The Company has six business segments, which include four lending and two non-operating segments, which are reflective of how Company management makes decisions about its business and operations.

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are operated by the Bank and include loans in all fifty states, with the highest concentrations in Texas, Florida, and California at 15%, 10%, and 8% of loans outstanding and with no other states over 5% as of September 30, 2021. The recreation lending segment is a consumer finance business that works with third-party dealers and financial service providers for the purpose of financing RVs, boats, and other consumer recreational equipment, of which RVs, boats, and trailers make up 60%, 20%, and 9% of the segment portfolio as of September 30, 2021. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in roofs, swimming pools, and windows at 28%, 26%, and 13% of total home improvement loans outstanding, and with no other product lines over 10% as of September 30, 2021. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, in which 62% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, of which 85% were in New York City as of September 30, 2021.

In addition, our non-operating segments include RPAC, which is a race car team, and our corporate and other investments segment which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. As a result of COVID-19, the prior year race season had been suspended from March 15, 2020 through May 17, 2020. As states reopened, NASCAR resumed races and completed all races scheduled in 2020. Commencing in the 2020 second quarter, the Bank began issuing loans related to its strategic partnership business, which is currently included within the corporate and other investment segment due to its small size.

As part of segment reporting, capital ratios for all operating segments have been normalized at 20%, which approximates the percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been allocated to corporate and other investments.

The following tables present segment data as of and for the three and nine months ended September 30, 2021 and 2020.


	Consumer Lending
Three Months Ended September 30, 2021 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corp. and Other Investments			Consolidated
Total interest income	$	30,529		$	8,586		$	2,055			$	1		$	—		$	326		$	41,497
Total interest expense		2,305			958			662				2,009			38			1,454			7,426
Net interest income (loss)		28,224			7,628			1,393				(2,008	)		(38	)		(1,128	)		34,071
Provision for loan losses		916			369			—				(1,944	)		—			322			(337	)
Net interest income (loss) after loss provision		27,308			7,259			1,393				(64	)		(38	)		(1,450	)		34,408
Sponsorship and race winnings		—			—			—				—			3,335			—			3,335
Race team related expenses		—			—			—				—			(2,424	)		—			(2,424	)
Other income (expense), net		(8,856	)		(3,437	)		636				2,073			(2,066	)		(778	)		(12,428	)
Net income (loss) before taxes		18,452			3,822			2,029				2,009			(1,193	)		(2,228	)		22,891
Income tax (provision) benefit		(4,752	)		(951	)		(510	)			(504	)		299			251			(6,167	)
Net income (loss)	$	13,700		$	2,871		$	1,519			$	1,505		$	(894	)	$	(1,977	)	$	16,724
Balance Sheet Data
Total loans, net	$	902,234		$	392,278		$	70,232			$	5,538		$	—		$	1,951		$	1,372,233
Total assets		916,109			405,439			92,257				93,683			30,969			266,777			1,805,234
Total funds borrowed		712,474			296,509			73,806				74,941			8,054			258,358			1,424,142
Selected Financial Ratios
Return on average assets		6.09	%		2.89	%		6.60	%			6.12	%		(11.28	%)		(2.65	%)		3.73	%
Return on average equity		30.46			14.43			32.99				30.62			(11.08	)		(19.79	)		19.81
Interest yield		13.78			9.04			12.04				0.09		N/A			N/A				11.55
Net interest margin		12.74			8.03			8.16				(139.64	)	N/A			N/A				9.48
Reserve coverage		3.38			1.63			(0.00	)	(1)		49.98		N/A			N/A				3.34
Delinquency status(2)		0.34			0.04			0.10		(1)		5.42		N/A			N/A				0.29
Charge-off ratio(4)		(0.15	)		(0.25	)		—		(3)		(43.01	)	N/A			N/A				(0.38	)

(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.

(4)

Negative balances indicate recoveries for the period.


	Consumer Lending
Nine Months Ended September 30, 2021 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corp. and Other Investments			Consolidated
Total interest income	$	86,857		$	24,732		$	4,920			$	(1,543	)	$	—		$	987		$	115,953
Total interest expense		7,962			3,309			1,950				5,903			113			4,481			23,718
Net interest income (loss)		78,895			21,423			2,970				(7,446	)		(113	)		(3,494	)		92,235
Provision for loan losses		5,546			1,575			—				(5,931	)		—			810			2,000
Net interest income (loss) after loss provision		73,349			19,848			2,970				(1,515	)		(113	)		(4,304	)		90,235
Sponsorship and race winnings		—			—			—				—			10,153			—			10,153
Race team related expenses		—			—			—				—			(7,219	)		—			(7,219	)
Other income (expense), net		(21,774	)		(7,989	)		107				(1,228	)		(5,689	)		(2,637	)		(39,210	)
Net income (loss) before taxes		51,575			11,859			3,077				(2,743	)		(2,868	)		(6,941	)		53,959
Income tax (provision) benefit		(13,281	)		(3,054	)		(773	)			689			720			(874	)		(16,573	)
Net income (loss)	$	38,294		$	8,805		$	2,304			$	(2,054	)	$	(2,148	)	$	(7,815	)	$	37,386
Balance Sheet Data
Total loans, net	$	902,234		$	392,278		$	70,232			$	5,538		$	—		$	1,951		$	1,372,233
Total assets		916,109			405,439			92,257				93,683			30,969			266,777			1,805,234
Total funds borrowed		712,474			296,509			73,806				74,941			8,054			258,358			1,424,142
Selected Financial Ratios
Return on average assets		6.08	%		3.20	%		3.68	%			(2.52	%)		(8.89	%)		(3.68	%)		2.73	%
Return on average equity		30.39			16.02			18.38				(12.60	)		(386.73	)		(27.18	)		14.47
Interest yield		14.05			9.37			10.56				(23.55	)	N/A			N/A				11.56
Net interest margin		12.76			8.11			6.37				(113.66	)	N/A			N/A				9.19
Reserve coverage		3.38			1.63			(0.00	)	(1)		49.98		N/A			N/A				3.34
Delinquency status(2)		0.34			0.04			0.10		(1)		5.42		N/A			N/A				0.29
Charge-off ratio(4)		0.22			0.09			—		(3)		143.94		N/A			N/A				1.17

(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.

(4)

Negative balances indicate recoveries for the period.


	Consumer Lending
Three Months Ended September 30, 2020 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corp. and Other Investments			Consolidated
Total interest income	$	28,962		$	7,218		$	1,791			$	(909	)	$	—		$	378		$	37,440
Total interest expense		3,476			1,655			663				(56	)		42			2,604			8,384
Net interest income (loss)		25,486			5,563			1,128				(853	)		(42	)		(2,226	)		29,056
Provision for loan losses		1,812			745			—				37,196			—			(4	)		39,749
Net interest income (loss) after loss provision		23,674			4,818			1,128				(38,049	)		(42	)		(2,222	)		(10,693	)
Sponsorship and race winning		—			—			—				—			8,962			—			8,962
Race team related expenses		—			—			—				—			(2,636	)		—			(2,636	)
Other income (expense), net		(7,246	)		(2,700	)		(712	)			(9,738	)		(2,503	)		(1,148	)		(24,047	)
Net income (loss) before taxes		16,428			2,118			416				(47,787	)		3,781			(3,370	)		(28,414	)
Income tax (provision) benefit		(4,201	)		(541	)		(104	)			11,908			(942	)		2,261			8,381
Net income (loss)	$	12,227		$	1,577		$	312			$	(35,879	)	$	2,839		$	(1,109	)	$	(20,033	)
Balance Sheet Data
Total loans, net	$	774,956		$	310,691		$	68,042			$	33,521		$	—		$	3,334		$	1,190,544
Total assets		788,459			321,084			80,247				142,450			40,112			231,923			1,604,275
Total funds borrowed		628,528			255,778			65,906				113,009			8,652			199,312			1,271,185
Selected Financial Ratios
Return on average assets		6.22	%		2.06	%		1.49	%			(85.70	%)		31.97	%		(8.78	%)		(5.69	%)
Return on average equity		31.11			10.29			6.82			NM			NM				(54.58	)		(29.77	)
Interest yield		14.97			9.73			10.51				(5.34	)	N/A			N/A				11.23
Net interest margin		13.18			7.50			6.62				(3.89	)	N/A			N/A				8.72
Reserve coverage		3.48			1.51			—		(1)		63.28		N/A			N/A				7.07
Delinquency status(2)		0.52			0.03			2.67		(1)		8.31		N/A			N/A				1.07
Charge-off ratio		0.44			0.09			(0.02	)	(3)		89.89		N/A			N/A				5.36

(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
Nine Months Ended September 30, 2020 (Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corp. and Other Investments			Consolidated
Total interest income	$	82,525		$	19,431		$	5,275			$	86		$	—		$	1,253		$	108,570
Total interest expense		10,268			4,178			1,937				2,781			122			6,933			26,219
Net interest income (loss)		72,257			15,253			3,338				(2,695	)		(122	)		(5,680	)		82,351
Provision for loan losses		20,705			3,041			—				49,489			—			(4	)		73,231
Net interest income (loss) after loss provision		51,552			12,212			3,338				(52,184	)		(122	)		(5,676	)		9,120
Sponsorship and race winning		—			—			—				—			15,161			—			15,161
Race team related expenses		—			—			—				—			(6,584	)		—			(6,584	)
Other income (expense), net		(21,115	)		(7,002	)		(2,191	)			(20,603	)		(5,726	)		(8,842	)		(65,479	)
Net income (loss) before taxes		30,437			5,210			1,147				(72,787	)		2,729			(14,518	)		(47,782	)
Income tax (provision) benefit		(7,783	)		(1,332	)		(286	)			18,138			(680	)		4,426			12,483
Net income (loss)	$	22,654		$	3,878		$	861			$	(54,649	)	$	2,049		$	(10,092	)	$	(35,299	)
Balance Sheet Data
Total loans, net	$	774,956		$	310,691		$	68,042			$	33,521		$	—		$	3,334		$	1,190,544
Total assets		788,459			321,084			80,247				142,450			40,112			231,923			1,604,275
Total funds borrowed		628,528			255,778			65,906				113,009			8,652			199,312			1,271,185
Selected Financial Ratios
Return on average assets		4.04	%		1.84	%		1.37	%			(38.80	%)		8.27	%		(5.45	%)		(3.43	%)
Return on average equity		20.20			9.19			6.56				(192.88	)	NM				(22.64	)		(17.02	)
Interest yield		14.99			9.62			10.58				0.13		N/A			N/A				11.31
Net interest margin		13.13			7.53			6.69				(4.12	)	N/A			N/A				8.58
Reserve coverage		3.48			1.51			—		(1)		63.28		N/A			N/A				7.07
Delinquency status(2)		0.52			0.03			2.67		(1)		8.31		N/A			N/A				1.07
Charge-off ratio		1.96			0.44			(0.01	)	(3)		26.21		N/A			N/A				3.30

(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.