 

 

8,965

 

 

 

9,491

 

Weighted average remaining lease term

 

4.4 years

 

 

4.9 years

 

Weighted average discount rate

 

 

5.56

%

 

 

5.47

%

At March 31, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2024

 

$

1,903

 

2025

 

 

2,546

 

2026

 

 

2,567

 

2027

 

 

1,342

 

2028

 

 

573

 

Thereafter

 

 

1,139

 

Total lease payments

 

 

10,070

 

Less imputed interest

 

 

1,105

 

Total operating lease liabilities

 

$

8,965

 
v3.24.1.u1
Income Taxes
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023.

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Goodwill and other intangibles

 

$

42,943

 

 

$

43,034

 

Provision for credit losses

 

 

(12,005

)

 

 

(13,032

)

Net operating loss carryforwards (1)

 

 

(3,803

)

 

 

(3,802

)

Accrued expenses, compensation, and other assets

 

 

(4,794

)

 

 

(6,976

)

Unrealized gains on other investments

 

 

(868

)

 

 

(1,877

)

Total deferred tax liability

 

 

21,473

 

 

 

17,347

 

Valuation allowance

 

 

3,373

 

 

 

3,860

 

Deferred tax liability, net

 

$

24,846

 

 

$

21,207

 
(1)
As of March 31, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of March 31, 2024.

 

The following table shows the components of the Company's tax provision for the three months ended March 31, 2024 and 2023:

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

Federal

 

$

1,729

 

 

$

2,583

 

State

 

 

643

 

 

 

789

 

Deferred

 

 

 

 

 

 

Federal

 

 

3,116

 

 

 

2,246

 

State

 

 

870

 

 

 

764

 

Net provision for income taxes

 

$

6,358

 

 

$

6,382

 

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three months ended March 31, 2024 and 2023.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Statutory Federal income tax provision at 21%

 

$

3,758

 

 

$

4,884

 

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

 

 

735

 

 

 

955

 

Non-deductible expenses

 

 

1,780

 

 

 

1,058

 

Other

 

 

85

 

 

 

(515

)

Total income tax provision

 

$

6,358

 

 

$

6,382

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of March 31, 2024.

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.
v3.24.1.u1
Stock Options and Restricted Stock
 3 Months Ended
Mar. 31, 2024
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 1,485,522 were issuable as of March 31, 2024. 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 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 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 March 31, 2024, 946,054 options on the Company’s common stock were outstanding under the Company’s plans, of which 857,609 options were vested. Additionally, as of March 31, 2024, there were 889,361 unvested shares of restricted stock, 512,131 unvested performance stock units, 85,892 unvested restricted stock units, and 162,615 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 three months ended March 31, 2024 and 2023.

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 2024 first quarter and the 2023 full year.

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2022

 

 

1,061,849

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(33,382

)

 

 

4.89 - 9.38

 

 

 

6.80

 

Exercised (1)

 

 

(68,945

)

 

 

4.89 - 7.25

 

 

 

6.44

 

Outstanding at December 31, 2023

 

 

959,522

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(85

)

 

 

 

4.89

 

 

 

4.89

 

Exercised (1)

 

 

(13,383

)

 

 

4.89 - 7.25

 

 

 

6.61

 

Outstanding at March 31, 2024 (2)

 

 

946,054

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

697,647

 

 

 

2.14 - 9.38

 

 

$

6.51

 

March 31, 2024 (2)

 

 

857,609

 

 

$

2.14 - 9.38

 

 

$

6.52

 
(1)
The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three months ended March 31, 2024 and was $0.1 million for the year ended December 31, 2023.
(2)
The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at March 31, 2024 and the related exercise price of the underlying options, was $1.3 million for outstanding options and $1.2 million for vested options as of March 31, 2024. The remaining contractual life was 5.9 years for outstanding options and 5.8 years for vested options at March 31, 2024.

The following table presents the activity for the unvested options outstanding under the plans described above for the 2024 first quarter.

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2023

 

 

261,875

 

 

$

4.89 - 7.25

 

 

$

6.49

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

(173,430

)

 

 

4.89 - 7.25

 

 

 

6.56

 

Outstanding at March 31, 2024

 

 

88,445

 

 

$

4.89 - 7.25

 

 

$

6.37

 

The intrinsic value of the options vested was $0.4 million for the three months ended March 31, 2024.

 

The following table presents the activity for the restricted stock programs for the 2024 first, quarter and the 2023 full year.

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2022

 

 

857,288

 

 

$

4.89 - 7.25

 

 

$

7.27

 

Granted

 

 

399,793

 

 

 

7.67 - 9.37

 

 

 

8.34

 

Cancelled

 

 

(12,807

)

 

 

4.89 - 8.40

 

 

 

7.24

 

Vested (1)

 

 

(248,898

)

 

 

4.89 - 7.68

 

 

 

7.10

 

Outstanding at December 31, 2023

 

 

995,376

 

 

$

4.89 - 9.37

 

 

$

7.74

 

Granted

 

 

296,178

 

 

 

 

8.97

 

 

 

8.97

 

Cancelled

 

 

(1,208

)

 

 

6.86 - 9.37

 

 

 

8.13

 

Vested (1)

 

 

(400,985

)

 

 

4.89 - 8.40

 

 

 

7.69

 

Outstanding at March 31, 2024 (2)

 

 

889,361

 

 

$

4.89 - 9.37

 

 

$

8.18

 
(1)
The aggregate fair value of the restricted stock vested was $2.7 million for the three months ended March 31, 2024 and $2.1 million for the year ended December 31, 2023.
(2)
The aggregate fair value of the restricted stock was $7.0 million as of March 31, 2024. The remaining vesting period was 2.9 years at March 31, 2024.

During the three months ended March 31, 2024, the Company did not grant any restricted stock units, or RSUs, and during the year ended December 31, 2023, granted 83,158 RSUs with a vesting date of June 22, 2024 at a grant price of $9.14. For the RSUs granted in 2023, 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 March 31, 2024, there were 248,507 RSUs outstanding, including 162,615 which had previously vested.

During the three months ended March 31, 2024, the Company granted 215,687 PSUs at a grant price of $8.97 and during the year ended December 31, 2023, granted 296,444 PSUs at a grant price of $6.08. The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three-year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date or are forfeited if the performance conditions are not met.
v3.24.1.u1
Segment Reporting
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

(9) SEGMENT REPORTING

The Company has five business segments, which include four lending segments 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 lending. 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, collector automobiles, and other consumer recreational equipment, of which RVs, boats, and collector automobiles make up 54%, 19%, and 10% of the segment portfolio, with no other product lines equal to or exceeding 10%, as of March 31, 2024. The highest concentrations of recreation loans are in Texas and Florida at 16% and 10% of loans outstanding and with no other states at or above 10% as of March 31, 2024. 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%, 20%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of March 31, 2024. The highest concentrations of home improvement loans are in Texas and Florida both at 10% of loans outstanding and with no other states at or above 10% as of March 31, 2024. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, construction, and wholesale trade making up 53%, 14%, and 12% of the loans outstanding as of March 31, 2024, with no other product lines exceeding 10% as of March 31, 2024. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and Texas each having 30%, 11%, and 10% of the segment portfolio, and no other states having a concentration at or greater than 10% as of March 31, 2024. 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 March 31, 2024.

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 months ended March 31, 2024.

Three Months Ended March 31, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

43,927

 

 

$

17,447

 

 

$

3,645

 

 

$

140

 

 

$

1,911

 

 

$

67,070

 

Total interest expense

 

 

9,645

 

 

 

5,634

 

 

 

1,098

 

 

 

28

 

 

 

2,748

 

 

 

19,153

 

Net interest income (loss)

 

 

34,282

 

 

 

11,813

 

 

 

2,547

 

 

 

112

 

 

 

(837

)

 

 

47,917

 

Provision (benefit) for credit losses

 

 

17,030

 

 

 

898

 

 

 

216

 

 

 

(944

)

 

 

1

 

 

 

17,201

 

Net interest income (loss) after loss provision

 

 

17,252

 

 

 

10,915

 

 

 

2,331

 

 

 

1,056

 

 

 

(838

)

 

 

30,716

 

Other income

 

 

250

 

 

 

2

 

 

 

4,202

 

 

 

639

 

 

 

310

 

 

 

5,403

 

Other expenses

 

 

(8,287

)

 

 

(4,114

)

 

 

(985

)

 

 

(743

)

 

 

(4,096

)

 

 

(18,225

)

Net income (loss) before taxes

 

 

9,215

 

 

 

6,803

 

 

 

5,548

 

 

 

952

 

 

 

(4,624

)

 

 

17,894

 

Income tax (provision) benefit

 

 

(3,274

)

 

 

(2,417

)

 

 

(1,971

)

 

 

(338

)

 

 

1,642

 

 

 

(6,358

)

Net income (loss) after taxes

 

$

5,941

 

 

$

4,386

 

 

$

3,577

 

 

$

614

 

 

$

(2,982

)

 

$

11,536

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,024

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,365,165

 

 

$

752,262

 

 

$

106,570

 

 

$

3,560

 

 

$

869

 

 

$

2,228,426

 

Total assets

 

 

1,322,761

 

 

 

738,551

 

 

 

102,331

 

 

 

8,611

 

 

 

446,508

 

 

 

2,618,762

 

Total funds borrowed

 

 

1,083,760

 

 

 

605,107

 

 

 

83,842

 

 

 

7,055

 

 

 

365,832

 

 

 

2,145,596

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.82

%

 

 

2.38

%

 

 

13.50

%

 

 

23.68

%

 

 

(2.78

)%

 

 

1.80

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

11.65

 

Return on average equity

 

 

11.44

 

 

 

14.93

 

 

 

84.71

 

 

 

148.65

 

 

 

(17.47

)

 

 

11.18

 

Interest yield

 

 

13.17

 

 

 

9.28

 

 

 

12.99

 

 

 

15.59

 

 

NM

 

 

 

11.34

 

Net interest margin, gross

 

 

10.28

 

 

 

6.28

 

 

 

9.08

 

 

 

12.47

 

 

NM

 

 

 

8.10

 

Net interest margin, net of allowance

 

 

10.75

 

 

 

6.45

 

 

 

9.43

 

 

 

21.57

 

 

NM

 

 

 

8.39

 

Reserve coverage

 

 

4.40

 

 

 

2.38

 

 

 

4.11

 

 

 

42.19

 

 

NM

 

 

 

3.76

 

Delinquency status (1)

 

 

0.48

 

 

 

0.18

 

 

 

7.80

 

 

 

—

 

 

NM

 

 

 

0.74

 

Charge-off (recovery) ratio (2)

 

 

4.36

 

 

 

2.12

 

 

 

(0.07

)

 

 

(101.47

)

 

NM

 

 

 

3.20

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

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following table presents segment data as of and for the three months ended March 31, 2023.

Three Months March 31, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

37,899

 

 

$

13,649

 

 

$

2,701

 

 

$

310

 

 

$

1,284

 

 

$

55,843

 

Total interest expense

 

 

5,904

 

 

 

3,279

 

 

 

809

 

 

 

67

 

 

 

2,181

 

 

 

12,240

 

Net interest income (loss)

 

 

31,995

 

 

 

10,370

 

 

 

1,892

 

 

 

243

 

 

 

(897

)

 

 

43,603

 

Provision (benefit) for credit losses

 

 

7,751

 

 

 

3,081

 

 

 

327

 

 

 

(7,084

)

 

 

(37

)

 

 

4,038

 

Net interest income (loss) after loss provision

 

 

24,244

 

 

 

7,289

 

 

 

1,565

 

 

 

7,327

 

 

 

(860

)

 

 

39,565

 

Other income

 

 

—

 

 

 

1

 

 

 

271

 

 

 

1,620

 

 

 

191

 

 

 

2,083

 

Other expenses

 

 

(7,803

)

 

 

(3,994

)

 

 

(420

)

 

 

(2,027

)

 

 

(4,149

)

 

 

(18,393

)

Net income (loss) before taxes

 

 

16,441

 

 

 

3,296

 

 

 

1,416

 

 

 

6,920

 

 

 

(4,818

)

 

 

23,255

 

Income tax (provision) benefit

 

 

(4,513

)

 

 

(905

)

 

 

(389

)

 

 

(1,899

)

 

 

1,324

 

 

 

(6,382

)

Net income (loss) after taxes

 

$

11,928

 

 

$

2,391

 

 

$

1,027

 

 

$

5,021

 

 

$

(3,494

)

 

$

16,873

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15,361

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

Total assets

 

 

1,179,965

 

 

 

660,846

 

 

 

101,392

 

 

 

20,335

 

 

 

389,132

 

 

 

2,351,670

 

Total funds borrowed

 

 

961,561

 

 

 

538,527

 

 

 

82,625

 

 

 

16,571

 

 

 

317,106

 

 

 

1,916,390

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.14

%

 

 

1.52

%

 

 

4.11

%

 

 

90.53

%

 

 

(3.79

)%

 

 

2.99

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

20.72

 

Return on average equity

 

 

25.63

 

 

 

9.37

 

 

 

25.39

 

 

 

558.90

 

 

 

(23.42

)

 

 

18.50

 

Interest yield

 

 

12.87

 

 

 

8.54

 

 

 

11.53

 

 

 

11.78

 

 

NM

 

 

 

10.78

 

Net interest margin, gross

 

 

10.86

 

 

 

6.49

 

 

 

8.08

 

 

 

9.23

 

 

NM

 

 

 

8.42

 

Net interest margin, net of allowance

 

 

11.33

 

 

 

6.62

 

 

 

8.32

 

 

 

28.89

 

 

NM

 

 

 

8.71

 

Reserve coverage

 

 

4.12

 

 

 

2.19

 

 

 

3.71

 

 

 

53.07

 

 

NM

 

 

 

3.54

 

Delinquency status (1)

 

 

0.36

 

 

 

0.07

 

 

 

0.08

 

 

 

—

 

 

NM

 

 

 

0.24

 

Charge-off ratio (2)

 

 

3.48

 

 

 

0.82

 

 

 

(0.16

)

 

 

29.84

 

 

NM

 

 

 

2.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(NM) Not meaningful.

(*) Line item is not applicable to segments.
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024, employment agreements expire at various dates through 2027, with future minimum payments under these agreements of approximately $9.9 million.

(B) OTHER COMMITMENTS

As of March 31, 2024, 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.
v3.24.1.u1
Related Party Transactions
 3 Months Ended
Mar. 31, 2024
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, Medallion Capital, 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 $260,988 per year, an increase from $250,950 per year in 2023. Mr. Rudnick received an annual cash bonus of $95,000 and $85,000 as well as an equity bonus in the amount of $52,000 and $50,000, during the three months ended March 31, 2024 and 2023.
v3.24.1.u1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2024
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, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At March 31, 2024 and December 31, 2023, the estimated fair value of these off-balance-sheet instruments was not material.

(g) Fixed rate borrowings – The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

169,125

 

 

$

169,125

 

 

$

149,845

 

 

$

149,845

 

Equity investments

 

 

16,374

 

 

 

16,374

 

 

 

11,430

 

 

 

11,430

 

Investment securities

 

 

53,038

 

 

 

53,038

 

 

 

54,282

 

 

 

54,282

 

Loans receivable

 

 

2,144,599

 

 

 

2,144,599

 

 

 

2,131,651

 

 

 

2,131,651

 

Accrued interest receivable (2)

 

 

12,673

 

 

 

12,673

 

 

 

13,538

 

 

 

13,538

 

Equity securities (3)

 

 

1,730

 

 

 

1,730

 

 

 

1,748

 

 

 

1,748

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,145,596

 

 

 

2,145,596

 

 

 

2,118,689

 

 

 

2,118,689

 

Accrued interest payable (2)

 

 

6,077

 

 

 

6,077

 

 

 

6,822

 

 

 

6,822

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of March 31, 2024 and $1.3 million as of December 31, 2023. 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.
v3.24.1.u1
Fair Value of Assets and Liabilities
 3 Months Ended
Mar. 31, 2024
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. Commencing in 2020, the Company elected to measure 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 March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Investment securities

 

 

—

 

 

 

53,038

 

 

 

—

 

 

 

53,038

 

Equity securities

 

 

1,730

 

 

 

—

 

 

 

—

 

 

 

1,730

 

Total (1)

 

$

1,730

 

 

$

54,288

 

 

$

—

 

 

$

56,018

 
(1)
Total unrealized losses of $0.2 million, net of tax, was included in other comprehensive income for the three months ended March 31, 2024 related to these assets.

December 31, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Investment securities

 

 

—

 

 

 

54,282

 

 

 

—

 

 

 

54,282

 

Equity securities

 

 

1,748

 

 

 

—

 

 

 

—

 

 

 

1,748

 

Total (1)

 

$

1,748

 

 

$

55,532

 

 

$

—

 

 

$

57,280

 
(1)
Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

16,374

 

 

$

16,374

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

21,881

 

 

 

21,881

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

10,198

 

 

 

10,198

 

Total

 

$

—

 

 

$

—

 

 

$

48,453

 

 

$

48,453

 

 

December 31, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

11,430

 

 

$

11,430

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

25,974

 

 

 

25,974

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

11,772

 

 

 

11,772

 

Total

 

$

—

 

 

$

—

 

 

$

49,176

 

 

$

49,176

 

Significant Unobservable Inputs

ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

 

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of March 31, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)

 

Fair Value
at March 31, 2024

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

11,290

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

5,084

 

 

Precedent market transaction

 

Sale price

 

$5,084

 

 

 

273

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

21,881

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 43.51%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

10,198

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$1.8 - $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 loan portfolio.

(Dollars in thousands except per share amounts)

 

Fair Value
at December 31, 2023

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

11,157

 

 

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

 

 

25,974

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 28.48%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - $79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

11,772

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - $79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.3 - $45.0
(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 loan portfolio.
v3.24.1.u1
Medallion Bank Preferred Stock (Non-controlling Interest)
 3 Months Ended
Mar. 31, 2024
Medallion Bank Preferred Stock (Non-controlling Interest)

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

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

On July 21, 2011, the Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E for an aggregate purchase price of $26.3 million under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9% on the Series E.
v3.24.1.u1
Subsequent Events
 3 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to March 31, 2024 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there were no subsequent events that required disclosure.
v3.24.1.u1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
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.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. As of March 31, 2024, 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 $16.4 million and $11.4 million at March 31, 2024 and December 31, 2023, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. As of March 31, 2024, cumulative appreciation of $4.7 million and cumulative impairment of $4.0 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both March 31, 2024 and December 31, 2023, 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 March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

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

 

$

(19

)

 

$

28

 

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

 

$

(19

)

 

$

28

 
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at both March 31, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for the three months ended March 31, 2024 and 2023. 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 March 31, 2024 and December 31, 2023, net loan origination costs were $40.7 million and $40.0 million. Net amortization to income was $2.0 million for the three months ended March 31, 2024 and was $1.9 million for the three months ended March 31, 2023.

 

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. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. Consumer loans are placed on nonaccrual when they become 90 days past due, or earlier if they enter bankruptcy, and are charged-off in their entirety when deemed uncollectible, or when they become 120 days past due, whichever occurs first, at which time appropriate recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account reaches 120 days delinquent, the account is charged-off. If the collateral is repossessed, a loss is recorded by writing the collateral down to its fair value less selling costs, and the collateral is sent to auction. When the collateral is sold, the net auction proceeds are applied to the account, and any remaining balance is written off. Proceeds collected on charged-off accounts are recorded as recoveries. Total loans 90 days or more past due were $16.1 million at March 31, 2024, or 0.74% of the total loan portfolio, compared to $16.8 million, or 0.77%, at December 31, 2023. 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 $14.0 million at March 31, 2024 and December 31, 2023. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of March 31, 2024 and December 31, 2023.

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 delinquent loan performance 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

 

Taxi 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 March 31, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of March 31, 2024 and December 31, 2023, the Company had intangible assets of $20.2 million and $20.6 million. Amortization expense on the intangible assets for the three months ended March 31, 2024 and 2023 was $0.4 million. Management performed a step 0 analysis in assessing the goodwill and intangibles for impairment at December 31, 2023, concluding that there was no impairment of these assets.

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

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Brand-related intellectual property

 

$

15,400

 

 

$

15,675

 

Home improvement contractor relationships

 

 

4,830

 

 

 

4,916

 

Total intangible assets

 

$

20,230

 

 

$

20,591

 
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 three months ended March 31, 2024 and 2023.
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 for the three months ended March 31, 2024 and 2023. 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 $8.5 million as of both March 31, 2024 and December 31, 2023.
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 March 31,

 

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

 

2024

 

 

2023

 

Net income attributable to common stockholders

 

$

10,024

 

 

$

15,361

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,641,385

 

 

 

22,342,911

 

Effect of restricted stock grants

 

 

610,333

 

 

 

483,429

 

Effect of dilutive stock options

 

 

254,793

 

 

 

149,117

 

Effect of performance stock unit grants

 

 

258,534

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,765,045

 

 

 

22,975,457

 

Basic net income per share

 

$

0.44

 

 

$

0.69

 

Diluted net income per share

 

 

0.42

 

 

 

0.67

 

Potentially dilutive common shares excluded from the above calculations aggregated 9,000 shares as of March 31, 2024 and 2023.

Stock Compensation

Stock Compensation

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

During the three months ended March 31, 2024 and 2023, the Company issued 296,178 and 304,749 restricted shares of stock-based compensation awards, 215,687 and 0 performance stock units, and no restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.5 million, or $0.06 per share, for the three months ended March 31, 2024, and $1.0 million, or $0.05 per diluted common share, for the three months ended March 31, 2023, of non-cash stock-based compensation expense related to the grants. As of March 31, 2024, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $9.3 million, which is expected to be recognized over the next 12 quarters.
Regulatory Capital

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of March 31, 2024, the Bank’s Tier 1 leverage ratio was 16.4%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

March 31, 2024

 

 

December 31, 2023

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

298,662

 

 

$

293,774

 

Tier 1 capital

 

 

 

 

 

 

 

 

367,450

 

 

 

362,561

 

Total capital

 

 

 

 

 

 

 

 

395,297

 

 

 

390,153

 

Average assets

 

 

 

 

 

 

 

 

2,236,357

 

 

 

2,232,816

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,176,939

 

 

 

2,155,641

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.4

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.7

 

 

 

13.6

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.9

 

 

 

16.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.2

 

 

 

18.1

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

In the table above, the minimum risk-based ratios as of March 31, 2024 and December 31, 2023 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2024 and December 31, 2023.
Recently Issued and Adopted Accounting Standards

Recently Issued and Adopted Accounting Standards

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.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, or Topic 280: Improvements to Reportable Segment Disclosures. The main objective of this update is to provide transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2023. The Company is assessing the impact of the update on the accompanying financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes, or Topic 740: Improvements to Income Tax Disclosures. The main objective of this update is to improve financial reporting disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update are effective for the annual periods beginning after December 15, 2024. 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.
v3.24.1.u1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

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

 

$

(19

)

 

$

28

 

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

 

$

(19

)

 

$

28

 
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

 

Taxi 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)

 

March 31, 2024

 

 

December 31, 2023

 

Brand-related intellectual property

 

$

15,400

 

 

$

15,675

 

Home improvement contractor relationships

 

 

4,830

 

 

 

4,916

 

Total intangible assets

 

$

20,230

 

 

$

20,591

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

 

Three Months Ended March 31,

 

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

 

2024

 

 

2023

 

Net income attributable to common stockholders

 

$

10,024

 

 

$

15,361

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,641,385

 

 

 

22,342,911

 

Effect of restricted stock grants

 

 

610,333

 

 

 

483,429

 

Effect of dilutive stock options

 

 

254,793

 

 

 

149,117

 

Effect of performance stock unit grants

 

 

258,534

 

 

 

—

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,765,045

 

 

 

22,975,457

 

Basic net income per share

 

$

0.44

 

 

$

0.69

 

Diluted net income per share

 

 

0.42

 

 

 

0.67

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

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

March 31, 2024

 

 

December 31, 2023

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

298,662

 

 

$

293,774

 

Tier 1 capital

 

 

 

 

 

 

 

 

367,450

 

 

 

362,561

 

Total capital

 

 

 

 

 

 

 

 

395,297

 

 

 

390,153

 

Average assets

 

 

 

 

 

 

 

 

2,236,357

 

 

 

2,232,816

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,176,939

 

 

 

2,155,641

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.4

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.7

 

 

 

13.6

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.9

 

 

 

16.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

18.2

 

 

 

18.1

 
(1)
Calculated by dividing Tier 1 capital by average assets.
(2)
Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
(3)
Calculated by dividing Tier 1 or total capital by risk-weighted assets.
v3.24.1.u1
Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2024
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale maturity securities available for sale as of March 31, 2024 and December 31, 2023:

March 31, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

43,804

 

 

$

—

 

 

$

(5,074

)

 

$

38,730

 

State and municipalities

 

 

13,550

 

 

 

13

 

 

 

(1,415

)

 

 

12,148

 

Agency bonds

 

 

2,185

 

 

 

—

 

 

 

(25

)

 

 

2,160

 

Total

 

$

59,539

 

 

$

13

 

 

$

(6,514

)

 

$

53,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

44,653

 

 

$

—

 

 

$

(4,791

)

 

$

39,862

 

State and municipalities

 

 

13,733

 

 

 

21

 

 

 

(1,501

)

 

 

12,253

 

Agency bonds

 

 

2,187

 

 

 

—

 

 

 

(20

)

 

 

2,167

 

Total

 

$

60,573

 

 

$

21

 

 

$

(6,312

)

 

$

54,282

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

The amortized cost and estimated market value of investment securities at March 31, 2024 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

3,970

 

 

$

3,886

 

Due after one year through five years

 

 

5,885

 

 

 

5,662

 

Due after five years through ten years

 

 

8,484

 

 

 

7,414

 

Due after ten years

 

 

41,200

 

 

 

36,076

 

Total

 

$

59,539

 

 

$

53,038

 
Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

March 31, 2024
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(39

)

 

$

1,875

 

 

$

(5,035

)

 

$

36,766

 

State and municipalities

 

 

(1

)

 

 

41

 

 

 

(1,414

)

 

 

12,064

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(25

)

 

 

2,160

 

Total

 

$

(40

)

 

$

1,916

 

 

$

(6,474

)

 

$

50,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than Twelve Months

 

 

Twelve Months and Over

 

December 31, 2023
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(78

)

 

$

5,797

 

 

$

(4,714

)

 

$

33,971

 

State and municipalities

 

 

(204

)

 

 

4,839

 

 

 

(1,296

)

 

 

7,371

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

2,167

 

Total

 

$

(282

)

 

$

10,636

 

 

$

(6,030

)

 

$

43,509

 
v3.24.1.u1
Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023.

 

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,365,165

 

 

 

61

%

 

$

1,336,226

 

 

 

60

%

Home improvement

 

 

752,262

 

 

 

34

 

 

 

760,617

 

 

 

34

 

Commercial

 

 

106,570

 

 

 

5

 

 

 

114,827

 

 

 

5

 

Taxi medallion

 

 

3,560

 

 

*

 

 

 

3,663

 

 

*

 

Strategic partnership

 

 

869

 

 

*

 

 

 

553

 

 

*

 

Total gross loans

 

 

2,228,426

 

 

 

100

%

 

 

2,215,886

 

 

 

100

%

Allowance for credit losses

 

 

(83,827

)

 

 

 

 

 

(84,235

)

 

 

 

Total net loans

 

$

2,144,599

 

 

 

 

 

$

2,131,651

 

 

 

 

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

The following tables show the activity of the gross loans for the three months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2023

 

$

1,336,226

 

 

$

760,617

 

 

$

114,827

 

 

$

3,663

 

 

$

553

 

 

$

2,215,886

 

Loan originations

 

 

105,765

 

 

 

51,576

 

 

 

—

 

 

 

—

 

 

 

15,746

 

 

 

173,087

 

Principal payments, sales, maturities, and recoveries

 

 

(64,886

)

 

 

(54,917

)

 

 

(8,872

)

 

 

(103

)

 

 

(15,430

)

 

 

(144,208

)

Charge-offs

 

 

(18,101

)

 

 

(4,898

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(22,999

)

Transfer to loan collateral in process of foreclosure, net

 

 

5,425

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,425

 

Amortization of origination costs

 

 

(2,952

)

 

 

938

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

(2,007

)

FASB origination costs, net

 

 

3,688

 

 

 

(1,054

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,634

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

608

 

 

 

—

 

 

 

—

 

 

 

608

 

Gross loans – March 31, 2024

 

$

1,365,165

 

 

$

752,262

 

 

$

106,570

 

 

$

3,560

 

 

$

869

 

 

$

2,228,426

 

 

Three Months Ended March 31, 2023
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

Loan originations

 

 

101,681

 

 

 

94,981

 

 

 

3,000

 

 

 

623

 

 

 

27,006

 

 

 

227,291

 

Principal payments, sales, maturities, and recoveries

 

 

(56,217

)

 

 

(49,855

)

 

 

(834

)

 

 

(4,395

)

 

 

(25,808

)

 

 

(137,109

)

Charge-offs

 

 

(12,590

)

 

 

(1,914

)

 

 

—

 

 

 

(3,593

)

 

 

—

 

 

 

(18,097

)

Transfer to loan collateral in process of foreclosure, net

 

 

(4,357

)

 

 

—

 

 

 

—

 

 

 

(2,147

)

 

 

—

 

 

 

(6,504

)

Amortization of origination costs

 

 

(2,759

)

 

 

586

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,173

)

FASB origination costs, net

 

 

4,110

 

 

 

(555

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,555

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

264

 

 

 

—

 

 

 

—

 

 

 

264

 

Gross loans – March 31, 2023

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for credit losses for the three months ended March 31, 2024 and 2023.

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Allowance for credit losses – beginning balance (1)

 

$

84,235

 

 

$

63,845

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

13,712

 

Charge-offs

 

 

 

 

 

 

Recreation

 

 

(18,101

)

 

 

(12,590

)

Home improvement

 

 

(4,898

)

 

 

(1,914

)

Commercial

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

(3,593

)

Total charge-offs

 

 

(22,999

)

 

 

(18,097

)

Recoveries

 

 

 

 

 

 

Recreation

 

 

3,548

 

 

 

2,771

 

Home improvement

 

 

911

 

 

 

632

 

Commercial

 

 

20

 

 

 

10

 

Taxi medallion

 

 

911

 

 

 

3,369

 

Total recoveries

 

 

5,390

 

 

 

6,782

 

Net charge-offs (2)

 

 

(17,609

)

 

 

(11,315

)

Provision for credit losses

 

 

17,201

 

 

 

4,038

 

Allowance for credit losses – ending balance (3)

 

$

83,827

 

 

$

70,280

 
(1)
2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
(2)
As of March 31, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.7 million, including $105.5 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
(3)
As of March 31, 2024 and March 31, 2023, 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 March 31, 2024, by the year of origination:

(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Recreation

 

$

—

 

 

$

3,763

 

 

$

6,818

 

 

$

3,497

 

 

$

1,289

 

 

$

2,734

 

 

$

18,101

 

Home improvement

 

 

—

 

 

 

1,524

 

 

 

1,680

 

 

 

1,163

 

 

 

287

 

 

 

244

 

 

 

4,898

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

—

 

 

$

5,287

 

 

$

8,498

 

 

$

4,660

 

 

$

1,576

 

 

$

2,978

 

 

$

22,999

 

The following table sets forth the gross charge-offs for the three months ended March 31, 2023, by the year of origination:

(Dollars in thousands)

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

—

 

 

$

3,608

 

 

$

3,070

 

 

$

1,671

 

 

$

1,554

 

 

$

2,687

 

 

$

12,590

 

Home improvement

 

 

—

 

 

 

904

 

 

 

628

 

 

 

143

 

 

 

131

 

 

 

108

 

 

 

1,914

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,593

 

 

 

3,593

 

Total

 

$

—

 

 

$

4,512

 

 

$

3,698

 

 

$

1,814

 

 

$

1,685

 

 

$

6,388

 

 

$

18,097

 
Summary of Allowance for Loan Losses by Type

The following tables set forth the allowance for credit losses by type as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

60,011

 

 

 

72

%

 

 

4.40

%

 

 

274.26

%

Home improvement

 

 

17,930

 

 

 

21

 

 

 

2.38

 

 

 

81.94

 

Commercial

 

 

4,384

 

 

 

5

 

 

 

4.11

 

 

 

20.04

 

Taxi medallion

 

 

1,502

 

 

 

2

 

 

 

42.20

 

 

 

6.86

 

Total

 

$

83,827

 

 

 

100

%

 

 

3.76

%

 

 

383.10

%

 

December 31, 2023
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

57,532

 

 

 

68

%

 

 

4.31

%

 

 

221.50

%

Home improvement

 

 

21,019

 

 

 

25

 

 

 

2.76

 

 

 

80.92

 

Commercial

 

 

4,148

 

 

 

5

 

 

 

3.61

 

 

 

15.97

 

Taxi medallion

 

 

1,536

 

 

 

2

 

 

 

41.93

 

 

 

5.91

 

Total

 

$

84,235

 

 

 

100

%

 

 

3.80

%

 

 

324.31

%

 
Summary of Total Nonaccrual Loans and Foregone Interest

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

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Total nonaccrual loans

 

$

21,881

 

 

$

25,974

 

Interest foregone quarter to date

 

 

309

 

 

 

928

 

Amount of foregone interest applied to principal in the quarter

 

 

64

 

 

 

238

 

Interest foregone life-to-date

 

 

1,101

 

 

 

2,119

 

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

 

 

816

 

 

 

822

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

1.0

%

 

 

1.2

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

383.1

%

 

 

324.3

%
Summary of Performance Status of Loan

The following tables present the performance status of loans as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,358,293

 

 

$

6,872

 

 

$

1,365,165

 

 

 

0.50

%

Home improvement

 

 

750,903

 

 

 

1,359

 

 

 

752,262

 

 

 

0.18

 

Commercial

 

 

96,480

 

 

 

10,090

 

 

 

106,570

 

 

 

9.47

 

Taxi medallion

 

 

—

 

 

 

3,560

 

 

 

3,560

 

 

 

100.00

 

Strategic partnership

 

 

869

 

 

 

—

 

 

 

869

 

 

 

—

 

Total

 

$

2,206,545

 

 

$

21,881

 

 

$

2,228,426

 

 

 

0.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,326,567

 

 

$

9,659

 

 

$

1,336,226

 

 

 

0.72

%

Home improvement

 

 

759,128

 

 

 

1,489

 

 

 

760,617

 

 

 

0.20

 

Commercial

 

 

103,664

 

 

 

11,163

 

 

 

114,827

 

 

 

9.72

 

Taxi medallion

 

 

—

 

 

 

3,663

 

 

 

3,663

 

 

 

100.00

 

Strategic partnership

 

 

553

 

 

 

—

 

 

 

553

 

 

 

—

 

Total

 

$

2,189,912

 

 

$

25,974

 

 

$

2,215,886

 

 

 

1.17

%
Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2024 and December 31, 2023, all of which had an allowance recorded against the principal balance.

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

 

Recorded
Investment

 

 

Unpaid
Principal
Balance

 

 

Related
Allowance

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,872

 

 

$

6,872

 

 

$

302

 

 

$

9,655

 

 

$

9,655

 

 

$

416

 

Home improvement

 

 

1,359

 

 

 

1,359

 

 

 

32

 

 

 

1,493

 

 

 

1,493

 

 

 

41

 

Commercial

 

 

10,090

 

 

 

10,243

 

 

 

2,320

 

 

 

11,163

 

 

 

11,301

 

 

 

1,897

 

Taxi medallion

 

 

3,560

 

 

 

4,223

 

 

 

1,502

 

 

 

3,663

 

 

 

4,347

 

 

 

1,536

 

Total nonperforming loans with an allowance

 

$

21,881

 

 

$

22,697

 

 

$

4,156

 

 

$

25,974

 

 

$

26,796

 

 

$

3,890

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

(Dollars in thousands)

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

 

Average
Investment
Recorded

 

 

Interest Income
Recognized

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

$

6,721

 

 

$

16

 

 

$

4,656

 

 

$

13

 

Home improvement

 

 

1,363

 

 

 

1

 

 

 

441

 

 

 

1

 

Commercial

 

 

10,243

 

 

 

—

 

 

 

5,652

 

 

 

—

 

Taxi medallion

 

 

4,254

 

 

 

—

 

 

 

6,093

 

 

 

—

 

Total nonperforming loans with an allowance

 

$

22,581

 

 

$

17

 

 

$

16,842

 

 

$

14

 

 

T
Summary of Aging of Loans he following tables show the aging of all loans as of March 31, 2024 and December 31, 2023.

March 31, 2024

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

37,205

 

 

$

11,905

 

 

$

6,374

 

 

$

55,484

 

 

$

1,265,310

 

 

$

1,320,794

 

 

$

—

 

Home improvement

 

 

3,495

 

 

 

1,680

 

 

 

1,362

 

 

 

6,537

 

 

 

749,294

 

 

 

755,831

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

8,396

 

 

 

8,396

 

 

 

99,190

 

 

 

107,586

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

100

 

 

 

—

 

 

 

100

 

 

 

3,460

 

 

 

3,560

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

869

 

 

 

869

 

 

 

—

 

Total

 

$

40,700

 

 

$

13,685

 

 

$

16,132

 

 

$

70,517

 

 

$

2,118,123

 

 

$

2,188,640

 

 

$

—

 
(1)
Excludes $40.7 million of capitalized loan origination costs.

 December 31, 2023

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

40,282

 

 

$

15,039

 

 

$

9,095

 

 

$

64,416

 

 

$

1,228,175

 

 

$

1,292,591

 

 

$

—

 

Home improvement

 

 

3,936

 

 

 

2,562

 

 

 

1,502

 

 

 

8,000

 

 

 

756,069

 

 

 

764,069

 

 

 

—

 

Commercial

 

 

—

 

 

 

2,156

 

 

 

6,240

 

 

 

8,396

 

 

 

107,140

 

 

 

115,536

 

 

 

—

 

Taxi medallion

 

 

201

 

 

 

—

 

 

 

—

 

 

 

201

 

 

 

3,462

 

 

 

3,663

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

553

 

 

 

553

 

 

 

—

 

Total

 

$

44,419

 

 

$

19,757

 

 

$

16,837

 

 

$

81,013

 

 

$

2,095,399

 

 

$

2,176,412

 

 

$

—

 
(1)
Excludes $40.0 million of capitalized loan origination costs.
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 months ended March 31, 2024 and 2023.

Three Months Ended March 31, 2024
(Dollars in thousands)

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2023

 

$

1,779

 

 

$

9,993

 

 

$

11,772

 

Transfer from loans, net

 

 

5,425

 

 

 

—

 

 

 

5,425

 

Sales

 

 

—

 

 

 

(39

)

 

 

(39

)

Cash payments received

 

 

(2,447

)

 

 

(1,273

)

 

 

(3,720

)

Collateral valuation and other adjustments

 

 

(3,282

)

 

 

42

 

 

 

(3,240

)

Loan collateral in process of foreclosure – March 31, 2024

 

$

1,475

 

 

$

8,723

 

 

$

10,198

 

 

Three Months Ended March 31, 2023
(Dollars in thousands)

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 

Transfer from loans, net

 

 

4,357

 

 

 

2,147

 

 

 

6,504

 

Sales

 

 

(2,195

)

 

 

(15

)

 

 

(2,210

)

Cash payments received

 

 

—

 

 

 

(3,317

)

 

 

(3,317

)

Collateral valuation adjustments

 

 

(2,077

)

 

 

(252

)

 

 

(2,329

)

Loan collateral in process of foreclosure – March 31, 2023

 

$

1,461

 

 

$

19,006

 

 

$

20,467

 
v3.24.1.u1
Funds Borrowed (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

 

March 31, 2024 (1)

 

 

December 31, 2023(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

721,155

 

 

$

479,582

 

 

$

350,070

 

 

$

157,800

 

 

$

173,239

 

 

$

—

 

 

$

1,881,846

 

 

$

1,869,439

 

 

 

3.17

%

Retail and privately placed notes

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

39,000

 

 

 

12,500

 

 

 

136,500

 

 

 

139,500

 

 

 

8.08

 

SBA debentures and borrowings

 

 

12,500

 

 

 

15,500

 

 

 

4,500

 

 

 

—

 

 

 

2,500

 

 

 

37,750

 

 

 

72,750

 

 

 

75,250

 

 

 

3.54

 

Trust preferred securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

33,000

 

 

 

33,000

 

 

 

33,000

 

 

 

7.71

 

Federal reserve and other borrowings

 

 

20,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20,000

 

 

 

—

 

 

 

5.95

 

Total

 

$

753,655

 

 

$

526,332

 

 

$

354,570

 

 

$

211,550

 

 

$

214,739

 

 

$

83,250

 

 

$

2,144,096

 

 

$

2,117,189

 

 

 

3.59

%
(1)
Excludes deferred financing costs of $8.5 million as of both March 31, 2024 and December 31, 2023.
(2)
Weighted average contractual rate as of March 31, 2024.
(3)
Balance excludes $1.5 million of strategic partner reserve deposits as of both March 31, 2024 and December 31, 2023.
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 March 31, 2024.

(Dollars in thousands)

 

March 31, 2024

 

Three months or less

 

$

202,913

 

Over three months through six months

 

 

186,507

 

Over six months through one year

 

 

331,735

 

Over one year

 

 

1,160,691

 

Deposits

 

 

1,881,846

 

 Strategic partner collateral deposits

 

 

1,500

 

Total deposits

 

$

1,883,346

 
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the three months ended March 31, 2024 and 2023.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Operating lease costs

 

$

604

 

 

$

597

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

657

 

 

 

623

 

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

 

 

(59

)

 

 

(56

)
Schedule of Breakout of Operating Leases

The following table presents the breakout of the operating leases as of March 31, 2024 and December 31, 2023.

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Operating lease right-of-use assets

 

$

8,327

 

 

$

8,785

 

Other current liabilities

 

 

2,255

 

 

 

2,472

 

Operating lease liabilities

 

 

6,710

 

 

 

7,019

 

Total operating lease liabilities

 

 

8,965

 

 

 

9,491

 

Weighted average remaining lease term

 

4.4 years

 

 

4.9 years

 

Weighted average discount rate

 

 

5.56

%

 

 

5.47

%
Schedule of Maturities of the Lease Liabilities

At March 31, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2024

 

$

1,903

 

2025

 

 

2,546

 

2026

 

 

2,567

 

2027

 

 

1,342

 

2028

 

 

573

 

Thereafter

 

 

1,139

 

Total lease payments

 

 

10,070

 

Less imputed interest

 

 

1,105

 

Total operating lease liabilities

 

$

8,965

 
v3.24.1.u1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and December 31, 2023.

(Dollars in thousands)

 

March 31, 2024

 

 

December 31, 2023

 

Goodwill and other intangibles

 

$

42,943

 

 

$

43,034

 

Provision for credit losses

 

 

(12,005

)

 

 

(13,032

)

Net operating loss carryforwards (1)

 

 

(3,803

)

 

 

(3,802

)

Accrued expenses, compensation, and other assets

 

 

(4,794

)

 

 

(6,976

)

Unrealized gains on other investments

 

 

(868

)

 

 

(1,877

)

Total deferred tax liability

 

 

21,473

 

 

 

17,347

 

Valuation allowance

 

 

3,373

 

 

 

3,860

 

Deferred tax liability, net

 

$

24,846

 

 

$

21,207

 
(1)
As of March 31, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of March 31, 2024.
Summary of Components of Tax Provision

The following table shows the components of the Company's tax provision for the three months ended March 31, 2024 and 2023:

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

Federal

 

$

1,729

 

 

$

2,583

 

State

 

 

643

 

 

 

789

 

Deferred

 

 

 

 

 

 

Federal

 

 

3,116

 

 

 

2,246

 

State

 

 

870

 

 

 

764

 

Net provision for income taxes

 

$

6,358

 

 

$

6,382

 
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 months ended March 31, 2024 and 2023.

 

 

Three Months Ended March 31,

 

(Dollars in thousands)

 

2024

 

 

2023

 

Statutory Federal income tax provision at 21%

 

$

3,758

 

 

$

4,884

 

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

 

 

735

 

 

 

955

 

Non-deductible expenses

 

 

1,780

 

 

 

1,058

 

Other

 

 

85

 

 

 

(515

)

Total income tax provision

 

$

6,358

 

 

$

6,382

 
v3.24.1.u1
Stock Options and Restricted Stock (Tables)
 3 Months Ended
Mar. 31, 2024
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 2024 first quarter and the 2023 full year.

 

Number of
Options

 

 

 

Exercise
Price Per
Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2022

 

 

1,061,849

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(33,382

)

 

 

4.89 - 9.38

 

 

 

6.80

 

Exercised (1)

 

 

(68,945

)

 

 

4.89 - 7.25

 

 

 

6.44

 

Outstanding at December 31, 2023

 

 

959,522

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(85

)

 

 

 

4.89

 

 

 

4.89

 

Exercised (1)

 

 

(13,383

)

 

 

4.89 - 7.25

 

 

 

6.61

 

Outstanding at March 31, 2024 (2)

 

 

946,054

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

697,647

 

 

 

2.14 - 9.38

 

 

$

6.51

 

March 31, 2024 (2)

 

 

857,609

 

 

$

2.14 - 9.38

 

 

$

6.52

 
(1)
The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three months ended March 31, 2024 and was $0.1 million for the year ended December 31, 2023.
(2)
The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at March 31, 2024 and the related exercise price of the underlying options, was $1.3 million for outstanding options and $1.2 million for vested options as of March 31, 2024. The remaining contractual life was 5.9 years for outstanding options and 5.8 years for vested options at March 31, 2024.
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 2024 first quarter.

 

Number of
Options

 

 

 

Exercise Price
Per Share

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2023

 

 

261,875

 

 

$

4.89 - 7.25

 

 

$

6.49

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

—

 

 

 

 

—

 

 

 

—

 

Vested

 

 

(173,430

)

 

 

4.89 - 7.25

 

 

 

6.56

 

Outstanding at March 31, 2024

 

 

88,445

 

 

$

4.89 - 7.25

 

 

$

6.37

 
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the 2024 first, quarter and the 2023 full year.

 

Number of
Shares

 

 

 

Grant
Price Per
Share

 

 

Weighted
Average
Grant Price

 

Outstanding at December 31, 2022

 

 

857,288

 

 

$

4.89 - 7.25

 

 

$

7.27

 

Granted

 

 

399,793

 

 

 

7.67 - 9.37

 

 

 

8.34

 

Cancelled

 

 

(12,807

)

 

 

4.89 - 8.40

 

 

 

7.24

 

Vested (1)

 

 

(248,898

)

 

 

4.89 - 7.68

 

 

 

7.10

 

Outstanding at December 31, 2023

 

 

995,376

 

 

$

4.89 - 9.37

 

 

$

7.74

 

Granted

 

 

296,178

 

 

 

 

8.97

 

 

 

8.97

 

Cancelled

 

 

(1,208

)

 

 

6.86 - 9.37

 

 

 

8.13

 

Vested (1)

 

 

(400,985

)

 

 

4.89 - 8.40

 

 

 

7.69

 

Outstanding at March 31, 2024 (2)

 

 

889,361

 

 

$

4.89 - 9.37

 

 

$

8.18

 
(1)
The aggregate fair value of the restricted stock vested was $2.7 million for the three months ended March 31, 2024 and $2.1 million for the year ended December 31, 2023.
(2)
The aggregate fair value of the restricted stock was $7.0 million as of March 31, 2024. The remaining vesting period was 2.9 years at March 31, 2024.
v3.24.1.u1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Data

The following table presents segment data as of and for the three months ended March 31, 2024.

Three Months Ended March 31, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

43,927

 

 

$

17,447

 

 

$

3,645

 

 

$

140

 

 

$

1,911

 

 

$

67,070

 

Total interest expense

 

 

9,645

 

 

 

5,634

 

 

 

1,098

 

 

 

28

 

 

 

2,748

 

 

 

19,153

 

Net interest income (loss)

 

 

34,282

 

 

 

11,813

 

 

 

2,547

 

 

 

112

 

 

 

(837

)

 

 

47,917

 

Provision (benefit) for credit losses

 

 

17,030

 

 

 

898

 

 

 

216

 

 

 

(944

)

 

 

1

 

 

 

17,201

 

Net interest income (loss) after loss provision

 

 

17,252

 

 

 

10,915

 

 

 

2,331

 

 

 

1,056

 

 

 

(838

)

 

 

30,716

 

Other income

 

 

250

 

 

 

2

 

 

 

4,202

 

 

 

639

 

 

 

310

 

 

 

5,403

 

Other expenses

 

 

(8,287

)

 

 

(4,114

)

 

 

(985

)

 

 

(743

)

 

 

(4,096

)

 

 

(18,225

)

Net income (loss) before taxes

 

 

9,215

 

 

 

6,803

 

 

 

5,548

 

 

 

952

 

 

 

(4,624

)

 

 

17,894

 

Income tax (provision) benefit

 

 

(3,274

)

 

 

(2,417

)

 

 

(1,971

)

 

 

(338

)

 

 

1,642

 

 

 

(6,358

)

Net income (loss) after taxes

 

$

5,941

 

 

$

4,386

 

 

$

3,577

 

 

$

614

 

 

$

(2,982

)

 

$

11,536

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,024

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,365,165

 

 

$

752,262

 

 

$

106,570

 

 

$

3,560

 

 

$

869

 

 

$

2,228,426

 

Total assets

 

 

1,322,761

 

 

 

738,551

 

 

 

102,331

 

 

 

8,611

 

 

 

446,508

 

 

 

2,618,762

 

Total funds borrowed

 

 

1,083,760

 

 

 

605,107

 

 

 

83,842

 

 

 

7,055

 

 

 

365,832

 

 

 

2,145,596

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.82

%

 

 

2.38

%

 

 

13.50

%

 

 

23.68

%

 

 

(2.78

)%

 

 

1.80

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

11.65

 

Return on average equity

 

 

11.44

 

 

 

14.93

 

 

 

84.71

 

 

 

148.65

 

 

 

(17.47

)

 

 

11.18

 

Interest yield

 

 

13.17

 

 

 

9.28

 

 

 

12.99

 

 

 

15.59

 

 

NM

 

 

 

11.34

 

Net interest margin, gross

 

 

10.28

 

 

 

6.28

 

 

 

9.08

 

 

 

12.47

 

 

NM

 

 

 

8.10

 

Net interest margin, net of allowance

 

 

10.75

 

 

 

6.45

 

 

 

9.43

 

 

 

21.57

 

 

NM

 

 

 

8.39

 

Reserve coverage

 

 

4.40

 

 

 

2.38

 

 

 

4.11

 

 

 

42.19

 

 

NM

 

 

 

3.76

 

Delinquency status (1)

 

 

0.48

 

 

 

0.18

 

 

 

7.80

 

 

 

—

 

 

NM

 

 

 

0.74

 

Charge-off (recovery) ratio (2)

 

 

4.36

 

 

 

2.12

 

 

 

(0.07

)

 

 

(101.47

)

 

NM

 

 

 

3.20

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

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following table presents segment data as of and for the three months ended March 31, 2023.

Three Months March 31, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

37,899

 

 

$

13,649

 

 

$

2,701

 

 

$

310

 

 

$

1,284

 

 

$

55,843

 

Total interest expense

 

 

5,904

 

 

 

3,279

 

 

 

809

 

 

 

67

 

 

 

2,181

 

 

 

12,240

 

Net interest income (loss)

 

 

31,995

 

 

 

10,370

 

 

 

1,892

 

 

 

243

 

 

 

(897

)

 

 

43,603

 

Provision (benefit) for credit losses

 

 

7,751

 

 

 

3,081

 

 

 

327

 

 

 

(7,084

)

 

 

(37

)

 

 

4,038

 

Net interest income (loss) after loss provision

 

 

24,244

 

 

 

7,289

 

 

 

1,565

 

 

 

7,327

 

 

 

(860

)

 

 

39,565

 

Other income

 

 

—

 

 

 

1

 

 

 

271

 

 

 

1,620

 

 

 

191

 

 

 

2,083

 

Other expenses

 

 

(7,803

)

 

 

(3,994

)

 

 

(420

)

 

 

(2,027

)

 

 

(4,149

)

 

 

(18,393

)

Net income (loss) before taxes

 

 

16,441

 

 

 

3,296

 

 

 

1,416

 

 

 

6,920

 

 

 

(4,818

)

 

 

23,255

 

Income tax (provision) benefit

 

 

(4,513

)

 

 

(905

)

 

 

(389

)

 

 

(1,899

)

 

 

1,324

 

 

 

(6,382

)

Net income (loss) after taxes

 

$

11,928

 

 

$

2,391

 

 

$

1,027

 

 

$

5,021

 

 

$

(3,494

)

 

$

16,873

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

15,361

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

Total assets

 

 

1,179,965

 

 

 

660,846

 

 

 

101,392

 

 

 

20,335

 

 

 

389,132

 

 

 

2,351,670

 

Total funds borrowed

 

 

961,561

 

 

 

538,527

 

 

 

82,625

 

 

 

16,571

 

 

 

317,106

 

 

 

1,916,390

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

4.14

%

 

 

1.52

%

 

 

4.11

%

 

 

90.53

%

 

 

(3.79

)%

 

 

2.99

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

20.72

 

Return on average equity

 

 

25.63

 

 

 

9.37

 

 

 

25.39

 

 

 

558.90

 

 

 

(23.42

)

 

 

18.50

 

Interest yield

 

 

12.87

 

 

 

8.54

 

 

 

11.53

 

 

 

11.78

 

 

NM

 

 

 

10.78

 

Net interest margin, gross

 

 

10.86

 

 

 

6.49

 

 

 

8.08

 

 

 

9.23

 

 

NM

 

 

 

8.42

 

Net interest margin, net of allowance

 

 

11.33

 

 

 

6.62

 

 

 

8.32

 

 

 

28.89

 

 

NM

 

 

 

8.71

 

Reserve coverage

 

 

4.12

 

 

 

2.19

 

 

 

3.71

 

 

 

53.07

 

 

NM

 

 

 

3.54

 

Delinquency status (1)

 

 

0.36

 

 

 

0.07

 

 

 

0.08

 

 

 

—

 

 

NM

 

 

 

0.24

 

Charge-off ratio (2)

 

 

3.48

 

 

 

0.82

 

 

 

(0.16

)

 

 

29.84

 

 

NM

 

 

 

2.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(NM) Not meaningful.

(*) Line item is not applicable to segments.
v3.24.1.u1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Investments, All Other Investments [Abstract]  
Summary of Carrying Values and Fair Values of Financial Instruments The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

 

March 31, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

169,125

 

 

$

169,125

 

 

$

149,845

 

 

$

149,845

 

Equity investments

 

 

16,374

 

 

 

16,374

 

 

 

11,430

 

 

 

11,430

 

Investment securities

 

 

53,038

 

 

 

53,038

 

 

 

54,282

 

 

 

54,282

 

Loans receivable

 

 

2,144,599

 

 

 

2,144,599

 

 

 

2,131,651

 

 

 

2,131,651

 

Accrued interest receivable (2)

 

 

12,673

 

 

 

12,673

 

 

 

13,538

 

 

 

13,538

 

Equity securities (3)

 

 

1,730

 

 

 

1,730

 

 

 

1,748

 

 

 

1,748

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,145,596

 

 

 

2,145,596

 

 

 

2,118,689

 

 

 

2,118,689

 

Accrued interest payable (2)

 

 

6,077

 

 

 

6,077

 

 

 

6,822

 

 

 

6,822

 
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of March 31, 2024 and $1.3 million as of December 31, 2023. 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.
v3.24.1.u1
Fair Value of Assets and liabilities (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Investment securities

 

 

—

 

 

 

53,038

 

 

 

—

 

 

 

53,038

 

Equity securities

 

 

1,730

 

 

 

—

 

 

 

—

 

 

 

1,730

 

Total (1)

 

$

1,730

 

 

$

54,288

 

 

$

—

 

 

$

56,018

 
(1)
Total unrealized losses of $0.2 million, net of tax, was included in other comprehensive income for the three months ended March 31, 2024 related to these assets.

December 31, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Investment securities

 

 

—

 

 

 

54,282

 

 

 

—

 

 

 

54,282

 

Equity securities

 

 

1,748

 

 

 

—

 

 

 

—

 

 

 

1,748

 

Total (1)

 

$

1,748

 

 

$

55,532

 

 

$

—

 

 

$

57,280

 
(1)
Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2024 and December 31, 2023.

March 31, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

16,374

 

 

$

16,374

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

21,881

 

 

 

21,881

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

10,198

 

 

 

10,198

 

Total

 

$

—

 

 

$

—

 

 

$

48,453

 

 

$

48,453

 

 

December 31, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

11,430

 

 

$

11,430

 

Impaired loans

 

 

—

 

 

 

—

 

 

 

25,974

 

 

 

25,974

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

11,772

 

 

 

11,772

 

Total

 

$

—

 

 

$

—

 

 

$

49,176

 

 

$

49,176

 
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of March 31, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)

 

Fair Value
at March 31, 2024

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

11,290

 

 

Investee financial analysis

 

Financial condition and operating performance of the borrower (1)

 

N/A

 

 

 

 

 

 

 

Collateral support

 

N/A

 

 

 

5,084

 

 

Precedent market transaction

 

Sale price

 

$5,084

 

 

 

273

 

 

Precedent market transaction

 

Offering price

 

$8.73 / share

Impaired loans

 

 

21,881

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 43.51%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

10,198

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$1.8 - $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 loan portfolio.

(Dollars in thousands except per share amounts)

 

Fair Value
at December 31, 2023

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

11,157

 

 

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

 

 

25,974

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 28.48%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - $79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

11,772

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - $79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.3 - $45.0
(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 loan portfolio.
v3.24.1.u1
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
Mar. 31, 2024
USD ($)
Medallion Financing Trust I [Member]  
Subsidiary or Equity Method Investee [Line Items]  
Aggregate assets of trust $ 34.0
v3.24.1.u1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Jan. 01, 2023
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Interest-bearing funds deposited in other banks   $ 1,300,000      
Non-marketable securities   16,400,000   $ 11,400,000  
Impact of equity investment   4,000,000      
Cumulative Appreciation   4,700,000      
Past Due   70,517,000   81,013,000  
Notes receivable net   79,500      
Purchased of equity securities with readily determinable fair value         $ 2,000,000
Investment, Type [Extensible Enumeration]         Equity Securities [Member]
Equity securities, fair value   1,700,000   1,700,000  
Net loan origination costs   40,700,000   40,000,000  
Net Amortization to income   2,000,000 $ 1,900,000    
Amount of loan charged off     2,500,000    
Principal portion of loans serviced, fair value   14,000,000   14,000,000  
Loans write down to collateral value   $ 22,999,000 18,097,000    
Intangible assets useful life   20 years      
Goodwill   $ 150,803,000   150,803,000  
Intangible assets, net   20,230,000   20,591,000  
Amortization of intangible assets   361,000 360,000    
Depreciation and amortization   100,000 100,000    
Amortization expense   800,000 $ 800,000    
Deferred costs   $ 8,500,000   $ 8,500,000  
Potential dilutive common shares excluded from EPS computation   9,000 9,000    
Stock based compensation award, Amount   $ 1,500,000 $ 1,000,000    
Stock based compensation award per diluted common share   $ 0.06 $ 0.05    
Unrecognized compensation cost related to unvested stock options and restricted stock   $ 9,300,000      
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period   12 months      
Tier 1 leverage capital to total assets ratio   15.00%      
Tier 1 leverage capital ratio   16.40%      
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   296,178 304,749 399,793  
Restricted Stock Units [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Stock based compensation award   0 0    
Performance Shares [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Stock based compensation award   215,687   296,444  
Stock based compensation award   215,687 0    
Medallion Bank [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Amortization of intangible assets       $ 0  
90+ [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Past Due   $ 16,132,000   16,837,000  
90+ [Member] | Loans [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Past Due   $ 16,100,000   $ 16,800,000  
Total loans more than 90 days past due ,percentage   0.74%   0.77%  
Bank Holding Company Accounting [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Net premium on investment securities   $ 100,000   $ 100,000  
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      
Maximum [Member]          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Interest bearing loan term   6 years      
Investment securities Amortized to interest income   $ 100,000 $ 100,000    
Estimated useful life of fixed assets   10 years      
v3.24.1.u1
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Equity Securities, FV-NI, Gain (Loss) [Abstract]    
Net gains (losses) recognized during the period on equity securities $ (19) $ 28
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (19) $ 28
v3.24.1.u1
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]    
Allowance for credit losses on loans   $ 63,845
Recreation [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans   41,966
Home Improvement [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans   11,340
Commercial [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans   1,049
Taxi Medallion [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans   9,490
Strategic Partnership [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans   $ 0
Effect of ASC 326 Adoption    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans $ 13,712  
Effect of ASC 326 Adoption | Recreation [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 10,037  
Effect of ASC 326 Adoption | Home Improvement [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 1,518  
Effect of ASC 326 Adoption | Commercial [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 2,157  
Effect of ASC 326 Adoption | Taxi Medallion [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 0  
Effect of ASC 326 Adoption | Strategic Partnership [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 0  
December 31, 2022 Pre-Topic 326 Adoption    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 77,557  
December 31, 2022 Pre-Topic 326 Adoption | Recreation [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 52,003  
December 31, 2022 Pre-Topic 326 Adoption | Home Improvement [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 12,858  
December 31, 2022 Pre-Topic 326 Adoption | Commercial [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 3,206  
December 31, 2022 Pre-Topic 326 Adoption | Taxi Medallion [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans 9,490  
December 31, 2022 Pre-Topic 326 Adoption | Strategic Partnership [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Allowance for credit losses on loans $ 0  
v3.24.1.u1
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Investments In Loans [Line Items]    
Intangibles assets $ 20,230 $ 20,591
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 15,400 15,675
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 4,830 $ 4,916
v3.24.1.u1
Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Accounting Policies [Abstract]    
Net income attributable to common stockholders $ 10,024 $ 15,361
Weighted average common shares outstanding applicable to basic EPS 22,641,385 22,342,911
Effect of restricted stock grants 610,333 483,429
Effect of dilutive stock options 254,793 149,117
Effect of performance stock unit grants 258,534 0
Adjusted weighted average common shares outstanding applicable to diluted EPS 23,765,045 22,975,457
Basic net income per share $ 0.44 $ 0.69
Diluted net income per share $ 0.42 $ 0.67
v3.24.1.u1
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
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 $ 298,662 $ 293,774
Tier 1 capital 367,450 362,561
Total capital 395,297 390,153
Average assets 2,236,357 2,232,816
Risk-weighted assets $ 2,176,939 $ 2,155,641
Leverage ratio [1] 0.164 0.162
Common equity Tier 1 capital ratio [2] 0.137 0.136
Tier 1 capital ratio [3] 0.169 0.168
Total capital ratio [3] 0.182 0.181
[1] Calculated by dividing Tier 1 capital by average assets.
[2] Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
[3] Calculated by dividing Tier 1 or total capital by risk-weighted assets.
v3.24.1.u1
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 59,539 $ 60,573
Gross Unrealized Gains 13 21
Gross Unrealized Losses (6,514) (6,312)
Fair Value 53,038 54,282
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 43,804 44,653
Gross Unrealized Gains 0 0
Gross Unrealized Losses (5,074) (4,791)
Fair Value 38,730 39,862
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 13,550 13,733
Gross Unrealized Gains 13 21
Gross Unrealized Losses (1,415) (1,501)
Fair Value 12,148 12,253
Agency Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,185 2,187
Gross Unrealized Gains 0 0
Gross Unrealized Losses (25) (20)
Fair Value $ 2,160 $ 2,167
v3.24.1.u1
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 3,970  
Amortized Cost, due after one year through five years 5,885  
Amortized Cost, due after five years through ten years 8,484  
Amortized Cost, due after ten years 41,200  
Amortized Cost 59,539 $ 60,573
Fair Value, due in one year or less 3,886  
Fair Value, due after one year through five years 5,662  
Fair Value, due after five years through ten years 7,414  
Fair Value, due after ten years 36,076  
Fair Value $ 53,038 $ 54,282
v3.24.1.u1
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (40) $ (282)
Fair Value, Less than Twelve Months 1,916 10,636
Gross Unrealized Losses, Twelve Months and Over (6,474) (6,030)
Fair Value, Twelve Months and Over 50,990 43,509
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (39) (78)
Fair Value, Less than Twelve Months 1,875 5,797
Gross Unrealized Losses, Twelve Months and Over (5,035) (4,714)
Fair Value, Twelve Months and Over 36,766 33,971
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (1) (204)
Fair Value, Less than Twelve Months 41 4,839
Gross Unrealized Losses, Twelve Months and Over (1,414) (1,296)
Fair Value, Twelve Months and Over 12,064 7,371
Agency Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months 0 0
Fair Value, Less than Twelve Months 0 0
Gross Unrealized Losses, Twelve Months and Over (25) (20)
Fair Value, Twelve Months and Over $ 2,160 $ 2,167
v3.24.1.u1
Investment Securities - Additional Information (Detail) - Securities
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Abstract]    
Number of Securities 60 60
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 2,188,640 $ 2,176,412    
Allowance for credit losses (83,827) [1] (84,235) [2] $ (70,280) [1] $ (63,845) [2]
Net loans receivable 2,144,599 2,131,651    
Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans 2,228,426 2,215,886 1,984,180 1,916,953
Allowance for credit losses (83,827) (84,235)    
Net loans receivable $ 2,144,599 $ 2,131,651    
Percentage of total gross loans 100.00% 100.00%    
Recreation [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 1,320,794 $ 1,292,591    
Allowance for credit losses (60,011) (57,532)    
Recreation [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 1,365,165 $ 1,336,226 1,213,380 1,183,512
Percentage of total gross loans 61.00% 60.00%    
Home Improvement [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 755,831 $ 764,069    
Allowance for credit losses (17,930) (21,019)    
Home Improvement [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 752,262 $ 760,617 669,642 626,399
Percentage of total gross loans 34.00% 34.00%    
Commercial [Member]        
Student Loan Portfolio By Program [Line Items]        
Allowance for credit losses $ (4,384) $ (4,148)    
Commercial [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 106,570 $ 114,827 95,329 92,899
Percentage of total gross loans 5.00% 5.00%    
Taxi Medallion [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 3,560 $ 3,663    
Allowance for credit losses (1,502) (1,536)    
Taxi Medallion [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans 3,560 3,663 4,059 13,571
Strategic Partnership [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans 869 553    
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]        
Student Loan Portfolio By Program [Line Items]        
Total gross loans $ 869 $ 553 $ 1,770 $ 572
[1] As of March 31, 2024 and March 31, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[2] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
v3.24.1.u1
Loans and Allowance for Credit Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance $ 2,176,412  
Charge-offs, net [1] (17,609) $ (11,315)
Transfer to loan collateral in process of foreclosure, net (5,425) (6,504)
Amortization of origination costs (2,007) (2,173)
Paid-in-kind interest 608 264
Gross loans, ending balance 2,188,640  
Recreation [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 1,292,591  
Transfer to loan collateral in process of foreclosure, net (5,425) (4,357)
Gross loans, ending balance 1,320,794  
Home Improvement [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 764,069  
Gross loans, ending balance 755,831  
Taxi Medallion [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 3,663  
Transfer to loan collateral in process of foreclosure, net 0 (2,147)
Gross loans, ending balance 3,560  
Strategic Partnership [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 553  
Charge-offs, net 0 0
Gross loans, ending balance 869  
Bank Holding Company Accounting [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 2,215,886 1,916,953
Loan originations 173,087 227,291
Principal payments, sales, maturities, and recoveries (144,208) (137,109)
Charge-offs, net (22,999) (18,097)
Transfer to loan collateral in process of foreclosure, net 5,425 (6,504)
Amortization of origination costs (2,007) (2,173)
FASB origination costs, net 2,634 3,555
Paid-in-kind interest 608 264
Gross loans, ending balance 2,228,426 1,984,180
Bank Holding Company Accounting [Member] | Recreation [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 1,336,226 1,183,512
Loan originations 105,765 101,681
Principal payments, sales, maturities, and recoveries (64,886) (56,217)
Charge-offs, net (18,101) (12,590)
Transfer to loan collateral in process of foreclosure, net 5,425 (4,357)
Amortization of origination costs (2,952) (2,759)
FASB origination costs, net 3,688 4,110
Paid-in-kind interest 0 0
Gross loans, ending balance 1,365,165 1,213,380
Bank Holding Company Accounting [Member] | Home Improvement [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 760,617 626,399
Loan originations 51,576 94,981
Principal payments, sales, maturities, and recoveries (54,917) (49,855)
Charge-offs, net (4,898) (1,914)
Transfer to loan collateral in process of foreclosure, net 0 0
Amortization of origination costs 938 586
FASB origination costs, net (1,054) (555)
Paid-in-kind interest 0 0
Gross loans, ending balance 752,262 669,642
Bank Holding Company Accounting [Member] | Commercial [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 114,827 92,899
Loan originations 0 3,000
Principal payments, sales, maturities, and recoveries (8,872) (834)
Charge-offs, net 0 0
Transfer to loan collateral in process of foreclosure, net 0 0
Amortization of origination costs 7 0
FASB origination costs, net 0 0
Paid-in-kind interest 608 264
Gross loans, ending balance 106,570 95,329
Bank Holding Company Accounting [Member] | Taxi Medallion [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 3,663 13,571
Loan originations 0 623
Principal payments, sales, maturities, and recoveries (103) (4,395)
Charge-offs, net 0 (3,593)
Transfer to loan collateral in process of foreclosure, net 0 (2,147)
Amortization of origination costs 0 0
FASB origination costs, net 0 0
Paid-in-kind interest 0 0
Gross loans, ending balance 3,560 4,059
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]    
Schedule Of Gross Real Estate And Loan Activity [Line Items]    
Gross loans, beginning balance 553 572
Loan originations 15,746 27,006
Principal payments, sales, maturities, and recoveries (15,430) (25,808)
Charge-offs, net 0 0
Transfer to loan collateral in process of foreclosure, net 0 0
Amortization of origination costs 0 0
FASB origination costs, net 0 0
Paid-in-kind interest 0 0
Gross loans, ending balance $ 869 $ 1,770
[1] As of March 31, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.7 million, including $105.5 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for credit losses - beginning balance [1] $ 84,235 $ 63,845
Total charge-offs (22,999) (18,097)
Total recoveries 5,390 6,782
Charge-offs, net [2] (17,609) (11,315)
Provision for credit losses 17,201 4,038
Allowance for credit losses - ending balance [3] 83,827 70,280
Accounting Standards Update 2016-13 [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for credit losses - ending balance 0 13,712
Recreation [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for credit losses - beginning balance 57,532  
Total charge-offs (18,101) (12,590)
Total recoveries 3,548 2,771
Allowance for credit losses - ending balance 60,011  
Home Improvement [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for credit losses - beginning balance 21,019  
Total charge-offs (4,898) (1,914)
Total recoveries 911 632
Allowance for credit losses - ending balance 17,930  
Commercial [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for credit losses - beginning balance 4,148  
Total charge-offs 0 0
Total recoveries 20 10
Allowance for credit losses - ending balance 4,384  
Taxi Medallion [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Allowance for credit losses - beginning balance 1,536  
Total charge-offs 0 (3,593)
Total recoveries 911 $ 3,369
Allowance for credit losses - ending balance $ 1,502  
[1] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
[2] As of March 31, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.7 million, including $105.5 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
[3] As of March 31, 2024 and March 31, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
 [1]
Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loan collateral process of foreclosure $ 10,198 [1] $ 20,467 $ 11,772 $ 21,819
Net charge-offs [2] 17,609 11,315    
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 173,700      
New York Taxi Medallion [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Cumulative charges of loans and loan collateral process of foreclosure $ 105,500      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.8 million as of March 31, 2024 and $6.2 million as of December 31, 2023.
[2] As of March 31, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.7 million, including $105.5 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Gross Charge Offs (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Financing Receivable, Past Due [Line Items]    
2024 $ 0 $ 0
2023 5,287 4,512
2022 8,498 3,698
2021 4,660 1,814
2020 1,576 1,685
Prior 2,978 6,388
Total 22,999 18,097
Recreation [Member]    
Financing Receivable, Past Due [Line Items]    
2024 0 0
2023 3,763 3,608
2022 6,818 3,070
2021 3,497 1,671
2020 1,289 1,554
Prior 2,734 2,687
Total 18,101 12,590
Home Improvement [Member]    
Financing Receivable, Past Due [Line Items]    
2024 0 0
2023 1,524 904
2022 1,680 628
2021 1,163 143
2020 287 131
Prior 244 108
Total 4,898 1,914
Commercial Loan [Member]    
Financing Receivable, Past Due [Line Items]    
2024 0 0
2023 0 0
2022 0 0
2021 0 0
2020 0 0
Prior 0 0
Total 0 0
Taxi Medallion [Member]    
Financing Receivable, Past Due [Line Items]    
2024 0 0
2023 0 0
2022 0 0
2021 0 0
2020 0 0
Prior 0 3,593
Total $ 0 $ 3,593
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
 [1]
Dec. 31, 2022
 [2]
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 83,827 [1] $ 84,235 [2] $ 70,280 $ 63,845
Percentage of Allowance 100.00% 100.00%    
Allowance as a Percent of Loan Category 3.76% 3.80%    
Allowance as a Percent of Nonaccrual 383.10% 324.31%    
Recreation [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 60,011 $ 57,532    
Percentage of Allowance 72.00% 68.00%    
Allowance as a Percent of Loan Category 4.40% 4.31%    
Allowance as a Percent of Nonaccrual 274.26% 221.50%    
Home Improvement [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 17,930 $ 21,019    
Percentage of Allowance 21.00% 25.00%    
Allowance as a Percent of Loan Category 2.38% 2.76%    
Allowance as a Percent of Nonaccrual 81.94% 80.92%    
Commercial [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 4,384 $ 4,148    
Percentage of Allowance 5.00% 5.00%    
Allowance as a Percent of Loan Category 4.11% 3.61%    
Allowance as a Percent of Nonaccrual 20.04% 15.97%    
Taxi Medallion [Member]        
Financing Receivable Recorded Investment Past Due [Line Items]        
Amount $ 1,502 $ 1,536    
Percentage of Allowance 2.00% 2.00%    
Allowance as a Percent of Loan Category 42.20% 41.93%    
Allowance as a Percent of Nonaccrual 6.86% 5.91%    
[1] As of March 31, 2024 and March 31, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
[2] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Summary of Total Nonaccrual Loans and Foregone Interest (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Total nonaccrual loans $ 21,881 $ 25,974
Interest foregone quarter to date 309 928
Amount of foregone interest applied to principal in the quarter 64 238
Interest foregone life-to-date 1,101 2,119
Amount of foregone interest applied to principal life-to-date $ 816 $ 822
Percentage of nonaccrual loans to gross loan portfolio 1.00% 1.20%
Percentage of allowance for credit losses to nonaccrual loans 383.10% 324.30%
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 2,228,426 $ 2,215,886
Percentage of Nonperforming to Total 0.98% 1.17%
Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 2,206,545 $ 2,189,912
Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 21,881 25,974
Recreation [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,365,165 $ 1,336,226
Percentage of Nonperforming to Total 0.50% 0.72%
Recreation [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 1,358,293 $ 1,326,567
Recreation [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 6,872 9,659
Home Improvement [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 752,262 $ 760,617
Percentage of Nonperforming to Total 0.18% 0.20%
Home Improvement [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 750,903 $ 759,128
Home Improvement [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 1,359 1,489
Commercial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 106,570 $ 114,827
Percentage of Nonperforming to Total 9.47% 9.72%
Commercial [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 96,480 $ 103,664
Commercial [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 10,090 11,163
Taxi Medallion [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 3,560 $ 3,663
Percentage of Nonperforming to Total 100.00% 100.00%
Taxi Medallion [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
Taxi Medallion [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans 3,560 3,663
Strategic Partnership [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 869 $ 553
Percentage of Nonperforming to Total 0.00% 0.00%
Strategic Partnership [Member] | Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 869 $ 553
Strategic Partnership [Member] | Non - Performing [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Status of loans $ 0 $ 0
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Attributes of Nonperforming Loan Portfolio (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance $ 21,881   $ 25,974
Unpaid principal balance, With related allowance 22,697   26,796
Related Allowance, With related allowance 4,156   3,890
Average Investment Recorded, With related allowance 22,581 $ 16,842  
Interest Income (Expense) Recognized, With related allowance 17 14  
Recreation [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 6,872   9,655
Unpaid principal balance, With related allowance 6,872   9,655
Related Allowance, With related allowance 302   416
Average Investment Recorded, With related allowance 6,721 4,656  
Interest Income (Expense) Recognized, With related allowance 16 13  
Home Improvement [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 1,359   1,493
Unpaid principal balance, With related allowance 1,359   1,493
Related Allowance, With related allowance 32   41
Average Investment Recorded, With related allowance 1,363 441  
Interest Income (Expense) Recognized, With related allowance 1 1  
Commercial [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 10,090   11,163
Unpaid principal balance, With related allowance 10,243   11,301
Related Allowance, With related allowance 2,320   1,897
Average Investment Recorded, With related allowance 10,243 5,652  
Interest Income (Expense) Recognized, With related allowance 0 0  
Taxi Medallion [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Recorded Investment, With related allowance 3,560   3,663
Unpaid principal balance, With related allowance 4,223   4,347
Related Allowance, With related allowance 1,502   $ 1,536
Average Investment Recorded, With related allowance 4,254 6,093  
Interest Income (Expense) Recognized, With related allowance $ 0 $ 0  
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 70,517 $ 81,013
Total 2,188,640 2,176,412
Accruing 0 0
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,118,123 2,095,399
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 40,700 44,419
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 13,685 19,757
90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 16,132 16,837
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 55,484 64,416
Total 1,320,794 1,292,591
Accruing 0 0
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,265,310 1,228,175
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 37,205 40,282
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 11,905 15,039
Recreation [Member] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,374 9,095
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,537 8,000
Total 755,831 764,069
Accruing 0 0
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 749,294 756,069
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,495 3,936
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,680 2,562
Home Improvement [Member] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,362 1,502
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 8,396 8,396
Total 107,586 115,536
Accruing 0 0
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 99,190 107,140
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 2,156
Commercial Loans [Member] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 8,396 6,240
Taxi Medallion [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 100 201
Total 3,560 3,663
Accruing 0 0
Taxi Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,460 3,462
Taxi Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 201
Taxi Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 100 0
Taxi Medallion [Member] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Strategic Partnership [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 0
Total 869 553
Accruing 0 0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 869 553
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] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 0 $ 0
v3.24.1.u1
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Capitalized loan origination costs $ 40.7 $ 40.0
v3.24.1.u1
Loans and Allowance for Credit Losses - Additional Information (Detail)
Mar. 31, 2024
Dec. 31, 2023
Financing Receivable Recorded Investment Past Due [Line Items]    
Weighted average loan-to-value ratio 188.00% 183.00%
v3.24.1.u1
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
Mar. 31, 2024
Mar. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance $ 11,772 [1] $ 21,819
Transfer from loans, net 5,425 6,504
Sales (39) (2,210)
Cash payments received (3,720) (3,317)
Collateral valuation adjustments (3,240) (2,329)
Loans collateral in process of foreclosure - ending balance 10,198 [1] 20,467
Recreation [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 1,779 1,376
Transfer from loans, net 5,425 4,357
Sales 0 (2,195)
Cash payments received (2,447) 0
Collateral valuation adjustments (3,282) (2,077)
Loans collateral in process of foreclosure - ending balance 1,475 1,461
Taxi Medallion [Member]    
Loans and Leases Receivable Disclosure [Line Items]    
Loans collateral in process of foreclosure - beginning balance 9,993 20,443
Transfer from loans, net 0 2,147
Sales (39) (15)
Cash payments received (1,273) (3,317)
Collateral valuation adjustments 42 (252)
Loans collateral in process of foreclosure - ending balance $ 8,723 $ 19,006
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.8 million as of March 31, 2024 and $6.2 million as of December 31, 2023.
v3.24.1.u1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
2025 $ 753,655  
2026 526,332  
2027 354,570  
2028 211,550  
2029 214,739  
Thereafter 83,250  
Long term debt [1] $ 2,144,096 $ 2,117,189
Interest Rate [2] 3.59%  
Deposits [Member]    
Debt Instrument [Line Items]    
2025 [3] $ 721,155  
2026 [3] 479,582  
2027 [3] 350,070  
2028 [3] 157,800  
2029 [3] 173,239  
Thereafter [3] 0  
Long term debt [1],[3] $ 1,881,846 1,869,439
Interest Rate [2],[3] 3.17%  
Retail And Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2025 $ 0  
2026 31,250  
2027 0  
2028 53,750  
2029 39,000  
Thereafter 12,500  
Long term debt [1] $ 136,500 139,500
Interest Rate [2] 8.08%  
SBA debentures and borrowings    
Debt Instrument [Line Items]    
2025 $ 12,500  
2026 15,500  
2027 4,500  
2028 0  
2029 2,500  
Thereafter 37,750  
Long term debt [1] $ 72,750 75,250
Interest Rate [2] 3.54%  
Trust Preferred Securities [Member]    
Debt Instrument [Line Items]    
2025 $ 0  
2026 0  
2027 0  
2028 0  
2029 0  
Thereafter 33,000  
Long term debt [1] $ 33,000 33,000
Interest Rate [2] 7.71%  
Federal Reserve and Other Borrowings [Member]    
Debt Instrument [Line Items]    
2025 $ 20,000  
2026 0  
2027 0  
2028 0  
2029 0  
Thereafter 0  
Long term debt [1] $ 20,000 $ 0
Interest Rate [2] 5.95%  
[1] Excludes deferred financing costs of $8.5 million as of both March 31, 2024 and December 31, 2023.
[2] Weighted average contractual rate as of March 31, 2024.
[3] Balance excludes $1.5 million of strategic partner reserve deposits as of both March 31, 2024 and December 31, 2023.
v3.24.1.u1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]    
Deferred costs $ 8.5 $ 8.5
Reserve deposits $ 1.5 $ 1.5
v3.24.1.u1
Funds Borrowed - Additional Information (Detail) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 28, 2024
Sep. 30, 2023
Jul. 10, 2023
Feb. 28, 2021
Dec. 31, 2007
Jun. 30, 2007
Jan. 31, 2024
Dec. 31, 2020
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2019
Apr. 30, 2021
Mar. 15, 2021
Aug. 31, 2019
Mar. 31, 2019
Dec. 31, 2017
Mar. 01, 2017
Debt Instrument [Line Items]                                    
Time deposits                 $ 1,883,346                  
Listing services deposits from other financial institutions.                 12,100   $ 11,800              
Retail savings deposit balance                 12,400   $ 14,900              
Aggregate principal amount                             $ 6,000      
Maturity date   Sep. 30, 2028   Feb. 28, 2026             Dec. 21, 2033              
Principal amount outstanding repaid                 3,000                  
Gain loss on sales of loans net                 $ 588 $ 1,855                
Issue of common stock                 29,243,878   29,051,800              
Preferred securities repurchased from a third party investor         $ 2,000                          
Long-term debt [1]                 $ 225,558   $ 235,544              
Investment securities pledged                 53,038   54,282              
Medallion Capital, Inc.                                    
Debt Instrument [Line Items]                                    
Debt instrument face amount $ 18,500   $ 20,000                              
Long-term debt 18,500               2,200                  
Debt instrument leverage fee 200   200                              
Debt instrument, additional leverage fee 400   $ 400                              
Line Of Credit Facility Drawn Amount                 9,800                  
Line Of Credit Facility Drawable Amount                 8,000                  
Long term debt under capital infusion $ 9,300               $ 1,100                  
Trust Preferred Securities [Member]                                    
Debt Instrument [Line Items]                                    
Maturity date                 Sep. 30, 2037                  
Sale of preferred securities           $ 35,000                        
Issue of common stock           1,083                        
Preferred securities outstanding                 $ 33,000                  
Trust 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                  
Trust Preferred Securities [Member] | Unsecured Debt [Member]                                    
Debt Instrument [Line Items]                                    
Aggregate principal amount of unsecured junior subordinated notes           $ 36,100                        
SBA debentures and borrowings                                    
Debt Instrument [Line Items]                                    
Debt instrument interest rate Percentage                 3.25%                  
Loan commitment term                 4 years 6 months                  
Commitment fee percentage                 1.00%                  
Principal amount of loan                                 $ 34,000 $ 34,000
Extended maturity date                 Apr. 30, 2024                  
Freshstart Venture Capital Corp [Member]                                    
Debt Instrument [Line Items]                                    
Principal amount of loan                                 $ 33,500  
Other Borrowings [Member]                                    
Debt Instrument [Line Items]                                    
Borrowings                 $ 20,000                  
Line of credit facility, amount outstanding                 0                  
Federal reserve discount window and other borrowings [Member]                                    
Debt Instrument [Line Items]                                    
Borrowings                 0                  
Investment securities pledged                 $ 36,900                  
Pledged securities advance rate of fair value                 100.00%                  
Borrowing capacity                 $ 36,900                  
Commercial Banks [Member]                                    
Debt Instrument [Line Items]                                    
Borrowing capacity                 $ 75,000                  
7.25% Unsecured Senior Notes Due February Two Thousand And Twenty Six [Member]                                    
Debt Instrument [Line Items]                                    
Aggregate principal amount                         $ 3,000 $ 3,300        
7.50% Percentage Unsecured Senior Notes Due December Two Thousand And Twenty Seven [Member]                                    
Debt Instrument [Line Items]                                    
Aggregate principal amount                         $ 11,700          
Privately Placed Notes [Member]                                    
Debt Instrument [Line Items]                                    
Aggregate principal amount   $ 39,000   $ 25,000       $ 33,600     $ 12,500     $ 8,500   $ 30,000    
Debt instrument interest rate Percentage   9.25%   7.25%       7.50%     9.00%         8.25%    
Maturity date                 2024   2024              
Maturity date               Dec. 31, 2027                    
Repurchase amount   $ 33,000                           $ 33,000    
Gain loss on sales of loans net                       $ 4,100            
Revolving Credit Facility [Member] | Other Borrowings [Member]                                    
Debt Instrument [Line Items]                                    
Debt instrument interest rate Percentage             2.75%                      
Commitment fee percentage             0.10%                      
Borrowing capacity             $ 7,500                      
Minimum [Member]                                    
Debt Instrument [Line Items]                                    
Time deposits                 $ 250,000                  
Brokerage [Member] | Maximum [Member]                                    
Debt Instrument [Line Items]                                    
Average brokerage fee percentage in relation to the maturity of deposits                 0.15%                  
[1] Includes $4.2 million of deferred financing costs as of both March 31, 2024 and December 31, 2023. Refer to Note 5 for more details.
v3.24.1.u1
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Mar. 31, 2024
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 202,913
Over three months through six months 186,507
Over six months through one year 331,735
Over one year 1,160,691
Deposits 1,881,846
Strategic partner collateral deposits 1,500
Total deposits $ 1,883,346
v3.24.1.u1
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Leases [Abstract]    
Operating lease costs $ 604 $ 597
Operating cash flows from operating leases 657 623
Right-of-use asset obtained in exchange for lease liability $ (59) $ (56)
v3.24.1.u1
Leases - Schedule of Breakout of Operating Leases (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
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 $ 8,327 $ 8,785
Other current liabilities $ 2,255 $ 2,472
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 6,710 $ 7,019
Total operating lease liabilities $ 8,965 $ 9,491
Weighted average remaining lease term 4 years 4 months 24 days 4 years 10 months 24 days
Weighted average discount rate 5.56% 5.47%
v3.24.1.u1
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Remainder of 2024 $ 1,903  
2025 2,546  
2026 2,567  
2027 1,342  
2028 573  
Thereafter 1,139  
Total lease payments 10,070  
Less imputed interest 1,105  
Total operating lease liabilities $ 8,965 $ 9,491
v3.24.1.u1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ 42,943 $ 43,034
Provision for credit losses (12,005) (13,032)
Net operating loss carryforwards [1] (3,803) (3,802)
Accrued expenses, compensation, and other assets (4,794) (6,976)
Unrealized gains on other investments (868) (1,877)
Total deferred tax liability 21,473 17,347
Valuation allowance 3,373 3,860
Deferred tax liability, net $ 24,846 $ 21,207
[1] As of March 31, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of March 31, 2024.
v3.24.1.u1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member]
$ in Millions
 3 Months Ended
Mar. 31, 2024
USD ($)
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 11.1
Net operating loss carryforwards expiration period expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets $ 1.2
December 31, 2026 To December 31, 2035 [Member]  
Income Tax Rate Reconciliation [Line Items]  
Net operating loss carryforwards $ 1.7
v3.24.1.u1
Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Current    
Federal $ 1,729 $ 2,583
State 643 789
Deferred    
Federal 3,116 2,246
State 870 764
Total income tax provision $ 6,358 $ 6,382
v3.24.1.u1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision at 21% $ 3,758 $ 4,884
State and local income taxes, net of federal income tax benefit 735 955
Non-deductible expenses 1,780 1,058
Other 85 (515)
Total income tax provision $ 6,358 $ 6,382
v3.24.1.u1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Tax Disclosure [Abstract]    
Statutory Federal income tax provision percentage 21.00% 21.00%
v3.24.1.u1
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Jun. 15, 2018
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock option outstanding   946,054 [1]   959,522 1,061,849  
Stock option exercisable   857,609 [1]   697,647    
Unvested shares of common stock outstanding   88,445   261,875    
Number of shares vested and settled   162,615        
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   248,507        
Number of shares outstanding, vested restricted stock units   162,615        
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   0   83,158    
Weighted average grant price, granted   $ 9.14        
Restricted Shares [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares outstanding   889,361 [2]   995,376 857,288  
Number of shares vested and settled [3]   400,985   248,898    
Weighted average fair value of options granted   $ 0 $ 0      
Number of shares, granted   296,178 304,749 399,793    
Weighted average grant price, granted   $ 8.97   $ 8.34    
PSU [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares, granted   215,687   296,444    
Weighted average grant price, granted   $ 8.97   $ 6.08    
Unvested Performance Shares [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares outstanding, performance stock units   512,131        
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        
Shares were rolled into the 2018 Plan   1,485,522        
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares outstanding   85,892        
2018 Restricted Stock Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unvested shares of common stock outstanding   889,361        
2015 Director Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for grant 258,334         300,000
2015 Director Plan [Member] | Non Employee Director One [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for grant 12,000          
2015 Director Plan [Member] | Maximum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period 10 years          
Amended Director Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for grant           200,000
Number of additional shares available for issuance   0        
Amended Director Plan [Member] | Director [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for grant   9,000        
Amended Director Plan [Member] | Maximum [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period 10 years          
[1] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at March 31, 2024 and the related exercise price of the underlying options, was $1.3 million for outstanding options and $1.2 million for vested options as of March 31, 2024. The remaining contractual life was 5.9 years for outstanding options and 5.8 years for vested options at March 31, 2024
[2] The aggregate fair value of the restricted stock was $7.0 million as of March 31, 2024. The remaining vesting period was 2.9 years at March 31, 2024.
[3] The aggregate fair value of the restricted stock vested was $2.7 million for the three months ended March 31, 2024 and $2.1 million for the year ended December 31, 2023.
v3.24.1.u1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of options beginning balance 959,522 1,061,849
Granted 0 0
Cancelled (85) (33,382)
Exercised [1] (13,383) (68,945)
Number of options ending balance 946,054 [2] 959,522
Options exercisable 857,609 [2] 697,647
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance 9.38 9.38
Exercise price per share, granted 0 0
Exercise price per share, lower range limit ending balance 2.14 [2] 2.14
Exercise price per share, upper range limit ending balance 9.38 [2] 9.38
Exercise price per share, option exercisable lower range limit 2.14 [2] 2.14
Exercise price per share, option exercisable upper range limit 9.38 [2] 9.38
Weighted average exercise price, beginning balance 6.51 6.51
Weighted average exercise price, granted 0 0
Weighted average exercise price, cancelled 4.89 6.8
Weighted average exercise price, exercised [1] 6.61 6.44
Weighted average exercise price, ending balance 6.51 [2] 6.51
Weighted average exercise price, options exercisable 6.52 [2] 6.51
Minimum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Exercise price per share, cancelled   4.89
Exercise price per share, exercised [1] 4.89 4.89
Maximum [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Exercise price per share, cancelled 4.89 9.38
Exercise price per share, exercised [1] $ 7.25 $ 7.25
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three months ended March 31, 2024 and was $0.1 million for the year ended December 31, 2023.
[2] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at March 31, 2024 and the related exercise price of the underlying options, was $1.3 million for outstanding options and $1.2 million for vested options as of March 31, 2024. The remaining contractual life was 5.9 years for outstanding options and 5.8 years for vested options at March 31, 2024
v3.24.1.u1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Aggregate intrinsic value for option exercised   $ 0.1
Aggregate intrinsic value of option outstanding $ 1.3  
Aggregate intrinsic value of option vested $ 1.2  
Remaining contractual life of option outstanding 5 years 10 months 24 days  
Remaining contractual life of option vested 5 years 9 months 18 days  
Maximum [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Aggregate intrinsic value for option exercised $ 0.1  
v3.24.1.u1
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]    
Number of options beginning balance 261,875  
Number of options, granted 0 0
Number of options, vested (173,430)  
Number of options ending balance 88,445 261,875
Exercise price per share beginning balance, Lower limit $ 4.89  
Exercise price per share beginning balance, Upper limit 7.25  
Exercise price per share, Vested, Lower limit 4.89  
Exercise price per share, Vested, Upper limit 7.25  
Exercise price per share ending balance, Lower limit 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 7.25 7.25
Weighted average exercise price 6.49  
Weighted average exercise price, vested 6.56  
Weighted average exercise price $ 6.37 $ 6.49
v3.24.1.u1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares, vested (162,615)    
Grant price per share, cancelled, lower limit $ 4.89    
Grant price per share, cancelled, upper limit $ 7.25    
Restricted Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares, beginning balance 995,376 857,288 857,288
Number of shares, granted 296,178 304,749 399,793
Number of shares, cancelled (1,208)   (12,807)
Number of shares, vested [1] (400,985)   (248,898)
Number of shares, ending balance 889,361 [2]   995,376
Grant price per share, lower range limit beginning balance $ 4.89 $ 4.89 $ 4.89
Grant price per share, upper range limit beginning balance 9.37 7.25 7.25
Grant price per share, granted, lower limit     7.67
Grant price per share, granted, upper limit 8.97   9.37
Grant price per share, cancelled, lower limit 6.86   4.89
Grant price per share, cancelled, upper limit 9.37   8.4
Grant price per share, vested, lower limit [1] 4.89   4.89
Grant price per share, vested, upper limit [1] 8.4   7.68
Grant price per share, lower range limit ending balance 4.89 [2]   4.89
Grant price per share, upper range limit ending balance 9.37 [2]   9.37
Weighted average grant price beginning balance 7.74 $ 7.27 7.27
Weighted average grant price, granted 8.97   8.34
Weighted average grant price, cancelled 8.13   7.24
Weighted average grant price, vested [1] 7.69   7.1
Weighted average grant price, ending balance $ 8.18 [2]   $ 7.74
[1] The aggregate fair value of the restricted stock vested was $2.7 million for the three months ended March 31, 2024 and $2.1 million for the year ended December 31, 2023.
[2] The aggregate fair value of the restricted stock was $7.0 million as of March 31, 2024. The remaining vesting period was 2.9 years at March 31, 2024.
v3.24.1.u1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Aggregate fair value of restricted stock vested $ 2.7 $ 2.1
Aggregate fair value of restricted stock outstanding $ 7.0  
Remaining vesting period of restricted stock 2 years 10 months 24 days  
v3.24.1.u1
Segment Reporting - Additional Information (Detail)
 3 Months Ended
Mar. 31, 2024
Segment
Segment Reporting Disclosure [Line Items]  
Number of business segments 5
Number of operating segments 4
Number of non-operating segments 1
Roofs [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 40.00%
Swimming Pools [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 20.00%
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%
Texas [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 16.00%
Texas [Member] | Home Improvement [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 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%
Other States [Member] | Home Improvement [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 54.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Boats [Member]  
Segment Reporting Disclosure [Line Items]  
Aggregate percentage of loans lending 19.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Automobile [Member]  
Segment Reporting Disclosure [Line Items]  
Aggregate percentage of loans lending 10.00%
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 | Manufacturing [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 53.00%
Commercial Lending Segment | Construction [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 14.00%
Commercial Lending Segment | Wholesale Trade [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 12.00%
Commercial Lending Segment | Other Product Lines [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
Commercial Lending Segment | California [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 30.00%
Commercial Lending Segment | Wisconsin [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 11.00%
Commercial Lending Segment | Texas [Member]  
Segment Reporting Disclosure [Line Items]  
Loan outstanding percent 10.00%
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%
v3.24.1.u1
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Segment Reporting Disclosure [Line Items]      
Total interest income $ 67,070 $ 55,843  
Total interest expense 19,153 12,240  
Net interest income (loss) 47,917 43,603  
Provision (benefit) for credit losses 17,201 4,038  
Net interest income (loss) after loss provision 30,716 39,565  
Other income 5,403 2,083  
Other expenses (18,225) (18,393)  
Net income (loss) before taxes 17,894 23,255  
Income tax (provision) benefit (6,358) (6,382)  
Net income (loss) after taxes 11,536 16,873  
Income attributable to the non-controlling interest 1,512 1,512  
Total net income attributable to Medallion Financial Corp. 10,024 15,361  
Balance Sheet Data      
Total loans 2,144,599   $ 2,131,651
Loans 2,228,426 1,984,180 2,215,886
Total assets 2,618,762 2,351,670 $ 2,587,827
Total funds borrowed $ 2,145,596 $ 1,916,390  
Selected Financial Ratios      
Return on average assets 1.80% 2.99%  
Return on average stockholders' equity 11.65% 20.72%  
Return on average equity 11.18% 18.50%  
Interest yield 11.34% 10.78%  
Net interest margin, gross 8.10% 8.42%  
Net interest margin, net of allowance 8.39% 8.71%  
Reserve coverage 3.76% 3.54%  
Delinquency status 0.74% [1] 0.24% [2]  
Charge-off (recovery) ratio 3.20% [3] 2.35% [4]  
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income $ 43,927 $ 37,899  
Total interest expense 9,645 5,904  
Net interest income (loss) 34,282 31,995  
Provision (benefit) for credit losses 17,030 7,751  
Net interest income (loss) after loss provision 17,252 24,244  
Other income 250 0  
Other expenses (8,287) (7,803)  
Net income (loss) before taxes 9,215 16,441  
Income tax (provision) benefit (3,274) (4,513)  
Net income (loss) after taxes 5,941 11,928  
Balance Sheet Data      
Total loans 1,365,165 1,213,380  
Total assets 1,322,761 1,179,965  
Total funds borrowed $ 1,083,760 $ 961,561  
Selected Financial Ratios      
Return on average assets 1.82% 4.14%  
Return on average equity 11.44% 25.63%  
Interest yield 13.17% 12.87%  
Net interest margin, gross 10.28% 10.86%  
Net interest margin, net of allowance 10.75% 11.33%  
Reserve coverage 4.40% 4.12%  
Delinquency status 0.48% [1] 0.36% [2]  
Charge-off (recovery) ratio 4.36% [3] 3.48% [4]  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income $ 17,447 $ 13,649  
Total interest expense 5,634 3,279  
Net interest income (loss) 11,813 10,370  
Provision (benefit) for credit losses 898 3,081  
Net interest income (loss) after loss provision 10,915 7,289  
Other income 2 1  
Other expenses (4,114) (3,994)  
Net income (loss) before taxes 6,803 3,296  
Income tax (provision) benefit (2,417) (905)  
Net income (loss) after taxes 4,386 2,391  
Balance Sheet Data      
Total loans 752,262 669,642  
Total assets 738,551 660,846  
Total funds borrowed $ 605,107 $ 538,527  
Selected Financial Ratios      
Return on average assets 2.38% 1.52%  
Return on average equity 14.93% 9.37%  
Interest yield 9.28% 8.54%  
Net interest margin, gross 6.28% 6.49%  
Net interest margin, net of allowance 6.45% 6.62%  
Reserve coverage 2.38% 2.19%  
Delinquency status 0.18% [1] 0.07% [2]  
Charge-off (recovery) ratio 2.12% [3] 0.82% [4]  
Operating Segments [Member] | Commercial Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income $ 3,645 $ 2,701  
Total interest expense 1,098 809  
Net interest income (loss) 2,547 1,892  
Provision (benefit) for credit losses 216 327  
Net interest income (loss) after loss provision 2,331 1,565  
Other income 4,202 271  
Other expenses (985) (420)  
Net income (loss) before taxes 5,548 1,416  
Income tax (provision) benefit (1,971) (389)  
Net income (loss) after taxes 3,577 1,027  
Balance Sheet Data      
Total loans 106,570 95,329  
Total assets 102,331 101,392  
Total funds borrowed $ 83,842 $ 82,625  
Selected Financial Ratios      
Return on average assets 13.50% 4.11%  
Return on average equity 84.71% 25.39%  
Interest yield 12.99% 11.53%  
Net interest margin, gross 9.08% 8.08%  
Net interest margin, net of allowance 9.43% 8.32%  
Reserve coverage 4.11% 3.71%  
Delinquency status 7.80% [1] 0.08% [2]  
Charge-off (recovery) ratio (0.07%) [3] (0.16%) [4]  
Operating Segments [Member] | Taxi Medallion Lending [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income $ 140 $ 310  
Total interest expense 28 67  
Net interest income (loss) 112 243  
Provision (benefit) for credit losses (944) (7,084)  
Net interest income (loss) after loss provision 1,056 7,327  
Other income 639 1,620  
Other expenses (743) (2,027)  
Net income (loss) before taxes 952 6,920  
Income tax (provision) benefit (338) (1,899)  
Net income (loss) after taxes 614 5,021  
Balance Sheet Data      
Total loans 3,560 4,059  
Total assets 8,611 20,335  
Total funds borrowed $ 7,055 $ 16,571  
Selected Financial Ratios      
Return on average assets 23.68% 90.53%  
Return on average equity 148.65% 558.90%  
Interest yield 15.59% 11.78%  
Net interest margin, gross 12.47% 9.23%  
Net interest margin, net of allowance 21.57% 28.89%  
Reserve coverage 42.19% 53.07%  
Delinquency status 0.00% [1] 0.00% [2]  
Charge-off (recovery) ratio (101.47%) [3] 29.84% [4]  
Intersegment Eliminations [Member]      
Segment Reporting Disclosure [Line Items]      
Total interest income $ 1,911 $ 1,284  
Total interest expense 2,748 2,181  
Net interest income (loss) (837) (897)  
Provision (benefit) for credit losses 1 (37)  
Net interest income (loss) after loss provision (838) (860)  
Other income 310 191  
Other expenses (4,096) (4,149)  
Net income (loss) before taxes (4,624) (4,818)  
Income tax (provision) benefit 1,642 1,324  
Net income (loss) after taxes (2,982) (3,494)  
Balance Sheet Data      
Total loans 869 1,770  
Total assets 446,508 389,132  
Total funds borrowed $ 365,832 $ 317,106  
Selected Financial Ratios      
Return on average assets (2.78%) (3.79%)  
Return on average equity (17.47%) (23.42%)  
[1] Loans 90 days or more past due.
[2] Loans 90 days or more past due.
[3] Negative balances indicate net recoveries for the period.

(NM) Not meaningful.
[4] Negative balances indicate net recoveries for the period.

(NM) Not meaningful.
v3.24.1.u1
Commitments and Contingencies - Additional Information (Detail)
 3 Months Ended
Mar. 31, 2024
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description employment agreements expire at various dates through 2027
Future minimum payments $ 9,900,000
Other commitment $ 0
v3.24.1.u1
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Related Party Transaction [Line Items]    
Salary from related party $ 260,988 $ 250,950
Annual cash bonus 95,000 85,000
Equity bonus $ 52,000 $ 50,000
v3.24.1.u1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Financial assets      
Equity investments $ 16,374 $ 11,430  
Investment securities 53,038 54,282  
Loans receivable 2,228,426 2,215,886 $ 1,984,180
Equity securities, fair value 1,700 1,700  
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 169,125 149,845  
Equity investments 16,374 11,430  
Investment securities 53,038 54,282  
Loans receivable 2,144,599 2,131,651  
Accrued interest receivable [2] 12,673 13,538  
Equity securities, fair value [3] 1,730 1,748  
Financial liabilities      
Funds borrowed 2,145,596 2,118,689  
Accrued interest payable [2] 6,077 6,822  
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 169,125 149,845  
Equity investments 16,374 11,430  
Investment securities 53,038 54,282  
Loans receivable 2,144,599 2,131,651  
Accrued interest receivable [2] 12,673 13,538  
Equity securities, fair value [3] 1,730 1,748  
Financial liabilities      
Funds borrowed 2,145,596 2,118,689  
Accrued interest payable [2] $ 6,077 $ 6,822  
[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of March 31, 2024 and $1.3 million as of December 31, 2023. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
v3.24.1.u1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
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
v3.24.1.u1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
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
Investment securities 53,038 54,282
Equity securities, fair value [1] 1,730 1,748
Total 56,018 [2] 57,280 [3]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,730 1,748
Total 1,730 [2] 1,748 [3]
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Investment securities 53,038 54,282
Total $ 54,288 [2] $ 55,532 [3]
[1] Included within other assets on the balance sheet.
[2] Total unrealized losses of $0.2 million, net of tax, was included in other comprehensive income for the three months ended March 31, 2024 related to these assets.
[3] Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.
v3.24.1.u1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]      
Net change in unrealized gains (losses) on investments, net of tax $ (150) $ 506 $ (300)
AOCI Attributable to Parent [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]      
Net change in unrealized gains (losses) on investments, net of tax $ (150) $ 506  
v3.24.1.u1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Assets        
Equity investments $ 1,700 $ 1,700    
Impaired loans 14,000 14,000    
Loan collateral in process of foreclosure 10,198 [1] 11,772 [1] $ 20,467 $ 21,819
Fair Value, Nonrecurring        
Assets        
Equity investments 16,374 11,430    
Impaired loans 21,881 25,974    
Loan collateral in process of foreclosure 10,198 11,772    
Total 48,453 49,176    
Fair Value, Nonrecurring | Level 3 [Member]        
Assets        
Equity investments 16,374 11,430    
Impaired loans 21,881 25,974    
Loan collateral in process of foreclosure 10,198 11,772    
Total $ 48,453 $ 49,176    
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.8 million as of March 31, 2024 and $6.2 million as of December 31, 2023.
v3.24.1.u1
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
$ / shares
Mar. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity investments $ 1,700,000 $ 1,700,000    
Principal portion of loans serviced, fair value 14,000,000 14,000,000    
Loan collateral in process of foreclosure $ 10,198,000 [1] $ 11,772,000 [1] $ 20,467,000 $ 21,819,000
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    
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Sale Price [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Sale price $ 5,084,000      
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 0.4351 0.2848    
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 1,800 [4] 2,300 [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] 45,000 [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 11,290,000 11,157,000    
Level 3 [Member] | Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity investments 273,000 273,000    
Level 3 [Member] | Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Sale Price [Member]        
Fair Value Measurement Inputs and Valuation Techniques [Line Items]        
Equity investments 5,084,000      
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 21,881,000 25,974,000    
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 $ 10,198,000 $ 11,772,000    
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.8 million as of March 31, 2024 and $6.2 million as of December 31, 2023.
[2] Represents amount net of liquidation costs.
[3] Represents amount net of liquidation costs.
[4] Relates to the recreation loan portfolio.
[5] Relates to the recreation loan portfolio.
v3.24.1.u1
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Mar. 31, 2024
Dec. 31, 2021
Changes In Equity And Comprehensive Income Line Items [Line Items]        
Investment, Type [Extensible Enumeration]       Equity Securities [Member]
Capital Purchase Program [Member]        
Changes In Equity And Comprehensive Income Line Items [Line Items]        
US Treasury shares purchased   26,303    
Investment, Type [Extensible Enumeration]   U.S. Treasury Securities [Member]    
Preferred stock, liquidation preference per share     $ 1,000  
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]        
Changes In Equity And Comprehensive Income Line Items [Line Items]        
Initial public offering shares 1,840,000      
Preferred stock, aggregate liquidation amount $ 46.0      
Preferred stock, net of liquidation amount $ 42.5      
Percentage of dividend payment rate 8.00%      
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | SOFR [Member]        
Changes In Equity And Comprehensive Income Line Items [Line Items]        
Percentage of liquidation rate basis 6.46%      
Dividend description of variable rate basis three month Secured Overnight Financing Rate, or SOFR      
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member]        
Changes In Equity And Comprehensive Income Line Items [Line Items]        
Percentage of dividend payment rate     9.00%  
Aggregate purchase price   $ 26.3