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 year ended December 31, 2017.

(Dollars in thousands)	2017
Statement of comprehensive income
Investment income	$	111,281
Interest expense		13,869
Net interest income		97,412
Noninterest income		121
Operating expenses ⁽¹⁾		26,032
Net investment income before income taxes		71,501
Income tax provision		15,093
Net investment income after income taxes		56,408
Net realized/unrealized losses of Medallion Bank ⁽¹⁾		(51,696	)
Net increase in net assets resulting from operations of Medallion Bank		4,712
Unrealized appreciation on Medallion Bank ⁽²⁾		5,482
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank		(711	)
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	9,483

(1)	Excluded from operating expenses and included in net realized/unrealized losses of the Bank were $1,476 of unrealized losses on other assets for 2017.

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