Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

(9) SEGMENT REPORTING

The Company currently has five business segments, which include four lending and a non-operating segment, 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. The highest concentrations of recreation loans are in Texas and Florida at 16% and 10% of loans outstanding and with no other states over 10% as of June 30, 2022. 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 59%, 20%, and 13% of the segment portfolio as of June 30, 2022. 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 36%, 25%, and 12% of total home improvement loans outstanding, and with no other product lines over 10% as of June 30, 2022. The highest concentrations of home improvement loans are in Texas and Florida at 11% and 10% of loans outstanding and with no other states over 10% as of June 30, 2022. The commercial lending segment focuses on enterprise wide industries, including manufacturing services, and various other industries, and 47% 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, substantially all of which are located in the New York City metropolitan area as of June 30, 2022.

Our corporate and other investments segment is a non-operating segment that includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements. Additionally, through December 1, 2021, the date of disposition, the Company had another non-operating segment, RPAC, a race car team.

As part of segment reporting, capital ratios for all operating segments have been normalized as a percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments. In addition, the commercial segment primarily represents the mezzanine lending business, with certain legacy commercial loans (immaterial to total) allocated to corporate and other investments.

The following tables present segment data as of and for the three and six months ended June 30, 2022 and 2021.

Three Months Ended June 30, 2022	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income (loss)	$	33,514		$	10,587		$	2,278			$	231		$	501		$	47,111
Total interest expense		4,096			1,625			785				140			1,584			8,230
Net interest income (loss)		29,418			8,962			1,493				91			(1,083	)		38,881
Provision (recoveries) for loan losses		6,674			1,697			1,879				(2,675	)		184			7,759
Net interest income (loss) after loss provision		22,744			7,265			(386	)			2,766			(1,267	)		31,122
Other income (expense), net		(7,551	)		(3,210	)		3,263				(760	)		(3,197	)		(11,455	)
Net income (loss) before taxes		15,193			4,055			2,877				2,006			(4,464	)		19,667
Income tax (provision) benefit		(3,567	)		(975	)		(817	)			(541	)		1,044			(4,856	)
Net income (loss) after taxes	$	11,626		$	3,080		$	2,060			$	1,465		$	(3,420	)	$	14,811
Balance Sheet Data
Total loans, net	$	1,058,898		$	517,044		$	94,208			$	4,726		$	593		$	1,675,469
Total assets		1,072,356			521,931			103,643				31,258			382,943			2,112,131
Total funds borrowed		861,083			419,101			83,223				25,099			307,499			1,696,005
Selected Financial Ratios
Return on average assets		4.53	%		2.49	%		8.06	%			17.05	%		(3.56	)%		2.63	%
Return on average stockholders' equity		25.52			14.02			49.17				95.49			(20.01	)		18.11
Interest yield		13.27			8.65			10.60				19.61		N/A				11.00
Net interest margin		11.65			7.33			6.95				7.78		N/A				9.07
Reserve coverage		3.44			1.75			2.81		(1)		66.61		N/A				3.41
Delinquency status(2)		0.36			0.07			0.08		(1)		—		N/A				0.25
Charge-off (recovery) ratio(4)		0.43			0.58			(0.00	)	(3)		(232.80	)	N/A				(0.18	)

(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 net recoveries for the period.

Six Months Ended June 30, 2022	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income (loss)	$	64,650		$	20,288		$	4,208			$	377		$	891		$	90,414
Total interest expense		7,697			2,967			1,507				293			3,141			15,605
Net interest income (loss)		56,953			17,321			2,701				84			(2,250	)		74,809
Provision (recoveries) for loan losses		8,354			2,902			3,134				(3,544	)		153			10,999
Net interest income (loss) after loss provision		48,599			14,419			(433	)			3,628			(2,403	)		63,810
Other income (expense), net		(14,371	)		(6,106	)		1,932				(1,566	)		(7,847	)		(27,958	)
Net income (loss) before taxes		34,228			8,313			1,499				2,062			(10,250	)		35,852
Income tax (provision) benefit		(9,248	)		(2,246	)		(405	)			(557	)		2,769			(9,687	)
Net income (loss) after taxes	$	24,980		$	6,067		$	1,094			$	1,505		$	(7,481	)	$	26,165
Balance Sheet Data
Total loans, net	$	1,058,898		$	517,044		$	94,208			$	4,726		$	593		$	1,675,469
Total assets		1,072,356			521,931			103,643				31,258			382,943			2,112,131
Total funds borrowed		861,083			419,101			83,223				25,099			307,499			1,696,005
Selected Financial Ratios
Return on average assets		5.04	%		2.56	%		2.15	%			5.86	%		(4.24	)%		2.37	%
Return on average stockholders' equity		27.27			13.87			12.21				30.74			(24.85	)		15.93
Interest yield		13.29			8.72			10.28				16.07		N/A				11.04
Net interest margin		11.71			7.45			6.60				3.58		N/A				9.15
Reserve coverage		3.44			1.75			2.81		(1)		66.61		N/A				3.41
Delinquency status(2)		0.36			0.07			0.08		(1)		—		N/A				0.25
Charge-off (recovery) ratio(4)		0.44			0.62			3.75		(3)		(153.24	)	N/A				0.26

(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 net recoveries for the period.

Three Months Ended June 30, 2021	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corporate and Other Investments			Consolidated
Total interest income (loss)	$	28,886		$	8,228		$	1,383			$	(1,475	)	$	—		$	353		$	37,375
Total interest expense		2,863			1,143			716				2,524			34			604			7,884
Net interest income (loss)		26,023			7,085			667				(3,999	)		(34	)		(251	)		29,491
Provision for loan losses		1,017			756			—				(2,943	)		—			488			(682	)
Net interest income (loss) after loss provision		25,006			6,329			667				(1,056	)		(34	)		(739	)		30,173
Sponsorship and race winnings		—			—			—				—			4,345			—			4,345
Race team related expenses		—			—			—				—			(2,674	)		—			(2,674	)
Other income (expense), net		(7,455	)		(2,638	)		(69	)			(1,157	)		(1,862	)		(543	)		(13,724	)
Net income (loss) before taxes		17,551			3,691			598				(2,213	)		(225	)		(1,282	)		18,120
Income tax (provision) benefit		(4,519	)		(951	)		(150	)			556			57			(1,521	)		(6,528	)
Net income (loss) after taxes	$	13,032		$	2,740		$	448			$	(1,657	)	$	(168	)	$	(2,803	)	$	11,592
Balance Sheet Data
Total loans net	$	855,900		$	362,370		$	66,236			$	5,764		$	—		$	3,351		$	1,293,621
Total assets		868,709			375,189			90,563				101,205			31,877			272,204			1,739,747
Total funds borrowed		712,777			295,887			72,450				80,959			8,016			212,020			1,382,109
Selected Financial Ratios
Return on average assets		6.24	%		3.04	%		2.36	%			(6.10	)%		(1.05	)%		(3.85	)%		2.43	%
Return on average equity		31.19			15.19			11.78				(30.51	)		(39.70	)		(1.95	)		12.90
Interest yield		14.03			9.48			9.16				(70.71	)	N/A			N/A				11.17
Net interest margin		12.64			8.16			4.42				(189.15	)	N/A			N/A				8.84
Reserve coverage		3.42			1.60			—		(1)		65.11		N/A			N/A				3.50
Delinquency status(2)		0.32			0.02			0.11		(1)		—		N/A			N/A				0.22
Charge-off (recovery) ratio(4)		(0.44	)		0.26			—		(3)		513.86		N/A			N/A				3.28

(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 net recoveries for the period.

Six Months Ended June 30, 2021	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corporate and Other Investments			Consolidated
Total interest income (loss)	$	56,328		$	16,146		$	2,865			$	(1,544	)	$	—		$	660		$	74,455
Total interest expense		5,657			2,351			1,288				3,894			75			3,027			16,292
Net interest income (loss)		50,671			13,795			1,577				(5,438	)		(75	)		(2,367	)		58,163
Provision for loan losses		4,630			1,206			—				(3,987	)		—			487			2,336
Net interest income (loss) after loss provision		46,041			12,589			1,577				(1,451	)		(75	)		(2,854	)		55,827
Sponsorship and race winnings		—			—			—				—			6,818			—			6,818
Race team related expenses		—			—			—				—			(4,796	)		—			(4,796	)
Other income (expense), net		(12,918	)		(4,552	)		(529	)			(3,301	)		(3,623	)		(1,858	)		(26,781	)
Net income (loss) before taxes		33,123			8,037			1,048				(4,752	)		(1,676	)		(4,712	)		31,068
Income tax (provision) benefit		(8,529	)		(2,070	)		(263	)			1,193			421			(1,158	)		(10,406	)
Net income (loss) after taxes	$	24,594		$	5,967		$	785			$	(3,559	)	$	(1,255	)	$	(5,870	)	$	20,662
Balance Sheet Data
Total loans net	$	855,900		$	362,370		$	66,236			$	5,764		$	—		$	3,351		$	1,293,621
Total assets		868,709			375,189			90,563				101,205			31,877			272,204			1,739,747
Total funds borrowed		712,777			295,887			72,450				80,959			8,016			212,020			1,382,109
Selected Financial Ratios
Return on average assets		6.06	%		3.39	%		1.95	%			(6.29	)%		(7.72	)%		(4.08	)%		2.08	%
Return on average equity		30.32			16.96			9.77				(31.44	)		(244.87	)		(30.46	)		11.09
Interest yield		14.18			9.56			9.66				(30.90	)	N/A			N/A				11.50
Net interest margin		12.76			8.17			5.32				(108.84	)	N/A			N/A				9.01
Reserve coverage		3.42			1.60			—		(1)		65.11		N/A			N/A				3.50
Delinquency status(2)		0.32			0.02			0.11		(1)		—		N/A			N/A				0.22
Charge-off (recovery) ratio		0.12			0.99			—		(3)		216.01		N/A			N/A				2.15

(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.