Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Components of Deferred and Other Tax Assets and Liabilities

The following table sets forth the significant components of our deferred and other tax assets and liabilities as of June 30, 2018 and December 31, 2017.


(Dollars in thousands)	Bank Holding Company Accounting June 30, 2018			Investment Company Accounting December 31, 2017
Goodwill and other intangibles/unrealized gain on investments in Medallion Bank	($	46,089	)	($	35,297	)
Provision for loan losses/unrealized losses on loans and nonaccrual interest		31,152			10,071
Net operating loss carryforwards ⁽¹⁾		2,133			615
Unrealized gains on investments in other controlled subsidiaries		—			(3,617	)
Unrealized gains on investments other than securities		—			(1,395	)
Accrued expenses, compensation, and other		1,218			782
Unrealized gains on investments and other assets		(3,958	)		(542	)

Total deferred tax liability		(15,544	)		(29,383	)
Valuation allowance		(108	)		(39	)

Deferred tax liability, net		(15,652	)		(29,422	)
Taxes receivable		19,112			16,886

Net deferred and other tax assets (liabilities)	$	3,460		($	12,536	)

(1)	As of June 30, 2018, the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035.

Schedule of Components of Tax Provision (Benefit)

The components of our tax benefit for the three and six months ended June 30, 2018 and 2017 were as follows.


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2018		2017		2018		2017
Current
Federal	$	418	$	780	$	6,313	$	1,549
State		58		185		1,240		363


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2018		2017		2018			2017
Deferred
Federal		2,919		4,785		(972	)		5,666
State		626		1,268		(1,920	)		1,412

Net benefit for income taxes	$	4,021	$	7,018	$	4,661		$	8,990

Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit

The following table presents a reconciliation of statutory federal income tax benefit to consolidated actual income tax benefit reported in net income/net increase in net assets for the three and six months ended June 30, 2018 and 2017.


	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2018			2017		2018			2017
Statutory Federal Income tax benefit at 21% (35% in 2017)	$	3,971		$	4,135	$	7,229		$	4,437
State and local income taxes, net of federal income tax benefit		598			652		1,101			699
Appreciation of Medallion Bank		—			537		(1,974	)		2,061
Utilization of carry forwards		(663	)		1,338		(663	)		2,256
Change in effective state income tax rate		—			—		(1,358	)		—
Other		115			356		326			(463	)

Total income tax benefit	$	4,021		$	7,018	$	4,661		$	8,990