(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 for the 2017 quarters shown below.


(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			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

Balance June 30, 2017		(48,456	)		(1,192	)		155,730			3,708			584			110,374
Net change in unrealized
Appreciation on investments		—			—			(2,771	)		(361	)		—			(3,132	)
Depreciation on investments		(6,669	)		75			—			—			(15	)		(6,609	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—			(272	)		—			(272	)
Losses on investments		311			60			—			—			—			371

Balance September 30, 2017	($	54,814	)	($	1,057	)	$	152,959		$	3,075		$	569		$	100,732

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 nine months ended September 30, 2017 under Investment Company Accounting.


	Three Months Ended
(Dollars in thousands)	March 31, 2018			September 30, 2017			Nine Months Ended September 30, 2017
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	($	998	)	($	361	)	$	1,132
Unrealized depreciation		(38,152	)		(6,594	)		(28,253	)
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		29,115			2,035			11,089
Realized gains		—			(272	)		(2,363	)
Realized losses		34,747			371			2,656
Net unrealized losses on investments other than securities and other assets		(1,915	)		(15	)		(15	)

Total	$	22,797		$	(4,836	)	$	(15,754	)

Net realized gains (losses) on investments
Realized gains	$	—		$	272		$	2,363
Realized losses		(34,747	)		(371	)		(2,656	)
Other gains		—			1,187			4,189
Direct recoveries (chargeoffs)		2			(144	)		(111	)
Realized gains on investments other than securities and other assets		—			—			—

Total	($	34,745	)	$	944		$	3,785