MEDALLION FINANCIAL CORP, 10-Q filed on 07 Aug 24
 | XBRL Documents
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Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2024
Aug. 06, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2024  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Registrant Name MEDALLION FINANCIAL CORP  
Entity Central Index Key 0001000209  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   23,168,761
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 $0.01 per share  
Trading Symbol MFIN  
Security Exchange Name NASDAQ  
v3.24.2.u1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Assets    
Cash and cash equivalents $ 87,719 $ 52,591
Federal funds sold 70,242 97,254
Investment securities 55,830 54,282
Equity investments 10,795 11,430
Loans 2,385,590 2,215,886
Allowance for credit losses (89,788) [1] (84,235) [2]
Net loans receivable 2,295,802 2,131,651
Goodwill 150,803 150,803
Intangible assets, net 19,869 20,591
Property, equipment, and right-of-use lease asset, net 14,094 14,076
Accrued interest receivable 13,299 13,538
Loan collateral in process of foreclosure [3] 9,359 11,772
Income tax receivable 3,290 671
Other assets 29,774 29,168
Total assets 2,760,876 2,587,827
Liabilities    
Deposits [4] 2,006,782 1,866,657
Long-term debt [5] 230,803 235,544
Short-term borrowings 37,500 8,000
Deferred tax liabilities, net 22,394 21,207
Operating lease liabilities 6,071 7,019
Accrued interest payable 7,945 6,822
Accounts payable and accrued expenses [6] 26,592 30,804
Total liabilities 2,338,087 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 - 29,262,204 shares at June 30, 2024 and 29,051,800 shares at December 31, 2023 issued) 293 291
Additional paid in capital 290,298 288,046
Treasury stock (6,050,214 shares at June 30, 2024 and 5,602,154 at December 31, 2023) (49,179) (45,538)
Accumulated other comprehensive loss (3,744) (3,696)
Retained earnings 116,333 103,883
Total stockholders’ equity 354,001 342,986
Non-controlling interest in consolidated subsidiaries 68,788 68,788
Total equity 422,789 411,774
Total liabilities and equity $ 2,760,876 $ 2,587,827
Number of shares outstanding 23,211,990 23,449,646
Book value per share $ 15.25 $ 14.63
[1] As of June 30, 2024 and June 30, 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 $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.
[4] Includes $4.6 million and $4.3 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.
[5] Includes $4.0 million and $4.2 million of deferred financing costs as of June 30, 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 $2.5 million as of June 30, 2024 and December 31, 2023. Refer to Note 6 for more details.
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Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 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 29,262,204 29,051,800
Treasury stock,shares 6,050,214 5,602,154
Loan collateral in process of foreclosure, financed sales collateral to third parties $ 5.3 $ 6.2
Short term lease liabilities 2.3 2.5
Deposits [Member]    
Deferred financing costs 4.6 4.3
Long-Term Debt [Member]    
Deferred financing costs $ 4.0 $ 4.2
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Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Interest and fees on loans $ 68,861 $ 59,630 $ 134,082 $ 114,799
Interest and dividends on investment securities 1,843 2,096 3,692 2,769
Total interest income [1] 70,704 61,726 137,774 117,568
Interest on deposits 16,523 11,329 31,275 19,928
Interest on long-term debt 4,182 2,940 8,437 5,793
Interest on short-term borrowings 131 766 277 1,554
Total interest expense 20,836 15,035 39,989 27,275
Net interest income (loss) 49,868 46,691 97,785 90,293
Provision for credit losses 18,577 8,476 35,778 12,514
Net interest income after provision for credit losses 31,291 38,215 62,007 77,779
Other income (loss)        
Gain (loss) on equity investments (512) 99 3,655 9
Gain on sale of loans and taxi medallions 242 1,306 830 3,161
Write-down of loan collateral in process of foreclosure 0 (21) 0 (273)
Other income 1,369 558 2,017 1,128
Total other income, net 1,099 1,942 6,502 4,025
Other expenses        
Salaries and employee benefits 9,435 9,339 18,892 18,175
Loan servicing fees 2,692 2,361 5,162 4,583
Collection costs 1,659 1,608 3,126 3,146
Regulatory fees 888 781 1,865 1,463
Professional fees 1,845 1,368 2,616 3,075
Rent expense 698 603 1,355 1,226
Amortization of intangible assets 362 363 723 723
Other expenses 2,416 2,580 4,481 5,004
Total other expenses 19,995 19,003 38,220 37,395
Income before income taxes 12,395 21,154 30,289 44,409
Income tax provision 3,782 5,472 10,140 11,854
Net income after taxes 8,613 15,682 20,149 32,555
Less: income attributable to the non-controlling interest 1,512 1,512 3,024 3,024
Total net income attributable to Medallion Financial Corp. $ 7,101 $ 14,170 $ 17,125 $ 29,531
Basic net income per share $ 0.31 $ 0.63 $ 0.76 $ 1.32
Diluted net income per share $ 0.3 $ 0.62 $ 0.73 $ 1.29
Weighted average common shares outstanding        
Basic 22,598,102 22,488,463 22,619,743 22,416,089
Diluted 23,453,162 22,853,927 23,609,104 22,915,094
[1] Included in interest income is $0.7 million and $1.3 million of paid-in-kind interest for the three and six months ended June 30, 2024 and $0.4 million and $0.6 million for the three and six months ended June 30, 2023.
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Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Interest paid in kind $ 0.7 $ 0.4 $ 1.3 $ 0.6
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Consolidated Statements of Other Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net income $ 8,613 $ 15,682 $ 20,149 $ 32,555
Other comprehensive income (loss), net of tax 102 (906) (48) (400)
Total comprehensive income 8,715 14,776 20,101 32,155
Less comprehensive income attributable to the non-controlling interest 1,512 1,512 3,024 3,024
Total comprehensive income attributable to Medallion Financial Corp. $ 7,203 $ 13,264 $ 17,077 $ 29,131
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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)        
Net income 32,555                              
Ending balance at Jun. 30, 2023 387,764 $ 289 285,435 $ (45,538) 82,539 (3,749) 318,976 68,788                
Ending balance, shares at Jun. 30, 2023   28,947,171   (5,602,154)                        
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)                        
Balance at Mar. 31, 2023 $ 375,153 $ 289 284,221 $ (45,538) 70,236 (2,843) 306,365 68,788                
Balance, shares at Mar. 31, 2023   28,912,147   (5,602,154)                        
Net income 15,682       14,170   14,170 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 1,214   1,214       1,214                  
Issuance of restricted stock, net, shares   11,734                            
Forfeiture of restricted stock, net, shares   (204)                            
Issuance in connection with vesting of restricted stock unit, Shares   23,211                            
Exercise of stock options, shares   283                            
Dividends paid on common stock (1,867)       (1,867)   (1,867)                  
Net change in unrealized gains on investments, net of tax (906)         (906) (906)                  
Ending balance at Jun. 30, 2023 387,764 $ 289 285,435 $ (45,538) 82,539 (3,749) 318,976 68,788                
Ending balance, shares at Jun. 30, 2023   28,947,171   (5,602,154)                        
Balance at Dec. 31, 2023 $ 411,774 $ 291 288,046 $ (45,538) 103,883 (3,696) 342,986 68,788                
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   29,243,878   (5,866,314)                        
Balance at Dec. 31, 2023 $ 411,774 $ 291 288,046 $ (45,538) 103,883 (3,696) 342,986 68,788                
Balance, shares at Dec. 31, 2023 23,449,646 29,051,800   (5,602,154)                        
Net income $ 20,149                              
Ending balance at Jun. 30, 2024 $ 422,789 $ 293 290,298 $ (49,179) 116,333 (3,744) 354,001 68,788                
Ending balance, shares at Jun. 30, 2024 23,211,990 29,262,204   (6,050,214)                        
Balance at Mar. 31, 2024 $ 417,824 $ 292 288,685 $ (47,664) 111,569 (3,846) 349,036 68,788                
Balance, shares at Mar. 31, 2024   29,243,878   (5,866,314)                        
Net income 8,613       7,101   7,101 1,512                
Distributions to non-controlling interest (1,512)             (1,512)                
Stock-based compensation expense 1,596 $ 1 1,595       1,596                  
Forfeiture of restricted stock, net, shares   (1,696)                            
Issuance in connection with vesting of restricted stock unit, Shares   17,155                            
Exercise of stock options, value $ 18   18       18                  
Exercise of stock options, shares 2,867 [1] 2,867                            
Purchase of common stock (in Shares)       (183,900)                        
Purchase of common stock $ (1,515)     $ (1,515)     (1,515)                  
Dividends paid on common stock (2,337)       (2,337)   (2,337)                  
Net change in unrealized gains on investments, net of tax 102         102 102                  
Ending balance at Jun. 30, 2024 $ 422,789 $ 293 $ 290,298 $ (49,179) $ 116,333 $ (3,744) $ 354,001 $ 68,788                
Ending balance, shares at Jun. 30, 2024 23,211,990 29,262,204   (6,050,214)                        
[1] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.
v3.24.2.u1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]        
Dividends payable, amount per share $ 0.1 $ 0.1 $ 0.08 $ 0.08
v3.24.2.u1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income resulting from operations $ 20,149 $ 32,555
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:    
Provision for credit losses 35,778 12,514
Paid-in-kind interest income (1,263) (644)
Depreciation and amortization 2,717 2,538
Amortization of origination fees, net 4,298 4,667
(Decrease) increase in deferred and other tax liabilities, net (1,432) 3,164
Net change in value of loan collateral in process of foreclosure 6,642 4,362
Net (gains) loss on investments (3,655) 99
Stock-based compensation expense 3,092 2,250
Decrease (increase) in accrued interest receivable 239 (732)
Increase in other assets (2,684) (10,989)
(Decrease) increase in accounts payable and accrued expenses (5,104) 8,841
Increase (decrease) in accrued interest payable 1,123 (341)
Net cash provided by operating activities 59,900 58,284
CASH FLOWS FROM INVESTING ACTIVITIES    
Loans originated (491,072) (583,669)
Proceeds from principal receipts, sales, maturities, and recoveries of loans 277,014 313,847
Purchases of investments (6,059) (8,224)
Proceeds from principal receipts, sales, and maturities of investments 8,735 1,400
Proceeds from the sale and principal payments on loan collateral in process of foreclosure 6,865 11,308
Net cash used for investing activities (204,517) (265,338)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from time deposits and funds borrowed 558,266 513,795
Repayments of time deposits and funds borrowed (393,299) (280,622)
Cash dividend paid on common stock (4,731) (3,663)
Distributions to non-controlling interests (3,024) (3,024)
Payment of withholding taxes on net settlement of vested stock (944) (768)
Treasury stock repurchased (3,641) 0
Proceeds from the exercise of stock options 106 292
Net cash provided by financing activities 152,733 226,010
NET INCREASE IN CASH AND CASH EQUIVALENTS 8,116 18,956
Cash, and cash equivalents beginning of period [1] 149,845 105,598
Cash and cash equivalents, end of period (1) [1] 157,961 124,554
SUPPLEMENTAL INFORMATION    
Cash paid during the period for interest 37,076 25,999
Cash paid during the period for income taxes 10,745 8,662
NON-CASH INVESTING    
Loans transferred to loan collateral in process of foreclosure, net $ 11,094 $ 10,654
[1] Includes federal funds sold.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 7,101 $ 14,170 $ 17,125 $ 29,531
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 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
v3.24.2.u1
Organization of Medallion Financial Corp. and its Subsidiaries
 6 Months Ended
Jun. 30, 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 June 30, 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.
v3.24.2.u1
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 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 June 30, 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 $10.8 million and $11.4 million at June 30, 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. During the first quarter of 2024, $4.7 million of unrealized appreciation was recorded with respect to a single equity investment, which was realized in the quarter ended June 30, 2024, with the unrealized appreciation being realized. As of June 30, 2024, cumulative impairment of $4.3 million had been recorded with respect to these investments.

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

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net losses recognized during the period on equity securities

 

$

(7

)

 

$

(28

)

 

$

(26

)

 

$

—

 

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(7

)

 

$

(28

)

 

$

(26

)

 

$

—

 

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at both June 30, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 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 June 30, 2024 and December 31, 2023, net loan origination costs were $44.6 million and $40.0 million. Net amortization to income was $2.3 million and $4.3 million for the three and six months ended June 30, 2024 and was $2.4 million and $4.3 million for the three and six months ended June 30, 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 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 nonperforming. 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 $15.6 million at June 30, 2024, or 0.67% 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 in the event that the borrowers file for bankruptcy, regardless of the loans aging.

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 nonperforming 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, or ASC, 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 June 30, 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 June 30, 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 June 30, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $19.9 million and $20.6 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2024 and 2023 was $0.4 million and $0.7 million. Management performed a qualitative assessment of 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)

 

June 30, 2024

 

 

December 31, 2023

 

Brand-related intellectual property

 

$

15,125

 

 

$

15,675

 

Home improvement contractor relationships

 

 

4,744

 

 

 

4,916

 

Total intangible assets

 

$

19,869

 

 

$

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 and $0.2 million for the three and six months ended June 30, 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, included as Interest expense in the Consolidated Statements of Operations, was $0.9 million and $1.8 million for the three and six months ended June 30, 2024 and was $0.8 million and $1.5 million for the three and six months ended June 30, 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 $8.6 million and $8.5 million as of June 30, 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 June 30,

 

 

Six Months Ended June 30,

 

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

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income attributable to common stockholders

 

$

7,101

 

 

$

14,170

 

 

$

17,125

 

 

$

29,531

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,598,102

 

 

 

22,488,463

 

 

 

22,619,743

 

 

 

22,416,089

 

Effect of restricted stock grants

 

 

404,499

 

 

 

276,420

 

 

 

507,416

 

 

 

379,924

 

Effect of dilutive stock options

 

 

163,340

 

 

 

43,567

 

 

 

209,067

 

 

 

96,342

 

Effect of performance stock unit grants

 

 

287,221

 

 

 

45,477

 

 

 

272,878

 

 

 

22,739

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,453,162

 

 

 

22,853,927

 

 

 

23,609,104

 

 

 

22,915,094

 

Basic net income per share

 

$

0.31

 

 

$

0.63

 

 

$

0.76

 

 

$

1.32

 

Diluted net income per share

 

 

0.30

 

 

 

0.62

 

 

 

0.73

 

 

 

1.29

 

Potentially dilutive common shares excluded from the above calculations aggregated 101,350 and 644,478 shares as of June 30, 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 six months ended June 30, 2024 and 2023, the Company issued 296,178 and 316,483 restricted shares of stock-based compensation awards, 215,687 and 296,444 performance stock units, and 92,350 and 0 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.6 million and $3.1 million, or $0.07 and $0.13 per share for the three and six months ended June 30, 2024, and $1.2 million, and $2.2 million or $0.05 and $0.10 per share per common share for the three and six months ended June 30, 2023, of non-cash stock-based compensation expense related to the grants. As of June 30, 2024, the total remaining unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units was $8.4 million, which is expected to be recognized over the next 11 quarters.

 

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2024, the Bank’s Tier 1 leverage ratio was 16.1%. The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

June 30, 2024

 

 

December 31, 2023

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

306,186

 

 

$

293,774

 

Tier 1 capital

 

 

 

 

 

 

 

 

374,974

 

 

 

362,561

 

Total capital

 

 

 

 

 

 

 

 

404,742

 

 

 

390,153

 

Average assets

 

 

 

 

 

 

 

 

2,322,625

 

 

 

2,232,816

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,326,972

 

 

 

2,155,641

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.1

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.2

 

 

 

13.6

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.1

 

 

 

16.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.4

 

 

 

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 June 30, 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 June 30, 2024 and December 31, 2023.

Recently Issued and Adopted Accounting Standards

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 amendments in this update will be effective on the date on which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, with early adoption prohibited.

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 and to be included in interim periods beginning after December 15, 2024. 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.
v3.24.2.u1
Investment Securities
 6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of June 30, 2024 and December 31, 2023:

June 30, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

43,255

 

 

$

2

 

 

$

(4,763

)

 

$

38,494

 

State and municipalities

 

 

16,751

 

 

 

52

 

 

 

(1,620

)

 

 

15,183

 

Agency bonds

 

 

2,183

 

 

 

—

 

 

 

(30

)

 

 

2,153

 

Total

 

$

62,189

 

 

$

54

 

 

$

(6,413

)

 

$

55,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30, 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.

June 30, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

2,039

 

 

$

1,996

 

Due after one year through five years

 

 

5,820

 

 

 

5,608

 

Due after five years through ten years

 

 

8,380

 

 

 

7,370

 

Due after ten years

 

 

45,950

 

 

 

40,856

 

Total

 

$

62,189

 

 

$

55,830

 

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

 

June 30, 2024
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(30

)

 

$

1,988

 

 

$

(4,733

)

 

$

36,024

 

State and municipalities

 

 

(70

)

 

 

3,130

 

 

 

(1,550

)

 

 

10,005

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(30

)

 

 

2,153

 

Total

 

$

(100

)

 

$

5,118

 

 

$

(6,313

)

 

$

48,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30, 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. The Company does not intend to sell its investment securities that are in an unrealized loss position and believes that it is unlikely that it will be required to sell these securities before recovery of the amortized cost.
v3.24.2.u1
Loans and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

 

 

June 30, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,497,428

 

 

 

63

%

 

$

1,336,226

 

 

 

60

%

Home improvement

 

 

773,184

 

 

 

32

 

 

 

760,617

 

 

 

34

 

Commercial

 

 

110,197

 

 

 

5

 

 

 

114,827

 

 

 

5

 

Taxi medallion

 

 

3,482

 

 

*

 

 

 

3,663

 

 

*

 

Strategic partnership

 

 

1,299

 

 

*

 

 

 

553

 

 

*

 

Total gross loans

 

 

2,385,590

 

 

 

100

%

 

 

2,215,886

 

 

 

100

%

Allowance for credit losses

 

 

(89,788

)

 

 

 

 

 

(84,235

)

 

 

 

Total net loans

 

$

2,295,802

 

 

 

 

 

$

2,131,651

 

 

 

 

(*) Less than 1%.

The following tables show the activity of the gross loans for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2024

 

$

1,365,165

 

 

$

752,262

 

 

$

106,570

 

 

$

3,560

 

 

$

869

 

 

$

2,228,426

 

Loan originations

 

 

209,563

 

 

 

67,990

 

 

 

7,000

 

 

 

250

 

 

 

24,288

 

 

 

309,091

 

Principal receipts, sales, and maturities

 

 

(61,553

)

 

 

(42,492

)

 

 

(3,961

)

 

 

(328

)

 

 

(23,858

)

 

 

(132,192

)

Charge-offs

 

 

(14,627

)

 

 

(4,063

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18,690

)

Transfer to loan collateral in process of foreclosure, net

 

 

(5,669

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,669

)

Amortization of origination fees, net

 

 

(3,214

)

 

 

913

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

(2,291

)

Origination costs, net

 

 

7,763

 

 

 

(1,426

)

 

 

(77

)

 

 

—

 

 

 

—

 

 

 

6,260

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

655

 

 

 

—

 

 

 

—

 

 

 

655

 

Gross loans – June 30, 2024

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2023

 

$

1,336,226

 

 

$

760,617

 

 

$

114,827

 

 

$

3,663

 

 

$

553

 

 

$

2,215,886

 

Loan originations

 

 

315,328

 

 

 

119,566

 

 

 

7,000

 

 

 

250

 

 

 

40,034

 

 

 

482,178

 

Principal receipts, sales, and maturities

 

 

(115,589

)

 

 

(97,409

)

 

 

(12,833

)

 

 

(431

)

 

 

(39,288

)

 

 

(265,550

)

Charge-offs

 

 

(32,728

)

 

 

(8,961

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(41,689

)

Transfer to loan collateral in process of foreclosure, net

 

 

(11,094

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,094

)

Amortization of origination fees, net

 

 

(6,166

)

 

 

1,851

 

 

 

17

 

 

 

—

 

 

 

—

 

 

 

(4,298

)

Origination costs, net

 

 

11,451

 

 

 

(2,480

)

 

 

(77

)

 

 

—

 

 

 

—

 

 

 

8,894

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,263

 

 

 

—

 

 

 

—

 

 

 

1,263

 

Gross loans – June 30, 2024

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2023

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

Loan originations

 

 

190,007

 

 

 

117,035

 

 

 

4,750

 

 

 

1,300

 

 

 

33,174

 

 

 

346,266

 

Principal receipts, sales, and maturities

 

 

(63,463

)

 

 

(55,350

)

 

 

(6,922

)

 

 

(1,531

)

 

 

(33,613

)

 

 

(160,879

)

Charge-offs

 

 

(9,166

)

 

 

(2,575

)

 

 

(900

)

 

 

(221

)

 

 

—

 

 

 

(12,862

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,991

)

 

 

—

 

 

 

—

 

 

 

(159

)

 

 

—

 

 

 

(4,150

)

Amortization of origination fees, net

 

 

(3,159

)

 

 

665

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,494

)

Origination costs, net

 

 

7,506

 

 

 

(949

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,557

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

380

 

 

 

—

 

 

 

—

 

 

 

380

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

Loan originations

 

 

291,688

 

 

 

212,016

 

 

 

7,750

 

 

 

1,923

 

 

 

60,180

 

 

 

573,557

 

Principal receipts, sales, and maturities

 

 

(119,680

)

 

 

(105,205

)

 

 

(7,756

)

 

 

(5,926

)

 

 

(59,421

)

 

 

(297,988

)

Charge-offs

 

 

(21,756

)

 

 

(4,489

)

 

 

(900

)

 

 

(3,814

)

 

 

—

 

 

 

(30,959

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,348

)

 

 

—

 

 

 

—

 

 

 

(2,306

)

 

 

—

 

 

 

(10,654

)

Amortization of origination fees, net

 

 

(5,918

)

 

 

1,251

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,667

)

Origination costs, net

 

 

11,616

 

 

 

(1,504

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,112

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

644

 

 

 

—

 

 

 

—

 

 

 

644

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Allowance for credit losses – beginning balance (1)

 

$

83,827

 

 

$

70,280

 

 

$

84,235

 

 

$

63,845

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,712

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(14,627

)

 

 

(9,166

)

 

 

(32,728

)

 

 

(21,756

)

Home improvement

 

 

(4,063

)

 

 

(2,575

)

 

 

(8,961

)

 

 

(4,489

)

Commercial

 

 

—

 

 

 

(900

)

 

 

—

 

 

 

(900

)

Taxi medallion

 

 

—

 

 

 

(221

)

 

 

—

 

 

 

(3,814

)

Total charge-offs

 

 

(18,690

)

 

 

(12,862

)

 

 

(41,689

)

 

 

(30,959

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

3,962

 

 

 

3,282

 

 

 

7,510

 

 

 

6,053

 

Home improvement

 

 

1,243

 

 

 

627

 

 

 

2,154

 

 

 

1,259

 

Commercial

 

 

—

 

 

 

—

 

 

 

20

 

 

 

10

 

Taxi medallion

 

 

869

 

 

 

5,168

 

 

 

1,780

 

 

 

8,537

 

Total recoveries

 

 

6,074

 

 

 

9,077

 

 

 

11,464

 

 

 

15,859

 

Net charge-offs (2)

 

 

(12,616

)

 

 

(3,785

)

 

 

(30,225

)

 

 

(15,100

)

Provision for credit losses

 

 

18,577

 

 

 

8,476

 

 

 

35,778

 

 

 

12,514

 

Allowance for credit losses – ending balance (3)

 

$

89,788

 

 

$

74,971

 

 

$

89,788

 

 

$

74,971

 
(1)
2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
(2)
As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
(3)
As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2024, by the year of origination:

Three Months Ended June 30, 2024
(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Recreation

 

$

99

 

 

$

4,099

 

 

$

5,049

 

 

$

1,990

 

 

$

986

 

 

$

2,404

 

 

$

14,627

 

Home improvement

 

 

40

 

 

 

1,508

 

 

 

1,594

 

 

 

507

 

 

 

119

 

 

 

295

 

 

 

4,063

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

139

 

 

$

5,607

 

 

$

6,643

 

 

$

2,497

 

 

$

1,105

 

 

$

2,699

 

 

$

18,690

 

 

Six Months Ended June 30, 2024
(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Recreation

 

$

99

 

 

$

7,862

 

 

$

11,867

 

 

$

5,487

 

 

$

2,275

 

 

$

5,138

 

 

$

32,728

 

Home improvement

 

 

40

 

 

 

3,032

 

 

 

3,274

 

 

 

1,670

 

 

 

406

 

 

 

539

 

 

 

8,961

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

139

 

 

$

10,894

 

 

$

15,141

 

 

$

7,157

 

 

$

2,681

 

 

$

5,677

 

 

$

41,689

 

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2023, by the year of origination:

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

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

3,568

 

 

$

2,344

 

 

$

785

 

 

$

918

 

 

$

1,507

 

 

$

9,166

 

Home improvement

 

 

39

 

 

 

1,548

 

 

 

473

 

 

 

158

 

 

 

91

 

 

 

266

 

 

 

2,575

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

221

 

 

 

221

 

Total

 

$

83

 

 

$

5,116

 

 

$

2,817

 

 

$

943

 

 

$

1,909

 

 

$

1,994

 

 

$

12,862

 

 

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

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

7,176

 

 

$

5,414

 

 

$

2,456

 

 

$

2,472

 

 

$

4,194

 

 

$

21,756

 

Home improvement

 

 

39

 

 

 

2,452

 

 

 

1,101

 

 

 

301

 

 

 

222

 

 

 

374

 

 

 

4,489

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,814

 

 

 

3,814

 

Total

 

$

83

 

 

$

9,628

 

 

$

6,515

 

 

$

2,757

 

 

$

3,594

 

 

$

8,382

 

 

$

30,959

 

 

The following tables set forth the allowance for credit losses by type as of June 30, 2024 and December 31, 2023.

June 30, 2024
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

65,140

 

 

 

73

%

 

 

4.35

%

 

 

292.79

%

Home improvement

 

 

18,388

 

 

 

20

 

 

 

2.38

 

 

 

82.65

 

Commercial

 

 

4,861

 

 

 

5

 

 

 

4.41

 

 

 

21.85

 

Taxi medallion

 

 

1,399

 

 

 

2

 

 

 

40.18

 

 

 

6.29

 

Total

 

$

89,788

 

 

 

100

%

 

 

3.76

%

 

 

403.58

%

 

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

(Dollars in thousands)

 

June 30, 2024

 

 

December 31, 2023

 

Total nonaccrual loans

 

$

22,248

 

 

$

25,974

 

Interest foregone quarter to date

 

 

464

 

 

 

417

 

Amount of foregone interest applied to principal in the quarter

 

 

72

 

 

 

59

 

Interest foregone year to date

 

 

662

 

 

 

928

 

Amount of foregone interest applied to principal for the year

 

 

133

 

 

 

238

 

Interest foregone life-to-date

 

 

3,162

 

 

 

2,119

 

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

 

 

814

 

 

 

822

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

0.9

%

 

 

1.2

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

403.6

%

 

 

324.3

%

The following tables present the performance status of loans as of June 30, 2024 and December 31, 2023.

June 30, 2024
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,490,965

 

 

$

6,463

 

 

$

1,497,428

 

 

 

0.43

%

Home improvement

 

 

771,881

 

 

 

1,303

 

 

 

773,184

 

 

 

0.17

 

Commercial

 

 

99,197

 

 

 

11,000

 

 

 

110,197

 

 

 

9.98

 

Taxi medallion

 

 

—

 

 

 

3,482

 

 

 

3,482

 

 

 

100.00

 

Strategic partnership

 

 

1,299

 

 

 

—

 

 

 

1,299

 

 

 

—

 

Total

 

$

2,363,342

 

 

$

22,248

 

 

$

2,385,590

 

 

 

0.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 show the aging of all loans as of June 30, 2024 and December 31, 2023.

June 30, 2024

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

35,094

 

 

$

13,278

 

 

$

5,938

 

 

$

54,310

 

 

$

1,394,199

 

 

$

1,448,509

 

 

$

—

 

Home improvement

 

 

3,637

 

 

 

1,993

 

 

 

1,305

 

 

 

6,935

 

 

 

770,331

 

 

 

777,266

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

8,396

 

 

 

8,396

 

 

 

102,016

 

 

 

110,412

 

 

 

—

 

Taxi medallion

 

 

73

 

 

 

—

 

 

 

—

 

 

 

73

 

 

 

3,409

 

 

 

3,482

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,299

 

 

 

1,299

 

 

 

—

 

Total

 

$

38,804

 

 

$

15,271

 

 

$

15,639

 

 

$

69,714

 

 

$

2,271,254

 

 

$

2,340,968

 

 

$

—

 
(1)
Excludes $44.6 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 174% and 183% as of June 30, 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 and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024
(Dollars in thousands)

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2024

 

$

1,475

 

 

$

8,723

 

 

$

10,198

 

Transfer from loans, net

 

 

5,669

 

 

 

—

 

 

 

5,669

 

Sales

 

 

—

 

 

 

—

 

 

 

—

 

Cash payments received

 

 

(2,225

)

 

 

(881

)

 

 

(3,106

)

Collateral valuation adjustments

 

 

(3,478

)

 

 

76

 

 

 

(3,402

)

Loan collateral in process of foreclosure – June 30, 2024

 

$

1,441

 

 

$

7,918

 

 

$

9,359

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 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

 

 

11,094

 

 

 

—

 

 

 

11,094

 

Sales

 

 

—

 

 

 

(39

)

 

 

(39

)

Cash payments received

 

 

(4,672

)

 

 

(2,154

)

 

 

(6,826

)

Collateral valuation adjustments

 

 

(6,760

)

 

 

118

 

 

 

(6,642

)

Loan collateral in process of foreclosure – June 30, 2024

 

$

1,441

 

 

$

7,918

 

 

$

9,359

 

 

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

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2023

 

$

1,461

 

 

$

19,006

 

 

$

20,467

 

Transfer from loans, net

 

 

3,991

 

 

 

159

 

 

 

4,150

 

Sales

 

 

(2,583

)

 

 

(553

)

 

 

(3,136

)

Cash payments received

 

 

(128

)

 

 

(2,517

)

 

 

(2,645

)

Collateral valuation adjustments

 

 

(2,012

)

 

 

(21

)

 

 

(2,033

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 

Transfer from loans, net

 

 

8,348

 

 

 

2,306

 

 

 

10,654

 

Sales

 

 

(4,778

)

 

 

(568

)

 

 

(5,346

)

Cash payments received

 

 

(128

)

 

 

(5,834

)

 

 

(5,962

)

Collateral valuation adjustments

 

 

(4,089

)

 

 

(273

)

 

 

(4,362

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

As of June 30, 2024, taxi medallion loans in the process of foreclosure included 326 taxi medallions in the New York City market, 188 taxi medallions in the Chicago market, 23 taxi medallions in the Newark market, and 31 taxi medallions in various other markets.
v3.24.2.u1
Funds Borrowed
 6 Months Ended
Jun. 30, 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 June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

 

June 30, 2024 (1)

 

 

December 31, 2023(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

867,211

 

 

$

391,277

 

 

$

433,022

 

 

$

118,517

 

 

$

199,629

 

 

$

—

 

 

$

2,009,656

 

 

$

1,869,439

 

 

 

3.50

%

Retail and privately placed notes

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

39,000

 

 

 

17,500

 

 

 

141,500

 

 

 

139,500

 

 

 

8.10

 

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

 

 

 

7.73

 

Federal reserve and other borrowings

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,000

 

 

 

—

 

 

 

5.50

 

Total

 

$

904,711

 

 

$

438,027

 

 

$

437,522

 

 

$

172,267

 

 

$

241,129

 

 

$

88,250

 

 

$

2,281,906

 

 

$

2,117,189

 

 

 

3.87

%
(1)
Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.
(2)
Weighted average contractual rate as of June 30, 2024.
(3)
Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 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 June 30, 2024 and December 31, 2023, the Bank had $16.1 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 June 30, 2024 and December 31, 2023, the Bank had $10.9 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 June 30, 2024.

(Dollars in thousands)

 

June 30, 2024

 

Three months or less

 

$

237,363

 

Over three months through six months

 

 

151,130

 

Over six months through one year

 

 

478,718

 

Over one year

 

 

1,142,445

 

Deposits

 

 

2,009,656

 

 Strategic partner collateral deposits

 

 

1,750

 

Total deposits

 

$

2,011,406

 

(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 June 30, 2024, the Bank had $99.2 million in home improvement loans pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is approximately 40% of book value, for a total of approximately $40.1 million in secured borrowing capacity, of which $25 million was utilized as of June 30, 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 June 30, 2024, there were no outstanding amounts with respect to these arrangements.

(C) PRIVATELY PLACED NOTES

In June 2024, the Company amended the notes previously issued in a private placement to certain institutional investors in December 2023, increasing the principal amount from $12.5 million to $17.5 million, reducing the interest rate to 8.875% from 9.0%, and extending the maturity date from December 2033 to June 2039. The Company used, and intends to use, 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 described below.

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 June 30, 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 June 30, 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. 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 June 30, 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 June 30, 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 June 30, 2024, the Company was in compliance with all such covenants.
v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases

(6) LEASES

The Company has leased premises that expire at various dates through February 28, 2031 subject to various operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances.

The following table presents the operating lease costs and additional information for the three and six months ended June 30, 2024 and 2023.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating lease costs

 

$

607

 

 

$

597

 

 

$

1,210

 

 

$

1,195

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

698

 

 

 

603

 

 

 

1,355

 

 

 

1,226

 

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

 

 

(58

)

 

 

(56

)

 

 

(118

)

 

 

(111

)

The following table presents the breakout of the operating leases as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)

 

June 30, 2024

 

 

December 31, 2023

 

Operating lease right-of-use assets

 

$

7,728

 

 

$

8,785

 

Other current liabilities

 

 

2,267

 

 

 

2,472

 

Operating lease liabilities

 

 

6,071

 

 

 

7,019

 

Total operating lease liabilities

 

 

8,338

 

 

 

9,491

 

Weighted average remaining lease term

 

4.5 years

 

 

4.9 years

 

Weighted average discount rate

 

 

5.56

%

 

 

5.47

%

At June 30, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2024

 

$

1,268

 

2025

 

 

2,546

 

2026

 

 

2,567

 

2027

 

 

1,342

 

2028

 

 

573

 

Thereafter

 

 

1,139

 

Total lease payments

 

 

9,435

 

Less imputed interest

 

 

1,097

 

Total operating lease liabilities

 

$

8,338

 
v3.24.2.u1
Income Taxes
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

(Dollars in thousands)

 

June 30, 2024

 

 

December 31, 2023

 

Goodwill and other intangibles

 

$

42,853

 

 

$

43,034

 

Provision for credit losses

 

 

(12,844

)

 

 

(13,032

)

Net operating loss carryforwards (1)

 

 

(3,804

)

 

 

(3,802

)

Accrued expenses, compensation, and other assets

 

 

(5,433

)

 

 

(6,976

)

Unrealized losses on other investments

 

 

(1,971

)

 

 

(1,877

)

Total deferred tax liability

 

 

18,801

 

 

 

17,347

 

Valuation allowance

 

 

3,593

 

 

 

3,860

 

Deferred tax liability, net

 

$

22,394

 

 

$

21,207

 
(1)
As of June 30, 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 June 30, 2024.

 

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2024 and 2023:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

4,792

 

 

$

3,873

 

 

$

6,521

 

 

$

6,456

 

State

 

 

1,476

 

 

 

1,175

 

 

 

2,119

 

 

 

1,964

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(1,916

)

 

 

204

 

 

 

1,200

 

 

 

2,450

 

State

 

 

(570

)

 

 

220

 

 

 

300

 

 

 

984

 

Net provision for income taxes

 

$

3,782

 

 

$

5,472

 

 

$

10,140

 

 

$

11,854

 

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2024 and 2023.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Statutory Federal income tax provision at 21%

 

$

2,603

 

 

$

4,442

 

 

$

6,361

 

 

$

9,326

 

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

 

 

509

 

 

 

869

 

 

 

1,244

 

 

 

1,824

 

Non-deductible expenses

 

 

374

 

 

 

19

 

 

 

2,154

 

 

 

1,076

 

Other

 

 

296

 

 

 

142

 

 

 

381

 

 

 

(372

)

Total income tax provision

 

$

3,782

 

 

$

5,472

 

 

$

10,140

 

 

$

11,854

 

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of June 30, 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.
v3.24.2.u1
Stock Options and Restricted Stock
 6 Months Ended
Jun. 30, 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 1,379,328 remained issuable as of June 30, 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 June 30, 2024, 943,041 options on the Company’s common stock were outstanding under the Company’s plans, of which 854,742 options were vested. Additionally, as of June 30, 2024, there were 887,665 unvested shares of restricted stock, 512,131 unvested performance stock units, 92,350 unvested restricted stock units, and 234,330 vested restricted stock units under the 2018 Plan.

The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during the six months ended June 30, 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 restricted stock programs for the first and second quarter of 2024 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(1,696

)

 

 

4.89 - 9.37

 

 

 

7.88

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2024 (2)

 

 

887,665

 

 

$

4.89 - 9.37

 

 

$

8.18

 
(1)
The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023.
(2)
The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.

During the three and six months ended June 30, 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.

 

The following table presents the activity for the stock option programs for the first and second quarter of 2024 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(146

)

 

 

 

4.89

 

 

 

4.89

 

Exercised (1)

 

 

(2,867

)

 

 

4.89 - 7.25

 

 

 

6.14

 

Outstanding at June 30, 2024 (2)

 

 

943,041

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

697,647

 

 

 

2.14 - 9.38

 

 

$

6.51

 

June 30, 2024 (2)

 

 

854,742

 

 

$

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 and six months ended June 30, 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 June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024.

The following table presents the activity for the unvested options outstanding under the plans described above for the 2024 first and second 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 (1)

 

 

(173,430

)

 

 

4.89 - 7.25

 

 

 

6.56

 

Outstanding at March 31, 2024

 

 

88,445

 

 

$

4.89 - 6.79

 

 

$

6.37

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(146

)

 

 

 

4.89

 

 

 

4.89

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2024

 

 

88,299

 

 

$

4.89 - 6.79

 

 

$

6.37

 
(1)
The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024.

During the three and six months ended June 30, 2024, the Company granted 92,350 restricted stock units, or RSUs, with a vesting date of June 11, 2025 at a grant price of $8.23 and during the year ended December 31, 2023, granted 83,158 RSUs which vested on June 22, 2024 at a grant price of $9.14. For the RSUs granted in 2024 and 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 June 30, 2024, there were 326,680 RSUs outstanding, including 234,330 which had previously vested.
v3.24.2.u1
Segment Reporting
 6 Months Ended
Jun. 30, 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%, 21%, and 11% of the segment portfolio, with no other product lines equal to or exceeding 10%, as of June 30, 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 June 30, 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%, 21%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of June 30, 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 June 30, 2024. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, construction, and wholesale trade making up 55%, 14%, and 11% of the loans outstanding as of June 30, 2024, with no other product lines exceeding 10% as of June 30, 2024. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and Texas each having 30%, 10%, and 10% of the segment portfolio, and no other states having a concentration at or greater than 10% as of June 30, 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 June 30, 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 tables present segment data as of and for the three and six months ended June 30, 2024.

Three Months Ended June 30, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

47,490

 

 

$

17,651

 

 

$

3,538

 

 

$

190

 

 

$

1,835

 

 

$

70,704

 

Total interest expense

 

 

10,960

 

 

 

6,106

 

 

 

1,056

 

 

 

25

 

 

 

2,689

 

 

 

20,836

 

Net interest income (loss)

 

 

36,530

 

 

 

11,545

 

 

 

2,482

 

 

 

165

 

 

 

(854

)

 

 

49,868

 

Provision (benefit) for credit losses

 

 

15,795

 

 

 

3,279

 

 

 

478

 

 

 

(975

)

 

 

—

 

 

 

18,577

 

Net interest income (loss) after loss provision

 

 

20,735

 

 

 

8,266

 

 

 

2,004

 

 

 

1,140

 

 

 

(854

)

 

 

31,291

 

Other income (loss), net

 

 

306

 

 

 

3

 

 

 

(14

)

 

 

334

 

 

 

470

 

 

 

1,099

 

Operating expenses

 

 

(11,236

)

 

 

(5,457

)

 

 

(1,437

)

 

 

(1,373

)

 

 

(492

)

 

 

(19,995

)

Net income (loss) before taxes

 

 

9,805

 

 

 

2,812

 

 

 

553

 

 

 

101

 

 

 

(876

)

 

 

12,395

 

Income tax (provision) benefit

 

 

(3,094

)

 

 

(802

)

 

 

(72

)

 

 

(14

)

 

 

200

 

 

 

(3,782

)

Net income (loss) after taxes

 

$

6,711

 

 

$

2,010

 

 

$

481

 

 

$

87

 

 

$

(676

)

 

$

8,613

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7,101

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

Total assets

 

 

1,451,947

 

 

 

758,840

 

 

 

105,548

 

 

 

7,511

 

 

 

437,030

 

 

 

2,760,876

 

Total funds borrowed

 

 

1,200,977

 

 

 

627,674

 

 

 

87,304

 

 

 

6,213

 

 

 

361,488

 

 

 

2,283,656

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.95

%

 

 

1.08

%

 

 

1.86

%

 

 

4.29

%

 

 

(0.61

)%

 

 

1.30

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

8.14

 

Return on average equity

 

 

13.05

 

 

 

7.00

 

 

 

12.09

 

 

 

25.69

 

 

 

(3.88

)

 

 

8.25

 

Interest yield

 

 

13.30

 

 

 

9.32

 

 

 

13.08

 

 

 

21.62

 

 

NM

 

 

 

11.52

 

Net interest margin, gross

 

 

10.23

 

 

 

6.10

 

 

 

9.18

 

 

 

18.78

 

 

NM

 

 

 

8.12

 

Net interest margin, net of allowance

 

 

10.69

 

 

 

6.25

 

 

 

9.57

 

 

 

31.77

 

 

NM

 

 

 

8.42

 

Reserve coverage

 

 

4.35

 

 

 

2.38

 

 

 

4.41

 

 

 

40.18

 

 

NM

 

 

 

3.76

 

Delinquency status (1)

 

 

0.41

 

 

 

0.17

 

 

 

7.52

 

 

 

—

 

 

NM

 

 

 

0.67

 

Charge-off (recovery) ratio (2)

 

 

2.99

 

 

 

1.49

 

 

 

—

 

 

 

(98.90

)

 

NM

 

 

 

2.20

 

 

(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.

Six Months Ended June 30, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

91,417

 

 

$

35,098

 

 

$

7,183

 

 

$

330

 

 

$

3,746

 

 

$

137,774

 

Total interest expense

 

 

20,605

 

 

 

11,740

 

 

 

2,154

 

 

 

53

 

 

 

5,437

 

 

 

39,989

 

Net interest income (loss)

 

 

70,812

 

 

 

23,358

 

 

 

5,029

 

 

 

277

 

 

 

(1,691

)

 

 

97,785

 

Provision (benefit) for credit losses

 

 

32,825

 

 

 

4,177

 

 

 

694

 

 

 

(1,918

)

 

 

—

 

 

 

35,778

 

Net interest income (loss) after loss provision

 

 

37,987

 

 

 

19,181

 

 

 

4,335

 

 

 

2,195

 

 

 

(1,691

)

 

 

62,007

 

Other income, net

 

 

556

 

 

 

5

 

 

 

4,188

 

 

 

973

 

 

 

780

 

 

 

6,502

 

Operating expenses

 

 

(19,523

)

 

 

(9,571

)

 

 

(2,422

)

 

 

(2,116

)

 

 

(4,588

)

 

 

(38,220

)

Net income (loss) before taxes

 

 

19,020

 

 

 

9,615

 

 

 

6,101

 

 

 

1,052

 

 

 

(5,499

)

 

 

30,289

 

Income tax (provision) benefit

 

 

(6,368

)

 

 

(3,219

)

 

 

(2,043

)

 

 

(352

)

 

 

1,842

 

 

 

(10,140

)

Net income (loss) after taxes

 

$

12,652

 

 

$

6,396

 

 

$

4,058

 

 

$

700

 

 

$

(3,657

)

 

$

20,149

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

17,125

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

Total assets

 

 

1,451,947

 

 

 

758,840

 

 

 

105,548

 

 

 

7,511

 

 

 

437,030

 

 

 

2,760,876

 

Total funds borrowed

 

 

1,200,977

 

 

 

627,674

 

 

 

87,304

 

 

 

6,213

 

 

 

361,488

 

 

 

2,283,656

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.87

%

 

 

1.72

%

 

 

7.68

%

 

 

14.89

%

 

 

(1.69

)%

 

 

1.55

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

9.89

 

Return on average equity

 

 

12.31

 

 

 

11.04

 

 

 

49.32

 

 

 

90.99

 

 

 

(10.64

)

 

 

9.70

 

Interest yield

 

 

13.20

 

 

 

9.29

 

 

 

12.97

 

 

 

18.78

 

 

NM

 

 

 

11.42

 

Net interest margin, gross

 

 

10.23

 

 

 

6.18

 

 

 

9.08

 

 

 

15.59

 

 

NM

 

 

 

8.11

 

Net interest margin, net of allowance

 

 

10.69

 

 

 

6.34

 

 

 

9.45

 

 

 

26.61

 

 

NM

 

 

 

8.40

 

Reserve coverage

 

 

4.35

 

 

 

2.38

 

 

 

4.41

 

 

 

40.18

 

 

NM

 

 

 

3.76

 

Delinquency status(1)

 

 

0.41

 

 

 

0.17

 

 

 

7.52

 

 

 

—

 

 

NM

 

 

 

0.67

 

Charge-off (recovery) ratio(2)

 

 

3.64

 

 

 

1.80

 

 

 

(0.04

)

 

 

(100.16

)

 

NM

 

 

 

2.68

 

 

(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 tables present segment data as of and for the three and six months ended June 30, 2023.

Three Months June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

41,109

 

 

$

15,292

 

 

$

2,814

 

 

$

787

 

 

$

1,724

 

 

$

61,726

 

Total interest expense

 

 

7,580

 

 

 

4,194

 

 

 

852

 

 

 

46

 

 

 

2,363

 

 

 

15,035

 

Net interest income (loss)

 

 

33,529

 

 

 

11,098

 

 

 

1,962

 

 

 

741

 

 

 

(639

)

 

 

46,691

 

Provision (benefit) for credit losses

 

 

10,135

 

 

 

3,739

 

 

 

(113

)

 

 

(5,311

)

 

 

26

 

 

 

8,476

 

Net interest income (loss) after loss provision

 

 

23,394

 

 

 

7,359

 

 

 

2,075

 

 

 

6,052

 

 

 

(665

)

 

 

38,215

 

Other income, net

 

 

—

 

 

 

2

 

 

 

343

 

 

 

1,304

 

 

 

293

 

 

 

1,942

 

Operating expenses

 

 

(8,444

)

 

 

(4,388

)

 

 

(1,147

)

 

 

(743

)

 

 

(4,281

)

 

 

(19,003

)

Net income (loss) before taxes

 

 

14,950

 

 

 

2,973

 

 

 

1,271

 

 

 

6,613

 

 

 

(4,653

)

 

 

21,154

 

Income tax (provision) benefit

 

 

(3,867

)

 

 

(769

)

 

 

(329

)

 

 

(1,713

)

 

 

1,206

 

 

 

(5,472

)

Net income (loss) after taxes

 

$

11,083

 

 

$

2,204

 

 

$

942

 

 

$

4,900

 

 

$

(3,447

)

 

$

15,682

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14,170

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.59

%

 

 

1.28

%

 

 

3.76

%

 

 

100.63

%

 

 

(3.69

)%

 

 

2.60

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

18.24

 

Return on average equity

 

 

22.94

 

 

 

8.19

 

 

 

23.97

 

 

 

641.63

 

 

 

(22.83

)

 

 

16.52

 

Interest yield

 

 

13.03

 

 

 

8.79

 

 

 

11.87

 

 

 

83.55

 

 

NM

 

 

 

11.21

 

Net interest margin, gross

 

 

10.63

 

 

 

6.38

 

 

 

8.28

 

 

 

78.67

 

 

NM

 

 

 

8.48

 

Net interest margin, net of allowance

 

 

11.08

 

 

 

6.53

 

 

 

8.54

 

 

 

166.23

 

 

NM

 

 

 

8.77

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

NM

 

 

 

3.48

 

Delinquency status (1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

NM

 

 

 

0.29

 

Charge-off (recovery) ratio (2)

 

 

1.86

 

 

 

1.12

 

 

 

3.80

 

 

 

(525.21

)

 

NM

 

 

 

0.74

 

 

(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.

 

Six Months Ended June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

79,008

 

 

$

28,941

 

 

$

5,515

 

 

$

1,097

 

 

$

3,007

 

 

$

117,568

 

Total interest expense

 

 

13,484

 

 

 

7,473

 

 

 

1,661

 

 

 

113

 

 

 

4,544

 

 

 

27,275

 

Net interest income (loss)

 

 

65,524

 

 

 

21,468

 

 

 

3,854

 

 

 

984

 

 

 

(1,537

)

 

 

90,293

 

Provision (benefit) for credit losses

 

 

17,886

 

 

 

6,820

 

 

 

214

 

 

 

(12,395

)

 

 

(11

)

 

 

12,514

 

Net interest income (loss) after loss provision

 

 

47,638

 

 

 

14,648

 

 

 

3,640

 

 

 

13,379

 

 

 

(1,526

)

 

 

77,779

 

Other income, net

 

 

—

 

 

 

3

 

 

 

614

 

 

 

2,923

 

 

 

485

 

 

 

4,025

 

Operating expenses

 

 

(16,247

)

 

 

(8,382

)

 

 

(1,567

)

 

 

(2,770

)

 

 

(8,429

)

 

 

(37,395

)

Net income (loss) before taxes

 

 

31,391

 

 

 

6,269

 

 

 

2,687

 

 

 

13,532

 

 

 

(9,470

)

 

 

44,409

 

Income tax (provision) benefit

 

 

(8,380

)

 

 

(1,674

)

 

 

(718

)

 

 

(3,612

)

 

 

2,530

 

 

 

(11,854

)

Net income (loss) after taxes

 

$

23,011

 

 

$

4,595

 

 

$

1,969

 

 

$

9,920

 

 

$

(6,940

)

 

$

32,555

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

29,531

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

1.39

%

 

 

3.94

%

 

 

94.20

%

 

 

(3.70

)%

 

 

2.79

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

19.45

 

Return on average equity

 

 

24.13

 

 

 

8.76

 

 

 

24.74

 

 

 

590.25

 

 

 

(23.24

)

 

 

17.49

 

Interest yield

 

 

12.93

 

 

 

8.66

 

 

 

11.71

 

 

 

28.80

 

 

NM

 

 

 

11.01

 

Net interest margin, gross

 

 

10.72

 

 

 

6.43

 

 

 

8.18

 

 

 

25.84

 

 

NM

 

 

 

8.45

 

Net interest margin, net of allowance

 

 

11.18

 

 

 

6.57

 

 

 

8.43

 

 

 

73.52

 

 

NM

 

 

 

8.75

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

NM

 

 

 

3.48

 

Delinquency status(1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

NM

 

 

 

0.29

 

Charge-off (recovery) ratio (2)

 

 

2.57

 

 

 

0.97

 

 

 

1.89

 

 

 

(124.01

)

 

NM

 

 

 

1.51

 

 

(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.
v3.24.2.u1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 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 June 30, 2024, employment agreements expire at various dates through 2027, with future minimum payments under these agreements of approximately $9.8 million.

(B) OTHER COMMITMENTS

As of June 30, 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.
v3.24.2.u1
Related Party Transactions
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2024 and 2023.
v3.24.2.u1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 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 June 30, 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.

 

June 30, 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)

 

$

157,961

 

 

$

157,961

 

 

$

149,845

 

 

$

149,845

 

Equity investments

 

 

10,795

 

 

 

10,795

 

 

 

11,430

 

 

 

11,430

 

Investment securities

 

 

55,830

 

 

 

55,830

 

 

 

54,282

 

 

 

54,282

 

Loans receivable

 

 

2,295,802

 

 

 

2,284,754

 

 

 

2,131,651

 

 

 

2,131,651

 

Accrued interest receivable (2)

 

 

13,299

 

 

 

13,299

 

 

 

13,538

 

 

 

13,538

 

Equity securities (3)

 

 

1,722

 

 

 

1,722

 

 

 

1,748

 

 

 

1,748

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,283,656

 

 

 

2,249,036

 

 

 

2,118,689

 

 

 

2,118,689

 

Accrued interest payable (2)

 

 

7,945

 

 

 

7,945

 

 

 

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 June 30, 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.
v3.24.2.u1
Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

June 30, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Investment securities

 

 

—

 

 

 

55,830

 

 

 

—

 

 

 

55,830

 

Equity securities

 

 

1,722

 

 

 

—

 

 

 

—

 

 

 

1,722

 

Total (1)

 

$

1,722

 

 

$

57,080

 

 

$

—

 

 

$

58,802

 
(1)
Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 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 June 30, 2024 and December 31, 2023.

June, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,795

 

 

$

10,795

 

Nonaccrual loans

 

 

—

 

 

 

—

 

 

 

22,248

 

 

 

22,248

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

9,359

 

 

 

9,359

 

Total

 

$

—

 

 

$

—

 

 

$

42,402

 

 

$

42,402

 

 

December 31, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

11,430

 

 

$

11,430

 

Nonaccrual 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 June 30, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)

 

Fair Value
at June 30, 2024

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,522

 

 

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

Nonaccrual loans

 

 

22,248

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 23.06%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

9,359

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.5 - $51.3
(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

Nonaccrual 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.
v3.24.2.u1
Medallion Bank Preferred Stock (Non-controlling Interest)
 6 Months Ended
Jun. 30, 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.
v3.24.2.u1
Subsequent Events
 6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to June 30, 2024 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there were no subsequent events that required recognition or disclosure.
v3.24.2.u1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 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 June 30, 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 $10.8 million and $11.4 million at June 30, 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. During the first quarter of 2024, $4.7 million of unrealized appreciation was recorded with respect to a single equity investment, which was realized in the quarter ended June 30, 2024, with the unrealized appreciation being realized. As of June 30, 2024, cumulative impairment of $4.3 million had been recorded with respect to these investments.

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

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net losses recognized during the period on equity securities

 

$

(7

)

 

$

(28

)

 

$

(26

)

 

$

—

 

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(7

)

 

$

(28

)

 

$

(26

)

 

$

—

 
Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in debt securities be classified as trading securities, available-for-sale securities, or held-to-maturity securities. Investment securities are purchased from time-to-time in the open market at prices that are greater or lesser than the par value of the investment. The resulting premium or discount is deferred and recognized on a level yield basis as an adjustment to the yield of the related investment. The net premium on investment securities totaled $0.1 million at both June 30, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 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 June 30, 2024 and December 31, 2023, net loan origination costs were $44.6 million and $40.0 million. Net amortization to income was $2.3 million and $4.3 million for the three and six months ended June 30, 2024 and was $2.4 million and $4.3 million for the three and six months ended June 30, 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 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 nonperforming. 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 $15.6 million at June 30, 2024, or 0.67% 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 in the event that the borrowers file for bankruptcy, regardless of the loans aging.

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 nonperforming 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, or ASC, 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 June 30, 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 June 30, 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 June 30, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $19.9 million and $20.6 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2024 and 2023 was $0.4 million and $0.7 million. Management performed a qualitative assessment of 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)

 

June 30, 2024

 

 

December 31, 2023

 

Brand-related intellectual property

 

$

15,125

 

 

$

15,675

 

Home improvement contractor relationships

 

 

4,744

 

 

 

4,916

 

Total intangible assets

 

$

19,869

 

 

$

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 and $0.2 million for the three and six months ended June 30, 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, included as Interest expense in the Consolidated Statements of Operations, was $0.9 million and $1.8 million for the three and six months ended June 30, 2024 and was $0.8 million and $1.5 million for the three and six months ended June 30, 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 $8.6 million and $8.5 million as of June 30, 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 June 30,

 

 

Six Months Ended June 30,

 

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

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income attributable to common stockholders

 

$

7,101

 

 

$

14,170

 

 

$

17,125

 

 

$

29,531

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,598,102

 

 

 

22,488,463

 

 

 

22,619,743

 

 

 

22,416,089

 

Effect of restricted stock grants

 

 

404,499

 

 

 

276,420

 

 

 

507,416

 

 

 

379,924

 

Effect of dilutive stock options

 

 

163,340

 

 

 

43,567

 

 

 

209,067

 

 

 

96,342

 

Effect of performance stock unit grants

 

 

287,221

 

 

 

45,477

 

 

 

272,878

 

 

 

22,739

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,453,162

 

 

 

22,853,927

 

 

 

23,609,104

 

 

 

22,915,094

 

Basic net income per share

 

$

0.31

 

 

$

0.63

 

 

$

0.76

 

 

$

1.32

 

Diluted net income per share

 

 

0.30

 

 

 

0.62

 

 

 

0.73

 

 

 

1.29

 

Potentially dilutive common shares excluded from the above calculations aggregated 101,350 and 644,478 shares as of June 30, 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 six months ended June 30, 2024 and 2023, the Company issued 296,178 and 316,483 restricted shares of stock-based compensation awards, 215,687 and 296,444 performance stock units, and 92,350 and 0 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.6 million and $3.1 million, or $0.07 and $0.13 per share for the three and six months ended June 30, 2024, and $1.2 million, and $2.2 million or $0.05 and $0.10 per share per common share for the three and six months ended June 30, 2023, of non-cash stock-based compensation expense related to the grants. As of June 30, 2024, the total remaining unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units was $8.4 million, which is expected to be recognized over the next 11 quarters.
Regulatory Capital

Regulatory Capital

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

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

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting the Bank’s application for federal deposit insurance, the FDIC ordered that the Tier 1 leverage capital to total assets ratio, as defined, be not less than 15%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2024, the Bank’s Tier 1 leverage ratio was 16.1%. The Bank’s actual capital amounts and ratios and the regulatory minimum ratios are presented in the following table.

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

June 30, 2024

 

 

December 31, 2023

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

306,186

 

 

$

293,774

 

Tier 1 capital

 

 

 

 

 

 

 

 

374,974

 

 

 

362,561

 

Total capital

 

 

 

 

 

 

 

 

404,742

 

 

 

390,153

 

Average assets

 

 

 

 

 

 

 

 

2,322,625

 

 

 

2,232,816

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,326,972

 

 

 

2,155,641

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.1

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.2

 

 

 

13.6

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.1

 

 

 

16.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.4

 

 

 

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 June 30, 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 June 30, 2024 and December 31, 2023.
Recently Issued and Adopted Accounting Standards

Recently Issued and Adopted Accounting Standards

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 amendments in this update will be effective on the date on which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, with early adoption prohibited.

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 and to be included in interim periods beginning after December 15, 2024. 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.
v3.24.2.u1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 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 June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net losses recognized during the period on equity securities

 

$

(7

)

 

$

(28

)

 

$

(26

)

 

$

—

 

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

$

(7

)

 

$

(28

)

 

$

(26

)

 

$

—

 
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)

 

June 30, 2024

 

 

December 31, 2023

 

Brand-related intellectual property

 

$

15,125

 

 

$

15,675

 

Home improvement contractor relationships

 

 

4,744

 

 

 

4,916

 

Total intangible assets

 

$

19,869

 

 

$

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 June 30,

 

 

Six Months Ended June 30,

 

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

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income attributable to common stockholders

 

$

7,101

 

 

$

14,170

 

 

$

17,125

 

 

$

29,531

 

Weighted average common shares outstanding applicable to basic EPS

 

 

22,598,102

 

 

 

22,488,463

 

 

 

22,619,743

 

 

 

22,416,089

 

Effect of restricted stock grants

 

 

404,499

 

 

 

276,420

 

 

 

507,416

 

 

 

379,924

 

Effect of dilutive stock options

 

 

163,340

 

 

 

43,567

 

 

 

209,067

 

 

 

96,342

 

Effect of performance stock unit grants

 

 

287,221

 

 

 

45,477

 

 

 

272,878

 

 

 

22,739

 

Adjusted weighted average common shares outstanding applicable to diluted EPS

 

 

23,453,162

 

 

 

22,853,927

 

 

 

23,609,104

 

 

 

22,915,094

 

Basic net income per share

 

$

0.31

 

 

$

0.63

 

 

$

0.76

 

 

$

1.32

 

Diluted net income per share

 

 

0.30

 

 

 

0.62

 

 

 

0.73

 

 

 

1.29

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

 

Regulatory

 

 

 

 

 

 

 

(Dollars in thousands)

 

Minimum

 

 

Well-Capitalized

 

 

June 30, 2024

 

 

December 31, 2023

 

Common equity tier 1 capital

 

 

 

 

 

 

 

$

306,186

 

 

$

293,774

 

Tier 1 capital

 

 

 

 

 

 

 

 

374,974

 

 

 

362,561

 

Total capital

 

 

 

 

 

 

 

 

404,742

 

 

 

390,153

 

Average assets

 

 

 

 

 

 

 

 

2,322,625

 

 

 

2,232,816

 

Risk-weighted assets

 

 

 

 

 

 

 

 

2,326,972

 

 

 

2,155,641

 

Leverage ratio (1)

 

 

4.0

%

 

 

5.0

%

 

 

16.1

%

 

 

16.2

%

Common equity tier 1 capital ratio (2)

 

 

7.0

 

 

 

6.5

 

 

 

13.2

 

 

 

13.6

 

Tier 1 capital ratio (3)

 

 

8.5

 

 

 

8.0

 

 

 

16.1

 

 

 

16.8

 

Total capital ratio (3)

 

 

10.5

 

 

 

10.0

 

 

 

17.4

 

 

 

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.
v3.24.2.u1
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2024
Schedule of Investments [Abstract]  
Summary of Fixed Maturity Securities Available for Sale maturity securities available for sale as of June 30, 2024 and December 31, 2023:

June 30, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

43,255

 

 

$

2

 

 

$

(4,763

)

 

$

38,494

 

State and municipalities

 

 

16,751

 

 

 

52

 

 

 

(1,620

)

 

 

15,183

 

Agency bonds

 

 

2,183

 

 

 

—

 

 

 

(30

)

 

 

2,153

 

Total

 

$

62,189

 

 

$

54

 

 

$

(6,413

)

 

$

55,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30, 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.

June 30, 2024
(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Due in one year or less

 

$

2,039

 

 

$

1,996

 

Due after one year through five years

 

 

5,820

 

 

 

5,608

 

Due after five years through ten years

 

 

8,380

 

 

 

7,370

 

Due after ten years

 

 

45,950

 

 

 

40,856

 

Total

 

$

62,189

 

 

$

55,830

 
Summary of Securities with Gross Unrealized Losses

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

 

June 30, 2024
(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

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

 

$

(30

)

 

$

1,988

 

 

$

(4,733

)

 

$

36,024

 

State and municipalities

 

 

(70

)

 

 

3,130

 

 

 

(1,550

)

 

 

10,005

 

Agency bonds

 

 

—

 

 

 

—

 

 

 

(30

)

 

 

2,153

 

Total

 

$

(100

)

 

$

5,118

 

 

$

(6,313

)

 

$

48,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
v3.24.2.u1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

 

 

June 30, 2024

 

 

December 31, 2023

 

(Dollars in thousands)

 

Amount

 

 

As a
Percent of
Gross Loans

 

 

Amount

 

 

As a
Percent of
Gross Loans

 

Recreation

 

$

1,497,428

 

 

 

63

%

 

$

1,336,226

 

 

 

60

%

Home improvement

 

 

773,184

 

 

 

32

 

 

 

760,617

 

 

 

34

 

Commercial

 

 

110,197

 

 

 

5

 

 

 

114,827

 

 

 

5

 

Taxi medallion

 

 

3,482

 

 

*

 

 

 

3,663

 

 

*

 

Strategic partnership

 

 

1,299

 

 

*

 

 

 

553

 

 

*

 

Total gross loans

 

 

2,385,590

 

 

 

100

%

 

 

2,215,886

 

 

 

100

%

Allowance for credit losses

 

 

(89,788

)

 

 

 

 

 

(84,235

)

 

 

 

Total net loans

 

$

2,295,802

 

 

 

 

 

$

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 and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2024

 

$

1,365,165

 

 

$

752,262

 

 

$

106,570

 

 

$

3,560

 

 

$

869

 

 

$

2,228,426

 

Loan originations

 

 

209,563

 

 

 

67,990

 

 

 

7,000

 

 

 

250

 

 

 

24,288

 

 

 

309,091

 

Principal receipts, sales, and maturities

 

 

(61,553

)

 

 

(42,492

)

 

 

(3,961

)

 

 

(328

)

 

 

(23,858

)

 

 

(132,192

)

Charge-offs

 

 

(14,627

)

 

 

(4,063

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(18,690

)

Transfer to loan collateral in process of foreclosure, net

 

 

(5,669

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,669

)

Amortization of origination fees, net

 

 

(3,214

)

 

 

913

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

(2,291

)

Origination costs, net

 

 

7,763

 

 

 

(1,426

)

 

 

(77

)

 

 

—

 

 

 

—

 

 

 

6,260

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

655

 

 

 

—

 

 

 

—

 

 

 

655

 

Gross loans – June 30, 2024

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024
(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2023

 

$

1,336,226

 

 

$

760,617

 

 

$

114,827

 

 

$

3,663

 

 

$

553

 

 

$

2,215,886

 

Loan originations

 

 

315,328

 

 

 

119,566

 

 

 

7,000

 

 

 

250

 

 

 

40,034

 

 

 

482,178

 

Principal receipts, sales, and maturities

 

 

(115,589

)

 

 

(97,409

)

 

 

(12,833

)

 

 

(431

)

 

 

(39,288

)

 

 

(265,550

)

Charge-offs

 

 

(32,728

)

 

 

(8,961

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(41,689

)

Transfer to loan collateral in process of foreclosure, net

 

 

(11,094

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,094

)

Amortization of origination fees, net

 

 

(6,166

)

 

 

1,851

 

 

 

17

 

 

 

—

 

 

 

—

 

 

 

(4,298

)

Origination costs, net

 

 

11,451

 

 

 

(2,480

)

 

 

(77

)

 

 

—

 

 

 

—

 

 

 

8,894

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

1,263

 

 

 

—

 

 

 

—

 

 

 

1,263

 

Gross loans – June 30, 2024

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Taxi
Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – March 31, 2023

 

$

1,213,380

 

 

$

669,642

 

 

$

95,329

 

 

$

4,059

 

 

$

1,770

 

 

$

1,984,180

 

Loan originations

 

 

190,007

 

 

 

117,035

 

 

 

4,750

 

 

 

1,300

 

 

 

33,174

 

 

 

346,266

 

Principal receipts, sales, and maturities

 

 

(63,463

)

 

 

(55,350

)

 

 

(6,922

)

 

 

(1,531

)

 

 

(33,613

)

 

 

(160,879

)

Charge-offs

 

 

(9,166

)

 

 

(2,575

)

 

 

(900

)

 

 

(221

)

 

 

—

 

 

 

(12,862

)

Transfer to loan collateral in process of foreclosure, net

 

 

(3,991

)

 

 

—

 

 

 

—

 

 

 

(159

)

 

 

—

 

 

 

(4,150

)

Amortization of origination fees, net

 

 

(3,159

)

 

 

665

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,494

)

Origination costs, net

 

 

7,506

 

 

 

(949

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,557

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

380

 

 

 

—

 

 

 

—

 

 

 

380

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Home
Improvement

 

 

Commercial

 

 

Medallion

 

 

Strategic
Partnership

 

 

Total

 

Gross loans – December 31, 2022

 

$

1,183,512

 

 

$

626,399

 

 

$

92,899

 

 

$

13,571

 

 

$

572

 

 

$

1,916,953

 

Loan originations

 

 

291,688

 

 

 

212,016

 

 

 

7,750

 

 

 

1,923

 

 

 

60,180

 

 

 

573,557

 

Principal receipts, sales, and maturities

 

 

(119,680

)

 

 

(105,205

)

 

 

(7,756

)

 

 

(5,926

)

 

 

(59,421

)

 

 

(297,988

)

Charge-offs

 

 

(21,756

)

 

 

(4,489

)

 

 

(900

)

 

 

(3,814

)

 

 

—

 

 

 

(30,959

)

Transfer to loan collateral in process of foreclosure, net

 

 

(8,348

)

 

 

—

 

 

 

—

 

 

 

(2,306

)

 

 

—

 

 

 

(10,654

)

Amortization of origination fees, net

 

 

(5,918

)

 

 

1,251

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,667

)

Origination costs, net

 

 

11,616

 

 

 

(1,504

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,112

 

Paid-in-kind interest

 

 

—

 

 

 

—

 

 

 

644

 

 

 

—

 

 

 

—

 

 

 

644

 

Gross loans – June 30, 2023

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

 
Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Allowance for credit losses – beginning balance (1)

 

$

83,827

 

 

$

70,280

 

 

$

84,235

 

 

$

63,845

 

CECL transition amount upon ASU 2016-13 adoption

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13,712

 

Charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

(14,627

)

 

 

(9,166

)

 

 

(32,728

)

 

 

(21,756

)

Home improvement

 

 

(4,063

)

 

 

(2,575

)

 

 

(8,961

)

 

 

(4,489

)

Commercial

 

 

—

 

 

 

(900

)

 

 

—

 

 

 

(900

)

Taxi medallion

 

 

—

 

 

 

(221

)

 

 

—

 

 

 

(3,814

)

Total charge-offs

 

 

(18,690

)

 

 

(12,862

)

 

 

(41,689

)

 

 

(30,959

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

 

Recreation

 

 

3,962

 

 

 

3,282

 

 

 

7,510

 

 

 

6,053

 

Home improvement

 

 

1,243

 

 

 

627

 

 

 

2,154

 

 

 

1,259

 

Commercial

 

 

—

 

 

 

—

 

 

 

20

 

 

 

10

 

Taxi medallion

 

 

869

 

 

 

5,168

 

 

 

1,780

 

 

 

8,537

 

Total recoveries

 

 

6,074

 

 

 

9,077

 

 

 

11,464

 

 

 

15,859

 

Net charge-offs (2)

 

 

(12,616

)

 

 

(3,785

)

 

 

(30,225

)

 

 

(15,100

)

Provision for credit losses

 

 

18,577

 

 

 

8,476

 

 

 

35,778

 

 

 

12,514

 

Allowance for credit losses – ending balance (3)

 

$

89,788

 

 

$

74,971

 

 

$

89,788

 

 

$

74,971

 
(1)
2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
(2)
As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
(3)
As of June 30, 2024 and June 30, 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 tables set forth the gross charge-offs for the three and six months ended June 30, 2024, by the year of origination:

Three Months Ended June 30, 2024
(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Recreation

 

$

99

 

 

$

4,099

 

 

$

5,049

 

 

$

1,990

 

 

$

986

 

 

$

2,404

 

 

$

14,627

 

Home improvement

 

 

40

 

 

 

1,508

 

 

 

1,594

 

 

 

507

 

 

 

119

 

 

 

295

 

 

 

4,063

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

139

 

 

$

5,607

 

 

$

6,643

 

 

$

2,497

 

 

$

1,105

 

 

$

2,699

 

 

$

18,690

 

 

Six Months Ended June 30, 2024
(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total

 

Recreation

 

$

99

 

 

$

7,862

 

 

$

11,867

 

 

$

5,487

 

 

$

2,275

 

 

$

5,138

 

 

$

32,728

 

Home improvement

 

 

40

 

 

 

3,032

 

 

 

3,274

 

 

 

1,670

 

 

 

406

 

 

 

539

 

 

 

8,961

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

139

 

 

$

10,894

 

 

$

15,141

 

 

$

7,157

 

 

$

2,681

 

 

$

5,677

 

 

$

41,689

 

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2023, by the year of origination:

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

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

3,568

 

 

$

2,344

 

 

$

785

 

 

$

918

 

 

$

1,507

 

 

$

9,166

 

Home improvement

 

 

39

 

 

 

1,548

 

 

 

473

 

 

 

158

 

 

 

91

 

 

 

266

 

 

 

2,575

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

221

 

 

 

221

 

Total

 

$

83

 

 

$

5,116

 

 

$

2,817

 

 

$

943

 

 

$

1,909

 

 

$

1,994

 

 

$

12,862

 

 

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

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

Recreation

 

$

44

 

 

$

7,176

 

 

$

5,414

 

 

$

2,456

 

 

$

2,472

 

 

$

4,194

 

 

$

21,756

 

Home improvement

 

 

39

 

 

 

2,452

 

 

 

1,101

 

 

 

301

 

 

 

222

 

 

 

374

 

 

 

4,489

 

Commercial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

900

 

 

 

—

 

 

 

900

 

Taxi medallion

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,814

 

 

 

3,814

 

Total

 

$

83

 

 

$

9,628

 

 

$

6,515

 

 

$

2,757

 

 

$

3,594

 

 

$

8,382

 

 

$

30,959

 

 
Summary of Allowance for Loan Losses by Type

The following tables set forth the allowance for credit losses by type as of June 30, 2024 and December 31, 2023.

June 30, 2024
(Dollars in thousands)

 

Amount

 

 

Percentage
of Allowance

 

 

Allowance as
a Percent of
Loan Category

 

 

Allowance as
a Percent of
Nonaccrual

 

Recreation

 

$

65,140

 

 

 

73

%

 

 

4.35

%

 

 

292.79

%

Home improvement

 

 

18,388

 

 

 

20

 

 

 

2.38

 

 

 

82.65

 

Commercial

 

 

4,861

 

 

 

5

 

 

 

4.41

 

 

 

21.85

 

Taxi medallion

 

 

1,399

 

 

 

2

 

 

 

40.18

 

 

 

6.29

 

Total

 

$

89,788

 

 

 

100

%

 

 

3.76

%

 

 

403.58

%

 

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

(Dollars in thousands)

 

June 30, 2024

 

 

December 31, 2023

 

Total nonaccrual loans

 

$

22,248

 

 

$

25,974

 

Interest foregone quarter to date

 

 

464

 

 

 

417

 

Amount of foregone interest applied to principal in the quarter

 

 

72

 

 

 

59

 

Interest foregone year to date

 

 

662

 

 

 

928

 

Amount of foregone interest applied to principal for the year

 

 

133

 

 

 

238

 

Interest foregone life-to-date

 

 

3,162

 

 

 

2,119

 

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

 

 

814

 

 

 

822

 

Percentage of nonaccrual loans to gross loan portfolio

 

 

0.9

%

 

 

1.2

%

Percentage of allowance for credit losses to nonaccrual loans

 

 

403.6

%

 

 

324.3

%
Summary of Performance Status of Loan

The following tables present the performance status of loans as of June 30, 2024 and December 31, 2023.

June 30, 2024
(Dollars in thousands)

 

Performing

 

 

Nonperforming

 

 

Total

 

 

Percentage of
Nonperforming
to Total

 

Recreation

 

$

1,490,965

 

 

$

6,463

 

 

$

1,497,428

 

 

 

0.43

%

Home improvement

 

 

771,881

 

 

 

1,303

 

 

 

773,184

 

 

 

0.17

 

Commercial

 

 

99,197

 

 

 

11,000

 

 

 

110,197

 

 

 

9.98

 

Taxi medallion

 

 

—

 

 

 

3,482

 

 

 

3,482

 

 

 

100.00

 

Strategic partnership

 

 

1,299

 

 

 

—

 

 

 

1,299

 

 

 

—

 

Total

 

$

2,363,342

 

 

$

22,248

 

 

$

2,385,590

 

 

 

0.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Aging of Loans he following tables show the aging of all loans as of June 30, 2024 and December 31, 2023.

June 30, 2024

 

Days Past Due

 

 

 

 

 

 

 

 

 

 

 

Recorded
Investment
90 Days and

 

(Dollars in thousands)

 

30-59

 

 

60-89

 

 

90 +

 

 

Total

 

 

Current

 

 

Total (1)

 

 

Accruing

 

Recreation

 

$

35,094

 

 

$

13,278

 

 

$

5,938

 

 

$

54,310

 

 

$

1,394,199

 

 

$

1,448,509

 

 

$

—

 

Home improvement

 

 

3,637

 

 

 

1,993

 

 

 

1,305

 

 

 

6,935

 

 

 

770,331

 

 

 

777,266

 

 

 

—

 

Commercial

 

 

—

 

 

 

—

 

 

 

8,396

 

 

 

8,396

 

 

 

102,016

 

 

 

110,412

 

 

 

—

 

Taxi medallion

 

 

73

 

 

 

—

 

 

 

—

 

 

 

73

 

 

 

3,409

 

 

 

3,482

 

 

 

—

 

Strategic partnership

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,299

 

 

 

1,299

 

 

 

—

 

Total

 

$

38,804

 

 

$

15,271

 

 

$

15,639

 

 

$

69,714

 

 

$

2,271,254

 

 

$

2,340,968

 

 

$

—

 
(1)
Excludes $44.6 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 and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024
(Dollars in thousands)

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2024

 

$

1,475

 

 

$

8,723

 

 

$

10,198

 

Transfer from loans, net

 

 

5,669

 

 

 

—

 

 

 

5,669

 

Sales

 

 

—

 

 

 

—

 

 

 

—

 

Cash payments received

 

 

(2,225

)

 

 

(881

)

 

 

(3,106

)

Collateral valuation adjustments

 

 

(3,478

)

 

 

76

 

 

 

(3,402

)

Loan collateral in process of foreclosure – June 30, 2024

 

$

1,441

 

 

$

7,918

 

 

$

9,359

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 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

 

 

11,094

 

 

 

—

 

 

 

11,094

 

Sales

 

 

—

 

 

 

(39

)

 

 

(39

)

Cash payments received

 

 

(4,672

)

 

 

(2,154

)

 

 

(6,826

)

Collateral valuation adjustments

 

 

(6,760

)

 

 

118

 

 

 

(6,642

)

Loan collateral in process of foreclosure – June 30, 2024

 

$

1,441

 

 

$

7,918

 

 

$

9,359

 

 

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

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – March 31, 2023

 

$

1,461

 

 

$

19,006

 

 

$

20,467

 

Transfer from loans, net

 

 

3,991

 

 

 

159

 

 

 

4,150

 

Sales

 

 

(2,583

)

 

 

(553

)

 

 

(3,136

)

Cash payments received

 

 

(128

)

 

 

(2,517

)

 

 

(2,645

)

Collateral valuation adjustments

 

 

(2,012

)

 

 

(21

)

 

 

(2,033

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 

 

 

 

 

 

 

 

 

 

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

 

Recreation

 

 

Taxi
Medallion

 

 

Total

 

Loan collateral in process of foreclosure – December 31, 2022

 

$

1,376

 

 

$

20,443

 

 

$

21,819

 

Transfer from loans, net

 

 

8,348

 

 

 

2,306

 

 

 

10,654

 

Sales

 

 

(4,778

)

 

 

(568

)

 

 

(5,346

)

Cash payments received

 

 

(128

)

 

 

(5,834

)

 

 

(5,962

)

Collateral valuation adjustments

 

 

(4,089

)

 

 

(273

)

 

 

(4,362

)

Loan collateral in process of foreclosure – June 30, 2023

 

$

729

 

 

$

16,074

 

 

$

16,803

 

 
v3.24.2.u1
Funds Borrowed (Tables)
 6 Months Ended
Jun. 30, 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 June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

Thereafter

 

 

June 30, 2024 (1)

 

 

December 31, 2023(1)

 

 

Interest
Rate (2)

 

Deposits (3)

 

$

867,211

 

 

$

391,277

 

 

$

433,022

 

 

$

118,517

 

 

$

199,629

 

 

$

—

 

 

$

2,009,656

 

 

$

1,869,439

 

 

 

3.50

%

Retail and privately placed notes

 

 

—

 

 

 

31,250

 

 

 

—

 

 

 

53,750

 

 

 

39,000

 

 

 

17,500

 

 

 

141,500

 

 

 

139,500

 

 

 

8.10

 

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

 

 

 

7.73

 

Federal reserve and other borrowings

 

 

25,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,000

 

 

 

—

 

 

 

5.50

 

Total

 

$

904,711

 

 

$

438,027

 

 

$

437,522

 

 

$

172,267

 

 

$

241,129

 

 

$

88,250

 

 

$

2,281,906

 

 

$

2,117,189

 

 

 

3.87

%
(1)
Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.
(2)
Weighted average contractual rate as of June 30, 2024.
(3)
Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 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 June 30, 2024.

(Dollars in thousands)

 

June 30, 2024

 

Three months or less

 

$

237,363

 

Over three months through six months

 

 

151,130

 

Over six months through one year

 

 

478,718

 

Over one year

 

 

1,142,445

 

Deposits

 

 

2,009,656

 

 Strategic partner collateral deposits

 

 

1,750

 

Total deposits

 

$

2,011,406

 
v3.24.2.u1
Leases (Tables)
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2024 and 2023.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating lease costs

 

$

607

 

 

$

597

 

 

$

1,210

 

 

$

1,195

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

698

 

 

 

603

 

 

 

1,355

 

 

 

1,226

 

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

 

 

(58

)

 

 

(56

)

 

 

(118

)

 

 

(111

)
Schedule of Breakout of Operating Leases

The following table presents the breakout of the operating leases as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)

 

June 30, 2024

 

 

December 31, 2023

 

Operating lease right-of-use assets

 

$

7,728

 

 

$

8,785

 

Other current liabilities

 

 

2,267

 

 

 

2,472

 

Operating lease liabilities

 

 

6,071

 

 

 

7,019

 

Total operating lease liabilities

 

 

8,338

 

 

 

9,491

 

Weighted average remaining lease term

 

4.5 years

 

 

4.9 years

 

Weighted average discount rate

 

 

5.56

%

 

 

5.47

%
Schedule of Maturities of the Lease Liabilities

At June 30, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)

 

 

 

Remainder of 2024

 

$

1,268

 

2025

 

 

2,546

 

2026

 

 

2,567

 

2027

 

 

1,342

 

2028

 

 

573

 

Thereafter

 

 

1,139

 

Total lease payments

 

 

9,435

 

Less imputed interest

 

 

1,097

 

Total operating lease liabilities

 

$

8,338

 
v3.24.2.u1
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

(Dollars in thousands)

 

June 30, 2024

 

 

December 31, 2023

 

Goodwill and other intangibles

 

$

42,853

 

 

$

43,034

 

Provision for credit losses

 

 

(12,844

)

 

 

(13,032

)

Net operating loss carryforwards (1)

 

 

(3,804

)

 

 

(3,802

)

Accrued expenses, compensation, and other assets

 

 

(5,433

)

 

 

(6,976

)

Unrealized losses on other investments

 

 

(1,971

)

 

 

(1,877

)

Total deferred tax liability

 

 

18,801

 

 

 

17,347

 

Valuation allowance

 

 

3,593

 

 

 

3,860

 

Deferred tax liability, net

 

$

22,394

 

 

$

21,207

 
(1)
As of June 30, 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 June 30, 2024.
Summary of Components of Tax Provision

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2024 and 2023:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

4,792

 

 

$

3,873

 

 

$

6,521

 

 

$

6,456

 

State

 

 

1,476

 

 

 

1,175

 

 

 

2,119

 

 

 

1,964

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

(1,916

)

 

 

204

 

 

 

1,200

 

 

 

2,450

 

State

 

 

(570

)

 

 

220

 

 

 

300

 

 

 

984

 

Net provision for income taxes

 

$

3,782

 

 

$

5,472

 

 

$

10,140

 

 

$

11,854

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

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2024 and 2023.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Statutory Federal income tax provision at 21%

 

$

2,603

 

 

$

4,442

 

 

$

6,361

 

 

$

9,326

 

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

 

 

509

 

 

 

869

 

 

 

1,244

 

 

 

1,824

 

Non-deductible expenses

 

 

374

 

 

 

19

 

 

 

2,154

 

 

 

1,076

 

Other

 

 

296

 

 

 

142

 

 

 

381

 

 

 

(372

)

Total income tax provision

 

$

3,782

 

 

$

5,472

 

 

$

10,140

 

 

$

11,854

 
v3.24.2.u1
Stock Options and Restricted Stock (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the first and second quarter of 2024 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(1,696

)

 

 

4.89 - 9.37

 

 

 

7.88

 

Vested

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2024 (2)

 

 

887,665

 

 

$

4.89 - 9.37

 

 

$

8.18

 
(1)
The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023.
(2)
The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.
Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the first and second quarter of 2024 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

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(146

)

 

 

 

4.89

 

 

 

4.89

 

Exercised (1)

 

 

(2,867

)

 

 

4.89 - 7.25

 

 

 

6.14

 

Outstanding at June 30, 2024 (2)

 

 

943,041

 

 

$

2.14 - 9.38

 

 

$

6.51

 

Options exercisable at:

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

697,647

 

 

 

2.14 - 9.38

 

 

$

6.51

 

June 30, 2024 (2)

 

 

854,742

 

 

$

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 and six months ended June 30, 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 June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 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 and second 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 (1)

 

 

(173,430

)

 

 

4.89 - 7.25

 

 

 

6.56

 

Outstanding at March 31, 2024

 

 

88,445

 

 

$

4.89 - 6.79

 

 

$

6.37

 

Granted

 

 

—

 

 

 

 

—

 

 

 

—

 

Cancelled

 

 

(146

)

 

 

 

4.89

 

 

 

4.89

 

Vested (1)

 

 

—

 

 

 

 

—

 

 

 

—

 

Outstanding at June 30, 2024

 

 

88,299

 

 

$

4.89 - 6.79

 

 

$

6.37

 
(1)
The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024.
v3.24.2.u1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Schedule of Segment Data

The following tables present segment data as of and for the three and six months ended June 30, 2024.

Three Months Ended June 30, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

47,490

 

 

$

17,651

 

 

$

3,538

 

 

$

190

 

 

$

1,835

 

 

$

70,704

 

Total interest expense

 

 

10,960

 

 

 

6,106

 

 

 

1,056

 

 

 

25

 

 

 

2,689

 

 

 

20,836

 

Net interest income (loss)

 

 

36,530

 

 

 

11,545

 

 

 

2,482

 

 

 

165

 

 

 

(854

)

 

 

49,868

 

Provision (benefit) for credit losses

 

 

15,795

 

 

 

3,279

 

 

 

478

 

 

 

(975

)

 

 

—

 

 

 

18,577

 

Net interest income (loss) after loss provision

 

 

20,735

 

 

 

8,266

 

 

 

2,004

 

 

 

1,140

 

 

 

(854

)

 

 

31,291

 

Other income (loss), net

 

 

306

 

 

 

3

 

 

 

(14

)

 

 

334

 

 

 

470

 

 

 

1,099

 

Operating expenses

 

 

(11,236

)

 

 

(5,457

)

 

 

(1,437

)

 

 

(1,373

)

 

 

(492

)

 

 

(19,995

)

Net income (loss) before taxes

 

 

9,805

 

 

 

2,812

 

 

 

553

 

 

 

101

 

 

 

(876

)

 

 

12,395

 

Income tax (provision) benefit

 

 

(3,094

)

 

 

(802

)

 

 

(72

)

 

 

(14

)

 

 

200

 

 

 

(3,782

)

Net income (loss) after taxes

 

$

6,711

 

 

$

2,010

 

 

$

481

 

 

$

87

 

 

$

(676

)

 

$

8,613

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7,101

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

Total assets

 

 

1,451,947

 

 

 

758,840

 

 

 

105,548

 

 

 

7,511

 

 

 

437,030

 

 

 

2,760,876

 

Total funds borrowed

 

 

1,200,977

 

 

 

627,674

 

 

 

87,304

 

 

 

6,213

 

 

 

361,488

 

 

 

2,283,656

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.95

%

 

 

1.08

%

 

 

1.86

%

 

 

4.29

%

 

 

(0.61

)%

 

 

1.30

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

8.14

 

Return on average equity

 

 

13.05

 

 

 

7.00

 

 

 

12.09

 

 

 

25.69

 

 

 

(3.88

)

 

 

8.25

 

Interest yield

 

 

13.30

 

 

 

9.32

 

 

 

13.08

 

 

 

21.62

 

 

NM

 

 

 

11.52

 

Net interest margin, gross

 

 

10.23

 

 

 

6.10

 

 

 

9.18

 

 

 

18.78

 

 

NM

 

 

 

8.12

 

Net interest margin, net of allowance

 

 

10.69

 

 

 

6.25

 

 

 

9.57

 

 

 

31.77

 

 

NM

 

 

 

8.42

 

Reserve coverage

 

 

4.35

 

 

 

2.38

 

 

 

4.41

 

 

 

40.18

 

 

NM

 

 

 

3.76

 

Delinquency status (1)

 

 

0.41

 

 

 

0.17

 

 

 

7.52

 

 

 

—

 

 

NM

 

 

 

0.67

 

Charge-off (recovery) ratio (2)

 

 

2.99

 

 

 

1.49

 

 

 

—

 

 

 

(98.90

)

 

NM

 

 

 

2.20

 

 

(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.

Six Months Ended June 30, 2024

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

91,417

 

 

$

35,098

 

 

$

7,183

 

 

$

330

 

 

$

3,746

 

 

$

137,774

 

Total interest expense

 

 

20,605

 

 

 

11,740

 

 

 

2,154

 

 

 

53

 

 

 

5,437

 

 

 

39,989

 

Net interest income (loss)

 

 

70,812

 

 

 

23,358

 

 

 

5,029

 

 

 

277

 

 

 

(1,691

)

 

 

97,785

 

Provision (benefit) for credit losses

 

 

32,825

 

 

 

4,177

 

 

 

694

 

 

 

(1,918

)

 

 

—

 

 

 

35,778

 

Net interest income (loss) after loss provision

 

 

37,987

 

 

 

19,181

 

 

 

4,335

 

 

 

2,195

 

 

 

(1,691

)

 

 

62,007

 

Other income, net

 

 

556

 

 

 

5

 

 

 

4,188

 

 

 

973

 

 

 

780

 

 

 

6,502

 

Operating expenses

 

 

(19,523

)

 

 

(9,571

)

 

 

(2,422

)

 

 

(2,116

)

 

 

(4,588

)

 

 

(38,220

)

Net income (loss) before taxes

 

 

19,020

 

 

 

9,615

 

 

 

6,101

 

 

 

1,052

 

 

 

(5,499

)

 

 

30,289

 

Income tax (provision) benefit

 

 

(6,368

)

 

 

(3,219

)

 

 

(2,043

)

 

 

(352

)

 

 

1,842

 

 

 

(10,140

)

Net income (loss) after taxes

 

$

12,652

 

 

$

6,396

 

 

$

4,058

 

 

$

700

 

 

$

(3,657

)

 

$

20,149

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

17,125

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

1,497,428

 

 

$

773,184

 

 

$

110,197

 

 

$

3,482

 

 

$

1,299

 

 

$

2,385,590

 

Total assets

 

 

1,451,947

 

 

 

758,840

 

 

 

105,548

 

 

 

7,511

 

 

 

437,030

 

 

 

2,760,876

 

Total funds borrowed

 

 

1,200,977

 

 

 

627,674

 

 

 

87,304

 

 

 

6,213

 

 

 

361,488

 

 

 

2,283,656

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.87

%

 

 

1.72

%

 

 

7.68

%

 

 

14.89

%

 

 

(1.69

)%

 

 

1.55

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

9.89

 

Return on average equity

 

 

12.31

 

 

 

11.04

 

 

 

49.32

 

 

 

90.99

 

 

 

(10.64

)

 

 

9.70

 

Interest yield

 

 

13.20

 

 

 

9.29

 

 

 

12.97

 

 

 

18.78

 

 

NM

 

 

 

11.42

 

Net interest margin, gross

 

 

10.23

 

 

 

6.18

 

 

 

9.08

 

 

 

15.59

 

 

NM

 

 

 

8.11

 

Net interest margin, net of allowance

 

 

10.69

 

 

 

6.34

 

 

 

9.45

 

 

 

26.61

 

 

NM

 

 

 

8.40

 

Reserve coverage

 

 

4.35

 

 

 

2.38

 

 

 

4.41

 

 

 

40.18

 

 

NM

 

 

 

3.76

 

Delinquency status(1)

 

 

0.41

 

 

 

0.17

 

 

 

7.52

 

 

 

—

 

 

NM

 

 

 

0.67

 

Charge-off (recovery) ratio(2)

 

 

3.64

 

 

 

1.80

 

 

 

(0.04

)

 

 

(100.16

)

 

NM

 

 

 

2.68

 

 

(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 tables present segment data as of and for the three and six months ended June 30, 2023.

Three Months June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

41,109

 

 

$

15,292

 

 

$

2,814

 

 

$

787

 

 

$

1,724

 

 

$

61,726

 

Total interest expense

 

 

7,580

 

 

 

4,194

 

 

 

852

 

 

 

46

 

 

 

2,363

 

 

 

15,035

 

Net interest income (loss)

 

 

33,529

 

 

 

11,098

 

 

 

1,962

 

 

 

741

 

 

 

(639

)

 

 

46,691

 

Provision (benefit) for credit losses

 

 

10,135

 

 

 

3,739

 

 

 

(113

)

 

 

(5,311

)

 

 

26

 

 

 

8,476

 

Net interest income (loss) after loss provision

 

 

23,394

 

 

 

7,359

 

 

 

2,075

 

 

 

6,052

 

 

 

(665

)

 

 

38,215

 

Other income, net

 

 

—

 

 

 

2

 

 

 

343

 

 

 

1,304

 

 

 

293

 

 

 

1,942

 

Operating expenses

 

 

(8,444

)

 

 

(4,388

)

 

 

(1,147

)

 

 

(743

)

 

 

(4,281

)

 

 

(19,003

)

Net income (loss) before taxes

 

 

14,950

 

 

 

2,973

 

 

 

1,271

 

 

 

6,613

 

 

 

(4,653

)

 

 

21,154

 

Income tax (provision) benefit

 

 

(3,867

)

 

 

(769

)

 

 

(329

)

 

 

(1,713

)

 

 

1,206

 

 

 

(5,472

)

Net income (loss) after taxes

 

$

11,083

 

 

$

2,204

 

 

$

942

 

 

$

4,900

 

 

$

(3,447

)

 

$

15,682

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,512

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

14,170

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.59

%

 

 

1.28

%

 

 

3.76

%

 

 

100.63

%

 

 

(3.69

)%

 

 

2.60

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

18.24

 

Return on average equity

 

 

22.94

 

 

 

8.19

 

 

 

23.97

 

 

 

641.63

 

 

 

(22.83

)

 

 

16.52

 

Interest yield

 

 

13.03

 

 

 

8.79

 

 

 

11.87

 

 

 

83.55

 

 

NM

 

 

 

11.21

 

Net interest margin, gross

 

 

10.63

 

 

 

6.38

 

 

 

8.28

 

 

 

78.67

 

 

NM

 

 

 

8.48

 

Net interest margin, net of allowance

 

 

11.08

 

 

 

6.53

 

 

 

8.54

 

 

 

166.23

 

 

NM

 

 

 

8.77

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

NM

 

 

 

3.48

 

Delinquency status (1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

NM

 

 

 

0.29

 

Charge-off (recovery) ratio (2)

 

 

1.86

 

 

 

1.12

 

 

 

3.80

 

 

 

(525.21

)

 

NM

 

 

 

0.74

 

 

(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.

 

Six Months Ended June 30, 2023

 

Consumer Lending

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Recreation

 

 

Home
Improvement

 

 

Commercial
Lending

 

 

Taxi Medallion
Lending

 

 

Corporate and Other Investments

 

 

Consolidated

 

Total interest income

 

$

79,008

 

 

$

28,941

 

 

$

5,515

 

 

$

1,097

 

 

$

3,007

 

 

$

117,568

 

Total interest expense

 

 

13,484

 

 

 

7,473

 

 

 

1,661

 

 

 

113

 

 

 

4,544

 

 

 

27,275

 

Net interest income (loss)

 

 

65,524

 

 

 

21,468

 

 

 

3,854

 

 

 

984

 

 

 

(1,537

)

 

 

90,293

 

Provision (benefit) for credit losses

 

 

17,886

 

 

 

6,820

 

 

 

214

 

 

 

(12,395

)

 

 

(11

)

 

 

12,514

 

Net interest income (loss) after loss provision

 

 

47,638

 

 

 

14,648

 

 

 

3,640

 

 

 

13,379

 

 

 

(1,526

)

 

 

77,779

 

Other income, net

 

 

—

 

 

 

3

 

 

 

614

 

 

 

2,923

 

 

 

485

 

 

 

4,025

 

Operating expenses

 

 

(16,247

)

 

 

(8,382

)

 

 

(1,567

)

 

 

(2,770

)

 

 

(8,429

)

 

 

(37,395

)

Net income (loss) before taxes

 

 

31,391

 

 

 

6,269

 

 

 

2,687

 

 

 

13,532

 

 

 

(9,470

)

 

 

44,409

 

Income tax (provision) benefit

 

 

(8,380

)

 

 

(1,674

)

 

 

(718

)

 

 

(3,612

)

 

 

2,530

 

 

 

(11,854

)

Net income (loss) after taxes

 

$

23,011

 

 

$

4,595

 

 

$

1,969

 

 

$

9,920

 

 

$

(6,940

)

 

$

32,555

 

Income attributable to the non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,024

 

Total net income attributable to Medallion Financial Corp.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

29,531

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, gross

 

$

1,331,114

 

 

$

728,468

 

 

$

92,637

 

 

$

3,448

 

 

$

1,331

 

 

$

2,156,998

 

Total assets

 

 

1,294,925

 

 

 

718,383

 

 

 

99,713

 

 

 

18,724

 

 

 

387,392

 

 

 

2,519,137

 

Total funds borrowed

 

 

1,062,309

 

 

 

589,335

 

 

 

81,801

 

 

 

15,360

 

 

 

317,802

 

 

 

2,066,607

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

3.84

%

 

 

1.39

%

 

 

3.94

%

 

 

94.20

%

 

 

(3.70

)%

 

 

2.79

%

Return on average stockholders' equity

 

*

 

 

*

 

 

*

 

 

*

 

 

*

 

 

 

19.45

 

Return on average equity

 

 

24.13

 

 

 

8.76

 

 

 

24.74

 

 

 

590.25

 

 

 

(23.24

)

 

 

17.49

 

Interest yield

 

 

12.93

 

 

 

8.66

 

 

 

11.71

 

 

 

28.80

 

 

NM

 

 

 

11.01

 

Net interest margin, gross

 

 

10.72

 

 

 

6.43

 

 

 

8.18

 

 

 

25.84

 

 

NM

 

 

 

8.45

 

Net interest margin, net of allowance

 

 

11.18

 

 

 

6.57

 

 

 

8.43

 

 

 

73.52

 

 

NM

 

 

 

8.75

 

Reserve coverage

 

 

4.07

 

 

 

2.26

 

 

 

2.72

 

 

 

52.76

 

 

NM

 

 

 

3.48

 

Delinquency status(1)

 

 

0.39

 

 

 

0.16

 

 

 

0.08

 

 

 

—

 

 

NM

 

 

 

0.29

 

Charge-off (recovery) ratio (2)

 

 

2.57

 

 

 

0.97

 

 

 

1.89

 

 

 

(124.01

)

 

NM

 

 

 

1.51

 

 

(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.
v3.24.2.u1
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 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.

 

June 30, 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)

 

$

157,961

 

 

$

157,961

 

 

$

149,845

 

 

$

149,845

 

Equity investments

 

 

10,795

 

 

 

10,795

 

 

 

11,430

 

 

 

11,430

 

Investment securities

 

 

55,830

 

 

 

55,830

 

 

 

54,282

 

 

 

54,282

 

Loans receivable

 

 

2,295,802

 

 

 

2,284,754

 

 

 

2,131,651

 

 

 

2,131,651

 

Accrued interest receivable (2)

 

 

13,299

 

 

 

13,299

 

 

 

13,538

 

 

 

13,538

 

Equity securities (3)

 

 

1,722

 

 

 

1,722

 

 

 

1,748

 

 

 

1,748

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Funds borrowed

 

 

2,283,656

 

 

 

2,249,036

 

 

 

2,118,689

 

 

 

2,118,689

 

Accrued interest payable (2)

 

 

7,945

 

 

 

7,945

 

 

 

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 June 30, 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.
v3.24.2.u1
Fair Value of Assets and liabilities (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023.

June 30, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

—

 

 

$

1,250

 

 

$

—

 

 

$

1,250

 

Investment securities

 

 

—

 

 

 

55,830

 

 

 

—

 

 

 

55,830

 

Equity securities

 

 

1,722

 

 

 

—

 

 

 

—

 

 

 

1,722

 

Total (1)

 

$

1,722

 

 

$

57,080

 

 

$

—

 

 

$

58,802

 
(1)
Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 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 June 30, 2024 and December 31, 2023.

June, 2024
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

10,795

 

 

$

10,795

 

Nonaccrual loans

 

 

—

 

 

 

—

 

 

 

22,248

 

 

 

22,248

 

Loan collateral in process of foreclosure

 

 

—

 

 

 

—

 

 

 

9,359

 

 

 

9,359

 

Total

 

$

—

 

 

$

—

 

 

$

42,402

 

 

$

42,402

 

 

December 31, 2023
(Dollars in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

—

 

 

$

—

 

 

$

11,430

 

 

$

11,430

 

Nonaccrual 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 June 30, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)

 

Fair Value
at June 30, 2024

 

 

Valuation Techniques

 

Unobservable Inputs

 

Range
(Weighted Average)

Equity investments

 

$

10,522

 

 

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

Nonaccrual loans

 

 

22,248

 

 

Market approach

 

Historical and actual loss experience

 

0.00% - 23.06%

 

 

 

 

 

 

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value

 

N/A

Loan collateral in process of foreclosure

 

 

9,359

 

 

Market approach

 

Transfer prices (2)

 

$0.0 - 79.5

 

 

 

 

 

 

 

Collateral value (3)

 

$2.5 - $51.3
(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

Nonaccrual 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.
v3.24.2.u1
Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)
$ in Millions
Jun. 30, 2024
USD ($)
Medallion Financing Trust I [Member]  
Subsidiary or Equity Method Investee [Line Items]  
Aggregate assets of trust $ 34.0
v3.24.2.u1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 01, 2023
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 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     $ 1,300,000      
Non-marketable securities   10,800,000     10,800,000   $ 11,400,000  
Unrealized appreciation   4,700,000     4,700,000      
Impact of equity investment   4,300,000     4,300,000      
Past Due   69,714,000     69,714,000   81,013,000  
Notes receivable net   2,340,968,000     2,340,968,000   2,176,412,000  
Purchased of equity securities with readily determinable fair value               $ 2,000,000
Investment, Type [Extensible Enumeration]               us-gaap:EquitySecuritiesMember
Equity securities, fair value   1,700,000     1,700,000   1,700,000  
Net loan origination costs         44,600,000   40,000,000  
Net Amortization to income   2,300,000   $ 2,400,000 4,300,000 $ 4,300,000    
Principal portion of loans serviced, fair value   $ 14,000,000     $ 14,000,000   14,000,000  
Intangible assets useful life   20 years     20 years      
Goodwill   $ 150,803,000     $ 150,803,000   150,803,000  
Intangible assets, net   19,869,000     19,869,000   20,591,000  
Amortization of intangible assets   362,000   363,000 723,000 723,000    
Depreciation and amortization   100,000   100,000 200,000 200,000    
Amortization expense   900,000   800,000 1,800,000 $ 1,500,000    
Deferred costs   8,600,000     $ 8,600,000   $ 8,500,000  
Potential dilutive common shares excluded from EPS computation         101,350 644,478    
Stock based compensation award, Amount   $ 1,600,000   $ 1,200,000 $ 3,100,000 $ 2,200,000    
Stock based compensation award per common share   $ 0.07   $ 0.05 $ 0.13 $ 0.1    
Unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units   $ 8,400,000     $ 8,400,000      
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period         11 months      
Tier 1 leverage capital to total assets ratio   15.00%     15.00%      
Tier 1 leverage capital ratio   16.10%     16.10%      
Capital conversation buffer         2.50%   2.50%  
New York Taxi Medallion [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Notes receivable net   $ 79,500     $ 79,500      
Consumer Loan [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Increase in allowance for credit losses on loans $ 13,700,000              
Commercial Loans [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Financing receivable allowance for credit loss $ 9,900,000              
Restricted Shares [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Stock based compensation award   0 296,178   296,178 316,483 399,793  
Restricted Stock Units [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Stock based compensation award         92,350 0    
Performance Shares [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Stock based compensation award   215,687     215,687   296,444  
Stock based compensation award         215,687 296,444    
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   $ 15,639,000     $ 15,639,000   16,837,000  
90+ [Member] | Loans [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Past Due   $ 15,600,000     $ 15,600,000   $ 16,800,000  
Total loans more than 90 days past due ,percentage   0.67%     0.67%   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     3 years      
Maximum [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Interest bearing loan term         6 years      
Investment securities Amortized to interest income   $ 100,000   $ 100,000 $ 100,000 $ 100,000    
Estimated useful life of fixed assets   10 years     10 years      
v3.24.2.u1
Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Equity Securities, FV-NI, Gain (Loss) [Abstract]        
Net gains (losses) recognized during the period on equity securities $ (7) $ (28) $ (26) $ 0
Less: Net gains (losses) recognized during the period on equity securities sold during the period 0 0 0 0
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (7) $ (28) $ (26) $ 0
v3.24.2.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  
v3.24.2.u1
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Investments In Loans [Line Items]    
Intangibles assets $ 19,869 $ 20,591
Intellectual Property [Member]    
Investments In Loans [Line Items]    
Intangibles assets 15,125 15,675
Contractor Relationships [Member]    
Investments In Loans [Line Items]    
Intangibles assets $ 4,744 $ 4,916
v3.24.2.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 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Accounting Policies [Abstract]        
Net income attributable to common stockholders $ 7,101 $ 14,170 $ 17,125 $ 29,531
Weighted average common shares outstanding applicable to basic EPS 22,598,102 22,488,463 22,619,743 22,416,089
Effect of restricted stock grants 404,499 276,420 507,416 379,924
Effect of dilutive stock options 163,340 43,567 209,067 96,342
Effect of performance stock unit grants 287,221 45,477 272,878 22,739
Adjusted weighted average common shares outstanding applicable to diluted EPS 23,453,162 22,853,927 23,609,104 22,915,094
Basic net income per share $ 0.31 $ 0.63 $ 0.76 $ 1.32
Diluted net income per share $ 0.3 $ 0.62 $ 0.73 $ 1.29
v3.24.2.u1
Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 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 $ 306,186 $ 293,774
Tier 1 capital 374,974 362,561
Total capital 404,742 390,153
Average assets 2,322,625 2,232,816
Risk-weighted assets $ 2,326,972 $ 2,155,641
Leverage ratio [1] 0.161 0.162
Common equity Tier 1 capital ratio [2] 0.132 0.136
Tier 1 capital ratio [3] 0.161 0.168
Total capital ratio [3] 0.174 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.
v3.24.2.u1
Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 62,189 $ 60,573
Gross Unrealized Gains 54 21
Gross Unrealized Losses (6,413) (6,312)
Fair Value 55,830 54,282
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 43,255 44,653
Gross Unrealized Gains 2 0
Gross Unrealized Losses (4,763) (4,791)
Fair Value 38,494 39,862
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 16,751 13,733
Gross Unrealized Gains 52 21
Gross Unrealized Losses (1,620) (1,501)
Fair Value 15,183 12,253
Agency Bonds [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,183 2,187
Gross Unrealized Gains 0 0
Gross Unrealized Losses (30) (20)
Fair Value $ 2,153 $ 2,167
v3.24.2.u1
Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Available-for-sale Securities, Debt Maturities [Abstract]    
Amortized Cost, due in one year or less $ 2,039  
Amortized Cost, due after one year through five years 5,820  
Amortized Cost, due after five years through ten years 8,380  
Amortized Cost, due after ten years 45,950  
Amortized Cost 62,189 $ 60,573
Fair Value, due in one year or less 1,996  
Fair Value, due after one year through five years 5,608  
Fair Value, due after five years through ten years 7,370  
Fair Value, due after ten years 40,856  
Fair Value $ 55,830 $ 54,282
v3.24.2.u1
Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months $ (100) $ (282)
Fair Value, Less than Twelve Months 5,118 10,636
Gross Unrealized Losses, Twelve Months and Over (6,313) (6,030)
Fair Value, Twelve Months and Over 48,182 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 (30) (78)
Fair Value, Less than Twelve Months 1,988 5,797
Gross Unrealized Losses, Twelve Months and Over (4,733) (4,714)
Fair Value, Twelve Months and Over 36,024 33,971
State and Municipalities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Losses, Less than Twelve Months (70) (204)
Fair Value, Less than Twelve Months 3,130 4,839
Gross Unrealized Losses, Twelve Months and Over (1,550) (1,296)
Fair Value, Twelve Months and Over 10,005 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 (30) (20)
Fair Value, Twelve Months and Over $ 2,153 $ 2,167
v3.24.2.u1
Investment Securities - Additional Information (Detail) - Securities
Jun. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Abstract]    
Number of Securities 60 60
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 2,385,590 $ 2,215,886   $ 2,156,998    
Allowance for credit losses (89,788) [1] (84,235) [2] $ (83,827) [2] (74,971) [1] $ (70,280) [2] $ (63,845) [2]
Net loans receivable 2,295,802 2,131,651        
Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 2,385,590 2,215,886 2,228,426 2,156,998 1,984,180 1,916,953
Allowance for credit losses 89,788 84,235        
Net loans receivable $ 2,295,802 $ 2,131,651        
Percentage of total gross loans 100.00% 100.00%        
Recreation [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,497,428 $ 1,336,226        
Allowance for credit losses (65,140) (57,532)        
Recreation [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,497,428 $ 1,336,226 1,365,165 1,331,114 1,213,380 1,183,512
Percentage of total gross loans 63.00% 60.00%        
Home Improvement [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 773,184 $ 760,617        
Allowance for credit losses (18,388) (21,019)        
Home Improvement [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 773,184 $ 760,617 752,262 728,468 669,642 626,399
Percentage of total gross loans 32.00% 34.00%        
Commercial [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 110,197 $ 114,827        
Allowance for credit losses (4,861) (4,148)        
Commercial [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 110,197 $ 114,827 106,570 92,637 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 $ 3,482 $ 3,663        
Allowance for credit losses (1,399) (1,536)        
Taxi Medallion [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 3,482 3,663 3,560 3,448 4,059  
Strategic Partnership [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans 1,299 553        
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]            
Student Loan Portfolio By Program [Line Items]            
Total gross loans $ 1,299 $ 553 $ 869 $ 1,331 $ 1,770 $ 572
[1] As of June 30, 2024 and June 30, 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.
v3.24.2.u1
Loans and Allowance for Credit Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     $ 2,215,886  
Charge-offs $ (18,690) $ (12,862) (41,689) $ (30,959)
Transfer to loan collateral in process of foreclosure, net (5,669) (4,150) (11,094) (10,654)
Amortization of origination fees, net     (4,298) (4,667)
Paid-in-kind interest     1,263 644
Gross loans, ending balance 2,385,590 2,156,998 2,385,590 2,156,998
Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     1,336,226  
Charge-offs (14,627) (9,166) (32,728) (21,756)
Transfer to loan collateral in process of foreclosure, net (5,669) (3,991) (11,094) (8,348)
Gross loans, ending balance 1,497,428   1,497,428  
Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     760,617  
Charge-offs (4,063) (2,575) (8,961) (4,489)
Gross loans, ending balance 773,184   773,184  
Commercial [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     114,827  
Charge-offs 0 (900) 0 (900)
Gross loans, ending balance 110,197   110,197  
Taxi Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     3,663  
Charge-offs 0 (221) 0 (3,814)
Transfer to loan collateral in process of foreclosure, net 0 (159) 0 (2,306)
Gross loans, ending balance 3,482   3,482  
Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     553  
Gross loans, ending balance 1,299   1,299  
Bank Holding Company Accounting [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 2,228,426 1,984,180 2,215,886 1,916,953
Loan originations 309,091 346,266 482,178 573,557
Principal receipts, sales, and maturities (132,192) (160,879) (265,550) (297,988)
Charge-offs (18,690) (12,862) (41,689) (30,959)
Transfer to loan collateral in process of foreclosure, net (5,669) (4,150) (11,094) (10,654)
Amortization of origination fees, net (2,291) (2,494) (4,298) (4,667)
Origination costs, net 6,260 6,557 8,894 10,112
Paid-in-kind interest 655 380 1,263 644
Gross loans, ending balance 2,385,590 2,156,998 2,385,590 2,156,998
Bank Holding Company Accounting [Member] | Recreation [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 1,365,165 1,213,380 1,336,226 1,183,512
Loan originations 209,563 190,007 315,328 291,688
Principal receipts, sales, and maturities (61,553) (63,463) (115,589) (119,680)
Charge-offs (14,627) (9,166) (32,728) (21,756)
Transfer to loan collateral in process of foreclosure, net (5,669) (3,991) (11,094) (8,348)
Amortization of origination fees, net (3,214) (3,159) (6,166) (5,918)
Origination costs, net 7,763 7,506 11,451 11,616
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 1,497,428 1,331,114 1,497,428 1,331,114
Bank Holding Company Accounting [Member] | Home Improvement [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 752,262 669,642 760,617 626,399
Loan originations 67,990 117,035 119,566 212,016
Principal receipts, sales, and maturities (42,492) (55,350) (97,409) (105,205)
Charge-offs (4,063) (2,575) (8,961) (4,489)
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination fees, net 913 665 1,851 1,251
Origination costs, net (1,426) (949) (2,480) (1,504)
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance 773,184 728,468 773,184 728,468
Bank Holding Company Accounting [Member] | Commercial [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 106,570 95,329 114,827 92,899
Loan originations 7,000 4,750 7,000 7,750
Principal receipts, sales, and maturities (3,961) (6,922) (12,833) (7,756)
Charge-offs 0 (900) 0 (900)
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination fees, net 10 0 17 0
Origination costs, net (77) 0 (77) 0
Paid-in-kind interest 655 380 1,263 644
Gross loans, ending balance 110,197 92,637 110,197 92,637
Bank Holding Company Accounting [Member] | Taxi Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 3,560 4,059 3,663  
Loan originations 250 1,300    
Principal receipts, sales, and maturities (328) (1,531)    
Charge-offs 0 (221)    
Transfer to loan collateral in process of foreclosure, net 0 (159)    
Amortization of origination fees, net 0 0    
Origination costs, net 0 0    
Paid-in-kind interest 0 0    
Gross loans, ending balance 3,482 3,448 3,482 3,448
Bank Holding Company Accounting [Member] | Medallion [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance     3,663 13,571
Loan originations     250 1,923
Principal receipts, sales, and maturities     (431) (5,926)
Charge-offs     0 (3,814)
Transfer to loan collateral in process of foreclosure, net     0 (2,306)
Amortization of origination fees, net     0
Origination costs, net     0
Paid-in-kind interest     0 0
Gross loans, ending balance 3,482 3,448 3,482 3,448
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]        
Schedule Of Gross Real Estate And Loan Activity [Line Items]        
Gross loans, beginning balance 869 1,770 553 572
Loan originations 24,288 33,174 40,034 60,180
Principal receipts, sales, and maturities (23,858) (33,613) (39,288) (59,421)
Charge-offs 0 0 0 0
Transfer to loan collateral in process of foreclosure, net 0 0 0 0
Amortization of origination fees, net 0 0 0 0
Origination costs, net 0 0 0 0
Paid-in-kind interest 0 0 0 0
Gross loans, ending balance $ 1,299 $ 1,331 $ 1,299 $ 1,331
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance [1] $ 83,827 $ 70,280 $ 84,235 $ 63,845
Charge-offs (18,690) (12,862) (41,689) (30,959)
Total recoveries 6,074 9,077 11,464 15,859
Net charge-offs [2] (12,616) (3,785) (30,225) (15,100)
Provision for credit losses 18,577 8,476 35,778 12,514
Allowance for credit losses - ending balance [3] 89,788 74,971 89,788 74,971
Accounting Standards Update 2016-13 [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance 0 0 0 13,712
Recreation [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     57,532  
Charge-offs (14,627) (9,166) (32,728) (21,756)
Total recoveries 3,962 3,282 7,510 6,053
Allowance for credit losses - ending balance 65,140   65,140  
Home Improvement [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     21,019  
Charge-offs (4,063) (2,575) (8,961) (4,489)
Total recoveries 1,243 627 2,154 1,259
Allowance for credit losses - ending balance 18,388   18,388  
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     4,148  
Charge-offs 0 (900) 0 (900)
Total recoveries 0 0 20 10
Allowance for credit losses - ending balance 4,861   4,861  
Taxi Medallion [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Allowance for credit losses - beginning balance     1,536  
Charge-offs 0 (221) 0 (3,814)
Total recoveries 869 $ 5,168 1,780 $ 8,537
Allowance for credit losses - ending balance $ 1,399   $ 1,399  
[1] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.
[2] As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
[3] As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Mar. 31, 2024
Dec. 31, 2023
 [1]
Mar. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 9,359 [1] $ 16,803 $ 9,359 [1] $ 16,803 $ 10,198 $ 11,772 $ 20,467 $ 21,819
Net charge-offs [2] (12,616) $ (3,785) (30,225) (15,100)        
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 173,300   173,300          
New York Taxi Medallion [Member]                
Financing Receivable, Allowance for Credit Losses [Line Items]                
Cumulative charges of loans and loan collateral process of foreclosure $ 106,000   $ 106,000          
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.
[2] As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Gross Charge Offs (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Financing Receivable, Past Due [Line Items]        
2024 $ 139 $ 83 $ 139 $ 83
2023 5,607 5,116 10,894 9,628
2022 6,643 2,817 15,141 6,515
2021 2,497 943 7,157 2,757
2020 1,105 1,909 2,681 3,594
Prior 2,699 1,994 5,677 8,382
Total 18,690 12,862 41,689 30,959
Recreation [Member]        
Financing Receivable, Past Due [Line Items]        
2024 99 44 99 44
2023 4,099 3,568 7,862 7,176
2022 5,049 2,344 11,867 5,414
2021 1,990 785 5,487 2,456
2020 986 918 2,275 2,472
Prior 2,404 1,507 5,138 4,194
Total 14,627 9,166 32,728 21,756
Home Improvement [Member]        
Financing Receivable, Past Due [Line Items]        
2024 40 39 40 39
2023 1,508 1,548 3,032 2,452
2022 1,594 473 3,274 1,101
2021 507 158 1,670 301
2020 119 91 406 222
Prior 295 266 539 374
Total 4,063 2,575 8,961 4,489
Commercial Loan [Member]        
Financing Receivable, Past Due [Line Items]        
2024 0 0 0 0
2023 0 0 0
2022 0 0 0 0
2021 0 0 0 0
2020 0 900 0 900
Prior 0 0 0 0
Total 0 900 0 900
Taxi Medallion [Member]        
Financing Receivable, Past Due [Line Items]        
2024 0 0 0 0
2023 0 0 0 0
2022 0 0 0 0
2021 0 0 0 0
2020 0 0 0 0
Prior 0 221 0 3,814
Total $ 0 $ 221 $ 0 $ 3,814
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
 [2]
Dec. 31, 2023
Jun. 30, 2023
 [1]
Mar. 31, 2023
 [2]
Dec. 31, 2022
 [2]
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 89,788 [1] $ 83,827 $ 84,235 [2] $ 74,971 $ 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 403.58%   324.31%      
Recreation [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 65,140   $ 57,532      
Percentage of Allowance 73.00%   68.00%      
Allowance as a Percent of Loan Category 4.35%   4.31%      
Allowance as a Percent of Nonaccrual 292.79%   221.50%      
Home Improvement [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 18,388   $ 21,019      
Percentage of Allowance 20.00%   25.00%      
Allowance as a Percent of Loan Category 2.38%   2.76%      
Allowance as a Percent of Nonaccrual 82.65%   80.92%      
Commercial [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 4,861   $ 4,148      
Percentage of Allowance 5.00%   5.00%      
Allowance as a Percent of Loan Category 4.41%   3.61%      
Allowance as a Percent of Nonaccrual 21.85%   15.97%      
Taxi Medallion [Member]            
Financing Receivable Recorded Investment Past Due [Line Items]            
Amount $ 1,399   $ 1,536      
Percentage of Allowance 2.00%   2.00%      
Allowance as a Percent of Loan Category 40.18%   41.93%      
Allowance as a Percent of Nonaccrual 6.29%   5.91%      
[1] As of June 30, 2024 and June 30, 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.
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Summary of Total Nonaccrual Loans and Foregone Interest (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Receivables [Abstract]    
Total nonaccrual loans $ 22,248 $ 25,974
Interest foregone quarter to date 464 417
Amount of foregone interest applied to principal in the quarter 72 59
Interest foregone year to date 662 928
Amount of foregone interest applied to principal for the year 133 238
Interest foregone life-to-date 3,162 2,119
Amount of foregone interest applied to principal life-to-date $ 814 $ 822
Percentage of nonaccrual loans to gross loan portfolio 0.90% 1.20%
Percentage of allowance for credit losses to nonaccrual loans 403.60% 324.30%
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Performance Status of Loan (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 2,385,590 $ 2,215,886 $ 2,156,998
Percentage of Nonperforming to Total 0.93% 1.17%  
Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 2,363,342 $ 2,189,912  
Non - Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans 22,248 25,974  
Recreation [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 1,497,428 $ 1,336,226  
Percentage of Nonperforming to Total 0.43% 0.72%  
Recreation [Member] | Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 1,490,965 $ 1,326,567  
Recreation [Member] | Non - Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans 6,463 9,659  
Home Improvement [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 773,184 $ 760,617  
Percentage of Nonperforming to Total 0.17% 0.20%  
Home Improvement [Member] | Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 771,881 $ 759,128  
Home Improvement [Member] | Non - Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans 1,303 1,489  
Commercial [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 110,197 $ 114,827  
Percentage of Nonperforming to Total 9.98% 9.72%  
Commercial [Member] | Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 99,197 $ 103,664  
Commercial [Member] | Non - Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans 11,000 11,163  
Taxi Medallion [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 3,482 $ 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 3,482 3,663  
Strategic Partnership [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 1,299 $ 553  
Percentage of Nonperforming to Total 0.00% 0.00%  
Strategic Partnership [Member] | Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 1,299 $ 553  
Strategic Partnership [Member] | Non - Performing [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Status of loans $ 0 $ 0  
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due $ 69,714 $ 81,013
Total 2,340,968 2,176,412
Accruing 0 0
Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 2,271,254 2,095,399
30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 38,804 44,419
60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 15,271 19,757
90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 15,639 16,837
Recreation [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 54,310 64,416
Total 1,448,509 1,292,591
Accruing 0 0
Recreation [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,394,199 1,228,175
Recreation [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 35,094 40,282
Recreation [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 13,278 15,039
Recreation [Member] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 5,938 9,095
Home Improvement [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 6,935 8,000
Total 777,266 764,069
Accruing 0 0
Home Improvement [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 770,331 756,069
Home Improvement [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,637 3,936
Home Improvement [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,993 2,562
Home Improvement [Member] | 90+ [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,305 1,502
Commercial Loans [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 8,396 8,396
Total 110,412 115,536
Accruing 0 0
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 102,016 107,140
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 73 201
Total 3,482 3,663
Accruing 0 0
Taxi Medallion [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 3,409 3,462
Taxi Medallion [Member] | 30-59 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 73 201
Taxi Medallion [Member] | 60-89 [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 0 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 1,299 553
Accruing 0 0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]    
Financing Receivable Recorded Investment Past Due [Line Items]    
Past Due 1,299 553
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
v3.24.2.u1
Loans and Allowance for Credit Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Receivables [Abstract]    
Capitalized loan origination costs $ 44.6 $ 40.0
v3.24.2.u1
Loans and Allowance for Credit Losses - Additional Information (Detail)
Jun. 30, 2024
Dec. 31, 2023
Receivables [Abstract]    
Weighted average loan-to-value ratio 174.00% 183.00%
v3.24.2.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 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance $ 10,198 $ 20,467 $ 11,772 [1] $ 21,819
Transfer from loans, net 5,669 4,150 11,094 10,654
Sales 0 (3,136) (39) (5,346)
Cash payments received (3,106) (2,645) (6,826) (5,962)
Collateral valuation adjustments (3,402) (2,033) (6,642) (4,362)
Loans collateral in process of foreclosure - ending balance 9,359 [1] 16,803 9,359 [1] 16,803
Recreation [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 1,475 1,461 1,779 1,376
Transfer from loans, net 5,669 3,991 11,094 8,348
Sales 0 (2,583) 0 (4,778)
Cash payments received (2,225) (128) (4,672) (128)
Collateral valuation adjustments (3,478) (2,012) (6,760) (4,089)
Loans collateral in process of foreclosure - ending balance 1,441 729 1,441 729
Taxi Medallion [Member]        
Loans and Leases Receivable Disclosure [Line Items]        
Loans collateral in process of foreclosure - beginning balance 8,723 19,006 9,993 20,443
Transfer from loans, net 0 159 0 2,306
Sales 0 (553) (39) (568)
Cash payments received (881) (2,517) (2,154) (5,834)
Collateral valuation adjustments 76 (21) 118 (273)
Loans collateral in process of foreclosure - ending balance $ 7,918 $ 16,074 $ 7,918 $ 16,074
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.
v3.24.2.u1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
2025 $ 904,711  
2026 438,027  
2027 437,522  
2028 172,267  
2029 241,129  
Thereafter 88,250  
Long term debt [1] $ 2,281,906 $ 2,117,189
Interest Rate [2] 3.87%  
Deposits [Member]    
Debt Instrument [Line Items]    
2025 [3] $ 867,211  
2026 [3] 391,277  
2027 [3] 433,022  
2028 [3] 118,517  
2029 [3] 199,629  
Thereafter [3] 0  
Long term debt [1],[3] $ 2,009,656 1,869,439
Interest Rate [2],[3] 3.50%  
Retail And Privately Placed Notes [Member]    
Debt Instrument [Line Items]    
2025 $ 0  
2026 31,250  
2027 0  
2028 53,750  
2029 39,000  
Thereafter 17,500  
Long term debt [1] $ 141,500 139,500
Interest Rate [2] 8.10%  
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] 7.73%  
Federal Reserve and Other Borrowings [Member]    
Debt Instrument [Line Items]    
2025 $ 25,000  
2026 0  
2027 0  
2028 0  
2029 0  
Thereafter 0  
Long term debt [1] $ 25,000 $ 0
Interest Rate [2] 5.50%  
[1] Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.
[2] Weighted average contractual rate as of June 30, 2024.
[3] Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 2024 and December 31, 2023.
v3.24.2.u1
Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Debt Disclosure [Abstract]    
Deferred costs $ 8.6 $ 8.5
Reserve deposits $ 1.8 $ 1.5
v3.24.2.u1
Funds Borrowed - Additional Information (Detail) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 6 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
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 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                 $ 2,011,406   $ 2,011,406                  
Listing services deposits from other financial institutions.                 16,100   16,100   $ 11,800              
Retail savings deposit balance                 10,900   10,900   $ 14,900              
Aggregate principal amount                                 $ 6,000      
Maturity date   Sep. 30, 2028   Feb. 28, 2026                                
Principal amount outstanding repaid                     3,000                  
Gain loss on sales of loans net                 $ 242 $ 1,306 $ 830 $ 3,161                
Issue of common stock                 29,262,204   29,262,204   29,051,800              
Preferred securities repurchased from a third party investor         $ 2,000                              
Long-term debt [1]                 $ 230,803   $ 230,803   $ 235,544              
Investment securities pledged                 55,830   55,830   $ 54,282              
Medallion Capital, Inc.                                        
Debt Instrument [Line Items]                                        
Debt instrument face amount $ 18,500   $ 20,000                                  
Long-term debt 18,500               2,200   2,200                  
Debt instrument leverage fee 200   200                                  
Debt instrument, additional leverage fee 400   $ 400                                  
Line Of Credit Facility Drawn Amount                 9,800   9,800                  
Line Of Credit Facility Drawable Amount                 8,000   8,000                  
Long term debt under capital infusion $ 9,300               1,100   $ 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   $ 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%   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]                                        
Line of credit facility, amount outstanding                 $ 0   $ 0                  
Federal reserve discount window and other borrowings [Member]                                        
Debt Instrument [Line Items]                                        
Borrowings                 25,000   25,000                  
Home improvement loans pledged                 99,200   $ 99,200                  
Pledged securities advance rate of book value                     40.00%                  
Borrowing capacity                 40,100   $ 40,100                  
Commercial Banks [Member]                                        
Debt Instrument [Line Items]                                        
Line of credit outstanding                     0                  
Borrowing capacity                 75,000   $ 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               $ 8,500   $ 30,000    
Debt instrument interest rate Percentage   9.25%   7.25%       7.50%                   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                          
Maximum [Member]                                        
Debt Instrument [Line Items]                                        
Extended maturity date                     Jun. 30, 2039                  
Maximum [Member] | Privately Placed Notes [Member]                                        
Debt Instrument [Line Items]                                        
Aggregate principal amount                 $ 17,500   $ 17,500                  
Debt instrument interest rate Percentage                 9.00%   9.00%                  
Minimum [Member]                                        
Debt Instrument [Line Items]                                        
Time deposits                 $ 250,000   $ 250,000                  
Extended maturity date                     Dec. 31, 2033                  
Minimum [Member] | Privately Placed Notes [Member]                                        
Debt Instrument [Line Items]                                        
Aggregate principal amount                 $ 12,500   $ 12,500                  
Debt instrument interest rate Percentage                 8.875%   8.875%                  
Brokerage [Member] | Maximum [Member]                                        
Debt Instrument [Line Items]                                        
Average brokerage fee percentage in relation to the maturity of deposits                     0.15%                  
[1] Includes $4.0 million and $4.2 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.
v3.24.2.u1
Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail)
$ in Thousands
Jun. 30, 2024
USD ($)
Debt Disclosure [Abstract]  
Three months or less $ 237,363
Over three months through six months 151,130
Over six months through one year 478,718
Over one year 1,142,445
Deposits 2,009,656
Strategic partner collateral deposits 1,750
Total deposits $ 2,011,406
v3.24.2.u1
Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]        
Operating lease costs $ 607 $ 597 $ 1,210 $ 1,195
Operating cash flows from operating leases 698 603 1,355 1,226
Right-of-use asset obtained in exchange for lease liability $ (58) $ (56) $ (118) $ (111)
v3.24.2.u1
Leases - Schedule of Breakout of Operating Leases (Detail) - USD ($)
$ in Thousands
Jun. 30, 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 $ 7,728 $ 8,785
Other current liabilities $ 2,267 $ 2,472
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities Operating lease liabilities
Operating lease liabilities $ 6,071 $ 7,019
Total operating lease liabilities $ 8,338 $ 9,491
Weighted average remaining lease term 4 years 6 months 4 years 10 months 24 days
Weighted average discount rate 5.56% 5.47%
v3.24.2.u1
Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
Remainder of 2024 $ 1,268  
2025 2,546  
2026 2,567  
2027 1,342  
2028 573  
Thereafter 1,139  
Total lease payments 9,435  
Less imputed interest 1,097  
Total operating lease liabilities $ 8,338 $ 9,491
v3.24.2.u1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Goodwill and other intangibles $ 42,853 $ 43,034
Provision for credit losses (12,844) (13,032)
Net operating loss carryforwards [1] (3,804) (3,802)
Accrued expenses, compensation, and other assets (5,433) (6,976)
Unrealized losses on other investments (1,971) (1,877)
Total deferred tax liability 18,801 17,347
Valuation allowance 3,593 3,860
Deferred tax liability, net $ 22,394 $ 21,207
[1] As of June 30, 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 June 30, 2024.
v3.24.2.u1
Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member]
$ in Millions
 6 Months Ended
Jun. 30, 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
v3.24.2.u1
Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Current        
Federal $ 4,792 $ 3,873 $ 6,521 $ 6,456
State 1,476 1,175 2,119 1,964
Deferred        
Federal (1,916) 204 1,200 2,450
State (570) 220 300 984
Total income tax provision $ 3,782 $ 5,472 $ 10,140 $ 11,854
v3.24.2.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 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Statutory Federal income tax provision at 21% $ 2,603 $ 4,442 $ 6,361 $ 9,326
State and local income taxes, net of federal income tax benefit 509 869 1,244 1,824
Non-deductible expenses 374 19 2,154 1,076
Other 296 142 381 (372)
Total income tax provision $ 3,782 $ 5,472 $ 10,140 $ 11,854
v3.24.2.u1
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Statutory Federal income tax provision percentage 21.00% 21.00% 21.00% 21.00%
v3.24.2.u1
Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 15, 2018
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock option outstanding   943,041 [1] 946,054 [1] 943,041 [1]   959,522 1,061,849  
Stock option exercisable   854,742 [1]   854,742 [1]   697,647    
Unvested shares of common stock outstanding   88,299 88,445 88,299   261,875    
Number of shares vested and settled       234,330        
Intrinsic value of options vested   $ 0.4   $ 0.4        
Restricted Stock Units [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding   326,680   326,680        
Number of shares outstanding, vested restricted stock units   234,330   234,330        
Restricted Stock Units [Member] | Vest on June 11, 2025 [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares, granted   92,350   92,350        
Weighted average grant price, granted       $ 8.23        
Restricted Stock Units [Member] | Vest on June 22, 2024 [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares, granted           83,158    
Weighted average grant price, granted           $ 9.14    
Restricted Shares [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding   887,665 [2] 889,361 [2] 887,665 [2]   995,376 857,288  
Number of shares vested and settled   0 400,985 [3]     248,898 [3]    
Weighted average fair value of options granted       $ 0 $ 0      
Number of shares, granted   0 296,178 296,178 316,483 399,793    
Weighted average grant price, granted   $ 0 $ 8.97     $ 8.34    
PSU [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares, granted   215,687   215,687   296,444    
Weighted average grant price, granted   $ 8.97   $ 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   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   5,710,968        
Shares were rolled into the 2018 Plan   1,379,328   1,379,328        
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares outstanding   92,350   92,350        
2018 Restricted Stock Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Unvested shares of common stock outstanding   887,665   887,665        
2015 Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 258,334             300,000
2015 Director Plan [Member] | Non Employee Director One [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant 12,000              
2015 Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Vesting period 10 years              
Amended Director Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant               200,000
Number of additional shares available for issuance   0   0        
Amended Director Plan [Member] | Director [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares available for grant   9,000   9,000        
Amended Director Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
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 June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024
[2] The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.
[3] The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023
v3.24.2.u1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares, vested     (234,330)    
Grant price per share, cancelled, lower limit [1]   $ 4.89      
Grant price per share, cancelled, upper limit [1]   $ 7.25      
Restricted Shares [Member]          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of shares, beginning balance 889,361 [2] 995,376 995,376 857,288 857,288
Number of shares, granted 0 296,178 296,178 316,483 399,793
Number of shares, cancelled (1,696) (1,208)     (12,807)
Number of shares, vested 0 (400,985) [3]     (248,898) [3]
Number of shares, ending balance 887,665 [2] 889,361 [2] 887,665 [2]   995,376
Grant price per share, lower range limit beginning balance $ 4.89 [2] $ 4.89 $ 4.89 $ 4.89 $ 4.89
Grant price per share, upper range limit beginning balance 9.37 [2] 9.37 9.37 7.25 7.25
Grant price per share, granted, lower limit         7.67
Grant price per share, granted, upper limit 0 8.97     9.37
Grant price per share, cancelled, lower limit 4.89 6.86     4.89
Grant price per share, cancelled, upper limit 9.37 9.37     8.4
Grant price per share, vested, lower limit [3]   4.89     4.89
Grant price per share, vested, upper limit 0 8.4 [3]     7.68 [3]
Grant price per share, lower range limit ending balance 4.89 [2] 4.89 [2] 4.89 [2]   4.89
Grant price per share, upper range limit ending balance 9.37 [2] 9.37 [2] 9.37 [2]   9.37
Weighted average grant price beginning balance 8.18 [2] 7.74 7.74 $ 7.27 7.27
Weighted average grant price, granted 0 8.97     8.34
Weighted average grant price, cancelled 7.88 8.13     7.24
Weighted average grant price, vested 0 7.69 [3]     7.1 [3]
Weighted average grant price, ending balance $ 8.18 [2] $ 8.18 [2] $ 8.18 [2]   $ 7.74
[1] The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024
[2] The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.
[3] The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023
v3.24.2.u1
Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 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 $ 6.8  
Remaining vesting period of restricted stock 2 years 8 months 12 days  
v3.24.2.u1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares
 3 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options beginning balance 946,054 [1] 959,522 1,061,849
Granted 0 0 0
Cancelled (146) (85) (33,382)
Exercised [2] (2,867) (13,383) (68,945)
Number of options ending balance 943,041 [1] 946,054 [1] 959,522
Options exercisable 854,742 [1]   697,647
Exercise price per share, lower range limit beginning balance $ 2.14 [1] $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance 9.38 [1] 9.38 9.38
Exercise price per share, granted 0 0 0
Exercise price per share, lower range limit ending balance 2.14 [1] 2.14 [1] 2.14
Exercise price per share, upper range limit ending balance 9.38 [1] 9.38 [1] 9.38
Exercise price per share, option exercisable lower range limit 2.14 [1]   2.14
Exercise price per share, option exercisable upper range limit 9.38 [1]   9.38
Weighted average exercise price, beginning balance 6.51 [1] 6.51 6.51
Weighted average exercise price, granted 0 0 0
Weighted average exercise price, cancelled 4.89 4.89 6.8
Weighted average exercise price, exercised [2] 6.14 6.61 6.44
Weighted average exercise price, ending balance 6.51 [1] 6.51 [1] 6.51
Weighted average exercise price, options exercisable 6.52 [1]   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 [2] 4.89 4.89 4.89
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Exercise price per share, cancelled 4.89 4.89 9.38
Exercise price per share, exercised [2] $ 7.25 $ 7.25 $ 7.25
[1] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024
[2] The aggregate intrinsic value of exercised options, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.
v3.24.2.u1
Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 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 $ 1.1 $ 1.1  
Aggregate intrinsic value of option vested 1.0 $ 1.0  
Remaining contractual life of option outstanding   5 years 7 months 6 days  
Remaining contractual life of option vested   5 years 6 months  
Maximum [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Aggregate intrinsic value for option exercised $ 0.1 $ 0.1  
v3.24.2.u1
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 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 88,445 261,875 261,875  
Number of options, granted 0 0   0
Number of options, cancelled (146)      
Number of options, vested [1]   (173,430)    
Number of options ending balance 88,299 88,445 88,299 261,875
Exercise price per share beginning balance, Lower limit $ 4.89 $ 4.89 $ 4.89  
Exercise price per share beginning balance, Upper limit 6.79 7.25 7.25  
Exercise price per share, Cancelled, Upper limit     4.89  
Exercise price per share, Vested, Lower limit [1]   4.89    
Exercise price per share, Vested, Upper limit [1]   7.25    
Exercise price per share ending balance, Lower limit 4.89 4.89 4.89 $ 4.89
Exercise price per share ending balance, Upper limit 6.79 6.79 6.79 7.25
Weighted average exercise price 6.37 6.49 6.49  
Weighted average exercise price, cancelled 4.89      
Weighted average exercise price, vested [1]   6.56    
Weighted average exercise price $ 6.37 $ 6.37 $ 6.37 $ 6.49
[1] The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024
v3.24.2.u1
Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Parenthetical) (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]    
Intrinsic value of options vested $ 0.4 $ 0.4
v3.24.2.u1
Segment Reporting - Additional Information (Detail)
 6 Months Ended
Jun. 30, 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 21.00%
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 21.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Automobile [Member]  
Segment Reporting Disclosure [Line Items]  
Aggregate percentage of loans lending 11.00%
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 55.00%
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 11.00%
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 10.00%
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%
v3.24.2.u1
Segment Reporting - Schedule of Segment Data (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Segment Reporting Disclosure [Line Items]              
Total interest income $ 70,704   $ 61,726   $ 137,774 $ 117,568  
Total interest expense 20,836   15,035   39,989 27,275  
Net interest income (loss) 49,868   46,691   97,785 90,293  
Provision (benefit) for credit losses 18,577   8,476   35,778 12,514  
Net interest income (loss) after loss provision 31,291   38,215   62,007 77,779  
Other income (loss), net 1,099   1,942   6,502 4,025  
Operating expenses (19,995)   (19,003)   (38,220) (37,395)  
Net income (loss) before taxes 12,395   21,154   30,289 44,409  
Income tax (provision) benefit (3,782)   (5,472)   (10,140) (11,854)  
Net income (loss) after taxes 8,613 $ 11,536 15,682 $ 16,873 20,149 32,555  
Income attributable to the non-controlling interest 1,512   1,512   3,024 3,024  
Total net income attributable to Medallion Financial Corp. 7,101   14,170   17,125 29,531  
Balance Sheet Data              
Total loans 2,295,802       2,295,802   $ 2,131,651
Loans 2,385,590   2,156,998   2,385,590 2,156,998 2,215,886
Total assets 2,760,876   2,519,137   2,760,876 2,519,137 $ 2,587,827
Total funds borrowed $ 2,283,656   $ 2,066,607   $ 2,283,656 $ 2,066,607  
Selected Financial Ratios              
Return on average assets 1.30%   2.60%   1.55% 2.79%  
Return on average stockholders' equity 8.14%   18.24%   9.89% 19.45%  
Return on average equity 8.25%   16.52%   9.70% 17.49%  
Interest yield 11.52%   11.21%   11.42% 11.01%  
Net interest margin, gross 8.12%   8.48%   8.11% 8.45%  
Net interest margin, net of allowance 8.42%   8.77%   8.40% 8.75%  
Reserve coverage 3.76%   3.48%   3.76% 3.48%  
Delinquency status 0.67% [1]   0.29% [2]   0.67% [3] 0.29% [4]  
Charge-off (recovery) ratio 2.20% [5]   0.74% [6]   2.68% [7] 1.51% [8]  
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 47,490   $ 41,109   $ 91,417 $ 79,008  
Total interest expense 10,960   7,580   20,605 13,484  
Net interest income (loss) 36,530   33,529   70,812 65,524  
Provision (benefit) for credit losses 15,795   10,135   32,825 17,886  
Net interest income (loss) after loss provision 20,735   23,394   37,987 47,638  
Other income (loss), net 306   0   556 0  
Operating expenses (11,236)   (8,444)   (19,523) (16,247)  
Net income (loss) before taxes 9,805   14,950   19,020 31,391  
Income tax (provision) benefit (3,094)   (3,867)   (6,368) (8,380)  
Net income (loss) after taxes 6,711   11,083   12,652 23,011  
Balance Sheet Data              
Total loans 1,497,428   1,331,114   1,497,428 1,331,114  
Total assets 1,451,947   1,294,925   1,451,947 1,294,925  
Total funds borrowed $ 1,200,977   $ 1,062,309   $ 1,200,977 $ 1,062,309  
Selected Financial Ratios              
Return on average assets 1.95%   3.59%   1.87% 3.84%  
Return on average equity 13.05%   22.94%   12.31% 24.13%  
Interest yield 13.30%   13.03%   13.20% 12.93%  
Net interest margin, gross 10.23%   10.63%   10.23% 10.72%  
Net interest margin, net of allowance 10.69%   11.08%   10.69% 11.18%  
Reserve coverage 4.35%   4.07%   4.35% 4.07%  
Delinquency status 0.41% [1]   0.39% [2]   0.41% [3] 0.39% [4]  
Charge-off (recovery) ratio 2.99% [5]   1.86% [6]   3.64% [7] 2.57% [8]  
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 17,651   $ 15,292   $ 35,098 $ 28,941  
Total interest expense 6,106   4,194   11,740 7,473  
Net interest income (loss) 11,545   11,098   23,358 21,468  
Provision (benefit) for credit losses 3,279   3,739   4,177 6,820  
Net interest income (loss) after loss provision 8,266   7,359   19,181 14,648  
Other income (loss), net 3   2   5 3  
Operating expenses (5,457)   (4,388)   (9,571) (8,382)  
Net income (loss) before taxes 2,812   2,973   9,615 6,269  
Income tax (provision) benefit (802)   (769)   (3,219) (1,674)  
Net income (loss) after taxes 2,010   2,204   6,396 4,595  
Balance Sheet Data              
Total loans 773,184   728,468   773,184 728,468  
Total assets 758,840   718,383   758,840 718,383  
Total funds borrowed $ 627,674   $ 589,335   $ 627,674 $ 589,335  
Selected Financial Ratios              
Return on average assets 1.08%   1.28%   1.72% 1.39%  
Return on average equity 7.00%   8.19%   11.04% 8.76%  
Interest yield 9.32%   8.79%   9.29% 8.66%  
Net interest margin, gross 6.10%   6.38%   6.18% 6.43%  
Net interest margin, net of allowance 6.25%   6.53%   6.34% 6.57%  
Reserve coverage 2.38%   2.26%   2.38% 2.26%  
Delinquency status 0.17% [1]   0.16% [2]   0.17% [3] 0.16% [4]  
Charge-off (recovery) ratio 1.49% [5]   1.12% [6]   1.80% [7] 0.97% [8]  
Operating Segments [Member] | Commercial Lending [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 3,538   $ 2,814   $ 7,183 $ 5,515  
Total interest expense 1,056   852   2,154 1,661  
Net interest income (loss) 2,482   1,962   5,029 3,854  
Provision (benefit) for credit losses 478   (113)   694 214  
Net interest income (loss) after loss provision 2,004   2,075   4,335 3,640  
Other income (loss), net (14)   343   4,188 614  
Operating expenses (1,437)   (1,147)   (2,422) (1,567)  
Net income (loss) before taxes 553   1,271   6,101 2,687  
Income tax (provision) benefit (72)   (329)   (2,043) (718)  
Net income (loss) after taxes 481   942   4,058 1,969  
Balance Sheet Data              
Total loans 110,197   92,637   110,197 92,637  
Total assets 105,548   99,713   105,548 99,713  
Total funds borrowed $ 87,304   $ 81,801   $ 87,304 $ 81,801  
Selected Financial Ratios              
Return on average assets 1.86%   3.76%   7.68% 3.94%  
Return on average equity 12.09%   23.97%   49.32% 24.74%  
Interest yield 13.08%   11.87%   12.97% 11.71%  
Net interest margin, gross 9.18%   8.28%   9.08% 8.18%  
Net interest margin, net of allowance 9.57%   8.54%   9.45% 8.43%  
Reserve coverage 4.41%   2.72%   4.41% 2.72%  
Delinquency status 7.52% [1]   0.08% [2]   7.52% [3] 0.08% [4]  
Charge-off (recovery) ratio 0.00% [5]   3.80% [6]   (0.04%) [7] 1.89% [8]  
Operating Segments [Member] | Taxi Medallion Lending [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 190   $ 787   $ 330 $ 1,097  
Total interest expense 25   46   53 113  
Net interest income (loss) 165   741   277 984  
Provision (benefit) for credit losses (975)   (5,311)   (1,918) (12,395)  
Net interest income (loss) after loss provision 1,140   6,052   2,195 13,379  
Other income (loss), net 334   1,304   973 2,923  
Operating expenses (1,373)   (743)   (2,116) (2,770)  
Net income (loss) before taxes 101   6,613   1,052 13,532  
Income tax (provision) benefit (14)   (1,713)   (352) (3,612)  
Net income (loss) after taxes 87   4,900   700 9,920  
Balance Sheet Data              
Total loans 3,482   3,448   3,482 3,448  
Total assets 7,511   18,724   7,511 18,724  
Total funds borrowed $ 6,213   $ 15,360   $ 6,213 $ 15,360  
Selected Financial Ratios              
Return on average assets 4.29%   100.63%   14.89% 94.20%  
Return on average equity 25.69%   641.63%   90.99% 590.25%  
Interest yield 21.62%   83.55%   18.78% 28.80%  
Net interest margin, gross 18.78%   78.67%   15.59% 25.84%  
Net interest margin, net of allowance 31.77%   166.23%   26.61% 73.52%  
Reserve coverage 40.18%   52.76%   40.18% 52.76%  
Delinquency status 0.00% [1]   0.00% [2]   0.00% [3] 0.00% [4]  
Charge-off (recovery) ratio (98.90%) [5]   (525.21%) [6]   (100.16%) [7] (124.01%) [8]  
Intersegment Eliminations [Member]              
Segment Reporting Disclosure [Line Items]              
Total interest income $ 1,835   $ 1,724   $ 3,746 $ 3,007  
Total interest expense 2,689   2,363   5,437 4,544  
Net interest income (loss) (854)   (639)   (1,691) (1,537)  
Provision (benefit) for credit losses 0   26   0 (11)  
Net interest income (loss) after loss provision (854)   (665)   (1,691) (1,526)  
Other income (loss), net 470   293   780 485  
Operating expenses (492)   (4,281)   (4,588) (8,429)  
Net income (loss) before taxes (876)   (4,653)   (5,499) (9,470)  
Income tax (provision) benefit 200   1,206   1,842 2,530  
Net income (loss) after taxes (676)   (3,447)   (3,657) (6,940)  
Balance Sheet Data              
Total loans 1,299   1,331   1,299 1,331  
Total assets 437,030   387,392   437,030 387,392  
Total funds borrowed $ 361,488   $ 317,802   $ 361,488 $ 317,802  
Selected Financial Ratios              
Return on average assets (0.61%)   (3.69%)   (1.69%) (3.70%)  
Return on average equity (3.88%)   (22.83%)   (10.64%) (23.24%)  
[1] Loans 90 days or more past due.
[2] Loans 90 days or more past due.
[3] Loans 90 days or more past due.
[4] Loans 90 days or more past due.
[5] Negative balances indicate net recoveries for the period.
[6] Negative balances indicate net recoveries for the period.
[7] Negative balances indicate net recoveries for the period.
[8] Negative balances indicate net recoveries for the period.
v3.24.2.u1
Commitments and Contingencies - Additional Information (Detail)
 6 Months Ended
Jun. 30, 2024
USD ($)
Commitments And Contingencies [Abstract]  
Employment agreements expiration description employment agreements expire at various dates through 2027
Future minimum payments $ 9,800,000
Other commitment $ 0
v3.24.2.u1
Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 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
v3.24.2.u1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Financial assets      
Equity investments $ 10,795 $ 11,430  
Investment securities 55,830 54,282  
Loans receivable 2,385,590 2,215,886 $ 2,156,998
Equity securities, fair value 1,700 1,700  
Carrying Amount [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 157,961 149,845  
Equity investments 10,795 11,430  
Investment securities 55,830 54,282  
Loans receivable 2,295,802 2,131,651  
Accrued interest receivable [2] 13,299 13,538  
Equity securities, fair value [3] 1,722 1,748  
Financial liabilities      
Funds borrowed 2,283,656 2,118,689  
Accrued interest payable [2] 7,945 6,822  
Fair Value Recurring [Member]      
Financial assets      
Cash, cash equivalents, and federal funds sold [1] 157,961 149,845  
Equity investments 10,795 11,430  
Investment securities 55,830 54,282  
Loans receivable 2,284,754 2,131,651  
Accrued interest receivable [2] 13,299 13,538  
Equity securities, fair value [3] 1,722 1,748  
Financial liabilities      
Funds borrowed 2,249,036 2,118,689  
Accrued interest payable [2] $ 7,945 $ 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 June 30, 2024 and $1.3 million as of December 31, 2023. See Note 13.
[2] Categorized as level 3 within the fair value hierarchy. See Note 13.
[3] Included within other assets on the balance sheet.
v3.24.2.u1
Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)
$ in Thousands
Jun. 30, 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
v3.24.2.u1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Jun. 30, 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 55,830 54,282
Equity securities, fair value [1] 1,722 1,748
Total 58,802 [2] 57,280 [3]
Fair Value Recurring [Member] | Level 1 [Member]    
Assets    
Equity securities, fair value 1,722 1,748
Total 1,722 [2] 1,748 [3]
Fair Value Recurring [Member] | Level 2 [Member]    
Assets    
Interest-bearing deposits 1,250 1,250
Investment securities 55,830 54,282
Total $ 57,080 [2] $ 55,532 [3]
[1] Included within other assets on the balance sheet.
[2] Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2024 related to these assets.
[3] Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.
v3.24.2.u1
Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Net change in unrealized gains (losses) on investments, net of tax $ 102 $ (150) $ (906) $ 506   $ (300)
Maximum [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Net change in unrealized gains (losses) on investments, net of tax         $ (100)  
AOCI Attributable to Parent [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Net change in unrealized gains (losses) on investments, net of tax $ 102 $ (150) $ (906) $ 506    
v3.24.2.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
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Assets            
Equity investments $ 1,700   $ 1,700      
Nonaccrual loans 14,000   14,000      
Loan collateral in process of foreclosure 9,359 [1] $ 10,198 11,772 [1] $ 16,803 $ 20,467 $ 21,819
Fair Value, Nonrecurring            
Assets            
Equity investments 10,795   11,430      
Nonaccrual loans 22,248   25,974      
Loan collateral in process of foreclosure 9,359   11,772      
Total 42,402   49,176      
Fair Value, Nonrecurring | Level 3 [Member]            
Assets            
Equity investments 10,795   11,430      
Nonaccrual loans 22,248   25,974      
Loan collateral in process of foreclosure 9,359   11,772      
Total $ 42,402   $ 49,176      
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.
v3.24.2.u1
Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)
 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
$ / shares
Mar. 31, 2024
USD ($)
Jun. 30, 2023
USD ($)
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 $ 9,359,000 [1] $ 11,772,000 [1] $ 10,198,000 $ 16,803,000 $ 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        
Nonaccrual 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        
Nonaccrual 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 0.2306 0.2848        
Nonaccrual 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]        
Nonaccrual 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 [4] 2,500 2,300        
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 [4] 51,300 45,000        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 0 [2] 0 [3]        
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Loan collateral in process of foreclosure value 79,500 [2] 79,500 [3]        
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]            
Fair Value Measurement Inputs and Valuation Techniques [Line Items]            
Equity investments 10,522,000 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] | Nonaccrual 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 22,248,000 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 $ 9,359,000 $ 11,772,000        
[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.
[2] Represents amount net of liquidation costs.
[3] Represents amount net of liquidation costs.
[4] Relates to the recreation loan portfolio.
v3.24.2.u1
Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 6 Months Ended
Dec. 17, 2019
Jul. 21, 2011
Jun. 30, 2024
Dec. 31, 2021
Changes In Equity And Comprehensive Income Line Items [Line Items]        
Investment, Type [Extensible Enumeration]       us-gaap:EquitySecuritiesMember
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