10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-37747

MEDALLION FINANCIAL CORP.

(Exact Name of Registrant as Specified in Its Charter)

DELAWARE	04-3291176
(State of Incorporation)	(IRS Employer Identification No.)

437 MADISON AVENUE, 38^th Floor

NEW YORK, NEW YORK 10022

(Address of Principal Executive Offices) (Zip Code)

(212) 328-2100

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock, par value $0.01 per share 9.000% Senior Notes due 2021	MFIN MFINL	NASDAQ Global Select Market NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ☒    NO  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES  ☒    NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ☐    NO  ☒

The number of outstanding shares of registrant’s Common Stock, par value $0.01, as of October 30, 2019 was 24,609,203.

MEDALLION FINANCIAL CORP.

FORM 10-Q

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION	3
ITEM  1. FINANCIAL STATEMENTS	3
ITEM  2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	46
ITEM  3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	74
ITEM 4. CONTROLS AND PROCEDURES	74
PART II—OTHER INFORMATION	75
ITEM 1. LEGAL PROCEEDINGS	75
ITEM 1A. RISK FACTORS	75
ITEM  2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	75
ITEM 6. EXHIBITS	76
SIGNATURES	77
CERTIFICATIONS

The following discussion should be read in conjunction with our financial statements and the notes to those statements and other financial information appearing elsewhere in this report.

This report contains forward-looking statements relating to future events and future performance applicable to us within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding our expectations, beliefs, intentions, or future strategies that are signified by the words expects, anticipates, intends, believes, or similar language. In connection with certain forward-looking statements contained in this Form 10-Q and those that may be made in the future by or on behalf of the Company, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this Form 10-Q were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory, and other uncertainties and contingencies, all of which are difficult or impossible to predict, and many of which are beyond control of the Company. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statements. The statements have not been audited by, examined by, compiled by, or subjected to agreed-upon procedures by independent accountants, and no third-party has independently verified or reviewed such statements. Readers of this Form 10-Q should consider these facts in evaluating the information contained herein. In addition, the business and operations of the Company are subject to substantial risks which increase the uncertainty inherent in the forward-looking statements contained in this Form 10-Q. The inclusion of the forward-looking statements contained in this Form 10-Q should not be regarded as a representation by the Company or any other person that the forward-looking statements contained in this Form 10-Q will be achieved. In light of the foregoing, readers of this Form 10-Q are cautioned not to place undue reliance on the forward-looking statements contained herein. You should consider these risks and those described under Risk Factors in the Company’s Annual Report on Form 10-K and others that are detailed in the other reports that the Company files from time to time with the Securities and Exchange Commission.

Page 2 of 77

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BASIS OF PREPARATION

We, Medallion Financial Corp., or the Company, are a finance company, organized as a Delaware corporation, that includes Medallion Bank, our primary operating subsidiary. Effective April 2, 2018, following authorization by our shareholders, we withdrew our previous election to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. Prior to such time, we were a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act.

As a result of this change in status, commencing with the three months ended June 30, 2018:

• we consolidated the results of Medallion Bank and our other subsidiaries in our financial statements, which, as an investment company, we were previously precluded from doing; and

• with the consolidation of Medallion Bank, given its significance to our overall financial results, we now report as a bank holding company for accounting purposes under Article 9 and Guide 3 of Regulation S-X, but we are not a bank holding company for regulatory purposes.

In accordance with FASB Accounting Standards Codification, or ASC, Topic 946 – Financial Services – Investment Company, we made this change to our financial reporting prospectively, and have not restated or revised periods prior to our change in status to a non-investment company effective April 2, 2018. Accordingly, in this report we refer to both accounting in accordance with US generally accepted accounting principles, or GAAP, applicable to bank holding companies, or Bank Holding Company Accounting, which applies commencing April 2, 2018, and to that applicable to investment companies under the 1940 Act, or Investment Company Accounting, which applies to prior periods.

We historically have had a leading position in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. Recently, our strategic growth has been through Medallion Bank which originates consumer loans for the purchase of recreational vehicles, boats, and trailers, and to finance small-scale home improvements. Since Medallion Bank acquired a consumer loan portfolio and began originating consumer loans in 2004, it has increased its consumer loan portfolio at a compound annual growth rate of 17% (19% if there had been no loan sales during 2016, 2017, and 2018). In January 2017, we announced our plans to transform our overall strategy. We have transitioned away from medallion lending and have placed our strategic focus on our growing consumer finance portfolio. Total assets under management, which includes our portfolio, as well as assets serviced for third party investors, were $1,649,000,000 as of September 30, 2019, and were $1,522,000,000 as of December 31, 2018, and have grown at a compound annual growth rate of 9% from $215,000,000 at the end of 1996. Since our initial public offering in 1996, we have paid distributions in excess of $263,060,000 or $14.66 per share.

We conduct our business through various wholly-owned subsidiaries including:

• Medallion Bank, or the Bank, an FDIC-insured industrial bank that originates consumer loans, raises deposits, and conducts other banking activities, and has a separate board of directors with a majority of independent directors;

• Medallion Funding LLC, or Medallion Funding, a Small Business Investment Company, or SBIC, our primary taxicab medallion lending company;

• Medallion Capital, Inc., or Medallion Capital, an SBIC which conducts a mezzanine financing business;

• Freshstart Venture Capital Corp., or Freshstart, an SBIC which originates and services taxicab medallion and commercial loans; and

• Medallion Servicing Corp., or MSC, which provides loan services to the Bank.

Our other consolidated subsidiaries are comprised of Medallion Fine Art, Inc., CDI-LP Holdings, Inc., Medallion Motorsports, LLC, and RPAC Racing LLC, or RPAC. In addition, we make both marketable and nonmarketable equity investments, primarily as a function of our mezzanine lending business.

Our consolidated balance sheet as of September 30, 2019, and the related consolidated statements of operations, consolidated statements of other comprehensive income/(loss), consolidated statements of stockholders’ equity and cash flows for the quarter and nine months then ended included in Item 1 have been prepared by us, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the US have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements include all adjustments, which are of a normal and recurring nature, necessary to present fairly our consolidated financial position and results of operations. The results of operations for the quarter and nine months ended September 30, 2019 may not be indicative of future performance. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.

Page 3 of 77

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

UNAUDITED

(Dollars in thousands, except share and per share data)	September 30, 2019			December 31, 2018
Assets
Cash(1)	$	21,724		$	23,842
Federal funds sold		33,291			33,871
Equity investments		9,880			9,197
Investment securities		47,422			45,324
Loans		1,142,282			1,017,882
Allowance for losses		(43,113	)		(36,395	)
Net loans receivable		1,099,169			981,487
Accrued interest receivable		8,040			7,413
Property, equipment, and right-of-use lease asset, net		13,544			1,222
Loan collateral in process of foreclosure(2)		53,539			49,495
Goodwill		150,803			150,803
Intangible assets, net		52,898			53,982
Other assets		29,444			25,210
Total assets	$	1,519,754		$	1,381,846
Liabilities
Accounts payable and accrued expenses(3)	$	18,651		$	18,789
Accrued interest payable		3,511			3,852
Deposits		962,987			848,040
Short-term borrowings		42,503			55,178
Deferred tax liabilities and other tax payables		5,597			6,973
Operating lease liabilities		12,090			—
Long-term debt		181,625			158,810
Total liabilities		1,226,964			1,091,642
Commitments and contingencies(4)
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- 27,560,539    shares at September 30, 2019 and 27,385,600 shares at December 31, 2018 issued)		276			274
Additional paid in capital		275,143			274,292
Treasury stock (2,951,243 shares at September 30, 2019 and December 31, 2018)		(24,919	)		(24,919	)
Accumulated other comprehensive income (loss)		1,240			(82	)
Retained earnings		11,746			13,043
Total stockholders’ equity		263,486			262,608
Non-controlling interest in consolidated subsidiaries		29,304			27,596
Total equity		292,790			290,204
Total liabilities and equity	$	1,519,754		$	1,381,846
Number of shares outstanding		24,609,296			24,434,357
Book value per share	$	10.71		$	10.75

(1) Includes restricted cash of $2,970 as of September 30, 2019.

(2) 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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018.

(3) Includes the short-term portion of lease liabilities of $1,820 as of September 30, 2019. Refer to Note 8 for more details.

(4) Refer to Note 14 for details.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 4 of 77

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Bank Holding Company Accounting						Bank Holding Company Accounting			Combined(1)
(Dollars in thousands, except share and per share data)	For the Three Months Ended September 30, 2019			For the Nine Months Ended September 30, 2019			For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2018
Interest and fees on loans	$	34,081		$	94,833		$	32,692		$	64,718
Interest and dividends on investment securities		521			1,756			430			1,032
Medallion lease income		38			109			30			100
Interest income on investments		—			—			—			3,287
Dividend income from controlled subsidiaries		—			—			—			28
Interest income from affiliated investments		—			—			—			654
Interest income from controlled subsidiaries		—			—			—			10
Total interest income(2)/total investment income(2)		34,640			96,698			33,152			69,829
Interest on deposits		6,003			16,409			5,064			9,264
Interest on short-term borrowings		730			2,616			1,698			3,557
Interest on long-term debt		2,492			6,743			2,125			3,991
Interest expense		—			—			—			3,551
Total interest expense(3)		9,225			25,768			8,887			20,363
Net interest income/net investment income		25,415			70,930			24,265			49,466
Provision for loan losses		8,337			36,851			18,205			48,781
Net interest income after provision for loan losses		17,078			34,079			6,060			685
Other income (loss)
Sponsorship and race winnings		7,940			16,008			5,371			10,599
Change in collateral value on in process of foreclosure		(113	)		(4,204	)		(1,265	)		(1,361	)
Gain on the extinguishment of debt		—			4,145			—			—
Gain on sale of loans		—			—			5,488			5,488
Impairment of equity investments		—			—			(388	)		(862	)
Other income		1,047			1,471			235			515
Total other income, net		8,874			17,420			9,441			14,379
Other expenses
Salaries and employee benefits		6,795			18,457			5,999			13,987
Race team related expenses		2,663			7,211			2,876			5,416
Professional fees		2,277			5,961			3,951			6,920
Collection costs		1,698			4,589			1,381			2,218
Loan servicing fees		1,364			3,851			1,185			2,313
Rent expense		592			1,769			615			1,449
Regulatory fees		252			1,147			563			1,145
Amortization of intangible assets		361			1,084			361			722
Travel, meals, and entertainment		300			770			313			1,122
Other expenses(4)		2,050			6,399			2,220			5,206
Total other expenses		18,352			51,238			19,464			40,498
Income (loss) before income taxes/net investment loss before taxes(5)		7,600			261			(3,963	)		(25,434	)
Income tax (provision) benefit		(165	)		1,926			117			4,474
Net income (loss) after taxes/net investment loss after taxes		7,435			2,187			(3,846	)		(20,960	)
Net realized losses on investments(6)		—			—			—			(34,745	)
Income tax benefit		—			—			—			8,426
Total net realized losses on investments		—			—			—			(26,319	)
Net change in unrealized appreciation on Medallion Bank and other    controlled subsidiaries		—			—			—			29,115
Net change in unrealized depreciation on investments other than securities		—			—			—			(1,915	)
Net change in unrealized depreciation on investments		—			—			—			(4,403	)
Income tax provision		—			—			—			(8,122	)
Net unrealized appreciation on investments		—			—			—			14,675
Net realized/unrealized losses on investments		—			—			—			(11,644	)
Net income (loss) after taxes/net decrease on net assets resulting from operations		7,435			2,187			(3,846	)		(32,604	)
Less: income attributable to the noncontrolling interest		2,460			3,484			851			1,614
Total net income (loss) attributable to Medallion Financial    Corp./net decrease on net assets resulting from operations	$	4,975		$	(1,297	)	$	(4,697	)	$	(34,218	)
Basic net income (loss) per share	$	0.20		$	(0.05	)	$	(0.19	)	$	(1.41	)
Diluted net income (loss) per share	$	0.20		$	(0.05	)	$	(0.19	)	$	(1.41	)
Distributions declared per share	$	—		$	—		$	—		$	—
Weighted average common shares outstanding
Basic		24,361,680			24,336,677			24,235,242			24,207,273
Diluted		24,607,167			24,336,677			24,235,242			24,207,273

(1) Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

Page 5 of 77

(2) Included in interest and investment income is $212 and $637 of paid in kind interest for the three and nine months ended September 30, 2019 and$450 and $1,428 for the comparable 2018 periods.

(3) Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods.

(4) See Note 12 for the components of other operating expenses as of March 31, 2018.

(5) Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information.

(6) There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 6 of 77

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME/(LOSS)

(UNAUDITED)

	Bank Holding Company Accounting				Bank Holding Company Accounting			Combined(1)
(Dollars in thousands)	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019		For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2018
Net income (loss) after taxes/net decrease on net assets resulting    from operations	$	7,435	$	2,187	$	(3,846	)	$	(32,604	)
Other comprehensive income (loss), net of tax		95		1,322		(214	)		(469	)
Total comprehensive income (loss)		7,530		3,509		(4,060	)		(33,073	)
Less comprehensive income attributable to the noncontrolling    interest		2,460		3,484		851			1,614
Total comprehensive income (loss) attributable to Medallion    Financial Corp.	$	5,070	$	25	$	(4,911	)	$	(34,687	)

(1) Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 7 of 77

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY AND CHANGES IN NET ASSETS

(UNAUDITED)

	Bank Holding Company Accounting
(Dollars in thousands)	Common Stock Shares			Common Stock		Preferred Stock		Capital in Excess of Par		Treasury Stock Shares			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income			Total Stockholders’ Equity			Non- controlling Interest			Total Equity
Balance at December 31, 2018		27,385,600		$	274		—	$	274,292		(2,951,243	)	$	(24,919	)	$	13,043		$	(82	)	$	262,608		$	27,596		$	290,204
Net income		—			—		—		—		—			—			1,228			—			1,228			167			1,395
Distributions to non-    controlling interest		—			—		—		—		—			—			—			—			—			(592	)		(592	)
Stock-based compensation		—			1		—		164		—			—			—			—			165			—			165
Issuance of restricted stock, net		163,098			—		—		—		—			—			—			—			—			—			—
Forfeiture of restricted stock, net		(1,699	)		—		—		—		—			—			—			—			—			—			—
Net change in unrealized gains    on investments, net of tax		—			—		—		—		—			—			—			669			669			—			669
Balance at March 31, 2019		27,546,999			275		—		274,456		(2,951,243	)		(24,919	)		14,271			587			264,670			27,171			291,841
Net (loss)		—			—		—		—		—			—			(7,500	)		—			(7,500	)		857			(6,643	)
Distributions to non-controlling    interest		—			—		—		—		—			—			—			—			—			(592	)		(592	)
Stock-based compensation		—			—		—		340		—			—			—			—			340			—			340
Issuance of restricted stock, net		4,751			—		—		—		—			—			—			—			—			—			—
Forfeiture of restricted stock, net		(949	)		—		—		—		—			—			—			—			—			—			—
Net change in unrealized gains    on investments, net of tax		—			—		—		—		—			—			—			558			558			—			558
Balance at June 30, 2019		27,550,801			275		—		274,796		(2,951,243	)		(24,919	)		6,771			1,145			258,068			27,436			285,504
Net income		—			—		—		—		—			—			4,975			—			4,975			2,460			7,435
Distributions to non-controlling    interest		—			—		—		—		—			—			—			—			—			(592	)		(592	)
Stock-based compensation		—			1		—		347		—			—			—			—			348			—			348
Issuance of restricted stock, net		10,417			—		—		—		—			—			—			—			—			—			—
Forfeiture of restricted stock, net		(679	)		—		—		—		—			—			—			—			—			—			—
Net change in unrealized gains    on investments, net of tax		—			—		—		—		—			—			—			95			95			—			95
Balance at September 30, 2019		27,560,539		$	276		—	$	275,143		(2,951,243	)	$	(24,919	)	$	11,746		$	1,240		$	263,486		$	29,304		$	292,790

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 8 of 77

	Bank Holding & Investment Company Accounting														Investment Company Accounting						Bank Holding Company Accounting									Bank Holding & Investment Company Accounting
(Dollars in thousands)	Common Stock Shares		Common Stock		Preferred Stock		Capital in Excess of Par		Treasury Stock Shares			Treasury Stock			Accumulated Undistributed Net Investment Loss			Net Unrealized Appreciation on Investments, Net of Tax			Retained Earnings			Accumulated Other Comprehensive Income			Total Stockholders’ Equity			Noncontrolling Interest			Total Equity
Balance at December 31, 2017		27,294,327	$	273		—	$	273,716		(2,951,243	)	$	(24,919	)	$	(65,592	)	$	103,681		$	—		$	—		$	287,159		$	—		$	287,159
Net decrease in net assets resulting    from operations		—		—		—		—		—			—			(38,299	)		23,425			—			—			(14,874	)		—			(14,874	)
Stock-based compensation expense		—		1		—		151		—			—			—			—			—			—			152			—			152
Issuance of restricted stock, net		95,726		—		—		—		—			—			—			—			—			—			—			—
Balance at March 31, 2018		27,390,053		274		—		273,867		(2,951,243	)		(24,919	)		(103,891	)		127,106			—			—			272,437			—			272,437
Adoption of Bank Holding    Company Accounting		—		—		—		—		—			—			103,891			(127,106	)		23,215			—			—			27,065			27,065
Balance at April 2, 2018		27,390,053		274		—		273,867		(2,951,243	)		(24,919	)		—			—			23,215			—			272,437			27,065			299,502
Net loss		—		—		—		—		—			—			—			—			(14,647	)		—			(14,647	)		763			(13,884	)
Distributions to noncontrolling    interest		—		—		—		—		—			—			—			—			—			—			—			(592	)		(592	)
Stock-based compensation		—		—		—		145		—			—			—			—			—			—			145			—			145
Issuance of restricted stock, net		13		—		—		—		—			—			—			—			—			—			—			—			—
Net change in unrealized losses on    investments, net of tax		—		—		—		—		—			—			—			—			—			(255	)		(255	)		—			(255	)
Balance at June 30, 2018		27,390,066		274		—		274,012		(2,951,243	)		(24,919	)		—			—			8,568			(255	)		257,680			27,236			284,916
Net loss		—		—		—		—		—			—			—			—			(4,697	)		—			(4,697	)		851			(3,846	)
Distributions to noncontrolling    interest		—		—		—		—		—			—			—			—			—			—			—			(592	)		(592	)
Stock-based compensation		—				—		151		—			—			—			—			—			—			151			—			151
Issuance of restricted stock, net		1,229		—		—		—		—			—			—			—			—			—			—			—			—
Net change in unrealized losses on    investments, net of tax		—		—		—		—		—			—			—			—			—			(214	)		(214	)		—			(214	)
Balance at September 30, 2018		27,391,295	$	274		—	$	274,163		(2,951,243	)	$	(24,919	)	$	—		$	—		$	3,871		$	(469	)	$	252,920		$	27,495		$	280,415

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 9 of 77

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Bank Holding Company Accounting			Combined(1)
(Dollars in thousands)	For the Nine Months Ended September 30, 2019			For the Nine Months Ended September 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/net decrease in net assets resulting from operations	$	2,187		$	(32,604	)
Adjustments to reconcile net loss/net decrease in net assets resulting from operations to net cash    provided by operating activities:
Provision for loan losses		36,851			48,781
Paid-in-kind interest		(637	)		(1,428	)
Depreciation and amortization		6,014			2,995
(Decrease) increase in deferred and other tax liabilities		(1,375	)		8,676
Amortization of origination fees, net		3,753			2,192
Proceeds from the sale and principal payments on loan collateral in process    of foreclosure		12,714			—
Net change in loan collateral in process of foreclosure		9,126			3,258
Net realized losses on sale of investments		(1,810	)		(4,726	)
Net change in unrealized depreciation on investments		1,299			5,380
Stock-based compensation expense		853			446
Gain on extinguishment of debt		(4,145	)		—
(Increase) decrease in accrued interest receivable		(627	)		486
Increase in other assets		(4,890	)		(7,173	)
Decrease in accounts payable and accrued expenses		(1,763	)		(675	)
Increase (decrease) in accrued interest payable		(341	)		41
Loans originated	—				(8,193	)
Proceeds from principal receipts, sales, and maturities of loans	—				13,279
Capital returned by Medallion Bank and other controlled subsidiaries, net	—				93
Net change in unrealized depreciation on investment other than securities	—				1,915
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries	—				(29,115	)
Net realized losses on investments	—				34,745
Increase in other liabilities	—				3,159
Net cash provided by operating activities		57,209			41,532
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(374,642	)		(256,933	)
Proceeds from principal receipts, sales, and maturities of loans		188,226			240,915
Purchases of investments		(6,849	)		(8,304	)
Proceeds from principal receipts, sales, and maturities of investments		5,902			2,475
Net cash used for investing activities		(187,363	)		(21,847	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed		450,192			336,108
Repayments of time deposits and funds borrowed		(324,960	)		(253,497	)
Purchase of federal funds		4,000			8,000
Repayments of federal funds		—			(8,000	)
Distributions to noncontrolling interests		(1,776	)		(1,184	)
Payments of declared distributions		—			(65	)
Net cash provided by financing activities		127,456			81,362
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND    RESTRICTED CASH		(2,698	)		101,047
Cash and cash equivalents and restricted cash, beginning of period(2)		57,713			42,513
Cash and cash equivalents and restricted cash, end of period(3)	$	55,015		$	143,560
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest	$	24,252		$	17,381
Cash paid during the period for income taxes		135			52
NON-CASH INVESTING
Loans transferred to loan collateral in process of foreclosure	$	25,884		$	19,472

(1) Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

(2) The beginning balance for the nine months ended September 30, 2018 includes $29,923 of cash, cash equivalents and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank.

(3) Includes federal funds sold.

The accompanying notes should be read in conjunction with these consolidated financial statements.

Page 10 of 77

MEDALLION FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2019

(1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES

Medallion Financial Corp. (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 (the Bank), a Federal Deposit Insurance Corporation (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 taxicab medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. The loans are marketed and serviced by the Bank’s affiliates that have extensive prior experience in these asset groups. Subsequent to its formation, the Bank began originating consumer loans to finance the purchases of recreational vehicles (RVs), boats, and other related items, and to finance small scale home improvements. The Company also conducts business through Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC), which originates and services taxicab medallion and commercial loans.

The Company also conducts business through its subsidiaries Medallion Capital, Inc. (MCI), an SBIC that conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC that originated and services taxicab medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration (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 (RPAC), a professional car racing team that competes in the Monster Energy NASCAR Cup Series and is also consolidated with the Company.

The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation (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 taxi medallion loans originated by the Bank, to MSC, which bills and collects the related service fee income from the Bank, which is allocated and charged by the Company for MSC’s share of these servicing costs.

Taxi Medallion Loan Trust III (Trust III) was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity (VIE), and MFC was the primary beneficiary. As a result, the Company consolidated Trust III in its financial results until the consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 19. 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 (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 $36,139,000 at September 30, 2019, 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 taxicab medallions out of foreclosure, some of which are leased to fleet operators while being held for sale. The 159 medallions are carried at a net realizable value of $3,091,000 in other assets on the Company’s consolidated balance sheet at September 30, 2019, compared to a net realizable value of $4,305,000 and $5,535,000 at December 31, 2018 and September 30, 2018.

Page 11 of 77

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act). Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (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 loans 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act effective April 2, 2018, the Bank and various other Company subsidiaries that were not previously consolidated with the Company prior to the three months ended June 30, 2018, were now consolidated effective April 2, 2018. See Note 6 for the presentation of financial information for the Bank and other controlled subsidiaries for such prior periods.

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.

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (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 16 and 17 to the consolidated financial statements.

Page 12 of 77

Equity Investments

Equity investments of $9,880,000 and $9,197,000 at September 30, 2019 and December 31, 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry.

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments – Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and 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 $236,000 at September 30, 2019 and $154,000 at December 31, 2018, and $21,000 and $46,000 was amortized to interest income for the three and nine months ended September 30, 2019, and $26,000 and $47,000 was amortized to interest income for the three and six months ended September 30, 2018. 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.

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in the Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties continued. The Company incorporated these new factors in the Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the first quarter of 2018. Refer to Note 6 for additional details.

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 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 September 30, 2019 and December 31, 2018, net loan origination costs were $17,867,000 and $14,416,000. The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization to income for the three months ended September 30, 2019 and 2018 was $1,364,000 and $1,147,000, and was $3,753,000 and $2,192,000 ($3,065,000 when combined with the Bank) for the comparable nine month period.

Page 13 of 77

Interest income is recorded on the accrual basis. Taxicab 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 consumer 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 more than 90 days past due were $8,123,000 at September 30, 2019, or 0.73% of the total loan portfolio, compared to $20,154,000, or 2.03% at December 31, 2018.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a trouble debt restructuring (“TDR”). The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before it reaches 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 fiscal year 2019, all consumer loans which are party to a bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance.

Loan collateral in process of foreclosure primarily includes taxicab 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 taxicab 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 $30,295,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at September 30, 2019 and December 31, 2018.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $125,818,000 at September 30, 2019 and $140,180,000 at December 31, 2018. 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 determined that no material servicing asset or liability existed as of September 30, 2019 and December 31, 2018. The Company assigned its servicing rights of the Bank 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 (Bank Holding Company Accounting)

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, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three-year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $4,608,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank’s general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032,000. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Page 14 of 77

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Refer to Note 5 for additional details.

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, said testing which is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,898,000, $53,982,000 and $59,958,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended September 30, 2019 and 2018, and $1,084,000 and $722,000 of amortization expense on the intangible assets for the nine months ended September 30, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $6,161,000, $9,048,000, and $10,607,000 were outstanding at September 30, 2019, December 31, 2018, and September 30, 2018, and of which $713,000 and $1,780,000 were amortized to interest income for the three months ended September 30, 2019 and 2018, and of which $2,886,000 and $1,780,000 were amortized to interest income for the nine months ended September 30, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on the Bank, and impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the details of the intangible assets as of the periods presented.

(Dollars in thousands)	September 30, 2019		December 31, 2018
Brand-related intellectual property	$	20,350	$	21,176
Home improvement contractor relationships		6,383		6,641
Race organization		26,165		26,165
Total intangible assets	$	52,898	$	53,982

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 $109,000 and $131,000 for the three months ended September 30, 2019 and 2018, and was $313,000 and $289,000 for the comparable nine months.

Deferred Costs

Deferred financing costs, included in other assets, 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 $613,000 and $558,000 for the three months ended September 30, 2019 and 2018, and was $1,731,000 and $1,322,000 for the comparable nine months. 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 are amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes was $5,589,000, $4,461,000, and $4,859,000 as of September 30, 2019, December 31, 2018, and September 30, 2018.

Page 15 of 77

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. 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 according 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)/net increase (decrease) in net assets 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 September 30,					Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)	2019		2018			2019			2018
Net income (loss)/net decrease in net assets resulting from operations    available to common stockholders	$	4,975	$	(4,697	)	$	(1,297	)	$	(34,218	)
Weighted average common shares outstanding applicable to    basic EPS		24,361,680		24,235,242			24,336,677			24,207,273
Effect of dilutive stock options		16,543		—			—			—
Effect of restricted stock grants		228,944		—			—			—
Adjusted weighted average common shares outstanding    applicable to diluted EPS		24,607,167		24,235,242			24,336,677			24,207,273
Basic income (loss) per share	$	0.20	$	(0.19	)	$	(0.05	)	$	(1.41	)
Diluted income (loss) per share		0.20		(0.19	)		(0.05	)		(1.41	)

Potentially dilutive common shares excluded from the above calculations aggregated 468,055 and 115,000 shares as of September 30, 2019 and 2018.

Stock Compensation

The Company follows FASB ASC Topic 718 (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 increase in net income/net assets 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/net increase net assets 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.

Page 16 of 77

During the ninemonths ended September 30, 2019 and 2018, the Company issued 178,266 and 101,010 of restricted shares of stock-based compensation awards, 375,481 and 39,000 shares of stock options, and 26,040 and no restricted stock units and recognized $348,000 and $853,000, or $0.01 and $0.03 per share, for the 2019 third quarter and nine months, and $151,000 and $466,000, or $0.01 and $0.02,per share, for each of the comparable 2018 periods, of non-cash stock-based compensation expense related to the grants. As of September 30, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,663,000, which is expected to be recognized over the next 14 quarters (see Note 10).

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, such as certain purchases of assets, with 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 September 30, 2019, the Bank’s Tier 1 leverage ratio was 15.91%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

	Regulatory
(Dollars in thousands)	Minimum			Well- Capitalized			September 30, 2019			December 31, 2018
Common equity Tier 1 capital		—			—		$	153,580		$	141,608
Tier 1 capital		—			—			179,883			167,911
Total capital		—			—			194,436			180,917
Average assets		—			—			1,130,642			1,059,461
Risk-weighted assets		—			—			1,120,179			993,374
Leverage ratio(1)		4.0	%		5.0	%		15.9	%		15.8	%
Common equity Tier 1 capital ratio(2)		7.0			6.5			13.7			14.3
Tier 1 capital ratio(3)		8.5			8.0			16.1			16.9
Total capital ratio(3)		10.5			10.0			17.4			18.2

(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 addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, as of January 1, 2019, the Bank is required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%. Since the FDIC’s new capital rule has been fully phased in, the minimum capital requirements plus the capital conservation buffer exceed the Prompt Corrective Action well-capitalized thresholds.

Page 17 of 77

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 October 2019, the FASB voted 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 an impact on the Company’s accounting for estimated credit losses on its loans.

(3) INVESTMENT SECURITIES (Bank Holding Company Accounting)

Fixed maturity securities available for sale as of September 30, 2019 and December 31, 2018 consisted of the following:

September 30, 2019 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US    federal agencies	$	34,431	$	569	$	(65	)	$	34,935
State and municipalities		12,279		262		(54	)		12,487
Total	$	46,710	$	831	$	(119	)	$	47,422

December 31, 2018 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of    US federal agencies	$	32,184	$	15	$	(742	)	$	31,457
State and municipalities		14,239		35		(407	)		13,867
Total	$	46,423	$	50	$	(1,149	)	$	45,324

The amortized cost and estimated market value of investment securities as of September 30, 2019 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	$	35	$	35
Due after one year through five years		12,416		12,497
Due after five years through ten years		10,267		10,417
Due after ten years		23,992		24,473
Total	$	46,710	$	47,422

Page 18 of 77

The following tables show information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less than Twelve Months					Twelve Months and Over
September 30, 2019 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations    of US federal agencies	$	(39	)	$	4,083	$	(26	)	$	5,075
State and municipalities		(1	)		169		(53	)		2,770
Total	$	(40	)	$	4,252	$	(79	)	$	7,845

	Less than Twelve Months					Twelve Months and Over
December 31, 2018 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of    US federal agencies	$	(54	)	$	4,616	$	(688	)	$	24,871
State and municipalities		(78	)		5,429		(329	)		6,259
Total	$	(132	)	$	10,045	$	(1,017	)	$	31,130

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.

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES (Bank Holding Company Accounting)

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2019 and December 31, 2018.

	As of September 30, 2019						As of December 31, 2018
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	706,393			62	%	$	587,038			58	%
Home improvement		230,726			20			183,155			18
Commercial		68,209			6			64,083			6
Medallion		136,954			12			183,606			18
Total gross loans		1,142,282			100	%		1,017,882			100	%
Allowance for loan losses		(43,113	)					(36,395	)
Total net loans	$	1,099,169					$	981,487

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – June 30, 2019	$	668,540		$	209,549		$	64,442		$	145,944		$	1,088,475
Loan originations		82,662			42,641			4,750			—			130,053
Principal payments		(40,790	)		(20,729	)		(375	)		(4,013	)		(65,907	)
Charge-offs, net		(3,489	)		(51	)		(819	)		(1,535	)		(5,894	)
Transfer to loans in process of foreclosure, net		(3,429	)		—			—			(3,005	)		(6,434	)
Other		2,899			(684	)		211			(437	)		1,989
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

Page 19 of 77

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – December 31, 2018	$	587,038		$	183,155		$	64,083		$	183,606		$	1,017,882
Loan originations		248,989			102,821			14,520			—			366,330
Principal payments		(113,680	)		(53,508	)		(9,789	)		(10,612	)		(187,589	)
Charge-offs, net		(10,853	)		(295	)		(819	)		(18,166	)		(30,133	)
Transfer to loans in process of foreclosure, net		(10,311	)		—			—			(15,573	)		(25,884	)
Other		5,210			(1,447	)		214			(2,301	)		1,676
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018.

	Three Months Ended September 30,							Nine Months Ended September 30,				Six Months Ended September 30,
(Dollars in thousands)	2019				2018			2019				2018
Allowance for loan losses – beginning    balance	$	40,670			$	21,425		$	36,395			$	—		(1)
Charge-offs
Recreation		(5,444	)			(4,825	)		(16,366	)			(9,471	)
Home improvement		(568	)			(659	)		(1,655	)			(1,220	)
Commercial		(819	)			—			(819	)		—
Medallion		(2,378	)			(6,457	)		(20,408	)			(12,737	)
Total charge-offs		(9,209	)			(11,941	)		(39,248	)			(23,428	)
Recoveries
Recreation		1,955				1,318			5,513				3,217
Home improvement		517				367			1,360				606
Commercial	—					—		—					4
Medallion		843				110			2,242				304
Total recoveries		3,315				1,795			9,115				4,131
Net charge-offs(2)		(5,894	)			(10,146	)		(30,133	)			(19,297	)
Provision for loan losses		8,337				18,205			36,851				48,781
Allowance for loan losses – ending balance	$	43,113		(3)	$	29,484		$	43,113		(3)	$	29,484

(1) Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for the six months ended September 30, 2018.

(2) As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company.

(3) Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

Page 20 of 77

The following tables set forth the composition of the allowance for loan losses by type as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	15,927		37	%		2.25	%
Home improvement		2,235		5			0.97
Commercial		—		—			0.00
Medallion		24,951		58			18.22
Total	$	43,113		100	%		3.77	%

December 31, 2018 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)	September 30, 2019			December 31, 2018			September 30, 2018
Total nonaccrual loans	$	27,078		$	34,877		$	45,765
Interest foregone quarter to date		403			487			563
Amount of foregone interest applied    to principal in the quarter		75			166			350
Interest foregone year to date		915			1,153			1,032
Amount of foregone interest applied    to principal in the year		244			535			987
Interest foregone life to date		2,432			1,952			8,530
Amount of foregone interest applied    to principal life to date		655			1,214			3,412
Percentage of nonaccrual loans to gross loan    portfolio		2	%		3	%		4	%

The following tables present the performance status of loans as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	699,685	$	6,708	$	706,393		0.95	%
Home improvement		230,487		239		230,726		0.10
Commercial		56,178		12,031		68,209		17.64
Medallion		128,854		8,100		136,954		5.91
Total	$	1,115,204	$	27,078	$	1,142,282		2.37	%

Page 21 of 77

December 31, 2018 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	581,250	$	5,788	$	587,038		0.99	%
Home improvement		183,018		137		183,155		0.07
Commercial		60,249		3,834		64,083		5.98
Medallion		158,488		25,118		183,606		13.68
Total	$	983,005	$	34,877	$	1,017,882		3.43	%

For those loans aged 31-90 days, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming.

The following tables provide additional information on attributes of the nonperforming loan portfolio as of September 30, 2019 and 2018, and December 31, 2018, all of which had an allowance recorded against the principal balance.

	September 30, 2019						For the Three Months Ended September 30, 2019				For the Nine Months Ended September 30, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With an allowance recorded
Recreation	$	6,708	$	6,708	$	256	$	6,687	$	152	$	6,921	$	366
Home improvement		239		239		4		243		2		245		2
Commercial		12,031		12,126		—		9,616		36		6,827		321
Medallion		8,100		8,660		3,160		13,418		27		11,279		39
Total nonperforming loans   with an allowance	$	27,078	$	27,733	$	3,420	$	29,964	$	217	$	25,272	$	728

	December 31, 2018						September 30, 2018						For the Three Months Ended September 30, 2018					Six Months Ended September 30, 2018
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment Recorded		Interest Income Recognized			Average Investment Recorded		Interest Income Recognized
With an allowance recorded
Recreation	$	5,788	$	5,788	$	204	$	5,075	$	5,075	$	180	$	5,494	$	106		$	4,496	$	231
Home improvement		137		137		3		167		167		3		178		—			119		—
Commercial		3,834		3,929		—		5,403		5,814		100		7,047		(82	)		5,838		(12	)
Medallion		25,118		26,237		22,035		38,057		39,038		10,085		55,065		101			54,917		215
Total nonperforming loans    with an allowance	$	34,877	$	36,091	$	22,242	$	48,702	$	50,094	$	10,368	$	67,784	$	125		$	65,370	$	434

The following tables show the aging of all loans as of September 30, 2019 and December 31, 2018.

	Days Past Due
September 30, 2019 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)		Recorded Investment 90 Days and Accruing
Recreation	$	20,615	$	6,771	$	4,431	$	31,817	$	651,122	$	682,939	$	—
Home improvement		687		280		228		1,195		232,804		233,999		—
Commercial		—		—		276		276		67,933		68,209		—
Medallion		31,062		1,756		3,188		36,006		96,541		132,547		—
Total	$	52,364	$	8,807	$	8,123	$	69,294	$	1,048,400	$	1,117,694	$	—

(1) Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs.

Page 22 of 77

	Days Past Due
December 31, 2018 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)		Recorded Investment > 90 Days and Accruing
Recreation	$	18,483	$	5,655	$	4,020	$	28,158	$	539,051	$	567,209	$	—
Home improvement		715		283		135		1,133		184,528		185,661		—
Commercial		—		454		279		733		63,350		64,083		—
Medallion		8,689		3,652		15,720		28,061		148,774		176,835		—
Total	$	27,887	$	10,044	$	20,154	$	58,085	$	935,703	$	993,788	$	—

(1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 202%, 220%, and 224% as of September 30, 2019, December 31, 2018, and September 30, 2018.

The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2019.

(Dollars in thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans - 2019 three months		1	$	758	$	758
Recreation loans - 2019 three months		40		587		505
Medallion loans - 2019 nine months		10	$	4,041	$	4,041
Recreation loans - 2019 nine months		276		4,109		2,619

During the twelve months ended September 30, 2019, three medallion loans modified as troubled debt restructurings were in default and had an investment value of $812,000 as of September 30, 2019, net of a $365,000 allowance for loan losses, and 191 recreation loans modified as trouble debt restructurings were in default and had an investment value of $1,727,000 as of September 30, 2019, net of a $66,000 allowance for loan losses.

The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2018.

(Dollars in thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans - 2018 three months		10	$	4,810	$	4,810
Medallion loans - 2018 nine months		17	$	7,505	$	7,505

During the twelve months ended September 30, 2018, three loans modified as troubled debt restructurings were in default and had an investment value of $1,305,000 as of September 30, 2018, net of a $773,000 allowance for loan losses.

The following tables show the activity of the loans in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – June 30, 2019	$	955		$	51,413		$	52,368
Transfer from loans, net		3,429			3,005			6,434
Sales		(1,604	)		(387	)		(1,991	)
Cash payments received		—			(1,556	)		(1,556	)
Collateral valuation adjustments		(1,603	)		(113	)		(1,716	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

Page 23 of 77

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – December 31, 2018	$	1,503		$	47,992		$	49,495
Transfer from loans, net		10,311			15,573			25,884
Sales		(5,715	)		(899	)		(6,614	)
Cash payments received		—			(6,100	)		(6,100	)
Collateral valuation adjustments		(4,922	)		(4,204	)		(9,126	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

(5) UNREALIZED APPRECIATION (DEPRECIATION) AND REALIZED GAINS (LOSSES) ON INVESTMENTS (Investment Company Accounting)

The following table sets forth the pre-tax change in the Company’s unrealized appreciation (depreciation) on investments for the three months ended March 31, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investments Other Than Securities			Total
Balance December 31, 2017	$	(20,338	)	$	(513	)	$	158,920	$	3,121		$	(1,490	)	$	139,700
Net change in unrealized
Appreciation on investments		—			—			38,795		(998	)		—			37,797
Depreciation on investments		(38,170	)		18			—		—			(1,915	)		(40,067	)
Reversal of unrealized appreciation    (depreciation) related to realized
Gains on investments		—			—			—		—			—			—
Losses on investments		34,747			—			—		—			—			34,747
Balance March 31, 2018	$	(23,761	)	$	(495	)	$	197,715	$	2,123		$	(3,405	)	$	172,177

The table below summarizes pre-tax components of unrealized and realized gains and losses in the investment portfolio for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Net change in unrealized appreciation (depreciation) on    investments
Unrealized appreciation	$	(998	)
Unrealized depreciation		(38,152	)
Net unrealized appreciation on investments in Medallion    Bank and other controlled subsidiaries		29,115
Realized gains		—
Realized losses		34,747
Net unrealized losses on investments other than securities and    other assets		(1,915	)
Total	$	22,797
Net realized gains (losses) on investments
Realized gains	$	—
Realized losses		(34,747	)
Direct recoveries		2
Total	$	(34,745	)

Page 24 of 77

(6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES (Investment Company Accounting)

The following note is included for informational purposes as it relates to the prior periods when the Company reported under Investment Company Accounting and as such, was not able to consolidate the Bank’s results.

The following table presents information derived from the Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Statement of comprehensive income
Investment income	$	26,880
Interest expense		3,615
Net interest income		23,265
Noninterest income		19
Operating expenses		7,158
Net investment income before income taxes		16,126
Income tax benefit		3,321
Net investment income after income taxes		19,447
Net realized/unrealized losses of Medallion Bank		(28,539	)
Net decrease in net assets resulting from operations of    Medallion Bank		(9,092	)
Unrealized appreciation on Medallion Bank(1)		39,092
Net realized/unrealized losses on controlled subsidiaries    other than Medallion Bank		(885	)
Net increase in net assets resulting from operations of    Medallion Bank and other controlled subsidiaries	$	29,115

(1) Unrealized depreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of the Bank.

(7) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows:

	Payments Due for the Twelve Months Ending September 30,
(Dollars in thousands)	2020		2021		2022		2023		2024		Thereafter		September 30, 2019		December 31, 2018		Interest Rate (1)
Deposits	$	348,385	$	182,587	$	225,560	$	112,413	$	94,042	$	—	$	962,987	$	848,040		2.37	%
SBA debentures and    borrowings		23,093		8,500		—		5,000		5,000		32,500		74,093		80,099		3.41
Retail and privately placed    notes		—		33,625		—		—		36,000		—		69,625		33,625		8.61
Notes payable to banks		7,652		27,370		280		280		70		—		35,652		59,615		4.25
Preferred securities		—		—		—		—		—		33,000		33,000		33,000		4.24
Other borrowings		11,758		—		—		—		—		—		11,758		7,649		2.09
Total	$	390,888	$	252,082	$	225,840	$	117,693	$	135,112	$	65,500	$	1,187,115	$	1,062,028		2.91	%

(1) Weighted average contractual rate as of September 30, 2019.

Page 25 of 77

(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. All time deposits are in denominations of less than $250,000 and have been originated through certificates of deposit broker relationships. The table presents time deposits of $100,000 or more by their maturity:

(Dollars in thousands)	September 30, 2019
Three months or less	$	84,392
Over three months through six months		66,100
Over six months through one year		197,893
Over one year		614,602
Total deposits	$	962,987

(B) DZ LOAN

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 (DZ loan). The line, which currently terminates on November 15, 2019, is under negotiation to be extended.

Borrowings under Trust III’s DZ loan are collateralized by Trust III’s assets. MFC is the servicer of the loans owned by Trust III. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. See Note 19 for more information about Trust III and the DZ loan.

(C) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1% fee, which was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33,485,000 in principal into a new loan by the SBA to FSVC in the principal amount of $34,024,756 (the SBA Loan). In connection with the SBA Loan, FSVC executed a Note (the SBA Note), with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34,024,756. The SBA Loan bears interest at a rate of 3.25% per annum, required a minimum of $5,000,000 of principal and interest to be paid on or before February 1, 2018 (which was paid) and a minimum of $7,600,000 of principal and interest to be paid on or before March 27, 2019 (which was paid), and all remaining unpaid principal and interest on or before February 1, 2020, the final maturity date. The SBA Loan agreement contains covenants and events of defaults, including, without limitation, payment defaults, breaches of representations and warranties and covenants defaults. As of September 30, 2019, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $74,093,000 was outstanding, including $23,093,000 under the SBA Note.

(D) 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.

Page 26 of 77

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of September 30, 2019.

(Dollars in thousands)

Borrower

# of Lenders/ Notes

Note Dates

Maturity Dates

Type

Note Amounts

Balance Outstanding at September 30, 2019

Payment

Average Interest Rate at September 30, 2019

Interest Rate Index(1)

Medallion Financial    Corp.

5/5

4/11 - 8/14

9/20 - 3/21

Term loans and demand notes secured by pledged loans(2)

$

23,231

(2)

$

23,231

Interest only(3)

4.63

%

Various(3)

Medallion Chicago

2/23

11/11 - 12/11

2/21

Term loans secured by owned Chicago medallions(4)

18,449

11,231

$134 of principal & interest paid monthly

3.50

%

N/A

Medallion Funding

1/1

11/18

12/23

1,400

1,190

$70 principal & interest paid quarterly

4.00

%

N/A

$

43,080

$

35,652

(1) At September 30, 2019, 30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%, and the prime rate was 5.00%.

(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 from $12 to $81.

(4) Guaranteed by the Company.

In March 2019, the Company used some of the proceeds of the privately placed notes to pay off one of the notes payable to banks at a 50% discount, resulting in a gain on debt extinguishment of $4,145,000 in the 2019 first quarter.

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 19 for more information.

On July 6, 2019, the Company paid $10,819,000 at maturity in satisfaction of all its outstanding obligations under one of its credit facilities. In connection with this payment, the Company obtained a waiver from one of its other lenders, with a term note of $3,096,000, of certain resulting repayment and other obligation, which waiver expires on December 1, 2019.

(E) RETAIL AND PRIVATELY PLACED NOTES

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, the private placement was reopened and an additional $6,000,000 of 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.

Page 27 of 77

(F) 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 (2.09% at September 30, 2019) plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2,000,000 of the preferred securities were repurchased from a third party investor. At September 30, 2019, $33,000,000 was outstanding on the preferred securities.

(G) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 15 for more details). At December 31, 2018, the total outstanding on these notes was $7,149,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. As of September 30, 2019, $7,258,000 was outstanding on these notes. Additionally, RPAC has a short term promissory note to an unrelated party for $500,000 due on December 31, 2019.

In September 2019, the Company issued federal funds of $4,000,000 at a 2.25% interest rate, which funds were repaid in October 2019.

(H) COVENANT COMPLIANCE

Certain of our debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth, which in the event of noncompliance could preclude their ability to pay dividends to the Company.

(8) LEASES

The Company has leased premises that expire at various dates through November 30, 2027 that are operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances.

The following table presents the operating lease costs and additional information for the three and nine months ended September 30, 2019.

(Dollars in thousands)	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
Operating lease costs	$	531	$	1,593
Other information
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases		556		1,680
Right-of-use asset obtained in exchange for lease liability		29		(1	)

The following table presents the breakout of the operating leases as of September 30, 2019.

(Dollars in thousands)	September 30, 2019
Operating lease right-of-use assets	$	12,559
Other current liabilities		1,820
Operating lease liabilities		12,090
Total operating lease liabilities		13,910
Weighted average remaining lease term	3.7 years
Weighted average discount rate		4.00	%

Page 28 of 77

At September 30, 2019, maturities of the lease liabilities were as follows.

(Dollars in thousands)
Remainder of 2019	$	600
2020		2,397
2021		2,295
2022		2,228
2023		2,136
Thereafter		6,042
Total lease payments	$	15,698
Less imputed interest		1,788
Total operating lease liabilities	$	13,910

(9) 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 September 30, 2019 and December 31, 2018.

(Dollars in thousands)	September 30, 2019			December 31, 2018
Goodwill and other intangibles	$	(44,315	)	$	(45,272	)
Provision for loan losses		19,529			25,790
Net operating loss carryforwards(1)		21,166			11,132
Accrued expenses, compensation, and other assets		1,932			1,844
Unrealized gains on other investments		(4,737	)		(2,024	)
Total deferred tax liability		(6,425	)		(8,530	)
Valuation allowance		(462	)		(255	)
Deferred tax liability, net		(6,887	)		(8,785	)
Taxes receivable		1,290			1,812
Net deferred and other tax liabilities	$	(5,597	)	$	(6,973	)

(1) As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $20,704 as of September 30, 2019.

The components of our tax (provision) benefit for the three and nine months ended September 30, 2019 and 2018 were as follows.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Current
Federal	$	(230	)	$	(9,353	)	$	(1,099	)	$	(3,040	)
State		(661	)		(2,318	)		(1,620	)		(1,078	)
Deferred
Federal		(887	)		9,100			1,311			8,128
State		1,613			2,688			3,334			768
Net (provision) benefit for income taxes	$	(165	)	$	117		$	1,926		$	4,778

Page 29 of 77

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported in net loss/net decrease in net assets for the three and ninemonths ended September 30, 2019 and 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Statutory Federal income tax (provision) benefit at 21%	$	(1,616	)	$	877		$	(332	)	$	8,106
State and local income taxes, net of federal income    tax benefit		(547	)		(107	)		(113	)		994
Revaluation of net operating losses		876			—			380			—
Appreciation of Medallion Bank		—			—			—			(1,974	)
Utilization of carry forwards		—			(247	)		—			(910	)
Change in state income tax accruals		—			—			600			—
Change in effective state income tax rate		608			—			916			(1,358	)
Income attributable to non-controlling interest		451			—			451			—
Non deductible expenses		—			(215	)		—			(403	)
Other		63			(191	)		24			323
Total income tax (provision) benefit	$	(165	)	$	117		$	1,926		$	4,778

On December 22, 2017, the US government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of September 30, 2019.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah tax filings of the Company for the tax years 2016 through the present are the more significant filings that are open for examination.

(10) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan (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, stock appreciation rights, etc. A total of 1,500,253 shares of the Company’s common stock are issuable under the 2018 Plan, and 882,219 remained issuable as of September 30, 2019. 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 (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.

Page 30 of 77

The Company had a stock option plan (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 (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 (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 September 30, 2019, 497,721 options on the Company’s common stock were outstanding under the Company’s plans, of which 81,667 options were exercisable, and there were 247,616 unvested shares of the Company’s common stock outstanding 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 $2.98 per share and $1.06 per share for the nine months ended September 30, 2019 and 2018. The following assumption categories are used to determine the value of any option grants.

	Nine Months Ended September 30,
	2019			2018
Risk free interest rate		2.39	%		2.82	%
Expected dividend yield		0.79			4.86
Expected life of option in years(1)		6.25			6.00
Expected volatility(2)		48.45			30.00

(1) Expected life is calculated using the simplified method.

(2) We determine our expected volatility based on our historical volatility.

Page 31 of 77

The following table presents the activity for the stock option programs for the 2019 quarters and the 2018 full year.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		320,626		$	2.14-13.84		$	8.78
Granted		39,000			5.27-5.58			5.46
Cancelled		(214,960	)		9.22-9.24			9.22
Exercised(1)		—				—		—
Outstanding at December 31, 2018		144,666			2.06-13.84			7.23
Granted		374,377			5.21-6.55			6.48
Cancelled		(18,000	)		7.49-9.38			8.44
Exercised(1)		—				—		—
Outstanding at March 31, 2019		501,043			2.14-13.84			6.63
Granted		1,104				6.55		6.55
Cancelled		(3,433	)		6.55-7.49			7.10
Exercised(1)		—				—		—
Outstanding at June 30, 2019		498,714			2.14-13.84			6.62
Granted		—				—		—
Cancelled		(993	)			6.55		6.55
Exercised(1)		—				—		—
Outstanding at September 30, 2019(2)		497,721		$	2.14-13.84		$	6.62
Options exercisable at September 30, 2019(2)		81,667		$	2.14-13.84		$	8.35

(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 $0 for each of the 2019 and 2018 three and nine months ended September 30.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019.

The following table presents the activity for the restricted stock programs for the 2019 quarters and the 2018 full year.

	Number of Shares				Grant Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		408,582		$	2.06-10.38		$	3.45
Granted		101,010			3.93-5.27			4.41
Cancelled		(9,737	)		3.93-9.08			4.66
Vested(1)		(308,940	)		2.06-10.38			3.35
Outstanding at December 31, 2018		190,915			2.14-5.27			4.06
Granted		163,098				6.55		6.55
Cancelled		(1,699	)		3.93-3.95			3.94
Vested(1)		(101,832	)		3.93-4.39			4.07
Outstanding at March 31, 2019		250,482			2.14-6.55			5.68
Granted		4,751			6.55-7.03			6.98
Cancelled		(949	)		3.95-6.55			6.40
Vested(1)		(16,406	)		2.06-7.03			3.35
Outstanding at June 30, 2019		237,878			3.95-6.55			5.86
Granted		10,417				4.80		4.80
Cancelled		(679	)		3.95-6.55			5.90
Vested(1)		—				—		—
Outstanding at September 30, 2019(2)		247,616		$	3.95-6.55		$	5.82

(1) The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods.

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(2) The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019.

In addition, during the 2019 third quarter, the Company granted and has outstanding, 26,040 restricted stock units that vest in one year with a grant price of $4.80. These units have the option of deferring vesting until a future date if the employee makes a formal election under the guidelines of IRC Section 409A.

The following table presents the activity for the unvested options outstanding under the plans for the 2019 quarters.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2018		62,777		$	2.14-7.10		$	4.59
Granted		374,377			5.21-6.55			6.48
Cancelled		—				—		—
Vested		—				—		—
Outstanding at March 31, 2019		437,154			2.14-7.10			6.21
Granted		1,104				6.55		6.55
Cancelled		(1,433	)			6.55		6.55
Vested		(16,000	)		2.22-7.10			5.12
Outstanding at June 30, 2019		420,825			2.14-6.55			6.25
Granted		—				—		—
Cancelled		(993	)			6.55		6.55
Vested		(3,778	)			2.61		2.61
Outstanding at September 30, 2019		416,054		$	2.14-6.55		$	6.28

The intrinsic value of the options vested was $8,000 and $34,000 for the three and nine months ended September 30, 2019.

(11) SEGMENT REPORTING (Bank Holding Company Accounting)

Under Bank Holding Company Accounting, 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.

Prior to April 2, 2018, the Company had one business segment, its lending and investing operations. This segment originated and serviced medallion, secured commercial, and consumer loans, and invested in both marketable and nonmarketable securities.

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 in all fifty states, with the highest concentrations in Texas, Florida, and California at 16%, 10%, and 10% of loans outstanding and with no other states over 10% as of September 30, 2019. 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 62%, 18%, and 12% of the segment portfolio as of September 30, 2019. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, solar panels, and windows, at 25%, 20%, 13%, and 13% of total home improvement loans outstanding, and with no other product lines over 10% as of September 30, 2019. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 57% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the taxicab medallions, taxicabs, and related assets, of which 88% were in New York City as of September 30, 2019.

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 part of the 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 for the three and nine months ended September 30, 2019. In addition, beginning in fiscal year 2019, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been re-allocated to corporate and other investments for all periods presented.

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The following tables present segment data as of September 30, 2019 and for the three and nine months then ended, and as ofSeptember 30, 2018, and for the three and six months then ended.

	Consumer Lending																Corp.
Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	26,147		$	5,184		$	1,842			$	975		$	—		$	492		$	34,640
Total interest expense		3,578			1,309			741				1,935			47			1,615			9,225
Net interest income (loss)		22,569			3,875			1,101				(960	)		(47	)		(1,123	)		25,415
Provision for loan losses		6,744			(629	)		364				1,858			—			—			8,337
Net interest income (loss)    after loss provision		15,825			4,504			737				(2,818	)		(47	)		(1,123	)		17,078
Sponsorship and race winnings		—			—			—				—			7,940			—			7,940
Race team related expenses		—			—			—				—			(2,663	)		—			(2,663	)
Other income (expense)		(6,181	)		(2,000	)		563				(2,762	)		(1,784	)		(2,591	)		(14,755	)
Net income (loss) before taxes		9,644			2,504			1,300				(5,580	)		3,446			(3,714	)		7,600
Income tax benefit (provision)		(2,497	)		(648	)		(314	)			1,345			(831	)		2,780			(165	)
Net income (loss)	$	7,147		$	1,856		$	986			$	(4,235	)	$	2,615		$	(934	)	$	7,435
Balance Sheet Data
Total loans, net	$	690,466		$	228,491		$	64,646			$	112,003		$	—		$	3,563		$	1,099,169
Total assets		702,541			239,991			87,486				226,868			33,134			229,734			1,519,754
Total funds borrowed		559,995			190,871			69,658				180,040			7,758			178,793			1,187,115
Selected Financial Ratios
Return on average assets		4.14	%		3.22	%		4.49	%			(7.26	)%		31.13	%		(1.54	)%		1.31	%
Return on average equity		20.69			16.09			22.45				(36.30	)	NM				(7.81	)		6.81
Interest yield		15.35			9.46			11.09				3.30		N/A			N/A				11.87
Net interest margin		13.25			7.07			6.63				(3.25	)	N/A			N/A				8.71
Reserve coverage		2.25			0.97			0.00		(1)		18.22		N/A			N/A				3.77
Delinquency status(2)		0.69			0.11			0.40		(1)		2.41		N/A			N/A				0.73
Charge-off ratio		2.05			0.09			4.93		(3)		5.20		N/A			N/A				2.17

(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.

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	Consumer Lending																Corp.
Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	72,996		$	14,187		$	5,359			$	2,482		$	—		$	1,674		$	96,698
Total interest expense		9,541			3,252			2,108				5,435			119			5,313			25,768
Net interest income (loss)		63,455			10,935			3,251				(2,953	)		(119	)		(3,639	)		70,930
Provision for loan losses		19,925			733			364				15,374			—			455			36,851
Net interest income (loss)    after loss provision		43,530			10,202			2,887				(18,327	)		(119	)		(4,094	)		34,079
Sponsorship and race winnings		—			—			—				—			16,008			—			16,008
Race team related expenses		—			—			—				—			(7,211	)		—			(7,211	)
Other (expense)		(17,501	)		(5,356	)		(532	)			(8,106	)		(5,298	)		(5,822	)		(42,615	)
Net income (loss) before taxes		26,029			4,846			2,355				(26,433	)		3,380			(9,916	)		261
Income tax benefit (provision)		(6,741	)		(1,255	)		(568	)			6,375			(815	)		4,930			1,926
Net income (loss)	$	19,288		$	3,591		$	1,787			$	(20,058	)	$	2,565		$	(4,986	)	$	2,187
Balance Sheet Data
Total loans, net	$	690,466		$	228,491		$	64,646			$	112,003		$	—		$	3,563		$	1,099,169
Total assets		702,541			239,991			87,486				226,868			33,134			229,734			1,519,754
Total funds borrowed		559,995			190,871			69,658				180,040			7,758			178,793			1,187,115
Selected Financial Ratios
Return on average assets		4.01	%		2.50	%		2.69	%			(10.82	)%		10.76	%		(2.90	)%		(0.12	)%
Return on average equity		17.42			11.34			13.43				(54.12	)	NM				(11.52	)		(0.60	)
Interest yield		15.45			9.44			11.59				2.50		N/A			N/A				11.68
Net interest margin		13.43			7.27			7.03				(2.97	)	N/A			N/A				8.57
Reserve coverage		2.25			0.97			0.00		(1)		18.22		N/A			N/A				3.77
Delinquency status(2)		0.69			0.11			0.40		(1)		2.41		N/A			N/A				0.73
Charge-off ratio		2.30			0.20			1.77		(3)		18.29		N/A			N/A				3.92

(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.

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	Consumer Lending																Corp.
Three Months Ended September 30, 2018 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	24,001		$	3,968		$	2,370			$	2,126		$	—		$	687		$	33,152
Total interest expense		2,306			709			500				3,672			40			1,660			8,887
Net interest income (loss)		21,695			3,259			1,870				(1,546	)		(40	)		(973	)		24,265
Provision for loan losses		4,423			598			(75	)			13,259			—			—			18,205
Net interest income (loss) after loss    provision		17,272			2,661			1,945				(14,805	)		(40	)		(973	)		6,060
Sponsorship and race winning		—			—			—				—			5,371			—			5,371
Race team related expenses		—			—			—				—			(2,876	)		—			(2,876	)
Other income (expense)		(3,160	)		400			(945	)			(4,077	)		(1,887	)		(2,849	)		(12,518	)
Net income (loss) before taxes		14,112			3,061			1,000				(18,882	)		568			(3,822	)		(3,963	)
Income tax benefit (provision)		(3,979	)		(863	)		(232	)			4,371			(107	)		927			117
Net income (loss)	$	10,133		$	2,198		$	768			$	(14,511	)	$	461		$	(2,895	)	$	(3,846	)
Balance Sheet Data as of September 30, 2018
Total loans, net	$	572,995		$	168,781		$	77,886			$	235,827		$	—		$	4,572		$	1,060,061
Total assets		582,610			175,333			88,035				369,763			36,237			319,429			1,571,407
Total funds borrowed		431,868			132,914			53,323				399,750			7,614			239,605			1,265,074
Balance Sheet Data as of December 31, 2018
Total loans, net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			90,264				273,501			29,925			208,518			1,381,846
Total funds borrowed		434,527			143,815			51,266				294,465			7,649			130,306			1,062,028
Selected Financial Ratios as of September 30, 2018
Return on average assets		6.80	%		4.57	%		3.50	%			(15.23	)%		4.94	%		(4.29	)%		(1.19	)%
Return on average equity		27.77			19.99			7.47			NM				42.83			(15.05	)		(6.59	)
Interest yield		15.87			8.10			12.33				3.41		N/A			N/A				10.75
Net interest margin		14.34			6.65			9.73				(2.48	)	N/A			N/A				7.94
Reserve coverage		0.50			0.51			0.13				9.81		N/A			N/A				2.71
Delinquency status(2)		0.55			0.10		0.51			(1)		4.06		N/A			N/A				1.29
Charge-off ratio		3.19			1.34		0.00			(1)		10.35		N/A			N/A				3.69

(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.

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	Consumer Lending																Corp.
Six Months Ended September 30, 2018 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	46,133		$	8,605		$	4,587			$	5,315		$	—		$	1,156		$	65,796
Total interest expense		4,442			1,448			985				7,045			81			2,811			16,812
Net interest income (loss)		41,691			7,157			3,602				(1,730	)		(81	)		(1,655	)		48,984
Provision for loan losses		9,133			1,475			100				38,073			—			—			48,781
Net interest income (loss) after loss    provision		32,558			5,682			3,502				(39,803	)		(81	)		(1,655	)		203
Sponsorship and race winning		—			—			—				—			10,599			—			10,599
Race team related expenses		—			—			—				—			(5,416	)		—			(5,416	)
Other (expense)		(8,680	)		(1,285	)		(1,887	)			(6,888	)		(4,124	)		(4,390	)		(27,254	)
Net income (loss) before taxes		23,878			4,397			1,615				(46,691	)		978			(6,045	)		(21,868	)
Income tax benefit (provision)		(6,141	)		(1,159	)		(368	)			10,528			(150	)		1,428			4,138
Net income (loss)	$	17,737		$	3,238		$	1,247			$	(36,163	)	$	828		$	(4,617	)	$	(17,730	)
Balance Sheet Data as of September 30, 2018
Total loans, net	$	572,995		$	168,781		$	77,886			$	235,827		$	—		$	4,572		$	1,060,061
Total assets		582,610			175,333			88,035				369,763			36,237			319,429			1,571,407
Total funds borrowed		431,868			132,914			53,323				399,750			7,614			239,605			1,265,074
Balance Sheet Data as of December 31, 2018
Total loans, net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			90,264				273,501			29,925			208,518			1,381,846
Total funds borrowed		434,527			143,815			51,266				294,465			7,649			130,306			1,062,028
Selected Financial Ratios as of September 30, 2018
Return on average assets		6.14	%		3.42	%		2.81	%			(18.49	)%		4.46	%		(3.55	)%		(2.51	)%
Return on average equity		25.84			15.22			6.05			NM				38.67			(11.16	)		(13.34	)
Interest yield		15.88			8.94			13.48				4.03		N/A			N/A				10.91
Net interest margin		14.35			7.44			10.58				(1.31	)	N/A			N/A				8.17
Reserve coverage		0.50			0.51			0.13				9.81		N/A			N/A				2.71
Delinquency status(2)		0.55			0.10		0.51			(1)		4.06		N/A			N/A				1.29
Charge-off ratio		3.26			1.27		0.00			(1)		9.66		N/A			N/A				3.53

(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.

(12) OTHER OPERATING EXPENSES (Investment Company Accounting)

The major components of other operating expenses were as follows:

(Dollars in thousands)	For the Three Months Ended March 31, 2018
Directors’ fees	$	89
Miscellaneous taxes		120
Computer expenses		74
Depreciation and amortization		23
Other expenses		161
Total other operating expenses	$	467

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(13) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting)

The following table provides selected financial ratios and other data for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands, except per share data)	Three Months Ended March 31, 2018
Net share data
Net asset value at the beginning of the period	$	11.80
Net investment loss		(0.15	)
Income tax benefit		0.03
Net realized losses on investments		(1.44	)
Net change in unrealized appreciation on investments		0.94
Net decrease in net assets resulting from operations		(0.62	)
Issuance of common stock		(0.03	)
Repurchase of common stock		—
Net investment income		—
Return of capital		—
Net realized gains on investments		—
Total distributions		—
Total decrease in net asset value		(0.65	)
Net asset value at the end of the period(1)	$	11.15
Per share market value at beginning of period	$	3.53
Per share market value at end of period		4.65
Total return(2)		(129	)%
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	272,437
Average net assets	$	284,021
Total expense ratio(3) (4)		10.02	%
Operating expenses to average net assets(4)		5.87
Net investment loss after income taxes to average net assets(4)		(4.61	)%

(1) Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter.

(14) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a two- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year, 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. Annually, the contracts with a two-year term will renew for new 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-year term. 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.

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Employment agreements expire at various dates through 2024, with future minimum payments under these agreements of approximately $6,061,000.

(B) OTHER COMMITMENTS

Except as described in the following paragraph, the Company had no commitments to extend credit or make investments outstanding at September 30, 2019. 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.

The Company has commitments for leased premises that expire at various dates through November 30, 2027. At September 30, 2019, minimal rental commitments for non-cancelable leases were $15,698,000.

(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 7.

(15) RELATED PARTY TRANSACTIONS

Certain directors, officers and stockholders of the Company are also directors and officers of its main 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, is an officer of LAX Group, LLC (LAX), one of the Company’s equity investments. Mr. Rudnick receives a salary from LAX of $171,000 per year, 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 provides consulting services to the Company directly for a monthly retainer of $4,200.

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 $7,258,000 that earns interest at an annual rate of 2% as of September 30, 2019.

In the 2019 second quarter, RPAC entered into a sponsorship agreement with Victory Junction, a 501(c)(3) public charity for which Richard Petty is a Board member, for $7,000,000 of sponsorship payments to RPAC during the remaining 2019 race car season, of which $5,200,000 was earned and received in 2019.

The Company and MSC serviced $308,346,000 of loans for the Bank at March 31, 2018. Under Investment Company Accounting, included in net investment income were amounts as described in the table below that were received from the Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf.

The Company had assigned its servicing rights to the Bank portfolio to MSC, a wholly-owned entity that had been unconsolidated under Investment Company Accounting. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from the Bank by MSC. As a result, in the three months ended March 31, 2018, $1,290,000 of servicing fee income was earned by MSC.

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The following table summarizes the net revenues received from the Bank not eliminated under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Reimbursement of operating expenses	$	250
Loan origination and servicing fees		6
Total other income	$	256

The Company had a loan to Medallion Fine Art, Inc. in the amount of $999,000 as of December 31, 2017, which was repaid in full during the 2018 first quarter. The loan bore interest at a rate of 12%, all of which was paid in kind. Additionally, the Company recognized $10,000 of interest income not eliminated for the three months ended March 31, 2018 with respect to this loan.

The Company and MCI have loans to RPAC which have been eliminated in consolidation since April 2, 2018. The loans bear interest at 2%, inclusive of cash and paid in kind interest. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018 with respect to these loans.

(16) FAIR VALUE OF FINANCIAL INSTRUMENTS

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

(a)Cash—Book value equals fair value.

(b)Equity securities—The Company’s equity securities are recorded at cost less impairment, which approximated fair value.

(c)Investment securities—The Company’s investments are recorded at the estimated fair value of such investments.

(d)Loans receivable—The Company’s loans are recorded at book value which approximated fair value.

(e)Floatingrateborrowings—Due to the short-term nature of these instruments, the carrying amount approximates fair value.

(f)Commitmentstoextendcredit—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 September 30, 2019 and December 31, 2018, the estimated fair value of these off-balance-sheet instruments was not material.

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

	September 30, 2019				December 31, 2018
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and federal funds sold(1)	$	55,015	$	55,015	$	57,713	$	57,713
Equity investments		9,880		9,880		9,197		9,197
Investment securities		47,422		47,422		45,324		45,324
Loans receivable		1,099,169		1,099,169		981,487		981,487
Accrued interest receivable(2)		8,040		8,040		7,413		7,413
Financial liabilities
Funds borrowed(3)		1,187,115		1,188,850		1,062,028		1,062,297
Accrued interest payable(2)		3,511		3,511		3,852		3,852

(1) Categorized as level 1 within the fair value hierarchy. See Note 17.

(2) Categorized as level 3 within the fair value hierarchy. See Note 17.

(3) As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 and $269.

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(17) 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 (level 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. The following paragraph describes the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis under Bank Holding Company Accounting (applicable as of June 30, 2018 and for the quarter then ended) and shows the table under Investment Company Accounting (applicable to prior periods).

Commencing with the quarter ended June 30, 2018, equity investments are recorded at cost and are evaluated for impairment periodically.

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The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,880	$	9,880
Available for sale investment securities(1)		—		47,422		—		47,422
Total	$	—	$	47,422	$	9,880	$	57,302

(1) Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2019 related to these assets.

December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,197	$	9,197
Available for sale investment securities(1)		—		45,324		—		45,324
Total	$	—	$	45,324	$	9,197	$	54,521

(1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Equity Investments
June 30, 2019	$	9,797
Gains included in earnings		414
Purchases, investments, and issuances		1,077
Sales, maturities, settlements, and distributions		(1,408	)
September 30, 2019	$	9,880
Amounts related to held assets(1)	$	(998	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

(Dollars in thousands)	Equity Investments
December 31, 2018	$	9,197
Gains included in earnings		510
Purchases, investments, and issuances		2,727
Sales, maturities, settlements, and distributions		(2,554	)
September 30, 2019	$	9,880
Amounts related to held assets(1)	$	(1,300	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

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(Dollars in thousands)	Equity Investments
June 30, 2018	$	10,773
Losses included in earnings		(400	)
Purchases, investments, and issuances		631
Sales, maturities, settlements, and distributions		(252	)
September 30, 2018	$	10,752
Amounts related to held assets(1)	$	(400	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

(Dollars in thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(774	)
Purchases, investments, and issuances		1,160
Sales, maturities, settlements, and distributions		(469	)
Transfers in(1)		1,377
September 30, 2018	$	10,752
Amounts related to held assets(2)	$	(774	)

(1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Gains (losses) included in earnings		(38,190	)		(8	)		29,143			(993	)		(1,915	)		—
Purchases, investments, and issuances		7			7,252			462			935			—			—
Sales, maturities, settlements, and    distributions		(8,941	)		(3,812	)		(583	)		(5	)		—			—
March 31, 2018	$	161,155		$	93,620		$	331,169		$	9,458		$	5,535		$	339
Amounts related to held assets(1)	$	(38,190	)	$	(10	)	$	29,143		$	(993	)	$	(1,915	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period, which relate to assets held as of March 31, 2018.

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2019 and December 31, 2018 under Bank Holding Company Accounting.

September 30, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	27,078	$	27,078
Loan collateral in process of foreclosure		—		—		53,539		53,539
Total	$	—	$	—	$	80,617	$	80,617

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December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,877	$	34,877
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	84,372	$	84,372

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 recurring level 3 fair value measurements of assets and liabilities as of September 30, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting.

(Dollars in thousands)		Fair Value at 9/30/19	Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	7,038	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
		1,387	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Precedent arm’s length offer	Business enterprise value	$6,014 – $7,214
				Business enterprise value/revenue multiples	0.96x – 4.44x
				Discount for lack of marketability	25%
		1,455	Precedent market transaction	Offering price	$8.73/share

(Dollars in thousands)	Fair Value at 12/31/18		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	5,683	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
	1,850		Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Precedent arm’s length offer	Business enterprise value	$6,014 – $7,214
				Business enterprise value/revenue multiples	0.96x – 4.54x
	1,455		Precedent market transaction	Offering price	$8.73/share
	209		Investee book value	Valuation indicated by investee filings	N/A

(18) SMALL BUSINESS LENDING FUND PROGRAM (SBLF) AND TROUBLED ASSETS RELIEF PROGRAM (TARP)

On February 27, 2009 and December 22, 2009, the Bank issued, and the US Treasury purchased under the TARP Capital Purchase Program (the CPP) the Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011, the Bank issued, and the US Treasury purchased 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E) for an aggregate purchase price of $26,303,000 under the SBLF. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. the Bank pays a dividend rate of 9% on the Series E.

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(19) 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 7 for more details). In addition, the Company remains the servicer of the assets of Trust III for a fee.

(20) SUBSEQUENT EVENTS

We have evaluated subsequent events that have occurred through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

We are a finance company that has historically had a leading position in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. Recently, our strategic growth has been through Medallion Bank (a wholly-owned subsidiary), which originates consumer loans for the purchase of recreational vehicles (RVs), boats, motorcycles, and trailers, and to finance small-scale home improvements.

Since Medallion Bank acquired a consumer loan portfolio and began originating consumer loans in 2004, it has increased its consumer loan portfolio at a compound annual growth rate of 17% (19% if there had been no loan sales during 2016, 2017, and 2018). We have transitioned away from medallion lending and have placed our strategic focus on our growing consumer finance portfolio. As a result of our change in strategy, as of September 30, 2019, our consumer loans represented 84% of our net loan portfolio, with medallion loans representing 10% and commercial loans representing 6%. Total assets under management and management of our unconsolidated wholly-owned subsidiaries (prior to April 2, 2018), which includes our managed net investment portfolio, as well as assets serviced for third party investors and unconsolidated subsidiaries, were $1,649,000,000 as of September 30, 2019, and were $1,522,000,000 and $1,598,000,000 as of December 31, 2018 and September 30, 2018, and have grown at a compound annual growth rate of 9% from $215,000,000 at the end of 1996.

Our loan-related earnings depend primarily on our level of net interest income. Net interest income is the difference between the total yield on our loan portfolio and the average cost of borrowed funds. We fund our operations through a wide variety of interest-bearing sources, such as bank certificates of deposit issued to customers, debentures issued to and guaranteed by the SBA, privately placed notes, and bank term debt. Net interest income fluctuates with changes in the yield on our loan portfolio and changes in the cost of borrowed funds, as well as changes in the amount of interest-bearing assets and interest-bearing liabilities held by us. Net interest income is also affected by economic, regulatory, and competitive factors that influence interest rates, loan demand, and the availability of funding to finance our lending activities. We, like other financial institutions, are subject to interest rate risk to the degree that our interest-earning assets reprice on a different basis than our interest-bearing liabilities.

We also provide debt, mezzanine, and equity investment capital to companies in a variety of industries, consistent with our investment objectives. These investments may be venture capital style investments which may not be fully collateralized. Our investments are typically in the form of secured debt instruments with fixed interest rates accompanied by an equity stake or warrants to purchase an equity interest for a nominal exercise price (such warrants are included in equity investments on the consolidated balance sheets). Interest income is earned on the debt instruments.

Beginning in the current year, the Bank began the process to build-out a strategic partnership program with financial technology (Fintech) companies. Although no partnerships have been finalized, the Bank is actively exploring this opportunity with a number of Fintech companies with a plan to begin operations in 2020.

On March 7, 2018, a majority of the Company’s shareholders authorized the Company’s Board of Directors to withdraw the Company’s election to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (1940 Act), and we withdrew such election effective April 2, 2018. At that point, we were no longer a BDC or subject to the provisions of the 1940 Act applicable to BDCs. Historically, the composition of the Company’s assets caused it to meet the definition of an “investment company,” and the Company made a corresponding election to be treated as a BDC. Now that the Company has de-elected BDC status, it operates so as to fall outside the definition of an “investment company” or within an applicable exception.

As a result of this change in status, commencing with the three months ended June 30, 2018:

• we consolidated the results of Medallion Bank and our other subsidiaries in our financial statements, which, as an investment company, we were previously precluded from doing; and

• with the consolidation of Medallion Bank, given its significance to our overall financial results, we now report as a bank holding company for accounting purposes under Article 9 and Guide 3 of Regulation S-X (but we are not a bank holding company for regulatory purposes).

As we made this change to our financial reporting prospectively, in this report we refer to both accounting in accordance with US generally accepted accounting principles (GAAP) applicable to bank holding companies (Bank Holding Company Accounting), which applies commencing April 2, 2018, and to that applicable to investment companies under the 1940 Act (Investment Company Accounting), which applies to prior periods.

Our wholly-owned subsidiary, Medallion Bank, is a bank regulated by the FDIC and the Utah Department of Financial Institutions that originates consumer loans, raises deposits, and conducts other banking activities. Medallion Bank generally provides us with our lowest cost of funds which it raises through bank certificates of deposit. To take advantage of this low cost of funds, historically we have referred a portion of our taxicab medallion and commercial loans to Medallion Bank, which originated these loans, and have been serviced by Medallion Servicing Corp. (MSC). However, at this time Medallion Bank is not originating any new taxi medallion loans and is working with MSC to service its existing portfolio. The FDIC restricts the amount of taxicab medallion loans that Medallion Bank may finance to three times Tier 1 capital, although it is less than one times Tier 1 capital as of September 30, 2019. MSC earns referral and servicing fees for these activities.

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The assets of Taxi Medallion Loan Trust III (Trust III) are not available to pay obligations of its affiliates or any other party. Trust III’s loans are serviced by Medallion Funding LLC (MFC). On November 8, 2018, a limited guaranty in favor of DZ Bank was terminated in exchange for a $1.4 million note, payable in quarterly installments over five years. As a result of such restructuring, effective as of such date, Trust III is no longer consolidated in our financial statements.

Average Balances and Rates (Bank Holding Company Accounting)

The following tables show the Company’s consolidated average balance sheet, interest income and expense and the average interest earning/bearing assets and liabilities, and which reflect the average yield on assets and average costs on liabilities for the three months ended September 30, 2019 and 2018, and for the nine months ended September 30, 2019 and for the six months ended September 30, 2018.

	Three Months Ended September 30,
	2019							2018
(Dollars in thousands)	Average Balance		Interest		Average Yield/Cost			Average Balance		Interest		Average Yield/Cost
Interest-earning assets
Interest-earning cash and cash equivalents	$	36,070	$	145		1.59	%	$	54,777	$	128		0.93	%
Investment securities		44,896		303		2.68			45,835		292		2.53
Loans
Recreation		675,973		26,147		15.35			600,160		24,001		15.87
Home improvement		217,510		5,184		9.46			194,466		3,968		8.10
Commercial		65,896		1,886		11.36			81,312		2,637		12.87
Medallion		117,160		975		3.30			247,409		2,126		3.41
Total loans		1,076,539		34,192		12.60			1,123,347		32,732		11.56
Total interest-earning assets		1,157,505		34,640		11.87			1,223,959		33,152		10.75
Non-interest-earning assets
Cash		27,380							10,347
Equity investments		9,960							10,888
Loan collateral in process of foreclosure(1)		52,962							60,871
Goodwill and intangible assets		203,882							210,972
Deferred tax asset		—							1,243
Other assets		50,026							40,148
Total non-interest-earning assets		344,210							334,469
Total assets	$	1,501,715						$	1,558,428
Interest-bearing liabilities
Deposits	$	947,521	$	6,003		2.51	%	$	936,724	$	5,064		2.14	%
DZ loan		—		—		0.00			96,585		1,001		4.11
SBA debentures and borrowings		75,073		741		3.92			78,786		769		3.87
Notes payable to banks		38,259		436		4.52			69,629		762		4.34
Retail and privately placed notes		66,592		1,618		9.64			33,625		875		10.32
Preferred securities		33,000		380		4.57			33,000		375		4.51
Other borrowings		8,737		47		2.13			7,596		41		2.14
Total interest-bearing liabilities		1,169,182		9,225		3.13			1,255,945		8,887		2.81
Non-interest-bearing liabilities
Deferred tax liability		6,114							—
Other liabilities		36,760							19,586
Total non-interest-bearing liabilities		42,874							19,586
Total liabilities		1,212,056							1,275,531
Non controlling interest		28,423							27,246
Total stockholders’ equity		261,236							255,651
Total liabilities and stockholders' equity	$	1,501,715						$	1,558,428
Net interest income			$	25,415						$	24,265
Net interest margin						8.71	%						7.94	%

(1) Includes financed sales of this collateral to third parties reported separately from the loan portfolio, and that are conducted by Medallion Bank of $6,091 and $2,668 as of September 30, 2019 and 2018.

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During the quarter, our net loans receivable had a yield of 11.87% (compared to 10.75% in the prior year quarter), mainly driven by the increase in the average yield on home improvement loans and the greater proportion of higher yielding assets in the portfolio mix while all other yields have declined overall. The debt, mainly certificates of deposit, helps fund the growing consumer loan business and as the market rates have increased, there has been an overall increase in the average borrowing rate to 3.13% from 2.8% in the prior year quarter.

	Nine Months Ended September 30, 2019							Six Months Ended September 30, 2018
(Dollars in thousands)	Average Balance		Interest		Average Yield/Cost			Average Balance		Interest		Average Yield/Cost
Interest-earning assets
Interest-earning cash and cash equivalents	$	34,464	$	443		1.72	%	$	42,674	$	223		1.04	%
Investment securities		44,630		993		2.97			44,522		561		2.51
Loans
Recreation		631,754		72,996		15.45			579,456		46,133		15.88
Home improvement		201,024		14,187		9.44			191,970		8,605		8.94
Commercial		61,818		5,597		12.11			80,834		5,315		12.24
Medallion		132,799		2,482		2.50			263,090		4,959		4.03
Total loans		1,027,395		95,262		12.40			1,115,350		65,012		11.63
Total interest-earning assets		1,106,489		96,698		11.68			1,202,546		65,796		10.91
Non-interest-earning assets
Cash		33,453							10,349
Equity investments		9,460							10,934
Loan collateral in process of foreclosure(1)		51,587							60,841
Goodwill and intangible assets		204,244							211,191
Deferred tax asset		—							1,873
Other assets		46,162							37,352
Total non-interest-earning assets		344,906							332,540
Total assets	$	1,451,395						$	1,535,086
Interest-bearing liabilities
Deposits	$	898,188	$	16,409		2.44	%	$	900,941	$	9,264		2.05	%
DZ loan		—		—		0.00			97,050		1,885		3.87
SBA debentures and borrowings		77,647		2,261		3.89			78,634		1,521		3.86
Notes payable to banks		48,999		1,703		4.65			71,077		1,583		4.44
Retail and privately placed notes		55,757		4,106		9.85			33,625		1,750		10.38
Preferred securities		33,000		1,170		4.74			33,000		728		4.40
Other borrowings		8,102		119		1.96			8,550		81		1.89
Total interest-bearing liabilities		1,121,693		25,768		3.07			1,222,877		16,812		2.74
Non-interest-bearing liabilities
Deferred tax liability		6,721							—
Other liabilities		32,678							23,081
Total non-interest-bearing liabilities		39,399							23,081
Total liabilities		1,161,092							1,245,958
Non controlling interest		27,800							27,227
Total stockholders’ equity		262,503							261,901
Total liabilities and stockholders' equity	$	1,451,395						$	1,535,086
Net interest income			$	70,930						$	48,984
Net interest margin						8.57	%						8.17	%

(1) Includes financed sales of this collateral to third parties reported separately from the loan portfolio, and that are conducted by Medallion Bank of $6,091 and $2,668 as of September 30, 2019 and 2018.

For the nine months ended September 30, 2019, our net loans receivable had a yield of 11.68%, up from 10.91% in the six months ended September 30, 2018, which was mainly driven by the higher proportion of the portfolio of the higher yielding recreation loans. The debt, mainly certificates of deposit that assist in funding the growing consumer business, has an average borrowing rate of 3.07%.

Page 48 of 77

Rate/Volume Analysis (Bank Holding Company Accounting)

The following tables present the change in interest income and expense due to changes in the average balances (volume) and average rates, calculated for the periods indicated.

	Three Months Ended September 30,
	2019									2018
(Dollars in thousands)	Increase (Decrease) In Volume			Increase (Decrease) in Rate			Net Change			Increase (Decrease) In Volume			Increase (Decrease) in Rate			Net Change
Interest-earning assets
Interest-earning cash and cash equivalents	$	(44	)	$	60		$	16		$	108		$	(35	)	$	73
Investment securities		(6	)		17			11			23			(15	)		8
Loans
Recreation		2,933			(786	)		2,147			1,994			(201	)		1,793
Home improvement		549			667			1,216			202			(767	)		(565	)
Commercial		(441	)		(310	)		(751	)		41			(184	)		(143	)
Medallion		(1,084	)		(67	)		(1,151	)		(278	)		(381	)		(659	)
Total loans		1,957			(496	)		1,461			1,959			(1,533	)		426
Total interest-earning assets		1,907			(419	)		1,488			2,090			(1,583	)		507
Interest-bearing liabilities
Deposits	$	58		$	881		$	939		$	363		$	508		$	871
DZ loan		(501	)		(500	)		(1,001	)		(10	)		132			122
SBA debentures and borrowings		(36	)		9			(27	)		6			2			8
Notes payable to banks		(357	)		31			(326	)		(42	)		(15	)		(57	)
Retail and privately placed notes		801			(58	)		743			—			(10	)		(10	)
Preferred securities		—			5			5			—			23			23
Other borrowings		6			—			6			(8	)		12			4
Total interest-bearing liabilities		(29	)		368			339			309			652			961
Net	$	1,936		$	(787	)	$	1,149		$	1,781		$	(2,235	)	$	(454	)

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During the quarter, the increase in the interest earnings assets was mainly driven by the increase in volume in consumer loans as well as lower volume in the medallion portfolio. The debt change was driven by the increase in the cost of funds borrowed due to the market as well as the new debt issued. These increases in activity were partly offset by the de-consolidation of the DZ loan.

	Nine Months Ended September 30, 2019									Six Months Ended September 30, 2018
(Dollars in thousands)	Increase (Decrease) In Volume			Increase (Decrease) In Rate			Net Change			Increase (Decrease) In Volume			Increase (Decrease) In Rate			Net Change
Interest-earning assets
Interest-earning cash and cash equivalents	$	(189	)	$	124		$	(65	)	$	100		$	(68	)	$	32
Investment securities		(10	)		138			128			32			13			45
Loans
Recreation		6,096			(2,051	)		4,045			2,923			(1,103	)		1,820
Home improvement		1,065			418			1,483			407			(530	)		(123	)
Commercial		(1,690	)		(628	)		(2,318	)		36			245			281
Medallion		(2,406	)		(972	)		(3,378	)		(429	)		(689	)		(1,118	)
Total loans		3,065			(3,233	)		(168	)		2,937			(2,077	)		860
Total interest-earning assets		2,866			(2,971	)		(105	)		3,069			(2,132	)		937
Interest-bearing liabilities
Deposits	$	(111	)	$	2,290		$	2,179		$	442		$	965		$	1,407
DZ loan		(1,106	)		(1,020	)		(2,126	)		(21	)		216			195
SBA debentures and borrowings		(59	)		19			(40	)		1			2			3
Notes payable to banks		(695	)		98			(597	)		(107	)		51			(56	)
Retail and privately placed notes		1,593			(111	)		1,482			—			(19	)		(19	)
Preferred securities		—			57			57			—			61			61
Other borrowings		(4	)		3			(1	)		1			6			7
Total interest-bearing liabilities		(382	)		1,336			954			316			1,282			1,598
Net	$	3,248		$	(4,307	)	$	(1,059	)	$	2,753		$	(3,414	)	$	(661	)

Our interest expense is driven by the interest rates payable on our bank certificates of deposit, short-term credit facilities with banks, fixed-rate, long-term debentures issued to the SBA, and other short-term notes payable. Medallion Bank issues brokered bank certificates of deposit, which are our lowest borrowing costs. Medallion Bank is able to bid on these deposits at a wide variety of maturity levels, which allows for improved interest rate management strategies.

Our cost of funds is primarily driven by the rates paid on our various debt instruments and their relative mix, and changes in the levels of average borrowings outstanding. See Note 7 to the consolidated financial statements for details on the terms of our outstanding debt. Our debentures issued to the SBA typically have terms of ten years.

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We measure our borrowing costs as our aggregate interest expense for all of our interest-bearing liabilities divided by the average amount of such liabilities outstanding during the period. The tables above and the following table shows the average borrowings and related borrowing costs for the three andnine months ended September 30, 2019 and 2018. Our average balances declined during the current quarter and nine months ended September 30, 2019, reflecting the contraction in the medallion loan portfolio, mainly due to the deconsolidation of Trust III in the 2018 fourth quarter, but partly offset by the increase of certificates of deposits as the consumer business continued to grow. The increase in borrowing costs primarily reflects the repricing of term borrowings based upon current market conditions, and the increase in deposit balances reflect the lengthening of their maturity profile.

	Combined(1)
	Nine Months Ended
(Dollars in thousands)	Interest Expense		Average Balance		Average Borrowing Costs
September 30, 2018
Deposits	$	9,263	$	900,941		2.05	%
DZ loan		2,687		97,734		3.68
SBA debentures and borrowings		2,269		78,543		3.86
Notes payable to banks		2,398		74,503		4.30
Retail notes		2,625		33,625		10.44
Preferred securities		1,040		33,000		4.21
Other borrowings		81		8,550		1.89
Total borrowings	$	20,363	$	1,226,896		2.22

(1) Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

We expect to continue to seek SBA funding through Medallion Capital, Inc. (Medallion Capital) to the extent it offers attractive rates. SBA financing subjects its recipients to limits on the amount of secured bank debt they may incur. We use SBA funding to fund loans that qualify under the SBIA and SBA regulations. We believe that financing operations primarily with short-term floating rate secured bank debt has generally decreased our interest expense, but has also increased our exposure to the risk of increases in market interest rates, which we mitigate with certain interest rate strategies. At September 30, 2019 and 2018, short-term adjustable rate debt constituted 5% and 13% of total debt.

Loans

The gross loans are 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. During the three and nine months ended September 30, 2019, there was continued growth in the consumer lending segments, which was partially offset by the various commercial loans settled during the period and payments received from borrowers.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – June 30, 2019	$	668,540		$	209,549		$	64,442		$	145,944		$	1,088,475
Loan originations		82,662			42,641			4,750			—			130,053
Principal payments		(40,790	)		(20,729	)		(375	)		(4,013	)		(65,907	)
Charge-offs, net		(3,489	)		(51	)		(819	)		(1,535	)		(5,894	)
Transfer to loans in process of foreclosure, net		(3,429	)		—			—			(3,005	)		(6,434	)
Other		2,899			(684	)		211			(437	)		1,989
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

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Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – December 31, 2018	$	587,038		$	183,155		$	64,083		$	183,606		$	1,017,882
Loan originations		248,989			102,821			14,520			—			366,330
Principal payments		(113,680	)		(53,508	)		(9,789	)		(10,612	)		(187,589	)
Charge-offs, net		(10,853	)		(295	)		(819	)		(18,166	)		(30,133	)
Transfer to loans in process of foreclosure, net		(10,311	)		—			—			(15,573	)		(25,884	)
Other		5,210			(1,447	)		214			(2,301	)		1,676
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

Provision and Allowance for Loan Loss (Bank Holding Company Accounting)

During the three months ended September 30, 2019, New York medallion values (representing approximately 88% of the medallion loan portfolio) remained constant at $169,500, along with the Chicago medallion values remaining at $19,500, while the values also remained consistent for three months ended September 30, 2018, more loans had continued to age over 90 or 120 days, and were reserved and charged-off down to their collateral value. The provision and allowance also included the general reserve of $4,608,000 for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses as of September 30, 2019, whereas for the three months ended September 30, 2018 it included the general reserve of $4,897,000. This figure as of September 30, 2019 excludes the general reserve of $17,351,000 at Medallion Bank, much of which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032,000. In addition, during the three months ended September 30, 2019, the recreation loan portfolio saw a decline in the reserve percentage leading to the lower provision.

During the nine months ended September 30, 2019, the New York medallion values declined to a net realizable value of $169,500 from $181,000 at December 31, 2018. Overall loans continued to age over 90 and 120 days, at which point they are charged-off.

	Three Months Ended September 30,							Nine Months Ended September 30,				Six Months Ended September 30,
(Dollars in thousands)	2019				2018			2019				2018
Allowance for loan losses – beginning    balance	$	40,670			$	21,425		$	36,395			$	—		(1)
Charge-offs
Recreation		(5,444	)			(4,825	)		(16,366	)			(9,471	)
Home improvement		(568	)			(659	)		(1,655	)			(1,220	)
Commercial		(819	)			—			(819	)		—
Medallion		(2,378	)			(6,457	)		(20,408	)			(12,737	)
Total charge-offs		(9,209	)			(11,941	)		(39,248	)			(23,428	)
Recoveries
Recreation		1,955				1,318			5,513				3,217
Home improvement		517				367			1,360				606
Commercial	—					-		—					4
Medallion		843				110			2,242				304
Total recoveries		3,315				1,795			9,115				4,131
Net charge-offs(2)		(5,894	)			(10,146	)		(30,133	)			(19,297	)
Provision for loan losses		8,337				18,205			36,851				48,781
Allowance for loan losses – ending balance	$	43,113		(3)	$	29,484		$	43,113		(3)	$	29,484

(1) Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances, resulting in a starting point of zero for the six months ended September 30, 2018.

(2) As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company.

(3) Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the loans in question. As of September 30, 2019, this figure excludes $17,351 of a general reserve on loans at Medallion Bank, much of which was netted

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against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

The following tables set forth the allowance for loan losses by type as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	15,927		37	%		2.25	%
Home Improvement		2,235		5			0.97
Commercial		—		—			0.00
Medallion		24,951		58			18.22
Total	$	43,113		100	%		3.77	%

December 31, 2018 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home Improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

The following table sets forth the pre-tax changes in our unrealized appreciation (depreciation) on investments for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investments Other Than Securities			Total
Balance December 31, 2017	$	(20,338	)	$	(513	)	$	158,920	$	3,121		$	(1,490	)	$	139,700
Net change in unrealized
Appreciation on investments		—			—			38,795		(998	)		—			37,797
Depreciation on investments		(38,170	)		18			—		—			(1,915	)		(40,067	)
Reversal of unrealized appreciation    (depreciation) related to realized
Gains on investments		—			—			—		—			—			—
Losses on investments		34,747			—			—		—			—			34,747
Balance March 31, 2018	$	(23,761	)	$	(495	)	$	197,715	$	2,123		$	(3,405	)	$	172,177

Under both Bank Holding Company Accounting and Investment Company Accounting, we generally follow a practice of discontinuing the accrual of interest income on our loans that are in arrears as to payments for a period of 90 days or more. We deliver a default notice and begin foreclosure and liquidation proceedings when management determines that pursuit of these remedies is the most appropriate course of action under the circumstances. A loan is considered to be delinquent if the borrower fails to make a payment on time; however, during the course of discussion on delinquent status, we may agree to modify the payment terms of the loan with a borrower that cannot make payments in accordance with the original loan agreement. For loan modifications, the loan will only be returned to accrual status if all past due interest and principal payments are brought fully current. For credit that is collateral based, we evaluate the anticipated net residual value we would receive upon foreclosure of such loans, if necessary. There can be no assurance, however, that the collateral securing these loans will be adequate in the event of foreclosure. For credit that is cash flow-based, we assess our collateral position, and evaluate most of these relationships as ongoing businesses, expecting to locate and install a new operator to run the business and reduce the debt.

For the consumer 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 to realized losses. If the collateral is repossessed, a realized loss is recorded to write the collateral down to its net realizable value, 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 as a realized loss, and any excess proceeds are recorded as a realized gain. Proceeds collected on charged off accounts are recorded as realized gains. All collection, repossession, and recovery efforts are handled on behalf of Medallion Bank by the servicer.

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The following table shows the trend in loans 90 days or more past due as of the dates indicated.

	September 30, 2019					June 30, 2019					March 31, 2019					December 31, 2018					September 30, 2018
(Dollars in thousands)	Amount		%(1)			Amount		%(1)			Amount		%(1)			Amount		%(1)			Amount		%(1)
Recreation	$	4,431		0.4	%	$	3,613		0.3	%	$	3,282		0.3	%	$	4,020		0.4	%	$	3,164		0.3	%
Home improvement		228		0.0			165		0.0			156		0.0			135		0.0			175		0.0
Commercial		276		0.0			731		0.1			710		0.1			279		0.0			421		0.0
Medallion		3,188		0.3			3,746		0.4			3,954		0.4			15,720		1.6			10,301		1.0
Total loans 90 days or more    past due	$	8,123		0.7	%	$	8,255		0.8	%	$	8,102		0.8	%	$	20,154		2.0	%	$	14,061		1.3	%

(1) Percentages are calculated against the total loan portfolio.

We estimate that the weighted average loan-to-value ratio of our medallion loans was approximately 202%, 220%, and 224% as of September 30, 2019, December 31, 2018, and September 30, 2018.

Recreation and medallion loans that reach 120 days past due are charged down to collateral value and reclassified to loans in process of foreclosure. The following tables show the activity of loans in process of foreclosure for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – June 30, 2019	$	955		$	51,413		$	52,368
Transfer from loans, net		3,429			3,005			6,434
Sales		(1,604	)		(387	)		(1,991	)
Cash payments received		—			(1,556	)		(1,556	)
Collateral valuation adjustments		(1,603	)		(113	)		(1,716	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – December 31, 2018	$	1,503		$	47,992		$	49,495
Transfer from loans, net		10,311			15,573			25,884
Sales		(5,715	)		(899	)		(6,614	)
Cash payments received		—			(6,100	)		(6,100	)
Collateral valuation adjustments		(4,922	)		(4,204	)		(9,126	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

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The following table presents the credit-related information for the investment portfolios as of March 31, 2018 shown under Investment Company Accounting.

(Dollars in thousands)	March 31, 2018
Total loans
Medallion loans	$	161,155
Commercial loans		93,620
Total loans		254,775
Investments in Medallion Bank and other controlled    subsidiaries		331,169
Equity investments(1)		9,458
Investment securities		—
Net investments	$	595,402
Net investments in Medallion Bank and other controlled    subsidiaries	$	918,904
Managed net investments	$	1,384,449
Unrealized appreciation (depreciation) on investments
Medallion loans	$	(23,761	)
Commercial loans		(495	)
Total loans		(24,256	)
Investments in Medallion Bank and other controlled    subsidiaries		197,715
Equity investments		2,123
Investment securities		—
Total unrealized appreciation on investments	$	175,582
Net unrealized depreciation on investments at Medallion    Bank and other controlled subsidiaries	$	(69,561	)
Managed total unrealized appreciation on investments	$	106,021
Unrealized appreciation (depreciation) as a % of balances    outstanding(2)
Medallion loans		(12.86	)%
Commercial loans		(0.53	)
Total loans		(8.70	)
Investments in Medallion Bank and other controlled    subsidiaries		148.15
Equity investments		28.95
Investment securities		—
Net investments		41.83
Net investments at Medallion Bank and other controlled    subsidiaries		(7.12	)%
Managed net investments		8.36	%

(1) Represents common stock, warrants, preferred stock, and limited partnership interests held as investments.

(2) Unlike other lending institutions, under Investment Company Accounting we were not permitted to establish reserves for loan losses. Instead, the valuation of our portfolio was adjusted quarterly to reflect estimates of the current realizable value of the investment portfolio. These percentages represent the discount or premium that investments were carried on the books at, relative to their par or gross value.

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The following table presents the gain/loss experience on the investment portfolio for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Realized gains (losses) on loans and equity investments
Medallion loans	$	(34,747	)
Commercial loans		2
Total loans		(34,745	)
Investments in Medallion Bank and other controlled    subsidiaries		—
Equity investments		—
Investment securities		—
Total realized losses on loans and equity investments	$	(34,745	)
Net realized losses on investments at Medallion Bank and other    controlled subsidiaries	$	(23,073	)
Total managed realized losses on loans and equity    investments	$	(57,818	)
Realized gains (losses) as a % of average balances    outstanding
Medallion loans		(65.74	)%
Commercial loans		0.01
Total loans		(45.96	)
Investments in Medallion Bank and other controlled    subsidiaries		—
Equity investments		—
Investment securities		—
Net investments		(30.89	)
Net investments at Medallion Bank and other controlled    subsidiaries		(9.66	)%
Managed net investments		(18.22	)%

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The following table sets forth the pre-tax changes in our unrealized and realized gains and losses in the investment portfolio for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Net change in unrealized appreciation (depreciation) on    investments
Unrealized appreciation	$	(998	)
Unrealized depreciation		(38,152	)
Net unrealized appreciation on investments in Medallion Bank    and other controlled subsidiaries		29,115
Realized gains		—
Realized losses		34,747
Net unrealized losses on investments other than securities    and other assets		(1,915	)
Total	$	22,797
Net realized gains (losses) on investments
Realized gains	$	—
Realized losses		(34,747	)
Other gains		—
Direct recoveries		2
Realized gains on investments other than securities and other    assets		—
Total	$	(34,745	)

SEGMENT RESULTS

We manage our financial results under four operating segments and report like a bank holding company. The operating segments are recreation lending, home improvement lending, commercial lending, and medallion lending. We also show results for two non-operating segments; RPAC and corporate and other investments. Prior to April 2, 2018, we operated as one segment. All results are for the three months ended September 30, 2019 and 2018, and for the nine months ended September 30, 2019 and the six months ended September 30, 2018.

Recreation Lending

The recreation lending segment is a high-growth prime and non-prime consumer finance business which is a significant source of income for us, accounting for 75% of our interest income for the three and nine months ended September 30, 2019. The loans are secured primarily by RVs, boats, and trailers, with RV loans making up 62% of the portfolio, boat loans making up 18% of the portfolio, and trailer loans 12%. Recreation loans are made to borrowers residing in all fifty states, with the highest concentrations in Texas, California, and Florida, at 17%, 10%, and 10% of loans outstanding, and with no other states over 10%. During the 2018 third quarter, there was a sale of $55,979,000 loans for a gain of $3,093,000.

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The following table presents certain financial data and ratios as of and for the three months ended September 30, 2019 and 2018, and the nine months ended September 30, 2019 and the sixmonths ended September 30, 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,			Six Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Selected Earnings Data
Total interest income	$	26,147		$	24,001		$	72,996		$	46,133
Total interest expense		3,578			2,306			9,541			4,442
Net interest income		22,569			21,695			63,455			41,691
Provision for loan losses		6,744			4,423			19,925			9,133
Net interest income after loss provision		15,825			17,272			43,530			32,558
Total non-interest (expense)		(6,181	)		(3,160	)		(17,501	)		(8,680	)
Net income before taxes		9,644			14,112			26,029			23,878
Income tax provision		(2,497	)		(3,979	)		(6,741	)		(6,141	)
Net income	$	7,147		$	10,133		$	19,288		$	17,737
Balance Sheet Data
Total loans, gross							$	706,393		$	575,875
Total loan allowance								15,927			2,880
Total loans, net								690,466			572,995
Total assets								702,541			582,610
Total borrowings								559,995			431,868
Selected Financial Ratios
Return on average assets		4.14	%		6.80	%		4.01	%		6.14	%
Return on average equity		20.69			27.77			17.42			25.84
Interest yield		15.35			15.87			15.45			15.88
Net interest margin		13.25			14.34			13.43			14.35
Reserve coverage		2.25			0.50			2.25			0.50
Delinquency status(1)		0.69			0.55			0.69			0.55
Charge-off %		2.05			3.19			2.30			3.26

(1) Loans 90 days or more past due.

Home Improvement Lending

The home improvement lending segment works with contractors and financial service providers to finance residential home improvements and is concentrated in swimming pools, roofs, solar panels, and windows at 25%, 20%, 13%, and 13% of total loans outstanding, with no other collateral types over 10%. Home improvement loans are made to borrowers residing in all fifty states, with the highest concentrations in Texas, Ohio, and Florida at 12%, 11%, and 10% of loans outstanding, and with no other states over 10%. During the 2018 third quarter, there was a sale of $44,909,000 loans for a gain of $2,079,000.

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The following table presents certain financial data and ratios as of and for the three months ended September 30, 2019 and 2018, and the nine months ended September 30, 2019 and the six months ended September 30, 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,			Six Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Selected Earnings Data
Total interest income	$	5,184		$	3,968		$	14,187		$	8,605
Total interest expense		1,309			709			3,252			1,448
Net interest income		3,875			3,259			10,935			7,157
Provision for loan losses		(629	)		598			733			1,475
Net interest income after loss provision		4,504			2,661			10,202			5,682
Total non-interest income (expense)		(2,000	)		400			(5,356	)		(1,285	)
Net income before taxes		2,504			3,061			4,846			4,397
Income tax provision		(648	)		(863	)		(1,255	)		(1,159	)
Net income	$	1,856		$	2,198		$	3,591		$	3,238
Balance Sheet Data
Total loans, gross							$	230,726		$	169,642
Total loan allowance								2,235			861
Total loans, net								228,491			168,781
Total assets								239,991			175,333
Total borrowings								190,871			132,914
Selected Financial Ratios
Return on average assets		3.22	%		4.57	%		2.50	%		3.42	%
Return on average equity		16.09			19.99			11.34			15.22
Interest yield		9.46			8.10			9.44			8.94
Net interest margin		7.07			6.65			7.27			7.44
Reserve coverage		0.97			0.51			0.97			0.51
Delinquency status(1)		0.11			0.10			0.11			0.10
Charge-off %		0.09			1.34			0.20			1.27

(1) Loans 90 days or more past due.

Commercial Lending

We originate both senior and subordinated loans nationwide to businesses in a variety of industries, more than 57% of which are located in the Midwest regions, with the rest scattered across the country. These mezzanine loans are primarily secured by a second position on all assets of the businesses and generally range in amount from $2,000,000 to $5,000,000 at origination, and typically included an equity component as part of the financing. The commercial lending business has concentrations in manufacturing and professional, scientific, and technical services, making up 58% and 14% of the total business.

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The following table presents certain financial data and ratios as of and for the three months ended September 30, 2019 and 2018, andfor the nine months ended September 30, 2019 and thesix months ended September 30, 2018. The commercial segment encompasses the mezzanine lending business, and the other legacy commercial loans (immaterial to total) have been re-allocated to corporate and otherinvestments for all periods presented.

	Three Months Ended September 30,						Nine Months Ended September 30,			Six Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Selected Earnings Data
Total interest income	$	1,842		$	2,370		$	5,359		$	4,587
Total interest expense		741			500			2,108			985
Net interest income		1,101			1,870			3,251			3,602
Provision for loan losses		364			(75	)		364			100
Net interest income after loss provision		737			1,945			2,887			3,502
Total non-interest income (expense)		563			(945	)		(532	)		(1,887	)
Net income before taxes		1,300			1,000			2,355			1,615
Income tax provision		(314	)		(232	)		(568	)		(368	)
Net income	$	986		$	768		$	1,787		$	1,247
Balance Sheet Data
Total loans, gross							$	64,646		$	77,986
Total loan allowance								-			100
Total loans, net								64,646			77,886
Total assets								87,486			88,035
Total borrowings								69,658			53,323
Selected Financial Ratios
Return on average assets		4.49	%		3.50	%		2.69	%		2.81	%
Return on average equity		22.45			7.47			13.43			6.05
Interest yield		11.09			12.33			11.59			13.48
Net interest margin		6.63			9.73			7.03			10.58
Reserve coverage(1)		0.00			0.13			0.00			0.13
Delinquency status(1) (2)		0.40			0.51			0.40			0.51
Charge-off %(3)		4.93			0.00			1.77			0.00

(1) Ratio is based off of total commercial balances, and relates solely to the legacy commercial loan balances.

(2) Loans 90 days or more past due.

(3) Ratio is based on total commercial lending balances, and relates to the total loan business.

Geographic Concentrations (Dollars in thousands)	Total Gross Loans		% of Market
Michigan	$	10,304		16	%
Minnesota		9,445		15	%
Illinois		5,349		8	%
North Carolina		5,250		8	%
California		4,985		8	%
New Jersey		4,909		7	%
Other(1)		24,404		38	%
Total	$	64,646		100	%

(1) Includes 9 other states with none greater than 7%.

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Medallion Lending

The medallion lending segment operates mainly in the New York, Newark, and Chicago markets. We have a long history of owning, managing, and financing taxicab fleets, taxicab medallions, and corporate car services. During the three months ended September 30, 2019, the medallion values for New York and Chicago remained at a constant market value of $169,500, net of liquidation costs in New York and a market value of $19,500, net of liquidation costs in Chicago. We continued to experience a decline in interest income due to loans aging greater than 90 days and being placed on nonaccrual and by removing underperforming loans from the portfolio by transferring them to loan collateral in process of foreclosure with charge-offs to collateral value, and work with borrowers to collect on the loans. Lastly, in the 2018 fourth quarter we de-consolidated Trust III, leading to an overall decline in medallion loans. All the loans are secured by the medallions and enhanced by personal guarantees of the stockholders and owners.

The following table presents certain financial data and ratios as of and for the three months ended September 30, 2019 and 2018, and the nine months ended September 30, 2019 and the six months ended September 30, 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,			Six Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Selected Earnings Data
Total interest income	$	975		$	2,126		$	2,482		$	5,315
Total interest expense		1,935			3,672			5,435			7,045
Net interest loss		(960	)		(1,546	)		(2,953	)		(1,730	)
Provision for loan losses		1,858			13,259			15,374			38,073
Net interest loss after loss provision		(2,818	)		(14,805	)		(18,327	)		(39,803	)
Total non-interest (expense)		(2,762	)		(4,077	)		(8,106	)		(6,888	)
Net loss before taxes		(5,580	)		(18,882	)		(26,433	)		(46,691	)
Income tax benefit		1,345			4,371			6,375			10,528
Net loss	$	(4,235	)	$	(14,511	)	$	(20,058	)	$	(36,163	)
Balance Sheet Data
Total loans, gross							$	136,954		$	261,470
Total loan allowance								24,951			25,643
Total loans, net								112,003			235,827
Total assets								226,868			369,763
Total borrowings								180,040			399,750
Selected Financial Ratios
Return on average assets		(7.26	)%		(15.23	)%		(10.82	)%		(18.49	)%
Return on average equity		(36.30	)	NM				(54.12	)	NM
Interest yield		3.30			3.41			2.50			4.03
Net interest margin		(3.25	)		(2.48	)		(2.97	)		(1.31	)
Reserve coverage		18.22			9.81			18.22			9.81
Delinquency status(1)		2.41			4.06			2.41			4.06
Charge-off %		5.20			10.35			18.29			9.66

(1) Loans 90 days or more past due.

Geographic Concentration (dollars in thousands)	Total Gross Loans		% of Market
New York City	$	120,656		88	%
Newark		15,293		11	%
Chicago		514		1	%
All Other		491		0	%
Total	$	136,954		100	%

RPAC

We are the majority owner and managing member of RPAC Racing, LLC, a performance and marketing company for NASCAR. Revenues are mainly earned through sponsorships and race winning activity over the nine month race season (February through November) during the year.

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The following table presents certain financial data and ratios as of and for the three months ended September 30, 2019 and 2018, and the nine months ended September 30, 2019 and the six months ended September 30, 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,			Six Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Selected Earnings Data
Sponsorship, race winnings, and other income	$	7,940		$	5,371		$	16,008		$	10,599
Race team and other expenses		4,447			4,763			12,509			9,540
Interest expense		47			40			119			81
Total expenses		4,494			4,803			12,628			9,621
Net income before taxes		3,446			568			3,380			978
Income tax (provision)		(831	)		(107	)		(815	)		(150	)
Net income	$	2,615		$	461		$	2,565		$	828
Balance Sheet Data
Total assets							$	33,134		$	36,237
Total borrowings								7,758			7,614
Selected Financial Ratios
Return on average assets		31.13	%		4.94	%		10.76	%		4.46	%
Return on average equity	NM				42.83		NM				38.67

Corporate and Other Investments

This nonoperating segment relates to our equity and investment securities, as well as our legacy commercial business, other assets, liabilities, revenues, and expenses not allocated to the operating segments. This segment also reflects the elimination of all intercompany activity among the consolidated entities.

The following table presents certain financial data and ratios as of and for the three months ended September 30, 2019 and 2018, and the nine months ended September 30, 2019 and the six months ended September 30, 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,			Six Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Selected Earnings Data
Total interest income	$	492		$	687		$	1,674		$	1,156
Total interest expense		1,615			1,660			5,313			2,811
Net interest loss		(1,123	)		(973	)		(3,639	)		(1,655	)
Provision for loan losses		—			—			455			-
Net interest loss after loss provision		(1,123	)		(973	)		(4,094	)		(1,655	)
Total non interest (expense)		(2,591	)		(2,849	)		(5,822	)		(4,390	)
Net loss before taxes		(3,714	)		(3,822	)		(9,916	)		(6,045	)
Income tax benefit		2,780			927			4,930			1,428
Net loss	$	(934	)	$	(2,895	)	$	(4,986	)	$	(4,617	)
Balance Sheet Data
Total loans, gross							$	3,563		$	4,572
Total loan allowance								-			-
Total loans, net								3,563			4,572
Total assets								229,734			319,429
Total borrowings								178,793			239,605
Selected Financial Ratios
Return on average assets		(1.54	)%		(4.29	)%		(2.90	)%		(3.55	)%
Return on average equity		(7.81	)		(15.05	)		(11.52	)		(11.16	)

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SELECTED FINANCIAL DATA

Summary Consolidated Financial Data

As described herein, for the three and nine months ended September 30, 2019 and for the three and six months ended September 30, 2018, the Company reported under Bank Holding Company Accounting. For the three months ended March 31, 2018, the Company reported under Investment Company Accounting. You should read the consolidated financial information below with the consolidated financial statements and accompanying notes thereto included in this report.

(Dollars in thousands, except per share data)	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Statement of operations
Net interest income	$	25,415		$	70,930
Provision for loan losses		8,337			36,851
Non-interest (expense), net		(9,478	)		(33,818	)
Net income before income taxes		7,600			261
Income tax (provision) benefit		(165	)		1,926
Less: income attributable to the non-controlling interest		2,460			3,484
Net income (loss)	$	4,975		$	(1,297	)
Per share data
Net income (loss) per diluted share	$	0.20		$	(0.05	)
Distributions per share		0.00			0.00
Weighted average common shares outstanding
Diluted		24,607,167			24,336,677
				September 30, 2019
Balance sheet data
Net loans receivable				$	1,099,169
Total assets					1,519,754
Total borrowings(1)					1,201,025
Total liabilities					1,226,964
Total equity(2)					292,790
	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Selected financial ratios
Return on average assets (ROA)		1.31	%		(0.12	)%
Return on average equity (ROE)		6.81			(0.60	)
Dividend payout ratio		0.00			0.00
Net interest margin		8.71			8.57
Other income ratio(3)		3.04			2.10
Total expense ratio(4)		9.51			9.07
Equity to assets(2)		19.27			19.27
Debt to equity (1)	4.1x			4.1x
Loans receivable to assets		72	%		72	%
Net charge-offs	$	(5,894	)	$	(30,133	)
Net charge-offs as a % of average loans receivable		2.17	%		3.92	%
Allowance coverage ratio		3.77			3.77

(1) Includes $13,910 related to the operating lease liability.

(2) Includes $29,304 related to non-controlling interest in consolidated subsidiaries.

(3) Other income ratio represents other income divided by average interest earning assets, and includes the gain on extinguishment of debt of $4,145 for the nine months ended September 30, 2019.

(4) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average interest earning assets.

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(Dollars in thousands, except per share data)	Three Months Ended September 30, 2018			Six Months Ended September 30, 2018
Statement of operations
Net interest income	$	24,265		$	48,984
Provision for loan losses		18,205			48,781
Non-interest (expense), net		(10,023	)		(22,071	)
Net loss before income taxes		(3,963	)		(21,868	)
Income tax benefit		117			4,138
Less: income attributable to the non-controlling interest		851			1,614
Net loss	$	(4,697	)	$	(19,344	)
Per share data
Net loss per diluted share	$	(0.19	)	$	(0.80	)
Distributions per share		0.00			0.00
Weighted average common shares outstanding
Diluted		24,235,242			24,233,029
				September 30, 2018
Balance sheet data
Net loan receivable				$	1,060,061
Total assets					1,571,407
Total borrowings					1,265,074
Total liabilities					1,290,992
Total equity(1)					280,415
	Three Months Ended September 30, 2018			Six Months Ended September 30, 2018
Selected financial ratios
Return on average assets (ROA)		(1.19	)%		(2.51	)%
Return on average equity (ROE)		(6.59	)		(13.34	)
Dividend payout ratio		—			—
Net interest margin		7.94			8.17
Other income ratio(2)		3.06			2.37
Total expense ratio(3)		9.15			8.14
Equity to assets(1)		17.84			17.84
Debt to equity	4.5x			4.5x
Loans receivable to assets		84	%		84	%
Net charge-offs	$	10,146		$	19,297
Net charge-offs as a % of average loan receivable		3.54	%		3.37	%
Allowance coverage ratio		2.71			2.71

(1) Includes $27,495 related to non-controlling interest in consolidated subsidiaries.

(2) Other income ratio represents other income divided by average interest earning assets.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average interest earning assets.

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	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2018
Statement of operations
Investment income	$	4,033
Interest expense		3,551
Net interest income		482
Noninterest income		60
Operating expenses		4,108
Net investment loss before income taxes		(3,566	)
Income tax benefit		336
Net investment loss after income taxes		(3,230	)
Net realized losses on investments		(34,745	)
Net change in unrealized appreciation on Medallion Bank and    other controlled subsidiaries(1)		29,115
Net change in unrealized depreciation on investments other    than securities		(1,915	)
Net change in unrealized depreciation on investments(1)		(4,403	)
Income tax benefit		304
Net decrease in net assets resulting from operations	$	(14,874	)
Per share data
Net investment loss	$	(0.15	)
Income tax benefit		0.03
Net realized losses on investments		(1.44	)
Net change in unrealized appreciation on investments(1)		0.94
Net decrease in net assets resulting from operations	$	(0.62	)
Distributions declared per share	$	0.00
Weighted average common shares outstanding
Basic		24,154,879
Diluted		24,154,879
	March 31, 2018
Balance sheet data
Net investments	$	595,402
Total assets		616,710
Total funds borrowed		320,662
Total liabilities		344,273
Total shareholders’ equity		272,437
Managed balance sheet data(2)
Net investments	$	1,386,136
Total assets		1,479,826
Total funds borrowed		1,167,888
Total liabilities		1,207,389
	Three Months Ended March 31, 2018
Selected financial ratios and other data
Return on average assets (ROA)(3)
Net investment loss after taxes		(2.08	)%
Net decrease in net assets resulting from operations		(9.55	)
Return on average equity (ROE)(4)
Net investment loss after taxes		(4.62	)
Net decrease in net assets resulting from operations		(21.24	)
Weighted average yield		2.70	%
Weighted average cost of funds		2.38
Net interest margin(5)		0.32
Non-interest income ratio(6)		0.01
Total expense ratio(7)		1.16
Operating expense ratio(8)		0.68
	March 31, 2018
As a percentage of net investment portfolio
Medallion loans		27	%
Commercial loans		15
Investment in Medallion Bank and other controlled subsidiaries		56
Equity investments		2
Investment securities		—
Investments to assets(9)		97	%
Equity to assets(10)		44
Debt to equity(11)		118

(1) Unrealized appreciation (depreciation) on investments represents the increase (decrease) for the period in the fair value of our investments, including the results of operations for Medallion Bank and other controlled subsidiaries, where applicable.

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(2) Includes the balances of wholly owned, unconsolidated portfolio companies, primarily Medallion Bank.

(3) ROA represents the net investment loss after taxes or net decrease in net assets resulting from operations, divided by average total assets.

(4) ROE represents the net investment loss after taxes or net decrease in net assets resulting from operations, divided by average shareholders’ equity.

(5) Net interest margin represents net interest income for the period divided by average interest earning assets, and included dividends from Medallion Bank and other controlled subsidiaries of $28 for the three months ended March 31, 2018. On a managed basis, combined with Medallion Bank, the net interest margin was 6.96% for the three months ended March 31, 2018.

(6) Noninterest income ratio represents noninterest income divided by average interest earning assets.

(7) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average interest earning assets.

(8) Operating expense ratio represents operating expenses divided by average interest earning assets.

(9) Represents net investments divided by total assets as of the date indicated.

(10) Represents total shareholders’ equity divided by total assets as of the date indicated.

(11) Represents total funds borrowed divided by total shareholders’ equity as of the date indicated.

Consolidated Results of Operations

2019 Third Quarter Compared to 2018 Third Quarter under Bank Holding Company Accounting

Net income attributable to stockholders was $4,975,000 or $0.20 per diluted common share in the 2019 third quarter compared to a net loss of $4,697,000 or $0.19 per diluted common share in the 2018 third quarter.

Total interest income for the 2019 third quarter was $34,640,000, compared to $33,152,000 in the 2018 third quarter. Interest income in the 2019 third quarter reflected continued growth in the higher yielding consumer lending segments, offset by contraction in the lower yielding medallion lending segment, as well as $713,000 of loan premium amortization compared to $1,780,000 in the prior year quarter.  The yield on interest earning assets was 11.87% in the 2019 third quarter, an improvement from 10.75% in the 2018 third quarter. Average interest earning assets were $1,157,505,000 in the 2019 third quarter, a decline from $1,223,959,000 during the 2018 third quarter, mainly due to the deconsolidation of Trust III in the 2018 fourth quarter and the continued charge offs and paydowns of the medallion business, partially offset by the growth in the consumer portfolios.

Loans before allowance for loan losses were $1,142,282,000 as of September 30, 2019, and were comprised of recreation ($706,393,000), home improvement ($230,726,000), medallion ($136,954,000) and commercial ($68,209,000) loans. The Company had an allowance for loan losses as of the end of the 2019 third quarter of $43,113,000, which was attributable to medallion (58%), recreation (37%), and home improvement (5%) loans. Loans increased from $1,088,475,000 at June 30, 2019 primarily due to $130,053,000 of originations, primarily in the recreation and home improvement segments, offset by principal repayments, transfer to loans in process of foreclosure, and net charge offs. As of September 30, 2018, gross loans were $1,089,545,000 and were comprised of recreation ($575,875,000), home improvement ($169,642,000), medallion ($261,470,000) and commercial ($82,558,000) loans. The Company had an allowance for loan losses as of the end of the 2018 third quarter of $29,484,000, which was attributable to the medallion (87%), recreation (10%), and home improvement (3%) loan portfolios.  The provision for loan losses was $8,337,000 in the 2019 third quarter compared to $18,205,000 in the 2018 third quarter. The improvement was reflective of a lower medallion loan portfolio, as well as medallion values remaining consistent in the current quarter for the New York and Chicago markets. The charge off ratios on the loan portfolio improved to 2.17% in the 2019 third quarter compared to 3.54% in the prior year quarter and the allowance coverage also improved. See Note 4 for additional information on loans and the allowance for loan losses.

Interest expense was $9,225,000 at the 2019 third quarter compared to $8,887,000 in the 2018 third quarter, and the cost of borrowed funds was 3.13% compared to 2.81%, the increase mainly driven by the issuance of new borrowings at higher rates and fluctuations in average floating rate borrowings. Average debt outstanding was $1,169,182,000 in the quarter, compared to $1,255,945,000 for the 2018 third quarter. See page 47 for a table which shows average balances and cost of funds for our funding sources.

Net interest income was $25,415,000 for the 2019 third quarter compared to $24,265,000 in the 2018 third quarter and the net interest margin was 8.71% compared to 7.94% reflecting the above.

Noninterest income, which is comprised of sponsorship and race winnings, prepayment fees, servicing fee income, late charges, write-downs of loan collateral, impairment of equity investments and other miscellaneous income, was $8,874,000 in the 2019 third quarter, compared to $9,441,000 in the 2018 third quarter. The change was driven by the improvement in the current quarter sponsorship and race winnings along with the $1,384,000 gain on warrants, whereas in the prior year quarter there, had been a $5,172,000 gain on the sale of consumer loans along with lower sponsorship and race winnings.  

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Operating expenses were $18,352,000 in the 2019 third quarter, compared to $19,464,000 in the 2018 third quarter. Professional fees were $2,277,000 in the 2019 third quarter compared to $3,951,000 in the 2018 third quarter, primarily reflecting legal costs for a variety of corporate and investment-related matters, salaries and benefits expense were $6,795,000 in the 2019 third quarter compared to $5,999,000 in the 2018 third quarter, reflective of lower base salary and bonus expenses in the prior year, and collection costs were $1,698,000 compared to $1,381,000, primarily reflective of continued efforts with the medallion loan portfolio. The remaining expenses during the 2019 third quarter included race team costs of $2,663,000, loan servicing costs of $1,364,000, primarily reflecting the cost of servicing the recreation and home improvement consumer loans, and occupancy and other operating expenses of $3,555,000, all relatively in line, or slightly improved, compared the 2018 third quarter.

Total income tax provision was $165,000 in the 2019 third quarter compared to a benefit of $117,000 in the 2018 third quarter. The current quarter included benefits of $876,000 attributable to net operating loss revaluations and $608,000 related to changes in the current effective income tax rate. See Note 9 for more information.

Loan collateral in process of foreclosure was $53,539,000 as of September 30, 2019, an increase of $1,171,000 from June 30, 2019, reflecting $6,434,000 of transfers from loans partially offset by sales, cash payments, and valuation adjustments incurred during the 2019 third quarter. At September 30, 2018, the balance was $59,761,000.

Goodwill and intangible assets were $203,701,000 as of September 30, 2019, down from $204,785,000 as of December 31, 2018. See Note 2 for further information regarding goodwill and intangible assets.

2019 Nine Months Ended Compared to 2018 Six Months Ended under Bank Holding Company Accounting

Net loss attributable to stockholders was $1,297,000 or $0.05 per diluted common share for the nine months ended September 30, 2019 compared to $19,344,000 or $0.80 per diluted common share for the six months ended September 30, 2018.

Total interest income for the nine months ended September 30, 2019 was $96,698,000, compared to $65,796,000 for the six months ended September 30, 2018. Interest income for the nine months ended September 30, 2019 reflected continued growth in the higher yielding consumer lending segments, offset by contraction in the lower yielding medallion lending segment and $2,887,000 of loan premium amortization compared to $1,780,000 in the prior year six months.  The yield on interest earning assets was 11.68% for the nine months ended September 30, 2019, an improvement from 10.91% for the six months ended September 30, 2018. Average interest earning assets were $1,106,489,000 for the nine months ended September 30, 2019, a decline from $1,202,546,000 during the six months ended September 30, 2018, mainly due to the deconsolidation of Trust III in the 2018 fourth quarter and the continued chargeoffs and paydowns of the medallion business partially offset by the growth in the consumer portfolios.

Loans before allowance for loan losses were $1,142,282,000 as of September 30, 2019 and were comprised of recreation ($706,393,000), home improvement ($230,726,000), medallion ($136,954,000) and commercial ($68,209,000) loans. The Company had an allowance for loan losses as of the end of the 2019 third quarter of $43,113,000, which was attributable to medallion (58%), recreation (37%), and home improvement (5%) loans. Loans increased from $1,017,882,000 at December 31, 2018 primarily due to $366,330,000 of originations, primarily in the recreation and home improvement segments, partially offset by principal repayments and charge-offs. As of September 30, 2018, the gross loans were $1,089,545,000 and were comprised of recreation ($575,875,000), home improvement ($169,642,000), medallion ($261,470,000) and commercial ($82,558,000) loans. The Company had an allowance for loan losses as of the end of the 2018 third quarter of $29,484,000, which was attributable to the medallion (87%), recreation (10%), and home improvement (3%) loan portfolios. The provision for loan losses was $36,851,000 for the nine months ended September 30, 2019 compared to $48,781,000 for the six months ended September 30, 2018. The improvement was reflective of a lower medallion loan portfolio along with minimal activity in the non-specific general reserve for the nine months ended September 30, 2019, whereas there had been the initial recording of the non-specific general reserve of $6,663,000 in the six months ended September 30, 2018. See Note 4 for additional information on loans and the allowance for loan losses.

Interest expense was $25,768,000 for the nine months ended September 30, 2019 compared to $16,812,000 for the six months ended September 30, 2018, and the cost of borrowed funds was 3.07% compared to 2.74%, mainly driven by the new borrowings issued during the current year and the change in the market. Average debt outstanding was $1,121,693,000 for the nine months ended September 30, 2019 compared to $1,222,877,000 for six months ended September 30, 2018. See page 47 for a table which shows average balances and cost of funds for our funding sources.

Net interest income was $70,930,000 for the nine months ended September 30, 2019, compared to $48,984,000 for the six months ended September 30, 2018 and the net interest margin was 8.57% compared to 8.17% reflecting the above.

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Noninterest income, which is comprised of sponsorship and race winnings, prepayment fees, servicing fee income, late charges, write-downs of loan collateral, impairment of equity investments and other miscellaneous income, was $8,874,000 for the nine months ended September 30, 2019 compared to $14,319,000 for the six months ended September 30, 2018. The nine months ended September 30, 2019 includes $16,008,000 of sponsorship and race winnings and the one-time gain of $4,145,000 on the settlement of debt which had been offset by the decline in the non-Metropolitan medallion value for both the loans in process of foreclosure and the owned Chicago medallions whereas in the six months ended September 30, 2018 there had been $10,599,000 of sponsorship and race winnings and a $5,172,000 gain on the sale of consumer loans partly offset by a lower decline in the medallion market value for the loans in process of foreclosure.  

Operating expenses were $51,238,000 for the nine months ended September 30, 2019 compared to $36,390,000 for the six months ended September 30, 2018. Salaries and benefits expense were $18,457,000 in the 2019 nine months compared to $11,638,000 in the 2018 six months, and collection costs were $4,589,000 compared to $2,218,000, primarily reflective of continued efforts with the medallion loan portfolio. The remaining expenses during the nine months ended September 30, 2019 included professional fees of $5,961,000, primarily reflecting legal costs for a variety of corporate and investment-related matters, race team costs of $7,211,000, loan servicing costs of $3,851,000, primarily reflecting the cost of servicing the recreation and home improvement consumer loans, and occupancy and other operating expenses of $11,169,000.

Total income tax benefit was $1,926,000 in the nine months ended September 30, 2019 compared to $4,138,000 in the six months ended September 30, 2018. The current nine months included benefits of $380,000 attributable to net operating loss revaluations, $916,000 related to changes in the effective income tax rate, and $600,000 due to changes in state income tax accruals recouped in connection with a settled state exam. See Note 9 for more information.

Loan collateral in process of foreclosure was $53,539,000 as of September 30, 2019, an increase of $4,044,000 from December 31, 2018, reflecting $25,884,000 of transfers from loans offset by sales, cash payments and valuation adjustments incurred during the nine months ended September 30, 2019. At September 30, 2018, the balance was $59,761,000.

Goodwill and intangible assets were $203,701,000 as of September 30, 2019, down from $204,785,000 as of December 31, 2018. See Note 2 for further information regarding goodwill and intangible assets.

2018 First Quarter under Investment Company Accounting

Net decrease in net assets resulting from operations was $14,874,000 or $0.62 per diluted common share in the 2018 first quarter primarily reflecting an increase in net realized/unrealized losses on the investment portfolio, increased operating expenses and higher income taxes. Net investment loss after income taxes was $3,230,000 or $0.13 per share in the 2018 first quarter.

Investment income was $4,033,000 in the 2018 first quarter and included $1,643,000 of interest reversals related to nonaccrual loans in 2018. The yield on the investment portfolio was 2.69% in the 2018 first quarter.

Interest expense was $3,551,000 in the 2018 first quarter. The increase in interest expense was primarily due to increased borrowing costs. The cost of borrowed funds was 4.44% in the 2018 first quarter reflecting the continuing increase in market interest rates. Average debt outstanding was $324,322,000 for the 2018 first quarter primarily reflecting decreased borrowings required to fund the contracting loan portfolio.

Net interest income was $482,000 and the net interest margin was 0.32% for the 2018 first quarter.

Noninterest income, which is comprised of prepayment fees, servicing fee income, late charges, and other miscellaneous income, was $60,000 in the 2018 first quarter primarily reflecting the reversal of a previously earned management fee due from a portfolio company in the 2017 first quarter.

Operating expenses were $4,108,000 in the 2018 first quarter. Salaries and benefits expense was $2,349,000 in the 2018 first quarter primarily due to executive and employee bonus accrual. Professional fees were $723,000 in the 2018 first quarter primarily reflecting higher legal expenses for a variety of corporate and investment-related matters. Occupancy and other operating expenses of $1,036,000 in the 2018 first quarter primarily reflecting higher road or miscellaneous taxes, collection costs related to the medallion loan portfolio and directors’ fees.

Total income tax benefit was $640,000 in the 2018 first quarter, and was comprised of three components: a $336,000 benefit related to the net investment loss, a $8,426,000 benefit related to realized losses, and a provision of $8,122,000 related to net unrealized gains on investments.

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Net change in unrealized appreciation (depreciation) on investments before income tax was appreciation of $22,797,000 in the 2018 first quarter. Net change in unrealized appreciation other than the portion related to Medallion Bank and the other controlled subsidiaries was depreciation of $6,318,000 in the 2018 first quarter, resulting in decreased depreciation of $2,205,000 and related almost entirely to the medallion portfolio. Unrealized appreciation (depreciation) arose when we made valuation adjustments to the investment portfolio. When investments were sold or written off, any resulting realized gain (loss) was grossed up to reflect previously recorded unrealized components. As a result, movement between periods can appear distorted. The 2018 first quarter activity resulted from net appreciation on Medallion Bank and other controlled subsidiaries of $29,115,000 and by reversals of unrealized depreciation on loans which were charged off of $34,747,000, offset by unrealized depreciation on loans and other investments of $40,067,000 mainly due to the continuing declining values of the medallions.

Our net realized losses on investments before taxes were $34,745,000 in the 2018 first quarter. The 2018 first quarter activity reflected the realized losses in the loan portfolio.

Our net realized/unrealized loss on investments before income taxes was $11,948,000 in the 2018 first quarter reflecting the above.

ASSET/LIABILITY MANAGEMENT

Interest Rate Sensitivity

We, like other financial institutions, are subject to interest rate risk to the extent that our interest-earning assets (consisting of medallion, commercial, and consumer loans, and investment securities) reprice on a different basis over time in comparison to our interest-bearing liabilities (consisting primarily of bank certificates of deposit, credit facilities and borrowings from banks and other lenders, and SBA debentures).

Having interest-bearing liabilities that mature or reprice more frequently on average than assets may be beneficial in times of declining interest rates, although such an asset/liability structure may result in declining net earnings during periods of rising interest rates. Abrupt increases in market rates of interest may have an adverse impact on our earnings until we are able to originate new loans at the higher prevailing interest rates. Conversely, having interest-earning assets that mature or reprice more frequently on average than liabilities may be beneficial in times of rising interest rates, although this asset/liability structure may result in declining net earnings during periods of falling interest rates. This mismatch between maturities and interest rate sensitivities of our interest-earning assets and interest-bearing liabilities results in interest rate risk.

The effect of changes in interest rates is mitigated by regular turnover of the portfolio. Based on past experience, we anticipate that approximately 40% of the taxicab medallion portfolio will mature or be prepaid each year. We believe that the average life of our loan portfolio varies to some extent as a function of changes in interest rates. Borrowers are more likely to exercise prepayment rights in a decreasing interest rate environment because the interest rate payable on the borrower’s loan is high relative to prevailing interest rates. Conversely, borrowers are less likely to prepay in a rising interest rate environment. However, borrowers may prepay for a variety of other reasons, such as to monetize increases in the underlying collateral values, particularly in the medallion loan portfolio.

In addition, we manage our exposure to increases in market rates of interest by incurring fixed-rate indebtedness, such as ten year subordinated SBA debentures, and by setting repricing intervals on certificates of deposit, for terms of up to five years. We had outstanding SBA debentures and borrowings of $74,093,000 with a weighted average interest rate of 3.41%, constituting 6% of our total indebtedness, $36,000,000 of private placement notes, with a weighted average interest rate of 8.25%, constituting 3% of total indebtedness, and retail notes of $33,625,000, with a weighted average interest rate of 9.00%, constituting 3% of total indebtedness as of September 30, 2019. Also, as of September 30, 2019, certain of the certificates of deposit were for terms of up to 60 months, further mitigating the immediate impact of changes in market interest rates.

A relative measure of interest rate risk can be derived from our interest rate sensitivity gap. The interest rate sensitivity gap represents the difference between interest-earning assets and interest-bearing liabilities, which mature and/or reprice within specified intervals of time. The gap is considered to be positive when repriceable assets exceed repriceable liabilities, and negative when repriceable liabilities exceed repriceable assets. A relative measure of interest rate sensitivity is provided by the cumulative difference between interest sensitive assets and interest sensitive liabilities for a given time interval expressed as a percentage of total assets.

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The following table presents our interest rate sensitivity gap at September 30, 2019. The principal amounts of interest earning assets are assigned to the time frames in which such principal amounts are contractually obligated to be repriced. We have not reflected an assumed annual prepayment rate for such assets in this table.

September 30, 2019 Cumulative Rate Gap(1)
(Dollars in thousands)	Less Than 1 Year			More Than 1 and Less Than 2 Years			More Than 2 and Less Than 3 Years			More Than 3 and Less Than 4 Years			More Than 4 and Less Than 5 Years			More Than 5 and Less Than 6 Years			Thereafter		Total
Earning assets
Floating-rate	$	33,405		$	—		$	—		$	—		$	—		$	—		$	—	$	33,405
Adjustable rate		17,490			7,975			15,410			14,480			452			758			1,158		57,723
Fixed-rate		53,902			52,094			38,857			62,970			67,468			56,317			774,836		1,106,444
Cash		21,724			—			—			—			—			—			—		21,724
Total earning assets	$	126,521		$	60,069		$	54,267		$	77,450		$	67,920		$	57,075		$	775,994	$	1,219,296
Interest bearing liabilities
Deposits	$	348,385		$	182,587		$	225,560		$	112,413		$	94,042		$	—		$	—	$	962,987
SBA debentures and borrowings		23,093			8,500			—			5,000			5,000			14,000			18,500		74,093
Notes payable to banks		12,168			22,294			—			—			1,190			—			—		35,652
Retail and privately placed notes		—			33,625			—			—			36,000			—			—		69,625
Preferred securities		33,000			—			—			—			—			—			—		33,000
Other borrowings		11,758			—			—			—			—			—			—		11,758
Total liabilities	$	428,404		$	247,006		$	225,560		$	117,413		$	136,232		$	14,000		$	18,500	$	1,187,115
Interest rate gap	$	(301,883	)	$	(186,937	)	$	(171,293	)	$	(39,963	)	$	(68,312	)	$	43,075		$	757,494	$	32,181
Cumulative interest rate gap(2)	$	(301,883	)	$	(488,820	)	$	(660,113	)	$	(700,076	)	$	(768,388	)	$	(725,313	)	$	32,181		—
December 31, 2018	$	(232,323	)	$	(409,272	)	$	(563,100	)	$	(638,264	)	$	(600,146	)	$	(554,335	)	$	59,833		—
December 31, 2017(3)	$	(172,208	)	$	(324,049	)	$	(361,494	)	$	(425,785	)	$	(411,672	)	$	(379,286	)	$	168,501		—

(1) The ratio of the cumulative one year gap to total interest rate sensitive assets was (25%) as of September 30, 2019.

(2) Adjusted for the medallion loan 40% prepayment assumption results in a cumulative one year negative interest rate gap and related ratio of ($266,036) or (22%) as of September 30, 2019.

(3) Represents the cumulative rate gap on a combined basis with Medallion Bank for the year noted.

Our interest rate sensitive assets were $1,219,296,000 and interest rate sensitive liabilities were $1,187,115,000 at September 30, 2019. The one-year cumulative interest rate gap was a negative $301,883,000 or 25% of interest rate sensitive assets. However, using our estimated 40% prepayment/refinancing rate for medallion loans to adjust the interest rate gap resulted in a negative gap of $266,036,000 or 22% at September 30, 2019. We seek to manage interest rate risk by originating adjustable-rate loans, by incurring fixed-rate indebtedness, by evaluating appropriate derivatives, pursuing securitization opportunities, and by other options consistent with managing interest rate risk.

Liquidity and Capital Resources

Our sources of liquidity are with a variety of local and regional banking institutions, unfunded commitments to sell debentures to the SBA, loan amortization and prepayments, private issuances of debt securities, participations or sales of loans to third parties, the disposition of other assets of the Company, and dividends from Medallion Capital and Medallion Bank, although we have not received any from Medallion Bank since 2016, and are subject to compliance with regulatory ratios. Additionally, we had $3,000,000 of unfunded commitments from the SBA as of September 30, 2019.

Additionally, Medallion Bank has access to independent sources of funds for our business originated there, primarily through brokered certificates of deposit. Medallion Bank has up to $45,000,000 available under Fed Funds lines with several commercial banks as of September 30, 2019, of which $4,000,000 had been drawn upon at September 30, 2019 and repaid in October 2019.

In March 2019, we completed a private placement to certain institutional investors of $30,000,000 aggregate principal amount of 8.25% unsecured notes due 2024, with interest payable semiannually. A follow-on offering of these notes in the 2019 third quarter raised an additional $6,000,000.

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The components of our debt were as follows at September 30, 2019. See Note 7 to the consolidated financial statements for details of the contractual terms of our borrowings.

(Dollars in thousands)	Balance		Percentage			Rate (1)
Deposits	$	962,987		81	%		2.37	%
SBA debentures and borrowings		74,093		6			3.41
Retail and privately placed notes		69,625		6			8.61
Notes payable to banks		35,652		3			4.25
Preferred securities		33,000		3			4.24
Other borrowings		11,758		1			2.09
Total outstanding debt	$	1,187,115		100	%		2.91	%

(1) Weighted average contractual rate as of September 30, 2019.

Our contractual obligations expire on or mature at various dates through September 2037. The following table shows our contractual obligations at September 30, 2019.

	Payments due by period
(Dollars in thousands)	Less than 1 year		1 – 2 years		2 – 3 years		3 – 4 years		4 – 5 years		More than 5 years		Total
Deposits	$	348,385	$	182,587	$	225,560	$	112,413	$	94,042	$	—	$	962,987
SBA debentures and borrowings		23,093		8,500		—		5,000		5,000		32,500		74,093
Retail and privately placed notes		—		33,625		—		—		36,000		—		69,625
Notes payable to banks		7,652		27,370		280		280		70		—		35,652
Preferred securities		—		—		—		—		—		33,000		33,000
Other borrowings		11,758		—		—		—		—		—		11,758
Operating lease obligations		2,391		2,315		2,257		2,175		1,872		4,688		15,698
Total	$	393,279	$	254,397	$	228,097	$	119,868	$	136,984	$	70,188	$	1,202,813

Most of our borrowing relationships have maturity dates during 2019 through 2021. We have been in active and ongoing discussions with each of these lenders and have extended each of the facilities as they matured. The lenders have worked with us to extend and change the terms of the borrowing agreements. We have arranged for changes to the terms of the notes and payment and borrowing base calculations which we anticipate will facilitate our operations for the foreseeable future.

On July 16, 2019, we paid $10,819,000 at maturity in satisfaction of all our outstanding obligations under one of our credit facilities. In connection with this payment, we obtained a waiver from one of our other lenders, with a term note of $3,096,000, of certain resulting repayment and other obligations, which waiver expires on December 1, 2019.

In addition, the illiquidity of portions of our loan portfolio and investments may adversely affect our ability to dispose of them at times when it may be advantageous for us to liquidate such portfolio or investments. In addition, if we were required to liquidate some or all of our portfolio, the proceeds of such liquidation may be significantly less than the current value of such investments. Because we borrow money to make loans and investments, our net operating income is dependent upon the difference between the rate at which we borrow funds and the rate at which we invest these funds. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our interest income. In periods of sharply rising interest rates, our cost of funds would increase, which would reduce our net interest income.

We use a combination of long-term and short-term borrowings and equity capital to finance our investing activities. Our long-term fixed-rate investments are financed primarily with short-term floating-rate debt, and to a lesser extent by term fixed-rate debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. We have analyzed the potential impact of changes in interest rates on net interest income. Assuming that the balance sheet were to remain constant and no actions were taken to alter the existing interest rate sensitivity a hypothetical immediate 1% increase in interest rates would result in an increase to net income as of September 30, 2019 by $767,000 on an annualized basis, and the impact of such an immediate increase of 1% over an one year period would have been ($1,106,000) at September 30, 2019. Although management believes that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size, and composition of the assets on the balance sheet, and other business developments that could affect net income from operations in a particular quarter or for the year taken as a whole. Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by these estimates.

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We continue to work with investment banking firms and other financial intermediaries to investigate the viability of a number of other financing options which include, among others, the sale or spinoff of certain assets or divisions, the development of a securitization conduit program, and other independent financing for certain subsidiaries or asset classes. These financing options would also provide additional sources of funds for both external expansion and continuation of internal growth.

The following table illustrates sources of available funds for us and each of our subsidiaries, and amounts outstanding under credit facilities and their respective end of period weighted average interest rates at September 30, 2019. See Note 7 to the consolidated financial statements for additional information about each credit facility.

(Dollars in thousands)	Medallion Financial Corp.				MB				MFC			MCI			FSVC			RPAC and Other			September 30, 2019			December 31, 2018
Cash	$	3,981		(1)	$	33,305			$	661		$	14,864		$	371		$	1,833		$	55,015		$	57,713
Brokered CDs & other funds    borrowed		—				962,987				—			—			—			—			962,987			848,040
Average interest rate		—				2.37	%			—			—			—			—			2.37	%		2.14	%
Maturity		—			10/19-9/24					—			—			—			—		10/19-9/24			1/19-07/23
Retail and privately placed notes		69,625				—				—			—			—			—			69,625			33,625
Average interest rate		8.61	%			—				—			—			—			—			8.61	%		9.00	%
Maturity	4/21-3/24					—				—			—			—			—		4/21-3/24			4/21
SBA debentures and borrowings		—				—				—			54,000			23,093			—			77,093			83,099
Amounts undisbursed		—				—				—			3,000			—			—			3,000			3,000
Amounts outstanding		—				—				—			51,000			23,093			—			74,093			80,099
Average interest rate		—				—				—			3.49	%		3.25	%		—			3.41	%		3.40	%
Maturity		—				—				—		3/21-3/29			2/1/2020				—		2/20-3/29			2/20-3/29
Bank loans		23,231				—				12,421			—			—			—			35,652			59,615
Average interest rate		4.63	%			—				3.55	%		—			—			—			4.25	%		4.55	%
Maturity	9/20-3/21					—			2/21/12/23				—			—			—		9/20-12/23			3/19-12/23
Preferred securities		33,000				—				—			—			—			—			33,000			33,000
Average interest rate		4.24	%			—				—			—			—			—			4.24	%		4.86	%
Maturity	9/37					—				—			—			—			—		9/37			9/37
Other borrowings		—				4,000				—			—			—			7,758			11,758			7,649
Average interest rate		—				2.25	%			—			—			—			2.00	%		2.09	%		2.00	%
Maturity		—			10/14/19			(2)		—			—			—		12/19-3/20			10/19-3/20			12/19-3/20
Total cash	$	3,981			$	33,305			$	661		$	14,864		$	371		$	1,833		$	55,015		$	57,713
Total debt outstanding	$	125,856			$	966,987			$	12,421		$	51,000		$	23,093		$	7,758		$	1,187,115		$	1,062,028

(1) Includes $2,970 of an interest reserve associated with the 2019 private placement, which can be used for no other purpose for three years.

(2) Federal funds had been paid off as of October 1, 2019.

Loan amortization, prepayments, and sales also provide a source of funding for us. Prepayments on loans are influenced significantly by general interest rates, medallion loan market values, economic conditions, and competition.

We also generate liquidity through deposits generated at Medallion Bank, borrowing arrangements with other banks, and through the issuance of SBA debentures, as well as from cash flow from operations. In addition, we may choose to participate a greater portion of our loan portfolio to third parties. We are actively seeking additional sources of liquidity; however, given current market conditions, we cannot assure you that we will be able to secure additional liquidity on terms favorable to us or at all. If that occurs, we may decline to underwrite lower yielding loans in order to conserve capital until credit conditions in the market become more favorable; or we may be required to dispose of assets when we would not otherwise do so, and at prices which may be below the net book value of such assets in order for us to repay indebtedness on a timely basis.

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. We do not believe this update will have a material impact on our financial condition.

In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. We do not believe this update will have a material impact on our financial condition.

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In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” 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 October 2019, the FASB voted to defer implementation of the standard for smaller reporting companies, such as us, for fiscal years beginning after December 15, 2022. We are assessing the impact the update will have on its financial statements, and expect the update to have an impact on our accounting for estimated credit losses on our loans.

Dividends

We have not paid dividends on our common stock since 2016 and do not currently anticipate paying dividends. We may, however, re-evaluate paying dividends in the future depending on market conditions.

Control Statutes

Because Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act and we are a “financial institution holding company” within the meaning of the Utah Financial Institutions Act, federal and Utah law and regulations prohibit any person or company from acquiring control of us and, indirectly, Medallion Bank, without, in most cases, prior written approval of the FDIC or the Commissioner of Utah Department of Financial Institutions, as applicable. Under the Change in Bank Control Act, control is conclusively presumed if, among other things, a person or company acquires 25% or more of any class of our voting stock. A rebuttable presumption of control arises if a person or company acquires 10% or more of any class of voting stock and is subject to a number of specified “control factors” as set forth in the applicable regulations. Although Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act, your investment in Medallion Financial Corp. is not insured or guaranteed by the FDIC, or any other agency, and is subject to loss. Under the Utah Financial Institutions Act, control is defined as the power to vote 20% or more of any class of our voting securities by an individual or to vote more than 10% of any class of our voting securities by a person other than an individual. Investors are responsible for ensuring that they do not, directly or indirectly, acquire shares of our common stock in excess of the amount which can be acquired without regulatory approval.

In addition to the regulations detailed above, our operations are subject to supervision and regulation by other federal, state, and local laws and regulations. Additionally, our operations may be subject to various laws and judicial and administrative decisions. This oversight may serve to:

• regulate credit granting activities, including establishing licensing requirements, if any, in various jurisdictions;

• establish maximum interest rates, finance charges and other charges;

• require disclosures to customers;

• govern secured transactions;

• set collection, foreclosure, repossession, and claims handling procedures and other trade practices;

• prohibit discrimination in the extension of credit and administration of loans; and

• regulate the use and reporting of information related to a borrower’s credit experience and other data collection.

Changes to laws of states in which we do business could affect the operating environment in substantial and unpredictable ways. We cannot predict whether such changes will occur or, if they occur, the ultimate effect they would have upon our financial condition or results of operations.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in disclosure regarding quantitative and qualitative disclosures about market risk since we filed our Annual Report on Form 10-K for the year ended December 31, 2018.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a—15(e) and 15d – 15(e) under the Securities Exchange Act of 1934, and have concluded that they are effective as of September 30, 2019 to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its Chief Executive Office and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Controls

There were no changes in our internal controls over financial reporting during the quarter ended September 30, 2019 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are currently involved in various legal proceedings incident to the ordinary course of our business, including collection matters with respect to certain loans. We intend to vigorously defend any outstanding claims and pursue our legal rights. In the opinion of our management and based upon 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 effect on our results of operations or financial condition.

ITEM 1A. RISK FACTORS

There have been no material changes in our risk factors from those disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 13, 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We did not repurchase any of our shares during the three months ended September 30, 2019. Accordingly, under our Stock Repurchase Program previously authorized by our Board of Directors, up to $22,874,509 of shares remain authorized for repurchase under the program.

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ITEM 6. EXHIBITS

EXHIBITS

Number	Description
10.1	Ninth Amendment of Lease Agreement, dated August 19, 2019, between Investment Property Group, LLC and Medallion Bank. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on August 21, 2019 (File No. 001-37747) and incorporated by reference herein.
31.1	Certification of Alvin Murstein pursuant to Rule 13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Larry D. Hall pursuant to Rule 13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Alvin Murstein pursuant to 18 USC. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Larry D. Hall pursuant to 18 USC. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MEDALLION FINANCIAL CORP.
Date:	November 1, 2019
By:	/s/ Alvin Murstein
	Alvin Murstein
	Chairman and Chief Executive Officer
By:	/s/ Larry D. Hall
	Larry D. Hall
	Senior Vice President and
	Chief Financial Officer
	Signing on behalf of the registrant as principal financial and accounting officer.

Page 77 of 77

EX-31.1

Exhibit 31.1

CERTIFICATIONS

Certification of Alvin Murstein

I, Alvin Murstein, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Medallion Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2019
By:	/s/ Alvin Murstein
Alvin Murstein
Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Larry D. Hall

I, Larry D. Hall, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Medallion Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2019
By:	/s/ Larry D. Hall
Larry D. Hall
Senior Vice President and
Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 USC SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Medallion Financial Corp. (the “Company”) for the quarter ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Alvin Murstein
Chairman and
Chief Executive Officer

Date:  November 1, 2019

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 USC SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Medallion Financial Corp. (the “Company”) for the quarter ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Larry D. Hall
Senior Vice President and
Chief Financial Officer

Date:  November 1, 2019

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Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

(9) 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 September 30, 2019 and December 31, 2018.

(Dollars in thousands)	September 30, 2019			December 31, 2018
Goodwill and other intangibles	$	(44,315	)	$	(45,272	)
Provision for loan losses		19,529			25,790
Net operating loss carryforwards(1)		21,166			11,132
Accrued expenses, compensation, and other assets		1,932			1,844
Unrealized gains on other investments		(4,737	)		(2,024	)
Total deferred tax liability		(6,425	)		(8,530	)
Valuation allowance		(462	)		(255	)
Deferred tax liability, net		(6,887	)		(8,785	)
Taxes receivable		1,290			1,812
Net deferred and other tax liabilities	$	(5,597	)	$	(6,973	)

(1) As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $20,704 as of September 30, 2019.

The components of our tax (provision) benefit for the three and nine months ended September 30, 2019 and 2018 were as follows.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Current
Federal	$	(230	)	$	(9,353	)	$	(1,099	)	$	(3,040	)
State		(661	)		(2,318	)		(1,620	)		(1,078	)
Deferred
Federal		(887	)		9,100			1,311			8,128
State		1,613			2,688			3,334			768
Net (provision) benefit for income taxes	$	(165	)	$	117		$	1,926		$	4,778

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported in net loss/net decrease in net assets for the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Statutory Federal income tax (provision) benefit at 21%	$	(1,616	)	$	877		$	(332	)	$	8,106
State and local income taxes, net of federal income    tax benefit		(547	)		(107	)		(113	)		994
Revaluation of net operating losses		876			—			380			—
Appreciation of Medallion Bank		—			—			—			(1,974	)
Utilization of carry forwards		—			(247	)		—			(910	)
Change in state income tax accruals		—			—			600			—
Change in effective state income tax rate		608			—			916			(1,358	)
Income attributable to non-controlling interest		451			—			451			—
Non deductible expenses		—			(215	)		—			(403	)
Other		63			(191	)		24			323
Total income tax (provision) benefit	$	(165	)	$	117		$	1,926		$	4,778

On December 22, 2017, the US government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible pursuant to ASC 740. The Company considers the reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company’s evaluation of the realizability of deferred tax assets must consider both positive and negative evidence. The weight given to the potential effects of positive and negative evidence is based on the extent to which it can be objectively verified. Based upon these considerations, the Company determined the necessary valuation allowance as of September 30, 2019.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah tax filings of the Company for the tax years 2016 through the present are the more significant filings that are open for examination.

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Consolidated Statement of Income - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest and fees on loans		$ 34,081,000	$ 32,692,000	$ 94,833,000	$ 64,718,000	[1]
Interest and dividends on investment securities		521,000	430,000	1,756,000	1,032,000	[1]
Medallion lease income		38,000	30,000	109,000	100,000	[1]
Interest income on investments	[1]				3,287,000
Interest income		34,640,000	33,152,000	96,698,000
Total interest income/total investment income	[2]	34,640,000	33,152,000	96,698,000	69,829,000	[1]
Interest on deposits		6,003,000	5,064,000	16,409,000	9,264,000	[1]
Interest on short-term borrowings		730,000	1,698,000	2,616,000	3,557,000	[1]
Interest on long-term debt		2,492,000	2,125,000	6,743,000	3,991,000	[1]
Interest expense	[1]				3,551,000
Total interest expense	[3]	9,225,000	8,887,000	25,768,000	20,363,000	[1]
Net interest income/net investment income		25,415,000	24,265,000	70,930,000	49,466,000	[1]
Provision for loan losses		8,337,000	18,205,000	36,851,000	48,781,000	[1]
Net interest income after provision for loan losses		17,078,000	6,060,000	34,079,000	685,000	[1]
Other income (loss)
Sponsorship and race winnings		7,940,000	5,371,000	16,008,000	10,599,000	[1]
Change in collateral value on in process of foreclosure		(113,000)	(1,265,000)	(4,204,000)	(1,361,000)	[1]
Gain on the extinguishment of debt				4,145,000
Gain on sale of loans			5,488,000		5,488,000	[1]
Impairment of equity investments			(388,000)		(862,000)	[1]
Other income		1,047,000	235,000	1,471,000	515,000	[1]
Total other income, net		8,874,000	9,441,000	17,420,000	14,379,000	[1]
Other expenses
Salaries and employee benefits		6,795,000	5,999,000	18,457,000	13,987,000	[1]
Race team related expenses		2,663,000	2,876,000	7,211,000	5,416,000	[1]
Professional fees		2,277,000	3,951,000	5,961,000	6,920,000	[1]
Collection costs		1,698,000	1,381,000	4,589,000	2,218,000	[1]
Loan servicing fees		1,364,000	1,185,000	3,851,000	2,313,000	[1]
Rent expense		592,000	615,000	1,769,000	1,449,000	[1]
Regulatory fees		252,000	563,000	1,147,000	1,145,000	[1]
Amortization of intangible assets		361,000	361,000	1,084,000	722,000	[1]
Travel, meals, and entertainment		300,000	313,000	770,000	1,122,000	[1]
Other expenses	[4]	2,050,000	2,220,000	6,399,000	5,206,000	[1]
Total other expenses		18,352,000	19,464,000	51,238,000	40,498,000	[1]
Income (loss) before income taxes/net investment loss before taxes	[5]	7,600,000	(3,963,000)	261,000	(25,434,000)	[1]
Income tax (provision) benefit		(165,000)	117,000	1,926,000	4,474,000	[1]
Net income (loss) after taxes/net investment loss after taxes		7,435,000	(3,846,000)	2,187,000	(20,960,000)	[1]
Net realized losses on investments	[1],[6]				(34,745,000)
Income tax benefit	[1]				8,426,000
Total net realized losses on investments	[1]				(26,319,000)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries	[1]				29,115,000
Net change in unrealized depreciation on investments other than securities	[1]				(1,915,000)
Net change in unrealized depreciation on investments	[1]				(4,403,000)
Income tax provision	[1]				(8,122,000)
Net unrealized appreciation on investments	[1]				14,675,000
Net realized/unrealized losses on investments	[1]				(11,644,000)
Net income (loss) after taxes/net decrease on net assets resulting from operations		7,435,000	(3,846,000)	2,187,000	(32,604,000)	[1]
Less: income attributable to the noncontrolling interest		2,460,000	851,000	3,484,000	1,614,000	[1]
Total net income (loss) attributable to Medallion Financial Corp./net decrease on net assets resulting from operations		$ 4,975,000	$ (4,697,000)	$ (1,297,000)	$ (34,218,000)	[1]
Basic net income (loss) per share		$ 0.20	$ (0.19)	$ (0.05)	$ (1.41)	[1]
Diluted net income (loss) per share		$ 0.20	$ (0.19)	$ (0.05)	$ (1.41)	[1]
Weighted average common shares outstanding
Basic		24,361,680	24,235,242	24,336,677	24,207,273	[1]
Diluted		24,607,167	24,235,242	24,336,677	24,207,273	[1]
Controlled Subsidiary Investment [Member]
Dividend income from controlled subsidiaries	[1]				$ 28,000
Interest income	[1]				10,000
Affiliate Investment [Member]
Interest income	[1]				$ 654,000

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Included in interest and investment income is $212 and $637 of paid in kind interest for the three and nine months ended September 30, 2019 and $450 and $1,428 for the comparable 2018 periods.

[3] Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods.

[4] See Note 12 for the components of other operating expenses as of March 31, 2018.

[5] Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information

[6] There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018.

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

9 Months Ended

Sep. 30, 2019

Schedule Of Investments [Abstract]

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

(5) UNREALIZED APPRECIATION (DEPRECIATION) AND REALIZED GAINS (LOSSES) ON INVESTMENTS (Investment Company Accounting)

The following table sets forth the pre-tax change in the Company’s unrealized appreciation (depreciation) on investments for the three months ended March 31, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investments Other Than Securities			Total
Balance December 31, 2017	$	(20,338	)	$	(513	)	$	158,920	$	3,121		$	(1,490	)	$	139,700
Net change in unrealized
Appreciation on investments		—			—			38,795		(998	)		—			37,797
Depreciation on investments		(38,170	)		18			—		—			(1,915	)		(40,067	)
Reversal of unrealized appreciation    (depreciation) related to realized
Gains on investments		—			—			—		—			—			—
Losses on investments		34,747			—			—		—			—			34,747
Balance March 31, 2018	$	(23,761	)	$	(495	)	$	197,715	$	2,123		$	(3,405	)	$	172,177

The table below summarizes pre-tax components of unrealized and realized gains and losses in the investment portfolio for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Net change in unrealized appreciation (depreciation) on    investments
Unrealized appreciation	$	(998	)
Unrealized depreciation		(38,152	)
Net unrealized appreciation on investments in Medallion    Bank and other controlled subsidiaries		29,115
Realized gains		—
Realized losses		34,747
Net unrealized losses on investments other than securities and    other assets		(1,915	)
Total	$	22,797
Net realized gains (losses) on investments
Realized gains	$	—
Realized losses		(34,747	)
Direct recoveries		2
Total	$	(34,745	)

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Consolidated Statements of Cash Flows - USD ($)		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) after taxes/net decrease on net assets resulting from operations		$ 2,187,000	$ (32,604,000)	[1]
Adjustments to reconcile net loss/net decrease in net assets resulting from operations to net cash provided by operating activities:
Provision for loan losses		36,851,000	48,781,000	[1]
Paid-in-kind interest		(637,000)	(1,428,000)	[1]
Depreciation and amortization		6,014,000	2,995,000	[1]
(Decrease) increase in deferred and other tax liabilities		(1,375,000)	8,676,000	[1]
Amortization of origination fees, net		3,753,000	2,192,000	[1]
Proceeds from the sale and principal payments on loan collateral in process of foreclosure		12,714,000
Net change in loan collateral in process of foreclosure		9,126,000	3,258,000	[1]
Net realized losses on sale of investments		(1,810,000)	(4,726,000)	[1]
Net change in unrealized depreciation on investments		1,299,000	5,380,000	[1]
Stock-based compensation expense		853,000	446,000	[1]
Gain on extinguishment of debt		(4,145,000)
(Increase) decrease in accrued interest receivable		(627,000)	486,000	[1]
Increase in other assets		(4,890,000)	(7,173,000)	[1]
Decrease in accounts payable and accrued expenses		(1,763,000)	(675,000)	[1]
Increase (decrease) in accrued interest payable		(341,000)	41,000	[1]
Loans originated	[1]		(8,193,000)
Proceeds from principal receipts, sales, and maturities of loans	[1]		13,279,000
Capital returned by Medallion Bank and other controlled subsidiaries, net	[1]		93,000
Net change in unrealized depreciation on investment other than securities	[1]		1,915,000
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries	[1]		(29,115,000)
Net realized losses on investments	[1],[2]		34,745,000
Increase in other liabilities	[1]		3,159,000
Net cash provided by operating activities		57,209,000	41,532,000	[1]
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(374,642,000)	(256,933,000)	[1]
Proceeds from principal receipts, sales, and maturities of loans		188,226,000	240,915,000	[1]
Purchases of investments		(6,849,000)	(8,304,000)	[1]
Proceeds from principal receipts, sales, and maturities of investments		5,902,000	2,475,000	[1]
Net cash used for investing activities		(187,363,000)	(21,847,000)	[1]
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed		450,192,000	336,108,000	[1]
Repayments of time deposits and funds borrowed		(324,960,000)	(253,497,000)	[1]
Purchase of federal funds		4,000,000	8,000,000	[1]
Repayments of federal funds	[1]		(8,000,000)
Distributions to noncontrolling interests		(1,776,000)	(1,184,000)	[1]
Payments of declared distributions	[1]		(65,000)
Net cash provided by financing activities		127,456,000	81,362,000	[1]
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(2,698,000)	101,047,000	[1]
Cash and cash equivalents and restricted cash, beginning of period	[3]	57,713,000	42,513,000	[1]
Cash and cash equivalents and restricted cash, end of period	[4]	55,015,000	143,560,000	[1]
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest		24,252,000	17,381,000	[1]
Cash paid during the period for income taxes		135,000	52,000	[1]
Deposit	[5]	21,724,000
NON-CASH INVESTING
Loans transferred to loan collateral in process of foreclosure		$ 25,884,000	19,472,000	[1]
Previously Unconsolidated Subsidiaries [Member]
SUPPLEMENTAL INFORMATION
Cash, cash equivalents and federal funds sold			29,923,000
Medallion Bank [Member]
SUPPLEMENTAL INFORMATION
Deposit			$ 100,000

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018.

[3] The beginning balance for the nine months ended September 30, 2018 includes $29,923 of cash, cash equivalents and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank.

[4] Includes federal funds sold.

[5] Includes restricted cash of $2,970 as of September 30, 2019.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of Intangible Assets

The table below shows the details of the intangible assets as of the periods presented.

(Dollars in thousands)	September 30, 2019		December 31, 2018
Brand-related intellectual property	$	20,350	$	21,176
Home improvement contractor relationships		6,383		6,641
Race organization		26,165		26,165
Total intangible assets	$	52,898	$	53,982

Summary of the Calculation of Basic and Diluted EPS

The table below shows the calculation of basic and diluted EPS.

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)	2019		2018			2019			2018
Net income (loss)/net decrease in net assets resulting from operations    available to common stockholders	$	4,975	$	(4,697	)	$	(1,297	)	$	(34,218	)
Weighted average common shares outstanding applicable to    basic EPS		24,361,680		24,235,242			24,336,677			24,207,273
Effect of dilutive stock options		16,543		—			—			—
Effect of restricted stock grants		228,944		—			—			—
Adjusted weighted average common shares outstanding    applicable to diluted EPS		24,607,167		24,235,242			24,336,677			24,207,273
Basic income (loss) per share	$	0.20	$	(0.19	)	$	(0.05	)	$	(1.41	)
Diluted income (loss) per share		0.20		(0.19	)		(0.05	)		(1.41	)

Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios

The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

	Regulatory
(Dollars in thousands)	Minimum			Well- Capitalized			September 30, 2019			December 31, 2018
Common equity Tier 1 capital		—			—		$	153,580		$	141,608
Tier 1 capital		—			—			179,883			167,911
Total capital		—			—			194,436			180,917
Average assets		—			—			1,130,642			1,059,461
Risk-weighted assets		—			—			1,120,179			993,374
Leverage ratio(1)		4.0	%		5.0	%		15.9	%		15.8	%
Common equity Tier 1 capital ratio(2)		7.0			6.5			13.7			14.3
Tier 1 capital ratio(3)		8.5			8.0			16.1			16.9
Total capital ratio(3)		10.5			10.0			17.4			18.2

(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.

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Investments in Medallion Bank and Other Controlled Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries under Investment Company Accounting

The following table presents information derived from the Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Statement of comprehensive income
Investment income	$	26,880
Interest expense		3,615
Net interest income		23,265
Noninterest income		19
Operating expenses		7,158
Net investment income before income taxes		16,126
Income tax benefit		3,321
Net investment income after income taxes		19,447
Net realized/unrealized losses of Medallion Bank		(28,539	)
Net decrease in net assets resulting from operations of    Medallion Bank		(9,092	)
Unrealized appreciation on Medallion Bank(1)		39,092
Net realized/unrealized losses on controlled subsidiaries    other than Medallion Bank		(885	)
Net increase in net assets resulting from operations of    Medallion Bank and other controlled subsidiaries	$	29,115

(1) Unrealized depreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of the Bank.

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Stock Options and Restricted Stock (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Assumption Categories Used to Determine Value of Option Grants

The following assumption categories are used to determine the value of any option grants.

	Nine Months Ended September 30,
	2019			2018
Risk free interest rate		2.39	%		2.82	%
Expected dividend yield		0.79			4.86
Expected life of option in years(1)		6.25			6.00
Expected volatility(2)		48.45			30.00

(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 Programs

The following table presents the activity for the stock option programs for the 2019 quarters and the 2018 full year.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		320,626		$	2.14-13.84		$	8.78
Granted		39,000			5.27-5.58			5.46
Cancelled		(214,960	)		9.22-9.24			9.22
Exercised(1)		—				—		—
Outstanding at December 31, 2018		144,666			2.06-13.84			7.23
Granted		374,377			5.21-6.55			6.48
Cancelled		(18,000	)		7.49-9.38			8.44
Exercised(1)		—				—		—
Outstanding at March 31, 2019		501,043			2.14-13.84			6.63
Granted		1,104				6.55		6.55
Cancelled		(3,433	)		6.55-7.49			7.10
Exercised(1)		—				—		—
Outstanding at June 30, 2019		498,714			2.14-13.84			6.62
Granted		—				—		—
Cancelled		(993	)			6.55		6.55
Exercised(1)		—				—		—
Outstanding at September 30, 2019(2)		497,721		$	2.14-13.84		$	6.62
Options exercisable at September 30, 2019(2)		81,667		$	2.14-13.84		$	8.35

(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 $0 for each of the 2019 and 2018 three and nine months ended September 30.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019.

Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the 2019 quarters and the 2018 full year.

	Number of Shares				Grant Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		408,582		$	2.06-10.38		$	3.45
Granted		101,010			3.93-5.27			4.41
Cancelled		(9,737	)		3.93-9.08			4.66
Vested(1)		(308,940	)		2.06-10.38			3.35
Outstanding at December 31, 2018		190,915			2.14-5.27			4.06
Granted		163,098				6.55		6.55
Cancelled		(1,699	)		3.93-3.95			3.94
Vested(1)		(101,832	)		3.93-4.39			4.07
Outstanding at March 31, 2019		250,482			2.14-6.55			5.68
Granted		4,751			6.55-7.03			6.98
Cancelled		(949	)		3.95-6.55			6.40
Vested(1)		(16,406	)		2.06-7.03			3.35
Outstanding at June 30, 2019		237,878			3.95-6.55			5.86
Granted		10,417				4.80		4.80
Cancelled		(679	)		3.95-6.55			5.90
Vested(1)		—				—		—
Outstanding at September 30, 2019(2)		247,616		$	3.95-6.55		$	5.82

(1) The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods.

(2) The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019.

Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the 2019 quarters.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2018		62,777		$	2.14-7.10		$	4.59
Granted		374,377			5.21-6.55			6.48
Cancelled		—				—		—
Vested		—				—		—
Outstanding at March 31, 2019		437,154			2.14-7.10			6.21
Granted		1,104				6.55		6.55
Cancelled		(1,433	)			6.55		6.55
Vested		(16,000	)		2.22-7.10			5.12
Outstanding at June 30, 2019		420,825			2.14-6.55			6.25
Granted		—				—		—
Cancelled		(993	)			6.55		6.55
Vested		(3,778	)			2.61		2.61
Outstanding at September 30, 2019		416,054		$	2.14-6.55		$	6.28

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Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,142,282	$ 1,017,882
Percentage of Non-performing to Total	2.37%	3.43%
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,115,204	$ 983,005
Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	27,078	34,877
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 706,393	$ 587,038
Percentage of Non-performing to Total	0.95%	0.99%
Recreation [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 699,685	$ 581,250
Recreation [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	6,708	5,788
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 230,726	$ 183,155
Percentage of Non-performing to Total	0.10%	0.07%
Home Improvement [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 230,487	$ 183,018
Home Improvement [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	239	137
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 68,209	$ 64,083
Percentage of Non-performing to Total	17.64%	5.98%
Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 56,178	$ 60,249
Commercial [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	12,031	3,834
Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 136,954	$ 183,606
Percentage of Non-performing to Total	5.91%	13.68%
Medallion [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 128,854	$ 158,488
Medallion [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 8,100	$ 25,118

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Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended	9 Months Ended
		Sep. 30, 2019		Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019		Sep. 30, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance		$ 40,670		$ 21,425		$ 36,395
Total charge-offs		(9,209)		(11,941)	$ (23,428)	(39,248)
Total recoveries		3,315		1,795	4,131	9,115
Net charge-offs	[1]	(5,894)		(10,146)	(19,297)	(30,133)
Provision for loan losses		8,337		18,205	48,781	36,851		$ 48,781	[2]
Allowance for loan losses - ending balance		43,113	[3]	29,484	29,484	43,113	[3]	$ 29,484
Recreation [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance						6,856
Total charge-offs		(5,444)		(4,825)	(9,471)	(16,366)
Total recoveries		1,955		1,318	3,217	5,513
Allowance for loan losses - ending balance		15,927				15,927
Home Improvement [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance						1,796
Total charge-offs		(568)		(659)	(1,220)	(1,655)
Total recoveries		517		367	606	1,360
Allowance for loan losses - ending balance		2,235				2,235
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total charge-offs		(819)				(819)
Total recoveries					4
Medallion [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance						27,743
Total charge-offs		(2,378)		(6,457)	(12,737)	(20,408)
Total recoveries		843		$ 110	$ 304	2,242
Allowance for loan losses - ending balance		$ 24,951				$ 24,951

[1] As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company.

[2] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[3] Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

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Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available-for-sale Securities, Debt Maturities [Abstract]
Amortized Cost, due in one year or less	$ 35
Amortized Cost, due after one year through five years	12,416
Amortized Cost, due after five years through ten years	10,267
Amortized Cost, due after ten years	23,992
Amortized Cost	46,710	$ 46,423
Market Value, due in one year or less	35
Market Value, due after one year through five years	12,497
Market Value, due after five years through ten years	10,417
Market Value, due after ten years	24,473
Market Value, total	$ 47,422

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Income Taxes - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2017
Income Tax Disclosure [Abstract]
U.S. federal statutory rate	21.00%	35.00%

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Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Notes Payable [Line Items]
Average Interest Rate	2.91%	[1]
Notes Payable to Banks [Member]
Notes Payable [Line Items]
Note Amounts	$ 43,080
Balance outstanding	$ 35,652
Average Interest Rate	4.25%	[1]
Notes Payable to Banks [Member] | Medallion Financial Corp [Member]
Notes Payable [Line Items]
Note Dates	Apr. 30, 2011
Note Dates	Aug. 31, 2014
Maturity Dates	Sep. 30, 2020
Maturity Dates	Mar. 31, 2021
Type	Term loans and demand notes secured by pledged loans	[2]
Note Amounts	$ 23,231	[2]
Balance outstanding	$ 23,231
Payment	Interest only	[3]
Average Interest Rate	4.63%
Notes Payable to Banks [Member] | Medallion Chicago [Member]
Notes Payable [Line Items]
Note Dates	Nov. 30, 2011
Note Dates	Dec. 31, 2011
Maturity Dates	Feb. 28, 2021
Type	Term loans secured by owned Chicago medallions	[4]
Note Amounts	$ 18,449
Balance outstanding	$ 11,231
Payment	$134 of principal & interest paid monthly
Average Interest Rate	3.50%
Notes Payable to Banks [Member] | Medallion Funding [Member]
Notes Payable [Line Items]
Note Dates	Nov. 30, 2018
Maturity Dates	Dec. 31, 2023
Note Amounts	$ 1,400
Balance outstanding	$ 1,190
Payment	$70 principal & interest paid quarterly
Average Interest Rate	4.00%

[1] Weighted average contractual rate as of September 30, 2019.

[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 from $12 to $81.

[4] Guaranteed by the Company.

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Leases - Schedule of Maturities of the Lease Liabilities (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
Remainder of 2019	$ 600
2020	2,397
2021	2,295
2022	2,228
2023	2,136
Thereafter	6,042
Total lease payments	15,698
Less imputed interest	1,788
Total operating lease liabilities	$ 13,910

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Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Aggregate intrinsic value for option exercised	$ 0	$ 0	$ 0	$ 0
Aggregate intrinsic value of option outstanding	180,000		180,000
Aggregate intrinsic value of option exercisable	$ 78,000		$ 78,000
Remaining contractual life of option outstanding			8 years 9 months 21 days
Remaining contractual life of option exercisable			5 years 11 months 12 days

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Other Operating Expenses (Tables)

9 Months Ended

Sep. 30, 2019

Other Income And Expenses [Abstract]

Summary of Major Components of Other Expenses

The major components of other operating expenses were as follows:

(Dollars in thousands)	For the Three Months Ended March 31, 2018
Directors’ fees	$	89
Miscellaneous taxes		120
Computer expenses		74
Depreciation and amortization		23
Other expenses		161
Total other operating expenses	$	467

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Fair Value of Assets and liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,880	$	9,880
Available for sale investment securities(1)		—		47,422		—		47,422
Total	$	—	$	47,422	$	9,880	$	57,302

(1) Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2019 related to these assets.

December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,197	$	9,197
Available for sale investment securities(1)		—		45,324		—		45,324
Total	$	—	$	45,324	$	9,197	$	54,521

(1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Equity Investments
June 30, 2019	$	9,797
Gains included in earnings		414
Purchases, investments, and issuances		1,077
Sales, maturities, settlements, and distributions		(1,408	)
September 30, 2019	$	9,880
Amounts related to held assets(1)	$	(998	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

(Dollars in thousands)	Equity Investments
December 31, 2018	$	9,197
Gains included in earnings		510
Purchases, investments, and issuances		2,727
Sales, maturities, settlements, and distributions		(2,554	)
September 30, 2019	$	9,880
Amounts related to held assets(1)	$	(1,300	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

(Dollars in thousands)	Equity Investments
June 30, 2018	$	10,773
Losses included in earnings		(400	)
Purchases, investments, and issuances		631
Sales, maturities, settlements, and distributions		(252	)
September 30, 2018	$	10,752
Amounts related to held assets(1)	$	(400	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

(Dollars in thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(774	)
Purchases, investments, and issuances		1,160
Sales, maturities, settlements, and distributions		(469	)
Transfers in(1)		1,377
September 30, 2018	$	10,752
Amounts related to held assets(2)	$	(774	)

(1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Gains (losses) included in earnings		(38,190	)		(8	)		29,143			(993	)		(1,915	)		—
Purchases, investments, and issuances		7			7,252			462			935			—			—
Sales, maturities, settlements, and    distributions		(8,941	)		(3,812	)		(583	)		(5	)		—			—
March 31, 2018	$	161,155		$	93,620		$	331,169		$	9,458		$	5,535		$	339
Amounts related to held assets(1)	$	(38,190	)	$	(10	)	$	29,143		$	(993	)	$	(1,915	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period, which relate to assets held as of March 31, 2018.

Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2019 and December 31, 2018 under Bank Holding Company Accounting.

September 30, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	27,078	$	27,078
Loan collateral in process of foreclosure		—		—		53,539		53,539
Total	$	—	$	—	$	80,617	$	80,617

December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,877	$	34,877
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	84,372	$	84,372

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

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of September 30, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting.

(Dollars in thousands)		Fair Value at 9/30/19	Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	7,038	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
		1,387	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Precedent arm’s length offer	Business enterprise value	$6,014 – $7,214
				Business enterprise value/revenue multiples	0.96x – 4.44x
				Discount for lack of marketability	25%
		1,455	Precedent market transaction	Offering price	$8.73/share

(Dollars in thousands)	Fair Value at 12/31/18		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	5,683	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
	1,850		Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Precedent arm’s length offer	Business enterprise value	$6,014 – $7,214
				Business enterprise value/revenue multiples	0.96x – 4.54x
	1,455		Precedent market transaction	Offering price	$8.73/share
	209		Investee book value	Valuation indicated by investee filings	N/A

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Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Net income (loss)/net decrease in net assets resulting from operations available to common stockholders	$ 4,975	$ (4,697)	$ (1,297)	$ (34,218)
Weighted average common shares outstanding applicable to basic EPS	24,361,680	24,235,242	24,336,677	24,207,273	[1]
Effect of dilutive stock options	16,543
Effect of restricted stock grants	228,944
Adjusted weighted average common shares outstanding applicable to diluted EPS	24,607,167	24,235,242	24,336,677	24,207,273	[1]
Basic income (loss) per share	$ 0.20	$ (0.19)	$ (0.05)	$ (1.41)	[1]
Diluted income (loss) per share	$ 0.20	$ (0.19)	$ (0.05)	$ (1.41)	[1]

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Related Party Transaction - Summary of Net Revenue Received (Detail) - Medallion Bank [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Schedule of Other Related Party Transactions [Line Items]
Reimbursement of operating expenses	$ 250
Loan origination and servicing fees	6
Total other income	$ 256

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio (Detail) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Mar. 31, 2018	Sep. 30, 2018
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation		$ 37,797
Unrealized depreciation		40,067
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries	[1]		$ 29,115
Net realized gains (losses) on investments
Total	[1],[2]		$ (34,745)
Investment Company Accounting [Member]
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation		(998)
Unrealized depreciation		(38,152)
Realized gains		0
Realized losses		34,747
Net unrealized losses on investments other than securities and other assets		(1,915)
Total		22,797
Net realized gains (losses) on investments
Realized gains		0
Realized losses		(34,747)
Direct recoveries		2
Total		(34,745)
Investment Company Accounting [Member] | Medallion Financing Trust I [Member]
Net change in unrealized appreciation (depreciation) on investments
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		$ 29,115

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018.

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Loans and Allowance for Loan Losses - Additional Information (Detail)	3 Months Ended			9 Months Ended			12 Months Ended
	Sep. 30, 2019 USD ($) TDR		Sep. 30, 2018 USD ($) TDR	Sep. 30, 2019 USD ($) TDR		Sep. 30, 2018 USD ($) TDR	Sep. 30, 2019 USD ($) TDR		Sep. 30, 2018 USD ($) TDR	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Weighted average loan-to-value ratio	202.00%		224.00%	202.00%		224.00%	202.00%		224.00%		220.00%
Allowance for loan loss	$ 43,113,000	[1]	$ 29,484,000	$ 43,113,000	[1]	$ 29,484,000	$ 43,113,000	[1]	$ 29,484,000	$ 40,670,000	$ 36,395,000	$ 21,425,000
Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR	1		10	10		17
Allowance for loan loss	$ 24,951,000			$ 24,951,000			24,951,000				27,743,000
Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR	40			276
Allowance for loan loss	$ 15,927,000			$ 15,927,000			$ 15,927,000				$ 6,856,000
Troubled Debt Restructuring Defaulted [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR									3
TDR investment value			$ 1,305,000			$ 1,305,000			$ 1,305,000
Allowance for loan loss			$ 773,000			$ 773,000			$ 773,000
Troubled Debt Restructuring Defaulted [Member] | Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR							3
TDR investment value	812,000			812,000			$ 812,000
Allowance for loan loss	365,000			365,000			$ 365,000
Troubled Debt Restructuring Defaulted [Member] | Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDR							191
TDR investment value	1,727,000			1,727,000			$ 1,727,000
Allowance for loan loss	$ 66,000			$ 66,000			$ 66,000

[1] Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

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Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2018	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Net share data
Net asset value at the beginning of the period		$ 11,800
Net investment loss		(0.15)
Income tax benefit		0.03
Net realized losses on investments		(1.44)
Net change in unrealized appreciation on investments		0.94
Net decrease in net assets resulting from operations		(0.62)
Issuance of common stock		(0.03)
Repurchase of common stock		$ 0
Net investment income		$ 0
Return of capital		$ 0
Net realized gains on investments		0
Total distributions		0
Total decrease in net asset value		(0.65)
Net asset value at the end of the period	[1]	11.15
Per share market value at beginning of period		3.53
Per share market value at end of period		$ 4.65
Total return	[2]	(129.00%)
Ratios/supplemental data
Total shareholders’ equity (net assets)		$ 272,437	$ 292,790	$ 285,504	$ 291,841	$ 290,204	$ 280,415	$ 284,916	$ 287,159
Average net assets		$ 284,021
Total expense ratio	[3],[4]	10.02%
Operating expenses to average net assets	[3]	5.87%
Net investment loss after income taxes to average net assets	[3]	(4.61%)

[1] Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018.

[2] Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period.

[3] MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter.

[4] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets

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Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2019		Jun. 30, 2019	Dec. 31, 2018
Assets
Impaired loans	$ 125,818			$ 140,180
Loan collateral in process of foreclosure	53,539	[1]	$ 52,368	49,495	[1]
Fair Value, Measurements, Nonrecurring [Member]
Assets
Impaired loans	27,078			34,877
Loan collateral in process of foreclosure	53,539			49,495
Total	80,617			84,372
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Assets
Impaired loans	27,078			34,877
Loan collateral in process of foreclosure	53,539			49,495
Total	$ 80,617			$ 84,372

[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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Change to Bank Holding Company Accounting

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act). Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (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 loans in process of foreclosure, goodwill and intangible assets, and investments, among other effects.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned and controlled subsidiaries commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act effective April 2, 2018, the Bank and various other Company subsidiaries that were not previously consolidated with the Company prior to the three months ended June 30, 2018, were now consolidated effective April 2, 2018. See Note 6 for the presentation of financial information for the Bank and other controlled subsidiaries for such prior periods.

The consolidated financial statements have been prepared in accordance with GAAP. The Company consolidates all entities it controls through a majority voting interest, a controlling interest through other contractual rights, or as being identified as the primary beneficiary of VIEs. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding is recorded as non-controlling interest.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. Cash balances are generally held in accounts at large national or regional banking organizations in amounts that exceed the federally insured limits. 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.

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (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 16 and 17 to the consolidated financial statements.

Equity Investments

Equity Investments

Equity investments of $9,880,000 and $9,197,000 at September 30, 2019 and December 31, 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry.

Investment Securities (Bank Holding Company Accounting)

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments – Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and 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 $236,000 at September 30, 2019 and $154,000 at December 31, 2018, and $21,000 and $46,000 was amortized to interest income for the three and nine months ended September 30, 2019, and $26,000 and $47,000 was amortized to interest income for the three and six months ended September 30, 2018. 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.

Other Investment Valuation (Investment Company Accounting)

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in the Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties continued. The Company incorporated these new factors in the Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the first quarter of 2018. Refer to Note 6 for additional details.

Loans

Loans

The Company’s loans are currently reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to loan originators, and which is amortized to interest income over the life of the loan. Effective April 2, 2018, 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 September 30, 2019 and December 31, 2018, net loan origination costs were $17,867,000 and $14,416,000. The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization to income for the three months ended September 30, 2019 and 2018 was $1,364,000 and $1,147,000, and was $3,753,000 and $2,192,000 ($3,065,000 when combined with the Bank) for the comparable nine month period.

Interest income is recorded on the accrual basis. Taxicab 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 consumer 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 more than 90 days past due were $8,123,000 at September 30, 2019, or 0.73% of the total loan portfolio, compared to $20,154,000, or 2.03% at December 31, 2018.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a trouble debt restructuring (“TDR”). The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before it reaches 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 fiscal year 2019, all consumer loans which are party to a bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance.

Loan collateral in process of foreclosure primarily includes taxicab 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 taxicab 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 $30,295,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at September 30, 2019 and December 31, 2018.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $125,818,000 at September 30, 2019 and $140,180,000 at December 31, 2018. 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 determined that no material servicing asset or liability existed as of September 30, 2019 and December 31, 2018. The Company assigned its servicing rights of the Bank 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 (Bank Holding Company Accounting)

Allowance for Loan Losses (Bank Holding Company Accounting)

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, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three-year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $4,608,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank’s general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032,000. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Refer to Note 5 for additional details.

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company’s goodwill and intangible assets arose as a result of the excess of fair value over book value for several of the Company’s previously unconsolidated portfolio investment companies as of April 2, 2018. This fair value was brought forward under the Company’s new reporting, and was subject to a purchase price accounting allocation process conducted by an independent third party expert to arrive at the current categories and amounts. Goodwill is not amortized, but is subject to quarterly review by management to determine whether additional impairment testing is needed, said testing which is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,898,000, $53,982,000 and $59,958,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended September 30, 2019 and 2018, and $1,084,000 and $722,000 of amortization expense on the intangible assets for the nine months ended September 30, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $6,161,000, $9,048,000, and $10,607,000 were outstanding at September 30, 2019, December 31, 2018, and September 30, 2018, and of which $713,000 and $1,780,000 were amortized to interest income for the three months ended September 30, 2019 and 2018, and of which $2,886,000 and $1,780,000 were amortized to interest income for the nine months ended September 30, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on the Bank, and impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the details of the intangible assets as of the periods presented.

(Dollars in thousands)	September 30, 2019		December 31, 2018
Brand-related intellectual property	$	20,350	$	21,176
Home improvement contractor relationships		6,383		6,641
Race organization		26,165		26,165
Total intangible assets	$	52,898	$	53,982

Fixed Assets

Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and amortization, and are depreciated on a straight-line basis over their estimated useful lives of 3 to 10 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated economic useful life of the improvement. Depreciation and amortization expense was $109,000 and $131,000 for the three months ended September 30, 2019 and 2018, and was $313,000 and $289,000 for the comparable nine months.

Deferred Costs

Deferred Costs

Deferred financing costs, included in other assets, 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 $613,000 and $558,000 for the three months ended September 30, 2019 and 2018, and was $1,731,000 and $1,322,000 for the comparable nine months. 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 are amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes was $5,589,000, $4,461,000, and $4,859,000 as of September 30, 2019, December 31, 2018, and September 30, 2018.

Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. 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

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 according 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)/net increase (decrease) in net assets 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 September 30,					Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)	2019		2018			2019			2018
Net income (loss)/net decrease in net assets resulting from operations    available to common stockholders	$	4,975	$	(4,697	)	$	(1,297	)	$	(34,218	)
Weighted average common shares outstanding applicable to    basic EPS		24,361,680		24,235,242			24,336,677			24,207,273
Effect of dilutive stock options		16,543		—			—			—
Effect of restricted stock grants		228,944		—			—			—
Adjusted weighted average common shares outstanding    applicable to diluted EPS		24,607,167		24,235,242			24,336,677			24,207,273
Basic income (loss) per share	$	0.20	$	(0.19	)	$	(0.05	)	$	(1.41	)
Diluted income (loss) per share		0.20		(0.19	)		(0.05	)		(1.41	)

Potentially dilutive common shares excluded from the above calculations aggregated 468,055 and 115,000 shares as of September 30, 2019 and 2018.

Stock Compensation

Stock Compensation

The Company follows FASB ASC Topic 718 (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 increase in net income/net assets 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/net increase net assets resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

During the nine months ended September 30, 2019 and 2018, the Company issued 178,266 and 101,010 of restricted shares of stock-based compensation awards, 375,481 and 39,000 shares of stock options, and 26,040 and no restricted stock units and recognized $348,000 and $853,000, or $0.01 and $0.03 per share, for the 2019 third quarter and nine months, and $151,000 and $466,000, or $0.01 and $0.02, per share, for each of the comparable 2018 periods, of non-cash stock-based compensation expense related to the grants. As of September 30, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,663,000, which is expected to be recognized over the next 14 quarters (see Note 10).

Regulatory Capital

Regulatory Capital

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

FDIC-insured banks, including the Bank, are subject to certain federal laws, which impose various legal limitations on the extent to which banks may finance or otherwise supply funds to certain of their affiliates. In particular, the Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with 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 September 30, 2019, the Bank’s Tier 1 leverage ratio was 15.91%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

	Regulatory
(Dollars in thousands)	Minimum			Well- Capitalized			September 30, 2019			December 31, 2018
Common equity Tier 1 capital		—			—		$	153,580		$	141,608
Tier 1 capital		—			—			179,883			167,911
Total capital		—			—			194,436			180,917
Average assets		—			—			1,130,642			1,059,461
Risk-weighted assets		—			—			1,120,179			993,374
Leverage ratio(1)		4.0	%		5.0	%		15.9	%		15.8	%
Common equity Tier 1 capital ratio(2)		7.0			6.5			13.7			14.3
Tier 1 capital ratio(3)		8.5			8.0			16.1			16.9
Total capital ratio(3)		10.5			10.0			17.4			18.2

(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 addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, as of January 1, 2019, the Bank is required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%. Since the FDIC’s new capital rule has been fully phased in, the minimum capital requirements plus the capital conservation buffer exceed the Prompt Corrective Action well-capitalized thresholds.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 October 2019, the FASB voted 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 an impact on the Company’s accounting for estimated credit losses on its loans.

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Fair Value of Assets and liabilities

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and liabilities

(17) 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 (level 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. The following paragraph describes the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis under Bank Holding Company Accounting (applicable as of June 30, 2018 and for the quarter then ended) and shows the table under Investment Company Accounting (applicable to prior periods).

Commencing with the quarter ended June 30, 2018, equity investments are recorded at cost and are evaluated for impairment periodically.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,880	$	9,880
Available for sale investment securities(1)		—		47,422		—		47,422
Total	$	—	$	47,422	$	9,880	$	57,302

(1) Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2019 related to these assets.

December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,197	$	9,197
Available for sale investment securities(1)		—		45,324		—		45,324
Total	$	—	$	45,324	$	9,197	$	54,521

(1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018, under Bank Holding Company Accounting, and for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Equity Investments
June 30, 2019	$	9,797
Gains included in earnings		414
Purchases, investments, and issuances		1,077
Sales, maturities, settlements, and distributions		(1,408	)
September 30, 2019	$	9,880
Amounts related to held assets(1)	$	(998	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

(Dollars in thousands)	Equity Investments
December 31, 2018	$	9,197
Gains included in earnings		510
Purchases, investments, and issuances		2,727
Sales, maturities, settlements, and distributions		(2,554	)
September 30, 2019	$	9,880
Amounts related to held assets(1)	$	(1,300	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

(Dollars in thousands)	Equity Investments
June 30, 2018	$	10,773
Losses included in earnings		(400	)
Purchases, investments, and issuances		631
Sales, maturities, settlements, and distributions		(252	)
September 30, 2018	$	10,752
Amounts related to held assets(1)	$	(400	)

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

(Dollars in thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(774	)
Purchases, investments, and issuances		1,160
Sales, maturities, settlements, and distributions		(469	)
Transfers in(1)		1,377
September 30, 2018	$	10,752
Amounts related to held assets(2)	$	(774	)

(1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Gains (losses) included in earnings		(38,190	)		(8	)		29,143			(993	)		(1,915	)		—
Purchases, investments, and issuances		7			7,252			462			935			—			—
Sales, maturities, settlements, and    distributions		(8,941	)		(3,812	)		(583	)		(5	)		—			—
March 31, 2018	$	161,155		$	93,620		$	331,169		$	9,458		$	5,535		$	339
Amounts related to held assets(1)	$	(38,190	)	$	(10	)	$	29,143		$	(993	)	$	(1,915	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period, which relate to assets held as of March 31, 2018.

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2019 and December 31, 2018 under Bank Holding Company Accounting.

September 30, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	27,078	$	27,078
Loan collateral in process of foreclosure		—		—		53,539		53,539
Total	$	—	$	—	$	80,617	$	80,617

December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,877	$	34,877
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	84,372	$	84,372

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 recurring level 3 fair value measurements of assets and liabilities as of September 30, 2019 and December 31, 2018 were as follows under Bank Holding Company Accounting.

(Dollars in thousands)		Fair Value at 9/30/19	Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	7,038	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
		1,387	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Precedent arm’s length offer	Business enterprise value	$6,014 – $7,214
				Business enterprise value/revenue multiples	0.96x – 4.44x
				Discount for lack of marketability	25%
		1,455	Precedent market transaction	Offering price	$8.73/share

(Dollars in thousands)	Fair Value at 12/31/18		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	5,683	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
	1,850		Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Precedent arm’s length offer	Business enterprise value	$6,014 – $7,214
				Business enterprise value/revenue multiples	0.96x – 4.54x
	1,455		Precedent market transaction	Offering price	$8.73/share
	209		Investee book value	Valuation indicated by investee filings	N/A

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Selected Financial Ratios and Other Data

9 Months Ended

Sep. 30, 2019

Investment Company [Abstract]

Selected Financial Ratios and Other Data

(13) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting)

The following table provides selected financial ratios and other data for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands, except per share data)	Three Months Ended March 31, 2018
Net share data
Net asset value at the beginning of the period	$	11.80
Net investment loss		(0.15	)
Income tax benefit		0.03
Net realized losses on investments		(1.44	)
Net change in unrealized appreciation on investments		0.94
Net decrease in net assets resulting from operations		(0.62	)
Issuance of common stock		(0.03	)
Repurchase of common stock		—
Net investment income		—
Return of capital		—
Net realized gains on investments		—
Total distributions		—
Total decrease in net asset value		(0.65	)
Net asset value at the end of the period(1)	$	11.15
Per share market value at beginning of period	$	3.53
Per share market value at end of period		4.65
Total return(2)		(129	)%
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	272,437
Average net assets	$	284,021
Total expense ratio(3) (4)		10.02	%
Operating expenses to average net assets(4)		5.87
Net investment loss after income taxes to average net assets(4)		(4.61	)%

(1) Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter.

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Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Regulatory, Minimum, Common equity tier 1 capital	$ 0
Regulatory, Minimum, Tier 1 capital	0
Regulatory, Minimum, Total capital	0
Regulatory, Minimum, Average assets	0
Regulatory, Minimum, Risk-weighted assets	$ 0
Regulatory, Minimum, Leverage ratio	4.00%
Regulatory, Minimum, Common equity tier 1 capital ratio	7.00%
Regulatory, Minimum, Tier 1 capital ratio	8.50%
Regulatory, Minimum, Total capital ratio	10.50%
Regulatory, Well-Capitalized, Common equity tier 1 capital	$ 0
Regulatory, Well-Capitalized, Tier 1 capital	0
Regulatory, Well-Capitalized, Total capital	0
Regulatory, Well-Capitalized, Average assets	0
Regulatory, Well-Capitalized, Risk-weighted assets	$ 0
Regulatory, Well-Capitalized, Leverage ratio	5.00%
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio	6.50%
Regulatory, Well-Capitalized, Tier 1 capital ratio	8.00%
Regulatory, Well-Capitalized, Total capital ratio	10.00%
Common equity Tier 1 capital	$ 153,580	$ 141,608
Tier 1 capital	179,883	167,911
Total capital	194,436	180,917
Average assets	1,130,642	1,059,461
Risk-weighted assets	$ 1,120,179	$ 993,374
Leverage ratio	15.90%	15.80%
Common equity Tier 1 capital ratio	13.70%	14.30%
Tier 1 capital ratio	16.10%	16.90%
Total capital ratio	17.40%	18.20%

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Selected Financial Ratios and Other Data (Tables)

9 Months Ended

Sep. 30, 2019

Investment Company [Abstract]

Summary of Selected Financial Ratios and Other Data

The following table provides selected financial ratios and other data for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands, except per share data)	Three Months Ended March 31, 2018
Net share data
Net asset value at the beginning of the period	$	11.80
Net investment loss		(0.15	)
Income tax benefit		0.03
Net realized losses on investments		(1.44	)
Net change in unrealized appreciation on investments		0.94
Net decrease in net assets resulting from operations		(0.62	)
Issuance of common stock		(0.03	)
Repurchase of common stock		—
Net investment income		—
Return of capital		—
Net realized gains on investments		—
Total distributions		—
Total decrease in net asset value		(0.65	)
Net asset value at the end of the period(1)	$	11.15
Per share market value at beginning of period	$	3.53
Per share market value at end of period		4.65
Total return(2)		(129	)%
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	272,437
Average net assets	$	284,021
Total expense ratio(3) (4)		10.02	%
Operating expenses to average net assets(4)		5.87
Net investment loss after income taxes to average net assets(4)		(4.61	)%

(1) Includes $0 of undistributed net investment income per share and $0 of undistributed net realized gains per share as of March 31, 2018.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the period.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter.

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Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019 USD ($) Medallion	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)
Subsidiary or Equity Method Investee [Line Items]
Purchase price for City of Chicago taxicab medallions out of foreclosure	$ 8,689,000
Number of medallions purchased out of foreclosure | Medallion	159
Net realizable value of medallions	$ 3,091,000	$ 4,305,000	$ 5,535,000
Medallion Financing Trust I [Member]
Subsidiary or Equity Method Investee [Line Items]
Aggregate assets of trust	$ 36,139,000

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Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Mar. 31, 2018	Sep. 30, 2019	Dec. 31, 2017
RPAC [Member]
Related Party Transaction [Line Items]
Interest income		$ 0
Interest rate on loan			2.00%
Medallion Bank [Member]
Related Party Transaction [Line Items]
Loan receivable to bank		308,346,000
Medallion Servicing Corporation [Member]
Related Party Transaction [Line Items]
Interest income		1,290,000
Medallion Fine Art Inc [Member]
Related Party Transaction [Line Items]
Loan receivable to bank				$ 999,000
Interest income		$ 10,000
Medallion Fine Art Inc [Member] | Paid In Kind [Member]
Related Party Transaction [Line Items]
Interest rate on loan		12.00%
Officer [Member] | LAX Group,LLC [Member]
Related Party Transaction [Line Items]
Salary from related party			$ 171,000
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 party			10.00%
Common stock vesting percentage			3.34%
Percentage of equity raised from outside investors			5.00%
Percentage of bonus received from related party			10.00%
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 entity			700,000
Note payable to the Petty Trust			$ 7,258,000
Interest percentage of Notes payable			2.00%
Sponsorship fees	$ 7,000,000
Proceeds from sponsorship			$ 5,200,000

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Variable Interest Entities - Additional Information (Detail)	Oct. 31, 2018 USD ($)
Variable Interest Entity [Line Items]
Variable interest entity net gain	$ 25,325,000
Medallion Financing Trust I [Member]
Variable Interest Entity [Line Items]
Promissory note payable	$ 1,400,000

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Unrealized Appreciation (Depreciation) on Investments (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Debt Securities, Available-for-sale [Line Items]
Beginning balance	$ 139,700
Appreciation on investments	37,797
Depreciation on investments	(40,067)
Gains on investments	0
Losses on investments	34,747
Ending balance	172,177
Medallion [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	(20,338)
Depreciation on investments	(38,170)
Gains on investments	0
Losses on investments	34,747
Ending balance	(23,761)
Commercial Loans [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	(513)
Depreciation on investments	18
Gains on investments	0
Ending balance	(495)
Investments in Subsidiaries [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	158,920
Appreciation on investments	38,795
Gains on investments	0
Ending balance	197,715
Equity Investments [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	3,121
Appreciation on investments	(998)
Gains on investments	0
Ending balance	2,123
Investments Other than Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	(1,490)
Depreciation on investments	(1,915)
Gains on investments	0
Ending balance	$ (3,405)

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Loans and Allowance for Loan Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
loan premiums	$ 6,161	$ 9,047
capitalized loan origination costs	$ 18,427	$ 15,047

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Other Operating Expenses - Summary of Major Components of Other Operating Expenses (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Other Operating Expenses [Abstract]
Directors’ fees	$ 89
Miscellaneous taxes	120
Computer expenses	74
Depreciation and amortization	23
Other expenses	161
Total other operating expenses	$ 467

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Fair Value of Assets and Liabilities - Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands		3 Months Ended					6 Months Ended		9 Months Ended
		Sep. 30, 2019		Sep. 30, 2018	Mar. 31, 2018		Sep. 30, 2018		Sep. 30, 2019
Equity Investments [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		$ 9,797		$ 10,773	$ 9,521		$ 9,458		$ 9,197
Gains (losses) included in earnings		414		(400)	(993)		(774)		510
Purchases, investments, and issuances		1,077		631	935		1,160		2,727
Sales, maturities, settlements, and distributions		(1,408)		(252)	(5)		(469)		(2,554)
Transfers in	[1]						1,377
Ending balance		9,880		10,752	9,458		10,752		9,880
Amounts related to held assets		$ (998)	[2]	$ (400)	(993)	[3]	(774)	[4]	$ (1,300)	[2]
Medallion Loans [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance					208,279		161,155
Gains (losses) included in earnings					(38,190)
Purchases, investments, and issuances					7
Sales, maturities, settlements, and distributions					(8,941)
Ending balance					161,155
Amounts related to held assets	[3]				(38,190)
Commercial Loans [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance					90,188		93,620
Gains (losses) included in earnings					(8)
Purchases, investments, and issuances					7,252
Sales, maturities, settlements, and distributions					(3,812)
Ending balance					93,620
Amounts related to held assets	[3]				(10)
Investment [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance					302,147		331,169
Gains (losses) included in earnings					29,143
Purchases, investments, and issuances					462
Sales, maturities, settlements, and distributions					(583)
Ending balance					331,169
Amounts related to held assets	[3]				29,143
Investments Other than Securities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance					7,450		5,535
Gains (losses) included in earnings					(1,915)
Ending balance					5,535
Amounts related to held assets	[3]				(1,915)
Other Assets [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance					339		$ 339
Ending balance					$ 339

[1] Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

[2] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2019.

[3] Total realized and unrealized gains (losses) included in income for the period, which relate to assets held as of March 31, 2018.

[4] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of September 30, 2018.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Investments All Other Investments [Abstract]

Fair Value of Financial Instruments

(16) FAIR VALUE OF FINANCIAL INSTRUMENTS

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

(a)Cash—Book value equals fair value.

(b)Equity securities—The Company’s equity securities are recorded at cost less impairment, which approximated fair value.

(c)Investment securities—The Company’s investments are recorded at the estimated fair value of such investments.

(d)Loans receivable—The Company’s loans are recorded at book value which approximated fair value.

(e)Floatingrateborrowings—Due to the short-term nature of these instruments, the carrying amount approximates fair value.

(f)Commitmentstoextendcredit—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 September 30, 2019 and December 31, 2018, the estimated fair value of these off-balance-sheet instruments was not material.

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

	September 30, 2019				December 31, 2018
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and federal funds sold(1)	$	55,015	$	55,015	$	57,713	$	57,713
Equity investments		9,880		9,880		9,197		9,197
Investment securities		47,422		47,422		45,324		45,324
Loans receivable		1,099,169		1,099,169		981,487		981,487
Accrued interest receivable(2)		8,040		8,040		7,413		7,413
Financial liabilities
Funds borrowed(3)		1,187,115		1,188,850		1,062,028		1,062,297
Accrued interest payable(2)		3,511		3,511		3,852		3,852

(1) Categorized as level 1 within the fair value hierarchy. See Note 17.

(2) Categorized as level 3 within the fair value hierarchy. See Note 17.

(3) As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 and $269.

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Other Operating Expenses

9 Months Ended

Sep. 30, 2019

Other Income And Expenses [Abstract]

Other Operating Expenses

(12) OTHER OPERATING EXPENSES (Investment Company Accounting)

The major components of other operating expenses were as follows:

(Dollars in thousands)	For the Three Months Ended March 31, 2018
Directors’ fees	$	89
Miscellaneous taxes		120
Computer expenses		74
Depreciation and amortization		23
Other expenses		161
Total other operating expenses	$	467

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Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

(20) SUBSEQUENT EVENTS

We have evaluated subsequent events that have occurred through the date of financial statement issuance. As of such date, there were no subsequent events that required disclosure.

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Organization of Medallion Financial Corp. and its Subsidiaries

9 Months Ended

Sep. 30, 2019

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. (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 (the Bank), a Federal Deposit Insurance Corporation (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 taxicab medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. The loans are marketed and serviced by the Bank’s affiliates that have extensive prior experience in these asset groups. Subsequent to its formation, the Bank began originating consumer loans to finance the purchases of recreational vehicles (RVs), boats, and other related items, and to finance small scale home improvements. The Company also conducts business through Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC), which originates and services taxicab medallion and commercial loans.

The Company also conducts business through its subsidiaries Medallion Capital, Inc. (MCI), an SBIC that conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC that originated and services taxicab medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration (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 (RPAC), a professional car racing team that competes in the Monster Energy NASCAR Cup Series and is also consolidated with the Company.

The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation (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 taxi medallion loans originated by the Bank, to MSC, which bills and collects the related service fee income from the Bank, which is allocated and charged by the Company for MSC’s share of these servicing costs.

Taxi Medallion Loan Trust III (Trust III) was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity (VIE), and MFC was the primary beneficiary. As a result, the Company consolidated Trust III in its financial results until the consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 19. 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 (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 $36,139,000 at September 30, 2019, 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 taxicab medallions out of foreclosure, some of which are leased to fleet operators while being held for sale. The 159 medallions are carried at a net realizable value of $3,091,000 in other assets on the Company’s consolidated balance sheet at September 30, 2019, compared to a net realizable value of $4,305,000 and $5,535,000 at December 31, 2018 and September 30, 2018.

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Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

(8) LEASES

The Company has leased premises that expire at various dates through November 30, 2027 that are operating leases. The Company has implemented ASC Topic 842 under a modified retrospective approach in which no adjustments have been made to the prior year balances.

The following table presents the operating lease costs and additional information for the three and nine months ended September 30, 2019.

(Dollars in thousands)	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
Operating lease costs	$	531	$	1,593
Other information
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases		556		1,680
Right-of-use asset obtained in exchange for lease liability		29		(1	)

The following table presents the breakout of the operating leases as of September 30, 2019.

(Dollars in thousands)	September 30, 2019
Operating lease right-of-use assets	$	12,559
Other current liabilities		1,820
Operating lease liabilities		12,090
Total operating lease liabilities		13,910
Weighted average remaining lease term	3.7 years
Weighted average discount rate		4.00	%

At September 30, 2019, maturities of the lease liabilities were as follows.

(Dollars in thousands)
Remainder of 2019	$	600
2020		2,397
2021		2,295
2022		2,228
2023		2,136
Thereafter		6,042
Total lease payments	$	15,698
Less imputed interest		1,788
Total operating lease liabilities	$	13,910

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Consolidated Statement of Income (Parenthetical) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest paid in kind		$ 212	$ 450		$ 637	$ 1,428
Average borrowings outstanding		$ 1,169,182	$ 1,255,945		$ 1,121,693	$ 1,226,896
Average borrowing costs rate		3.13%	2.81%		3.07%	2.22%
Net Gain/losses on investment securities of affiliated	[1],[2]					$ (34,745)
Affiliated Entity [Member]
Net Gain/losses on investment securities of affiliated				$ 0
Medallion Bank [Member]
Revenue				$ 256

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 30, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	MEDALLION FINANCIAL CORP
Entity Central Index Key	0001000209
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		24,609,203
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Incorporation, State or Country Code	DE
Entity File Number	001-37747
Entity Tax Identification Number	04-3291176
Entity Address, Address Line One	437 MADISON AVENUE, 38th Floor
Entity Address, City or Town	NEW YORK
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	328-2100
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MFIN
Security Exchange Name	NASDAQ
9.000% Senior Notes due 2021 [Member]
Document Information [Line Items]
Title of 12(b) Security	9.000% Senior Notes due 2021
Trading Symbol	MFINL
Security Exchange Name	NASDAQ

XML

Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES (Bank Holding Company Accounting)

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2019 and December 31, 2018.

	As of September 30, 2019						As of December 31, 2018
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	706,393			62	%	$	587,038			58	%
Home improvement		230,726			20			183,155			18
Commercial		68,209			6			64,083			6
Medallion		136,954			12			183,606			18
Total gross loans		1,142,282			100	%		1,017,882			100	%
Allowance for loan losses		(43,113	)					(36,395	)
Total net loans	$	1,099,169					$	981,487

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – June 30, 2019	$	668,540		$	209,549		$	64,442		$	145,944		$	1,088,475
Loan originations		82,662			42,641			4,750			—			130,053
Principal payments		(40,790	)		(20,729	)		(375	)		(4,013	)		(65,907	)
Charge-offs, net		(3,489	)		(51	)		(819	)		(1,535	)		(5,894	)
Transfer to loans in process of foreclosure, net		(3,429	)		—			—			(3,005	)		(6,434	)
Other		2,899			(684	)		211			(437	)		1,989
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – December 31, 2018	$	587,038		$	183,155		$	64,083		$	183,606		$	1,017,882
Loan originations		248,989			102,821			14,520			—			366,330
Principal payments		(113,680	)		(53,508	)		(9,789	)		(10,612	)		(187,589	)
Charge-offs, net		(10,853	)		(295	)		(819	)		(18,166	)		(30,133	)
Transfer to loans in process of foreclosure, net		(10,311	)		—			—			(15,573	)		(25,884	)
Other		5,210			(1,447	)		214			(2,301	)		1,676
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018.

	Three Months Ended September 30,							Nine Months Ended September 30,				Six Months Ended September 30,
(Dollars in thousands)	2019				2018			2019				2018
Allowance for loan losses – beginning    balance	$	40,670			$	21,425		$	36,395			$	—		(1)
Charge-offs
Recreation		(5,444	)			(4,825	)		(16,366	)			(9,471	)
Home improvement		(568	)			(659	)		(1,655	)			(1,220	)
Commercial		(819	)			—			(819	)		—
Medallion		(2,378	)			(6,457	)		(20,408	)			(12,737	)
Total charge-offs		(9,209	)			(11,941	)		(39,248	)			(23,428	)
Recoveries
Recreation		1,955				1,318			5,513				3,217
Home improvement		517				367			1,360				606
Commercial	—					—		—					4
Medallion		843				110			2,242				304
Total recoveries		3,315				1,795			9,115				4,131
Net charge-offs(2)		(5,894	)			(10,146	)		(30,133	)			(19,297	)
Provision for loan losses		8,337				18,205			36,851				48,781
Allowance for loan losses – ending balance	$	43,113		(3)	$	29,484		$	43,113		(3)	$	29,484

(1) Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for the six months ended September 30, 2018.

(2) As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company.

(3) Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

The following tables set forth the composition of the allowance for loan losses by type as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	15,927		37	%		2.25	%
Home improvement		2,235		5			0.97
Commercial		—		—			0.00
Medallion		24,951		58			18.22
Total	$	43,113		100	%		3.77	%

December 31, 2018 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)	September 30, 2019			December 31, 2018			September 30, 2018
Total nonaccrual loans	$	27,078		$	34,877		$	45,765
Interest foregone quarter to date		403			487			563
Amount of foregone interest applied    to principal in the quarter		75			166			350
Interest foregone year to date		915			1,153			1,032
Amount of foregone interest applied    to principal in the year		244			535			987
Interest foregone life to date		2,432			1,952			8,530
Amount of foregone interest applied    to principal life to date		655			1,214			3,412
Percentage of nonaccrual loans to gross loan    portfolio		2	%		3	%		4	%

The following tables present the performance status of loans as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	699,685	$	6,708	$	706,393		0.95	%
Home improvement		230,487		239		230,726		0.10
Commercial		56,178		12,031		68,209		17.64
Medallion		128,854		8,100		136,954		5.91
Total	$	1,115,204	$	27,078	$	1,142,282		2.37	%

December 31, 2018 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	581,250	$	5,788	$	587,038		0.99	%
Home improvement		183,018		137		183,155		0.07
Commercial		60,249		3,834		64,083		5.98
Medallion		158,488		25,118		183,606		13.68
Total	$	983,005	$	34,877	$	1,017,882		3.43	%

For those loans aged 31-90 days, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming.

The following tables provide additional information on attributes of the nonperforming loan portfolio as of September 30, 2019 and 2018, and December 31, 2018, all of which had an allowance recorded against the principal balance.

	September 30, 2019						For the Three Months Ended September 30, 2019				For the Nine Months Ended September 30, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With an allowance recorded
Recreation	$	6,708	$	6,708	$	256	$	6,687	$	152	$	6,921	$	366
Home improvement		239		239		4		243		2		245		2
Commercial		12,031		12,126		—		9,616		36		6,827		321
Medallion		8,100		8,660		3,160		13,418		27		11,279		39
Total nonperforming loans   with an allowance	$	27,078	$	27,733	$	3,420	$	29,964	$	217	$	25,272	$	728

	December 31, 2018						September 30, 2018						For the Three Months Ended September 30, 2018					Six Months Ended September 30, 2018
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment Recorded		Interest Income Recognized			Average Investment Recorded		Interest Income Recognized
With an allowance recorded
Recreation	$	5,788	$	5,788	$	204	$	5,075	$	5,075	$	180	$	5,494	$	106		$	4,496	$	231
Home improvement		137		137		3		167		167		3		178		—			119		—
Commercial		3,834		3,929		—		5,403		5,814		100		7,047		(82	)		5,838		(12	)
Medallion		25,118		26,237		22,035		38,057		39,038		10,085		55,065		101			54,917		215
Total nonperforming loans    with an allowance	$	34,877	$	36,091	$	22,242	$	48,702	$	50,094	$	10,368	$	67,784	$	125		$	65,370	$	434

The following tables show the aging of all loans as of September 30, 2019 and December 31, 2018.

	Days Past Due
September 30, 2019 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)		Recorded Investment 90 Days and Accruing
Recreation	$	20,615	$	6,771	$	4,431	$	31,817	$	651,122	$	682,939	$	—
Home improvement		687		280		228		1,195		232,804		233,999		—
Commercial		—		—		276		276		67,933		68,209		—
Medallion		31,062		1,756		3,188		36,006		96,541		132,547		—
Total	$	52,364	$	8,807	$	8,123	$	69,294	$	1,048,400	$	1,117,694	$	—

(1) Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs.

	Days Past Due
December 31, 2018 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)		Recorded Investment > 90 Days and Accruing
Recreation	$	18,483	$	5,655	$	4,020	$	28,158	$	539,051	$	567,209	$	—
Home improvement		715		283		135		1,133		184,528		185,661		—
Commercial		—		454		279		733		63,350		64,083		—
Medallion		8,689		3,652		15,720		28,061		148,774		176,835		—
Total	$	27,887	$	10,044	$	20,154	$	58,085	$	935,703	$	993,788	$	—

(1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 202%, 220%, and 224% as of September 30, 2019, December 31, 2018, and September 30, 2018.

The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2019.

(Dollars in thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans - 2019 three months		1	$	758	$	758
Recreation loans - 2019 three months		40		587		505
Medallion loans - 2019 nine months		10	$	4,041	$	4,041
Recreation loans - 2019 nine months		276		4,109		2,619

During the twelve months ended September 30, 2019, three medallion loans modified as troubled debt restructurings were in default and had an investment value of $812,000 as of September 30, 2019, net of a $365,000 allowance for loan losses, and 191 recreation loans modified as trouble debt restructurings were in default and had an investment value of $1,727,000 as of September 30, 2019, net of a $66,000 allowance for loan losses.

The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2018.

(Dollars in thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans - 2018 three months		10	$	4,810	$	4,810
Medallion loans - 2018 nine months		17	$	7,505	$	7,505

During the twelve months ended September 30, 2018, three loans modified as troubled debt restructurings were in default and had an investment value of $1,305,000 as of September 30, 2018, net of a $773,000 allowance for loan losses.

The following tables show the activity of the loans in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – June 30, 2019	$	955		$	51,413		$	52,368
Transfer from loans, net		3,429			3,005			6,434
Sales		(1,604	)		(387	)		(1,991	)
Cash payments received		—			(1,556	)		(1,556	)
Collateral valuation adjustments		(1,603	)		(113	)		(1,716	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – December 31, 2018	$	1,503		$	47,992		$	49,495
Transfer from loans, net		10,311			15,573			25,884
Sales		(5,715	)		(899	)		(6,614	)
Cash payments received		—			(6,100	)		(6,100	)
Collateral valuation adjustments		(4,922	)		(4,204	)		(9,126	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

XML

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Data

The following tables present segment data as of September 30, 2019 and for the three and nine months then ended, and as of September 30, 2018, and for the three and six months then ended.

	Consumer Lending																Corp.
Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	26,147		$	5,184		$	1,842			$	975		$	—		$	492		$	34,640
Total interest expense		3,578			1,309			741				1,935			47			1,615			9,225
Net interest income (loss)		22,569			3,875			1,101				(960	)		(47	)		(1,123	)		25,415
Provision for loan losses		6,744			(629	)		364				1,858			—			—			8,337
Net interest income (loss)    after loss provision		15,825			4,504			737				(2,818	)		(47	)		(1,123	)		17,078
Sponsorship and race winnings		—			—			—				—			7,940			—			7,940
Race team related expenses		—			—			—				—			(2,663	)		—			(2,663	)
Other income (expense)		(6,181	)		(2,000	)		563				(2,762	)		(1,784	)		(2,591	)		(14,755	)
Net income (loss) before taxes		9,644			2,504			1,300				(5,580	)		3,446			(3,714	)		7,600
Income tax benefit (provision)		(2,497	)		(648	)		(314	)			1,345			(831	)		2,780			(165	)
Net income (loss)	$	7,147		$	1,856		$	986			$	(4,235	)	$	2,615		$	(934	)	$	7,435
Balance Sheet Data
Total loans, net	$	690,466		$	228,491		$	64,646			$	112,003		$	—		$	3,563		$	1,099,169
Total assets		702,541			239,991			87,486				226,868			33,134			229,734			1,519,754
Total funds borrowed		559,995			190,871			69,658				180,040			7,758			178,793			1,187,115
Selected Financial Ratios
Return on average assets		4.14	%		3.22	%		4.49	%			(7.26	)%		31.13	%		(1.54	)%		1.31	%
Return on average equity		20.69			16.09			22.45				(36.30	)	NM				(7.81	)		6.81
Interest yield		15.35			9.46			11.09				3.30		N/A			N/A				11.87
Net interest margin		13.25			7.07			6.63				(3.25	)	N/A			N/A				8.71
Reserve coverage		2.25			0.97			0.00		(1)		18.22		N/A			N/A				3.77
Delinquency status(2)		0.69			0.11			0.40		(1)		2.41		N/A			N/A				0.73
Charge-off ratio		2.05			0.09			4.93		(3)		5.20		N/A			N/A				2.17

(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.
Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	72,996		$	14,187		$	5,359			$	2,482		$	—		$	1,674		$	96,698
Total interest expense		9,541			3,252			2,108				5,435			119			5,313			25,768
Net interest income (loss)		63,455			10,935			3,251				(2,953	)		(119	)		(3,639	)		70,930
Provision for loan losses		19,925			733			364				15,374			—			455			36,851
Net interest income (loss)    after loss provision		43,530			10,202			2,887				(18,327	)		(119	)		(4,094	)		34,079
Sponsorship and race winnings		—			—			—				—			16,008			—			16,008
Race team related expenses		—			—			—				—			(7,211	)		—			(7,211	)
Other (expense)		(17,501	)		(5,356	)		(532	)			(8,106	)		(5,298	)		(5,822	)		(42,615	)
Net income (loss) before taxes		26,029			4,846			2,355				(26,433	)		3,380			(9,916	)		261
Income tax benefit (provision)		(6,741	)		(1,255	)		(568	)			6,375			(815	)		4,930			1,926
Net income (loss)	$	19,288		$	3,591		$	1,787			$	(20,058	)	$	2,565		$	(4,986	)	$	2,187
Balance Sheet Data
Total loans, net	$	690,466		$	228,491		$	64,646			$	112,003		$	—		$	3,563		$	1,099,169
Total assets		702,541			239,991			87,486				226,868			33,134			229,734			1,519,754
Total funds borrowed		559,995			190,871			69,658				180,040			7,758			178,793			1,187,115
Selected Financial Ratios
Return on average assets		4.01	%		2.50	%		2.69	%			(10.82	)%		10.76	%		(2.90	)%		(0.12	)%
Return on average equity		17.42			11.34			13.43				(54.12	)	NM				(11.52	)		(0.60	)
Interest yield		15.45			9.44			11.59				2.50		N/A			N/A				11.68
Net interest margin		13.43			7.27			7.03				(2.97	)	N/A			N/A				8.57
Reserve coverage		2.25			0.97			0.00		(1)		18.22		N/A			N/A				3.77
Delinquency status(2)		0.69			0.11			0.40		(1)		2.41		N/A			N/A				0.73
Charge-off ratio		2.30			0.20			1.77		(3)		18.29		N/A			N/A				3.92

(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 September 30, 2018 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	24,001		$	3,968		$	2,370			$	2,126		$	—		$	687		$	33,152
Total interest expense		2,306			709			500				3,672			40			1,660			8,887
Net interest income (loss)		21,695			3,259			1,870				(1,546	)		(40	)		(973	)		24,265
Provision for loan losses		4,423			598			(75	)			13,259			—			—			18,205
Net interest income (loss) after loss    provision		17,272			2,661			1,945				(14,805	)		(40	)		(973	)		6,060
Sponsorship and race winning		—			—			—				—			5,371			—			5,371
Race team related expenses		—			—			—				—			(2,876	)		—			(2,876	)
Other income (expense)		(3,160	)		400			(945	)			(4,077	)		(1,887	)		(2,849	)		(12,518	)
Net income (loss) before taxes		14,112			3,061			1,000				(18,882	)		568			(3,822	)		(3,963	)
Income tax benefit (provision)		(3,979	)		(863	)		(232	)			4,371			(107	)		927			117
Net income (loss)	$	10,133		$	2,198		$	768			$	(14,511	)	$	461		$	(2,895	)	$	(3,846	)
Balance Sheet Data as of September 30, 2018
Total loans, net	$	572,995		$	168,781		$	77,886			$	235,827		$	—		$	4,572		$	1,060,061
Total assets		582,610			175,333			88,035				369,763			36,237			319,429			1,571,407
Total funds borrowed		431,868			132,914			53,323				399,750			7,614			239,605			1,265,074
Balance Sheet Data as of December 31, 2018
Total loans, net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			90,264				273,501			29,925			208,518			1,381,846
Total funds borrowed		434,527			143,815			51,266				294,465			7,649			130,306			1,062,028
Selected Financial Ratios as of September 30, 2018
Return on average assets		6.80	%		4.57	%		3.50	%			(15.23	)%		4.94	%		(4.29	)%		(1.19	)%
Return on average equity		27.77			19.99			7.47			NM				42.83			(15.05	)		(6.59	)
Interest yield		15.87			8.10			12.33				3.41		N/A			N/A				10.75
Net interest margin		14.34			6.65			9.73				(2.48	)	N/A			N/A				7.94
Reserve coverage		0.50			0.51			0.13				9.81		N/A			N/A				2.71
Delinquency status(2)		0.55			0.10		0.51			(1)		4.06		N/A			N/A				1.29
Charge-off ratio		3.19			1.34		0.00			(1)		10.35		N/A			N/A				3.69

(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.

	Consumer Lending																Corp.
Six Months Ended September 30, 2018 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	46,133		$	8,605		$	4,587			$	5,315		$	—		$	1,156		$	65,796
Total interest expense		4,442			1,448			985				7,045			81			2,811			16,812
Net interest income (loss)		41,691			7,157			3,602				(1,730	)		(81	)		(1,655	)		48,984
Provision for loan losses		9,133			1,475			100				38,073			—			—			48,781
Net interest income (loss) after loss    provision		32,558			5,682			3,502				(39,803	)		(81	)		(1,655	)		203
Sponsorship and race winning		—			—			—				—			10,599			—			10,599
Race team related expenses		—			—			—				—			(5,416	)		—			(5,416	)
Other (expense)		(8,680	)		(1,285	)		(1,887	)			(6,888	)		(4,124	)		(4,390	)		(27,254	)
Net income (loss) before taxes		23,878			4,397			1,615				(46,691	)		978			(6,045	)		(21,868	)
Income tax benefit (provision)		(6,141	)		(1,159	)		(368	)			10,528			(150	)		1,428			4,138
Net income (loss)	$	17,737		$	3,238		$	1,247			$	(36,163	)	$	828		$	(4,617	)	$	(17,730	)
Balance Sheet Data as of September 30, 2018
Total loans, net	$	572,995		$	168,781		$	77,886			$	235,827		$	—		$	4,572		$	1,060,061
Total assets		582,610			175,333			88,035				369,763			36,237			319,429			1,571,407
Total funds borrowed		431,868			132,914			53,323				399,750			7,614			239,605			1,265,074
Balance Sheet Data as of December 31, 2018
Total loans, net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			90,264				273,501			29,925			208,518			1,381,846
Total funds borrowed		434,527			143,815			51,266				294,465			7,649			130,306			1,062,028
Selected Financial Ratios as of September 30, 2018
Return on average assets		6.14	%		3.42	%		2.81	%			(18.49	)%		4.46	%		(3.55	)%		(2.51	)%
Return on average equity		25.84			15.22			6.05			NM				38.67			(11.16	)		(13.34	)
Interest yield		15.88			8.94			13.48				4.03		N/A			N/A				10.91
Net interest margin		14.35			7.44			10.58				(1.31	)	N/A			N/A				8.17
Reserve coverage		0.50			0.51			0.13				9.81		N/A			N/A				2.71
Delinquency status(2)		0.55			0.10		0.51			(1)		4.06		N/A			N/A				1.29
Charge-off ratio		3.26			1.27		0.00			(1)		9.66		N/A			N/A				3.53

(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.

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Investment Securities (Bank Holding Company Accounting) (Tables)

9 Months Ended

Sep. 30, 2019

Schedule Of Investments [Abstract]

Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale as of September 30, 2019 and December 31, 2018 consisted of the following:

September 30, 2019 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US    federal agencies	$	34,431	$	569	$	(65	)	$	34,935
State and municipalities		12,279		262		(54	)		12,487
Total	$	46,710	$	831	$	(119	)	$	47,422

December 31, 2018 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of    US federal agencies	$	32,184	$	15	$	(742	)	$	31,457
State and municipalities		14,239		35		(407	)		13,867
Total	$	46,423	$	50	$	(1,149	)	$	45,324

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

The amortized cost and estimated market value of investment securities as of September 30, 2019 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	$	35	$	35
Due after one year through five years		12,416		12,497
Due after five years through ten years		10,267		10,417
Due after ten years		23,992		24,473
Total	$	46,710	$	47,422

Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less than Twelve Months					Twelve Months and Over
September 30, 2019 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations    of US federal agencies	$	(39	)	$	4,083	$	(26	)	$	5,075
State and municipalities		(1	)		169		(53	)		2,770
Total	$	(40	)	$	4,252	$	(79	)	$	7,845

	Less than Twelve Months					Twelve Months and Over
December 31, 2018 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of    US federal agencies	$	(54	)	$	4,616	$	(688	)	$	24,871
State and municipalities		(78	)		5,429		(329	)		6,259
Total	$	(132	)	$	10,045	$	(1,017	)	$	31,130

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Funds Borrowed (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Outstanding Balances of Funds Borrowed

The outstanding balances of funds borrowed were as follows:

	Payments Due for the Twelve Months Ending September 30,
(Dollars in thousands)	2020		2021		2022		2023		2024		Thereafter		September 30, 2019		December 31, 2018		Interest Rate (1)
Deposits	$	348,385	$	182,587	$	225,560	$	112,413	$	94,042	$	—	$	962,987	$	848,040		2.37	%
SBA debentures and    borrowings		23,093		8,500		—		5,000		5,000		32,500		74,093		80,099		3.41
Retail and privately placed    notes		—		33,625		—		—		36,000		—		69,625		33,625		8.61
Notes payable to banks		7,652		27,370		280		280		70		—		35,652		59,615		4.25
Preferred securities		—		—		—		—		—		33,000		33,000		33,000		4.24
Other borrowings		11,758		—		—		—		—		—		11,758		7,649		2.09
Total	$	390,888	$	252,082	$	225,840	$	117,693	$	135,112	$	65,500	$	1,187,115	$	1,062,028		2.91	%

(1) Weighted average contractual rate as of September 30, 2019.

Summary of Time Deposits on Basis of Their Maturity

The table presents time deposits of $100,000 or more by their maturity:

(Dollars in thousands)	September 30, 2019
Three months or less	$	84,392
Over three months through six months		66,100
Over six months through one year		197,893
Over one year		614,602
Total deposits	$	962,987

Summary of Key Attributes of Various Borrowing Arrangements with Lenders

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of September 30, 2019.

(Dollars in thousands)

Borrower

# of Lenders/ Notes

Note Dates

Maturity Dates

Type

Note Amounts

Balance Outstanding at September 30, 2019

Payment

Average Interest Rate at September 30, 2019

Interest Rate Index(1)

Medallion Financial    Corp.

5/5

4/11 - 8/14

9/20 - 3/21

Term loans and demand notes secured by pledged loans(2)

$

23,231

(2)

$

23,231

Interest only(3)

4.63

%

Various(3)

Medallion Chicago

2/23

11/11 - 12/11

2/21

Term loans secured by owned Chicago medallions(4)

18,449

11,231

$134 of principal & interest paid monthly

3.50

%

N/A

Medallion Funding

1/1

11/18

12/23

1,400

1,190

$70 principal & interest paid quarterly

4.00

%

N/A

$

43,080

$

35,652

(1) At September 30, 2019, 30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%, and the prime rate was 5.00%.

(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 from $12 to $81.

(4) Guaranteed by the Company.

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Loans and Allowance for Loan Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended	9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	[1]				$ 993,788
Charge-offs, net	[2]	$ (5,894)	$ (10,146)	$ (19,297)	(30,133)
Transfer to loans in process of foreclosure, net		(6,434)			(25,884)
Gross loans, ending balance	[3]	1,117,694			1,117,694
Recreation [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	[1]				567,209
Transfer to loans in process of foreclosure, net		(3,429)			(10,311)
Gross loans, ending balance	[3]	682,939			682,939
Home Improvement [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	[1]				185,661
Gross loans, ending balance	[3]	233,999			233,999
Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	[1]				176,835
Transfer to loans in process of foreclosure, net		(3,005)			(15,573)
Gross loans, ending balance	[3]	132,547			132,547
Bank Holding Company Accounting [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance		1,088,475			1,017,882
Loan originations		130,053			366,330
Principal payments		(65,907)			(187,589)
Charge-offs, net		(5,894)			(30,133)
Transfer to loans in process of foreclosure, net		(6,434)			(25,884)
Other		1,989			1,676
Gross loans, ending balance		1,142,282			1,142,282
Bank Holding Company Accounting [Member] | Recreation [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance		668,540			587,038
Loan originations		82,662			248,989
Principal payments		(40,790)			(113,680)
Charge-offs, net		(3,489)			(10,853)
Transfer to loans in process of foreclosure, net		(3,429)			(10,311)
Other		2,899			5,210
Gross loans, ending balance		706,393			706,393
Bank Holding Company Accounting [Member] | Home Improvement [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance		209,549			183,155
Loan originations		42,641			102,821
Principal payments		(20,729)			(53,508)
Charge-offs, net		(51)			(295)
Other		(684)			(1,447)
Gross loans, ending balance		230,726			230,726
Bank Holding Company Accounting [Member] | Commercial [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance		64,442			64,083
Loan originations		4,750			14,520
Principal payments		(375)			(9,789)
Charge-offs, net		(819)			(819)
Other		211			214
Gross loans, ending balance		68,209			68,209
Bank Holding Company Accounting [Member] | Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance		145,944			183,606
Principal payments		(4,013)			(10,612)
Charge-offs, net		(1,535)			(18,166)
Transfer to loans in process of foreclosure, net		(3,005)			(15,573)
Other		(437)			(2,301)
Gross loans, ending balance		$ 136,954			$ 136,954

[1] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

[2] As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company.

[3] Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs.

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Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 46,710	$ 46,423
Gross Unrealized Gains	831	50
Gross Unrealized Losses	(119)	(1,149)
Fair Value	47,422	45,324
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,431	32,184
Gross Unrealized Gains	569	15
Gross Unrealized Losses	(65)	(742)
Fair Value	34,935	31,457
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	12,279	14,239
Gross Unrealized Gains	262	35
Gross Unrealized Losses	(54)	(407)
Fair Value	$ 12,487	$ 13,867

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Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Receivables [Abstract]
Total nonaccrual loans	$ 27,078	$ 45,765	$ 34,877
Interest foregone quarter to date	403	563	487
Amount of foregone interest applied to principal in the quarter	75	350	166
Interest foregone year to date	915	1,032	1,153
Amount of foregone interest applied to principal in the year	244	987	535
Interest foregone life to date	2,432	8,530	1,952
Amount of foregone interest applied to principal life to date	$ 655	$ 3,412	$ 1,214
Percentage of nonaccrual loans to gross loan portfolio	2.00%	4.00%	3.00%

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Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)			3 Months Ended				9 Months Ended			12 Months Ended
		Jun. 15, 2018	Sep. 30, 2019		Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019		Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Mar. 01, 2016	Feb. 29, 2016	Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option outstanding			497,721	[1]	498,714	501,043	497,721	[1]		144,666	320,626
Stock option exercisable	[1]		81,667				81,667
Unvested shares of common stock outstanding			416,054		420,825	437,154	416,054			62,777
Weighted average fair value of options granted					$ 6.55	$ 6.48
Intrinsic value of options vested			$ 8,000				$ 34,000
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of options granted							$ 2.98		$ 1.06
Number of shares available for grant			10,417		4,751	163,098	178,266		101,010	101,010
Number of shares outstanding			247,616	[2]	237,878	250,482	247,616	[2]		190,915	408,582
Exercise price for grant per share			$ 4.80		$ 6.98	$ 6.55				$ 4.41
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			26,040				26,040		0
Number of shares outstanding			26,040				26,040
Vesting period			1 year
Exercise price for grant per share			$ 4.80
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		241,919	1,500,253				1,500,253
Shares were rolled into the 2018 Plan			882,219				882,219
2015 Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant												700,000
Unvested shares of common stock outstanding			247,616				247,616
2006 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of maximum number of shares approved														800,000
Number of additional shares available for issuance			0				0
2006 Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options term							10 years
2015 Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		258,334											300,000
2015 Director Plan [Member] | Non Employee Director One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		12,000
2015 Director Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options term		10 years
Amended Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			200,000				200,000
Number of additional shares available for issuance			0				0
Amended Director Plan [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant			9,000				9,000
Amended Director Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options term							10 years

[1] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019.

[2] The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019.

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Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2019 USD ($)
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	$ 81,000
Medallion Financial Corp [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Description of variable rate basis	30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%,
Medallion Financial Corp [Member] | 30 Day LIBOR [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	2.02%
Medallion Financial Corp [Member] | 360 Day LIBOR [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	2.03%
Medallion Financial Corp [Member] | Prime Rate [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	5.00%
Medallion Chicago [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Description of variable rate basis	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%.
Debt Instrument interest rate, stated percentage	3.75%
Medallion Chicago [Member] | Prime Rate Plus [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Basis spread on variable rate	0.50%
Medallion Chicago [Member] | Fixed Interest Rate [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Basis spread on variable rate	3.75%
Medallion Chicago [Member] | LIBOR Rate [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Basis spread on variable rate	2.00%

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Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Goodwill and other intangibles		$ (44,315)	$ (45,272)
Provision for loan losses		19,529	25,790
Net operating loss carryforwards	[1]	21,166	11,132
Accrued expenses, compensation, and other assets		1,932	1,844
Unrealized gains on other investments		(4,737)	(2,024)
Total deferred tax liability		(6,425)	(8,530)
Valuation allowance		(462)	(255)
Deferred tax liability, net		(6,887)	(8,785)
Taxes receivable		1,290	1,812
Net deferred and other tax liabilities		$ (5,597)	$ (6,973)

[1] As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $20,704 as of September 30, 2019.

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Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares		3 Months Ended				9 Months Ended			12 Months Ended
		Sep. 30, 2019		Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019		Sep. 30, 2018	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant price per share, cancelled, lower limit				$ 2.22
Grant price per share, granted				$ 6.55
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, beginning balance		237,878		250,482	190,915	190,915		408,582	408,582
Number of shares, granted		10,417		4,751	163,098	178,266		101,010	101,010
Number of shares, cancelled		(679)		(949)	(1,699)				(9,737)
Number of shares, vested	[1]			(16,406)	(101,832)				(308,940)
Number of shares, ending balance		247,616	[2]	237,878	250,482	247,616	[2]		190,915
Grant price per share, lower range limit beginning balance		$ 3.95		$ 2.14	$ 2.14	$ 2.14		$ 2.06	$ 2.06
Grant price per share, upper range limit beginning balance		6.55		6.55	5.27	5.27		10.38	10.38
Grant price per share, granted, lower limit				6.55					3.93
Grant price per share, granted, upper limit				7.03					5.27
Grant price per share, cancelled, lower limit		3.95		3.95	3.93				3.93
Grant price per share, cancelled, upper limit		6.55		6.55	3.95				9.08
Grant price per share, vested, lower limit	[1]			2.06	3.93				2.06
Grant price per share, vested, upper limit	[1]			7.03	4.39				10.38
Grant price per share, lower range limit ending balance		3.95	[2]	3.95	2.14	3.95	[2]		2.14
Grant price per share, upper range limit ending balance		6.55	[2]	6.55	6.55	6.55	[2]		5.27
Grant price per share, granted		4.80			6.55
Weighted average grant price beginning balance		5.86		5.68	4.06	4.06		$ 3.45	3.45
Weighted average grant price, granted		4.80		6.98	6.55				4.41
Weighted average grant price, cancelled		5.90		6.40	3.94				4.66
Weighted average grant price, vested	[1]			3.35	4.07				3.35
Weighted average grant price, ending balance		$ 5.82	[2]	$ 5.86	$ 5.68	$ 5.82	[2]		$ 4.06

[1] The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods.

[2] The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019.

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Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries under Investment Company Accounting (Detail) - USD ($) $ in Thousands		3 Months Ended								6 Months Ended	9 Months Ended
		Sep. 30, 2019		Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018		Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2019		Sep. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Investment income	[1]	$ 34,640				$ 33,152					$ 96,698		$ 69,829	[2]
Interest expense		9,225	[3]			8,887	[3]			$ 16,812	25,768	[3]	20,363	[2],[3]
Net interest income/net investment income		25,415				24,265				48,984	70,930		49,466	[2]
Noninterest income		8,874				9,441					17,420		14,379	[2]
Operating expenses									$ 1,150
Income (loss) before income taxes/net investment loss before taxes		7,600	[4]			(3,963)	[4]			(21,868)	261	[4]	(25,434)	[2],[4]
Income tax benefit		(165)				117				4,138	1,926		4,778
Net income (loss) after taxes/net decrease on net assets resulting from operations		7,435		$ (6,643)	$ 1,395	(3,846)		$ (13,884)		$ (17,730)	2,187		(32,604)	[2]
Net realized/unrealized losses of Medallion Bank	[2]												14,675
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank	[2]												(11,644)
Net increase (decrease) in net assets resulting from operations and other controlled subsidiaries		$ 4,975				$ (4,697)					$ (1,297)		$ (34,218)
Medallion Bank [Member]
Debt Securities, Available-for-sale [Line Items]
Investment income									26,880
Interest expense									3,615
Net interest income/net investment income									23,265
Noninterest income									19
Operating expenses									7,158
Income (loss) before income taxes/net investment loss before taxes									16,126
Income tax benefit									3,321
Net income (loss) after taxes/net decrease on net assets resulting from operations									19,447
Net realized/unrealized losses of Medallion Bank									(28,539)
Unrealized appreciation on Medallion Bank	[5]								39,092
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank									(885)
Net increase (decrease) in net assets resulting from operations and other controlled subsidiaries									29,115
Medallion Bank [Member] | Medallion Financing Trust I [Member]
Debt Securities, Available-for-sale [Line Items]
Net increase (decrease) in net assets resulting from operations and other controlled subsidiaries									$ (9,092)

[1] Included in interest and investment income is $212 and $637 of paid in kind interest for the three and nine months ended September 30, 2019 and $450 and $1,428 for the comparable 2018 periods.

[2] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[3] Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods.

[4] Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information

[5] Unrealized depreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of the Bank.

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Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018
Financial assets
Equity investments		$ 9,880	$ 9,197
Investment securities		47,422	45,324
Loans receivable		1,142,282	1,017,882
Carrying Amount [Member]
Financial assets
Cash and federal funds sold	[1]	55,015	57,713
Equity investments		9,880	9,197
Investment securities		47,422	45,324
Loans receivable		1,099,169	981,487
Accrued interest receivable	[2]	8,040	7,413
Financial liabilities
Funds borrowed	[3]	1,187,115	1,062,028
Accrued interest payable	[2]	3,511	3,852
Fair Value Recurring [Member]
Financial assets
Cash and federal funds sold	[1]	55,015	57,713
Equity investments		9,880	9,197
Investment securities		47,422	45,324
Loans receivable		1,099,169	981,487
Accrued interest receivable	[2]	8,040	7,413
Financial liabilities
Funds borrowed	[3]	1,188,850	1,062,297
Accrued interest payable	[2]	$ 3,511	$ 3,852

[1] Categorized as level 1 within the fair value hierarchy. See Note 17.

[2] Categorized as level 3 within the fair value hierarchy. See Note 17.

[3] As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 and $269.

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Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail) - Equity Investments [Member]	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares
Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value | $ / shares	$ 8.73	$ 8.73
Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value	$ 6,014,000	$ 6,014,000
Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value	$ 7,214,000	7,214,000
Precedent Arms Length Offer [Member] | Discount Rate [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value | $ / shares	25
Level 3 [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	$ 7,038,000	5,683,000
Level 3 [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Financial Condition and Operating Performance of the Investee [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	1,387,000	1,850,000
Level 3 [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	$ 1,455,000	1,455,000
Level 3 [Member] | Investee Book Value [Member] | Equity Method Valuation Indicated By Investee Filings [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments		$ 209,000

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Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Parenthetical) (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) $ / shares
Investment Holdings [Line Items]
Undistributed net investment income per share | $ / shares	$ 0
Undistributed net realized gains per share | $ / shares	$ 0
Servicing fee | $	$ 1,290
Operating expenses | $	$ 1,150
Total expense ratio	10.02%	[1],[2]
Operating expense ratio	5.87%	[1]
Excluding Impact of Medallion Servicing Corp. Amounts [Member]
Investment Holdings [Line Items]
Total expense ratio	11.75%
Operating expense ratio	7.51%
Net investment income ratio	(4.49%)

[1] MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, and operating expenses of $1,150, which formerly were the Company’s, were MSC’s for the three months ended March 31, 2018. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have been 11.75%, 7.51%, and (4.49%) in the March 31, 2018 quarter.

[2] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets

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Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($) TDR	Sep. 30, 2018 USD ($) TDR	Sep. 30, 2019 USD ($) TDR	Sep. 30, 2018 USD ($) TDR
Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Loans | TDR	1	10	10	17
Pre- Modification Investment	$ 758	$ 4,810	$ 4,041	$ 7,505
Post- Modification Investment	$ 758	$ 4,810	$ 4,041	$ 7,505
Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Loans | TDR	40		276
Pre- Modification Investment	$ 587		$ 4,109
Post- Modification Investment	$ 505		$ 2,619

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Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance	$ 27,078	$ 48,702	$ 48,702	$ 27,078	$ 34,877
Unpaid principal balance, With related allowance	27,733	50,094	50,094	27,733	36,091
Related allowance, With related allowance	3,420	10,368	10,368	3,420	22,242
Average investment recorded, With related allowance	29,964	67,784	65,370	25,272
Interest income recognized, With related allowance	217	125	434	728
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance	6,708	5,075	5,075	6,708	5,788
Unpaid principal balance, With related allowance	6,708	5,075	5,075	6,708	5,788
Related allowance, With related allowance	256	180	180	256	204
Average investment recorded, With related allowance	6,687	5,494	4,496	6,921
Interest income recognized, With related allowance	152	106	231	366
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance	239	167	167	239	137
Unpaid principal balance, With related allowance	239	167	167	239	137
Related allowance, With related allowance	4	3	3	4	3
Average investment recorded, With related allowance	243	178	119	245
Interest income recognized, With related allowance	2			2
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance	12,031	5,403	5,403	12,031	3,834
Unpaid principal balance, With related allowance	12,126	5,814	5,814	12,126	3,929
Related allowance, With related allowance		100	100
Average investment recorded, With related allowance	9,616	7,047	5,838	6,827
Interest income recognized, With related allowance	36	(82)	(12)	321
Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance	8,100	38,057	38,057	8,100	25,118
Unpaid principal balance, With related allowance	8,660	39,038	39,038	8,660	26,237
Related allowance, With related allowance	3,160	10,085	10,085	3,160	$ 22,035
Average investment recorded, With related allowance	13,418	55,065	54,917	11,279
Interest income recognized, With related allowance	$ 27	$ 101	$ 215	$ 39

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Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2019		Dec. 31, 2018
Assets
Equity investments	$ 9,880		$ 9,197
Available for sale investment securities	47,422	[1]	45,324	[2]
Total	57,302		54,521
Level 2 [Member]
Assets
Available for sale investment securities	47,422	[1]	45,324	[2]
Total	47,422		45,324
Level 3 [Member]
Assets
Equity investments	9,880		9,197
Total	$ 9,880		$ 9,197

[1] Total unrealized income of $1,322, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended September 30, 2019 related to these assets.

[2] Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

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Segment Reporting - Additional Information (Detail) - Segment	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Segment Reporting Disclosure [Line Items]
Number of business segments	6
Number of operating segments	4
Number of non-operating segments	2
Loan outstanding percent	10.00%
Capital ratios for operating segments	13.70%	14.30%
Operating Segments [Member]
Segment Reporting Disclosure [Line Items]
Capital ratios for operating segments	20.00%
Swimming Pools [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	25.00%
Solar Panels [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	13.00%
Roofs [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	20.00%
Windows [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	13.00%
Texas [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	16.00%
California [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Florida [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Geographic Concentration Risk [Member] | Recreational Vehicles [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	62.00%
Geographic Concentration Risk [Member] | Boats [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	18.00%
Geographic Concentration Risk [Member] | Trailers [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	12.00%
Geographic Concentration Risk [Member] | Midwest [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	57.00%
Geographic Concentration Risk [Member] | New York
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	88.00%

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Investments All Other Investments [Abstract]

Summary of Carrying Values and Fair Values of Financial Instruments

The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.

	September 30, 2019				December 31, 2018
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and federal funds sold(1)	$	55,015	$	55,015	$	57,713	$	57,713
Equity investments		9,880		9,880		9,197		9,197
Investment securities		47,422		47,422		45,324		45,324
Loans receivable		1,099,169		1,099,169		981,487		981,487
Accrued interest receivable(2)		8,040		8,040		7,413		7,413
Financial liabilities
Funds borrowed(3)		1,187,115		1,188,850		1,062,028		1,062,297
Accrued interest payable(2)		3,511		3,511		3,852		3,852

(1) Categorized as level 1 within the fair value hierarchy. See Note 17.

(2) Categorized as level 3 within the fair value hierarchy. See Note 17.

(3) As of September 30, 2019 and December 31, 2018, publicly traded retail notes traded at a premium to par of $1,735 and $269.

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Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Investments In Loans [Line Items]
Intangibles assets	$ 52,898	$ 53,982	$ 59,958
Intellectual Property [Member]
Investments In Loans [Line Items]
Intangibles assets	20,350	21,176
Contractor Relationships [Member]
Investments In Loans [Line Items]
Intangibles assets	6,383	6,641
Race Organization [Member]
Investments In Loans [Line Items]
Intangibles assets	$ 26,165	$ 26,165

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Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP)

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP)

(18) SMALL BUSINESS LENDING FUND PROGRAM (SBLF) AND TROUBLED ASSETS RELIEF PROGRAM (TARP)

On February 27, 2009 and December 22, 2009, the Bank issued, and the US Treasury purchased under the TARP Capital Purchase Program (the CPP) the Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011, the Bank issued, and the US Treasury purchased 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E) for an aggregate purchase price of $26,303,000 under the SBLF. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. the Bank pays a dividend rate of 9% on the Series E.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

(14) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a two- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year, 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. Annually, the contracts with a two-year term will renew for new 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-year term. 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 2024, with future minimum payments under these agreements of approximately $6,061,000.

(B) OTHER COMMITMENTS

Except as described in the following paragraph, the Company had no commitments to extend credit or make investments outstanding at September 30, 2019. 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.

The Company has commitments for leased premises that expire at various dates through November 30, 2027. At September 30, 2019, minimal rental commitments for non-cancelable leases were $15,698,000.

(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 7.

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables)

9 Months Ended

Sep. 30, 2019

Schedule Of Investments [Abstract]

Schedule of Unrealized Appreciation (Depreciation) on Investments

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investments Other Than Securities			Total
Balance December 31, 2017	$	(20,338	)	$	(513	)	$	158,920	$	3,121		$	(1,490	)	$	139,700
Net change in unrealized
Appreciation on investments		—			—			38,795		(998	)		—			37,797
Depreciation on investments		(38,170	)		18			—		—			(1,915	)		(40,067	)
Reversal of unrealized appreciation    (depreciation) related to realized
Gains on investments		—			—			—		—			—			—
Losses on investments		34,747			—			—		—			—			34,747
Balance March 31, 2018	$	(23,761	)	$	(495	)	$	197,715	$	2,123		$	(3,405	)	$	172,177

Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio

(Dollars in thousands)	Three Months Ended March 31, 2018
Net change in unrealized appreciation (depreciation) on    investments
Unrealized appreciation	$	(998	)
Unrealized depreciation		(38,152	)
Net unrealized appreciation on investments in Medallion    Bank and other controlled subsidiaries		29,115
Realized gains		—
Realized losses		34,747
Net unrealized losses on investments other than securities and    other assets		(1,915	)
Total	$	22,797
Net realized gains (losses) on investments
Realized gains	$	—
Realized losses		(34,747	)
Direct recoveries		2
Total	$	(34,745	)

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of September 30, 2019 and December 31, 2018.

(Dollars in thousands)	September 30, 2019			December 31, 2018
Goodwill and other intangibles	$	(44,315	)	$	(45,272	)
Provision for loan losses		19,529			25,790
Net operating loss carryforwards(1)		21,166			11,132
Accrued expenses, compensation, and other assets		1,932			1,844
Unrealized gains on other investments		(4,737	)		(2,024	)
Total deferred tax liability		(6,425	)		(8,530	)
Valuation allowance		(462	)		(255	)
Deferred tax liability, net		(6,887	)		(8,785	)
Taxes receivable		1,290			1,812
Net deferred and other tax liabilities	$	(5,597	)	$	(6,973	)

(1) As of September 30, 2019, the Company and its subsidiaries had an estimated $87,433 of net operating loss carryforwards, $1,712 of which expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $20,704 as of September 30, 2019.

Schedule of Components of Tax (Provision) Benefit

The components of our tax (provision) benefit for the three and nine months ended September 30, 2019 and 2018 were as follows.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Current
Federal	$	(230	)	$	(9,353	)	$	(1,099	)	$	(3,040	)
State		(661	)		(2,318	)		(1,620	)		(1,078	)
Deferred
Federal		(887	)		9,100			1,311			8,128
State		1,613			2,688			3,334			768
Net (provision) benefit for income taxes	$	(165	)	$	117		$	1,926		$	4,778

Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit

The following table presents a reconciliation of statutory federal income tax (provision) benefit to consolidated actual income tax (provision) benefit reported in net loss/net decrease in net assets for the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2019			2018			2019			2018
Statutory Federal income tax (provision) benefit at 21%	$	(1,616	)	$	877		$	(332	)	$	8,106
State and local income taxes, net of federal income    tax benefit		(547	)		(107	)		(113	)		994
Revaluation of net operating losses		876			—			380			—
Appreciation of Medallion Bank		—			—			—			(1,974	)
Utilization of carry forwards		—			(247	)		—			(910	)
Change in state income tax accruals		—			—			600			—
Change in effective state income tax rate		608			—			916			(1,358	)
Income attributable to non-controlling interest		451			—			451			—
Non deductible expenses		—			(215	)		—			(403	)
Other		63			(191	)		24			323
Total income tax (provision) benefit	$	(165	)	$	117		$	1,926		$	4,778

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Stock Options and Restricted Stock

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Options and Restricted Stock

(10) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan (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, stock appreciation rights, etc. A total of 1,500,253 shares of the Company’s common stock are issuable under the 2018 Plan, and 882,219 remained issuable as of September 30, 2019. 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 (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 (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 (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 (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 September 30, 2019, 497,721 options on the Company’s common stock were outstanding under the Company’s plans, of which 81,667 options were exercisable, and there were 247,616 unvested shares of the Company’s common stock outstanding 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 $2.98 per share and $1.06 per share for the nine months ended September 30, 2019 and 2018. The following assumption categories are used to determine the value of any option grants.

	Nine Months Ended September 30,
	2019			2018
Risk free interest rate		2.39	%		2.82	%
Expected dividend yield		0.79			4.86
Expected life of option in years(1)		6.25			6.00
Expected volatility(2)		48.45			30.00

(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 2019 quarters and the 2018 full year.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		320,626		$	2.14-13.84		$	8.78
Granted		39,000			5.27-5.58			5.46
Cancelled		(214,960	)		9.22-9.24			9.22
Exercised(1)		—				—		—
Outstanding at December 31, 2018		144,666			2.06-13.84			7.23
Granted		374,377			5.21-6.55			6.48
Cancelled		(18,000	)		7.49-9.38			8.44
Exercised(1)		—				—		—
Outstanding at March 31, 2019		501,043			2.14-13.84			6.63
Granted		1,104				6.55		6.55
Cancelled		(3,433	)		6.55-7.49			7.10
Exercised(1)		—				—		—
Outstanding at June 30, 2019		498,714			2.14-13.84			6.62
Granted		—				—		—
Cancelled		(993	)			6.55		6.55
Exercised(1)		—				—		—
Outstanding at September 30, 2019(2)		497,721		$	2.14-13.84		$	6.62
Options exercisable at September 30, 2019(2)		81,667		$	2.14-13.84		$	8.35

(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 $0 for each of the 2019 and 2018 three and nine months ended September 30.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019.

The following table presents the activity for the restricted stock programs for the 2019 quarters and the 2018 full year.

	Number of Shares				Grant Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		408,582		$	2.06-10.38		$	3.45
Granted		101,010			3.93-5.27			4.41
Cancelled		(9,737	)		3.93-9.08			4.66
Vested(1)		(308,940	)		2.06-10.38			3.35
Outstanding at December 31, 2018		190,915			2.14-5.27			4.06
Granted		163,098				6.55		6.55
Cancelled		(1,699	)		3.93-3.95			3.94
Vested(1)		(101,832	)		3.93-4.39			4.07
Outstanding at March 31, 2019		250,482			2.14-6.55			5.68
Granted		4,751			6.55-7.03			6.98
Cancelled		(949	)		3.95-6.55			6.40
Vested(1)		(16,406	)		2.06-7.03			3.35
Outstanding at June 30, 2019		237,878			3.95-6.55			5.86
Granted		10,417				4.80		4.80
Cancelled		(679	)		3.95-6.55			5.90
Vested(1)		—				—		—
Outstanding at September 30, 2019(2)		247,616		$	3.95-6.55		$	5.82

(1) The aggregate fair value of the restricted stock vested was $0 and $736,000 for the three and nine months ended September 30, 2019, and was $32,000 and $1,241,000 for the comparable 2018 periods.

(2) The aggregate fair value of the restricted stock was $1,585,000 as of September 30, 2019. The remaining vesting period was 2.67 years at September 30, 2019.

In addition, during the 2019 third quarter, the Company granted and has outstanding, 26,040 restricted stock units that vest in one year with a grant price of $4.80. These units have the option of deferring vesting until a future date if the employee makes a formal election under the guidelines of IRC Section 409A.

The following table presents the activity for the unvested options outstanding under the plans for the 2019 quarters.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2018		62,777		$	2.14-7.10		$	4.59
Granted		374,377			5.21-6.55			6.48
Cancelled		—				—		—
Vested		—				—		—
Outstanding at March 31, 2019		437,154			2.14-7.10			6.21
Granted		1,104				6.55		6.55
Cancelled		(1,433	)			6.55		6.55
Vested		(16,000	)		2.22-7.10			5.12
Outstanding at June 30, 2019		420,825			2.14-6.55			6.25
Granted		—				—		—
Cancelled		(993	)			6.55		6.55
Vested		(3,778	)			2.61		2.61
Outstanding at September 30, 2019		416,054		$	2.14-6.55		$	6.28

The intrinsic value of the options vested was $8,000 and $34,000 for the three and nine months ended September 30, 2019.

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Investments in Medallion Bank and Other Controlled Subsidiaries

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Investments in Medallion Bank and Other Controlled Subsidiaries

(6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES (Investment Company Accounting)

The following note is included for informational purposes as it relates to the prior periods when the Company reported under Investment Company Accounting and as such, was not able to consolidate the Bank’s results.

The following table presents information derived from the Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three months ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Statement of comprehensive income
Investment income	$	26,880
Interest expense		3,615
Net interest income		23,265
Noninterest income		19
Operating expenses		7,158
Net investment income before income taxes		16,126
Income tax benefit		3,321
Net investment income after income taxes		19,447
Net realized/unrealized losses of Medallion Bank		(28,539	)
Net decrease in net assets resulting from operations of    Medallion Bank		(9,092	)
Unrealized appreciation on Medallion Bank(1)		39,092
Net realized/unrealized losses on controlled subsidiaries    other than Medallion Bank		(885	)
Net increase in net assets resulting from operations of    Medallion Bank and other controlled subsidiaries	$	29,115

(1) Unrealized depreciation on the Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the US Treasury, and the fair value adjustments to the carrying amount of the Bank.

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Consolidated Statement of Changes in Stockholders' Equity and Changes in Net Assets - USD ($) $ in Thousands		Total	Common Stock [Member]	Preferred Stock [Member]	Capital in Excess of Par [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Parent [Member]	Noncontrolling Interest [Member]	Accumulated Undistributed Net Investment Loss [Member]	Net Unrealized Appreciation on Investment Net of Tax [Member]
Balance at Dec. 31, 2017		$ 287,159	$ 273		$ 273,716	$ (24,919)			$ 287,159
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017											$ (65,592)	$ 103,681
Balance, shares at Dec. 31, 2017			27,294,327			(2,951,243)
Net decrease in net assets resulting from operations		(14,874)							(14,874)
Net decrease in net assets resulting from operations | Investment Company Accounting [Member]											(38,299)	23,425
Stock based compensation expense		152	$ 1		151				152
Issuance of restricted stock, net, shares			95,726
Ending balance at Mar. 31, 2018		272,437	$ 274		273,867	$ (24,919)			272,437
Ending balance (Investment Company Accounting [Member]) at Mar. 31, 2018											(103,891)	127,106
Ending balance, shares at Mar. 31, 2018			27,390,053			(2,951,243)
Adoption of Bank Holding Company Accounting at Mar. 31, 2018		27,065					$ 23,215			$ 27,065
Adoption of Bank Holding Company Accounting (Investment Company Accounting [Member]) at Mar. 31, 2018											103,891	(127,106)
Balance at April 2, 2018 at Mar. 31, 2018		299,502	$ 274		273,867	$ (24,919)	23,215		272,437	27,065
Balance at Dec. 31, 2017		287,159	$ 273		273,716	$ (24,919)			287,159
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017											(65,592)	103,681
Balance, shares at Dec. 31, 2017			27,294,327			(2,951,243)
Net income (loss)	[1]	(32,604)
Ending balance at Sep. 30, 2018		280,415	$ 274		274,163	$ (24,919)	3,871	$ (469)	252,920	27,495
Ending balance, shares at Sep. 30, 2018			27,391,295			(2,951,243)
Balance at Dec. 31, 2017		287,159	$ 273		273,716	$ (24,919)			287,159
Balance (Investment Company Accounting [Member]) at Dec. 31, 2017											(65,592)	103,681
Balance, shares at Dec. 31, 2017			27,294,327			(2,951,243)
Net change in unrealized gains (losses) on investments, net of tax		(82)
Ending balance at Dec. 31, 2018		$ 290,204	$ 274		274,292	$ (24,919)	13,043	(82)	262,608	27,596
Ending balance, shares at Dec. 31, 2018		24,434,357	27,385,600			(2,951,243)
Balance at Mar. 31, 2018		$ 272,437	$ 274		273,867	$ (24,919)			272,437
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018											(103,891)	127,106
Balance, shares at Mar. 31, 2018			27,390,053			(2,951,243)
Net income (loss)		(13,884)					(14,647)		(14,647)	763
Distributions to non- controlling interest		(592)								(592)
Stock based compensation expense		145			145				145
Issuance of restricted stock, net, shares			13
Net change in unrealized gains (losses) on investments, net of tax		(255)						(255)	(255)
Ending balance at Jun. 30, 2018		284,916	$ 274		274,012	$ (24,919)	8,568	(255)	257,680	27,236
Ending balance, shares at Jun. 30, 2018			27,390,066			(2,951,243)
Balance at Mar. 31, 2018		272,437	$ 274		273,867	$ (24,919)			272,437
Balance (Investment Company Accounting [Member]) at Mar. 31, 2018											$ (103,891)	$ 127,106
Balance, shares at Mar. 31, 2018			27,390,053			(2,951,243)
Net income (loss)		(17,730)
Ending balance at Sep. 30, 2018		280,415	$ 274		274,163	$ (24,919)	3,871	(469)	252,920	27,495
Ending balance, shares at Sep. 30, 2018			27,391,295			(2,951,243)
Balance at Jun. 30, 2018		284,916	$ 274		274,012	$ (24,919)	8,568	(255)	257,680	27,236
Balance, shares at Jun. 30, 2018			27,390,066			(2,951,243)
Net income (loss)		(3,846)					(4,697)		(4,697)	851
Distributions to non- controlling interest		(592)								(592)
Stock based compensation expense		151			151				151
Issuance of restricted stock, net, shares			1,229
Net change in unrealized gains (losses) on investments, net of tax		(214)						(214)	(214)
Ending balance at Sep. 30, 2018		280,415	$ 274		274,163	$ (24,919)	3,871	(469)	252,920	27,495
Ending balance, shares at Sep. 30, 2018			27,391,295			(2,951,243)
Balance at Dec. 31, 2018		$ 290,204	$ 274		274,292	$ (24,919)	13,043	(82)	262,608	27,596
Balance, shares at Dec. 31, 2018		24,434,357	27,385,600			(2,951,243)
Net income (loss)		$ 1,395					1,228		1,228	167
Distributions to non- controlling interest		(592)								(592)
Stock based compensation expense		165	$ 1		164				165
Issuance of restricted stock, net		0	$ 0	$ 0	0	$ 0	0	0	0	0
Issuance of restricted stock, net, shares			163,098
Forfeiture of restricted stock, net		0	$ 0	0	0	0	0	0	0	0
Forfeiture of restricted stock, net, shares			(1,699)
Net change in unrealized gains (losses) on investments, net of tax		669						669	669
Ending balance at Mar. 31, 2019		291,841	$ 275		274,456	$ (24,919)	14,271	587	264,670	27,171
Ending balance, shares at Mar. 31, 2019			27,546,999			(2,951,243)
Balance at Dec. 31, 2018		$ 290,204	$ 274		274,292	$ (24,919)	13,043	(82)	262,608	27,596
Balance, shares at Dec. 31, 2018		24,434,357	27,385,600			(2,951,243)
Net income (loss)		$ 2,187
Net change in unrealized gains (losses) on investments, net of tax		1,322
Ending balance at Sep. 30, 2019		$ 292,790	$ 276		275,143	$ (24,919)	11,746	1,240	263,486	29,304
Ending balance, shares at Sep. 30, 2019		24,609,296	27,560,539			(2,951,243)
Balance at Mar. 31, 2019		$ 291,841	$ 275		274,456	$ (24,919)	14,271	587	264,670	27,171
Balance, shares at Mar. 31, 2019			27,546,999			(2,951,243)
Net income (loss)		(6,643)					(7,500)		(7,500)	857
Distributions to non- controlling interest		(592)								(592)
Stock based compensation expense		340			340				340
Issuance of restricted stock, net		0	$ 0	0	0	$ 0	0	0	0	0
Issuance of restricted stock, net, shares			4,751
Forfeiture of restricted stock, net		0	$ 0	0	0	0	0	0	0	0
Forfeiture of restricted stock, net, shares			(949)
Net change in unrealized gains (losses) on investments, net of tax		558						558	558
Ending balance at Jun. 30, 2019		285,504	$ 275		274,796	$ (24,919)	6,771	1,145	258,068	27,436
Ending balance, shares at Jun. 30, 2019			27,550,801			(2,951,243)
Net income (loss)		7,435					4,975		4,975	2,460
Distributions to non- controlling interest		(592)								(592)
Stock based compensation expense		348	$ 1		347				348
Issuance of restricted stock, net		0	$ 0	0	0	$ 0	0	0	0	0
Issuance of restricted stock, net, shares			10,417
Forfeiture of restricted stock, net		0	$ 0	$ 0	0	0	0	0	0	0
Forfeiture of restricted stock, net, shares			(679)
Net change in unrealized gains (losses) on investments, net of tax		95						95	95
Ending balance at Sep. 30, 2019		$ 292,790	$ 276		$ 275,143	$ (24,919)	$ 11,746	$ 1,240	$ 263,486	$ 29,304
Ending balance, shares at Sep. 30, 2019		24,609,296	27,560,539			(2,951,243)

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares issued	27,560,539	27,385,600
Treasury stock,shares	2,951,243	2,951,243
Restricted cash	$ 2,970
Loan collateral in process of foreclosure, financed sales collateral to third parties	6,091	$ 3,134
Short term lease liabilities	$ 1,820

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act). Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of the Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US (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 loans 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act effective April 2, 2018, the Bank and various other Company subsidiaries that were not previously consolidated with the Company prior to the three months ended June 30, 2018, were now consolidated effective April 2, 2018. See Note 6 for the presentation of financial information for the Bank and other controlled subsidiaries for such prior periods.

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.

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (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 16 and 17 to the consolidated financial statements.

Equity Investments

Equity investments of $9,880,000 and $9,197,000 at September 30, 2019 and December 31, 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry.

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments – Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and 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 $236,000 at September 30, 2019 and $154,000 at December 31, 2018, and $21,000 and $46,000 was amortized to interest income for the three and nine months ended September 30, 2019, and $26,000 and $47,000 was amortized to interest income for the three and six months ended September 30, 2018. 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.

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in the Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of the Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at the Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that the Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used the Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in the Bank and its portfolio assets at values in excess of their book value. Expression of interest in the Bank from both investment bankers and interested parties continued. The Company incorporated these new factors in the Bank’s fair value analysis and the Board of Directors determined that the Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of the Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the first quarter of 2018. Refer to Note 6 for additional details.

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 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 September 30, 2019 and December 31, 2018, net loan origination costs were $17,867,000 and $14,416,000. The majority of these loan origination costs were capitalized into the loan balances on April 2, 2018 in connection with the change in reporting status. Net amortization to income for the three months ended September 30, 2019 and 2018 was $1,364,000 and $1,147,000, and was $3,753,000 and $2,192,000 ($3,065,000 when combined with the Bank) for the comparable nine month period.

Interest income is recorded on the accrual basis. Taxicab 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 consumer 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 more than 90 days past due were $8,123,000 at September 30, 2019, or 0.73% of the total loan portfolio, compared to $20,154,000, or 2.03% at December 31, 2018.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a trouble debt restructuring (“TDR”). The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before it reaches 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 fiscal year 2019, all consumer loans which are party to a bankruptcy are immediately classified as TDRs. The Company’s policy with regard to bankrupt loans is take an immediate 40% write down of the loan balance.

Loan collateral in process of foreclosure primarily includes taxicab 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 taxicab 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 $30,295,000 and $40,500,000 of net loans and loans in process of foreclosure pledged as collateral under borrowing arrangements at September 30, 2019 and December 31, 2018.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $125,818,000 at September 30, 2019 and $140,180,000 at December 31, 2018. 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 determined that no material servicing asset or liability existed as of September 30, 2019 and December 31, 2018. The Company assigned its servicing rights of the Bank 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 (Bank Holding Company Accounting)

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, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three-year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $4,608,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank’s general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032,000. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Refer to Note 5 for additional details.

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, said testing which is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $52,898,000, $53,982,000 and $59,958,000, and the Company recognized $361,000 and $361,000 of amortization expense on the intangible assets for the three months ended September 30, 2019 and 2018, and $1,084,000 and $722,000 of amortization expense on the intangible assets for the nine months ended September 30, 2019 and 2018. Additionally, loan portfolio premiums of $12,387,000 were determined as of April 2, 2018, of which $6,161,000, $9,048,000, and $10,607,000 were outstanding at September 30, 2019, December 31, 2018, and September 30, 2018, and of which $713,000 and $1,780,000 were amortized to interest income for the three months ended September 30, 2019 and 2018, and of which $2,886,000 and $1,780,000 were amortized to interest income for the nine months ended September 30, 2019 and 2018. The Company engaged an expert to assess the goodwill and intangibles for impairment at December 31, 2018, who concluded there was no impairment on the Bank, and impairment on the RPAC intangible asset of $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the details of the intangible assets as of the periods presented.

(Dollars in thousands)	September 30, 2019		December 31, 2018
Brand-related intellectual property	$	20,350	$	21,176
Home improvement contractor relationships		6,383		6,641
Race organization		26,165		26,165
Total intangible assets	$	52,898	$	53,982

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 $109,000 and $131,000 for the three months ended September 30, 2019 and 2018, and was $313,000 and $289,000 for the comparable nine months.

Deferred Costs

Deferred financing costs, included in other assets, 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 $613,000 and $558,000 for the three months ended September 30, 2019 and 2018, and was $1,731,000 and $1,322,000 for the comparable nine months. 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 are amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes was $5,589,000, $4,461,000, and $4,859,000 as of September 30, 2019, December 31, 2018, and September 30, 2018.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. 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 according 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)/net increase (decrease) in net assets 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 September 30,					Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)	2019		2018			2019			2018
Net income (loss)/net decrease in net assets resulting from operations    available to common stockholders	$	4,975	$	(4,697	)	$	(1,297	)	$	(34,218	)
Weighted average common shares outstanding applicable to    basic EPS		24,361,680		24,235,242			24,336,677			24,207,273
Effect of dilutive stock options		16,543		—			—			—
Effect of restricted stock grants		228,944		—			—			—
Adjusted weighted average common shares outstanding    applicable to diluted EPS		24,607,167		24,235,242			24,336,677			24,207,273
Basic income (loss) per share	$	0.20	$	(0.19	)	$	(0.05	)	$	(1.41	)
Diluted income (loss) per share		0.20		(0.19	)		(0.05	)		(1.41	)

Potentially dilutive common shares excluded from the above calculations aggregated 468,055 and 115,000 shares as of September 30, 2019 and 2018.

Stock Compensation

The Company follows FASB ASC Topic 718 (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 increase in net income/net assets 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/net increase net assets resulting from operations for any new grants using the grant date fair value of the shares granted, expensed over the vesting period of the underlying stock.

During the nine months ended September 30, 2019 and 2018, the Company issued 178,266 and 101,010 of restricted shares of stock-based compensation awards, 375,481 and 39,000 shares of stock options, and 26,040 and no restricted stock units and recognized $348,000 and $853,000, or $0.01 and $0.03 per share, for the 2019 third quarter and nine months, and $151,000 and $466,000, or $0.01 and $0.02, per share, for each of the comparable 2018 periods, of non-cash stock-based compensation expense related to the grants. As of September 30, 2019, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $1,663,000, which is expected to be recognized over the next 14 quarters (see Note 10).

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, such as certain purchases of assets, with 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 September 30, 2019, the Bank’s Tier 1 leverage ratio was 15.91%. The Bank’s actual capital amounts and ratios, and the regulatory minimum ratios are presented in the following table.

	Regulatory
(Dollars in thousands)	Minimum			Well- Capitalized			September 30, 2019			December 31, 2018
Common equity Tier 1 capital		—			—		$	153,580		$	141,608
Tier 1 capital		—			—			179,883			167,911
Total capital		—			—			194,436			180,917
Average assets		—			—			1,130,642			1,059,461
Risk-weighted assets		—			—			1,120,179			993,374
Leverage ratio(1)		4.0	%		5.0	%		15.9	%		15.8	%
Common equity Tier 1 capital ratio(2)		7.0			6.5			13.7			14.3
Tier 1 capital ratio(3)		8.5			8.0			16.1			16.9
Total capital ratio(3)		10.5			10.0			17.4			18.2

(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 addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, as of January 1, 2019, the Bank is required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%. Since the FDIC’s new capital rule has been fully phased in, the minimum capital requirements plus the capital conservation buffer exceed the Prompt Corrective Action well-capitalized thresholds.

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as they relate to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 October 2019, the FASB voted 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 an impact on the Company’s accounting for estimated credit losses on its loans.

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Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Parenthetical) (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Statutory Federal income tax (provision) benefit percentage	21.00%	35.00%

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Funds Borrowed - Summary of Time Deposits of $100,000 or More (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Banking And Thrift [Abstract]
Three months or less	$ 84,392
Over three months through six months	66,100
Over six months through one year	197,893
Over one year	614,602
Total deposits	$ 962,987

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Leases - Schedule of Breakout of Operating leases (Detail) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 12,559
Other current liabilities	1,820
Operating lease liabilities	12,090
Total operating lease liabilities	$ 13,910
Weighted average remaining lease term	3 years 8 months 12 days
Weighted average discount rate	4.00%

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Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares		3 Months Ended				12 Months Ended
		Sep. 30, 2019		Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options beginning balance		498,714		501,043	144,666	320,626
Granted		0		1,104	374,377	39,000
Cancelled		(993)		(3,433)	(18,000)	(214,960)
Exercised	[1]	0		0	0	0
Number of options ending balance		497,721	[2]	498,714	501,043	144,666
Options exercisable	[2]	81,667
Exercise price per share, lower range limit beginning balance		$ 2.14		$ 2.14	$ 2.06	$ 2.14
Exercise price per share, upper range limit beginning balance		13.84		13.84	13.84	13.84
Exercise price per share, granted		0		6.55
Exercise price per share, cancelled		6.55
Exercise price per share, exercised	[1]	0		0	0	0
Exercise price per share, lower range limit ending balance		2.14	[2]	2.14	2.14	2.06
Exercise price per share, upper range limit ending balance		13.84	[2]	13.84	13.84	13.84
Exercise price per share, option exercisable lower range limit	[2]	2.14
Exercise price per share, option exercisable upper range limit	[2]	13.84
Weighted average exercise price, beginning balance		6.62		6.63	7.23	8.78
Weighted average exercise price, granted				6.55	6.48	5.46
Weighted average exercise price, cancelled		6.55		7.10	8.44	9.22
Weighted average exercise price, exercised	[1]	0		0	0	0
Weighted average exercise price, ending balance		6.62	[2]	6.62	6.63	7.23
Weighted average exercise price, options exercisable	[2]	$ 8.35
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, granted					5.21	5.27
Exercise price per share, cancelled				6.55	7.49	9.22
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, granted					6.55	5.58
Exercise price per share, cancelled				$ 7.49	$ 9.38	$ 9.24

[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 $0 for each of the 2019 and 2018 three and nine months ended September 30.

[2] The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at September 30, 2019 and the related exercise price of the underlying options, was $180,000 for outstanding options and $78,000 for exercisable options as of September 30, 2019. The remaining contractual life was 8.81 years for outstanding options and 5.95 years for exercisable options at September 30, 2019.

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Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares	3 Months Ended			9 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward
Number of options beginning balance	420,825	437,154	62,777	62,777
Number of options, granted	0	1,104	374,377		39,000
Number of options, cancelled	(993)	(1,433)	0
Number of options, vested	(3,778)	(16,000)	0
Number of options ending balance	416,054	420,825	437,154	416,054	62,777
Exercise price per share beginning balance, Lower limit	$ 2.14	$ 2.14	$ 2.14	$ 2.14
Exercise price per share beginning balance, Upper limit	6.55	7.10	7.10	7.10
Exercise price per share, Granted, Lower limit			5.21
Exercise price per share, Granted, Upper limit		7.10	6.55
Exercise price per share, Cancelled	6.55	6.55	0
Exercise price per share, Vested	2.61		0
Exercise price per share ending balance, Lower limit	2.14	2.14	2.14	2.14	$ 2.14
Exercise price per share ending balance, Upper limit	6.55	6.55	7.10	6.55	7.10
Grant price per share, granted		6.55
Grant price per share, cancelled, lower limit		2.22
Weighted average exercise price	6.25	6.21	4.59	4.59
Weighted average exercise price, granted		6.55	6.48
Weighted average exercise price, cancelled	6.55	6.55	0
Weighted average exercise price, vested	2.61	5.12	0
Weighted average exercise price	$ 6.28	$ 6.25	$ 6.21	$ 6.28	$ 4.59

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Income Taxes - Summary of Components of Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Current
Federal	$ (230)	$ (9,353)		$ (1,099)	$ (3,040)
State	(661)	(2,318)		(1,620)	(1,078)
Deferred
Federal	(887)	9,100		1,311	8,128
State	1,613	2,688		3,334	768
Net (provision) benefit for income taxes	$ (165)	$ 117	$ 4,138	$ 1,926	$ 4,778

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Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) $ in Thousands		9 Months Ended
	Apr. 02, 2018	Sep. 30, 2019		Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loans process of foreclosure		$ 53,539	[1]	$ 52,368	$ 49,495	[1]
Reserves against future losses		$ 6,032
Percentage of Allowance		100.00%			100.00%
Bank reserves against future losses	$ 17,351
Medallion Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loans process of foreclosure		$ 242,889
Reserves against future losses		$ 4,608
Percentage of Allowance		11.00%
Percentage of total gross loans		3.56%
Financing Receivables, 90 Days Past Due [Member] | Medallion Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserves against future losses		$ 4,608

[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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018.

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Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	$ (40)	$ (132)
Fair Value, Less than Twelve Months	4,252	10,045
Gross Unrealized Losses, Twelve Months and Over	(79)	(1,017)
Fair Value, Twelve Months and Over	7,845	31,130
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	(39)	(54)
Fair Value, Less than Twelve Months	4,083	4,616
Gross Unrealized Losses, Twelve Months and Over	(26)	(688)
Fair Value, Twelve Months and Over	5,075	24,871
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	(1)	(78)
Fair Value, Less than Twelve Months	169	5,429
Gross Unrealized Losses, Twelve Months and Over	(53)	(329)
Fair Value, Twelve Months and Over	$ 2,770	$ 6,259

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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at September 30, 2019 and December 31, 2018.

	As of September 30, 2019						As of December 31, 2018
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	706,393			62	%	$	587,038			58	%
Home improvement		230,726			20			183,155			18
Commercial		68,209			6			64,083			6
Medallion		136,954			12			183,606			18
Total gross loans		1,142,282			100	%		1,017,882			100	%
Allowance for loan losses		(43,113	)					(36,395	)
Total net loans	$	1,099,169					$	981,487

Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – June 30, 2019	$	668,540		$	209,549		$	64,442		$	145,944		$	1,088,475
Loan originations		82,662			42,641			4,750			—			130,053
Principal payments		(40,790	)		(20,729	)		(375	)		(4,013	)		(65,907	)
Charge-offs, net		(3,489	)		(51	)		(819	)		(1,535	)		(5,894	)
Transfer to loans in process of foreclosure, net		(3,429	)		—			—			(3,005	)		(6,434	)
Other		2,899			(684	)		211			(437	)		1,989
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – December 31, 2018	$	587,038		$	183,155		$	64,083		$	183,606		$	1,017,882
Loan originations		248,989			102,821			14,520			—			366,330
Principal payments		(113,680	)		(53,508	)		(9,789	)		(10,612	)		(187,589	)
Charge-offs, net		(10,853	)		(295	)		(819	)		(18,166	)		(30,133	)
Transfer to loans in process of foreclosure, net		(10,311	)		—			—			(15,573	)		(25,884	)
Other		5,210			(1,447	)		214			(2,301	)		1,676
Gross loans – September 30, 2019	$	706,393		$	230,726		$	68,209		$	136,954		$	1,142,282

Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the three and nine months ended September 30, 2019 and the three and six months ended September 30, 2018.

	Three Months Ended September 30,							Nine Months Ended September 30,				Six Months Ended September 30,
(Dollars in thousands)	2019				2018			2019				2018
Allowance for loan losses – beginning    balance	$	40,670			$	21,425		$	36,395			$	—		(1)
Charge-offs
Recreation		(5,444	)			(4,825	)		(16,366	)			(9,471	)
Home improvement		(568	)			(659	)		(1,655	)			(1,220	)
Commercial		(819	)			—			(819	)		—
Medallion		(2,378	)			(6,457	)		(20,408	)			(12,737	)
Total charge-offs		(9,209	)			(11,941	)		(39,248	)			(23,428	)
Recoveries
Recreation		1,955				1,318			5,513				3,217
Home improvement		517				367			1,360				606
Commercial	—					—		—					4
Medallion		843				110			2,242				304
Total recoveries		3,315				1,795			9,115				4,131
Net charge-offs(2)		(5,894	)			(10,146	)		(30,133	)			(19,297	)
Provision for loan losses		8,337				18,205			36,851				48,781
Allowance for loan losses – ending balance	$	43,113		(3)	$	29,484		$	43,113		(3)	$	29,484

(1) Beginning balance reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for the six months ended September 30, 2018.

(2) As of September 30, 2019, cumulative net charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $242,889, representing collection opportunities for the Company.

(3) Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

Summary of Composition of Allowance for Loan Losses by Type of Loan

The following tables set forth the composition of the allowance for loan losses by type as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	15,927		37	%		2.25	%
Home improvement		2,235		5			0.97
Commercial		—		—			0.00
Medallion		24,951		58			18.22
Total	$	43,113		100	%		3.77	%

December 31, 2018 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

Summary of Total Nonaccrual Loans and Foregone Interest

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)	September 30, 2019			December 31, 2018			September 30, 2018
Total nonaccrual loans	$	27,078		$	34,877		$	45,765
Interest foregone quarter to date		403			487			563
Amount of foregone interest applied    to principal in the quarter		75			166			350
Interest foregone year to date		915			1,153			1,032
Amount of foregone interest applied    to principal in the year		244			535			987
Interest foregone life to date		2,432			1,952			8,530
Amount of foregone interest applied    to principal life to date		655			1,214			3,412
Percentage of nonaccrual loans to gross loan    portfolio		2	%		3	%		4	%

Summary of Performance Status of Loan

The following tables present the performance status of loans as of September 30, 2019 and December 31, 2018.

September 30, 2019 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	699,685	$	6,708	$	706,393		0.95	%
Home improvement		230,487		239		230,726		0.10
Commercial		56,178		12,031		68,209		17.64
Medallion		128,854		8,100		136,954		5.91
Total	$	1,115,204	$	27,078	$	1,142,282		2.37	%

December 31, 2018 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	581,250	$	5,788	$	587,038		0.99	%
Home improvement		183,018		137		183,155		0.07
Commercial		60,249		3,834		64,083		5.98
Medallion		158,488		25,118		183,606		13.68
Total	$	983,005	$	34,877	$	1,017,882		3.43	%

Summary of Attributes of Nonperforming Loan Portfolio

The following tables provide additional information on attributes of the nonperforming loan portfolio as of September 30, 2019 and 2018, and December 31, 2018, all of which had an allowance recorded against the principal balance.

	September 30, 2019						For the Three Months Ended September 30, 2019				For the Nine Months Ended September 30, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With an allowance recorded
Recreation	$	6,708	$	6,708	$	256	$	6,687	$	152	$	6,921	$	366
Home improvement		239		239		4		243		2		245		2
Commercial		12,031		12,126		—		9,616		36		6,827		321
Medallion		8,100		8,660		3,160		13,418		27		11,279		39
Total nonperforming loans   with an allowance	$	27,078	$	27,733	$	3,420	$	29,964	$	217	$	25,272	$	728

	December 31, 2018						September 30, 2018						For the Three Months Ended September 30, 2018					Six Months Ended September 30, 2018
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment Recorded		Interest Income Recognized			Average Investment Recorded		Interest Income Recognized
With an allowance recorded
Recreation	$	5,788	$	5,788	$	204	$	5,075	$	5,075	$	180	$	5,494	$	106		$	4,496	$	231
Home improvement		137		137		3		167		167		3		178		—			119		—
Commercial		3,834		3,929		—		5,403		5,814		100		7,047		(82	)		5,838		(12	)
Medallion		25,118		26,237		22,035		38,057		39,038		10,085		55,065		101			54,917		215
Total nonperforming loans    with an allowance	$	34,877	$	36,091	$	22,242	$	48,702	$	50,094	$	10,368	$	67,784	$	125		$	65,370	$	434

Summary of Aging of Loans

The following tables show the aging of all loans as of September 30, 2019 and December 31, 2018.

	Days Past Due
September 30, 2019 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)		Recorded Investment 90 Days and Accruing
Recreation	$	20,615	$	6,771	$	4,431	$	31,817	$	651,122	$	682,939	$	—
Home improvement		687		280		228		1,195		232,804		233,999		—
Commercial		—		—		276		276		67,933		68,209		—
Medallion		31,062		1,756		3,188		36,006		96,541		132,547		—
Total	$	52,364	$	8,807	$	8,123	$	69,294	$	1,048,400	$	1,117,694	$	—

(1) Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs.

	Days Past Due
December 31, 2018 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)		Recorded Investment > 90 Days and Accruing
Recreation	$	18,483	$	5,655	$	4,020	$	28,158	$	539,051	$	567,209	$	—
Home improvement		715		283		135		1,133		184,528		185,661		—
Commercial		—		454		279		733		63,350		64,083		—
Medallion		8,689		3,652		15,720		28,061		148,774		176,835		—
Total	$	27,887	$	10,044	$	20,154	$	58,085	$	935,703	$	993,788	$	—

(1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

Summary of Troubled Debt Restructurings

The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2019.

(Dollars in thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans - 2019 three months		1	$	758	$	758
Recreation loans - 2019 three months		40		587		505
Medallion loans - 2019 nine months		10	$	4,041	$	4,041
Recreation loans - 2019 nine months		276		4,109		2,619

The following table shows the troubled debt restructurings which the Company entered into during the three and nine months ended September 30, 2018.

(Dollars in thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans - 2018 three months		10	$	4,810	$	4,810
Medallion loans - 2018 nine months		17	$	7,505	$	7,505

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

The following tables show the activity of the loans in process of foreclosure, which relate only to the recreation and medallion loans, for the three and nine months ended September 30, 2019.

Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – June 30, 2019	$	955		$	51,413		$	52,368
Transfer from loans, net		3,429			3,005			6,434
Sales		(1,604	)		(387	)		(1,991	)
Cash payments received		—			(1,556	)		(1,556	)
Collateral valuation adjustments		(1,603	)		(113	)		(1,716	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loans in process of foreclosure – December 31, 2018	$	1,503		$	47,992		$	49,495
Transfer from loans, net		10,311			15,573			25,884
Sales		(5,715	)		(899	)		(6,614	)
Cash payments received		—			(6,100	)		(6,100	)
Collateral valuation adjustments		(4,922	)		(4,204	)		(9,126	)
Loans in process of foreclosure – September 30, 2019	$	1,177		$	52,362		$	53,539

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Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Operating Lease Costs and Additional Information

The following table presents the operating lease costs and additional information for the three and nine months ended September 30, 2019.

(Dollars in thousands)	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
Operating lease costs	$	531	$	1,593
Other information
Cash paid for amounts included in the measurement of lease    liabilities:
Operating cash flows from operating leases		556		1,680
Right-of-use asset obtained in exchange for lease liability		29		(1	)

Schedule of Breakout of Operating leases

The following table presents the breakout of the operating leases as of September 30, 2019.

(Dollars in thousands)	September 30, 2019
Operating lease right-of-use assets	$	12,559
Other current liabilities		1,820
Operating lease liabilities		12,090
Total operating lease liabilities		13,910
Weighted average remaining lease term	3.7 years
Weighted average discount rate		4.00	%

Schedule of Maturities of the Lease Liabilities

At September 30, 2019, maturities of the lease liabilities were as follows.

(Dollars in thousands)
Remainder of 2019	$	600
2020		2,397
2021		2,295
2022		2,228
2023		2,136
Thereafter		6,042
Total lease payments	$	15,698
Less imputed interest		1,788
Total operating lease liabilities	$	13,910

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Funds Borrowed

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Funds Borrowed

(7) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows:

	Payments Due for the Twelve Months Ending September 30,
(Dollars in thousands)	2020		2021		2022		2023		2024		Thereafter		September 30, 2019		December 31, 2018		Interest Rate (1)
Deposits	$	348,385	$	182,587	$	225,560	$	112,413	$	94,042	$	—	$	962,987	$	848,040		2.37	%
SBA debentures and    borrowings		23,093		8,500		—		5,000		5,000		32,500		74,093		80,099		3.41
Retail and privately placed    notes		—		33,625		—		—		36,000		—		69,625		33,625		8.61
Notes payable to banks		7,652		27,370		280		280		70		—		35,652		59,615		4.25
Preferred securities		—		—		—		—		—		33,000		33,000		33,000		4.24
Other borrowings		11,758		—		—		—		—		—		11,758		7,649		2.09
Total	$	390,888	$	252,082	$	225,840	$	117,693	$	135,112	$	65,500	$	1,187,115	$	1,062,028		2.91	%

(1) Weighted average contractual rate as of September 30, 2019.

(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into pools that are sold to the Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial institutions. Additionally, a brokerage fee is paid, depending on the maturity of the deposits, which averages less than 0.15%. Interest on the deposits is accrued daily and paid monthly, quarterly, semiannually, or at maturity. All time deposits are in denominations of less than $250,000 and have been originated through certificates of deposit broker relationships. The table presents time deposits of $100,000 or more by their maturity:

(Dollars in thousands)	September 30, 2019
Three months or less	$	84,392
Over three months through six months		66,100
Over six months through one year		197,893
Over one year		614,602
Total deposits	$	962,987

(B) DZ LOAN

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 (DZ loan). The line, which currently terminates on November 15, 2019, is under negotiation to be extended.

Borrowings under Trust III’s DZ loan are collateralized by Trust III’s assets. MFC is the servicer of the loans owned by Trust III. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. See Note 19 for more information about Trust III and the DZ loan.

(C) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1% fee, which was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33,485,000 in principal into a new loan by the SBA to FSVC in the principal amount of $34,024,756 (the SBA Loan). In connection with the SBA Loan, FSVC executed a Note (the SBA Note), with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34,024,756. The SBA Loan bears interest at a rate of 3.25% per annum, required a minimum of $5,000,000 of principal and interest to be paid on or before February 1, 2018 (which was paid) and a minimum of $7,600,000 of principal and interest to be paid on or before March 27, 2019 (which was paid), and all remaining unpaid principal and interest on or before February 1, 2020, the final maturity date. The SBA Loan agreement contains covenants and events of defaults, including, without limitation, payment defaults, breaches of representations and warranties and covenants defaults. As of September 30, 2019, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $74,093,000 was outstanding, including $23,093,000 under the SBA Note.

(D) 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 September 30, 2019.

(Dollars in thousands)

Borrower

# of Lenders/ Notes

Note Dates

Maturity Dates

Type

Note Amounts

Balance Outstanding at September 30, 2019

Payment

Average Interest Rate at September 30, 2019

Interest Rate Index(1)

Medallion Financial    Corp.

5/5

4/11 - 8/14

9/20 - 3/21

Term loans and demand notes secured by pledged loans(2)

$

23,231

(2)

$

23,231

Interest only(3)

4.63

%

Various(3)

Medallion Chicago

2/23

11/11 - 12/11

2/21

Term loans secured by owned Chicago medallions(4)

18,449

11,231

$134 of principal & interest paid monthly

3.50

%

N/A

Medallion Funding

1/1

11/18

12/23

1,400

1,190

$70 principal & interest paid quarterly

4.00

%

N/A

$

43,080

$

35,652

(1) At September 30, 2019, 30 day LIBOR was 2.02%, 360 day LIBOR was 2.03%, and the prime rate was 5.00%.

(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 from $12 to $81.

(4) Guaranteed by the Company.

In March 2019, the Company used some of the proceeds of the privately placed notes to pay off one of the notes payable to banks at a 50% discount, resulting in a gain on debt extinguishment of $4,145,000 in the 2019 first quarter.

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 19 for more information.

On July 6, 2019, the Company paid $10,819,000 at maturity in satisfaction of all its outstanding obligations under one of its credit facilities. In connection with this payment, the Company obtained a waiver from one of its other lenders, with a term note of $3,096,000, of certain resulting repayment and other obligation, which waiver expires on December 1, 2019.

(E) RETAIL AND PRIVATELY PLACED NOTES

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, the private placement was reopened and an additional $6,000,000 of 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.

(F) 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 (2.09% at September 30, 2019) plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2,000,000 of the preferred securities were repurchased from a third party investor. At September 30, 2019, $33,000,000 was outstanding on the preferred securities.

(G) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 15 for more details). At December 31, 2018, the total outstanding on these notes was $7,149,000 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. As of September 30, 2019, $7,258,000 was outstanding on these notes. Additionally, RPAC has a short term promissory note to an unrelated party for $500,000 due on December 31, 2019.

In September 2019, the Company issued federal funds of $4,000,000 at a 2.25% interest rate, which funds were repaid in October 2019.

(H) COVENANT COMPLIANCE

Certain of our debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth, which in the event of noncompliance could preclude their ability to pay dividends to the Company.

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Consolidated Statements of Other Comprehensive Income/(Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	[1]
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss) after taxes/net decrease on net assets resulting from operations	$ 7,435	$ (3,846)	$ 2,187	$ (32,604)
Other comprehensive income (loss), net of tax	95	(214)	1,322	(469)
Total comprehensive income (loss)	7,530	(4,060)	3,509	(33,073)
Less comprehensive income attributable to the noncontrolling interest	2,460	851	3,484	1,614
Total comprehensive income (loss) attributable to Medallion Financial Corp.	$ 5,070	$ (4,911)	$ 25	$ (34,687)

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Consolidated Balance Sheet - USD ($) $ in Thousands		Sep. 30, 2019		Dec. 31, 2018
Assets
Cash	[1]	$ 21,724		$ 23,842
Federal funds sold		33,291		33,871
Equity investments		9,880		9,197
Investment securities		47,422		45,324
Loans		1,142,282		1,017,882
Allowance for losses		(43,113)	[2]	(36,395)
Net loans receivable		1,099,169		981,487
Accrued interest receivable		8,040		7,413
Property, equipment, and right-of-use lease asset, net		13,544		1,222
Loan collateral in process of foreclosure	[3]	53,539		49,495
Goodwill		150,803		150,803
Intangible assets, net		52,898		53,982
Other assets		29,444		25,210
Total assets		1,519,754		1,381,846
Liabilities
Accounts payable and accrued expenses	[4]	18,651		18,789
Accrued interest payable		3,511		3,852
Deposits		962,987		848,040
Short-term borrowings		42,503		55,178
Deferred tax liabilities and other tax payables		5,597		6,973
Operating lease liabilities		12,090
Long-term debt		181,625		158,810
Total liabilities		1,226,964		1,091,642
Commitments and contingencies	[5]
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- 27,560,539 shares at September 30, 2019 and 27,385,600 shares at December 31, 2018 issued)		276		274
Additional paid in capital		275,143		274,292
Treasury stock (2,951,243 shares at September 30, 2019 and December 31, 2018)		(24,919)		(24,919)
Accumulated other comprehensive income (loss)		1,240		(82)
Retained earnings		11,746		13,043
Total stockholders’ equity		263,486		262,608
Non-controlling interest in consolidated subsidiaries		29,304		27,596
Total equity		292,790		290,204
Total liabilities and equity		$ 1,519,754		$ 1,381,846
Number of shares outstanding		24,609,296		24,434,357
Book value per share		$ 10.71		$ 10.75

[1] Includes restricted cash of $2,970 as of September 30, 2019.

[2] Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

[3] 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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018.

[4] Includes the short-term portion of lease liabilities of $1,820 as of September 30, 2019. Refer to Note 8 for more details.

[5] Refer to Note 14 for details.

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Investment Securities (Bank Holding Company Accounting)

9 Months Ended

Sep. 30, 2019

Schedule Of Investments [Abstract]

Investment Securities (Bank Holding Company Accounting)

(3) INVESTMENT SECURITIES (Bank Holding Company Accounting)

Fixed maturity securities available for sale as of September 30, 2019 and December 31, 2018 consisted of the following:

September 30, 2019 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US    federal agencies	$	34,431	$	569	$	(65	)	$	34,935
State and municipalities		12,279		262		(54	)		12,487
Total	$	46,710	$	831	$	(119	)	$	47,422

December 31, 2018 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of    US federal agencies	$	32,184	$	15	$	(742	)	$	31,457
State and municipalities		14,239		35		(407	)		13,867
Total	$	46,423	$	50	$	(1,149	)	$	45,324

The amortized cost and estimated market value of investment securities as of September 30, 2019 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	$	35	$	35
Due after one year through five years		12,416		12,497
Due after five years through ten years		10,267		10,417
Due after ten years		23,992		24,473
Total	$	46,710	$	47,422

The following tables show information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	Less than Twelve Months					Twelve Months and Over
September 30, 2019 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations    of US federal agencies	$	(39	)	$	4,083	$	(26	)	$	5,075
State and municipalities		(1	)		169		(53	)		2,770
Total	$	(40	)	$	4,252	$	(79	)	$	7,845

	Less than Twelve Months					Twelve Months and Over
December 31, 2018 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of    US federal agencies	$	(54	)	$	4,616	$	(688	)	$	24,871
State and municipalities		(78	)		5,429		(329	)		6,259
Total	$	(132	)	$	10,045	$	(1,017	)	$	31,130

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.

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Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting

(11) SEGMENT REPORTING (Bank Holding Company Accounting)

Under Bank Holding Company Accounting, 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.

Prior to April 2, 2018, the Company had one business segment, its lending and investing operations. This segment originated and serviced medallion, secured commercial, and consumer loans, and invested in both marketable and nonmarketable securities.

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 in all fifty states, with the highest concentrations in Texas, Florida, and California at 16%, 10%, and 10% of loans outstanding and with no other states over 10% as of September 30, 2019. 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 62%, 18%, and 12% of the segment portfolio as of September 30, 2019. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, solar panels, and windows, at 25%, 20%, 13%, and 13% of total home improvement loans outstanding, and with no other product lines over 10% as of September 30, 2019. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 57% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the taxicab medallions, taxicabs, and related assets, of which 88% were in New York City as of September 30, 2019.

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 part of the 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 for the three and nine months ended September 30, 2019. In addition, beginning in fiscal year 2019, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been re-allocated to corporate and other investments for all periods presented.

The following tables present segment data as of September 30, 2019 and for the three and nine months then ended, and as of September 30, 2018, and for the three and six months then ended.

	Consumer Lending																Corp.
Three Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	26,147		$	5,184		$	1,842			$	975		$	—		$	492		$	34,640
Total interest expense		3,578			1,309			741				1,935			47			1,615			9,225
Net interest income (loss)		22,569			3,875			1,101				(960	)		(47	)		(1,123	)		25,415
Provision for loan losses		6,744			(629	)		364				1,858			—			—			8,337
Net interest income (loss)    after loss provision		15,825			4,504			737				(2,818	)		(47	)		(1,123	)		17,078
Sponsorship and race winnings		—			—			—				—			7,940			—			7,940
Race team related expenses		—			—			—				—			(2,663	)		—			(2,663	)
Other income (expense)		(6,181	)		(2,000	)		563				(2,762	)		(1,784	)		(2,591	)		(14,755	)
Net income (loss) before taxes		9,644			2,504			1,300				(5,580	)		3,446			(3,714	)		7,600
Income tax benefit (provision)		(2,497	)		(648	)		(314	)			1,345			(831	)		2,780			(165	)
Net income (loss)	$	7,147		$	1,856		$	986			$	(4,235	)	$	2,615		$	(934	)	$	7,435
Balance Sheet Data
Total loans, net	$	690,466		$	228,491		$	64,646			$	112,003		$	—		$	3,563		$	1,099,169
Total assets		702,541			239,991			87,486				226,868			33,134			229,734			1,519,754
Total funds borrowed		559,995			190,871			69,658				180,040			7,758			178,793			1,187,115
Selected Financial Ratios
Return on average assets		4.14	%		3.22	%		4.49	%			(7.26	)%		31.13	%		(1.54	)%		1.31	%
Return on average equity		20.69			16.09			22.45				(36.30	)	NM				(7.81	)		6.81
Interest yield		15.35			9.46			11.09				3.30		N/A			N/A				11.87
Net interest margin		13.25			7.07			6.63				(3.25	)	N/A			N/A				8.71
Reserve coverage		2.25			0.97			0.00		(1)		18.22		N/A			N/A				3.77
Delinquency status(2)		0.69			0.11			0.40		(1)		2.41		N/A			N/A				0.73
Charge-off ratio		2.05			0.09			4.93		(3)		5.20		N/A			N/A				2.17

(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.
Nine Months Ended September 30, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	72,996		$	14,187		$	5,359			$	2,482		$	—		$	1,674		$	96,698
Total interest expense		9,541			3,252			2,108				5,435			119			5,313			25,768
Net interest income (loss)		63,455			10,935			3,251				(2,953	)		(119	)		(3,639	)		70,930
Provision for loan losses		19,925			733			364				15,374			—			455			36,851
Net interest income (loss)    after loss provision		43,530			10,202			2,887				(18,327	)		(119	)		(4,094	)		34,079
Sponsorship and race winnings		—			—			—				—			16,008			—			16,008
Race team related expenses		—			—			—				—			(7,211	)		—			(7,211	)
Other (expense)		(17,501	)		(5,356	)		(532	)			(8,106	)		(5,298	)		(5,822	)		(42,615	)
Net income (loss) before taxes		26,029			4,846			2,355				(26,433	)		3,380			(9,916	)		261
Income tax benefit (provision)		(6,741	)		(1,255	)		(568	)			6,375			(815	)		4,930			1,926
Net income (loss)	$	19,288		$	3,591		$	1,787			$	(20,058	)	$	2,565		$	(4,986	)	$	2,187
Balance Sheet Data
Total loans, net	$	690,466		$	228,491		$	64,646			$	112,003		$	—		$	3,563		$	1,099,169
Total assets		702,541			239,991			87,486				226,868			33,134			229,734			1,519,754
Total funds borrowed		559,995			190,871			69,658				180,040			7,758			178,793			1,187,115
Selected Financial Ratios
Return on average assets		4.01	%		2.50	%		2.69	%			(10.82	)%		10.76	%		(2.90	)%		(0.12	)%
Return on average equity		17.42			11.34			13.43				(54.12	)	NM				(11.52	)		(0.60	)
Interest yield		15.45			9.44			11.59				2.50		N/A			N/A				11.68
Net interest margin		13.43			7.27			7.03				(2.97	)	N/A			N/A				8.57
Reserve coverage		2.25			0.97			0.00		(1)		18.22		N/A			N/A				3.77
Delinquency status(2)		0.69			0.11			0.40		(1)		2.41		N/A			N/A				0.73
Charge-off ratio		2.30			0.20			1.77		(3)		18.29		N/A			N/A				3.92

(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 September 30, 2018 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	24,001		$	3,968		$	2,370			$	2,126		$	—		$	687		$	33,152
Total interest expense		2,306			709			500				3,672			40			1,660			8,887
Net interest income (loss)		21,695			3,259			1,870				(1,546	)		(40	)		(973	)		24,265
Provision for loan losses		4,423			598			(75	)			13,259			—			—			18,205
Net interest income (loss) after loss    provision		17,272			2,661			1,945				(14,805	)		(40	)		(973	)		6,060
Sponsorship and race winning		—			—			—				—			5,371			—			5,371
Race team related expenses		—			—			—				—			(2,876	)		—			(2,876	)
Other income (expense)		(3,160	)		400			(945	)			(4,077	)		(1,887	)		(2,849	)		(12,518	)
Net income (loss) before taxes		14,112			3,061			1,000				(18,882	)		568			(3,822	)		(3,963	)
Income tax benefit (provision)		(3,979	)		(863	)		(232	)			4,371			(107	)		927			117
Net income (loss)	$	10,133		$	2,198		$	768			$	(14,511	)	$	461		$	(2,895	)	$	(3,846	)
Balance Sheet Data as of September 30, 2018
Total loans, net	$	572,995		$	168,781		$	77,886			$	235,827		$	—		$	4,572		$	1,060,061
Total assets		582,610			175,333			88,035				369,763			36,237			319,429			1,571,407
Total funds borrowed		431,868			132,914			53,323				399,750			7,614			239,605			1,265,074
Balance Sheet Data as of December 31, 2018
Total loans, net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			90,264				273,501			29,925			208,518			1,381,846
Total funds borrowed		434,527			143,815			51,266				294,465			7,649			130,306			1,062,028
Selected Financial Ratios as of September 30, 2018
Return on average assets		6.80	%		4.57	%		3.50	%			(15.23	)%		4.94	%		(4.29	)%		(1.19	)%
Return on average equity		27.77			19.99			7.47			NM				42.83			(15.05	)		(6.59	)
Interest yield		15.87			8.10			12.33				3.41		N/A			N/A				10.75
Net interest margin		14.34			6.65			9.73				(2.48	)	N/A			N/A				7.94
Reserve coverage		0.50			0.51			0.13				9.81		N/A			N/A				2.71
Delinquency status(2)		0.55			0.10		0.51			(1)		4.06		N/A			N/A				1.29
Charge-off ratio		3.19			1.34		0.00			(1)		10.35		N/A			N/A				3.69

(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.

	Consumer Lending																Corp.
Six Months Ended September 30, 2018 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			and Other Investments			Consolidated
Total interest income	$	46,133		$	8,605		$	4,587			$	5,315		$	—		$	1,156		$	65,796
Total interest expense		4,442			1,448			985				7,045			81			2,811			16,812
Net interest income (loss)		41,691			7,157			3,602				(1,730	)		(81	)		(1,655	)		48,984
Provision for loan losses		9,133			1,475			100				38,073			—			—			48,781
Net interest income (loss) after loss    provision		32,558			5,682			3,502				(39,803	)		(81	)		(1,655	)		203
Sponsorship and race winning		—			—			—				—			10,599			—			10,599
Race team related expenses		—			—			—				—			(5,416	)		—			(5,416	)
Other (expense)		(8,680	)		(1,285	)		(1,887	)			(6,888	)		(4,124	)		(4,390	)		(27,254	)
Net income (loss) before taxes		23,878			4,397			1,615				(46,691	)		978			(6,045	)		(21,868	)
Income tax benefit (provision)		(6,141	)		(1,159	)		(368	)			10,528			(150	)		1,428			4,138
Net income (loss)	$	17,737		$	3,238		$	1,247			$	(36,163	)	$	828		$	(4,617	)	$	(17,730	)
Balance Sheet Data as of September 30, 2018
Total loans, net	$	572,995		$	168,781		$	77,886			$	235,827		$	—		$	4,572		$	1,060,061
Total assets		582,610			175,333			88,035				369,763			36,237			319,429			1,571,407
Total funds borrowed		431,868			132,914			53,323				399,750			7,614			239,605			1,265,074
Balance Sheet Data as of December 31, 2018
Total loans, net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			90,264				273,501			29,925			208,518			1,381,846
Total funds borrowed		434,527			143,815			51,266				294,465			7,649			130,306			1,062,028
Selected Financial Ratios as of September 30, 2018
Return on average assets		6.14	%		3.42	%		2.81	%			(18.49	)%		4.46	%		(3.55	)%		(2.51	)%
Return on average equity		25.84			15.22			6.05			NM				38.67			(11.16	)		(13.34	)
Interest yield		15.88			8.94			13.48				4.03		N/A			N/A				10.91
Net interest margin		14.35			7.44			10.58				(1.31	)	N/A			N/A				8.17
Reserve coverage		0.50			0.51			0.13				9.81		N/A			N/A				2.71
Delinquency status(2)		0.55			0.10		0.51			(1)		4.06		N/A			N/A				1.29
Charge-off ratio		3.26			1.27		0.00			(1)		9.66		N/A			N/A				3.53

(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.

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Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate fair value of restricted stock vested	$ 0	$ 32,000	$ 736,000	$ 1,241,000
Aggregate fair value of restricted stock outstanding	$ 1,585,000		$ 1,585,000
Remaining vesting period of restricted stock			2 years 8 months 1 day

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Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards	$ 87,433
Net operating loss carryforwards expiration period	expire at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets	$ 20,704
December 31, 2016 To December 31, 2035 [Member]
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards	$ 1,712

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Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Statutory Federal income tax (provision) benefit at 21%	$ (1,616)	$ 877		$ (332)	$ 8,106
State and local income taxes, net of federal income tax benefit	(547)	(107)		(113)	994
Revaluation of net operating losses	876			380
Appreciation of Medallion Bank					(1,974)
Utilization of carry forwards		(247)			(910)
Change in state income tax accruals				600
Change in effective state income tax rate	608			916	(1,358)
Income attributable to non-controlling interest	451			451
Non deductible expenses		(215)			(403)
Other	63	(191)		24	323
Net (provision) benefit for income taxes	$ (165)	$ 117	$ 4,138	$ 1,926	$ 4,778

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Funds Borrowed - Additional Information (Detail) - USD ($)				1 Months Ended				3 Months Ended		9 Months Ended			12 Months Ended
	Jul. 06, 2019	Dec. 31, 2007	Jun. 30, 2007	Sep. 30, 2019	Mar. 31, 2019	Nov. 30, 2018	Apr. 30, 2016	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	[1]	Dec. 31, 2018	Aug. 31, 2019	Dec. 31, 2017	Dec. 31, 2008
Debt Instrument [Line Items]
Pay off one of the notes payable discount rate						50.00%
Gain on debt extinguishment								$ 4,145,000		$ 4,145,000
Repayments of credit facilities	$ 10,819,000
Waiver of loan from lender	$ 3,096,000
Waiver expiry date										Dec. 01, 2019
Gain loss on sales of loans net									$ 5,488,000		$ 5,488,000
Issue of common stock				27,560,539						27,560,539			27,385,600
Short term promissory note				$ 42,503,000						$ 42,503,000			$ 55,178,000
Federal Funds Issued				4,000,000
Federal Funds, Interest Rate										2.25%
Richard Petty [Member]
Debt Instrument [Line Items]
Maturity date													Mar. 31, 2020
Loan amount													$ 7,149,000
Annual interest rate													2.00%
Outstanding loan amount				7,258,000						$ 7,258,000
Travis Burt [Member]
Debt Instrument [Line Items]
Maturity date										Dec. 31, 2019
Short term promissory note				500,000						$ 500,000
Preferred Securities [Member]
Debt Instrument [Line Items]
Sale of preferred securities			$ 35,000,000
Issue of common stock			1,083
Maturity date										Sep. 30, 2037
Preferred securities outstanding				$ 33,000,000						$ 33,000,000
Preferred Securities [Member] | 90 day LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate										2.09%
Preferred Securities [Member] | LIBOR Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate										2.13%
Unsecured Debt [Member] | Preferred Securities [Member]
Debt Instrument [Line Items]
Aggregate principal amount of unsecured junior subordinated notes			$ 36,083,000
Third Party Investors [Member] | Preferred Securities [Member]
Debt Instrument [Line Items]
Preferred securities repurchased from a third party investor		$ 2,000,000
Dz Bank [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage						4.00%
Debt instrument face amount						$ 1,400,000
Debt instrument expiration date						2023-12
Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Loan commitment term										4 years 6 months
Commitment fee percentage										1.00%
Principal amount of loan															$ 34,024,756
Debt instrument interest rate Percentage				3.25%						3.25%
Debt instrument commitments amount fully utilized				$ 172,485,000						$ 172,485,000
Debt instrument commitments available				3,000,000						3,000,000
Debt instrument outstanding amount				74,093,000						74,093,000
Debt instrument remaining amount				23,093,000						23,093,000
FSVC's [Member]
Debt Instrument [Line Items]
Principal amount of loan															$ 33,485,000
Commercial Paper [Member] | DZ Loan [Member] | Taxi Medallion Loan Trust III [Member]
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity																$ 200,000,000
Retail and Privately Placed Notes [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage					8.25%		9.00%	8.25%
Aggregate principal amount					$ 30,000,000		$ 33,625,000	$ 30,000,000						$ 6,000,000
Maturity date					2024		2021
Gain loss on sales of loans net								$ 4,145,000
Net proceeds from offering							$ 31,786,000
Minimum [Member]
Debt Instrument [Line Items]
Time deposits				$ 250,000						250,000
Minimum [Member] | Small Business Administration Debentures and Borrowings [Member] | Paid on or Before February 1, 2018 [Member]
Debt Instrument [Line Items]
Debt instrument minimum annual payment										5,000,000
Minimum [Member] | Small Business Administration Debentures and Borrowings [Member] | Paid on or Before February 1, 2019 [Member]
Debt Instrument [Line Items]
Debt instrument minimum annual payment										$ 7,600,000
Brokerage [Member] | Maximum [Member]
Debt Instrument [Line Items]
Average brokerage fee percentage in relation to the maturity of deposits										0.15%

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease costs	$ 531	$ 1,593
Operating cash flows from operating leases	556	1,680
Right-of-use asset obtained in exchange for lease liability	$ 29	$ (1)

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Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Sharebased Compensation Arrangement By Sharebased Payment Award Stock Options Shares Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract]
Risk free interest rate		2.39%	2.82%
Expected dividend yield		0.79%	4.86%
Expected life of option in years	[1]	6 years 3 months	6 years
Expected volatility	[2]	48.45%	30.00%

[1] Expected life is calculated using the simplified method.

[2] We determine our expected volatility based on our historical volatility.

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Loans and Allowance for Loan Losses - Summary Composition of the Allowance for Loan Losses by Type (Detail) - USD ($) $ in Thousands	Sep. 30, 2019		Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 43,113	[1]	$ 40,670	$ 36,395	$ 29,484	$ 21,425
Percentage of Allowance	100.00%			100.00%
Allowance as a Percent of Loan Category	3.77%			3.58%
Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 15,927			$ 6,856
Percentage of Allowance	37.00%			19.00%
Allowance as a Percent of Loan Category	2.25%			1.17%
Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 2,235			$ 1,796
Percentage of Allowance	5.00%			5.00%
Allowance as a Percent of Loan Category	0.97%			0.98%
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Allowance as a Percent of Loan Category	0.00%			0.00%
Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 24,951			$ 27,743
Percentage of Allowance	58.00%			76.00%
Allowance as a Percent of Loan Category	18.22%			15.11%

[1] Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

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Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019		Dec. 31, 2018		Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 1,117,694	[1]	$ 993,788	[2]
Allowance for losses	(43,113)	[3]	(36,395)		$ (40,670)	$ (29,484)	$ (21,425)
Net loans receivable	1,099,169		981,487			$ 1,060,061
Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	1,142,282		1,017,882		1,088,475
Allowance for losses	(43,113)		(36,395)
Net loans receivable	$ 1,099,169		$ 981,487
Percentage of total gross loans	100.00%		100.00%
Recreation [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 682,939	[1]	$ 567,209	[2]
Allowance for losses	(15,927)		(6,856)
Recreation [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 706,393		$ 587,038		668,540
Percentage of total gross loans	62.00%		58.00%
Home Improvement [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 233,999	[1]	$ 185,661	[2]
Allowance for losses	(2,235)		(1,796)
Home Improvement [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 230,726		$ 183,155		209,549
Percentage of total gross loans	20.00%		18.00%
Commercial [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 68,209		$ 64,083		64,442
Percentage of total gross loans	6.00%		6.00%
Medallion [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 132,547	[1]	$ 176,835	[2]
Allowance for losses	(24,951)		(27,743)
Medallion [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 136,954		$ 183,606		$ 145,944
Percentage of total gross loans	12.00%		18.00%

[1] Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs.

[2] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

[3] Includes $4,608 of a general reserve for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 11% of the total allowance, and 3.56% of the medallion loans under 90 days past due as of September 30, 2019. This figure excludes $17,351 of a general reserve on loans at the Bank, which was netted against loan balances at consolidation on April 2, 2018. Subsequent to April 2, 2018, the Bank recorded general reserves of $6,032.

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Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) - Additional Information (Detail) - Capital Purchase Program [Member] - USD ($)			9 Months Ended
	Jul. 21, 2011	Feb. 27, 2009	Sep. 30, 2019
Series ABC and D Non-cumulative Perpetual Preferred Stock [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Aggregate purchase price		$ 21,498,000
Redemption of preferred stock			$ 4,000,000
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Aggregate purchase price	$ 26,303,000
Percentage of dividend payment rate			9.00%
U.S. Treasury Securities [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
US Treasury shares purchased	26,303

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Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2019 USD ($)
Commitments And Contingencies [Abstract]
Employment agreements expiration description	Employment agreements expire at various dates through 2024
Future minimum payments	$ 6,061,000
Lease expiration date	Nov. 30, 2027
Minimal rental commitments	$ 15,698,000

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Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2019	Sep. 30, 2019
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure - beginning balance		$ 52,368	$ 49,495	[1]
Transfer from loans, net		6,434	25,884
Sales		(1,991)	(6,614)
Cash payments received		(1,556)	(6,100)
Collateral valuation adjustments		(1,716)	(9,126)
Loans in process of foreclosure – ending balance	[1]	53,539	53,539
Recreation [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure - beginning balance		955	1,503
Transfer from loans, net		3,429	10,311
Sales		(1,604)	(5,715)
Collateral valuation adjustments		(1,603)	(4,922)
Loans in process of foreclosure – ending balance		1,177	1,177
Medallion [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure - beginning balance		51,413	47,992
Transfer from loans, net		3,005	15,573
Sales		(387)	(899)
Cash payments received		(1,556)	(6,100)
Collateral valuation adjustments		(113)	(4,204)
Loans in process of foreclosure – ending balance		$ 52,362	$ 52,362

[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 $6,091 as of September 30, 2019 and $3,134 as of December 31, 2018.

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Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2019		Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	$ 69,294		$ 58,085
Current	1,048,400		935,703
Total	1,117,694	[1]	993,788	[2]
Accruing	0		0
31-60 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	52,364		27,887
61-90 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	8,807		10,044
91+ [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	8,123		20,154
Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	31,817		28,158
Current	651,122		539,051
Total	682,939	[1]	567,209	[2]
Accruing	0		0
Recreation [Member] | 31-60 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	20,615		18,483
Recreation [Member] | 61-90 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	6,771		5,655
Recreation [Member] | 91+ [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	4,431		4,020
Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	1,195		1,133
Current	232,804		184,528
Total	233,999	[1]	185,661	[2]
Accruing	0		0
Home Improvement [Member] | 31-60 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	687		715
Home Improvement [Member] | 61-90 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	280		283
Home Improvement [Member] | 91+ [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	228		135
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	276		733
Current	67,933		63,350
Total	68,209	[1]	64,083	[2]
Accruing	0		0
Commercial Loans [Member] | 61-90 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60			454
Commercial Loans [Member] | 91+ [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	276		279
Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	36,006		28,061
Current	96,541		148,774
Total	132,547	[1]	176,835	[2]
Accruing	0		0
Medallion [Member] | 31-60 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	31,062		8,689
Medallion [Member] | 61-90 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	1,756		3,652
Medallion [Member] | 91+ [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60	$ 3,188		$ 15,720

[1] Excludes loan premiums of $6,161 resulting from purchase price accounting and $18,427 of capitalized loan origination costs.

[2] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

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Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Net change in unrealized Income on investments, net of tax	$ 95	$ 558	$ 669	$ (214)	$ (255)	$ 1,322	$ (82)

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Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands		3 Months Ended							6 Months Ended		9 Months Ended
		Sep. 30, 2019		Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018		Jun. 30, 2018	Sep. 30, 2018		Sep. 30, 2019		Sep. 30, 2018		Dec. 31, 2018
Segment Reporting Disclosure [Line Items]
Total interest income		$ 34,640				$ 33,152			$ 65,796		$ 96,698
Total interest expense		9,225	[1]			8,887	[1]		16,812		25,768	[1]	$ 20,363	[1],[2]
Net interest income/net investment income		25,415				24,265			48,984		70,930		49,466	[2]
Provision for loan losses		8,337				18,205			48,781		36,851		48,781	[2]
Net interest income (loss) after loss provision		17,078				6,060			203		34,079		685	[2]
Sponsorship and race winnings		7,940				5,371			10,599		16,008		10,599	[2]
Race team related expenses		(2,663)				(2,876)			(5,416)		(7,211)		(5,416)	[2]
Other income (expense)		(14,755)				(12,518)			(27,254)		(42,615)
Income (loss) before income taxes/net investment loss before taxes		7,600	[3]			(3,963)	[3]		(21,868)		261	[3]	(25,434)	[2],[3]
Income tax benefit (provision)		(165)				117			4,138		1,926		4,778
Net income (loss) after taxes/net decrease on net assets resulting from operations		7,435		$ (6,643)	$ 1,395	(3,846)		$ (13,884)	(17,730)		2,187		(32,604)	[2]
Balance Sheet Data
Total loans, net		1,099,169				1,060,061			1,060,061		1,099,169		1,060,061		$ 981,487
Total assets		1,519,754				1,571,407			1,571,407		1,519,754		1,571,407		1,381,846
Total funds borrowed		$ 1,187,115				$ 1,265,074			$ 1,265,074		$ 1,187,115		1,265,074		1,062,028
Selected Financial Ratios
Return on average assets		1.31%				(1.19%)			(2.51%)		(0.12%)
Return on average equity		6.81%				(6.59%)			(13.34%)		(0.60%)
Interest yield		11.87%				10.75%			10.91%		11.68%
Net interest margin		8.71%				7.94%			8.17%		8.57%
Reserve coverage		3.77%				2.71%			2.71%		3.77%
Delinquency status	[4]	0.73%				1.29%			1.29%		0.73%
Charge-off ratio		2.17%				3.69%			3.53%		3.92%
RPAC [Member]
Segment Reporting Disclosure [Line Items]
Total interest expense		$ 47				$ 40			$ 81		$ 119
Net interest income/net investment income		(47)				(40)			(81)		(119)
Net interest income (loss) after loss provision		(47)				(40)			(81)		(119)
Sponsorship and race winnings		7,940				5,371			10,599		16,008
Race team related expenses		(2,663)				(2,876)			(5,416)		(7,211)
Other income (expense)		(1,784)				(1,887)			(4,124)		(5,298)
Income (loss) before income taxes/net investment loss before taxes		3,446				568			978		3,380
Income tax benefit (provision)		(831)				(107)			(150)		(815)
Net income (loss) after taxes/net decrease on net assets resulting from operations		2,615				461			828		2,565
Balance Sheet Data
Total assets		33,134				36,237			36,237		33,134		36,237		29,925
Total funds borrowed		$ 7,758				$ 7,614			$ 7,614		$ 7,758		7,614		7,649
Selected Financial Ratios
Return on average assets		31.13%				4.94%			4.46%		10.76%
Return on average equity						42.83%			38.67%
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]
Segment Reporting Disclosure [Line Items]
Total interest income		$ 26,147				$ 24,001			$ 46,133		$ 72,996
Total interest expense		3,578				2,306			4,442		9,541
Net interest income/net investment income		22,569				21,695			41,691		63,455
Provision for loan losses		6,744				4,423			9,133		19,925
Net interest income (loss) after loss provision		15,825				17,272			32,558		43,530
Other income (expense)		(6,181)				(3,160)			(8,680)		(17,501)
Income (loss) before income taxes/net investment loss before taxes		9,644				14,112			23,878		26,029
Income tax benefit (provision)		(2,497)				(3,979)			(6,141)		(6,741)
Net income (loss) after taxes/net decrease on net assets resulting from operations		7,147				10,133			17,737		19,288
Balance Sheet Data
Total loans, net		690,466				572,995			572,995		690,466		572,995		580,182
Total assets		702,541				582,610			582,610		702,541		582,610		590,746
Total funds borrowed		$ 559,995				$ 431,868			$ 431,868		$ 559,995		431,868		434,527
Selected Financial Ratios
Return on average assets		4.14%				6.80%			6.14%		4.01%
Return on average equity		20.69%				27.77%			25.84%		17.42%
Interest yield		15.35%				15.87%			15.88%		15.45%
Net interest margin		13.25%				14.34%			14.35%		13.43%
Reserve coverage		2.25%				0.50%			0.50%		2.25%
Delinquency status	[4]	0.69%				0.55%			0.55%		0.69%
Charge-off ratio		2.05%				3.19%			3.26%		2.30%
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Total interest income		$ 5,184				$ 3,968			$ 8,605		$ 14,187
Total interest expense		1,309				709			1,448		3,252
Net interest income/net investment income		3,875				3,259			7,157		10,935
Provision for loan losses		(629)				598			1,475		733
Net interest income (loss) after loss provision		4,504				2,661			5,682		10,202
Other income (expense)		(2,000)				400			(1,285)		(5,356)
Income (loss) before income taxes/net investment loss before taxes		2,504				3,061			4,397		4,846
Income tax benefit (provision)		(648)				(863)			(1,159)		(1,255)
Net income (loss) after taxes/net decrease on net assets resulting from operations		1,856				2,198			3,238		3,591
Balance Sheet Data
Total loans, net		228,491				168,781			168,781		228,491		168,781		181,359
Total assets		239,991				175,333			175,333		239,991		175,333		188,892
Total funds borrowed		$ 190,871				$ 132,914			$ 132,914		$ 190,871		132,914		143,815
Selected Financial Ratios
Return on average assets		3.22%				4.57%			3.42%		2.50%
Return on average equity		16.09%				19.99%			15.22%		11.34%
Interest yield		9.46%				8.10%			8.94%		9.44%
Net interest margin		7.07%				6.65%			7.44%		7.27%
Reserve coverage		0.97%				0.51%			0.51%		0.97%
Delinquency status	[4]	0.11%				0.10%			0.10%		0.11%
Charge-off ratio		0.09%				1.34%			1.27%		0.20%
Operating Segments [Member] | Commercial Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income		$ 1,842				$ 2,370			$ 4,587		$ 5,359
Total interest expense		741				500			985		2,108
Net interest income/net investment income		1,101				1,870			3,602		3,251
Provision for loan losses		364				(75)			100		364
Net interest income (loss) after loss provision		737				1,945			3,502		2,887
Other income (expense)		563				(945)			(1,887)		(532)
Income (loss) before income taxes/net investment loss before taxes		1,300				1,000			1,615		2,355
Income tax benefit (provision)		(314)				(232)			(368)		(568)
Net income (loss) after taxes/net decrease on net assets resulting from operations		986				768			1,247		1,787
Balance Sheet Data
Total loans, net		64,646				77,886			77,886		64,646		77,886		59,973
Total assets		87,486				88,035			88,035		87,486		88,035		90,264
Total funds borrowed		$ 69,658				$ 53,323			$ 53,323		$ 69,658		53,323		51,266
Selected Financial Ratios
Return on average assets		4.49%				3.50%			2.81%		2.69%
Return on average equity		22.45%				7.47%			6.05%		13.43%
Interest yield		11.09%				12.33%			13.48%		11.59%
Net interest margin		6.63%				9.73%			10.58%		7.03%
Reserve coverage		0.00%	[5]			0.13%			0.13%		0.00%	[5]
Delinquency status	[4],[5]	0.40%				0.51%			0.51%		0.40%
Charge-off ratio		4.93%	[6]			0.00%	[5]		0.00%	[5]	1.77%	[6]
Operating Segments [Member] | Medallion Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income		$ 975				$ 2,126			$ 5,315		$ 2,482
Total interest expense		1,935				3,672			7,045		5,435
Net interest income/net investment income		(960)				(1,546)			(1,730)		(2,953)
Provision for loan losses		1,858				13,259			38,073		15,374
Net interest income (loss) after loss provision		(2,818)				(14,805)			(39,803)		(18,327)
Other income (expense)		(2,762)				(4,077)			(6,888)		(8,106)
Income (loss) before income taxes/net investment loss before taxes		(5,580)				(18,882)			(46,691)		(26,433)
Income tax benefit (provision)		1,345				4,371			10,528		6,375
Net income (loss) after taxes/net decrease on net assets resulting from operations		(4,235)				(14,511)			(36,163)		(20,058)
Balance Sheet Data
Total loans, net		112,003				235,827			235,827		112,003		235,827		155,863
Total assets		226,868				369,763			369,763		226,868		369,763		273,501
Total funds borrowed		$ 180,040				$ 399,750			$ 399,750		$ 180,040		399,750		294,465
Selected Financial Ratios
Return on average assets		(7.26%)				(15.23%)			(18.49%)		(10.82%)
Return on average equity		(36.30%)									(54.12%)
Interest yield		3.30%				3.41%			4.03%		2.50%
Net interest margin		(3.25%)				(2.48%)			(1.31%)		(2.97%)
Reserve coverage		18.22%				9.81%			9.81%		18.22%
Delinquency status	[4]	2.41%				4.06%			4.06%		2.41%
Charge-off ratio		5.20%				10.35%			9.66%		18.29%
Intersegment Eliminations [Member]
Segment Reporting Disclosure [Line Items]
Total interest income		$ 492				$ 687			$ 1,156		$ 1,674
Total interest expense		1,615				1,660			2,811		5,313
Net interest income/net investment income		(1,123)				(973)			(1,655)		(3,639)
Provision for loan losses											455
Net interest income (loss) after loss provision		(1,123)				(973)			(1,655)		(4,094)
Other income (expense)		(2,591)				(2,849)			(4,390)		(5,822)
Income (loss) before income taxes/net investment loss before taxes		(3,714)				(3,822)			(6,045)		(9,916)
Income tax benefit (provision)		2,780				927			1,428		4,930
Net income (loss) after taxes/net decrease on net assets resulting from operations		(934)				(2,895)			(4,617)		(4,986)
Balance Sheet Data
Total loans, net		3,563				4,572			4,572		3,563		4,572		4,110
Total assets		229,734				319,429			319,429		229,734		319,429		208,518
Total funds borrowed		$ 178,793				$ 239,605			$ 239,605		$ 178,793		$ 239,605		$ 130,306
Selected Financial Ratios
Return on average assets		(1.54%)				(4.29%)			(3.55%)		(2.90%)
Return on average equity		(7.81%)				(15.05%)			(11.16%)		(11.52%)

[1] Average borrowings outstanding were $1,169,182 and $1,121,693, and the related average borrowing costs were 3.13% and 3.07% for the three and nine months ended September 30, 2019, and were $1,255,945 and $1,226,896, and 2.81% and 2.22% for the comparable 2018 periods.

[2] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[3] Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information

[4] Loans 90 days or more past due.

[5] Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

[6] Ratio is based on total commercial lending balances, and relates to the total loan business.

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Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
2020		$ 390,888
2021		252,082
2022		225,840
2023		117,693
2024		135,112
Thereafter		65,500
Long term debt		$ 1,187,115	$ 1,062,028	$ 1,265,074
Funds borrowed			1,062,028
Interest Rate	[1]	2.91%
Deposits [Member]
Debt Instrument [Line Items]
2020		$ 348,385
2021		182,587
2022		225,560
2023		112,413
2024		94,042
Long term debt		$ 962,987
Funds borrowed			848,040
Interest Rate	[1]	2.37%
Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
2020		$ 23,093
2021		8,500
2023		5,000
2024		5,000
Thereafter		32,500
Long term debt		$ 74,093
Funds borrowed			80,099
Interest Rate	[1]	3.41%
Retail and Privately Placed Notes [Member]
Debt Instrument [Line Items]
2021		$ 33,625
2024		36,000
Long term debt		$ 69,625
Funds borrowed			33,625
Interest Rate	[1]	8.61%
Preferred Securities [Member]
Debt Instrument [Line Items]
Thereafter		$ 33,000
Long term debt		$ 33,000
Funds borrowed			33,000
Interest Rate	[1]	4.24%
Other Borrowings [Member]
Debt Instrument [Line Items]
2020		$ 11,758
Long term debt		$ 11,758
Funds borrowed			7,649
Interest Rate	[1]	2.09%
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
2020		$ 7,652
2021		27,370
2022		280
2023		280
2024		70
Long term debt		$ 35,652
Funds borrowed			$ 59,615
Interest Rate	[1]	4.25%

[1] Weighted average contractual rate as of September 30, 2019.

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Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Publicly traded retail notes traded at a premium to par	$ 1,735	$ 269

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Summary of net revenue received

The following table summarizes the net revenues received from the Bank not eliminated under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Reimbursement of operating expenses	$	250
Loan origination and servicing fees		6
Total other income	$	256

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)				3 Months Ended					6 Months Ended	9 Months Ended			12 Months Ended
		Apr. 02, 2018	Jan. 01, 2016	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Non-marketable securities				$ 9,880,000						$ 9,880,000			$ 9,197,000
Net premium on investment securities	[1]										$ 3,287,000
Investment securities Amortized to interest income				21,000			$ 26,000		$ 47,000	46,000
Net loan origination costs										17,867,000			14,416,000
Net amortization to income				1,364,000			1,147,000			3,753,000	2,192,000
Premiums in loan portfolio				69,294,000						$ 69,294,000			58,085,000
Percentage of write down of loan balance										40.00%
Loans pledged as collateral				30,295,000						$ 30,295,000			40,500,000
Principal portion of loans serviced, fair value				125,818,000						125,818,000			140,180,000
Reserves against future losses										$ 6,032,000
Bank's reserves against future losses		$ 17,351,000
Intangible assets useful life										20 years
Goodwill				150,803,000			150,803,000		150,803,000	$ 150,803,000	150,803,000		150,803,000
Intangible assets, net				52,898,000			59,958,000		59,958,000	52,898,000	59,958,000		53,982,000
Amortization of intangible assets				361,000			361,000			1,084,000	722,000	[1]
Financing receivable, recorded investment, 90 days past due and still accruing				0						0			0
Depreciation and amortization								$ 23,000
Amortization expense				613,000			558,000			1,731,000	1,322,000
Deferred costs				5,589,000			4,859,000		4,859,000	$ 5,589,000	$ 4,859,000		$ 4,461,000
Potential dilutive common shares excluded from EPS computation										468,055	115,000
Stock based compensation award										375,481	39,000
Stock based compensation award, Amount				$ 348,000			$ 151,000			$ 853,000	$ 466,000
Stock based compensation award per diluted common share				$ 0.01			$ 0.01			$ 0.03	$ 0.01
Unrecognized compensation cost related to unvested stock options and restricted stock				$ 1,663,000						$ 1,663,000
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period										42 months
Tier 1 leverage capital ratio				15.91%						15.91%
Capital conversation buffer			0.625%
Period increase of capital conversation buffer			0.625%
Common Equity Tier 1 risk-based capital ratio				13.70%						13.70%			14.30%
Tier 1 risk-based capital ratio				16.10%						16.10%			16.90%
Total risk-based capital ratio				17.40%						17.40%			18.20%
Restricted Shares [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award				10,417	4,751	163,098				178,266	101,010		101,010
Restricted Stock Units [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award				26,040						26,040	0
Leasehold Improvements [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization				$ 109,000			$ 131,000			$ 313,000	$ 289,000
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful life of fixed assets										3 years
Tier 1 leverage capital to total assets ratio				15.00%						15.00%
Common Equity Tier 1 risk-based capital ratio				7.00%						7.00%
Tier 1 risk-based capital ratio				8.50%						8.50%
Total risk-based capital ratio				10.50%						10.50%
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful life of fixed assets										10 years
91+ [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Premiums in loan portfolio				$ 8,123,000						$ 8,123,000			$ 20,154,000
91+ [Member] | Loans [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Premiums in loan portfolio				$ 8,123,000						$ 8,123,000			$ 20,154,000
Total loans more than 90 days past due ,percentage				0.73%						0.73%			2.03%
Medallion Bank [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Appreciation in Investment in Medallion Bank								$ 39,826,000						$ 7,849,000	$ 128,918,000	$ 15,500,000
Net amortization to income											3,065,000
Reserves against future losses										$ 4,608,000
Amortization of intangible assets													$ 0
RPAC [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Premiums in loan portfolio		$ 12,387,000
Amortization of intangible assets													5,615,000
Financing receivable, recorded investment, 90 days past due and still accruing				$ 6,161,000			10,607,000		$ 10,607,000	6,161,000	10,607,000		9,048,000
Loan portfolio premium amortized to interest income				$ 713,000			$ 1,780,000			2,886,000	$ 1,780,000
Bank Holding Company Accounting [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net premium on investment securities										$ 236,000			$ 154,000
Private Placement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest reserve						$ 2,970,000

[1] Results include the six months ended September 30, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Variable Interest Entities

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Variable Interest Entities

(19) 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 7 for more details). In addition, the Company remains the servicer of the assets of Trust III for a fee.

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Related Party Transactions

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

(15) RELATED PARTY TRANSACTIONS

Certain directors, officers and stockholders of the Company are also directors and officers of its main 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, is an officer of LAX Group, LLC (LAX), one of the Company’s equity investments. Mr. Rudnick receives a salary from LAX of $171,000 per year, 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 provides consulting services to the Company directly for a monthly retainer of $4,200.

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 $7,258,000 that earns interest at an annual rate of 2% as of September 30, 2019.

In the 2019 second quarter, RPAC entered into a sponsorship agreement with Victory Junction, a 501(c)(3) public charity for which Richard Petty is a Board member, for $7,000,000 of sponsorship payments to RPAC during the remaining 2019 race car season, of which $5,200,000 was earned and received in 2019.

The Company and MSC serviced $308,346,000 of loans for the Bank at March 31, 2018. Under Investment Company Accounting, included in net investment income were amounts as described in the table below that were received from the Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf.

The Company had assigned its servicing rights to the Bank portfolio to MSC, a wholly-owned entity that had been unconsolidated under Investment Company Accounting. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from the Bank by MSC. As a result, in the three months ended March 31, 2018, $1,290,000 of servicing fee income was earned by MSC.

The following table summarizes the net revenues received from the Bank not eliminated under Investment Company Accounting.

(Dollars in thousands)	Three Months Ended March 31, 2018
Reimbursement of operating expenses	$	250
Loan origination and servicing fees		6
Total other income	$	256

The Company had a loan to Medallion Fine Art, Inc. in the amount of $999,000 as of December 31, 2017, which was repaid in full during the 2018 first quarter. The loan bore interest at a rate of 12%, all of which was paid in kind. Additionally, the Company recognized $10,000 of interest income not eliminated for the three months ended March 31, 2018 with respect to this loan.

The Company and MCI have loans to RPAC which have been eliminated in consolidation since April 2, 2018. The loans bear interest at 2%, inclusive of cash and paid in kind interest. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018 with respect to these loans.