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MFIN Medallion Financial

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021May 03, 2021
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Registrant NameMEDALLION FINANCIAL CORP
Entity Central Index Key0001000209
Current Fiscal Year End Date--12-31
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryAccelerated Filer
Entity Common Stock, Shares Outstanding25,033,486
Entity Emerging Growth Companyfalse
Entity Small Businesstrue
Entity Shell Companyfalse
Entity Incorporation, State or Country CodeDE
Entity File Number001-37747
Entity Tax Identification Number
04-3291176
Entity Address, Address Line One437 MADISON AVENUE, 38th Floor
Entity Address, City or TownNEW YORK
Entity Address, State or ProvinceNY
Entity Address, Postal Zip Code10022
City Area Code212
Local Phone Number328-2100
Title of 12(b) SecurityCommon Stock, par value $0.01 per share
Trading SymbolMFIN
Security Exchange NameNASDAQ

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Assets
Cash and cash equivalents[1] $ 69,477 $ 54,743
Federal funds sold70,800 57,297
Investment securities38,081 46,792
Equity investments9,529 9,746
Loans1,259,215 1,229,838
Allowance for loan losses(57,809)[2],[3](57,548)
Net loans receivable1,201,406 1,172,290
Accrued interest receivable9,215 10,338
Income tax receivable859 1,757
Property, equipment, and right-of-use lease asset, net11,858 12,404
Loan collateral in process of foreclosure[4]50,733 54,560
Goodwill150,803 150,803
Intangible assets, net50,729 51,090
Other assets25,260 20,591
Total assets1,688,750 1,642,411
Liabilities
Accounts payable and accrued expenses[5]17,746 14,902
Accrued interest payable4,762 4,673
Deposits[6]1,084,074 1,065,398
Short-term borrowings73,937 87,334
Deferred tax liabilities, net3,528 807
Operating lease liabilities10,464 11,018
Long-term debt[7]182,225 153,718
Total liabilities1,376,736 1,337,850
Commitments and contingencies[8]
Stockholders’ equity
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding)
Common stock (50,000,000 shares of $0.01 par value stock authorized- 27,985,598 shares at March 31, 2021 and 27,828,871 shares at December 31, 2020 issued)280 278
Additional paid in capital278,035 277,539
Treasury stock (2,951,243 shares at March 31, 2021 and December 31, 2020)(24,919)(24,919)
Accumulated other comprehensive income1,407 2,012
Retained earnings (accumulated deficit)(15,071)(23,502)
Total stockholders’ equity239,732 231,408
Non-controlling interest in consolidated subsidiaries72,282 73,153
Total equity312,014 304,561
Total liabilities and equity $ 1,688,750 $ 1,642,411
Number of shares outstanding25,034,355 24,877,628
Book value per share $ 9.58 $ 9.30
[1]Includes restricted cash of $2,970 as of March 31, 2021 and December 31, 2020.
[2]As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3]As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[4]Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,818 as of March 31, 2021 and $3,535 as of December 31, 2020.
[5]Includes the short-term portion of lease liabilities of $2,048 and $2,004 as of March 31, 2021 and December 31, 2020. Refer to Note 6 for more details.
[6]Includes $2,661 and $2,674 of deferred financing costs as of March 31, 2021 and December 31, 2020. Refer to Note 5 for more details.
[7]Includes $3,862 and $3,131 of deferred financing costs as of March 31, 2021 and December 31, 2020. Refer to Note 5 for more details.
[8]Refer to Note 10 for details.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Preferred stock, shares authorized1,000,000 1,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares outstanding0 0
Common stock, shares authorized50,000,000 50,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares issued27,985,598 27,828,871
Treasury stock,shares2,951,243 2,951,243
Restricted cash $ 2,970 $ 2,970
Loan collateral in process of foreclosure, financed sales collateral to third parties3,818 3,535
Short term lease liabilities2,048 2,004
Deposits [Member]
Deferred financing costs2,661 2,674
Long-Term Debt [Member]
Deferred financing costs $ 3,862 $ 3,131

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Interest and fees on loans $ 36,855,000 $ 35,019,000
Interest and dividends on investment securities225,000 470,000
Medallion lease income53,000
Total interest income[1]37,080,000 35,542,000
Interest on deposits4,711,000 5,941,000
Interest on short-term borrowings403,000 564,000
Interest on long-term debt3,293,000 2,495,000
Total interest expense[2]8,407,000 9,000,000
Net interest income28,673,000 26,542,000
Provision for loan losses3,019,000 16,541,000
Net interest income after provision for loan losses25,654,000 10,001,000
Other income (loss)
Write-down of loan collateral in process of foreclosure(2,785,000)(6,286,000)
Sponsorship and race winnings, net2,473,000 2,573,000
Gain on extinguishment of debt1,767,000
Loss on equity investments(3,510,000)
Other income482,000 243,000
Total other income (loss), net1,937,000 (6,980,000)
Other expenses
Salaries and employee benefits5,685,000 6,933,000
Race team related expenses2,122,000 2,130,000
Loan servicing fees1,647,000 1,612,000
Collection costs1,232,000 1,229,000
Professional fees507,000 3,589,000
Rent expense675,000 697,000
Regulatory fees438,000 365,000
Amortization of intangible assets361,000 361,000
Other expenses1,975,000 2,355,000
Total other expenses14,642,000 19,271,000
Income (loss) before income taxes12,949,000 (16,250,000)
Income tax (provision) benefit(3,878,000)3,249,000
Net income (loss) after taxes9,071,000 (13,001,000)
Less: income attributable to the non-controlling interest640,000 642,000
Total net income (loss) attributable to Medallion Financial Corp. $ 8,431,000 $ (13,643,000)
Basic net income (loss) per share $ 0.34 $ (0.56)
Diluted net income (loss) per share $ 0.34 $ (0.56)
Weighted average common shares outstanding
Basic24,518,775 24,401,773
Diluted24,895,108 24,401,773
[1]Included in interest and investment income is $325 and $293 of paid-in-kind interest for the three months ended March 31, 2021 and 2020.
[2]Average borrowings outstanding were $1,305,162 and $1,164,483, and the related average borrowing costs were 2.61% and 3.11%, for the three months ended March 31, 2021 and 2020.

Consolidated Statements of Op_2

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Interest paid-in-kind $ 325 $ 293
Average borrowings outstanding $ 1,305,162 $ 1,164,483
Average borrowing costs rate2.61%3.11%

Consolidated Statements of Othe

Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss) after taxes $ 9,071 $ (13,001)
Other comprehensive income (loss), net of tax(605)147
Total comprehensive income (loss)8,466 (12,854)
Less comprehensive income attributable to the non-controlling interest640 642
Total comprehensive income (loss) attributable to Medallion Financial Corp. $ 7,826 $ (13,496)

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in ThousandsTotalCommon Stock [Member]Preferred Stock [Member]Capital in Excess of Par [Member]Treasury Stock [Member]Retained Earnings (Accumulated Deficit) [Member]Accumulated Other Comprehensive Income (Loss) [Member]Parent [Member]Noncontrolling Interest [Member]
Balance at Dec. 31, 2019 $ 334,468 $ 276 $ 275,511 $ (24,919) $ 11,281 $ 999 $ 263,148 $ 71,320
Balance, shares at Dec. 31, 201927,597,802 (2,951,243)
Net income (loss)(13,001)(13,643)(13,643)642
Distributions to non-controlling interest(1,507)(1,507)
Stock-based compensation expense466 $ 2 464 466
Issuance of restricted stock, net0 $ 0 $ 0 0 $ 0 0 0 0 0
Issuance of restricted stock, net, shares165,674
Forfeiture of restricted stock, net0 $ 0 $ 0 0 0 0 0 0 0
Forfeiture of restricted stock, net, shares(5,577)
Net change in unrealized gains (losses) on investments, net of tax147 147 147
Ending balance at Mar. 31, 2020320,573 $ 278 275,975 $ (24,919)(2,362)1,146 250,118 70,455
Ending balance, shares at Mar. 31, 202027,757,899 (2,951,243)
Balance at Dec. 31, 2019 $ 334,468 $ 276 275,511 $ (24,919)11,281 999 263,148 71,320
Balance, shares at Dec. 31, 201927,597,802 (2,951,243)
Exercise of stock options, shares[1]0
Net change in unrealized gains (losses) on investments, net of tax $ (1,013)
Ending balance at Dec. 31, 2020 $ 304,561 $ 278 277,539 $ (24,919)(23,502)2,012 231,408 73,153
Ending balance, shares at Dec. 31, 202024,877,628 27,828,871 (2,951,243)
Net income (loss) $ 9,071 8,431 8,431 640
Distributions to non-controlling interest(1,511)(1,511)
Stock-based compensation expense $ 498 $ 2 496 498
Issuance of restricted stock, net, shares163,561
Forfeiture of restricted stock, net, shares(7,602)
Exercise of stock options, shares768 [1]768
Net change in unrealized gains (losses) on investments, net of tax $ (605)(605)(605)
Ending balance at Mar. 31, 2021 $ 312,014 $ 280 $ 278,035 $ (24,919) $ (15,071) $ 1,407 $ 239,732 $ 72,282
Ending balance, shares at Mar. 31, 202125,034,355 27,985,598 (2,951,243)
[1]The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $1,000 and $0 for the three months ended March 31, 2021 and 2020.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 9,071,000 $ (13,001,000)
Adjustments to reconcile net loss from operations to net cash provided by operating activities:
Provision for loan losses3,019,000 16,541,000
Paid-in-kind interest(325,000)(293,000)
Depreciation and amortization1,321,000 1,590,000
Increase (decrease) in deferred and other tax liabilities3,620,000 (2,713,000)
Amortization of origination fees, net1,656,000 1,304,000
Net change in value of loan collateral in process of foreclosure4,002,000 8,825,000
Net realized losses on investments3,554,000
Stock-based compensation expense498,000 466,000
Gain on extinguishment of debt(1,767,000)
Decrease in accrued interest receivable1,123,000 125,000
(Increase) decrease in other assets(2,228,000)205,000
Increase in accounts payable and accrued expenses944,000 1,249,000
(Increase) decrease in accrued interest payable126,000 (1,062,000)
Net cash provided by operating activities21,060,000 16,790,000
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated(150,598,000)(107,149,000)
Proceeds from principal receipts, sales, and maturities of loans113,144,000 67,368,000
Purchases of investments(2,000,000)(6,541,000)
Proceeds from principal receipts, sales, and maturities of investments8,280,000 7,692,000
Proceeds from the sale and principal payments on loan collateral in process of foreclosure3,627,000 4,007,000
Net cash used for investing activities(27,547,000)(34,623,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed181,179,000 114,418,000
Repayments of time deposits and funds borrowed(144,944,000)(107,402,000)
Distributions to non-controlling interests(1,511,000)(1,507,000)
Net cash provided by financing activities34,724,000 5,509,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH28,237,000 (12,324,000)
Cash, cash equivalents and restricted cash, beginning of period[1]112,040,000 67,821,000
Cash, cash equivalents and restricted cash, end of period[1]140,277,000 55,497,000
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest7,637,000 9,339,000
Cash paid during the period for income taxes4,000 3,000
NON-CASH INVESTING
Loans transferred to loan collateral in process of foreclosure, net $ 3,802,000 $ 6,938,000
[1]Includes federal funds sold.

Organization of Medallion Finan

Organization of Medallion Financial Corp. and its Subsidiaries3 Months Ended
Mar. 31, 2021
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 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 initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxi medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. Subsequent to its formation, the Bank began originating consumer loans to finance the purchases of recreational vehicles, or RVs, boats, and other related items, and to finance home improvements. The Company also conducts business through Medallion Funding LLC, or MFC, a Small Business Investment Company, or SBIC, which originates and services medallion and commercial loans. The Company also conducts business through its subsidiaries Medallion Capital, Inc., or MCI, an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp., or FSVC, an SBIC that originated and services medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration, or SBA. MCI and FSVC are financed in part by the SBA. The Company has a controlling ownership stake in Medallion Motorsports, LLC, the primary owner of RPAC Racing, LLC, or RPAC, a professional car racing team that competes in the Monster Energy NASCAR Cup Series, which is also consolidated with the Company. The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation, or MSC, to provide loan services to the Bank. The Company has assigned all of its loan servicing rights for the Bank, which consists of servicing medallion loans originated by the Bank, to MSC, which bills and collects the related service fee income from the Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs. In 2019, the Bank began the process to build out a strategic partnership program with financial technology, or fintech, companies. The Bank entered into an initial partnership in 2020 and a second partnership in 2021, which will soon be active, and began issuing its first loans, while continuing to explore opportunities with additional fintech companies. Taxi Medallion Loan Trust III, or Trust III, was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity, or VIE, and MFC was the primary beneficiary until the 2018 fourth quarter. As a result, the Company consolidated Trust III in its financial results until consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 15. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III 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 Trust III. Trust III’s loans are serviced by MFC. The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured preferred securities to investors. Fin Trust is a separate legal and corporate entity with its own creditors who, in any liquidation of Fin Trust, will be entitled to be satisfied out of Fin Trust’s assets prior to any value in Fin Trust becoming available to Fin Trust’s equity holders. The assets of Fin Trust, aggregating $36,083,000 at March 31, 2021, 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. MFC, through several wholly-owned subsidiaries, together, Medallion Chicago, purchased $8,689,000 of City of Chicago taxi medallions out of foreclosure, some of which are leased to fleet operators. The 159 taxi medallions are carried at a net realizable value of $2,298,000 in other assets on the Company’s consolidated balance sheet at March 31, 2021, compared to a net realizable value of $2,932,000 and $3,091,000 at December 31, 2020 and March 31, 2020.

Summary of Significant Accounti

Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US, or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,500,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 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 $9,529,000 and $9,746,000 at March 31, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of March 31, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change. In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,972,000 as of March 31, 2021 are included in other assets on the consolidated balance sheet. The table below presents the unrealized portion related to the equity securities held as of March 31, 2021.
(Dollars in thousands)
March 31, 2021
Net losses recognized during the period on equity securities
$
(28
)
Less: Net gains (losses) recognized during the period on equity securities sold during the period

Unrealized losses recognized during the reporting period on equity securities still held at the reporting date
$
(28
) 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 $235,000 at March 31, 2021 and $278,000 at December 31, 2020, and $43,000 and $55,000 was amortized to interest income for the three months ended March 31, 2021 and 2020. Refer to Note 3 for more details. ASC 320 further requires that held-to-maturity securities be reported at amortized cost and available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings at the date of the consolidated financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity, net of the effect of income taxes, until they are sold. At the time of sale, any gains or losses, calculated by the specific identification method, will be recognized as a component of operating results and any amounts previously included in stockholders’ equity, which were recorded net of the income tax effect, will be reversed. Loans The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, and therefore changed the Company’s financial reporting from investment company accounting to bank holding company accounting. As a result, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At March 31, 2021 and December 31, 2020, net loan origination costs were $21,618,000 and $20,684,000. Net amortization to income for the three months ended March 31, 2021 and 2020 was $1,656,000 and $1,304,000. Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. These 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 collection and 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 to write 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 a recovery. Total loans 90 days or more past due were $4,118,000 at March 31, 2021, or 0.33% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in the third quarter 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is to take an immediate 40 % write down of the loan balance . As a result of the Consolidated Appropriations Act, the Coronavirus Aid, Relief, and Economic Security Act , or the CARES Act , relief period was extended to the later of January 1, 2022 or 60 days after the date which the coronavirus, or COVID-19, national emergency terminates . During the relief period , companies may elect to (a) suspend the requirements of GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs and (b) suspend any determination of a loan modified as a result of the effects of COVID-19 as a TDR, including impairment for accounting purposes. Any such suspension is applicable for the term of the loan modification, but solely with respect to any modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019, and shall not apply to any adverse impact on the credit of a borrower that is not related to COVID-19. As of March 31, 2021, there were no consumer or medallion loan modifications related to COVID-19 that would have otherwise been classified as a TDR, and therefore there was no need for the Company to elect this relief under the CARES Act during 2020 and 2021 . However, we expect to have loan modifications related to COVID-19 that would apply under this provision of the CARES Act in the future . Loan collateral in process of foreclosure primarily includes medallion loans that have reached 120 days past due and have been charged-down to their net realizable value, in addition to consumer repossessed collateral in the process of being sold. The medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower, to the liquidation of the collateral securing the loans. The Company had $11,020,000 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at March 31, 2021 and December 31, 2020. The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $106,325,000 at March 31, 2021 and $107,131,000 at December 31, 2020. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of March 31, 2021 and December 31, 2020. The Company assigned its servicing rights of the Bank’s portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from the Bank by MSC. Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result of COVID-19, there was an increase in the reserve percentages of 50 basis points on the recreation subprime loan business during 2020, of which there was an increase of 25-50 basis points for the three months ended March 31, 2020. In addition, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six-month deferral period with borrowers, and therefore deemed all such loans as impaired in the third quarter of 2020. As a result, all medallion loans were placed on nonaccrual and written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions. The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Had there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more past due would have resulted in increased reserves and/or charge-offs. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance. Goodwill and Intangible Assets The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of March 31, 2021, December 31, 2020, and March 31, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,729,000, $51,090,000, and $52,175,000, and the Company recognized $361,000 of amortization expense on the intangible assets for the three months ended March 31, 2021 and 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,530,000, $2,717,000, and $5,429,000 were outstanding at March 31, 2021, December 31, 2020, and March 31, 2020, and of which $187,000 and $329,000 were amortized to interest income for the three months ended March 31, 2021 and 2020. The table below shows the details of the intangible assets as of the dates presented.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Brand-related intellectual property
$
18,699
$
18,974
Home improvement contractor relationships
5,865
5,951
Race organization
26,165
26,165
Total intangible assets, net
$
50,729
$
51,090
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 $84,000 and $121,000 for the three months ended March 31, 2021 and 2020. Deferred Costs Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $645,000 and $723,000 for the three months ended March 31, 2021 and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $6,523,000, $5,805,000, and $4,674,000 as of March 31, 2021, December 31, 2020, and March 31, 2020. 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. Sponsorship and Race Winnings The Company accounts for sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized when the Company’s performance obligations are completed in accordance with the contract terms of the sponsorship contract. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver. Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share are computed by dividing net income (loss) resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS.
Three Months Ended March 31,
(Dollars in thousands, except share and per share data)
2021
2020
Net income (loss) resulting from operations available to common stockholders
$
8,431
$
(13,643
)
Weighted average common shares outstanding applicable to basic EPS
24,518,775
24,401,773
Effect of dilutive stock options
21,168

Effect of restricted stock grants
355,165

Adjusted weighted average common shares outstanding applicable to diluted EPS
24,895,108
24,401,773
Basic income (loss) per share
$
0.34
$
(0.56
)
Diluted income (loss) per share
0.34
(0.56
) Potentially dilutive common shares excluded from the above calculations aggregated 1,188,455 and 807,368 shares as of March 31, 2021 and 2020. Stock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock. During the three months ended March 31, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued no restricted stock units; and recognized $498,000 and $466,000, or $0.02 and $0.02 per share, for the three months ended March 31, 2021 and 2020, of non-cash stock-based compensation expense related to the grants. As of March 31, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $4,100,000, which is expected to be recognized over the next 16 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%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of March 31, 2021, the Bank’s Tier 1 leverage ratio was 18.03%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.
Regulatory
(Dollars in thousands)
Minimum
Well- Capitalized
March 31, 2021
December 31, 2020
Common equity Tier 1 capital


$
159,268
$
148,507
Tier 1 capital


228,056
217,295
Total capital


244,623
233,460
Average assets


1,265,004
1,283,664
Risk-weighted assets


1,276,656
1,243,783
Leverage ratio (1)
4.0
%
5.0
%
18.0
%
16.9
%
Common equity Tier 1 capital ratio (2)
7.0
6.5
12.5
11.9
Tier 1 capital ratio (3)
8.5
8.0
17.9
17.5
Total capital ratio (3)
10.5
10.0
19.2
18.8
(1)
Calculated by dividing Tier 1 capital by average assets.
(2)
Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
(3)
Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of March 31, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2021 and December 31, 2020. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans. 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.

Investment Securities

Investment Securities3 Months Ended
Mar. 31, 2021
Schedule Of Investments [Abstract]
Investment Securities(3) INVESTMENT SECURITIES Fixed maturity securities available for sale at March 31, 2021 and December 31, 2020 consisted of the following:
March 31, 2021 (Dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
29,365
$
1,005
$
(219
)
$
30,151
State and municipalities
7,919
92
(81
)
7,930
Total
$
37,284
$
1,097
$
(300
)
$
38,081
December 31, 2020 (Dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
34,929
$
1,495
$
(45
)
$
36,379
State and municipalities
10,226
189
(2
)
10,413
Total
$
45,155
$
1,684
$
(47
)
$
46,792
The amortized cost and estimated market value of investment securities at March 31, 2021 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.
(Dollars in thousands)
Amortized Cost
Fair Value
Due in one year or less
$
20
$
20
Due after one year through five years
8,678
8,977
Due after five years through ten years
14,006
14,344
Due after ten years
14,580
14,740
Total
$
37,284
$
38,081
The following tables show information pertaining to securities with gross unrealized losses at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position.
Less than Twelve Months
Twelve Months and Over
March 31, 2021 (Dollars in thousands)
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
(219
)
$
5,577
$

-
$

State and municipalities
(78
)
3,935
(3
)
127
Total
$
(297
)
$
9,512
$
(3
)
$
127
Less than Twelve Months
Twelve Months and Over
December 31, 2020 (Dollars in thousands)
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
(45
)
$
4,028
$

$

State and municipalities


(2
)
196
Total
$
(45
)
$
4,028
$
(2
)
$
196
Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses3 Months Ended
Mar. 31, 2021
Text Block [Abstract]
Loans and Allowance for Loan Losses(4) LOANS AND ALLOWANCE FOR LOAN LOSSES The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at March 31, 2021 and December 31, 2020.
March 31, 2021
December 31, 2020
(Dollars in thousands)
Amount
As a Percent of Gross Loans
Amount
As a Percent of Gross Loans
Recreation
$
822,932
65
%
$
792,686
65
%
Home improvement
342,121
27
334,033
27
Commercial
58,854
5
65,327
5
Medallion
35,250
3
37,768
3
Strategic partnership
58

24

Total gross loans
1,259,215
100
%
1,229,838
100
%
Allowance for loan losses
(57,809
)
(57,548
)
Total net loans
$
1,201,406
$
1,172,290
The following tables show the activity of the gross loans for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31, 2021 (Dollars in thousands)
Recreation
Home Improvement
Commercial
Medallion
Strategic Partnership
Total
Gross loans – December 31, 2020
$
792,686
$
334,033
$
65,327
$
37,768
$
24
$
1,229,838
Loan originations
93,850
48,059
4,156

1,944
148,009
Principal payments, sales, and maturities
(58,427
)
(40,069
)
(10,965
)
(1,825
)
(1,910
)
(113,196
)
Charge-offs, net
(2,584
)
(249
)
75

(2,758
)
Transfer to loan collateral in process of foreclosure, net
(3,053
)


(696
)

(3,749
)
Amortization of origination costs
(2,162
)
497
11
(2
)

(1,656
)
Amortization of loan premium
(41
)
(76
)

(70
)

(187
)
FASB origination costs
2,663
(74
)



2,589
Paid-in-kind interest


325


325
Gross loans – March 31, 2021
$
822,932
$
342,121
$
58,854
$
35,250
$
58
$
1,259,215
Three Months Ended March 31, 2020 (Dollars in thousands)
Recreation
Home Improvement
Commercial
Medallion
Total
Gross loans – December 31, 2019
$
713,332
$
247,324
$
69,767
$
130,432
$
1,160,855
Loan originations
69,643
33,465
2,175

105,283
Principal payments, sales and maturities
(37,070
)
(24,225
)
(3,999
)
(2,075
)
(67,369
)
Charge-offs, net
(6,382
)
(636
)

(1,559
)
(8,577
)
Transfer to loan collateral in process of foreclosure, net
(4,779
)


(2,159
)
(6,938
)
Amortization of origination costs
(1,728
)
441
2
(19
)
(1,304
)
Amortization of loan premium
(52
)
(86
)

(191
)
(329
)
FASB origination costs
2,211
(384
)
19
19
1,865
Paid-in-kind interest


293

293
Gross loans – March 31, 2020
$
735,175
$
255,899
$
68,257
$
124,448
$
1,183,779
The following table sets forth the activity in the allowance for loan losses for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Allowance for loan losses – beginning balance
$
57,548
$
46,093
Charge-offs
Recreation
(5,053
)
(8,244
)
Home improvement
(681
)
(1,011
)
Commercial


Medallion
(1,114
)
(1,924
)
Total charge-offs
(6,848
)
(11,179
)
Recoveries
Recreation
2,469
1,862
Home improvement
432
375
Commercial


Medallion
1,189
365
Total recoveries
4,090
2,602
Net charge-offs (1)
(2,758
)
(8,577
)
Provision for loan losses
3,019
16,541
Allowance for loan losses – ending balance (2) (3)
$
57,809
$
54,057
( 1 )
As of March 31, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $282,450, some of which represent collection opportunities for the Company.
( 2 )
As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
(3)
As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans. The following tables set forth the allowance for loan losses by type as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Amount
Percentage of Allowance
Allowance as a Percent of Loan Category
Allowance as a Percent of Nonaccrual
Recreation
$
28,378
49
%
3.45
%
561.61
%
Home improvement
5,358
9
1.57
NM
Commercial




Medallion
24,073
42
68.29
70.05
Total
$
57,809
100
%
4.59
%
101.61
%
December 31, 2020 (Dollars in thousands)
Amount
Percentage of Allowance
Allowance as a Percent of Loan Category
Allowance as a Percent of Nonaccrual
Recreation
$
27,348
48
%
3.45
%
378.20
%
Home improvement
5,157
9
1.54
NM
Commercial




Medallion
25,043
43
66.31
68.01
Total
$
57,548
100
%
4.68
%
93.17
% The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.
(Dollars in thousands)
March 31, 2021
December 31, 2020
March 31, 2020
Total nonaccrual loans
$
56,893
$
61,767
$
61,635
Interest foregone quarter to date
578
2,306
623
Amount of foregone interest applied to principal in the quarter
169
595
52
Interest foregone life to date
5,086
5,252
3,358
Amount of foregone interest applied to principal life to date
905
792
494
Percentage of nonaccrual loans to gross loan portfolio
5
%
5
%
5
%
Percentage of allowance for loan losses to nonaccrual loans
102
93
88
The following tables present the performance status of loans as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Performing
Nonperforming
Total
Percentage of Nonperforming to Total
Recreation
$
817,490
$
5,442
$
822,932
0.66
%
Home improvement
341,971
150
342,121
0.04
Commercial
42,414
16,440
58,854
27.93
Medallion

35,250
(1)
35,250
100.00
Strategic partnership
58

58

Total
$
1,201,933
$
57,282
$
1,259,215
4.55
%
December 31, 2020 (Dollars in thousands)
Performing
Nonperforming
Total
Percentage of Nonperforming to Total
Recreation
$
785,047
$
7,639
$
792,686
0.96
%
Home improvement
333,862
171
334,033
0.05
Commercial
48,731
16,596
65,327
25.40
Medallion

37,768
(1)
37,768
100.00
Strategic partnership
24

24

Total
$
1,167,664
$
62,174
$
1,229,838
5.06
%
(1)
Includes medallion loan premiums of $1,545and $1,615 at March 31, 2021 and December 31, 2020. For those loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming. The following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2021 and 2020, and December 31, 2020, all of which had an allowance recorded against the principal balance.
March 31, 2021
December 31, 2020
March 31, 2020
(Dollars in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
With an allowance recorded
Recreation
$
5,442
$
5,442
$
188
$
7,639
$
7,639
$
264
$
7,328
$
7,328
$
318
Home improvement
150
150
2
171
171
3
222
222
4
Commercial
16,440
16,447

16,596
16,600

11,862
11,867

Medallion
35,250
35,990
24,073
37,768
38,368
25,043
42,592
43,081
20,011
Total nonperforming loans with an allowance
$
57,282
$
58,029
$
24,263
$
62,174
$
62,778
$
25,310
$
62,004
$
62,498
$
20,333
For the Three Months Ended March 31,
2021
2020
(Dollars in thousands)
Average Investment Recorded
Interest Income Recognized
Average Investment Recorded
Interest Income Recognized
With an allowance recorded
Recreation
$
5,617
$
184
$
7,456
$
161
Home improvement
150

222

Commercial
17,358

11,976
1
Medallion
35,535

45,105
415
Total nonperforming loans with an allowance
$
58,660
$
184
$
64,759
$
577
The following tables show the aging of all loans as of March 31, 2021 and December 31, 2020.
Days Past Due
March 31, 2021 (Dollars in thousands)
30-59
60-89
90 +
Total
Current
Total (1)
Recorded Investment 90 Days and Accruing
Recreation
$
13,371
$
3,908
$
3,152
$
20,431
$
776,728
$
797,159
$

Home improvement
509
193
149
851
343,776
344,627

Commercial


75
75
58,781
58,856

Medallion
1,710
17,048
742
19,500
14,205
33,705

Strategic partnership




58
58

Total
$
15,590
$
21,149
$
4,118
$
40,857
$
1,193,548
$
1,234,405
$

(1)
Excludes loan premiums of $2,530 resulting from purchase price accounting and $22,280 of capitalized loan origination costs.
Days Past Due
December 31, 2020 (Dollars in thousands)
30-59
60-89
90 +
Total
Current
Total (1)
Recorded Investment 90 Days and Accruing
Recreation
$
22,058
$
7,582
$
5,343
$
34,983
$
732,391
$
767,374
$

Home improvement
813
218
170
1,201
335,684
336,885

Commercial


75
75
65,265
65,340

Medallion
2,019
973
1,290
4,282
31,871
36,153

Strategic partnership




24
24

Total
$
24,890
$
8,773
$
6,878
$
40,541
$
1,165,235
$
1,205,776
$

(1)
Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs. The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 362%, 327%, and 244% as of March 31, 2021, December 31, 2020, and March 31, 2020. The following table shows the TDRs which the Company entered into during the three months ended March 31, 2021.
(Dollars in thousands)
Number of Loans
Pre- Modification Investment
Post- Modification Investment
Recreation
18
$
172
$
166
Medallion
8
2,738
2,738
During the twelve months ended March 31, 2021, 35 medallion loans modified as TDRs were in default and had an investment value of $20,567,000 as of March 31, 2021, net of a $16,113,000 allowance for loan losses, 36 recreation loans modified as TDRs were in default and had an investment value of $ as of March 31, 2021 , net of a $ allowance for loan losses , and no commercial loans modified as TDRs were in default . The following table shows the TDRs which the Company entered into during the three months ended March 31, 2020.
(Dollars in thousands)
Number of Loans
Pre- Modification Investment
Post- Modification Investment
Recreation
33
$
502
$
434
Medallion
13
1,121
1,121
During the twelve months ended March 31, 2020, 28 medallion loans modified as TDRs were in default and had an investment value of $13,113,000 as of March 31, 2020, net of a $6,868,000 allowance for loan losses, and 106 recreation loans modified as TDRs were in default and had an investment value of $1,115,000 as of March 31, 2020, net of a $48,000 allowance for loan losses. The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31, 2021 (Dollars in thousands)
Recreation
Medallion
Total
Loan collateral in process of foreclosure – December 31, 2020
$
1,432
$
53,128
$
54,560
Transfer from loans, net
3,053
749
3,802
Sales
(2,298
)

(2,298
)
Cash payments received

(1,329
)
(1,329
)
Collateral valuation adjustments
(1,217
)
(2,785
)
(4,002
)
Loan collateral in process of foreclosure – March 31, 2021
$
970
$
49,763
$
50,733
Three Months Ended March 31, 2020 (Dollars in thousands)
Recreation
Medallion
Total
Loan collateral in process of foreclosure – December 31, 2019
$
1,476
$
51,235
$
52,711
Transfer from loans, net
4,779
2,159
6,938
Sales
(1,999
)
(300
)
(2,299
)
Cash payments received

(1,708
)
(1,708
)
Collateral valuation adjustments
(2,539
)
(6,286
)
(8,825
)
Loan collateral in process of foreclosure – March 31, 2020
$
1,717
$
45,100
$
46,817

Funds Borrowed

Funds Borrowed3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Funds Borrowed(5) FUNDS BORROWED The outstanding balances of funds borrowed were as follows:
Payments Due for the Twelve Months Ending March 31,
(Dollars in thousands)
2022
2023
2024
2025
2026
Thereafter
March 31, 2021 (1)
December 31, 2020 (1)
Interest Rate (2)
Deposits (3)
$
398,096
$
244,883
$
193,105
$
116,117
$
134,284
$

$
1,086,485
$
1,067,822
1.61
%
Retail and privately placed notes
33,625

36,000

28,250
42,100
139,975
103,225
8.00
%
SBA debentures and borrowings
14,008
5,000
2,500
12,500
15,500
10,000
59,508
68,008
3.12
%
Preferred securities





33,000
33,000
33,000
2.30
%
Notes payable to banks
18,325
280
210



18,815
31,261
3.72
%
Other borrowings
7,979



747

8,726
8,689
1.91
%
Total
$
472,033
$
250,163
$
231,815
$
128,617
$
178,781
$
85,100
$
1,346,509
$
1,312,005
2.43
%
(1)
Excludes deferred financing costs of $6,523 and $5,805 as of March 31, 2021 and December 31, 2020.
( 2 )
Weighted average contractual rate as of March 31, 2021.
(3)
Balance excludes $250 of strategic partner reserve deposits as of March 31, 2021 and December 31, 2020. (A) DEPOSITS 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 competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. The Bank did not have any individual time deposits greater than $100,000 as of March 31, 2021. In October 2020, the Bank began to originate time deposits through an internet listing service. These deposits are from other financial institutions, which as of March 31, 2021, totaled $4,036,000 in listing service deposits. The following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of March 31, 2021.
(Dollars in thousands)
March 31, 2021
Three months or less
$
137,602
Over three months through six months
108,194
Over six months through one year
152,300
Over one year
688,389
Total deposits
$
1,086,485
(B) RETAIL AND PRIVATELY PLACED NOTES In February 2021, the Company completed a private placement to certain institutional investors of $25,000,000 aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3,250,000 principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $3,000,000 principal amount of such notes was issued to certain institutional investors. The Company will use 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 $33,600,000 aggregate principal amount of 7.50% unsecured senior notes due December 2027 In March 2019, the Company completed a private placement to certain institutional investors of $30,000,000 aggregate principal amount of 8.25% unsecured senior notes due 2024, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including repaying certain borrowings under its notes payable to banks at a discount which led to a gain of $4,145,000 in the 2019 first quarter. In August 2019, an additional $6,000,000 principal amount of such notes was issued to certain institutional investors. In April 2016, the Company issued a total of $33,625,000 aggregate principal amount of 9.00% unsecured notes due 2021, with interest payable quarterly in arrears. The Company used the net proceeds from the offering of approximately $31,786,000 to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under its DZ loan in the ordinary course of business. These notes were repaid at maturity on April 15, 2021. (C) SBA DEBENTURES AND BORROWINGS Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year On July 31, 2020, MCI accepted a commitment from the SBA for $25,000,000 in debenture financing. As part of the acceptance, MCI paid the SBA a $250,000 commitment fee. The commitment is valid for approximately five years and expires September 24, 2024. $8,500,000 of the commitments has been reserved to replace debentures which matured in 2021. The remaining balance of $16,500,000 is drawable upon the infusion of $8,250,000 of capital from either the capitalization of retained earnings or capital infusion from the Company. As of March 31, 2021, none of the commitments had been drawn. (D) PREFERRED SECURITIES In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (0.19% at March 31, 2021) plus 2.13%. The notes mature in September 2037 (E) NOTES PAYABLE TO BANKS The Company and its subsidiaries have entered into note agreements with a variety of local and regional banking institutions over the years. The notes are typically secured by various assets of the underlying borrower. The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of March 31, 2021.
Borrower (Dollars in thousands)
# of Lenders/Notes
Note Dates
Maturity Dates
Type
Note Amounts
Balance Outstanding at March 31, 2021
Payment
Average Interest Rate at March 31, 2021
Interest Rate Index (1)
Medallion Financial Corp.
3/3
4/11 - 8/14
8/21-12/21
Term loans and demand notes secured by pledged loans (2)
$
9,172
(2)
$
9,172
Interest only (3)
3.91
%
Various (3)
Medallion Chicago
2/23
11/11 - 12/11
4/21-12/21
Term loans secured by owned Chicago medallions (4)
18,449
8,873
$134 of principal & interest paid monthly
3.50
%
N/A
Medallion Funding
1/1
11/18
12/23
1,400
770
$70 principal & interest paid quarterly
4.00
%
N/A
$
29,021
$
18,815
(1)
At March 31, 2021, 30-day LIBOR was 0.11%, 360-day LIBOR was 0.28%, and the prime rate was 3.25%.
(2)
One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
(3)
Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $85.
(4)
Guaranteed by the Company. In April 2021, the Company used some of the proceeds of the privately placed notes to pay off fourteen of its notes payable to banks aggregating $6,703,000 principal amount, due in April 2021, resulting in a gain on debt extinguishment of $2,316,000. In March 2021, the Company used some of the proceeds of the privately placed notes to pay off two of its notes payable to banks aggregating $ 5,207,000 principal amount , one with a maturity of April 15, 2021 and one with a maturity of September 1, 2021 , resulting in a gain on debt extinguishment of $ 1,767,000 . In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. See Note 15 for more information. (F) OTHER BORROWINGS In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty. (Refer to Note 11 for more details.) At March 31, 2021, the total outstanding on these notes was $7,479,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2022. Additionally, RPAC has a short term promissory note to an unrelated party for $500,000 due on December 31, 2021. On June 17, 2020, RPAC was approved for and received a Paycheck Protection Program, or PPP, loan under the CARES Act. As of March 31, 2021, the total outstanding balance of such loan was $747,000 at a 1.00% annual interest rate due in five years. Under the terms of the note, RPAC could be granted forgiveness for all or a portion of the balance if the loan proceeds are used in accordance with the requirements set forth in the PPP. As of March 31, 2021, RPAC had not applied for forgiveness of this loan. (G) COVENANT COMPLIANCE Certain of the Company’s debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth. The Company was in compliance with such restrictions as of March 31, 2021.

Leases

Leases3 Months Ended
Mar. 31, 2021
Leases [Abstract]
Leases(6) LEASES The Company has leased premises that expire at various dates through November 30, 2027 subject to various operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances. The following table presents the operating lease costs and additional information for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Operating lease costs
$
572
$
596
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
675
692
Right-of-use asset obtained in exchange for lease liability
(18
)
(14
) The following table presents the breakout of the operating leases as of March 31, 2021 and December 31, 2020.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Operating lease right-of-use assets
$
11,244
$
11,737
Other current liabilities
2,048
2,004
Operating lease liabilities
10,464
11,018
Total operating lease liabilities
12,512
13,022
Weighted average remaining lease term
6.1 years
6.4 years
Weighted average discount rate
5.54
%
5.54
% At March 31, 2021, maturities of the lease liabilities were as follows:
(Dollars in thousands)
Remainder of 2021
$
1,849
2022
2,406
2023
2,356
2024
2,373
2025
2,390
Thereafter
3,521
Total lease payments
$
14,895
Less imputed interest
2,383
Total operating lease liabilities
$
12,512

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
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 our deferred and other tax assets and liabilities as of March 31, 2021 and December 31, 2020.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Goodwill and other intangibles
$
(44,662
)
$
(44,799
)
Provision for loan losses
19,275
19,556
Net operating loss carryforwards (1)
27,847
30,493
Accrued expenses, compensation, and other assets
717
1,174
Unrealized gains on other investments
(6,243
)
(6,769
)
Total deferred tax liability
(3,066
)
(345
)
Valuation allowance
(462
)
(462
)
Deferred tax liability, net
(3,528
)
(807
)
Taxes receivable
859
1,757
Net deferred and other tax assets (liabilities)
$
(2,669
)
$
950
(1)
As of March 31, 2021, the Company and its subsidiaries had an estimated $113,613 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $27,385 as of March 31, 2021. The components of our tax (provision) benefit for the three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Current
Federal
$

$

State
(170
)
(86
)
Deferred
Federal
(3,053
)
2,525
State
(655
)
810
Net (provision) benefit for income taxes
$
(3,878
)
$
3,249
The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Statutory Federal income tax (provision) benefit at 21%
$
(2,719
)
$
3,412
State and local income taxes, net of federal income tax benefit
(532
)
638
Change in state income tax accruals
(170
)
(46
)
Change in effective state income tax rate
200
(378
)
Income attributable to non-controlling interest
219
(216
)
Non deductible expenses
(172
)
(214
)
Other
(704
)
53
Total income tax (provision) benefit
$
(3,878
)
$
3,249
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of March 31, 2021. 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 2018 through the present are the more significant filings that are open for examination.

Stock Options and Restricted St

Stock Options and Restricted Stock3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Options and Restricted Stock(8) STOCK OPTIONS AND RESTRICTED STOCK The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 2018 Plan, which was approved by the Company’s stockholders on June 15, 2018. The terms of 2018 Plan provide for grants of a variety of different type of stock awards to the Company’s employees and non-employee directors, including options, restricted stock, restricted stock units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020. A total of 2,210,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 392,746 remained issuable as of March 31, 2021. 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 Employee Restricted Stock Plan, or the 2015 Restricted Stock Plan, on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provided for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock were issuable under the 2015 Restricted Stock Plan, and 241,919 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. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever occurs first. The Company had a stock option plan, or the 2006 Stock Option Plan, available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of Directors on February 15, 2006 and shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan was administered by the Compensation Committee of the Board of Directors. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. The term and vesting periods of the options were determined by the Compensation Committee, provided that the maximum term of an option could not exceed a period of ten years. The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan, or the 2015 Director Plan, on March 12, 2015, which was approved by the Company’s shareholders on June 5, 2015, and on which exemptive relief to implement the 2015 Director Plan was received from the SEC on February 29, 2016. A total of 300,000 shares of the Company’s common stock were issuable under the 2015 Director Plan, and 258,334 remained issuable as of June 15, 2018. Effective June 15, 2018, the 2018 Plan was approved, and these remaining shares were rolled into the 2018 Plan. Under the 2015 Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the 2015 Director Plan, the Company granted options to purchase 12,000 shares of the Company’s common stock to a non-employee director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years. The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan, or the Amended Director Plan, on April 16, 2009, which was approved by the Company’s shareholders on June 5, 2009, and on which exemptive relief to implement the Amended Director Plan was received from the SEC on July 17, 2012. A total of 200,000 shares of the Company’s common stock were issuable under the Amended Director Plan. No additional shares are available for issuance under the Amended Director Plan. Under the Amended Director Plan, unless otherwise determined by a committee of the Board of Directors comprised of directors who are not eligible for grants under the Amended Director Plan, the Company would grant options to purchase 9,000 shares of the Company’s common stock to an Eligible Director upon election to the Board of Directors, with an adjustment for directors who were elected to serve less than a full term. The option price per share could not be less than the current market value of the Company’s common stock on the date the option was granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options could not exceed ten years. Additional shares are only available for future issuance under the 2018 Plan. At March 31, 2021, 1,264,315 options on the Company’s common stock were outstanding under the Company’s plans, of which 361,363 options were exercisable. Additionally there were 452,522 unvested shares of the Company’s common stock outstanding and 62,780 unvested restricted share units under the Company’s restricted stock plans. The fair value of each restricted stock grant is determined on the date of grant by the closing market price of the Company’s common stock on the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average fair value of options granted was $3.24 per share and $3.30 per share for the three months ended March 31, 2021 and 2020. The following assumption categories are used to determine the value of any option grants.
Three Months Ended March 31,
2021
2020
Risk free interest rate
0.97
%
1.46
%
Expected dividend yield


Expected life of option in years (1)
6.25
6.25
Expected volatility (2)
53.98
50.18
(1)
Expected life is calculated using the simplified method.
(2)
We determine our expected volatility based on our historical volatility. The following table presents the activity for the stock option programs for the 2021 first quarter and the 2020 full year.
Number of Options
Exercise Price Per Share
Weighted Average Exercise Price
Outstanding at December 31, 2019
550,040
$
2.14-13.53
$
6.58
Granted
444,557
4.89-6.68
6.24
Cancelled
(42,928
)
2.22-13.53
6.91
Exercised (1)



Outstanding at December 31, 2020
951,669
2.14-12.55
6.41
Granted
317,398
6.79
6.79
Cancelled
(3,984
)
6.55-7.25
6.89
Exercised (1)
(768
)
6.55-7.25
6.79
Outstanding at March 31, 2021
1,264,315
2.14-12.55
6.50
Options exercisable at March 31, 2021 (2)
361,363
2.14-15.55
6.50
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $1,000 and $0 for the three months ended March 31, 2021 and 2020.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2021 and the related exercise price of the underlying options, was $789,000 for outstanding options and $282,000 for exercisable options as of March 31, 2021. The remaining contractual life was 8.75 years for outstanding options and 7.73 years for exercisable options at March 31, 2021. The following table presents the activity for the restricted stock programs for the 2021 first quarter and the 2020 full year.
Number of Shares
Grant Price Per Share
Weighted Average Exercise Price
Outstanding at December 31, 2019
284,879
$
3.95-7.25
$
6.01
Granted
229,408
4.89-6.68
6.21
Cancelled
(8,755
)
3.95-7.25
6.93
Vested (1)
(89,392
)
3.95-6.55
5.37
Outstanding at December 31, 2020
416,140
4.39-7.25
6.24
Granted
163,561
6.79
6.79
Cancelled
(7,602
)
4.89-7.25
5.96
Vested (1)
(119,577
)
4.39-7.25
6.09
Outstanding at March 31, 2021
452,522
4.80-7.25
6.48
(1)
The aggregate fair value of the restricted stock vested was $813,000 and $553,000 for the three months ended March 31, 2021 and 2020.
(2)
The aggregate fair value of the restricted stock was $3,190,000 as of March 31, 2021. The remaining vesting period was 3.56 years at March 31, 2021.
During the three months ended March 31, 2021, the Company granted no restricted stock units, or RSUs, and during the year ended December 31, 2020, granted 47,156 RSUs that vest on June 19, 2021 with a grant price of $3.16. For the RSUs granted in 2019, unitholders have the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A, which was done for 15,624 units. The remaining 10,416 units vested and were settled. The following table presents the activity for the unvested options outstanding under the plans for the 2021 first quarter.
Number of Options
Exercise Price Per Share
Weighted Average Exercise Price
Outstanding at December 31, 2020
773,362
$
4.89-7.25
$
6.42
Granted
317,398
6.79
6.79
Cancelled
(2,530
)
6.55-7.25
6.96
Vested
(185,278
)
6.55-7.25
6.67
Outstanding at March 31, 2021
902,952
4.89-7.25
6.50
The intrinsic value of the options vested was $48,000 for the three months ended March 31, 2021.

Segment Reporting

Segment Reporting3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Segment Reporting(9) SEGMENT REPORTING The Company has six business segments, which include four lending and two non-operating segments, which are reflective of how Company management makes decisions about its business and operations. The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank and include loans in all fifty states, with the highest concentrations in Texas, Florida, and California at 15%, 10%, and 9% of loans outstanding and with no other states over 9% as of March 31, 2021. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 60%, 19%, and 11% of the segment portfolio as of March 31, 2021. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in roofs, swimming pools, windows, and solar panels, at 25%, 25%, 13%, and 7% of total home improvement loans outstanding, and with no other product lines over 7% as of March 31, 2021. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 68% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, of which 91% were in New York City as of March 31, 2021. In addition, our non-operating segments include RPAC, which is a race car team, and our corporate and other investments segment which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. As a result of COVID-19, the prior year race season had been suspended from March 15, 2020 through May 17, 2020. As states reopened, NASCAR resumed races and completed all races scheduled in 2020. Commencing in the 2020 second quarter, the Bank began issuing loans related to the new strategic partnership business, which is currently included within the corporate and other investment segment due to its small size. As part of segment reporting, capital ratios for all operating segments have been normalized at 20%, which approximates the percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been allocated to corporate and other investments. The following tables present segment data as of and for the three months ended March 31, 2021 and 2020.
Consumer Lending
Corp.
Three Months Ended March 31, 2021 (Dollars in thousands)
Recreation
Home Improvement
Commercial Lending
Medallion Lending
RPAC
and Other Investments
Consolidated
Total interest income
$
27,442
$
7,918
$
1,482
$
(69
)
$

$
307
$
37,080
Total interest expense
2,794
1,208
572
1,370
41
2,422
8,407
Net interest income (loss)
24,648
6,710
910
(1,439
)
(41
)
(2,115
)
28,673
Provision for loan losses (benefit)
3,613
450

(1,044
)


3,019
Net interest income (loss) after loss provision
21,035
6,260
910
(395
)
(41
)
(2,115
)
25,654
Sponsorship and race winnings




2,473

2,473
Race team related expenses




(2,122
)

(2,122
)
Other income (expense), net
(5,463
)
(1,914
)
(460
)
(2,144
)
(1,761
)
(1,314
)
(13,056
)
Net income (loss) before taxes
15,572
4,346
450
(2,539
)
(1,451
)
(3,429
)
12,949
Income tax (provision) benefit
(4,010
)
(1,119
)
(113
)
637
364
363
(3,878
)
Net income (loss)
$
11,562
$
3,227
$
337
$
(1,902
)
$
(1,087
)
$
(3,066
)
$
9,071
Balance Sheet Data
Total loans, net
$
794,554
$
336,763
$
55,567
$
11,177
$

$
3,345
$
1,201,406
Total assets
807,244
348,456
71,922
116,639
32,724
311,765
1,688,750
Total funds borrowed
641,993
277,672
59,533
92,469
8,726
266,366
1,346,759
Selected Financial Ratios
Return on average assets
5.92
%
3.80
%
1.79
%
(6.40
)%
(13.27
)%
(4.16
)%
2.08
%
Return on average equity
29.59
19.00
8.96
(31.98
)
(378.20
)
(30.80
)
11.09
Interest yield
14.36
9.66
10.37
(2.34
)
N/A
N/A
11.84
Net interest margin
12.90
8.19
6.37
(48.86
)
N/A
N/A
9.18
Reserve coverage
3.45
1.57
0.00
(1)
68.29
N/A
N/A
4.59
Delinquency status (2)
0.40
0.04
0.13
(1)
2.20
N/A
N/A
0.33
Charge-off ratio
1.35
0.30
0.00
(3)
(2.55
)
N/A
N/A
0.95
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.
Consumer Lending
Corp.
Three Months Ended March 31, 2020 (Dollars in thousands)
Recreation
Home Improvement
Commercial Lending
Medallion Lending
RPAC
and Other Investments
Consolidated
Total interest income
$
26,334
$
5,887
$
1,758
$
1,002
$

$
561
$
35,542
Total interest expense
3,566
1,287
657
1,849
40
1,601
9,000
Net interest income (loss)
22,768
4,600
1,101
(847
)
(40
)
(1,040
)
26,542
Provision for loan losses
10,601
1,536

4,404


16,541
Net interest income (loss) after loss provision
12,167
3,064
1,101
(5,251
)
(40
)
(1,040
)
10,001
Sponsorship and race winning




2,573

2,573
Race team related expenses




(2,130
)

(2,130
)
Other income (expense), net
(7,372
)
(2,340
)
(895
)
(8,573
)
(1,845
)
(5,669
)
(26,694
)
Net income (loss) before taxes
4,795
724
206
(13,824
)
(1,442
)
(6,709
)
(16,250
)
Income tax (provision) benefit
(1,226
)
(185
)
(51
)
3,445
359
907
3,249
Net income (loss)
$
3,569
$
539
$
155
$
(10,379
)
$
(1,083
)
$
(5,802
)
$
(13,001
)
Balance Sheet Data as of March 31, 2020
Total loans, net
$
712,881
$
252,392
$
64,911
$
96,192
$

$
3,346
$
1,129,722
Total assets
725,337
261,743
83,864
201,959
30,171
231,321
1,534,395
Total funds borrowed
577,715
208,519
68,469
160,812
7,830
153,300
1,176,645
Balance Sheet Data as of December 31, 2020
Total loans, net
$
765,338
$
328,876
$
62,037
$
12,725
$

$
3,314
$
1,172,290
Total assets
777,605
340,494
80,622
124,554
33,711
285,425
1,642,411
Total funds borrowed
621,735
272,284
65,924
98,636
8,689
244,987
1,312,255
Selected Financial Ratios as of March 31, 2020
Return on average assets
2.00
%
0.84
%
0.74
%
(19.90
)%
(14.12
)%
(9.74
)%
(3.57
)%
Return on average equity
10.02
4.20
3.69
(98.50
)
NM
(29.89
)
(16.56
)
Interest yield
15.08
9.53
10.40
3.93
N/A
N/A
11.82
Net interest margin
13.04
7.43
6.51
(3.32
)
N/A
N/A
8.80
Reserve coverage
3.03
1.37
0.00
(1)
22.71
N/A
N/A
4.57
Delinquency status (2)
0.73
0.08
0.16
(1)
1.21
N/A
N/A
0.60
Charge-off ratio
3.65
1.03
0.00
(3)
6.11
N/A
N/A
3.08
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies(10) COMMITMENTS AND CONTINGENCIES (A) EMPLOYMENT AGREEMENTS The Company has employment agreements with certain key officers for either a one-, two- or five-year term. Annually, the contracts with a five-year term will generally renew for new five-year terms unless prior to the end of the first year of each five-year term, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or two-year terms unless prior to the term either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current one or two-year terms; however, there is currently one agreement that renews after two years for additional one- year terms. In the event of a change in control, as defined, during the employment period, the agreements provide for severance compensation to the executive in an amount equal to the balance of the salary, bonus, and value of fringe benefits which the executive would be entitled to receive for the remainder of the employment period. Employment agreements expire at various dates through 2025, with future minimum payments under these agreements of approximately $10,720,000. (B) OTHER COMMITMENTS The Company had no commitments to extend credit or make investments outstanding at March 31, 2021. 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) LITIGATION The Company and its subsidiaries become defendants to various legal proceedings arising from the normal course of business. In the opinion of management, based on the advice of legal counsel, 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. (D) REGULATORY In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of FSVC’s transfer to liquidation status and the restructure of the FSVC loan described in Note 5.

Related Party Transactions

Related Party Transactions3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions(11) RELATED PARTY TRANSACTIONS Certain directors, officers and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and the Bank, as well as other subsidiaries. Officer salaries are set by the Board of Directors of the Company. Jeffrey Rudnick, the son of one of the Company’s directors, was an officer of LAX Group, LLC (LAX), one of the Company’s equity investments that sold its assets on December 16, 2020. In January 2020, Mr. Rudnick received a salary from LAX of $178,000 per year, which was reduced to $133,000 in the 2020 second quarter, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year-end bonus. In addition, Mr. Rudnick provided consulting services to the Company directly for a monthly retainer of $4,200. Effective March 1, 2021, Mr. Rudnick serves as the Company’s Senior Vice President at a salary of $195,000 per year and is no longer providing consulting services to the Company. The Company’s subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which it makes an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Mr. Petty of $7,479,000 that earns interest at an annual rate of 2% through March 31, 2021, none of which has been paid to date.

Fair Value of Financial Instrum

Fair Value of Financial Instruments3 Months Ended
Mar. 31, 2021
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) Book value equals fair value. (b) The Company’s equity securities are recorded at cost less any impairment plus or minus observable price changes. (c) The Company’s investments are recorded at the estimated fair value of such investments. (d) The Company’s loans are recorded at book value which approximated fair value. (e) Due to the short-term nature of these instruments, the carrying amount approximated fair value. (f) The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At March 31, 2021 and December 31, 2020, the estimated fair value of these off-balance-sheet instruments was not material. (g) —The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.
March 31, 2021
December 31, 2020
(Dollars in thousands)
Carrying Amount
Fair Value
Carrying Amount
Fair Value
Financial assets
Cash, cash equivalents and federal funds sold (1)
$
140,277
$
140,277
$
112,040
$
112,040
Equity investments
9,529
9,529
9,746
9,746
Investment securities
38,081
38,081
46,792
46,792
Loans receivable
1,201,406
1,201,406
1,172,290
1,172,290
Accrued interest receivable (2)
9,215
9,215
10,338
10,338
Equity securities (3)
1,972
1,972


Financial liabilities
Funds borrowed (4)
1,346,759
1,346,772
1,312,255
1,312,591
Accrued interest payable (2)
4,762
4,762
4,673
4,673
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1,500 in interest bearing deposits categorized as level 2 as of March 31, 2021 and December 31, 2020. 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.
( 4 )
As of March 31, 2021 and December 31, 2020, publicly traded retail notes traded at a premium to par of $13 and $336.

Fair Value of Assets and liabil

Fair Value of Assets and liabilities3 Months Ended
Mar. 31, 2021
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). Our assessment and classification of an investment within a level can change over time based upon maturity or liquidity of the investment and would be reflected at the beginning of the quarter in which the change occurred. As required by FASB ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a level 3 fair value measurement may include inputs that are observable (levels 1 and 2) and unobservable (level 3). Therefore gains and losses for such assets and liabilities categorized within the level 3 table below may include changes in fair value that are attributable to both observable inputs (levels 1 and 2) and unobservable inputs (level 3). Assets and liabilities measured at fair value, recorded on the consolidated balance sheets, are categorized based on the inputs to the valuation techniques as follows: Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access (examples include active exchange-traded equity securities, exchange-traded derivatives, most US Government and agency securities, and certain other sovereign government obligations). Level 2. Assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
A)
Quoted prices for similar assets or liabilities in active markets (for example, restricted stock);
B)
Quoted price for identical or similar assets or liabilities in non-active markets (for example, corporate and municipal bonds, which trade infrequently);
C)
Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including interest rate and currency swaps); and
D)
Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability (examples include certain residential and commercial mortgage-related assets, including loans, securities, and derivatives). Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the assets or liability (examples include certain private equity investments, and certain residential and commercial mortgage-related assets, including loans, securities, and derivatives). A review of fair value hierarchy classification is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain assets or liabilities. Reclassifications impacting level 3 of the fair value hierarchy are reported as transfers in/out of the level 3 category as of the beginning of the quarter in which the reclassifications occur. Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Interest-bearing deposits
$

$
1,500
$

$
1,500
Available for sale investment securities

38,081

38,081
Equity securities
1,972


1,972
Total (1)
$
1,972
$
39,581
$

$
41,553
(1)
Total unrealized loss of $605, net of tax, was included in accumulated other comprehensive income (loss) for the three months ended March 31, 2021 related to these assets.
December 31, 2020 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Interest-bearing deposits
$

$
1,500
$

$
1,500
Available for sale investment securities (1)

46,792

46,792
Total
$

$
48,292
$

$
48,292
(1)
Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets.
The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Equity investments
$

$

$
9,529
$
9,529
Impaired loans


57,282
57,282
Loan collateral in process of foreclosure


50,733
50,733
Total
$

$

$
117,544
$
117,544
December 31, 2020 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Equity investments
$

$

$
9,746
$
9,746
Impaired loans


62,174
62,174
Loan collateral in process of foreclosure


54,560
54,560
Total
$

$

$
126,480
$
126,480
Significant Unobservable Inputs ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as level 3 within the fair value hierarchy. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Company. The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of March 31, 2021 and December 31, 2020.
(Dollars in thousands)
Fair Value at 3/31/21
Valuation Techniques
Unobservable Inputs
Range (Weighted Average)
Equity investments
$
8,074
Investee financial analysis
Financial condition and operating performance of the borrower (1)
N/A
Collateral support
N/A
1,455
(4)
Precedent market transaction
Offering price
$8.73 / share
Impaired loans
57,282
Market approach
Historical and actual loss experience
1.50% - 6.00%
60% of balance
Transfer prices (2)
$0.0 - 79.5
Collateral value
N/A
Loan collateral in process of foreclosure
50,733
Market approach
Transfer prices (2)
$0.0 - 79.5
Collateral value (3)
$0.7 - 31.1
(Dollars in thousands)
Fair Value at 12/31/20
Valuation Techniques
Unobservable Inputs
Range (Weighted Average)
Equity investments
$
8,291
Investee financial analysis
Financial condition and operating performance of the borrower (1)
N/A
Collateral support
N/A
1,455
Precedent market transaction
Offering price
$8.73 / share
Impaired loans
62,174
Market approach
Historical and actual loss experience
1.50% - 6.00%
60% of balance
Transfer prices (2)
$0.6 - 108.7
Collateral value
N/A
Loan collateral in process of foreclosure
53,128
Market approach
Transfer prices (2)
$0.6 - 108.7
1,432
Collateral value (3)
$0.7 - 32.3
(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 portfolio.
(4)
Subsequent to quarter end .

Medallion Bank Preferred Stock

Medallion Bank Preferred Stock (Non-controlling Interest)3 Months Ended
Mar. 31, 2021
Medallion Bank [Member]
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 $46,000,000 aggregate liquidation amount, yielding net proceeds of $42,485,000, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be three-month Secured Overnight Financing Rate, or SOFR) plus a spread of 6.46% per annum. On July 21, 2011, the Bank issued, and the US Treasury purchased 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E, or Series E, for an aggregate purchase price of $26,303,000 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.

Variable Interest Entities

Variable Interest Entities3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Variable Interest Entities(15) VARIABLE INTEREST ENTITIES During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are considered a variable interest. This conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty. See Note 5 for more details. The Company’s interest in Trust III is accounted for as an equity investment and has a value of $0 as of March 31, 2021 and December 31, 2020. In addition, the Company remains the servicer of the assets of Trust III for a fee In December 2008, Trust III entered into the DZ loan agreement with DZ Bank, to provide up to $200,000,000 of financing through a commercial paper conduit to acquire medallion loans from MFC, or the DZ loan. The loan, which has an outstanding balance of $86,750,000, currently terminates on May 15, 2021. Borrowings under the DZ loan are collateralized by Trust III’s assets.

Subsequent Events

Subsequent Events3 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events(16) SUBSEQUENT EVENTS One of the notes payable to banks with an outstanding amount of $528,000 with a maturity date of August 31, 2021 was extended until December 31, 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Use of EstimatesUse of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US, or GAAP, requires management to make estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. Accounting estimates and assumptions are those that management considers to be the most critical to an understanding of the consolidated financial statements because they inherently involve significant judgments and uncertainties. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these consolidated financial statements. If such conditions change, it is reasonably possible that the judgments and estimates could change, which may result in future impairments of loans and loan collateral in process of foreclosure, goodwill and intangible assets, and investments, among other effects.
Principles of ConsolidationPrinciples of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.
Cash and Cash EquivalentsCash 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. Cash includes $2,970,000 of an interest reserve associated with the private placements of debt in March and August 2019, which cannot be used for any other purpose until March 2022. Cash also includes $1,500,000 of interest-bearing funds deposited in other banks, that are mainly callable, with terms of 4 to 7 years.
Fair Value of Assets and LiabilitiesFair 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 InvestmentsEquity 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 $9,529,000 and $9,746,000 at March 31, 2021 and December 31, 2020, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. As of March 31, 2021 and December 31, 2020, the Company determined that there was no impairment or observable price change. In the 2021 first quarter, the Company purchased $2,000,000 of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in earnings, and the fair value of these securities of $1,972,000 as of March 31, 2021 are included in other assets on the consolidated balance sheet. The table below presents the unrealized portion related to the equity securities held as of March 31, 2021.
(Dollars in thousands)
March 31, 2021
Net losses recognized during the period on equity securities
$
(28
)
Less: Net gains (losses) recognized during the period on equity securities sold during the period

Unrealized losses recognized during the reporting period on equity securities still held at the reporting date
$
(28
)
Investment SecuritiesInvestment 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 $235,000 at March 31, 2021 and $278,000 at December 31, 2020, and $43,000 and $55,000 was amortized to interest income for the three months ended March 31, 2021 and 2020. Refer to Note 3 for more details. 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.
LoansLoans The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, and therefore changed the Company’s financial reporting from investment company accounting to bank holding company accounting. As a result, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At March 31, 2021 and December 31, 2020, net loan origination costs were $21,618,000 and $20,684,000. Net amortization to income for the three months ended March 31, 2021 and 2020 was $1,656,000 and $1,304,000. Interest income is recorded on the accrual basis. Medallion and commercial loans are placed on nonaccrual status, and all uncollected accrued interest is reversed, when there is doubt as to the collectability of interest or principal, or if loans are 90 days or more past due, unless management has determined that they are both well-secured and in the process of collection. Interest income on nonaccrual loans is generally recognized when cash is received, unless a determination has been made to apply all cash receipts to principal. The consumer portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Management considers loans that are in bankruptcy status, but have not been charged-off, to be impaired. These 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 collection and 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 to write 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 a recovery. Total loans 90 days or more past due were $4,118,000 at March 31, 2021, or 0.33% of the total loan portfolio, compared to $6,878,000, or 0.57% at December 31, 2020. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants concessions to the borrower for other than an insignificant period of time that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring, or TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize the economic loss to the Company and to avoid foreclosure or repossession of the collateral. For modifications where the Company forgives principal, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs are considered impaired loans. Beginning in the third quarter 2019, all consumer loans which are party to a Chapter 13 bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is to take an immediate 40 % write down of the loan balance . As a result of the Consolidated Appropriations Act, the Coronavirus Aid, Relief, and Economic Security Act , or the CARES Act , relief period was extended to the later of January 1, 2022 or 60 days after the date which the coronavirus, or COVID-19, national emergency terminates . During the relief period , companies may elect to (a) suspend the requirements of GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs and (b) suspend any determination of a loan modified as a result of the effects of COVID-19 as a TDR, including impairment for accounting purposes. Any such suspension is applicable for the term of the loan modification, but solely with respect to any modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019, and shall not apply to any adverse impact on the credit of a borrower that is not related to COVID-19. As of March 31, 2021, there were no consumer or medallion loan modifications related to COVID-19 that would have otherwise been classified as a TDR, and therefore there was no need for the Company to elect this relief under the CARES Act during 2020 and 2021 . However, we expect to have loan modifications related to COVID-19 that would apply under this provision of the CARES Act in the future . Loan collateral in process of foreclosure primarily includes medallion loans that have reached 120 days past due and have been charged-down to their net realizable value, in addition to consumer repossessed collateral in the process of being sold. The medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower, to the liquidation of the collateral securing the loans. The Company had $11,020,000 and $15,367,000 of net loans pledged as collateral under borrowing arrangements at March 31, 2021 and December 31, 2020. The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing, or FASB ASC 860, which provides accounting and reporting standards for transfers and servicing of financial assets and extinguishments of liabilities. In accordance with FASB ASC 860, the Company had elected the fair value measurement method for its servicing assets and liabilities. The principal portion of loans serviced for others by the Company and its affiliates was $106,325,000 at March 31, 2021 and $107,131,000 at December 31, 2020. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and the Bank, and determined that no material servicing asset or liability existed as of March 31, 2021 and December 31, 2020. The Company assigned its servicing rights of the Bank’s portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from the Bank by MSC.
Allowance for Loan LossesAllowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one-year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at. For medallion loans, delinquent nonperforming loans are valued at collateral value for the most recent quarter. Collateral value for the medallion loans is generally determined utilizing factors deemed relevant under the circumstances of the market including but not limited to: actual transfers, pending transfers, median and average sales prices, discounted cash flows, market direction and sentiment, and general economic trends for the industry and economy. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result of COVID-19, there was an increase in the reserve percentages of 50 basis points on the recreation subprime loan business during 2020, of which there was an increase of 25-50 basis points for the three months ended March 31, 2020. In addition, the Company determined that anticipated payment activity on the medallion portfolio was impossible to quantify upon exit of the six-month deferral period with borrowers, and therefore deemed all such loans as impaired in the third quarter of 2020. As a result, all medallion loans were placed on nonaccrual and written down to collateral value, net of liquidation costs, of $79,500 for New York City medallions. The Company continues to monitor the impact of COVID-19 on the consumer, commercial, and medallion loans. Had there been no payment deferrals offered to borrowers under the CARES Act, potential loans 90 days or more past due would have resulted in increased reserves and/or charge-offs. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.
Goodwill and Intangible AssetsGoodwill and Intangible Assets The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third-party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of March 31, 2021, December 31, 2020, and March 31, 2020, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $50,729,000, $51,090,000, and $52,175,000, and the Company recognized $361,000 of amortization expense on the intangible assets for the three months ended March 31, 2021 and 2020. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $2,530,000, $2,717,000, and $5,429,000 were outstanding at March 31, 2021, December 31, 2020, and March 31, 2020, and of which $187,000 and $329,000 were amortized to interest income for the three months ended March 31, 2021 and 2020. The table below shows the details of the intangible assets as of the dates presented.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Brand-related intellectual property
$
18,699
$
18,974
Home improvement contractor relationships
5,865
5,951
Race organization
26,165
26,165
Total intangible assets, net
$
50,729
$
51,090
Fixed AssetsFixed 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 $84,000 and $121,000 for the three months ended March 31, 2021 and 2020.
Deferred CostsDeferred Costs Deferred financing costs represent costs associated with obtaining the Company’s borrowing facilities, and are amortized on a straight line basis over the lives of the related financing agreements and life of the respective pool. Amortization expense was $645,000 and $723,000 for the three months ended March 31, 2021 and 2020. In addition, the Company capitalizes certain costs for transactions in the process of completion (other than business combinations), including those for potential investments, and the sourcing of other financing alternatives. Upon completion or termination of the transaction, any accumulated amounts will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $6,523,000, $5,805,000, and $4,674,000 as of March 31, 2021, December 31, 2020, and March 31, 2020.
Income TaxesIncome 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.
Sponsorship and Race WinningsSponsorship and Race Winnings The Company accounts for sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized when the Company’s performance obligations are completed in accordance with the contract terms of the sponsorship contract. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver.
Earnings (Loss) Per Share (EPS)Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share are computed by dividing net income (loss) resulting from operations available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if option contracts to issue common stock were exercised, or if restricted stock vests, and has been computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and restricted stock. The Company uses the treasury stock method to calculate diluted EPS, which is a method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants, including unvested compensation expense related to the shares, in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period. The table below shows the calculation of basic and diluted EPS.
Three Months Ended March 31,
(Dollars in thousands, except share and per share data)
2021
2020
Net income (loss) resulting from operations available to common stockholders
$
8,431
$
(13,643
)
Weighted average common shares outstanding applicable to basic EPS
24,518,775
24,401,773
Effect of dilutive stock options
21,168

Effect of restricted stock grants
355,165

Adjusted weighted average common shares outstanding applicable to diluted EPS
24,895,108
24,401,773
Basic income (loss) per share
$
0.34
$
(0.56
)
Diluted income (loss) per share
0.34
(0.56
) Potentially dilutive common shares excluded from the above calculations aggregated 1,188,455 and 807,368 shares as of March 31, 2021 and 2020.
Stock CompensationStock Compensation The Company follows FASB ASC Topic 718, or ASC 718, Compensation – Stock Compensation, for its equity incentive, stock option, and restricted stock plans, and accordingly, the Company recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options are reflected in net income resulting from operations for any new grants using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option. Stock-based employee compensation costs pertaining to restricted stock are reflected in net income resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock. During the three months ended March 31, 2021 and 2020, the Company issued 163,561 and 165,674 restricted shares of stock-based compensation awards, issued 317,398 and 335,773 shares of other stock-based compensation awards, and issued no restricted stock units; and recognized $498,000 and $466,000, or $0.02 and $0.02 per share, for the three months ended March 31, 2021 and 2020, of non-cash stock-based compensation expense related to the grants. As of March 31, 2021, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $4,100,000, which is expected to be recognized over the next 16 quarters
Regulatory CapitalRegulatory 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%, which could preclude its ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of March 31, 2021, the Bank’s Tier 1 leverage ratio was 18.03%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.
Regulatory
(Dollars in thousands)
Minimum
Well- Capitalized
March 31, 2021
December 31, 2020
Common equity Tier 1 capital


$
159,268
$
148,507
Tier 1 capital


228,056
217,295
Total capital


244,623
233,460
Average assets


1,265,004
1,283,664
Risk-weighted assets


1,276,656
1,243,783
Leverage ratio (1)
4.0
%
5.0
%
18.0
%
16.9
%
Common equity Tier 1 capital ratio (2)
7.0
6.5
12.5
11.9
Tier 1 capital ratio (3)
8.5
8.0
17.9
17.5
Total capital ratio (3)
10.5
10.0
19.2
18.8
(1)
Calculated by dividing Tier 1 capital by average assets.
(2)
Calculated by subtracting preferred stock or non-controlling interest from Tier 1 capital and dividing by risk-weighted assets.
(3)
Calculated by dividing Tier 1 or total capital by risk-weighted assets. In the table above, the minimum risk-based ratios as of March 31, 2021 and December 31, 2020 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both March 31, 2021 and December 31, 2020.
Recently Issued Accounting StandardsRecently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, or Topic 326: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities, with early adoption permitted. In November 2019, the FASB issued ASU 2019-10 to defer implementation of the standard for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a material impact on the Company’s accounting for estimated credit losses on its loans.
ReclassificationsReclassifications 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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Unrealized Portion Related to Equity SecuritiesThe table below presents the unrealized portion related to the equity securities held as of March 31, 2021.
(Dollars in thousands)
March 31, 2021
Net losses recognized during the period on equity securities
$
(28
)
Less: Net gains (losses) recognized during the period on equity securities sold during the period

Unrealized losses recognized during the reporting period on equity securities still held at the reporting date
$
(28
)
Schedule of Intangible AssetsThe table below shows the details of the intangible assets as of the dates presented.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Brand-related intellectual property
$
18,699
$
18,974
Home improvement contractor relationships
5,865
5,951
Race organization
26,165
26,165
Total intangible assets, net
$
50,729
$
51,090
Summary of the Calculation of Basic and Diluted EPS The table below shows the calculation of basic and diluted EPS.
Three Months Ended March 31,
(Dollars in thousands, except share and per share data)
2021
2020
Net income (loss) resulting from operations available to common stockholders
$
8,431
$
(13,643
)
Weighted average common shares outstanding applicable to basic EPS
24,518,775
24,401,773
Effect of dilutive stock options
21,168

Effect of restricted stock grants
355,165

Adjusted weighted average common shares outstanding applicable to diluted EPS
24,895,108
24,401,773
Basic income (loss) per share
$
0.34
$
(0.56
)
Diluted income (loss) per share
0.34
(0.56
)
Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.
Regulatory
(Dollars in thousands)
Minimum
Well- Capitalized
March 31, 2021
December 31, 2020
Common equity Tier 1 capital


$
159,268
$
148,507
Tier 1 capital


228,056
217,295
Total capital


244,623
233,460
Average assets


1,265,004
1,283,664
Risk-weighted assets


1,276,656
1,243,783
Leverage ratio (1)
4.0
%
5.0
%
18.0
%
16.9
%
Common equity Tier 1 capital ratio (2)
7.0
6.5
12.5
11.9
Tier 1 capital ratio (3)
8.5
8.0
17.9
17.5
Total capital ratio (3)
10.5
10.0
19.2
18.8
(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.

Investment Securities (Tables)

Investment Securities (Tables)3 Months Ended
Mar. 31, 2021
Schedule Of Investments [Abstract]
Summary of Fixed Maturity Securities Available for SaleFixed maturity securities available for sale at March 31, 2021 and December 31, 2020 consisted of the following:
March 31, 2021 (Dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
29,365
$
1,005
$
(219
)
$
30,151
State and municipalities
7,919
92
(81
)
7,930
Total
$
37,284
$
1,097
$
(300
)
$
38,081
December 31, 2020 (Dollars in thousands)
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
34,929
$
1,495
$
(45
)
$
36,379
State and municipalities
10,226
189
(2
)
10,413
Total
$
45,155
$
1,684
$
(47
)
$
46,792
Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual MaturityThe amortized cost and estimated market value of investment securities at March 31, 2021 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.
(Dollars in thousands)
Amortized Cost
Fair Value
Due in one year or less
$
20
$
20
Due after one year through five years
8,678
8,977
Due after five years through ten years
14,006
14,344
Due after ten years
14,580
14,740
Total
$
37,284
$
38,081
Summary of Securities with Gross Unrealized LossesThe following tables show information pertaining to securities with gross unrealized losses at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position.
Less than Twelve Months
Twelve Months and Over
March 31, 2021 (Dollars in thousands)
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
(219
)
$
5,577
$

-
$

State and municipalities
(78
)
3,935
(3
)
127
Total
$
(297
)
$
9,512
$
(3
)
$
127
Less than Twelve Months
Twelve Months and Over
December 31, 2020 (Dollars in thousands)
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Mortgage-backed securities, principally obligations of US federal agencies
$
(45
)
$
4,028
$

$

State and municipalities


(2
)
196
Total
$
(45
)
$
4,028
$
(2
)
$
196

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)3 Months Ended
Mar. 31, 2021
Text Block [Abstract]
Summary of Inclusive Capitalized LoansThe following table shows the major classification of loans, inclusive of capitalized loan origination costs, at March 31, 2021 and December 31, 2020.
March 31, 2021
December 31, 2020
(Dollars in thousands)
Amount
As a Percent of Gross Loans
Amount
As a Percent of Gross Loans
Recreation
$
822,932
65
%
$
792,686
65
%
Home improvement
342,121
27
334,033
27
Commercial
58,854
5
65,327
5
Medallion
35,250
3
37,768
3
Strategic partnership
58

24

Total gross loans
1,259,215
100
%
1,229,838
100
%
Allowance for loan losses
(57,809
)
(57,548
)
Total net loans
$
1,201,406
$
1,172,290
Schedule of Activity of Gross LoansThe following tables show the activity of the gross loans for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31, 2021 (Dollars in thousands)
Recreation
Home Improvement
Commercial
Medallion
Strategic Partnership
Total
Gross loans – December 31, 2020
$
792,686
$
334,033
$
65,327
$
37,768
$
24
$
1,229,838
Loan originations
93,850
48,059
4,156

1,944
148,009
Principal payments, sales, and maturities
(58,427
)
(40,069
)
(10,965
)
(1,825
)
(1,910
)
(113,196
)
Charge-offs, net
(2,584
)
(249
)
75

(2,758
)
Transfer to loan collateral in process of foreclosure, net
(3,053
)


(696
)

(3,749
)
Amortization of origination costs
(2,162
)
497
11
(2
)

(1,656
)
Amortization of loan premium
(41
)
(76
)

(70
)

(187
)
FASB origination costs
2,663
(74
)



2,589
Paid-in-kind interest


325


325
Gross loans – March 31, 2021
$
822,932
$
342,121
$
58,854
$
35,250
$
58
$
1,259,215
Three Months Ended March 31, 2020 (Dollars in thousands)
Recreation
Home Improvement
Commercial
Medallion
Total
Gross loans – December 31, 2019
$
713,332
$
247,324
$
69,767
$
130,432
$
1,160,855
Loan originations
69,643
33,465
2,175

105,283
Principal payments, sales and maturities
(37,070
)
(24,225
)
(3,999
)
(2,075
)
(67,369
)
Charge-offs, net
(6,382
)
(636
)

(1,559
)
(8,577
)
Transfer to loan collateral in process of foreclosure, net
(4,779
)


(2,159
)
(6,938
)
Amortization of origination costs
(1,728
)
441
2
(19
)
(1,304
)
Amortization of loan premium
(52
)
(86
)

(191
)
(329
)
FASB origination costs
2,211
(384
)
19
19
1,865
Paid-in-kind interest


293

293
Gross loans – March 31, 2020
$
735,175
$
255,899
$
68,257
$
124,448
$
1,183,779
Summary of Activity in Allowance for Loan LossesThe following table sets forth the activity in the allowance for loan losses for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Allowance for loan losses – beginning balance
$
57,548
$
46,093
Charge-offs
Recreation
(5,053
)
(8,244
)
Home improvement
(681
)
(1,011
)
Commercial


Medallion
(1,114
)
(1,924
)
Total charge-offs
(6,848
)
(11,179
)
Recoveries
Recreation
2,469
1,862
Home improvement
432
375
Commercial


Medallion
1,189
365
Total recoveries
4,090
2,602
Net charge-offs (1)
(2,758
)
(8,577
)
Provision for loan losses
3,019
16,541
Allowance for loan losses – ending balance (2) (3)
$
57,809
$
54,057
( 1 )
As of March 31, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $282,450, some of which represent collection opportunities for the Company.
( 2 )
As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
(3)
As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
Summary of Allowance for Loan Losses by TypeThe following tables set forth the allowance for loan losses by type as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Amount
Percentage of Allowance
Allowance as a Percent of Loan Category
Allowance as a Percent of Nonaccrual
Recreation
$
28,378
49
%
3.45
%
561.61
%
Home improvement
5,358
9
1.57
NM
Commercial




Medallion
24,073
42
68.29
70.05
Total
$
57,809
100
%
4.59
%
101.61
%
December 31, 2020 (Dollars in thousands)
Amount
Percentage of Allowance
Allowance as a Percent of Loan Category
Allowance as a Percent of Nonaccrual
Recreation
$
27,348
48
%
3.45
%
378.20
%
Home improvement
5,157
9
1.54
NM
Commercial




Medallion
25,043
43
66.31
68.01
Total
$
57,548
100
%
4.68
%
93.17
%
Summary of Total Nonaccrual Loans and Foregone InterestThe following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.
(Dollars in thousands)
March 31, 2021
December 31, 2020
March 31, 2020
Total nonaccrual loans
$
56,893
$
61,767
$
61,635
Interest foregone quarter to date
578
2,306
623
Amount of foregone interest applied to principal in the quarter
169
595
52
Interest foregone life to date
5,086
5,252
3,358
Amount of foregone interest applied to principal life to date
905
792
494
Percentage of nonaccrual loans to gross loan portfolio
5
%
5
%
5
%
Percentage of allowance for loan losses to nonaccrual loans
102
93
88
Summary of Performance Status of LoanThe following tables present the performance status of loans as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Performing
Nonperforming
Total
Percentage of Nonperforming to Total
Recreation
$
817,490
$
5,442
$
822,932
0.66
%
Home improvement
341,971
150
342,121
0.04
Commercial
42,414
16,440
58,854
27.93
Medallion

35,250
(1)
35,250
100.00
Strategic partnership
58

58

Total
$
1,201,933
$
57,282
$
1,259,215
4.55
%
December 31, 2020 (Dollars in thousands)
Performing
Nonperforming
Total
Percentage of Nonperforming to Total
Recreation
$
785,047
$
7,639
$
792,686
0.96
%
Home improvement
333,862
171
334,033
0.05
Commercial
48,731
16,596
65,327
25.40
Medallion

37,768
(1)
37,768
100.00
Strategic partnership
24

24

Total
$
1,167,664
$
62,174
$
1,229,838
5.06
%
(1)
Includes medallion loan premiums of $1,545and $1,615 at March 31, 2021 and December 31, 2020.
Summary of Attributes of Nonperforming Loan PortfolioThe following tables provide additional information on attributes of the nonperforming loan portfolio as of March 31, 2021 and 2020, and December 31, 2020, all of which had an allowance recorded against the principal balance.
March 31, 2021
December 31, 2020
March 31, 2020
(Dollars in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Related Allowance
With an allowance recorded
Recreation
$
5,442
$
5,442
$
188
$
7,639
$
7,639
$
264
$
7,328
$
7,328
$
318
Home improvement
150
150
2
171
171
3
222
222
4
Commercial
16,440
16,447

16,596
16,600

11,862
11,867

Medallion
35,250
35,990
24,073
37,768
38,368
25,043
42,592
43,081
20,011
Total nonperforming loans with an allowance
$
57,282
$
58,029
$
24,263
$
62,174
$
62,778
$
25,310
$
62,004
$
62,498
$
20,333
For the Three Months Ended March 31,
2021
2020
(Dollars in thousands)
Average Investment Recorded
Interest Income Recognized
Average Investment Recorded
Interest Income Recognized
With an allowance recorded
Recreation
$
5,617
$
184
$
7,456
$
161
Home improvement
150

222

Commercial
17,358

11,976
1
Medallion
35,535

45,105
415
Total nonperforming loans with an allowance
$
58,660
$
184
$
64,759
$
577
Summary of Aging of LoansThe following tables show the aging of all loans as of March 31, 2021 and December 31, 2020.
Days Past Due
March 31, 2021 (Dollars in thousands)
30-59
60-89
90 +
Total
Current
Total (1)
Recorded Investment 90 Days and Accruing
Recreation
$
13,371
$
3,908
$
3,152
$
20,431
$
776,728
$
797,159
$

Home improvement
509
193
149
851
343,776
344,627

Commercial


75
75
58,781
58,856

Medallion
1,710
17,048
742
19,500
14,205
33,705

Strategic partnership




58
58

Total
$
15,590
$
21,149
$
4,118
$
40,857
$
1,193,548
$
1,234,405
$

(1)
Excludes loan premiums of $2,530 resulting from purchase price accounting and $22,280 of capitalized loan origination costs.
Days Past Due
December 31, 2020 (Dollars in thousands)
30-59
60-89
90 +
Total
Current
Total (1)
Recorded Investment 90 Days and Accruing
Recreation
$
22,058
$
7,582
$
5,343
$
34,983
$
732,391
$
767,374
$

Home improvement
813
218
170
1,201
335,684
336,885

Commercial


75
75
65,265
65,340

Medallion
2,019
973
1,290
4,282
31,871
36,153

Strategic partnership




24
24

Total
$
24,890
$
8,773
$
6,878
$
40,541
$
1,165,235
$
1,205,776
$

(1)
Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
Summary of TDRsThe following table shows the TDRs which the Company entered into during the three months ended March 31, 2021.
(Dollars in thousands)
Number of Loans
Pre- Modification Investment
Post- Modification Investment
Recreation
18
$
172
$
166
Medallion
8
2,738
2,738
The following table shows the TDRs which the Company entered into during the three months ended March 31, 2020.
(Dollars in thousands)
Number of Loans
Pre- Modification Investment
Post- Modification Investment
Recreation
33
$
502
$
434
Medallion
13
1,121
1,121
Summary of Activities of the Loan Collateral Process of Foreclosure Related to Recreation and Medallion LoansThe following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and medallion loans, for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31, 2021 (Dollars in thousands)
Recreation
Medallion
Total
Loan collateral in process of foreclosure – December 31, 2020
$
1,432
$
53,128
$
54,560
Transfer from loans, net
3,053
749
3,802
Sales
(2,298
)

(2,298
)
Cash payments received

(1,329
)
(1,329
)
Collateral valuation adjustments
(1,217
)
(2,785
)
(4,002
)
Loan collateral in process of foreclosure – March 31, 2021
$
970
$
49,763
$
50,733
Three Months Ended March 31, 2020 (Dollars in thousands)
Recreation
Medallion
Total
Loan collateral in process of foreclosure – December 31, 2019
$
1,476
$
51,235
$
52,711
Transfer from loans, net
4,779
2,159
6,938
Sales
(1,999
)
(300
)
(2,299
)
Cash payments received

(1,708
)
(1,708
)
Collateral valuation adjustments
(2,539
)
(6,286
)
(8,825
)
Loan collateral in process of foreclosure – March 31, 2020
$
1,717
$
45,100
$
46,817

Funds Borrowed (Tables)

Funds Borrowed (Tables)3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Outstanding Balances of Funds BorrowedThe outstanding balances of funds borrowed were as follows:
Payments Due for the Twelve Months Ending March 31,
(Dollars in thousands)
2022
2023
2024
2025
2026
Thereafter
March 31, 2021 (1)
December 31, 2020 (1)
Interest Rate (2)
Deposits (3)
$
398,096
$
244,883
$
193,105
$
116,117
$
134,284
$

$
1,086,485
$
1,067,822
1.61
%
Retail and privately placed notes
33,625

36,000

28,250
42,100
139,975
103,225
8.00
%
SBA debentures and borrowings
14,008
5,000
2,500
12,500
15,500
10,000
59,508
68,008
3.12
%
Preferred securities





33,000
33,000
33,000
2.30
%
Notes payable to banks
18,325
280
210



18,815
31,261
3.72
%
Other borrowings
7,979



747

8,726
8,689
1.91
%
Total
$
472,033
$
250,163
$
231,815
$
128,617
$
178,781
$
85,100
$
1,346,509
$
1,312,005
2.43
%
(1)
Excludes deferred financing costs of $6,523 and $5,805 as of March 31, 2021 and December 31, 2020.
( 2 )
Weighted average contractual rate as of March 31, 2021.
(3)
Balance excludes $250 of strategic partner reserve deposits as of March 31, 2021 and December 31, 2020.
Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve DepositsThe following table presents the maturity of the broker pools, excluding strategic partner reserve deposits, as of March 31, 2021.
(Dollars in thousands)
March 31, 2021
Three months or less
$
137,602
Over three months through six months
108,194
Over six months through one year
152,300
Over one year
688,389
Total deposits
$
1,086,485
Summary of Key Attributes of Various Borrowing Arrangements with LendersThe table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of March 31, 2021.
Borrower (Dollars in thousands)
# of Lenders/Notes
Note Dates
Maturity Dates
Type
Note Amounts
Balance Outstanding at March 31, 2021
Payment
Average Interest Rate at March 31, 2021
Interest Rate Index (1)
Medallion Financial Corp.
3/3
4/11 - 8/14
8/21-12/21
Term loans and demand notes secured by pledged loans (2)
$
9,172
(2)
$
9,172
Interest only (3)
3.91
%
Various (3)
Medallion Chicago
2/23
11/11 - 12/11
4/21-12/21
Term loans secured by owned Chicago medallions (4)
18,449
8,873
$134 of principal & interest paid monthly
3.50
%
N/A
Medallion Funding
1/1
11/18
12/23
1,400
770
$70 principal & interest paid quarterly
4.00
%
N/A
$
29,021
$
18,815
(1)
At March 31, 2021, 30-day LIBOR was 0.11%, 360-day LIBOR was 0.28%, and the prime rate was 3.25%.
(2)
One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
(3)
Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $85.
(4)
Guaranteed by the Company.

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 31, 2021
Leases [Abstract]
Schedule of Operating Lease Costs and Additional InformationThe following table presents the operating lease costs and additional information for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Operating lease costs
$
572
$
596
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
675
692
Right-of-use asset obtained in exchange for lease liability
(18
)
(14
)
Schedule of Breakout of Operating leasesThe following table presents the breakout of the operating leases as of March 31, 2021 and December 31, 2020.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Operating lease right-of-use assets
$
11,244
$
11,737
Other current liabilities
2,048
2,004
Operating lease liabilities
10,464
11,018
Total operating lease liabilities
12,512
13,022
Weighted average remaining lease term
6.1 years
6.4 years
Weighted average discount rate
5.54
%
5.54
%
Schedule of Maturities of the Lease LiabilitiesAt March 31, 2021, maturities of the lease liabilities were as follows:
(Dollars in thousands)
Remainder of 2021
$
1,849
2022
2,406
2023
2,356
2024
2,373
2025
2,390
Thereafter
3,521
Total lease payments
$
14,895
Less imputed interest
2,383
Total operating lease liabilities
$
12,512

Income Taxes (Tables)

Income Taxes (Tables)3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]
Summary of Components of Deferred and Other Tax Assets and LiabilitiesThe following table sets forth the significant components of our deferred and other tax assets and liabilities as of March 31, 2021 and December 31, 2020.
(Dollars in thousands)
March 31, 2021
December 31, 2020
Goodwill and other intangibles
$
(44,662
)
$
(44,799
)
Provision for loan losses
19,275
19,556
Net operating loss carryforwards (1)
27,847
30,493
Accrued expenses, compensation, and other assets
717
1,174
Unrealized gains on other investments
(6,243
)
(6,769
)
Total deferred tax liability
(3,066
)
(345
)
Valuation allowance
(462
)
(462
)
Deferred tax liability, net
(3,528
)
(807
)
Taxes receivable
859
1,757
Net deferred and other tax assets (liabilities)
$
(2,669
)
$
950
(1)
As of March 31, 2021, the Company and its subsidiaries had an estimated $113,613 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $27,385 as of March 31, 2021.
Summary of Components of Tax (Provision) BenefitThe components of our tax (provision) benefit for the three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Current
Federal
$

$

State
(170
)
(86
)
Deferred
Federal
(3,053
)
2,525
State
(655
)
810
Net (provision) benefit for income taxes
$
(3,878
)
$
3,249
Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) BenefitThe following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit for the three months ended March 31, 2021 and 2020.
Three Months Ended March 31,
(Dollars in thousands)
2021
2020
Statutory Federal income tax (provision) benefit at 21%
$
(2,719
)
$
3,412
State and local income taxes, net of federal income tax benefit
(532
)
638
Change in state income tax accruals
(170
)
(46
)
Change in effective state income tax rate
200
(378
)
Income attributable to non-controlling interest
219
(216
)
Non deductible expenses
(172
)
(214
)
Other
(704
)
53
Total income tax (provision) benefit
$
(3,878
)
$
3,249

Stock Options and Restricted _2

Stock Options and Restricted Stock (Tables)3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Assumption Categories Used to Determine Value of Option GrantsThe following assumption categories are used to determine the value of any option grants.
Three Months Ended March 31,
2021
2020
Risk free interest rate
0.97
%
1.46
%
Expected dividend yield


Expected life of option in years (1)
6.25
6.25
Expected volatility (2)
53.98
50.18
(1)
Expected life is calculated using the simplified method.
(2)
We determine our expected volatility based on our historical volatility.
Summary of Activity for Stock Option ProgramsThe following table presents the activity for the stock option programs for the 2021 first quarter and the 2020 full year.
Number of Options
Exercise Price Per Share
Weighted Average Exercise Price
Outstanding at December 31, 2019
550,040
$
2.14-13.53
$
6.58
Granted
444,557
4.89-6.68
6.24
Cancelled
(42,928
)
2.22-13.53
6.91
Exercised (1)



Outstanding at December 31, 2020
951,669
2.14-12.55
6.41
Granted
317,398
6.79
6.79
Cancelled
(3,984
)
6.55-7.25
6.89
Exercised (1)
(768
)
6.55-7.25
6.79
Outstanding at March 31, 2021
1,264,315
2.14-12.55
6.50
Options exercisable at March 31, 2021 (2)
361,363
2.14-15.55
6.50
(1)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $1,000 and $0 for the three months ended March 31, 2021 and 2020.
(2)
The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2021 and the related exercise price of the underlying options, was $789,000 for outstanding options and $282,000 for exercisable options as of March 31, 2021. The remaining contractual life was 8.75 years for outstanding options and 7.73 years for exercisable options at March 31, 2021.
Summary of Activity for Restricted Stock ProgramsThe following table presents the activity for the restricted stock programs for the 2021 first quarter and the 2020 full year.
Number of Shares
Grant Price Per Share
Weighted Average Exercise Price
Outstanding at December 31, 2019
284,879
$
3.95-7.25
$
6.01
Granted
229,408
4.89-6.68
6.21
Cancelled
(8,755
)
3.95-7.25
6.93
Vested (1)
(89,392
)
3.95-6.55
5.37
Outstanding at December 31, 2020
416,140
4.39-7.25
6.24
Granted
163,561
6.79
6.79
Cancelled
(7,602
)
4.89-7.25
5.96
Vested (1)
(119,577
)
4.39-7.25
6.09
Outstanding at March 31, 2021
452,522
4.80-7.25
6.48
(1)
The aggregate fair value of the restricted stock vested was $813,000 and $553,000 for the three months ended March 31, 2021 and 2020.
(2)
The aggregate fair value of the restricted stock was $3,190,000 as of March 31, 2021. The remaining vesting period was 3.56 years at March 31, 2021.
Summary of Activity for Unvested Options OutstandingThe following table presents the activity for the unvested options outstanding under the plans for the 2021 first quarter.
Number of Options
Exercise Price Per Share
Weighted Average Exercise Price
Outstanding at December 31, 2020
773,362
$
4.89-7.25
$
6.42
Granted
317,398
6.79
6.79
Cancelled
(2,530
)
6.55-7.25
6.96
Vested
(185,278
)
6.55-7.25
6.67
Outstanding at March 31, 2021
902,952
4.89-7.25
6.50

Segment Reporting (Tables)

Segment Reporting (Tables)3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment DataThe following tables present segment data as of and for the three months ended March 31, 2021 and 2020.
Consumer Lending
Corp.
Three Months Ended March 31, 2021 (Dollars in thousands)
Recreation
Home Improvement
Commercial Lending
Medallion Lending
RPAC
and Other Investments
Consolidated
Total interest income
$
27,442
$
7,918
$
1,482
$
(69
)
$

$
307
$
37,080
Total interest expense
2,794
1,208
572
1,370
41
2,422
8,407
Net interest income (loss)
24,648
6,710
910
(1,439
)
(41
)
(2,115
)
28,673
Provision for loan losses (benefit)
3,613
450

(1,044
)


3,019
Net interest income (loss) after loss provision
21,035
6,260
910
(395
)
(41
)
(2,115
)
25,654
Sponsorship and race winnings




2,473

2,473
Race team related expenses




(2,122
)

(2,122
)
Other income (expense), net
(5,463
)
(1,914
)
(460
)
(2,144
)
(1,761
)
(1,314
)
(13,056
)
Net income (loss) before taxes
15,572
4,346
450
(2,539
)
(1,451
)
(3,429
)
12,949
Income tax (provision) benefit
(4,010
)
(1,119
)
(113
)
637
364
363
(3,878
)
Net income (loss)
$
11,562
$
3,227
$
337
$
(1,902
)
$
(1,087
)
$
(3,066
)
$
9,071
Balance Sheet Data
Total loans, net
$
794,554
$
336,763
$
55,567
$
11,177
$

$
3,345
$
1,201,406
Total assets
807,244
348,456
71,922
116,639
32,724
311,765
1,688,750
Total funds borrowed
641,993
277,672
59,533
92,469
8,726
266,366
1,346,759
Selected Financial Ratios
Return on average assets
5.92
%
3.80
%
1.79
%
(6.40
)%
(13.27
)%
(4.16
)%
2.08
%
Return on average equity
29.59
19.00
8.96
(31.98
)
(378.20
)
(30.80
)
11.09
Interest yield
14.36
9.66
10.37
(2.34
)
N/A
N/A
11.84
Net interest margin
12.90
8.19
6.37
(48.86
)
N/A
N/A
9.18
Reserve coverage
3.45
1.57
0.00
(1)
68.29
N/A
N/A
4.59
Delinquency status (2)
0.40
0.04
0.13
(1)
2.20
N/A
N/A
0.33
Charge-off ratio
1.35
0.30
0.00
(3)
(2.55
)
N/A
N/A
0.95
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.
Consumer Lending
Corp.
Three Months Ended March 31, 2020 (Dollars in thousands)
Recreation
Home Improvement
Commercial Lending
Medallion Lending
RPAC
and Other Investments
Consolidated
Total interest income
$
26,334
$
5,887
$
1,758
$
1,002
$

$
561
$
35,542
Total interest expense
3,566
1,287
657
1,849
40
1,601
9,000
Net interest income (loss)
22,768
4,600
1,101
(847
)
(40
)
(1,040
)
26,542
Provision for loan losses
10,601
1,536

4,404


16,541
Net interest income (loss) after loss provision
12,167
3,064
1,101
(5,251
)
(40
)
(1,040
)
10,001
Sponsorship and race winning




2,573

2,573
Race team related expenses




(2,130
)

(2,130
)
Other income (expense), net
(7,372
)
(2,340
)
(895
)
(8,573
)
(1,845
)
(5,669
)
(26,694
)
Net income (loss) before taxes
4,795
724
206
(13,824
)
(1,442
)
(6,709
)
(16,250
)
Income tax (provision) benefit
(1,226
)
(185
)
(51
)
3,445
359
907
3,249
Net income (loss)
$
3,569
$
539
$
155
$
(10,379
)
$
(1,083
)
$
(5,802
)
$
(13,001
)
Balance Sheet Data as of March 31, 2020
Total loans, net
$
712,881
$
252,392
$
64,911
$
96,192
$

$
3,346
$
1,129,722
Total assets
725,337
261,743
83,864
201,959
30,171
231,321
1,534,395
Total funds borrowed
577,715
208,519
68,469
160,812
7,830
153,300
1,176,645
Balance Sheet Data as of December 31, 2020
Total loans, net
$
765,338
$
328,876
$
62,037
$
12,725
$

$
3,314
$
1,172,290
Total assets
777,605
340,494
80,622
124,554
33,711
285,425
1,642,411
Total funds borrowed
621,735
272,284
65,924
98,636
8,689
244,987
1,312,255
Selected Financial Ratios as of March 31, 2020
Return on average assets
2.00
%
0.84
%
0.74
%
(19.90
)%
(14.12
)%
(9.74
)%
(3.57
)%
Return on average equity
10.02
4.20
3.69
(98.50
)
NM
(29.89
)
(16.56
)
Interest yield
15.08
9.53
10.40
3.93
N/A
N/A
11.82
Net interest margin
13.04
7.43
6.51
(3.32
)
N/A
N/A
8.80
Reserve coverage
3.03
1.37
0.00
(1)
22.71
N/A
N/A
4.57
Delinquency status (2)
0.73
0.08
0.16
(1)
1.21
N/A
N/A
0.60
Charge-off ratio
3.65
1.03
0.00
(3)
6.11
N/A
N/A
3.08
(1)
Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
(2)
Loans 90 days or more past due.
(3)
Ratio is based on total commercial lending balances, and relates to the total loan business.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)3 Months Ended
Mar. 31, 2021
Investments All Other Investments [Abstract]
Summary of Carrying Values and Fair Values of Financial InstrumentsThe fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.
March 31, 2021
December 31, 2020
(Dollars in thousands)
Carrying Amount
Fair Value
Carrying Amount
Fair Value
Financial assets
Cash, cash equivalents and federal funds sold (1)
$
140,277
$
140,277
$
112,040
$
112,040
Equity investments
9,529
9,529
9,746
9,746
Investment securities
38,081
38,081
46,792
46,792
Loans receivable
1,201,406
1,201,406
1,172,290
1,172,290
Accrued interest receivable (2)
9,215
9,215
10,338
10,338
Equity securities (3)
1,972
1,972


Financial liabilities
Funds borrowed (4)
1,346,759
1,346,772
1,312,255
1,312,591
Accrued interest payable (2)
4,762
4,762
4,673
4,673
(1)
Categorized as level 1 within the fair value hierarchy, excluding $1,500 in interest bearing deposits categorized as level 2 as of March 31, 2021 and December 31, 2020. 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.
( 4 )
As of March 31, 2021 and December 31, 2020, publicly traded retail notes traded at a premium to par of $13 and $336.

Fair Value of Assets and liab_2

Fair Value of Assets and liabilities (Tables)3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value on a Recurring BasisEquity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis, which have been adjusted for all periods presented. The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Interest-bearing deposits
$

$
1,500
$

$
1,500
Available for sale investment securities

38,081

38,081
Equity securities
1,972


1,972
Total (1)
$
1,972
$
39,581
$

$
41,553
(1)
Total unrealized loss of $605, net of tax, was included in accumulated other comprehensive income (loss) for the three months ended March 31, 2021 related to these assets.
December 31, 2020 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Interest-bearing deposits
$

$
1,500
$

$
1,500
Available for sale investment securities (1)

46,792

46,792
Total
$

$
48,292
$

$
48,292
(1)
Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets.
Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring BasisThe following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2021 and December 31, 2020.
March 31, 2021 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Equity investments
$

$

$
9,529
$
9,529
Impaired loans


57,282
57,282
Loan collateral in process of foreclosure


50,733
50,733
Total
$

$

$
117,544
$
117,544
December 31, 2020 (Dollars in thousands)
Level 1
Level 2
Level 3
Total
Assets
Equity investments
$

$

$
9,746
$
9,746
Impaired loans


62,174
62,174
Loan collateral in process of foreclosure


54,560
54,560
Total
$

$

$
126,480
$
126,480
Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and LiabilitiesThe valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of March 31, 2021 and December 31, 2020
(Dollars in thousands)
Fair Value at 3/31/21
Valuation Techniques
Unobservable Inputs
Range (Weighted Average)
Equity investments
$
8,074
Investee financial analysis
Financial condition and operating performance of the borrower (1)
N/A
Collateral support
N/A
1,455
(4)
Precedent market transaction
Offering price
$8.73 / share
Impaired loans
57,282
Market approach
Historical and actual loss experience
1.50% - 6.00%
60% of balance
Transfer prices (2)
$0.0 - 79.5
Collateral value
N/A
Loan collateral in process of foreclosure
50,733
Market approach
Transfer prices (2)
$0.0 - 79.5
Collateral value (3)
$0.7 - 31.1
(Dollars in thousands)
Fair Value at 12/31/20
Valuation Techniques
Unobservable Inputs
Range (Weighted Average)
Equity investments
$
8,291
Investee financial analysis
Financial condition and operating performance of the borrower (1)
N/A
Collateral support
N/A
1,455
Precedent market transaction
Offering price
$8.73 / share
Impaired loans
62,174
Market approach
Historical and actual loss experience
1.50% - 6.00%
60% of balance
Transfer prices (2)
$0.6 - 108.7
Collateral value
N/A
Loan collateral in process of foreclosure
53,128
Market approach
Transfer prices (2)
$0.6 - 108.7
1,432
Collateral value (3)
$0.7 - 32.3
(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 portfolio.
(4)
Subsequent to quarter end .

Organization of Medallion Fin_2

Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)3 Months Ended
Mar. 31, 2021USD ($)MedallionDec. 31, 2020USD ($)Mar. 31, 2020USD ($)
Subsidiary or Equity Method Investee [Line Items]
Purchase price for City of Chicago taxi medallions out of foreclosure $ 8,689,000
Number of medallions purchased out of foreclosure | Medallion159
Net realizable value of medallions $ 2,298,000 $ 2,932,000 $ 3,091,000
Medallion Financing Trust I [Member]
Subsidiary or Equity Method Investee [Line Items]
Aggregate assets of trust $ 36,083,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020Aug. 31, 2019Mar. 31, 2019Apr. 02, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest-bearing funds deposited in other banks $ 1,500,000
Non-marketable securities9,529,000 $ 9,746,000
Investment securities Amortized to interest income43,000 $ 55,000
Net loan origination costs21,618,000 20,684,000
Net amortization to income1,656,000 1,304,000
Premiums in loan portfolio $ 40,857,000 40,541,000
Percentage of write down of loan balance40.00%
Loans pledged as collateral $ 11,020,000 15,367,000
Principal portion of loans serviced, fair value106,325,000 107,131,000
Loans write down to collateral value $ 6,848,000 11,179,000
Intangible assets useful life20 years
Goodwill $ 150,803,000 150,803,000 150,803,000
Intangible assets, net50,729,000 52,175,000 51,090,000
Amortization of intangible assets361,000 361,000
Financing receivable, recorded investment, 90 days past due and still accruing0 0
Depreciation and amortization84,000 121,000
Amortization expense645,000 723,000
Deferred costs $ 6,523,000 $ 4,674,000 $ 5,805,000
Potential dilutive common shares excluded from EPS computation1,188,455 807,368
Stock based compensation award317,398 335,773
Stock based compensation award, Amount $ 498,000 $ 466,000
Stock based compensation award per diluted common share $ 0.02 $ 0.02
Unrecognized compensation cost related to unvested stock options and restricted stock $ 4,100,000
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period48 months
Tier 1 leverage capital ratio18.03%
Capital conversation buffer2.50%2.50%
Restricted Shares [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award163,561 165,674 229,408
Restricted Stock Units [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award0
RPAC [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Premiums in loan portfolio $ 12,387,000
Financing receivable, recorded investment, 90 days past due and still accruing $ 2,530,000 $ 5,429,000 $ 2,717,000
Loan portfolio premium amortized to interest income187,000 $ 329,000
Additional impairment of intangible assets0
Medallion Bank [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of intangible assets0
Additional impairment of goodwill0
New York City [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans write down to collateral value79,500,000
91+ [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Premiums in loan portfolio4,118,000 6,878,000
91+ [Member] | Loans [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Premiums in loan portfolio $ 4,118,000 $ 6,878,000
Total loans more than 90 days past due ,percentage0.33%0.57%
Bank Holding Company Accounting [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net premium on investment securities $ 235,000 $ 278,000
Other Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities, fair value1,972,000
Equity Securities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Purchased of equity securities with readily determinable fair value $ 2,000,000
Private Placement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest reserve $ 2,970,000 $ 2,970,000
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest bearing loan term4 years
Estimated useful life of fixed assets3 years
Tier 1 leverage capital to total assets ratio15.00%
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest bearing loan term7 years
Estimated useful life of fixed assets10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Equity Securities Fv Ni Gain Loss [Abstract]
Net losses recognized during the period on equity securities $ (28)
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (28)

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020
Investments In Loans [Line Items]
Intangibles assets $ 50,729 $ 51,090 $ 52,175
Intellectual Property [Member]
Investments In Loans [Line Items]
Intangibles assets18,699 18,974
Contractor Relationships [Member]
Investments In Loans [Line Items]
Intangibles assets5,865 5,951
Race Organization [Member]
Investments In Loans [Line Items]
Intangibles assets $ 26,165 $ 26,165

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Accounting Policies [Abstract]
Net income (loss) resulting from operations available to common stockholders $ 8,431 $ (13,643)
Weighted average common shares outstanding applicable to basic EPS24,518,775 24,401,773
Effect of dilutive stock options21,168
Effect of restricted stock grants355,165
Adjusted weighted average common shares outstanding applicable to diluted EPS24,895,108 24,401,773
Basic income (loss) per share $ 0.34 $ (0.56)
Diluted income (loss) per share $ 0.34 $ (0.56)

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021USD ($)Dec. 31, 2020USD ($)
Accounting Policies [Abstract]
Regulatory, Minimum, Common equity tier 1 capital $ 0
Regulatory, Minimum, Tier 1 capital0
Regulatory, Minimum, Total capital0
Regulatory, Minimum, Average assets0
Regulatory, Minimum, Risk-weighted assets $ 0
Regulatory, Minimum, Leverage ratio4
Regulatory, Minimum, Common equity tier 1 capital ratio7.00%
Regulatory, Minimum, Tier 1 capital ratio8.5
Regulatory, Minimum, Total capital ratio10.5
Regulatory, Well-Capitalized, Common equity tier 1 capital $ 0
Regulatory, Well-Capitalized, Tier 1 capital0
Regulatory, Well-Capitalized, Total capital0
Regulatory, Well-Capitalized, Average assets0
Regulatory, Well-Capitalized, Risk-weighted assets $ 0
Regulatory, Well-Capitalized, Leverage ratio5
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio6.50%
Regulatory, Well-Capitalized, Tier 1 capital ratio8
Regulatory, Well-Capitalized, Total capital ratio10
Common equity Tier 1 capital $ 159,268 $ 148,507
Tier 1 capital228,056 217,295
Total capital244,623 233,460
Average assets1,265,004 1,283,664
Risk-weighted assets $ 1,276,656 $ 1,243,783
Leverage ratio18 16.9
Common equity Tier 1 capital ratio12.5 11.9
Tier 1 capital ratio17.9 17.5
Total capital ratio19.2 18.8

Investment Securities - Summary

Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost $ 37,284 $ 45,155
Gross Unrealized Gains1,097 1,684
Gross Unrealized Losses(300)(47)
Fair Value38,081 46,792
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost29,365 34,929
Gross Unrealized Gains1,005 1,495
Gross Unrealized Losses(219)(45)
Fair Value30,151 36,379
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost7,919 10,226
Gross Unrealized Gains92 189
Gross Unrealized Losses(81)(2)
Fair Value $ 7,930 $ 10,413

Investment Securities - Summa_2

Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Available-for-sale Securities, Debt Maturities [Abstract]
Amortized Cost, due in one year or less $ 20
Amortized Cost, due after one year through five years8,678
Amortized Cost, due after five years through ten years14,006
Amortized Cost, due after ten years14,580
Amortized Cost37,284 $ 45,155
Market Value, due in one year or less20
Market Value, due after one year through five years8,977
Market Value, due after five years through ten years14,344
Market Value, due after ten years14,740
Market Value, total $ 38,081 $ 46,792

Investment Securities - Summa_3

Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months $ (297) $ (45)
Fair Value, Less than Twelve Months9,512 4,028
Gross Unrealized Losses, Twelve Months and Over(3)(2)
Fair Value, Twelve Months and Over127 196
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months(219)(45)
Fair Value, Less than Twelve Months5,577 4,028
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months(78)
Fair Value, Less than Twelve Months3,935
Gross Unrealized Losses, Twelve Months and Over(3)(2)
Fair Value, Twelve Months and Over $ 127 $ 196

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($)3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Jun. 30, 2019
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 1,234,405,000 [1] $ 1,205,776,000 [2]
Allowance for loan losses(57,809,000)[3],[4](57,548,000) $ (57,548,000) $ (54,057,000)[3],[4] $ (46,093,000)
Net loans receivable1,201,406,000 1,172,290,000 1,129,722,000
Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans1,259,215,000 1,229,838,000 1,183,779,000 $ 1,160,855,000
Allowance for loan losses(57,809,000)(57,548,000)
Net loans receivable $ 1,201,406,000 $ 1,172,290,000
Percentage of total gross loans100.00%100.00%
Recreation [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 797,159,000 [1] $ 767,374,000 [2]
Allowance for loan losses(28,378,000)(27,348,000)
Recreation [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 822,932,000 $ 792,686,000 735,175,000 713,332,000
Percentage of total gross loans65.00%65.00%
Home Improvement [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 344,627,000 [1] $ 336,885,000 [2]
Allowance for loan losses(5,358,000)(5,157,000)
Home Improvement [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 342,121,000 $ 334,033,000 255,899,000 247,324,000
Percentage of total gross loans27.00%27.00%
Commercial [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 58,854,000 $ 65,327,000 68,257,000 69,767,000
Percentage of total gross loans5.00%5.00%
Medallion [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 33,705,000 [1] $ 36,153,000 [2]
Allowance for loan losses(24,073,000)(25,043,000)
Medallion [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 35,250,000 $ 37,768,000 $ 124,448,000 $ 130,432,000
Percentage of total gross loans3.00%3.00%
Strategic Partnership [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 58,000 [1] $ 24,000 [2]
Allowance for loan losses0
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans $ 58,000 $ 24,000
[1]Excludes loan premiums of $2,530 resulting from purchase price accounting and $22,280 of capitalized loan origination costs.
[2]Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
[3]As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[4]As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance[1] $ 1,205,776,000
Charge-offs, net[2](2,758,000) $ (8,577,000)
Transfer to loan collateral in process of foreclosure, net(3,802,000)(6,938,000)
Amortization of origination costs(1,656,000)(1,304,000)
Paid-in-kind interest325,000 293,000
Gross loans, ending balance[3]1,234,405,000
Recreation [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance[1]767,374,000
Transfer to loan collateral in process of foreclosure, net(3,053,000)(4,779,000)
Gross loans, ending balance[3]797,159,000
Home Improvement [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance[1]336,885,000
Gross loans, ending balance[3]344,627,000
Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance[1]36,153,000
Transfer to loan collateral in process of foreclosure, net(749,000)(2,159,000)
Gross loans, ending balance[3]33,705,000
Strategic Partnership [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance[1]24,000
Charge-offs, net0
Gross loans, ending balance[3]58,000
Bank Holding Company Accounting [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance1,229,838,000 1,160,855,000
Loan originations148,009,000 105,283,000
Principal payments, sales, and maturities(113,196,000)(67,369,000)
Charge-offs, net(2,758,000)(8,577,000)
Transfer to loan collateral in process of foreclosure, net(3,749,000)(6,938,000)
Amortization of origination costs(1,656,000)(1,304,000)
Amortization of loan premium(187,000)(329,000)
FASB origination costs2,589,000 1,865,000
Paid-in-kind interest325,000 293,000
Gross loans, ending balance1,259,215,000 1,183,779,000
Bank Holding Company Accounting [Member] | Recreation [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance792,686,000 713,332,000
Loan originations93,850,000 69,643,000
Principal payments, sales, and maturities(58,427,000)(37,070,000)
Charge-offs, net(2,584,000)(6,382,000)
Transfer to loan collateral in process of foreclosure, net(3,053,000)(4,779,000)
Amortization of origination costs(2,162,000)(1,728,000)
Amortization of loan premium(41,000)(52,000)
FASB origination costs2,663,000 2,211,000
Gross loans, ending balance822,932,000 735,175,000
Bank Holding Company Accounting [Member] | Home Improvement [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance334,033,000 247,324,000
Loan originations48,059,000 33,465,000
Principal payments, sales, and maturities(40,069,000)(24,225,000)
Charge-offs, net(249,000)(636,000)
Amortization of origination costs497,000 441,000
Amortization of loan premium(76,000)(86,000)
FASB origination costs(74,000)(384,000)
Gross loans, ending balance342,121,000 255,899,000
Bank Holding Company Accounting [Member] | Commercial [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance65,327,000 69,767,000
Loan originations4,156,000 2,175,000
Principal payments, sales, and maturities(10,965,000)(3,999,000)
Amortization of origination costs11,000 2,000
FASB origination costs19,000
Paid-in-kind interest325,000 293,000
Gross loans, ending balance58,854,000 68,257,000
Bank Holding Company Accounting [Member] | Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance37,768,000 130,432,000
Principal payments, sales, and maturities(1,825,000)(2,075,000)
Charge-offs, net75,000 (1,559,000)
Transfer to loan collateral in process of foreclosure, net(696,000)(2,159,000)
Amortization of origination costs(2,000)(19,000)
Amortization of loan premium(70,000)(191,000)
FASB origination costs19,000
Gross loans, ending balance35,250,000 $ 124,448,000
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance24,000
Loan originations1,944,000
Principal payments, sales, and maturities(1,910,000)
Gross loans, ending balance $ 58,000
[1]Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.
[2]As of March 31, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $282,450, some of which represent collection opportunities for the Company.
[3]Excludes loan premiums of $2,530 resulting from purchase price accounting and $22,280 of capitalized loan origination costs.

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance $ 57,548
Total charge-offs(6,848) $ (11,179)
Total recoveries4,090 2,602
Net charge-offs[1](2,758)(8,577)
Provision for loan losses3,019 16,541
Allowance for loan losses - ending balance[2],[3]57,809 54,057
Recreation [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance27,348
Total charge-offs(5,053)(8,244)
Total recoveries2,469 1,862
Allowance for loan losses - ending balance28,378
Home Improvement [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance5,157
Total charge-offs(681)(1,011)
Total recoveries432 375
Allowance for loan losses - ending balance5,358
Medallion [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance25,043
Total charge-offs(1,114)(1,924)
Total recoveries1,189 $ 365
Allowance for loan losses - ending balance $ 24,073
[1]As of March 31, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $282,450, some of which represent collection opportunities for the Company.
[2]As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3]As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020Jun. 30, 2020Dec. 31, 2019Jun. 30, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loan collateral process of foreclosure $ 50,733,000 [1] $ 46,817,000 $ 54,560,000 [1] $ 52,711,000
Allowance for loan losses57,809,000 [2],[3]54,057,000 [2],[3] $ 57,548,000 $ 57,548,000 $ 46,093,000
Net charge-offs[4]2,758,000 $ 8,577,000
Strategic Partnership [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses0
Net charge-offs0
Medallion Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loan collateral process of foreclosure $ 282,450,000
[1]Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,818 as of March 31, 2021 and $3,535 as of December 31, 2020.
[2]As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[3]As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.
[4]As of March 31, 2021, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the medallion loan portfolio were $282,450, some of which represent collection opportunities for the Company.

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Jun. 30, 2020Mar. 31, 2020[1],[2]Jun. 30, 2019
Financing Receivable Recorded Investment Past Due [Line Items]
Amount $ 57,809 [1],[2] $ 57,548 $ 57,548 $ 54,057 $ 46,093
Percentage of Allowance100.00%100.00%
Allowance as a Percent of Loan Category4.59%4.68%
Allowance as a Percent of Nonaccrual101.61%93.17%
Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount $ 28,378 $ 27,348
Percentage of Allowance49.00%48.00%
Allowance as a Percent of Loan Category3.45%3.45%
Allowance as a Percent of Nonaccrual561.61%378.20%
Home Improvement [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount $ 5,358 $ 5,157
Percentage of Allowance9.00%9.00%
Allowance as a Percent of Loan Category1.57%1.54%
Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount $ 24,073 $ 25,043
Percentage of Allowance42.00%43.00%
Allowance as a Percent of Loan Category68.29%66.31%
Allowance as a Percent of Nonaccrual70.05%68.01%
[1]As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2]As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Receivables [Abstract]
Total nonaccrual loans $ 56,893 $ 61,635 $ 61,767
Interest foregone quarter to date578 623 2,306
Amount of foregone interest applied to principal in the quarter169 52 595
Interest foregone life to date5,086 3,358 5,252
Amount of foregone interest applied to principal life to date $ 905 $ 494 $ 792
Percentage of nonaccrual loans to gross loan portfolio5.00%5.00%5.00%
Percentage of allowance for loan losses to nonaccrual loans102.00%88.00%93.00%

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 1,259,215 $ 1,229,838
Percentage of Nonperforming to Total4.55%5.06%
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 1,201,933 $ 1,167,664
Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans57,282 62,174
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 822,932 $ 792,686
Percentage of Nonperforming to Total0.66%0.96%
Recreation [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 817,490 $ 785,047
Recreation [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans5,442 7,639
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 342,121 $ 334,033
Percentage of Nonperforming to Total0.04%0.05%
Home Improvement [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 341,971 $ 333,862
Home Improvement [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans150 171
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 58,854 $ 65,327
Percentage of Nonperforming to Total27.93%25.40%
Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 42,414 $ 48,731
Commercial [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans16,440 16,596
Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 35,250 $ 37,768
Percentage of Nonperforming to Total100.00%100.00%
Medallion [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans[1] $ 35,250 $ 37,768
Strategic Partnership [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans58 24
Strategic Partnership [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans $ 58 $ 24
[1]Includes medallion loan premiums of $1,545and $1,615 at March 31, 2021 and December 31, 2020.

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Parenthetical) (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Loan premiums $ 2,530 $ 2,717
Medallion [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan premiums $ 1,545 $ 1,615

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance $ 57,282 $ 62,004 $ 62,174
Unpaid principal balance, With related allowance58,029 62,498 62,778
Related Allowance, With related allowance24,263 20,333 25,310
Average Investment Recorded, With related allowance58,660 64,759
Interest Income Recognized, With related allowance184 577
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance5,442 7,328 7,639
Unpaid principal balance, With related allowance5,442 7,328 7,639
Related Allowance, With related allowance188 318 264
Average Investment Recorded, With related allowance5,617 7,456
Interest Income Recognized, With related allowance184 161
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance150 222 171
Unpaid principal balance, With related allowance150 222 171
Related Allowance, With related allowance2 4 3
Average Investment Recorded, With related allowance150 222
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance16,440 11,862 16,596
Unpaid principal balance, With related allowance16,447 11,867 16,600
Average Investment Recorded, With related allowance17,358 11,976
Interest Income Recognized, With related allowance1
Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance35,250 42,592 37,768
Unpaid principal balance, With related allowance35,990 43,081 38,368
Related Allowance, With related allowance24,073 20,011 $ 25,043
Average Investment Recorded, With related allowance $ 35,535 45,105
Interest Income Recognized, With related allowance $ 415

Loans and Allowance for Loan_12

Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due $ 40,857 $ 40,541
Current1,193,548 1,165,235
Total1,234,405 [1]1,205,776 [2]
Accruing0 0
30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due15,590 24,890
60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due21,149 8,773
91+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due4,118 6,878
Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due20,431 34,983
Current776,728 732,391
Total797,159 [1]767,374 [2]
Accruing0 0
Recreation [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due13,371 22,058
Recreation [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due3,908 7,582
Recreation [Member] | 91+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due3,152 5,343
Home Improvement [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due851 1,201
Current343,776 335,684
Total344,627 [1]336,885 [2]
Accruing0 0
Home Improvement [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due509 813
Home Improvement [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due193 218
Home Improvement [Member] | 91+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due149 170
Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due75 75
Current58,781 65,265
Total58,856 [1]65,340 [2]
Accruing0 0
Commercial Loans [Member] | 91+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due75 75
Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due19,500 4,282
Current14,205 31,871
Total33,705 [1]36,153 [2]
Accruing0 0
Medallion [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due1,710 2,019
Medallion [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due17,048 973
Medallion [Member] | 91+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due742 1,290
Strategic Partnership [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Current58 24
Total58 [1]24 [2]
Accruing $ 0 $ 0
[1]Excludes loan premiums of $2,530 resulting from purchase price accounting and $22,280 of capitalized loan origination costs.
[2]Excludes loan premiums of $2,717 resulting from purchase price accounting and $21,345 of capitalized loan origination costs.

Loans and Allowance for Loan_13

Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Receivables [Abstract]
Loan premiums $ 2,530 $ 2,717
Capitalized loan origination costs $ 22,280 $ 21,345

Loans and Allowance for Loan_14

Loans and Allowance for Loan Losses - Additional Information (Detail)3 Months Ended12 Months Ended
Mar. 31, 2021USD ($)TDRMar. 31, 2020USD ($)TDRMar. 31, 2021USD ($)TDRMar. 31, 2020USD ($)TDRDec. 31, 2020USD ($)Jun. 30, 2020USD ($)Jun. 30, 2019USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]
Weighted average loan-to-value ratio362.00%244.00%362.00%244.00%327.00%
Allowance for loan loss $ 57,809,000 [1],[2] $ 54,057,000 [1],[2] $ 57,809,000 [1],[2] $ 54,057,000 [1],[2] $ 57,548,000 $ 57,548,000 $ 46,093,000
Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR8 13
Allowance for loan loss $ 24,073,000 24,073,000 25,043,000
Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR18 33
Allowance for loan loss $ 28,378,000 $ 28,378,000 $ 27,348,000
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR35 28
TDR investment value20,567,000 $ 13,113,000 $ 20,567,000 $ 13,113,000
Allowance for loan loss $ 16,113,000 $ 6,868,000 16,113,000 6,868,000
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR36 106
TDR investment value $ 355,000 $ 1,115,000 355,000 1,115,000
Allowance for loan loss $ 12,000 $ 48,000 $ 12,000 $ 48,000
Troubled Debt Restructuring Defaulted [Member] | Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR0
[1]As of March 31, 2021, there was no allowance for loan losses and net charge-offs related to the strategic partnership loans.
[2]As of September 30, 2020, the general reserves previously recorded for the Company’s medallion loan portfolio had been reversed as all loans had been deemed impaired and written down to collateral value.

Loans and Allowance for Loan_15

Loans and Allowance for Loan Losses - Summary of TDRs (Detail) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)TDRMar. 31, 2020USD ($)TDR
Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of Loans | TDR18 33
Pre- Modification Investment $ 172 $ 502
Post- Modification Investment $ 166 $ 434
Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Number of Loans | TDR8 13
Pre- Modification Investment $ 2,738 $ 1,121
Post- Modification Investment $ 2,738 $ 1,121

Loans and Allowance for Loan_16

Loans and Allowance for Loan Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Loans collateral in process of foreclosure - beginning balance $ 54,560 [1] $ 52,711
Transfer from loans, net3,802 6,938
Sales(2,298)(2,299)
Cash payments received(1,329)(1,708)
Collateral valuation adjustments(4,002)(8,825)
Loans collateral in process of foreclosure - ending balance50,733 [1]46,817
Recreation [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans collateral in process of foreclosure - beginning balance1,432 1,476
Transfer from loans, net3,053 4,779
Sales(2,298)(1,999)
Collateral valuation adjustments(1,217)(2,539)
Loans collateral in process of foreclosure - ending balance970 1,717
Medallion [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans collateral in process of foreclosure - beginning balance53,128 51,235
Transfer from loans, net749 2,159
Sales(300)
Cash payments received(1,329)(1,708)
Collateral valuation adjustments(2,785)(6,286)
Loans collateral in process of foreclosure - ending balance $ 49,763 $ 45,100
[1]Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,818 as of March 31, 2021 and $3,535 as of December 31, 2020.

Funds Borrowed - Schedule of Ou

Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Instrument [Line Items]
2022 $ 472,033
2023250,163
2024231,815
2025128,617
2026178,781
Thereafter85,100
Long term debt[1] $ 1,346,509 $ 1,312,005
Interest Rate[2]2.43%
Deposits [Member]
Debt Instrument [Line Items]
2022[3] $ 398,096
2023[3]244,883
2024[3]193,105
2025[3]116,117
2026[3]134,284
Long term debt[1],[3] $ 1,086,485 1,067,822
Interest Rate[2],[3]1.61%
Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
2022 $ 14,008
20235,000
20242,500
202512,500
202615,500
Thereafter10,000
Long term debt[1] $ 59,508 68,008
Interest Rate[2]3.12%
Retail and Privately Placed Notes [Member]
Debt Instrument [Line Items]
2022 $ 33,625
202436,000
202628,250
Thereafter42,100
Long term debt[1] $ 139,975 103,225
Interest Rate[2]8.00%
Preferred Securities [Member]
Debt Instrument [Line Items]
Thereafter $ 33,000
Long term debt[1] $ 33,000 33,000
Interest Rate[2]2.30%
Other Borrowings [Member]
Debt Instrument [Line Items]
2022 $ 7,979
2026747
Long term debt[1] $ 8,726 8,689
Interest Rate[2]1.91%
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
2022 $ 18,325
2023280
2024210
Long term debt[1] $ 18,815 $ 31,261
Interest Rate[2]3.72%
[1]Excludes deferred financing costs of $6,523 and $5,805 as of March 31, 2021 and December 31, 2020.
[2]Weighted average contractual rate as of March 31, 2021.
[3]Balance excludes $250 of strategic partner reserve deposits as of March 31, 2021 and December 31, 2020.

Funds Borrowed - Schedule of _2

Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($)Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020
Debt Disclosure [Abstract]
Deferred costs $ 6,523,000 $ 5,805,000 $ 4,674,000
Reserve Deposits $ 250,000 $ 250,000

Funds Borrowed - Additional Inf

Funds Borrowed - Additional Information (Detail)Jul. 31, 2020USD ($)Dec. 31, 2007USD ($)Jun. 30, 2007USD ($)sharesApr. 30, 2021USD ($)Mar. 31, 2021USD ($)sharesMar. 31, 2019USD ($)Nov. 30, 2018USD ($)Apr. 30, 2016USD ($)Mar. 31, 2021USD ($)DepositsharesMar. 31, 2019USD ($)Dec. 31, 2020USD ($)sharesMar. 15, 2021USD ($)Feb. 28, 2021USD ($)Aug. 31, 2019USD ($)Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Number of individual with time deposits greater than $100,000 | Deposit0
Listing services deposits from other financial institutions. $ 4,036,000 $ 4,036,000
Maturity dateSep. 24,
2024
Debt instrument remaining amount $ 16,500,000
Debt instrument face amount25,000,000
Commitment fee amount $ 250,000
Commitment term5 years
Debentures borrowed[1]182,225,000 182,225,000 $ 153,718,000
Remaining amount of debenture after deducting leverage fee kept for capitalization of retained earning or capital infusion $ 8,250,000
Debt instrument commitments drawn $ 0 $ 0
Issue of common stock | shares27,985,598 27,985,598 27,828,871
Gain on debt extinguishment $ 1,767,000 $ 1,767,000
Short term promissory note73,937,000 $ 73,937,000 $ 87,334,000
CARES Act [Member]
Debt Instrument [Line Items]
Commitment term5 years
Loan amount747,000 $ 747,000
Annual interest rate1.00%
Richard Petty [Member]
Debt Instrument [Line Items]
Maturity dateMar. 31,
2022
Loan amount7,479,000 $ 7,479,000
Annual interest rate2.00%
Travis Burt [Member]
Debt Instrument [Line Items]
Maturity dateDec. 31,
2021
Short term promissory note500,000 $ 500,000
Dz Bank [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage4.00%
Debt instrument face amount $ 1,400,000
Debt instrument expiration date2023-12
Debenture Mature 2021 [Member]
Debt Instrument [Line Items]
Debentures borrowed $ 8,500,000
Preferred Securities [Member]
Debt Instrument [Line Items]
Maturity dateSep. 30,
2037
Sale of preferred securities $ 35,000,000
Issue of common stock | shares1,083
Preferred securities outstanding $ 33,000,000 $ 33,000,000
Preferred Securities [Member] | 90 day LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate0.19%
Preferred Securities [Member] | LIBOR Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate2.13%
Preferred Securities [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Aggregate principal amount of unsecured junior subordinated notes $ 36,083,000
Preferred Securities [Member] | Third Party Investors [Member]
Debt Instrument [Line Items]
Preferred securities repurchased from a third party investor $ 2,000,000
Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage3.25%3.25%
Loan commitment term4 years 6 months
Commitment fee percentage1.00%
Principal amount of loan $ 34,024,756
Extended maturity dateApr. 30,
2024
Debt instrument commitments amount fully utilized $ 175,485,000 $ 175,485,000
Debt instrument commitments available25,000,000 25,000,000
Debt instrument outstanding amount59,508,000 59,508,000
Debt instrument remaining amount14,008,000 14,008,000
FSVC's [Member]
Debt Instrument [Line Items]
Principal amount of loan $ 33,485,000
Notes Payable to Banks with Maturity of April 15, 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount $ 5,207,000 5,207,000
Maturity dateApr. 15,
2021
Notes Payable to Banks with Maturity of September 1, 2021 [Member]
Debt Instrument [Line Items]
Maturity dateSep. 1,
2021
Subsequent Event [Member]
Debt Instrument [Line Items]
Gain on debt extinguishment $ 2,316,000
Subsequent Event [Member] | Notes Payable to Banks Due in April 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount6,703,000
Retail and Privately Placed Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount $ 30,000,000 $ 33,625,000 $ 30,000,000 $ 33,600,000 $ 25,000,000 $ 6,000,000
Debt instrument interest rate Percentage8.25%9.00%8.25%7.50%7.25%
Maturity date20242021
Maturity dateDec. 31,
2027
Gain loss on sales of loans net $ 4,145,000
Net proceeds from offering $ 31,786,000
Retail and Privately Placed Notes [Member] | 7.25% Unsecured Senior Notes Due February 2026 [Member]
Debt Instrument [Line Items]
Aggregate principal amount $ 3,250,000
Retail and Privately Placed Notes [Member] | 7.50% Unsecured Senior Notes Due December 2027 [Member]
Debt Instrument [Line Items]
Aggregate principal amount $ 8,500,000
Retail and Privately Placed Notes [Member] | Subsequent Event [Member] | 7.25% Unsecured Senior Notes Due February 2026 [Member]
Debt Instrument [Line Items]
Aggregate principal amount3,000,000
Retail and Privately Placed Notes [Member] | Subsequent Event [Member] | 7.50% Unsecured Senior Notes Due December 2027 [Member]
Debt Instrument [Line Items]
Aggregate principal amount $ 11,650,000
Minimum [Member]
Debt Instrument [Line Items]
Time deposits $ 250,000 $ 250,000
Brokerage [Member] | Maximum [Member]
Debt Instrument [Line Items]
Average brokerage fee percentage in relation to the maturity of deposits0.15%
[1]Includes $3,862 and $3,131 of deferred financing costs as of March 31, 2021 and December 31, 2020. Refer to Note 5 for more details.

Funds Borrowed - Summary of Mat

Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail) $ in ThousandsMar. 31, 2021USD ($)
Debt Disclosure [Abstract]
Three months or less $ 137,602
Over three months through six months108,194
Over six months through one year152,300
Over one year688,389
Total deposits $ 1,086,485

Funds Borrowed - Summary of Key

Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) - USD ($)Jul. 31, 2020Mar. 31, 2021Dec. 31, 2020
Notes Payable [Line Items]
Maturity DatesSep. 24,
2024
Note Amounts $ 25,000,000
Average Interest Rate[1]2.43%
Notes Payable to Banks [Member]
Notes Payable [Line Items]
Note Amounts $ 29,021,000
Balance outstanding $ 18,815,000
Average Interest Rate[1]3.72%
Notes Payable to Banks [Member] | Medallion Financial Corp [Member]
Notes Payable [Line Items]
Note DatesApr. 30,
2011
Note DatesAug. 31,
2014
Maturity DatesAug. 31,
2021
Maturity DatesDec. 31,
2021
Type[2]Term loans
and demand
notes secured
by pledged
loans
Note Amounts[2]9,172,000
Balance outstanding $ 9,172,000
Payment[3]Interest
only
Average Interest Rate3.91%
Notes Payable to Banks [Member] | Medallion Chicago [Member]
Notes Payable [Line Items]
Note DatesNov. 30,
2011
Note DatesDec. 31,
2011
Maturity DatesApr. 30,
2021
Maturity DatesDec. 31,
2021
Type[4]Term loans
secured by
owned
Chicago
medallions
Note Amounts18,449,000
Balance outstanding $ 8,873,000
Payment$134 of
principal &
interest
paid
monthly
Average Interest Rate3.50%
Notes Payable to Banks [Member] | Medallion Funding [Member]
Notes Payable [Line Items]
Note DatesNov. 30,
2018
Maturity DatesDec. 31,
2023
Note Amounts $ 1,400,000
Balance outstanding $ 770,000
Payment$70
principal &
interest
paid
quarterly
Average Interest Rate4.00%
[1]Weighted average contractual rate as of March 31, 2021.
[2]One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
[3]Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $85.
[4]Guaranteed by the Company.

Funds Borrowed - Summary of K_2

Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail)3 Months Ended
Mar. 31, 2021USD ($)
Minimum [Member]
Notes Payable [Line Items]
Minimum monthly payments of pledged loan $ 12,000
Maximum [Member]
Notes Payable [Line Items]
Minimum monthly payments of pledged loan $ 85,000
Medallion Financial Corp [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Description of variable rate basis30-day LIBOR was 0.11%, 360-day LIBOR was 0.28%,
Medallion Financial Corp [Member] | 30 Day LIBOR [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage0.11%
Medallion Financial Corp [Member] | 360 Day LIBOR [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage0.28%
Medallion Financial Corp [Member] | Prime Rate [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage3.25%
Medallion Chicago [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Description of variable rate basisOne note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
Debt Instrument interest rate, stated percentage3.75%
Medallion Chicago [Member] | Prime Rate Plus [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Basis spread on variable rate0.50%
Medallion Chicago [Member] | Fixed Interest Rate [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Basis spread on variable rate3.75%
Medallion Chicago [Member] | LIBOR Rate [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Basis spread on variable rate2.00%

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Leases [Abstract]
Operating lease costs $ 572 $ 596
Operating cash flows from operating leases675 692
Right-of-use asset obtained in exchange for lease liability $ (18) $ (14)

Leases - Schedule of Breakout o

Leases - Schedule of Breakout of Operating leases (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets $ 11,244 $ 11,737
Other current liabilities2,048 2,004
Operating lease liabilities10,464 11,018
Total operating lease liabilities $ 12,512 $ 13,022
Weighted average remaining lease term6 years 1 month 6 days6 years 4 months 24 days
Weighted average discount rate5.54%5.54%

Leases - Schedule of Maturities

Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Leases [Abstract]
Remainder of 2021 $ 1,849
20222,406
20232,356
20242,373
20252,390
Thereafter3,521
Total lease payments14,895
Less imputed interest2,383
Total operating lease liabilities $ 12,512 $ 13,022

Income Taxes - Summary of Compo

Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Income Tax Disclosure [Abstract]
Goodwill and other intangibles $ (44,662) $ (44,799)
Provision for loan losses19,275 19,556
Net operating loss carryforwards[1]27,847 30,493
Accrued expenses, compensation, and other assets717 1,174
Unrealized gains on other investments(6,243)(6,769)
Total deferred tax liability(3,066)(345)
Valuation allowance(462)(462)
Deferred tax liability, net(3,528)(807)
Taxes receivable859 1,757
Net deferred and other tax assets (liabilities) $ (2,669) $ 950
[1]As of March 31, 2021, the Company and its subsidiaries had an estimated $113,613 of net operating loss carryforwards, $1,712 of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $27,385 as of March 31, 2021.

Income Taxes - Summary of Com_2

Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards $ 113,613
Net operating loss carryforwards expiration periodexpires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards $ 27,385
December 31, 2026 To December 31, 2035 [Member]
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards $ 1,712

Income Taxes - Summary of Com_3

Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Current
State $ (170) $ (86)
Deferred
Federal(3,053)2,525
State(655)810
Net (provision) benefit for income taxes $ (3,878) $ 3,249

Income Taxes - Summary of Recon

Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Tax Disclosure [Abstract]
Statutory Federal income tax (provision) benefit at 21% $ (2,719) $ 3,412
State and local income taxes, net of federal income tax benefit(532)638
Change in state income tax accruals(170)(46)
Change in effective state income tax rate200 (378)
Income attributable to non-controlling interest219 (216)
Non deductible expenses(172)(214)
Other(704)53
Net (provision) benefit for income taxes $ (3,878) $ 3,249

Income Taxes - Summary of Rec_2

Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Provision) Benefit to Consolidated Actual Income Tax (Provision) Benefit (Parenthetical) (Detail)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Tax Disclosure [Abstract]
Statutory Federal income tax (provision) benefit percentage21.00%21.00%

Stock Options and Restricted _3

Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)Jun. 15, 2018Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020Dec. 31, 2019Mar. 01, 2016Feb. 29, 2016Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option outstanding1,264,315 951,669 550,040
Stock option exercisable[1]361,363
Unvested shares of common stock outstanding902,952 773,362
Weighted average fair value of options granted $ 6.79
Intrinsic value of options vested $ 48,000
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding62,780
Number of shares, granted0
Restricted Stock Units [Member] | Vest on June 19, 2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding47,156
Number of shares, granted0 47,156
Vesting period1 year
Exercise price for grant per share $ 3.16
Number of shares vested with deferred settlement15,624
Number of shares vested and settled10,416
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding452,522 416,140 284,879
Weighted average fair value of options granted $ 3.24 $ 3.30
Number of shares, granted163,561 165,674 229,408
Exercise price for grant per share $ 6.79 $ 6.21
Number of shares vested and settled[2]119,577 89,392
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant241,919 2,210,968
Shares were rolled into the 2018 Plan392,746
2015 Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant700,000
Unvested shares of common stock outstanding452,522
2006 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of maximum number of shares approved800,000
Number of additional shares available for issuance0
2006 Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options term10 years
2015 Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant258,334 300,000
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 grant12,000
2015 Director Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options term10 years
Amended Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant200,000
Number of additional shares available for issuance0
Amended Director Plan [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant9,000
Amended Director Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options term10 years
[1]The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2021 and the related exercise price of the underlying options, was $789,000 for outstanding options and $282,000 for exercisable options as of March 31, 2021. The remaining contractual life was 8.75 years for outstanding options and 7.73 years for exercisable options at March 31, 2021.
[2]The aggregate fair value of the restricted stock vested was $813,000 and $553,000 for the three months ended March 31, 2021 and 2020.

Stock Options and Restricted _4

Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]
Risk free interest rate0.97%1.46%
Expected life of option in years[1]6 years 3 months6 years 3 months
Expected volatility[2]53.98%50.18%
[1]Expected life is calculated using the simplified method.
[2]We determine our expected volatility based on our historical volatility.

Stock Options and Restricted _5

Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options beginning balance951,669 550,040
Granted317,398 444,557
Cancelled(3,984)(42,928)
Exercised[1](768)0
Number of options ending balance1,264,315 951,669
Options exercisable[2]361,363
Exercise price per share, lower range limit beginning balance $ 2.14 $ 2.14
Exercise price per share, upper range limit beginning balance12.5513.53
Exercise price per share, granted6.79
Exercise price per share, exercised[1]0
Exercise price per share, lower range limit ending balance2.142.14
Exercise price per share, upper range limit ending balance12.5512.55
Exercise price per share, option exercisable lower range limit[2]2.14
Exercise price per share, option exercisable upper range limit[2]15.55
Weighted average exercise price, beginning balance6.416.58
Weighted average exercise price, granted6.796.24
Weighted average exercise price, cancelled6.896.91
Weighted average exercise price, exercised[1]6.790
Weighted average exercise price, ending balance6.506.41
Weighted average exercise price, options exercisable[2]6.50
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, granted4.89
Exercise price per share, cancelled6.552.22
Exercise price per share, exercised[1]6.55
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, granted6.68
Exercise price per share, cancelled7.25 $ 13.53
Exercise price per share, exercised $ 7.25
[1]The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at the exercise date and the related exercise price of the underlying options, was $1,000 and $0 for the three months ended March 31, 2021 and 2020.
[2]The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at March 31, 2021 and the related exercise price of the underlying options, was $789,000 for outstanding options and $282,000 for exercisable options as of March 31, 2021. The remaining contractual life was 8.75 years for outstanding options and 7.73 years for exercisable options at March 31, 2021.

Stock Options and Restricted _6

Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Aggregate intrinsic value for option exercised $ 1,000 $ 0
Aggregate intrinsic value of option outstanding789,000
Aggregate intrinsic value of option exercisable $ 282,000
Remaining contractual life of option outstanding8 years 9 months
Remaining contractual life of option exercisable7 years 8 months 23 days

Stock Options and Restricted _7

Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant price per share, cancelled, lower limit $ 6.55
Grant price per share, cancelled, upper limit $ 7.25
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, beginning balance416,140 284,879 284,879
Number of shares, granted163,561 165,674 229,408
Number of shares, cancelled(7,602)(8,755)
Number of shares, vested[1](119,577)(89,392)
Number of shares, ending balance452,522 416,140
Grant price per share, lower range limit beginning balance $ 4.39 $ 3.95 $ 3.95
Grant price per share, upper range limit beginning balance7.257.257.25
Grant price per share, granted, lower limit4.89
Grant price per share, granted, upper limit6.68
Grant price per share, cancelled, lower limit4.893.95
Grant price per share, cancelled, upper limit7.257.25
Grant price per share, vested, lower limit[1]4.393.95
Grant price per share, vested, upper limit[1]7.256.55
Grant price per share, lower range limit ending balance4.804.39
Grant price per share, upper range limit ending balance7.257.25
Grant price per share, granted6.79
Weighted average grant price beginning balance6.24 $ 6.01 6.01
Weighted average grant price, granted6.796.21
Weighted average grant price, cancelled5.966.93
Weighted average grant price, vested[1]6.095.37
Weighted average grant price, ending balance $ 6.48 [2] $ 6.24
[1]The aggregate fair value of the restricted stock vested was $813,000 and $553,000 for the three months ended March 31, 2021 and 2020.
[2]The aggregate fair value of the restricted stock was $3,190,000 as of March 31, 2021. The remaining vesting period was 3.56 years at March 31, 2021.

Stock Options and Restricted _8

Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate fair value of restricted stock vested $ 813,000 $ 553,000
Aggregate fair value of restricted stock outstanding $ 3,190,000
Remaining vesting period of restricted stock3 years 6 months 21 days

Stock Options and Restricted _9

Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward
Number of options beginning balance773,362
Number of options, granted317,398 444,557
Number of options, cancelled(2,530)
Number of options, vested(185,278)
Number of options ending balance902,952 773,362
Exercise price per share beginning balance, Lower limit $ 4.89
Exercise price per share beginning balance, Upper limit7.25
Exercise price per share, Granted6.79
Exercise price per share, Cancelled, Lower limit6.55
Exercise price per share, Cancelled, Upper limit7.25
Exercise price per share, Vested, Lower limit6.55
Exercise price per share, Vested, Upper limit7.25
Exercise price per share ending balance, Lower limit4.89 $ 4.89
Exercise price per share ending balance, Upper limit7.257.25
Weighted average exercise price6.42
Weighted average exercise price, granted6.79
Weighted average exercise price, cancelled6.96
Weighted average exercise price, vested6.67
Weighted average exercise price $ 6.50 $ 6.42

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)3 Months Ended
Mar. 31, 2021SegmentDec. 31, 2020
Segment Reporting Disclosure [Line Items]
Number of business segments6
Number of operating segments4
Number of non-operating segments2
Capital ratios for operating segments12.5 11.9
Operating Segments [Member]
Segment Reporting Disclosure [Line Items]
Capital ratios for operating segments20
Roofs [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent25.00%
Swimming Pools [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent25.00%
Windows [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent13.00%
Solar Panels [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent7.00%
Texas [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent15.00%
Florida [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent10.00%
California [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent9.00%
Geographic Concentration Risk [Member] | Recreational Vehicles [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending60.00%
Geographic Concentration Risk [Member] | Boats [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending19.00%
Geographic Concentration Risk [Member] | Trailers [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending11.00%
Geographic Concentration Risk [Member] | Midwest [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending68.00%
Geographic Concentration Risk [Member] | New York City [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending91.00%

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Segment Reporting Disclosure [Line Items]
Total interest income $ 37,080 $ 35,542
Total interest expense8,407 9,000
Net interest income28,673 26,542
Provision for loan losses (benefit)3,019 16,541
Net interest income after provision for loan losses25,654 10,001
Sponsorship and race winnings2,473 2,573
Race team related expenses(2,122)(2,130)
Other income (expense), net(13,056)(26,694)
Income (loss) before income taxes12,949 (16,250)
Income tax (provision) benefit(3,878)3,249
Net income (loss)9,071 (13,001)
Balance Sheet Data
Total loans, net1,201,406 1,129,722 $ 1,172,290
Total assets1,688,750 1,534,395 1,642,411
Total funds borrowed $ 1,346,759 $ 1,176,645 1,312,255
Selected Financial Ratios
Return on average assets2.08%(3.57%)
Return on average equity11.09%(16.56%)
Interest yield11.84%11.82%
Net interest margin9.18%8.80%
Reserve coverage4.59%4.57%
Delinquency status[1]0.33%0.60%
Charge-off ratio0.95%3.08%
RPAC [Member]
Segment Reporting Disclosure [Line Items]
Total interest expense $ 41 $ 40
Net interest income(41)(40)
Net interest income after provision for loan losses(41)(40)
Sponsorship and race winnings2,473 2,573
Race team related expenses(2,122)(2,130)
Other income (expense), net(1,761)(1,845)
Income (loss) before income taxes(1,451)(1,442)
Income tax (provision) benefit364 359
Net income (loss)(1,087)(1,083)
Balance Sheet Data
Total assets32,724 30,171 33,711
Total funds borrowed $ 8,726 $ 7,830 8,689
Selected Financial Ratios
Return on average assets(13.27%)(14.12%)
Return on average equity(378.20%)
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]
Segment Reporting Disclosure [Line Items]
Total interest income $ 27,442 $ 26,334
Total interest expense2,794 3,566
Net interest income24,648 22,768
Provision for loan losses (benefit)3,613 10,601
Net interest income after provision for loan losses21,035 12,167
Other income (expense), net(5,463)(7,372)
Income (loss) before income taxes15,572 4,795
Income tax (provision) benefit(4,010)(1,226)
Net income (loss)11,562 3,569
Balance Sheet Data
Total loans, net794,554 712,881 765,338
Total assets807,244 725,337 777,605
Total funds borrowed $ 641,993 $ 577,715 621,735
Selected Financial Ratios
Return on average assets5.92%2.00%
Return on average equity29.59%10.02%
Interest yield14.36%15.08%
Net interest margin12.90%13.04%
Reserve coverage3.45%3.03%
Delinquency status[1]0.40%0.73%
Charge-off ratio1.35%3.65%
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Total interest income $ 7,918 $ 5,887
Total interest expense1,208 1,287
Net interest income6,710 4,600
Provision for loan losses (benefit)450 1,536
Net interest income after provision for loan losses6,260 3,064
Other income (expense), net(1,914)(2,340)
Income (loss) before income taxes4,346 724
Income tax (provision) benefit(1,119)(185)
Net income (loss)3,227 539
Balance Sheet Data
Total loans, net336,763 252,392 328,876
Total assets348,456 261,743 340,494
Total funds borrowed $ 277,672 $ 208,519 272,284
Selected Financial Ratios
Return on average assets3.80%0.84%
Return on average equity19.00%4.20%
Interest yield9.66%9.53%
Net interest margin8.19%7.43%
Reserve coverage1.57%1.37%
Delinquency status[1]0.04%0.08%
Charge-off ratio0.30%1.03%
Operating Segments [Member] | Commercial Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income $ 1,482 $ 1,758
Total interest expense572 657
Net interest income910 1,101
Net interest income after provision for loan losses910 1,101
Other income (expense), net(460)(895)
Income (loss) before income taxes450 206
Income tax (provision) benefit(113)(51)
Net income (loss)337 155
Balance Sheet Data
Total loans, net55,567 64,911 62,037
Total assets71,922 83,864 80,622
Total funds borrowed $ 59,533 $ 68,469 65,924
Selected Financial Ratios
Return on average assets1.79%0.74%
Return on average equity8.96%3.69%
Interest yield10.37%10.40%
Net interest margin6.37%6.51%
Reserve coverage[2]0.00%0.00%
Delinquency status[1],[2]0.13%0.16%
Charge-off ratio[3]0.00%0.00%
Operating Segments [Member] | Medallion Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income $ (69) $ 1,002
Total interest expense1,370 1,849
Net interest income(1,439)(847)
Provision for loan losses (benefit)(1,044)4,404
Net interest income after provision for loan losses(395)(5,251)
Other income (expense), net(2,144)(8,573)
Income (loss) before income taxes(2,539)(13,824)
Income tax (provision) benefit637 3,445
Net income (loss)(1,902)(10,379)
Balance Sheet Data
Total loans, net11,177 96,192 12,725
Total assets116,639 201,959 124,554
Total funds borrowed $ 92,469 $ 160,812 98,636
Selected Financial Ratios
Return on average assets(6.40%)(19.90%)
Return on average equity(31.98%)(98.50%)
Interest yield(2.34%)3.93%
Net interest margin(48.86%)(3.32%)
Reserve coverage68.29%22.71%
Delinquency status[1]2.20%1.21%
Charge-off ratio(2.55%)6.11%
Intersegment Eliminations [Member]
Segment Reporting Disclosure [Line Items]
Total interest income $ 307 $ 561
Total interest expense2,422 1,601
Net interest income(2,115)(1,040)
Net interest income after provision for loan losses(2,115)(1,040)
Other income (expense), net(1,314)(5,669)
Income (loss) before income taxes(3,429)(6,709)
Income tax (provision) benefit363 907
Net income (loss)(3,066)(5,802)
Balance Sheet Data
Total loans, net3,345 3,346 3,314
Total assets311,765 231,321 285,425
Total funds borrowed $ 266,366 $ 153,300 $ 244,987
Selected Financial Ratios
Return on average assets(4.16%)(9.74%)
Return on average equity(30.80%)(29.89%)
[1]Loans 90 days or more past due.
[2]Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.
[3]Ratio is based on total commercial lending balances, and relates to the total loan business.

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)3 Months Ended
Mar. 31, 2021USD ($)
Commitments And Contingencies [Abstract]
Employment agreements expiration descriptionEmployment agreements expire at various dates through 2025
Future minimum payments $ 10,720,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)Mar. 01, 2021Mar. 31, 2021Jan. 31, 2020Mar. 31, 2021Jun. 30, 2020Mar. 31, 2020
Related Party Transaction [Line Items]
Repayments of note payable $ 144,944,000 $ 107,402,000
LAX Group,LLC [Member] | Senior Vice President [Member]
Related Party Transaction [Line Items]
Salary from related party $ 195,000
Officer [Member] | LAX Group,LLC [Member]
Related Party Transaction [Line Items]
Salary from related party $ 178,000 $ 133,000
Consulting services revenue from related party $ 4,200
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member]
Related Party Transaction [Line Items]
Equity ownership percentage by a related party10.00%
Common stock vesting percentage3.34%
Percentage of equity raised from outside investors5.00%
Percentage of bonus received from related party10.00%
Officer [Member] | LAX Group,LLC [Member] | Common Class B [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Valuation of equity raised from outside investors $ 1,500,000
Petty Trust [Member] | RPAC [Member]
Related Party Transaction [Line Items]
Annual payment for services provided to the entity700,000
Note payable to the Petty Trust $ 7,479,000 7,479,000
Interest percentage of Notes payable2.00%
Repayments of note payable $ 0

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Financial assets
Equity investments $ 9,529 $ 9,746
Investment securities38,081 46,792
Loans receivable1,259,215 1,229,838
Carrying Amount [Member]
Financial assets
Cash, cash equivalents and federal funds sold[1]140,277 112,040
Equity investments9,529 9,746
Investment securities38,081 46,792
Loans receivable1,201,406 1,172,290
Accrued interest receivable[2]9,215 10,338
Equity securities, fair value[3]1,972
Financial liabilities
Funds borrowed[4]1,346,759 1,312,255
Accrued interest payable[2]4,762 4,673
Fair Value Recurring [Member]
Financial assets
Cash, cash equivalents and federal funds sold[1]140,277 112,040
Equity investments9,529 9,746
Investment securities38,081 46,792
Loans receivable1,201,406 1,172,290
Accrued interest receivable[2]9,215 10,338
Equity securities, fair value[3]1,972
Financial liabilities
Funds borrowed[4]1,346,772 1,312,591
Accrued interest payable[2] $ 4,762 $ 4,673
[1]Categorized as level 1 within the fair value hierarchy, excluding $1,500 in interest bearing deposits categorized as level 2 as of March 31, 2021 and December 31, 2020. 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.
[4]As of March 31, 2021 and December 31, 2020, publicly traded retail notes traded at a premium to par of $13 and $336.

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($)Mar. 31, 2021Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest-bearing funds deposited in other banks $ 1,500,000
Publicly traded retail notes traded at a premium to par13,000 $ 336,000
Fair Value Recurring [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest-bearing funds deposited in other banks1,500,000 1,500,000
Fair Value Recurring [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest-bearing funds deposited in other banks $ 1,500,000 $ 1,500,000

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)Mar. 31, 2021Dec. 31, 2020
Assets
Interest-bearing deposits $ 1,500,000
Fair Value Recurring [Member]
Assets
Interest-bearing deposits1,500,000 $ 1,500,000
Available for sale investment securities38,081,000 [1]46,792,000 [2]
Equity securities, fair value[3]1,972,000
Total41,553,000 48,292,000
Fair Value Recurring [Member] | Level 1 [Member]
Assets
Equity securities, fair value1,972,000
Total1,972,000
Fair Value Recurring [Member] | Level 2 [Member]
Assets
Interest-bearing deposits1,500,000 1,500,000
Available for sale investment securities38,081,000 [1]46,792,000 [2]
Total $ 39,581,000 $ 48,292,000
[1]Total unrealized loss of $605, net of tax, was included in accumulated other comprehensive income (loss) for the three months ended March 31, 2021 related to these assets.
[2]Total unrealized loss of $1,013, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2020 related to these assets.
[3]Included within other assets on the balance sheet.

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Net change in unrealized gains (losses) on investments, net of tax $ (605) $ 147 $ (1,013)

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Assets
Impaired loans $ 106,325,000 $ 107,131,000
Loan collateral in process of foreclosure50,733,000 [1]54,560,000 [1] $ 46,817,000 $ 52,711,000
Fair Value, Nonrecurring
Assets
Equity investments9,529,000 9,746,000
Impaired loans57,282,000 62,174,000
Loan collateral in process of foreclosure50,733,000 54,560,000
Total117,544,000 126,480,000
Fair Value, Nonrecurring | Level 3 [Member]
Assets
Equity investments9,529,000 9,746,000
Impaired loans57,282,000 62,174,000
Loan collateral in process of foreclosure50,733,000 54,560,000
Total $ 117,544,000 $ 126,480,000
[1]Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,818 as of March 31, 2021 and $3,535 as of December 31, 2020.

Fair Value of Assets and Liab_6

Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)3 Months Ended12 Months Ended
Mar. 31, 2021USD ($)$ / sharesDec. 31, 2020USD ($)$ / sharesMar. 31, 2020USD ($)Dec. 31, 2019USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value $ 106,325,000 $ 107,131,000
Loan collateral in process of foreclosure $ 50,733,000 [1] $ 54,560,000 [1] $ 46,817,000 $ 52,711,000
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Equity Value | $ / shares $ 8.73 $ 8.73
Impaired Loans [Member] | Market Approach [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, balance percentage0.600.60
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans value0.0150 0.0150
Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans value0.0600 0.0600
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value $ 0 $ 600
Impaired Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value79,500 108,700
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 value700 700
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 value31,100 32,300
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 value0 600
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 value79,500 108,700
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 investments8,074,000 8,291,000
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 investments1,455,000 1,455,000
Level 3 [Member] | Impaired Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value57,282,000 62,174,000
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan collateral in process of foreclosure1,432,000
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 $ 50,733,000 $ 53,128,000
[1]Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,818 as of March 31, 2021 and $3,535 as of December 31, 2020.

Fair Value of Assets and Liab_7

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 (Parenthetical) (Detail) - USD ($)May 05, 2021Mar. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on equity investments $ (3,510,000)
Subsequent Event [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Percentage of equity investment sold25.00%
Gain (loss) on equity investments $ 1,527,000

Medallion Bank Preferred Stoc_2

Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($)Dec. 17, 2019Jul. 21, 2011Mar. 31, 2021
Capital Purchase Program [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Preferred stock, liquidation preference per share $ 1,000
U.S. Treasury Securities [Member] | Capital Purchase Program [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
US Treasury shares purchased26,303
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Initial public offering shares1,840,000
Preferred stock, aggregate liquidation amount $ 46,000,000
Preferred stock, net of liquidation amount $ 42,485,000
Percentage of dividend payment rate8.00%
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 basis6.46%
Dividend description of variable rate basisthree-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 rate9.00%
Aggregate purchase price $ 26,303,000

Variable Interest Entities - Ad

Variable Interest Entities - Additional Information (Detail) - USD ($)Jul. 31, 2020Oct. 31, 2018Mar. 31, 2021Dec. 31, 2020Dec. 31, 2008
Variable Interest Entity [Line Items]
Variable interest entity net gain $ 25,325,000
Equity investments $ 9,529,000 $ 9,746,000
Maturity dateSep. 24,
2024
Medallion Financing Trust I [Member]
Variable Interest Entity [Line Items]
Promissory note payable $ 1,400,000
Taxi Medallion Loan Trust III [Member]
Variable Interest Entity [Line Items]
Equity investments0 $ 0
Taxi Medallion Loan Trust III [Member] | DZ Loan [Member] | Commercial Paper [Member]
Variable Interest Entity [Line Items]
Line of credit facility maximum borrowing capacity $ 200,000,000
Long-term debt $ 86,750,000
Maturity dateMay 15,
2021

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail)Jul. 31, 2020Mar. 31, 2021
Subsequent Event [Line Items]
Maturity dateSep. 24,
2024
Notes Payable to Banks with Maturity of August 31, 2021 [Member]
Subsequent Event [Line Items]
Maturity dateAug. 31,
2021
Extended maturity dateDec. 31,
2021