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 June 30, 2024

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, 38th 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	MFIN	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 checkmark 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 August 6, 2024, was 23,168,761.

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	35
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	57
ITEM 4. CONTROLS AND PROCEDURES	57
PART II—OTHER INFORMATION	58
ITEM 1. LEGAL PROCEEDINGS	58
ITEM 1A. RISK FACTORS	58
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	58
ITEM 5. OTHER INFORMATION	58
ITEM 6. EXHIBITS	59
SIGNATURES	60

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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, or the Exchange Act, 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. In particular, any forward-looking statements are subject to the risks and great uncertainties associated with the pending litigation with the Securities and Exchange Commission as well as the U.S. and global economies, including the current inflationary environment and the risk of recession.

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 60

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BASIS OF PREPARATION

We, Medallion Financial Corp., or the Company, are a specialty finance company organized as a Delaware corporation. Our strategic focus is growing our consumer finance and commercial lending businesses. Our total assets were $2.8 billion and $2.6 billion as of June 30, 2024 and December 31, 2023.

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

•Medallion Bank, or the Bank, a Federal Deposit Insurance Corporation, or FDIC, insured industrial bank that originates consumer loans, raises deposits and conducts other banking activities;

•Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which operates a mezzanine financing business;

•Medallion Funding LLC, or Medallion Funding, an SBIC, historically our primary taxi medallion lending company; and

•Freshstart Venture Capital Corp., or Freshstart, which historically originated and serviced taxi medallion and commercial loans and was an SBIC through 2023.

Our consolidated balance sheets as of June 30, 2024, and the related consolidated statements of operations, consolidated statements of other comprehensive income, consolidated statements of stockholders’ equity and cash flows for the three and six months then ended included in Item 1 have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. 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 three and six months ended June 30, 2024 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, 2023.

Page 3 of 60

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(Dollars in thousands, except share and per share data)	June 30, 2024			December 31, 2023
Assets
Cash and cash equivalents	$	87,719		$	52,591
Federal funds sold		70,242			97,254
Investment securities		55,830			54,282
Equity investments		10,795			11,430
Loans		2,385,590			2,215,886
Allowance for credit losses		(89,788	)		(84,235	)
Net loans receivable		2,295,802			2,131,651
Goodwill		150,803			150,803
Intangible assets, net		19,869			20,591
Property, equipment, and right-of-use lease asset, net		14,094			14,076
Accrued interest receivable		13,299			13,538
Loan collateral in process of foreclosure (1)		9,359			11,772
Income tax receivable		3,290			671
Other assets		29,774			29,168
Total assets	$	2,760,876		$	2,587,827
Liabilities
Deposits (2)	$	2,006,782		$	1,866,657
Long-term debt (3)		230,803			235,544
Short-term borrowings		37,500			8,000
Deferred tax liabilities, net		22,394			21,207
Operating lease liabilities		6,071			7,019
Accrued interest payable		7,945			6,822
Accounts payable and accrued expenses (4)		26,592			30,804
Total liabilities		2,338,087			2,176,053
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 - 29,262,204    shares at June 30, 2024 and 29,051,800 shares at December 31, 2023 issued)		293			291
Additional paid in capital		290,298			288,046
Treasury stock (6,050,214 shares at June 30, 2024 and 5,602,154 at December 31, 2023)		(49,179	)		(45,538	)
Accumulated other comprehensive loss		(3,744	)		(3,696	)
Retained earnings		116,333			103,883
Total stockholders’ equity		354,001			342,986
Non-controlling interest in consolidated subsidiaries		68,788			68,788
Total equity		422,789			411,774
Total liabilities and equity	$	2,760,876		$	2,587,827
Number of shares outstanding		23,211,990			23,449,646
Book value per share	$	15.25		$	14.63

(1)Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.

(2)Includes $4.6 million and $4.3 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.

(3)Includes $4.0 million and $4.2 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.

(4)Includes the short-term portion of lease liabilities of $2.3 million and $2.5 million as of June 30, 2024 and December 31, 2023. Refer to Note 6 for more details.

(5)Refer to Note 10 for details.

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

Page 4 of 60

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2024			2023			2024		2023
Interest and fees on loans	$	68,861		$	59,630		$	134,082	$	114,799
Interest and dividends on investment securities		1,843			2,096			3,692		2,769
Total interest income (1)		70,704			61,726			137,774		117,568
Interest on deposits		16,523			11,329			31,275		19,928
Interest on long-term debt		4,182			2,940			8,437		5,793
Interest on short-term borrowings		131			766			277		1,554
Total interest expense		20,836			15,035			39,989		27,275
Net interest income		49,868			46,691			97,785		90,293
Provision for credit losses		18,577			8,476			35,778		12,514
Net interest income after provision for credit losses		31,291			38,215			62,007		77,779
Other income (loss)
Gain (loss) on equity investments		(512	)		99			3,655		9
Gain on sale of loans and taxi medallions		242			1,306			830		3,161
Write-down of loan collateral in process of foreclosure		—			(21	)		—		(273	)
Other income		1,369			558			2,017		1,128
Total other income, net		1,099			1,942			6,502		4,025
Other expenses
Salaries and employee benefits		9,435			9,339			18,892		18,175
Loan servicing fees		2,692			2,361			5,162		4,583
Collection costs		1,659			1,608			3,126		3,146
Regulatory fees		888			781			1,865		1,463
Professional fees		1,845			1,368			2,616		3,075
Rent expense		698			603			1,355		1,226
Amortization of intangible assets		362			363			723		723
Other expenses		2,416			2,580			4,481		5,004
Total other expenses		19,995			19,003			38,220		37,395
Income before income taxes		12,395			21,154			30,289		44,409
Income tax provision		3,782			5,472			10,140		11,854
Net income after taxes		8,613			15,682			20,149		32,555
Less: income attributable to the non-controlling interest		1,512			1,512			3,024		3,024
Total net income attributable to Medallion Financial Corp.	$	7,101		$	14,170		$	17,125	$	29,531
Basic net income per share	$	0.31		$	0.63		$	0.76	$	1.32
Diluted net income per share	$	0.30		$	0.62		$	0.73	$	1.29
Weighted average common shares outstanding
Basic		22,598,102			22,488,463			22,619,743		22,416,089
Diluted		23,453,162			22,853,927			23,609,104		22,915,094

(1)Included in interest income is $0.7 million and $1.3 million of paid-in-kind interest for the three and six months ended June 30, 2024 and $0.4 million and $0.6 million for the three and six months ended June 30, 2023.

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

Page 5 of 60

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2024		2023			2024			2023
Net income after taxes	$	8,613	$	15,682		$	20,149		$	32,555
Other comprehensive income (loss), net of tax		102		(906	)		(48	)		(400	)
Total comprehensive income		8,715		14,776			20,101			32,155
Less comprehensive income attributable to the non-controlling interest		1,512		1,512			3,024			3,024
Total comprehensive income attributable to Medallion Financial Corp.	$	7,203	$	13,264		$	17,077		$	29,131

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

Page 6 of 60

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

(Dollars in thousands)	Common Stock Shares			Common Stock		Capital in Excess of Par			Treasury Stock Shares			Treasury Stock			Retained Earnings (Accumulated Deficit)			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity			Non- controlling Interest			Total Equity
Balance at December 31, 2023		29,051,800		$	291	$	288,046			(5,602,154	)	$	(45,538	)	$	103,883		$	(3,696	)	$	342,986		$	68,788		$	411,774
Net income		—			—		—			—			—			10,024			—			10,024			1,512			11,536
Distributions to non-controlling interest		—			—		—			—			—			—			—			—			(1,512	)		(1,512	)
Stock-based compensation expense		—			1		1,495			—			—			—			—			1,496			—			1,496
Issuance of restricted stock, net		296,178			—		—			—			—			—			—			—			—			—
Withheld restricted stock for employees' tax obligations		(116,275	)		—		(944	)		—			—			—			—			(944	)		—			(944	)
Forfeiture of restricted stock, net		(1,208	)		—		—			—			—			—			—			—			—			—
Exercise of stock options		13,383			—		88			—			—			—			—			88			—			88
Purchase of common stock		—			—		—			(264,160	)		(2,126	)		—			—			(2,126	)		—			(2,126	)
Dividends paid on common stock ($0.10 per share)		—			—		—			—			—			(2,338	)		—			(2,338	)		—			(2,338	)
Net change in unrealized gains on investments, net of tax		—			—		—			—			—			—			(150	)		(150	)		—			(150	)
Balance at March 31, 2024		29,243,878		$	292	$	288,685			(5,866,314	)	$	(47,664	)	$	111,569		$	(3,846	)	$	349,036		$	68,788		$	417,824
Net income		—			—		—			—			—			7,101			—			7,101			1,512			8,613
Distributions to non-controlling interest		—			—		—			—			—			—			—			—			(1,512	)		(1,512	)
Stock-based compensation expense		—			1		1,595			—			—			—			—			1,596			—			1,596
Exercise of stock options		2,867			—		18			—			—			—			—			18			—			18
Forfeiture of restricted stock, net		(1,696	)		—		—			—			—			—			—			—			—			—
Issuance in connection with vesting of restricted stock units		17,155			—		—			—			—			—			—			—			—			—
Purchase of common stock		—			—		—			(183,900	)		(1,515	)		—			—			(1,515	)		—			(1,515	)
Dividends paid on common stock ($0.10 per share)		—			—		—			—			—			(2,337	)		—			(2,337	)		—			(2,337	)
Net change in unrealized gains on investments, net of tax		—			—		—			—			—			—			102			102			—			102
Balance at June 30, 2024		29,262,204		$	293	$	290,298			(6,050,214	)	$	(49,179	)	$	116,333		$	(3,744	)	$	354,001		$	68,788		$	422,789

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

Page 7 of 60

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

(Dollars in thousands)	Common Stock Shares			Common Stock		Capital in Excess of Par			Treasury Stock Shares			Treasury Stock			Retained Earnings (Accumulated Deficit)			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity			Non- controlling Interest			Total Equity
Balance at December 31, 2022		28,663,827		$	287	$	283,663			(5,602,154	)	$	(45,538	)	$	66,673		$	(3,349	)	$	301,736		$	68,788		$	370,524
Adoption of ASU 2016-13, net of tax		—			—		—			—			—			(9,935	)		—			(9,935	)		—			(9,935	)
Balance at January 1, 2023		28,663,827			287		283,663			(5,602,154	)		(45,538	)		56,738			(3,349	)		291,801			68,788			360,589
Net income		—			—		—			—			—			15,361			—			15,361			1,512			16,873
Distributions to non-controlling interest		—			—		—			—			—			—			—			—			(1,512	)		(1,512	)
Stock-based compensation expense		—			2		1,034			—			—			—			—			1,036			—			1,036
Issuance of restricted stock, net		304,749			—		—			—			—			—			—			—			—			—
Withheld restricted stock for employees' tax obligations		(91,169	)		—		(768	)		—			—			—			—			(768	)		—			(768	)
Forfeiture of restricted stock, net		(9,843	)		—		—			—			—			—			—			—			—			—
Exercise of stock options		44,583			—		292			—			—			—			—			292			—			292
Dividends paid on common stock ($0.08 per share)		—			—		—			—			—			(1,863	)		—			(1,863	)		—			(1,863	)
Net change in unrealized gains on investments, net of tax		—			—		—			—			—			—			506			506			—			506
Balance at March 31, 2023		28,912,147		$	289	$	284,221			(5,602,154	)	$	(45,538	)	$	70,236		$	(2,843	)	$	306,365		$	68,788		$	375,153
Net income		—			—		—			—			—			14,170			—			14,170			1,512			15,682
Distributions to non-controlling interest		—			—		—			—			—			—			—			—			(1,512	)		(1,512	)
Stock-based compensation expense		—			—		1,214			—			—			—			—			1,214			—			1,214
Issuance of restricted stock, net		11,734			—		—			—			—			—			—			—			—			—
Exercise of stock options		283			—		—			—			—			—			—			—			—			—
Forfeiture of restricted stock, net		(204	)		—		—			—			—			—			—			—			—			—
Issuance in connection with vesting of restricted stock units		23,211			—		—			—			—			—			—			—			—			—
Dividends paid on common stock ($0.08 per share)		—			—		—			—			—			(1,867	)		—			(1,867	)		—			(1,867	)
Net change in unrealized gains on investments, net of tax		—			—		—			—			—			—			(906	)		(906	)		—			(906	)
Balance at June 30, 2023		28,947,171		$	289	$	285,435			(5,602,154	)	$	(45,538	)	$	82,539		$	(3,749	)	$	318,976		$	68,788		$	387,764

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

Page 8 of 60

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended June 30,
(Dollars in thousands)	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income resulting from operations	$	20,149		$	32,555
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:
Provision for credit losses		35,778			12,514
Paid-in-kind interest income		(1,263	)		(644	)
Depreciation and amortization		2,717			2,538
Amortization of origination fees, net		4,298			4,667
(Decrease) increase in deferred and other tax liabilities, net		(1,432	)		3,164
Net change in value of loan collateral in process of foreclosure		6,642			4,362
Net (gains) loss on investments		(3,655	)		99
Stock-based compensation expense		3,092			2,250
Decrease (increase) in accrued interest receivable		239			(732	)
Increase in other assets		(2,684	)		(10,989	)
(Decrease) increase in accounts payable and accrued expenses		(5,104	)		8,841
Increase (decrease) in accrued interest payable		1,123			(341	)
Net cash provided by operating activities		59,900			58,284
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(491,072	)		(583,669	)
Proceeds from principal receipts, sales, maturities, and recoveries of loans		277,014			313,847
Purchases of investments		(6,059	)		(8,224	)
Proceeds from principal receipts, sales, and maturities of investments		8,735			1,400
Proceeds from the sale and principal payments on loan collateral in process of foreclosure		6,865			11,308
Net cash used for investing activities		(204,517	)		(265,338	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed		558,266			513,795
Repayments of time deposits and funds borrowed		(393,299	)		(280,622	)
Cash dividends paid on common stock		(4,731	)		(3,663	)
Distributions to non-controlling interests		(3,024	)		(3,024	)
Payment of withholding taxes on net settlement of vested stock		(944	)		(768	)
Treasury stock repurchased		(3,641	)		—
Proceeds from the exercise of stock options		106			292
Net cash provided by financing activities		152,733			226,010
NET INCREASE IN CASH AND CASH EQUIVALENTS		8,116			18,956
Cash and cash equivalents, beginning of period (1)		149,845			105,598
Cash and cash equivalents, end of period (1)	$	157,961		$	124,554
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest	$	37,076		$	25,999
Cash paid during the period for income taxes		10,745			8,662
NON-CASH INVESTING
Loans transferred to loan collateral in process of foreclosure, net	$	11,094		$	10,654

(1)Includes federal funds sold.

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

Page 9 of 60

MEDALLION FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2024

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

Medallion Financial Corp., or the Company, is a specialty 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, or the Bank, a Federal Deposit Insurance Corporation, or 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 formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles, or RVs, boats, collector automobiles, and other consumer recreational equipment and to finance home improvements such as roofs, swimming pools, and windows. Prior to 2015, the Bank originated commercial loans to finance the purchase of taxi medallions, all of which are serviced by the Company. The loans are financed primarily with time certificates of deposit which are originated nationally through a variety of brokered deposit relationships.

The Company also conducts business through its subsidiaries Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; Medallion Funding LLC, or MFC, an SBIC, which historically was the Company's primary taxi medallion lending company; and Freshstart Venture Capital Corp., or FSVC, which historically originated and serviced taxi medallion and commercial loans and was an SBIC through 2023. Medallion Capital and MFC, as SBICs, are regulated by the Small Business Administration, or SBA. Medallion Capital is financed in part by the SBA.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured trust 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 $34.0 million at June 30, 2024, are comprised solely of a subordinated note from the Company and 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.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S., or 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 loan collateral 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. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

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.

The Company’s investment in the Bank is consolidated for financial statement purposes. In the notes to the consolidated financial statements included in its Annual Report on Form 10-K, the Company presents its investment in the Bank.

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. As of June 30, 2024, cash includes $1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years.

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Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or 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 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.8 million and $11.4 million at June 30, 2024 and December 31, 2023, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. During the first quarter of 2024, $4.7 million of unrealized appreciation was recorded with respect to a single equity investment, which was realized in the quarter ended June 30, 2024, with the unrealized appreciation being realized. As of June 30, 2024, cumulative impairment of $4.3 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both June 30, 2024 and December 31, 2023, the fair value of these securities were $1.7 million and are included in other assets on the consolidated balance sheet.

The following table presents the unrealized portion related to the equity securities held.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Net losses recognized during the period on equity securities	$	(7	)	$	(28	)	$	(26	)	$	—
Less: Net gains (losses) recognized during the period on equity    securities sold during the period		—			—			—			—
Unrealized losses recognized during the reporting period on    equity securities still held at the reporting date	$	(7	)	$	(28	)	$	(26	)	$	—

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in 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 $0.1 million at both June 30, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 2024 and 2023. 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable.

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 are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At June 30, 2024 and December 31, 2023, net loan origination costs were $44.6 million and $40.0 million. Net amortization to income was $2.3 million and $4.3 million for the three and six months ended June 30, 2024 and was $2.4 million and $4.3 million for the three and six months ended June 30, 2023.

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Interest income is recorded on the accrual basis. Taxi 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 loan portfolio is typified by a larger number of smaller dollar loans that have similar characteristics. A loan is nonperforming when based on current information and events, it is unlikely the Company will be able 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 nonperforming. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation 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 by writing 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 recoveries. Total loans 90 days or more past due were $15.6 million at June 30, 2024, or 0.67% of the total loan portfolio, compared to $16.8 million, or 0.77%, at December 31, 2023. Beginning in the first quarter of 2023, the Company began charging off recreation loans in the event that the borrowers file for bankruptcy, regardless of the loans aging.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include interest 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. Modified loans are considered nonperforming loans.

Loan collateral in process of foreclosure primarily includes taxi 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. For New York City taxi medallion loans in the process of foreclosure, the Company continued to utilize a net value of $79,500 when assessing net realizable value for these taxi medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification, or ASC, Topic 860, Transfers and Servicing, or 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 $14.0 million at June 30, 2024 and December 31, 2023. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of June 30, 2024 and December 31, 2023.

Allowance for Credit Losses

On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquent loan performance and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance.

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The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)	December 31, 2022 Pre-Topic 326 Adoption		Effect of ASC 326 Adoption (Transition Amounts)		January 1, 2023 Post-ASC 326 Adoption
Assets:
Loans:
Recreation	$	41,966	$	10,037	$	52,003
Home improvement		11,340		1,518		12,858
Commercial		1,049		2,157		3,206
Taxi medallion		9,490		—		9,490
Strategic partnership		—		—		—
Allowance for credit losses on loans	$	63,845	$	13,712	$	77,557

Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for taxi medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available.

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, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of June 30, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $19.9 million and $20.6 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2024 and 2023 was $0.4 million and $0.7 million. Management performed a qualitative assessment of goodwill and intangibles for impairment at December 31, 2023, concluding that there was no impairment of these assets.

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)	June 30, 2024		December 31, 2023
Brand-related intellectual property	$	15,125	$	15,675
Home improvement contractor relationships		4,744		4,916
Total intangible assets	$	19,869	$	20,591

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 $0.1 million and $0.2 million for the three and six months ended June 30, 2024 and 2023.

Deferred Costs

Deferred financing costs 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, included as Interest expense in the Consolidated Statements of Operations, was $0.9 million and $1.8 million for the three and six months ended June 30, 2024 and was $0.8 million and $1.5 million for the three and six months ended June 30, 2023. 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 will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

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Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or 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 the Company’s 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. 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.

Earnings Per Share (EPS)

Basic earnings per share are computed by dividing net income 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 considering 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 June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2024		2023		2024		2023
Net income attributable to common stockholders	$	7,101	$	14,170	$	17,125	$	29,531
Weighted average common shares outstanding applicable to basic EPS		22,598,102		22,488,463		22,619,743		22,416,089
Effect of restricted stock grants		404,499		276,420		507,416		379,924
Effect of dilutive stock options		163,340		43,567		209,067		96,342
Effect of performance stock unit grants		287,221		45,477		272,878		22,739
Adjusted weighted average common shares outstanding applicable to diluted EPS		23,453,162		22,853,927		23,609,104		22,915,094
Basic net income per share	$	0.31	$	0.63	$	0.76	$	1.32
Diluted net income per share		0.30		0.62		0.73		1.29

Potentially dilutive common shares excluded from the above calculations aggregated 101,350 and 644,478 shares as of June 30, 2024 and 2023.

Stock Compensation

The Company follows FASB ASC Topic 718, or 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 income 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 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 six months ended June 30, 2024 and 2023, the Company issued 296,178 and 316,483 restricted shares of stock-based compensation awards, 215,687 and 296,444 performance stock units, and 92,350 and 0 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.6 million and $3.1 million, or $0.07 and $0.13 per share for the three and six months ended June 30, 2024, and $1.2 million, and $2.2 million or $0.05 and $0.10 per share per common share for the three and six months ended June 30, 2023, of non-cash stock-based compensation expense related to the grants. As of June 30, 2024, the total remaining unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units was $8.4 million, which is expected to be recognized over the next 11 quarters.

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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 with, such as certain purchases of assets, 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%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2024, the Bank’s Tier 1 leverage ratio was 16.1%. 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			June 30, 2024			December 31, 2023
Common equity tier 1 capital							$	306,186		$	293,774
Tier 1 capital								374,974			362,561
Total capital								404,742			390,153
Average assets								2,322,625			2,232,816
Risk-weighted assets								2,326,972			2,155,641
Leverage ratio (1)		4.0	%		5.0	%		16.1	%		16.2	%
Common equity tier 1 capital ratio (2)		7.0			6.5			13.2			13.6
Tier 1 capital ratio (3)		8.5			8.0			16.1			16.8
Total capital ratio (3)		10.5			10.0			17.4			18.1

(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 the table above, the minimum risk-based ratios as of June 30, 2024 and December 31, 2023 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2024 and December 31, 2023.

Recently Issued and Adopted Accounting Standards

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. The amendments in this update seek to clarify or improve disclosure and presentation requirements. The amendments in this update will be effective on the date on which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, with early adoption prohibited.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, or Topic 280: Improvements to Reportable Segment Disclosures. The main objective of this update is to provide transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and to be included in interim periods beginning after December 15, 2024. The Company is assessing the impact of the update on the accompanying financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes, or Topic 740: Improvements to Income Tax Disclosures. The main objective of this update is to improve financial reporting disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update are effective for the annual periods beginning after December 15, 2024. The Company is assessing the impact of the update on the accompanying financial statements.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.

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(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of June 30, 2024 and December 31, 2023:

June 30, 2024 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	43,255	$	2	$	(4,763	)	$	38,494
State and municipalities		16,751		52		(1,620	)		15,183
Agency bonds		2,183		—		(30	)		2,153
Total	$	62,189	$	54	$	(6,413	)	$	55,830
December 31, 2023 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	44,653	$	—	$	(4,791	)	$	39,862
State and municipalities		13,733		21		(1,501	)		12,253
Agency bonds		2,187		—		(20	)		2,167
Total	$	60,573	$	21	$	(6,312	)	$	54,282

The amortized cost and estimated market value of investment securities at June 30, 2024 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.

June 30, 2024 (Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	2,039	$	1,996
Due after one year through five years		5,820		5,608
Due after five years through ten years		8,380		7,370
Due after ten years		45,950		40,856
Total	$	62,189	$	55,830

The following tables show information pertaining to securities with gross unrealized losses at June 30, 2024 and December 31, 2023, 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
June 30, 2024 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	(30	)	$	1,988	$	(4,733	)	$	36,024
State and municipalities		(70	)		3,130		(1,550	)		10,005
Agency bonds		—			—		(30	)		2,153
Total	$	(100	)	$	5,118	$	(6,313	)	$	48,182
	Less than Twelve Months					Twelve Months and Over
December 31, 2023 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	(78	)	$	5,797	$	(4,714	)	$	33,971
State and municipalities		(204	)		4,839		(1,296	)		7,371
Agency bonds		—			—		(20	)		2,167
Total	$	(282	)	$	10,636	$	(6,030	)	$	43,509

As of June 30, 2024 and December 31, 2023, the Company had 60 securities with unrealized losses that have not been recognized in income. The investments are mortgage-backed securities and similar instruments with lower risk characteristics. The Company regularly reviews investment securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period. The Company does not intend to sell its investment securities that are in an unrealized loss position and believes that it is unlikely that it will be required to sell these securities before recovery of the amortized cost.

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(4) LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2024 and December 31, 2023.

	June 30, 2024						December 31, 2023
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	1,497,428			63	%	$	1,336,226			60	%
Home improvement		773,184			32			760,617			34
Commercial		110,197			5			114,827			5
Taxi medallion		3,482		*				3,663		*
Strategic partnership		1,299		*				553		*
Total gross loans		2,385,590			100	%		2,215,886			100	%
Allowance for credit losses		(89,788	)					(84,235	)
Total net loans	$	2,295,802					$	2,131,651

(*) Less than 1%.

The following tables show the activity of the gross loans for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2024	$	1,365,165		$	752,262		$	106,570		$	3,560		$	869		$	2,228,426
Loan originations		209,563			67,990			7,000			250			24,288			309,091
Principal receipts, sales, and maturities		(61,553	)		(42,492	)		(3,961	)		(328	)		(23,858	)		(132,192	)
Charge-offs		(14,627	)		(4,063	)		—			—			—			(18,690	)
Transfer to loan collateral in process of foreclosure, net		(5,669	)		—			—			—			—			(5,669	)
Amortization of origination fees, net		(3,214	)		913			10			—			—			(2,291	)
Origination costs, net		7,763			(1,426	)		(77	)		—			—			6,260
Paid-in-kind interest		—			—			655			—			—			655
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2023	$	1,336,226		$	760,617		$	114,827		$	3,663		$	553		$	2,215,886
Loan originations		315,328			119,566			7,000			250			40,034			482,178
Principal receipts, sales, and maturities		(115,589	)		(97,409	)		(12,833	)		(431	)		(39,288	)		(265,550	)
Charge-offs		(32,728	)		(8,961	)		—			—			—			(41,689	)
Transfer to loan collateral in process of foreclosure, net		(11,094	)		—			—			—			—			(11,094	)
Amortization of origination fees, net		(6,166	)		1,851			17			—			—			(4,298	)
Origination costs, net		11,451			(2,480	)		(77	)		—			—			8,894
Paid-in-kind interest		—			—			1,263			—			—			1,263
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2023	$	1,213,380		$	669,642		$	95,329		$	4,059		$	1,770		$	1,984,180
Loan originations		190,007			117,035			4,750			1,300			33,174			346,266
Principal receipts, sales, and maturities		(63,463	)		(55,350	)		(6,922	)		(1,531	)		(33,613	)		(160,879	)
Charge-offs		(9,166	)		(2,575	)		(900	)		(221	)		—			(12,862	)
Transfer to loan collateral in process of foreclosure, net		(3,991	)		—			—			(159	)		—			(4,150	)
Amortization of origination fees, net		(3,159	)		665			—			—			—			(2,494	)
Origination costs, net		7,506			(949	)		—			—			—			6,557
Paid-in-kind interest		—			—			380			—			—			380
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2022	$	1,183,512		$	626,399		$	92,899		$	13,571		$	572		$	1,916,953
Loan originations		291,688			212,016			7,750			1,923			60,180			573,557
Principal receipts, sales, and maturities		(119,680	)		(105,205	)		(7,756	)		(5,926	)		(59,421	)		(297,988	)
Charge-offs		(21,756	)		(4,489	)		(900	)		(3,814	)		—			(30,959	)
Transfer to loan collateral in process of foreclosure, net		(8,348	)		—			—			(2,306	)		—			(10,654	)
Amortization of origination fees, net		(5,918	)		1,251			—			—			—			(4,667	)
Origination costs, net		11,616			(1,504	)		—			—			—			10,112
Paid-in-kind interest		—			—			644			—			—			644
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998

Page 17 of 60

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Allowance for credit losses – beginning balance (1)	$	83,827		$	70,280		$	84,235		$	63,845
CECL transition amount upon ASU 2016-13 adoption		—			—			—			13,712
Charge-offs
Recreation		(14,627	)		(9,166	)		(32,728	)		(21,756	)
Home improvement		(4,063	)		(2,575	)		(8,961	)		(4,489	)
Commercial		—			(900	)		—			(900	)
Taxi medallion		—			(221	)		—			(3,814	)
Total charge-offs		(18,690	)		(12,862	)		(41,689	)		(30,959	)
Recoveries
Recreation		3,962			3,282			7,510			6,053
Home improvement		1,243			627			2,154			1,259
Commercial		—			—			20			10
Taxi medallion		869			5,168			1,780			8,537
Total recoveries		6,074			9,077			11,464			15,859
Net charge-offs (2)		(12,616	)		(3,785	)		(30,225	)		(15,100	)
Provision for credit losses		18,577			8,476			35,778			12,514
Allowance for credit losses – ending balance (3)	$	89,788		$	74,971		$	89,788		$	74,971

(1)2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

(2)As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.

(3)As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2024, by the year of origination:

Three Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	4,099	$	5,049	$	1,990	$	986	$	2,404	$	14,627
Home improvement		40		1,508		1,594		507		119		295		4,063
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	5,607	$	6,643	$	2,497	$	1,105	$	2,699	$	18,690

Six Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	7,862	$	11,867	$	5,487	$	2,275	$	5,138	$	32,728
Home improvement		40		3,032		3,274		1,670		406		539		8,961
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	10,894	$	15,141	$	7,157	$	2,681	$	5,677	$	41,689

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2023, by the year of origination:

Three Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	3,568	$	2,344	$	785	$	918	$	1,507	$	9,166
Home improvement		39		1,548		473		158		91		266		2,575
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		221		221
Total	$	83	$	5,116	$	2,817	$	943	$	1,909	$	1,994	$	12,862

Six Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	7,176	$	5,414	$	2,456	$	2,472	$	4,194	$	21,756
Home improvement		39		2,452		1,101		301		222		374		4,489
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		3,814		3,814
Total	$	83	$	9,628	$	6,515	$	2,757	$	3,594	$	8,382	$	30,959

Page 18 of 60

The following tables set forth the allowance for credit losses by type as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	65,140		73	%		4.35	%		292.79	%
Home improvement		18,388		20			2.38			82.65
Commercial		4,861		5			4.41			21.85
Taxi medallion		1,399		2			40.18			6.29
Total	$	89,788		100	%		3.76	%		403.58	%

December 31, 2023 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	57,532		68	%		4.31	%		221.50	%
Home improvement		21,019		25			2.76			80.92
Commercial		4,148		5			3.61			15.97
Taxi medallion		1,536		2			41.93			5.91
Total	$	84,235		100	%		3.80	%		324.31	%

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the taxi medallion loan portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Total nonaccrual loans	$	22,248		$	25,974
Interest foregone quarter to date		464			417
Amount of foregone interest applied to principal in the quarter		72			59
Interest foregone year to date		662			928
Amount of foregone interest applied to principal for the year		133			238
Interest foregone life-to-date		3,162			2,119
Amount of foregone interest applied to principal life-to-date		814			822
Percentage of nonaccrual loans to gross loan portfolio		0.9	%		1.2	%
Percentage of allowance for credit losses to nonaccrual loans		403.6	%		324.3	%

The following tables present the performance status of loans as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,490,965	$	6,463	$	1,497,428		0.43	%
Home improvement		771,881		1,303		773,184		0.17
Commercial		99,197		11,000		110,197		9.98
Taxi medallion		—		3,482		3,482		100.00
Strategic partnership		1,299		—		1,299		—
Total	$	2,363,342	$	22,248	$	2,385,590		0.93	%
December 31, 2023 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,326,567	$	9,659	$	1,336,226		0.72	%
Home improvement		759,128		1,489		760,617		0.20
Commercial		103,664		11,163		114,827		9.72
Taxi medallion		—		3,663		3,663		100.00
Strategic partnership		553		—		553		—
Total	$	2,189,912	$	25,974	$	2,215,886		1.17	%

For those loans aged under 90 days past due, 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.

Page 19 of 60

The following tables show the aging of all loans as of June 30, 2024 and December 31, 2023.

June 30, 2024	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	35,094	$	13,278	$	5,938	$	54,310	$	1,394,199	$	1,448,509	$	—
Home improvement		3,637		1,993		1,305		6,935		770,331		777,266		—
Commercial		—		—		8,396		8,396		102,016		110,412		—
Taxi medallion		73		—		—		73		3,409		3,482		—
Strategic partnership		—		—		—		—		1,299		1,299		—
Total	$	38,804	$	15,271	$	15,639	$	69,714	$	2,271,254	$	2,340,968	$	—

(1)Excludes $44.6 million of capitalized loan origination costs.

December 31, 2023	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	40,282	$	15,039	$	9,095	$	64,416	$	1,228,175	$	1,292,591	$	—
Home improvement		3,936		2,562		1,502		8,000		756,069		764,069		—
Commercial		—		2,156		6,240		8,396		107,140		115,536		—
Taxi medallion		201		—		—		201		3,462		3,663		—
Strategic partnership		—		—		—		—		553		553		—
Total	$	44,419	$	19,757	$	16,837	$	81,013	$	2,095,399	$	2,176,412	$	—

(1)Excludes $40.0 million of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the taxi medallion loans was approximately 174% and 183% as of June 30, 2024 and December 31, 2023.

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and taxi medallion loans, for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2024	$	1,475		$	8,723		$	10,198
Transfer from loans, net		5,669			—			5,669
Sales		—			—			—
Cash payments received		(2,225	)		(881	)		(3,106	)
Collateral valuation adjustments		(3,478	)		76			(3,402	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2023	$	1,779		$	9,993		$	11,772
Transfer from loans, net		11,094			—			11,094
Sales		—			(39	)		(39	)
Cash payments received		(4,672	)		(2,154	)		(6,826	)
Collateral valuation adjustments		(6,760	)		118			(6,642	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2023	$	1,461		$	19,006		$	20,467
Transfer from loans, net		3,991			159			4,150
Sales		(2,583	)		(553	)		(3,136	)
Cash payments received		(128	)		(2,517	)		(2,645	)
Collateral valuation adjustments		(2,012	)		(21	)		(2,033	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2022	$	1,376		$	20,443		$	21,819
Transfer from loans, net		8,348			2,306			10,654
Sales		(4,778	)		(568	)		(5,346	)
Cash payments received		(128	)		(5,834	)		(5,962	)
Collateral valuation adjustments		(4,089	)		(273	)		(4,362	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803

Page 20 of 60

As of June 30, 2024, taxi medallion loans in the process of foreclosure included 326 taxi medallions in the New York City market, 188 taxi medallions in the Chicago market, 23 taxi medallions in the Newark market, and 31 taxi medallions in various other markets.

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

	Payments Due for the Twelve Months Ending June 30,
(Dollars in thousands)	2025		2026		2027		2028		2029		Thereafter		June 30, 2024 (1)		December 31, 2023(1)		Interest Rate (2)
Deposits (3)	$	867,211	$	391,277	$	433,022	$	118,517	$	199,629	$	—	$	2,009,656	$	1,869,439		3.50	%
Retail and privately placed notes		—		31,250		—		53,750		39,000		17,500		141,500		139,500		8.10
SBA debentures and borrowings		12,500		15,500		4,500		—		2,500		37,750		72,750		75,250		3.54
Trust preferred securities		—		—		—		—		—		33,000		33,000		33,000		7.73
Federal reserve and other borrowings		25,000		—		—		—		—		—		25,000		—		5.50
Total	$	904,711	$	438,027	$	437,522	$	172,267	$	241,129	$	88,250	$	2,281,906	$	2,117,189		3.87	%

(1)Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

(2)Weighted average contractual rate as of June 30, 2024.

(3)Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 2024 and December 31, 2023.

(A) DEPOSITS

Most deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger 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. Additionally, the Bank raises deposits through listing services and, as of June 30, 2024 and December 31, 2023, the Bank had $16.1 million and $11.8 million in listing service deposit balances from other financial institutions. In April 2023, the Bank began to originate retail savings deposits through a third-party service provider and, as of June 30, 2024 and December 31, 2023, the Bank had $10.9 million and $14.9 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2024.

(Dollars in thousands)	June 30, 2024
Three months or less	$	237,363
Over three months through six months		151,130
Over six months through one year		478,718
Over one year		1,142,445
Deposits		2,009,656
Strategic partner collateral deposits		1,750
Total deposits	$	2,011,406

(B) FEDERAL RESERVE DISCOUNT WINDOW AND OTHER BORROWINGS

In March 2023, the Bank established a discount window line of credit at the Federal Reserve. As of June 30, 2024, the Bank had $99.2 million in home improvement loans pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is approximately 40% of book value, for a total of approximately $40.1 million in secured borrowing capacity, of which $25 million was utilized as of June 30, 2024.

The Bank has borrowing arrangements with several commercial banks. These agreements are accommodations that can be terminated at any time, for any reason, and allow the Bank to borrow up to $75.0 million. As of June 30, 2024, there were no outstanding amounts with respect to these arrangements.

(C) PRIVATELY PLACED NOTES

In June 2024, the Company amended the notes previously issued in a private placement to certain institutional investors in December 2023, increasing the principal amount from $12.5 million to $17.5 million, reducing the interest rate to 8.875% from 9.0%, and extending the maturity date from December 2033 to June 2039. The Company used, and intends to use, the net proceeds from the offering for general corporate purposes, which included the repayment of the remaining 8.25% notes that matured in March 2024 described below.

In September 2023, the Company completed a private placement to certain institutional investors of $39.0 million aggregate principal amount of 9.25% unsecured senior notes due September 2028, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including the repurchase of $33.0 million of the 8.25% notes issued in March 2019 with a maturity date of March 2024 described below.

Page 21 of 60

In February 2021, the Company completed a private placement to certain institutional investors of $25.0 million aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3.3 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $3.0 million principal amount of such notes was issued to certain institutional investors. The Company used the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt.

In December 2020, the Company completed a private placement to certain institutional investors of $33.6 million aggregate principal amount of 7.50% unsecured senior notes due December 2027, with interest payable semiannually. In February and March 2021, an additional $8.5 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $11.7 million principal amount of such notes was issued to certain institutional investors. The Company used the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt.

In March 2019, the Company completed a private placement to certain institutional investors of $30.0 million aggregate principal amount of 8.25% unsecured senior notes due in March 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 $4.1 million in 2019. In August 2019, an additional $6.0 million principal amount of such notes was issued to certain institutional investors. As described above, in September 2023, the Company repurchased and cancelled $33.0 million of these notes. The remaining $3.0 million principal amount outstanding was repaid in March 2024 at maturity.

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for Medallion Capital and FSVC, typically for a four and a half year term and a 1% fee. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33.5 million in principal into a new loan by the SBA to FSVC in the principal amount of $34.0 million, or the SBA Loan. In connection with the SBA Loan, FSVC executed a Note, or the SBA Note, with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34.0 million. The SBA Loan bore an interest rate of 3.25% with all remaining unpaid principal and interest being due on April 30, 2024, the maturity date. In October 2023, FSVC repaid, in full, all amounts due to the SBA under the SBA Note.

On July 10, 2023, Medallion Capital accepted a commitment from the SBA for $20.0 million in debenture financing. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with an additional $0.4 million fee to be paid pro-rata as Medallion Capital draws under the commitment. As of June 30, 2024, $9.8 million of the commitment had been drawn, and $8.0 million was drawable, with the balance of $2.2 million drawable upon the infusion of $1.1 million of capital from either the capitalization of retained earnings or a capital infusion into Medallion Capital from the Company.

On February 28, 2024, Medallion Capital accepted a commitment from the SBA for $18.5 million in debenture financing with a ten-year term. Medallion Capital can draw funds under the commitment, in whole or in part, until September 30, 2028. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with the remaining $0.4 million of the fee to be paid pro rata as Medallion Capital draws under the commitment. As of June 30, 2024, none of the commitment had been drawn, with the entire $18.5 million drawable upon the infusion of $9.3 million of capital from either the capitalization of retained earnings or a capital infusion into Medallion Capital from the Company.

(E) TRUST PREFERRED SECURITIES

In June 2007, the Company issued and sold $36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35.0 million of trust preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. Interest is calculated using the Secured Overnight Financing Rate (SOFR) adjusted by a relevant spread adjustment of approximately 26 basis points, plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the trust preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the trust preferred securities were repurchased from a third-party investor. As of June 30, 2024, $33.0 million was outstanding on the trust preferred securities.

(F) OTHER BORROWINGS

In January 2024, Medallion Capital entered into a $7.5 million revolving credit facility with a regional bank. The facility allows Medallion Capital to finance, on a short-term basis, investments for which it anticipates receiving financing from the SBA. The facility bears interest at a rate of 2.75% plus one month SOFR, has an annual facility fee of 0.1%, matures on January 1, 2025, and requires that Medallion Capital have total commitments available from the SBA of at least the total requested advance. As of June 30, 2024, the facility had no outstanding borrowings.

(G) COVENANT COMPLIANCE

Certain of the Company's debt agreements contain financial covenants that require the Company to maintain certain financial ratios and minimum tangible net worth. As of June 30, 2024, the Company was in compliance with all such covenants.

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(6) LEASES

The Company has leased premises that expire at various dates through February 28, 2031 subject to various 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 six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Operating lease costs	$	607		$	597		$	1,210		$	1,195
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		698			603			1,355			1,226
Right-of-use asset obtained in exchange for lease liability		(58	)		(56	)		(118	)		(111	)

The following table presents the breakout of the operating leases as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	$	7,728		$	8,785
Other current liabilities		2,267			2,472
Operating lease liabilities		6,071			7,019
Total operating lease liabilities		8,338			9,491
Weighted average remaining lease term	4.5 years			4.9 years
Weighted average discount rate		5.56	%		5.47	%

At June 30, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)
Remainder of 2024	$	1,268
2025		2,546
2026		2,567
2027		1,342
2028		573
Thereafter		1,139
Total lease payments		9,435
Less imputed interest		1,097
Total operating lease liabilities	$	8,338

(7) 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 the Company's deferred and other tax assets and liabilities as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Goodwill and other intangibles	$	42,853		$	43,034
Provision for credit losses		(12,844	)		(13,032	)
Net operating loss carryforwards (1)		(3,804	)		(3,802	)
Accrued expenses, compensation, and other assets		(5,433	)		(6,976	)
Unrealized losses on other investments		(1,971	)		(1,877	)
Total deferred tax liability		18,801			17,347
Valuation allowance		3,593			3,860
Deferred tax liability, net	$	22,394		$	21,207

(1)As of June 30, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of June 30, 2024.

Page 23 of 60

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2024			2023		2024		2023
Current
Federal	$	4,792		$	3,873	$	6,521	$	6,456
State		1,476			1,175		2,119		1,964
Deferred
Federal		(1,916	)		204		1,200		2,450
State		(570	)		220		300		984
Net provision for income taxes	$	3,782		$	5,472	$	10,140	$	11,854

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2024		2023		2024		2023
Statutory Federal income tax provision at 21%	$	2,603	$	4,442	$	6,361	$	9,326
State and local income taxes, net of federal income tax benefit		509		869		1,244		1,824
Non-deductible expenses		374		19		2,154		1,076
Other		296		142		381		(372	)
Total income tax provision	$	3,782	$	5,472	$	10,140	$	11,854

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 June 30, 2024.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2020 through the present are the more significant filings that are open for examination.

(8) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 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, restricted stock units, performance share units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020, and subsequently on April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 14, 2022. A total of 5,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,379,328 remained issuable as of June 30, 2024. 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 Non-Employee Director Stock Option Plan, or the 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 vested annually, as defined in the 2015 Director Plan. The term of the options could not exceed ten years.

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The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan, or 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 vested 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 June 30, 2024, 943,041 options on the Company’s common stock were outstanding under the Company’s plans, of which 854,742 options were vested. Additionally, as of June 30, 2024, there were 887,665 unvested shares of restricted stock, 512,131 unvested performance stock units, 92,350 unvested restricted stock units, and 234,330 vested restricted stock units under the 2018 Plan.

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. There were no options granted during the six months ended June 30, 2024 and 2023.

During 2023, the Company’s Compensation Committee of the Board of Directors began granting performance stock units, or PSUs, to certain officers and employees of the Company. Granted PSUs are subject to specified performance criteria for a particular performance period. The number of PSUs that vest can range from zero to 200% of the grant amount. In addition, dividends that accrue during the vesting period are reinvested in dividend equivalent PSUs. PSUs and the related dividend equivalent PSUs are converted into shares of common stock after vesting. Once the PSUs and dividend equivalent PSUs have vested, shares of common stock are delivered.

The following table presents the activity for the restricted stock programs for the first and second quarter of 2024 and the 2023 full year.

	Number of Shares				Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2022		857,288		$	4.89 - 7.25		$	7.27
Granted		399,793			7.67 - 9.37			8.34
Cancelled		(12,807	)		4.89 - 8.40			7.24
Vested (1)		(248,898	)		4.89 - 7.68			7.10
Outstanding at December 31, 2023		995,376		$	4.89 - 9.37		$	7.74
Granted		296,178				8.97		8.97
Cancelled		(1,208	)		6.86 - 9.37			8.13
Vested (1)		(400,985	)		4.89 - 8.40			7.69
Outstanding at March 31, 2024 (2)		889,361		$	4.89 - 9.37		$	8.18
Granted		—				—		—
Cancelled		(1,696	)		4.89 - 9.37			7.88
Vested		—				—		—
Outstanding at June 30, 2024 (2)		887,665		$	4.89 - 9.37		$	8.18

(1)The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023.

(2)The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.

During the three and six months ended June 30, 2024, the Company granted 215,687 PSUs at a grant price of $8.97 and during the year ended December 31, 2023, granted 296,444 PSUs at a grant price of $6.08. The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three-year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date or are forfeited if the performance conditions are not met.

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The following table presents the activity for the stock option programs for the first and second quarter of 2024 and the 2023 full year.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2022		1,061,849		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(33,382	)		4.89 - 9.38			6.80
Exercised (1)		(68,945	)		4.89 - 7.25			6.44
Outstanding at December 31, 2023		959,522		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(85	)			4.89		4.89
Exercised (1)		(13,383	)		4.89 - 7.25			6.61
Outstanding at March 31, 2024 (2)		946,054		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(146	)			4.89		4.89
Exercised (1)		(2,867	)		4.89 - 7.25			6.14
Outstanding at June 30, 2024 (2)		943,041		$	2.14 - 9.38		$	6.51
Options exercisable at:
December 31, 2023		697,647			2.14 - 9.38		$	6.51
June 30, 2024 (2)		854,742		$	2.14 - 9.38		$	6.52

(1)The aggregate intrinsic value of exercised options, 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 less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.

(2)The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024.

The following table presents the activity for the unvested options outstanding under the plans described above for the 2024 first and second quarter.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2023		261,875		$	4.89 - 7.25		$	6.49
Granted		—				—		—
Cancelled		—				—		—
Vested (1)		(173,430	)		4.89 - 7.25			6.56
Outstanding at March 31, 2024		88,445		$	4.89 - 6.79		$	6.37
Granted		—				—		—
Cancelled		(146	)			4.89		4.89
Vested (1)		—				—		—
Outstanding at June 30, 2024		88,299		$	4.89 - 6.79		$	6.37

(1) The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024.

During the three and six months ended June 30, 2024, the Company granted 92,350 restricted stock units, or RSUs, with a vesting date of June 11, 2025 at a grant price of $8.23 and during the year ended December 31, 2023, granted 83,158 RSUs which vested on June 22, 2024 at a grant price of $9.14. For the RSUs granted in 2024 and 2023, unit holders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of June 30, 2024, there were 326,680 RSUs outstanding, including 234,330 which had previously vested.

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(9) SEGMENT REPORTING

The Company has five business segments, which include four lending segments and one 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 taxi medallion lending. The recreation and home improvement lending segments are operated by the Bank and loans are made to borrowers residing nationwide. 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, collector automobiles, and other consumer recreational equipment, of which RVs, boats, and collector automobiles make up 54%, 21%, and 11% of the segment portfolio, with no other product lines equal to or exceeding 10%, as of June 30, 2024. The highest concentrations of recreation loans are in Texas and Florida at 16% and 10% of loans outstanding and with no other states at or above 10% as of June 30, 2024. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being roofs, swimming pools, and windows at 40%, 21%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of June 30, 2024. The highest concentrations of home improvement loans are in Texas and Florida both at 10% of loans outstanding and with no other states at or above 10% as of June 30, 2024. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, construction, and wholesale trade making up 55%, 14%, and 11% of the loans outstanding as of June 30, 2024, with no other product lines exceeding 10% as of June 30, 2024. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and Texas each having 30%, 10%, and 10% of the segment portfolio, and no other states having a concentration at or greater than 10% as of June 30, 2024. The taxi medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, primarily all of which are located in the New York City metropolitan area as of June 30, 2024.

The Company's corporate and other investments segment is a non-operating segment that includes items not allocated to the Company's operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements.

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.

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The following tables present segment data as of and for the three and six months ended June 30, 2024.

Three Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	47,490		$	17,651		$	3,538		$	190		$	1,835		$	70,704
Total interest expense		10,960			6,106			1,056			25			2,689			20,836
Net interest income (loss)		36,530			11,545			2,482			165			(854	)		49,868
Provision (benefit) for credit losses		15,795			3,279			478			(975	)		—			18,577
Net interest income (loss) after loss provision		20,735			8,266			2,004			1,140			(854	)		31,291
Other income (loss), net		306			3			(14	)		334			470			1,099
Operating expenses		(11,236	)		(5,457	)		(1,437	)		(1,373	)		(492	)		(19,995	)
Net income (loss) before taxes		9,805			2,812			553			101			(876	)		12,395
Income tax (provision) benefit		(3,094	)		(802	)		(72	)		(14	)		200			(3,782	)
Net income (loss) after taxes	$	6,711		$	2,010		$	481		$	87		$	(676	)	$	8,613
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	7,101
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.95	%		1.08	%		1.86	%		4.29	%		(0.61	)%		1.30	%
Return on average stockholders' equity	*			*			*			*			*				8.14
Return on average equity		13.05			7.00			12.09			25.69			(3.88	)		8.25
Interest yield		13.30			9.32			13.08			21.62		NM				11.52
Net interest margin, gross		10.23			6.10			9.18			18.78		NM				8.12
Net interest margin, net of allowance		10.69			6.25			9.57			31.77		NM				8.42
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status (1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio (2)		2.99			1.49			—			(98.90	)	NM				2.20

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	91,417		$	35,098		$	7,183		$	330		$	3,746		$	137,774
Total interest expense		20,605			11,740			2,154			53			5,437			39,989
Net interest income (loss)		70,812			23,358			5,029			277			(1,691	)		97,785
Provision (benefit) for credit losses		32,825			4,177			694			(1,918	)		—			35,778
Net interest income (loss) after loss provision		37,987			19,181			4,335			2,195			(1,691	)		62,007
Other income, net		556			5			4,188			973			780			6,502
Operating expenses		(19,523	)		(9,571	)		(2,422	)		(2,116	)		(4,588	)		(38,220	)
Net income (loss) before taxes		19,020			9,615			6,101			1,052			(5,499	)		30,289
Income tax (provision) benefit		(6,368	)		(3,219	)		(2,043	)		(352	)		1,842			(10,140	)
Net income (loss) after taxes	$	12,652		$	6,396		$	4,058		$	700		$	(3,657	)	$	20,149
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	17,125
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.87	%		1.72	%		7.68	%		14.89	%		(1.69	)%		1.55	%
Return on average stockholders' equity	*			*			*			*			*				9.89
Return on average equity		12.31			11.04			49.32			90.99			(10.64	)		9.70
Interest yield		13.20			9.29			12.97			18.78		NM				11.42
Net interest margin, gross		10.23			6.18			9.08			15.59		NM				8.11
Net interest margin, net of allowance		10.69			6.34			9.45			26.61		NM				8.40
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status(1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio(2)		3.64			1.80			(0.04	)		(100.16	)	NM				2.68

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Page 28 of 60

The following tables present segment data as of and for the three and six months ended June 30, 2023.

Three Months June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	41,109		$	15,292		$	2,814		$	787		$	1,724		$	61,726
Total interest expense		7,580			4,194			852			46			2,363			15,035
Net interest income (loss)		33,529			11,098			1,962			741			(639	)		46,691
Provision (benefit) for credit losses		10,135			3,739			(113	)		(5,311	)		26			8,476
Net interest income (loss) after loss provision		23,394			7,359			2,075			6,052			(665	)		38,215
Other income, net		—			2			343			1,304			293			1,942
Operating expenses		(8,444	)		(4,388	)		(1,147	)		(743	)		(4,281	)		(19,003	)
Net income (loss) before taxes		14,950			2,973			1,271			6,613			(4,653	)		21,154
Income tax (provision) benefit		(3,867	)		(769	)		(329	)		(1,713	)		1,206			(5,472	)
Net income (loss) after taxes	$	11,083		$	2,204		$	942		$	4,900		$	(3,447	)	$	15,682
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	14,170
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.59	%		1.28	%		3.76	%		100.63	%		(3.69	)%		2.60	%
Return on average stockholders' equity	*			*			*			*			*				18.24
Return on average equity		22.94			8.19			23.97			641.63			(22.83	)		16.52
Interest yield		13.03			8.79			11.87			83.55		NM				11.21
Net interest margin, gross		10.63			6.38			8.28			78.67		NM				8.48
Net interest margin, net of allowance		11.08			6.53			8.54			166.23		NM				8.77
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status (1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		1.86			1.12			3.80			(525.21	)	NM				0.74

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	79,008		$	28,941		$	5,515		$	1,097		$	3,007		$	117,568
Total interest expense		13,484			7,473			1,661			113			4,544			27,275
Net interest income (loss)		65,524			21,468			3,854			984			(1,537	)		90,293
Provision (benefit) for credit losses		17,886			6,820			214			(12,395	)		(11	)		12,514
Net interest income (loss) after loss provision		47,638			14,648			3,640			13,379			(1,526	)		77,779
Other income, net		—			3			614			2,923			485			4,025
Operating expenses		(16,247	)		(8,382	)		(1,567	)		(2,770	)		(8,429	)		(37,395	)
Net income (loss) before taxes		31,391			6,269			2,687			13,532			(9,470	)		44,409
Income tax (provision) benefit		(8,380	)		(1,674	)		(718	)		(3,612	)		2,530			(11,854	)
Net income (loss) after taxes	$	23,011		$	4,595		$	1,969		$	9,920		$	(6,940	)	$	32,555
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	29,531
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.84	%		1.39	%		3.94	%		94.20	%		(3.70	)%		2.79	%
Return on average stockholders' equity	*			*			*			*			*				19.45
Return on average equity		24.13			8.76			24.74			590.25			(23.24	)		17.49
Interest yield		12.93			8.66			11.71			28.80		NM				11.01
Net interest margin, gross		10.72			6.43			8.18			25.84		NM				8.45
Net interest margin, net of allowance		11.18			6.57			8.43			73.52		NM				8.75
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status(1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		2.57			0.97			1.89			(124.01	)	NM				1.51

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Page 29 of 60

(10) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers, including Mr. Alvin Murstein and Mr. Andrew Murstein, for either a one-, two-, three-, four-, or five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or 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 or two-year term (as applicable); however, in addition to Mr. Andrew Murstein's employment agreement, as further described below, there is currently one agreement that renews after two years for additional one-year terms and one agreement with a three-year term that does not have a renewal period. 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.

On April 25, 2023, Mr. Alvin Murstein, the Company’s Chairman of the Board and Chief Executive Officer, notified the Company of his election not to renew the term of his employment pursuant to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Accordingly, the term of his employment as Chief Executive Officer of the Company will expire on May 28, 2027, unless sooner terminated in accordance with the provisions thereof.

In addition, on April 27, 2023, Mr. Andrew Murstein, the Company’s President and Chief Operating Officer, entered into an amendment to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Pursuant to such amendment, effective as of May 29, 2023, (i) the expiration of his then current term of employment shall be revised to end on May 28, 2027, and (ii) on May 29, 2024, and on each May 29 thereafter, such term of employment shall automatically renew each year for a three-year term unless, prior to the end of the first year of the then-applicable three-year term, either Mr. Murstein or the Company provides at least 30 days’ advance notice to the other party of its intention not to renew the then-applicable term of employment for a new three-year term, in each case unless such employment term is otherwise terminated pursuant to the terms thereof.

As of June 30, 2024, employment agreements expire at various dates through 2027, with future minimum payments under these agreements of approximately $9.8 million.

(B) OTHER COMMITMENTS

As of June 30, 2024, the Company had no other commitments. 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.

(C) SEC LITIGATION

On December 29, 2021, the SEC filed a civil complaint in the U.S. District Court for the Southern District of New York against the Company and its President and Chief Operating Officer alleging certain violations of the anti-fraud, books and records, internal controls and anti-touting provisions of the federal securities laws. The litigation relates to certain issues that occurred during the period 2015 to 2017, including (i) the Company’s retention of third parties in 2015 and 2016 concerning posting information about the Company on certain financial websites and (ii) the Company’s financial reporting and disclosures concerning certain assets, including Medallion Bank, in 2016 and 2017, a period when the Company had previously reported as a business development company (BDC) under the Investment Company Act of 1940. Since April 2018, the Company does not report as a BDC, and has not worked with such third parties since 2016. The Company does not expect to change previously reported financial results. The Company filed a motion to dismiss the complaint on March 22, 2022, the SEC filed an amended complaint on April 26, 2022 and the Company filed a motion to dismiss the amended complaint on August 5, 2022.

The SEC is seeking injunctive relief, disgorgement plus pre-judgment interest and civil penalties in amounts unspecified, as well as an officer and director bar against the Company’s President and Chief Operating Officer. The Company and its President and Chief Operating Officer intend to defend themselves vigorously and believe that the SEC will not prevail on its claims. Nevertheless, depending on the outcome of the litigation, the Company could incur a loss and other penalties that could be material to the Company, its results of operations and/or financial condition, as well as a bar against its President and Chief Operating Officer. In addition, the Company has and expects to further incur significant legal fees and expenses in defending against such charges by the SEC and the Company may be subject to shareholder litigation relating to these SEC matters.

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(D) OTHER LITIGATION AND REGULATORY MATTERS

The Company and its subsidiaries are subject to inquiries from certain regulators and are currently involved in various legal proceedings incident to the normal course of business, including collection matters with respect to certain loans. The Company intends to vigorously defend any outstanding claims and pursue its legal rights. In the opinion of management, based on the advice of legal counsel, except for the pending SEC litigation, as described above, 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.

(11) RELATED PARTY TRANSACTIONS

Certain directors, officers, and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, Medallion Capital, 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, serves as the Company’s Senior Vice President at a salary of $260,988 per year, an increase from $250,950 per year in 2023. Mr. Rudnick received an annual cash bonus of $95,000 and $85,000 as well as an equity bonus in the amount of $52,000 and $50,000, during the six months ended June 30, 2024 and 2023.

(12) 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 and cash equivalents – Book value equals fair value.

(b) Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes.

(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 approximates fair value.

(e) Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value.

(f) Commitments to extend credit – 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 June 30, 2024 and December 31, 2023, the estimated fair value of these off-balance-sheet instruments was not material.

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

	June 30, 2024				December 31, 2023
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash, cash equivalents, and federal funds sold (1)	$	157,961	$	157,961	$	149,845	$	149,845
Equity investments		10,795		10,795		11,430		11,430
Investment securities		55,830		55,830		54,282		54,282
Loans receivable		2,295,802		2,284,754		2,131,651		2,131,651
Accrued interest receivable (2)		13,299		13,299		13,538		13,538
Equity securities (3)		1,722		1,722		1,748		1,748
Financial liabilities
Funds borrowed		2,283,656		2,249,036		2,118,689		2,118,689
Accrued interest payable (2)		7,945		7,945		6,822		6,822

(1)Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2024 and $1.3 million as of December 31, 2023. See Note 13.

(2)Categorized as level 3 within the fair value hierarchy. See Note 13.

(3)Included within other assets on the balance sheet.

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(13) 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). The Company's 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 (levels 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 U.S. 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.

Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments at fair value on a non-recurring basis.

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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 June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Investment securities		—		55,830		—		55,830
Equity securities		1,722		—		—		1,722
Total (1)	$	1,722	$	57,080	$	—	$	58,802

(1)Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2024 related to these assets.

December 31, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Investment securities		—		54,282		—		54,282
Equity securities		1,748		—		—		1,748
Total (1)	$	1,748	$	55,532	$	—	$	57,280

(1)Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.

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 June 30, 2024 and December 31, 2023.

June, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	10,795	$	10,795
Nonaccrual loans		—		—		22,248		22,248
Loan collateral in process of foreclosure		—		—		9,359		9,359
Total	$	—	$	—	$	42,402	$	42,402

December 31, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	11,430	$	11,430
Nonaccrual loans		—		—		25,974		25,974
Loan collateral in process of foreclosure		—		—		11,772		11,772
Total	$	—	$	—	$	49,176	$	49,176

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.

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The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of June 30, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)	Fair Value at June 30, 2024		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	10,522	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Nonaccrual loans		22,248	Market approach	Historical and actual loss experience	0.00% - 23.06%
				Transfer prices (2)	$0.0 - 79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		9,359	Market approach	Transfer prices (2)	$0.0 - 79.5
				Collateral value (3)	$2.5 - $51.3

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation loan portfolio.

(Dollars in thousands except per share amounts)	Fair Value at December 31, 2023		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	11,157	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Nonaccrual loans		25,974	Market approach	Historical and actual loss experience	0.00% - 28.48%
				Transfer prices (2)	$0.0 - $79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		11,772	Market approach	Transfer prices (2)	$0.0 - $79.5
				Collateral value (3)	$2.3 - $45.0

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation loan portfolio.

(14) MEDALLION BANK PREFERRED STOCK (Non-controlling interest)

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46.0 million aggregate liquidation amount, yielding net proceeds of $42.5 million, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be the three month Secured Overnight Financing Rate, or SOFR) plus a spread of 6.46% per annum.

On July 21, 2011, the Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E for an aggregate purchase price of $26.3 million under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9% on the Series E.

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to June 30, 2024 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there were no subsequent events that required recognition or disclosure.

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

The information contained in this section should be read in conjunction with the consolidated financial statements and the accompanying notes thereto for the three and six months ended June 30, 2024 and the year ended December 31, 2023. This section is intended to provide management’s perspective of our financial condition and results of operations. In addition, this section contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors that could cause actual results and conditions to differ materially from those projected in these forward-looking statements are described in the Risk Factors section in our Annual Report on Form 10-K.

COMPANY BACKGROUND

We are a specialty finance company whose focus and growth has been our consumer finance and commercial lending businesses operated by Medallion Bank, or the Bank, and Medallion Capital, Inc., or Medallion Capital. The Bank is a wholly-owned subsidiary that originates consumer loans for the purchase of recreational vehicles, boats, collector automobiles, and home improvements, and provides loan origination and other services to fintech partners. Medallion Capital is a wholly-owned subsidiary that originates commercial loans through its mezzanine financing business. As of June 30, 2024, our consumer loans represented 95% of our gross loan portfolio, and commercial loans represented 5%. Total assets were $2.8 billion and $2.6 billion as of June 30, 2024 and December 31, 2023.

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, including bank certificates of deposit issued to consumers, debentures issued to and guaranteed by the SBA, privately placed notes, and trust preferred securities. Net interest income fluctuates with changes in the yield on our loan portfolios and changes in the cost of borrowed funds, as well as changes in the amount of interest-earning 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, either due to inflation or other factors, on a different basis than our interest-bearing liabilities. We continue to monitor global supply chain disruptions, gas prices, labor shortages, unemployment, and other factors contributing to U.S. inflation and economic health, as well as other factors which contribute to competition and changes in the demand for our loan products. We have taken, and are taking further, steps in light of a potential economic downturn and the current inflationary environment to moderate the pace of our growth.

We also provide debt, mezzanine, and equity investment capital to companies in a variety of commercial industries. 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.

The Bank is an industrial bank regulated by the FDIC and the Utah Department of Financial Institutions that originates consumer loans, raises deposits, and conducts other banking activities. The 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 referred a portion of our taxi medallion and commercial loans to the Bank, which originated these loans, and have since been serviced by Medallion Servicing Corp., or MSC. However, other than in connection with dispositions of existing taxi medallion and related assets, the Bank has not originated any new taxi medallion loans since 2014 (and Medallion Financial Corp. has not originated any new taxi medallion loans since 2015) and is working with MSC to service its remaining portfolio as it winds down. MSC earns referral and servicing fees for these activities.

In 2019, the Bank launched a strategic partnership program to provide lending and other services to financial technology, or fintech, companies. The Bank entered into an initial partnership in 2020 and began issuing its first loans. The Bank continues to evaluate and launch additional partnership programs with fintech companies.

We continue to consider various alternatives for the Bank, which may include an initial public offering of its common stock, the sale of all or part of the Bank, a spin-off or other potential transaction. We do not have a deadline for its consideration of these alternatives, and there can be no assurance that this process will result in any transaction being announced or consummated.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our accounting policies are fundamental to understanding management's discussion and analysis of its financial condition and results of operations. At June 30, 2024, we identified our policies for the allowance for credit losses, goodwill and intangible assets, and deferred taxes, to be critical accounting policies because management has to make subjective and/or complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. Our critical accounting policies are described in detail in Part I, Item 7 in Medallion Financial Corp.'s Annual Report on Form 10-K for the year ended December 31, 2023, and there have been no material changes in such policies and estimates since the date of such report.

RECENTLY ISSUED AND ADOPTED ACCOUNTING STANDARDS

On January 1, 2023, we adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, we use historical delinquent loan performance and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, we assess the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. We evaluate each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, we maintain specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance.

We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $13.7 million to our allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)	December 31, 2022 Pre-Topic 326 Adoption		Effect of ASC 326 Adoption (Transition Amounts)		January 1, 2023 Post-ASC 326 Adoption
Assets:
Loans:
Recreation	$	41,966	$	10,037	$	52,003
Home improvement		11,340		1,518		12,858
Commercial		1,049		2,157		3,206
Taxi medallion		9,490		—		9,490
Strategic partnership		—		—		—
Allowance for credit losses on loans	$	63,845	$	13,712	$	77,557

Prior to January 1, 2023, we used historical delinquency and actual loss rates with a three-year look-back period for taxi medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. The amendments in this update seek to clarify or improve disclosure and presentation requirements. The amendments in this update will be effective on the date on which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, with early adoption prohibited.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, or Topic 280: Improvements to Reportable Segment Disclosures. The main objective of this update is to provide transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and to be included in interim periods beginning after December 15, 2024. We are assessing the impact of the update on the accompanying financial statements.

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In December 2023, the FASB issued ASU 2023-09, Income Taxes, or Topic 740: Improvements to Income Tax Disclosures. The main objective of this update is to improve financial reporting disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update are effective for the annual periods beginning after December 15, 2024. We are assessing the impact of the update on the accompanying financial statements.

CONTROL STATUTES AND REGULATIONS

Because the Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act as well as Medallion Financial Corp. being 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 the Bank or Medallion Financial Corp., without, in most cases, prior written approval of the FDIC or the Commissioner of the 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 the Bank’s 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 several specified “control factors” as set forth in the applicable regulations. Although the 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 the Company 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, directly or indirectly, or through or in concert with one or more persons to: (a) direct or exercise a controlling influence over (i) the management or policies of a financial institution or (ii) the election of a majority of the directors or trustees of an institution; or (b) to vote 25% or more of any class of voting securities of a financial institution. In addition, under Utah law, there is a rebuttable presumption that a person has control of a Utah financial institution if the person has the power, directly or indirectly, or through or in concert with one or more persons, to vote more than 10% but not less than 25% of any class of voting securities of a financial institution. If any holder of any series of the Bank’s preferred stock is or becomes entitled to vote for the election of the Bank’s directors, such series will be deemed a class of voting stock, and any other person will be required to obtain the non-objection of the FDIC under the Change in Bank Control Act to acquire or maintain 10% or more of that series. 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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AVERAGE BALANCES AND RATES

The following table shows our consolidated average balance sheet, interest income and expense, and the average interest earning/bearing assets and liabilities, and which reflects the average yield on assets and average costs on liabilities for the three months ended June 30, 2024 and 2023.

	Three Months Ended June 30,
	2024								2023
(Dollars in thousands)	Average Balance			Interest		Average Yield/Cost			Average Balance			Interest		Average Yield/Cost
Interest-earning assets
Interest earning cash equivalents	$	27,877		$	290		4.20	%	$	21,731		$	171		3.16	%
Federal funds sold		76,189			1,023		5.40			70,924			925		5.23
Investment securities		54,846			528		3.87			52,178			416		3.20
Loans
Recreation		1,436,201			47,490		13.30			1,265,664			41,109		13.03
Home improvement		761,468			17,651		9.32			698,185			15,292		8.79
Commercial		108,774			3,468		12.82			95,070			2,920		12.32
Taxi medallion		3,534			180		20.49			3,778			787		83.55
Strategic partnerships		1,207			72		23.99			1,577			106		26.96
Total loans		2,311,184			68,861		11.98			2,064,274			60,214		11.70
Total interest-earning assets, before allowance		2,470,096					11.52			2,209,107					11.21
Allowance for credit losses		(86,645	)							(72,937	)
Total interest-earning assets, net of allowance	$	2,383,451		$	70,702		11.94	%	$	2,136,170		$	61,726		11.59	%
Non-interest-earning assets
Cash		37,341								24,094
Equity investments		12,425								11,154
Loan collateral in process of foreclosure		9,716								18,901
Goodwill and intangible assets		170,854								172,299
Other assets		57,099								54,494
Total non-interest-earning assets		287,435								280,942
Total assets	$	2,670,886							$	2,417,112
Interest-bearing liabilities
Deposits	$	1,951,015		$	16,524		3.41	%	$	1,753,806		$	11,330		2.59	%
Retail and privately placed notes		137,750			2,956		8.63			121,000			2,502		8.29
SBA debentures and borrowings		72,750			710		3.93			66,558			597		3.60
Trust preferred securities		33,000			646		7.87			33,000			606		7.37
Total interest-bearing liabilities		2,194,515			20,836		3.82			1,974,364			15,035		3.05
Non-interest-bearing liabilities
Deferred tax liability		22,920								25,873
Other liabilities (1)		33,488								36,115
Total non-interest-bearing liabilities		56,408								61,988
Total liabilities		2,250,923								2,036,352
Non-controlling interest		69,166								69,166
Total stockholders’ equity		350,797								311,594
Total liabilities and stockholders’ equity	$	2,670,886							$	2,417,112
Net interest income				$	49,866							$	46,691
Net interest margin, gross							8.12								8.48
Net interest margin, net of allowance							8.42	%							8.77	%

(1)Includes deferred financing costs of $8.6 million and $6.8 million as of June 30, 2024 and 2023.

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The following table shows our consolidated average balance sheet, interest income and expense, and the average interest earning/bearing assets and liabilities, and which reflects the average yield on assets and average costs on liabilities for the six months ended June 30, 2024 and 2023.

	Six Months Ended June 30,
	2024								2023
(Dollars in thousands)	Average Balance			Interest		Average Yield/Cost			Average Balance			Interest		Average Yield/Cost
Interest-earning assets
Interest earning cash equivalents	$	29,705		$	621		4.20	%	$	22,605		$	327		2.92	%
Federal funds sold		74,204			2,077		5.63			71,057			1,627		4.62
Investment securities		54,427			994		3.67			50,477			781		3.12
Loans
Recreation		1,392,205			91,417		13.20			1,232,339			79,008		12.93
Home improvement		759,776			35,098		9.29			673,635			28,941		8.66
Commercial		111,413			7,130		12.87			94,978			5,604		11.90
Taxi medallion		3,574			320		18.01			7,680			1,097		28.80
Strategic partnerships		985			117		23.89			1,406			183		26.25
Total loans		2,267,953			134,082		11.89			2,010,038			114,833		11.52
Total interest-earning assets, before allowance		2,426,289					11.42			2,154,177					11.01
Allowance for credit losses		(85,284	)							(72,532	)
Total interest-earning assets, net of allowance	$	2,341,005		$	137,774		11.84	%	$	2,081,645		$	117,568		11.39	%
Non-interest-earning assets
Cash		31,033								15,998
Equity investments		12,226								10,901
Loan collateral in process of foreclosure		10,388								19,751
Goodwill and intangible assets		171,035								172,480
Other assets		55,413								52,769
Total non-interest-earning assets		280,095								271,899
Total assets	$	2,621,100							$	2,353,544
Interest-bearing liabilities
Deposits	$	1,903,076		$	31,277		3.31	%	$	1,686,501		$	19,929		2.38	%
Retail and privately placed notes		138,500			5,963		8.66			121,000			5,003		8.34
SBA debentures and borrowings		73,464			1,455		3.98			66,652			1,158		3.50
Trust preferred securities		33,000			1,294		7.89			33,000			1,185		7.24
Total interest-bearing liabilities		2,148,040			39,989		3.75			1,907,153			27,275		2.88
Non-interest-bearing liabilities
Deferred tax liability		22,022								24,958
Other liabilities (1)		33,502								46,080
Total non-interest-bearing liabilities		55,524								71,038
Total liabilities		2,203,564								1,978,191
Non-controlling interest		69,220								69,220
Total stockholders’ equity		348,316								306,133
Total liabilities and stockholders’ equity	$	2,621,100							$	2,353,544
Net interest income				$	97,785							$	90,293
Net interest margin, gross							8.11								8.45
Net interest margin, net of allowance							8.40	%							8.75	%

(1)Includes deferred financing costs of $8.6 million and $6.8 million as of June 30, 2024 and 2023.

For the three months ended June 30, 2024, our loans receivable yielded 11.98%, as compared to 11.70% for the three months ended June 30, 2023. The 28 basis point increase reflects a higher yield on our consumer and commercial loan portfolios, as we have increased the rates charged on new originations over the past year as prevailing market interest rates have increased. Similarly, for the six months ended June 30, 2024, our loans receivable yielded 11.89%, as compared to 11.52% for the six months ended June 30, 2023. We have used the higher interest rate environment as an opportunity to both increase the rates on newly issued recreation and home improvement loans, which is expected to continue to increase the yield on these portfolios over time, as well as increase the credit quality of our new issuances, particularly in our recreation segment, with the average FICO scores, measured at origination, of our recreation loans outstanding being 685 as of June 30, 2024 compared to 681 as of June 30, 2023. We use weighted average FICO scores as an indicator of portfolio risk.

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Our debt, with certificates of deposits being our largest source, funds our growing lending business. Our average interest cost for the three and six months ended June 30, 2024 of 3.82% and 3.75% increased 77 and 87 basis points from the three and six months ended June 30, 2023, attributable to the current higher interest rate environment, particularly the higher cost associated with our deposits. To the extent that prevailing market interest rates remain at current levels, we expect our cost of funds to continue to increase as we issue new certificates of deposit to replace maturing certificates of deposit and fund our growth. We have taken, and continue to take, steps to pass along a portion of the interest rate increases on newly originated loans, the process for which is slower than the pace of funding cost increases, thereby compressing our net interest margins.

RATE/VOLUME ANALYSIS

The following table presents the change in interest income and expense due to changes in the average balances (volume) and average yield/cost, calculated for the periods indicated.

	Three Months Ended June 30,
	2024									2023
(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	$	144		$	74		$	218		$	167		$	841		$	1,008
Investment securities		26			86			112			36			99			135
Loans
Recreation		5,654			727			6,381			7,073			519			7,592
Home improvement		1,471			889			2,360			4,358			347			4,705
Commercial		438			110			548			224			317			541
Taxi medallion		(12	)		(595	)		(607	)		(2,110	)		2,666			556
Strategic partnerships		(22	)		(12	)		(34	)		81			(3	)		78
Total loans	$	7,529		$	1,119		$	8,648		$	9,626		$	3,846		$	13,472
Total interest-earning assets	$	7,699		$	1,279		$	8,978		$	9,829		$	4,786		$	14,615
Interest-bearing liabilities
Deposits		1,675			3,519			5,194			2,370			4,048			6,418
Retail and privately placed notes		360			94			454			—			(5	)		(5	)
SBA debentures and borrowings		61			52			113			(26	)		62			36
Trust preferred securities		—			40			40			—			356			356
Total interest-bearing liabilities	$	2,096		$	3,705		$	5,801		$	2,344		$	4,461		$	6,805
Net	$	5,603		$	(2,426	)	$	3,177		$	7,485		$	325		$	7,810

	Six Months Ended June 30,
	2024									2023
(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	$	266		$	478		$	744		$	465		$	1,385		$	1,850
Investment securities		72			141			213			70			211			281
Loans
Recreation		10,526			1,883			12,409			13,974			384			14,358
Home improvement		3,990			2,167			6,157			8,439			214			8,653
Commercial		1,055			471			1,526			660			487			1,147
Taxi medallion		(369	)		(408	)		(777	)		(890	)		1,615			725
Strategic partnerships		(50	)		(16	)		(66	)		146			(6	)		140
Total loans	$	15,152		$	4,097		$	19,249		$	22,329		$	2,694		$	25,023
Total interest-earning assets	$	15,490		$	4,716		$	20,206		$	22,864		$	4,290		$	27,154
Interest-bearing liabilities
Deposits		3,569			7,779			11,348			4,178			6,685			10,863
Retail and privately placed notes		756			204			960			—			(2	)		(2	)
SBA debentures and borrowings		135			162			297			(51	)		125			74
Trust preferred securities		—			109			109			—			735			735
Total interest-bearing liabilities	$	4,460		$	8,254		$	12,714		$	4,127		$	7,543		$	11,670
Net	$	11,030		$	(3,538	)	$	7,492		$	18,737		$	(3,253	)	$	15,484

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During the three and six months ended June 30, 2024, the increase in interest income was mainly driven by the increase in volume of consumer loans, as well as an increase in overall yield on interest-earning assets as we issue new loans at interest rates greater than the weighted average rates of our current portfolio. For the same periods, the increase in interest expense was driven by an increase in borrowing costs and interest rates, primarily due to the increases in deposits, as well as growth of total borrowings which fund our growing loan portfolio.

Our interest expense is driven by the interest rates payable on our bank certificates of deposit, privately placed notes, fixed-rate, long-term debentures issued to the SBA, trust preferred securities, and has historically included credit facilities with banks and other short-term notes payable. The Bank issues brokered time certificates of deposit, which are, on average, our lowest borrowing costs. The Bank is able to bid on these deposits at a variety of maturity options, which allows for more flexible interest rate management strategies. As further described below, in September 2023, we issued and sold $39.0 million aggregate principal amount of 9.25% senior notes due in September 2028, and in June 2024, we amended our senior notes previously issued in December 2023, increasing the aggregate principal amount from $12.5 million to $17.5 million, reducing the interest rate to 8.875% from 9.0%, and extending the maturity date from December 2033 to June 2039. The net proceeds were used, in large part, to repurchase and settle, in full, $36.0 million aggregate principal amount of our 8.25% senior notes issued in 2019 and which matured in March 2024.

Our cost of funds is primarily driven by the rates paid on our various borrowings and changes in the levels of average borrowings outstanding. See Note 5 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.

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 above table shows the average borrowings and related borrowing costs for the three and six months ended June 30, 2024 and 2023. We expect our borrowing costs to further increase as we take deposits and borrow other funds at the currently higher prevailing rates.

We continue to seek SBA funding through 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 Small Business Investment Act of 1985, as amended, or the SBIA, and SBA regulations. In July 2023, we obtained a $20.0 million commitment from the SBA, $9.8 million of which has been utilized as of June 30, 2024, with $8.0 million currently drawable, and the balance of $2.2 million drawable upon the infusion of $1.1 million of capital. In February 2024, we obtained an $18.5 million commitment from the SBA, with the entire amount drawable upon the infusion of $9.3 million of capital.

At June 30, 2024 and 2023, adjustable rate debt constituted less than 2% of total debt, and was comprised solely of our trust preferred securities borrowings.

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LOANS

Loans are reported at the principal amount outstanding, inclusive of deferred loan acquisition costs, which primarily includes deferred fees paid to or received from loan originators, and which are amortized to interest income over the life of the loan. During the three and six months ended June 30, 2024, there was continued growth in the recreation segment, growing 12% from December 31, 2023, while home improvement loans increased 2% from December 31, 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2024	$	1,365,165		$	752,262		$	106,570		$	3,560		$	869		$	2,228,426
Loan originations		209,563			67,990			7,000			250			24,288			309,091
Principal receipts, sales, and maturities		(61,553	)		(42,492	)		(3,961	)		(328	)		(23,858	)		(132,192	)
Charge-offs		(14,627	)		(4,063	)		—			—			—			(18,690	)
Transfer to loan collateral in process of foreclosure, net		(5,669	)		—			—			—			—			(5,669	)
Amortization of origination costs		(3,214	)		913			10			—			—			(2,291	)
FASB origination costs, net		7,763			(1,426	)		(77	)		—			—			6,260
Paid-in-kind interest		—			—			655			—			—			655
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – December 31, 2023	$	1,336,226		$	760,617		$	114,827		$	3,663		$	553		$	2,215,886
Loan originations		315,328			119,566			7,000			250			40,034			482,178
Principal receipts, sales, and maturities		(115,589	)		(97,409	)		(12,833	)		(431	)		(39,288	)		(265,550	)
Charge-offs		(32,728	)		(8,961	)		—			—			—			(41,689	)
Transfer to loan collateral in process of foreclosure, net		(11,094	)		—			—			—			—			(11,094	)
Amortization of origination costs		(6,166	)		1,851			17			—			—			(4,298	)
FASB origination costs, net		11,451			(2,480	)		(77	)		—			—			8,894
Paid-in-kind interest		—			—			1,263			—			—			1,263
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2023	$	1,213,380		$	669,642		$	95,329		$	4,059		$	1,770		$	1,984,180
Loan originations		190,007			117,035			4,750			1,300			33,174			346,266
Principal receipts, sales, and maturities		(63,463	)		(55,350	)		(6,922	)		(1,531	)		(33,613	)		(160,879	)
Charge-offs		(9,166	)		(2,575	)		(900	)		(221	)		—			(12,862	)
Transfer to loan collateral in process of foreclosure, net		(3,991	)		—			—			(159	)		—			(4,150	)
Amortization of origination costs		(3,159	)		665			—			—			—			(2,494	)
FASB origination costs, net		7,506			(949	)		—			—			—			6,557
Paid-in-kind interest		—			—			380			—			—			380
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – December 31, 2022	$	1,183,512		$	626,399		$	92,899		$	13,571		$	572		$	1,916,953
Loan originations		291,688			212,016			7,750			1,923			60,180			573,557
Principal receipts, sales, and maturities		(119,680	)		(105,205	)		(7,756	)		(5,926	)		(59,421	)		(297,988	)
Charge-offs		(21,756	)		(4,489	)		(900	)		(3,814	)		—			(30,959	)
Transfer to loan collateral in process of foreclosure, net		(8,348	)		—			—			(2,306	)		—			(10,654	)
Amortization of origination costs		(5,918	)		1,251			—			—			—			(4,667	)
FASB origination costs, net		11,616			(1,504	)		—			—			—			10,112
Paid-in-kind interest		—			—			644			—			—			644
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998

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The following table presents the approximate maturities and sensitivity to changes in interest rates for our loans as of June 30, 2024.

	Loan Maturity
(Dollars in thousands)	Within 1 year		After 1 to 5 years		After 5 to 15 years		After 15 years		Total
Fixed-rate	$	38,004	$	246,840	$	1,886,623	$	168,462	$	2,339,929
Recreation		2,238		126,053		1,276,347		42,832		1,447,470
Home improvement		17,434		30,926		603,276		125,630		777,266
Commercial		14,470		88,942		7,000		—		110,412
Taxi medallion		2,563		919		—		—		3,482
Strategic partnerships		1,299		—		—		—		1,299
Adjustable-rate	$	391	$	648	$	—	$	—	$	1,039
Recreation		391		648		—		—		1,039
Home improvement		—		—		—		—		—
Commercial		—		—		—		—		—
Taxi medallion		—		—		—		—		—
Total loans	$	38,395	$	247,488	$	1,886,623	$	168,462	$	2,340,968

PROVISION AND ALLOWANCE FOR CREDIT LOSSES

The allowance is maintained at a level estimated by management to absorb probable credit losses inherent in the loan portfolios based on management’s quarterly evaluation of the portfolios, the related credit characteristics, and macroeconomic factors affecting the portfolios. As of June 30, 2024 and December 31, 2023, the allowance totaled $89.8 million and $84.2 million, which represented 3.76% and 3.80% of total loans, respectively. The provision for credit losses was $18.6 million and $35.8 million for the three and six months ended June 30, 2024 compared to $8.5 million and $12.5 million for the three and six months ended June 30, 2023 as a result of lower taxi medallion recoveries, higher charge off activity, and increased provisions necessary with the growth in our recreation loans, as well as the credit loss allowance required due to the impact fluctuating delinquencies have on our credit loss model.

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Allowance for loan losses – beginning balance (1)	$	83,827		$	70,280		$	84,235		$	63,845
CECL transition amount upon ASU 2016-13 adoption		—			—			—			13,712
Charge-offs
Recreation		(14,627	)		(9,166	)		(32,728	)		(21,756	)
Home improvement		(4,063	)		(2,575	)		(8,961	)		(4,489	)
Commercial		—			(900	)		—			(900	)
Taxi medallion		—			(221	)		—			(3,814	)
Total charge-offs		(18,690	)		(12,862	)		(41,689	)		(30,959	)
Recoveries
Recreation		3,962			3,282			7,510			6,053
Home improvement		1,243			627			2,154			1,259
Commercial		—			—			20			10
Taxi medallion		869			5,168			1,780			8,537
Total recoveries		6,074			9,077			11,464			15,859
Net charge-offs (2)		(12,616	)		(3,785	)		(30,225	)		(15,100	)
Provision for credit losses		18,577			8,476			35,778			12,514
Allowance for credit losses – ending balance (3)	$	89,788		$	74,971		$	89,788		$	74,971

(1)2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

(2)As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.

(3)As of June 30, 2024, there was no allowance for credit loss and net charge-offs related to the strategic partnership loans.

Page 43 of 60

The following table sets forth the gross charge-offs for the three and six months ended June 30, 2024, by the year of origination:

Three Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	4,099	$	5,049	$	1,990	$	986	$	2,404	$	14,627
Home improvement		40		1,508		1,594		507		119		295		4,063
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	5,607	$	6,643	$	2,497	$	1,105	$	2,699	$	18,690

Six Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	7,862	$	11,867	$	5,487	$	2,275	$	5,138	$	32,728
Home improvement		40		3,032		3,274		1,670		406		539		8,961
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	10,894	$	15,141	$	7,157	$	2,681	$	5,677	$	41,689

The following table sets forth the gross charge-offs for the three and six months ended June 30, 2023, by the year of origination:

Three Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	3,568	$	2,344	$	785	$	918	$	1,507	$	9,166
Home improvement		39		1,548		473		158		91		266		2,575
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		221		221
Total	$	83	$	5,116	$	2,817	$	943	$	1,909	$	1,994	$	12,862

Six Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	7,176	$	5,414	$	2,456	$	2,472	$	4,194	$	21,756
Home improvement		39		2,452		1,101		301		222		374		4,489
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		3,814		3,814
Total	$	83	$	9,628	$	6,515	$	2,757	$	3,594	$	8,382	$	30,959

The following tables set forth the allowance for credit losses by type as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	65,140		73	%		4.35	%		292.79	%
Home improvement		18,388		20			2.38			82.65
Commercial		4,861		5			4.41			21.85
Taxi medallion		1,399		2			40.18			6.29
Total	$	89,788		100	%		3.76	%		403.58	%

December 31, 2023 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	57,532		68	%		4.31	%		221.50	%
Home improvement		21,019		25			2.76			80.92
Commercial		4,148		5			3.61			15.97
Taxi medallion		1,536		2			41.93			5.91
Total	$	84,235		100	%		3.80	%		324.31	%

As of June 30, 2024, the total allowance for credit losses as a percent of loans decreased 4 basis points from December 31, 2023.

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

	June 30, 2024					December 31, 2023
(Dollars in thousands)	Amount		% (1)			Amount		% (1)
Recreation	$	5,938		0.3	%	$	9,095		0.4	%
Home improvement		1,305		0.1	%		1,502		0.1	%
Commercial		8,396		0.4	%		6,240		0.3	%
Total loans 90 days or more past due	$	15,639		0.7	%	$	16,837		0.8	%

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

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The following tables show the activity of loan collateral in process of foreclosure for the three and six months ended June 30, 2024.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2024	$	1,475		$	8,723		$	10,198
Transfer from loans, net		5,669			—			5,669
Sales		—			—			—
Cash payments received		(2,225	)		(881	)		(3,106	)
Collateral valuation adjustments		(3,478	)		76			(3,402	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2023	$	1,779		$	9,993		$	11,772
Transfer from loans, net		11,094			—			11,094
Sales		—			(39	)		(39	)
Cash payments received		(4,672	)		(2,154	)		(6,826	)
Collateral valuation adjustments		(6,760	)		118			(6,642	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359

The following tables show the activity of loan collateral in process of foreclosure for the three and six months ended June 30, 2023.

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2023	$	1,461		$	19,006		$	20,467
Transfer from loans, net		3,991			159			4,150
Sales		(2,583	)		(553	)		(3,136	)
Cash payments received		(128	)		(2,517	)		(2,645	)
Collateral valuation adjustments		(2,012	)		(21	)		(2,033	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2022	$	1,376		$	20,443		$	21,819
Transfer from loans, net		8,348			2,306			10,654
Sales		(4,778	)		(568	)		(5,346	)
Cash payments received		(128	)		(5,834	)		(5,962	)
Collateral valuation adjustments		(4,089	)		(273	)		(4,362	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803

As of June 30, 2024, taxi medallion loans in the process of foreclosure included 326 taxi medallions in the New York City market, 188 taxi medallions in the Chicago market, 23 taxi medallions in the Newark market, and 31 taxi medallions in other markets.

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SEGMENT RESULTS

We manage our financial results under four operating segments; recreation lending, home improvement lending, commercial lending, and taxi medallion lending. We also show results for a non-operating segment, corporate and other investments.

Recreation Lending

Recreation lending is a growth business focused on originating prime and non-prime recreation loans which is a significant source of income for us, accounting for 67% and 66% of our interest income for the three and six months ended June 30, 2024 and 67% for both the three and six months ended June 30, 2023.

We maintain relationships with approximately 3,300 dealers and financial service providers, or FSPs, not all of which are active at any one time. FSPs are entities that provide finance and insurance services to small dealers that do not have the desire or ability to provide such services themselves. The ability of FSPs to aggregate the financing and relationship management for many small dealers makes them valuable. We receive approximately half of our loan volume from dealers and the other half from FSPs. Our top ten dealer and FSP relationships were responsible for 41% of recreation lending’s new loan originations for the six months ended June 30, 2024 and 2023. The percentage of new loan originations by the top ten dealer and FSP relationships is a measure of concentration, which management uses to determine whether to undertake diversification efforts, and which provides investors with information about origination concentration.

The recreation loan portfolio consists of thousands of geographically distributed loans with an average loan size of approximately $21,000 as of June 30, 2024. The loans are fixed rate with an average term at origination of 14 years. The weighted average maturity of our loans outstanding as of June 30, 2024 is 11 years.

The loans are secured primarily by RVs, boats, collector automobiles, and trailers, with RV loans making up 54% of the portfolio, boat loans making up 21%, and collector automobiles making up 11% of the portfolio as of June 30, 2024, compared to 59%, 19%, and 9% as of June 30, 2023. Recreation loans are made to borrowers residing nationwide, with the highest concentrations in Texas and Florida at 16% and 10% of loans outstanding, compared to 15% and 10% as of June 30, 2023, and with no other states at or above 10%. As of June 30, 2024 and 2023, the weighted average FICO scores, measured at origination, of our recreation loans outstanding were 685 and 681. The weighted average FICO scores at the time of origination for the loans funded in six months ended June 30, 2024 and 2023 were 689 and 678.

Seasonally, the second quarter typically has the greatest demand for our recreation loan products and results in higher originations. During the six months ended June 30, 2024, the recreation loan portfolio grew 12% to $1.5 billion, with the average interest rate increasing 18 basis points to 14.80% from a year ago. Additionally, reserve rates increased 28 basis points to 4.35% from June 30, 2023, reflecting higher delinquency and potential loss.

During the six months ended June 30, 2024, we originated $315.3 million in recreation loans, compared to $291.7 million in the prior year period. Originations increased despite more restrictive underwriting standards and management's efforts to mitigate concentration risks. The following table presents quarterly originations for 2024, 2023, and 2022.

(Dollars in thousands)	2024		2023		2022
First Quarter	$	105,765	$	101,681	$	114,406
Second Quarter		209,563		190,007		170,207
Third Quarter		—		92,603		149,151
Fourth Quarter		—		62,748		79,298
Year Ended	$	315,328	$	447,039	$	513,062

As of June 30, 2024, 35.1% of the recreation loan portfolio were non-prime receivables with obligors who do not qualify for conventional consumer finance products as a result of, among other things, adverse credit history. The following table presents non-prime originations in comparison to total originations for the six months ended June 30, 2024 and years ended December 31, 2023 and 2022.

(Dollars in thousands)	Total Originations		Non-prime Originations		Non-prime Originations (%)
June 30, 2024	$	315,328	$	99,698		31.6	%
December 31, 2023		447,039		152,045		34.0
December 31, 2022		513,062		180,697		35.2

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The following table presents certain financial data and ratios as of and for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Selected Earnings Data
Total interest income	$	47,490		$	41,109		$	91,417		$	79,008
Total interest expense		10,960			7,580			20,605			13,484
Net interest income		36,530			33,529			70,812			65,524
Provision for credit losses		15,795			10,135			32,825			17,886
Net interest income after loss provision		20,735			23,394			37,987			47,638
Other income, net		306			—			556			—
Other expenses		(11,236	)		(8,444	)		(19,523	)		(16,247	)
Net income before taxes		9,805			14,950			19,020			31,391
Income tax provision		(3,094	)		(3,867	)		(6,368	)		(8,380	)
Net income after taxes	$	6,711		$	11,083		$	12,652		$	23,011
Balance Sheet Data
Total loans, gross							$	1,497,428		$	1,331,114
Total credit allowance								65,140			54,187
Total loans, net								1,432,288			1,276,927
Total assets								1,451,947			1,294,925
Total borrowings								1,200,977			1,062,309
Selected Financial Ratios
Return on average assets		1.95	%		3.59	%		1.87	%		3.84	%
Return on average equity		13.05			22.94			12.31			24.13
Interest yield		13.30			13.03			13.20			12.93
Net interest margin, gross		10.23			10.63			10.23			10.72
Net interest margin, net of allowance		10.69			11.08			10.69			11.18
Reserve coverage		4.35			4.07			4.35			4.07
Delinquency status (1)		0.41			0.39			0.41			0.39
Charge-off ratio		2.99			1.86			3.64			2.57

(1)Loans 90 days or more past due.

Home Improvement Lending

The home improvement lending segment works with contractors and FSPs to finance home improvements and is concentrated in roofs, swimming pools, and windows at 40%, 21%, and 13% of total loans outstanding as of June 30, 2024, as compared to 41%, 19%, and 13% as of June 30, 2023, with no other collateral types over 10%. Home improvement loans are made to borrowers residing nationwide, with the highest concentrations in Texas and Florida, each representing 10% of loans outstanding as of June 30, 2024 and consistent with concentrations as of June 30, 2023, with no other states at or above 10%. As of June 30, 2024 and 2023, the weighted average FICO scores of our home improvement loans outstanding, measured at origination, were 764 and 755. The weighted average FICO scores at the time of origination for the loans funded in the six months ended June 30, 2024 and 2023 were 778 and 770.

A large proportion of our home improvement-financed sales are facilitated by contractor salespeople with limited financing backgrounds rather than by contractor employees who provide financing services. The result is contractor demand for financing services that facilitate an in-home transaction (e.g., digital tools, including mobile applications for phone or tablet, support for E-SIGN compliant electronic signatures, and extended operating hours), and additional resources for the salesperson throughout the financing process. We currently maintain relationships with approximately 800 contractors and FSPs. Our top ten contractors and FSP relationships were responsible for 55% of home improvement lending’s new loan originations for the three and six months ended June 30, 2024. The percentage of new loan originations by the top ten contractor and FSP relationships is a measure of concentration, which management uses to determine whether to undertake diversification efforts, and which provides investors with information about origination concentration.

The home improvement loan portfolio consists of thousands of geographically distributed loans with an average loan size of approximately $21,000 as of June 30, 2024. The loans are fixed rate with an average term at origination of 14 years. The weighted average maturity of our loans outstanding as of June 30, 2024 is 12 years.

During the six months ended June 30, 2024, the home improvement portfolio increased 2% to $773.2 million, with reserve coverage rates increasing 12 basis points from a year ago reflecting higher delinquency and potential losses. The average interest rate increased 50 basis points to 9.71% at June 30, 2024.

Page 47 of 60

During the six months ended June 30, 2024, we originated $119.6 million in home improvement loans, compared to $212.0 million in the prior period. The decrease was driven by ongoing restrictive underwriting standards in 2024 and management's efforts to mitigate concentration risks. The following table presents quarterly originations for 2024, 2023, and 2022.

(Dollars in thousands)	2024		2023		2022
First Quarter	$	51,576	$	94,981	$	89,820
Second Quarter		67,990		117,035		105,172
Third Quarter		—		79,333		100,451
Fourth Quarter		—		66,045		97,100
Year Ended	$	119,566	$	357,394	$	392,543

As of June 30, 2024, 1.0% of the home improvement loan portfolio were non-prime receivables with obligors who do not qualify for conventional consumer finance products as a result of, among other things, adverse credit history. The following table presents non-prime originations in comparison to total originations for the six months ended June 30, 2024 and years ended December 31, 2023 and 2022.

(Dollars in thousands)	Total Originations		Non-prime Originations		Non-prime Originations (%)
June 30, 2024	$	119,566	$	397		0.3	%
December 31, 2023		357,394		3,094		0.9
December 31, 2022		392,543		5,068		1.3

The following table presents certain financial data and ratios as of and for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Selected Earnings Data
Total interest income	$	17,651		$	15,292		$	35,098		$	28,941
Total interest expense		6,106			4,194			11,740			7,473
Net interest income		11,545			11,098			23,358			21,468
Provision for credit losses		3,279			3,739			4,177			6,820
Net interest income after loss provision		8,266			7,359			19,181			14,648
Other income, net		3			2			5			3
Other expenses		(5,457	)		(4,388	)		(9,571	)		(8,382	)
Net income before taxes		2,812			2,973			9,615			6,269
Income tax provision		(802	)		(769	)		(3,219	)		(1,674	)
Net income after taxes	$	2,010		$	2,204		$	6,396		$	4,595
Balance Sheet Data
Total loans, gross							$	773,184		$	728,468
Total credit allowance								18,388			16,447
Total loans, net								754,796			712,021
Total assets								758,840			718,383
Total borrowings								627,674			589,335
Selected Financial Ratios
Return on average assets		1.08	%		1.28	%		1.72	%		1.39	%
Return on average equity		7.00			8.19			11.04			8.76
Interest yield		9.32			8.79			9.29			8.66
Net interest margin, gross		6.10			6.38			6.18			6.43
Net interest margin, net of allowance		6.25			6.53			6.34			6.57
Reserve coverage		2.38			2.26			2.38			2.26
Delinquency status (1)		0.17			0.16			0.17			0.16
Charge-off ratio		1.49			1.12			1.80			0.97

(1)Loans 90 days or more past due.

Page 48 of 60

Commercial Lending

We originate both senior and subordinated loans nationwide to businesses in a variety of industries, with California, Wisconsin, and Texas each having 30%, 10%, and 10% of the segment portfolio of the segment portfolio, and no other states having a concentration at or above 10%. These mezzanine loans are primarily secured by a second position on all assets of the businesses and generally range in amount from $2.5 million to $6.0 million at origination, and typically include an equity component as part of the financing. These equity components, although a small portion of the overall financing, have the potential to generate significant yield enhancement when the underlying portfolio company enters a capital transaction. During the six months ended June 30, 2024, net gains of $3.7 million were recognized with respect to these equity investments. The commercial lending business has concentrations in manufacturing, construction, and wholesale trade making up 55%, 14%, and 11%, of the loans outstanding as of June 30, 2024. During the six months ended June 30, 2024, we originated $7.0 million in new commercial loans, compared to $7.8 million in 2023.

The following table presents certain financial data and ratios as of and for the three and six months ended June 30, 2024 and 2023. The commercial segment encompasses the mezzanine lending business, and the other legacy commercial loans (immaterial to total) have been allocated to corporate and other investments.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Selected Earnings Data
Total interest income	$	3,538		$	2,814		$	7,183		$	5,515
Total interest expense		1,056			852			2,154			1,661
Net interest income		2,482			1,962			5,029			3,854
Provision (benefit) for credit losses		478			(113	)		694			214
Net interest income after loss provision		2,004			2,075			4,335			3,640
Other income (loss), net		(14	)		343			4,188			614
Other expenses		(1,437	)		(1,147	)		(2,422	)		(1,567	)
Net income before taxes		553			1,271			6,101			2,687
Income tax provision		(72	)		(329	)		(2,043	)		(718	)
Net income after taxes	$	481		$	942		$	4,058		$	1,969
Balance Sheet Data
Total loans, gross							$	110,197		$	92,637
Total credit allowance								4,861			2,518
Total loans, net								105,336			90,119
Total assets								105,548			99,713
Total borrowings								87,304			81,801
Selected Financial Ratios
Return on average assets		1.86	%		3.76	%		7.68	%		3.94	%
Return on average equity		12.09			23.97			49.32			24.74
Interest yield		13.08			11.87			12.97			11.71
Net interest margin, gross		9.18			8.28			9.08			8.18
Net interest margin, net of allowance		9.57			8.54			9.45			8.43
Reserve coverage (1)		4.41			2.72			4.41			2.72
Delinquency status (1) (2)		7.52			0.08			7.52			0.08
Charge-off (recovery) ratio (3)		—			3.80			(0.04	)		1.89

(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.

	As of June 30,
	2024					2023
Geographic Concentrations (Dollars in thousands)	Total Gross Loans		% of Market			Total Gross Loans		% of Market
California	$	32,981		30	%	$	21,460		23	%
Wisconsin		11,560		10			—		—
Texas		10,778		10			9,875		11
Illinois		8,468		8			13,802		15
Minnesota		5,310		5			10,730		12
Other		41,100		37			36,770		39
Total	$	110,197		100	%	$	92,637		100	%

Page 49 of 60

Taxi Medallion Lending

The taxi medallion lending segment operates in the New York City metropolitan area. During the three and six months ended June 30, 2024, taxi medallion values remained consistent in the New York City and Newark markets with all other markets being valued at $0 at the end of the year. We continued to not recognize interest income with all loans being placed on nonaccrual as of the third quarter 2020 (except for settled loans with interest being paid in excess of the loan balance), and by transferring underperforming loans from the portfolio to loan collateral in process of foreclosure with charge-offs to collateral value, once loans become more than 120 days past due. All the loans are secured by taxi medallions and enhanced by personal guarantees of the shareholders and owners.

During the three and six months ended June 30, 2024, we collected $2.3 million and $5.3 million related to taxi medallion and related assets, which resulted in net recoveries and gains of $1.3 million and $2.9 million in those periods. The amount of cash collected as well as recoveries recorded vary greatly from period to period due to a wide variety of circumstances surrounding each of the underlying assets, and while we continue to focus on collection and recovery efforts, it is unlikely that there will be future collections at the higher levels experienced in the prior year.

The following table presents certain financial data and ratios as of and for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Selected Earnings Data
Total interest income	$	190		$	787		$	330		$	1,097
Total interest expense		25			46			53			113
Net interest income		165			741			277			984
Recoveries for credit losses		(975	)		(5,311	)		(1,918	)		(12,395	)
Net interest income after loss provision		1,140			6,052			2,195			13,379
Other income, net		334			1,304			973			2,923
Other expenses		(1,373	)		(743	)		(2,116	)		(2,770	)
Net income before taxes		101			6,613			1,052			13,532
Income tax provision		(14	)		(1,713	)		(352	)		(3,612	)
Net income after taxes	$	87		$	4,900		$	700		$	9,920
Balance Sheet Data
Total loans, gross							$	3,482		$	3,448
Total credit allowance								1,399			1,819
Total loans, net								2,083			1,629
Total assets								7,511			18,724
Total borrowings								6,213			15,360
Selected Financial Ratios
Return on average assets		4.29	%		100.63	%		14.89	%		94.20	%
Return on average equity		25.69			641.63			90.99			590.25
Interest yield		21.62			83.55			18.78			28.80
Net interest margin, gross		18.78			78.67			15.59			25.84
Net interest margin, net of allowance		31.77			166.23			26.61			73.52
Reserve coverage		40.18			52.76			40.18			52.76
Delinquency status (1)		—			—			—			—
Recovery ratio		(98.90	)		(525.21	)		(100.16	)		(124.01	)

(1)Loans 90 days or more past due.

	As of June 30,
	2024		2023
Geographic Concentrations (Dollars in thousands)	Total Gross Loans		Total Gross Loans
New York City	$	3,235	$	2,998
Newark		247		435
All Other		—		15
Total	$	3,482	$	3,448

	As of June 30,
	2024		2023
Geographic Concentrations (Dollars in thousands)	Total Loan Collateral in Process of Foreclosure		Total Loan Collateral in Process of Foreclosure
New York City	$	7,349	$	13,586
Newark		569		2,061
All Other		—		427
Total	$	7,918	$	16,074

Page 50 of 60

Corporate and Other Investments

This non-operating segment includes our equity and investment securities as well as our legacy commercial business, and other assets, liabilities, revenues, and expenses, including goodwill and intangible assets, which are not specifically allocated to the operating segments and are not used in evaluating performance of the operating segments. Commencing with the 2020 second quarter, the Bank began issuing loans related to the new strategic partnership business, which is included within this segment. The associated activities of the strategic partnership business are currently limited to originating loans or other receivables facilitated by our strategic partners and selling those loans or receivables to our strategic partners or other third parties, without recourse, within a specified time after origination, such as three business days. Strategic partnerships loans were $1.3 million as of both June 30, 2024 and June 30, 2023, with originations of $24.3 million and $40.0 million during the three and six months ended June 30, 2024 and $33.2 million and $60.2 million during the three and six months ended June 30, 2023.

The following table presents certain financial data and ratios as of and for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Selected Earnings Data
Total interest income	$	1,835		$	1,724		$	3,746		$	3,007
Total interest expense		2,689			2,363			5,437			4,544
Net interest loss		(854	)		(639	)		(1,691	)		(1,537	)
Provision (recoveries) for credit losses		—			26			—			(11	)
Net interest loss after loss provision		(854	)		(665	)		(1,691	)		(1,526	)
Other income, net		470			293			780			485
Other expenses		(492	)		(4,281	)		(4,588	)		(8,429	)
Net loss before taxes		(876	)		(4,653	)		(5,499	)		(9,470	)
Income tax benefit		200			1,206			1,842			2,530
Net loss after taxes	$	(676	)	$	(3,447	)	$	(3,657	)	$	(6,940	)
Balance Sheet Data
Total loans, gross							$	1,299		$	1,331
Total credit allowance								—			—
Total loans, net								1,299			1,331
Total assets								437,030			387,392
Total borrowings								361,488			317,802

SUMMARY CONSOLIDATED FINANCIAL DATA

The table below presents our selected financial data for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Return on average assets		1.30	%		2.60	%		1.55	%		2.79	%
Return on average equity		8.25			16.52			9.70			17.49
Return on average stockholders' equity		8.14			18.24			9.89			19.45
Net interest margin, gross		8.12			8.48			8.11			8.45
Equity to assets (1)		15.31			15.39			15.31			15.39
Debt to equity (1) (2)	5.4x			5.3x			5.4x			5.3x
Net loans receivable to assets		83	%		83	%		83	%		83	%
Net charge-offs	$	12,616		$	3,785		$	30,225		$	15,100
Net charge-offs as a % of average loans receivable		2.20	%		0.74	%		2.68	%		1.51	%
Reserve coverage ratio		3.76			3.48			3.76			3.48

(1)Includes $68.8 million related to non-controlling interests in consolidated subsidiaries as of both June 30, 2024 and 2023.

(2)Excludes deferred financing costs of $8.6 million and $6.8 million as of June 30, 2024 and 2023.

Page 51 of 60

CONSOLIDATED RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 2024 Compared to the Three and Six Months Ended June 30, 2023

Net income attributable to shareholders was $7.1 million and $17.1 million, or $0.30 and $0.73 per diluted share, for the three and six months ended June 30, 2024, compared to $14.2 million and $29.5 million, or $0.62 and $1.29 per diluted share, for the three and six months ended June 30, 2023.

Total interest income was $70.7 million and $137.8 million for the three and six months ended June 30, 2024 compared to $61.7 million and $117.6 million for the three and six months ended June 30, 2023. The increase in interest income reflects the continued growth in our recreation, home improvement, and commercial lending segments and an increased weighted average interest rate on the loan portfolio. The yield on interest earning assets was 11.52% and 11.42% for the three and six months ended June 30, 2024, compared to 11.21% and 11.01% for the three and six months ended June 30, 2023. The increase reflects higher interest rates on new originations in our recreation and home improvement lending segments, with the yield anticipated to continue to increase as older loans with lower rates amortize and newer originations at the higher current rates become a larger portion of our portfolio.

Loans before allowance for credit losses were $2.4 billion as of June 30, 2024, comprised of recreation ($1.5 billion), home improvement ($773.2 million), commercial ($110.2 million), taxi medallion ($3.5 million), and strategic partnership ($1.3 million) loans. We had an allowance for credit losses as of June 30, 2024 of $89.8 million, which was attributable to recreation (73%), home improvement (20%), commercial (5%), and taxi medallion (2%) loans.

Loans increased $157.2 million, or 7%, for the quarter and $169.7 million, or 8%, from December 31, 2023 as a result of $309.1 million and $482.2 million of loan originations for the three and six months ended June 30, 2024, offset by principal payments, and to a lesser extent, charge-offs and transfers to loan collateral in process of foreclosure. The provision for credit losses were $18.6 million and $35.8 for the three and six months ended June 30, 2024, compared to $8.5 million and $12.5 million in the three and six months ended June 30, 2023, as a result of lower taxi medallion recoveries, higher charge-off activity, partly attributable to seasonality, and increased provisions with the growth in our loan portfolios. The provision for credit loss in the three and six months ended June 30, 2024 included $0.9 million and $1.8 million of net recoveries with respect to the taxi medallion lending segment, as compared to $4.9 million and $4.7 million for the three and six months ended June 30, 2023, reflecting continued recovery efforts with the impaired taxi medallion portfolio, while net charge-offs in the recreation and home improvement lending segments increased from the historically low levels experienced in the prior year periods. Gross charge-offs were $18.7 million and $41.7 million in the consumer portfolio for the three and six months ended June 30, 2024, compared to $11.7 million and $26.2 million in the three and six months ended June 30, 2023. Charge-offs in the consumer segment correlate to delinquency status, which has seen improvement from December 31, 2023, consistent with seasonal trends.

Interest expense was $20.8 million and $40.0 million for the three and six months ended June 30, 2024, compared to $15.0 million and $27.3 million for the three and six months ended June 30, 2023, reflecting both higher average borrowings and higher average borrowing costs during the three and six months ended June 30, 2024, both of which we expect to further increase in the current inflationary environment. The average cost of borrowed funds was 3.82% and 3.75% for the three and six months ended June 30, 2024, compared to 3.05% and 2.88% for the three and six months ended June 30, 2023. The increases of 77 basis points and 87 basis points for the three and six months ended June 30, 2024 are attributable to the increased cost of newly issued certificates of deposit used both to fund our growth and to replace older maturing vintages with lower rates. As we replace upcoming maturities with new issues, we expect our cost of funds to further increase. During the three months ended June 30, 2024, we issued certificates of deposit at rates up to 5.40% for three-month certificates of deposit and 4.50% for five year certificates of deposit. In addition, we expect our interest expense related to SBA borrowings to increase as newly issued SBA debentures carry a higher rate when compared to some of our previously issued debentures. Average debt outstanding was $2.2 billion and $2.1 billion for the three and six months ended June 30, 2024, up from $2.0 billion and $1.9 billion for the three and six months ended June 30, 2023, as we have increased our borrowings, particularly certificates of deposits, to fund our loan growth. See page 38 for tables that show average balances and cost of funds for our funding sources.

Net interest income was $49.9 million and $97.8 million for the three and six months ended June 30, 2024, compared to $46.7 million and $90.3 million for the three and six months ended June 30, 2023. The net interest margin before the impact of the allowance for credit losses was 8.12% and 8.11% for the three and six months ended June 30, 2024, compared to 8.48% and 8.45% for the three and six months ended June 30, 2023, reflecting the above, particularly the rising cost of borrowings experienced over the prior year period, offset by higher yields on loans and investments compared to the prior year period. With the rates we charge on loans and our cost of funds both increasing, our net interest margin has tightened, and we expect that trend to continue to some degree.

Net other income, which is comprised primarily of gains on the sale of loans and taxi medallions, gain (losses) on equity investments, prepayment fees, servicing fee income, late charges, and write-downs of loan collateral, was $1.1 million and $6.5 million for the three and six months ended June 30, 2024, compared to $1.9 million and $4.0 million for the three and six months ended June 30, 2023. During the quarter, we did not realize any gains associated with the sale of equity investments, unlike in the first quarter of 2024 when we realized a single equity gain of $4.7 million and net gains of $4.2 million.

Page 52 of 60

Operating expenses were $20.0 million and $38.2 million for the three and six months ended June 30, 2024, compared to $19.0 million and $37.4 million for the three and six months ended June 30, 2023. Salaries and benefits were $9.4 million and $18.9 million for the three and six months ended June 30, 2024, compared to $9.3 million and $18.2 million for the three and six months ended June 30, 2023, primarily reflecting a greater head count at our operating subsidiaries, Medallion Bank and Medallion Capital, higher equity compensation costs in the current quarter, and the increased cost of managing our businesses as they grow. Legal and professional fees were $1.8 million and $2.6 million for the three and six months ended June 30, 2024, up from $1.4 million in the prior year three months and down from $3.1 million in the prior year six months. Costs in the current year periods were elevated due to higher expenses associated with the successful defense of an activist proxy campaign in 2024, which approximated $1.4 million. Although legal costs associated with the SEC litigation were nominal in both the current and prior year periods, we continue to maintain an approximate $6.5 million liability as a result of the collection of insurance coverage with respect to costs incurred in previous years. The Company anticipates recognizing the benefit of this liability, offsetting future costs, through the remainder of this matter.

Loan collateral in process of foreclosure was $9.4 million at June 30, 2024, down from $11.8 million at December 31, 2023. The decrease primarily reflects cash payments received during the period.

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 consumer, commercial, and taxi medallion 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, SBA debentures and borrowings, historically credit facilities, and borrowings from banks and other lenders).

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. 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. 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.

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.

Page 53 of 60

The following table presents our interest rate sensitivity gap at June 30, 2024. 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 do not reflect any prepayment assumptions in preparing the analysis, despite historical average life experience being significantly shorter than contractual terms.

June 30, 2024 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
Fixed-rate	$	38,004		$	17,978		$	63,101		$	77,574		$	88,186		$	71,387		$	1,983,698	$	2,339,928
Adjustable rate		391			624			—			25			—			—			—		1,040
Investment securities and equity investments		1,741			5,570			522			6,651			5,670			3,629			40,305		64,088
Cash and cash equivalents		157,961			—			—			—			—			—			—		157,961
Total earning assets	$	198,097		$	24,172		$	63,623		$	84,250		$	93,856		$	75,016		$	2,024,003	$	2,563,017
Interest bearing liabilities
Deposits	$	867,211		$	391,277		$	433,022		$	118,517		$	199,629		$	—		$	—	$	2,009,656
Privately placed notes		—			31,250			—			53,750			39,000			—			17,500		141,500
SBA debentures and borrowings		12,500			15,500			4,500			—			2,500			—			37,750		72,750
Trust preferred securities		—			—			—			—			—			—			33,000		33,000
Federal reserve and other borrowings		25,000			—			—			—			—			—			—		25,000
Total liabilities	$	904,711		$	438,027		$	437,522		$	172,267		$	241,129		$	—		$	88,250	$	2,281,906
Interest rate gap	$	(706,614	)	$	(413,855	)	$	(373,899	)	$	(88,017	)	$	(147,273	)	$	75,016		$	1,935,753	$	281,111
Cumulative interest rate gap	$	(706,614	)	$	(413,855	)	$	(373,899	)	$	(88,017	)	$	(147,273	)	$	75,016		$	1,935,753	$	—
December 31, 2023 (2)	$	(498,772	)	$	(1,015,143	)	$	(1,335,301	)	$	(1,474,758	)	$	(1,578,162	)	$	(1,494,411	)	$	281,971	$	—
December 31, 2022(2)	$	(367,803	)	$	(807,687	)	$	(1,158,706	)	$	(1,283,654	)	$	(1,372,105	)	$	(1,314,604	)	$	222,536	$	—

(1)The ratio of the cumulative one-year gap to total interest rate sensitive assets was (28%) as of June 30, 2024, and was (18%) as of December 31, 2023.

(2)Excludes federal funds sold and investment securities.

Our interest rate sensitive assets were $2.6 billion and interest rate sensitive liabilities were $2.3 billion at June 30, 2024. The one-year cumulative interest rate gap was a negative $706.6 million, or 28% of interest rate sensitive assets. We seek to manage interest rate risk by incurring fixed-rate indebtedness, by evaluating appropriate derivatives, pursuing securitization opportunities, entering into borrowing arrangements with terms that align with the anticipated life of our assets, and using other options consistent with managing interest rate risk.

LIBOR terminated on June 30, 2023. We did not have loans tied to LIBOR. Our trust preferred securities bore a variable rate of interest of 90-day LIBOR plus 2.13% until June 30, 2023. For these borrowings, the 90-day Secured Overnight Financing Rate adjusted by a relevant spread adjustment of approximately 26 basis points replaced the previous LIBOR-based rate.

Liquidity and Capital Resources

Our sources of liquidity include brokered certificates of deposit and other borrowings at the Bank, unfunded commitments to sell debentures to the SBA, loan amortization and prepayments, private and public issuances of debt securities, participations or sales of loans to third parties, issuances of preferred securities at our subsidiaries, and the disposition of our other assets.

In June 2024, we amended the notes previously issued in a private placement to certain institutional investors in December 2023, increasing the principal amount from $12.5 million to $17.5 million, reducing the interest rate to 8.875% from 9.0%, and extending the maturity date from December 2033 to June 2039. We used, and intend to use, the net proceeds from the offering for general corporate purposes, which included the repayment of the remaining 8.25% notes that matured in March 2024 described below.

In September 2023, we completed a private placement to certain institutional investors of $39.0 million aggregate principal amount of 9.25% unsecured senior notes due September 2028, with interest payable semiannually.

In April 2023, the Bank began to originate retail savings deposits through a third-party service provider and, as of June 30, 2024, the Bank had $10.9 million in retail savings deposit balances.

In March 2023, the Bank established a discount window line of credit at the Federal Reserve. As of June 30, 2024, the Bank had $99.2 million in home improvement loans pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is approximately 40% of book value, for a total of approximately $40.1 million in secured borrowing capacity, of which $25 million was utilized as of June 30, 2024.

The Bank has borrowing arrangements with several commercial banks. These agreements are accommodations that can be terminated at any time, for any reason, and allow the Bank to borrow up to $75.0 million. As of June 30, 2024, there were no outstanding amounts with respect to these arrangements.

In February 2021, we completed a private placement to certain institutional investors of $25.0 million aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. Follow-on offerings of these notes in March and April 2021 raised an additional $3.3 million and $3.0 million.

Page 54 of 60

In December 2020, we completed a private placement to certain institutional investors of $33.6 million aggregate principal amount of 7.50% unsecured senior notes due December 2027, with interest payable semiannually. Follow-on offerings of these notes in February and March 2021 raised an additional $8.5 million. In April 2021, we raised an additional $11.7 million in a follow-on offering, and repaid substantially all of our remaining bank borrowings.

In December 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46.0 million aggregate liquidation amount, yielding net proceeds of $42.5 million, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is based on the Secured Overnight Financing Rate, or SOFR, and is expected to be three-month Term SOFR) plus a spread of 6.46% per annum.

The net proceeds from the December 2020, February 2021, March 2021, April 2021, September 2023, and December 2023 (as amended and increased in June 2024) private placements were used for general corporate purposes, including repayment of outstanding debt, including repayment of our 9.00% retail notes at maturity in April 2021 and to pay down other borrowings, including some borrowings at a discount, and to repurchase, repay, and cancel $36.0 million of our 8.25% notes, which matured in March 2024.

The table below presents the components of our debt as of June 30, 2024, exclusive of deferred financing costs of $8.6 million. See Note 5 to the consolidated financial statements for details of the contractual terms of our borrowings.

(Dollars in thousands)	Balance		Percentage			Rate (1)
Deposits (2)	$	2,009,656		88	%		3.50	%
Privately placed notes		141,500		6			8.10
SBA debentures and borrowings		72,750		3			3.54
Trust preferred securities		33,000		1			7.73
Federal reserve and other borrowings		25,000		1			5.50
Total outstanding debt	$	2,281,906		100	%		3.87	%

(1)Weighted average contractual rate as of June 30, 2024.

(2)Balance excludes $1.8 million of strategic partner reserve deposits as of June 30, 2024.

Our contractual obligations expire on or mature at various dates through September 2037. The following table shows our contractual obligations at June 30, 2024.

	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 (1)
Borrowings
Deposits (2)	$	867,211	$	391,277	$	433,022	$	118,517	$	199,629	$	—	$	2,009,656
Privately placed notes		—		31,250		—		53,750		39,000		17,500		141,500
SBA debentures and borrowings		12,500		15,500		4,500		—		2,500		37,750		72,750
Trust preferred securities		—		—		—		—		—		33,000		33,000
Federal reserve and other borrowings		25,000		—		—		—		—		—		25,000
Total outstanding borrowings		904,711		438,027		437,522		172,267		241,129		88,250		2,281,906
Operating lease obligations		2,540		2,556		1,954		958		712		715		9,435
Total contractual obligations	$	907,251	$	440,583	$	439,476	$	173,225	$	241,841	$	88,965	$	2,291,341

(1)Total debt is exclusive of deferred financing costs of $8.6 million as of June 30, 2024.

(2)Balance excludes $1.8 million of strategic partner reserve deposits as of June 30, 2024.

Approximately $1.3 billion of our borrowings have maturity dates during the next two years, a majority of which are brokered CDs that have no right of voluntary withdrawal.

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.

Page 55 of 60

We use a combination of long-term and short-term borrowings and equity capital to finance our lending and investing activities. Our long-term fixed-rate investments are financed primarily with 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 June 30, 2024 by $1.6 million on an annualized basis, and the impact of such an immediate increase of 1% over a one year period would have been a reduction in net income by $2.5 million at June 30, 2024. 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.

From time to time, we work with investment banking firms and other financial intermediaries to investigate the viability of several 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 trust preferred securities and borrowings and their respective end of period weighted average interest rates at June 30, 2024. See Note 5 to the consolidated financial statements for additional information about each borrowing.

(Dollars in thousands)	Medallion Financial Corp.			Medallion Funding LLC		Medallion Capital Inc.				Freshstart Venture Capital Corp.		Medallion Bank				June 30, 2024			December 31, 2023
Cash, cash equivalents and federal funds sold	$	18,954		$	245	$	16,402		(1)	$	3,003	$	119,357			$	157,961		$	149,845
Trust preferred securities		33,000															33,000			33,000
Average interest rate		7.73	%														7.73	%		7.75	%
Maturity	9/37															9/37			9/37
Retail and privately placed notes		141,500															141,500			139,500
Average interest rate		8.10	%														8.10	%		8.08	%
Maturity	2/26 - 6/39															2/26 - 6/39			3/24 - 12/33
SBA debentures & borrowings
Amounts available							28,750										28,750			10,250
Amounts outstanding							72,750										72,750			75,250
Average interest rate							3.54	%									3.54	%		3.69	%
Maturity						9/24- 3/34										9/24- 3/34			3/24 - 3/34
Brokered CDs													2,011,406		(2)		2,011,406			1,870,939
Average interest rate													3.50	%			3.50	%		3.07	%
Maturity												7/24 - 6/29				7/24 - 6/29			1/24 - 12/28
Federal reserve and other borrowings													25,000				25,000			—
Average interest rate													5.50	%			5.50	%		—
Maturity												N/A				N/A				—
Total cash	$	18,954		$	245	$	16,402			$	3,003	$	119,357			$	157,961		$	149,845
Total debt outstanding	$	174,500		$	—	$	72,750			$	—	$	2,036,406			$	2,283,656		$	2,118,689

(1)Cash resides in the applicable SBIC and is generally not available for corporate use.

(2)Includes deposits of $1.8 million related to the strategic partnership business and $8.2 million related to listing services.

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

We also generate liquidity through deposits generated at the Bank, the offering of privately placed notes, through the issuance of SBA debentures, through our trust preferred securities, and through preferred securities at our subsidiaries and have utilized borrowing arrangements with other banks in the past, as well as from cash flow from operations. In addition, we may choose to participate out a greater portion of our loan portfolio to third parties. We regularly seek additional sources of liquidity; however, given current market conditions, there can be no assurance 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.

Page 56 of 60

Dividends and Stock Repurchases

Beginning in March 2022, the Company's board of directors reinstated our quarterly dividend. A dividend of $0.08 per share was paid in March, May, and August 2023. On October 24, 2023, the Company’s board of directors authorized and increased the quarterly dividend to $0.10 per share, and a dividend of $0.10 per share was paid in November 2023, March 2024, and May 2024. The Company currently expects to continue to pay quarterly dividends at the current rate for the foreseeable future. We may, however, re-evaluate the dividend policy in the future depending on market conditions. There can be no assurance that we will continue to pay any cash distributions, as we may retain our earnings to facilitate the growth of our business, to finance our investments, to provide liquidity, or for other corporate purposes.

On April 29, 2022, our board of directors authorized a new stock repurchase program with no expiration date, pursuant to which we were authorized to repurchase up to $35 million of our shares, which was increased to $40 million on August 10, 2022, also with no expiration date. Such new repurchase program replaced the previous one, which was terminated. During the three months ended June 30, 2024, the Company repurchased 183,900 shares of its common stock at an aggregate cost of $1.5 million. Accordingly, as of June 30, 2024, up to $16,357,829 of shares remained authorized for repurchase under our stock repurchase program.

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, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have 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 June 30, 2024 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 Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

As required by Rule 13a-15(d) under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, have evaluated our internal control over financial reporting to determine whether any changes occurred during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting, and have concluded that there have been no changes that occurred during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Page 57 of 60

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 10 “Commitments and Contingencies” subsections (c) and (d) to the consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q for details of the Company’s legal proceedings.

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, 2023, which was filed with the Securities and Exchange Commission on March 7, 2024.

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

On April 29, 2022, our board of directors authorized a new stock repurchase program with no expiration date, pursuant to which we were authorized to repurchase up to $35 million of our shares, which was increased to $40 million on August 10, 2022, also with no expiration date. Such new repurchase program replaced the previous one, which was terminated. During the quarter ended June 30, 2024, the Company repurchased 183,900 shares of its common stock at an aggregate cost of $1.5 million. Accordingly, as of June 30, 2024, up to $16,357,829 of shares remained authorized for repurchase under our stock repurchase program.

	Total Shares of Common Stock Repurchased		Average Price Paid per Share		Total Amount Paid		Maximum Value of Shares Yet to Be Purchased
April 1 - April 30		—	$	—	$	—	$	17,872,483
May 1 - May 31		107,000		8.15		872,413		17,000,070
June 1 - June 30		76,900		8.35		642,241		16,357,829
Total		183,900	$	8.24	$	1,514,654	$	16,357,829

ITEM 5. OTHER INFORMATION

None of our directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during our fiscal quarter ended June 30, 2024, as such terms are defined under Item 408(a) of Regulation S-K.

Page 58 of 60

ITEM 6. EXHIBITS

EXHIBITS

Number	Description
4.1	Form of Note Purchase Agreement, including the form of Note attached thereto. Filed as Exhibit 4.1 to the Current Report on Form 8-K filed on June 25, 2024 (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 Anthony N. Cutrone 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 Anthony N. Cutrone 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 Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

Page 59 of 60

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:	August 7, 2024
By:	/s/ Alvin Murstein
	Alvin Murstein
	Chairman and Chief Executive Officer
By:	/s/ Anthony N. Cutrone
	Anthony N. Cutrone
	Executive Vice President and Chief Financial Officer
	Signing on behalf of the registrant as principal financial and accounting officer.

Page 60 of 60

EX-31.1

Exhibit 31.1

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 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 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 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 (the registrant’s fourth fiscal quarter in the case of the annual report) 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:	August 7, 2024
By:	/s/ Alvin Murstein
Alvin Murstein
Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Anthony N. Cutrone

I, Anthony N. Cutrone, 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 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 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 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 (the registrant’s fourth fiscal quarter in the case of the annual report) 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:	August 7, 2024
By:	/s/ Anthony N. Cutrone
Anthony N. Cutrone
Executive 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 June 30, 2024 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: August 7, 2024

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 June 30, 2024 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/ Anthony N. Cutrone
Executive Vice President and
Chief Financial Officer

Date: August 7, 2024

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 06, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
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		23,168,761
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
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MFIN
Security Exchange Name	NASDAQ

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2024		Dec. 31, 2023
Assets
Cash and cash equivalents		$ 87,719		$ 52,591
Federal funds sold		70,242		97,254
Investment securities		55,830		54,282
Equity investments		10,795		11,430
Loans		2,385,590		2,215,886
Allowance for credit losses		(89,788)	[1]	(84,235)	[2]
Net loans receivable		2,295,802		2,131,651
Goodwill		150,803		150,803
Intangible assets, net		19,869		20,591
Property, equipment, and right-of-use lease asset, net		14,094		14,076
Accrued interest receivable		13,299		13,538
Loan collateral in process of foreclosure	[3]	9,359		11,772
Income tax receivable		3,290		671
Other assets		29,774		29,168
Total assets		2,760,876		2,587,827
Liabilities
Deposits	[4]	2,006,782		1,866,657
Long-term debt	[5]	230,803		235,544
Short-term borrowings		37,500		8,000
Deferred tax liabilities, net		22,394		21,207
Operating lease liabilities		6,071		7,019
Accrued interest payable		7,945		6,822
Accounts payable and accrued expenses	[6]	26,592		30,804
Total liabilities		2,338,087		2,176,053
Commitments and contingencies
Stockholders’ equity
Preferred stock (1,000,000 shares of $0.01 par value stock authorized-none outstanding)		0		0
Common stock (50,000,000 shares of $0.01 par value stock authorized - 29,262,204 shares at June 30, 2024 and 29,051,800 shares at December 31, 2023 issued)		293		291
Additional paid in capital		290,298		288,046
Treasury stock (6,050,214 shares at June 30, 2024 and 5,602,154 at December 31, 2023)		(49,179)		(45,538)
Accumulated other comprehensive loss		(3,744)		(3,696)
Retained earnings		116,333		103,883
Total stockholders’ equity		354,001		342,986
Non-controlling interest in consolidated subsidiaries		68,788		68,788
Total equity		422,789		411,774
Total liabilities and equity		$ 2,760,876		$ 2,587,827
Number of shares outstanding		23,211,990		23,449,646
Book value per share		$ 15.25		$ 14.63

[1] As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

[2] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

[3] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.

[4] Includes $4.6 million and $4.3 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.

[5] Includes $4.0 million and $4.2 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.

[6] Includes the short-term portion of lease liabilities of $2.3 million and $2.5 million as of June 30, 2024 and December 31, 2023. Refer to Note 6 for more details.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
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	29,262,204	29,051,800
Treasury stock,shares	6,050,214	5,602,154
Loan collateral in process of foreclosure, financed sales collateral to third parties	$ 5.3	$ 6.2
Short term lease liabilities	2.3	2.5
Deposits [Member]
Deferred financing costs	4.6	4.3
Long-Term Debt [Member]
Deferred financing costs	$ 4.0	$ 4.2

XML

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Interest and fees on loans		$ 68,861	$ 59,630	$ 134,082	$ 114,799
Interest and dividends on investment securities		1,843	2,096	3,692	2,769
Total interest income	[1]	70,704	61,726	137,774	117,568
Interest on deposits		16,523	11,329	31,275	19,928
Interest on long-term debt		4,182	2,940	8,437	5,793
Interest on short-term borrowings		131	766	277	1,554
Total interest expense		20,836	15,035	39,989	27,275
Net interest income (loss)		49,868	46,691	97,785	90,293
Provision for credit losses		18,577	8,476	35,778	12,514
Net interest income after provision for credit losses		31,291	38,215	62,007	77,779
Other income (loss)
Gain (loss) on equity investments		(512)	99	3,655	9
Gain on sale of loans and taxi medallions		242	1,306	830	3,161
Write-down of loan collateral in process of foreclosure		0	(21)	0	(273)
Other income		1,369	558	2,017	1,128
Total other income, net		1,099	1,942	6,502	4,025
Other expenses
Salaries and employee benefits		9,435	9,339	18,892	18,175
Loan servicing fees		2,692	2,361	5,162	4,583
Collection costs		1,659	1,608	3,126	3,146
Regulatory fees		888	781	1,865	1,463
Professional fees		1,845	1,368	2,616	3,075
Rent expense		698	603	1,355	1,226
Amortization of intangible assets		362	363	723	723
Other expenses		2,416	2,580	4,481	5,004
Total other expenses		19,995	19,003	38,220	37,395
Income before income taxes		12,395	21,154	30,289	44,409
Income tax provision		3,782	5,472	10,140	11,854
Net income after taxes		8,613	15,682	20,149	32,555
Less: income attributable to the non-controlling interest		1,512	1,512	3,024	3,024
Total net income attributable to Medallion Financial Corp.		$ 7,101	$ 14,170	$ 17,125	$ 29,531
Basic net income per share		$ 0.31	$ 0.63	$ 0.76	$ 1.32
Diluted net income per share		$ 0.3	$ 0.62	$ 0.73	$ 1.29
Weighted average common shares outstanding
Basic		22,598,102	22,488,463	22,619,743	22,416,089
Diluted		23,453,162	22,853,927	23,609,104	22,915,094

[1] Included in interest income is $0.7 million and $1.3 million of paid-in-kind interest for the three and six months ended June 30, 2024 and $0.4 million and $0.6 million for the three and six months ended June 30, 2023.

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Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Interest paid in kind	$ 0.7	$ 0.4	$ 1.3	$ 0.6

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Consolidated Statements of Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 8,613	$ 15,682	$ 20,149	$ 32,555
Other comprehensive income (loss), net of tax	102	(906)	(48)	(400)
Total comprehensive income	8,715	14,776	20,101	32,155
Less comprehensive income attributable to the non-controlling interest	1,512	1,512	3,024	3,024
Total comprehensive income attributable to Medallion Financial Corp.	$ 7,203	$ 13,264	$ 17,077	$ 29,131

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Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands		Total		Common Stock [Member]	Capital in Excess of Par [Member]	Treasury Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Parent [Member]	Noncontrolling Interest [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Common Stock [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Capital in Excess of Par [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Treasury Stock [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Retained Earnings (Accumulated Deficit) [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Parent [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance [Member] Noncontrolling Interest [Member]
Balance at Dec. 31, 2022		$ 370,524		$ 287	$ 283,663	$ (45,538)	$ 66,673	$ (3,349)	$ 301,736	$ 68,788	$ 360,589	$ 287	$ 283,663	$ (45,538)	$ 56,738	$ (3,349)	$ 291,801	$ 68,788
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022		(9,935)					(9,935)		(9,935)
Balance, shares at Dec. 31, 2022				28,663,827		(5,602,154)						28,663,827		(5,602,154)
Net income		16,873					15,361		15,361	1,512
Distributions to non-controlling interest		(1,512)								(1,512)
Stock-based compensation expense		1,036		$ 2	1,034				1,036
Issuance of restricted stock, net, shares				304,749
Withheld restricted stock for employees' tax obligations, shares				(91,169)
Withheld restricted stock for employees' tax obligations, value		(768)			(768)				(768)
Forfeiture of restricted stock, net, shares				(9,843)
Exercise of stock options, value		292			292				292
Exercise of stock options, shares				44,583
Dividends paid on common stock		(1,863)					(1,863)		(1,863)
Net change in unrealized gains on investments, net of tax		506						506	506
Ending balance at Mar. 31, 2023		375,153		$ 289	284,221	$ (45,538)	70,236	(2,843)	306,365	68,788
Ending balance, shares at Mar. 31, 2023				28,912,147		(5,602,154)
Balance at Dec. 31, 2022		370,524		$ 287	283,663	$ (45,538)	66,673	(3,349)	301,736	68,788	360,589	$ 287	283,663	$ (45,538)	56,738	(3,349)	291,801	68,788
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022		(9,935)					(9,935)		(9,935)
Balance, shares at Dec. 31, 2022				28,663,827		(5,602,154)						28,663,827		(5,602,154)
Net income		32,555
Ending balance at Jun. 30, 2023		387,764		$ 289	285,435	$ (45,538)	82,539	(3,749)	318,976	68,788
Ending balance, shares at Jun. 30, 2023				28,947,171		(5,602,154)
Balance at Dec. 31, 2022		370,524		$ 287	283,663	$ (45,538)	66,673	(3,349)	301,736	68,788	$ 360,589	$ 287	$ 283,663	$ (45,538)	$ 56,738	$ (3,349)	$ 291,801	$ 68,788
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2022		$ (9,935)					(9,935)		(9,935)
Balance, shares at Dec. 31, 2022				28,663,827		(5,602,154)						28,663,827		(5,602,154)
Exercise of stock options, shares	[1]	68,945
Net change in unrealized gains on investments, net of tax		$ (300)
Ending balance at Dec. 31, 2023		$ 411,774		$ 291	288,046	$ (45,538)	103,883	(3,696)	342,986	68,788
Ending balance, shares at Dec. 31, 2023		23,449,646		29,051,800		(5,602,154)
Balance at Mar. 31, 2023		$ 375,153		$ 289	284,221	$ (45,538)	70,236	(2,843)	306,365	68,788
Balance, shares at Mar. 31, 2023				28,912,147		(5,602,154)
Net income		15,682					14,170		14,170	1,512
Distributions to non-controlling interest		(1,512)								(1,512)
Stock-based compensation expense		1,214			1,214				1,214
Issuance of restricted stock, net, shares				11,734
Forfeiture of restricted stock, net, shares				(204)
Issuance in connection with vesting of restricted stock unit, Shares				23,211
Exercise of stock options, shares				283
Dividends paid on common stock		(1,867)					(1,867)		(1,867)
Net change in unrealized gains on investments, net of tax		(906)						(906)	(906)
Ending balance at Jun. 30, 2023		387,764		$ 289	285,435	$ (45,538)	82,539	(3,749)	318,976	68,788
Ending balance, shares at Jun. 30, 2023				28,947,171		(5,602,154)
Balance at Dec. 31, 2023		$ 411,774		$ 291	288,046	$ (45,538)	103,883	(3,696)	342,986	68,788
Balance, shares at Dec. 31, 2023		23,449,646		29,051,800		(5,602,154)
Net income		$ 11,536					10,024		10,024	1,512
Distributions to non-controlling interest		(1,512)								(1,512)
Stock-based compensation expense		1,496		$ 1	1,495				1,496
Issuance of restricted stock, net, shares				296,178
Withheld restricted stock for employees' tax obligations, shares				(116,275)
Withheld restricted stock for employees' tax obligations, value		(944)			(944)				(944)
Forfeiture of restricted stock, net, shares				(1,208)
Exercise of stock options, value		$ 88			88				88
Exercise of stock options, shares		13,383	[1]	13,383
Purchase of common stock (in Shares)						(264,160)
Purchase of common stock		$ (2,126)				$ (2,126)			(2,126)
Dividends paid on common stock		(2,338)					(2,338)		(2,338)
Net change in unrealized gains on investments, net of tax		(150)						(150)	(150)
Ending balance at Mar. 31, 2024		417,824		$ 292	288,685	$ (47,664)	111,569	(3,846)	349,036	68,788
Ending balance, shares at Mar. 31, 2024				29,243,878		(5,866,314)
Balance at Dec. 31, 2023		$ 411,774		$ 291	288,046	$ (45,538)	103,883	(3,696)	342,986	68,788
Balance, shares at Dec. 31, 2023		23,449,646		29,051,800		(5,602,154)
Net income		$ 20,149
Ending balance at Jun. 30, 2024		$ 422,789		$ 293	290,298	$ (49,179)	116,333	(3,744)	354,001	68,788
Ending balance, shares at Jun. 30, 2024		23,211,990		29,262,204		(6,050,214)
Balance at Mar. 31, 2024		$ 417,824		$ 292	288,685	$ (47,664)	111,569	(3,846)	349,036	68,788
Balance, shares at Mar. 31, 2024				29,243,878		(5,866,314)
Net income		8,613					7,101		7,101	1,512
Distributions to non-controlling interest		(1,512)								(1,512)
Stock-based compensation expense		1,596		$ 1	1,595				1,596
Forfeiture of restricted stock, net, shares				(1,696)
Issuance in connection with vesting of restricted stock unit, Shares				17,155
Exercise of stock options, value		$ 18			18				18
Exercise of stock options, shares		2,867	[1]	2,867
Purchase of common stock (in Shares)						(183,900)
Purchase of common stock		$ (1,515)				$ (1,515)			(1,515)
Dividends paid on common stock		(2,337)					(2,337)		(2,337)
Net change in unrealized gains on investments, net of tax		102						102	102
Ending balance at Jun. 30, 2024		$ 422,789		$ 293	$ 290,298	$ (49,179)	$ 116,333	$ (3,744)	$ 354,001	$ 68,788
Ending balance, shares at Jun. 30, 2024		23,211,990		29,262,204		(6,050,214)

[1] The aggregate intrinsic value of exercised options, 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 less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.

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Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends payable, amount per share	$ 0.1	$ 0.1	$ 0.08	$ 0.08

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income resulting from operations		$ 20,149	$ 32,555
Adjustments to reconcile net income resulting from operations to net cash provided by operating activities:
Provision for credit losses		35,778	12,514
Paid-in-kind interest income		(1,263)	(644)
Depreciation and amortization		2,717	2,538
Amortization of origination fees, net		4,298	4,667
(Decrease) increase in deferred and other tax liabilities, net		(1,432)	3,164
Net change in value of loan collateral in process of foreclosure		6,642	4,362
Net (gains) loss on investments		(3,655)	99
Stock-based compensation expense		3,092	2,250
Decrease (increase) in accrued interest receivable		239	(732)
Increase in other assets		(2,684)	(10,989)
(Decrease) increase in accounts payable and accrued expenses		(5,104)	8,841
Increase (decrease) in accrued interest payable		1,123	(341)
Net cash provided by operating activities		59,900	58,284
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(491,072)	(583,669)
Proceeds from principal receipts, sales, maturities, and recoveries of loans		277,014	313,847
Purchases of investments		(6,059)	(8,224)
Proceeds from principal receipts, sales, and maturities of investments		8,735	1,400
Proceeds from the sale and principal payments on loan collateral in process of foreclosure		6,865	11,308
Net cash used for investing activities		(204,517)	(265,338)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed		558,266	513,795
Repayments of time deposits and funds borrowed		(393,299)	(280,622)
Cash dividend paid on common stock		(4,731)	(3,663)
Distributions to non-controlling interests		(3,024)	(3,024)
Payment of withholding taxes on net settlement of vested stock		(944)	(768)
Treasury stock repurchased		(3,641)	0
Proceeds from the exercise of stock options		106	292
Net cash provided by financing activities		152,733	226,010
NET INCREASE IN CASH AND CASH EQUIVALENTS		8,116	18,956
Cash, and cash equivalents beginning of period	[1]	149,845	105,598
Cash and cash equivalents, end of period (1)	[1]	157,961	124,554
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest		37,076	25,999
Cash paid during the period for income taxes		10,745	8,662
NON-CASH INVESTING
Loans transferred to loan collateral in process of foreclosure, net		$ 11,094	$ 10,654

[1] Includes federal funds sold.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 7,101	$ 14,170	$ 17,125	$ 29,531

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Non Rule 10b5-1 Arrangement Modified	false
Rule 10b5-1 Arrangement Modified	false

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Organization of Medallion Financial Corp. and its Subsidiaries

6 Months Ended

Jun. 30, 2024

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., or the Company, is a specialty 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, or the Bank, a Federal Deposit Insurance Corporation, or 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 formed in May 2002 for the purpose of obtaining an industrial bank charter pursuant to the laws of the State of Utah. The Bank originates consumer loans on a national basis for the purchase of recreational vehicles, or RVs, boats, collector automobiles, and other consumer recreational equipment and to finance home improvements such as roofs, swimming pools, and windows. Prior to 2015, the Bank originated commercial loans to finance the purchase of taxi medallions, all of which are serviced by the Company. The loans are financed primarily with time certificates of deposit which are originated nationally through a variety of brokered deposit relationships.

The Company also conducts business through its subsidiaries Medallion Capital, Inc., or Medallion Capital, a Small Business Investment Company, or SBIC, which conducts a mezzanine financing business; Medallion Funding LLC, or MFC, an SBIC, which historically was the Company's primary taxi medallion lending company; and Freshstart Venture Capital Corp., or FSVC, which historically originated and serviced taxi medallion and commercial loans and was an SBIC through 2023. Medallion Capital and MFC, as SBICs, are regulated by the Small Business Administration, or SBA. Medallion Capital is financed in part by the SBA.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I, or Fin Trust, for the purpose of issuing unsecured trust 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 $34.0 million at June 30, 2024, are comprised solely of a subordinated note from the Company and 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.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S., or 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 loan collateral 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. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

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.

The Company’s investment in the Bank is consolidated for financial statement purposes. In the notes to the consolidated financial statements included in its Annual Report on Form 10-K, the Company presents its investment in the Bank.

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. As of June 30, 2024, cash includes $1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years.

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or 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 12 and 13 to the consolidated financial statements.

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.8 million and $11.4 million at June 30, 2024 and December 31, 2023, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. During the first quarter of 2024, $4.7 million of unrealized appreciation was recorded with respect to a single equity investment, which was realized in the quarter ended June 30, 2024, with the unrealized appreciation being realized. As of June 30, 2024, cumulative impairment of $4.3 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both June 30, 2024 and December 31, 2023, the fair value of these securities were $1.7 million and are included in other assets on the consolidated balance sheet.

The following table presents the unrealized portion related to the equity securities held.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Net losses recognized during the period on equity securities	$	(7	)	$	(28	)	$	(26	)	$	—
Less: Net gains (losses) recognized during the period on equity    securities sold during the period		—			—			—			—
Unrealized losses recognized during the reporting period on    equity securities still held at the reporting date	$	(7	)	$	(28	)	$	(26	)	$	—

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in 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 $0.1 million at both June 30, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 2024 and 2023. 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable.

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 are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At June 30, 2024 and December 31, 2023, net loan origination costs were $44.6 million and $40.0 million. Net amortization to income was $2.3 million and $4.3 million for the three and six months ended June 30, 2024 and was $2.4 million and $4.3 million for the three and six months ended June 30, 2023.

Interest income is recorded on the accrual basis. Taxi 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 loan portfolio is typified by a larger number of smaller dollar loans that have similar characteristics. A loan is nonperforming when based on current information and events, it is unlikely the Company will be able 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 nonperforming. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation 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 by writing 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 recoveries. Total loans 90 days or more past due were $15.6 million at June 30, 2024, or 0.67% of the total loan portfolio, compared to $16.8 million, or 0.77%, at December 31, 2023. Beginning in the first quarter of 2023, the Company began charging off recreation loans in the event that the borrowers file for bankruptcy, regardless of the loans aging.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include interest 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. Modified loans are considered nonperforming loans.

Loan collateral in process of foreclosure primarily includes taxi 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. For New York City taxi medallion loans in the process of foreclosure, the Company continued to utilize a net value of $79,500 when assessing net realizable value for these taxi medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification, or ASC, Topic 860, Transfers and Servicing, or 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 $14.0 million at June 30, 2024 and December 31, 2023. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of June 30, 2024 and December 31, 2023.

Allowance for Credit Losses

On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquent loan performance and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)	December 31, 2022 Pre-Topic 326 Adoption		Effect of ASC 326 Adoption (Transition Amounts)		January 1, 2023 Post-ASC 326 Adoption
Assets:
Loans:
Recreation	$	41,966	$	10,037	$	52,003
Home improvement		11,340		1,518		12,858
Commercial		1,049		2,157		3,206
Taxi medallion		9,490		—		9,490
Strategic partnership		—		—		—
Allowance for credit losses on loans	$	63,845	$	13,712	$	77,557

Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for taxi medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available.

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, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of June 30, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $19.9 million and $20.6 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2024 and 2023 was $0.4 million and $0.7 million. Management performed a qualitative assessment of goodwill and intangibles for impairment at December 31, 2023, concluding that there was no impairment of these assets.

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)	June 30, 2024		December 31, 2023
Brand-related intellectual property	$	15,125	$	15,675
Home improvement contractor relationships		4,744		4,916
Total intangible assets	$	19,869	$	20,591

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 $0.1 million and $0.2 million for the three and six months ended June 30, 2024 and 2023.

Deferred Costs

Deferred financing costs 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, included as Interest expense in the Consolidated Statements of Operations, was $0.9 million and $1.8 million for the three and six months ended June 30, 2024 and was $0.8 million and $1.5 million for the three and six months ended June 30, 2023. 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 will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or 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 the Company’s 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. 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.

Earnings Per Share (EPS)

Basic earnings per share are computed by dividing net income 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 considering 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 June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2024		2023		2024		2023
Net income attributable to common stockholders	$	7,101	$	14,170	$	17,125	$	29,531
Weighted average common shares outstanding applicable to basic EPS		22,598,102		22,488,463		22,619,743		22,416,089
Effect of restricted stock grants		404,499		276,420		507,416		379,924
Effect of dilutive stock options		163,340		43,567		209,067		96,342
Effect of performance stock unit grants		287,221		45,477		272,878		22,739
Adjusted weighted average common shares outstanding applicable to diluted EPS		23,453,162		22,853,927		23,609,104		22,915,094
Basic net income per share	$	0.31	$	0.63	$	0.76	$	1.32
Diluted net income per share		0.30		0.62		0.73		1.29

Potentially dilutive common shares excluded from the above calculations aggregated 101,350 and 644,478 shares as of June 30, 2024 and 2023.

Stock Compensation

The Company follows FASB ASC Topic 718, or 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 income 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 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 six months ended June 30, 2024 and 2023, the Company issued 296,178 and 316,483 restricted shares of stock-based compensation awards, 215,687 and 296,444 performance stock units, and 92,350 and 0 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.6 million and $3.1 million, or $0.07 and $0.13 per share for the three and six months ended June 30, 2024, and $1.2 million, and $2.2 million or $0.05 and $0.10 per share per common share for the three and six months ended June 30, 2023, of non-cash stock-based compensation expense related to the grants. As of June 30, 2024, the total remaining unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units was $8.4 million, which is expected to be recognized over the next 11 quarters.

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 with, such as certain purchases of assets, 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%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2024, the Bank’s Tier 1 leverage ratio was 16.1%. 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			June 30, 2024			December 31, 2023
Common equity tier 1 capital							$	306,186		$	293,774
Tier 1 capital								374,974			362,561
Total capital								404,742			390,153
Average assets								2,322,625			2,232,816
Risk-weighted assets								2,326,972			2,155,641
Leverage ratio (1)		4.0	%		5.0	%		16.1	%		16.2	%
Common equity tier 1 capital ratio (2)		7.0			6.5			13.2			13.6
Tier 1 capital ratio (3)		8.5			8.0			16.1			16.8
Total capital ratio (3)		10.5			10.0			17.4			18.1

(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 the table above, the minimum risk-based ratios as of June 30, 2024 and December 31, 2023 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2024 and December 31, 2023.

Recently Issued and Adopted Accounting Standards

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. The amendments in this update seek to clarify or improve disclosure and presentation requirements. The amendments in this update will be effective on the date on which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, with early adoption prohibited.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, or Topic 280: Improvements to Reportable Segment Disclosures. The main objective of this update is to provide transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and to be included in interim periods beginning after December 15, 2024. The Company is assessing the impact of the update on the accompanying financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes, or Topic 740: Improvements to Income Tax Disclosures. The main objective of this update is to improve financial reporting disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update are effective for the annual periods beginning after December 15, 2024. The Company is assessing the impact of the update on the accompanying financial statements.

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.

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Investment Securities

6 Months Ended

Jun. 30, 2024

Schedule of Investments [Abstract]

Investment Securities

(3) INVESTMENT SECURITIES

The following tables present details of fixed maturity securities available for sale as of June 30, 2024 and December 31, 2023:

June 30, 2024 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	43,255	$	2	$	(4,763	)	$	38,494
State and municipalities		16,751		52		(1,620	)		15,183
Agency bonds		2,183		—		(30	)		2,153
Total	$	62,189	$	54	$	(6,413	)	$	55,830
December 31, 2023 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	44,653	$	—	$	(4,791	)	$	39,862
State and municipalities		13,733		21		(1,501	)		12,253
Agency bonds		2,187		—		(20	)		2,167
Total	$	60,573	$	21	$	(6,312	)	$	54,282

The amortized cost and estimated market value of investment securities at June 30, 2024 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.

June 30, 2024 (Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	2,039	$	1,996
Due after one year through five years		5,820		5,608
Due after five years through ten years		8,380		7,370
Due after ten years		45,950		40,856
Total	$	62,189	$	55,830

The following tables show information pertaining to securities with gross unrealized losses at June 30, 2024 and December 31, 2023, 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
June 30, 2024 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	(30	)	$	1,988	$	(4,733	)	$	36,024
State and municipalities		(70	)		3,130		(1,550	)		10,005
Agency bonds		—			—		(30	)		2,153
Total	$	(100	)	$	5,118	$	(6,313	)	$	48,182
	Less than Twelve Months					Twelve Months and Over
December 31, 2023 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	(78	)	$	5,797	$	(4,714	)	$	33,971
State and municipalities		(204	)		4,839		(1,296	)		7,371
Agency bonds		—			—		(20	)		2,167
Total	$	(282	)	$	10,636	$	(6,030	)	$	43,509

As of June 30, 2024 and December 31, 2023, the Company had 60 securities with unrealized losses that have not been recognized in income. The investments are mortgage-backed securities and similar instruments with lower risk characteristics. The Company regularly reviews investment securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period. The Company does not intend to sell its investment securities that are in an unrealized loss position and believes that it is unlikely that it will be required to sell these securities before recovery of the amortized cost.

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Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

Text Block [Abstract]

Loans and Allowance for Credit Losses

(4) LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2024 and December 31, 2023.

	June 30, 2024						December 31, 2023
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	1,497,428			63	%	$	1,336,226			60	%
Home improvement		773,184			32			760,617			34
Commercial		110,197			5			114,827			5
Taxi medallion		3,482		*				3,663		*
Strategic partnership		1,299		*				553		*
Total gross loans		2,385,590			100	%		2,215,886			100	%
Allowance for credit losses		(89,788	)					(84,235	)
Total net loans	$	2,295,802					$	2,131,651

(*) Less than 1%.

The following tables show the activity of the gross loans for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2024	$	1,365,165		$	752,262		$	106,570		$	3,560		$	869		$	2,228,426
Loan originations		209,563			67,990			7,000			250			24,288			309,091
Principal receipts, sales, and maturities		(61,553	)		(42,492	)		(3,961	)		(328	)		(23,858	)		(132,192	)
Charge-offs		(14,627	)		(4,063	)		—			—			—			(18,690	)
Transfer to loan collateral in process of foreclosure, net		(5,669	)		—			—			—			—			(5,669	)
Amortization of origination fees, net		(3,214	)		913			10			—			—			(2,291	)
Origination costs, net		7,763			(1,426	)		(77	)		—			—			6,260
Paid-in-kind interest		—			—			655			—			—			655
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2023	$	1,336,226		$	760,617		$	114,827		$	3,663		$	553		$	2,215,886
Loan originations		315,328			119,566			7,000			250			40,034			482,178
Principal receipts, sales, and maturities		(115,589	)		(97,409	)		(12,833	)		(431	)		(39,288	)		(265,550	)
Charge-offs		(32,728	)		(8,961	)		—			—			—			(41,689	)
Transfer to loan collateral in process of foreclosure, net		(11,094	)		—			—			—			—			(11,094	)
Amortization of origination fees, net		(6,166	)		1,851			17			—			—			(4,298	)
Origination costs, net		11,451			(2,480	)		(77	)		—			—			8,894
Paid-in-kind interest		—			—			1,263			—			—			1,263
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2023	$	1,213,380		$	669,642		$	95,329		$	4,059		$	1,770		$	1,984,180
Loan originations		190,007			117,035			4,750			1,300			33,174			346,266
Principal receipts, sales, and maturities		(63,463	)		(55,350	)		(6,922	)		(1,531	)		(33,613	)		(160,879	)
Charge-offs		(9,166	)		(2,575	)		(900	)		(221	)		—			(12,862	)
Transfer to loan collateral in process of foreclosure, net		(3,991	)		—			—			(159	)		—			(4,150	)
Amortization of origination fees, net		(3,159	)		665			—			—			—			(2,494	)
Origination costs, net		7,506			(949	)		—			—			—			6,557
Paid-in-kind interest		—			—			380			—			—			380
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2022	$	1,183,512		$	626,399		$	92,899		$	13,571		$	572		$	1,916,953
Loan originations		291,688			212,016			7,750			1,923			60,180			573,557
Principal receipts, sales, and maturities		(119,680	)		(105,205	)		(7,756	)		(5,926	)		(59,421	)		(297,988	)
Charge-offs		(21,756	)		(4,489	)		(900	)		(3,814	)		—			(30,959	)
Transfer to loan collateral in process of foreclosure, net		(8,348	)		—			—			(2,306	)		—			(10,654	)
Amortization of origination fees, net		(5,918	)		1,251			—			—			—			(4,667	)
Origination costs, net		11,616			(1,504	)		—			—			—			10,112
Paid-in-kind interest		—			—			644			—			—			644
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Allowance for credit losses – beginning balance (1)	$	83,827		$	70,280		$	84,235		$	63,845
CECL transition amount upon ASU 2016-13 adoption		—			—			—			13,712
Charge-offs
Recreation		(14,627	)		(9,166	)		(32,728	)		(21,756	)
Home improvement		(4,063	)		(2,575	)		(8,961	)		(4,489	)
Commercial		—			(900	)		—			(900	)
Taxi medallion		—			(221	)		—			(3,814	)
Total charge-offs		(18,690	)		(12,862	)		(41,689	)		(30,959	)
Recoveries
Recreation		3,962			3,282			7,510			6,053
Home improvement		1,243			627			2,154			1,259
Commercial		—			—			20			10
Taxi medallion		869			5,168			1,780			8,537
Total recoveries		6,074			9,077			11,464			15,859
Net charge-offs (2)		(12,616	)		(3,785	)		(30,225	)		(15,100	)
Provision for credit losses		18,577			8,476			35,778			12,514
Allowance for credit losses – ending balance (3)	$	89,788		$	74,971		$	89,788		$	74,971

(1)2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

(2)As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.

(3)As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2024, by the year of origination:

Three Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	4,099	$	5,049	$	1,990	$	986	$	2,404	$	14,627
Home improvement		40		1,508		1,594		507		119		295		4,063
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	5,607	$	6,643	$	2,497	$	1,105	$	2,699	$	18,690

Six Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	7,862	$	11,867	$	5,487	$	2,275	$	5,138	$	32,728
Home improvement		40		3,032		3,274		1,670		406		539		8,961
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	10,894	$	15,141	$	7,157	$	2,681	$	5,677	$	41,689

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2023, by the year of origination:

Three Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	3,568	$	2,344	$	785	$	918	$	1,507	$	9,166
Home improvement		39		1,548		473		158		91		266		2,575
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		221		221
Total	$	83	$	5,116	$	2,817	$	943	$	1,909	$	1,994	$	12,862

Six Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	7,176	$	5,414	$	2,456	$	2,472	$	4,194	$	21,756
Home improvement		39		2,452		1,101		301		222		374		4,489
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		3,814		3,814
Total	$	83	$	9,628	$	6,515	$	2,757	$	3,594	$	8,382	$	30,959

The following tables set forth the allowance for credit losses by type as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	65,140		73	%		4.35	%		292.79	%
Home improvement		18,388		20			2.38			82.65
Commercial		4,861		5			4.41			21.85
Taxi medallion		1,399		2			40.18			6.29
Total	$	89,788		100	%		3.76	%		403.58	%

December 31, 2023 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	57,532		68	%		4.31	%		221.50	%
Home improvement		21,019		25			2.76			80.92
Commercial		4,148		5			3.61			15.97
Taxi medallion		1,536		2			41.93			5.91
Total	$	84,235		100	%		3.80	%		324.31	%

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the taxi medallion loan portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Total nonaccrual loans	$	22,248		$	25,974
Interest foregone quarter to date		464			417
Amount of foregone interest applied to principal in the quarter		72			59
Interest foregone year to date		662			928
Amount of foregone interest applied to principal for the year		133			238
Interest foregone life-to-date		3,162			2,119
Amount of foregone interest applied to principal life-to-date		814			822
Percentage of nonaccrual loans to gross loan portfolio		0.9	%		1.2	%
Percentage of allowance for credit losses to nonaccrual loans		403.6	%		324.3	%

The following tables present the performance status of loans as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,490,965	$	6,463	$	1,497,428		0.43	%
Home improvement		771,881		1,303		773,184		0.17
Commercial		99,197		11,000		110,197		9.98
Taxi medallion		—		3,482		3,482		100.00
Strategic partnership		1,299		—		1,299		—
Total	$	2,363,342	$	22,248	$	2,385,590		0.93	%
December 31, 2023 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,326,567	$	9,659	$	1,336,226		0.72	%
Home improvement		759,128		1,489		760,617		0.20
Commercial		103,664		11,163		114,827		9.72
Taxi medallion		—		3,663		3,663		100.00
Strategic partnership		553		—		553		—
Total	$	2,189,912	$	25,974	$	2,215,886		1.17	%

For those loans aged under 90 days past due, 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 show the aging of all loans as of June 30, 2024 and December 31, 2023.

June 30, 2024	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	35,094	$	13,278	$	5,938	$	54,310	$	1,394,199	$	1,448,509	$	—
Home improvement		3,637		1,993		1,305		6,935		770,331		777,266		—
Commercial		—		—		8,396		8,396		102,016		110,412		—
Taxi medallion		73		—		—		73		3,409		3,482		—
Strategic partnership		—		—		—		—		1,299		1,299		—
Total	$	38,804	$	15,271	$	15,639	$	69,714	$	2,271,254	$	2,340,968	$	—

(1)Excludes $44.6 million of capitalized loan origination costs.

December 31, 2023	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	40,282	$	15,039	$	9,095	$	64,416	$	1,228,175	$	1,292,591	$	—
Home improvement		3,936		2,562		1,502		8,000		756,069		764,069		—
Commercial		—		2,156		6,240		8,396		107,140		115,536		—
Taxi medallion		201		—		—		201		3,462		3,663		—
Strategic partnership		—		—		—		—		553		553		—
Total	$	44,419	$	19,757	$	16,837	$	81,013	$	2,095,399	$	2,176,412	$	—

(1)Excludes $40.0 million of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the taxi medallion loans was approximately 174% and 183% as of June 30, 2024 and December 31, 2023.

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and taxi medallion loans, for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2024	$	1,475		$	8,723		$	10,198
Transfer from loans, net		5,669			—			5,669
Sales		—			—			—
Cash payments received		(2,225	)		(881	)		(3,106	)
Collateral valuation adjustments		(3,478	)		76			(3,402	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2023	$	1,779		$	9,993		$	11,772
Transfer from loans, net		11,094			—			11,094
Sales		—			(39	)		(39	)
Cash payments received		(4,672	)		(2,154	)		(6,826	)
Collateral valuation adjustments		(6,760	)		118			(6,642	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2023	$	1,461		$	19,006		$	20,467
Transfer from loans, net		3,991			159			4,150
Sales		(2,583	)		(553	)		(3,136	)
Cash payments received		(128	)		(2,517	)		(2,645	)
Collateral valuation adjustments		(2,012	)		(21	)		(2,033	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2022	$	1,376		$	20,443		$	21,819
Transfer from loans, net		8,348			2,306			10,654
Sales		(4,778	)		(568	)		(5,346	)
Cash payments received		(128	)		(5,834	)		(5,962	)
Collateral valuation adjustments		(4,089	)		(273	)		(4,362	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803

As of June 30, 2024, taxi medallion loans in the process of foreclosure included 326 taxi medallions in the New York City market, 188 taxi medallions in the Chicago market, 23 taxi medallions in the Newark market, and 31 taxi medallions in various other markets.

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Funds Borrowed

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Funds Borrowed

(5) FUNDS BORROWED

The following table presents outstanding balances of funds borrowed.

	Payments Due for the Twelve Months Ending June 30,
(Dollars in thousands)	2025		2026		2027		2028		2029		Thereafter		June 30, 2024 (1)		December 31, 2023(1)		Interest Rate (2)
Deposits (3)	$	867,211	$	391,277	$	433,022	$	118,517	$	199,629	$	—	$	2,009,656	$	1,869,439		3.50	%
Retail and privately placed notes		—		31,250		—		53,750		39,000		17,500		141,500		139,500		8.10
SBA debentures and borrowings		12,500		15,500		4,500		—		2,500		37,750		72,750		75,250		3.54
Trust preferred securities		—		—		—		—		—		33,000		33,000		33,000		7.73
Federal reserve and other borrowings		25,000		—		—		—		—		—		25,000		—		5.50
Total	$	904,711	$	438,027	$	437,522	$	172,267	$	241,129	$	88,250	$	2,281,906	$	2,117,189		3.87	%

(1)Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

(2)Weighted average contractual rate as of June 30, 2024.

(3)Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 2024 and December 31, 2023.

(A) DEPOSITS

Most deposits are raised through the use of investment brokerage firms that package time deposits in denominations of less than $250,000 qualifying for FDIC insurance into larger 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. Additionally, the Bank raises deposits through listing services and, as of June 30, 2024 and December 31, 2023, the Bank had $16.1 million and $11.8 million in listing service deposit balances from other financial institutions. In April 2023, the Bank began to originate retail savings deposits through a third-party service provider and, as of June 30, 2024 and December 31, 2023, the Bank had $10.9 million and $14.9 million in retail savings deposit balances. The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2024.

(Dollars in thousands)	June 30, 2024
Three months or less	$	237,363
Over three months through six months		151,130
Over six months through one year		478,718
Over one year		1,142,445
Deposits		2,009,656
Strategic partner collateral deposits		1,750
Total deposits	$	2,011,406

(B) FEDERAL RESERVE DISCOUNT WINDOW AND OTHER BORROWINGS

In March 2023, the Bank established a discount window line of credit at the Federal Reserve. As of June 30, 2024, the Bank had $99.2 million in home improvement loans pledged as collateral to the Federal Reserve. The current advance rate on the pledged securities is approximately 40% of book value, for a total of approximately $40.1 million in secured borrowing capacity, of which $25 million was utilized as of June 30, 2024.

The Bank has borrowing arrangements with several commercial banks. These agreements are accommodations that can be terminated at any time, for any reason, and allow the Bank to borrow up to $75.0 million. As of June 30, 2024, there were no outstanding amounts with respect to these arrangements.

(C) PRIVATELY PLACED NOTES

In June 2024, the Company amended the notes previously issued in a private placement to certain institutional investors in December 2023, increasing the principal amount from $12.5 million to $17.5 million, reducing the interest rate to 8.875% from 9.0%, and extending the maturity date from December 2033 to June 2039. The Company used, and intends to use, the net proceeds from the offering for general corporate purposes, which included the repayment of the remaining 8.25% notes that matured in March 2024 described below.

In September 2023, the Company completed a private placement to certain institutional investors of $39.0 million aggregate principal amount of 9.25% unsecured senior notes due September 2028, with interest payable semiannually. The Company used the net proceeds from the offering for general corporate purposes, including the repurchase of $33.0 million of the 8.25% notes issued in March 2019 with a maturity date of March 2024 described below.

In February 2021, the Company completed a private placement to certain institutional investors of $25.0 million aggregate principal amount of 7.25% unsecured senior notes due February 2026, with interest payable semiannually. In March 2021, an additional $3.3 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $3.0 million principal amount of such notes was issued to certain institutional investors. The Company used the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt.

In December 2020, the Company completed a private placement to certain institutional investors of $33.6 million aggregate principal amount of 7.50% unsecured senior notes due December 2027, with interest payable semiannually. In February and March 2021, an additional $8.5 million principal amount of such notes was issued to certain institutional investors. Subsequently in April 2021, an additional $11.7 million principal amount of such notes was issued to certain institutional investors. The Company used the net proceeds from the offering for general corporate purposes, including repayment of outstanding debt.

In March 2019, the Company completed a private placement to certain institutional investors of $30.0 million aggregate principal amount of 8.25% unsecured senior notes due in March 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 $4.1 million in 2019. In August 2019, an additional $6.0 million principal amount of such notes was issued to certain institutional investors. As described above, in September 2023, the Company repurchased and cancelled $33.0 million of these notes. The remaining $3.0 million principal amount outstanding was repaid in March 2024 at maturity.

(D) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for Medallion Capital and FSVC, typically for a four and a half year term and a 1% fee. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33.5 million in principal into a new loan by the SBA to FSVC in the principal amount of $34.0 million, or the SBA Loan. In connection with the SBA Loan, FSVC executed a Note, or the SBA Note, with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34.0 million. The SBA Loan bore an interest rate of 3.25% with all remaining unpaid principal and interest being due on April 30, 2024, the maturity date. In October 2023, FSVC repaid, in full, all amounts due to the SBA under the SBA Note.

On July 10, 2023, Medallion Capital accepted a commitment from the SBA for $20.0 million in debenture financing. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with an additional $0.4 million fee to be paid pro-rata as Medallion Capital draws under the commitment. As of June 30, 2024, $9.8 million of the commitment had been drawn, and $8.0 million was drawable, with the balance of $2.2 million drawable upon the infusion of $1.1 million of capital from either the capitalization of retained earnings or a capital infusion into Medallion Capital from the Company.

On February 28, 2024, Medallion Capital accepted a commitment from the SBA for $18.5 million in debenture financing with a ten-year term. Medallion Capital can draw funds under the commitment, in whole or in part, until September 30, 2028. In connection with the commitment, Medallion Capital paid the SBA a leverage fee of $0.2 million, with the remaining $0.4 million of the fee to be paid pro rata as Medallion Capital draws under the commitment. As of June 30, 2024, none of the commitment had been drawn, with the entire $18.5 million drawable upon the infusion of $9.3 million of capital from either the capitalization of retained earnings or a capital infusion into Medallion Capital from the Company.

(E) TRUST PREFERRED SECURITIES

In June 2007, the Company issued and sold $36.1 million aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35.0 million of trust preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. Interest is calculated using the Secured Overnight Financing Rate (SOFR) adjusted by a relevant spread adjustment of approximately 26 basis points, plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the trust preferred securities and the notes are substantially identical. In December 2007, $2.0 million of the trust preferred securities were repurchased from a third-party investor. As of June 30, 2024, $33.0 million was outstanding on the trust preferred securities.

(F) OTHER BORROWINGS

In January 2024, Medallion Capital entered into a $7.5 million revolving credit facility with a regional bank. The facility allows Medallion Capital to finance, on a short-term basis, investments for which it anticipates receiving financing from the SBA. The facility bears interest at a rate of 2.75% plus one month SOFR, has an annual facility fee of 0.1%, matures on January 1, 2025, and requires that Medallion Capital have total commitments available from the SBA of at least the total requested advance. As of June 30, 2024, the facility had no outstanding borrowings.

(G) COVENANT COMPLIANCE

Certain of the Company's debt agreements contain financial covenants that require the Company to maintain certain financial ratios and minimum tangible net worth. As of June 30, 2024, the Company was in compliance with all such covenants.

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Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

(6) LEASES

The Company has leased premises that expire at various dates through February 28, 2031 subject to various 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 six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Operating lease costs	$	607		$	597		$	1,210		$	1,195
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		698			603			1,355			1,226
Right-of-use asset obtained in exchange for lease liability		(58	)		(56	)		(118	)		(111	)

The following table presents the breakout of the operating leases as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	$	7,728		$	8,785
Other current liabilities		2,267			2,472
Operating lease liabilities		6,071			7,019
Total operating lease liabilities		8,338			9,491
Weighted average remaining lease term	4.5 years			4.9 years
Weighted average discount rate		5.56	%		5.47	%

At June 30, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)
Remainder of 2024	$	1,268
2025		2,546
2026		2,567
2027		1,342
2028		573
Thereafter		1,139
Total lease payments		9,435
Less imputed interest		1,097
Total operating lease liabilities	$	8,338

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Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

(7) 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 the Company's deferred and other tax assets and liabilities as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Goodwill and other intangibles	$	42,853		$	43,034
Provision for credit losses		(12,844	)		(13,032	)
Net operating loss carryforwards (1)		(3,804	)		(3,802	)
Accrued expenses, compensation, and other assets		(5,433	)		(6,976	)
Unrealized losses on other investments		(1,971	)		(1,877	)
Total deferred tax liability		18,801			17,347
Valuation allowance		3,593			3,860
Deferred tax liability, net	$	22,394		$	21,207

(1)As of June 30, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of June 30, 2024.

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2024			2023		2024		2023
Current
Federal	$	4,792		$	3,873	$	6,521	$	6,456
State		1,476			1,175		2,119		1,964
Deferred
Federal		(1,916	)		204		1,200		2,450
State		(570	)		220		300		984
Net provision for income taxes	$	3,782		$	5,472	$	10,140	$	11,854

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2024		2023		2024		2023
Statutory Federal income tax provision at 21%	$	2,603	$	4,442	$	6,361	$	9,326
State and local income taxes, net of federal income tax benefit		509		869		1,244		1,824
Non-deductible expenses		374		19		2,154		1,076
Other		296		142		381		(372	)
Total income tax provision	$	3,782	$	5,472	$	10,140	$	11,854

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 June 30, 2024.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah state tax filings of the Company for the tax years 2020 through the present are the more significant filings that are open for examination.

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Stock Options and Restricted Stock

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock Options and Restricted Stock

(8) STOCK OPTIONS AND RESTRICTED STOCK

The Company’s Board of Directors approved the 2018 Equity Incentive Plan, or the 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, restricted stock units, performance share units, and stock appreciation rights, etc. On April 22, 2020, the Company’s Board of Directors approved an amendment to the 2018 Plan to increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 19, 2020, and subsequently on April 26, 2022, the Company’s Board of Directors approved an additional amendment to the 2018 Plan to further increase the number of shares of the Company’s common stock authorized for issuance thereunder, which was approved by the Company’s stockholders on June 14, 2022. A total of 5,710,968 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,379,328 remained issuable as of June 30, 2024. 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 Non-Employee Director Stock Option Plan, or the 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 vested 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, or 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 vested 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 June 30, 2024, 943,041 options on the Company’s common stock were outstanding under the Company’s plans, of which 854,742 options were vested. Additionally, as of June 30, 2024, there were 887,665 unvested shares of restricted stock, 512,131 unvested performance stock units, 92,350 unvested restricted stock units, and 234,330 vested restricted stock units under the 2018 Plan.

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. There were no options granted during the six months ended June 30, 2024 and 2023.

During 2023, the Company’s Compensation Committee of the Board of Directors began granting performance stock units, or PSUs, to certain officers and employees of the Company. Granted PSUs are subject to specified performance criteria for a particular performance period. The number of PSUs that vest can range from zero to 200% of the grant amount. In addition, dividends that accrue during the vesting period are reinvested in dividend equivalent PSUs. PSUs and the related dividend equivalent PSUs are converted into shares of common stock after vesting. Once the PSUs and dividend equivalent PSUs have vested, shares of common stock are delivered.

The following table presents the activity for the restricted stock programs for the first and second quarter of 2024 and the 2023 full year.

	Number of Shares				Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2022		857,288		$	4.89 - 7.25		$	7.27
Granted		399,793			7.67 - 9.37			8.34
Cancelled		(12,807	)		4.89 - 8.40			7.24
Vested (1)		(248,898	)		4.89 - 7.68			7.10
Outstanding at December 31, 2023		995,376		$	4.89 - 9.37		$	7.74
Granted		296,178				8.97		8.97
Cancelled		(1,208	)		6.86 - 9.37			8.13
Vested (1)		(400,985	)		4.89 - 8.40			7.69
Outstanding at March 31, 2024 (2)		889,361		$	4.89 - 9.37		$	8.18
Granted		—				—		—
Cancelled		(1,696	)		4.89 - 9.37			7.88
Vested		—				—		—
Outstanding at June 30, 2024 (2)		887,665		$	4.89 - 9.37		$	8.18

(1)The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023.

(2)The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.

During the three and six months ended June 30, 2024, the Company granted 215,687 PSUs at a grant price of $8.97 and during the year ended December 31, 2023, granted 296,444 PSUs at a grant price of $6.08. The PSUs have vesting conditions based upon certain levels of total pre-tax income as well as return on common equity attained over a three-year period. The PSUs cliff vest after three years based upon the performance of the Company. Dividend equivalent PSUs accumulate and convert to additional shares for the benefit of the grantee at the vesting date or are forfeited if the performance conditions are not met.

The following table presents the activity for the stock option programs for the first and second quarter of 2024 and the 2023 full year.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2022		1,061,849		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(33,382	)		4.89 - 9.38			6.80
Exercised (1)		(68,945	)		4.89 - 7.25			6.44
Outstanding at December 31, 2023		959,522		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(85	)			4.89		4.89
Exercised (1)		(13,383	)		4.89 - 7.25			6.61
Outstanding at March 31, 2024 (2)		946,054		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(146	)			4.89		4.89
Exercised (1)		(2,867	)		4.89 - 7.25			6.14
Outstanding at June 30, 2024 (2)		943,041		$	2.14 - 9.38		$	6.51
Options exercisable at:
December 31, 2023		697,647			2.14 - 9.38		$	6.51
June 30, 2024 (2)		854,742		$	2.14 - 9.38		$	6.52

(1)The aggregate intrinsic value of exercised options, 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 less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.

(2)The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024.

The following table presents the activity for the unvested options outstanding under the plans described above for the 2024 first and second quarter.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2023		261,875		$	4.89 - 7.25		$	6.49
Granted		—				—		—
Cancelled		—				—		—
Vested (1)		(173,430	)		4.89 - 7.25			6.56
Outstanding at March 31, 2024		88,445		$	4.89 - 6.79		$	6.37
Granted		—				—		—
Cancelled		(146	)			4.89		4.89
Vested (1)		—				—		—
Outstanding at June 30, 2024		88,299		$	4.89 - 6.79		$	6.37

(1) The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024.

During the three and six months ended June 30, 2024, the Company granted 92,350 restricted stock units, or RSUs, with a vesting date of June 11, 2025 at a grant price of $8.23 and during the year ended December 31, 2023, granted 83,158 RSUs which vested on June 22, 2024 at a grant price of $9.14. For the RSUs granted in 2024 and 2023, unit holders had the option of deferring settlement until a future date if the recipient makes a formal election under the guidelines of IRC Section 409A. As of June 30, 2024, there were 326,680 RSUs outstanding, including 234,330 which had previously vested.

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Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

(9) SEGMENT REPORTING

The Company has five business segments, which include four lending segments and one 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 taxi medallion lending. The recreation and home improvement lending segments are operated by the Bank and loans are made to borrowers residing nationwide. 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, collector automobiles, and other consumer recreational equipment, of which RVs, boats, and collector automobiles make up 54%, 21%, and 11% of the segment portfolio, with no other product lines equal to or exceeding 10%, as of June 30, 2024. The highest concentrations of recreation loans are in Texas and Florida at 16% and 10% of loans outstanding and with no other states at or above 10% as of June 30, 2024. The home improvement lending segment works with contractors and financial service providers to finance residential home improvement with the largest product lines being roofs, swimming pools, and windows at 40%, 21%, and 13% of total home improvement loans outstanding, and with no other product lines exceeding 10% as of June 30, 2024. The highest concentrations of home improvement loans are in Texas and Florida both at 10% of loans outstanding and with no other states at or above 10% as of June 30, 2024. The commercial lending segment focuses on serving a wide variety of industries, with concentrations in manufacturing, construction, and wholesale trade making up 55%, 14%, and 11% of the loans outstanding as of June 30, 2024, with no other product lines exceeding 10% as of June 30, 2024. The commercial lending segment invests across the United States with concentrations in California, Wisconsin, and Texas each having 30%, 10%, and 10% of the segment portfolio, and no other states having a concentration at or greater than 10% as of June 30, 2024. The taxi medallion lending segment arose in connection with the financing of taxi medallions, taxis, and related assets, primarily all of which are located in the New York City metropolitan area as of June 30, 2024.

The Company's corporate and other investments segment is a non-operating segment that includes items not allocated to the Company's operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements.

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, 2024.

Three Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	47,490		$	17,651		$	3,538		$	190		$	1,835		$	70,704
Total interest expense		10,960			6,106			1,056			25			2,689			20,836
Net interest income (loss)		36,530			11,545			2,482			165			(854	)		49,868
Provision (benefit) for credit losses		15,795			3,279			478			(975	)		—			18,577
Net interest income (loss) after loss provision		20,735			8,266			2,004			1,140			(854	)		31,291
Other income (loss), net		306			3			(14	)		334			470			1,099
Operating expenses		(11,236	)		(5,457	)		(1,437	)		(1,373	)		(492	)		(19,995	)
Net income (loss) before taxes		9,805			2,812			553			101			(876	)		12,395
Income tax (provision) benefit		(3,094	)		(802	)		(72	)		(14	)		200			(3,782	)
Net income (loss) after taxes	$	6,711		$	2,010		$	481		$	87		$	(676	)	$	8,613
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	7,101
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.95	%		1.08	%		1.86	%		4.29	%		(0.61	)%		1.30	%
Return on average stockholders' equity	*			*			*			*			*				8.14
Return on average equity		13.05			7.00			12.09			25.69			(3.88	)		8.25
Interest yield		13.30			9.32			13.08			21.62		NM				11.52
Net interest margin, gross		10.23			6.10			9.18			18.78		NM				8.12
Net interest margin, net of allowance		10.69			6.25			9.57			31.77		NM				8.42
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status (1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio (2)		2.99			1.49			—			(98.90	)	NM				2.20

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	91,417		$	35,098		$	7,183		$	330		$	3,746		$	137,774
Total interest expense		20,605			11,740			2,154			53			5,437			39,989
Net interest income (loss)		70,812			23,358			5,029			277			(1,691	)		97,785
Provision (benefit) for credit losses		32,825			4,177			694			(1,918	)		—			35,778
Net interest income (loss) after loss provision		37,987			19,181			4,335			2,195			(1,691	)		62,007
Other income, net		556			5			4,188			973			780			6,502
Operating expenses		(19,523	)		(9,571	)		(2,422	)		(2,116	)		(4,588	)		(38,220	)
Net income (loss) before taxes		19,020			9,615			6,101			1,052			(5,499	)		30,289
Income tax (provision) benefit		(6,368	)		(3,219	)		(2,043	)		(352	)		1,842			(10,140	)
Net income (loss) after taxes	$	12,652		$	6,396		$	4,058		$	700		$	(3,657	)	$	20,149
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	17,125
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.87	%		1.72	%		7.68	%		14.89	%		(1.69	)%		1.55	%
Return on average stockholders' equity	*			*			*			*			*				9.89
Return on average equity		12.31			11.04			49.32			90.99			(10.64	)		9.70
Interest yield		13.20			9.29			12.97			18.78		NM				11.42
Net interest margin, gross		10.23			6.18			9.08			15.59		NM				8.11
Net interest margin, net of allowance		10.69			6.34			9.45			26.61		NM				8.40
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status(1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio(2)		3.64			1.80			(0.04	)		(100.16	)	NM				2.68

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following tables present segment data as of and for the three and six months ended June 30, 2023.

Three Months June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	41,109		$	15,292		$	2,814		$	787		$	1,724		$	61,726
Total interest expense		7,580			4,194			852			46			2,363			15,035
Net interest income (loss)		33,529			11,098			1,962			741			(639	)		46,691
Provision (benefit) for credit losses		10,135			3,739			(113	)		(5,311	)		26			8,476
Net interest income (loss) after loss provision		23,394			7,359			2,075			6,052			(665	)		38,215
Other income, net		—			2			343			1,304			293			1,942
Operating expenses		(8,444	)		(4,388	)		(1,147	)		(743	)		(4,281	)		(19,003	)
Net income (loss) before taxes		14,950			2,973			1,271			6,613			(4,653	)		21,154
Income tax (provision) benefit		(3,867	)		(769	)		(329	)		(1,713	)		1,206			(5,472	)
Net income (loss) after taxes	$	11,083		$	2,204		$	942		$	4,900		$	(3,447	)	$	15,682
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	14,170
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.59	%		1.28	%		3.76	%		100.63	%		(3.69	)%		2.60	%
Return on average stockholders' equity	*			*			*			*			*				18.24
Return on average equity		22.94			8.19			23.97			641.63			(22.83	)		16.52
Interest yield		13.03			8.79			11.87			83.55		NM				11.21
Net interest margin, gross		10.63			6.38			8.28			78.67		NM				8.48
Net interest margin, net of allowance		11.08			6.53			8.54			166.23		NM				8.77
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status (1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		1.86			1.12			3.80			(525.21	)	NM				0.74

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	79,008		$	28,941		$	5,515		$	1,097		$	3,007		$	117,568
Total interest expense		13,484			7,473			1,661			113			4,544			27,275
Net interest income (loss)		65,524			21,468			3,854			984			(1,537	)		90,293
Provision (benefit) for credit losses		17,886			6,820			214			(12,395	)		(11	)		12,514
Net interest income (loss) after loss provision		47,638			14,648			3,640			13,379			(1,526	)		77,779
Other income, net		—			3			614			2,923			485			4,025
Operating expenses		(16,247	)		(8,382	)		(1,567	)		(2,770	)		(8,429	)		(37,395	)
Net income (loss) before taxes		31,391			6,269			2,687			13,532			(9,470	)		44,409
Income tax (provision) benefit		(8,380	)		(1,674	)		(718	)		(3,612	)		2,530			(11,854	)
Net income (loss) after taxes	$	23,011		$	4,595		$	1,969		$	9,920		$	(6,940	)	$	32,555
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	29,531
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.84	%		1.39	%		3.94	%		94.20	%		(3.70	)%		2.79	%
Return on average stockholders' equity	*			*			*			*			*				19.45
Return on average equity		24.13			8.76			24.74			590.25			(23.24	)		17.49
Interest yield		12.93			8.66			11.71			28.80		NM				11.01
Net interest margin, gross		10.72			6.43			8.18			25.84		NM				8.45
Net interest margin, net of allowance		11.18			6.57			8.43			73.52		NM				8.75
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status(1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		2.57			0.97			1.89			(124.01	)	NM				1.51

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(10) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers, including Mr. Alvin Murstein and Mr. Andrew Murstein, for either a one-, two-, three-, four-, or five-year term. Typically, the contracts with a one- or two-year term will renew for new one- or 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 or two-year term (as applicable); however, in addition to Mr. Andrew Murstein's employment agreement, as further described below, there is currently one agreement that renews after two years for additional one-year terms and one agreement with a three-year term that does not have a renewal period. 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.

On April 25, 2023, Mr. Alvin Murstein, the Company’s Chairman of the Board and Chief Executive Officer, notified the Company of his election not to renew the term of his employment pursuant to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Accordingly, the term of his employment as Chief Executive Officer of the Company will expire on May 28, 2027, unless sooner terminated in accordance with the provisions thereof.

In addition, on April 27, 2023, Mr. Andrew Murstein, the Company’s President and Chief Operating Officer, entered into an amendment to the First Amended and Restated Employment Agreement, dated May 29, 1998, as amended, between him and the Company. Pursuant to such amendment, effective as of May 29, 2023, (i) the expiration of his then current term of employment shall be revised to end on May 28, 2027, and (ii) on May 29, 2024, and on each May 29 thereafter, such term of employment shall automatically renew each year for a three-year term unless, prior to the end of the first year of the then-applicable three-year term, either Mr. Murstein or the Company provides at least 30 days’ advance notice to the other party of its intention not to renew the then-applicable term of employment for a new three-year term, in each case unless such employment term is otherwise terminated pursuant to the terms thereof.

As of June 30, 2024, employment agreements expire at various dates through 2027, with future minimum payments under these agreements of approximately $9.8 million.

(B) OTHER COMMITMENTS

As of June 30, 2024, the Company had no other commitments. 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.

(C) SEC LITIGATION

On December 29, 2021, the SEC filed a civil complaint in the U.S. District Court for the Southern District of New York against the Company and its President and Chief Operating Officer alleging certain violations of the anti-fraud, books and records, internal controls and anti-touting provisions of the federal securities laws. The litigation relates to certain issues that occurred during the period 2015 to 2017, including (i) the Company’s retention of third parties in 2015 and 2016 concerning posting information about the Company on certain financial websites and (ii) the Company’s financial reporting and disclosures concerning certain assets, including Medallion Bank, in 2016 and 2017, a period when the Company had previously reported as a business development company (BDC) under the Investment Company Act of 1940. Since April 2018, the Company does not report as a BDC, and has not worked with such third parties since 2016. The Company does not expect to change previously reported financial results. The Company filed a motion to dismiss the complaint on March 22, 2022, the SEC filed an amended complaint on April 26, 2022 and the Company filed a motion to dismiss the amended complaint on August 5, 2022.

The SEC is seeking injunctive relief, disgorgement plus pre-judgment interest and civil penalties in amounts unspecified, as well as an officer and director bar against the Company’s President and Chief Operating Officer. The Company and its President and Chief Operating Officer intend to defend themselves vigorously and believe that the SEC will not prevail on its claims. Nevertheless, depending on the outcome of the litigation, the Company could incur a loss and other penalties that could be material to the Company, its results of operations and/or financial condition, as well as a bar against its President and Chief Operating Officer. In addition, the Company has and expects to further incur significant legal fees and expenses in defending against such charges by the SEC and the Company may be subject to shareholder litigation relating to these SEC matters.

(D) OTHER LITIGATION AND REGULATORY MATTERS

The Company and its subsidiaries are subject to inquiries from certain regulators and are currently involved in various legal proceedings incident to the normal course of business, including collection matters with respect to certain loans. The Company intends to vigorously defend any outstanding claims and pursue its legal rights. In the opinion of management, based on the advice of legal counsel, except for the pending SEC litigation, as described above, 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.

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Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

(11) RELATED PARTY TRANSACTIONS

Certain directors, officers, and stockholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, Medallion Capital, 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, serves as the Company’s Senior Vice President at a salary of $260,988 per year, an increase from $250,950 per year in 2023. Mr. Rudnick received an annual cash bonus of $95,000 and $85,000 as well as an equity bonus in the amount of $52,000 and $50,000, during the six months ended June 30, 2024 and 2023.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Investments, All Other Investments [Abstract]

Fair Value of Financial Instruments

(12) 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 and cash equivalents – Book value equals fair value.

(b) Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes.

(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 approximates fair value.

(e) Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value.

(f) Commitments to extend credit – 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 June 30, 2024 and December 31, 2023, the estimated fair value of these off-balance-sheet instruments was not material.

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

	June 30, 2024				December 31, 2023
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash, cash equivalents, and federal funds sold (1)	$	157,961	$	157,961	$	149,845	$	149,845
Equity investments		10,795		10,795		11,430		11,430
Investment securities		55,830		55,830		54,282		54,282
Loans receivable		2,295,802		2,284,754		2,131,651		2,131,651
Accrued interest receivable (2)		13,299		13,299		13,538		13,538
Equity securities (3)		1,722		1,722		1,748		1,748
Financial liabilities
Funds borrowed		2,283,656		2,249,036		2,118,689		2,118,689
Accrued interest payable (2)		7,945		7,945		6,822		6,822

(1)Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2024 and $1.3 million as of December 31, 2023. See Note 13.

(2)Categorized as level 3 within the fair value hierarchy. See Note 13.

(3)Included within other assets on the balance sheet.

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Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

(13) 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). The Company's 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 (levels 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 U.S. 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.

Equity investments were recorded at cost less impairment plus or minus observable price changes. Commencing in 2020, the Company elected to measure equity investments 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 recurring basis as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Investment securities		—		55,830		—		55,830
Equity securities		1,722		—		—		1,722
Total (1)	$	1,722	$	57,080	$	—	$	58,802

(1)Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2024 related to these assets.

December 31, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Investment securities		—		54,282		—		54,282
Equity securities		1,748		—		—		1,748
Total (1)	$	1,748	$	55,532	$	—	$	57,280

(1)Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.

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 June 30, 2024 and December 31, 2023.

June, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	10,795	$	10,795
Nonaccrual loans		—		—		22,248		22,248
Loan collateral in process of foreclosure		—		—		9,359		9,359
Total	$	—	$	—	$	42,402	$	42,402

December 31, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	11,430	$	11,430
Nonaccrual loans		—		—		25,974		25,974
Loan collateral in process of foreclosure		—		—		11,772		11,772
Total	$	—	$	—	$	49,176	$	49,176

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 non-recurring level 3 fair value measurements of assets and liabilities as of June 30, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)	Fair Value at June 30, 2024		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	10,522	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Nonaccrual loans		22,248	Market approach	Historical and actual loss experience	0.00% - 23.06%
				Transfer prices (2)	$0.0 - 79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		9,359	Market approach	Transfer prices (2)	$0.0 - 79.5
				Collateral value (3)	$2.5 - $51.3

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation loan portfolio.

(Dollars in thousands except per share amounts)	Fair Value at December 31, 2023		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	11,157	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Nonaccrual loans		25,974	Market approach	Historical and actual loss experience	0.00% - 28.48%
				Transfer prices (2)	$0.0 - $79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		11,772	Market approach	Transfer prices (2)	$0.0 - $79.5
				Collateral value (3)	$2.3 - $45.0

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation loan portfolio.

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Medallion Bank Preferred Stock (Non-controlling Interest)

6 Months Ended

Jun. 30, 2024

Medallion Bank Preferred Stock (Non-controlling Interest)

(14) MEDALLION BANK PREFERRED STOCK (Non-controlling interest)

On December 17, 2019, the Bank closed an initial public offering of 1,840,000 shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, with a $46.0 million aggregate liquidation amount, yielding net proceeds of $42.5 million, which were recorded in the Bank’s shareholders’ equity. Dividends are payable quarterly from the date of issuance to, but excluding April 1, 2025, at a rate of 8% per annum, and from and including April 1, 2025, at a floating rate equal to a benchmark rate (which is expected to be the three month Secured Overnight Financing Rate, or SOFR) plus a spread of 6.46% per annum.

On July 21, 2011, the Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E for an aggregate purchase price of $26.3 million under the Small Business Lending Fund Program, or SBLF, with a liquidation amount of $1,000 per share. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. The Bank pays a dividend rate of 9% on the Series E.

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Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

(15) SUBSEQUENT EVENTS

The Company has evaluated the effects of events that have occurred subsequent to June 30, 2024 through the date of financial statement issuance for potential recognition or disclosure. As of such date, there were no subsequent events that required recognition or disclosure.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S., or 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 loan collateral 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. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation.

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.

The Company’s investment in the Bank is consolidated for financial statement purposes. In the notes to the consolidated financial statements included in its Annual Report on Form 10-K, the Company presents its investment in the Bank.

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. As of June 30, 2024, cash includes $1.3 million of interest-bearing funds deposited in other banks with original terms of 5 to 6 years.

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows the Financial Accounting Standards Board, or FASB, FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, or 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 12 and 13 to the consolidated financial statements.

Equity Investments

Equity Investments

The Company follows FASB ASC Topic 321, Investments – Equity Securities, or ASC 321, which requires all applicable investments in equity securities with a readily determinable fair value to be valued as such, and those without a readily determinable fair value, are measured at cost, less any impairment plus or minus any observable price changes. Equity investments of $10.8 million and $11.4 million at June 30, 2024 and December 31, 2023, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost less any impairment plus or minus observable price changes. Substantially all of these equity investments are held by Medallion Capital, our SBIC subsidiary, in connection with its mezzanine lending business. During the first quarter of 2024, $4.7 million of unrealized appreciation was recorded with respect to a single equity investment, which was realized in the quarter ended June 30, 2024, with the unrealized appreciation being realized. As of June 30, 2024, cumulative impairment of $4.3 million had been recorded with respect to these investments.

During 2021, the Company purchased $2.0 million of equity securities with a readily determinable fair value. As a result, all unrealized gains and losses are included in gain (loss) on equity investments. As of both June 30, 2024 and December 31, 2023, the fair value of these securities were $1.7 million and are included in other assets on the consolidated balance sheet.

The following table presents the unrealized portion related to the equity securities held.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Net losses recognized during the period on equity securities	$	(7	)	$	(28	)	$	(26	)	$	—
Less: Net gains (losses) recognized during the period on equity    securities sold during the period		—			—			—			—
Unrealized losses recognized during the reporting period on    equity securities still held at the reporting date	$	(7	)	$	(28	)	$	(26	)	$	—

Investment Securities

Investment Securities

The Company follows FASB ASC Topic 320, Investments – Debt Securities, or ASC 320, which requires that all applicable investments in 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 $0.1 million at both June 30, 2024 and December 31, 2023, and less than $0.1 million was amortized to interest income for each of the three and six months ended June 30, 2024 and 2023. 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. In accordance with ASC 326, we do not maintain an allowance for credit losses for accrued interest receivable.

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 are amortized to interest income over the life of the loan.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At June 30, 2024 and December 31, 2023, net loan origination costs were $44.6 million and $40.0 million. Net amortization to income was $2.3 million and $4.3 million for the three and six months ended June 30, 2024 and was $2.4 million and $4.3 million for the three and six months ended June 30, 2023.

Interest income is recorded on the accrual basis. Taxi 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 loan portfolio is typified by a larger number of smaller dollar loans that have similar characteristics. A loan is nonperforming when based on current information and events, it is unlikely the Company will be able 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 nonperforming. Consumer 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 recovery efforts against both the borrower and the underlying collateral are initiated. For the recreation 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 by writing 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 recoveries. Total loans 90 days or more past due were $15.6 million at June 30, 2024, or 0.67% of the total loan portfolio, compared to $16.8 million, or 0.77%, at December 31, 2023. Beginning in the first quarter of 2023, the Company began charging off recreation loans in the event that the borrowers file for bankruptcy, regardless of the loans aging.

The Company may modify the contractual cash flow of loans in situations where borrowers are experiencing financial difficulties. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before they reach nonaccrual status. These modified terms may include interest 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. Modified loans are considered nonperforming loans.

Loan collateral in process of foreclosure primarily includes taxi 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. For New York City taxi medallion loans in the process of foreclosure, the Company continued to utilize a net value of $79,500 when assessing net realizable value for these taxi medallion loans, despite fluctuating current transfer prices which may exceed that level from time to time. The "loan collateral in the process of foreclosure" designation reflects that the collection activities on these loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification, or ASC, Topic 860, Transfers and Servicing, or 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 $14.0 million at June 30, 2024 and December 31, 2023. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860 and determined that no material servicing asset or liability existed as of June 30, 2024 and December 31, 2023.

Allowance for Credit Losses

Allowance for Credit Losses

On January 1, 2023, the Company adopted Accounting Standards Update 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", or ASC 326, which replaced the incurred loss methodology that delayed recognition until it was probable a loss had been incurred with a lifetime expected loss methodology using "reasonable and supportable" expectations about the future, referred to as the current expected credit loss, or CECL, methodology. For consumer loans, the Company uses historical delinquent loan performance and actual loss rates modified by quantitative adjustments based on macroeconomic factors over a twelve-month reasonable and supportable forecast period. For commercial loans, the Company assesses the historical impact that macroeconomic indicators have had on the loan portfolio, to determine an approximate allowance for credit loss. Unlike consumer loans, where loans may have similar performing characteristics, each commercial loan is unique. The Company evaluates each commercial loan for specific impairment with additional allowance for credit losses recognized as necessary. For taxi medallion loans, the Company maintains specific reserves adjusting the carrying amount of loans down to net collateral value. The allowance is evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation is inherently subjective, as it requires estimates, including those based on changes in economic conditions, that are susceptible to significant revision as more information becomes available. Credit losses are deducted from the allowance, and subsequent recoveries are added back to the allowance.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after December 15, 2022 are presented under ASC 326. The transition to the CECL methodology on January 1, 2023 resulted in an increase of $13.7 million to the Company's allowance for credit losses on loans, or ACL, and a net-of-tax cumulative-effect adjustment of $9.9 million to the beginning balance of retained earnings. The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)	December 31, 2022 Pre-Topic 326 Adoption		Effect of ASC 326 Adoption (Transition Amounts)		January 1, 2023 Post-ASC 326 Adoption
Assets:
Loans:
Recreation	$	41,966	$	10,037	$	52,003
Home improvement		11,340		1,518		12,858
Commercial		1,049		2,157		3,206
Taxi medallion		9,490		—		9,490
Strategic partnership		—		—		—
Allowance for credit losses on loans	$	63,845	$	13,712	$	77,557

Prior to January 1, 2023, the Company used historical delinquency and actual loss rates with a three-year look-back period for taxi medallion loans and a one-year look-back period for recreation and home improvement loans and used historical loss experience and other projections for commercial loans. The allowance was evaluated on a quarterly basis by management based on the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrowers' ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. This evaluation was inherently subjective, as it required estimates that were susceptible to significant revision as more information became available.

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, and such testing is performed at least on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. As of June 30, 2024 and December 31, 2023, the Company had goodwill of $150.8 million, all of which related to the Bank. As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $19.9 million and $20.6 million. Amortization expense on the intangible assets for the three and six months ended June 30, 2024 and 2023 was $0.4 million and $0.7 million. Management performed a qualitative assessment of goodwill and intangibles for impairment at December 31, 2023, concluding that there was no impairment of these assets.

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)	June 30, 2024		December 31, 2023
Brand-related intellectual property	$	15,125	$	15,675
Home improvement contractor relationships		4,744		4,916
Total intangible assets	$	19,869	$	20,591

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 $0.1 million and $0.2 million for the three and six months ended June 30, 2024 and 2023.

Deferred Costs

Deferred Costs

Deferred financing costs 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, included as Interest expense in the Consolidated Statements of Operations, was $0.9 million and $1.8 million for the three and six months ended June 30, 2024 and was $0.8 million and $1.5 million for the three and six months ended June 30, 2023. 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 will be amortized against income over an appropriate period, or written off. The amount on the Company’s balance sheet for all of these purposes were $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes, or 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 the Company’s 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. 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.

Earnings Per Share (EPS)

Earnings Per Share (EPS)

Basic earnings per share are computed by dividing net income 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 considering 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 June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2024		2023		2024		2023
Net income attributable to common stockholders	$	7,101	$	14,170	$	17,125	$	29,531
Weighted average common shares outstanding applicable to basic EPS		22,598,102		22,488,463		22,619,743		22,416,089
Effect of restricted stock grants		404,499		276,420		507,416		379,924
Effect of dilutive stock options		163,340		43,567		209,067		96,342
Effect of performance stock unit grants		287,221		45,477		272,878		22,739
Adjusted weighted average common shares outstanding applicable to diluted EPS		23,453,162		22,853,927		23,609,104		22,915,094
Basic net income per share	$	0.31	$	0.63	$	0.76	$	1.32
Diluted net income per share		0.30		0.62		0.73		1.29

Potentially dilutive common shares excluded from the above calculations aggregated 101,350 and 644,478 shares as of June 30, 2024 and 2023.

Stock Compensation

Stock Compensation

The Company follows FASB ASC Topic 718, or 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 income 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 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 six months ended June 30, 2024 and 2023, the Company issued 296,178 and 316,483 restricted shares of stock-based compensation awards, 215,687 and 296,444 performance stock units, and 92,350 and 0 restricted stock units or shares of other stock-based compensation awards. The Company recognized $1.6 million and $3.1 million, or $0.07 and $0.13 per share for the three and six months ended June 30, 2024, and $1.2 million, and $2.2 million or $0.05 and $0.10 per share per common share for the three and six months ended June 30, 2023, of non-cash stock-based compensation expense related to the grants. As of June 30, 2024, the total remaining unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units was $8.4 million, which is expected to be recognized over the next 11 quarters.

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 with, such as certain purchases of assets, 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%, a level which could affect the Bank's ability to pay dividends to the Company, and that an adequate allowance for credit losses be maintained. As of June 30, 2024, the Bank’s Tier 1 leverage ratio was 16.1%. 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			June 30, 2024			December 31, 2023
Common equity tier 1 capital							$	306,186		$	293,774
Tier 1 capital								374,974			362,561
Total capital								404,742			390,153
Average assets								2,322,625			2,232,816
Risk-weighted assets								2,326,972			2,155,641
Leverage ratio (1)		4.0	%		5.0	%		16.1	%		16.2	%
Common equity tier 1 capital ratio (2)		7.0			6.5			13.2			13.6
Tier 1 capital ratio (3)		8.5			8.0			16.1			16.8
Total capital ratio (3)		10.5			10.0			17.4			18.1

(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 the table above, the minimum risk-based ratios as of June 30, 2024 and December 31, 2023 reflect the capital conservation buffer of 2.5%. The minimum regulatory requirements, inclusive of the capital conservation buffer, were the binding requirements for the risk-based requirements, and the “well-capitalized” requirements were the binding requirements for Tier 1 leverage capital as of both June 30, 2024 and December 31, 2023.

Recently Issued and Adopted Accounting Standards

Recently Issued and Adopted Accounting Standards

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. The amendments in this update seek to clarify or improve disclosure and presentation requirements. The amendments in this update will be effective on the date on which the SEC’s removal of related disclosures from Regulation S-X or Regulation S-K become effective, with early adoption prohibited.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting, or Topic 280: Improvements to Reportable Segment Disclosures. The main objective of this update is to provide transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and to be included in interim periods beginning after December 15, 2024. The Company is assessing the impact of the update on the accompanying financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes, or Topic 740: Improvements to Income Tax Disclosures. The main objective of this update is to improve financial reporting disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update are effective for the annual periods beginning after December 15, 2024. The Company is assessing the impact of the update on the accompanying financial statements.

Reclassifications

Reclassifications

Certain reclassifications have been made to prior year balances to conform with the current year presentation. These reclassifications have no effect on the previously reported results of operations.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Unrealized Portion Related to Equity Securities

The following table presents the unrealized portion related to the equity securities held.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Net losses recognized during the period on equity securities	$	(7	)	$	(28	)	$	(26	)	$	—
Less: Net gains (losses) recognized during the period on equity    securities sold during the period		—			—			—			—
Unrealized losses recognized during the reporting period on    equity securities still held at the reporting date	$	(7	)	$	(28	)	$	(26	)	$	—

Summary of Finalized Adoption Related to Allowance for Credit Losses on Loans

The CECL methodology transition effects on the allowance for credit losses are shown in the following table:

(Dollars in thousands)	December 31, 2022 Pre-Topic 326 Adoption		Effect of ASC 326 Adoption (Transition Amounts)		January 1, 2023 Post-ASC 326 Adoption
Assets:
Loans:
Recreation	$	41,966	$	10,037	$	52,003
Home improvement		11,340		1,518		12,858
Commercial		1,049		2,157		3,206
Taxi medallion		9,490		—		9,490
Strategic partnership		—		—		—
Allowance for credit losses on loans	$	63,845	$	13,712	$	77,557

Schedule of Intangible Assets

The following table details the intangible assets as of the dates presented:

(Dollars in thousands)	June 30, 2024		December 31, 2023
Brand-related intellectual property	$	15,125	$	15,675
Home improvement contractor relationships		4,744		4,916
Total intangible assets	$	19,869	$	20,591

Summary of the Calculation of Basic and Diluted EPS

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

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except share and per share data)	2024		2023		2024		2023
Net income attributable to common stockholders	$	7,101	$	14,170	$	17,125	$	29,531
Weighted average common shares outstanding applicable to basic EPS		22,598,102		22,488,463		22,619,743		22,416,089
Effect of restricted stock grants		404,499		276,420		507,416		379,924
Effect of dilutive stock options		163,340		43,567		209,067		96,342
Effect of performance stock unit grants		287,221		45,477		272,878		22,739
Adjusted weighted average common shares outstanding applicable to diluted EPS		23,453,162		22,853,927		23,609,104		22,915,094
Basic net income per share	$	0.31	$	0.63	$	0.76	$	1.32
Diluted net income per share		0.30		0.62		0.73		1.29

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			June 30, 2024			December 31, 2023
Common equity tier 1 capital							$	306,186		$	293,774
Tier 1 capital								374,974			362,561
Total capital								404,742			390,153
Average assets								2,322,625			2,232,816
Risk-weighted assets								2,326,972			2,155,641
Leverage ratio (1)		4.0	%		5.0	%		16.1	%		16.2	%
Common equity tier 1 capital ratio (2)		7.0			6.5			13.2			13.6
Tier 1 capital ratio (3)		8.5			8.0			16.1			16.8
Total capital ratio (3)		10.5			10.0			17.4			18.1

(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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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Investments [Abstract]

Summary of Fixed Maturity Securities Available for Sale

maturity securities available for sale as of June 30, 2024 and December 31, 2023:

June 30, 2024 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	43,255	$	2	$	(4,763	)	$	38,494
State and municipalities		16,751		52		(1,620	)		15,183
Agency bonds		2,183		—		(30	)		2,153
Total	$	62,189	$	54	$	(6,413	)	$	55,830
December 31, 2023 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	44,653	$	—	$	(4,791	)	$	39,862
State and municipalities		13,733		21		(1,501	)		12,253
Agency bonds		2,187		—		(20	)		2,167
Total	$	60,573	$	21	$	(6,312	)	$	54,282

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

The amortized cost and estimated market value of investment securities at June 30, 2024 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.

June 30, 2024 (Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	2,039	$	1,996
Due after one year through five years		5,820		5,608
Due after five years through ten years		8,380		7,370
Due after ten years		45,950		40,856
Total	$	62,189	$	55,830

Summary of Securities with Gross Unrealized Losses

The following tables show information pertaining to securities with gross unrealized losses at June 30, 2024 and December 31, 2023, 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
June 30, 2024 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	(30	)	$	1,988	$	(4,733	)	$	36,024
State and municipalities		(70	)		3,130		(1,550	)		10,005
Agency bonds		—			—		(30	)		2,153
Total	$	(100	)	$	5,118	$	(6,313	)	$	48,182
	Less than Twelve Months					Twelve Months and Over
December 31, 2023 (Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of U.S. federal agencies	$	(78	)	$	5,797	$	(4,714	)	$	33,971
State and municipalities		(204	)		4,839		(1,296	)		7,371
Agency bonds		—			—		(20	)		2,167
Total	$	(282	)	$	10,636	$	(6,030	)	$	43,509

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Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Text Block [Abstract]

Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, as of June 30, 2024 and December 31, 2023.

	June 30, 2024						December 31, 2023
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	1,497,428			63	%	$	1,336,226			60	%
Home improvement		773,184			32			760,617			34
Commercial		110,197			5			114,827			5
Taxi medallion		3,482		*				3,663		*
Strategic partnership		1,299		*				553		*
Total gross loans		2,385,590			100	%		2,215,886			100	%
Allowance for credit losses		(89,788	)					(84,235	)
Total net loans	$	2,295,802					$	2,131,651

(*) Less than 1%.

Schedule of Activity of Gross Loans

The following tables show the activity of the gross loans for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2024	$	1,365,165		$	752,262		$	106,570		$	3,560		$	869		$	2,228,426
Loan originations		209,563			67,990			7,000			250			24,288			309,091
Principal receipts, sales, and maturities		(61,553	)		(42,492	)		(3,961	)		(328	)		(23,858	)		(132,192	)
Charge-offs		(14,627	)		(4,063	)		—			—			—			(18,690	)
Transfer to loan collateral in process of foreclosure, net		(5,669	)		—			—			—			—			(5,669	)
Amortization of origination fees, net		(3,214	)		913			10			—			—			(2,291	)
Origination costs, net		7,763			(1,426	)		(77	)		—			—			6,260
Paid-in-kind interest		—			—			655			—			—			655
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2023	$	1,336,226		$	760,617		$	114,827		$	3,663		$	553		$	2,215,886
Loan originations		315,328			119,566			7,000			250			40,034			482,178
Principal receipts, sales, and maturities		(115,589	)		(97,409	)		(12,833	)		(431	)		(39,288	)		(265,550	)
Charge-offs		(32,728	)		(8,961	)		—			—			—			(41,689	)
Transfer to loan collateral in process of foreclosure, net		(11,094	)		—			—			—			—			(11,094	)
Amortization of origination fees, net		(6,166	)		1,851			17			—			—			(4,298	)
Origination costs, net		11,451			(2,480	)		(77	)		—			—			8,894
Paid-in-kind interest		—			—			1,263			—			—			1,263
Gross loans – June 30, 2024	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Taxi Medallion			Strategic Partnership			Total
Gross loans – March 31, 2023	$	1,213,380		$	669,642		$	95,329		$	4,059		$	1,770		$	1,984,180
Loan originations		190,007			117,035			4,750			1,300			33,174			346,266
Principal receipts, sales, and maturities		(63,463	)		(55,350	)		(6,922	)		(1,531	)		(33,613	)		(160,879	)
Charge-offs		(9,166	)		(2,575	)		(900	)		(221	)		—			(12,862	)
Transfer to loan collateral in process of foreclosure, net		(3,991	)		—			—			(159	)		—			(4,150	)
Amortization of origination fees, net		(3,159	)		665			—			—			—			(2,494	)
Origination costs, net		7,506			(949	)		—			—			—			6,557
Paid-in-kind interest		—			—			380			—			—			380
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2022	$	1,183,512		$	626,399		$	92,899		$	13,571		$	572		$	1,916,953
Loan originations		291,688			212,016			7,750			1,923			60,180			573,557
Principal receipts, sales, and maturities		(119,680	)		(105,205	)		(7,756	)		(5,926	)		(59,421	)		(297,988	)
Charge-offs		(21,756	)		(4,489	)		(900	)		(3,814	)		—			(30,959	)
Transfer to loan collateral in process of foreclosure, net		(8,348	)		—			—			(2,306	)		—			(10,654	)
Amortization of origination fees, net		(5,918	)		1,251			—			—			—			(4,667	)
Origination costs, net		11,616			(1,504	)		—			—			—			10,112
Paid-in-kind interest		—			—			644			—			—			644
Gross loans – June 30, 2023	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998

Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for credit losses for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Allowance for credit losses – beginning balance (1)	$	83,827		$	70,280		$	84,235		$	63,845
CECL transition amount upon ASU 2016-13 adoption		—			—			—			13,712
Charge-offs
Recreation		(14,627	)		(9,166	)		(32,728	)		(21,756	)
Home improvement		(4,063	)		(2,575	)		(8,961	)		(4,489	)
Commercial		—			(900	)		—			(900	)
Taxi medallion		—			(221	)		—			(3,814	)
Total charge-offs		(18,690	)		(12,862	)		(41,689	)		(30,959	)
Recoveries
Recreation		3,962			3,282			7,510			6,053
Home improvement		1,243			627			2,154			1,259
Commercial		—			—			20			10
Taxi medallion		869			5,168			1,780			8,537
Total recoveries		6,074			9,077			11,464			15,859
Net charge-offs (2)		(12,616	)		(3,785	)		(30,225	)		(15,100	)
Provision for credit losses		18,577			8,476			35,778			12,514
Allowance for credit losses – ending balance (3)	$	89,788		$	74,971		$	89,788		$	74,971

(1)2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

(2)As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.

(3)As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

Summary of Gross Charge Offs

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2024, by the year of origination:

Three Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	4,099	$	5,049	$	1,990	$	986	$	2,404	$	14,627
Home improvement		40		1,508		1,594		507		119		295		4,063
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	5,607	$	6,643	$	2,497	$	1,105	$	2,699	$	18,690

Six Months Ended June 30, 2024 (Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Recreation	$	99	$	7,862	$	11,867	$	5,487	$	2,275	$	5,138	$	32,728
Home improvement		40		3,032		3,274		1,670		406		539		8,961
Commercial		—		—		—		—		—		—		—
Taxi medallion		—		—		—		—		—		—		—
Total	$	139	$	10,894	$	15,141	$	7,157	$	2,681	$	5,677	$	41,689

The following tables set forth the gross charge-offs for the three and six months ended June 30, 2023, by the year of origination:

Three Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	3,568	$	2,344	$	785	$	918	$	1,507	$	9,166
Home improvement		39		1,548		473		158		91		266		2,575
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		221		221
Total	$	83	$	5,116	$	2,817	$	943	$	1,909	$	1,994	$	12,862

Six Months Ended June 30, 2023 (Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Recreation	$	44	$	7,176	$	5,414	$	2,456	$	2,472	$	4,194	$	21,756
Home improvement		39		2,452		1,101		301		222		374		4,489
Commercial		—		—		—		—		900		—		900
Taxi medallion		—		—		—		—		—		3,814		3,814
Total	$	83	$	9,628	$	6,515	$	2,757	$	3,594	$	8,382	$	30,959

Summary of Allowance for Loan Losses by Type

The following tables set forth the allowance for credit losses by type as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	65,140		73	%		4.35	%		292.79	%
Home improvement		18,388		20			2.38			82.65
Commercial		4,861		5			4.41			21.85
Taxi medallion		1,399		2			40.18			6.29
Total	$	89,788		100	%		3.76	%		403.58	%

December 31, 2023 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	57,532		68	%		4.31	%		221.50	%
Home improvement		21,019		25			2.76			80.92
Commercial		4,148		5			3.61			15.97
Taxi medallion		1,536		2			41.93			5.91
Total	$	84,235		100	%		3.80	%		324.31	%

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 taxi medallion loan portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Total nonaccrual loans	$	22,248		$	25,974
Interest foregone quarter to date		464			417
Amount of foregone interest applied to principal in the quarter		72			59
Interest foregone year to date		662			928
Amount of foregone interest applied to principal for the year		133			238
Interest foregone life-to-date		3,162			2,119
Amount of foregone interest applied to principal life-to-date		814			822
Percentage of nonaccrual loans to gross loan portfolio		0.9	%		1.2	%
Percentage of allowance for credit losses to nonaccrual loans		403.6	%		324.3	%

Summary of Performance Status of Loan

The following tables present the performance status of loans as of June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,490,965	$	6,463	$	1,497,428		0.43	%
Home improvement		771,881		1,303		773,184		0.17
Commercial		99,197		11,000		110,197		9.98
Taxi medallion		—		3,482		3,482		100.00
Strategic partnership		1,299		—		1,299		—
Total	$	2,363,342	$	22,248	$	2,385,590		0.93	%
December 31, 2023 (Dollars in thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	1,326,567	$	9,659	$	1,336,226		0.72	%
Home improvement		759,128		1,489		760,617		0.20
Commercial		103,664		11,163		114,827		9.72
Taxi medallion		—		3,663		3,663		100.00
Strategic partnership		553		—		553		—
Total	$	2,189,912	$	25,974	$	2,215,886		1.17	%

Summary of Aging of Loans

he following tables show the aging of all loans as of June 30, 2024 and December 31, 2023.

June 30, 2024	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	35,094	$	13,278	$	5,938	$	54,310	$	1,394,199	$	1,448,509	$	—
Home improvement		3,637		1,993		1,305		6,935		770,331		777,266		—
Commercial		—		—		8,396		8,396		102,016		110,412		—
Taxi medallion		73		—		—		73		3,409		3,482		—
Strategic partnership		—		—		—		—		1,299		1,299		—
Total	$	38,804	$	15,271	$	15,639	$	69,714	$	2,271,254	$	2,340,968	$	—

(1)Excludes $44.6 million of capitalized loan origination costs.

December 31, 2023	Days Past Due												Recorded Investment 90 Days and
(Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total (1)		Accruing
Recreation	$	40,282	$	15,039	$	9,095	$	64,416	$	1,228,175	$	1,292,591	$	—
Home improvement		3,936		2,562		1,502		8,000		756,069		764,069		—
Commercial		—		2,156		6,240		8,396		107,140		115,536		—
Taxi medallion		201		—		—		201		3,462		3,663		—
Strategic partnership		—		—		—		—		553		553		—
Total	$	44,419	$	19,757	$	16,837	$	81,013	$	2,095,399	$	2,176,412	$	—

(1)Excludes $40.0 million of capitalized loan origination costs.

Summary of Activities of the Loan Collateral Process of Foreclosure Related to Recreation and Medallion Loans

The following tables show the activity of loan collateral in process of foreclosure, which relate only to the recreation and taxi medallion loans, for the three and six months ended June 30, 2024 and 2023.

Three Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2024	$	1,475		$	8,723		$	10,198
Transfer from loans, net		5,669			—			5,669
Sales		—			—			—
Cash payments received		(2,225	)		(881	)		(3,106	)
Collateral valuation adjustments		(3,478	)		76			(3,402	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359
Six Months Ended June 30, 2024 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2023	$	1,779		$	9,993		$	11,772
Transfer from loans, net		11,094			—			11,094
Sales		—			(39	)		(39	)
Cash payments received		(4,672	)		(2,154	)		(6,826	)
Collateral valuation adjustments		(6,760	)		118			(6,642	)
Loan collateral in process of foreclosure – June 30, 2024	$	1,441		$	7,918		$	9,359

Three Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – March 31, 2023	$	1,461		$	19,006		$	20,467
Transfer from loans, net		3,991			159			4,150
Sales		(2,583	)		(553	)		(3,136	)
Cash payments received		(128	)		(2,517	)		(2,645	)
Collateral valuation adjustments		(2,012	)		(21	)		(2,033	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803
Six Months Ended June 30, 2023 (Dollars in thousands)	Recreation			Taxi Medallion			Total
Loan collateral in process of foreclosure – December 31, 2022	$	1,376		$	20,443		$	21,819
Transfer from loans, net		8,348			2,306			10,654
Sales		(4,778	)		(568	)		(5,346	)
Cash payments received		(128	)		(5,834	)		(5,962	)
Collateral valuation adjustments		(4,089	)		(273	)		(4,362	)
Loan collateral in process of foreclosure – June 30, 2023	$	729		$	16,074		$	16,803

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Funds Borrowed (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Outstanding Balances of Funds Borrowed

The following table presents outstanding balances of funds borrowed.

	Payments Due for the Twelve Months Ending June 30,
(Dollars in thousands)	2025		2026		2027		2028		2029		Thereafter		June 30, 2024 (1)		December 31, 2023(1)		Interest Rate (2)
Deposits (3)	$	867,211	$	391,277	$	433,022	$	118,517	$	199,629	$	—	$	2,009,656	$	1,869,439		3.50	%
Retail and privately placed notes		—		31,250		—		53,750		39,000		17,500		141,500		139,500		8.10
SBA debentures and borrowings		12,500		15,500		4,500		—		2,500		37,750		72,750		75,250		3.54
Trust preferred securities		—		—		—		—		—		33,000		33,000		33,000		7.73
Federal reserve and other borrowings		25,000		—		—		—		—		—		25,000		—		5.50
Total	$	904,711	$	438,027	$	437,522	$	172,267	$	241,129	$	88,250	$	2,281,906	$	2,117,189		3.87	%

(1)Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

(2)Weighted average contractual rate as of June 30, 2024.

(3)Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 2024 and December 31, 2023.

Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits

The following table presents the maturity of the deposit pools, which includes strategic partner reserve deposits, as of June 30, 2024.

(Dollars in thousands)	June 30, 2024
Three months or less	$	237,363
Over three months through six months		151,130
Over six months through one year		478,718
Over one year		1,142,445
Deposits		2,009,656
Strategic partner collateral deposits		1,750
Total deposits	$	2,011,406

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Leases (Tables)

6 Months Ended

Jun. 30, 2024

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 six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2024			2023			2024			2023
Operating lease costs	$	607		$	597		$	1,210		$	1,195
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		698			603			1,355			1,226
Right-of-use asset obtained in exchange for lease liability		(58	)		(56	)		(118	)		(111	)

Schedule of Breakout of Operating Leases

The following table presents the breakout of the operating leases as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	$	7,728		$	8,785
Other current liabilities		2,267			2,472
Operating lease liabilities		6,071			7,019
Total operating lease liabilities		8,338			9,491
Weighted average remaining lease term	4.5 years			4.9 years
Weighted average discount rate		5.56	%		5.47	%

Schedule of Maturities of the Lease Liabilities

At June 30, 2024, maturities of the lease liabilities were as follows:

(Dollars in thousands)
Remainder of 2024	$	1,268
2025		2,546
2026		2,567
2027		1,342
2028		573
Thereafter		1,139
Total lease payments		9,435
Less imputed interest		1,097
Total operating lease liabilities	$	8,338

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of the Company's deferred and other tax assets and liabilities as of June 30, 2024 and December 31, 2023.

(Dollars in thousands)	June 30, 2024			December 31, 2023
Goodwill and other intangibles	$	42,853		$	43,034
Provision for credit losses		(12,844	)		(13,032	)
Net operating loss carryforwards (1)		(3,804	)		(3,802	)
Accrued expenses, compensation, and other assets		(5,433	)		(6,976	)
Unrealized losses on other investments		(1,971	)		(1,877	)
Total deferred tax liability		18,801			17,347
Valuation allowance		3,593			3,860
Deferred tax liability, net	$	22,394		$	21,207

(1)As of June 30, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of June 30, 2024.

Summary of Components of Tax Provision

The following table shows the components of the Company's tax provision for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2024			2023		2024		2023
Current
Federal	$	4,792		$	3,873	$	6,521	$	6,456
State		1,476			1,175		2,119		1,964
Deferred
Federal		(1,916	)		204		1,200		2,450
State		(570	)		220		300		984
Net provision for income taxes	$	3,782		$	5,472	$	10,140	$	11,854

Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision

The following table presents a reconciliation of statutory federal income tax provision to consolidated actual income tax provision reported for the three and six months ended June 30, 2024 and 2023.

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2024		2023		2024		2023
Statutory Federal income tax provision at 21%	$	2,603	$	4,442	$	6,361	$	9,326
State and local income taxes, net of federal income tax benefit		509		869		1,244		1,824
Non-deductible expenses		374		19		2,154		1,076
Other		296		142		381		(372	)
Total income tax provision	$	3,782	$	5,472	$	10,140	$	11,854

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Stock Options and Restricted Stock (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the first and second quarter of 2024 and the 2023 full year.

	Number of Shares				Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2022		857,288		$	4.89 - 7.25		$	7.27
Granted		399,793			7.67 - 9.37			8.34
Cancelled		(12,807	)		4.89 - 8.40			7.24
Vested (1)		(248,898	)		4.89 - 7.68			7.10
Outstanding at December 31, 2023		995,376		$	4.89 - 9.37		$	7.74
Granted		296,178				8.97		8.97
Cancelled		(1,208	)		6.86 - 9.37			8.13
Vested (1)		(400,985	)		4.89 - 8.40			7.69
Outstanding at March 31, 2024 (2)		889,361		$	4.89 - 9.37		$	8.18
Granted		—				—		—
Cancelled		(1,696	)		4.89 - 9.37			7.88
Vested		—				—		—
Outstanding at June 30, 2024 (2)		887,665		$	4.89 - 9.37		$	8.18

(1)The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023.

(2)The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.

Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the first and second quarter of 2024 and the 2023 full year.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2022		1,061,849		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(33,382	)		4.89 - 9.38			6.80
Exercised (1)		(68,945	)		4.89 - 7.25			6.44
Outstanding at December 31, 2023		959,522		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(85	)			4.89		4.89
Exercised (1)		(13,383	)		4.89 - 7.25			6.61
Outstanding at March 31, 2024 (2)		946,054		$	2.14 - 9.38		$	6.51
Granted		—				—		—
Cancelled		(146	)			4.89		4.89
Exercised (1)		(2,867	)		4.89 - 7.25			6.14
Outstanding at June 30, 2024 (2)		943,041		$	2.14 - 9.38		$	6.51
Options exercisable at:
December 31, 2023		697,647			2.14 - 9.38		$	6.51
June 30, 2024 (2)		854,742		$	2.14 - 9.38		$	6.52

(1)The aggregate intrinsic value of exercised options, 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 less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.

(2)The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024.

Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans described above for the 2024 first and second quarter.

	Number of Options				Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2023		261,875		$	4.89 - 7.25		$	6.49
Granted		—				—		—
Cancelled		—				—		—
Vested (1)		(173,430	)		4.89 - 7.25			6.56
Outstanding at March 31, 2024		88,445		$	4.89 - 6.79		$	6.37
Granted		—				—		—
Cancelled		(146	)			4.89		4.89
Vested (1)		—				—		—
Outstanding at June 30, 2024		88,299		$	4.89 - 6.79		$	6.37

(1) The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024.

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Data

The following tables present segment data as of and for the three and six months ended June 30, 2024.

Three Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	47,490		$	17,651		$	3,538		$	190		$	1,835		$	70,704
Total interest expense		10,960			6,106			1,056			25			2,689			20,836
Net interest income (loss)		36,530			11,545			2,482			165			(854	)		49,868
Provision (benefit) for credit losses		15,795			3,279			478			(975	)		—			18,577
Net interest income (loss) after loss provision		20,735			8,266			2,004			1,140			(854	)		31,291
Other income (loss), net		306			3			(14	)		334			470			1,099
Operating expenses		(11,236	)		(5,457	)		(1,437	)		(1,373	)		(492	)		(19,995	)
Net income (loss) before taxes		9,805			2,812			553			101			(876	)		12,395
Income tax (provision) benefit		(3,094	)		(802	)		(72	)		(14	)		200			(3,782	)
Net income (loss) after taxes	$	6,711		$	2,010		$	481		$	87		$	(676	)	$	8,613
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	7,101
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.95	%		1.08	%		1.86	%		4.29	%		(0.61	)%		1.30	%
Return on average stockholders' equity	*			*			*			*			*				8.14
Return on average equity		13.05			7.00			12.09			25.69			(3.88	)		8.25
Interest yield		13.30			9.32			13.08			21.62		NM				11.52
Net interest margin, gross		10.23			6.10			9.18			18.78		NM				8.12
Net interest margin, net of allowance		10.69			6.25			9.57			31.77		NM				8.42
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status (1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio (2)		2.99			1.49			—			(98.90	)	NM				2.20

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2024	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	91,417		$	35,098		$	7,183		$	330		$	3,746		$	137,774
Total interest expense		20,605			11,740			2,154			53			5,437			39,989
Net interest income (loss)		70,812			23,358			5,029			277			(1,691	)		97,785
Provision (benefit) for credit losses		32,825			4,177			694			(1,918	)		—			35,778
Net interest income (loss) after loss provision		37,987			19,181			4,335			2,195			(1,691	)		62,007
Other income, net		556			5			4,188			973			780			6,502
Operating expenses		(19,523	)		(9,571	)		(2,422	)		(2,116	)		(4,588	)		(38,220	)
Net income (loss) before taxes		19,020			9,615			6,101			1,052			(5,499	)		30,289
Income tax (provision) benefit		(6,368	)		(3,219	)		(2,043	)		(352	)		1,842			(10,140	)
Net income (loss) after taxes	$	12,652		$	6,396		$	4,058		$	700		$	(3,657	)	$	20,149
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	17,125
Balance Sheet Data
Total loans	$	1,497,428		$	773,184		$	110,197		$	3,482		$	1,299		$	2,385,590
Total assets		1,451,947			758,840			105,548			7,511			437,030			2,760,876
Total funds borrowed		1,200,977			627,674			87,304			6,213			361,488			2,283,656
Selected Financial Ratios
Return on average assets		1.87	%		1.72	%		7.68	%		14.89	%		(1.69	)%		1.55	%
Return on average stockholders' equity	*			*			*			*			*				9.89
Return on average equity		12.31			11.04			49.32			90.99			(10.64	)		9.70
Interest yield		13.20			9.29			12.97			18.78		NM				11.42
Net interest margin, gross		10.23			6.18			9.08			15.59		NM				8.11
Net interest margin, net of allowance		10.69			6.34			9.45			26.61		NM				8.40
Reserve coverage		4.35			2.38			4.41			40.18		NM				3.76
Delinquency status(1)		0.41			0.17			7.52			—		NM				0.67
Charge-off (recovery) ratio(2)		3.64			1.80			(0.04	)		(100.16	)	NM				2.68

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

The following tables present segment data as of and for the three and six months ended June 30, 2023.

Three Months June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	41,109		$	15,292		$	2,814		$	787		$	1,724		$	61,726
Total interest expense		7,580			4,194			852			46			2,363			15,035
Net interest income (loss)		33,529			11,098			1,962			741			(639	)		46,691
Provision (benefit) for credit losses		10,135			3,739			(113	)		(5,311	)		26			8,476
Net interest income (loss) after loss provision		23,394			7,359			2,075			6,052			(665	)		38,215
Other income, net		—			2			343			1,304			293			1,942
Operating expenses		(8,444	)		(4,388	)		(1,147	)		(743	)		(4,281	)		(19,003	)
Net income (loss) before taxes		14,950			2,973			1,271			6,613			(4,653	)		21,154
Income tax (provision) benefit		(3,867	)		(769	)		(329	)		(1,713	)		1,206			(5,472	)
Net income (loss) after taxes	$	11,083		$	2,204		$	942		$	4,900		$	(3,447	)	$	15,682
Income attributable to the non-controlling interest																	1,512
Total net income attributable to Medallion Financial Corp.																$	14,170
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.59	%		1.28	%		3.76	%		100.63	%		(3.69	)%		2.60	%
Return on average stockholders' equity	*			*			*			*			*				18.24
Return on average equity		22.94			8.19			23.97			641.63			(22.83	)		16.52
Interest yield		13.03			8.79			11.87			83.55		NM				11.21
Net interest margin, gross		10.63			6.38			8.28			78.67		NM				8.48
Net interest margin, net of allowance		11.08			6.53			8.54			166.23		NM				8.77
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status (1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		1.86			1.12			3.80			(525.21	)	NM				0.74

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

Six Months Ended June 30, 2023	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending			Taxi Medallion Lending			Corporate and Other Investments			Consolidated
Total interest income	$	79,008		$	28,941		$	5,515		$	1,097		$	3,007		$	117,568
Total interest expense		13,484			7,473			1,661			113			4,544			27,275
Net interest income (loss)		65,524			21,468			3,854			984			(1,537	)		90,293
Provision (benefit) for credit losses		17,886			6,820			214			(12,395	)		(11	)		12,514
Net interest income (loss) after loss provision		47,638			14,648			3,640			13,379			(1,526	)		77,779
Other income, net		—			3			614			2,923			485			4,025
Operating expenses		(16,247	)		(8,382	)		(1,567	)		(2,770	)		(8,429	)		(37,395	)
Net income (loss) before taxes		31,391			6,269			2,687			13,532			(9,470	)		44,409
Income tax (provision) benefit		(8,380	)		(1,674	)		(718	)		(3,612	)		2,530			(11,854	)
Net income (loss) after taxes	$	23,011		$	4,595		$	1,969		$	9,920		$	(6,940	)	$	32,555
Income attributable to the non-controlling interest																	3,024
Total net income attributable to Medallion Financial Corp.																$	29,531
Balance Sheet Data
Total loans, gross	$	1,331,114		$	728,468		$	92,637		$	3,448		$	1,331		$	2,156,998
Total assets		1,294,925			718,383			99,713			18,724			387,392			2,519,137
Total funds borrowed		1,062,309			589,335			81,801			15,360			317,802			2,066,607
Selected Financial Ratios
Return on average assets		3.84	%		1.39	%		3.94	%		94.20	%		(3.70	)%		2.79	%
Return on average stockholders' equity	*			*			*			*			*				19.45
Return on average equity		24.13			8.76			24.74			590.25			(23.24	)		17.49
Interest yield		12.93			8.66			11.71			28.80		NM				11.01
Net interest margin, gross		10.72			6.43			8.18			25.84		NM				8.45
Net interest margin, net of allowance		11.18			6.57			8.43			73.52		NM				8.75
Reserve coverage		4.07			2.26			2.72			52.76		NM				3.48
Delinquency status(1)		0.39			0.16			0.08			—		NM				0.29
Charge-off (recovery) ratio (2)		2.57			0.97			1.89			(124.01	)	NM				1.51

(1) Loans 90 days or more past due.

(2) Negative balances indicate net recoveries for the period.

(NM) Not meaningful.

(*) Line item is not applicable to segments.

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

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.

	June 30, 2024				December 31, 2023
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash, cash equivalents, and federal funds sold (1)	$	157,961	$	157,961	$	149,845	$	149,845
Equity investments		10,795		10,795		11,430		11,430
Investment securities		55,830		55,830		54,282		54,282
Loans receivable		2,295,802		2,284,754		2,131,651		2,131,651
Accrued interest receivable (2)		13,299		13,299		13,538		13,538
Equity securities (3)		1,722		1,722		1,748		1,748
Financial liabilities
Funds borrowed		2,283,656		2,249,036		2,118,689		2,118,689
Accrued interest payable (2)		7,945		7,945		6,822		6,822

(1)Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2024 and $1.3 million as of December 31, 2023. See Note 13.

(2)Categorized as level 3 within the fair value hierarchy. See Note 13.

(3)Included within other assets on the balance sheet.

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Fair Value of Assets and liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

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 June 30, 2024 and December 31, 2023.

June 30, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Investment securities		—		55,830		—		55,830
Equity securities		1,722		—		—		1,722
Total (1)	$	1,722	$	57,080	$	—	$	58,802

(1)Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2024 related to these assets.

December 31, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Investment securities		—		54,282		—		54,282
Equity securities		1,748		—		—		1,748
Total (1)	$	1,748	$	55,532	$	—	$	57,280

(1)Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.

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 June 30, 2024 and December 31, 2023.

June, 2024 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	10,795	$	10,795
Nonaccrual loans		—		—		22,248		22,248
Loan collateral in process of foreclosure		—		—		9,359		9,359
Total	$	—	$	—	$	42,402	$	42,402

December 31, 2023 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	11,430	$	11,430
Nonaccrual loans		—		—		25,974		25,974
Loan collateral in process of foreclosure		—		—		11,772		11,772
Total	$	—	$	—	$	49,176	$	49,176

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

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of June 30, 2024 and December 31, 2023.

(Dollars in thousands except per share amounts)	Fair Value at June 30, 2024		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	10,522	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Nonaccrual loans		22,248	Market approach	Historical and actual loss experience	0.00% - 23.06%
				Transfer prices (2)	$0.0 - 79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		9,359	Market approach	Transfer prices (2)	$0.0 - 79.5
				Collateral value (3)	$2.5 - $51.3

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation loan portfolio.

(Dollars in thousands except per share amounts)	Fair Value at December 31, 2023		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	11,157	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Nonaccrual loans		25,974	Market approach	Historical and actual loss experience	0.00% - 28.48%
				Transfer prices (2)	$0.0 - $79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		11,772	Market approach	Transfer prices (2)	$0.0 - $79.5
				Collateral value (3)	$2.3 - $45.0

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation loan portfolio.

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Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail) $ in Millions	Jun. 30, 2024 USD ($)
Medallion Financing Trust I [Member]
Subsidiary or Equity Method Investee [Line Items]
Aggregate assets of trust	$ 34.0

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)		3 Months Ended			6 Months Ended		12 Months Ended
	Jan. 01, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest-bearing funds deposited in other banks		$ 1,300,000			$ 1,300,000
Non-marketable securities		10,800,000			10,800,000		$ 11,400,000
Unrealized appreciation		4,700,000			4,700,000
Impact of equity investment		4,300,000			4,300,000
Past Due		69,714,000			69,714,000		81,013,000
Notes receivable net		2,340,968,000			2,340,968,000		2,176,412,000
Purchased of equity securities with readily determinable fair value								$ 2,000,000
Investment, Type [Extensible Enumeration]								us-gaap:EquitySecuritiesMember
Equity securities, fair value		1,700,000			1,700,000		1,700,000
Net loan origination costs					44,600,000		40,000,000
Net Amortization to income		2,300,000		$ 2,400,000	4,300,000	$ 4,300,000
Principal portion of loans serviced, fair value		$ 14,000,000			$ 14,000,000		14,000,000
Intangible assets useful life		20 years			20 years
Goodwill		$ 150,803,000			$ 150,803,000		150,803,000
Intangible assets, net		19,869,000			19,869,000		20,591,000
Amortization of intangible assets		362,000		363,000	723,000	723,000
Depreciation and amortization		100,000		100,000	200,000	200,000
Amortization expense		900,000		800,000	1,800,000	$ 1,500,000
Deferred costs		8,600,000			$ 8,600,000		$ 8,500,000
Potential dilutive common shares excluded from EPS computation					101,350	644,478
Stock based compensation award, Amount		$ 1,600,000		$ 1,200,000	$ 3,100,000	$ 2,200,000
Stock based compensation award per common share		$ 0.07		$ 0.05	$ 0.13	$ 0.1
Unrecognized compensation cost related to unvested stock options, restricted stock, restricted stock units, and performance share units		$ 8,400,000			$ 8,400,000
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period					11 months
Tier 1 leverage capital to total assets ratio		15.00%			15.00%
Tier 1 leverage capital ratio		16.10%			16.10%
Capital conversation buffer					2.50%		2.50%
New York Taxi Medallion [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Notes receivable net		$ 79,500			$ 79,500
Consumer Loan [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in allowance for credit losses on loans	$ 13,700,000
Commercial Loans [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Financing receivable allowance for credit loss	$ 9,900,000
Restricted Shares [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award		0	296,178		296,178	316,483	399,793
Restricted Stock Units [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award					92,350	0
Performance Shares [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award		215,687			215,687		296,444
Stock based compensation award					215,687	296,444
Medallion Bank [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of intangible assets							$ 0
90+ [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Past Due		$ 15,639,000			$ 15,639,000		16,837,000
90+ [Member] | Loans [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Past Due		$ 15,600,000			$ 15,600,000		$ 16,800,000
Total loans more than 90 days past due ,percentage		0.67%			0.67%		0.77%
Bank Holding Company Accounting [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net premium on investment securities					$ 100,000		$ 100,000
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest bearing loan term					5 years
Estimated useful life of fixed assets		3 years			3 years
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest bearing loan term					6 years
Investment securities Amortized to interest income		$ 100,000		$ 100,000	$ 100,000	$ 100,000
Estimated useful life of fixed assets		10 years			10 years

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Summary of Significant Accounting Policies - Summary of Unrealized Portion Related to Equity Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Net gains (losses) recognized during the period on equity securities	$ (7)	$ (28)	$ (26)	$ 0
Less: Net gains (losses) recognized during the period on equity securities sold during the period	0	0	0	0
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$ (7)	$ (28)	$ (26)	$ 0

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Summary of Significant Accounting Policies - Summary of Finalized Adoption Related to Allowance for Credit Losses on Loans (Detail) - USD ($) $ in Thousands	Jan. 01, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans		$ 63,845
Recreation [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans		41,966
Home Improvement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans		11,340
Commercial [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans		1,049
Taxi Medallion [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans		9,490
Strategic Partnership [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans		$ 0
Effect of ASC 326 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	$ 13,712
Effect of ASC 326 Adoption | Recreation [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	10,037
Effect of ASC 326 Adoption | Home Improvement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	1,518
Effect of ASC 326 Adoption | Commercial [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	2,157
Effect of ASC 326 Adoption | Taxi Medallion [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	0
Effect of ASC 326 Adoption | Strategic Partnership [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	0
December 31, 2022 Pre-Topic 326 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	77,557
December 31, 2022 Pre-Topic 326 Adoption | Recreation [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	52,003
December 31, 2022 Pre-Topic 326 Adoption | Home Improvement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	12,858
December 31, 2022 Pre-Topic 326 Adoption | Commercial [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	3,206
December 31, 2022 Pre-Topic 326 Adoption | Taxi Medallion [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	9,490
December 31, 2022 Pre-Topic 326 Adoption | Strategic Partnership [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses on loans	$ 0

XML

Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investments In Loans [Line Items]
Intangibles assets	$ 19,869	$ 20,591
Intellectual Property [Member]
Investments In Loans [Line Items]
Intangibles assets	15,125	15,675
Contractor Relationships [Member]
Investments In Loans [Line Items]
Intangibles assets	$ 4,744	$ 4,916

XML

Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Net income attributable to common stockholders	$ 7,101	$ 14,170	$ 17,125	$ 29,531
Weighted average common shares outstanding applicable to basic EPS	22,598,102	22,488,463	22,619,743	22,416,089
Effect of restricted stock grants	404,499	276,420	507,416	379,924
Effect of dilutive stock options	163,340	43,567	209,067	96,342
Effect of performance stock unit grants	287,221	45,477	272,878	22,739
Adjusted weighted average common shares outstanding applicable to diluted EPS	23,453,162	22,853,927	23,609,104	22,915,094
Basic net income per share	$ 0.31	$ 0.63	$ 0.76	$ 1.32
Diluted net income per share	$ 0.3	$ 0.62	$ 0.73	$ 1.29

XML

Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Accounting Policies [Abstract]
Regulatory, Minimum, Leverage ratio	[1]	0.04
Regulatory, Minimum, Common equity tier 1 capital ratio	[2]	7.00%
Regulatory, Minimum, Tier 1 capital ratio	[3]	8.50%
Regulatory, Minimum, Total capital ratio	[3]	0.105
Regulatory, Well-Capitalized, Leverage ratio	[1]	0.05
Regulatory, Well-Capitalized, Common equity tier 1 capital ratio	[2]	6.50%
Regulatory, Well-Capitalized, Tier 1 capital ratio	[3]	0.08
Regulatory, Well-Capitalized, Total capital ratio	[3]	0.10
Common equity Tier 1 capital		$ 306,186	$ 293,774
Tier 1 capital		374,974	362,561
Total capital		404,742	390,153
Average assets		2,322,625	2,232,816
Risk-weighted assets		$ 2,326,972	$ 2,155,641
Leverage ratio	[1]	0.161	0.162
Common equity Tier 1 capital ratio	[2]	0.132	0.136
Tier 1 capital ratio	[3]	0.161	0.168
Total capital ratio	[3]	0.174	0.181

[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.

XML

Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 62,189	$ 60,573
Gross Unrealized Gains	54	21
Gross Unrealized Losses	(6,413)	(6,312)
Fair Value	55,830	54,282
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	43,255	44,653
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(4,763)	(4,791)
Fair Value	38,494	39,862
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	16,751	13,733
Gross Unrealized Gains	52	21
Gross Unrealized Losses	(1,620)	(1,501)
Fair Value	15,183	12,253
Agency Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,183	2,187
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(30)	(20)
Fair Value	$ 2,153	$ 2,167

XML

Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Available-for-sale Securities, Debt Maturities [Abstract]
Amortized Cost, due in one year or less	$ 2,039
Amortized Cost, due after one year through five years	5,820
Amortized Cost, due after five years through ten years	8,380
Amortized Cost, due after ten years	45,950
Amortized Cost	62,189	$ 60,573
Fair Value, due in one year or less	1,996
Fair Value, due after one year through five years	5,608
Fair Value, due after five years through ten years	7,370
Fair Value, due after ten years	40,856
Fair Value	$ 55,830	$ 54,282

XML

Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	$ (100)	$ (282)
Fair Value, Less than Twelve Months	5,118	10,636
Gross Unrealized Losses, Twelve Months and Over	(6,313)	(6,030)
Fair Value, Twelve Months and Over	48,182	43,509
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	(30)	(78)
Fair Value, Less than Twelve Months	1,988	5,797
Gross Unrealized Losses, Twelve Months and Over	(4,733)	(4,714)
Fair Value, Twelve Months and Over	36,024	33,971
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	(70)	(204)
Fair Value, Less than Twelve Months	3,130	4,839
Gross Unrealized Losses, Twelve Months and Over	(1,550)	(1,296)
Fair Value, Twelve Months and Over	10,005	7,371
Agency Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	0	0
Fair Value, Less than Twelve Months	0	0
Gross Unrealized Losses, Twelve Months and Over	(30)	(20)
Fair Value, Twelve Months and Over	$ 2,153	$ 2,167

XML

Investment Securities - Additional Information (Detail) - Securities	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Abstract]
Number of Securities	60	60

XML

Loans and Allowance for Credit Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024		Dec. 31, 2023		Mar. 31, 2024		Jun. 30, 2023		Mar. 31, 2023		Dec. 31, 2022
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 2,385,590		$ 2,215,886				$ 2,156,998
Allowance for credit losses	(89,788)	[1]	(84,235)	[2]	$ (83,827)	[2]	(74,971)	[1]	$ (70,280)	[2]	$ (63,845)	[2]
Net loans receivable	2,295,802		2,131,651
Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	2,385,590		2,215,886		2,228,426		2,156,998		1,984,180		1,916,953
Allowance for credit losses	89,788		84,235
Net loans receivable	$ 2,295,802		$ 2,131,651
Percentage of total gross loans	100.00%		100.00%
Recreation [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 1,497,428		$ 1,336,226
Allowance for credit losses	(65,140)		(57,532)
Recreation [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 1,497,428		$ 1,336,226		1,365,165		1,331,114		1,213,380		1,183,512
Percentage of total gross loans	63.00%		60.00%
Home Improvement [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 773,184		$ 760,617
Allowance for credit losses	(18,388)		(21,019)
Home Improvement [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 773,184		$ 760,617		752,262		728,468		669,642		626,399
Percentage of total gross loans	32.00%		34.00%
Commercial [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 110,197		$ 114,827
Allowance for credit losses	(4,861)		(4,148)
Commercial [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 110,197		$ 114,827		106,570		92,637		95,329		92,899
Percentage of total gross loans	5.00%		5.00%
Taxi Medallion [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 3,482		$ 3,663
Allowance for credit losses	(1,399)		(1,536)
Taxi Medallion [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	3,482		3,663		3,560		3,448		4,059
Strategic Partnership [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	1,299		553
Strategic Partnership [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	$ 1,299		$ 553		$ 869		$ 1,331		$ 1,770		$ 572

[1] As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

[2] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

XML

Loans and Allowance for Credit Losses - Schedule of Activity of Gross Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			$ 2,215,886
Charge-offs	$ (18,690)	$ (12,862)	(41,689)	$ (30,959)
Transfer to loan collateral in process of foreclosure, net	(5,669)	(4,150)	(11,094)	(10,654)
Amortization of origination fees, net			(4,298)	(4,667)
Paid-in-kind interest			1,263	644
Gross loans, ending balance	2,385,590	2,156,998	2,385,590	2,156,998
Recreation [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			1,336,226
Charge-offs	(14,627)	(9,166)	(32,728)	(21,756)
Transfer to loan collateral in process of foreclosure, net	(5,669)	(3,991)	(11,094)	(8,348)
Gross loans, ending balance	1,497,428		1,497,428
Home Improvement [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			760,617
Charge-offs	(4,063)	(2,575)	(8,961)	(4,489)
Gross loans, ending balance	773,184		773,184
Commercial [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			114,827
Charge-offs	0	(900)	0	(900)
Gross loans, ending balance	110,197		110,197
Taxi Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			3,663
Charge-offs	0	(221)	0	(3,814)
Transfer to loan collateral in process of foreclosure, net	0	(159)	0	(2,306)
Gross loans, ending balance	3,482		3,482
Strategic Partnership [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			553
Gross loans, ending balance	1,299		1,299
Bank Holding Company Accounting [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	2,228,426	1,984,180	2,215,886	1,916,953
Loan originations	309,091	346,266	482,178	573,557
Principal receipts, sales, and maturities	(132,192)	(160,879)	(265,550)	(297,988)
Charge-offs	(18,690)	(12,862)	(41,689)	(30,959)
Transfer to loan collateral in process of foreclosure, net	(5,669)	(4,150)	(11,094)	(10,654)
Amortization of origination fees, net	(2,291)	(2,494)	(4,298)	(4,667)
Origination costs, net	6,260	6,557	8,894	10,112
Paid-in-kind interest	655	380	1,263	644
Gross loans, ending balance	2,385,590	2,156,998	2,385,590	2,156,998
Bank Holding Company Accounting [Member] | Recreation [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	1,365,165	1,213,380	1,336,226	1,183,512
Loan originations	209,563	190,007	315,328	291,688
Principal receipts, sales, and maturities	(61,553)	(63,463)	(115,589)	(119,680)
Charge-offs	(14,627)	(9,166)	(32,728)	(21,756)
Transfer to loan collateral in process of foreclosure, net	(5,669)	(3,991)	(11,094)	(8,348)
Amortization of origination fees, net	(3,214)	(3,159)	(6,166)	(5,918)
Origination costs, net	7,763	7,506	11,451	11,616
Paid-in-kind interest	0	0	0	0
Gross loans, ending balance	1,497,428	1,331,114	1,497,428	1,331,114
Bank Holding Company Accounting [Member] | Home Improvement [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	752,262	669,642	760,617	626,399
Loan originations	67,990	117,035	119,566	212,016
Principal receipts, sales, and maturities	(42,492)	(55,350)	(97,409)	(105,205)
Charge-offs	(4,063)	(2,575)	(8,961)	(4,489)
Transfer to loan collateral in process of foreclosure, net	0	0	0	0
Amortization of origination fees, net	913	665	1,851	1,251
Origination costs, net	(1,426)	(949)	(2,480)	(1,504)
Paid-in-kind interest	0	0	0	0
Gross loans, ending balance	773,184	728,468	773,184	728,468
Bank Holding Company Accounting [Member] | Commercial [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	106,570	95,329	114,827	92,899
Loan originations	7,000	4,750	7,000	7,750
Principal receipts, sales, and maturities	(3,961)	(6,922)	(12,833)	(7,756)
Charge-offs	0	(900)	0	(900)
Transfer to loan collateral in process of foreclosure, net	0	0	0	0
Amortization of origination fees, net	10	0	17	0
Origination costs, net	(77)	0	(77)	0
Paid-in-kind interest	655	380	1,263	644
Gross loans, ending balance	110,197	92,637	110,197	92,637
Bank Holding Company Accounting [Member] | Taxi Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	3,560	4,059	3,663
Loan originations	250	1,300
Principal receipts, sales, and maturities	(328)	(1,531)
Charge-offs	0	(221)
Transfer to loan collateral in process of foreclosure, net	0	(159)
Amortization of origination fees, net	0	0
Origination costs, net	0	0
Paid-in-kind interest	0	0
Gross loans, ending balance	3,482	3,448	3,482	3,448
Bank Holding Company Accounting [Member] | Medallion [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance			3,663	13,571
Loan originations			250	1,923
Principal receipts, sales, and maturities			(431)	(5,926)
Charge-offs			0	(3,814)
Transfer to loan collateral in process of foreclosure, net			0	(2,306)
Amortization of origination fees, net			0
Origination costs, net			0
Paid-in-kind interest			0	0
Gross loans, ending balance	3,482	3,448	3,482	3,448
Bank Holding Company Accounting [Member] | Strategic Partnership [Member]
Schedule Of Gross Real Estate And Loan Activity [Line Items]
Gross loans, beginning balance	869	1,770	553	572
Loan originations	24,288	33,174	40,034	60,180
Principal receipts, sales, and maturities	(23,858)	(33,613)	(39,288)	(59,421)
Charge-offs	0	0	0	0
Transfer to loan collateral in process of foreclosure, net	0	0	0	0
Amortization of origination fees, net	0	0	0	0
Origination costs, net	0	0	0	0
Paid-in-kind interest	0	0	0	0
Gross loans, ending balance	$ 1,299	$ 1,331	$ 1,299	$ 1,331

XML

Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses - beginning balance	[1]	$ 83,827	$ 70,280	$ 84,235	$ 63,845
Charge-offs		(18,690)	(12,862)	(41,689)	(30,959)
Total recoveries		6,074	9,077	11,464	15,859
Net charge-offs	[2]	(12,616)	(3,785)	(30,225)	(15,100)
Provision for credit losses		18,577	8,476	35,778	12,514
Allowance for credit losses - ending balance	[3]	89,788	74,971	89,788	74,971
Accounting Standards Update 2016-13 [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses - beginning balance		0	0	0	13,712
Recreation [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses - beginning balance				57,532
Charge-offs		(14,627)	(9,166)	(32,728)	(21,756)
Total recoveries		3,962	3,282	7,510	6,053
Allowance for credit losses - ending balance		65,140		65,140
Home Improvement [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses - beginning balance				21,019
Charge-offs		(4,063)	(2,575)	(8,961)	(4,489)
Total recoveries		1,243	627	2,154	1,259
Allowance for credit losses - ending balance		18,388		18,388
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses - beginning balance				4,148
Charge-offs		0	(900)	0	(900)
Total recoveries		0	0	20	10
Allowance for credit losses - ending balance		4,861		4,861
Taxi Medallion [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses - beginning balance				1,536
Charge-offs		0	(221)	0	(3,814)
Total recoveries		869	$ 5,168	1,780	$ 8,537
Allowance for credit losses - ending balance		$ 1,399		$ 1,399

[1] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

[2] As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.

[3] As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

XML

Loans and Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2024		Jun. 30, 2023	Jun. 30, 2024		Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	[1]	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loan collateral process of foreclosure		$ 9,359	[1]	$ 16,803	$ 9,359	[1]	$ 16,803	$ 10,198	$ 11,772		$ 20,467	$ 21,819
Net charge-offs	[2]	(12,616)		$ (3,785)	(30,225)		(15,100)
Strategic Partnership [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Net charge-offs					0		$ 0
Medallion Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loan collateral process of foreclosure		173,300			173,300
New York Taxi Medallion [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loan collateral process of foreclosure		$ 106,000			$ 106,000

[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.

[2] As of June 30, 2024, cumulative net charge-offs of loans and loan collateral in process of foreclosure in the taxi medallion loan portfolio were $173.3 million, including $106.0 million related to loans secured by New York City taxi medallions, some of which may represent collection opportunities for the Company.

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Loans and Allowance for Credit Losses - Summary of Gross Charge Offs (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Past Due [Line Items]
2024	$ 139	$ 83	$ 139	$ 83
2023	5,607	5,116	10,894	9,628
2022	6,643	2,817	15,141	6,515
2021	2,497	943	7,157	2,757
2020	1,105	1,909	2,681	3,594
Prior	2,699	1,994	5,677	8,382
Total	18,690	12,862	41,689	30,959
Recreation [Member]
Financing Receivable, Past Due [Line Items]
2024	99	44	99	44
2023	4,099	3,568	7,862	7,176
2022	5,049	2,344	11,867	5,414
2021	1,990	785	5,487	2,456
2020	986	918	2,275	2,472
Prior	2,404	1,507	5,138	4,194
Total	14,627	9,166	32,728	21,756
Home Improvement [Member]
Financing Receivable, Past Due [Line Items]
2024	40	39	40	39
2023	1,508	1,548	3,032	2,452
2022	1,594	473	3,274	1,101
2021	507	158	1,670	301
2020	119	91	406	222
Prior	295	266	539	374
Total	4,063	2,575	8,961	4,489
Commercial Loan [Member]
Financing Receivable, Past Due [Line Items]
2024	0	0	0	0
2023	0	0	0
2022	0	0	0	0
2021	0	0	0	0
2020	0	900	0	900
Prior	0	0	0	0
Total	0	900	0	900
Taxi Medallion [Member]
Financing Receivable, Past Due [Line Items]
2024	0	0	0	0
2023	0	0	0	0
2022	0	0	0	0
2021	0	0	0	0
2020	0	0	0	0
Prior	0	221	0	3,814
Total	$ 0	$ 221	$ 0	$ 3,814

XML

Loans and Allowance for Credit Losses - Summary of Allowance for Loan Losses by Type (Detail) - USD ($) $ in Thousands	Jun. 30, 2024		Mar. 31, 2024	[2]	Dec. 31, 2023		Jun. 30, 2023	[1]	Mar. 31, 2023	[2]	Dec. 31, 2022	[2]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount	$ 89,788	[1]	$ 83,827		$ 84,235	[2]	$ 74,971		$ 70,280		$ 63,845
Percentage of Allowance	100.00%				100.00%
Allowance as a Percent of Loan Category	3.76%				3.80%
Allowance as a Percent of Nonaccrual	403.58%				324.31%
Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount	$ 65,140				$ 57,532
Percentage of Allowance	73.00%				68.00%
Allowance as a Percent of Loan Category	4.35%				4.31%
Allowance as a Percent of Nonaccrual	292.79%				221.50%
Home Improvement [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount	$ 18,388				$ 21,019
Percentage of Allowance	20.00%				25.00%
Allowance as a Percent of Loan Category	2.38%				2.76%
Allowance as a Percent of Nonaccrual	82.65%				80.92%
Commercial [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount	$ 4,861				$ 4,148
Percentage of Allowance	5.00%				5.00%
Allowance as a Percent of Loan Category	4.41%				3.61%
Allowance as a Percent of Nonaccrual	21.85%				15.97%
Taxi Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Amount	$ 1,399				$ 1,536
Percentage of Allowance	2.00%				2.00%
Allowance as a Percent of Loan Category	40.18%				41.93%
Allowance as a Percent of Nonaccrual	6.29%				5.91%

[1] As of June 30, 2024 and June 30, 2023, there were no allowance for credit losses and net charge-offs related to the strategic partnership loans.

[2] 2023 beginning balance represents allowance prior to the adoption of ASU 2016-13.

XML

Loans and Allowance for Credit Losses - Summary of Summary of Total Nonaccrual Loans and Foregone Interest (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Total nonaccrual loans	$ 22,248	$ 25,974
Interest foregone quarter to date	464	417
Amount of foregone interest applied to principal in the quarter	72	59
Interest foregone year to date	662	928
Amount of foregone interest applied to principal for the year	133	238
Interest foregone life-to-date	3,162	2,119
Amount of foregone interest applied to principal life-to-date	$ 814	$ 822
Percentage of nonaccrual loans to gross loan portfolio	0.90%	1.20%
Percentage of allowance for credit losses to nonaccrual loans	403.60%	324.30%

XML

Loans and Allowance for Credit Losses - Summary of Performance Status of Loan (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 2,385,590	$ 2,215,886	$ 2,156,998
Percentage of Nonperforming to Total	0.93%	1.17%
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 2,363,342	$ 2,189,912
Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	22,248	25,974
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,497,428	$ 1,336,226
Percentage of Nonperforming to Total	0.43%	0.72%
Recreation [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,490,965	$ 1,326,567
Recreation [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	6,463	9,659
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 773,184	$ 760,617
Percentage of Nonperforming to Total	0.17%	0.20%
Home Improvement [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 771,881	$ 759,128
Home Improvement [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	1,303	1,489
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 110,197	$ 114,827
Percentage of Nonperforming to Total	9.98%	9.72%
Commercial [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 99,197	$ 103,664
Commercial [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	11,000	11,163
Taxi Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 3,482	$ 3,663
Percentage of Nonperforming to Total	100.00%	100.00%
Taxi Medallion [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 0	$ 0
Taxi Medallion [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	3,482	3,663
Strategic Partnership [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,299	$ 553
Percentage of Nonperforming to Total	0.00%	0.00%
Strategic Partnership [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,299	$ 553
Strategic Partnership [Member] | Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	$ 69,714	$ 81,013
Total	2,340,968	2,176,412
Accruing	0	0
Financial Asset, Not Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	2,271,254	2,095,399
30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	38,804	44,419
60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	15,271	19,757
90+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	15,639	16,837
Recreation [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	54,310	64,416
Total	1,448,509	1,292,591
Accruing	0	0
Recreation [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	1,394,199	1,228,175
Recreation [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	35,094	40,282
Recreation [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	13,278	15,039
Recreation [Member] | 90+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	5,938	9,095
Home Improvement [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	6,935	8,000
Total	777,266	764,069
Accruing	0	0
Home Improvement [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	770,331	756,069
Home Improvement [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	3,637	3,936
Home Improvement [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	1,993	2,562
Home Improvement [Member] | 90+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	1,305	1,502
Commercial Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	8,396	8,396
Total	110,412	115,536
Accruing	0	0
Commercial Loans [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	102,016	107,140
Commercial Loans [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	0
Commercial Loans [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	2,156
Commercial Loans [Member] | 90+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	8,396	6,240
Taxi Medallion [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	73	201
Total	3,482	3,663
Accruing	0	0
Taxi Medallion [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	3,409	3,462
Taxi Medallion [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	73	201
Taxi Medallion [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	0
Taxi Medallion [Member] | 90+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	0
Strategic Partnership [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	0
Total	1,299	553
Accruing	0	0
Strategic Partnership [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	1,299	553
Strategic Partnership [Member] | 30-59 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	0
Strategic Partnership [Member] | 60-89 [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	0	0
Strategic Partnership [Member] | 90+ [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Past Due	$ 0	$ 0

XML

Loans and Allowance for Credit Losses - Summary of Aging of Loans (Parenthetical) (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Capitalized loan origination costs	$ 44.6	$ 40.0

XML

Loans and Allowance for Credit Losses - Additional Information (Detail)	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Weighted average loan-to-value ratio	174.00%	183.00%

XML

Loans and Allowance for Credit Losses - Summary of Activities of the Loan Collateral in Process of Foreclosure Related to Recreation and Medallion Loans (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024		Jun. 30, 2023	Jun. 30, 2024		Jun. 30, 2023
Loans and Leases Receivable Disclosure [Line Items]
Loans collateral in process of foreclosure - beginning balance	$ 10,198		$ 20,467	$ 11,772	[1]	$ 21,819
Transfer from loans, net	5,669		4,150	11,094		10,654
Sales	0		(3,136)	(39)		(5,346)
Cash payments received	(3,106)		(2,645)	(6,826)		(5,962)
Collateral valuation adjustments	(3,402)		(2,033)	(6,642)		(4,362)
Loans collateral in process of foreclosure - ending balance	9,359	[1]	16,803	9,359	[1]	16,803
Recreation [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans collateral in process of foreclosure - beginning balance	1,475		1,461	1,779		1,376
Transfer from loans, net	5,669		3,991	11,094		8,348
Sales	0		(2,583)	0		(4,778)
Cash payments received	(2,225)		(128)	(4,672)		(128)
Collateral valuation adjustments	(3,478)		(2,012)	(6,760)		(4,089)
Loans collateral in process of foreclosure - ending balance	1,441		729	1,441		729
Taxi Medallion [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans collateral in process of foreclosure - beginning balance	8,723		19,006	9,993		20,443
Transfer from loans, net	0		159	0		2,306
Sales	0		(553)	(39)		(568)
Cash payments received	(881)		(2,517)	(2,154)		(5,834)
Collateral valuation adjustments	76		(21)	118		(273)
Loans collateral in process of foreclosure - ending balance	$ 7,918		$ 16,074	$ 7,918		$ 16,074

[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.

XML

Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
2025		$ 904,711
2026		438,027
2027		437,522
2028		172,267
2029		241,129
Thereafter		88,250
Long term debt	[1]	$ 2,281,906	$ 2,117,189
Interest Rate	[2]	3.87%
Deposits [Member]
Debt Instrument [Line Items]
2025	[3]	$ 867,211
2026	[3]	391,277
2027	[3]	433,022
2028	[3]	118,517
2029	[3]	199,629
Thereafter	[3]	0
Long term debt	[1],[3]	$ 2,009,656	1,869,439
Interest Rate	[2],[3]	3.50%
Retail And Privately Placed Notes [Member]
Debt Instrument [Line Items]
2025		$ 0
2026		31,250
2027		0
2028		53,750
2029		39,000
Thereafter		17,500
Long term debt	[1]	$ 141,500	139,500
Interest Rate	[2]	8.10%
SBA debentures and borrowings
Debt Instrument [Line Items]
2025		$ 12,500
2026		15,500
2027		4,500
2028		0
2029		2,500
Thereafter		37,750
Long term debt	[1]	$ 72,750	75,250
Interest Rate	[2]	3.54%
Trust Preferred Securities [Member]
Debt Instrument [Line Items]
2025		$ 0
2026		0
2027		0
2028		0
2029		0
Thereafter		33,000
Long term debt	[1]	$ 33,000	33,000
Interest Rate	[2]	7.73%
Federal Reserve and Other Borrowings [Member]
Debt Instrument [Line Items]
2025		$ 25,000
2026		0
2027		0
2028		0
2029		0
Thereafter		0
Long term debt	[1]	$ 25,000	$ 0
Interest Rate	[2]	5.50%

[1] Excludes deferred financing costs of $8.6 million and $8.5 million as of June 30, 2024 and December 31, 2023.

[2] Weighted average contractual rate as of June 30, 2024.

[3] Balance excludes $1.8 million and $1.5 million of strategic partner reserve deposits as of June 30, 2024 and December 31, 2023.

XML

Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Deferred costs	$ 8.6	$ 8.5
Reserve deposits	$ 1.8	$ 1.5

XML

Funds Borrowed - Additional Information (Detail) - USD ($) $ in Thousands								1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
		Feb. 28, 2024	Sep. 30, 2023	Jul. 10, 2023	Feb. 28, 2021	Dec. 31, 2007	Jun. 30, 2007	Jan. 31, 2024	Dec. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2019	Apr. 30, 2021	Mar. 15, 2021	Aug. 31, 2019	Mar. 31, 2019	Dec. 31, 2017	Mar. 01, 2017
Debt Instrument [Line Items]
Time deposits										$ 2,011,406		$ 2,011,406
Listing services deposits from other financial institutions.										16,100		16,100		$ 11,800
Retail savings deposit balance										10,900		10,900		$ 14,900
Aggregate principal amount																		$ 6,000
Maturity date			Sep. 30, 2028		Feb. 28, 2026
Principal amount outstanding repaid												3,000
Gain loss on sales of loans net										$ 242	$ 1,306	$ 830	$ 3,161
Issue of common stock										29,262,204		29,262,204		29,051,800
Preferred securities repurchased from a third party investor						$ 2,000
Long-term debt	[1]									$ 230,803		$ 230,803		$ 235,544
Investment securities pledged										55,830		55,830		$ 54,282
Medallion Capital, Inc.
Debt Instrument [Line Items]
Debt instrument face amount		$ 18,500		$ 20,000
Long-term debt		18,500								2,200		2,200
Debt instrument leverage fee		200		200
Debt instrument, additional leverage fee		400		$ 400
Line Of Credit Facility Drawn Amount										9,800		9,800
Line Of Credit Facility Drawable Amount										8,000		8,000
Long term debt under capital infusion		$ 9,300								1,100		$ 1,100
Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Maturity date												Sep. 30, 2037
Sale of preferred securities							$ 35,000
Issue of common stock							1,083
Preferred securities outstanding										$ 33,000		$ 33,000
Trust Preferred Securities [Member] | SOFR Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate												2.13%
Description of variable rate basis												26 basis points
Trust Preferred Securities [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Aggregate principal amount of unsecured junior subordinated notes							$ 36,100
SBA debentures and borrowings
Debt Instrument [Line Items]
Debt instrument interest rate Percentage										3.25%		3.25%
Loan commitment term												4 years 6 months
Commitment fee percentage												1.00%
Principal amount of loan																				$ 34,000	$ 34,000
Extended maturity date												Apr. 30, 2024
Freshstart Venture Capital Corp [Member]
Debt Instrument [Line Items]
Principal amount of loan																				$ 33,500
Other Borrowings [Member]
Debt Instrument [Line Items]
Line of credit facility, amount outstanding										$ 0		$ 0
Federal reserve discount window and other borrowings [Member]
Debt Instrument [Line Items]
Borrowings										25,000		25,000
Home improvement loans pledged										99,200		$ 99,200
Pledged securities advance rate of book value												40.00%
Borrowing capacity										40,100		$ 40,100
Commercial Banks [Member]
Debt Instrument [Line Items]
Line of credit outstanding												0
Borrowing capacity										75,000		$ 75,000
7.25% Unsecured Senior Notes Due February Two Thousand And Twenty Six [Member]
Debt Instrument [Line Items]
Aggregate principal amount																$ 3,000	$ 3,300
7.50% Percentage Unsecured Senior Notes Due December Two Thousand And Twenty Seven [Member]
Debt Instrument [Line Items]
Aggregate principal amount																$ 11,700
Privately Placed Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 39,000		$ 25,000				$ 33,600								$ 8,500		$ 30,000
Debt instrument interest rate Percentage			9.25%		7.25%				7.50%										8.25%
Maturity date												2024		2024
Maturity date									Dec. 31, 2027
Repurchase amount			$ 33,000																$ 33,000
Gain loss on sales of loans net															$ 4,100
Revolving Credit Facility [Member] | Other Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage								2.75%
Commitment fee percentage								0.10%
Borrowing capacity								$ 7,500
Maximum [Member]
Debt Instrument [Line Items]
Extended maturity date												Jun. 30, 2039
Maximum [Member] | Privately Placed Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount										$ 17,500		$ 17,500
Debt instrument interest rate Percentage										9.00%		9.00%
Minimum [Member]
Debt Instrument [Line Items]
Time deposits										$ 250,000		$ 250,000
Extended maturity date												Dec. 31, 2033
Minimum [Member] | Privately Placed Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount										$ 12,500		$ 12,500
Debt instrument interest rate Percentage										8.875%		8.875%
Brokerage [Member] | Maximum [Member]
Debt Instrument [Line Items]
Average brokerage fee percentage in relation to the maturity of deposits												0.15%

[1] Includes $4.0 million and $4.2 million of deferred financing costs as of June 30, 2024 and December 31, 2023. Refer to Note 5 for more details.

XML

Funds Borrowed - Summary of Maturity of Broker Pools, Excluding Strategic Partner Reserve Deposits (Detail) $ in Thousands	Jun. 30, 2024 USD ($)
Debt Disclosure [Abstract]
Three months or less	$ 237,363
Over three months through six months	151,130
Over six months through one year	478,718
Over one year	1,142,445
Deposits	2,009,656
Strategic partner collateral deposits	1,750
Total deposits	$ 2,011,406

XML

Leases - Schedule of Operating Lease Costs and Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease costs	$ 607	$ 597	$ 1,210	$ 1,195
Operating cash flows from operating leases	698	603	1,355	1,226
Right-of-use asset obtained in exchange for lease liability	$ (58)	$ (56)	$ (118)	$ (111)

XML

Leases - Schedule of Breakout of Operating Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property Equipment And Right Of Use Asset Net	Property Equipment And Right Of Use Asset Net
Operating lease right-of-use assets	$ 7,728	$ 8,785
Other current liabilities	$ 2,267	$ 2,472
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Operating lease liabilities	Operating lease liabilities
Operating lease liabilities	$ 6,071	$ 7,019
Total operating lease liabilities	$ 8,338	$ 9,491
Weighted average remaining lease term	4 years 6 months	4 years 10 months 24 days
Weighted average discount rate	5.56%	5.47%

XML

Leases - Schedule of Maturities of the Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of 2024	$ 1,268
2025	2,546
2026	2,567
2027	1,342
2028	573
Thereafter	1,139
Total lease payments	9,435
Less imputed interest	1,097
Total operating lease liabilities	$ 8,338	$ 9,491

XML

Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Goodwill and other intangibles		$ 42,853	$ 43,034
Provision for credit losses		(12,844)	(13,032)
Net operating loss carryforwards	[1]	(3,804)	(3,802)
Accrued expenses, compensation, and other assets		(5,433)	(6,976)
Unrealized losses on other investments		(1,971)	(1,877)
Total deferred tax liability		18,801	17,347
Valuation allowance		3,593	3,860
Deferred tax liability, net		$ 22,394	$ 21,207

[1] As of June 30, 2024, the Company had an estimated $11.1 million of net operating loss carryforwards, $1.7 million of which expires at various dates between December 31, 2026 and December 31, 2035, which had a net carrying value of $1.2 million as of June 30, 2024.

XML

Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards	$ 11.1
Net operating loss carryforwards expiration period	expires at various dates between December 31, 2026 and December 31, 2035
Net operating loss carryforwards assets	$ 1.2
December 31, 2026 To December 31, 2035 [Member]
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards	$ 1.7

XML

Income Taxes - Summary of Components of Tax Provision (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Current
Federal	$ 4,792	$ 3,873	$ 6,521	$ 6,456
State	1,476	1,175	2,119	1,964
Deferred
Federal	(1,916)	204	1,200	2,450
State	(570)	220	300	984
Total income tax provision	$ 3,782	$ 5,472	$ 10,140	$ 11,854

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Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Statutory Federal income tax provision at 21%	$ 2,603	$ 4,442	$ 6,361	$ 9,326
State and local income taxes, net of federal income tax benefit	509	869	1,244	1,824
Non-deductible expenses	374	19	2,154	1,076
Other	296	142	381	(372)
Total income tax provision	$ 3,782	$ 5,472	$ 10,140	$ 11,854

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Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Provision to Consolidated Actual Income Tax Provision (Parenthetical) (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Statutory Federal income tax provision percentage	21.00%	21.00%	21.00%	21.00%

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Stock Options and Restricted Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended				6 Months Ended			12 Months Ended
	Jun. 15, 2018	Jun. 30, 2024		Mar. 31, 2024		Jun. 30, 2024		Jun. 30, 2023	Dec. 31, 2023		Dec. 31, 2022	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option outstanding		943,041	[1]	946,054	[1]	943,041	[1]		959,522		1,061,849
Stock option exercisable		854,742	[1]			854,742	[1]		697,647
Unvested shares of common stock outstanding		88,299		88,445		88,299			261,875
Number of shares vested and settled						234,330
Intrinsic value of options vested		$ 0.4				$ 0.4
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding		326,680				326,680
Number of shares outstanding, vested restricted stock units		234,330				234,330
Restricted Stock Units [Member] | Vest on June 11, 2025 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, granted		92,350				92,350
Weighted average grant price, granted						$ 8.23
Restricted Stock Units [Member] | Vest on June 22, 2024 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, granted									83,158
Weighted average grant price, granted									$ 9.14
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding		887,665	[2]	889,361	[2]	887,665	[2]		995,376		857,288
Number of shares vested and settled		0		400,985	[3]				248,898	[3]
Weighted average fair value of options granted						$ 0		$ 0
Number of shares, granted		0		296,178		296,178		316,483	399,793
Weighted average grant price, granted		$ 0		$ 8.97					$ 8.34
PSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, granted		215,687				215,687			296,444
Weighted average grant price, granted		$ 8.97				$ 8.97			$ 6.08
Unvested Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding, performance stock units		512,131				512,131
Maximum [Member] | PSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage									200.00%
Minimum [Member] | PSU [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage									0.00%
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		5,710,968				5,710,968
Shares were rolled into the 2018 Plan		1,379,328				1,379,328
2018 Equity Incentive Plan [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding		92,350				92,350
2018 Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested shares of common stock outstanding		887,665				887,665
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]
Vesting period	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
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]
Vesting period	10 years

[1] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024

[2] The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.

[3] The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023

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Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares		3 Months Ended				6 Months Ended			12 Months Ended
		Jun. 30, 2024		Mar. 31, 2024		Jun. 30, 2024		Jun. 30, 2023	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, vested						(234,330)
Grant price per share, cancelled, lower limit	[1]			$ 4.89
Grant price per share, cancelled, upper limit	[1]			$ 7.25
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, beginning balance		889,361	[2]	995,376		995,376		857,288	857,288
Number of shares, granted		0		296,178		296,178		316,483	399,793
Number of shares, cancelled		(1,696)		(1,208)					(12,807)
Number of shares, vested		0		(400,985)	[3]				(248,898)	[3]
Number of shares, ending balance		887,665	[2]	889,361	[2]	887,665	[2]		995,376
Grant price per share, lower range limit beginning balance		$ 4.89	[2]	$ 4.89		$ 4.89		$ 4.89	$ 4.89
Grant price per share, upper range limit beginning balance		9.37	[2]	9.37		9.37		7.25	7.25
Grant price per share, granted, lower limit									7.67
Grant price per share, granted, upper limit		0		8.97					9.37
Grant price per share, cancelled, lower limit		4.89		6.86					4.89
Grant price per share, cancelled, upper limit		9.37		9.37					8.4
Grant price per share, vested, lower limit	[3]			4.89					4.89
Grant price per share, vested, upper limit		0		8.4	[3]				7.68	[3]
Grant price per share, lower range limit ending balance		4.89	[2]	4.89	[2]	4.89	[2]		4.89
Grant price per share, upper range limit ending balance		9.37	[2]	9.37	[2]	9.37	[2]		9.37
Weighted average grant price beginning balance		8.18	[2]	7.74		7.74		$ 7.27	7.27
Weighted average grant price, granted		0		8.97					8.34
Weighted average grant price, cancelled		7.88		8.13					7.24
Weighted average grant price, vested		0		7.69	[3]				7.1	[3]
Weighted average grant price, ending balance		$ 8.18	[2]	$ 8.18	[2]	$ 8.18	[2]		$ 7.74

[1] The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024

[2] The aggregate fair value of the restricted stock was $6.8 million as of June 30, 2024. The remaining vesting period was 2.7 years at June 30, 2024.

[3] The aggregate fair value of the restricted stock vested was $2.7 million for the six months ended June 30, 2024 and $2.1 million for the year ended December 31, 2023

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Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate fair value of restricted stock vested	$ 2.7	$ 2.1
Aggregate fair value of restricted stock outstanding	$ 6.8
Remaining vesting period of restricted stock	2 years 8 months 12 days

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Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares		3 Months Ended				12 Months Ended
		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options beginning balance		946,054	[1]	959,522		1,061,849
Granted		0		0		0
Cancelled		(146)		(85)		(33,382)
Exercised	[2]	(2,867)		(13,383)		(68,945)
Number of options ending balance		943,041	[1]	946,054	[1]	959,522
Options exercisable		854,742	[1]			697,647
Exercise price per share, lower range limit beginning balance		$ 2.14	[1]	$ 2.14		$ 2.14
Exercise price per share, upper range limit beginning balance		9.38	[1]	9.38		9.38
Exercise price per share, granted		0		0		0
Exercise price per share, lower range limit ending balance		2.14	[1]	2.14	[1]	2.14
Exercise price per share, upper range limit ending balance		9.38	[1]	9.38	[1]	9.38
Exercise price per share, option exercisable lower range limit		2.14	[1]			2.14
Exercise price per share, option exercisable upper range limit		9.38	[1]			9.38
Weighted average exercise price, beginning balance		6.51	[1]	6.51		6.51
Weighted average exercise price, granted		0		0		0
Weighted average exercise price, cancelled		4.89		4.89		6.8
Weighted average exercise price, exercised	[2]	6.14		6.61		6.44
Weighted average exercise price, ending balance		6.51	[1]	6.51	[1]	6.51
Weighted average exercise price, options exercisable		6.52	[1]			6.51
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, cancelled						4.89
Exercise price per share, exercised	[2]	4.89		4.89		4.89
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, cancelled		4.89		4.89		9.38
Exercise price per share, exercised	[2]	$ 7.25		$ 7.25		$ 7.25

[1] The aggregate intrinsic value of outstanding options, which represents the difference between the price of the Company’s common stock at June 30, 2024 and the related exercise price of the underlying options, was $1.1 million for outstanding options and $1.0 million for vested options as of June 30, 2024. The remaining contractual life was 5.6 years for outstanding options and 5.5 years for vested options at June 30, 2024

[2] The aggregate intrinsic value of exercised options, 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 less than $0.1 million for the three and six months ended June 30, 2024 and was $0.1 million for the year ended December 31, 2023.

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Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Aggregate intrinsic value for option exercised			$ 0.1
Aggregate intrinsic value of option outstanding	$ 1.1	$ 1.1
Aggregate intrinsic value of option vested	1.0	$ 1.0
Remaining contractual life of option outstanding		5 years 7 months 6 days
Remaining contractual life of option vested		5 years 6 months
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Aggregate intrinsic value for option exercised	$ 0.1	$ 0.1

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Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares		3 Months Ended		6 Months Ended	12 Months Ended
		Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Number of options beginning balance		88,445	261,875	261,875
Number of options, granted		0	0		0
Number of options, cancelled		(146)
Number of options, vested	[1]		(173,430)
Number of options ending balance		88,299	88,445	88,299	261,875
Exercise price per share beginning balance, Lower limit		$ 4.89	$ 4.89	$ 4.89
Exercise price per share beginning balance, Upper limit		6.79	7.25	7.25
Exercise price per share, Cancelled, Upper limit				4.89
Exercise price per share, Vested, Lower limit	[1]		4.89
Exercise price per share, Vested, Upper limit	[1]		7.25
Exercise price per share ending balance, Lower limit		4.89	4.89	4.89	$ 4.89
Exercise price per share ending balance, Upper limit		6.79	6.79	6.79	7.25
Weighted average exercise price		6.37	6.49	6.49
Weighted average exercise price, cancelled		4.89
Weighted average exercise price, vested	[1]		6.56
Weighted average exercise price		$ 6.37	$ 6.37	$ 6.37	$ 6.49

[1] The intrinsic value of the options vested was $0.4 million for the three and six months ended June 30, 2024

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Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Intrinsic value of options vested	$ 0.4	$ 0.4

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Segment Reporting - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2024 Segment
Segment Reporting Disclosure [Line Items]
Number of business segments	5
Number of operating segments	4
Number of non-operating segments	1
Roofs [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	40.00%
Swimming Pools [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	21.00%
Windows [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	13.00%
Other Product Lines [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Texas [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	16.00%
Texas [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Florida [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Florida [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Other States [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Other States [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Recreational Vehicles [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	54.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Boats [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	21.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Automobile [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	11.00%
Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Other Product Lines [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	10.00%
Commercial Lending Segment | Manufacturing [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	55.00%
Commercial Lending Segment | Construction [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	14.00%
Commercial Lending Segment | Wholesale Trade [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	11.00%
Commercial Lending Segment | Other Product Lines [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Commercial Lending Segment | California [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	30.00%
Commercial Lending Segment | Wisconsin [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Commercial Lending Segment | Texas [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Commercial Lending Segment | Geographic Concentration Risk [Member] | Sales Revenue Net [Member] | Other Product Lines [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	10.00%

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Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands	3 Months Ended						6 Months Ended
	Jun. 30, 2024		Mar. 31, 2024	Jun. 30, 2023		Mar. 31, 2023	Jun. 30, 2024		Jun. 30, 2023		Dec. 31, 2023
Segment Reporting Disclosure [Line Items]
Total interest income	$ 70,704			$ 61,726			$ 137,774		$ 117,568
Total interest expense	20,836			15,035			39,989		27,275
Net interest income (loss)	49,868			46,691			97,785		90,293
Provision (benefit) for credit losses	18,577			8,476			35,778		12,514
Net interest income (loss) after loss provision	31,291			38,215			62,007		77,779
Other income (loss), net	1,099			1,942			6,502		4,025
Operating expenses	(19,995)			(19,003)			(38,220)		(37,395)
Net income (loss) before taxes	12,395			21,154			30,289		44,409
Income tax (provision) benefit	(3,782)			(5,472)			(10,140)		(11,854)
Net income (loss) after taxes	8,613		$ 11,536	15,682		$ 16,873	20,149		32,555
Income attributable to the non-controlling interest	1,512			1,512			3,024		3,024
Total net income attributable to Medallion Financial Corp.	7,101			14,170			17,125		29,531
Balance Sheet Data
Total loans	2,295,802						2,295,802				$ 2,131,651
Loans	2,385,590			2,156,998			2,385,590		2,156,998		2,215,886
Total assets	2,760,876			2,519,137			2,760,876		2,519,137		$ 2,587,827
Total funds borrowed	$ 2,283,656			$ 2,066,607			$ 2,283,656		$ 2,066,607
Selected Financial Ratios
Return on average assets	1.30%			2.60%			1.55%		2.79%
Return on average stockholders' equity	8.14%			18.24%			9.89%		19.45%
Return on average equity	8.25%			16.52%			9.70%		17.49%
Interest yield	11.52%			11.21%			11.42%		11.01%
Net interest margin, gross	8.12%			8.48%			8.11%		8.45%
Net interest margin, net of allowance	8.42%			8.77%			8.40%		8.75%
Reserve coverage	3.76%			3.48%			3.76%		3.48%
Delinquency status	0.67%	[1]		0.29%	[2]		0.67%	[3]	0.29%	[4]
Charge-off (recovery) ratio	2.20%	[5]		0.74%	[6]		2.68%	[7]	1.51%	[8]
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]
Segment Reporting Disclosure [Line Items]
Total interest income	$ 47,490			$ 41,109			$ 91,417		$ 79,008
Total interest expense	10,960			7,580			20,605		13,484
Net interest income (loss)	36,530			33,529			70,812		65,524
Provision (benefit) for credit losses	15,795			10,135			32,825		17,886
Net interest income (loss) after loss provision	20,735			23,394			37,987		47,638
Other income (loss), net	306			0			556		0
Operating expenses	(11,236)			(8,444)			(19,523)		(16,247)
Net income (loss) before taxes	9,805			14,950			19,020		31,391
Income tax (provision) benefit	(3,094)			(3,867)			(6,368)		(8,380)
Net income (loss) after taxes	6,711			11,083			12,652		23,011
Balance Sheet Data
Total loans	1,497,428			1,331,114			1,497,428		1,331,114
Total assets	1,451,947			1,294,925			1,451,947		1,294,925
Total funds borrowed	$ 1,200,977			$ 1,062,309			$ 1,200,977		$ 1,062,309
Selected Financial Ratios
Return on average assets	1.95%			3.59%			1.87%		3.84%
Return on average equity	13.05%			22.94%			12.31%		24.13%
Interest yield	13.30%			13.03%			13.20%		12.93%
Net interest margin, gross	10.23%			10.63%			10.23%		10.72%
Net interest margin, net of allowance	10.69%			11.08%			10.69%		11.18%
Reserve coverage	4.35%			4.07%			4.35%		4.07%
Delinquency status	0.41%	[1]		0.39%	[2]		0.41%	[3]	0.39%	[4]
Charge-off (recovery) ratio	2.99%	[5]		1.86%	[6]		3.64%	[7]	2.57%	[8]
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Total interest income	$ 17,651			$ 15,292			$ 35,098		$ 28,941
Total interest expense	6,106			4,194			11,740		7,473
Net interest income (loss)	11,545			11,098			23,358		21,468
Provision (benefit) for credit losses	3,279			3,739			4,177		6,820
Net interest income (loss) after loss provision	8,266			7,359			19,181		14,648
Other income (loss), net	3			2			5		3
Operating expenses	(5,457)			(4,388)			(9,571)		(8,382)
Net income (loss) before taxes	2,812			2,973			9,615		6,269
Income tax (provision) benefit	(802)			(769)			(3,219)		(1,674)
Net income (loss) after taxes	2,010			2,204			6,396		4,595
Balance Sheet Data
Total loans	773,184			728,468			773,184		728,468
Total assets	758,840			718,383			758,840		718,383
Total funds borrowed	$ 627,674			$ 589,335			$ 627,674		$ 589,335
Selected Financial Ratios
Return on average assets	1.08%			1.28%			1.72%		1.39%
Return on average equity	7.00%			8.19%			11.04%		8.76%
Interest yield	9.32%			8.79%			9.29%		8.66%
Net interest margin, gross	6.10%			6.38%			6.18%		6.43%
Net interest margin, net of allowance	6.25%			6.53%			6.34%		6.57%
Reserve coverage	2.38%			2.26%			2.38%		2.26%
Delinquency status	0.17%	[1]		0.16%	[2]		0.17%	[3]	0.16%	[4]
Charge-off (recovery) ratio	1.49%	[5]		1.12%	[6]		1.80%	[7]	0.97%	[8]
Operating Segments [Member] | Commercial Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income	$ 3,538			$ 2,814			$ 7,183		$ 5,515
Total interest expense	1,056			852			2,154		1,661
Net interest income (loss)	2,482			1,962			5,029		3,854
Provision (benefit) for credit losses	478			(113)			694		214
Net interest income (loss) after loss provision	2,004			2,075			4,335		3,640
Other income (loss), net	(14)			343			4,188		614
Operating expenses	(1,437)			(1,147)			(2,422)		(1,567)
Net income (loss) before taxes	553			1,271			6,101		2,687
Income tax (provision) benefit	(72)			(329)			(2,043)		(718)
Net income (loss) after taxes	481			942			4,058		1,969
Balance Sheet Data
Total loans	110,197			92,637			110,197		92,637
Total assets	105,548			99,713			105,548		99,713
Total funds borrowed	$ 87,304			$ 81,801			$ 87,304		$ 81,801
Selected Financial Ratios
Return on average assets	1.86%			3.76%			7.68%		3.94%
Return on average equity	12.09%			23.97%			49.32%		24.74%
Interest yield	13.08%			11.87%			12.97%		11.71%
Net interest margin, gross	9.18%			8.28%			9.08%		8.18%
Net interest margin, net of allowance	9.57%			8.54%			9.45%		8.43%
Reserve coverage	4.41%			2.72%			4.41%		2.72%
Delinquency status	7.52%	[1]		0.08%	[2]		7.52%	[3]	0.08%	[4]
Charge-off (recovery) ratio	0.00%	[5]		3.80%	[6]		(0.04%)	[7]	1.89%	[8]
Operating Segments [Member] | Taxi Medallion Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income	$ 190			$ 787			$ 330		$ 1,097
Total interest expense	25			46			53		113
Net interest income (loss)	165			741			277		984
Provision (benefit) for credit losses	(975)			(5,311)			(1,918)		(12,395)
Net interest income (loss) after loss provision	1,140			6,052			2,195		13,379
Other income (loss), net	334			1,304			973		2,923
Operating expenses	(1,373)			(743)			(2,116)		(2,770)
Net income (loss) before taxes	101			6,613			1,052		13,532
Income tax (provision) benefit	(14)			(1,713)			(352)		(3,612)
Net income (loss) after taxes	87			4,900			700		9,920
Balance Sheet Data
Total loans	3,482			3,448			3,482		3,448
Total assets	7,511			18,724			7,511		18,724
Total funds borrowed	$ 6,213			$ 15,360			$ 6,213		$ 15,360
Selected Financial Ratios
Return on average assets	4.29%			100.63%			14.89%		94.20%
Return on average equity	25.69%			641.63%			90.99%		590.25%
Interest yield	21.62%			83.55%			18.78%		28.80%
Net interest margin, gross	18.78%			78.67%			15.59%		25.84%
Net interest margin, net of allowance	31.77%			166.23%			26.61%		73.52%
Reserve coverage	40.18%			52.76%			40.18%		52.76%
Delinquency status	0.00%	[1]		0.00%	[2]		0.00%	[3]	0.00%	[4]
Charge-off (recovery) ratio	(98.90%)	[5]		(525.21%)	[6]		(100.16%)	[7]	(124.01%)	[8]
Intersegment Eliminations [Member]
Segment Reporting Disclosure [Line Items]
Total interest income	$ 1,835			$ 1,724			$ 3,746		$ 3,007
Total interest expense	2,689			2,363			5,437		4,544
Net interest income (loss)	(854)			(639)			(1,691)		(1,537)
Provision (benefit) for credit losses	0			26			0		(11)
Net interest income (loss) after loss provision	(854)			(665)			(1,691)		(1,526)
Other income (loss), net	470			293			780		485
Operating expenses	(492)			(4,281)			(4,588)		(8,429)
Net income (loss) before taxes	(876)			(4,653)			(5,499)		(9,470)
Income tax (provision) benefit	200			1,206			1,842		2,530
Net income (loss) after taxes	(676)			(3,447)			(3,657)		(6,940)
Balance Sheet Data
Total loans	1,299			1,331			1,299		1,331
Total assets	437,030			387,392			437,030		387,392
Total funds borrowed	$ 361,488			$ 317,802			$ 361,488		$ 317,802
Selected Financial Ratios
Return on average assets	(0.61%)			(3.69%)			(1.69%)		(3.70%)
Return on average equity	(3.88%)			(22.83%)			(10.64%)		(23.24%)

[1] Loans 90 days or more past due.

[2] Loans 90 days or more past due.

[3] Loans 90 days or more past due.

[4] Loans 90 days or more past due.

[5] Negative balances indicate net recoveries for the period.

[6] Negative balances indicate net recoveries for the period.

[7] Negative balances indicate net recoveries for the period.

[8] Negative balances indicate net recoveries for the period.

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Commitments and Contingencies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2024 USD ($)
Commitments And Contingencies [Abstract]
Employment agreements expiration description	employment agreements expire at various dates through 2027
Future minimum payments	$ 9,800,000
Other commitment	$ 0

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Related Party Transactions - Additional Information (Detail) - Senior Vice President [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Related Party Transaction [Line Items]
Salary from related party	$ 260,988	$ 250,950
Annual cash bonus	95,000	85,000
Equity bonus	$ 52,000	$ 50,000

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Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands		Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Financial assets
Equity investments		$ 10,795	$ 11,430
Investment securities		55,830	54,282
Loans receivable		2,385,590	2,215,886	$ 2,156,998
Equity securities, fair value		1,700	1,700
Carrying Amount [Member]
Financial assets
Cash, cash equivalents, and federal funds sold	[1]	157,961	149,845
Equity investments		10,795	11,430
Investment securities		55,830	54,282
Loans receivable		2,295,802	2,131,651
Accrued interest receivable	[2]	13,299	13,538
Equity securities, fair value	[3]	1,722	1,748
Financial liabilities
Funds borrowed		2,283,656	2,118,689
Accrued interest payable	[2]	7,945	6,822
Fair Value Recurring [Member]
Financial assets
Cash, cash equivalents, and federal funds sold	[1]	157,961	149,845
Equity investments		10,795	11,430
Investment securities		55,830	54,282
Loans receivable		2,284,754	2,131,651
Accrued interest receivable	[2]	13,299	13,538
Equity securities, fair value	[3]	1,722	1,748
Financial liabilities
Funds borrowed		2,249,036	2,118,689
Accrued interest payable	[2]	$ 7,945	$ 6,822

[1] Categorized as level 1 within the fair value hierarchy, excluding $1.3 million in interest bearing deposits categorized as level 2 as of June 30, 2024 and $1.3 million as of December 31, 2023. See Note 13.

[2] Categorized as level 3 within the fair value hierarchy. See Note 13.

[3] Included within other assets on the balance sheet.

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Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest-bearing funds deposited in other banks	$ 1,300
Fair Value Recurring [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest-bearing funds deposited in other banks	1,250	$ 1,250
Fair Value Recurring [Member] | Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest-bearing funds deposited in other banks	$ 1,250	$ 1,250

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Fair Value of Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands		Jun. 30, 2024		Dec. 31, 2023
Assets
Interest-bearing deposits		$ 1,300
Equity securities, fair value		1,700		$ 1,700
Fair Value Recurring [Member]
Assets
Interest-bearing deposits		1,250		1,250
Investment securities		55,830		54,282
Equity securities, fair value	[1]	1,722		1,748
Total		58,802	[2]	57,280	[3]
Fair Value Recurring [Member] | Level 1 [Member]
Assets
Equity securities, fair value		1,722		1,748
Total		1,722	[2]	1,748	[3]
Fair Value Recurring [Member] | Level 2 [Member]
Assets
Interest-bearing deposits		1,250		1,250
Investment securities		55,830		54,282
Total		$ 57,080	[2]	$ 55,532	[3]

[1] Included within other assets on the balance sheet.

[2] Total unrealized gain of $0.1 million and unrealized loss of less than $0.1 million, net of tax, was included in other comprehensive income for the three and six months ended June 30, 2024 related to these assets.

[3] Total unrealized losses of $0.3 million, net of tax, was included in other comprehensive loss for the year ended December 31, 2023 related to these assets.

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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				6 Months Ended	12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net change in unrealized gains (losses) on investments, net of tax	$ 102	$ (150)	$ (906)	$ 506		$ (300)
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net change in unrealized gains (losses) on investments, net of tax					$ (100)
AOCI Attributable to Parent [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net change in unrealized gains (losses) on investments, net of tax	$ 102	$ (150)	$ (906)	$ 506

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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	Jun. 30, 2024		Mar. 31, 2024	Dec. 31, 2023		Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Assets
Equity investments	$ 1,700			$ 1,700
Nonaccrual loans	14,000			14,000
Loan collateral in process of foreclosure	9,359	[1]	$ 10,198	11,772	[1]	$ 16,803	$ 20,467	$ 21,819
Fair Value, Nonrecurring
Assets
Equity investments	10,795			11,430
Nonaccrual loans	22,248			25,974
Loan collateral in process of foreclosure	9,359			11,772
Total	42,402			49,176
Fair Value, Nonrecurring | Level 3 [Member]
Assets
Equity investments	10,795			11,430
Nonaccrual loans	22,248			25,974
Loan collateral in process of foreclosure	9,359			11,772
Total	$ 42,402			$ 49,176

[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.

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Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)		6 Months Ended		12 Months Ended
		Jun. 30, 2024 USD ($) $ / shares		Dec. 31, 2023 USD ($) $ / shares		Mar. 31, 2024 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Equity investments		$ 1,700,000		$ 1,700,000
Principal portion of loans serviced, fair value		14,000,000		14,000,000
Loan collateral in process of foreclosure		$ 9,359,000	[1]	$ 11,772,000	[1]	$ 10,198,000	$ 16,803,000	$ 20,467,000	$ 21,819,000
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Equity Value | $ / shares		$ 8.73		$ 8.73
Nonaccrual Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans value		0		0
Nonaccrual Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans value		0.2306		0.2848
Nonaccrual Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value		$ 0	[2]	$ 0	[3]
Nonaccrual Loans [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value		79,500	[2]	79,500	[3]
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan collateral in process of foreclosure value	[4]	2,500		2,300
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Collateral Value [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan collateral in process of foreclosure value	[4]	51,300		45,000
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan collateral in process of foreclosure value		0	[2]	0	[3]
Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member] | Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan collateral in process of foreclosure value		79,500	[2]	79,500	[3]
Level 3 [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Equity investments		10,522,000		11,157,000
Level 3 [Member] | Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Equity investments		273,000		273,000
Level 3 [Member] | Nonaccrual Loans [Member] | Market Approach [Member] | Historical and Actual Loss Experience [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Principal portion of loans serviced, fair value		22,248,000		25,974,000
Level 3 [Member] | Loan Collateral in Process of Foreclosure [Member] | Market Approach [Member] | Measurement Input Transfer Prices [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan collateral in process of foreclosure		$ 9,359,000		$ 11,772,000

[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, of $5.3 million as of June 30, 2024 and $6.2 million as of December 31, 2023.

[2] Represents amount net of liquidation costs.

[3] Represents amount net of liquidation costs.

[4] Relates to the recreation loan portfolio.

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Medallion Bank Preferred Stock (Non-controlling Interest) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions			6 Months Ended
	Dec. 17, 2019	Jul. 21, 2011	Jun. 30, 2024	Dec. 31, 2021
Changes In Equity And Comprehensive Income Line Items [Line Items]
Investment, Type [Extensible Enumeration]				us-gaap:EquitySecuritiesMember
Capital Purchase Program [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
US Treasury shares purchased		26,303
Investment, Type [Extensible Enumeration]		U.S. Treasury Securities [Member]
Preferred stock, liquidation preference per share			$ 1,000
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Initial public offering shares	1,840,000
Preferred stock, aggregate liquidation amount	$ 46.0
Preferred stock, net of liquidation amount	$ 42.5
Percentage of dividend payment rate	8.00%
Series F Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member] | SOFR [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Percentage of liquidation rate basis	6.46%
Dividend description of variable rate basis	three month Secured Overnight Financing Rate, or SOFR
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member] | Capital Purchase Program [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Percentage of dividend payment rate			9.00%
Aggregate purchase price		$ 26.3