Medallion Bank

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Medallion Bank

(6) MEDALLION BANK

The following note is included for informational purposes as it relates to the prior periods when the Company reported under Investment Company Accounting and as such, was not able to consolidate Medallion Bank’s results.

The following table presents information derived from Medallion Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the three and nine months ended September 30, 2017.

(Dollars in thousands)	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
Statement of comprehensive income
Investment income	$	29,259		$	82,247
Interest expense		3,660			9,952
Net interest income		25,599			72,295
Noninterest income		28			99
Operating expenses		6,668			19,368
Net investment income before income taxes		18,959			53,026
Income tax provision		2,940			7,035
Net investment income after income taxes		16,019			45,991
Net realized/unrealized losses of Medallion Bank		(10,859	)		(34,586	)
Net increase in net assets resulting from operations of Medallion Bank		5,160			11,405
Unrealized depreciation on Medallion Bank(1)		(592	)		(1,212	)
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank		(2,533	)		896
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	2,035		$	11,089

(1) Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US Treasury, and the fair value adjustments to the carrying amount of Medallion Bank.

The following table presents Medallion Bank’s balance sheet and the net investment in other controlled subsidiaries as of December 31, 2017.

(Dollars in  thousands)	December 31, 2017
Loans	$	864,819
Investment securities, at fair value		43,478
Net investments		908,297
Cash		110,233
Other assets, net		58,827
Total assets	$	1,077,357
Other liabilities	$	3,836
Due to affiliates		1,055
Deposits and other borrowings, including accrued interest payable		908,236
Total liabilities		913,127
Medallion Bank equity(2)		164,230
Total liabilities and equity	$	1,077,357
Investment in other controlled subsidiaries	$	11,449
Total investment in Medallion Bank and other controlled subsidiaries(3)	$	302,147

(1) Includes $26,303 of preferred stock issued to the US Treasury under the Small Business Lending Fund Program (SBLF).

(2) Includes $152,267 of unrealized appreciation on Medallion Bank, in excess of Medallion Bank’s book value as of December 31, 2017.