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Fair Value of Assets and liabilities (Tables)

12 Months Ended

Dec. 31, 2019

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

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

December 31, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	10,079	$	10,079
Available for sale investment securities ⁽¹⁾		—		48,998		—		48,998
Total	$	—	$	48,998	$	10,079	$	59,077

(1)	Total unrealized gains of $1,081, net of tax, was included in accumulated other comprehensive income (loss) for the twelve months ended December 31, 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 twelve months ended December 31, 2019, and the nine months ended December 31, 2018 under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 under Investment Company Accounting.

(Dollars in thousands)	Equity Investments
December 31, 2018	$	9,197
Gains included in earnings		87
Purchases, investments, and issuances		3,396
Sales, maturities, settlements, and distributions		(2,601	)
December 31, 2019	$	10,079
Amounts related to held assets ⁽¹⁾	$	(1,734	)

(1)	Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2019.

(Dollars in thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(1,274	)
Purchases, investments, and issuances		1,232
Sales, maturities, settlements, and distributions		(1,596	)
Transfers in ⁽¹⁾		1,377
December 31, 2018	$	9,197
Amounts related to held assets ⁽²⁾	$	(1,851	)

(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 December 31, 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 December 31, 2019 and 2018 under Bank Holding Company Accounting.

December 31, 2019 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,915	$	34,915
Loan collateral in process of foreclosure		—		—		52,711		52,711
Total	$	—	$	—	$	87,626	$	87,626

December 31, 2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	47,974	$	47,974
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	97,469	$	97,469

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 December 31, 2019 and 2018 were as follows under Bank Holding Company Accounting.

(Dollars in thousands)	Fair Value at 12/31/19		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	7,435	Investee financial analysis	Financial condition and operating performance of the borrower	N/A
				Collateral support	N/A
		1,189	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee	N/A
			Public company comparables	Business enterprise value	$4,855 – $6,120
				Business enterprise value/revenue multiples	1.59-5.98x
				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