(5) UNREALIZED APPRECIATION (DEPRECIATION) AND REALIZED GAINS (LOSSES) ON INVESTMENTS (Investment Company Accounting)

The following table sets forth the pre-tax change in the Company’s unrealized appreciation (depreciation) on investments under Investment Company Accounting for the three months ended March 31, 2018 and the three and six months ended June 30, 2017.


(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investments Other Than Securities			Total
Balance December 31, 2017	($	20,338	)	($	513	)	$	158,920	$	3,121		($	1,490	)	$	139,700
Net change in unrealized
Appreciation on investments		—			—			38,795		(998	)		—			37,797
Depreciation on investments		(38,170	)		18			—		—			(1,915	)		(40,067	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		—			—			—
Losses on investments		34,747			—			—		—			—			34,747

Balance March 31, 2018	($	23,761	)	($	495	)	$	197,715	$	2,123		($	3,405	)	$	172,177


(Dollars in thousands)	Medallion Loans			Commercial Loans			Investment in Subsidiaries			Equity Investments			Investment Securities		Investments Other Than Securities		Total
Balance December 31, 2016	($	28,523	)	($	1,378	)	$	152,750		$	3,934		$	—	$	584	$	127,367
Net change in unrealized
Appreciation on investments		—			—			3,751			1,261			—		—		5,012
Depreciation on investments		(8,670	)		(332	)		—			—			—		—		(9,002	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—			(2,093	)		—		—		(2,093	)
Losses on investments		825			—			—			486			—		—		1,311

Balance March 31, 2017	($	36,368	)	($	1,710	)	$	156,501		$	3,588		$	—	$	584	$	122,595
Net change in unrealized
Appreciation on investments		—			—			(771	)		120			—		—		(651	)
Depreciation on investments		(12,425	)		(118	)		—			—			—		—		(12,543	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—			—			—		—		—
Losses on investments		337			636			—			—			—		—		973
Other		—			—			—			—			—		—		—

Balance June 30, 2017	($	48,456	)	($	1,192	)	$	155,730		$	3,708		$	—	$	584	$	110,374

The table below summarizes pre-tax components of unrealized and realized gains and losses in the investment portfolio for the three months ended March 31, 2018 and the three and six months ended June 30, 2017 under Investment Company Accounting.


	Three Months Ended
(Dollars in thousands)	March 31, 2018			June 30, 2017			Six Months Ended June 30, 2017
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	($	998	)	$	235		$	1,493
Unrealized depreciation		(38,152	)		(12,659	)		(21,661	)
Net unrealized appreciation on investment in Medallion Bank and other controlled subsidiaries		29,115			930			9,054
Realized gains		—			—			(2,090	)
Realized losses		34,747			974			2,285
Net unrealized losses on investments other than securities and other assets		(1,915	)		—			—

Total	$	22,797		$	(10,520	)	$	(10,919	)

Net realized gains (losses) on investments
Realized gains	$	—		$	1		$	2,091
Realized losses		(34,747	)		(974	)		(2,285	)
Other gains		—			2,958			3,002
Direct recoveries		2			11			33
Realized gains on investments other than securities and other assets		—			—			—

Total	($	34,745	)	$	1,996		$	2,841