10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2018

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, 38^th 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	Name of each exchange on which registered
Common Stock, par value $0.01 per share	NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES  ☐    NO  ☒

Indicated by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    YES  ☐    NO  ☒

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ☒

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 Act).    YES  ☐    NO  ☒

The aggregate market value of the voting common equity held by non-affiliates of the registrant, computed by reference to the last reported price at which the stock was sold on June 29, 2018, was $111,869,794.

The number of outstanding shares of registrant’s common stock, par value $0.01, as of March 11, 2019 was 24,433,178.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Definitive Proxy Statement for its 2019 Annual Meeting of Shareholders, which Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year-end of December 31, 2018, are incorporated by reference into Part III of this Form 10-K.

MEDALLION FINANCIAL CORP.

2018 FORM 10-K ANNUAL REPORT

TABLE OF CONTENTS

		Page
PART I			3
ITEM 1.	OUR BUSINESS		3
ITEM 1A.	RISK FACTORS		18
ITEM 1B.	UNRESOLVED STAFF COMMENTS		36
ITEM 2.	PROPERTIES		36
ITEM 3.	LEGAL PROCEEDINGS		36
ITEM 4.	MINE SAFETY DISCLOSURES		36
PART II			37
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES		37
ITEM 6.	SELECTED FINANCIAL DATA		38
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		41
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		70
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA		71
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE		71
ITEM 9A.	CONTROLS AND PROCEDURES		71
ITEM 9B.	OTHER INFORMATION		75
PART III			75
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE		75
ITEM 11.	EXECUTIVE COMPENSATION		75
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS		75
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE		75
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES		75
PART IV			75
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES		75
ITEM 16.	FORM 10-K SUMMARY		81
SIGNATURES			82

CERTIFICATIONS

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, including, without limitation, statements regarding our expectations, beliefs, intentions,

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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-K 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-K 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. 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-K 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-K. The inclusion of the forward-looking statements contained in this Form 10-K should not be regarded as a representation by the Company or any other person that the forward-looking statements contained in this Form 10-K will be achieved. In light of the foregoing, readers of this Form 10-K 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 below and others that are detailed in this Form 10-K and other documents that the Company files from time to time with the Securities and Exchange Commission, including quarterly reports on Form 10-Q and any current reports on Form  8-K.

PART I

ITEM 1. OUR BUSINESS

We, Medallion Financial Corp. or the Company, are a finance company, organized as a Delaware corporation, that includes Medallion Bank, our primary operating subsidiary. Effective April 2, 2018, following authorization by our shareholders, we withdrew our previous election to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. Prior to such time, we were a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act.

As a result of this change in status, commencing with the three months ended June 30, 2018:

• we consolidated the results of Medallion Bank and our other subsidiaries in our financial statements, which, as an investment company, we were previously precluded from doing; and

• with the consolidation of Medallion Bank, given its significance to our overall financial results, we now report as a bank holding company for accounting purposes under Article 9 and Guide 3 of Regulation S-X; but we are not a bank holding company for regulatory purposes.

In accordance with FASB Accounting Standards Codification (ASC) Topic 946 – Financial Services – Investment Companies, we made this change to our financial reporting prospectively, and did not restate or revise periods prior to our change in status to a non-investment company effective April 2, 2018. Accordingly, in this report we refer to both accounting in accordance with US generally accepted accounting principles (GAAP) applicable to bank holding companies (Bank Holding Company Accounting), which applies commencing April 2, 2018, and to that applicable to investment companies under the 1940 Act (Investment Company Accounting), which applies to prior periods.

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We historically have had a leading position in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. Recently, our strategic growth has been through Medallion Bank which originates consumer loans for the purchase of recreational vehicles, boats, and trailers and to finance small-scale home improvements. Since Medallion Bank acquired a consumer loan portfolio and began originating consumer loans in 2004, it has increased its consumer loan portfolio at a compound annual growth rate of 16% (19% if there had been no loan sales during 2016, 2017, and 2018). In January 2017, we announced our plans to transform our overall strategy. We are transitioning away from medallion lending and placing our strategic focus on our growing consumer finance portfolio. Total assets under management and management of our wholly-owned subsidiaries, which includes our managed net investment portfolio, as well as assets serviced for third party investors and unconsolidated subsidiaries, were $1,522,000,000 as of December 31, 2018, and were $1,593,000,000 as of December 31, 2017, and have grown at a compound annual growth rate of 9% from $215,000,000 at the end of 1996. Since our initial public offering in 1996, we have paid/declared distributions in excess of $263,060,000, or $14.66 per share.

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

• Medallion Bank, or the Bank, an FDIC-insured industrial bank that originates consumer loans, raises deposits and conducts other banking activity and has a separate board of directors with a majority of independent directors;

• Medallion Funding LLC, or Medallion Funding, a Small Business Investment Company, or SBIC, our primary taxicab medallion lending company;

• Medallion Capital, Inc., or Medallion Capital, an SBIC which conducts a mezzanine financing business;

• Freshstart Venture Capital Corp., or Freshstart, an SBIC which originates and services taxicab medallion and commercial loans; and

• Medallion Servicing Corp., or MSC, which provides loan services to the Bank.

Our other consolidated subsidiaries are comprised of Medallion Fine Art, Inc., Medallion Taxi Media, Inc., CDI-LP Holdings, Inc., Medallion Motorsports, LLC, and RPAC Racing, LLC, or RPAC. In addition, we make both marketable and nonmarketable equity investments, primarily as a function of our mezzanine lending business.

Our Market

We provide loans to individuals and small to mid-size businesses, through our subsidiaries, in four segments:

• loans that finance consumer purchases of recreational vehicles, boats, and trailers;

• loans that finance consumer small scale home improvements;

• loans that finance commercial businesses; and

• loans that finance taxicab medallions.

The following chart shows the details of our loans receivable as of December 31, 2018:

(Dollars in thousands)	Loans		Allowance for Loan Loss		Net Loans Receivable
Recreation	$	587,038	$	6,856	$	580,182
Home improvement		183,155		1,796		181,359
Commercial		64,083		—		64,083
Medallion		183,606		27,743		155,863
Total	$	1,017,882	$	36,395	$	981,487

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Consumer Loans

Consumer loans are originated by the Bank and consist of loans for the purchase of recreational vehicles, boats and trailers (recreation lending) and to finance home improvements such as replacement windows and roofs (home improvement lending). Combined consumer loans outstanding were $761,541,000 at December 31, 2018 and comprised 77% of our net loans receivable compared to $683,502,000 comprising 49% of our $1,380,054,000 managed net investment portfolio as of December 31, 2017. The managed net investment portfolio was all investments held by our consolidated and unconsolidated subsidiaries. We believe that the consumer loan portfolio is of acceptable credit quality given the high interest rates earned on the loans, which compensate for the higher degree of credit risk in the loan portfolio.

Recreation Lending. Recreation lending is a high-growth business focused on originating prime and non-prime recreation loans. The segment is a significant source of income, accounting for 71.0% of our interest income for the nine months ended December 31, 2018. All of our recreation loans are serviced by a third-party loan servicer, and we have used the same loan servicer since the business’s inception.

Through the Bank, we maintain non-exclusive relationships with more than 2,800 dealers and financial service providers (FSPs), not all of which are active at any one time. FSPs are entities that provide finance and insurance (F&I) services to small dealers that do not have the desire or ability to provide F&I services themselves. The ability of FSPs to aggregate the financing and relationship management for many small dealers makes them valuable to the Bank. We receive approximately half of our loan volume from dealers and the other half from FSPs. A dedicated sales team working from the Bank’s Salt Lake City headquarters manages our relationships with dealers and FSPs. Approximately 4% of recreation lending’s new loan originations for the nine months ended December 31, 2018 were from our top ten dealer relationships and an additional 24% were from our top three FSP relationships.

The recreation lending portfolio consists of thousands of geographically distributed loans with an average loan size of approximately $13,500 as of December 31, 2018. The loans are fixed rate loans with an average loan term at origination of approximately 10 years. The weighted average remaining term of our loans outstanding at December 31, 2018 is 8.5 years. The size, geographic dispersion, source variety and collateral variety of the loans reduce risk to the Company.

Home Improvement Lending. Through the Bank, we work directly with contractors and an FSP to offer flexible customer financing for window, siding and roof replacement, swimming pool installation and solar system installation, and other home improvement projects. Our core product is a standard installment loan, which features affordable monthly payments and competitive interest rates for prime credit customers at no cost to the contractor. We also offer a variety of promotional loan options to help contractors close a challenging sale. Promotional loan options include same-as-cash, no interest and deferred payment features, which allow borrowers to reduce the total cost of financing or start repayments when it is most convenient.

Home improvement lending operates in a manner similar to recreation lending, with a few key differences. Through the Bank, we maintain a smaller number of non-exclusive relationships; the Bank currently has relationships with approximately 600 contractors. Most of our home improvement-financed sales take place in the borrower’s home instead of a store, with the contractor presenting the borrower with a bid that includes a financing option.

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 F&I services. The result is contractor demand for financing services that facilitate an in-home transaction (e.g., information technology and extended operating hours) and additional support for the salesperson throughout the financing process. The Bank’s contractor relationships are managed by a remote sales team with employees located in the geographical regions served. Approximately 59% of home improvement lending’s new loan originations for the nine months ended December 31, 2018 were from our top ten contractors and our FSP relationship.

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We offer only fixed rate home improvement loans with an average loan term at origination of approximately 12 years. The weighted average remaining term of our loans outstanding is 10.2 years as of December 31, 2018. The average size of the loans in our home improvement portfolio is approximately $14,100, and geographic dispersion, source variety and collateral variety of home improvement loans reduce risk to the Company.

Commercial Loans

Commercial loans finance either the purchase of the equipment and related assets necessary to open a new business or the purchase or improvement of an existing business. From the inception of the commercial loan business in 1987 through December 31, 2018, we have originated more than $970,572,000 of commercial loans. Commercial loans of $64,083,000 comprised 7% of our net loans receivable as of December 31, 2018, compared to managed commercial loans of $91,783,000, or 7%, of our $1,380,054,000 net investment portfolio as of December 31, 2017. We have worked to increase our commercial loan activity in recent years, primarily because of the attractive higher yielding nature of most of this business. The increase since 1996 has been primarily driven by internal growth through the origination of additional commercial loans. We focus our marketing efforts on the manufacturing, professional, scientific, and technical services and other services. The majority of our commercial borrowers are located in the New York metropolitan area and the Midwest. We plan to continue expanding our commercial loan activities by developing a more diverse borrower base, with a wider geographic area of coverage, and by expanding targeted industries.

Mainly through our subsidiary Medallion Capital, we originate both senior and subordinated loans nationwide to businesses in a variety of industries, including manufacturing and various service providers, more than 51% of which are located in the Midwest and Northeast regions, with the rest scattered across the country. These commercial loans are primarily secured by a second position on all assets of the businesses and generally range in amount from $1,000,000 to $5,000,000 at origination. As a component of most of the transactions, a portion of the investment is an equity or partnership stake, and occasionally, we also receive warrants to purchase an equity interest in the borrowers or some other form of success fee or profit participation.

Commercial loans are generally secured by equipment, accounts receivable, real estate, or other assets, and have interest rates averaging 806 basis points over the prevailing prime rate at the end of 2018, up from 735 basis points over prime at the end of 2017.

Medallion Loans

Taxi medallion loans of $155,863,000 comprised 16% of our net loans receivable as of December 31, 2018, compared to managed taxi medallion loans of $388,001,000, or 28%, of our $1,380,054,000 managed net investment portfolio as of December 31, 2017. Including loans to unaffiliated investors and unconsolidated subsidiaries, the total amount of medallion loans under our management was $323,786,000 as of December 31, 2018, compared to $414,350,000 as of December 31, 2017. Since 1979, we have originated approximately $3,631,000,000 in medallion loans in New York City, Chicago, Boston, Newark, Cambridge, and other cities within the United States. In addition, our management has a long history of owning, managing, and financing taxicab fleets, taxicab medallions, and corporate car services, dating back to 1956.

Medallion loans collateralized by New York City taxicab medallions and related assets comprised 87% and 73% (81% on a managed basis) of the medallion loan portfolio as of December 31, 2018 and 2017. Based on taxi medallion values published by the New York City Taxi and Limousine Commission, or TLC, and our cash flow analysis, we estimate that the total value of all of New York City taxicab medallions and related assets such as the vehicle, taximeter, and roof lights exceeded $2.7 billion as of December 31, 2018. We estimate that the total value of all taxicab medallions and related assets in our major US markets exceeded $3.1 billion as of December 31, 2018.

While medallion loans do become delinquent or in default, all of our medallion loans are secured by the medallion and enhanced with personal guarantees of the owners, shareholders or equity members. When a

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borrower defaults on a loan, we have the ability to restructure the underlying loan or repossess the medallion collateralizing that loan and sell it in the market or through a foreclosure auction and pursue the personal guarantees, all of which we have done. Given the current market conditions, we have recorded an allowance for loan losses against performing and nonperforming loans to mitigate potential future losses.

The New York City Market. A New York City taxicab medallion is the only permitted license to operate a taxicab and accept street hails in New York City, except as discussed below. As reported by the TLC, individual (owner-driver) medallions and corporate medallions sold for a wide variety of prices during the year. Our analysis of transaction activity combined with cash flow analysis of owners and operators supported our estimated value of $181,000, net of liquidation costs, as of December 31, 2018. The number of taxicab medallions is limited by law to 13,630 medallions outstanding as of December 31, 2018. A New York State law permits cars for hire to pick up street hails in the boroughs outside Manhattan. Pursuant to such law, the TLC began issuing Street Hail Livery licenses in June 2013.

A prospective medallion owner must qualify under the medallion ownership standards set and enforced by the TLC. These standards prohibit individuals with criminal records from owning medallions, require that the funds used to purchase medallions be derived from legitimate sources, and mandate that taxicab vehicles and meters meet TLC specifications. In addition, before the TLC will approve a medallion transfer, the TLC requires a letter from the seller’s insurer stating that there are no outstanding claims for personal injuries in excess of insurance coverage. After the transfer is approved, the owner’s taxicab is subject to quarterly TLC inspections.

Most New York City medallion transfers are handled through approximately 20 medallion brokers licensed by the TLC. In addition to brokering medallions, these brokers also arrange for TLC documentation insurance, vehicles, meters, and financing. We have excellent relations with many of the most active brokers, and regularly receive referrals from them.

The Newark Market. We estimate that Newark medallions sold for approximately $147,000, net, as of December 31, 2018. The number of Newark medallions has been limited to 600 since 1950 by local law. We estimate that the total value of all Newark medallions and related assets is over $91,800,000 as of December 31, 2018.

The Chicago Market. We estimate that Chicago medallions sold for approximately $27,000, net, as of December 31, 2018. Pursuant to a municipal ordinance, the number of outstanding medallions is capped at 6,995 as of December 31, 2018. We estimate that the total value of all Chicago medallions and related assets is over $230,835,000 as of December 31, 2018.

Other Markets. We estimated that Boston and Cambridge medallions sold for approximately $43,000 and $22,000, net, as of December 31, 2018. These other markets make up 0.4% of our total medallion loans receivable.

Our Strategy

Our core philosophy has been “In niches there are riches.” We try to identify markets that are profitable and where we can be an industry leader. Key elements of our strategy include:

Capitalize on our relationships with brokers and dealers. We are committed to establishing, building, and maintaining our relationships with our brokers and dealers. Our marketing efforts are focused on building relationships with dealers in the consumer markets as we work directly with dealerships, contractors and FSPs to offer quality financing for their customers, including those with past credit challenges. We believe that our relationships with dealers and brokers provide us with, in addition to potential investment opportunities, other significant benefits, including an additional layer of due diligence and additional monitoring capabilities. We have assembled a management team that has developed an extensive network of dealer and broker relationships

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in our target markets over the last 50 years. We believe that our management team’s relationships with these dealers and brokers have and will continue to provide us with significant investment opportunities. In 2018, 100% of our consumer loans were generated by brokers and dealers, and there were few originations in the medallion or commercial lending space.

Focus on niche industries and our expertise in these niche fields. We specialize in providing consumer loans for the purchase of recreational vehicles (RVs), boats and trailers, and to finance home improvements through contractors and suppliers in the home improvement sector. We believe our focus on these niche areas provides us with an opportunity to realize favorable returns, with less competition.

Employ disciplined underwriting policies and maintain rigorous portfolio monitoring. We have an extensive loan underwriting and monitoring process. We conduct a thorough analysis of each potential loan portfolio and its prospects, competitive position, financial performance, and industry dynamics. We stress the importance of credit and risk analysis in our underwriting process. We believe that our continued adherence to this disciplined process will permit us to continue to generate a stable, diversified and increasing revenue stream of current income from our earning assets to enable us to make distributions to our shareholders.

Leverage the skills of our experienced management team. Our management team is led by our Chief Executive Officer, Mr. Alvin Murstein, and our President, Mr. Andrew M. Murstein. Alvin Murstein has over 60 years of experience in the ownership, management, and financing of taxicab medallions and other commercial businesses, and Andrew M. Murstein is the third generation in his family to participate in the business and has over 30 years of experience in the ownership, management, and financing of taxicab medallions and other commercial businesses. The other members of our management team including Medallion Bank have broad investment backgrounds, with prior experience in banking and non-bank consumer lending, at specialty finance companies, middle market commercial banks, and other financial services companies. We believe that the experience and contacts of our management team will continue to allow us to effectively implement the key aspects of our business strategy.

Perform Strategic Acquisitions. In addition to increasing market share in existing lending markets and identifying new niches, we seek to acquire medallion financing businesses and related portfolios and specialty finance companies that make secured loans to small businesses which have experienced historically low loan losses similar to our own. Since our initial public offering in May 1996, we have acquired eight specialty finance companies, five loan portfolios, and three taxicab rooftop advertising companies.

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Loan/Investment Activity

The following table sets forth the components of loan/investment activity in the consolidated/managed investment portfolio for the years indicated.

	Year ended December 31,
(Dollars in thousands)	2018			2017			2016
Net investments at beginning of year	$	1,380,054		$	1,517,592		$	1,501,555
Loans/investments originated (1)		428,510			475,465			738,238
Repayments of loans/investments (1)		(261,383	)		(270,133	)		(655,071	)
Consumer loans sold to third parties		(100,920	)		(221,447	)		(97,511	)
Net realized losses on loans/investments (2)		(42,305	)		(79,264	)		(34,888	)
Provision for loan losses		(59,008	)		—			—
Net increase in unrealized appreciation (depreciation) (3)		29,864			6,390			79,650
Transfers to loans in process of foreclosure		(53,756	)		(44,968	)		(10,941	)
Investment transfers excluded from loans in process of foreclosure (4)		(262,064	)		—			—
Deconsolidation of Trust III (5)		(71,409	)		—			—
Amortization of origination costs		(3,950	)		(3,581	)		(3,440	)
Other, net		(2,146	)		—			—
Net increase (decrease) in loans/investments		(398,567	)		(137,538	)		16,037
Net loans receivable/investments at end of year	$	981,487		$	1,380,054		$	1,517,592

(1) Includes refinancings.

(2) Excludes net realized losses of $7,736 and $5,875 for the years ended December 31, 2017 and 2016 related to investments other than securities and other assets.

(3) Excludes net unrealized depreciation of $1,915 for the three months ended March 31, 2018 and $2,076 and $28,372 for the years ended December 31, 2017 and 2016 related to investments other than securities and other assets.

(4) Represents portfolio investments transferred to other asset categories and excluded from net loans receivable.

(5) Represents the Trust III gross loans of $53,546 and loans in process of foreclosure that had been transferred to other assets of $17,863 as a result of the Company no longer considered the primary beneficiary of, and thus not consolidating, Trust III.

Loan/Investment Characteristics

Consumer Loans. Consumer loans generally require equal monthly payments covering accrued interest and amortization of principal over a negotiated term, generally around ten to twelve years. Interest rates offered are fixed. Borrowers may prepay consumer loans without any prepayment penalty. In general, Medallion Bank has established relationships with dealers, FSPs, and contractors in the industry, who are the sources for consumer loan volumes. The loans are made up of recreation loans and home improvement loans which were 76% and 24% of total consumer loans at December 31, 2018.

Our recreation loans are secured primarily by RVs, boats and trailers with a small proportion of loans secured by other collateral such as autos, motorcycles and boat motors. These loans, which together make up our largest and most profitable loan portfolio, have a weighted average yield of 16.88% at December 31, 2018. Our home improvement loans are secured by the personal property installed, and the security interest for a majority of these loans is perfected with a UCC fixture filing. As of December 31, 2018, these loans had a weighted average yield of 9.20%.

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Commercial Loans. We have typically originated commercial loans in principal amounts generally ranging from under $1,000,000 to $5,000,000, and occasionally have originated loans in excess of that amount. These loans are generally retained and typically have maturities ranging from three to ten years and require monthly payments ranging from full amortization over the loan term to fully deferred interest and principal at maturity, with multiple payment options in between. Substantially all loans may be prepaid, and in the first five years, a fee will be owed to us. The term of, and interest rate charged on, certain of our outstanding loans are subject to the regulations of the Small Business Administration, or the SBA. Under SBA regulations, the maximum rate of interest permitted on loans originated by us is 19%; however, terms and interest rates are subject to market competition for all loans. Unlike medallion loans, for which competition and market conditions preclude us from charging the maximum rate of interest permitted under SBA regulations, we are able to charge the maximum rate on certain commercial loans.

Medallion Loans. Our medallion loan portfolio consists of mostly fixed-rate loans, collateralized by first security interests in taxicab medallions and related assets (vehicles, meters, and the like). We estimate that the weighted average loan-to-value ratio of all of the medallion loans was 220% as of December 31, 2018, compared to 131% as of December 31, 2017. These ratios do not factor in the reserve on these loans of $27,743,000 as of December 31, 2018 and the unrealized depreciation on managed loans of $62,723,000 as of December 31, 2017. In addition, we have recourse against a vast majority of the owners of the taxicab medallions and related assets through personal guarantees.

Medallion loans generally require equal monthly payments covering accrued interest and amortization of principal over a five to twenty-five year schedule, subject to a balloon payment of all outstanding principal at maturity. Historically, we have originated loans with one-to-five year maturities where interest rates are adjusted and a new maturity period set.

Historically, we have retained the medallion loans we originate; however, from time to time, we participate or sell shares of some loans or portfolios to interested third party financial institutions. In these cases, we retain the borrower relationships and service the sold loans.

Marketing, Origination, and Loan Approval Process

We employ 78 personnel to originate, manage, service and collect on the consumer, commercial, and medallion loans. Each loan application is individually reviewed through analysis of a number of factors, including loan-to-value ratios, a review of the borrower’s credit history, public records, personal interviews, trade references, personal inspection of the premises, and approval from the TLC, SBA, or other regulatory body, if applicable. Each medallion and commercial loan applicant is required to provide personal or corporate tax returns, premises leases, and/or property deeds. The Company’s senior management establishes loan origination criteria. Loans that conform to such criteria may be processed by a loan officer with the proper credit authority, and non-conforming loans (other than those by the Bank) must be approved by the Company’s Chief Executive Officer, President, and/or the Chief Credit Officer and the Investment Oversight Committee of the Company’s Board of Directors. Loan criteria for loans originated with the Bank is established by the Bank’s board of directors and senior management. The Bank’s policies identify specific approval authorities for its recreation, home improvement, medallion and real estate loans. Policy exceptions are reported to the Bank’s board of directors. Both medallion and commercial loans are sourced from brokers with extensive networks of applicants, and commercial loans are also referred by contacts with banks, attorneys, and accounting firms. Consumer loans are primarily sourced through relationships which have been established with recreational vehicle and boat dealers, and home improvement contractors throughout our market area.

Sources of Funds

We have historically funded our lending operations primarily through credit facilities with bank syndicates and, to a lesser degree, through equity or debt offerings or private placements, and fixed-rate, senior secured

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notes and long-term subordinated debentures issued to or guaranteed by the SBA. Since the inception of Medallion Bank, substantially all of Medallion Bank’s funding has been provided by FDIC insured brokered certificates of deposit. The determination of funding sources is established by our management, based upon an analysis of the respective financial and other costs and burdens associated with funding sources. Our funding strategy and interest rate risk management strategy is to have the proper structuring of debt to minimize both rate and maturity risk, while maximizing returns with the lowest cost of funding over an intermediate period of time.

The table below summarizes our sources of available funds and amounts outstanding under credit facilities and their respective end of period weighted average interest rates at December 31, 2018. See Note 7 to the consolidated financial statements for additional information about each credit facility.

(Dollars in  thousands)	Total
Cash and cash equivalents	$	57,713
Bank loans		59,615
Average interest rate		4.55	%
Maturity		3/19-12/23
Preferred securities		33,000
Average interest rate		4.86	%
Maturity		9/37
Retail notes		33,625
Average interest rate		9.00	%
Maturity		4/21
SBA debentures and borrowings		83,099
Amounts undisbursed		3,000
Amounts outstanding		80,099
Average interest rate		3.40	%
Maturity		3/19-9/28
Brokered CDs & other funds borrowed		848,040
Average interest rate		2.14	%
Maturity		1/19-07/23
Other borrowings		7,649
Average interest rate		2.00	%
Maturity		12/19-3/20
Total cash	$	57,713
Total debt outstanding	$	1,062,028

We fund our fixed-rate loans with variable-rate credit lines and bank debt, and with fixed-rate SBA debentures and borrowings. The mismatch between maturities and interest-rate sensitivities of these balance sheet items results in interest rate risk. We seek to manage our exposure to increases in market rates of interest to an acceptable level by:

• Originating adjustable rate loans; and

• Incurring fixed-rate debt.

Nevertheless, we accept varying degrees of interest rate risk depending on market conditions. For additional discussion of our funding sources and asset liability management strategy, see Asset/Liability Management on page 65.

Competition

Banks, credit unions, and finance companies, some of which are SBICs, compete with us in originating medallion, commercial, and consumer loans. Many of these competitors have greater resources than we do and

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certain competitors are subject to less restrictive regulations than us. As a result, we cannot assure you that we will be able to identify and complete the financing transactions that will permit us to compete successfully.

Employees

As of December 31, 2018 we employed 177 persons, including 75 at our Medallion Bank subsidiary. We believe that relations with our employees are good.

MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS

For our tax years ended December 31, 2018 and 2017, we have been taxed as a corporation and must pay corporate-level federal and state income taxes on our taxable income. Because we were taxed as a corporation under Subchapter C of the Internal Revenue Code (the Code) for the tax year ended December 31, 2018 and 2017, we are able to carry forward any net operating losses incurred to succeeding years. In addition, distributions will generally be taxable to our shareholders to the extent of our current and accumulated earnings and profits for U.S. federal tax purposes. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of a shareholder’s tax basis, and any remaining distributions would be treated as a capital gain. Subject to certain limitations under the Code, corporate distributees would be eligible for the dividends received deduction.

On December 22, 2017, the U.S. Government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences.

REGULATION

Exemption from the 1940 Act

In order to maintain our status as a non-investment company, we operate so as to fall outside the definition of an “investment company” or within an applicable exception. We expect to continue to fall within the exception from the definition of an “investment company” provided under Section 3(c)(6) of the 1940 Act as a company primarily engaged, directly or through majority-owned subsidiaries, in the business of, among other things, (i) banking, (ii) purchasing and otherwise acquiring notes, drafts, acceptances, open accounts receivable, and other obligations representing part or all of the sales price of merchandise, insurance and services, and (iii) making loans to manufacturers, wholesalers, and retailers of, and to prospective purchasers of, specified merchandise, insurance, and services. We monitor our continued compliance with this exception, which we have met since April 2, 2018, and were compliant as of December 31, 2018.

Regulation of Medallion Bank as an Industrial Bank

In May 2002, we formed Medallion Bank, which received approval from the FDIC for federal deposit insurance in October 2003. Medallion Bank, a Utah-chartered industrial bank, is a depository institution subject to regulatory oversight and examination for safety and soundness by both the FDIC and the Utah Department of Financial Institutions. Medallion Bank is examined annually by the FDIC and the Utah Department of Financial Institutions. Numerous other federal and state laws and regulations govern almost all aspects of Medallion Bank’s operations and, to some degree, our operations and those of our non-bank subsidiaries as institution-affiliated parties. Under its banking charter, Medallion Bank is empowered to make consumer and commercial loans, and may accept all FDIC-insured deposits other than demand deposits (checking accounts). Medallion Bank provides stable and low-cost bank deposit funding for our key lending business activities conducted through Medallion Bank.

In addition, the FDIC has regulatory authority to prohibit Medallion Bank from engaging in any unsafe or unsound practice in conducting its business.

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Medallion Bank is subject to risk-based and leverage capital standards issued by the federal banking regulators. These standards are designed to make regulatory capital requirements more sensitive to differences in risk profiles among banking organizations, to account for off-balance sheet exposure, to minimize disincentives for holding liquid assets, and to achieve greater consistency in evaluating the capital adequacy of major banks throughout the world. Under the risk-based capital standards, assets and off-balance sheet items are assigned to broad risk categories, each with designated weights, and the resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance sheet items.

In July 2013, the Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency adopted the U.S. Basel III capital rules, which implement many aspects of the Basel Committee on Banking Supervision’s Basel III capital framework and are aimed at increasing both the quantity and quality of regulatory capital. The requirements in the U.S. Basel III capital rules began to phase in on January 1, 2015, for many covered banking organizations, including Medallion Bank. Most requirements in the U.S. Basel III capital rules were fully phased in by January 1, 2019. Because Medallion Bank was already subject to a capital maintenance agreement with the FDIC that required it to hold capital in excess of the then applicable capital requirements, we do not believe that the U.S. Basel III capital rules will have a material impact on Medallion Bank’s business.

Under the U.S. Basel III capital rules, Medallion Bank is subject to the following minimum capital ratios:

• a new Common Equity Tier 1 risk-based capital ratio of 4.5%;

• a Tier 1 risk-based capital ratio of 6%;

• a Total risk-based capital ratio of 8%; and

• a Tier 1 leverage ratio of 4%.

In addition, Medallion Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, as of January 1, 2019, Medallion Bank is be required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%. The new and highest form of capital, Common Equity Tier 1 capital, consists solely of common stock (plus related surplus), retained earnings, accumulated other comprehensive income, and limited amounts of qualifying minority interests that are in the form of common stock. For Medallion Bank to pay a dividend, they would need to comply with these capital requirements.

The U.S. Basel III capital rules retain or modify certain deductions from and adjustments to regulatory capital and also provide for new ones. In addition, the U.S. Basel III capital rules provide for limited recognition in Common Equity Tier 1 capital, and deduction from Common Equity Tier 1 capital above certain thresholds, of three categories of assets: (i) deferred tax assets arising from temporary differences that cannot be realized through net operating loss carrybacks (net of related valuation allowances and of deferred tax liabilities), (ii) mortgage servicing assets (net of associated deferred tax liabilities) and (iii) investments in more than 10% of the issued and outstanding common stock of unconsolidated financial institutions (net of associated deferred tax liabilities).

For purposes of calculating the denominator of the three risk-based capital ratios, the assets of covered banking organizations are given risk weights that, under the U.S. Basel III capital rules, range from 0% to 1,250%, depending on the nature of the asset. Direct obligations of the U.S. Treasury or obligations unconditionally guaranteed by the U.S. government have a 0% risk weight, while general obligation claims on states or other political subdivisions of the United States are assigned a 20% risk weight, except for municipal or state revenue bonds, which have a 50% risk weight. Most first-lien residential mortgage exposures that are prudently underwritten and performing according to their original terms carry a 50% risk weight, with a 100%

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risk weight for other residential mortgage exposures. In addition, certain off-balance sheet items are assigned credit conversion factors to convert them to asset equivalent amounts to which an appropriate risk weight is applied. For example, the unused portion of unconditionally cancellable commitments is assigned a 0% conversion factor, while self-liquidating, transaction-related contingent items with an original maturity of one year or less and the amount of a commitment with an initial maturity of one year or less that is not unconditionally cancellable by the covered banking organization are converted at 20%. Transaction-related contingencies such as bid bonds and standby letters of credit backing nonfinancial obligations, as well as the amount of a commitment with an original maturity of more than one year that is not unconditionally cancellable, have a 50% conversion factor. General guarantees and standby letters of credit backing financial obligations are given a 100% conversion factor.

In addition, pursuant to provisions of the FDIC Improvement Act of 1991, or FDICIA, and related regulations with respect to prompt corrective action, FDIC-insured institutions such as Medallion Bank may only accept brokered deposits without FDIC permission if they meet specified capital standards, and are subject to restrictions with respect to the interest they may pay on deposits unless they are well capitalized. The U.S. Basel III capital rules revised the capital threshold to be well capitalized. Effective January 1, 2015, in order to qualify as well capitalized, an insured depository institution must maintain a Common Equity Tier 1 risk-based capital ratio of at least 6.5%, a Tier 1 risk-based capital ratio of at least 8.0%, a total risk-based capital ratio of at least 10.0%, and a Tier 1 leverage ratio of at least 5.0%, and the bank must not be under any order or directive from the appropriate regulatory agency to meet and maintain a specific capital level.

Pursuant to a capital maintenance agreement with the FDIC, we and Medallion Bank have agreed that the capital levels of Medallion Bank will at all times meet or exceed the levels required for Medallion Bank to be considered well-capitalized under the FDIC rules and regulations, that Medallion Bank’s Tier 1 capital to total assets leverage ratio will be maintained at not less than 15%, and that Medallion Bank will maintain an adequate allowance for loan and lease losses. As of December 31, 2018, Medallion Bank was in compliance with the above rules and tests.

Medallion Bank is also subject to certain federal laws that restrict and control its ability to extend credit and provide or receive services between affiliates. Sections 23A and 23B of the Federal Reserve Act and Regulation W promulgated thereunder limit the transfer of funds by a depository institution to certain of its affiliates, including us, in the form of loans, extensions of credit, investments, or purchases of assets. Sections 23A and 23B and Regulation W also require generally that the depository institution’s transactions with its affiliates be on terms no less favorable to Medallion Bank than comparable transactions with unrelated third parties.

The USA Patriot Act and the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, or the Patriot Act, is intended to detect and prosecute terrorism and international money laundering. The Patriot Act establishes new standards for verifying customer identification incidental to the opening of new accounts. Medallion Bank has undertaken appropriate measures to comply with the Patriot Act and associated regulations. Other provisions of the Patriot Act provide for special information sharing procedures governing communications with the government and other financial institutions with respect to suspected terrorists and money laundering activity, and enhancements to suspicious activity reporting, including electronic filing of suspicious activity reports over a secure filing network. The compliance programs required by the Patriot Act are intended to supplement pre-existing compliance requirements that apply to financial institutions under the Bank Secrecy Act and the Office of Foreign Assets Control, or OFAC, regulations to which Medallion Bank is also subject. The Bank Secrecy Act requires all financial institutions, including banks, to, among other things, establish a risk-based system of internal controls reasonably designed to prevent money laundering and the financing of terrorism. The Bank Secrecy Act includes a variety of record-keeping and reporting requirements (such as cash and suspicious activity reporting), as well as due diligence/know-your-customer documentation requirements. Medallion Bank has in place policies, procedures and internal controls in order to comply with Bank Secrecy Act and OFAC laws and regulations. Bank regulators routinely examine institutions for compliance with these obligations and are required to consider compliance in connection with the regulatory review of applications.

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Federal and state banking agencies require Medallion Bank to prepare annual reports on financial condition and to conduct an annual audit of financial affairs in compliance with minimum standards and procedures. Medallion Bank must undergo regular on-site examinations by the appropriate banking agency, which will examine for adherence to a range of legal and regulatory compliance responsibilities. A bank regulator conducting an examination has complete access to the books and records of the examined institution. The results of the examination are confidential. The cost of examinations may be assessed against the examined institution as the agency deems necessary or appropriate.

Regulation by the SBA

Medallion Funding, Medallion Capital, and Freshstart are each licensed by the SBA to operate as SBICs, under the Small Business Investment Act of 1958, as amended, or the SBIA. The SBIA authorizes the organization of SBICs as vehicles for providing equity capital, long term financing, and management assistance to small business concerns. Under the regulations promulgated by the SBA a “small business concern” is defined as a business that is independently owned and operated, which does not dominate its field of operation, and which (i) has a tangible net worth, together with any affiliates, of $19.5 million or less and average annual net income after U.S. federal income taxes for the preceding two fiscal years of $6.5 million or less (average annual net income is computed without the benefit of any carryover loss), or (ii) satisfies alternative criteria under the Federal government’s North American Classification System, or the NAICS, that assigns codes to the industry in which a small business is engaged and provides a small business size standard based either on the number of persons employed by the business or its gross revenues. In addition, at the end of each fiscal year, at least 25% of the total amount of loans made (after April 25, 1994) must be made in “smaller businesses” that have a net worth of $6.0 million or less, and average net income after federal income taxes for the preceding two years of $2.0 million or less. A business that meets the NAICS size standards also qualifies as a “smaller business” for purposes of meeting SBA’s size standard regulations.

Investments by SBICs must be in active, primarily domestic businesses. SBIC regulations preclude investment in the following types of businesses: (1) financial companies whose principal business activity is as a relender or reinvestor (that is, directly or indirectly, providing funds to others, purchasing debt obligations, factoring, or long term leasing of equipment with no provision for maintenance or repair); (2) many kinds of real estate projects; (3) single purpose projects that are not continuing businesses; (4) companies located outside the U.S. intending to use the proceeds of the investment outside of the U.S. or companies that are located in the U.S. that have more than 50% of their employees or tangible assets located outside of the U.S.; (5) businesses that are passive and do not carry on an active trade or business; (6) businesses that use 50% or more of the funds to buy goods or services from an associated supplier; and (7) certain “sin businesses” such as gambling and the like. Nonetheless, the regulations provide an exception to (1) above for an SBIC that provides Venture Capital Financing investments (represented by common or preferred stock, a limited partnership interest or a similar partnership interest) to a Disadvantaged Business that is a relender or reinvestor (except banks or savings and loans insured by agencies of the Federal Government, and agricultural credit companies), so long as, without SBA prior approval, total outstanding financings do not exceed the SBICs regulatory capital at the end of its fiscal year.

Under current SBA regulations, the maximum rate of interest that Medallion Funding, Medallion Capital and Freshstart may charge may not exceed the higher of (i) 19% or (ii) the sum of (a) the higher of (i) that company’s weighted average cost of qualified borrowings, as determined under SBA regulations, or (ii) the current SBA debenture rate, plus (b) 11%, rounded to the next lower eighth of one percent. As of December 31, 2018, the maximum rate of interest permitted on loans originated by Medallion Funding, Medallion Capital, and Freshstart was 19%. As of December 31, 2018, our outstanding medallion loans had a weighted average rate of interest 4.43% and our outstanding commercial loans had a weighted average rate of interest of 13.56%. Current SBA regulations also require that each loan originated by an SBIC has a term between one and 20 years.

In addition, SBICs are subject to periodic examination by the SBA, for which the SBA charges examination fees. SBICs are required to maintain certain minimum levels of capital and must maintain certain records and

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make them available for SBA examination. SBICs also are required to prepare valuations of their portfolio investments in accordance with prescribed valuation guidelines, to maintain certain minimum levels of capital, to file annual reports containing financial, management and other information and to file notices of certain material changes in their ownership and operations. We are examined by the SBA annually for compliance with applicable SBA regulations.

SBICs are precluded from making investments in a small business if it would give rise to a conflict of interest. Generally, a conflict of interest may arise if an associate of the SBIC has or makes an investment in the small business the SBIC is financing or serves as one of its officers or would otherwise benefit from the financing. A conflict of interest would also occur if an SBIC were to lend money to any of its officers, directors, and employees, or invest in any affiliates thereof. Joint investing with an associate (such as another fund controlled by affiliates of the general partner of the fund) may be made on identical terms or on terms that are fair to the SBIC. The SBA also prohibits, without prior SBA approval, a “change of control” or transfers which would result in any person (or group of persons acting in concert) owning 10% or more of any class of capital stock of an SBIC. A “change of control” is any event which would result in the transfer of the power, direct or indirect, to direct the management and policies of an SBIC, whether through ownership, contractual arrangements, or otherwise.

Under SBA regulations, without prior SBA approval, loans by licensees with outstanding SBA leverage to any single small business concern may not exceed 30% of an SBIC’s regulatory capital, as defined in the SBIA.

SBICs must invest idle funds that are not being used to make loans in investments permitted under SBA regulations. These permitted investments include direct obligations of, or obligations guaranteed as to principal and interest by, the government of the U.S. with a term of 15 months or less and deposits maturing in one year or less issued by an institution insured by the FDIC. These permitted investments must be maintained in (i) direct obligations of, or obligations guaranteed as to principal and interest by, the U.S., which mature within 15 months from the date of the investment; (ii) repurchase agreements with federally insured institutions with a maturity of seven days or less if the securities underlying the repurchase agreements are direct obligations of, or obligations guaranteed as to principal and interest by the U.S., and such securities must be maintained in a custodial account in a federally insured institution; (iii) mutual funds, securities, or other instruments that exclusively consist of, or represent pooled assets of, investments described in (i) or (ii) above; (iv) certificates of deposit with a maturity of one year or less, issued by a federally insured institution; (v) a deposit account in a federally insured institution, subject to withdrawal restriction of one year or less; (vi) a checking account in a federally insured institution; or (vii) a reasonable petty cash fund.

SBICs may purchase voting securities of small business concerns in accordance with SBA regulations. Although prior regulations prohibited an SBIC from controlling a small business concern except in limited circumstances, SBA regulations allow an SBIC to exercise control over a small business for a period of seven years from the date on which the SBIC initially acquires its control position. This control period may be extended for an additional period of time with the SBA’s prior written approval.

If an SBIC defaults in its payment obligations to SBA under its outstanding debentures, fails to comply with any terms of its securities, or violates any law or regulation applicable to it, the SBA has the right to accelerate the maturity of all amounts due under its debentures. Additionally, the SBA can bring suit for the appointment of a receiver for the SBIC and for its liquidation in the event a default on payment of a SBIC’s debentures or for serious regulatory violations.

Other

Because Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act and we are a “financial institution holding company” within the meaning of the Utah Financial Institutions Act, federal and Utah law and regulations prohibit any person or

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company from acquiring control of us and, indirectly, Medallion Bank, without, in most cases, prior written approval of the FDIC or the Commissioner of 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 our 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 a number of specified “control factors” as set forth in the applicable regulations. Although Medallion 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 Medallion Financial Corp. 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 to vote 20% or more of any class of our voting securities by an individual or to vote more than 10% of any class of our voting securities by a person other than an individual. 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.

AVAILABLE INFORMATION

Our corporate website is located at www.medallion.com. We make copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act available on or through our website free of charge as soon as reasonably practicable after we electronically file them with or furnish them to the SEC. Our SEC filings can be found in the For Investors section of our website, the address of which is http://www.medallion.com/investors.html, or on the SEC website at www.sec.gov. Our Code of Ethical Conduct and Insider Trading Policy can be located in the Corporate Governance section of our website at http://www.medallion.com/investors_corporate_governance.html. These documents, as well as our SEC filings, are available in print free of charge to any stockholder who requests a copy from our Secretary.

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ITEM 1A. RISK FACTORS

Risks Relating to Our Business and Structure

Our business is heavily concentrated in consumer lending, which carries a high risk of loss and could be adversely affected by an economic downturn.

Our business is heavily concentrated in consumer lending. As a result, we are more susceptible to fluctuations and risks particular to consumer credit than a more diversified company. For example, our business is particularly sensitive to macroeconomic conditions that affect the U.S. economy, consumer spending and consumer credit. We are also more susceptible to the risks of increased regulations and legal and other regulatory actions that are targeted at consumer credit or the specific consumer credit products that we offer (including promotional financing). Our business concentration could have a material adverse effect on our results of operations.

By its nature, lending to consumers carries with it different risks and typically a higher risk of loss than commercial lending. Although the net interest margins are intended to be higher to compensate us for this increased risk, an economic downturn could result in higher loss rates and lower returns than expected, and could affect the profitability of our consumer loan portfolio. During periods of economic slowdown, such as the 2007-2009 recession, delinquencies, defaults, repossessions, and losses generally increase, and consumers are likely to reduce their discretionary spending in areas such as recreation and home improvement, which comprise a high proportion of our business. These periods may also be accompanied by increasing unemployment rates and declining values of consumer products securing outstanding accounts, which weaken collateral coverage and increase the amount of a loss in the event of default.

Additionally, higher gasoline prices, volatile real estate values and market conditions, reset of adjustable rate mortgages to higher interest rates, general availability of consumer credit, or other factors that impact consumer confidence or disposable income could increase loss frequency and decrease consumer demand for RVs, boats, trailers and other consumer products (including in connection with home improvement projects), as well as weaken collateral values on certain types of consumer products. Any decrease in consumer demand for those products could have a material adverse effect on our ability to originate new loans and, accordingly, on our business, financial condition, and results of operations.

Although declines in commodity prices, and more particularly gasoline prices, generally are financially beneficial to the individual consumer, such declines may also have a negative impact on unemployment rates in geographic areas that are highly dependent upon the oil and natural gas industry, which could adversely affect the credit quality of consumers in those areas.

Our balance sheet consists of a significant percentage of nonprime consumer loans, which are associated with higher than average delinquency rates. The actual rates of delinquencies, defaults, repossessions, and losses on these loans could be more dramatically affected by a general economic downturn. In addition, during an economic slowdown or recession, our servicing costs may increase without a corresponding increase in our net interest income.

Furthermore, our business is significantly affected by monetary and regulatory policies of the U.S. Federal Government and its agencies. Changes in any of these policies are influenced by macroeconomic conditions and other factors that are beyond our control and could have a material adverse effect on us through interest rate changes, costs of compliance with increased regulation, and other factors. Although market conditions have improved since the 2007-2009 recession, conditions remain challenging for financial institutions.

The process we use to estimate losses inherent in our credit exposure requires complex judgments, including forecasts of economic conditions and how those economic conditions might impair the ability of our borrowers to repay their loans. The degree of uncertainty concerning economic conditions may adversely affect the accuracy of our estimates, which may, in turn, impact the reliability of the process and the quality of our assets.

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Changes in the taxicab and for-hire vehicle industries have resulted in significantly increased competition and have had a material adverse effect on our business, financial condition, and operations.

There have been changes in the taxicab and for-hire vehicle industries that have resulted in significantly increased competition in all of our taxi medallion markets. Ridesharing applications, or ridesharing apps, utilized by for-hire vehicles were introduced in New York City in 2011 and continue to expand domestically and globally. Many of these for-hire vehicle operators operate outside of the regulatory regime with which we and our borrowers operate. As a result, there is an increased risk in competition because such operators are able to pass the cost savings of not having to comply with certain regulations to its passengers. Since 2017, New York State, New York City Council and the New York City Taxi and Limousine Commissions have made several changes to the medallion classes and regulations forcing greater transparency and equal regulation among transportation companies, including; eliminating the distinction between individual and corporate medallions, temporarily capping the number of ride-sharing licenses, minimum-wage regulations for for-hire vehicle (FHV) companies, and congestion pricing. Until the market fully stabilizes we will not be able to determine the ultimate impact of these changes. According to the TLC, between January 2018 and January 2019 approximately 15,500 new for-hire vehicle licenses were issued, increasing the total number of for-hire vehicles to approximately 120,608 as of January 25, 2019, a 14.8% increase from January 2018.

In addition, the New York State legislature enacted a law on December 21, 2011, which was amended on February 17, 2012, to permit cars for-hire to pick up street hails in boroughs outside of Manhattan. Pursuant to this law the TLC has issued approximately 8,300 Street Hail Livery licenses since June 2013, of which approximately 3,400 are active.

TLC annualized data through November 2018 has shown a 8.9% reduction in total New York City taxicab fares, compared to the annualized data of December 2017, and a 9.1% reduction in the total number of New York City taxicab trips. Such reductions in fare totals and taxicab trips are likely the result of a combination of ridesharing apps, Street Hail Livery licenses, and other forms of public transportation.

As of December 31, 2018, 8.6% of our medallion loan portfolio was 90 days or more past due. As discussed in further detail below, there have also been recent decreases in the values of our medallion loan collateral and our Chicago medallions purchased out of foreclosure. Increased competition from ridesharing apps and Street Hail Livery licenses has reduced our market share, the overall market for taxicab services, the supply of taxicab drivers, income from operating medallions, and the value of taxicab medallions. If these trends continue and intensify, there would be a further material increase to our loan to value ratios, loan delinquencies, and loan defaults resulting in a material adverse effect on our business, financial condition, and results of operations.

Decreases in the value of our medallion loan collateral and our Chicago medallions purchased out of foreclosure have had, and may continue to have, a material adverse effect on our business.

A significant portion of our loan revenue is derived from loans collateralized by New York City taxicab medallions. According to TLC data, over the past 20 years New York City taxicab medallions had appreciated in value from under $200,000 to $1,320,000 for corporate medallions and $1,050,000 for individual medallions in 2014. However, based on our evaluation of various sale transactions and cash flows of our underlying borrowers performance, we determined that a market value of $186,400, $181,000 net of liquidation costs, was appropriate, reflecting the median transactional activity for the quarter ended December 31, 2018.

We own 159 Chicago taxicab medallions that were purchased out of foreclosure in 2003. Additionally, a portion of our loan revenue is derived from loans collateralized by Chicago taxicab medallions. The Chicago medallions had appreciated in value from $50,000 in 2003 to approximately $370,000 in 2013. Since that time, however, there has been a decline in the value of Chicago taxicab medallions to approximately $28,000, $27,160 net of liquidation costs, as of December 31, 2018.

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Decreases in the value of our medallion loan collateral have resulted in an increase in the loan-to-value ratios of our medallion loans. We estimate that the weighted average loan-to-value ratio of our medallion loans was approximately 220% as of December 31, 2018. If taxicab medallion values continue to decline, there could be an increase in medallion loan delinquencies, foreclosures, and borrower bankruptcies. Our ability to recover on defaulted medallion loans by foreclosing on and selling the medallion collateral could be diminished, which could result in material losses on defaulted medallion loans which could have a material adverse effect on our business. Continued decreases in the value of our Chicago medallions purchased out of foreclosure could adversely affect our ability to dispose of such medallions at times when it may be advantageous for us to do so. If we are required to liquidate all or a portion of our medallions quickly, we could realize less than the value at which we had previously recorded such medallions.

Our financial condition, liquidity and results of operations depend on the credit performance of our loans.

As of December 31, 2018, more than half of our recreation loans are nonprime receivables with obligors who do not qualify for conventional consumer finance products as a result of, among other things, adverse credit history. While our underwriting guidelines are designed to confirm that, notwithstanding such factors, the obligor would be a reasonable credit risk, the receivables nonetheless are expected to experience higher default rates than a portfolio of obligations of prime obligors. The weakening of our underwriting guidelines for any reason, such as in response to the competitive environment, in an effort to originate higher yielding loans, a lack of discipline or diligence by our employees in underwriting and monitoring loans or our inability to adequately adapt policies and procedures to changes in economic or other conditions, may result in loan defaults and charge-offs that may necessitate increases to our allowance for loan losses, each of which could adversely affect our net income and financial condition. In the event of a default on a recreation loan, generally the most practical recovery method is repossession of the financed vehicle, although the collateral value of the vehicle usually does not fully cover the outstanding account balance and costs of recovery. Repossession sales that do not yield sufficient proceeds to repay the receivables in full typically result in losses on those receivables.

In addition, our prime portfolio has grown in proportion to our overall portfolio over the past several years. While prime portfolios typically have lower default rates than nonprime portfolios, we have less ability to make risk adjustments to the pricing of prime loans compared to nonprime loans. As a result, to the extent our prime portfolio continues to grow, a larger proportion of our business will consist of loans with respect to which we will have less flexibility to adjust pricing to absorb losses. As a result of these factors, we may sustain higher losses than anticipated in our prime portfolio. Additionally, if our prime loan losses are higher than expected then we may also be at risk with regards to our forecasted losses, which could impact our loss reserves and results of operations.

We are subject to certain financial covenants and other restrictions under our loan and credit arrangements, which could affect our ability to finance future operations or capital needs or to engage in other business activities.

Our loan and credit agreements contain financial covenants and other restrictions relating to borrowing base eligibility, tangible net worth, net income, leverage ratios, shareholders’ equity, and collateral values. Our ability to meet these financial covenants and restrictions could be affected by events beyond our control, such as a substantial decline in collateral values or a rise in borrower delinquencies. A breach of these covenants could result in an event of default under the applicable debt instrument. Such a default, if not cured or waived, may allow the creditors to accelerate the related debt and may result in the acceleration of any other debt that is subject to an applicable cross-acceleration or cross-default provision. Most of our credit facility debt is subject to cross default provisions. Certain other events can constitute an event of default. Furthermore, if we were unable to repay the amounts due and payable under our credit facilities, those lenders could proceed against the collateral granted to them to secure that indebtedness. In the event our lenders or holders of the related notes accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that

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indebtedness. We have regularly needed waivers and extensions and there can be no guarantee that we will be able to continue to get them if requested. Based on the foregoing factors, the operating and financial restrictions and covenants in our current credit agreements and any future financing agreements could adversely affect our ability to finance future operations or capital needs or to engage in other business activities.

Our business, financial condition and results of operations could be negatively impacted if we are unsuccessful in developing and maintaining our relationships with dealerships, contractors and FSPs.

We originate loans by working with third-party sellers of consumer products and not working directly with consumers. As a result, our ability to originate consumer loans depends on our relationships with dealerships, contractors and FSPs. Although we have relationships with various dealerships, contractors and FSPs, none of our relationships are exclusive and each may be terminated at any time. In particular, there is significant competition for the contractor and FSP relationships we depend on in connection with our home improvement lending business. The loss of any of these relationships, our failure to develop additional relationships, and circumstances in which our existing dealer, contractor, and FSP relationships generate decreased sales and loan volume all may have a material adverse effect on our business, financial condition and results of operations.

We borrow money, which magnifies the potential for gain or loss on amounts invested, and increases the risk of investing in us.

Borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested, and therefore increase the risk associated with investing in us. We borrow from and issue senior debt securities to banks and other lenders, and through long-term subordinated SBA debentures. These creditors have fixed dollar claims on our assets that are superior to the claims of our shareholders. If the value of our assets increases, then leveraging would cause the net asset value to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net income to increase more than it would without the leverage, while any decrease in our income would cause net income to decline more sharply than it would have had we not borrowed. Such a decline could reduce the amount available for distribution payments.

As of December 31, 2018, we had $1,062,028,000 of outstanding indebtedness, with a weighted average borrowing cost of 2.67%.

Most of our borrowing relationships have maturity dates during 2019 through 2021. We have been in active and ongoing discussions with each of these lenders and have extended each of the facilities as they matured. Certain lenders have worked with us to extend and change the terms of the borrowing agreements. See Note 7 of our consolidated financial statements for a discussion of the current and new lending arrangements to date.

Failure to obtain an extension of our existing credit facilities or failure to obtain additional revolving credit facilities could have a material adverse effect on our results of operations and financial position.

We utilize secured revolving credit facilities and other facilities to fund our investments. We cannot guarantee that our credit facilities will continue to be available beyond their current maturity dates on reasonable terms or at all or that we will be able to otherwise obtain funds by selling assets or raising equity to make required payments on maturing indebtedness. Our revolving credit facilities have converted to term loans. Obtaining additional revolving credit facilities or other alternative sources of financing may be difficult and we cannot guarantee that we will be able to do so on terms favorable to us or at all. The availability of revolving credit facilities depends, in part, on factors outside of our control, including regulatory capital treatment for unfunded bank lines of credit, the financial strength and strategic objectives of the banks that participate in our credit facilities and the availability of bank liquidity in general. If the credit facilities are not renewed or extended by our lenders by their maturity dates, we will not be able to make further borrowings under the facilities after

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they mature and the outstanding principal balances under such facilities will be due and payable at maturity. If we are unable to refinance our indebtedness at maturity or meet our payment obligations, our financial condition would be adversely affected and our lenders may foreclose on the property securing such indebtedness. If we are unable to extend or replace these facilities or arrange new credit facilities or other types of interim financing, we may need to curtail or suspend loan origination and funding activities which could have a material adverse effect on our results of operations and financial position.

Our use of brokered deposits for our deposit-gathering activities may not be available when needed. The inability to accept and renew brokered deposits would have a material adverse effect on our business, financial condition, liquidity and results of operations.

We rely on the established brokered deposit market to originate deposits to fund our operations. Additionally, our business, strategy and prospects are dependent on our ability to accept and renew brokered deposits without limitation and, therefore, dependent on our ability to be “well-capitalized” under the FDIC’s regulatory framework.

Our brokered deposits consist of deposits raised through the brokered deposit market rather than through retail branches. Although we have developed contractual relationships with a diversified group of investment brokers, and the brokered deposit market is well developed and utilized by many banking institutions, conditions could change that might affect the availability of brokered deposits. In addition, our ability to rely on brokered deposits as a source of funding is subject to capitalization requirements set forth in the FDIC’s prompt corrective action framework. We may not accept or renew brokered deposits unless we are “well-capitalized” or we are “adequately capitalized” and we receive a waiver from the FDIC. A bank that is “adequately capitalized” and that accepts or renews brokered deposits under a waiver from the FDIC is subject to additional restrictions on the interest rates it may offer. See “Supervision and Regulation” for additional information.

If our capital levels fall below the “well-capitalized” level as defined by the FDIC our ability to raise brokered deposits would be materially impaired. If our capital levels fall below the “adequately capitalized” level as defined by the FDIC, we would be unable to raise brokered deposits. Any impairment or inability to raise brokered deposits would have a material adverse effect on our business, financial condition, liquidity and results of operations. Brokered deposits may also not be as stable as other types of deposits, and if we experience a period of sustained operating losses, the cost of attracting deposits from the brokered deposit market could increase significantly. Our ability to manage our growth to stay within the “well-capitalized” level is critical to our ability to retain open access to this funding source.

The issuance of debt securities or preferred stock and our borrowing money from banks or other financial institutions may affect holders of our common stock.

Our business may periodically require capital. We may issue debt securities or preferred stock, and/or borrow money from banks or other financial institutions, which we refer to collectively as senior securities. Any amounts that we use to service our debt or make payments on preferred stock will not be available for distributions to our common shareholders. It is likely that any senior securities we issue will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. Additionally, some of these securities or other indebtedness may be rated by rating agencies, and in obtaining a rating for such securities and other indebtedness, we may be required to abide by operating and investment guidelines that further restrict operating and financial flexibility. We and, indirectly, our shareholders will bear the cost of issuing and servicing such securities and other indebtedness. Preferred stock or any convertible or exchangeable securities that we issue in the future may have rights, preferences, and privileges more favorable than those of our common stock, including separate voting rights, and could delay or prevent a transaction or a change in control to the detriment of the holders of our common stock.

If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our shareholders at that time would decrease

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and they may experience dilution. Moreover, we can offer no assurance that we will be able to issue and sell additional equity securities in the future, on favorable terms or at all.

We are dependent upon our key investment personnel for our future success.

We depend on the diligence, skill, and network of business contacts of the investment professionals we employ for sourcing, evaluating, negotiating, structuring, and monitoring our investments. Our future success will also depend, to a significant extent, on the continued service and coordination of our senior management team, particularly, Alvin Murstein, our Chairman and Chief Executive Officer, Andrew M. Murstein, our President, Larry D. Hall, our Chief Financial Officer, Donald Poulton and his management team for Medallion Bank, and Alex Travis and his management team at Medallion Capital. The departure of Messrs. Murstein or Mr. Hall, or any other member of our senior management team, could have a material adverse effect on our business and financial results.

Changes in taxicab industry regulations that result in the issuance of additional medallions or increases in the expenses involved in operating a medallion would decrease the value of our medallion loan collateral and our Chicago medallions purchased out of foreclosure.

Every city in which we originate medallion loans, and most other major cities in the United States, limits the supply of taxicab medallions. This regulation results in supply restrictions that support the value of medallions. Actions that loosen these restrictions and result in the issuance of additional medallions into a market could decrease the value of medallions in that market. If this were to occur, the value of the collateral securing our then outstanding medallion loans in that market would be adversely affected. We are unable to forecast with any degree of certainty whether any other potential increases in the supply of medallions will occur.

In New York City, Chicago, Boston, and other markets where we originate medallion loans, taxicab fares are generally set by government agencies. Expenses associated with operating taxicabs are largely unregulated. As a result, the ability of taxicab operators to recoup increases in expenses is limited in the short term. Escalating expenses, such as rising gas prices and an increase in interest rates, can render taxicab operations less profitable, could cause borrowers to default on loans from us and would adversely affect the value of our collateral.

We operate in a highly regulated environment, and if we are found to be in violation of any of the federal, state, or local laws or regulations applicable to us, our business could suffer.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, was enacted in 2010. The Dodd-Frank Act significantly changed federal financial services regulation and affects, among other things, the lending, deposit, investment, trading, and operating activities of financial institutions and their holding companies. In addition to the statutory requirements under the Dodd-Frank Act, the legislation also delegated authority to U.S. banking, securities and derivatives regulators to impose additional restrictions through required rulemaking. The Dodd-Frank Act requires a company that owns an industrial bank to serve as a “source of strength” to the institution and is also subject to the “Volcker Rule.” Although these requirements have not materially impacted us, we cannot assure you that they will not in the future.

Other changes in the laws or regulations applicable to us more generally, may negatively impact the profitability of our business activities, require us to change certain of our business practices, materially affect our business model, limit the activities in which we may engage, affect retention of key personnel, require us to raise additional regulatory capital, increase the amount of liquid assets that we hold, or otherwise affect our funding profile or expose us to additional costs (including increased compliance costs). Any such changes may also require us to invest significant management attention and resources to make any necessary changes and may adversely affect our ability to conduct our business as previously conducted or our results of operations or financial condition.

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We are also subject to a wide range of federal, state, and local laws and regulations, such as local licensing requirements, and retail financing, debt collection, consumer protection, environmental, health and safety, creditor, wage-hour, anti-discrimination, whistleblower and other employment practices laws and regulations and we expect these costs to increase going forward. The violation of these or future requirements or laws and regulations could result in administrative, civil, or criminal sanctions against us, which may include fines, a cease and desist order against the subject operations or even revocation or suspension of our license to operate the subject business. As a result, we have incurred and will continue to incur capital and operating expenditures and other costs to comply with these requirements and laws and regulations.

Changes in laws, regulations, or policies may adversely affect our business.

The post-financial crisis era has been marked by an increase in regulation, regulatory intensity, and enforcement. We are unable to predict the ways in which this change in the regulatory environment could impact our business models or objectives. The laws and regulations governing our lending, servicing, and debt collection activities or the regulatory or enforcement environment at the federal level or in any of the states in which we operate may change at any time which may have an adverse effect on our business.

We expect, however, to see an increase over time in regulatory scrutiny and enforcement in the area of consumer financial products regulation, as a result of the establishment of the Consumer Financial Protection Bureau, or the CFPB, by the Dodd-Frank Act. The CFPB is responsible for interpreting and enforcing a broad range of consumer protection laws that govern the provision of deposit accounts and the making of loans, including the regulation of mortgage lending and servicing and automobile finance. While Medallion Bank’s size currently falls below the threshold that would give the CFPB direct authority over it, Medallion Bank’s existing bank supervisors may pursue similar policies and make similar information requests to those of the CFPB with respect to consumer financial products and other matters within the scope of the CFPB’s authority. We believe that the CFPB’s regulatory reforms, together with other provisions of the Dodd-Frank Act, and increased regulatory supervision, may increase our cost of doing business, impose new restrictions on the way in which we conduct our business, or add significant operational constraints that might impair our profitability.

We are unable to predict how these or any other future legislative proposals or programs will be administered or implemented or in what form, or whether any additional or similar changes to statutes or regulations, including the interpretation or implementation thereof, will occur in the future. Any such action could affect us in substantial and unpredictable ways and could have an adverse effect on our results of operations and financial condition.

Our inability to remain in compliance with regulatory requirements in a particular jurisdiction could have a material adverse effect on our operations in that market and on our reputation generally. No assurance can be given that applicable laws or regulations will not be amended or construed differently or that new laws and regulations will not be adopted, either of which could materially adversely affect our business, financial condition, or results of operations.

Federal and state law may discourage certain acquisitions of our common stock which could have a material adverse effect on our shareholders.

Because Medallion Bank is an “insured depository institution” within the meaning of the Federal Deposit Insurance Act and the Change in Bank Control Act and we are 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 us and, indirectly Medallion Bank, 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 our 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 a number of specified “control

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factors” as set forth in the applicable regulations. Under the Utah Financial Institutions Act, control is defined as the power to vote 20% or more of any class of our voting securities by an individual or to vote more than 10% of any class of our voting securities by a person other than an individual. 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. These provisions could delay or prevent a third party from acquiring us, despite the possible benefit to our shareholders, or otherwise adversely affect the market price of our common stock. Although Medallion 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 Medallion Financial Corp. is not insured or guaranteed by the FDIC, or any other agency, and is subject to loss.

The banking industry is highly regulated, and the regulatory framework, together with any future legislative or regulatory changes, may have a significant adverse effect on our operations.

The banking industry is extensively regulated and supervised under both federal and state laws and regulations that are intended primarily for the protection of depositors, customers, federal deposit insurance funds, and the banking system as a whole, not for the protection of our stockholders and creditors. We are subject to regulation and supervision by the FDIC and the Utah Department of Financial Institutions. The laws and regulations applicable to us govern a variety of matters, including permissible types, amounts, and terms of loans and investments we may make, the maximum interest rate that may be charged, the amount of reserves we must hold against deposits we take, the types of deposits we may accept, maintenance of adequate capital and liquidity, changes in the control of Medallion Bank and us, restrictions on dividends, and establishment of new offices. As long as we remain well-capitalized under federal regulatory standards, there are no restrictions on the rates we may pay on brokered deposits. We must obtain approval from our regulators before engaging in certain activities or acquisitions, and there is the risk that such approvals may not be obtained, either in a timely manner or at all. Our regulators also have the ability to compel us to take, or restrict us from taking, certain actions entirely, such as actions that our regulators deem to constitute an unsafe or unsound banking practice. Our failure to comply with any applicable laws or regulations, or regulatory policies and interpretations of such laws and regulations, could result in sanctions by regulatory agencies, civil money penalties, or damage to our reputation, all of which could have a material adverse effect our business, financial condition or results of operations.

Since the 2007-2009 recession, federal and state banking laws and regulations, as well as interpretations and implementations of these laws and regulations, have undergone substantial review and change. In particular, the Dodd-Frank Act drastically revised the laws and regulations under which we operate. Financial institutions generally have also been subjected to increased scrutiny from regulatory authorities. These changes and increased scrutiny have resulted and may continue to result in increased costs of doing business and may in the future result in decreased revenues and net income, reduce our ability to effectively compete to attract and retain customers, or make it less attractive for us to continue providing certain products and services. Any future changes in federal and state law and regulations, as well as the interpretations and implementations, or modifications or repeals, of such laws and regulations, could affect us in substantial and unpredictable ways, including those listed above or other ways that could have a material adverse effect on our business, financial condition or results of operations.

Our SBIC subsidiaries are licensed by the SBA, and are therefore subject to SBA regulations.

Our SBIC subsidiaries are licensed to operate as SBICs and are regulated by the SBA. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs from providing funds for certain purposes or to businesses in a few prohibited industries. Compliance with SBA requirements may cause the SBIC subsidiaries to forego attractive investment opportunities that are not permitted under SBA regulations.

Further, SBA regulations require that a licensed SBIC be periodically examined and audited by the SBA to determine its compliance with the relevant SBA regulations. The SBA prohibits, without prior SBA approval, a

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“change of control” of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10% or more of a class of capital stock of an SBIC. If the SBIC subsidiaries fail to comply with applicable SBIC regulations, the SBA could, depending on the severity of the violation, limit or prohibit their use of debentures, declare outstanding debentures immediately due and payable, and/or limit them from making new investments. In addition, the SBA could revoke or suspend an SBIC license or bring a suit for the appointment of a receiver for the SBIC and for its liquidation for willful or repeated violation of, or willful or repeated failure to observe, any provision of the SBIA or any rule or regulation promulgated thereunder. Such actions by the SBA would, in turn, negatively affect us.

Non-compliance with the USA PATRIOT Act, the Bank Secrecy Act or other laws and regulations could result in fines or sanctions against us.

The USA PATRIOT Act of 2001 and the Bank Secrecy Act require financial institutions to design and implement programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury Department’s Office of Financial Crimes Enforcement Network (FinCEN). These rules require financial institutions to establish procedures for identifying and verifying the identity of customers and beneficial owners of certain legal entity customers seeking to open new financial accounts. Federal and state bank regulators also have focused on compliance with Bank Secrecy Act and anti-money laundering regulations. Failure to comply with these regulations could result in fines or sanctions, including restrictions on conducting acquisitions or expanding activities. During the last several years, a number of banking institutions have received large fines for non-compliance with these laws and regulations. Although we have policies and procedures designed to assist in compliance with the Bank Secrecy Act and other anti-money laundering laws and regulations, there can be no assurance that such policies or procedures will work effectively all of the time or protect us against liability for actions taken by our employees, agents, and intermediaries with respect to our business or any businesses that we may acquire. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us, which could have a material adverse effect on our business, financial condition or results of operations.

Regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and adversely affect our business opportunities.

We are subject to various privacy, information security, and data protection laws, including requirements concerning security breach notification, and we could be negatively affected by these laws. For example, our business is subject to the Gramm-Leach-Bliley Act which, among other things: (i) imposes certain limitations on our ability to share nonpublic personal information about our customers with nonaffiliated third parties; (ii) requires that we provide certain disclosures to customers about our information collection, sharing and security practices and afford customers the right to “opt out” of any information sharing by us with nonaffiliated third parties (with certain exceptions); and (iii) requires that we develop, implement and maintain a written comprehensive information security program containing safeguards appropriate based on our size and complexity, the nature and scope of our activities, and the sensitivity of customer information we process, as well as plans for responding to data security breaches. Various state and federal banking regulators and states have also enacted data security breach notification requirements with varying levels of individual, consumer, regulatory or law enforcement notification in certain circumstances in the event of a security breach. Moreover, legislators and regulators in the United States are increasingly adopting or revising privacy, information security, and data protection laws that potentially could have a significant impact on our current and planned privacy, data protection, and information security-related practices, our collection, use, sharing, retention and safeguarding of consumer or employee information, and some of our current or planned business activities. This could also increase our costs of compliance and business operations and could reduce income from certain business initiatives. This includes increased privacy-related enforcement activity at the federal level, by the Federal Trade Commission, as well as at the state level.

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Compliance with current or future privacy, data protection, and information security laws (including those regarding security breach notification) affecting customer or employee data to which we are subject could result in higher compliance and technology costs and could restrict our ability to provide certain products and services, which could have a material adverse effect on our business, financial conditions or results of operations. Our failure to comply with privacy, data protection, and information security laws could result in potentially significant regulatory or governmental investigations or actions, litigation, fines, sanctions, and damage to our reputation, which could have a material adverse effect on our business, financial condition, or results of operations.

Having withdrawn our election to be regulated as a BDC, we must maintain an exception from registration under the 1940 Act which could limit our ability to take advantage of attractive investment opportunities, and the failure to maintain that exception could have material adverse consequences on our business.

A company that meets the definition of an “investment company” under the 1940 Act, in the absence of an exception or exemption, must either register with the SEC as an investment company or elect BDC status. Historically, the composition of the Company’s assets caused us to meet the definition of an “investment company,” and the Company made a corresponding election to be treated as a BDC. The Company has de-elected BDC status, and now operates so as to fall outside the definition of an “investment company” or within an applicable exception. The Company expects to fall within the exception from the definition of an “investment company” provided under Section 3(c)(6) of the 1940 Act as a company primarily engaged, directly or through majority-owned subsidiaries, in the business of, among other things, (i) banking, (ii) purchasing and otherwise acquiring notes, drafts, acceptances, open accounts receivable, and other obligations representing part or all of the sales price of merchandise, insurance and services, and (iii) making loans to manufacturers, wholesalers, and retailers of, and to prospective purchasers of, specified merchandise, insurance, and services. The Company is required to monitor its continued compliance with this exception, which could limit our ability to take advantage of attractive investment opportunities that would cause us to be out of compliance with its limitations and could have a material adverse effect on our business. For example, we could be limited in growing Medallion Capital, Inc., which is currently engaged in a business that generally does not qualify for the exception.

If the SEC or a court were to find that we were required, but failed, to register as an investment company in violation of the 1940 Act, we may have to cease business activities, we would breach representations and warranties and/or be in default as to certain of our contracts and obligations, civil or criminal actions could be brought against us, our contracts would be unenforceable unless a court were to require enforcement and a court could appoint a receiver to take control of us and liquidate our business, any or all of which could have a material adverse effect on our business.

We operate in a highly competitive market for investment opportunities.

We compete for loans/investments with other business development companies and other investment funds, as well as traditional financial services companies such as commercial banks and credit unions. Many of our competitors are substantially larger and have considerably greater financial, technical, and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships, and offer better pricing and more flexible structuring than us. We may be unwilling to match our competitors’ pricing, terms, and structure of certain loans and investments opportunities due to potential risks, which may result in us earning less income than our competitors. If we are forced to match our competitors’ pricing, terms, and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss.

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We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition, and results of operations. Also, as a result of this competition, we may not be able to take advantage of attractive investment opportunities from time to time.

Changes in interest rates may affect our cost of capital and net interest income.

Because we borrow to fund our loans and investments, a portion of our income is dependent upon the difference between the interest rate at which we borrow funds and the interest rate at which we invest these funds. A portion of our investments, such as taxi medallion loans, will have fixed interest rates, while a portion of our borrowings will likely have floating interest rates. As a result, a significant change in market interest rates could have a material adverse effect on our net investment income. In periods of rising interest rates, our cost of funds could increase, which would reduce our net investment income. We may hedge against interest rate fluctuations by using standard hedging instruments, subject to applicable legal requirements. These activities may limit our ability to participate in the benefits of lower interest rates with respect to the hedged portfolio. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition, and results of operations. Also, we will have to rely on our counterparties to perform their obligations under such hedges.

A decrease in prevailing interest rates may lead to more loan prepayments, which could adversely affect our business.

Our commercial borrowers generally have the right to prepay their loans upon payment of a fee ranging from 1% to 2% for standard loans, and for higher amounts, as negotiated, for larger more custom loan arrangements. A borrower is likely to exercise prepayment rights at a time when the interest rate payable on the borrower’s loan is high relative to prevailing interest rates. In a lower interest rate environment, we will have difficulty re-lending prepaid funds at comparable rates, which may reduce the net interest income that we receive. When this occurs, we will generally reinvest these proceeds in temporary investments, pending their future investment in new portfolio companies. These temporary investments will typically have substantially lower yields than the debt being prepaid, and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if a substantial number of our portfolio companies elect to prepay amounts owed to us and we are not able to reinvest the proceeds for comparable yields in a timely fashion. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our common stock.

An increase in prevailing interest rates could adversely affect our business.

The majority of our loan portfolio is comprised of fixed-rate loans. An abrupt increase in market rates of interest may have an adverse impact on our earnings until we are able to originate new loans at higher prevailing interest rates.

We depend on cash flow from our subsidiaries to make distribution payments to our shareholders.

We are primarily a holding company, and we derive most of our operating income and cash flow from our subsidiaries. As a result, we rely heavily upon distributions from our subsidiaries to generate the funds necessary to make distribution payments to our shareholders. Funds are provided to us by our subsidiaries through dividends and payments on intercompany indebtedness, but we cannot assure you that our subsidiaries will be in a position to continue to make these dividend or debt payments. The Utah Department of Financial Institutions and FDIC have the authority to prohibit or to limit the payment of dividends by Medallion Bank. In addition, as a condition to receipt of FDIC insurance, Medallion Bank entered into a capital maintenance agreement with the FDIC requiring it to maintain a 15% Tier 1 leverage ratio (Tier 1 capital to average assets). As of December 31, 2018, Medallion Bank’s Tier 1 leverage ratio was 15.85%. We have not received dividends from Medallion Bank since 2016.

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Medallion Bank’s use of brokered deposit sources for its deposit-gathering activities may not be available when needed.

Medallion Bank relies on the established brokered deposit market to originate deposits to fund its operations. Medallion Bank’s brokered deposits consist of deposits raised through the brokered deposit market rather than through retail branches. While Medallion Bank has developed contractual relationships with a diversified group of investment brokers, and the brokered deposit market is well developed and utilized by many banking institutions, conditions could change that might affect the availability of deposits. Applicable statutes and regulations restrict the use of brokered deposits and the interest rates paid on such deposits for institutions that are less than “well-capitalized”. If the capital levels at Medallion Bank fall below the “well-capitalized” level as defined by the FDIC or the capital level currently required by the FDIC pursuant to its capital maintenance agreement, or if Medallion Bank experiences a period of sustained operating losses, the cost of attracting deposits from the brokered deposit market could increase significantly, and the ability of Medallion Bank to raise deposits from this source could be impaired. Brokered deposits may also not be as stable as other types of deposits. Medallion Bank’s ability to manage its growth to stay within the “well-capitalized” level, and the capital level currently required by the FDIC pursuant to its capital maintenance agreement, which is also considerably higher than the level required to be classified as “well-capitalized”, is critical to Medallion Bank’s retaining open access to this funding source.

Uncertainty relating to the reporting of collateral values for our loans may adversely affect the value of our portfolio.

Medallion loans are primarily collateral-based lending, whereby the collateral value exceeds the amount of the loan, providing sufficient excess collateral to protect us against losses. Despite our reliance on collateral values, medallions are income producing assets that generate cash flow which is utilized to repay our loans. We rely on the integrity of the collateral value benchmarks obtained by the applicable regulatory agencies and other third parties. If these benchmarks are artificially influenced by market participants we could suffer losses. We have experienced a significant downward movement in medallion collateral values which may continue, and has caused a negative impact on our valuation analysis and could result in further significant lower fair market value measurements of our portfolio.

We require an objective benchmark in determining the fair value of our portfolio. If the benchmarks that we currently use are deemed to be unreliable, we will need to use other intrinsic factors in determining the collateral values for our loans.

Our allowance for loan losses may prove to be insufficient to cover losses on our loans.

We maintain an allowance for loan losses (a reserve established through a provision for losses that decreases our earnings and that, accordingly, affects our financial condition) that we believe is appropriate to provide for incurred losses in our loan portfolio.

The process for establishing an allowance for loan losses is critical to our results of operations and financial condition, and requires complex models and judgments, including forecasts of economic conditions. Changes in economic conditions affecting borrowers, growth in our loan portfolio, changes in the credit characteristics of our loan portfolio, new information regarding our loans and other factors, both within and outside of our control, may require an increase in the allowance for loan losses. We may underestimate our incurred losses and fail to maintain an allowance for loan losses sufficient to account for these losses. In cases where we modify a loan, if the modified loans do not perform as anticipated, we may be required to establish additional allowances on these loans.

We periodically review and update our methodology, models and the underlying assumptions, estimates and assessments we use to establish our allowance for loan losses to reflect our view of current conditions. Moreover,

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our regulators, as part of their supervisory function, periodically review the methodology, models and the underlying assumptions, estimates and assessments we use for calculating, and the adequacy of, our allowance for loan losses. Our regulators, based on their judgment, may conclude that we should modify our methodology, models or the underlying assumptions, estimates and assessments, increase our allowance for loan losses, and/or recognize further losses. We continue to review and evaluate our methodology, models and the underlying assumptions, estimates, and assessments we use and we will implement further enhancements or changes to them, as needed. We cannot assure you that our loan loss reserves will be sufficient to cover actual losses. Future increases in the allowance for loan losses or recognized losses (as a result of any review, update, regulatory guidance, changes in accounting standards or otherwise) will result in a decrease in net earnings and capital and could have a material adverse effect on our business, results of operations, and financial condition.

The lack of liquidity in our investments may adversely affect our business.

We generally make investments in private companies. Substantially all of these securities are subject to legal and other restrictions on resale or are otherwise less liquid than publicly traded securities. The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded our investments. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we have material non-public information regarding such portfolio company.

In addition, the illiquidity of our loan portfolio and investments may adversely affect our ability to dispose of loans 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 the investments in the 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 rising interest rates, our cost of funds would increase, which would reduce our net operating income before net realized and unrealized gains. We use a combination of long-term and short-term borrowings and equity capital to finance our investing activities. Our long-term fixed-rate investments are financed primarily with short-term floating-rate debt, and to a lesser extent by term fixed-rate debt. We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities. 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 the line item “net income” as of December 31, 2018 by approximately $549,000 on an annualized basis, and the impact of such an immediate increase of 1% over a one year period would have been approximately ($1,012,000) at December 31, 2018. 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 increase in net assets resulting 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.

We may experience fluctuations in our quarterly results.

We could experience fluctuations in our quarterly operating results due to a number of factors, including our ability to originate loans that meet our investment criteria, the interest rate payable on the debt securities we acquire, the level of our expenses, variations in and the timing of the recognition of charge-offs and provision for loan losses, the degree to which we encounter competition in our markets, and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

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A reduction in demand for our products and failure by us to adapt to such reduction could adversely affect our business, financial condition and results of operations.

The demand for the products we offer may be reduced due to a variety of factors, such as demographic patterns, changes in customer preferences or financial conditions, regulatory restrictions that decrease customer access to particular products or the availability of competing products. If we fail to adapt to significant changes in our customers’ demand for, or access to, our products, our revenues could decrease and our operations could be adversely affected. Even if we do make changes to our product offerings to fulfill customer demand, customers may resist such changes or may reject such products. Moreover, the effect of any product change on the results of our business may not be fully ascertainable until the change has been in effect for some time, and, by that time, it may be too late to make further modifications to such product without causing further adverse effects to our business, results of operations and financial condition.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we collect and store sensitive data, including our proprietary business information and that of our customers and personally identifiable information of our customers and employees, in third-party data centers, and on our networks. The secure processing, maintenance, and transmission of this information is critical to our operations. Despite our security and business continuity measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions or vulnerable to other disruptions as a result of system failures, operational events, employee error or incidents affecting our third-party service providers (or providers to those third-party service providers). Any such breach or disruption could compromise our networks and the information stored there could be accessed, publicly disclosed, lost, destroyed or stolen. Any such access, disclosure, destruction or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information and regulatory penalties, disrupt our operations and damage our reputation, which could adversely affect our business. In addition, we may also be required to incur significant costs in connection with any regulatory investigation or civil litigation resulting from a security breach or other information technology disruption that affects us.

Our operations could be interrupted if certain external vendors on which we rely experience difficulty, terminate their services or fail to comply with banking laws and regulations.

We depend to a significant extent on relationships with third parties that provide services, primarily information technology services critical to our operations. Currently, we obtain services from third parties that include information technology infrastructure and support, plus loan origination, loan servicing, and accounting systems and support. If any of our third-party service providers experience difficulties or terminate their services and we are unable to replace our service providers with other service providers, our operations could be interrupted. It may be difficult for us to replace some of our third-party vendors, particularly vendors providing our loan origination, loan servicing and accounting services, in a timely manner if they are unwilling or unable to provide us with these services in the future for any reason. If an interruption were to continue for a significant period of time, it could have a material adverse effect on our business, financial condition or results of operations. Even if we are able to replace these third parties, it may be at higher cost to us, which could have a material adverse effect on our business, financial condition or results of operations. In addition, if a third-party provider fails to provide the services we require, fails to meet contractual requirements, such as compliance with applicable laws and regulations, or suffers a cyber-attack or other security breach, our business could suffer economic and reputational harm that could have a material adverse effect on our business, financial condition or results of operations.

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Our use of third-party vendors and our other ongoing third-party business relationships are subject to increasing regulatory requirements and attention.

We regularly use third-party vendors as part of our business. We also have substantial ongoing business relationships with other third parties. These types of third-party relationships are subject to increasingly demanding regulatory requirements and attention by our federal and state bank regulators. Recent regulation requires us to enhance our due diligence, ongoing monitoring and control over our third-party vendors and other ongoing third-party business relationships. In certain cases, we may be required to renegotiate our agreements with these vendors to meet these enhanced requirements, which could increase our costs and potentially limit our competitiveness. We expect that our regulators will hold us responsible for deficiencies in our oversight and control of our third-party relationships and in the performance of the parties with which we have these relationships. As a result, if our regulators conclude that we have not exercised adequate oversight and control over our third-party vendors or other ongoing third-party business relationships or that such third parties have not performed appropriately, we could be subject to enforcement actions, including civil money penalties or other administrative or judicial penalties or fines as well as requirements for customer remediation, any of which could have a material adverse effect our business, financial condition or results of operations.

Our business depends on our ability to adapt to rapid technological change.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new, technology-driven products and services. The effective use of technology increases efficiency and enables financial institutions to serve customers better and to reduce costs. Our future success depends, in part, upon our ability to address the needs of customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in our operations. Many of our competitors have substantially greater resources to invest in technological improvements than we do. We may not be able to effectively implement new, technology-driven products and services or be successful in marketing these products and services to our customers. In addition, the implementation of technological changes and upgrades to maintain current systems and integrate new ones may also cause service interruptions, transaction processing errors and system conversion delays and may cause us to fail to comply with applicable laws. Failure to successfully keep pace with technological change affecting the financial services industry and failure to avoid interruptions, errors and delays could have a material adverse effect on our business, financial condition or results of operations.

We expect that new technologies and business processes applicable to the banking industry will continue to emerge, and these new technologies and business processes may be better than those we currently use. Because the pace of technological change is high and our industry is intensely competitive, we may not be able to sustain our investment in new technology as critical systems and applications become obsolete or as better ones become available. A failure to maintain current technology and business processes could cause disruptions in our operations or cause our products and services to be less competitive, all of which could have a material adverse effect on our business, financial condition or results of operations.

We depend on the accuracy and completeness of information about customers.

In deciding whether to extend credit or enter into other transactions, and in evaluating and monitoring our loan portfolio on an ongoing basis, we may rely on information furnished by or on behalf of customers, including financial statements, credit reports and other financial information. We may also rely on representations of those customers or of other third parties, such as independent auditors, as to the accuracy and completeness of that information. Reliance on inaccurate, incomplete, fraudulent or misleading financial statements, credit reports or other financial or business information, or the failure to receive such information on a timely basis, could result in loan losses, reputational damage or other effects that could have a material adverse effect on our business, financial condition or results of operations.

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Terrorist attacks, other acts of violence or war, and natural disasters may affect any market for our securities, impact the businesses in which we invest, and harm our operations and profitability.

Terrorist attacks and natural disasters may harm our results of operations and your investment. We cannot assure you that there will not be further terrorist attacks against the U.S. or U.S. businesses or major natural disasters hitting the United States. Such attacks or natural disasters in the U.S. or elsewhere may impact the businesses in which we directly or indirectly invest by undermining economic conditions in the United States. In addition, a substantial portion of our business is focused in the New York City metropolitan area, which suffered a terrorist attack in 2001 and has faced continued threats. Another terrorist attack in New York City or elsewhere could severely impact our results of operations. Losses resulting from terrorist attacks are generally uninsurable.

Our financial condition and results of operations will depend on our ability to manage growth effectively.

Our ability to achieve our loan and investment objective will depend on our ability to grow, which will depend, in turn, on our management team’s ability to identify, evaluate, and monitor, and our ability to finance and invest in, companies that meet our investment criteria.

Accomplishing this result on a cost-effective basis will be largely a function of our management team’s handling of the investment process, its ability to provide competent, attentive, and efficient services, and our access to financing on acceptable terms. In addition to monitoring the performance of our existing investments, members of our management team and our investment professionals may also be called upon to provide managerial assistance to our portfolio companies. These demands on their time may distract them or slow the rate of investment. In order to grow, we will need to hire, train, supervise, and manage new employees. However, we cannot assure you that any such employees will contribute to the success of our business. Any failure to manage our future growth effectively could have a material adverse effect on our business, financial condition, and results of operations.

Our ability to enter into transactions with our affiliates is restricted.

The SBA restricts the ability of SBICs to lend money to any of their officers, directors, and employees, or invest in any affiliates thereof.

Medallion Bank is subject to certain federal laws that restrict and control its ability to engage in transactions with its affiliates. Sections 23A and 23B of the Federal Reserve Act and applicable regulations restrict the transfer of funds by Medallion Bank to certain of its affiliates, including us, in the form of loans, extensions of credit, investments, or purchases of assets and restrict its ability to provide services to, or receive services from, its affiliates. Sections 23A and 23B also require generally that Medallion Bank’s transactions with its affiliates be on terms no less favorable to Medallion Bank than comparable transactions with unrelated third parties.

Current or former employee misconduct could expose us to significant legal liability and reputational harm.

We are vulnerable to reputational harm because we operate in an industry in which integrity and the confidence of the dealerships, contractors and FSPs that sell our consumer products are of critical importance. Our employees could engage, or our former directors, employees, or our controlling shareholder could have engaged, in misconduct that adversely affects our business. For example, if such a person were to engage, or previously engaged, in fraudulent, illegal or suspicious activities, we could be subject to regulatory sanctions and suffer serious harm to our reputation (as a consequence of the negative perception resulting from such activities), financial position, third-party relationships and ability to forge new relationships with third-party dealers or contractors. Our business often requires that we deal with confidential information. If our employees were to improperly use or disclose this information, or if former directors, employees, or our controlling shareholder

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previously improperly used or disclosed this information, even if inadvertently, we could suffer serious harm to our reputation, financial position and current and future business relationships. It is not always possible to deter employee misconduct, and the precautions we take to detect and prevent this activity may not always be effective. Misconduct by our employees or former directors, employees, or our controlling shareholder, or even unsubstantiated allegations of misconduct, could result in a material adverse effect on our business, financial condition or results of operations

Risks Relating to Our Loan Portfolios and Investments

Lending to small businesses involves a high degree of risk and is highly speculative.

Lending to small businesses involves a high degree of business and financial risk, which can result in substantial losses and should be considered speculative. Historically, our borrower base consists primarily of small business owners that may have limited resources and that are generally unable to obtain financing from traditional sources. There is generally no publicly available information about these small business owners, and we must rely on the diligence of our employees and agents to obtain information in connection with our credit decisions. In addition, these small businesses often do not have audited financial statements. Some smaller businesses have narrower product lines and market shares than their competition. Therefore, they may be more vulnerable to customer preferences, market conditions, or economic downturns, which may adversely affect the return on, or the recovery of, our investment in these businesses.

Our portfolio is and may continue to be concentrated in a limited number of portfolio companies, and industries and sectors, which will subject us to a risk of significant loss if any of these companies defaults on its obligations to us or by a downturn in the particular industry or sector.

Our portfolio is and may continue to be concentrated in a limited number of portfolio companies, and industries and sectors. In addition, taxicab companies that constitute separate issuers may have related management or guarantors and constitute larger business relationships to us. As of December 31, 2018, New York City taxi medallion loans represented approximately 87% of our taxi medallion loans, which in turn represented 16% of our net loan portfolio. We do not have fixed guidelines for diversification, and while we are not targeting any specific industries, our investments are, and could continue to be, concentrated in relatively few industries. As a result, the aggregate returns we realize may be adversely affected if a small number of loans perform poorly or if we need to write down the value of any one loan. If our larger borrowers were to significantly reduce their relationships with us and seek financing elsewhere, the size of our loan portfolio and operating results could decrease. In addition, larger business relationships may also impede our ability to immediately foreclose on a particular defaulted portfolio company as we may not want to impair an overall business relationship with either the portfolio company management or any related funding source. Additionally, a downturn in any particular industry or sector in which we are invested could also negatively impact the aggregate returns we realize.

If we are unable to continue to diversify geographically, our business may be further adversely affected if New York City experiences a sustained economic downturn.

Historically, a significant portion of our loan revenue is derived from medallion loans collateralized by New York City taxicab medallions. An economic downturn in New York City could lead to an additional increase in defaults on our medallion loans. We cannot assure you that we will be able to sufficiently diversify our operations geographically.

An economic downturn could result in additional commercial and consumer loan customers experiencing declines in business activities and/or personal resources, which could lead to difficulties in their servicing of their loans with us, and increasing the level of delinquencies, defaults, and loan losses in our commercial and consumer loan portfolios.

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Laws and regulations implemented in response to climate change could result in increased operating costs for our portfolio companies.

Congress and other governmental authorities have either considered or implemented various laws and regulations in response to climate change and the reduction of greenhouse gases. Existing environmental regulations could be revised or reinterpreted, new laws and regulations could be adopted, and future changes in environmental laws and regulations could occur, which could impose additional costs on the operation of our portfolio companies. For example, regulations to cut gasoline use and control greenhouse gas emissions from new cars could adversely affect our medallion portfolio companies. Our portfolio companies may have to make significant capital and other expenditures to comply with these laws and regulations. Changes in, or new, environmental restrictions may force our portfolio companies to incur significant expenses or expenses that may exceed their estimates. There can be no assurance that such companies would be able to recover all or any increased environmental costs from their customers or that their business, financial condition or results of operations would not be materially and adversely affected by such expenditures or any changes in environmental laws and regulations, in which case the value of these companies could be adversely affected.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

We invest in our portfolio companies primarily through senior secured loans, junior secured loans, and subordinated debt issued by small- to mid-sized companies. Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization, or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization, or bankruptcy of the relevant portfolio company.

There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

Even though we may have structured most of our investments as senior loans, if one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might recharacterize our debt investment and subordinate all or a portion of our claim to that of other creditors. We may also be subject to lender liability claims for actions taken by us with respect to a borrower’s business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender’s liability claim, including as a result of actions taken in rendering significant managerial assistance.

We may not control many of Medallion Capital’s portfolio companies.

We may not control many of Medallion Capital’s portfolio companies, even though we may have board representation or board observation rights. As a result, we are subject to the risk that a Medallion Capital portfolio company in which we invest may make business decisions with which we disagree, and the management of such company may take risks or otherwise act in ways that do not serve our interests as debt investors.

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We may not realize gains from our equity investments.

Certain investments that we have made in the past and may make in the future include warrants or other equity securities. In addition, we may from time to time make non-control, equity co-investments in companies in conjunction with private equity sponsors. Our goal is ultimately to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization, or public offering, which would allow us to sell the underlying equity interests.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

We lease office space in New York City for our corporate headquarters under a lease expiring in April 2027. We also lease office space for loan origination offices and subsidiary operations in Long Island City, New York, Newark, New Jersey and Chicago, Illinois, which, along with our New York City office, handles our medallion loan segment, and Minneapolis, Minnesota, which handles our commercial lending segment. Medallion Bank leases office space in Salt Lake City, Utah under a lease expiring in November 2023, which handles the recreation and home improvement lending segments, and Bothell, Washington, which handles our home improvement lending segment. We do not own any real property, other than foreclosed properties obtained as a result of lending relationships. We believe that our leased properties, taken as a whole, are in good operating condition and are suitable for our current business operations.

ITEM 3. LEGAL PROCEEDINGS

We are currently involved in various legal proceedings incident to the ordinary course of our business, including collection matters with respect to certain loans. We intend to vigorously defend any outstanding claims and pursue our legal rights. In the opinion of our management and based upon the advice of legal counsel, other than as set forth in the following paragraph 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 effect on our results of operations or financial condition.

On December 20, 2017, a stockholder derivative action was filed in the Supreme Court of the State of New York, County of New York (Shields v. Murstein, et al.). The complaint named us as a nominal defendant and purports to assert claims derivatively on our behalf against certain of our current directors, one of our former directors, and a former independent contractor for one of our subsidiaries. The complaint alleged that the director defendants breached their fiduciary duties with respect to certain alleged misconduct by the former independent contractor involving postings about us under an alleged pseudonym. On January 25, 2018, we and the director defendants filed a motion to dismiss the action. On June 27, 2018, a hearing was held on the motion. On November 26, 2018, the Court entered a decision granting the motion. On December 17, 2018, the Court entered an order dismissing the plaintiff’s complaint with prejudice. The time for the plaintiff to appeal the Court’s order has elapsed.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

STOCK PERFORMANCE GRAPH

The following graph commences as of December 31, 2013 and compares the Company’s Common Stock with the cumulative total return for the NASDAQ Composite Index and the Russell 2000 Index. Furthermore, the following graph assumes the investment of $100 on December 31, 2013 in each of the Company’s Common Stock, the stocks comprising the NASDAQ Composite Index and the Russell 2000 Index and assumes dividends are reinvested.

Cumulative Total Return

Based on Initial Investment of $100 on December 31, 2013

with dividends reinvested

Our common stock is quoted on NASDAQ under the symbol “MFIN.” Our common stock commenced trading on May 23, 1996. As of March 11, 2019, there were approximately 324 holders of record of our common stock. On March 11, 2019, the last reported sale price of our common stock was $6.60 per share.

We are subject to federal and applicable state corporate income taxes on our taxable ordinary income and capital gains, and are not subject to the annual distribution requirements under Subchapter M of the Code. Thus, there can be no assurance that we will pay any cash distributions as we may retain our earnings in certain circumstances to facilitate the growth of our business, to finance our investments, to provide liquidity or for other corporate purposes. We have not paid dividends since 2016 and do not currently anticipate paying dividends. We may, however, re-evaluate paying dividends in the future depending on market conditions.

We have adopted a dividend reinvestment plan pursuant to which shareholders may elect to have distributions reinvested in additional shares of common stock. When we declare a distribution, all participants will have credited to their plan accounts the number of full and fractional shares (computed to three decimal places) that could be obtained with the cash, net of any applicable withholding taxes that would have been paid to them if they were not participants. The number of full and fractional shares is computed at the weighted average price of all shares of common stock purchased for plan participants within the 30 days after the distribution is declared plus brokerage commissions. The automatic reinvestment of distributions will not release plan participants of any income tax that may be payable on the distribution. Shareholders may terminate their participation in the dividend reinvestment plan by providing written notice to the Plan Agent at least 10 days before any given distribution payment date. Upon termination, we will issue to a shareholder both a certificate

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for the number of full shares of common stock owned and a check for any fractional shares, valued at the then current market price, less any applicable brokerage commissions and any other costs of sale. There are no additional fees or expenses for participation in the dividend reinvestment plan. Shareholders may obtain additional information about the dividend reinvestment plan by contacting the American Stock Transfer & Trust Company, LLC at 6201 15th Avenue, Brooklyn, NY, 11219.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We did not repurchase any of our shares during the three months ended December 31, 2018. Accordingly, under our Stock Repurchase Program previously authorized by our Board of Directors, up to 22,874,509 shares remain authorized for repurchase under the program.

ITEM 6. SELECTED FINANCIAL DATA

Summary Consolidated Financial Data

You should read the consolidated financial information below with the Consolidated Financial Statements and Notes thereto included in this report. As described therein, for the nine months ended December 31, 2018, the Company reported under Bank Holding Company Accounting.

(Dollars in thousands, except per share data)	Nine Months Ended December 31, 2018
Statement of operations
Net interest income	$	71,987
Provision for loan losses		59,008
Non-interest income (expense), net		(20,135	)
Net loss before taxes		(7,156	)
Income tax provision		(709	)
Less non-controlling interest		2,307
Net loss after taxes		(10,172	)
Per share data
Net loss after taxes		(0.42	)
Distributions per share		0.00
Weighted average common shares outstanding
Diluted		24,234,633
Balance sheet data
Net loans receivable	$	981,487
Total assets		1,381,846
Total borrowings		1,062,028
Total liabilities		1,091,642
Total equity (3)		290,204
Selected financial ratios
Return on average assets (ROA)		(0.90	%)
Return on average equity (ROE)		(4.62	)
Dividend payout ratio		0.00
Net interest margin		8.19
Other income ratio (1)		1.88
Total expense ratio (2)		9.77
Equity to assets (3)		21.00
Debt to equity (3)		365.96
Loans receivable to assets		71.03
Net charge-offs		22,613
Net charge-offs as a % of average loans receivable		2.73	%
Allowance coverage ratio		3.58

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(1) Other income ratio represents other income divided by average interest earning assets, and excludes the gain on the deconsolidation of Trust III of $25,325. See Note 23 for additional information.

(2) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average interest earning assets, and includes the goodwill impairment of $5,615.

(3) Includes $27,596 related to non-controlling interest in consolidated subsidiaries.

You should read the consolidated financial information below with the Consolidated Financial Statements and Notes thereto included in this report. As described therein, for the three months ended March 31, 2018, and the years ended December 31, 2017, 2016, 2015 and 2014, the Company reported under Investment Company Accounting.

	Three Months Ended March 31,			Year Ended December 31,
(Dollars in thousands, except per share data)	2018			2017			2016			2015			2014
Statement of operations
Investment income	$	4,033		$	19,624		$	25,088		$	42,653		$	41,068
Interest expense		3,551			13,770			12,638			9,422			8,543
Net interest income		482			5,854			12,450			33,231			32,525
Noninterest income		60			107			408			319			509
Operating expenses		4,108			13,810			22,786			16,724			17,889
Net investment income (loss) before income taxes		(3,566	)		(7,849	)		(9,928	)		16,826			15,145
Income tax benefit		336			728			10,047			—			—
Net investment income (loss) after income taxes		(3,230	)		(7,121	)		119			16,826			15,145
Net realized gains (losses) on investments		(34,745	)		(43,744	)		457			7,636			(5,607	)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries (1)		29,115			9,483			130,121			16,830			15,643
Net change in unrealized appreciation (depreciation) on investments (1)		(1,915	)		8,222			(22,863	)		(2,295	)		6,412
Net change in unrealized depreciation on investments other than securities		(4,403	)		(2,060	)		(28,372	)		(9,621	)		(2,901	)
Income tax (provision) benefit		304			35,498			(55,947	)		—			—
Net increase (decrease) in net assets resulting from operations	($	14,874	)	$	278		$	23,515		$	29,376		$	28,692
Per share data
Net investment income (loss)	($	0.15	)	($	0.33	)	($	0.41	)	$	0.69		$	0.60
Income tax (provision) benefit		0.03			1.51			(1.90	)		—			—
Net realized gains (losses) on investments		(1.44	)		(1.82	)		0.02			0.31			(0.22	)
Net change in unrealized appreciation on investments (1)		0.94			0.65			3.26			0.2			0.76
Net increase (decrease) in net assets resulting from operations	($	0.62	)	$	0.01		$	0.97		$	1.20		$	1.14
Distributions declared per share	$	0.00		$	0.00		$	0.35		$	1.00		$	0.96

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	Three Months Ended March 31,			Year Ended December 31,
(Dollars in thousands, except per share data)	2018			2017			2016			2015			2014
Weighted average common shares outstanding
Basic		24,154,879			23,919,994			24,123,888			24,315,427			24,850,496
Diluted		24,154,879			24,053,307			24,173,020			24,391,959			25,073,323
Balance sheet data
Net investments	$	595,402		$	610,135		$	652,278		$	606,959		$	527,601
Total assets		616,710			635,522			689,377			689,050			632,287
Total funds borrowed		320,662			327,623			349,073			404,540			348,795
Total liabilities		344,273			348,363			403,281			410,962			357,617
Total shareholders’ equity		272,437			287,159			286,096			278,088			274,670
Managed balance sheet data (2)
Net investments	$	1,386,136		$	1,380,054		$	1,517,592		$	1,501,555		$	1,310,685
Total assets		1,479,826			1,565,889			1,605,435			1,631,118			1,469,751
Total funds borrowed		1,167,888			1,234,371			1,257,515			1,313,436			1,156,735
Total liabilities		1,207,389			1,278,730			1,319,340			1,353,030			1,195,081
Selected financial ratios and other data
Return on average assets (ROA) (3)
Net investment income (loss) after taxes		(2.08	)%		(1.07	)%		0.02	%		2.59	%		2.51	%
Net increase in net assets resulting from operations		(9.55	)		0.04			3.48			4.53			4.75
Return on average equity (ROE) (4)
Net investment income (loss) after taxes		(4.62	)		(2.49	)		0.04			6.08			5.48
Net increase (decrease) in net assets resulting from operations		(21.24	)		0.10			8.49			10.61			10.39
Weighted average yield		2.70	%		3.12	%		4.17	%		7.74	%		8.25	%
Weighted average cost of funds		2.38			2.19			2.10			1.71			1.71
Net interest margin (5)		0.32			0.93			2.07			6.03			6.54
Noninterest income ratio (6)		0.01			0.02			0.07			0.06			0.10
Total expense ratio (7)		1.16			(1.37	)		13.5			4.75			5.31
Operating expense ratio (8)		0.68			2.20			3.78			3.04			3.60
As a percentage of net investment portfolio
Medallion loans		27	%		34	%		41	%		51	%		59	%
Commercial loans		15			15			13			14			14
Investment in Medallion Bank and other controlled subsidiaries		56			49			45			26			26
Equity investments		2			2			1			1			1
Investment securities		—			—			—			8			—
Investments to assets (9)		97	%		96	%		95	%		88	%		83	%
Equity to assets (10)		44			45			42			40			43
Debt to equity (11)		118			114			122			145			127

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(1) Unrealized appreciation (depreciation) on investments represents the increase (decrease) for the year in the fair value of our investments, including the results of operations for Medallion Bank and other controlled subsidiaries, where applicable.

(2) Includes the balances of wholly-owned, unconsolidated portfolio companies, primarily Medallion Bank.

(3) ROA represents the net investment income after taxes or net increase in net assets resulting from operations, divided by average total assets, and includes the goodwill impairment of $5,099 in 2016. Excluding the impairment writeoff, the ratio was 0.77% in 2016.

(4) ROE represents the net investment income after taxes or net increase in net assets resulting from operations, divided by average shareholders’ equity, and includes the goodwill impairment of $5,099 in 2016. Excluding the impairment writeoff, the ratio was 1.88% in 2016.

(5) Net interest margin represents net interest income for the year divided by average interest earning assets, and included interest recoveries and bonuses of $0 for the three months ended March 31, 2018, $0 in 2017, $0 in 2016, $817 in 2015, and $4,160 in 2014, and also included dividends from Medallion Bank and other controlled subsidiaries of $28 for the three months ended March 31, 2018, $1,278 in 2017, $3,000 in 2016, $18,889 in 2015, and $15,000 in 2014. On a managed basis, combined with Medallion Bank, the net interest margin was 6.96% for the three months ended March 31, 2018 and 6.99%, 6.77%, 6.98%, and 7.09% for 2017, 2016, 2015, and 2014.

(6) Noninterest income ratio represents noninterest income divided by average interest earning assets.

(7) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average interest earning assets, and includes the goodwill impairment of $5,099 in 2016. Excluding the impairment writeoff, the ratio was 12.65% in 2016.

(8) Operating expense ratio represents operating expenses divided by average interest earning assets, and includes the goodwill impairment of $5,099 in 2016. Excluding the impairment writeoff, the ratio was 2.94% in 2016.

(9) Represents net investments divided by total assets as of December 31.

(10) Represents total shareholders’ equity divided by total assets as of December 31.

(11) Represents total funds borrowed divided by total shareholders’ equity as of December 31.

ITEM 7. 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 Notes thereto for the years ended December 31, 2018, 2017, and 2016. 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 on page 18. Additionally, more information about our business activities can be found in “Business.”

GENERAL

We are a finance company that has historically had a leading position in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. Recently, our strategic growth has been through Medallion Bank, a wholly-owned subsidiary, which originates consumer loans for the purchase of RV’s, boats, motorcycles, and trailers, and to finance small-scale home improvements.

Since Medallion Bank acquired a consumer loan portfolio and began originating consumer loans in 2004, it has increased its consumer loan portfolio at a compound annual growth rate of 16% (19% if there had been no loan sales during 2016, 2017, and 2018). We are transitioning away from medallion lending and placing our strategic focus on our growing consumer finance business. As a result of our change in strategy, as of December 31, 2018, our consumer loans represented 77% of our loan portfolio, with medallion loans representing 16% and commercial loans representing 7%. Total assets under management and management of

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our unconsolidated wholly-owned subsidiaries (prior to April 2, 2018), which includes our managed net investment portfolio, as well as assets serviced for third party investors and unconsolidated subsidiaries, were $1,522,000,000 as of December 31, 2018, and were $1,593,000,000 as of December 31, 2017, and have grown at a compound annual growth rate of 9% from $215,000,000 at the end of 1996.

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, such as revolving bank facilities, bank certificates of deposit issued to customers, debentures issued to and guaranteed by the SBA, and bank term debt. Net interest income fluctuates with changes in the yield on our loan portfolio and changes in the cost of borrowed funds, as well as changes in the amount of interest-bearing 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 on a different basis than our interest-bearing liabilities.

We also provide debt, mezzanine, and equity investment capital to companies in a variety of industries, consistent with our investment objectives. These investments may be venture capital style investments which may not be fully collateralized. Medallion Capital’s 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.

On March 7, 2018, a majority of the Company’s shareholders authorized the Company’s Board of Directors to withdraw the Company’s election to be regulated as a BDC under the 1940 Act, and we withdrew such election effective April 2, 2018. At that point, we were no longer a BDC or subject to the provisions of the 1940 Act applicable to BDCs. Historically, the composition of the Company’s assets caused it to meet the definition of an “investment company,” and the Company made a corresponding election to be treated as a BDC. Now that the Company has de-elected BDC status, it operates so as to fall outside the definition of an “investment company” or within an applicable exception.

As a result of this change in status, commencing with the three months ended June 30, 2018:

• we consolidated the results of Medallion Bank and our other subsidiaries in our financial statements, which, as an investment company, we were previously precluded from doing; and

• with the consolidation of Medallion Bank, given its significance to our overall financial results, we now report as a bank holding company for accounting purposes under Article 9 and Guide 3 of Regulation S-X (but we are not a bank holding company for regulatory purposes).

As we made this change to our financial reporting prospectively, in this report we refer to both accounting in accordance with U.S. generally accepted accounting principles (GAAP) applicable to bank holding companies (Bank Holding Company Accounting), which applies commencing April 2, 2018, and to that applicable to investment companies under the 1940 Act (Investment Company Accounting), which applies to prior periods.

Our wholly-owned subsidiary, Medallion Bank, is a bank regulated by the FDIC and the Utah Department of Financial Institutions which originates consumer loans, raises deposits, and conducts other banking activities. Medallion 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 have referred a portion of our taxicab medallion and commercial loans to Medallion Bank, which originated these loans, and have been serviced by MSC. However, at this time Medallion Bank is not originating any new taxi medallion loans and is working with MSC to service its existing portfolio. The FDIC restricts the amount of taxicab medallion loans that Medallion Bank may finance to three times Tier 1 capital, although it is less than one times Tier 1 capital as of December 31, 2018. MSC earns referral and servicing fees for these activities.

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The assets of Taxi Medallion Loan Trust III (Trust III) were not available to pay obligations of its affiliates or any other party. Trust III’s loans are serviced by Medallion Funding LLC (MFC). On November 8, 2018, a limited guaranty in favor of DZ Bank was terminated in exchange for a $1.4 million note, payable in quarterly installments over five years. As a result of such restructuring, effective as of such date, Trust III is no longer consolidated in our financial statements, and a gain of $25,325,000 was recorded in the 2018 fourth quarter reflecting the deconsolidation.

CRITICAL ACCOUNTING POLICIES

We follow financial accounting and reporting policies that are in accordance with U.S. generally accepted accounting principles (GAAP). Some of these significant accounting policies require management to make difficult, subjective or complex judgments. The policies noted below, however, are deemed to be our “critical accounting policies” under the definition given to this term by the SEC: those policies that are most important to the presentation of a company’s financial condition and results of operations, and require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

The judgments used by management in applying the critical accounting policies may be affected by deterioration in the economic environment, which may result in changes to future financial results. Specifically, subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes to the allowance for loan losses in future periods, and the inability to collect on outstanding loans could result in increased loan losses.

Allowance for Loan Losses

In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a three-year look-back period for medallion loans and a one-year look-back period for recreation loans and home improvement loans. The allowance is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and size of the loan portfolio, adverse situations that may affect the borrower’s 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 that are susceptible to significant revision as more information becomes available.

Our methodology to calculate the general reserve portion of the allowance includes the use of quantitative and qualitative factors. We initially determine an allowance based on quantitative loss factors for loans evaluated collectively for impairment. The quantitative loss factors are based primarily on historical loss rates, after considering loan type, historical loss and delinquency experience. The quantitative loss factors applied in the methodology are periodically re-evaluated and adjusted to reflect changes in historical loss levels or other risks. Qualitative loss factors are used to modify the reserve determined by the quantitative factors and are designed to account for losses that may not be included in the quantitative calculation according to management’s best judgment. Performing loans are recorded at book value and the general reserve maintained to absorb expected losses consistent with GAAP.

All medallion loans that reach 90 days or more delinquent require a specific allowance reserve for those loans, which is determined on an individual basis. The allowance is then recorded so the net value of the loan is either equal to the market or collateral value of the loan.

We charge-off loans in the period that such loans are deemed uncollectible or when they reach 120 days delinquent regardless of whether the loan is a recreation, home improvement or medallion loan.

The methodology used in the periodic review of reserve adequacy, which is performed at least quarterly, is designed to be responsive to changes in portfolio credit quality and inherent credit losses. The changes are

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reflected in both the pooled formula reserve and in specific reserves as the collectability of larger classified loans is regularly recalculated with new information as it becomes available. Management is primarily responsible for the overall adequacy of the allowance.

Medallion Loan Collateral Valuation

Due to the low volume of market transfer activity the taxi medallion collateral fair value is derived quarterly for each jurisdiction using recent market transfer activity, to the extent it is available, and a discounted cash flow model. Recent market transfers published by the jurisdiction are averaged to derive the transfer activity value. When analyzing transfer activity, management does not consider transaction outliers in the average calculation nor transactions which are confirmed through third-party sources as not arms-length. For the discounted cash flow model value, significant inputs include the discount rate, taxi fare/lease revenue and associated expenses such as vehicle costs, fuel, credit card processing fees, repair costs, and insurance premiums. A higher discount rate, lower taxi fare/lease revenue and higher associated expenses each produce a lower fair value. At period end, the transfer activity and discounted cash flow values create the fair value range. A weight is ascribed to each value in order to determine the final market value.

Average Balances and Rates (Bank Holding Company Accounting)

The following table shows the Company’s consolidated average balance sheets, interest income and expense, and the average interest earning/bearing assets and liabilities for nine months ended December 31, 2018.

	Nine Months Ended December 31, 2018
(Dollars in thousands)	Average Balance		Interest		Average Yield/Cost
Interest-earning assets:
Interest-earning cash and cash equivalents	$	45,836	$	508		1.47	%
Investment securities		44,789		850		2.52
Loans:
Recreation		579,440		68,870		15.78
Home improvement		187,570		12,799		9.06
Commercial loans		78,501		7,459		12.61
Medallion loans		234,476		6,317		3.58
Total loans		1,079,987		95,445		11.73
Total interest-earning assets	$	1,170,612	$	96,803		10.98	%
Non-interest-earning assets
Cash	$	12,131
Equity investments		10,665
Loan collateral in process of foreclosure (1)		56,397
Goodwill and intangible assets		210,441
Other assets		37,542
Total non-interest-earning assets		327,176
Total assets	$	1,497,788

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	Nine Months Ended December 31, 2018
(Dollars in thousands)	Average Balance		Interest		Average Yield/Cost
Interest-bearing liabilities
Deposits	$	891,588	$	14,230		2.12	%
DZ loan		67,935		2,126		4.15
SBA debentures and borrowings		79,157		2,300		3.86
Notes payable to banks		67,732		2,305		4.52
Retail notes		33,625		2,625		10.36
Preferred securities		33,000		1,111		4.47
Other borrowings		8,286		119		1.91
Total interest-bearing liabilities	$	1,181,323	$	24,816		2.79	%
Non-interest-bearing liabilities
Deferred tax liability	$	1,549
Other liabilities		22,743
Total non-interest-bearing liabilities		24,292
Total liabilities	$	1,205,615
Non-controlling interest		27,318
Total stockholders’ equity		264,855
Total liabilities and stockholders’ equity	$	1,497,788
Net interest income			$	71,987
Net interest margin						8.19	%

(1) Includes financed sales of this collateral to third parties reported separately from the loan portfolio, and that are conducted by the Bank of $3,134.

During the nine months, our net loans receivable had a yield of 11.73%, which was driven by the recreation loans partly offset by the medallion loan yield driven by the market and the overall decline in the balance. The recreation loans are consumer loans used in large part to purchase recreational vehicles, boats and trailers and the recreation loan portfolio produces the majority of our interest income. Of our debt, we use certificates of deposit to provide the funding for our consumer loans (recreation and home improvement) and a portion of our medallion loans. In addition, due to the restructuring of the DZ loan, the overall borrowings declined, but the rate increased due to current market conditions.

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Rate/Volume Analysis (Bank Holding Company Accounting)

The following table presents the change in interest income and expense due to changes in the average balances (volume) and average rates by calculated for the period indicated.

	Nine Months Ended December 31, 2018
(Dollars in thousands)	Increase (Decrease) In Volume			Increase (Decrease) In Rate			Net Change
Interest-earning assets
Interest-earning cash and cash equivalents	$	142		$	18		$	160
Investment securities		30			12			42
Loans
Recreation		2,089			(1,427	)		662
Home improvement		28			160			188
Commercial		(153	)		314			161
Medallion		(962	)		(1,460	)		(2,422	)
Total loans receivable	$	1,002		($	2,413	)	($	1,411	)
Total interest-earning assets	$	1,174		($	2,383	)	($	1,209	)
Interest-bearing liabilities
Deposits	$	218		$	1,203		$	1,421
DZ loan		(679	)		(41	)		(720	)
SBA debentures and borrowings		32			(2	)		30
Notes payable to banks		(190	)		108			(82	)
Retail notes		—			(19	)		(19	)
Preferred securities		—			79			79
Other borrowings		2			4			6
Total interest-bearing liabilities	($	617	)	$	1,332		$	715
Net	$	1,791		($	3,715	)	($	1,924	)

Our interest expense is driven by the interest rates payable on our bank certificates of deposit, short-term credit facilities with banks, fixed-rate, long-term debentures issued to the SBA, and other short-term notes payable. Medallion Bank issues brokered bank certificates of deposit, which are our lowest borrowing costs. Medallion Bank is able to bid on these deposits at a wide variety of maturity levels which allows for improved interest rate management strategies.

Our cost of funds is primarily driven by the rates paid on our various debt instruments and their relative mix, and changes in the levels of average borrowings outstanding. See Note 7 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.

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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 following tables show the average borrowings and related borrowing costs for the years ended December 31, 2018, 2017 and 2016. Our average balances decreased during the current year, reflecting the contraction in the loan portfolios, mainly due to the deconsolidation of Trust III and the consumer loan sale in the third quarter of 2018. The increase in borrowing costs primarily reflected the repricing of term borrowings based upon the current market and increased deposit balances reflecting a lengthening of their maturity profile.

(Dollars in thousands)	Interest Expense		Average Balance		Average Borrowing Costs
December 31, 2018 (1)
Deposits	$	14,230	$	891,588		2.14	%
DZ loan		2,928		81,256		3.60
SBA debentures and borrowings		3,049		79,016		3.86
Notes payable to banks		3,118		71,353		4.37
Retail notes		3,500		33,625		10.41
Preferred securities		1,423		33,000		4.31
Other borrowings		119		8,286		1.93
Total borrowings	$	28,367	$	1,198,124		2.37
December 31, 2017
DZ loan	$	2,892	$	102,894		2.81	%
Notes payable to banks		3,164		84,219		3.76
SBA debentures and borrowings		3,099		80,284		3.86
Preferred securities		1,111		33,000		3.37
Retail notes		3,504		33,625		10.42
Total	$	13,770	$	334,022		4.12
Medallion Bank borrowings		13,869		913,072		1.52
Total managed borrowings	$	27,639	$	1,247,094		2.22
December 31, 2016
DZ loan	$	2,670	$	119,492		2.23	%
Notes payable to banks		3,119		105,893		2.95
SBA debentures		3,134		79,175		3.96
Preferred securities		945		33,000		2.87
Retail notes		2,501		23,748		10.53
Margin loans		269		18,997		1.42
Total	$	12,638	$	380,305		3.32
Medallion Bank borrowings		11,762		924,235		1.27
Total managed borrowings	$	24,400	$	1,304,540		1.87

(1) Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

We will 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 SBIA and SBA regulations. We believe that financing operations primarily with short-term floating rate secured bank debt has generally decreased our interest expense, but has also increased our exposure to the risk of increases in market interest rates, which we mitigate with certain interest rate strategies. At December 31, 2018 short-term adjustable rate debt constituted 6% of total debt, and

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were 55% (15% on a managed basis which included borrowings of our consolidated and unconsolidated subsidiaries) and 59% (16% on a managed basis) as of December 31, 2017 and 2016.

Provision and Allowance for Loan Loss (Bank Holding Company Accounting)

The below is based upon activity beginning on April 2, 2018. During the nine months ended December 31, 2018, the New York medallion value slightly decreased to a net realizable value of $181,000, from $183,500 at March 31, 2018 and in the 2018 fourth quarter, the net realizable value of the other markets declined as loans continue to age over 120 days. The provision was slightly improved by the deconsolidation of Trust III in the 2018 fourth quarter, leading to a reversal of $8,161,000 of provision. The provision also included $5,708,000 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses. This figure excludes the general reserve of $17,351,000 at the Bank, which was netted against loan balances at consolidation on April 2, 2018.

(Dollars in thousands)	Nine Months Ended December 31, 2018
Allowance for loan losses – beginning balance (1)	$	—
Charge-offs
Recreation		(12,697	)
Home improvement		(1,562	)
Commercial		—
Medallion		(14,277	)
Total charge-offs		(28,536	)
Recoveries
Recreation		4,437
Home improvement		905
Commercial		4
Medallion		577
Total recoveries		5,923
Net charge-offs		(22,613	)(2)
Provision for loan losses (3)		59,008	(4)
Allowance for loan losses – ending balance	$	36,395

(1) Beginning balance for the nine months December 31, 2018 ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table.

(2) As of December 31, 2018, cumulative charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $215,789, representing collection opportunities for the Company.

(3) Includes $5,708 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 16% of the total allowance, and 4% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018.

(4) Includes $8,161 of a reversal of provision for loan loss related to the deconsolidation of Trust III in the 2018 fourth quarter.

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The following table presents the allowance by segment as a percent of loans as of December 31, 2018 under Bank Holding Company Accounting.

(Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

The following tables set forth the pre-tax changes in our unrealized appreciation (depreciation) on investments, for the three months ended March 31, 2018 and for the years ended December 31, 2017 and 2016 under Investment Company Accounting.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investment Securities			Investments Other Than Securities			Total
Balance December 31, 2015	$	(3,438	)	$	(2,239	)	$	18,640	$	2,582		$	(18	)	$	28,956		$	44,483
Net change in unrealized
Appreciation on investments		—			—			133,805		2,979			7			(28,372	)		108,419
Depreciation on investments		(28,028	)		318			305		—			5			—			(27,400	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(1,627	)		—			—			(1,627	)
Losses on investments		2,943			543			—		—			12			—			3,498
Other		—			—			—		—			(6	)		—			(6	)
Balance December 31, 2016		(28,523	)		(1,378	)		152,750		3,934			—			584			127,367
Net change in unrealized
Appreciation on investments		—			—			6,170		2,060			—			(821	)		7,409
Depreciation on investments		(37,335	)		(410	)		—		(277	)		—			(1,253	)		(39,275	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(3,082	)		—			—			(3,082	)
Losses on investments		45,520			1,275			—		486			—			—			47,281
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

Under both Bank Holding Company Accounting and Investment Company Accounting, we generally follow a practice of discontinuing the accrual of interest income on our loans that are in arrears as to payments for a

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period of 90 days or more. We deliver a default notice and begin foreclosure and liquidation proceedings when management determines that pursuit of these remedies is the most appropriate course of action under the circumstances. A loan is considered to be delinquent if the borrower fails to make a payment on time; however, during the course of discussion on delinquent status, we may agree to modify the payment terms of the loan with a borrower that cannot make payments in accordance with the original loan agreement. For loan modifications, the loan will only be returned to accrual status if all past due interest and principal payments are brought fully current. For credit that is collateral based, we evaluate the anticipated net residual value we would receive upon foreclosure of such loans, if necessary. There can be no assurance, however, that the collateral securing these loans will be adequate in the event of foreclosure. For credit that is cash flow-based, we assess our collateral position, and evaluate most of these relationships as ongoing businesses, expecting to locate and install a new operator to run the business and reduce the debt.

For the consumer 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 to realized losses. If the collateral is repossessed, a realized loss is recorded to write the collateral down to its net realizable value, 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 as a realized loss, and any excess proceeds are recorded as a realized gain. Proceeds collected on charged-off accounts are recorded as realized gains. All collection, repossession, and recovery efforts are handled on behalf of Medallion Bank by the servicer.

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

	Bank Holding Company Accounting					Investment Company Accounting
	December 31, 2018					December 31, 2017					December 31, 2016
(Dollars in  thousands)	Amount		% (1)			Amount		% (1)			Amount		% (1)
Recreation	$	4,020		0.4	%		N/A		N/A			N/A		N/A
Home improvement		135		0.0			N/A		N/A			N/A		N/A
Commercial		279		0.0			749		0.2			2,124		0.6
Medallion		15,720		1.6			59,701		18.7			71,976		18.9
Total loans 90 days or more past due	$	20,154		2.0	%	$	60,450		18.9	%	$	74,100		19.5	%
Total Medallion Bank loans (2)		N/A		N/A		$	16,115		1.8	%	$	42,269		4.2	%
Total managed loans 90 days or more past due		N/A		N/A		$	76,565		6.2	%	$	116,369		8.4	%

(1) Percentages are calculated against the total or managed loan portfolio, as appropriate.

(2) Includes medallion and consumer loans held at Medallion Bank.

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The following table presents the credit-related information for the investment portfolios as of the dates shown under Investment Company Accounting.

(Dollars in  thousands)	December 31, 2017			December 31, 2016
Total loans
Medallion loans	$	208,279		$	266,816
Commercial loans		90,188			83,634
Total loans		298,467			350,450
Investments in Medallion Bank and other controlled subsidiaries		302,147			293,360
Equity investments (1)		9,521			8,468
Investment securities		—			—
Net investments	$	610,135		$	652,278
Net investments in Medallion Bank and other controlled subsidiaries	$	908,297		$	1,001,940
Managed net investments	$	1,380,054		$	1,517,592
Unrealized appreciation (depreciation) on investments
Medallion loans	($	20,338	)	($	28,523	)
Commercial loans		(513	)		(1,378	)
Total loans		(20,851	)		(29,901	)
Investments in Medallion Bank and other controlled subsidiaries		158,920			152,750
Equity investments		3,121			3,934
Investment securities		—			—
Total unrealized appreciation on investments	$	141,190		$	126,783
Net unrealized depreciation on investments at Medallion Bank and other controlled subsidiaries	($	63,785	)	($	55,616	)
Managed total unrealized appreciation (depreciation) on investments	$	77,405		$	71,167
Unrealized appreciation (depreciation) as a % of balances outstanding (2)
Medallion loans		(8.90	%)		(9.67	%)
Commercial loans		(0.57	)		(1.62	)
Total loans		(6.53	)		(7.87	)
Investments in Medallion Bank and other controlled subsidiaries		110.96			108.63
Equity investments		48.77			86.77
Investment securities		—			—
Net investments		30.11			24.13
Net investments at Medallion Bank and other controlled subsidiaries		(6.64	%)		(5.32	%)
Managed net investments		5.99	%		4.96	%

(1) Represents common stock, warrants, preferred stock, and limited partnership interests held as investments.

(2) Unlike other lending institutions, we were not permitted to establish reserves for loan losses. Instead, the valuation of our portfolio was adjusted quarterly to reflect estimates of the current realizable value of the investment portfolio. These percentages represent the discount or premium that investments were carried on the books at, relative to their par or gross value.

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The following table presents the gain/loss experience on the investment portfolio for the three months ended March 31, 2018 and for the years ended December 31, 2017 and 2016 under Investment Company Accounting.

(Dollars in thousands)	March 31, 2018			December 31, 2017			December 31, 2016
Realized gains (losses) on loans and equity investments
Medallion loans	($	34,747	)	($	49,609	)	($	2,938	)
Commercial loans (1)		2			(1,412	)		1,284
Total loans		(34,745	)		(51,021	)		(1,654	)
Investments in Medallion Bank and other controlled subsidiaries		—			—			214
Equity investments		—			7,277			1,884
Investment securities		—			—			13
Total realized gains (losses) on loans and equity investments	($	34,745	)	($	43,744	)	$	457
Net realized losses on investments at Medallion Bank and other controlled subsidiaries	($	23,073	)		(43,256	)		(35,341	)
Total managed realized gains (losses) on loans and equity investments	($	57,818	)	($	87,000	)	($	34,884	)
Realized gains (losses) as a % of average balances outstanding
Medallion loans		(65.74	%)		(17.76	%)		(0.97	%)
Commercial loans		0.01			(1.71	)		1.49
Total loans		(45.96	)		(14.10	)		(0.42	)
Investments in Medallion Bank and other controlled subsidiaries		—			—			0.14
Equity investments		—			119.20			41.15
Investment securities		—			—			0.01
Net investments		(30.89	)		(8.50	)		0.08
Net investments at Medallion Bank and other controlled subsidiaries		(9.66	%)		(4.19	%)		(3.33	%)
Managed net investments		(18.22	%)		(6.19	%)		(2.34	%)

(1) Includes $2,056 of gain recognized on the sale of the asset based lending portfolio in 2016.

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The following table sets forth the pre-tax changes in our unrealized and realized gains and losses in the investment portfolio, for the three months ended March 31, 2018 and years ended December 31, 2017 and 2016 under Investment Company Accounting.

(Dollars in thousands)	March 31, 2018			December 31, 2017			December 31, 2016
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	($	998	)	$	2,060		$	2,986
Unrealized depreciation		(38,152	)		(38,022	)		(27,705	)
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		29,115			9,483			130,121
Realized gains		—			(3,082	)		(1,627	)
Realized losses		34,747			47,281			3,498
Net unrealized losses on investments other than securities and other assets		(1,915	)		(2,075	)		(28,387	)
Total	$	22,797		$	15,645		$	78,886
Net realized gains (losses) on investments
Realized gains	$	—		$	3,082		$	—
Realized losses		(34,747	)		(47,281	)		(3,486	)
Other gains		—			4,684			4,140
Direct recoveries (charge-offs)		2			(4,229	)		(197	)
Total	($	34,745	)	($	43,744	)	$	457

SEGMENT RESULTS

We manage our financial results under four operating segments and report like a bank holding company. The segments are recreation lending, home improvement lending, commercial lending, and medallion lending. We also show results for two non-operating segments; RPAC and corporate and other investments. Prior to April 2, 2018, we operated as one segment. All results are for the nine months ended December 31, 2018.

Recreation Lending

The recreation lending segment is a high-growth prime and non-prime consumer finance business which is a significant source of income for us, accounting for 71% of our interest income for the nine months ended December 31, 2018. In September 2018, we sold of $55,979,000 of recreation loans for a gain of $3,093,000, included in non-interest income (expense). Recreation loans are secured primarily by RVs and boats, with RV loans making up 59% of the portfolio and boat loans making up 18% of the portfolio at the end of the period. Recreation loans are made to borrowers residing in all fifty states, with the highest concentrations in Texas, California, and Florida, at 18%, 11%, and 10% of loans outstanding, respectively, and with no other states over 10%.

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The following table presents as of and for the nine months ended December 31, 2018.

(Dollars in thousands)	Recreation
Selected Earnings Data
Total interest income	$	68,870
Total interest expense		6,986
Net interest income		61,884
Provision for loan losses		15,118
Net interest income after loss provision		46,766
Total non-interest income (expense)		(14,242	)
Net income before taxes		32,524
Income tax (provision)		(8,579	)
Net income	$	23,945
Balance Sheet Data
Total loans, gross	$	587,038
Total loan allowance		6,856
Total loans, net		580,182
Total assets		590,746
Total borrowings		434,527
Selected Financial Ratios
Return on average assets		5.48	%
Return on average equity		22.60
Interest yield		15.78
Net interest margin		14.18
Reserve coverage		1.17
Delinquency status (1)		0.69
Charge-off%		1.89

(1) Loans 90 days or more past due.

Home Improvement Lending

The home improvement lending segment works with contractors and financial service providers to finance residential home improvements and is concentrated in swimming pools, solar panels, roofs, and windows at 31%, 16%, 15%, and 11% of total loans outstanding, with no other collateral types over 10%. Home improvement loans are made to borrowers residing in all fifty states, with the highest concentrations in Texas, Florida, Ohio, and California at 15%, 11%, 9%, and 9% of loans outstanding, respectively, and with no other states over 10%. In September 2018, we sold $44,909,000 of home improvement loans for a gain of $2,079,000, included in non-interest income (expense).

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The following table presents as of and for the nine months ended December 31, 2018.

(Dollars in thousands)	Home Improvement
Selected Earnings Data
Total interest income	$	12,799
Total interest expense		2,290
Net interest income		10,509
Provision for loan losses		2,453
Net interest income after loss provision		8,056
Total non-interest income (expense)		(3,093	)
Net income before taxes		4,963
Income tax (provision)		(1,319	)
Net income	$	3,644
Balance Sheet Data
Total loans, gross	$	183,155
Total loan allowance		1,796
Total loans, net		181,359
Total assets		188,892
Total borrowings		143,815
Selected Financial Ratios
Return on average assets		2.56	%
Return on average equity		11.30
Interest yield		9.06
Net interest margin		7.44
Reserve coverage		0.98
Delinquency status (1)		0.07
Charge-off%		0.46

(1) Loans 90 days or more past due.

Commercial Lending

We originate both senior and subordinated loans nationwide to businesses in a variety of industries, more than 51% of which are located in the Midwest and Northeast regions, with the rest scattered across the country. These mezzanine loans are primarily secured by a second position on all assets of the businesses and generally range in amount from $1,000,000 to $5,000,000 at origination, and typically included an equity component as part of the financing. The commercial lending business has concentrations in manufacturing; professional, scientific, and technical services; and transportation and warehousing; and wholesale trade making up 48%, 14%, 9% and 9% of total business.

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The following table presents as of and for the nine months ended December 31, 2018.

(Dollars in thousands)	Commercial
Selected Earnings Data
Total interest income	$	7,459
Total interest expense		2,037
Net interest income		5,422
Provision for loan losses		—
Net interest income after loss provision		5,422
Total non-interest income (expense)		(1,917	)
Net income before taxes		3,505
Income tax (provision)		(808	)
Net income	$	2,697
Balance Sheet Data
Total loans, gross	$	64,083
Total loan allowance		—
Total loans, net		64,083
Total assets		90,264
Total borrowings		51,266
Selected Financial Ratios
Return on average assets		3.59	%
Return on average equity		7.52
Interest yield		12.61
Net interest margin		9.17
Reserve coverage		0.00
Delinquency status (1)		0.44
Charge-off%		0.00

(1) Loans 90 days or more past due.

Geographic Concentrations	Total Gross Loans		% of Market
Colorado	$	6,900		11	%
Minnesota		6,503		10	%
Illinois		5,467		9	%
Delaware		5,460		9	%
California		4,983		8	%
Other (1)		34,770		53	%
Total	$	64,083		100	%

(1) Includes 12 other states with none greater than 7%.

Medallion Lending

The medallion lending segment operates mainly in the New York, Newark, and Chicago markets. We have a long history of owning, managing, and financing taxicab fleets, taxicab medallions, and corporate car services. For the nine months ended December 31, 2018, we have seen a leveling off in the medallion values of the New York market, while in the other markets there has been a decline in values. Additionally, we have also continued to see a decline in interest income due to loans aging greater than 90 days and being placed on nonaccrual. During the 2018 fourth quarter,

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we deconsolidated Trust III which led to a gain of $25,325,000. Additionally, we continued removing underperforming loans from the portfolio by transferring to loan collateral in process of foreclosure, or charge-offs. All the loans are secured by the medallions and enhanced by personal guarantees of the shareholders and owners.

The following table presents as of and for the nine months ended December 31, 2018.

(Dollars in thousands)	Medallion
Selected Earnings Data
Total interest income	$	6,317
Total interest expense		10,125
Net interest loss		(3,808	)
Provision for loan losses		41,437
Net interest loss after loss provision		(45,245	)
Total non-interest income (expense)		9,742
Net loss before taxes		(35,503	)
Income tax benefit		7,938
Net loss	$	(27,565	)
Balance Sheet Data
Total loans, gross	$	183,606
Total loan allowance		27,743
Total loans, net		155,863
Total assets		273,501
Total borrowings		294,465
Selected Financial Ratios
Return on average assets		(10.13	%)
Return on average equity		NM
Interest yield		3.58
Net interest margin		(2.16	)
Reserve coverage		15.11
Delinquency status (1)		8.89
Charge-off%		7.76

(1) Loans 90 days or more past due.

Geographic Concentration	Total Gross Loans		% of Market
New York City	$	160,313		87	%
Newark		18,455		10
Chicago		4,021		2
All Other		817		1
Total	$	183,606		100	%

RPAC

We are the majority owner and managing member of RPAC Racing, LLC, a performance and marketing company for NASCAR. Revenues are mainly earned through sponsorships and race winning activity over the nine month race season (February through November) during the year.

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The following table presents as of and for the nine months ended December 31, 2018.

(Dollars in thousands)	RPAC
Selected Earnings Data
Sponsorship, race winnings, and other income	$	14,368
Race and other expenses		18,597
Interest expense		121
Total expenses		18,718
Net loss before taxes		(4,350	)
Income tax benefit		1,108
Net loss	($	3,242	)
Balance Sheet Data
Total assets	$	29,925
Total borrowings		7,649
Selected Financial Ratios
Return on average assets		(11.69	%)
Return on average equity		NM

Corporate and Other Investments

This non-operating segment relates to our equity and investment securities as well as other assets, liabilities, revenues, and expenses not allocated to the other main operating segments. This activity also includes the elimination of all intercompany activity amongst the entities.

The following table presents as of and for the nine months ended December 31, 2018.

(Dollars in thousands)	Corporate and Other
Selected Earnings Data
Interest income	$	1,358
Interest expense		3,257
Net interest loss		(1,899	)
Total non-interest income (expense), net		(6,396	)
Net loss before taxes		(8,295	)
Income tax benefit		951
Net loss	($	7,344	)
Balance Sheet Data
Total assets	$	208,522
Total borrowings		130,306
Selected Financial Ratios
Return on average assets		(4.13	%)
Return on average equity		(13.18	)

Trends in Investment Portfolio under Investment Company Accounting

Our investment income is driven by the principal amount of and yields on our investment portfolio. To identify trends in the balances and yields, the following table illustrates our investments at fair value, grouped by

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medallion loans, commercial loans, equity investments, and investment securities, and also presents the portfolio information for Medallion Bank, at the dates indicated.

	December 31, 2017						December 31, 2016
(Dollars in  thousands)	Interest Rate (1)			Investment Balances			Interest Rate (1)			Investment Balances
Medallion loans
New York		4.23	%	$	167,226			3.67	%	$	202,469
Newark		5.34			21,935			5.27			23,267
Chicago		4.74			19,436			4.45			38,091
Boston		4.51			18,564			4.52			25,857
Cambridge		4.55			773			4.47			4,401
Other		7.95			482			7.26			965
Total medallion loans		4.41			228,416			4.01			295,050
Deferred loan acquisition costs					201						289
Unrealized depreciation on loans					(20,338	)					(28,523	)
Net medallion loans				$	208,279					$	266,816
Commercial loans
Secured mezzanine		12.09	%	$	88,334			13.47	%	$	76,469
Other secured commercial		9.39			2,477			9.33			8,657
Total commercial loans		12.02			90,811			13.05			85,126
Deferred loan acquisition income					(110	)					(114	)
Unrealized depreciation on loans					(513	)					(1,378	)
Net commercial loans				$	90,188					$	83,634
Investment in Medallion Bank and other controlled subsidiaries		0.83	%	$	143,227			2.13	%	$	140,610
Unrealized appreciation on subsidiary investments					158,920						152,750
Investment in Medallion Bank and other controlled subsidiaries, net				$	302,147					$	293,360
Equity investments		0.00	%	$	6,400			0.00	%	$	4,534
Unrealized appreciation on equities					3,121						3,934
Net equity investments				$	9,521					$	8,468
Investment securities		—	%	$	—			—	%	$	—
Unrealized depreciation on investment securities					—						—
Net investment securities				$	—					$	—
Investments at cost (2)		4.73	%	$	468,854			4.94	%	$	525,320
Deferred loan acquisition costs					91						175
Unrealized appreciation on controlled subsidiaries, equity investments, and investment securities					162,041						156,684
Unrealized depreciation on loans					(20,851	)					(29,901	)
Net investments				$	610,135					$	652,278

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	December 31, 2017						December 31, 2016
(Dollars in  thousands)	Interest Rate (1)			Investment Balances			Interest Rate (1)			Investment Balances
Medallion Bank investments
Consumer loans		15.02	%	$	693,289			14.27	%	$	708,524
Medallion loans		4.30			222,252			3.75			296,436
Commercial loans		2.28			1,598			3.40			2,567
Investment securities		2.40			43,582			2.27			37,420
Medallion Bank investments at cost (2)		11.94			960,721			10.83			1,044,947
Deferred loan acquisition costs					11,097						12,371
Unrealized depreciation on investment securities					(368	)					(797	)
Premiums paid on purchased securities					265						238
Unrealized depreciation on loans					(63,417	)					(54,819	)
Medallion Bank net investments				$	908,298					$	1,001,940

(1) Represents the weighted average interest or dividend rate of the respective portfolio as of the date indicated.

(2) The weighted average interest rate for the entire managed loan portfolio (medallion, commercial, and consumer loans) was 10.89% and 9.74%, at December 31, 2017 and 2016.

PORTFOLIO SUMMARY (Investment Company Accounting)

Total Portfolio Yield

The weighted average yield (which is calculated by dividing the aggregate yield of each investment in the portfolio by the aggregate portfolio balance and does not include expenses and sales load for any offering) of the total managed portfolio under Investment Company Accounting at March 31, 2018 was 10.96%, an increase of 35 basis points from 10.61% at December 31, 2017 and an increase of 146 basis points from 9.50% at December 31, 2016.

Medallion Loan Portfolio

Our managed medallion loans of $318,864,000 comprised 23% of the net managed portfolio of $1,386,136,000 at March 31, 2018, compared to 28% of the net managed portfolio of $1,380,054,000 at December 31, 2017 and 35% the net managed portfolio of $1,517,592,000 at December 31, 2016. The medallion loan portfolio decreased by $69,137,000 or 18% on a managed basis from December 31, 2017 to March 31, 2018 primarily reflecting increased realized and unrealized losses and net amortization of loan principal, especially in the New York, Boston, and Chicago markets.

The weighted average yield of the managed medallion loan portfolio at March 31, 2018 was 4.42%, an increase of 6 basis points from 4.36% at December 31, 2017, and an increase of 48 basis points from 3.88% at December 31, 2016. The fluctuation in yield primarily reflected the repricing of the existing portfolio to current market interest rates. At March 31, 2018, 15% of the managed medallion loan portfolio represented loans outside New York, compared to 19% and 24% at December 31, 2017 and 2016.

Commercial Loan Portfolio

Our commercial loans represented 7%, 7% and 6% of the net managed investment portfolio as of March 31, 2018 and December 31, 2017 and 2016. Commercial loans increased by $4,986,000 or 5% on a managed basis from December 31, 2017 to March 31, 2018 primarily reflecting the growth in the mezzanine loan portfolio.

The weighted average yield of the managed commercial loan portfolio at March 31, 2018 was 11.76%, a decrease of 9 basis points from 11.85% at December 31, 2017, and a decrease of 100 basis points from 12.76% at December 31, 2016. The decreases primarily reflected the recent lower rates on certain of the mezzanine loans.

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Consumer Loan Portfolio

Medallion Bank originates fixed rate consumer loans secured by recreational vehicles, boats, trailers, and home improvements located in all 50 states. Our managed consumer loans, represented 52%, 49% and 46% of the managed net investment portfolio as of March 31, 2018 and December 31, 2017 and 2016.

The weighted average gross yield of the managed consumer loan portfolio was 14.86% at March 31, 2018, compared to 15.02% at December 31, 2017 and 14.27% at December 31, 2016. The change in yield primarily reflects the changes in the loans originated.

Investment in Medallion Bank and Other Controlled Subsidiaries

As an investment company prior to April 2, 2018, our investment in Medallion Bank was previously subject to quarterly assessments of fair value. We conducted a thorough valuation analysis, and determined whether any factors give rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional marketplace restrictions, such as the ability to transfer industrial bank charters. Because of these restrictions and other factors, our Board of Directors had previously determined that Medallion Bank had little value beyond its recorded book value. As a result of this valuation process, we had previously used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, we first became aware of external interest in Medallion Bank and its portfolio assets at values in excess of their book value. Expression of interest in Medallion Bank from both investment bankers and interested parties has continued. We incorporated these new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that we believe heightens the interest of marketplace lenders to acquire or merge with Utah industrial banks. We also engaged a valuation specialist to assist the Board of Directors in its determination of Medallion Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the first quarter of 2018.

Consolidated Results of Operations

For the Nine Months Ended December 31, 2018 under Bank Holding Company Accounting

Net loss attributable to shareholders was $10,172,000 or $0.42 per diluted common share for the nine months ended December 31, 2018.

Total interest income was $96,803,000 in for the nine months. The yield on interest earning assets was 10.98% for the nine months. Average interest earning assets were $1,170,612,000 for the nine months.

Loans before allowance for loan losses were $1,017,882,000 as of December 31, 2018, and were comprised of recreation ($587,038,000), home improvement ($183,155,000), medallion ($183,606,000) and commercial ($64,083,000) loans. The Company had an allowance for loan losses as of the end of the year 2018 of $36,395,000, which was attributable to the medallion (76%), recreation (19%), and home improvement (5%) loan portfolios. Loans declined from $1,095,780,000 at April 2, 2018 primarily due to the deconsolidation of Trust III of $53,545,740 in medallion loans, along with continued charge-offs, reserve increases, and principal repayments. These decreases were partially offset by net loan originations in which a majority related to the recreation segment. The provision for loan losses was $59,008,000 for the nine months ended December 31, 2018, reflecting losses throughout the entire loan portfolio and included a non-specific general reserve for medallion loans of $5,708,000. See Note 4 for additional information on loans and the allowance for loan losses.

Interest expense was $24,816,000 for the nine months and the cost of borrowed funds was 2.79%. Average debt outstanding was $1,181,323,000. See page 47 for a table which shows average balances and cost of funds for our funding sources.

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Net interest income was $71,987,000 and the net interest margin was 8.19% for the nine months ended.

Noninterest income, which is mainly comprised of sponsorship and race winnings at RPAC, late charges, write-downs of loan collateral, impairment of equity investments and other miscellaneous income, was $41,946,000 for the nine months. The activity also included the gain on the deconsolidation of Trust III of $25,325,000.

Operating expenses were $62,081,000 for the nine months. Salaries and benefits expense was $19,357,000 for the period, professional fees were $8,609,000, primarily reflecting legal costs for a variety of corporate and investment-related matters, race team costs were $7,121,000, loan servicing costs were $3,470,000, primarily reflecting the cost of servicing the recreation and home improvement consumer loans, and occupancy and other operating expenses were $17,909,000. In addition, impairment on goodwill of $5,615,000 was recorded in the nine months.

Total income tax expense was $709,000 for the nine months. See Note 8 for more information.

Loan collateral in process of foreclosure was $49,495,000 at December 31, 2018, an increase from $21,749,000 at April 2, 2018. The increase primarily reflected the re-classification of $31,099,000 from nonperforming loans shown as investments in the 2018 first quarter and the net increase in loans that reached 120 days past due and were charged down to collateral value and reclassified to loans in process of foreclosure, partially offset by the deconsolidation of Trust III, the writedowns of collateral values and the cash received in settlement of these assets.

Goodwill and intangible assets were $204,785,000 at December 31, 2018, which arose as a result of election to no longer report as a BDC as of April 2, 2018 and was in connection with the consolidation of Medallion Bank and RPAC. See Note 2 for further information regarding goodwill and intangible assets.

2018 First Quarter under Investment Company Accounting

Net decrease in net assets resulting from operations was $14,874,000 or $0.62 per diluted common share in the 2018 first quarter primarily reflecting an increase in net realized/unrealized losses on the investment portfolio, increased operating expenses and higher income taxes. Net investment loss after income taxes was $3,230,000 or $0.13 per share in the 2018 quarter.

Investment income was $4,033,000 in the 2018 first quarter and included $1,643,000 of interest reversals related to nonaccrual loans in 2018. The yield on the investment portfolio was 2.69% in the 2018 quarter.

Interest expense was $3,551,000 in the 2018 first quarter. The increase in interest expense was primarily due to increased borrowing costs. The cost of borrowed funds was 4.44% in 2018 reflecting the continuing increase in market interest rates. Average debt outstanding was $324,322,000 for the 2018 quarter primarily reflecting decreased borrowings required to fund the contracting loan portfolio.

Net interest income was $482,000 and the net interest margin was 0.32% for the 2018 quarter.

Noninterest income, which is comprised of prepayment fees, servicing fee income, late charges, and other miscellaneous income, was $60,000 in the 2018 quarter primarily reflecting the reversal of a previously earned management fee due from a portfolio company in the prior year quarter.

Operating expenses were $4,108,000 in the 2018 first quarter. Salaries and benefits expense was $2,349,000 in the 2018 quarter primarily due to executive and employee bonus accrual. Professional fees were $723,000 in 2018 primarily reflecting higher legal expenses for a variety of corporate and investment-related matters. Occupancy and other operating expenses of $1,036,000 in 2018 primarily reflecting higher road or miscellaneous taxes, collection costs related to the medallion loan portfolio and directors’ fees.

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Total income tax benefit was $640,000 in 2018, and was comprised of three components, a $336,000 benefit related to the net investment loss, an $8,426,000 benefit related to realized losses, and a provision of $8,122,000 related to net unrealized gains on investments.

Net change in unrealized appreciation (depreciation) on investments before income tax was appreciation of $22,797,000 in the 2018 first quarter. Net change in unrealized appreciation other than the portion related to Medallion Bank and the other controlled subsidiaries, was depreciation of $6,318,000 in 2018, resulting in decreased depreciation of $2,205,000 and related almost entirely to the medallion portfolio. Unrealized appreciation (depreciation) arises when we make valuation adjustments to the investment portfolio. When investments are sold or written off, any resulting realized gain (loss) is grossed up to reflect previously recorded unrealized components. As a result, movement between periods can appear distorted. The current quarter activity resulted from net appreciation on Medallion Bank and other controlled subsidiaries of $29,115,000 and by reversals of unrealized depreciation on loans which were charged-off of $34,747,000, offset by unrealized depreciation on loans and other investments of $40,067,000 mainly due to the continuing declining values of the medallions.

Our net realized losses on investments before taxes were $34,745,000 in the 2018 quarter. The 2018 activity reflected the realized losses in the loan portfolio.

Our net realized/unrealized loss on investments before income taxes was $11,948,000 in the 2018 first quarter reflecting the above.

For the Years Ended December 31, 2017 and 2016 under Investment Company Accounting

Net increase in net assets resulting from operations was $278,000 or $0.01 per diluted common share in 2017, down $23,237,000 or 99% from $23,515,000 or $0.97 per share in 2016, primarily reflecting an increase in net realized/unrealized losses on the investment portfolio and lower net interest income, partially offset by an increased income tax benefit and lower operating expenses. Net investment loss after income taxes was $7,121,000 or $0.30 per share in 2017, down $7,240,000 from income of $119,000 or less than $0.01 in 2016.

Investment income was $19,624,000 in 2017, down $5,464,000 or 22% from $25,088,000 a year ago, and included in 2017 and 2016 were $1,278,000 and $3,000,000 in dividends from Medallion Bank and other controlled subsidiaries. The decrease was also due to $5,514,000 of interest forgone in 2017, compared to $2,634,000 in 2016. The yield on the investment portfolio was 3.12% in 2017, down 25% from was 4.17% in 2016. Excluding the dividends, the 2017 yield was down 20% to 2.92% from 3.67% in 2016, reflecting the above. Average investments outstanding were $629,089,000 in 2017, up 4% from $602,349,000 in the prior year primarily reflecting growth in the commercial portfolio and subsidiary investments.

Medallion loans were $208,279,000 at year end, down $58,537,000 or 22% from $266,816,000 a year ago, representing 34% of the investment portfolio, compared to 41% a year ago, and were yielding 4.41% compared to 4.01% a year ago. The decrease in outstandings was primarily concentrated in the New York and Chicago markets, although all markets declined, and was primarily attributable to realized losses recognized and net amortization of loan principal. The managed medallion portfolio, which includes loans at Medallion Bank and those serviced for third parties, was $414,350,000 at year end, down $139,089,000 or 25% from $553,439,000 a year ago, reflecting the above, and realized losses taken and principal amortization at Medallion Bank. The commercial loan portfolio was $90,188,000 at year end, compared to $83,634,000 a year ago, an increase of $6,554,000 or 8%, and represented 15% of the investment portfolio compared to 13% a year ago. The increase was primarily attributable to increases in the secured mezzanine portfolio, partially offset by decreases in other secured commercial loans. Commercial loans yielded 12.02% at year end, down 8% from 13.05% a year ago, reflecting lower yields on certain recent loans. The net managed commercial loan portfolio, which includes loans at Medallion Bank and those serviced for or by third parties, was $92,530,000 at year end, up $4,686,000 or 5% from $87,844,000 a year ago, reflecting the above. Investments in Medallion Bank and other controlled

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subsidiaries were $302,147,000 at year end, up $8,787,000 or 3% from $293,360,000 a year ago, primarily reflecting the appreciation and equity in the earnings of Medallion Bank other portfolio company investments, capital contributions made, dividends paid, portfolio sales, and the net valuation adjustment, and which represented 49% of the investment portfolio at the end of 2017 and 45% in the prior year, and which yielded 0.83% at year end, compared to 2.13% a year ago, primarily reflecting reduced dividends from Medallion Bank. Equity investments were $9,521,000 at year end, up $1,053,000 or 12% from $8,468,000 a year ago, primarily reflecting increase in investments held, and which represented 2% of the investment portfolio at the end of 2017 and 1% in the prior year, and had a dividend yield of 0% in both years.

Interest expense was $13,770,000 in 2017, up $1,132,000 or 9% from $12,638,000 in 2016. The increase in interest expense was primarily due to increased borrowing costs on floating rate borrowings. The cost of borrowed funds was 4.12% in 2017, compared to 3.32% a year ago, an increase of 24%, reflecting the recent increases in market interest rates. Average debt outstanding was $334,022,000 in 2017, compared to $380,305,000 a year ago, down 12%, primarily reflecting decreased borrowings required to fund the contracting medallion loan portfolio. See page 47 for a table that shows average balances and cost of funds for our funding sources.

Net interest income was $5,854,000 and the net interest margin was 0.93% in 2017, down $6,596,000 or 53% from $12,450,000 a year ago, which represented a net interest margin of 2.07%, all reflecting the items discussed above.

Noninterest income, which is comprised of prepayment fees, management fees, servicing fee income, late charges, and other miscellaneous income was $107,000 in 2017, down $301,000 or 74% from $408,000 a year ago, primarily reflecting lower management and other fees generated from the portfolios.

Operating expenses were $13,810,000 in 2017, down $8,976,000 or 39% from $22,786,000 in 2016 which included a $5,099,000 goodwill write off. Salaries and benefits expense was $7,508,000 in the year, down $4,262,000 or 36% from $11,770,000 in 2016 primarily due to a reduction in bonus costs recorded in the current period and lower salary expenses due to the sale of its asset-based lending division in the prior year. Professional fees were $2,619,000 in 2017, up $272,000 or 12% from $2,347,000 a year ago, primarily reflecting higher legal and other professional fee expenses for a variety of corporate and investment-related matters. Occupancy expense was $1,069,000 in 2017, up $103,000 or 11% from $966,000 in 2016, primarily reflecting annual increases in rent expense at various locations. Other operating expenses of $2,614,000 in 2017 were down $10,000 from $2,604,000 a year ago reflecting decreased travel and entertainment expenses, directors’ fees, miscellaneous taxes and reduced expense reimbursements, partially offset by increases in collection and other expenses.

Total income tax benefit was $36,226,000 in 2017 compared to income tax expense of $45,900,000 in 2016, a change of $82,126,000. Total taxes were comprised of three components, a $728,000 benefit related net investment loss compared to $10,047,000 in 2016, benefits related to realized losses and unrealized appreciation on investments of $15,955,000 and $19,543,000, compared to provisions of $384,000 and $55,563,000 in 2016. The tax benefit recorded in 2017 reflected the $17,279,000 for adjustment to implement the change in U.S. tax law rates on the net tax liabilities. See Note 8 for more information.

Net change in unrealized appreciation on investments was $15,645,000 in 2017, compared to $78,886,000 in 2016, a decrease in appreciation of $63,241,000. Net change in unrealized appreciation other than the portion related to Medallion Bank and the other controlled subsidiaries, was appreciation of $6,162,000 in 2017 compared to a depreciation of $51,235,000 in 2016, resulting in increased appreciation of $57,397,000 in 2017. Unrealized appreciation (depreciation) arises when we make valuation adjustments to the investment portfolio. When investments are sold or written off, any resulting realized gain (loss) is grossed up to reflect previously recorded unrealized components. As a result, movement between periods can appear distorted. The 2017 activity resulted from a net appreciation on Medallion Bank and other controlled subsidiaries of $9,483,000, reversals of

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unrealized depreciation associated with charged-off loans of $46,795,000, partially offset by unrealized depreciation on loans of $37,745,000, the reversal of unrealized appreciation on investments that were exited with a realized gain of $3,082,000, unrealized depreciation on investments other than securities and other assets of $2,075,000, and net unrealized appreciation on equity investments of $2,269,000. The 2016 activity resulted from net appreciation on Medallion Bank and other controlled subsidiaries of $130,121,000 and by reversals of unrealized depreciation associated with charged-off loans of $3,486,000, partially offset by unrealized depreciation on loans of $27,710,000, investments other than securities of $28,372,000, and net unrealized appreciation on investment securities of $1,367,000. The net appreciation on Medallion Bank and other controlled subsidiaries described above is net of the dividends declared by them to us of $1,278,000 in 2017 and $3,000,000 in 2016.

Our net realized losses on investments were $43,744,000 in 2017 compared to gains of $457,000 in 2016, an increase in realized losses of $44,201,000 in 2017. The 2017 activity reflected the reversals described in the unrealized paragraph above, other gain on the liquidation of other investment securities of $4,684,000, and net loan charge-offs of $4,715,000, inclusive of losses on equity investments. The 2016 activity reflected the reversals described in the unrealized paragraph above, and other net loan charge-offs of $224,000, partially offset by gains of $2,111,000 from the sale of investment securities and $2,057,000 from the sale of the asset-based lending portfolio.

Our net realized/unrealized gains on investments were $7,399,000 in 2017, compared to $23,396,000 in 2016, a decrease of $15,997,000 or 68% of net gains in the year, reflecting the above.

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 medallion, commercial, and consumer loans, and investment securities) reprice on a different basis over time in comparison to our interest-bearing liabilities (consisting primarily of credit facilities with banks and other lenders, bank certificates of deposit, and SBA debentures).

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. Based on past experience, we anticipate that approximately 40% of the taxicab medallion portfolio will mature or be prepaid each year. 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, particularly in the medallion loan portfolio.

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. We had outstanding SBA debentures of $80,099,000 with a weighted

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average interest rate of 3.40%, constituting 7% of our total indebtedness, and retail notes of $33,625,000, with a weighted average interest rate of 9.00%, constituting 3% of total indebtedness as of December 31, 2018. Also, as of December 31, 2018, certain of the certificates of deposit were for terms of up to 55 months, further mitigating the immediate impact of changes in market interest rates.

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.

The following table presents our interest rate sensitivity gap at December 31, 2018. 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 have not reflected an assumed annual prepayment rate for such assets in this table.

December 31, 2018 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
Floating-rate	$	33,995		$	—		$	—		$	—		$	—		$	—		$	—	$	33,995
Adjustable rate		41,145			16,796			9,312			6,603			15,187			270			2,388		91,701
Fixed-rate		80,454			33,557			45,051			54,741			65,073			50,541			643,030		972,447
Cash		23,718			—			—			—			—			—			—		23,718
Total earning assets	$	179,312		$	50,353		$	54,363		$	61,344		$	80,260		$	50,811		$	645,418	$	1,121,861
Interest bearing liabilities
Deposits	$	325,890		$	191,054		$	158,846		$	136,508		$	35,742		$	—		$	—	$	848,040
Notes payable to banks		50,995			—			7,220			—			1,400			—			—		59,615
SBA debentures and borrowings		1,250			29,099			8,500			—			5,000			5,000			31,250		80,099
Retail notes		—			—			33,625			—			—			—			—		33,625
Preferred securities		33,000			—			—			—			—			—			—		33,000
Other borrowings		500			7,149			—			—			—			—			—		7,649
Total liabilities	$	411,635		$	227,302		$	208,191		$	136,508		$	42,142		$	5,000		$	31,250	$	1,062,028
Interest rate gap	($	232,323	)	($	176,949	)	($	153,828	)	($	75,164	)	$	38,118		$	45,811		$	614,168	$	59,833
Cumulative interest rate gap (2)	($	232,323	)	($	409,272	)	($	563,100	)	($	638,264	)	($	600,146	)	($	554,335	)	$	59,833		—
December 31, 2017 (3)	($	172,208	)	($	324,049	)	($	361,494	)	($	425,785	)	($	411,672	)	($	379,286	)	$	168,501		—
December 31, 2016 (3)	($	160,931	)	($	229,981	)	($	304,974	)	($	301,658	)	($	334,577	)	($	301,596	)	$	219,452		—

(1) The ratio of the cumulative one year gap to total interest rate sensitive assets was (21%), as of December 31, 2018.

(2) Adjusted for the medallion loan 40% prepayment assumption results in a cumulative one year negative interest rate gap and related ratio of $210,284 or 19% at December 31, 2018.

(3) Represents the cumulative rate gap on a combined basis with Medallion Bank for the years noted.

Our interest rate sensitive assets were $1,121,861,000 and interest rate sensitive liabilities were $1,062,028,000 at December 31, 2018. The one-year cumulative interest rate gap was a negative $232,323,000 or 21% of interest rate sensitive assets. However, using our estimated 40% prepayment/refinancing rate for medallion loans to adjust the interest rate gap resulted in a negative gap of $210,284,000 or 19% at December 31, 2018. We seek to manage interest rate risk by originating adjustable-rate loans, by incurring fixed-rate indebtedness, by evaluating appropriate derivatives, pursuing securitization opportunities, and by other options consistent with managing interest rate risk.

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Liquidity and Capital Resources

Our sources of liquidity are with a variety of local and regional banking institutions, unfunded commitments to sell debentures to the SBA, loan amortization and prepayments, private issuances of debt securities, participations or sales of loans to third parties, the disposition of other assets of the Company, and dividends from Medallion Bank, although we have not received any since 2016 and are subject to compliance with regulatory ratios, and Medallion Capital. Additionally, there were $3,000,000 of unfunded commitments from the SBA as of December 31, 2018.

Additionally, Medallion Bank has access to independent sources of funds for our business originated there, primarily through brokered certificates of deposit. Medallion Bank has $45,000,000 available under Fed Funds lines with several commercial banks. In addition, Medallion Bank can retain earnings in its business to fund future growth.

The components of our debt were as follows at December 31, 2018. See Note 7 to the consolidated financial statements for details of the contractual terms of our borrowings.

(Dollars in  thousands)	Balance		Percentage			Rate (1)
Deposits	$	848,040		80	%		2.14	%
SBA debentures and borrowings		80,099		7			3.40
Notes payable to banks		59,615		6			4.55
Retail notes		33,625		3			9.00
Preferred securities		33,000		3			4.86
Other borrowings		7,649		1			2.00
Total outstanding debt	$	1,062,028		100	%		2.67	%

(1) Weighted average contractual rate as of December 31, 2018.

Our contractual obligations expire on or mature at various dates through September 2037. The following table shows all contractual obligations at December 31, 2018.

	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
Deposits	$	325,890	$	191,054	$	158,846	$	136,508	$	35,742	$	—	$	848,040
SBA debentures and borrowings		3,226		25,873		8,500		—		5,000		37,500		80,099
Notes payable to banks		51,452		458		7,145		280		280		—		59,615
Retail notes		—		—		33,625		—		—		—		33,625
Preferred securities		—		—		—		—		—		33,000		33,000
Other borrowings		500		7,149		—		—		—		—		7,649
Operating lease obligations		2,357		2,380		2,278		2,216		2,136		6,048		17,415
Total	$	383,425	$	226,914	$	210,394	$	139,004	$	43,158	$	76,548	$	1,079,443

Most of our borrowing relationships have maturity dates during 2019 through 2021. We have been in active and ongoing discussions with each of these lenders and have extended each of the facilities as they matured. The lenders have worked with us to extend and change the terms of the borrowing agreements. We have arranged for changes to the terms of the notes and payment and borrowing base calculations which we anticipate will facilitate our operations for the foreseeable future.

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

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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. We use a combination of long-term and short-term borrowings and equity capital to finance our investing activities. Our long-term fixed-rate investments are financed primarily with short-term floating-rate debt, and to a lesser extent by term 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 the line item net income as of December 31, 2018 by $549,000 on an annualized basis, and the impact of such an immediate increase of 1% over a one year period would have been ($1,012,000) at December 31, 2018. 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.

We continue to work with investment banking firms and other financial intermediaries to investigate the viability of a number of 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.

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The following table illustrates sources of available funds for us and each of our subsidiaries, and amounts outstanding under credit facilities and their respective end of period weighted average interest rates at December 31, 2018. See Note 7 to the consolidated financial statements for additional information about each credit facility.

	Bank Holding Company Accounting																					Managed
(Dollars in  thousands)	The Company			MFC			MCI			FSVC			MB			RPAC and Other			December 31, 2018			December 31, 2017
Cash	$	1,110		$	1,118		$	20,230		$	693		$	33,895		$	667	(1)	$	57,713		$	122,923
Bank loans		38,870			20,745			—			—			—			—			59,615			81,450
Average interest rate		5.09	%		3.53	%		—			—			—			—			4.55	%		3.94	%
Maturity		3/19-7/19			6/19-12/23			—			—			—			—			3/19-12/23			10/16-11/18
Preferred securities		33,000			—			—			—			—			—			33,000			33,000
Average interest rate		4.86	%		—			—			—			—			—			4.86	%		3.63	%
Maturity		9/37			—			—			—			—			—			9/37			9/37
Retail notes		33,625			—			—			—			—			—			33,625			33,625
Average interest rate		9.00	%																	9.00	%		9.00	%
Maturity		4/21																		4/21			4/21
DZ loan		—			—			—			—			—			—			—			99,984
Average interest rate		—			—			—			—			—			—			—			3.02	%
Maturity		—			—			—			—			—			—			—			3/18
SBA debentures and borrowings		—			—			54,000			29,099			—			—			83,099			85,064
Amounts undisbursed		—			—			3,000			—			—			—			3,000			5,500
Amounts outstanding		—			—			51,000			29,099			—			—			80,099			79,564
Average interest rate		—			—			3.48	%		3.25	%		—			—			3.40	%		3.39	%
Maturity		—			—			3/21-3/29			2/20			—			—			2/20-3/29			2/20-3/27
Brokered CDs & other funds borrowed														848,040			—			848,040			906,748
Average interest rate		—			—			—			—			2.14	%		—			2.14	%		1.51	%
Maturity		—			—			—			—			01/19-07/23			—			1/19-07/23			1/18-10/22
Other borrowings		—			—			—			—			—			7,649			7,649			—
Average interest rate		—			—			—			—			—			2.00	%		2.00	%		—	%
Maturity		—			—			—			—			—			12/19-3/20			12/19-3/20			—
Total cash	$	1,110		$	1,118		$	20,230		$	693		$	33,895		$	667		$	57,713		$	122,923
Total debt outstanding	$	105,495		$	20,745		$	51,000		$	29,099		$	848,040		$	7,649		$	1,062,028		$	1,234,371

(1) Includes $90,000 of cash related to consolidated subsidiaries other than RPAC.

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

We also generate liquidity through deposits generated at Medallion Bank, borrowing arrangements with other banks, and through the issuance of SBA debentures, as well as from cash flow from operations. In addition, we may choose to participate a greater portion of our loan portfolio to third parties. We are actively seeking additional sources of liquidity, however, given current market conditions, we cannot assure you 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.

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as it relates to the fair value of assets and liabilities. The amendments in this update are

69

effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. We do not believe this update will have a material impact on our financial condition.

In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. We do not believe this update will have a material impact on our financial condition.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. The aftermath of the global economic crisis and the delayed recognition of credit losses associated with loans (and other financial instruments) was identified as a weakness in the application of existing accounting standards. Specifically, because the existing “incurred” loss model delays recognition until it is probable a credit loss was incurred, the FASB explored alternatives that would use more forward-looking information. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities and is effective for fiscal years beginning after December 15, 2020 for all other entities, with early adoption permitted. We are assessing the impact the update will have on our financial statements and expects the update to have a significant impact on how we will account for estimated credit losses on our loans.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating under GAAP. ASU 2016-02 applies to all entities and is effective for fiscal years beginning after December 15, 2018 for public entities. We have assessed the impact the update will have on our financial condition and determined that effective January 1, 2019 a right-of-use asset and a lease liability each of $13,997,000 would be recorded, and accrued/amortized over the remaining lease life terms. See Note 12 for additional information.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our business activities contain elements of risk. We consider the principal types of risk to be fluctuations in interest rates and portfolio valuations. We consider the management of risk essential to conducting our businesses. Accordingly, our risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits, and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.

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. We use a combination of long-term and short-term borrowings and equity capital to finance our investing activities. Our long-term fixed-rate investments are financed primarily with short-term floating-rate debt, and to a lesser extent

70

by term 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 the line item net income as of December 31, 2018 by $549,000 on an annualized basis, and the impact of such an immediate increase of 1% over a one year period would have been ($1,012,000) at December 31, 2018. 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.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Reference is made to the financial statements set forth under Item 15 (A) (1) in this Annual Report on Form 10-K, which financial statements are incorporated herein by reference in response to this Item 8.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures as of the end of the fiscal year covered by this annual report. As a result of this evaluation, we have concluded that our disclosure controls and procedures were effective as of December 31, 2018.

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 2018 fourth quarter 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 2018 fourth quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, our principal executive and principal financial officers and effected by our Board of Directors, management, and other personnel, 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, and includes those policies and procedures that:

• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2018. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013). Based on its assessment and those criteria, management believes that we maintained effective internal control over financial reporting as of December 31, 2018.

We believe that the consolidated financial statements included in this report fairly represent our consolidated financial position and consolidated results of operations for all periods presented.

Our Independent Registered Public Accounting Firm, Mazars USA LLP, has audited and issued a report on management’s assessment of our internal control over financial reporting. The report of Mazars USA LLP appears below.

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Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Medallion Financial Corp.

Opinion on Internal Control over Financial Reporting

We have audited Medallion Financial Corp. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of Medallion Financial Corp. and subsidiaries (the “Company”) as of December 31, 2018 and 2017, including the consolidated summary schedule of investments, as of December 31, 2017, and the related consolidated statements of operations, other comprehensive income (loss), changes in stockholders’ equity and changes in net assets, and cash flows for each of the three years in the three-year period ended December 31, 2018, and the related notes and schedules listed in the index to the financial statements and in Item 15(A)3 as Exhibit 99.1, and selected financial ratios and other data (see note 16) for each of the four years in the four-year period ended December 31, 2017 of the Company, and our report dated March 13, 2019 expressed an unqualified opinion.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

/s/ Mazars USA LLP

New York, New York

March 13, 2019

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ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Incorporated by reference from our Definitive Proxy Statement expected to be filed by April 30, 2019 for our fiscal year 2019 Annual Meeting of Shareholders under the captions “Our Directors and Executive Officers,” “Corporate Governance,” and “Section 16(a) Beneficial Ownership Reporting Compliance.”

ITEM 11. EXECUTIVE COMPENSATION

Incorporated by reference from our Definitive Proxy Statement expected to be filed by April 30, 2019 for our fiscal year 2019 Annual Meeting of Shareholders under the caption “Executive Compensation” and “Compensation Committee Interlocks and Insider Participation.”

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Incorporated by reference from our Definitive Proxy Statement expected to be filed by April 30, 2019 for our fiscal year 2019 Annual Meeting of Shareholders under the captions “Stock Ownership of Certain Beneficial Owners and Management” and “Equity Compensation Plan Information.”

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Incorporated by reference from our Definitive Proxy Statement expected to be filed by April 30, 2019 for our fiscal year 2019 Annual Meeting of Shareholders under the captions “Certain Relationships and Related Party Transactions”, “Our Directors and Executive Officers,” and “Corporate Governance.”

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Incorporated by reference from our Definitive Proxy Statement expected to be filed by April 30, 2019 for our fiscal year 2019 Annual Meeting of Shareholders under the caption “Principal Accountant Fees and Services.”

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(A) 1. FINANCIAL STATEMENTS

The consolidated financial statements of Medallion Financial Corp. and the Report of Independent Public Accountants thereon are included as set forth on the Index to Financial Statements on F-1.

2. FINANCIAL STATEMENT SCHEDULES

See Index to Financial Statements on F-1.

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3. EXHIBITS

Number	Description
3.1(a)	Restated Medallion Financial Corp. Certificate of Incorporation. Filed as Exhibit 3.1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1996 (File No. 0-27812) and incorporated by reference herein.
3.1(b)	Amendment to Restated Certificate of Incorporation. Filed as Exhibit 3.1.1 to the Quarterly Report on Form  10-Q for the quarterly period ended June 30, 1998 (File No. 0-27812) and incorporated by reference herein.
3.2	Amended and Restated By-Laws of Medallion Financial Corp. (filed as Exhibit 3.1 to the Current Report on Form 8-K filed on April 27, 2018 (File No. 001-37747) and incorporated by reference herein).
4.1	Fixed/Floating Rate Junior Subordinated Note, dated June  7, 2007, by Medallion Financial Corp., in favor of Medallion Financing Trust I. Filed as Exhibit 4.1 to the Current Report on Form 8-K filed on June 11, 2007 (File No.  814-00188) and incorporated by reference herein.
4.2	Indenture, dated April  15, 2016, between Medallion Financial Corp. and Wilmington Trust, National Association. Filed as Exhibit d.6 to the Registration Statement on Form N-2 filed on April 15, 2016 (File No. 333-206692) and incorporated by reference herein.
4.3	First Supplemental Indenture, dated April  15, 2016, between Medallion Financial Corp. and Wilmington Trust, National Association. Filed as Exhibit d.7 to the Registration Statement on Form N-2 filed on April 15, 2016 (File No. 333-206692) and incorporated by reference herein.
4.4	Note, effective March  1, 2017, by Freshstart Venture Capital Corp., in favor of Small Business Administration. Filed as Exhibit 4.1 to the Current Report on Form 8-K filed on January 31, 2017 (File No. 814-00188) and incorporated by reference herein.
4.5	Amendment No. 1 to Note, dated and effective as of January  31, 2018, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 4.1 to the Current Report on Form 8-K filed on February 5, 2018 (File No. 814-00188) and incorporated by reference herein.
4.6	Amendment No. 2 to Note, dated and effective as of January  31, 2019, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 4.1 to the Current Report on Form 8-K filed on February 1, 2019 (File No. 001-33747) and incorporated by reference herein.
4.7	Amendment No. 3 to Note, dated and effective as of February  15, 2019, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 4.1 to the Current Report on Form 8-K filed on February 21, 2019 (File No. 001-37747) and incorporated by reference herein.
10.1	First Amended and Restated Employment Agreement, between Medallion Financial Corp. and Alvin Murstein dated May  29, 1998. Filed as Exhibit 10.19 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1998 (File No.  814-00188) and incorporated by reference herein.*
10.2	Amendment No. 1 to First Amended and Restated Employment Agreement, dated and effective as of April  27, 2017, by and between Medallion Financial Corp. and Alvin Murstein. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on May 3, 2017 (File No.  814-00188) and incorporated by reference herein.*
10.3	Amendment No. 2 to First Amended and Restated Employment Agreement, dated and effective as of December  22, 2017, by and between Medallion Financial Corp. and Alvin Murstein. Filed as Exhibit 10.3 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (File No. 814-00188) and incorporated by reference herein.*

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Number	Description
10.4	First Amended and Restated Employment Agreement, between Medallion Financial Corp. and Andrew Murstein dated May  29, 1998. Filed as Exhibit 10.20 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1998 (File No.  814-00188) and incorporated by reference herein.*
10.5	Amendment No. 1 to First Amended and Restated Employment Agreement, dated and effective as of April  27, 2017, by and between Medallion Financial Corp. and Andrew Murstein. Filed as Exhibit 10.2 to the Current Report on Form 8-K filed on May 3, 2017 (File No.  814-00188) and incorporated by reference herein.*
10.6	Amendment No. 2 to First Amended and Restated Employment Agreement, dated and effective as of December  22, 2017, by and between Medallion Financial Corp. and Andrew Murstein. Filed as Exhibit 10.6 to the Annual Report of Form 10-K for the fiscal year ended December  31, 2017 (File No. 814-00188) and incorporated by reference herein.*
10.7	Employment Agreement, dated June  27, 2016, between Donald Poulton, Medallion Financial Corp. and Medallion Bank. Filed as Exhibit 10.2 to the Current Report on Form 8-K filed on June  30, 2016 (File No. 814-00188) and incorporated by reference herein.*
10.8	Letter Agreement, dated March  7, 2017, by and between Medallion Financial Corp. and Larry D. Hall. Filed as Exhibit 10.8 to the Annual Report of Form 10-K for the fiscal year ended December  31, 2017 (File No. 814-00188) and incorporated by reference herein.*
10.9	2006 Employee Stock Option Plan. Filed as Exhibit II to our definitive proxy statement for our 2006 Annual Meeting of Shareholders filed on April 28, 2006 (File No. 814-00188) and incorporated by reference herein.*
10.10	First Amended and Restated 2006 Non-Employee Director Stock Option Plan. Filed as Exhibit B to Amendment No. 3 to Form 40-APP filed on June 18, 2012 (File No. 812-13666) and incorporated by reference herein.*
10.11	2015 Employee Restricted Stock Plan. Filed as Exhibit B to Amendment No.  1 to Form 40-APP filed on December 11, 2015 (File No. 812-14433) and incorporated by reference herein.*
10.12	2015 Non-Employee Director Stock Option Plan. Filed as Exhibit B to Amendment No. 2 to Form 40-APP filed on January 14, 2016 (File No. 812-14458) and incorporated by reference herein.*
10.13	2018 Equity Incentive Plan. Filed as Annex A to our definitive proxy statement for our 2018 Annual meeting of Shareholders filed on April 30, 2018 (File No. 001-37747) and incorporated by reference herein.*
10.14	Indenture of Lease, dated October  31, 1997, by and between Sage Realty Corporation, as Agent and Landlord, and Medallion Financial Corp., as Tenant. Filed as Exhibit 10.64 to the Annual Report on Form  10-K for the fiscal year ended December 31, 1997 (File No. 812-09744) and incorporated by reference herein.
10.15	First Amendment of Lease, dated September  6, 2005, by and between Medallion Financial Corp. and Sage Realty Corporation. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on September  12, 2005 (File No. 814-00188) and incorporated by reference herein.
10.16	Second Amendment of Lease, dated August  5, 2015, by and between Sage Realty Corporation and Medallion Financial Corp. Filed as Exhibit 10.1 to the Current Report on form 8-K filed on August 7, 2015 (File No.  814-00188) and incorporated by reference herein.
10.17	Agreement of Lease, dated July 3, 2002, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.18	Amendment of Lease Agreement, dated October 29, 2004, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.19	Assignment of Lease, dated July  6, 2006, by and between Medallion Bank and Zerop Medical, LLC, and consented and agreed to by B-LINE Holdings, L.C. Filed herewith.

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Number	Description
10.20	Second Amendment of Lease Agreement, dated January 9, 2007, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.21	Third Amendment of Lease Agreement, dated October 31, 2007, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.22	Third Amendment of Lease Agreement, dated November 15, 2011, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.23	Fourth Amendment of Lease Agreement, dated November 21, 2011, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.24	Fifth Amendment of Lease Agreement, dated November 26, 2012, by and between B-LINE Holdings, L.C. and Medallion Bank. Filed herewith.
10.25	Sixth Amendment of Lease Agreement, dated January  26, 2017, by and between Investment Property Group, LLC, as successor-in-interest to B-LINE Holdings, L.C., and Medallion Bank. Filed herewith.
10.26	Seventh Amendment of Lease Agreement, dated May 10, 2017, by and between Investment Property Group, LLC and Medallion Bank. Filed herewith.
10.27	Eighth Amendment of Lease Agreement, dated March 28, 2018, by and between Investment Property Group, LLC and Medallion Bank. Filed herewith.
10.28	Letter from Mountain High Real Estate Advisors, Inc. to Medallion Bank, dated July  23, 2018, regarding 8th Amendment Lease Commencement. Filed herewith.
10.29	Commitment Letter, dated March  30, 2016, by the Small Business Administration to Medallion Capital, Inc., accepted and agreed to by Medallion Capital, Inc. on April  7, 2016. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on April 7, 2016 (filed No. 814-00188) and incorporated by reference herein.
10.30	Junior Subordinated Indenture, dated as of June  7, 2007, between Medallion Financing Trust I and Wilmington Trust Company as trustee. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on June  11, 2007 (File No. 814-00188) and incorporated by reference herein.
10.31	Purchase Agreement, dated as of June  7, 2007, among Medallion Financial Corp., Medallion Financing Trust I, and Merrill Lynch International. Filed as Exhibit 10.3 to the Current Report on Form 8-K filed on June 11, 2007 (File No. 814-00188) and incorporated by reference herein.
10.32	Servicing Agreement, dated as of December  12, 2008, by and among Taxi Medallion Loan Trust III, Medallion Funding Corp., and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.2 to the Current Report on Form 8-K filed on December 16, 2008 (File No. 814-00188) and incorporated by reference herein.
10.33	Loan Sale and Contribution Agreement, dated December  12, 2008, by and between Medallion Funding Corp. and Taxi Medallion Loan Trust III. Filed as Exhibit 10.3 to the Current Report on Form 8-K filed on December  16, 2008 (File No. 814-00188) and incorporated by reference herein.
10.34	Performance Guaranty, dated as of December  12, 2008, by Medallion Financial Corp., in favor of Taxi Medallion Loan Trust III, Autobahn Funding Company LLC, as Lender, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, as Agent. Filed as Exhibit 10.6 to the Current Report on Form 8-K filed on December 16, 2008 (File No. 814-00188) and incorporated by reference herein.
10.35	Reaffirmation Agreement, dated as of February  26, 2010, by and among Medallion Funding LLC, Taxi Medallion Loan Trust III, DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, in its capacity as Agent, and Wells Fargo Bank, National Association. Filed as Exhibit 10.2 to the Current Report on Form 8-K filed on March 5, 2010 (File No. 814-00188) and incorporated by reference herein.

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Number	Description
10.36	Custodial Agreement, dated as of December  12, 2008, among DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, Taxi Medallion Loan Trust III, Wells Fargo Bank, National Association, and Medallion Funding Corp. Filed as Exhibit j.2 to the Registration Statement on Form N-2 filed on December 20, 2011 (File No. 333-178644) and incorporated by reference herein.
10.37	Second Amended and Restated Trust Agreement, dated as of December  12, 2013, by and between Medallion Funding LLC and US Bank Trust, N.A. Filed as Exhibit 10.2 to the Current Report on Form 8-K filed on December 16, 2013 (File No.  814-00188) and incorporated by reference herein.
10.38	Amended and Restated Loan and Security Agreement, dated as of December  12, 2016, among Taxi Medallion Loan Trust III, Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on December 13, 2016 (File No. 814-00188) and incorporated by reference herein.
10.39	Amendment No. 1 to Second Amended and Restated Trust Agreement, dated as of December  12, 2016, by and among Medallion Funding LLC, U.S. Bank Trust, N.A. and DZ Bank AG Deutsche Zentral Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.2 to the Current Report on Form 8-K filed on December 13, 2016 (File No. 814-00188) and incorporated by reference herein.
10.40	Omnibus Amendment No. 1, dated as of February  15, 2017, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on February 17, 2017 (File No. 814-00188) and incorporated by reference herein.
10.41	Amendment No. 2 to Amended and Restated Loan and Security Agreement, dated as of June  7, 2017, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on June 8, 2017 (File No. 814-00188) and incorporated by reference herein.
10.42	Amendment No. 3 to Amended and Restated Loan and Security Agreement, dated as of June  30, 2017, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on July 6, 2017 (File No. 814-00188) and incorporated by reference herein.
10.43	Amendment No. 4 to Amended and Restated Loan and Security Agreement, dated as of July  14, 2017, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on July 18, 2017 (File No. 814-00188) and incorporated by reference herein.
10.44	Amendment No. 5 to Amended and Restated Loan and Security Agreement, dated as of November  9, 2017, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on November 9, 2017 (File No. 814-00188) and incorporated by reference herein.

79

Number	Description
10.45	Omnibus Amendment No. 2, dated as of March  13, 2018, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on March 14, 2018 (File No. 814-00188) and incorporated by reference herein.
10.46	Omnibus Amendment No. 3, dated as of May  30, 2018, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on May 30, 2018 (File No. 001-37747) and incorporated by reference herein.
10.47	Omnibus Amendment No. 4, dated as of September  6, 2018, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on September 6, 2018 (File No. 001-37747) and incorporated by reference herein.
10.48	Termination of Limited Recourse Guaranty and Amendment No.  6 to the Amended and Restated Loan and Security Agreement, dated as of November  8, 2018, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018 (File No. 001-33747) and incorporated by reference herein.
10.49	Amendment No. 7 to Amended and Restated Loan and Security Agreement, dated as of December  15, 2018, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on December 18, 2018 (File No. 001-37747) and incorporated by reference herein.
10.50	Amendment No.  8 to Amended and Restated Loan and Security Agreement, dated as of January 11, 2019, by and among Taxi Medallion Loan Trust III, Medallion Funding LLC, Medallion Financial Corp., Medallion Capital, Inc., Freshstart Venture Capital Corp., Autobahn Funding Company LLC, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on January 11, 2019 (File No. 001-37747) and incorporated by reference herein.
10.51	Custodian Agreement, effective July  23, 2003, among Wells Fargo Bank Minnesota, National Association, as custodian, and Medallion Financial Corp., Medallion Funding Corp. and Freshstart Venture Capital Corp. Filed as Exhibit j.1 to the Registration Statement on Form N-2 filed on December 20, 2011 (File No. 333-178644) and incorporated by reference herein.
10.52	Loan Agreement, effective as of January  25, 2017, by and among U.S. Small Business Administration, Freshstart Venture Capital Corp. and Medallion Financial Corp. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on January  31, 2017 (File No. 814-00188) and incorporated by reference herein.
10.53	Amendment No. 1 to Loan Agreement, dated as of October  20, 2017, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on October 26, 2017 (File No. 814-00188) and incorporated by reference herein.

80

Number	Description
10.54	Amendment No. 2 to Loan Agreement, dated and effective as of January  31, 2018, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on February 5, 2018 (File No. 814-00188) and incorporated by reference herein.
10.55	Amendment No.  3 to Loan Agreement, dated and effective as of January 31, 2019, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on February 1, 2019 (File No. 001-37747) and incorporated by reference herein.
10.56	Amendment No. 4 to Loan Agreement, dated and effective as of February  15, 2019, by and between U.S. Small Business Administration and Freshstart Venture Capital Corp. Filed as Exhibit 10.1 to the Current Report on Form 8-K filed on February 21, 2019 (File No. 001-37747) and incorporated by reference herein.
21.1	List of Subsidiaries of Medallion Financial Corp. Filed herewith.
23.1	Consent of Mazars USA LLP, independent registered public accounting firm, related to reports on financial statements of Medallion Financial Corp. and Medallion Bank. Filed herewith.
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 Larry D. Hall 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 Larry D. Hall pursuant to 18 USC. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
99.1	Consolidated Schedule of Investments for the years ended December 31, 2018. Filed herewith.
101.INS	XBRL Instance
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation

* Compensatory plan or arrangement required to be identified pursuant to Item 15(a)(3) of this Annual Report on Form 10-K.

ITEM 16. FORM 10-K SUMMARY

Not applicable.

81

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange of Act of 1934, registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MEDALLION FINANCIAL CORP.

Date:    March 13, 2019
By:	/s/ Alvin Murstein
	Alvin Murstein
	Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signatures	Title	Date
/s/ Alvin Murstein Alvin Murstein	Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer)	March 13, 2019
/s/ Larry D. Hall Larry D. Hall	Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	March 13, 2019
/s/ Andrew M. Murstein Andrew M. Murstein	President and Director	March 13, 2019
/s/ Henry L. Aaron Henry L. Aaron	Director	March 13, 2019
/s/ John Everets John Everets	Director	March 13, 2019
/s/ Frederick A. Menowitz Frederick A. Menowitz	Director	March 13, 2019
/s/ David L. Rudnick. David L. Rudnick	Director	March 13, 2019
/s/ Allan J. Tanenbaum Allan J. Tanenbaum	Director	March 13, 2019
/s/ Lowell P. Weicker, Jr. Lowell P. Weicker, Jr.	Director	March 13, 2019

82

MEDALLION FINANCIAL CORP.

INDEX TO FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm		F-2
Consolidated Balance Sheets as of December 31, 2018 and 2017		F-4
Consolidated Statements of Operations for the Years ended December  31, 2018, 2017, and 2016		F-5
Consolidated Statements of Other Comprehensive Income for the Years Ended December 31, 2018, 2017 and 2016		F-7
Consolidated Statements of Changes in Stockholders’ Equity and Changes in Net Assets for the Years ended December 31, 2018, 2017, and 2016		F-8
Consolidated Statements of Cash Flows for the Years ended December  31, 2018, 2017, and 2016		F-10
Notes to Consolidated Financial Statements		F-12
Consolidated Summary Schedules of Investments as of December  31, 2017		F-58
Consolidated Schedule of Investments In and Advances to Affiliates as of and for the year ended December 31, 2017		F-69

F-1

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Medallion Financial Corp.

Opinion on the Consolidated Financial Statements and Selected Financial Ratios and Other Data

We have audited the accompanying consolidated balance sheets of Medallion Financial Corp. and subsidiaries (the “Company”) as of December 31, 2018 and 2017, including the consolidated summary schedule of investments, as of December 31, 2017, and the related consolidated statements of operations, other comprehensive income (loss), changes in stockholders’ equity and changes in net assets, and cash flows for each of the three years in the three-year period ended December 31, 2018, and the related notes and schedules listed in the index to the financial statements and in Item 15(A)3 as Exhibit 99.1, and selected financial ratios and other data (see note 16) for each of the four years in the four-year period ended December 31, 2017 (collectively referred to as the “consolidated financial statements and selected financial ratios and other data”). In our opinion, the consolidated financial statements and selected financial ratios and other data present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations, changes in stockholders’ equity and net assets, and cash flows for each of the three years in the three-year period ended December 31, 2018, and the selected financial ratios and other data for each of the four years in the four-year period ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2018, based on the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 13, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As further described in Note 2 to the consolidated financial statements and selected financial ratios and other data, the Company withdrew its previous election to be regulated as a business development company under the Investment Company Act of 1940, effective April 2, 2018. The Company is not deemed to be an investment company under generally accepted accounting principles as of April 2, 2018, and therefore the Company no longer follows Financial Accounting Standards Board Accounting Standard Codification Topic 946, Financial Services – Investment Companies, and applies other generally accepted accounting principles for finance companies since that date.

Basis for Opinion

These consolidated financial statements and selected financial ratios and other data are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements and selected financial ratios and other data based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and selected financial ratios and other data are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements and selected financial ratios and other data, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts

F-2

and disclosures in the consolidated financial statements and selected financial ratios and other data. Our procedures included physical inspection or confirmation of securities owned as of December 31, 2017, or by other appropriate auditing procedures where replies were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and selected financial ratios and other data. We believe that our audits provide a reasonable basis for our opinion.

/s/ Mazars USA LLP

We have served as the Company’s auditor since 2005.

New York, New York

March 13, 2019

F-3

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

	Bank Holding Company Accounting			Investment Company Accounting
(Dollars in thousands, except share and per share data)	December 31, 2018			December 31, 2017
Assets
Cash (1)	$	23,842		$	12,690
Federal funds sold		33,871			—
Equity investments		9,197			—
Equity investments, at fair value		—			5,213
Equity investments in affiliated entities, at fair value		—			4,308
Investment securities		45,324			—
Investments in Medallion Bank and other controlled subsidiaries, at fair value		—			302,147
Loans		1,017,882			—
Medallion loans, at fair value		—			208,279
Commercial loans, at fair value		—			53,737
Commercial loans to affiliated entities, at fair value		—			999
Commercial loans to controlled subsidiaries, at fair value		—			35,452
Allowance for losses		(36,395	)		—
Net loans receivable		981,487			—
Net investments (1)		—			610,135
Accrued interest receivable (1)		7,413			547
Property and equipment, net		1,222			235
Loan collateral in process of foreclosure (1) (2)		49,495			—
Goodwill		150,803			—
Intangible assets, net		53,982			—
Investments other than securities		—			7,450
Other assets		25,210			4,465
Total assets	$	1,381,846		$	635,522
Liabilities
Accounts payable and accrued expenses (1)	$	18,789		$	4,373
Accrued interest payable (1)		3,852			3,831
Deposits		848,040			—
Short-term borrowings		55,178			—
Deferred tax liabilities and other tax payables		6,973			12,536
Long-term debt		158,810			—
Funds borrowed (1)		—			327,623
Total liabilities		1,091,642			348,363
Commitments and contingencies		—			—
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- 27,385,600 shares at December 31, 2018 and 27,294,327 shares at December 31, 2017 issued)		274			273
Additional paid in capital		274,292			273,716
Treasury stock (2,951,243 shares at December 31, 2018 and December 31, 2017)		(24,919	)		(24,919	)
Accumulated other comprehensive loss		(82	)		—
Retained earnings		13,043			—
Accumulated undistributed net investment loss		—			(65,592	)
Net unrealized appreciation on investments, net of tax		—			103,681
Total stockholders’ equity		262,608			287,159
Non-controlling interest in consolidated subsidiaries		27,596			—
Total equity		290,204			287,159
Total liabilities and equity	$	1,381,846		$	635,522
Number of shares outstanding		24,434,357			24,343,084
Book value per share/net asset value per share	$	10.75		$	11.80

(1) See Note 23 for details of balances related to a consolidated variable interest entity.

(2) Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,134.

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

F-4

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Combined (1)			Investment Company Accounting
	For the Years Ended
(Dollars in thousands, except per share data)	December 31, 2018			December 31, 2017		December 31, 2016
Interest and fees on loans	$	95,080		$	—	$	—
Interest income on investments		3,287			14,564		17,654
Dividend income from controlled subsidiaries		28			1,278		3,000
Interest income from affiliated investments		654			2,541		3,018
Interest income from controlled subsidiaries		10			165		596
Medallion lease income		133			198		538
Interest and dividends on investment securities		1,644			—		—
Dividend income from affiliated investments		—			—		201
Dividends and interest income on short-term investments		—			878		81
Total interest income (2)/total investment income (2)		100,836			19,624		25,088
Interest on deposits		14,230			—		—
Interest on short-term borrowings		4,441			—		—
Interest on long-term debt		6,145			—		—
Interest expense		3,551			13,770		12,638
Total interest expense (3)		28,367			13,770		12,638
Net interest income/net investment income		72,469			5,854		12,450
Provision for loan losses		59,008			—		—
Net interest income after provision for loan losses		13,461			5,854		12,450
Other income (loss)
Gain on deconsolidation of Trust III		25,325			—		—
Sponsorship and race winnings		14,368			—		—
Gain on sale of loans		4,946			—		—
Writedown of loan collateral in process of foreclosure		(2,188	)		—		—
Impairment of equity investments		(939	)		—		—
Other income		494			107		408
Total other income		42,006			107		408
Other expenses
Salaries and employee benefits		21,706			7,508		11,770
Professional fees		9,332			2,619		2,347
Race team related expenses		7,121			—		—
Intangible asset impairment		5,615			—		5,099
Collection costs		5,207			316		94
Loan servicing fees		3,470			—		—
Rent expense		2,040			1,069		966
Travel, meals, and entertainment		1,448			750		964
Regulatory fees		1,703			—		—
Amortization of intangible assets		1,083			—		—
Other expenses (4)		7,464			1,548		1,546
Total other expenses (5)		66,189			13,810		22,786

F-5

	Combined (1)			Investment Company Accounting
	For the Years Ended
(Dollars in thousands, except per share data)	December 31, 2018			December 31, 2017			December 31, 2016
Loss before income taxes/net investment loss before taxes (5)		(10,722	)		(7,849	)		(9,928	)
Income tax benefit (provision)		(373	)		728			10,047
Net loss after taxes/net investment income (loss) after taxes		(11,095	)		(7,121	)		119
Net realized gains (losses) on investments (6)		(34,745	)		(43,744	)		457
Income tax benefit (provision)		8,426			15,955			(384	)
Total net realized gains (losses) on investments		(26,319	)		(27,789	)		73
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries		29,115			9,483			130,121
Net change in unrealized depreciation on investments other than securities		(1,915	)		(2,060	)		(28,372	)
Net change in unrealized appreciation (depreciation) on investments		(4,403	)		8,222			(22,863	)
Income tax (provision) benefit		(8,122	)		19,543			(55,563	)
Net unrealized appreciation on investments		14,675			35,188			23,323
Net realized/unrealized gains (losses) on investments		(11,644	)		7,399			23,396
Net loss after taxes/net increase (decrease) on net assets resulting from operations		(22,739	)		278			23,515
Less: income attributable to the non-controlling interest		2,307			—			—
Total net income (loss) attributable to Medallion Financial Corp./net increase (decrease) on net assets resulting from operations	$	(25,046	)	$	278		$	23,515
Basic net income (loss) per share	$	(1.03	)	$	0.01		$	0.97
Diluted net income (loss) per share	$	(1.03	)	$	0.01		$	0.97
Distributions declared per share	$	—			—		$	0.35
Weighted average common shares outstanding
Basic		24,214,978			23,919,994			24,123,888
Diluted		24,214,978			24,053,307			24,173,020

(1) Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

(2) Included in interest and investment income is $1,869, $2,268 and $2,580 of paid in kind interest for the years ended December 31, 2018, 2017, and 2016.

(3) Average borrowings outstanding were $1,198,124, $334,022, and $380,305, and the related average borrowing costs were 2.37%, 4.12% and 3.32% for the years ended December 31, 2018, 2017, and 2016.

(4) See Note 15 for the components of other expenses.

(5) Includes $256, $870, and $1,235 of net revenues received from Medallion Bank for the years ended December 31, 2018, 2017, and 2016, primarily for expense reimbursements. See Notes 6 and 13 for additional information.

(6) There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018, 2017, and 2016.

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

F-6

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS)

	Combined (1)			Investment Company Accounting
	For the Years Ended
(Dollars in thousands)	December 31, 2018			December 31, 2017		December 31, 2016
Net loss after taxes/net increase on net assets resulting from operations	$	(22,739	)	$	278	$	23,515
Other comprehensive loss, net of tax		(82	)		—		—
Total comprehensive income (loss)		(22,821	)		278		23,515
Less: comprehensive income attributable to the non-controlling interest		2,307			—		—
Total comprehensive income (loss) attributable to Medallion Financial Corp.	$	(25,128	)	$	278	$	23,515

(1) Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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

F-7

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY AND CHANGES IN NET ASSETS

	Bank Holding & Investment Company Accounting															Investment Company Accounting								Bank Holding Company Accounting									Bank Holding & Investment Company Accounting
(Dollars in thousands)	Common Stock Shares			Common Stock		Preferred Stock		Capital in Excess of Par		Treasury Stock Shares			Treasury Stock			Accumulated undistributed net investment loss			Accumulated undistributed net realized gains on investments		Net unrealized appreciation on investments, net of tax			Retained Earnings			Accumulated Other Comprehensive Income			Total Stockholders’ Equity			Non-controlling Interest			Total Equity
Balance at December 31, 2017		27,294,327		$	273	$	—	$	273,716		(2,951,243	)	($	24,919	)	($	65,592	)	$	—	$	103,681		$	—		$	—		$	287,159		$	—		$	287,159
Net increase (decrease) in net assets resulting from operations		—			—		—		—		—			—			( 38,299	)		—		23,425			—			—			(14,874	)		—			(14,874	)
Stock-based compensation expense		—			1		—		151		—			—			—			—		—			—			—			152			—			152
Issuance of restricted stock, net		95,726			—		—		—		—			—			—					—			—			—			—			—
Balance at March 31, 2018		27,390,053			274		—		273,867		(2,951,243	)		(24,919	)		(103,891	)		—		127,106			—			—			272,437			—			272,437
Adoption of Bank Holding Company Accounting		—			—		—		—		—			—			103,891			—		(127,106	)		23,215			—			—			—			—
Balance at April 2, 2018		27,390,053			274		—		273,867		(2,951,243	)		( 24,919	)		—			—		—			23,215			—			272,437			27,065			299,502
Net loss		—			—		—		—		—			—			—			—		—			(10,172	)		—			(10,172	)		2,307			(7,865	)
Distributions to non-controlling interest		—			—		—		—		—			—			—			—		—			—			—			—			(1,776	)		(1,776	)
Stock-based compensation		—					—		425		—			—			—			—		—			—			—			425			—			425
Forfeiture of restricted stock, net		(4,453	)		—		—		—		—			—			—			—		—			—			—			—			—			—
Net change in unrealized losses on investments, net of tax		—			—		—		—		—			—			—			—		—			—			(82	)		(82	)		—			(82	)
Balance at December 31, 2018		27,385,600		$	274		—	$	274,292		(2,951,243	)	$	(24,919	)	$	—		$	—	$	—		$	13,043		$	(82	)	$	262,608		$	27,596		$	290,204

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

F-8

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	Investment Company Accounting
(Dollars in thousands, except per share data)	Year Ended December 31, 2017			Year Ended December 31, 2016
Net investment income (loss) after income taxes	$	(7,121	)	$	119
Net realized gains (losses) on investments, net of tax		(27,789	)		73
Net unrealized depreciation on investments, net of tax		35,188			23,323
Net increase in net assets resulting from operations		278			23,515
Investment income, net		—			(14,570	)
Return of capital		—			—
Realized gains from investment transactions, net		—			—
Distributions to shareholders (1)		—			(14,570	)
Stock-based compensation expense		785			568
Exercise of stock options		—			19
Treasury stock acquired		—			(1,524	)
Capital share transactions		785			(937	)
Total increase in net assets		1,063			8,008
Net assets at the beginning of the period		286,096			278,088
Net assets at the end of the period (2)	$	287,159		$	286,096
Capital share activity
Common stock issued, beginning of period		26,976,064			26,936,762
Exercise of stock options		—			2,100
Issuance of restricted stock, net		318,263			37,202
Common stock issued, end of period		27,294,327			26,976,064
Treasury stock, beginning of period		(2,951,243	)		(2,590,069	)
Treasury stock acquired		—			(361,174	)
Treasury stock, end of period		(2,951,243	)		(2,951,243	)
Common stock outstanding		24,343,084			24,024,821

(1) Distributions declared were $0.00 and $0.35 per share for the years ended December 31, 2017 and 2016.

(2) Includes $0 and $0 of undistributed net investment income and $0 and $0 of undistributed net realized gains on investments, and $0 and $0 of capital loss carryforwards at December 31, 2017 and 2016.

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

F-9

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Combined (1)			Investment Company Accounting
	Year Ended December 31,
(Dollars in  thousands)	2018			2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss/net increase in net assets resulting from operations	$	(22,739	)	$	278		$	23,515
Adjustments to reconcile net loss/net increase in net assets resulting from operations to net cash provided by operating activities:
Provision for loan losses		59,008			—			—
Loans originated		(8,193	)		(29,131	)		(324,753	)
Proceeds from principal receipts, sales, and maturities of loans (2)		13,279			46,755			393,104
Paid-in-kind interest		(1,869	)		(2,268	)		(2,580	)
Depreciation and amortization		5,564			1,019			485
Decrease/increase (decrease) in deferred and other tax asset/liabilities, net		13,637			(33,364	)		45,900
Amortization (accretion) of origination fees, net		3,132			68			(49	)
Proceeds from the sale of loan collateral in process of foreclosure		11,593			—			—
Net change in loan collateral in process of foreclosure		9,926			—			—
Capital returned by (investment in) Medallion Bank and other controlled subsidiaries, net		93			696			(3,326	)
Net realized gains on sale of investments		(5,921	)		—			—
Net change in unrealized (appreciation) depreciation on investments		6,457			(8,222	)		22,863
Net change in unrealized depreciation on investment other than securities		1,915			2,060			28,372
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries		(29,115	)		(9,483	)		(130,121	)
Net realized (gains) losses on investments		34,745			43,744			(457	)
Gain on deconsolidation of Trust III		(25,325	)		—			—
Intangible asset impairment		5,615			—			5,099
Stock-based compensation expense		576			785			568
Decrease in accrued interest receivable		797			222			234
Increase in other liabilities		4,196			—			—
Decrease in other assets		1,309			122			804
Increase (decrease) in accounts payable and accrued expenses		(675	)		(907	)		353
Increase in accrued interest payable		139			949			1,580
Net cash provided by operating activities		78,144			13,323			61,591
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated		(333,740	)		—			—
Proceeds from principal receipts, sales, and maturities of loans		302,409			—			—
Purchases of investments		(10,376	)		—			—
Proceeds from principal receipts, sales, and maturities of investments		6,417			—			—
Net cash used for investing activities		(35,290	)		—			—

F-10

	Combined (1)			Investment Company Accounting
	Year Ended December 31,
(Dollars in  thousands)	2018			2017			2016
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed		364,139			—			294,650
Repayments of time deposits and funds borrowed		(389,951	)		(21,450	)		(350,116	)
Purchase of federal funds		8,000			—			—
Repayments of federal funds		(8,000	)		—			—
Proceeds from exercise of stock options		—			—			19
Purchase of treasury stock		—			—			(1,524	)
Distributions to non-controlling interests		(1,776	)		—			—
Payments of declared distributions		(66	)		(145	)		(14,570	)
Net cash used for financing activities		(27,654	)		(21,595	)		(71,541	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1)		15,200			(8,272	)		(9,950	)
Cash and cash equivalents, beginning of period (3)		42,513			20,962			30,912
Cash and cash equivalents, end of period (4)	$	57,713		$	12,690		$	20,962
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest	$	25,102		$	11,897		$	10,682
Cash paid during the period for income taxes		85			62			—

(1) Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

(2) Originated investments of $280,563 and maturities or proceeds from sales of $330,466 related to the investment securities portfolio for the year ended December 31, 2016.

(3) Included in the beginning balance for the year ended December 31, 2018 was $29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank.

(4) Includes federal funds sold at December 31, 2018.

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

F-11

MEDALLION FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2018

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

Medallion Financial Corp. (the Company) is a 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 (the Bank), a Federal Deposit Insurance Corporation (FDIC) insured industrial bank, that originates consumer loans, raises deposits, and conducts other banking activities. Medallion 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. Medallion Bank was initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxicab medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. The loans are marketed and serviced by Medallion Bank’s affiliates that have extensive prior experience in these asset groups. Subsequent to its formation, Medallion Bank began originating consumer loans to finance the purchases of recreational vehicles (RVs), boats, and other related items, and to finance small scale home improvements. The Company also conducts business through Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC) which originates and services taxicab medallion and commercial loans.

The Company also conducts business through its subsidiaries Medallion Capital, Inc. (MCI), an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC which originates and services taxicab medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration (SBA). MCI and FSVC are financed in part by the SBA.

The Company has a controlling ownership stake in Medallion Motorsports, LLC, the primary owner of RPAC Racing, LLC (RPAC), a professional car racing team that competes in the Monster Energy NASCAR Cup Series, which is also consolidated with the Company.

The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation (MSC), to provide loan services to Medallion Bank. The Company has assigned all of its loan servicing rights for Medallion Bank, which consists of servicing taxi medallion loans originated by Medallion Bank, to MSC, which bills and collects the related service fee income from Medallion Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs.

Taxi Medallion Loan Trust III (Trust III) was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity (VIE), and MFC was the primary beneficiary and as a result the Company consolidated Trust III in its financial results until consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 23. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III 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 Trust III. Trust III’s loans are serviced by MFC.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I (Fin Trust) for the purpose of issuing unsecured 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 $36,141,000 at December 31, 2018, 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.

MFC, through several wholly-owned subsidiaries (together, Medallion Chicago), purchased $8,689,000 of City of Chicago taxicab medallions out of foreclosure, which are leased to fleet operators while being held for

F-12

sale. The 159 medallions are carried at a net realizable value of $4,305,000 on the Company’s consolidated balance sheet at December 31, 2018 compared to fair value of $7,450,000 at December 31, 2017.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act). Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of Medallion Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (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 loans 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act, effective April 2, 2018, Medallion Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018. See Note 6 for the presentation of financial information for Medallion Bank and other controlled subsidiaries for such prior periods.

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.

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.

F-13

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (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 18 and 19 to the consolidated financial statements.

Equity Investments

Equity investments of $9,197,000 at December 31, 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry. Included in the equity investments were non-marketable securities of $9,521,000 at December 31, 2017.

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments–Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and 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 $154,000, and $80,000 was amortized to interest income for the nine months ended December 31, 2018. Medallion Bank, a previously unconsolidated subsidiary under Investment Company Accounting for the period, had net premium on investment securities of $265,000 as of December 31, 2017, and $81,000 and $82,000 was amortized to interest income for the years ended December 31, 2017 and 2016. Refer to Note 3 for more details. 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 financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of shareholders’ 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 shareholder’s equity, which were recorded net of the income tax effect, will be reversed.

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in Medallion Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which

F-14

expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that Medallion Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in Medallion Bank and its portfolio assets at values in excess of their book value. Expression of interest in Medallion Bank from both investment bankers and interested parties has continued. The Company incorporated these new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the 2018 first quarter. Refer to Note 6 for additional details.

At December 31, 2017, there were non-marketable securities of $302,147,000 related to portfolio investments in controlled subsidiaries that were not consolidated with the Company. Because of the inherent uncertainty of valuations, the Board of Directors’ estimates of the values of the investments may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

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 is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2018 and December 31, 2017, net loan origination costs were $14,416,000 and $90,000 ($11,183,000 when combined with Medallion Bank). The 2018 amount reflects the amount of origination costs that were netted into the loan balances at April 2, 2018. Net amortization (accretion) to income for the years ended December 31, 2018, 2017 and 2016 was $3,128,000 ($3,993,000 when combined with Medallion Bank), $68,000 ($3,581,000 when combined with Medallion Bank), and ($49,000) ($3,440,000 when combined with Medallion Bank).

Interest income is recorded on the accrual basis. Taxicab 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 portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable 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 impaired. These 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 collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreational consumer loan portfolio, the process to repossess the collateral is started at 60 days past due. If the collateral is not located and the account

F-15

reaches 120 days delinquent, the account is charged off. If the collateral is repossessed, a loss is recorded to write 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 a recovery. Total loans more than 90 days past due were $20,154,000 at December 31, 2018, or 2.03% of the total loan portfolio, compared to $60,450,000, or 18.9% at December 31, 2017.

Loan collateral in process of foreclosure primarily includes taxicab 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. The taxicab medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company had $40,500,000 and $183,529,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2018 and December 31, 2017.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $140,180,000 at December 31, 2018 and $338,867,000 at December 31, 2017, which included $311,988,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and Medallion Bank, and determined that no material servicing asset or liability existed as of December 31, 2018 and 2017. The Company assigned its servicing rights of the Medallion Bank portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from Medallion Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $5,708,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the

F-16

Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Unrealized appreciation on investments was $139,700,000 as of December 31, 2017. Refer to Note 5 for additional details.

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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of December 31, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $53,982,000, and recognized $1,083,000 of amortization expense on the intangible assets for the year then ended (at a rate of $361,000 per quarter for three quarters). The Company engaged an expert to assess the goodwill and intangibles for impairment, who concluded there was no impairment on Medallion Bank and impairment on the RPAC intangible asset was $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the initial fair value detail inclusive of the goodwill and intangible assets related to the Bank as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
Medallion Bank
Assets
Net loans (1)			$	890,000
Other assets				130,393
Liabilities
Funds borrowed and other liabilities				(853,650	)
Total fair value excluding goodwill and intangibles				166,743
Goodwill				150,803
Intangibles				28,900
Total fair value (2)	$	346,446	$	346,446

(1) Includes $12,387 of premiums associated with the loan portfolio.

(2) Includes $26,303 of preferred stock held by the U.S. Treasury. See Note 21 for details.

F-17

The table below shows the initial fair value detail inclusive of the intangible assets related to RPAC as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
RPAC
Assets
Cash			$	1,647
Net fixed assets				774
Race cars and parts, net				203
Race cars held for sale				916
Other assets				1,902
Liabilities
Deferred revenue				(6,531	)
Notes payable (1)				(27,220	)
Other liabilities				(2,275	)
Total fair value excluding goodwill and intangibles				(30,584	)
Intangibles (2)				31,779
Total fair value (3)	$	1,195	$	1,195

(1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018.

(2) As of December 31, 2018 an assessment of the intangible asset resulted in impairment of $5,615 based upon the analysis of current market conditions using discounted cash flows.

(3) Fair value as of March 31, 2018 represents the Company’s investment in RPAC series D units.

The table below shows the details of the intangible assets as of December 31, 2018.

(in thousands)	December 31, 2018
Brand- related intellectual property	$	21,176
Home improvement contractor relationships		6,641
Race organization		26,165
Total intangible assets	$	53,982

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 $422,000, $94,000 ($232,000 had Medallion Bank been consolidated), and $110,000 ($225,000 had Medallion Bank been consolidated) for the years ended December 31, 2018, 2017, and 2016.

Deferred Costs

Deferred financing costs, included in other assets, represents costs associated with obtaining the Company’s borrowing facilities, and is amortized on a straight line basis over the lives of the related financing agreements. Amortization expense was $1,864,000, $925,000 ($2,255,000 had Medallion Bank been consolidated), and $722,000 ($2,091,000 had Medallion Bank been consolidated) for the years ended December 31, 2018, 2017, and

F-18

2016, recorded as interest expense. 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 amounts on the Company’s balance sheet for all of these purposes were $4,461,000 and $3,070,000 ($5,011,000 had Medallion Bank been consolidated) at December 31, 2018 and 2017.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. 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.

Sponsorship and Race Winnings

The Company accounts for the sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized based upon the contract terms and only over the course of the whole season, will revenue be recognized evenly throughout the ten months. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver.

F-19

Earnings (Loss) Per Share (EPS)

Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common shareholders 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 giving consideration to 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.

	Years Ended December 31,
(Dollars in thousands)	2018			2017		2016
Net (loss)/net increase in net assets resulting from operations available to common shareholders	$	(25,046	)	$	278	$	23,515
Weighted average common shares outstanding applicable to basic EPS		24,214,978			23,919,994		24,123,888
Effect of dilutive stock options		—			439		230
Effect of restricted stock grants		—			132,874		48,902
Adjusted weighted average common shares outstanding applicable to diluted EPS		24,214,978			24,053,307		24,173,020
Basic earnings (loss) per share	$	(1.03	)	$	0.01	$	0.97
Diluted earnings (loss) per share		(1.03	)		0.01		0.97

Potentially dilutive common shares excluded from the above calculations aggregated 100,000, 366,245, and 346,232 shares as of December 31, 2018, 2017, and 2016.

Stock Compensation

The Company follows FASB ASC Topic 718 (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 is reflected in net increase in net income/net assets 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/net increase net assets 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 2018, 2017, and 2016, the Company issued 101,010, 327,251, and 48,527 restricted shares of stock-based compensation awards, and issued 39,000, 29,666, and 12,000 shares of other stock-based compensation awards, and recognized $576,000, $785,000, and $568,000, or $0.02, $0.03, and $0.02 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2018, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $244,000, which is expected to be recognized over the next 10 quarters (see Note 9).

Regulatory Capital

Medallion 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

F-20

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 Medallion 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, Medallion Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with 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%, which would preclude their ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2018, the Bank’s Tier 1 leverage ratio was 15.85%. 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			December 31, 2018			December 31, 2017
Common equity Tier 1 capital		—			—		$	141,608		$	137,494
Tier 1 capital		—			—			167,911			163,797
Total capital		—			—			180,917			176,876
Average assets		—			—			1,059,461			1,127,087
Risk-weighted assets		—			—			993,374			995,145
Leverage ratio (1)		4.0	%		5.0	%		15.8	%		14.5	%
Common equity Tier 1 capital ratio (2)		4.5			6.5			14.3			13.8
Tier 1 capital ratio (3)		6.0			8.0			16.9			16.5
Total capital ratio (3)		8.0			10.0			18.2			17.8

(1) Calculated by dividing Tier 1 capital by average assets.

(2) Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.

(3) Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, commencing January 1, 2019, the Bank is required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%.

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as it relates to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

F-21

In January 2017, the FASB issued ASU 2017-04 Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. The aftermath of the global economic crisis and the delayed recognition of credit losses associated with loans (and other financial instruments) was identified as a weakness in the application of existing accounting standards. Specifically, because the existing “incurred” loss model delays recognition until it is probable a credit loss was incurred, the FASB explored alternatives that would use more forward-looking information. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities and is effective for fiscal years beginning after December 15, 2020 for all other entities, with early adoption permitted. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a significant impact on how the Company will account for estimated credit losses on its loans.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating under GAAP. ASU 2016-02 applies to all entities and is effective for fiscal years beginning after December 15, 2018 for public entities. The Company has assessed the impact the update will have on its financial condition and determined that effective January 1, 2019, a right-of-use asset and lease liability each of $13,997,000 would be recorded, and accrued/amortized over the remaining lease life terms. See Note 12 for additional information.

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.

(3) INVESTMENT SECURITIES (Bank Holding Company Accounting)

Fixed maturity securities available for sale at December 31, 2018 consisted of the following:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	32,184	$	15	$	(742	)	$	31,457
State and municipalities		14,239		35		(407	)		13,867
Total	$	46,423	$	50	$	(1,149	)	$	45,324

F-22

The amortized cost and estimated market value of investment securities as of December 31, 2018 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.

(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	26	$	26
Due after one year through five years		9,040		8,834
Due after five years through ten years		11,487		11,218
Due after ten years		25,870		25,246
Total	$	46,423	$	45,324

Information pertaining to securities with gross unrealized losses at December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

	Less than Twelve Months					Twelve Months and Over
(Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	(54	)	$	4,616	$	(688	)	$	24,871
State and municipalities		(78	)		5,429		(329	)		6,259
Total	$	(132	)	$	10,045	$	(1,017	)	$	31,130

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

As of December 31, 2017, under Investment Company Accounting, investment securities made up 0% of the net investments.

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES (Bank Holding Company Accounting)

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2018.

(Dollars in thousands)	Amount			As a Percent of Gross Loans
Recreation	$	587,038			58	%
Home improvement		183,155			18
Commercial		64,083			6
Medallion		183,606			18
Total gross loans		1,017,882			100	%
Allowance for loan losses		(36,395	)
Total net loans	$	981,487

F-23

The following table sets forth the activity in the allowance for loan losses for the nine months ended December 31, 2018.

(Dollars in thousands)	Nine Months Ended December 31, 2018
Allowance for loan losses – beginning balance (1)	$	—
Charge-offs
Recreation		(12,697	)
Home improvement		(1,562	)
Commercial		—
Medallion		(14,277	)
Total charge-offs		(28,536	)
Recoveries
Recreation		4,437
Home improvement		905
Commercial		4
Medallion		577
Total recoveries		5,923
Net charge-offs		(22,613	)(2)
Provision for loan losses (3)		59,008
Allowance for loan losses – ending balance	$	36,395

(1) Beginning balance for the nine months ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances, resulting in a starting point of zero for this table.

(2) As of December 31, 2018, cumulative charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $215,789, representing collection opportunities for the Company.

(3) Includes $5,708 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 16% of the total allowance, and 3.54% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018.

The following table sets forth the composition of the allowance for loan losses by type as of December 31, 2018.

(Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home Improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

F-24

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

	Bank Holding Company Accounting		Investment Company Accounting
(Dollars in thousands)	December 31, 2018		December 31, 2017 (1)		December 31, 2016 (2)
Total nonaccrual loans	$	34,877	$	98,494	$	77,161
Interest foregone for the year		1,153		823		1,317
Amount of foregone interest applied to principal for the year		535		52		638
Interest foregone life-to-date		1,952		12,485		10,658
Amount of foregone interest applied to principal life-to-date		1,214		3,495		7,834
Percentage of nonaccrual loans to gross loan portfolio		3%		31%		20%

(1) Does not include Medallion Bank nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

(2) Does not include Medallion Bank nonaccrual loans of $52,020, interest income foregone for the year of $683 and foregone interest paid and applied to principal for the year of $402, interest income foregone life-to-date of $1,034 and foregone interest paid and applied to principal life-to-date of $520.

The following presents our performance status of loans as of December 31, 2018 under Bank Holding Company Accounting.

(Dollars in  thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	581,250	$	5,788	$	587,038		0.99	%
Home improvement		183,018		137		183,155		0.07
Commercial		60,249		3,834		64,083		5.98
Medallion		158,488		25,118		183,606		13.68
Total	$	983,005	$	34,877	$	1,017,882		3.43	%

For those loans aged 31-90 days, 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.

F-25

The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2018 under Bank Holding Company Accounting, all of which had an allowance recorded against the principal balance.

	December 31, 2018						Nine Months Ended December 31, 2018
(Dollars in  thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment Recorded		Interest Income (Expense) Recognized
With an allowance recorded
Recreation	$	5,788	$	5,788	$	204	$	6,165	$	357
Home improvement		137		137		3		137		—
Commercial		3,834		3,929		—		6,036		(12)
Medallion		25,118		26,237		22,035		46,176		482
Total with allowance	$	34,877	$	36,091	$	22,242	$	58,514	$	827
Total nonperforming loans	$	34,877	$	36,091	$	22,242	$	58,514	$	827

The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2017 under Investment Company Accounting.

(Dollars in  thousands)	Recorded Investment (1) (2)		Unpaid Principal Balance		Average Recorded Investment
December 31, 2017
Medallion (3)	$	79,871	$	82,612	$	128,671
Commercial (3)		18,623		20,491		18,792

(1) As of December 31, 2017, $20,851 of unrealized depreciation was recorded as a valuation allowance on these loans.

(2) Interest income of $1,729 was recognized on loans for the year ended December 31, 2017.

(3) Included in the unpaid principal balance is unearned paid-in-kind interest on nonaccrual loans of $4,609 as of December 31, 2017, which is included in the nonaccrual disclosures on page F-25.

The following tables show the aging of all loans as of December 31, 2018 and December 31, 2017.

Bank Holding Company Accounting	Days Past Due												Recorded Investment > 90 Days and Accruing
December 31, 2018 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)
Recreation	$	18,483	$	5,655	$	4,020	$	28,158	$	539,051	$	567,209	$	—
Home improvement		715		283		135		1,133		184,528		185,661		—
Commercial		—		454		279		733		63,350		64,083		—
Medallion		8,689		3,652		15,720		28,061		148,774		176,835		—
Total	$	27,887	$	10,044	$	20,154	$	58,085	$	935,703	$	993,788	$	—

F-26

(1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

Investment Company Accounting	Days Past Due												Recorded Investment > 90 Days and Accruing
December 31, 2017 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total
Medallion loans	$	16,049	$	12,387	$	59,701	$	88,137	$	140,279	$	228,416	$	265
Commercial loans
Secured mezzanine		—		—		—		—		88,334		88,334		—
Other secured commercial		—		—		749		749		1,728		2,477		—
Total commercial loans		—		—		749		749		90,062		90,811		—
Total	$	16,049	$	12,387	$	60,450	$	88,886	$	230,341	$	319,227	$	265

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2018.

(Dollars in  thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans		11	$	5,581	$	5,581

During the year ended December 31, 2018, one loan modified as troubled debt restructurings were in default and had an investment value of $218,000 as of December 31, 2018, net of $71,000 of an allowance for loan loss under Bank Holding Company Accounting.

The following table shows troubled debt restructurings which the Company entered into during the year ended December 31, 2017.

(Dollars in thousands)	Number of Loans		Pre-Modification Investment		Post- Modification Investment
Medallion loans		63	$	39,898	$	39,824
Commercial loans		2		6,547		6,547
Total		65	$	46,445	$	46,371

During the year ended December 31, 2017, sixteen loans modified as troubled debt restructurings were in default and had an investment value of $4,248,000 as of December 31, 2017, net of $1,956,000 of unrealized depreciation.

F-27

The following table shows the activity of the loans in process of foreclosure, which relates only to the recreation and medallions loans, for the nine months ended December 31, 2018.

(Dollars in thousands)	Recreation			Medallions			Total
Loans in process of foreclosure – beginning balance (1)	$	1,369		$	51,479		$	52,848
Transfer from loans		9,289			25,369			34,658
Loan in process of foreclosure sales		(451	)		(2,533	)		(2,984	)
Principal payments		—			(4,275	)		(4,275	)
Collateral adjustment		(4,350	)		(4,122	)		(8,472	)
Liquidation		(4,354	)		(62	)		(4,416	)
Deconsolidation of Trust III		—			(17,864	)		(17,864	)
Total	$	1,503		$	47,992		$	49,495

(1) Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.

F-28

(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 years ended December 31, 2017 and 2016.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investment Securities			Investments Other Than Securities			Total
Balance December 31, 2015	$	(3,438	)	$	(2,239	)	$	18,640	$	2,582		$	(18	)	$	28,956		$	44,483
Net change in unrealized
Appreciation on investments		—			—			133,805		2,979			7			(28,372	)		108,419
Depreciation on investments		(28,028	)		318			305		—			5			—			(27,400	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(1,627	)		—			—			(1,627	)
Losses on investments		2,943			543			—		—			12			—			3,498
Other		—			—			—		—			(6	)		—			(6	)
Balance December 31, 2016		(28,523	)		(1,378	)		152,750		3,934			—			584			127,367
Net change in unrealized
Appreciation on investments		—			—			6,170		2,060			—			(821	)		7,409
Depreciation on investments		(37,335	)		(410	)		—		(277	)		—			(1,253	)		(39,275	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(3,082	)		—			—			(3,082	)
Losses on investments		45,520			1,275			—		486			—			—			47,281
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

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The table below summarizes pre-tax components of unrealized and realized gains and losses in the investment portfolio for the periods indicated under Investment Company Accounting.

	Three Months Ended March 31, 2018			Years Ended December 31,
(Dollars in thousands)				2017			2016
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	$	(998	)	$	2,060		$	2,986
Unrealized depreciation		(38,152	)		(38,022	)		(27,705	)
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		29,115			9,483			130,121
Realized gains		—			(3,082	)		(1,627	)
Realized losses		34,747			47,281			3,498
Net unrealized losses on investments other than securities and other assets		(1,915	)		(2,075	)		(28,387	)
Total	$	22,797		$	15,645		$	78,886
Net realized gains (losses) on investments
Realized gains	$	—		$	3,082		$	—
Realized losses		(34,747	)		(47,281	)		(3,486	)
Other gains		—			4,684			4,140
Direct charge-offs		2			(4,229	)		(197	)
Total	$	(34,745	)	$	(43,744	)	$	457

(6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES

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.

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The following table presents information derived from Medallion Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the years ended December 31, 2017 and 2016.

(Dollars in thousands)	2017			2016
Statement of comprehensive income
Investment income	$	111,281		$	103,454
Interest expense		13,869			11,762
Net interest income		97,412			91,692
Noninterest income		121			308
Operating expenses (1)		26,032			24,281
Net investment income before income taxes		71,501			67,719
Income tax provision (benefit)		15,093			(326	)
Net investment income after income taxes		56,408			68,045
Net realized/unrealized losses of Medallion Bank (1)		(51,696	)		(66,328	)
Net increase in net assets resulting from operations of Medallion Bank		4,712			1,717
Unrealized appreciation on Medallion Bank (2)		5,482			123,667
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank		(711	)		4,737
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	9,483		$	130,121

(1) Excluded from operating expenses and included in net realized/unrealized losses of Medallion Bank were $1,476 and $0 of unrealized losses on other assets for 2017 and 2016.

(2) Unrealized appreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the U.S. Treasury, and the fair value adjustments to the carrying amount of Medallion Bank.

F-31

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

(Dollars in thousands)	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 (1)		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 (2)	$	302,147

(1) Includes $26,303 of preferred stock issued to the U.S. 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.

(7) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows:

	Payments Due for the Fiscal Year Ending December 31,												Bank Holding Company Accounting December 31, 2018		Investment Company Accounting December 31, 2017		Interest Rate (1)
(Dollars in  thousands)	2019		2020		2021		2022		2023		Thereafter
Deposits	$	325,890	$	191,054	$	158,846	$	136,508	$	35,742	$	—	$	848,040	$	—		2.14	%
DZ loan		—		—		—		—		—		—		—		99,984		—
SBA debentures and borrowings		3,226		25,873		8,500		—		5,000		37,500		80,099		79,564		3.40	%
Notes payable to banks		51,452		458		7,145		280		280		—		59,615		81,450		4.55	%
Retail notes (2)		—		—		33,625		—		—		—		33,625		33,625		9.00	%
Preferred securities (2)		—		—		—		—		—		33,000		33,000		33,000		4.86	%
Other borrowings		500		7,149		—		—		—		—		7,649		—		2.00	%
Total	$	381,068	$	224,534	$	208,116	$	136,788	$	41,022	$	70,500	$	1,062,028	$	327,623		2.67	%

(1) Weighted average contractual rate as of December 31, 2018.

(2) Relates to loans held at the Company, Parent Company only.

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(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into 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. All time deposits are in denominations of less than $250,000 and have been originated through certificates of deposit broker relationships. The table presents time deposits of $100,000 or more by their maturity:

(Dollars in  thousands)	December 31, 2018
Three months or less	$	72,280
Over three months through six months		110,012
Over six months through one year		143,598
Over one year		522,150
Total deposits	$	848,040

(B) DZ LOAN

In December 2008, Trust III entered into the DZ loan agreement with DZ Bank, to provide up to $200,000,000 of financing through a commercial paper conduit to acquire medallion loans from MFC (DZ loan), which was extended in December 2013 until December 2016 through an amended and restated credit agreement, which has been further extended several times and currently terminates in September 2019. The line was reduced to $150,000,000, and was further reduced in stages to $125,000,000 on July 1, 2016, remained as an amortizing facility and was restructured during the fourth quarter of 2018.

Borrowings under Trust III’s DZ loan are collateralized by Trust III’s assets. MFC is the servicer of the loans owned by Trust III. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. See Note 23 for more information about Trust III and the DZ loan.

(C) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1% fee, which was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33,485,000 in principal into a new loan by the SBA to FSVC in the principal amount of $34,024,756 (the SBA Loan). In connection with the SBA Loan, FSVC executed a Note (the SBA Note), with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34,024,756. The SBA Loan bears interest at a rate of 3.25% per annum, required a minimum of $5,000,000 of principal and interest to be paid on or before February 1, 2018 (which was paid) and a minimum of $10,000,000 of principal and interest to be paid on or before March 15, 2019, and all remaining unpaid principal and interest on or before February 1, 2020, the final maturity date. The SBA Loan agreement contains covenants and events of defaults, including, without limitation, payment defaults, breaches of representations and warranties and covenants defaults. As of December 31, 2018, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $80,099,000 was outstanding, including $29,099,000 under the SBA Note.

(D) NOTES PAYABLE TO BANKS

The Company and its subsidiaries have entered into note agreements with a variety of local and regional banking institutions over the years. The notes are typically secured by various assets of the underlying borrower.

F-33

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2018.

(Dollars in thousands)
Borrower	# of Lenders/ Notes		Note Dates		Maturity Dates		Type	Note Amounts			Balance Outstanding at December 31, 2018		Monthly Payment			Average Interest Rate at December 31, 2018			Interest Rate Index(1)
The Company		6/6		4/11 - 8/14		3/19 - 7/19	Term loans and demand notes secured by pledged loans (2)	$	38,870	(2)	$	38,870		Interest only	(3)		5.09	%		Various	(3)
Medallion  Chicago		3/28		11/11 - 12/11		6/19 - 9/21	Term loans secured by owned Chicago medallions (4)		25,708			19,345		$171 of principal & interest			3.50	%		N/A
Medallion  Funding		1/1		11/18		12/23			1,400			1,400		$70 principal & interest paid quarterly			4.00	%		N/A
								$	65,978		$	59,615

(1) At December 31, 2018, 30 day LIBOR was 2.50%, 360 day LIBOR was 3.01%, and the prime rate was 5.50%.

(2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.

(3) Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $75.

(4) Guaranteed by the Company.

In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. See Note 23 for more information.

(E) RETAIL NOTES

In April 2016, the Company issued a total of $33,625,000 aggregate principal amount of 9.00% unsecured notes due 2021, with interest payable quarterly in arrears. The Company used the net proceeds from the offering of approximately $31,786,000 to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under its DZ loan in the ordinary course of business.

(F) PREFERRED SECURITIES

In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (2.81% at December 31, 2018) plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2,000,000 of the preferred securities were repurchased from a third party investor. At December 31, 2018, $33,000,000 was outstanding on the preferred securities.

(G) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 13 for more details). At December 31, 2017, the total outstanding on these notes was

F-34

$7,007,894 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. As of December 31, 2018, $7,149,000 was outstanding on these notes. Additionally, RPAC has a short term promissory note to Travis Burt, an unrelated party, for $500,000 due on December 31, 2019.

(H) COVENANT COMPLIANCE

Certain of our debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth, which in the event of noncompliance could preclude their ability to pay dividends to the Company.

(8) 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, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries in which it holds 80 percent or more of the outstanding equity interest measured by both vote and fair value.

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

(Dollars in thousands)	2018			2017
Goodwill and other intangibles/unrealized gain on investment in Medallion Bank	($	45,272	)	($	35,297	)
Provision for loan losses/unrealized losses on loans and nonaccrual interest		25,790			10,071
Net operating loss carryforwards (1)		11,132			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 assets		1,844			782
Unrealized gains on other investments		(2,024	)		(542	)
Total deferred tax liability		(8,530	)		(29,383	)
Valuation allowance		(255	)		(39	)
Deferred tax liability, net		(8,785	)		(29,422	)
Taxes receivable		1,812			16,886
Net deferred and other tax liabilities	($	6,973	)	($	12,536	)

(1) As of December 31, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $1,969 as of the balance sheet date.

F-35

The components of our tax benefit (provision) for the years ended December 31, 2018, 2017, and 2016 were as follows.

(Dollars in thousands)	2018			2017			2016
Current
Federal	($	2,797	)	$	15,613		$	2,690
State		(1,078	)		756			689
Deferred
Federal		5,270			(4,169	)		(39,028	)
Federal income tax rate change		—			17,279			—
State		(1,464	)		6,747			(10,251	)
Net benefit (provision) for income taxes	($	69	)	$	36,226		($	45,900	)

The following table presents a reconciliation of statutory federal income tax benefit (provision) to consolidated actual income tax (benefit) expense reported for the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands)	2018			2017			2016
Statutory Federal Income tax at 21% (35% in 2017 and 2016)	$	4,935		$	12,582		($	24,295	)
State and local income taxes, net of federal income tax benefit		440			645			(3,829	)
Federal income tax rate change		—			17,279			—
Change in effective state income tax rate		(2,564	)		3,232			—
Utilization of carry forwards		(910	)		2,284			—
Appreciation of Medallion Bank		(1,974	)		1,050			—
Conversion to a taxable corporation		—			—			(16,630	)
Book impairment of goodwill		—			—			(2,065	)
Other		4			(846	)		919
Total income tax benefit (provision)	($	69	)	$	36,226		($	45,900	)

On December 22, 2017, the U.S. Government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences.

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 valuation allowance deemed necessary as of December 31, 2018.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah tax filings of the Company for the tax years 2015 through the present are the more significant filings that are open for examination. Currently the Company and the Bank are undergoing various state exams covering the years 2009 to 2011 and 2013 to 2017.

(9) STOCK OPTIONS AND RESTRICTED STOCK

The Company has a stock option plan (2006 Stock Option Plan) available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of

F-36

Directors on February 15, 2006 and shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan is administered by the Compensation Committee of the Board of Directors. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. The term and vesting periods of the options are determined by the Compensation Committee, provided that the maximum term of an option may not exceed a period of ten years.

The Company’s Board of Directors approved the 2018 Equity Incentive Plan (2018 Plan), which was approved by the Company’s shareholders 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, including options, restricted stock, stock appreciation rights, etc. A total of 1,500,253 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,458,407 remained issuable as of December 31, 2018. 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 first occurs.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan (2015 Restricted Stock Plan) on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provide for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock were issuable under the 2015 Restricted Stock Plan, and 241,919 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. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever first occurs.

The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan (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 will grant 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 are elected to serve less than a full term. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options may not exceed ten years.

The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan (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 will 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 are elected to serve less than a full term. The option price per

F-37

share may not be less than the current market value of the Company’s common stock on the date the option is granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options may not exceed ten years.

Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2018, 144,666 options on the Company’s common stock were outstanding under the Company’s plans, of which 81,889 options were exercisable, and there were 190,915 unvested shares of the Company’s common stock outstanding under the Company’s restricted stock plans.

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. The weighted average fair value of options granted was $1.06, $0.28, and $0.53 per share for the years ended December 31, 2018, 2017, and 2016. The following assumption categories are used to determine the value of any option grants.

	Year ended December 31,
	2018			2017			2016
Risk free interest rate		2.82	%		1.84	%		1.22	%
Expected dividend yield		4.86			7.39			10.13
Expected life of option in years (1)		6.00			6.00			6.00
Expected volatility (2)		30.00	%		30.00	%		30.00	%

(1) Expected life is calculated using the simplified method.

(2) We determine our expected volatility based on our historical volatility.

The following table presents the activity for the stock option programs for the years ended December 31, 2018, 2017, and 2016.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2015		446,254		$	7.49-13.84	$	10.38
Granted		12,000			7.10		7.10
Cancelled		(110,636	)		9.22-13.84		12.25
Exercised (1)		(2,100	)		9.22		9.22
Outstanding at December 31, 2016		345,518			7.10-13.84		9.67
Granted		29,666			2.14-2.61		2.35
Cancelled		(54,558	)		10.76-11.21		10.94
Exercised (1)		—			—		—
Outstanding at December 31, 2017		320,626			2.14-13.84		8.78
Granted		39,000			5.27-5.58		5.46
Cancelled		(214,960	)		9.22-9.24		9.22
Exercised (1)		—			—		—
Outstanding at December 31, 2018 (2)		144,666		$	2.06-13.84	$	7.23
Options exercisable at
December 31, 2016		312,518		$	7.49-13.84	$	9.75
December 31, 2017		273,960			7.10-13.84		9.50
December 31, 2018 (2)		81,889			2.14-13.84		9.25

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(1) The aggregate intrinsic value, 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 $0, $0, and $0 for 2018, 2017, and 2016.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2018 and the related exercise price of the underlying options, was $69,000 for outstanding options and $23,000 for exercisable options as of December 31, 2018. The remaining contractual life was 6.97 years for outstanding options and 5.35 years for exercisable options at December 31, 2018.

The following table presents the activity for the restricted stock programs for the years ended December 31, 2018, 2017, and 2016.

	Number of Shares			Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2015		209,040		$	9.08-15.61	$	10.96
Granted		48,527			3.95-7.98		4.47
Cancelled		(11,325	)		9.92-15.61		11.17
Vested (1)		(78,539	)		9.08-15.61		11.38
Outstanding at December 31, 2016		167,703			3.95-13.46		8.88
Granted		327,251			2.06-3.93		2.48
Cancelled		(8,988	)		2.14-10.08		3.07
Vested (1)		(77,384	)		9.08-13.46		11.09
Outstanding at December 31, 2017		408,582			2.06-10.38		3.45
Granted		101,010			3.93-5.27		4.41
Cancelled		(9,737	)		3.93-9.08		4.66
Vested (1)		(308,940	)		2.06-10.38		3.35
Outstanding at December 31, 2018 (2)		190,915		$	2.14-5.27	$	4.06

(1) The aggregate fair value of the restricted stock vested was $1,270,000, $169,000, and $722,000 for 2018, 2017, and 2016.

(2) The aggregate fair value of the restricted stock was $895,000 as of December 31, 2018. The remaining vesting period was 1.21 years at December 31, 2018.

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2018.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		46,666		$	2.14-9.38	$	4.52
Granted		39,000			5.27-5.58		5.46
Cancelled		—			—		—
Vested		(22,889	)		2.14-9.38		5.95
Outstanding at December 31, 2018		62,777		$	2.14-7.10	$	4.59

The intrinsic value of the options vested was $32,000, $0, and $0 in 2018, 2017, and 2016.

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(10) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table presents the Company’s quarterly results of operations for the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands, except per share data)	March 31			June 30			September 30			December 31
2018 Quarter Ended (1)
Net interest income/net investment income	$	482		$	24,719		$	24,265		$	23,003
Income (loss) before income taxes/net investment loss before taxes		(3,566	)		(17,905	)		(3,963	)		14,712
Net income (loss) after taxes/net decrease on net assets resulting from operations		(14,874	)		(13,884	)		(3,846	)		9,865
Net income (loss) attributable to Medallion Financial Corp./net decrease in net assets resulting from operations		(14,874	)		(14,647	)		(4,697	)		9,172
Basic	($	0.62	)	($	0.60	)	($	0.19	)	$	0.38
Diluted		(0.62	)		(0.60	)		(0.19	)		0.38
2017 Quarter Ended
Investment income	$	4,250		$	3,787		$	5,567		$	6,020
Net investment loss after income taxes		(435	)		(1,293	)		(2,490	)		(2,903	)
Net increase (decrease) in net assets resulting from operations		1,111			(4,797	)		619			3,345
Net increase (decrease) in net assets resulting from operations per common share
Basic	$	0.05		($	0.20	)	$	0.03		$	0.14
Diluted		0.05			(0.20	)		0.03			0.14
2016 Quarter Ended
Investment income	$	8,986		$	5,836		$	5,269		$	4,997
Net investment income (loss) after income taxes		2,039			(1,402	)		(2,606	)		2,088
Net increase in net assets resulting from operations		6,848			4,568			5,043			7,056
Net increase in net assets resulting from operations per common share
Basic	$	0.28		$	0.19		$	0.21		$	0.29
Diluted		0.28			0.19			0.21			0.29

(1) The three months ended March 31, 2018 have been accounted for under Investment Company Accounting and subsequent 2018 quarters have been accounted for under Bank Holding Company Accounting.

(11) SEGMENT REPORTING (Bank Holding Company Accounting)

Under Bank Holding Company Accounting, the Company has six business segments, which include four lending and two non-operating segments, which are reflective of how Company management makes decisions about its business and operations.

Prior to April 2, 2018, the Company had one business segment, its lending and investing operations. This segment originated and serviced medallion, secured commercial and consumer loans, and invested in both marketable and nonmarketable securities.

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank in all fifty states, with the highest concentrations in Texas, California, and Florida, at 18%, 11%, and 10% of loans outstanding and with no other states over 10% as of December 31, 2018. The recreation lending segment is a consumer finance business that works with third-party dealers and financial

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service providers for the purpose of financing RVs, boats, and other consumer recreational equipment. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, solar panels, roofs, and windows, at 31%, 16%, 15%, and 11% of total loans outstanding, respectively, and with no other product lines over 10% as of December 31, 2018. The commercial lending segment focuses on enterprise wide industries, including manufacturing, retail trade, information, recreation and various other industries, in which 42% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the taxicab medallions, taxicabs, and related assets, of which 87% were in New York City as of December 31, 2018.

In addition, our non-operating segments include RPAC which is a race car team and our corporate and other segment which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements.

The following table presents segment data at December 31, 2018 and for the nine months then ended.

Nine Months Ended December 31, 2018	Consumer Lending						Commercial Lending			Medallion Lending			RPAC			Corp. and Other			Consolidated
(Dollars in thousands)	Recreation			Home Improvement
Total interest income	$	68,870		$	12,799		$	7,459		$	6,317		$	—		$	1,358		$	96,803
Total interest expense		6,986			2,290			2,037			10,125			121			3,257			24,816
Net interest income (loss)		61,884			10,509			5,422			(3,808	)		(121	)		(1,899	)		71,987
Provision for loan losses		15,118			2,453			—			41,437			—			—			59,008
Net interest income after loss provision		46,766			8,056			5,422			(45,245	)		(121	)		(1,899	)		12,979
Sponsorship and race winnings		—			—			—			—			14,368			—			14,368
Race team related expenses		—			—			—			—			(7,121	)		—			(7,121	)
Other income (expense)		(14,242	)		(3,093	)		(1,917	)		9,742			(11,476	)		(6,396	)		(27,382	)
Net income before taxes		32,524			4,963			3,505			(35,503	)		(4,350	)		(8,295	)		(7,156	)
Income tax benefit (provision)		(8,579	)		(1,319	)		(808	)		7,938			1,108			951			(709	)
Net income (loss) after tax	$	23,945		$	3,644		$	2,697		($	27,565	)	($	3,242	)	($	7,344	)	($	7,865	)
Balance Sheet Data
Total loans net	$	580,182		$	181,359		$	64,083		$	155,863		$	—		$	—		$	981,487
Total assets		590,746			188,892			90,264			273,501			29,925			208,522			1,381,846
Total funds borrowed		434,527			143,815			51,266			294,465			7,649			130,306			1,062,028
Selected Financial Ratios
Return on assets		5.48	%		2.56	%		3.59	%		(10.13	%)		(11.69	%)		(4.13	%)		(0.90	%)
Return on equity		22.60			11.30			7.52			NM			NM			(13.18	)		(4.62	)
Interest yield		15.78			9.06			12.61			3.58			N/A			N/A			10.98
Net interest margin		14.18			7.44			9.17			(2.16	)		N/A			N/A			8.19
Reserve coverage		1.17			0.98			0.00			15.11			N/A			N/A			3.58
Delinquency ratio		0.69			0.07			0.44			8.89			N/A			N/A			2.03
Charge-off ratio		1.89			0.46			0.00			7.21			N/A			N/A			2.73

(12) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a two- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the

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first year, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Annually, the contracts with a two-year term will renew for new 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-year term. 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.

Employment agreements expire at various dates through 2023. At December 31, 2018, minimum payments under employment agreements were as follows:

(Dollars in thousands)
2019	$	2,062
2020		889
2021		665
2022		665
2023		277
Thereafter		—
Total	$	4,558

(B) OTHER COMMITTMENTS

The Company had no commitments outstanding at December 31, 2018. Generally, commitments are on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Commitments for leased premises expire at various dates through April 30, 2027. At December 31, 2018, minimum rental commitments for non-cancelable leases were as follows:

(Dollars in thousands)
2019	$	2,357
2020		2,380
2021		2,278
2022		2,216
2023		2,136
Thereafter		6,048
Total	$	17,415

Occupancy expense was $2,287,000, $1,069,000, and $966,000 for the years ended December 31, 2018, 2017, and 2016.

(C) LITIGATION

The Company and its subsidiaries become defendants to various legal proceedings arising from the normal course of business. In the opinion of management, based on the advice of legal counsel, other than as set forth in the following paragraph 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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On December 20, 2017, a stockholder derivative action was filed in the Supreme Court of the State of New York, County of New York (Shields v. Murstein, et al.). The complaint named the Company as a nominal defendant and purports to assert claims derivatively on behalf of the Company against certain of the Company’s current directors, one of the Company’s former directors, and a former independent contractor for one of the Company’s subsidiaries. The complaint alleged that the director defendants breached their fiduciary duties with respect to certain alleged misconduct by the former independent contractor involving postings about the Company under an alleged pseudonym. On January 25, 2018, the Company and the director defendants filed a motion to dismiss the action. On June 27, 2018, a hearing was held on the motion. On November 26, 2018, the Court entered a decision granting the motion. On December 17, 2018, the Court entered an order dismissing the plaintiff’s complaint with prejudice. The time for the plaintiff to appeal the Court’s order has elapsed.

(D) REGULATORY

In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of Freshstart’s transfer to liquidation status and the restructure of the Freshstart loan described in Note 7.

(13) RELATED PARTY TRANSACTIONS

Certain directors, officers, and shareholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and Medallion 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, is an officer of LAX Group, LLC (LAX), one of the Company’s equity investments. Mr. Rudnick receives a salary from LAX of $171,000 per year, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year-end bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200.

The Company’s consolidated subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which they make an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Mr. Petty of $7,149,000 that earns interest at an annual rate of 2% as of December 31, 2018.

The Company and MSC serviced $311,988,000 and $325,751,000 of loans for Medallion Bank at December 31, 2017 and 2016. Under Investment Company Accounting, included in net investment income were amounts as described in the table below that were received from Medallion Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf.

The Company assigned its servicing rights to the Medallion Bank portfolio to MSC, a wholly-owned entity that had been unconsolidated under Investment Company Accounting. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from Medallion Bank by MSC. As a result, $5,272,000 and $5,421,000 of servicing fee income was earned by MSC in the years ended December 31, 2017 and 2016.

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The following table summarizes the net revenues received from Medallion Bank not eliminated under Investment Company Accounting.

	Three Months Ended March 31,		Year Ended December 31,
(Dollars in thousands)	2018		2017		2016
Reimbursement of operating expenses	$	250	$	865	$	1,006
Loan origination and servicing fees		6		5		229
Total other income	$	256	$	870	$	1,235

The Company had a loan to Medallion Fine Art, Inc., a wholly-owned entity that had been unconsolidated under Investment Company Accounting, in the amount of $999,000 as of December 31, 2017, which was repaid in full during the 2018 first quarter. The loan bore interest at a rate of 12%, all of which was paid in kind. During 2017, the Company advanced $0, and was repaid $2,365,000 with respect to this loan. Additionally, the Company recognized $10,000 of interest income not eliminated for the year ended December 31, 2018, and $165,000 and $596,000 of interest income in 2017 and 2016.

The Company and MCI have loans to RPAC, an affiliate of Medallion Motorsports LLC, which totaled $16,472,000 as of December 31, 2017 and under Investment Company Accounting had not been eliminated, and which were placed on nonaccrual during 2017. These loans have been eliminated in consolidation for the nine months ended December 31, 2018. The loans bear interest at 2%, inclusive of cash and paid in kind interest. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018 and during the years ended December 31, 2017 and 2016, recognized $56,000 and $626,000 of interest income with respect to these loans.

(14) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY

In November 2003, the Company announced a stock repurchase program which authorized the repurchase of up to $10,000,000 of common stock during the following six months, with an option for the Board of Directors to extend the time frame for completing the purchases, which expired in May 2018. In November 2004, the repurchase program was increased by an additional $10,000,000, which was further increased to a total of $20,000,000 in July 2014, and which was further increased to a total of $26,000,000 in July 2015. As of December 31, 2018, a total of 2,931,125 shares had been repurchased for $24,587,000. There were no purchases in 2018 and 2017, and purchases were 361,174 shares for $1,524,000 in 2016.

(15) OTHER OPERATING EXPENSES (Investment Company Accounting)

The major components of other expenses were as follows.

	Three Months Ended,		Year ended December 31,
(Dollars in thousands)	March 31, 2018		2017		2016
Directors’ fees	$	89	$	319	$	387
Miscellaneous taxes		120		258		328
Computer expense		74		244		257
Other expenses		304		727		574
Total other operating expenses	$	587	$	1,548	$	1,546

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(16) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting)

The following table provides selected financial ratios and other data for the periods indicated.

	Three Months Ended March 31,			Year ended December 31,
(Dollars in thousands, except per share data)	2018			2017			2016			2015			2014
Net share data
Net asset value at the beginning of the year	$	11.80		$	11.91		$	11.42		$	11.16		$	10.95
Net investment income (loss)		(0.15	)		(0.33	)		(0.41	)		0.69			0.60
Income tax provision (benefit)		0.03			1.51			(1.90	)		0.00			0.00
Net realized gains (losses) on investments		(1.44	)		(1.82	)		0.02			0.31			(0.22	)
Net change in unrealized appreciation on investments		0.94			0.65			3.26			0.20			0.76
Net increase (decrease) in net assets resulting from operations		(0.62	)		0.01			0.97			1.20			1.14
Issuance of common stock		(0.03	)		(0.12	)		—			—			(0.01	)
Repurchase of common stock		—			—			0.12			0.06			0.03
Distribution of net investment income		—			—			(0.60	)		(0.81	)		(0.60	)
Return of capital		—			—			—			(0.18	)		(0.35	)
Distribution of net realized gains on investments		—			—			—			—			—
Total distributions		—			—			(0.60	)		(0.99	)		(0.95	)
Other		—			—			—			(0.01	)		—
Total increase (decrease) in net asset value		(0.65	)		(0.11	)		0.49			0.26			0.21
Net asset value at the end of the period/year (1)	$	11.15		$	11.80		$	11.91		$	11.42		$	11.16
Per share market value at beginning of year	$	3.53		$	3.02		$	7.04		$	10.01		$	14.35
Per share market value at end of period/year		4.65			3.53			3.02			7.04			10.01
Total return (2)		(129	%)		17	%		(54	%)		(22	%)		(25	%)
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	272,437		$	287,159		$	286,096		$	278,088		$	274,670
Average net assets		284,021			285,704			276,978			276,745			276,254
Total expense ratio (3) (4) (5)		10.02	%		(3.03	%)		29.36	%		9.45	%		9.57	%
Operating expenses to average net assets (4) (5)		5.87			4.83			8.23			6.04			6.48
Net investment income (loss) after income taxes to average net assets (4) (5)		(4.61	)		(2.49	)		0.04			6.08			5.48

(1) Includes $0.00 of undistributed net investment income per share as of three months ended March 31, 2018 and December 31, 2017, 2016, 2015 and 2014, and $0.00 of undistributed net realized gains per share for all periods presented.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, $5,658, and $5,946, and operating expenses of $1,150, $4,211, $5,249, $6,044, and $6,005 which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, 2015, and 2014. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been

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11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, 11.63%, 8.23%, and 5.94% in 2015, and 11.74%, 8.65%, and 5.46% in 2014.

(5) These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

(17) EMPLOYEE BENEFIT PLANS

The Company has a 401(k) Investment Plan (the 401(k) Plan) which covers all full-time and part-time employees of the Company who have attained the age of 21 and have a minimum of one year of service, including the employees of Medallion Bank. Under the 401(k) Plan, an employee may elect to defer not less than 1% and no more than 15% of the total annual compensation that would otherwise be paid to the employee, provided, however, that employee’s contributions may not exceed certain maximum amounts determined under the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. The Company matches employee contributions to the 401(k) Plan in an amount per employee up to one-third of such employee’s contribution but in no event greater than 2% of the portion of such employee’s annual salary eligible for 401(k) Plan benefits. The Company’s 401(k) plan expense, including amounts for the employees of Medallion Bank and other consolidated subsidiaries in the prior year periods, was approximately $182,000, $185,000, and $187,000 for the years ended December 31, 2018, 2017, and 2016.

(18) 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 – Book value equals fair value.

(b) Equity securities – The Company’s equity securities are recorded at cost less impairment, which approximated fair value.

(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 approximated 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 December 31, 2018 and December 31, 2017, the estimated fair value of these off-balance-sheet instruments was not material.

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(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.

	Bank Holding Company Accounting December 31, 2018				Investment Company Accounting December 31, 2017
(Dollars in  thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and federal funds sold (1)	$	57,713	$	57,713	$	12,690	$	12,690
Equity investments		9,197		9,197		—		—
Investment securities		45,324		45,324		—		—
Loans receivable		981,487		981,487		—		—
Investments		—		—		610,135		610,135
Accrued interest receivable (2)		7,413		7,413		547		547
Financial liabilities
Funds borrowed (3)		1,062,028		1,062,297		327,623		330,084
Accrued interest payable (2)		3,852		3,852		3,831		3,831

(1) Categorized as level 1 within the fair value hierarchy.

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

(3) As of December 31, 2018 and 2017, publicly traded unsecured notes traded at a premium to par of $269 and $2,461.

(19) 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). Our 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 (level 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 (level 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 US 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);

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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. The following paragraphs describe the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis under both Bank Holding Company Accounting (applicable as of June 30, 2018 and for the quarter then ended) and Investment Company Accounting (applicable to prior periods).

Bank Holding Company Accounting

Commencing with the quarter ended June 30, 2018, equity investments are recorded at cost and are evaluated for impairment periodically.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2018.

Bank Holding Company Accounting (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,197	$	9,197
Available for sale investment securities (1)		—		45,324		—		45,324
Total	$	—	$	45,324	$	9,197	$	54,521

(1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

Investment Company Accounting

Medallion loans are primarily collateral-based lending, whereby the collateral value exceeds the amount of the loan, providing sufficient excess collateral to protect against losses to the Company. As a result, under Investment Company Accounting, the initial valuation assessment was that as long as the loan is current and performing, its fair value approximates the par value of the loan. To the extent a loan became nonperforming, the collateral value would be adequate to result in a complete recovery. In a case where the collateral value was inadequate, an unrealized loss would be recorded to reflect any shortfall. Collateral values for medallion loans are typically obtained from transfer prices reported by the regulatory agency in a particular local market (e.g.

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New York City Taxi and Limousine Commission). Recently, as transfer price activity and the collateral value of medallion loans has declined, greater weight was placed on the operating cash flows of the borrowers and the values of their personal guarantees in determining whether or not a valuation adjustment would be necessary. Those portfolios had historically been at very low loan to collateral value ratios, and as a result, historically were not highly sensitive to changes in collateral values. Over the last few years, as medallion collateral values declined, the impact on the Company’s valuation analysis had become more significant, which could have resulted in a significantly lower fair value measurement.

The mezzanine and other secured commercial portions of the commercial loan portfolio were a combination of cash flow and collateral based lending. The initial valuation assessment was that as long as the loan is current and performing, its fair value approximates the par value of the loan. If a loan became nonperforming, an evaluation would be performed which considered and analyzed a variety of factors which may have included the financial condition and operating performance of the borrower, the adequacy of the collateral, individual credit risks, historical loss experience, the relationships between the then current and projected market rates and portfolio rates of interest and maturities, as well as general market trends for businesses in the same industry. Since each individual nonperforming loan had its own unique attributes, the factors analyzed, and their relative importance to each valuation analysis, differed between each asset, and may have differed from period to period for a particular asset. The valuation was highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changed significantly from one period to another, that change could have resulted in a significantly lower or higher fair market value measurement. For example, if a borrower’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have had a material impact on the valuation in the appropriate period.

The investment in Medallion Bank was subject to a thorough valuation analysis as described previously, and on at least an annual basis, the Company received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value. The Company determined whether any factors gave rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013, and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that Medallion Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in Medallion Bank and its portfolio assets at values in excess of their book value. The Company incorporated those factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. Expression of interest in Medallion Bank from both investment bankers and interested parties has continued through 2016 and 2017. The Company incorporated those new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believed heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Bank’s fair value, and the appreciation of $15,500,000 was thereby recorded in 2015, additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in 2018.

Investments in controlled subsidiaries, other than Medallion Bank, equity investments, and investments other than securities were valued similarly, but also considered available then-current market data, including relevant and applicable market trading and transaction comparables, the nature and realizable value of any

F-49

collateral, applicable interest rates and market yields, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, and borrower financial analysis, among other factors. As a result of this valuation process, the Company used the actual results of operations of the controlled subsidiaries as the best estimate of changes in fair value, in most cases, and recorded the results as a component of unrealized appreciation (depreciation) on investments. For the balance of controlled subsidiary investments, equity investments, and investments other than securities positions, the result of the analysis resulted in changes to the value of the position if there was clear evidence that its value had either decreased or increased in light of the specific facts considered for each investment. The valuation was highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changed significantly from one period to another, that change could have resulted in a significantly lower or higher fair market value measurement. For example, if an investee’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have a material impact on the valuation in the current period.

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 December 31, 2017.

Investment Company Accounting (Dollars in  thousands)	Level 1		Level 2		Level 3		Total
Assets
Medallion loans	$	—	$	—	$	208,279	$	208,279
Commercial loans		—		—		90,188		90,188
Investments in Medallion Bank and other controlled subsidiaries		—		—		302,147		302,147
Equity investments		—		—		9,521		9,521
Investments other than securities		—		—		7,450		7,450
Other assets		—		—		339		339

Included in level 3 investments in Medallion Bank and other controlled subsidiaries is primarily the investment in Medallion Bank, as well as other consolidated subsidiaries such as MSC, and other investments detailed in the consolidated summary schedule of investments following these footnotes. Included in level 3 equity investments are unregistered shares of common stock in a publicly-held company, as well as certain private equity positions in non-marketable securities.

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the nine months ended December 31, 2018 under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 and year ended December 31, 2017 under Investment Company Accounting.

(Dollars in  thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(1,274	)
Purchases, investments, and issuances		1,232
Sales, maturities, settlements, and distributions		(1,596	)
Transfers in (1)		1,377
December 31, 2018	$	9,197
Amounts related to held assets (2)	($	1,851	)

(1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

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(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.

(Dollars in  thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Gains (losses) included in earnings		(38,190	)		(8	)		29,143			(993	)		(1,915	)		—
Purchases, investments, and issuances		7			7,252			462			935			—			—
Sales, maturities, settlements, and distributions		(8,941	)		(3,812	)		(583	)		(5	)		—			—
March 31, 2018	$	161,155		$	93,620		$	331,169		$	9,458		$	5,535		$	339
Amounts related to held assets (1)	($	38,190	)	($	10	)	$	29,143		($	993	)	($	1,915	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2016	$	266,816		$	83,634		$	293,360		$	8,407		$	9,510		$	354
Gains (losses) included in earnings		(41,555	)		(491	)		10,761			4,727			(2,060	)		(15	)
Purchases, investments, and issuances		1,953			25,517			441			1,660			—			—
Sales, maturities, settlements, and distributions		(18,935	)		(18,472	)		(2,415	)		(5,273	)		—			—
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Amounts related to held assets (1)	$	37,335		($	410	)	$	10,756		$	1,941		($	2,060	)	($	15	)

(1) Total unrealized gains (losses) included in income for the year which relate to assets held as of December 31, 2017.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2018 under Bank Holding Company Accounting.

2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,877	$	34,877
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	84,372	$	84,372

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 recurring level 3 fair value measurements of assets and liabilities as of December 31, 2018 were as follows under Bank Holding Company Accounting.

(Dollars in  thousands)	Fair Value at 12/31/18		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments		$5,683	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
		1,850	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee		N/A
			Precedent arm’s length offer	Business enterprise value		$6,014 – $7,214
				Business enterprise value/revenue multiples		0.96x – 4.54x
		1,455	Precedent market transaction	Offering price		$8.73 / share
		209	Investee book value	Valuation indicated by investee filings		N/A

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2017 were as follows under Investment Company Accounting.

(Dollars in  thousands)	Fair Value at 12/31/17		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Medallion Loans		$208,279	Precedent market transactions	Adequacy of collateral (loan to value)		1% - 420% (131%)
Commercial Loans – Mezzanine and Other		90,188	Borrower financial analysis	Financial condition and operating performance of		N/A
				the borrower Portfolio yields		2% -19.00% (12.02%)
Investment in Medallion Bank		290,548	Precedent M&A transactions	Price/book value multiples		2.1x to 2.5x
				Price/earnings multiples		8.7x to 10.6x
			Discounted cash flow	Discount rate		17.50%
				Terminal value		$470,964 to $623,007
Investment in Other Controlled Subsidiaries		4,623	Investee financial analysis	Financial condition and operating performance		N/A
				Enterprise value		$37,500 - $41,500
				Equity value		$2,000 - $5,000
		3,878	Investee book value adjusted for asset appreciation	Financial condition and operating performance of the investee		N/A
				Third party valuation/ offer to purchase asset		N/A
		3,001	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee		N/A

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(Dollars in  thousands)	Fair Value at 12/31/17		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
				Third party offer to purchase investment		N/A
		97	Investee book value and equity pickup	Financial condition and operating performance of the investee		N/A
Equity Investments		5,417	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
		2,193	Investee financial analysis	Equity value		$2,000 - $5,000
				Preferred equity yield		12%
		1,455	Precedent market transaction	Offering price		$8.73/share
		456	Investee book value	Valuation indicated by investee filings		N/A
Investments Other Than Securities		7,450	Precedent market transaction	Transfer prices of Chicago medallions		N/A
			Cash flow analysis	Discount rate in cash flow analysis		6%
Other Assets		339	Borrower collateral analysis	Adequacy of collateral (loan to value)		0%

(20) INVESTMENTS OTHER THAN SECURITIES

The following table presents the Company’s investments other than securities as of December 31, 2017 under Investment Company Accounting.

Investment Type (Dollars in thousands)	Number of Investments			Investment Cost		Value as of 12/31/17
City of Chicago taxicab medallions		154	(1)	$	8,411	$	7,238	(2)
City of Chicago taxicab medallions (handicap accessible)		5	(1)		278		212	(3)
Total investments other than securities				$	8,689	$	7,450

(1) Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying asset under the 1940 Act.

(2) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for federal income tax purposes was $1,392 at December 31, 2017.

(3) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for federal income tax purposes was $40 at December 31, 2017.

(21) SMALL BUSINESS LENDING FUND PROGRAM (SBLF) AND TROUBLED ASSETS RELIEF PROGRAM (TARP)

On February 27, 2009 and December 22, 2009, Medallion Bank issued, and the U.S. Treasury purchased under the TARP Capital Purchase Program (the CPP), Medallion Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011,

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Medallion Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E) for an aggregate purchase price of $26,303,000 under the SBLF. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. The Bank pays a dividend rate of 9% on the Series E.

(22) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS

The following shows the condensed financial information of Medallion Financial Corp. (parent company only) under Bank Holding Company Accounting.

Condensed balance sheet

(Dollars in thousands)	December 31, 2018
Assets
Cash	$	1,110
Net loans receivable		37,737
Loans collateral in process of foreclosure		12,001
Goodwill and intangible assets		178,621
Investments in bank subsidiaries		142,469
Investments in non-bank subsidiaries		91,059
Other assets		5,776
Total assets	$	468,773
Liabilities
Other liabilities	$	9,073
Intercompany payables		63,352
Short-term borrowings		38,870
Deferred tax liabilities and other tax payables		28,245
Long-term borrowings		66,625
Total liabilities		206,165
Total stockholders’ equity		262,608
Total liabilities and equity	$	468,773

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Condensed statements of operations

(Dollars in thousands)	Nine Months Ended December 31, 2018
Interest income	$	(1,958	)
Interest expense		5,480
Net interest loss		(7,438	)
Provision for loan losses		19,190
Net interest loss after provision for loan losses		(26,628	)
Other income (expenses), net		(16,913	)
Loss before income taxes and undistributed earnings of subsidiaries		(43,541	)
Income tax benefit		5,328
Loss before undistributed earnings of subsidiaries		(38,213	)
Undistributed earnings of subsidiaries		28,041
Net loss attributable to parent company	$	(10,172	)

Condensed statement of other comprehensive loss

(Dollars in thousands)	Nine Months Ended December 31, 2018
Net loss	$	(10,172	)
Other comprehensive loss		(82	)
Total comprehensive loss attributable to MFIN	$	(10,254	)

F-55

Condensed statement of cash flow

(Dollars in thousands)	Nine Months Ended December 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES Net loss	$	(10,172	)
Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries		(28,041	)
Provision for loan losses		19,190
Depreciation and amortization		5,451
Change in deferred and other tax assets/liabilities, net		4,512
Proceeds loan collateral in process of foreclosure		487
Net change in loan collateral in process of foreclosure		678
Stock-based compensation expense		425
Decrease in other assets		4,073
Decrease in intercompany payables		(3,368	)
Increase in other liabilities		4,237
Net cash used by operating activities		(2,528	)
CASH FLOWS FROM INVESTING ACTIVITIES Loans originated		(309	)
Proceeds from principal receipts, sales, and maturities of loans		10,900
Dividends from subsidiaries		5,200
Net cash provided by investing activities		15,791
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed		—
Repayments of funds borrowed		(17,208	)
Net cash used for financing activities		(17,208	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(3,945	)
Cash and cash equivalents, beginning of period		5,055
Cash and cash equivalents, end of period	$	1,110

(23) VARIABLE INTEREST ENTITIES (VIE)

During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are considered a variable interest. This conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty (see Note 7 for more details). In addition, the Company remains the servicer of the assets of Trust III for a fee.

F-56

The following table shows the assets and liabilities of Trust III as December 31, 2017 when it had been a consolidated VIE.

	Investment Company Accounting
(Dollars in thousands)	December 31, 2017
Assets
Cash	$	393
Net investments		96,688
Accrued interest receivable		170
Total assets	$	97,251
Liabilities
Accrued interest payable	$	1,849
DZ loan		99,984
Total liabilities	$	101,833

(24) SUBSEQUENT EVENTS

On February 28, 2019, a credit facility with a maturity date of March 1, 2019 was extended until September 1, 2020.

F-57

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Medallion Loans
New York								350		53	%		4.23	%	$	10,898	$	168,710	$	167,226	$	151,309
	Sean Cab Corp ##	Term Loan		12/09/11		11/23/18		1		1	%		4.63	%			$	3,159	$	3,159	$	3,159
	Real Cab Corp ##	Term Loan		07/20/07		12/20/17		1		1	%		2.81	%			$	2,545	$	2,545	$	2,545
	Real Cab Corp ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%			$	350	$	350	$	350
	Slo Cab Corp ##	Term Loan		07/20/07		12/20/17		1		1	%		2.81	%			$	1,527	$	1,527	$	1,527
	Slo Cab Corp ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%			$	210	$	210	$	210
	Junaid Trans Corp ## & {Annually-Prime plus 1.00%}	Term Loan		04/30/13		04/29/19		1		*			5.00	%			$	1,379	$	1,379	$	1,379
	Avi Taxi Corporation ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%			$	1,329	$	1,329	$	1,329
	Hj Taxi Corp ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%			$	1,329	$	1,329	$	1,329
	Anniversary Taxi Corp ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%			$	1,329	$	1,329	$	1,329
	Kby Taxi Inc ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%			$	1,329	$	1,329	$	1,329
	Apple Cab Corp ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%			$	1,329	$	1,329	$	1,329
	Penegali Taxi LLC ##	Term Loan		12/11/14		12/10/17		1		*			3.75	%			$	1,294	$	1,294	$	1,294
	Uddin Taxi Corp ## &	Term Loan		11/05/15		11/05/18		1		*			4.75	%			$	1,284	$	1,284	$	1,284
	Waylon Transit LLC ##	Term Loan		09/27/17		09/27/22		1		*			0.00	%	$	1,275	$	1,275	$	1,275	$	1,277
	Sonu-Seema Corp ## (interest rate includes deferred interest of 2.50%)	Term Loan		12/07/12		12/20/18		1		*			5.00	%			$	1,275	$	1,275	$	1,275
	(deferred interest of $34 per footnote 2)
	Bunty & Jyoti Inc ## (interest rate includes deferred interest of 2.50%)	Term Loan		03/13/13		12/13/18		1		*			5.00	%			$	1,259	$	1,259	$	1,259
	(deferred interest of $35 per footnote 2)
	Perem Hacking Corp ## & {Annually-Prime plus .25%}	Term Loan		05/01/16		05/01/21		1		*			4.25	%			$	1,223	$	1,223	$	1,225
	S600 Service Co Inc ## & {Annually-Prime plus .25%}	Term Loan		05/01/16		05/01/21		1		*			4.25	%			$	1,223	$	1,223	$	1,225
	Ela Papou LLC ##	Term Loan		06/27/14		12/15/17		1		*			4.00	%			$	1,213	$	1,213	$	1,213

F-58

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Earie Hacking LLC ##	Term Loan		12/28/15		12/28/20		1		*			3.60	%			$	1,173	$	1,173	$	1,174
	Amme Taxi Inc ##	Term Loan		10/21/13		10/21/18		1		*			3.70	%			$	1,162	$	1,162	$	1,162
	Yosi Transit Inc ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%			$	1,018	$	1,018	$	1,018
	Yosi Transit Inc ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%			$	140	$	140	$	140
Various New York && ##	0.00% to 18.38% (interest rate includes deferred interest 1.00% to 9.19%)	Term Loan		03/23/01 to 12/22/17		05/28/16 to 12/21/26		327		42	%		4.36	%	$	9,623	$	139,356	$	137,872	$	121,948
	(deferred interest of $1,281 per footnote 2)
Chicago								107		5	%		4.74	%	$	0	$	20,172	$	19,436	$	15,602
	Sweetgrass Peach &Chadwick Cap ## (interest rate includes deferred interest of 1.00%)	Term Loan		08/28/12		02/24/18		1		*			6.00	%			$	1,374	$	1,374	$	1,374
	(deferred interest of $20 per footnote 2)
Various Chicago && ##	0.00% to 7.00% (interest rate includes deferred interest .75% to 2.75%)	Term Loan		01/22/10 to 08/08/16		03/12/16 to 12/22/20		106		5	%		4.65	%	$	0	$	18,798	$	18,062	$	14,228
	(deferred interest of $207 per footnote 2)
Newark && ##								110		8	%		5.34	%	$	1,047	$	21,999	$	21,935	$	21,684
	Viergella Inc ##	Term Loan		02/20/14		02/20/18		1		*			4.75	%			$	1,278	$	1,278	$	1,278
Various Newark && ##	4.50% to 7.00% (interest rate includes deferred interest 1.50%)	Term Loan		04/09/10 to 10/12/17		10/17/17 to 05/14/25		109		7	%		5.38	%	$	1,047	$	20,721	$	20,657	$	20,406
	(deferred interest of $2 per footnote 2)
Boston && ##	2.75% to 6.15%	Term Loan		06/12/07 to 10/04/17		12/07/15 to 11/06/25		59		6	%		4.51	%	$	633	$	18,907	$	18,564	$	18,504
Cambridge && ##	3.75% to 5.50%	Term Loan		05/06/11 to 12/15/15		03/29/16 to 01/26/20		13		0	%		4.55	%	$	0	$	824	$	773	$	693

F-59

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Various Other && ##	4.75% to 9.00%	Term Loan		04/28/08 to 07/30/15		01/03/17 to 09/01/23		9		0	%		7.95	%	$	0	$	500	$	482	$	487
Total medallion loans ($183,529 pledged as collateral under borrowing arrangements)								648		73	%		4.41	%	$	12,578	$	231,112	$	228,416	$	208,279
Commercial Loans
Secured mezzanine (22% North Carolina, 16% Minnesota, 7% Ohio, 6% Texas, 6% Delaware 6% California, 5% Oklahoma, 5% Oregon, 4% Kansas, 4% North Dakota, 4% Pennsylvania, and 15% all other states) (2)
Manufacturing (37% of the total)	Innovative Metal, Inc. dba Southwest Data Products (interest rate includes PIK interest of 2.00%)	Term Loan		04/06/17		04/06/24		1		2	%		14.00	%	$	5,000	$	5,000	$	5,000	$	4,980
	Stride Tool Holdings, LLC (interest rate includes PIK interest of 3.00%)	Term Loan		04/05/16		04/05/21		1		1	%		15.00	%			$	4,217	$	4,217	$	4,179
	(capitalized interest of $217 per footnote 2)
	AA Plush Holdings, LLC (interest rate includes PIK interest of 6.00%)	Term Loan		08/15/14		08/15/19		1		1	%		14.00	%			$	3,397	$	3,397	$	3,393
	(capitalized interest of $397 per footnote 2)
	Pinnacle Products International, Inc. (interest rate includes PIK interest of 3.00%)	Term Loan		10/09/15		10/09/20		1		1	%		15.00	%			$	3,249	$	3,249	$	3,249
	(capitalized interest of $449 per footnote 2)
	Liberty Paper Products Acquisition, LLC (interest rate includes PIK interest of 2.00%)	Term Loan		06/09/16		06/09/21		1		1	%		14.00	%			$	3,096	$	3,096	$	3,096

F-60

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	(capitalized interest of $101 per footnote 2)
	EMI Porta Opco, LLC (interest rate includes PIK interest of 1.00%)	Term Loan		12/11/17		03/11/23		1		1	%		13.00	%	$	3,000	$	3,002	$	3,002	$	3,002
	(capitalized interest of $2 per footnote 2)
	BB Opco, LLC d/b/a BreathableBaby, LLC (interest rate includes PIK interest of 3.00%)	Term Loan		08/01/14		08/01/19		1		1	%		15.00	%			$	2,718	$	2,718	$	2,718
	(capitalized interest of $218 per footnote 2)
	EGC Operating Company, LLC (interest rate includes PIK interest of 1.00%)	Term Loan		09/30/14		09/30/19		1		1	%		13.00	%			$	1,959	$	1,959	$	1,959
	(capitalized interest of $49 per footnote 2)
	American Cylinder, Inc. d/b/a All Safe (interest rate includes PIK interest of 7.00%)	Term Loan		07/03/13		09/30/18		1		1	%		19.00	%			$	1,782	$	1,782	$	1,782
	(capitalized interest of $282 per footnote 2)
	Tri-Tech Forensics, Inc. (interest rate includes PIK interest of 2.00%)	Term Loan		06/15/17		06/15/22		1		1	%		14.00	%	$	1,500	$	1,500	$	1,500	$	1,500
	Orchard Holdings, Inc. &	Term Loan		03/10/99		03/31/10		1		*			13.00	%			$	1,390	$	1,390	$	1,390
	Filter Holdings, Inc. (interest rate includes PIK interest of 2.00%)	Term Loan		05/05/17		05/05/22		1		*			14.00	%	$	1,250	$	1,250	$	1,250	$	1,250
	Various Other 10.00%	Term Loan		03/28/17		03/28/22		1		*			10.00	%	$	200	$	200	$	200	$	200

F-61

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Arts, Entertainment, and Recreation (19% of the total)	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		11/27/17		03/31/20		1		3	%		2.00	%	$	7,827	$	7,827	$	7,827	$	7,827
	(capitalized interest of $15 per footnote 2)
	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		06/22/16		03/31/20		1		1	%		2.00	%			$	2,034	$	2,034	$	2,034
	(capitalized interest of $278 per footnote 2)
	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		09/14/16		03/31/20		1		*			2.00	%			$	1,000	$	1,000	$	1,000
	(capitalized interest of $120 per footnote 2)
	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		11/19/10		03/30/20		1		2	%		2.00	%			$	5,611	$	5,611	$	5,611
	(capitalized interest of $2,572 per footnote 2)
Professional, Scientific, and Technical Services (18% of the total)	Weather Decision Technologies, Inc. (interest rate includes PIK interest of 9.00%)	Term Loan		12/11/15		12/11/20		1		1	%		18.00	%			$	4,221	$	4,221	$	4,214
	(capitalized interest of $721 per footnote 2)
	Weather Decision Technologies, Inc. (interest rate includes PIK interest of 7.00%)	Term Loan		11/08/17		06/30/18		1		*			14.00	%	$	325	$	327	$	327	$	327
	(capitalized interest of $2 per footnote 2)
	ADSCO Opco, LLC (interest rate includes PIK interest of 2.00%)	Term Loan		10/25/16		10/25/21		1		1	%		13.00	%			$	3,687	$	3,687	$	3,677

F-62

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	(capitalized interest of $87 per footnote 2)
	Northern Technologies, LLC (interest rate includes PIK interest of 1.00%)	Term Loan		01/29/16		01/29/23		1		1	%		13.00	%			$	3,670	$	3,670	$	3,670
	(capitalized interest of $70 per footnote 2)
	+ DPIS Engineering, LLC	Term Loan		12/01/14		06/30/20		1		1	%		12.00	%			$	2,000	$	2,000	$	1,998
	+ Portu-Sunberg Marketing LLC	Term Loan		10/21/16		02/21/22		1		*			12.00	%			$	1,250	$	1,250	$	1,245
	Various Other 14.00%	Term Loan		05/21/15		05/21/22		1		*			14.00	%			$	1,156	$	1,156	$	1,156
	(capitalized interest of $11 per footnote 2)
Information (9% of the total)	US Internet Corp.	Term Loan		03/14/17		03/14/22		1		1	%		14.50	%	$	5,650	$	4,075	$	4,075	$	4,062
	US Internet Corp. (interest rate includes PIK interest of 17.00%)	Term Loan		03/14/17		03/14/22		1		*			19.00	%	$	1,000	$	1,147	$	1,147	$	1,147
	(capitalized interest of $147 per footnote 2)
	Centare Holdings, Inc. (interest rate includes PIK interest of 2.00%)	Term Loan		08/30/13		08/30/18		1		1	%		14.00	%			$	2,500	$	2,500	$	2,497
Wholesale Trade (6% of the total)	+ Classic Brands, LLC	Term Loan		01/08/16		04/30/23		1		1	%		12.00	%			$	2,880	$	2,880	$	2,880
	Harrell’s Car Wash Systems, Inc. (interest rate includes PIK interest of 3.00%)	Term Loan		07/03/17		09/03/22		1		1	%		15.00	%	$	2,000	$	2,532	$	2,532	$	2,529
	(capitalized interest of $32 per footnote 2)

F-63

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Mining, Quarrying, and Oil and Gas Extraction (5% of the total)	Green Diamond Performance Materials, Inc. (interest rate includes PIK interest of 4.50%)	Term Loan		09/08/17		09/08/24		1		1	%		16.50	%	$	4,000	$	4,057	$	4,057	$	4,057
	(capitalized interest of $57 per footnote 2)
Transportation and Warehousing (4% of the total)	LLL Transport, Inc. (interest rate includes PIK interest of 3.00%)	Term Loan		10/23/15		04/23/21		1		1	%		15.00	%			$	3,914	$	3,914	$	3,912
	(capitalized interest of $410 per footnote 2)
Construction (2% of the total)	Highland Crossing-M, LLC (interest rate includes PIK interest of 11.50%)	Term Loan		01/07/15		02/01/25		1		1	%		11.50	%			$	1,445	$	1,445	$	1,444
Accommodation and Food Services (0% of the total)	Various Other 9.25%	Term Loan		11/05/10		11/05/20		1		*			9.25	%			$	241	$	241	$	241
Total secured mezzanine (2)								33		31	%		12.09	%	$	31,752	$	88,334	$	88,334	$	88,226
Other secured commercial (51% New York, 42% New Jersey and 7% all other states)
Retail Trade (81% of the total)	Medallion Fine Art Inc (interest rate includes PIK interest of 12%)	Term Loan		12/17/12		03/17/18		1		*			12.00	%			$	999	$	999	$	999
	Various Other && 4.75% to 10.50%	Term Loan		10/28/08 to 12/23/15		05/09/18 to 03/03/20		5		*			7.74	%			$	835	$	795	$	604
Accommodation and Food Services (12% of the total)	Various Other && 6.75% to 9.00%	Term Loan		11/29/05 to 06/06/14		04/18/17 to 09/06/19		3		*			8.26	%			$	644	$	544	$	228
Transportation and Warehousing (4% of the total)	Various Other && 4.25%	Term Loan		03/17/15		09/10/18		1		*			4.25	%			$	75	$	74	$	75

F-64

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Real Estate and Rental and Leasing (3% of the total)	Various Other && 5.00%	Term Loan		03/31/15		03/31/20		1		*			5.00	%			$	69	$	65	$	56
Total Other Commercial Loans (2)								11		1	%		9.39	%			$	2,622	$	2,477	$	1,962
Total commercial loans (2)								44		31	%		12.02	%	$	31,752	$	90,956	$	90,811	$	90,188
Investment in Medallion Bank and other controlled subsidiaries
Commercial Banking	Medallion Bank **	100% of common stock		05/16/02		None		1		101	%		0.00	%					$	138,282	$	290,548
NASCAR Race Team	Medallion MotorSports, LLC	75% of LLC units		11/24/10		None		1		2	%		42.40	%					$	2,820	$	4,623
Art Dealer	Medallion Fine Art, Inc.	100% of common stock		12/03/12		None		1		1	%		0.00	%					$	1,777	$	3,878
Loan Servicing	Medallion Servicing Corp.	100% of common stock		11/05/10		None		1		*			0.00	%					$	97	$	97
Professional Sports Team	LAX Group LLC	44.97% of membership interests		05/23/12		None		1		1	%		0.00	%					$	251	$	3,001
Media	Medallion Taxi Media, Inc.	100% of common stock		01/01/17		None		1		*			0.00	%					$	0	$	0
Investment in Medallion Bank and other controlled subsidiaries, net								6		105	%		0.83	%	$	0	$	0	$	143,227	$	302,147
Equity investments
Commercial Finance	Convergent Capital, Ltd **	7% of limited partnership interest		07/20/07		None		1		*			0.00	%					$	733	$	456
NASCAR Race Team	Rpac Racing LLC	1,000 shares of Series D		08/25/15		None		1		1	%		0.00	%					$	0	$	2,193
Loan Servicing	Upgrade, Inc.	666,668 shares of Series A-1 preferred stock		09/30/16		None		1		1	%		0.00	%					$	250	$	1,455
Stuffed Toy Manufacturer	AA Plush Holdings, LLC d/b/a Animal Adventures	1.6% Common Units		08/15/14		None		1		*			0.00	%					$	300	$	300

F-65

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding	Cost (4)		Fair Value
Advertising Services	ADSCO Opco, LLC	7.9% Class A Series A-2 Units		10/25/16		None		1		*		0.00	%				$	400	$	400
Baby Sleep Products	BB Opco, LLC d/b/a BreathableBaby, LLC	3.6% Units		08/01/14		None		1		*		0.00	%				$	250	$	250
IT Services	Centare Holdings, Inc.	7.23% of common stock, 3.88% of preferred stock		08/30/13		None		1		*		0.00	%				$	103	$	103
Wholesale Hobbyists’ Supplies	Classic Brands, LLC	Warrant for 300,000 Class A units		01/08/16		01/08/26		1		*		0.00	%				$	0	$	0
Engineering Design Services	DPIS Engineering LLC	Warrant for 180,000 Class C units		12/01/14		5th anniversary of note paid in full		1		*		0.00	%				$	0	$	0
Elevator Parts Manufacturer	EMI Porta HoldCo, LLC	3.56% of Series A-2 Preferred Units		12/11/17		None		1		*		0.00	%	$	500		$	500	$	500
Industrial Filters Manufacturer	Filter Holdings, Inc.	7.14% of Common Stock, 7.14% of Preferred Stock		05/05/17		None		2		*		0.00	%	$	207		$	207	$	207
Specialty Sand Products	Green Diamond Performance Materials, Inc.	4.26% of Series A Preferred Stock		09/08/17		None		1		*		0.00	%	$	200		$	200	$	200
Car Wash Equipment Manufacturer	Harrell’s Car Wash Systems, Inc.	0.89% of Common Stock		07/03/17		None		1		*		0.00	%	$	104		$	104	$	104
Sheet Metal Manufacturer	SWDP Acquisition Co., LLC	9.9875% of LLC Units		04/06/17		None		1		*		0.00	%	$	400		$	400	$	400
Paper Tapes Manufacturer	Liberty Paper Products Acquisition, LLC	100% of Series A Preferred Units -12% TOTAL		06/09/16		None		1		*		0.00	%				$	350	$	350

F-66

Medallion Financial Corp.

Consolidated Summary Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name/Interest Rate Range	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Environmental Consulting Services	Northern Technologies, LLC	8.27% of LLC units		01/29/2016, 12/5/16 & 6/12/17		None		3		*			0.00	%	$	58			$	408	$	408
Space Heater Manufacturer	Pinnacle Products International, Inc.	0.5% common stock		10/09/15		None		1		*			0.00	%					$	135	$	135
Marketing Services	Portu-Sunberg Marketing LLC	0.86% LLC units		10/19/16		None		1		*			0.00	%					$	50	$	50
	Portu-Sunberg Marketing LLC	Warrant for 2.85% of the outstanding stock		12/31/12		07/24/20		1		*			0.00	%					$	0	$	0
Hand Tool Manufacturer	Stride Tool Holdings, LLC	7.14% of LLC units		04/05/16		None		1		*			0.00	%					$	500	$	500
Forensic Supplies	Tri-Tech Forensics, Inc.	4.91% of Common Stock; 4.61% of Preferred Stock		06/15/17		None		3		*			0.00	%	$	192			$	192	$	192
Weather Forecasting Services	Weather Decision Technologies, Inc.	2.2% preferred stock		12/11/15		None		1		*			0.00	%					$	500	$	500
Various Other #	+ **	* Various		08/04/08 to 12/12/14		None to 2/5/23		5		*			0.00	%					$	818	$	818
Equity investments, net								32		3	%		0.00	%	$	1,661	$	0	$	6,400	$	9,521
Investment securities
Investment securities, net								0		0	%		0.00	%	$	0	$	0	$	0	$	0
Net Investments ($183,529 pledged as collateral under borrowing arrangements) (3)
								730		212	%		4.73	%	$	45,991	$	322,068	$	468,854	$	610,135

F-67

(1) Represents the actual or weighted average interest or dividend rate of the respective security or portfolio as of the date indicated. Investments without an interest rate or with a rate of 0.00% are considered non-income producing.

(2) Included in secured mezzanine commercial loans and other commercial loans was $6,237 of interest income capitalized into the outstanding investment balances, and $1,579 of deferred interest income, in accordance with the terms of the investment contract.

(3) The ratio of restricted securities fair value to net assets is 212%.

(4) Gross unrealized appreciation, gross unrealized depreciation and net appreciation for federal income tax purposes totaled $220,597, $21,306 and $199,291, respectively. The tax cost of investments was $410,844.

(5) For revolving lines of credit the amount shown is the cost at December 31, 2017.

* Less than 1.0%

** Not an eligible portfolio company as such term is defined in Section 2(a)(46) of the 1940 Act. The percentage value of all non-eligible portfolio companies to totaled assets of Medallion Financial on an unconsolidated basis was up to 59% and up to 48% on a consolidated basis. Under the 1940 Act, we may not acquire any non-qualifying assets, unless at the time such acquisition is made, qualifying assets, which include securities of eligible portfolio companies, represent at least 70% of our total assets. The status of these assets under the 1940 Act are subject to change. We monitor the status of these assets on an ongoing basis.

& Loan is on nonaccrual status, or past due on contractual payments, and is therefore considered non-income producing.

&& Some or all of the securities are non-income producing as per & above.

# Publicly traded but sales subject to applicable Rule 144 limitations.

## Pledged as collateral under borrowing arrangements.

+ Includes various warrants, all of which have a cost and fair value of zero at December 31, 2017.

The Summary Schedule of Investments does not reflect the Company’s complete portfolio holdings. It includes the Company’s 50 largest holdings and each investment of any issuer that exceeds 1% of the Company’s net assets. “Various Other” represents all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). Footnotes above may apply to securities that are included in “Various Other”. For further detail, the complete schedule of portfolio holdings is available (i) without charge, upon request, by calling (877) MEDALLION; and (ii) on the SEC’s website at http://www.sec.gov. Filed as Exhibit 99.1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed on March 14, 2018 (File No. 814-00188)

F-68

Medallion Financial Corp.

CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFIILIATES

As of and for the year ended December 31, 2017 under Investment Company Accounting

Name of issuer and title of issue	Number of shares (all restricted unless otherwise noted)	Equity in net profit and (loss) and change in fair value			Amount of dividends or interest(1)		Value as of 12/31/17
(Dollars in thousands)
Medallion Bank - common stock	1,000,000 shares -100% of common stock	$	10,193		$	0	$	290,548
Medallion Motorsports, LLC - membership interest (2)	75% of membership interest		(2,357	)		1,201		4,623
Medallion Fine Art, Inc. - common stock (3)	1,000 shares -100% of common stock		231			0		3,878
LAX Group LLC - membership interest	45% of membership interest		870			0		3,001
Medallion Servicing Corp. - common stock	1,000 shares -100% of common stock		546			0		97
Medallion Taxi Media, Inc. - common stock	1,000 shares -100% of common stock		0			77		0
Total investments in Medallion Bank and other controlled subsidiaries			9,483			1,278		302,147
RPAC Racing LLC (2)	100% of Series D units		0			0		2,193
Stride Tool Holdings, LLC (4) - membership interest	7.14% of membership interest		0			0		500
Northern Technologies, LLC - membership interest (5)	8.3% of membership interest		0			0		408
ADSCO Holdco LLC - membership interest (6)	7.7% of Class A Series A-2 LLC units		0			0		400
SWDP Acquisition Co., LLC (7)	10% of membership interest		0			0		400
Appliance Recycling Centers of America, Inc. - common stock	0% of common stock		0			0		0
Filter Holdings, INC. (8)	7.14% of common & preferred stock		0			0		207
Third Century JRT, Inc. (9)	13% of common stock		0			0		200
Total equity investments in affiliates		$	0		$	0	$	4,308

(1) Investments with an amount of $0 are considered non-income producing.

(2) The Company and a controlled subsidiary of the Company have 4 loans due from RPAC, an affiliate of Medallion Motorsports, LLC, in the amount of $16,472 as of December 31, 2017, and on which $56 of interest income was earned during the year ended December 31, 2017 as the loans are on non-accrual status.

(3) The Company has a loan due from Medallion Fine Art, Inc. in the amount of $999 as of December 31, 2017, and on which $165 of interest income was earned during the year ended December 31, 2017.

(4) The Company has a loan due from Stride Tool Holdings, LLC in the amount of $4,217 as of December 31, 2017, and on which $631 of interest income was earned during the year ended December 31, 2017.

F-69

(5) The Company has a loan due from Northern Technologies, LLC in the amount of $3,670 as of December 31, 2017, on which $477 of interest income was earned during the year ended December 31, 2017.

(6) The Company has a loan due from ADSCO Holdco LLC in the amount of $ 3,687 as of December 31, 2017, and on which $475 of interest income was earned during the year ended December 31, 2017.

(7) The Company has a loan due from Innovative Metal Inc., an affiliate of SWDP Acquisition Co., LLC in the amount of $5,000 as of December 31, 2017, on which $523 of interest income was earned during the year ended December 31, 2017.

(8) The Company has a loan due from Filter Holdings, Inc. in the amount of $1,250 as of December 31, 2017, on which $117 of interest income was earned during the year ended December 31, 2017.

(9) The Company has a loan due from J.R. Thompson Company, LLC, an affiliate of Third Century JRT, Inc., in the amount of $1,156 as of December 31, 2017, on which $204 of interest income was earned during the year ended December 31, 2017.

F-70

The table below provides a recap of the changes in the investment in the respective issuers for the year ended December 31, 2017.

Name of Issuer	Medallion Bank			Medallion Fine Art, Inc. (1)		Medallion Motorsports, LLC (2)			Appliance Recycling Centers of America, Inc.			Medallion Servicing Corp.			LAX Group, LLC		Medallion Taxi Media, Inc.			Third Century JRT, Inc. (3)		Northern Technologies, LLC (4)		Stride Tool Holdings, LLC (5)		ADSCO Holdco LLC (6)		RPAC Racing, LLC (2)		Filter Holdings, Inc.(7)		SWDP ACUQSITION Co., LLC(8)
Title of Issue	Common Stock			Common Stock		Membership Interest			Common Stock			Common Stock			Membership Interest		Common Stock			Common Stock		Membership Interest		Membership Interest		Membership Interest		Membership Interest		Common & Preferred Stock		Membership Interest
(Dollars in thousands)
Value as of 12/31/16	$	280,589		$	3,647	$	6,980		$	475		$	454		$	1,690	$	—		$	200	$	351	$	500	$	400	$	1,351	$	—	$	—
Gross additions / investments		—			—		—			—			—			441		—			—		57		—		—		—		207		400
Gross reductions / distributions		(234	)		—		(1,201	)		(351	)		(903	)		—		(77	)		—		—		—		—		—		—		—
Net equity in profit and loss, and unrealized appreciation and (depreciation)		10,193			231		(1,156	)		(124	)		546			870		77			—		—		—		—		842		—		—
Value as of 12/31/17	$	290,548		$	3,878	$	4,623		$	—		$	97		$	3,001	$	—		$	200	$	408	$	500	$	400	$	2,193	$	207	$	400

(1) The Company has a loan due from Medallion Fine Art, Inc. in the amount of $999 as of December 31, 2017, $0 of which was advanced during 2017, and for which $2,325 was repaid.

(2) In addition to the equity ownership, the Company and a controlled subsidiary of the Company have four loans due from RPAC, an affiliate of Medallion Motorsports, LLC, in the amount of $16,472, $7,883 of which was advanced during 2017.

(3) The Company has a loan due from J. R. Thompson Company, LLC, an affiliate of Third Century JRT, Inc. in the amount of $1,156 as of December 31, 2017, $469 of which was repaid during 2017.

(4) The Company has a loan due from Northern Technologies, LLC in the amount of $3,670 as of December 31, 2017, $137 of which was advanced during 2017.

(5) The Company has a loan due from Stride Tool Holdings, LLC in the amount of $4,217 as of December 31, 2017, $126 of which was advanced during 2017.

(6) The Company has a loan due from ADSCO Holdco LLC in the amount of $3,687 as of December 31, 2017, $74 of which was advanced during 2017.

(7) The Company has a loan due from Filter Holdings, Inc. in the amount of $1,250 as of December 31, 2017, all of which was advanced during 2017.

(8) The Company has a loan due from Innovative Metals, Inc., an affiliate of SWDP Acquisition Co., LLC in the amount of $5,000 as of December 31, 2017, all of which was advanced during 2017.

F-71

EX-10.17

Exhibit 10.17

AGREEMENT OF LEASE

by and between

B-LINE Holdings, L.C.,

a Utah limited liability Company

as “Landlord”

and

Medallion Bank, a Utah Industrial Bank

as “Tenant”

TABLE OF CONTENTS

Section Heading			Page
1.	DEFINED TERMS		1
2.	TERM		3
	2.1	Length	3
	2.2	Option to Renew	3
	2.3	Surrender	3
	2.4	Holdover	4
3.	RENT		4
	3.1	Amount	4
	3.2	Operating Costs	4
	3.3	When Due and Payable	6
	3.4	Where Payable	7
	3.5	Tax on Lease	7
	3.6	Security Deposit	7
	3.7	Lease Year	7
	3.8	Solvency of Tenant and Guarantors	8
	3.9	Tenant’s Financial Statements	8
4.	USE OF PERMITS		8
	4.1	Permitted Uses	8
	4.2	Compliance with Laws; Conduct on the Premises	8
	4.3	License	10
	4.4	Compliance with ADA	10
5.	INSURANCE AND INDEMNIFICATION		11
	5.1	Increase in Risk	11
	5.2	Insurance to be Maintained by Tenant	11
	5.3	Insurance to be Maintained by Landlord	12
	5.4	Waiver of Subrogation	12
	5.5	Liability of Parties	12
6.	IMPROVEMENTS TO PREMISES		13
	6.1	Tenant Improvements	13
	6.2	Cost of Tenant Improvements	14
	6.3	Default	15
	6.4	Fixtures	15
7.	MAINTENANCE AND SERVICES		16
	7.1	Ordinary Services	16

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	7.2	Extraordinary Services	16
	7.3	Interruption	16
	7.4	Maintenance by Tenant	17
	7.5	Maintenance by Landlord	17
8.	LANDLORD’S RIGHT OF ENTRY		17
9.	FIRE AND OTHER CASUALTIES		17
	9.1	General	17
	9.2	Substantial Destruction	18
	9.3	Tenant’s Negligence	18
10.	CONDEMNATION		19
	10.1	Right to Award	19
	10.2	Effect of Condemnation	19
	10.3	Landlords Liability	19
	10.4	Condemnation Proceedings	20
11.	ASSIGNMENT AND SUBLETTING		20
	11.1	In General	20
	11.2	Consent Standards	20
12.	RULES AND REGULATIONS		21
13.	SUBORDINATION AND ATTORNMENT		21
	13.1	Subordination	21
	13.2	Attornment	21
	13.3	Senior Holder’s Right to Subordinate	21
14.	DEFAULT		22
	14.1	Definition	22
	14.2	Notice to Tenant: Grace Period	22
	14.3	Landlord’s Rights on Event of Default	23
	14.4	Landlord’s Security Interest	26
	14.5	Default by Landlord	26
15.	ESTOPPEL CERTIFICATE		27
16.	QUIET ENJOYMENT		27
17.	NOTICES		27
18.	GENERAL		28
	18.1	Effectiveness	28
	18.2	Complete Understanding	28
	18.3	Amendment	28

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	18.4	Applicable law	28
	18.5	Waiver	28
	18.6	Time of Essence	28
	18.7	Headings	28
	18.8	Construction	28
	18.9	Exhibits	29
	18.10	Severability	29
	18.11	Definition of “Landlord”	29
	18.12	Definition of “Tenant”	29
	18.13	Recitals	29
	18.14	Commissions	29
19.	SPECIAL TERMS		30
	19.1	Option to Expand	30
	19.2	FDIC Contingency	30
	19.3	Guarantee	30
EXHIBITS
	A	Description of Land	32
	B	Page 1 of Drawing Showing the Premises	33
	C	Plans and Specifications	34
	D	Rules and Regulations	35
	E	Guarantee	39

iii

AGREEMENT OF LEASE

THIS AGREEMENT OF LEASE (“this Lease”), made this 3 day of July, 2002, by and between B-LINE Holdings, L.C., a Utah limited liability Company (“the Landlord”), and Medallion Bank, a Utah Industrial Bank (“the Tenant”),

WITNESSETH, THAT FOR AND IN CONSIDERATION of the mutual entry into this Lease by the parties hereto, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by each party hereto, the Landlord hereby leases the Premises (as defined below) to the Tenant and the Tenant hereby leases the Premises from the Landlord, SUBJECT TO THE OPERATION AND EFFECT of any and all instruments and matters of record or in fact, UPON THE TERMS AND SUBJECT TO THE CONDITIONS which are hereinafter set forth:

SECTION 1. DEFINED TERMS.

Each of the following terms, when used in this Lease, shall have the meaning set forth in this Section 1.

Advance Rent means the amount of Twelve Thousand One Hundred Eighty Eight and 76/100 Dollars ($12,188.76), which amount is due upon Lease execution and shall be applied as provided in accordance with subsection 3.3.1 below and in accordance with Section 19.2., below.

Anticipated Completion Date means December 1, 2002 (see subsection 6.1).

Base Rent means an annual base rent (see subsection 3.1) which for each Lease Year (as defined in Subsection 3.7) during the Term is in the sum set forth with respect to such Lease Year on the schedule below:

LEASE YEAR	BASE RENTAL RATE		ANNUAL BASE RENT		MONTHLY INSTALLMENT
12/1/02-12/31/03	$	17.50	$	48,755.04	$	4,062.92
1/1/04-12/31/04	$	18.03	$	50,231.64	$	4,185.97
1/1/05-12/31/05	$	18.57	$	51,736.08	$	4,311.34
1/1/06-12/31/06	$	19.15	$	53,351.88	$	4,445.99
1/1/07-11/30/07	$	19.72	$	54,939.96	$	4,578.33

Base Year means calendar year 2003 (see subsection 3.2.1).

Building means that certain 5-story office building located at 1100 East 6600 South, Salt Lake City, Utah 84121.

Commencement Date means December 1, 2002, subject to the provisions of subsection 2.1 below.

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Land means the tract of land described on Exhibit A attached hereto.

Landlord means the party identified hereinabove as the Landlord, subject to the provisions of subsection 18.11 below.

Landlord Broker means Colliers Commerce CRG (see subsection 18.14).

Notice Address means the parties’ notice addresses for purposes, of Section 17 of this Lease, which addresses are as follows:

Landlord (for notice purposes):    with a copy to:

B-LINE Holdings, L.C.

c/o Transwestern Commercial Services of Utah

1100 East 6600 South, Ste 180

Salt Lake City, Utah 84121

Tenant:

Medallion Bank

1100 East 6600 South, Ste 510

Salt Lake City, UT 84121

Premises means the space (containing approximately 2,786 rentable square feet (2,459 usable square feet)) shown outlined on a drawing attached hereto as Exhibit B and known as Suite 510, located on the fifth (5th) floor in the Building.

Property means and includes collectively the Premises, the remainder of the Building, the Land, and any other improvements thereon.

Recognised Broker means Colliers Commerce CRG (see subsection 18.14.2).

Security Deposit means the sum of No Dollars ($0.00) (see subsection 3.6).

Tenant means the party identified hereinabove as the Tenant, subject to the provisions of subsection 18.12 below.

Tenant Broker means Colliers Commerce CRG (see subsection 18.14).

Tenant’s Percentage means the approximate and (for purposes of the provisions of this Lease) hereby agreed upon proportion, which the net rentable space of the Premises bears to the aggregate net rentable space within the Building, and shall be Four and 22/100 percent (4.22%) (see subsection 3.2.1 (b)).

Tenant Improvement Allowance means $24,590.00 to be provided by Landlord to Tenant to improve the Premises as provided for in Section 6, below.

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Term means the period of five (5) years, beginning on December 1, 2002, subject to the provisions of subsection 6.1 regarding completion of the Premises (see subsection 2.1.1).

Termination Date means November 30, 2007 (see subsection 2.1.1).

SECTION 2. TERM.

2.1. Length.

2.1.1. This Lease shall be for the Term (a) commencing on the Commencement Date (except that if the date of such commencement is hereafter advanced or postponed pursuant to this Lease), or by written agreement of the parties hereto, or by operation of law, the date to which it is advanced or postponed shall be the Commencement Date for all purposes of this Lease), and (b) terminating at 11:59 p.m., local time, on the Termination Date.

2.1.2. Confirmation of commencement and termination. The Landlord and the Tenant shall, at the Landlord’s or Tenant’s request, after (a) the commencement of the Term and (b) the expiration of the Term or any earlier termination of this Lease, confirm in writing that, respectively, such commencement or such termination has occurred, setting forth therein the Commencement Date and/or the Termination Date.

2.2. Option to Renew. Provided Tenant is not then in default of any of the terms and conditions of this Lease, the Tenant shall have one (1) option to extend the Term for an additional five (5) years for such Rent, as defined below, as the parties shall at that time negotiate. Tenant shall give Landlord at least 60 day written notice of its desire to exercise this option. The parties shall during the next succeeding 30 days negotiate the amount of the Rent to be paid for the extended Term. In the event the parties are unable to negotiate such Rent for the extended period, then the Term shall not be extended and the Lease shall terminate as herein otherwise provided.

2.3. Surrender. The Tenant shall at its expense, at the expiration of the Term or any earlier termination of this Lease, (a) promptly surrender to the Landlord possession of the Premises (including any fixtures or other improvements which, under the provisions of Section 6, are owned by the Landlord) in good order and repair (ordinary- wear and tear excepted) and broom clean, (b) remove from the Premises and from any other location on or about the Property where any such items may have been affixed or placed pursuant to any provision of this Lease, the Tenant’s signs, goods and effects and any machinery, trade fixtures and equipment owned or leased by the Tenant and (c) repair any damage to the Premises or the Building caused by such removal, except ordinary wear and tear.

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2.4. Holdover. If the Tenant continues to occupy the Premises after the expiration of the Term or any earlier termination of this Lease without having obtained the Landlord’s express, written consent thereto, then without altering or impairing any of the Landlord’s rights under this Lease or applicable law, (a) the Tenant hereby agrees to pay to the Landlord immediately on demand by the Landlord, as Rent for the Premises, for each calendar month or portion thereof after such expiration of the Term or such earlier termination of this Lease, as aforesaid, until the Tenant surrenders possession of the Premises to the Landlord, a sum equaling one hundred fifty percent (150%) of the amount of the monthly Base Rent and Additional Rent for the last full calendar month of the Term, and (b) the Tenant shall surrender possession of the Premises to the Landlord immediately on the Landlord’s having demanded the same. Nothing in the provisions of this Lease shall be deemed in any way to give the Tenant any right to remain in possession of the Premises after such expiration or termination, regardless of whether the Tenant has paid any such Rent to the Landlord.

SECTION 3. RENT

3.1. Amount. As rent for the Premises (all of which is called collectively “Rent”), the Tenant shall pay to the Landlord all of the amounts set forth in this subsection 3.1.

3.1.1. The Tenant shall pay to the Landlord the Base Rent, plus if the Term commences on a day other than the first (1st) day of a calendar month, one three-hundred sixty-fifth (1/365) of the sum set forth in such schedule for the first Lease Year for each day of such calendar month falling within the Term.

3.1.2. The Tenant shall pay as additional rent (“Additional Rent”) the amount of any and all payments, charges or other amounts which the Tenant is obligated to pay to the Landlord under any of the provisions of this Lease, other than the Base Rent.

3.2. Operating Costs.

3.2.1. Definitions.

(a) As used herein, the term “Operating Costs” means the actual costs incurred by the Landlord in operating and maintaining the Property during each calendar year falling wholly or partly within the Term. Such costs shall include, by way of example rather than of limitation, (1) real property, front-foot benefit, metropolitan district and other similar taxes or public or private assessments (whether regular or special) levied against any or all of the Property; (ii) charges or fees for, and taxes on, the furnishing of water, sewer service, gas, fuel, electricity or other utility services to the Property; (iii) costs of providing elevator, janitorial and trash removal service and of maintaining grounds, common areas and mechanical systems of the Building; (iv) all other costs of maintaining, repairing or replacing any or all of the Building or the rest of the Property (including, by way of example rather than of limitation, (1) the cost amortized in such calendar year of capital improvements which are made by the Landlord in its reasonable judgment in order to reduce any of the costs of operating and maintaining the Building, or to cause any or all of

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the Property to comply with any applicable law or regulation which was not applicable to the same at the entry into this Lease by the parties hereto, which cost shall be amortized over a period selected by the Landlord in its reasonable judgment, plus (2) interest on the unamortized balance of such cost calculated at that rate which is one percentage point above the prime rate of interest per annum from time to time announced by the Bank of America N. A.; (v) charges or fees or contributions in lieu of charges or fees for any necessary governmental permits; (vi) reasonable management fees, overhead and expenses ; (vii) premiums for hazard, rental interruption, liability, workmen’s compensation or other insurance for risks required or permitted by this Lease; (viii) costs arising under service contracts with independent contractors; (ix) costs of any services not provided by the Landlord to the Property on the date hereof but hereafter provided by the Landlord in its prudent management of the Property; and (x) the cost of any other items which, under generally accepted accounting principles consistently applied from year to year with respect to the Property, constitute operating or maintenance costs attributable to any or all of the Property. Operating Costs shall not include (i) any deduction for depreciation of the Property taken on the Landlord’s income tax returns; (ii) the cost of capital improvements made to the Property (other than as described in subsection 3.2.1(a)(iv) above) if and to the extent that the expense thereof is not taken as a deduction of an ordinary business expense on the Landlord’s federal income tax returns, or (iii) the cost of the Landlord’s federal, state or local income taxes.

(b) The Tenant’s Percentage shall be used for purposes of allocating the Operating Costs to the Premises (and the rest of the net rentable spaces within the Property) in accordance with the provisions of this subsection.

3.2.2. Portion covered by Base Rent. Included in the Base Rent is an amount (the “Base Year Operating Costs Amount”) equaling the cost to the Landlord of providing to or for the benefit of the Premises all of the services or other items, the costs of which are included in the Operating Costs (excluding any of such services or other items to be provided at the Tenant’s direct expense under the provisions of Sections 6 and 7) for the Base Year.

3.2.3. Computation. After the end of each calendar year during the Term, the Landlord shall compute the total of the Operating Costs incurred during such calendar year, and shall allocate them to each separate net rentable space within the Property in proportion to the respective percentages assigned to such spaces; provided, however, that anything contained in the foregoing provisions of this subsection 3.2 to the contrary notwithstanding, wherever the Tenant and/or any other tenant of space within the Property has agreed in its lease or otherwise to provide any item of such services partially or entirely at its own expense, or wherever in the Landlord’s reasonable judgment any such significant item of expense is not incurred with respect to or for the benefit of all of the net rentable space within the Property (including, by way of example rather than of limitation, any such expense which, by its nature, is incurred only with respect to those spaces which are occupied), in allocating the Operating Costs the Landlord shall make an appropriate adjustment, using generally accepted accounting principles, so as to avoid allocating to the Tenant or to such other tenant (as the case may be) those Operating Costs covering such

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services already being provided by the Tenant or by such other tenant at its own expense, or to avoid allocating to all of the net rentable space within the Property those Operating Costs incurred only with respect to a portion thereof.

3.2.4. Payment as Additional Rent. The Tenant shall, within fifteen (15) days after demand therefore by the Landlord (with respect to each calendar year during the Term), accompanied by a statement setting forth in reasonable detail the Operating Costs for such calendar year, pay to the Landlord as Additional Rent the amount by which (a) the Tenant’s Percentage of the Operating Costs for such calendar year (as derived and allocated under the provisions of subsection 3.2.3) exceeds (b) the Base Year Operating Costs Amount as defined in subsection 3.2.2.

3.2.5. Proration. If only part of any calendar year falls within the Term, the amount computed as Additional Rent for such calendar year under this subsection shall be prorated (but the expiration of the Term before the end of a calendar year shall not impair the Tenant’s obligation hereunder to pay such prorated portion on demand, as aforesaid).

3.2.6. Landlord’s right to estimate. Anything contained in the foregoing provisions of this subsection to the contrary notwithstanding, the Landlord may, at its discretion, (a) make from time to time during the Term a reasonable estimate of the Additional Rent which may become due under such provisions for any calendar year, (b) require the Tenant to pay to the Landlord for each calendar month during such year one twelfth (1/12) of the estimate of such Additional Rent, at the time and in the manner that the Tenant is required hereunder to pay the monthly installment of the Base Rent for such month, and (c) at the Landlord’s reasonable discretion, increase or decrease from time to time during such calendar year the amount initially so estimated for such calendar year, all by giving the Tenant written notice thereof, accompanied by a schedule setting forth in reasonable detail the expenses comprising the Operating Costs, as so estimated. In such event, the Landlord shall cause the actual amount of such Additional Rent to be computed and certified to the Tenant as soon as reasonably possible after the end of such calendar year, and the Tenant shall promptly thereafter pay to the Landlord the amount of any deficiency or the Landlord shall credit the amount of any overpayment to the next payment of Additional Rent, as the case may be.

3.2.7. Tenant’s right to review books and records. Within two (2) years after the close of each calendar year and no more frequently than annually, the Tenant and/or Tenant’s representative shall be entitled, at Tenant’s expense, at any reasonable time during regular business hours, after giving written notice thereof to the Landlord at least thirty (30) days prior thereto, to inspect in the Landlord’s business office (or at such other location as they may be kept) the Landlord’s books and records relating to the Operating Costs for the Property.

3.3. When due and payable.

3.3.1. The Base Rent for each Lease Year shall be due and payable in monthly installments, in advance, on the first (1st) day of each calendar month during such Lease Year; provided, however, that Advance Rent equal to the installment of the Base Rent

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payable for the first full calendar month of the Term (and, if the Term is scheduled to commence on a day other than the first (1st) day of a calendar month, that portion of the Base Rent which is payable for such month) shall be due and payable on the full execution and delivery of this Lease.

3.3.2. Any Additional Rent accruing under any provision of this Lease shall, except as is otherwise set forth herein, be due and payable fifteen (15) days after the Landlord issues notice to the Tenant.

3.3.3. Each payment of Rent shall be made promptly when due, without any deduction, recoupment or setoff whatsoever, and without demand, failing which the Tenant shall pay to the Landlord as Additional Rent (1) a late charge equaling ten percent (10%) of such payment and (ii) interest on the amount of such payment at an annual rate equal to the lesser of eighteen percent (18%) or the maximum rate allowed by law. Any payment made by the Tenant to the Landlord on account of Rent may be credited by the Landlord to the payment of any Rent then past due before being credited to Rent currently falling due. Any such payment which is less than the amount of Rent then due shall constitute a payment made on account thereof, and the parties agree that the Landlord’s acceptance of such payment (whether or not with or accompanied by an endorsement or statement that such lesser amount or the Landlord’s acceptance thereof constitutes payment in full of the amount of Rent then due) shall not alter or impair the Landlord’s rights hereunder to be paid all of such amount then due, or in any other respect.

3.4. Where payable. The Tenant shall pay the Rent, in lawful currency of the United States of America, to the Landlord by delivering or mailing it to the Landlord’s payment address which is set forth hereinabove, or to such other address or in such other manner as the Landlord from time to time specifies by written notice to the Tenant.

3.5. Tax on Lease. If federal, state or local law now or hereafter imposes any tax, assessment, levy or other charge (other than any income, inheritance or estate tax) directly or indirectly upon (a) the Landlord with respect to this Lease or the value thereof, (b) the Tenant’s use or occupancy of the Premise, (c) the Base Rent, Additional Rent or any other sum payable under this Lease, or (d) this transaction, then (except if and to the extent that such tax, assessment, levy or other charge is included in Operating Costs) the Tenant shall pay the amount thereof as Additional Rent to the Landlord upon demand, unless the Tenant is prohibited by law from doing so, in which event the Landlord may, at its election, terminate this Lease by giving written notice thereof to the Tenant.

3.6. Security deposit. Intentionally omitted.

3.7. Lease Year. As used in the provisions of this Lease, the term “Lease Year” means (a) the period commencing on the Commencement Date and terminating on the day immediately preceding the first (1st) anniversary of the first (1st) day of the first (1st) full calendar month during the Term, (b) each successive period of twelve (12) calendar months thereafter during the Term and (c) the period of fewer than twelve (12) months during which the Termination Date occurs, if the Term shall include any such period.

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3.8. Solvency of Tenant and Guarantors. The Tenant represents and warrants to the Landlord that the Tenant or the guarantor (if any) of the Tenant’s obligations hereunder (each a “Guarantor” and collectively the “Guarantors”) is solvent and that the financial statements of the Tenant and each Guarantor heretofore delivered to the Landlord fairly present the financial condition of the Tenant and/or such Guarantor and operations of the Tenant and such Guarantor at such date and the results of the Tenant’s operations and the Guarantor’s operations for the period then ended. No material adverse change in the business, financial condition, prospects or operations of the Tenant or any Guarantor has occurred since the date of such financial statements. Neither the Tenant nor any Guarantor has any material indebtedness or material liabilities other than as reflected on such financial statements.

3.9 Tenant’s Financial Statements. Upon written request of Landlord, Tenant will furnish Tenant’s or Guarantor’s most recent audited financial statements (including a balance sheet and statement of profit and loss for the preceding fiscal year and any notes to the financial statements) to Landlord (or any Senior Holder, if so directed by Landlord), or, if no such audited statements have been prepared, such other financial statements (and notes to them) as may have been prepared by an independent certified public accountant or, failing those, Tenant’s internally prepared financial statements. If requested, Tenant will discuss its financial statements with Landlord. Landlord will not disclose any aspect of Tenant’s financial statements that Tenant designates to Landlord as confidential except (1) to any Senior Holder or prospective purchasers of the Building, (2) in litigation between Landlord and Tenant, and (3) if required by court order.

SECTION 4. USE OF PREMISES AND THE PROPERTY.

4.1. Permitted uses. The Tenant shall occupy and use the Premises for and only for executive office, general office or professional office purposes. Landlord represents that Tenant’s proposed use of Premises for commercial banking is a permitted use of the premises.

4.2. Compliance with laws; conduct on the Premises.

4.2.1. The Tenant shall at all times during the Term, at its own expense, conform to and comply with all laws, regulations, orders and other governmental requirements, or requirements of the insurance service office, now or hereafter in force, affecting the use or occupancy of all or any part of the Premises. At all times during the Term and for any period that the Tenant enters the Premises before the Commencement Date to make its installations, the Tenant shall indemnify the Landlord against and agrees to save the Landlord harmless from all expense or liability incurred, or penalty imposed because of any violation of any law, regulation, order or other governmental requirement occasioned by the neglect or omission, or willful act of the Tenant, its customers, employees, visitors, or invitees, independent contractors, or any person on the Premises or in the Building by permission or holding under Tenant unless such violation results solely from an act or omission on the part of the Landlord or an agent or employee of the Landlord. Following notice to the Landlord, the Tenant, by appropriate proceedings conducted with due diligence at the Tenant’s expense in the Tenant’s name, may contest in good faith the validity or enforcement of any applicable governmental requirement provided that the Landlord is not subjected to any fine or penalty.

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4.2.2. The Tenant shall not do, or permit anything to be done, in the Premises, which in any way will (1) obstruct or interfere with the rights of the Landlord or of other tenants; (ii) injure or annoy the Landlord or the other tenants; (iii) subject the Landlord to any liability for injury to persons or damage to property; or (iv) interfere with the good order of the Building. Any expense incurred in consequence of negligence or the willful action of the Tenant, the Tenant’s employees, agents, servants, or invitees shall be payable to the Landlord upon demand as Additional Rent.

4.2.3. The Tenant shall not (either with or without negligence) (a) cause or permit the escape, disposal or release of any Hazardous Substances (as defined below), or (b) allow the storage or use of any Hazardous Substances in any manner not sanctioned by law or by the highest standards prevailing in the industry for the storage and use thereof, or (c) allow any Hazardous Substances to be brought onto the Property except to use in the ordinary course of the Tenant’s business, and then only after written notice is given to the Landlord of the identity thereof and a plan for the safe handling of such Hazardous Substances is delivered to the Landlord by the Tenant and reviewed and approved by the Landlord and, if necessary, the Landlord’s environmental consultant (which review shall be at the Tenant’s sole cost and expense and which approval may be granted or withheld in the sole and absolute discretion of the Landlord). For purposes of this Lease, “Hazardous Substances” shall include without limitation, all substances, materials, products, by-products, wastes (including medical or other bio-hazardous wastes) or other items of any type, the manufacture, storage, handling, disposal, or other possession of which is the subject of any federal, state or local environmental law or regulation (collectively “Environmental Laws”). Environmental Laws shall include, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. sections 9601 et seq.), the Resource Conservation and Recovery Act, as Amended (42 U.S.C. sections 6901 et seq.), any similar applicable state or local laws, and the regulations adopted under these acts. If any lender or governmental agency ever requires testing to ascertain whether or not there has been any release of Hazardous Substances on the Premises by Tenant while this Lease is in effect, then the reasonable costs thereof shall be reimbursed by the Tenant to the Landlord upon demand as additional charges if such requirement applies to the Premises. The Tenant shall execute certificates from time to time at the Landlord’s request concerning the Tenant’s knowledge and belief regarding the presence of Hazardous Substances on the Premises. The Tenant shall defend, indemnify and hold harmless the Landlord against and from any liability, claim of liability or expense arising out of any release of Hazardous Substances on the Premises occurring while the Tenant is in possession thereof, or elsewhere on or about the Property if and only to the extent caused by the Tenant, its officers, employees, agents, contractors or invitees. The foregoing covenants shall survive the expiration or earlier termination of this Lease.

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4.3. License.

4.3.1. The Landlord hereby grants to the Tenant a nonexclusive license to use (and to permit its officers, directors, agents, employees and invitees to use in the course of conducting business at the Premises), throughout the Term, (a) any and all elevators, common stairways, lobbies, common hallways and other portions of the Building which, by their nature, are manifestly designed and intended for common use by the occupants of the Building, for pedestrian ingress and egress to and from the Premises and for any other such manifest purposes; and (b) any and all portions of the Land which, by their nature, are manifestly designed and intended for common use by the occupants of the Building and of any other improvements on the Land, for pedestrian ingress and egress to and from the Premises and for any other such manifest purposes; and (c) any and all portions of the Land (if any) as from time to time are designated (by striping or otherwise) by the Landlord for such purpose, for the non-reserved parking of automobiles; provided, however, that the Landlord expressly reserves the right to impose fees for the use of such parking facilities if and only to the extent that such fees are required by any governmental or quasi-governmental agency.

4.3.2. Such license shall be exercised in common with the exercise thereof by the Landlord, any tenant or owner of the Building or any other building located on the Land, any other person who may now or hereafter have any right to use any or all of the areas which are the subject of such license, and their respective officers, directors, agents, employees and invitees, and in accordance with the Rules and Regulations pursuant to Section 12. The Landlord reserves the right, in its sole and absolute discretion, to reconfigure, close off and otherwise deal with all areas to which such license applies, provided, however, that the Tenant shall at all times have reasonably convenient access to the Premises. The foregoing license does not in any way constitute a covenant or representation that any such facilities now exist, or shall exist at any time during the Term, at or upon the Property.

4.4. Compliance with ADA.

4.4.1. Landlord represents that to the best of its knowledge and information the common areas of the Building comply with the ADA.

4.4.2. In no event shall the Landlord be responsible for, and the Tenant hereby agrees to bear the responsibility, cost and expense of (1) providing auxiliary aids and services to accommodate specific needs for disabled employees, licensees and invitees of the Tenant unless such accommodations are exempted from the coverage of the ADA or the Tenant has notified the Landlord in writing of the need for any such accommodation and the Landlord and the Tenant have mutually agreed in writing that the Landlord shall bear the burden of providing such accommodation, (ii) complying with the provisions of Title I of the ADA relating to hiring and all terms, conditions and privileges of employment, and (iii) complying with Title III of the ADA with respect to any requirement arising out of a specific need of which: the Tenant was aware and with respect to which the Tenant failed to provide notice to the Landlord, as required hereunder.

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4.4.3. The Tenant further agrees that (1) in the event it provides any plans or specifications for improvements, alterations or additions to the Premises pursuant to the terms and conditions of this Lease, the Tenant shall be obligated to cause such plans to conform to all applicable requirements of the ADA and shall otherwise cause them to be in accordance with the agreements contained in this subsection 4.4, (ii) the Tenant shall notify the Landlord of any particular requirements that the Tenant may have to enable the Landlord to meet its obligations under this subsection 4.4, and (iii) the Tenant shall bear sole responsibility for complying with the ADA as it may relate to the Tenant’s furniture, fixtures and equipment.

4.4.4. The Landlord and the Tenant covenant and agree to reimburse and indemnify each other for any expenses incurred by the indemnified party due to the indemnifying party’s failure to conform to the requirements of the ADA as agreed to in this subsection 4.4, including, but not limited to, the cost of making any alterations, renovations or accommodations required by the ADA, or any governmental enforcement agency, or any court, any and all fines, civil penalties and damages awarded resulting from a violation of the ADA and all reasonable legal expenses incurred in defending claims made under the ADA or in enforcing this indemnification, including but not limited to reasonable attorney’s fees. Such indemnification shall survive the expiration or termination of this Lease.

SECTION 5. INSURANCE AND INDEMNIFICATION

5.1. Increase in risk. The Tenant shall not do or permit to be done any act or thing as a result of which (1) any policy of insurance of any kind covering either any or all of the Property or covering the Landlord may become void or suspended, or (ii) the insurance risk under any such policy would (in the opinion of the insurer thereunder) be made greater. The Tenant shall pay as Additional Rent the amount of any increase in any premium for such insurance resulting from any breach of such covenant, within fifteen (15) days after the Landlord notifies the Tenant in writing of such increase.

5.2. Insurance to be maintained by Tenant.

5.2.1. The Tenant shall maintain at its expense, throughout the Term, insurance against loss or liability in connection with bodily injury, death, property damage or destruction, occurring within the Premises or arising out of the use thereof by the Tenant or its agents, employees, officers, subtenants, invitees, visitors and guests, under one or more policies of commercial general liability insurance having such limits as to each as are reasonably required by the Landlord from time to time, but in any event having a combined single limit of not less than Three Million Dollars ($3,000,000) (which limit, if such policy is carried on a “blanket” basis, shall be written on a per location basis). Each such policy shall (a) name as additional insureds thereunder the Landlord and the Landlord’s directors, officers, and agents (and at the Landlord’s request, any Senior Holder), (b) be written as primary policy, not contributing with and not in excess of coverage which the Landlord may carry, (c) by its terms, be cancelable only on at least thirty (30) days’ prior written notice to the Landlord (and, at the Landlord’s request, any such Senior Holder), and (d) be issued by an insurer of recognized responsibility licensed to issue such policy in the state in which the Property is located.

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5.2.2. The Tenant, at its sole cost and expense, shall also maintain throughout the Term a policy insuring against damage to or destruction of the Tenant’s leasehold improvements, furniture, fixtures, equipment and other personal property installed in or otherwise located on the Premises.

5.2.3. At least five (5) days prior to the Commencement Date, the Tenant shall deliver to the Landlord a certificate evidencing such insurance, and at least thirty (30) days before any such policy expires, the Tenant shall deliver to the Landlord a certificate evidencing such replacement. On request, following an insurable event, Landlord shall be provided an original or signed duplicate copy of each policy of insurance required to be maintained by the Tenant hereunder.

5.3. Insurance to be maintained by Landlord. The Landlord shall maintain throughout the Term all-risk or fire and extended coverage insurance upon the Building in such amounts and with such insurers as the Landlord may elect, in its reasonable judgment; but not less than “replacement cost.”

5.4. Waiver of subrogation. If either party hereto is entitled to be paid any proceeds under any policy of insurance naming such party as an insured, on account of any loss or damage, (or would be so entitled if such party had maintained the insurance coverage it agrees to maintain under this Lease, whether or not so maintained) then such party hereby releases the other party hereto, to and only to the extent of the amount of such proceeds, from any and all liability for such loss or damage, notwithstanding that such loss, damage or liability may arise out of the negligent or intentionally tortuous act or omission of the other party, its agents or employees.

5.5. Liability of parties. Except if and to the extent that such party is released from liability to the other party hereto pursuant to the provisions of subsection 5.4.

5.5.1. The Landlord (a) shall be responsible for, and shall defend, indemnify and hold harmless the Tenant against and from any and all liability or claim of liability arising out of, any injury to or death of any person or damage to any property, occurring anywhere upon the Property, if, only if and to the extent that such injury, death or damage is caused by the negligent or intentionally tortious act or omission of the Landlord or its agents, officers or employees, but (b) shall not be responsible for or be obligated to defend, indemnify or hold harmless the Tenant against or from any liability for any such injury, death or damage occurring anywhere upon the Property (including the Premises), (i) by reason of the Tenant’s occupancy or use of the Premises or any other portion of the Property unless caused by the negligent or intentionally tortious act or omission of the Landlord, or (ii) because of fire, windstorm, act of God or other cause unless caused by the negligent or intentionally tortious act or omission of the Landlord; and

5.5.2. Excluding those situations in which the Landlord is obligated to indemnify and hold harmless the Tenant under the provisions of subsection 5.5.1, the Tenant shall be

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responsible for, and shall defend, indemnify and hold harmless the Landlord against and from, any and all liability or claim of liability arising out of (a) the use or occupancy of, or the conduct, operation or management of the Tenant’s business in the Premises during the Term or (b) any breach or default by the Tenant in performing any of its obligations under the provisions of this Lease or applicable law, or (c) any negligent, intentionally tortious or other act or omission of the Tenant or any of its agents, contractors, servants, employees, subtenants, licensees or invitees during the Term, or (d) any injury to or death of any person or damage to any property occurring on the Premises during the Term.

SECTION 6. IMPROVEMENTS TO PREMISES.

6.1. Tenant Improvements.

6.1.1. Definition. Landlord shall provide the construction material, hardware and equipment and the labor to construct and install the improvements to the Premises described in the Plans (as that term is hereinafter described) subject to the conditions and limitations hereinafter contained. The material, hardware and equipment as incorporated into the Premises pursuant to the Plans are herein collectively referred to as the “Tenant Improvements”. Subject to the provisions of this Section 6, Landlord shall proceed in a commercially reasonable manner to cause the Tenant Improvements approved by Landlord to be completed.

6.1.2. Submission of Plans. On or before the date which is thirty (30) days after the execution of this Lease (the “Plan Submittal Date”) Tenant shall deliver to Landlord architectural construction drawings (which shall include (I) furniture plans showing details of space occupancy; (ii) reflected ceiling plans; (iii) partition and door location plans; (iv) electrical and telephone plans noting any special requirements; (v) fire safety systems; (vi) detail plans; (vii) mechanical and electrical drawings for the Premises; and (viii) finish plans and schedules) and specifications for the Tenant Improvements to be performed in the Premises. Such architectural drawings and specifications shall be subject to Landlord’s prior written approval, which approval shall not be unreasonbly withheld or delayed, within seven (7) days of receipt by Landlord of a complete set of such architectural construction drawings and specifications. If Landlord does not approve the same, Landlord shall advise Tenant in writing generally of the changes required in such architectural construction drawings and specifications so that they will meet with Landlord’s approval. Tenant shall cause Tenant’s architects and engineers to revise such architectural construction drawings and specifications pursuant to Landlord’s comments and to deliver to Landlord, within seven (7) days after receipt by Tenant of such comments, revised architectural construction drawings and specifications noting the changes for Landlord’s approval. Landlord shall continue to comment on such architectural construction drawings and specifications and Tenant shall continue to revise said architectural construction drawings and specifications are approved by Landlord. Such architectural construction drawings and specifications when approved by Landlord are referred to herein as the “Plans”.

6.1.3. Revisions; Permits. Tenant agrees to revise the Plans to include sufficient detail so that Landlord can obtain a building permit for the Tenant Improvements. Landlord shall have the right to approve or disapprove said revised plans by written notice to Tenant within seven (7) days of receipt by Landlord of such revised plans. If Landlord does not approve the same,

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Landlord shall advise Tenant in writing generally of the changes required in such plans so that they meet with Landlord’s approval. Copies of the revised, final Plans approved by the Landlord shall be attached as Exhibit C to this Lease.

6.1.4. Timing of Delivery of Plans. Tenant represents to Landlord that Tenant has reviewed its needs and the above-specified delivery dates with Tenant’s architects and engineers and that Tenant has assured itself that the Plans can be delivered as herein above required. Tenant agrees to cooperate with Tenant’s architects and engineers as promptly as possible and in any event in sufficient time to cause the Plans to be prepared and timely delivered as herein above required.

6.1.5. No Liability of Landlord. Neither review nor approval by Landlord of any of the Plans shall constitute a representation or warranty by Landlord that such Plans either (I) are complete or suitable for their intended purpose or (ii) comply with applicable laws, ordinances, codes and regulations, it being expressly agreed by Tenant that Landlord assumes no responsibility or liability whatsoever to Tenant or to any other person or entity for such completeness, suitability or compliance.

6.2 Cost of Tenant Improvements.

6.2.1. Contract. Before commencement of any portion of the Tenant Improvements, Landlord shall obtain a contract to perform the Tenant Improvements. Landlord agrees to promptly give Tenant a copy of the contract.

6.2.2. Payment of the Costs of Tenant Improvements. As an inducement for Tenant executing this Lease, Landlord hereby agrees to provide the Tenant Improvement Allowance of TEN and 00/100 Dollars ($10.00) per usable square foot of the Premises for a total of TWENTY-FOUR THOUSAND ONE HUNDRED EIGHTY and 00/100 ($24,590.00). Such Tenant Improvement Allowance shall be used only for payment of the following costs:

(i) The cost of preparing the Plans. The Tenant Improvement Allowance shall not be used for payment of extraordinary design work not included within the scope of Section 6.

(ii) The cost of other permit and other governmental fees relating to construction of the Tenant Improvements.

(iii) The cost of construction of the Tenant Improvements, including demolition of any prior improvements, labor, materials, contractor fees and general conditions costs.

(iv) All other direct costs incurred in connection with the Tenant Improvements (an example of such costs would be the extension of mechanical, heating, ventilating and air conditioning systems and electrical distribution systems).

(v) The cost of Landlord’s preliminary and ongoing review of the Plans and all other construction documents.

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Notwithstanding anything contained in this Lease to the contrary, if Tenant has not provided Landlord with all of the above-listed items on or before the date which is one hundred eighty (180) days following the date on which the Tenant Improvements are Substantially Completed, Landlord shall not be obligated to pay for such missing items.

6.2.3. Work Cost Estimate and Statement. Landlord shall select the general contractor for the Tenant Improvements. Prior to the commencement of construction of any of the Tenant Improvements shown on the Final Plans, Landlord will submit to Tenant a written estimate of the cost (the “Work Cost”) to complete the Tenant Improvements, which written estimate will be based on the Final Plans taking into account any modifications which may be required to reflect changes in the Final Plans required by the City or County in which the Premises are located (the “Work Cost Estimate”). Tenant will either approve the Work Cost Estimate or disapprove specific items and submit to Landlord revisions to the Final Plans to reflect deletions of and/or substitutions for such disapproved items. Upon Tenant’s approval of the Work Cost Estimate (such approved Work Cost Estimate to be hereinafter known as the “Work Cost Statement”), Landlord will have the right to purchase materials and to commence the construction of the items included in the Work Cost Statement. If the total costs reflected in the Work Cost Statement exceed the Tenant Improvement Allowance, Tenant agrees to pay such excess, as Additional Rent, (a) fifty percent (50%) within five (5) business days after Tenant’s approval of the Work Cost Estimate and the remaining fifty percent (50%) upon substantial completion of the Tenant Improvements. If, after the Final Plans have been prepared and the Work Cost Statement has been established, Tenant requires any changes or substitutions to Final Plans, any additional costs related thereto are to be paid by Tenant to Landlord within five (5) business days after invoice therefor. Any changes to the Final Plans requires Landlord’s prior written approval, which approval shall not be unreasonably withheld. Changes to the Final Plans will, if necessary, require the Work Cost Statement to be revised and agreed upon between Landlord and Tenant and paid as provided for above.

6.3 Default. The failure by Tenant to pay any monies due Landlord pursuant to this Section 6 within the time period herein stated shall be deemed an Event of Default under the terms of this Lease for which Landlord shall be entitled to exercise all remedies available to Landlord for nonpayment of Rent. All late payments shall bear interest and shall be subject to a late charge pursuant to this Lease.

6.4 Fixtures. Any and all improvements, repairs, alterations and all other property attached to or otherwise installed as a fixture within the Premises by the Landlord or the Tenant shall, immediately on the completion of their installation, become the Landlord’s property without payment therefor by the Landlord, except that any machinery, equipment or fixtures installed by the Tenant at no expense to the Landlord and used solely in the conduct of the Tenant’s trade or business (rather than to service the Premises or any of the remainder of the Building or the Property generally) shall remain the Tenant’s property, and shall be removed by the Tenant at the end of the Term (and any damage to the Premises caused by such removal shall be repaired at the Tenant’s expense).

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SECTION 7. MAINTENANCE AND SERVICES

7.1. Ordinary services. Provided there has not been an uncured Event of Default by the Tenant hereunder, the Landlord shall provide the following services at the Landlord’s expense (subject to the provisions of subsection 3.2) to or for the benefit of the Premises: (a) heating and air-conditioning (during those respective seasons of the year in which they are necessary) for the comfortable use and occupancy of the Premises, electricity and water suitable for the use of the Premises in accordance with the provisions of Section 4, and automatic elevator service within the Building, all between 8 a.m. and 6 p.m., Monday through Friday, and between 8 a.m. and 2 p.m. on Saturday of each week during the Term (in each case except for the following holidays: New Year’s Day, Veterans, Independence Day, Labor Day, Thanksgiving Day and Christmas Day); (b) janitorial service and trash removal service after 5 p.m., Monday through Friday (except for the holidays listed above) of each week during the Term; and (c) replacement of Building standard fluorescent bulbs and incandescent bulbs.

7.2. Extraordinary services.

7.2.1. The Landlord shall not be obligated to provide to or for the benefit of the Premises any of the services referred to in the provisions of subsection 7.1 other than during the hours referred to therein. Upon the request of the Tenant made at least twenty-four (24) hours in advance, the Landlord shall provide such services other than during such hours, and if the Tenant utilizes any of such services, the Tenant shall pay to the Landlord as Additional Rent the amount from time to time reasonably charged by the Landlord therefore, as set forth on the written schedule of such charges most recently provided by the Landlord to the Tenant.

7.2.2. The Tenant shall not, without first obtaining the Landlord’s written consent thereto not to be unreasonably withheld, install within the Premises any electrical machinery or equipment (including, by way of example rather than of limitation, any electrical heating, cooking, water-heating, kitchen, photocopying or refrigeration equipment, electronic data processing machinery or punch-card machinery), which (singly) (a) uses electrical current exceeding .5 kilowatts at rate of capacity or requires a voltage of more than 120 volts, single phase, or (b) in any way increases the amount of electricity which would normally be consumed upon the Premises when used as general office space or (c) would generate heat or otherwise affect the temperature or humidity within the Premises or the Building, and shall pay periodically as Additional Rent the additional expense incurred by the Landlord as a result thereof, including that resulting from any installation of such equipment or from the installation of any supplemental heating, ventilating and air-conditioning equipment (“HVAC”), or any modification thereof. The Landlord shall have the right, at the cost of the Tenant, to provide meters or submeters for utilities used at the Premises. Upon the installation of such meter, the Tenant shall pay the cost of such utilities based on the product of the volume of usage at the Premises and the unit tariff then in effect for such usage as established by the supplying utility.

7.3. Interruption. The Landlord shall not be liable to the Tenant for any failure, modification or interruption of any service to be provided by the Landlord under this Lease which either arises

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by reason of any (a) strike, lockout or other labor troubles, (b) governmental restrictions or limitations, (c) failure or shortage of electrical power, gas, water, fuel oil, or other utility or service, (d) riot, war, insurrection or other national or local emergency, (e) accident, flood, fire or other casualty, (f) adverse weather condition, (g) other act of God, (h) inability to obtain necessary governmental permits or approvals, or (i) other cause similar or dissimilar to any of the foregoing and beyond the Landlord’s reasonable control (other than financial capability), or is’ required by applicable law (including, by way of example rather than of limitation, any federal law or regulation relating to the furnishing or consumption of energy or the temperature of buildings).

7.4. Maintenance by Tenant. The Tenant shall maintain the nonstructural parts of the interior of the Premises in good repair and condition, ordinary wear and tear excepted.

7.5. Maintenance by Landlord. The Landlord shall maintain or cause to be maintained in good order and repair (a) the roof, structure and exterior of the Building, (b) any and all hallways, stairways, lobbies, elevators, heating and air-conditioning facilities, electrical, sanitary sewer and water lines and facilities, restroom facilities, grounds, sidewalks and parking areas (including the removal of snow from such sidewalks and parking areas), and other common areas, all if located within the Building or the rest of the Property but not within the Premises, all at the Landlord’s expense (subject to Section 3 hereof). There shall be no allowance to the Tenant for a diminution of rental value, no abatement of rent, and no liability on the part of the Landlord by reason of inconvenience, annoyance or injury to business arising from the Landlord, the Tenant or others making any repairs, alterations, additions or improvements in or to any portion of the Property or the Premises, or in or to fixtures, appurtenances or equipment thereof. The Landlord shall not be liable for failure of the Landlord or others to make any repairs, alterations, additions or improvements in or to any portion of the Building or of the Premises, or in or to the fixtures, appurtenances or equipment thereof.

SECTION 8. LANDLORD’S RIGHT OF ENTRY.

The Landlord and its agents shall be entitled to enter the Premises at any time during the Tenant’s business hours and at any other reasonable time (a) to inspect the Premises, (b) to exhibit the Premises to any existing or prospective purchaser, tenant or mortgagee thereof, (c) to make any alteration, improvement or repair to the Building or the Premises, or (d) for any other purpose relating to the operation or maintenance of the Property. The Landlord shall (unless doing so is impractical or unreasonable because of emergency) use commercially reasonable efforts to give the Tenant at least twenty-four (24) hours’ prior notice of its intention to enter the Premises (which notice, notwithstanding Section 17, need not be in writing), and use reasonable efforts to avoid thereby materially interfering with the Tenant’s use and enjoyment thereof.

SECTION 9. FIRE AND OTHER CASUALTIES.

9.1. General. If the Premises or commercially reasonable access thereto are damaged by fire or other casualty during the Term, the terms and conditions of this Section 9 shall apply.

9.1.1. The Landlord shall, to the extent of the insurance proceeds available therefor, restore the Premises or commercially reasonable access thereto with reasonable promptness

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(taking into account the time required by the Landlord to effect a settlement with, and to procure any insurance proceeds from, any insurer against such casualty, but in any event within one hundred eighty (180) days after the date of such casualty) to substantially the condition of the Premises immediately before such casualty, and may temporarily enter and possess any or all of the Premises for such purpose (provided, that the Landlord shall not be obligated to repair, restore or replace any fixture, improvement, alteration, furniture or other property owned, installed or made by the Tenant after the Commencement Date).

9.1.2. The times for commencement and completion of any restoration pursuant to subsection 9.1.1 shall be extended for the period (not longer than sixty [60] days) of any delay occasioned by the Landlord in doing so arising out of any of the causes enumerated in the provisions of subsection 7.3. If the Landlord undertakes to restore the Premises and such restoration is not accomplished within the said period of one hundred eighty (180) days plus the period of any extension thereof, as aforesaid, the Tenant may terminate this Lease by giving written notice thereof to the Landlord within thirty (30) days after the expiration of such period, as so extended.

9.1.3. So long as the Tenant is deprived of the use of any or all of the Premises and/or commercially reasonable access thereto on account of such casualty, the Base Rent and any Additional Rent payable under the provisions of subsection 3.2 shall be abated in proportion to the number of square feet of the Premises rendered substantially unfit for occupancy by such casualty, unless, because of any such damage, the undamaged portion of the Premises is made materially unsuitable for use by the Tenant for the purposes set forth in the provisions of Section  4, in which event the Base Rent and any such Additional Rent shall be abated entirely during such period of deprivation.

9.2. Substantial destruction. Anything contained in the foregoing provisions of this Section to the contrary notwithstanding, if during the Term the Building is so damaged by fire or other casualty that (a)  either the Premises or (whether or not the Premises are damaged) the Building is rendered substantially, unfit for occupancy, as determined by the Landlord in its reasonable judgment, or (b)  the Building is damaged to the extent that the Landlord elects to demolish the Building (whether or not the Premises are damaged), or if any Senior Holder requires that any or all of such insurance proceeds be used in accordance with the requirements of its Senior Instrument, then in any such case the Landlord may elect to terminate this Lease as of the date of such casualty, by giving written notice thereof to the Tenant within thirty (30) days after such date. In such event, (a)  the Tenant shall pay to the Landlord the Base Rent and any Additional Rent payable by the Tenant hereunder and accrued through the date of such termination, (b)  the Landlord shall repay to the Tenant any and all prepaid Rent for periods beyond such termination, and (c) the Landlord may enter upon and repossess the Premises without further notice.

9.3. Tenant’s Negligence. Anything contained in any provision of this Lease to the contrary notwithstanding, if any such damage to the Premises, the Building or both are caused by or result from the negligent or intentionally tortious act or omission of the Tenant, those claiming under the Tenant or any of their respective officers, employees, agents or invitees, (a) the Rent shall not be suspended or apportioned as aforesaid, and (b) except if and to the extent that the Tenant is released from liability therefor pursuant to the provisions of subsection 5.4, the Tenant shall pay to the

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Landlord upon demand, as Additional Rent, the cost of (1) any repairs and restoration made or to be made as a result of such damage, or (ii) (if the Landlord elects not to restore the Building) any damage or loss which the Landlord incurs as a result of such damage.

SECTION 10. CONDEMNATION.

10.1. Right to Award.

10.1.1. Landlord Entitled to Award. If any or all of the Premises or commercially reasonable access thereto, or the remainder of the Property are taken by the exercise of any power of eminent domain or are conveyed to or at the direction of any governmental entity under a threat of any such taking (each of which is hereinafter called a “Condemnation”), the Landlord shall be entitled to collect from the condemning authority thereunder the entire amount of any award made in any such proceeding or as consideration for such conveyance, without deduction therefrom for any leasehold or other estate or right held by the Tenant under this Lease.

10.2. Effect of Condemnation.

10.2.1. Termination of Lease. If (a) all of the Premises or commercially reasonable access thereto are taken by Condemnation, or (b) any part of the Premises is taken by Condemnation and the remainder thereof is insufficient for the reasonable operation therein of the Tenant’s business, or (c) any of the Building is taken by Condemnation and, in the Landlord’s reasonable opinion, it would be impractical to restore the remainder thereof (whether or not the Premises are affected), or (d) any of the rest of the Property is taken by Condemnation and, in the Landlord’s reasonable opinion, it would be impractical to continue to operate the remainder of the Property thereafter (whether or not the Premises are affected), then, in any such event the Term shall terminate on the date on which possession of so much of the Premises, the Building or the rest of the Property, as the case may be, is taken by the condemning authority, and all Rent (including, by way of example rather than of limitation, any Additional Rent payable under the provisions of subsection 2.2), taxes and other charges payable hereunder shall be apportioned and paid to such date.

10.2.2. Prorata Adjustment to Rent. If there is a Condemnation and the Term does not terminate pursuant to the foregoing provisions of this subsection, the operation and effect of this Lease shall be unaffected by such Condemnation, except that the Base Rent and any Additional Rent payable under the provisions of subsection 3.2 shall be reduced in proportion to the square footage of floor area, if any, of the Premises taken by such Condemnation.

10.3. Landlord’s Liability. If there is a Condemnation, the Landlord shall have no liability to the Tenant on account of any (a) interruption of the Tenant’s business upon the Premises,

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(b) diminution in the Tenant’s ability to use the Premises, or (c) other injury or damage sustained by the Tenant as a result of such Condemnation.

10.4. Condemnation Proceedings. The Landlord shall be entitled to conduct any such Condemnation proceeding and any settlement thereof by keeping Tenant reasonably informed.

SECTION 11. ASSIGNMENT AND SUBLETTING.

11.1. In General. The Tenant hereby acknowledges that the Landlord has entered into this Lease because of the Tenant’s financial strength, goodwill, ability and expertise and that, accordingly, this Lease is one which is personal to the Tenant, and agrees for itself and its successors and assigns in interest hereunder that it will not (a) assign this Lease or any of its rights under this Lease, as to all or any portion of the Premises or otherwise, or (b) make or permit any voluntary or involuntary total or partial sale, lease (sublease, assignment, conveyance, license, mortgage, pledge, encumbrance or other transfer of any or all the Premises or the occupancy or use of any or all of the Premises (each of which is called a “Transfer”) (including, by way of example rather than of limitation, any sale at foreclosure or by the execution of any judgment of any or all of the Tenant’s rights hereunder, or any Transfer by operation of law) without first obtaining the Landlord’s express written consent thereto (which consent (i) may not be unreasonably withheld by Landlord, and, if given, shall not constitute a consent to any subsequent such Transfer, whether by the person hereinabove named as “the Tenant” or by any such transferee, but (ii) shall not be deemed to have been given by the Landlord’s acceptance of the payment of Rent after such Transfer occurs, with or without the Landlord’s knowledge, or by any other act or failure to act by the Landlord, other than the giving of such express, written consent, as aforesaid). Any person to whom any Transfer is attempted without such consent shall have no claim, right or remedy whatsoever hereunder against the Landlord, and the Landlord shall have no duty to recognize any person claiming under or through the same. No Transfer shall release, alter or impair the obligations hereunder of any person constituting the Tenant, or liable as a guarantor for the obligations of the Tenant before such Transfer, or of any other person holding any interest or obligation hereunder before such Transfer. For purposes of the foregoing provisions of this subsection, a transfer, by any person or persons controlling the Tenant on the date hereof, of such control to a person or persons not controlling the Tenant on the date hereof shall be deemed a Transfer of this Lease, In addition to any other right or remedy it may have hereunder, the Landlord shall be entitled to be paid by the Tenant any and all profits and proceeds derived by the Tenant from any Transfer made, whether with or without the Landlord’s consent.

11.2. Consent Standards. Without limiting the other instances in which it may be reasonable for Landlord to withhold its consent to a Transfer, Landlord and Tenant agree that it shall be reasonable for Landlord to withhold its consent in the following instances:

(i) if at the time consent is requested or at any time prior to the granting of consent, Tenant is in default under this Lease or would be in default under this Lease but for the pendency of any grace or cure period under paragraph 14 below; (ii) if, in Landlord’s reasonable judgment, the use of the Premises by the proposed assignee or sublessee would not be comparable to the types of use by other tenants in the Building, would entail any alterations which would lessen the value of the

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leasehold improvements in the Premises, would result in more than a reasonable number of occupants per floor, or would require increased services by Landlord; (iii) if, in Landlord’s reasonable judgment, the financial worth of the proposed sublessee does not meet the credit standards applied by Landlord for other tenants under leases with comparable terms, or the character, reputation, or business of the proposed sublessee is not consistent with the quality of the other tenancies in the Building; (iv) if the subletting would result in the division of the Premises into two or more units, and (v) if the proposed sublessee or assignee is an existing tenant of the Building whose space requirements do not exceed the then current vacant space in the Building.

SECTION 12. RULES AND REGULATIONS.

The Landlord shall have the right to prescribe, at its sole discretion, commercially reasonable rules and regulations (the “Rules and Regulations”) governing the use and enjoyment of the Building and the remainder of the Property and to modify such Rules and Regulations from time to time. The Tenant shall adhere to the Rules and Regulations and shall cause its agents, employees, invitees, visitors and guests to do so. A copy of the Rules and Regulations in effect on the date hereof is attached hereto as Exhibit D. Landlord shall enforce the Rules and Regulations on a non-discriminatory basis.

SECTION 13. SUBORDINATION AND ATTORNMENT.

13.1. Subordination. This Lease shall be subject and subordinate to the lien, operation and effort of each of the following (each herein called a “Senior Instrument”): (1) each first mortgage, first deed of trust, ground lease and/or other similar first lien instrument of encumbrance now or at any time hereafter during the Term covering any or all of the Premises or the remainder of the Property; (ii) each renewal, modification, consolidation, replacement or extension of any of such instruments. Such subordination shall be automatic and shall not require any action by either party hereto.

13.2. Attornment. The Tenant shall, promptly at the request of the Landlord or the holder of any Senior Instrument (each herein called a “Senior Holder”), execute, acknowledge and deliver such further instrument or instruments evidencing such subordination as the Landlord or such Senior Holder deems necessary or desirable and (at such Senior Holder’s request) attorning to such Senior Holder.

13.3. Senior Holder’s Right to Subordinate. Anything contained in the provisions of this Section to the contrary notwithstanding, any Senior Holder may at any time, by a document specifically exercising such right, subordinate the lien, operation and/or effect of its Senior Instrument to the operation and effect of this Lease without obtaining the Tenant’s consent thereto, by giving the Tenant written notice thereof, in which event this Lease shall be deemed to be senior to such Senior Instrument.

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SECTION 14. DEFAULT.

14.1. Definition. As used in the provisions of this Lease, each of the events described in this subsection 14.1 shall constitute, and is hereinafter called, an “Event of Default”.

14.1.1. If the Tenant fails to (a) pay any Rent or any other sum which it is obligated to pay by any provision of this Lease, when and as due and payable hereunder and without demand therefor, or (b) perform any of its other obligations under the provisions of this Lease.

14.1.2. If the Tenant (a) applies for or consents to the appointment of a receiver, trustee or liquidator of the Tenant or of all or a substantial part of its assets, (b) files a voluntary petition in bankruptcy or admits in writing its inability to pay its debts as they come due, (c) makes an assignment for the benefit of its creditors, (d) files a petition or an answer seeking a reorganization or an arrangement with creditors, or seeks to take advantage of any insolvency law, (e) performs any other act of bankruptcy, or (f) files an answer admitting the material allegations of a petition filed against the Tenant in any bankruptcy, reorganization or insolvency proceeding.

14.1.3. If (a) an order, judgment or decree is entered by any court of competent jurisdiction adjudicating the Tenant a bankrupt or an insolvent, approving a petition seeking such a reorganization, or appointing a receiver, trustee or liquidator of the Tenant or of all or a substantial part of its assets, or (b) there otherwise commences as to the Tenant or any of its assets any proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment, receivership or similar law, and if such order, judgment, decree or proceeding continues unstayed for more than sixty (60) consecutive days after any stay thereof expires.

14.1.4. If the Tenant fails to occupy and assume possession of the Premises within sixty (60) days after the Commencement Date or to occupy the Premises after the Commencement Date for a period exceeding sixty (60) consecutive days except as may result from Landlord’s failure to provide the Premises to Tenant.

14.2. Notice to Tenant; Grace Period.

14.2.1. Subject to the provisions of subsections 14.2.2 and 14.2.3, on the occurrence of an Event of Default the Landlord shall not exercise any right or remedy on account thereof which it holds under any provision of this Lease or applicable law unless and until the Landlord has given written notice thereof to the Tenant and the Tenant has failed within five (5) days thereafter to cure an Event of Default consisting of the failure to pay any monetary obligation of the Tenant hereunder or within ten (10) days thereafter to cure such other Event of Default; or in the event the Event of Default is not monetary and of such a character as to require more than ten (10) days to cure, Tenant shall have failed to commence cure within such time period, fail to use reasonable diligence in curing such Event of Default, or fail to cure such Event of Default within an additional forty-five (45) day period.

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14.2.2. Anything contained in the provisions of this Lease to the contrary notwithstanding, no notice shall be required to be given, and (even if the Landlord gives such notice) the Tenant shall not be entitled to any grace period, (i) in any emergency situation in which, in the Landlord’s reasonable judgment, it is necessary for the Landlord to act to cure such Event of Default without giving such notice, or (ii) more than twice during any twelve (12) month period, or (iii) if the Tenant has substantially terminated or is in the process of substantially terminating its occupancy and use of the Premises for the purpose set forth in the provisions of Section 4, or (iv) in the case of any Event of Default listed in the provisions of paragraphs 14.1.4, or (v) in the case of any Event of Default consisting of the failure to pay any monetary obligation of the Tenant hereunder or any Event of Default listed in the provisions of subsections 14.1.2 or 14.1.3.

14.2.3. The Landlord shall be entitled immediately on the occurrence of an Event of Default, and without waiting for any applicable grace period to elapse, either or both to terminate this Lease pursuant to the provisions of subparagraph 14.3.1 (c) and/or to declare the entire balance of the Rent for the remainder of the Term to be due and payable pursuant to the provisions of subparagraph 14.3.1 (b) (each of which actions, if taken, shall be effective immediately upon the giving of a notice thereof to the Tenant, unless otherwise stated in such notice); provided, however, that if and only if under the provisions of subsection 14.2 the Tenant is entitled to any such grace period within which to cure such Event of Default, then (i) the Landlord shall take no other action under this subsection 14.2 on account of such Event of Default unless it is not cured within such grace period, and (ii) if such Event of Default is cured within such grace period, such termination and/or declaration by the Landlord pursuant to the provisions of subsections 14.3.1(c) and/or 14.3.1(b), respectively, shall upon the curing of such Event of Default within such grace period become null, void and of no force or effect, as if such action had not been taken by the Landlord.

14.3. Landlord’s rights on Event of Default.

14.3.1. On the occurrence of any Event of Default, the Landlord may (subject to the operation and effect of the provisions of subsection 14.2) take any or all of the actions described in this subsection 14.3.1.

(a) The Landlord may reenter and repossess any or all of the Premises and any or all improvements thereon and additions thereto.

(b) The Landlord may declare the entire balance of the Rent for the remainder of the Term to be due and payable, and collect such balance in any manner not inconsistent with applicable law.

(c) The Landlord may terminate this Lease by giving written notice of such termination to the Tenant, which termination shall be effective as of the date of such notice or any later date therefor specified by the Landlord therein (provided, that without limiting the generality of the foregoing provisions of this subparagraph 14.3.1(c), the Landlord shall not be deemed to have accepted any abandonment or surrender by the

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Tenant of any or all of the Premises or the Tenant’s leasehold estate under this Lease unless the Landlord has so advised the Tenant expressly and in writing, regardless of whether the Landlord has reentered or relet any or all of the Premises or exercised any or all of the Landlord’s other rights under the provisions of this Section or applicable law).

(d) The Landlord may, in the Landlord’s own name (but either (i) as agent for the Tenant, if this Lease has not then been terminated, or (ii) on the Landlord’s own behalf, if this Lease has then been terminated), relet any or all of the Premises with or without any additional premises, for any or all of the remainder of the Term (or, if this Lease has then been terminated, for any or all of the period which would, but for such termination, have constituted the remainder of the Term) or for a period exceeding such remainder, on such terms and subject to such conditions as are acceptable to the Landlord in its sole and absolute discretion (including, by way of example rather than of limitation, the alteration of any or all of the Premises in any manner which, in the Landlord’s judgment, is necessary or desirable as a condition to or otherwise in connection with such reletting, and the allowance of one or more concessions or “free-rent” or reduced-rent periods), and collect and receive the rents therefor. Subject to Landlord’s duty to mitigate damages, (i) the Landlord shall not have any duty or obligation to relet any or all of the Premises as the result of any Event of Default, or any liability to the Tenant or any other person for any failure to do so or to collect any rent or other sum due from any such reletting; (ii) the Tenant shall have no right in or to any surplus which may be derived by the Landlord from any such reletting, in the event that the proceeds of such reletting exceed any Rent, installment thereof or other sum owed by the Tenant to the Landlord hereunder; and (iii) the Tenant’s liability hereunder shall not be diminished or affected by any such failure to relet or the giving of any such initial or other concessions or “free-rent” or reduced rent period in the event of any such reletting. In such event, and regardless of the termination or non-termination of this Lease, the Tenant shall pay to the Landlord, at the times and in the manner specified by the provisions of Section 3, both (i) the installments of the Base Rent and any Additional Rent accruing during such remainder (or, if this Lease has then been terminated, damages equaling the respective amounts of such installments of the Base Rent and any Additional Rent which would have accrued during such remainder, had this Lease not been terminated), less any monies received by the Landlord with respect to such remainder from such reletting of any or all of the Premises, plus (ii) the cost to the Landlord of any such reletting (including, by way of example rather than of limitation, any attorneys’ fees, leasing or brokerage commissions, repair or improvement expenses and the expense of any other actions taken in connection with such reletting), plus (iii) any other sums for which the Tenant is liable under the provisions of subsection 14.3.4 (and the Tenant hereby waives any and all rights which it may have under applicable law, the exercise of which would be inconsistent with the foregoing provisions of this subparagraph 14.3.1(d)).

(e) The Landlord may cure such Event of Default in any other manner.

(f) The Landlord may pursue any combination of such remedies and/or any other right or remedy available to the Landlord on account of such Event of Default under this Lease and/or at law or in equity.

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14.3.2. No such expiration or termination of this Lease, or summary proceedings, abandonment or vacancy, shall relieve the Tenant of any of its liabilities and obligations under this Lease (whether or not any or all of the Premises are relet); accordingly, in any such event the Tenant shall pay to the Landlord the Rent and all other charges required to be paid by Tenant up to the time of such event, and thereafter the Landlord shall have the right to take any or all of the actions described in this subsection 14.3.2.

(a) At any time after the expiration or termination of this Lease pursuant to this Section 14, in lieu of collecting any further monthly installments, as aforesaid, the Landlord shall be entitled to recover from the Tenant, and the Tenant shall pay to the Landlord, on demand, damages Standard Leasing Agreement computed in the manner set forth in clause (1) of subparagraph 14.3.2(b), minus the amount of any such monthly installments previously recovered from the Tenant.

(b)(i) In the case of any Event of Default under the provisions of paragraphs 14.1.2 or 14.1.3, the Landlord shall immediately and automatically, without the necessity of notice or other action by the Landlord, become entitled to recover from the Tenant as damages for such breach, in addition to any damages or other payments becoming due from the Tenant under any other provision of this Lease, an amount equaling the difference between the Base Rent and the Additional Rent reserved in this Lease from the date of such breach to the date of the expiration of the Term and the then-fair and reasonable rental value of the Premises for the same period. Such damages shall become due and payable to the Landlord immediately upon the occurrence of such Event of Default and without regard to whether or, if so, how this Lease is terminated. Notwithstanding the provisions of this paragraph, damages shall be limited to the extent allowed by the laws of the State of Utah.

(ii) If and so long as the Term of this Lease continues, the Rent for the unexpired Term of the Lease after an Event of Default under the provisions of paragraphs 14.1.2 or 14.1.3 shall be reduced by the amount of such liquidated damages as may be paid to the Landlord, such reduction being applied proportionately to each installment of the Rent thereafter becoming due. During the continuance of this Lease after such a breach and until such damages are paid to the Landlord, the whole amount of each installment of Rent herein reserved shall be due and payable at the time herein specified, and if, by reason of the subsequent payment of liquidated damages, and the resulting reduction in Rent, the Landlord receives a sum in excess of all installments, as so reduced, becoming due after the breach and before the collection of such damages, such excess shall be refunded upon the Landlord’s receipt of such liquidated damages.

14.3.3. Nothing herein contained shall limit ox prejudice the Landlord’s right to prove for and obtain as damages, by reason of such termination, an amount equal to the maximum allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, such damages are to be proved, whether or not such amount be greater, equal to, or less than the amount of the difference referred to in clause (1) of subparagraph 14.3.2(b).

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14.3.4. On the occurrence of an Event of Default, the Tenant shall, immediately on its receipt of a written demand therefor from the Landlord, reimburse the Landlord for (a) all expenses (including, by way of example rather than of limitation, any and all repossession costs, management expenses, operating expenses, reasonable legal expenses and attorneys’ fees) incurred by the Landlord (i) in curing or seeking to cure any Event of Default and/or (ii) in exercising or seeking to exercise any of the Landlord’s rights and remedies under the provisions of this Lease and/or at law or in equity on account of any Event of Default, and/or (iii) otherwise arising out of any Event of Default, and/or (iv) (regardless of whether it constitutes an Event of Default) in connection with any action, proceeding or matter of the types referred to in the provisions of paragraphs 14.1.2 and 14.1.3, plus (b) interest on all such expenses, at the lesser of the rate of eighteen percent (18%) per annum or the highest rate then permitted on account thereof by applicable law, all of which expenses and interest shall be Additional Rent and shall be payable by the Tenant immediately on demand therefor by the Landlord.

14.3.5. Each party shall have all of its rights at law or in equity before a court of law. Each party hereto hereby waives any right which it may otherwise have at law or in equity to a trial by jury in connection with any suit or proceeding at law or in equity brought by the other against the waiving party or which otherwise relates to this Lease.

14.4. Landlord’s Security Interest. In addition to any statutory lien for rent held by the Landlord, the Landlord shall have, and the Tenant hereby grants to the Landlord, a continuing security interest for all Rent and other sums of money becoming due hereunder from the Tenant, upon all of the Tenant’s improvements, furniture, fixtures, and equipment located on the Premises, none of which may be removed from the Premises without the Landlord’s prior, express, written consent so long as any Rent or other such sum from time to time owed to the Landlord hereunder remains unpaid, or any other uncured Event of Default has occurred. On the occurrence of an Event of Default, the Landlord shall have, in addition to any other remedies provided herein or by law, all of the rights and remedies afforded to secured parties under the provisions of the Uniform Commercial Code, as codified in the state in which the Property is located (“the Code”), The Tenant shall, on its receipt of a written request therefor from the Landlord, execute such financing statements and other instruments as are necessary or desirable, in the Landlord’s judgment, to perfect such security interest.

14.5. Default by Landlord. If the Landlord violates any of its obligations under the provisions o this Lease, the Tenant may (subject to the operation and effect of the provisions of subsection 3.3.3, requiring the Tenant to pay all Rent when due, without deduction or set-off whatsoever) exercise any right or remedy which it holds on account thereof hereunder, at law or in equity; provided, however, that if any or all of the Premises is then subject to any Senior Instrument, the Tenant shall not exercise any of its rights or remedies on account thereof unless and until it has given written notice of its intention to do so, by certified or registered mail, return receipt requested, to the Senior Holder under such first Senior Instrument, specifying therein the nature of such default in reasonable detail, and unless such Senior Holder, in the exercise of its sole

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discretion and without any obligation to do so, has not cured such default on the Landlord’s behalf within sixty (60) days after such notice is given. Notwithstanding the foregoing, in the event of an emergency or default that materially interferes with Tenant’s business, Tenant shall not be required to provide notice to the Senior Holder.

SECTION 15. ESTOPPEL CERTIFICATE.

The Tenant shall from time to time, within ten (10) days after being requested to do so by the Landlord or any Senior Holder, execute, enseal, acknowledge and deliver to the Landlord (or, at the Landlord’s request, to any existing or prospective purchaser, transferee, assignee or Senior Holder of any or all of the Premises, the Property, any interest therein or any of the Landlord’s rights under this Lease) an instrument in recordable form, certifying (a) that this Lease is unmodified and in full force and effect (or, if there has been any modification thereof, that it is in full force and effect as so modified, stating therein the nature of such modification); (b) as to the dates to which the Base Rent and any Additional Rent and other charges arising hereunder have been paid; (c) as to the amount of any prepaid Rent or any credit due to the Tenant hereunder; (d) that the Tenant has accepted possession of the Premises, and the date on which the Term commenced; (e) as to whether, to the actual knowledge (without obligation to make more than commercially reasonable inquiry of management personnel situated in the Premises), information and belief of the signer of such certificate the Landlord or the Tenant is then in default in performing any of its obligations hereunder (and, if so, specifying the nature of each such default); (f) as to any other fact or condition reasonably requested by the Landlord or such other addressee; and (g) acknowledging and agreeing that any statement contained in such certificate may be relied upon by the Landlord and any such other addressee.

SECTION 16. QUIET ENJOYMENT.

The Landlord hereby covenants that the Tenant, on paying the Rent and performing the covenants set forth herein, shall peaceably and quietly hold and enjoy the Premises throughout the Term without disturbance by the Landlord. Nothing in the provisions of this Lease shall be deemed to impose upon the Landlord any liability on account of any act or failure to act by any person other than the Landlord.

SECTION 17. NOTICES.

Any notice, demand, consent, approval, request or other communication or document to be provided hereunder to a party hereto shall be (a) in writing, and (b) deemed to have been provided (i) forty-eight (48) hours after being sent as certified or registered mail using the United States mails, postage prepaid, return receipt requested, or (ii) the next business day after having been deposited (in accordance with such courier’s requirements for delivery on such business day) with Federal Express or another national courier service, in each case to the Notice Address of such party or to such other address in the United States of America as such party may designate from time to time by notice to each other party hereto, or (iii) (if such party’s receipt thereof is acknowledged in writing) upon being given by hand or other actual delivery to such party.

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SECTION 18. GENERAL.

18.1. Effectiveness. This Lease shall become effective upon and only upon its execution and delivery by each party hereto.

18.2. Complete Understanding. This Lease represents the complete understanding between the parties hereto as to the subject matter hereof, and supersedes all prior written or oral negotiations, representations, warranties, statements or agreements between the parties hereto as to the same. No inducements, representations, understandings or agreements have been made or relied upon in the making of this Lease, except those specifically set forth in the provisions of this Lease. Neither party hereto has any right to rely on any other prior or contemporaneous representation made by anyone concerning this Lease which is not set forth herein.

18.3. Amendment. This Lease may be amended by and only by an instrument executed and delivered by each party hereto.

18.4. Applicable law. This Lease shall he given effect and construed by application of the laws of the state of Utah and any action or proceeding arising hereunder shall be brought in the courts of such state; provided, that if such action or proceeding arises under the Constitution, laws or treaties of the United States of America, or if there is a diversity of citizenship between the parties thereto, so that it is to be brought in a United States District Court, for the District of Utah or any successor federal court having original jurisdiction.

18.5. Waiver. Neither the Landlord nor Tenant shall be deemed to have waived the exercise of any right which it holds hereunder unless such waiver is made expressly and in writing (and no delay or omission by the Landlord or Tenant in exercising any such right shall be deemed a waiver of its future exercise). No such waiver made as to any instance involving the exercise of any such right shall be deemed a waiver as to any other such instance, or any other such right. Without limiting the generality of the foregoing, no action taken or not taken by the Landlord or Tenant under the provisions of this Section or any other provision of this Lease (including, by way of example rather than of limitation, the Landlord’s acceptance of the payment of Rent after the occurrence of any Event of Default) shall operate as a waiver of any right to be paid a late charge or of any other right or remedy which the Landlord would otherwise have against the Tenant or Landlord, as the case may be, on account of such Event of Default under the provisions of this Lease or applicable law.

18.6. Time of Essence. Time shall be of the essence of this Lease.

18.7. Headings. The headings of the Sections, subsections, paragraphs and subparagraphs hereof are provided herein for and only for convenience of reference, and shall not be considered in construing their contents.

18.8. Construction. As used herein, (a) the term “person” means a natural person, a trustee, a corporation, a partnership and any other form of legal entity; and (b) all references made (i) in the neuter, masculine or feminine gender shall be deemed to have been made in all such genders, (ii) in the singular or plural number shall be deemed to have been made, respectively, in the plural or

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singular number as well, and (iii) to any Section, subsection, subsection or subparagraph shall, unless therein expressly indicated to the contrary, be deemed to have been made to such Section, subsection, subsection or subparagraph of this Lease.

18.9. Exhibits. Each writing or plat referred to herein as being attached hereto as an exhibit or otherwise designated herein as an exhibit hereto is hereby made a part hereof.

18.10. Severability. No determination by any court, governmental body or otherwise that any provision of this Lease or any amendment hereof is invalid or unenforceable in any instance shall affect the validity or enforceability of (a) any other such provision, or (b) such provision in any circumstance not controlled by such determination. Each such provision shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.

18.11. Definition of “Landlord”. As used herein, the term “Landlord” means the person hereinabove named as such, and its successors and assigns (each of whom shall have the same rights, remedies, powers, authorities and privileges as it would have had, had it originally signed this Lease as the Landlord). No person holding the Landlord’s interest hereunder (whether or not such person is named as “the Landlord” herein) shall have any liability hereunder after such person ceases to hold such interest, except for any such liability accruing while such person holds such interest. No Senior Holder not in possession of the Premises or the Building shall have any liability hereunder. Neither the Landlord nor any principal of the Landlord, whether disclosed or undisclosed, nor any officer, director, employee, agent or representative of the Landlord shall have any personal liability under any provision of this Lease except as may arise out of or result from the negligent acts or omissions of any such persons. If the Landlord defaults in performing any of its obligations hereunder or otherwise, the Tenant shall look solely to the Landlord’s equity, interest and rights in the Property to satisfy the Tenant’s remedies on account thereof.

18.12. Definition of “Tenant”, As used herein, the term “Tenant” means each person hereinabove named as such and such person’s heirs, personal representatives, successors and assigns, each of whom shall have the same obligations, liabilities, rights and privileges as it would have possessed had it originally executed this Lease as the Tenant; provided, that no such right or privilege shall inure to the benefit of any assignee of the Tenant, immediate or remote, unless the assignment to such assignee is made in accordance with the provisions of Section 11. Whenever two or more persons constitute the Tenant, all such persons shall be jointly and severally liable for performing the Tenant’s obligations hereunder. No officer, director, employee, agent or representative of the Tenant shall have any personal liability under any provision of this Lease.

18.13. Recitals. The recitals set forth at the beginning of this Lease are hereby incorporated as a substantive part hereof.

18.14. Commissions.

18.14.1. Each party hereto hereby represents and warrants to the other that, other than as is set forth herein below, in connection with the leasing of the Premises hereunder, the party so representing and warranting has not dealt with any real estate broker, agent or

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finder, and there is no commission, charge or other compensation due on account thereof. Each party hereto shall defend, indemnify and hold harmless the other against and from any liability, claim of liability or expense arising out of any inaccuracy in such party’s representation.

18.14.2. The parties hereto hereby acknowledge and agree that, in connection with such leasing, the Tenant has utilized the services of the Tenant Broker, if any, and the Landlord has utilized the services of the Landlord Broker, if any. The Landlord shall pay to the Recognized Broker any and all commissions due to it for such services in accordance with the provisions of a written brokerage agreement by and between the Landlord and the Recognized Broker.

SECTION 19: SPECIAL TERMS

19.1. Option to Expand. Tenant shall have a right of first offer on any space that is adjacent to the Premises on the 5^fh floor of the Building that will become available any time during the Term other than the last 90 days of the Term. In the event such space becomes available, Landlord shall provide Tenant written notice of such fact and of the amount of rent it intends to charge for such available space. Tenant shall have ten (10) days from receipt of such notice to inform Landlord of its desire to also lease such additional space. Absent such timely acceptance, Tenant rights to such space shall be terminated. Tenant’s lease of such additional space shall be at such rent proposed by the Landlord and on the same other terms and conditions as contained herein.

19.2. FDIC Contingency. Notwithstanding anything herein to the contrary, the continuation of this Lease is subject to Tenant obtaining FDIC approval to its operations as an industrial bank charter or Tenant’s waiver of this condition. Tenant shall pay to Landlord upon execution an Advance Rent of $12,188.76 . In the event Tenant does not receive FDIC approval or has waived this condition, the Landlord shall be entitled to a fixed payment of $20,000.00 as its sole and exclusive remedy as damages, and the remainder of this Lease shall be automatically terminated and of no further force or effect. Notwithstanding the above, in the event Tenant gives Landlord notice that it has not received FDIC approval by September 15, 2002, the Landlord shall retain the Advance Rent as its sole and exclusive remedy as damages, and the remainder of this Lease shall be automatically terminated and of no further force or effect.

In the event Tenant receives FDIC approval or of Tenant’s waiver of this condition, then Landlord shall apply the Advanced Rent to the first three months Base Rent due under the Lease and the Lease shall continue as herein provided.

19.3. Guarantee. The granting and entering into of a Guarantee attached hereto as Exhibit E is a condition to Landlord’s performance hereunder.

(the remainder of this page is deliberately blank)

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IN WITNESS WHEREOF, each party hereto has executed and unsealed this Lease or caused it to be executed and unsealed on its behalf by its duly authorized representatives, the day and year first above written.

LANDLORD:
B-Line Holdings, L.C.
By:
Its:	Manager
TENANT:
Medallion Bank, a Utah Industrial Bank
By:
Its:	President

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EXHIBIT A

Description of the Land

BEGINNING at a point on the South line of 6600 South Street said point being North, 41.526 feet and East 2756.412 feet from the West quarter corner of Section 20, Township 2 South, Range 1 East, Salt Lake Base and Meridian; said point also being South 38.856 feet and East 1048.719 feet from Salt Lake County Monument at the intersection of 900 East and 6600 South Street; running thence North 89°56’ 15” East, 434.972 feet along said South line of 6600 South Street; thence South 30°03’39” East 170.636 feet; thence South 51°31 ‘38” East 201.066 feet to the North line of Interstate 215; thence South 89°04’59” West 203.876 feet along said North line to a R/W Marker, thence North 82°30’26” West 267.286 feet along said North line to a R/W Marker, thence North 76°06’26” West 213.220 feet along said North line to a R/W Marker, thence North 00° 10’42” East 197.390 feet to point of BEGINNING.

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EXHIBIT B

Page 1 of 1 Drawing Showing the Premises

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EXHIBIT C

Plans and Specifications (to be inserted)

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EXHIBIT D

Rules and Regulations

1. The sidewalks, lobbies, passages, elevators and stairways shall not be obstructed by the Tenant or used by the Tenant for any purpose other than ingress and egress from and to the Premises. The Landlord shall in all cases retain the right to control or prevent access to the Property by any person whose presence, in the Landlord’s judgment, would be prejudicial to the safety, peace, character or reputation of the Building or of any tenant of the Property.

2. The toilet rooms, water closets, sinks, faucets, plumbing and other service apparatus of any kind shall not be used by the Tenant for any purpose other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other matter shall be placed therein or used in connection therewith by the Tenant. Any damages resulting from the misuse of the fixtures shall be the responsibility of the Tenant. The Tenant shall not place, store or leave any item in the lobbies, passages, elevators or stairways of the Building or on or about any part of the Property other than the Premises. Doormats or walk off mats are not to be placed outside the entry door of the Premises.

3. No skylight, window, door or transom of the Building shall be covered or obstructed by the Tenant, and no window shade, blind, curtain, screen, storm window, awning or other material shall be installed or placed on any window or in any window space, except as approved in writing by the Landlord. If the Landlord has installed or hereafter installs any shade, blind or curtain in the Premises, the Tenant shall not remove it without first obtaining the Landlord’s written consent.

4. No sign, lettering, insignia, advertisement, notice or other thing shall be inscribed, painted, installed, erected or placed in any portion of the Premises or other part of the exterior or interior of the Building or on or about any part of the Property, unless first approved in writing by the Landlord. Names on suite entrances shall be provided by and only by the Landlord at the Tenant’s expense.

5. The Tenant shall not place any other or additional lock upon any door within the Premises or elsewhere upon the Property, and shall surrender all keys for all such locks at the end of the Term. The Landlord shall provide the Tenant with one set of keys to the Premises when the Tenant assumes possession thereof. All locks shall be operable by the Building grand master key.

6. The Tenant shall not do or permit to be done anything which obstructs or interferes with the rights of any other tenant of the Property. The Tenant shall not keep anywhere within the Property any matter having an offensive odor, or any kerosene, gasoline, benzene, camphene, fuel or other explosive or flammable material. No bicycle or vehicle, or bird, fish or other animal shall be brought into or kept in or about the Premises. The Tenant shall not permit the generation of any vibration, light or noise, mechanical or otherwise, which is capable of being felt, seen or heard (as the case may be) outside of the Premises.

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7. So that the Premises may be kept in a good state of preservation and cleanliness, the Tenant shall, while in possession of the Premises, permit only the Landlord’s employees and contractors to clean the Premises unless prior thereto the Landlord otherwise consents in writing. The Tenant shall see each day that the windows are closed and the doors securely locked before leaving the Premises, and that all lights and standard office equipment within the Premises are turned off.

8. If the Tenant desires to install signaling, telegraphic, telephonic, protective alarm or other wires, apparatus or devices within the Premises, the Landlord shall direct where and how they are to be installed and, except as so directed, no installation, boring or cutting shall be permitted. The Landlord shall have the right (a) to prevent or interrupt the transmission of excessive, dangerous or annoying current of electricity into or through the Building or the Premises, (b) to require the changing of wiring connections or layout at the Tenant’s expense, to the extent that the Landlord may deem necessary, (c) to require compliance with such reasonable rules as the Landlord may establish relating thereto, and (d) in the event of noncompliance with such requirements or rules, immediately to cut wiring or do whatever else it considers necessary to remove the danger, annoyance or electrical interference with apparatus in any part of the Building. Each wire installed by the Tenant must be clearly tagged at each distributing board and junction box and elsewhere where required by the Landlord, with the number of the office to which such wire leads and the purpose for which it is used, together with the name of the Tenant or other concern, if any, operating or using it.

9. All deliveries or moving of furniture, equipment, supplies, etc., into or out of the Building are to be done Monday through Friday, 8 a.m. to 4 p.m., only. All such deliveries are to use the designated freight elevator only. Passenger elevators and/or the main building lobby are not to be used for deliveries unless otherwise directed by security or building management personnel. No furniture, equipment, bulk items or other items which might, in the Landlord’s judgment, interfere with the orderly operation of the Building, may be received in or removed from the Building, or carried up or down in the elevators or stairways, except during such hours as are designated above for such purpose by the Landlord, and, if necessary in the Landlord’s opinion, under the direction and control of the Landlord (at the expense of the Tenant) and only after the Tenant gives notice thereof to the Landlord. The Landlord shall have the exclusive right to prescribe the method and manner in which any such item is brought into or taken out of the Building, and the right to exclude from the Building any such items which may create a hazard (whether structural or otherwise) and/or to require any such item to be located at a designated place in the Premises. The Tenant shall not place any weight anywhere beyond the safe carrying capacity of the Building. The cost of repairing any damage to the Building or any other part of the Property caused by taking any such item in or out of the Premises, or any damage caused while any such item is in the Premises or the rest of the Building, shall be borne by the Tenant.

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10. Without the Landlord’s prior written consent, (a) nothing shall be fastened to (and no hole shall be drilled, or nail or screw driven into) any wall or partition, (b) no wall or partition shall be painted, papered or otherwise covered or moved in any way or marked or broken, (c) no connection shall be made to any electrical wire for running any fan, motor or other apparatus, device or equipment, (d) no machinery of any kind other than customary small business machinery shall be allowed in the Premises, and (e) no mechanic or service technician, other than one employed by the Landlord, shall be allowed to work on or install any item affecting the Building or the structures or systems thereof. If the Landlord shall consent thereto, all such work shall be performed in accordance with the accepted Building standard methods and procedures.

11. The Tenant shall have access to the Premises at all reasonable times. The Landlord shall in no event be responsible for admitting or excluding any person from the Premises. In case of invasion, hostile attack, insurrection, mob violence, riot, public excitement or other commotion, explosion, fire or any casualty, the Landlord shall have the right, but not the obligation, to bar or limit access to the Building to protect the safety of occupants of the Property, or any property within the Property.

12. The Landlord reserves the right to inspect all objects and matters to be brought into the Building and to exclude from the Building all objects and matters which violate any of these Rules and Regulations or the Lease of which these Rules and Regulations are a part. The Landlord may require any person leaving the Building with any package or other object or matter to submit a pass listing such package or object or matter from the Tenant from whose premises the package is being removed. Establishment or enforcement of this requirement shall not impose any responsibility on the Landlord for the protection of any tenant against the removal of property from its premises. The Landlord shall in no way be liable to the Tenant for damages or loss wising from the admission, exclusion or ejection of any person to or from the Premises or the Building.

13. All persons entering and/or leaving the Building may be required to sign a register. The Landlord will furnish passes to persons for whom the Tenant requests such passes in writing. The Tenant shall be responsible for all persons for whom the Tenant requests such passes and shall be liable to the Landlord for all acts or omissions of such persons.

14. Canvassing, soliciting and peddling in the Building are prohibited and the Tenant shall cooperate to prevent the same.

15. There shall not be used any hand truck, cart, etc., except those equipped with rubber tires, side guards and other such safeguards as the Landlord may require.

16. The Tenant and its employees are obligated to follow the provisions of the Building fire safety plan and to participate in any fire drills, training sessions or any other activities deemed by the Landlord to be necessary to the success of such plan.

17. The use of any room within the Building as lodging, sleeping quarters or for any immoral or illegal purpose is strictly prohibited at all times.

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18. The Tenant shall keep the windows and doors of the Premises (including those opening on corridors and all doors between rooms entitled to receive heating or air conditioning service and rooms not entitled to receive such service), closed while the heating or air conditioning system is operating, in order to minimize the energy used by, and to conserve the effectiveness of, such systems. The Tenant shall comply with all reasonable Rules and Regulations from time to time promulgated by the Landlord with respect to such systems or their use.

19. No smoking activities (including, but not limited to, smoking or carrying a lighted cigar, cigarette or pipe or using smokeless tobacco) are permitted anywhere in the Building, including, without limitation, the Premises, common areas, hallways, restrooms or other public areas.

20. Nothing in these Rules and Regulations shall give any Tenant any right or claim against the Landlord or any other person if the Landlord does not enforce any of them against any other tenant or person (whether or not the Landlord has the right to enforce them against such tenant or person), and no such non enforcement with respect to any tenant shall constitute a waiver of the right to enforce them as to the Tenant or any other tenant or person.

21. The Landlord shall have the right to rescind, suspend or modify the Rules and Regulations and to promulgate such other Rules or Regulations as, in the Landlord’s reasonable judgment, are from time to time necessary or desirable for the reputation, safety, care, maintenance, operation and/or cleanliness of the Building, or for the preservation of good order therein. Upon the Tenant’s having been given notice of the taking of any such any action, the Rules and Regulations as so rescinded, suspended, modified or promulgated shall have the same force and effect as if in effect at the time at which the Tenant’s Lease was entered into (except that nothing in the Rules and Regulations shall be deemed in any way to alter or impair any provision of such Lease and in the event of any conflict between the terms of the Lease and the Rules and Regulations, the Lease terms shall govern). Subject to the specific provisions of each tenant’s lease, the Landlord agrees to apply and enforce the Rules and Regulations in a uniform and reasonable manner, taking into account the nature, extent and frequency of the violations thereof by the respective tenants of the Property.

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EXHIBIT E

GUARANTY

1. GUARANTEE. To induce B-LINE HOLDINGS, L.C., a Utah limited liability company (“Landlord”) to enter into that certain Agreement of Lease (the “Lease”) dated July 3, 2002, between Landlord and MEDALLION BANK, a Utah Industrial Bank (the “Tenant”), for property located in the building generally located at 1100 East 6600 South, Salt Lake City Utah, the undersigned, MEDALLION FINANCIAL CORP., a Delaware corporation (“Guarantor”) hereby guarantees and promises, on demand (i) to pay to the Landlord the amount specified in 2. below, in accordance with Section 19.2 in the Lease.

2. AMOUNT OF GUARANTEE. This guaranty is for the fixed payment of Twenty Thousand Dollars ($20,000.00) referred to in Section 19.2 in the Lease.

3. OBLIGATIONS JOINT AND SEVERAL. The obligations of the Guarantor hereunder are joint and several, and are independent of the obligations of Tenant. Separate action or actions may be brought and prosecuted against Guarantor, whether or not action is brought against Tenant and whether or not Tenant be joined in any such action or actions and if and to the extent such a waiver is valid Guarantor waive the benefit of any statute of limitations affecting their liability hereunder or the enforcement thereof. Guarantor shall have the benefit of any and all defenses, claims and counterclaims available to Tenant, other than any defense that may be raised by reason of Tenant’s bankruptcy.

4. ASSIGNMENT OF GUARANTY. Landlord may without notice assign the Lease or this guaranty in whole or in part. Guarantor shall not delegate its obligations under this Guaranty without the prior written consent of Landlord.

5. WAIVERS. Guarantor waive any right to require Landlord to: (a) proceed against Tenant (b) proceed against or exhaust any security held from Tenant (c) pursue any other remedy in Landlord’s power whatsoever. Before commencing any action to enforce this Guaranty, the Tenant shall first be provided notice of any default and opportunity to cure as provided in the Lease. In the event the Tenant fails to cure such default as provided, Landlord shall provide the Guarantor written notice sent by registered or certified mail, postage prepaid, return receipt requested, or by overnight mail delivery service, and the Guarantor shall then have ten (10) days after notice to cure such default before the Landlord shall take any action to enforce this Guaranty.

6. VENUE. The parties mutually acknowledge and agree that this Guaranty shall be construed and enforced in accordance with the law of the State of Utah. The parties mutually consent and submit to the jurisdiction of the federal and/or state court located in Salt Lake County, Utah and any action or suit concerning this Guaranty or related matters shall only be brought by the parties in federal or state court with appropriate subject matter jurisdiction sitting in Salt Lake County, Utah. The parties

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mutually acknowledge and agree that they shall not raise in connection therewith, and hereby waive, any defenses based upon venue, inconvenience of forum or lack of personal jurisdiction in any action or suit brought in accordance with the foregoing. The parties acknowledge that they have read and understand this clause and agree willingly to its terms.

7. INUREMENT. This Guaranty shall inure to the benefit of Landlord, its successors and assigns, and shall be binding upon the heirs, personal representatives and assigns of the Guarantor.

8. ATTORNEY FEES. Guarantor shall pay to Landlord all of Landlord’s costs, including reasonable attorney fees, to collect the amount being guaranteed.

INTENDING TO BE LEGALLY BOUND the undersigned Guarantor has executed this Guaranty this 3^rd, day of July, 2002.

MEDALLION FINANCIAL CORP.
By:
Its:	President

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ADDENDUM TO LEASE

THIS ADDENDUM TO LEASE (“Addendum”) is attached to and made a part of that certain Agreement of Lease (“Lease”) dated July 3, 2002, by and between B-Line Holdings, L.C., a Utah limited liability company (“Landlord”) and Medallion Bank, a Utah industrial bank for certain premises located at 6600 South 1100 East, Salt Lake City, Utah 84121 as more particularly described in the Lease. In the event of any contradiction or inconsistency between the terms and provisions of this Addendum and the terms and provisions of the Lease to which it is attached, the terms and provisions of this Addendum shall control. All defined terms not specifically defined in this Addendum shall be given the same meaning as the defined terms in the Lease.

1. Landlord represents to Tenant that with respect to all provisions of the Lease, all of the area in the Building, including the Premises, is and shall be measured, and the calculation of rentable space, usable space and Tenant’s Percentage of Operating Costs is and shall be determined, using a formula which is applied to all areas of the Building and all Tenants on a consistent and uniform basis.

2. Notwithstanding any other provision of this Lease to the contrary, Operating Costs shall not include: (i) expenses for any capital improvements made to the Property which do not result in a reduction of the Operating Expenses; (ii) expenses for painting, redecorating or other work which Landlord performs for any other tenant of the Property; (iii) expenses for repairs or other work to the extent Landlord is reimbursed by insurance; (iv) expenses incurred in leasing or procuring new tenants, including brokerage fees; (v) legal expenses incurred in enforcing the terms of any lease; (vi) interest on amortization payments on any mortgage; (vii) costs to repair or maintenance of common areas due to negligence or willful acts of Landlord, other tenants or their respective officers, directors, employees, agents and visitors; (viii) costs associated with repairing the defective construction of the Buildings and other improvements located at the Property; (ix) taxes on Landlord’s business (such as income, excess profits, franchise, capital stock, estate, inheritance); (x) expenses paid directly by a Tenant for any reason including, without limitation, excessive utility use; (xi) services or benefits or both provided to some but not all tenants of the Property; (xii) all costs, fines, and the like due to Landlord’s violation of, or failure to comply with, any governmental rules or authorities; and (xiii) expenses that are duplicative. Additionally, Landlord covenants that it will conduct the operation, maintenance and repair of the Building and the Property in an efficient and economical manner.

3. Landlord agrees to keep at the Building or at its principal office at least 36 months after the expiration of each calendar year, accurate books and records of all expenses and costs related to the Operating Costs, all of which shall be kept in accordance with generally acceptable accounting principles. Tenant and/or Tenant’s agents shall have the right from time to time upon reasonable advanced notice to inspect and audit all such books and records to determine the accuracy thereof. If such audit discloses that the statement of Operating Costs is inaccurate to the extent of five percent (5%) or more, Landlord shall promptly pay to Tenant, within 10 days of written notice, the reasonable costs of such audit in addition to any deficiency.

4. If Tenant exercises its option to renew (“Option”), Base Rent during the term of the Option period shall be based on “Fair Market Rental Value.” Fair Market Rental Value shall be determined in accordance with the following procedure:

(a) Landlord shall deliver to Tenant written notice of Landlord’s determination of the Fair Market Rental Value within twenty (20) days after Landlord receives notice from Tenant that Tenant intends to exercise its Option. If Tenant disputes Landlord’s determination of the Fair Market Rental Value as contained in said notice, Tenant shall notify Landlord in writing within ten (10) days of its receipt of Landlord’s determination, which notice shall further set forth Tenant’s determination of the Fair Market Rental Value. Should Tenant timely notify Landlord, Landlord and Tenant shall attempt to resolve their differences within five (5) days following Landlord’s receipt of Tenant’s objection notice. Should the parties be unable to timely resolve their differences, each party shall within five (5) days thereafter, at its own cost and by giving notice to the other party, appoint an M.A.I. appraiser with at least five years full time commercial appraisal experience in the area in which the Premises are located to appraise and determine the Fair Marker Rental Value within ten (10) days of their appointment. If a party does not appoint an appraiser within said five (5) day period, the single appraiser appointed by the other party shall be the sole appraiser and shall determine the Fair Market Rental Value within ten (10) days of his appointment. If two appraisers are appointed by the parties, the appraisers shall meet promptly attempt to mutually determine the Fair Market Rental Value.

If the two appraisers are unable to agree upon the Fair Market Rental Value within twenty (20) days of their appointment, then if the difference between them is less than five percent (5%)(determined as a ratio of the larger appraisal), the appraisals shall be added together and divided by two, the quotient being the Fair Market Rental Value; but if such difference is five percent (5%) or greater, the appraisers shall select a third appraiser meeting the qualifications as stated in this Section within five (5) days after the last day of the two appraisers are given to set the Fair Market Rental Value. If they are unable to agree on the third appraiser, either party may petition the District Court in Salt Lake City for the selection of a third appraiser who meets the qualifications stated in this Section. Each of the parties shall bear one-half of the third appraiser’s fees and charges. Within twenty (20) days after the selection of the third appraiser, the three (3) appraisers shall independently determine the Fair Market Rental Value. The average of the two (2) appraisals nearest in value shall conclusively be deemed the Fair Market Rental Value, and the Base Rent as of the first day of the term of the Option period shall be set based thereon.

5. Landlord shall use reasonable efforts to mitigate its damages in the event of a Tenant default. Wherever either party to the Lease is required or requested to give its consent, such consent shall not be unreasonably withheld.

6. Notwithstanding any subordination under Section 13 of the Lease, so long as the Lease is in full force and effect and Tenant is not in default (beyond any applicable cure period): (a) Tenant’s possession and occupancy of the Premises under the Lease shall not be disturbed or interfered with by Senior Holder or its successors and assigns in the exercise of any of its rights under the Senior Instrument, or conveyance in lieu of foreclosure; (ii) any extension or renewal rights in the Lease shall not be diminished or interfered with by Senior Holder; and (iii) Tenant will not be joined as a party defendant for the purpose of terminating Tenant’s interest and estate under the Lease in any proceeding for fore closure of the Senior Instrument. Any subordination requested to be executed by Tenant shall contain a non-disturbance provision in the same form as set forth in this Section 6.

7. The individuals executing the Lease and this Addendum on behalf of the parties hereby warrant that they have the requisite authority to execute the Lease and this Addendum on behalf of the respective parties and that the respective parties have agreed to be and are bound hereby.

IN WITNESS WHEREOF, the parties have executed this Addendum as of the dates below written to be effective as of the date of the Lease.

	LANDLORD:
	B-Line Holdings, L.C.,
	a Utah limited liability company
Date: July 3, 02	By:
	Print Name:
	Title:
	TENANT:
	Medallion Bank, a Utah industrial bank
Date: 7/3/02	By:
	Print Name:	JOHN M. TAGGART
	Title:	President

EX-10.18

Exhibit 10.18

AMENDMENT OF

LEASE AGREEMENT

This Amendment of Lease Agreement (this “Amendment”) is made as of the 29^th day of October, 2004, by and between B-LINE Holdings, L.C., a Utah limited liability company (the “Landlord”), and Medallion Bank, a Utah Industrial Bank (“the Tenant”).

WHEREAS, by an Agreement of Lease dated July 3, 2002, B-LINE Holdings, L.C., a Utah limited liability company as landlord (the “Landlord”) has leased the space containing approximately 2,786 rentable square feet (“RSF”) (2,459 useable square feet (“USF”), known as Suite 510 in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant (the “Lease”);

WHEREAS, Tenant desires to lease an additional 1,475 rentable square feet (1,302 useable square feet) in the Building (the “New Space”), as shown on Exhibit “A” attached hereto and made a part hereof, pursuant to the following terms and conditions.

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend the Lease as follows to be effective as of Effective Date, as defined below:

1.    Premises. Premises means the space containing approximately 4,261 rental square feet (RSF) (3,761 useable square feet) shown outlined on a drawing attached hereto as Exhibit B and know as Suite 510, located on the fifth (5^th) floor in the Building.

2.    Tenant’s Percentage. The Tenant’s Percentage shall be 6.458% (4,261 / 65,983 total rentable square feet).

3.    Term. The Effective Date of this amendment shall be upon completion of the improvements to the New Space, which is anticipated to be January 1, 2005, (the “Effective Date”). The term of the Lease shall continue until the same November 30, 2007 Termination Date.

4. Base Rent. “Base Rent” is modified to be:

LEASE YEAR	BASE RENTAL RATE		ANNUAL BASE RENT			MONTHLY INSTALLMENT
2004	$	18.03 per RSF/yr.	$	50,231.64	*	$	4,185.97	*
2005	$	18.57 per RSF/yr.	$	79,126.77		$	6,593.90
2006	$	19.15 per RSF/yr	$	81,598.15		$	6,799.85
2007 until Nov. 30	$	19.72 per RSF/yr.	$	84,026.92		$	7,002.24

* The indicated annual and monthly rent is for the Premises without the addition of the New Space.

5.    Base Year. “Base Year” for all of the Premises remains calendar year 2002. In the event the Effective Date is other than January 1, 2005, then Tenant shall pay a prorata share of the Additional Rent for the calendar year of the Effective Date based upon its rentable square feet.

6.    Tenant Improvements Allowance. Landlord shall provide Tenant with a $7,812.00 Tenant Improvement Allowance to improve the New Space pursuant to the provisions provided for in Section 6, of the Lease. This provision shall be effective immediately upon execution hereof.

7.    Parking. Tenant shall have the right to use up to seventeen (17) non- reserved parking spaces in the Building’s parking (an increase of six (6) spaces). No separate fee shall be charged for this right.

8.    Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

LANDLORD:

B-Line Holdings, L.C.

By:      

Its: Manager

TENANT:

Medallion Bank, a Utah Industrial Bank

By:      

Its: President/CEO

2

EXHIBIT “A”

EX-10.19

Exhibit 10.19

ASSIGNMENT OF

LEASE

This Assignment of Lease (this “Assignment”) is made this 6^th day of July, 2006, to be effective as of August 1, 2006 (the “Effective Date”), by and between Medallion Bank, a Utah industrial bank (“Medallion”), and Zerop Medical, LLC, a Utah limited liability company (“Tenant”), and is consented and agreed to by B-Line Holdings, L.C., a Utah limited liability company (“Landlord”).

WHEREAS, by an Agreement of Lease dated August 27, 2004, Landlord has leased the space containing approximately 2,752 rentable square feet (“RSF”) (2,429 useable square feet) (“USF”), known as Suite 520 (“Suite 520”) in the building located at 11:00 East 6600 South, Salt Lake City, Utah, to Tenant (the “Original Lease”), which lease was amended on February 7, 2005, when Tenant also leased Suite 410 in the same building (“Suite 410”) (the “Lease”); and

WHEREAS, Tenant desires to no longer lease Suite 520 and Medallion desires to assume Tenant’s obligations and rights under the Lease with respect to Suite 520, subject to the terms set forth herein.

NOW, THEREFORE, for and in consideration of the mutual entry into this Assignment, the parties hereto do hereby act as follows;

1. Assignment. As of the Effective Date, Tenant hereby assigns to Medallion all of Tenant’s rights under the Lease as they relate and only as they relate to Suite 520 for the entire remaining Term of the Lease, August 31, 2009. For this purpose, the Original Lease shall be deemed to contain all of the terms of the Lease as they relate and only as they relate to Suite 520. Provided, however, on the Effective Date, Landlord shall either give Tenant credit, reimburse or a combination of the two an amount equal to the Security Deposit being held by the Landlord pursuant to the Lease attributable to Suite 520, Four Thousand Five Hundred Eighty-six and 67/100 Dollars ($4,586.67) (the “Medallion Security Deposit”). As a result, Medallion shall have no Security Deposit with respect to Suite 520 and the remaining Security Deposit being held by the Landlord as a result of the Lease shall only be applied towards Suite 410 and Tenant’s obligations regarding said Suite 410.

2. Assumption. As of the Effective Date, Medallion hereby assumes and promises to timely perform all of Tenant’s obligations under the Lease as they relate and only as they relate to Suite 520. For this purpose, the Original Lease shall be deemed to contain all of the terms of the Lease as they relate and only as they relate to Suite 520. Thus, Medallion promises to pay to Landlord the Base Rent, as such term is defined in the Lease, at the applicable rentable square foot rate, for the 2,752 RSF as follows:

LEASE YEAR	BASE RENTAL RATE		ANNUAL BASE RENT		MONTHLY INSTALLMENT
Effective Date-8/31/06	$	18.50 per RSF/yr.	$	50,912.00	$	4,242.67
9/1/06-8/31/07	$	19.00 per RSF/yr.	$	52,288.00	$	4,357.33
9/1/07-8/31/08	$	19.50 per RSF/yr.	$	53,664.00	$	4,472.00
9/1/08-8/31/09	$	20.00 per RSF/yr	$	55,040.00	$	4,586.67

3. Tenant’s Percentage. As a result of the above, Medallion’s Tenant’s Percentage, as such term is used in the Lease, shall be 4.17% (2,752 / 65,983 total rentable square feet).

4. Tenant Improvements. The Lease’s requirement to repay a pro-rata portion of the tenant improvement allowance extended by Landlord pursuant to the Lease shall only be applied to the termination of the Lease with respect to the termination of the Lease with respect to Suite 410 and shall not be triggered by this Assignment.

5. Parking. As a result of the above Assignment, Medallion shall have the right to use up to eight (8) non-reserved parking spaces in the Building’s parking, with the remaining nine (9) spaces under the Lease available to Tenant.

6. Improvements. Medallion contemplates that it will have a desire to make some minor improvements to Suite 520. Medallion shall obtain Landlord’s approval for all such improvements as provided for in the Lease. Landlord shall not provide any allowance or assistance with respect to such improvements.

7. Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

8. Landlord. Landlord hereby accepts the above assignment and assumption and hereby releases Tenant from any and all obligations under the Lease as they relate and only as they relate to Suite 520.

9. Attorney Fees. Medallion and Tenant shall each reimburse Landlord for 50% of the cost of preparing this Assignment by paying directly to Landlord’s counsel for such cost.

10. Option to Renew. Provided Medallion is not then in default of any terms and conditions of this Assignment and the Lease, Medallion shall have one (1) option to extend the Term for an additional five (5) years for such Rent as the parties shall at that time negotiate. Medallion shall give Landlord at least 60 day written notice of its desire to exercise this option. The parties shall during the next succeeding 30 days negotiate the amount of the rent to be paid for the extended Term. In the event the parties are unable to negotiate such Rent for the extended period, then the Term shall not be extended and the Lease shall terminate as herein otherwise provided.

11. No Brokers. No party has agreed to pay any fee or commission to any agent, broker, finder or other person for or on account of services rendered as a broker or finder in connection with this Assignment or the transactions contemplated hereby that would give rise to any valid claim by another party hereto for any brokerage commission or finder’s fee or like payment.

12. Entire Agreement. This Assignment and the Original Lease contains the entire agreement among the parties with respect to Suite 520 and such agreement may only be modified or amended by a written agreement between Medallion and Landlord. This Assignment does not, however, modify or amend Medallion’s other lease agreement with Landlord or Tenant’s remaining obligations under the Lease with respect to Suite 410.

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IN WITNESS WHEREOF, the Parties have caused this Assignment to be duly executed by their authorized representatives.

LANDLORD:

B-Line Holdings, L.C.

By:      

Its: Manager

TENANT:

Zerop Medical, LLC

By: Its:	CEO
MEDALLION:
Medallion Bank

By:      

Its: President/CEO

3

EX-10.20

Exhibit 10.20

SECOND AMENDMENT OF

LEASE AGREEMENT

This Amendment of Lease Agreement (this “Amendment”) is made as of the 9^th day of January, 2007, by and between B-LINE Holdings, L.C., a Utah limited liability company (the “Landlord”), and Medallion Bank, a Utah Industrial Bank (the “Tenant”).

WHEREAS, by an Agreement of Lease dated July 3, 2002, Landlord has leased the space containing approximately 2,786 rentable square feet (“RSF”) (2,459 useable square feet (“USF”)), known as Suite 510 in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant;

WHEREAS, by an Amendment of Lease Agreement dated October 29, 2004, Tenant has leased an additional 1,475 RSF (1,302 USF) in the Building;

WHEREAS, by an Assignment of Lease Agreement dated July 6, 2006, Tenant executed an Assignment of Lease with Zerop Medical, LLC which has resulted in Tenant leasing from Landlord 2,752 RES (2,429 USF) known as Suite 520 in the Building;

WHEREAS, all of the above agreements by and between the Tenant and Landlord are herein referred to as the “Lease.”

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend the Lease as follows, all of the following to be completed and effective as of January 15, 2007:

1. Premises. All of Tenant’s rights with respect to Suite 520 shall be terminated and Tenant shall vacate and surrender possession of Suite 520. Tenant shall remove all of its personal effects and leave Suite 520 in the condition required at the termination of the Lease. The Lease is amended to substitute Suite 520, with Suite 515. As a result of this change the amount of rentable and usable square feet with Suite 515 consisting of 1,556 RSF, 1,373 USF, shall be substituted for the rentable and usable square feet with Suite 520.

2. Tenant’s Percentage. As a result of the above substitution, the Tenant’s current total Percentage shall be 8.816% (5,817 / 65,983 total RSF).

3. Term. The Term of the Lease as well as all other terms and conditions for Suite 515 shall be the same as it was for Suite 520, except as specifically provided to the contrary herein.

4. Base Rent. As a result of the above substitution, the Tenant’s “Base Rent” is modified to be:

Suite 510:

Term	Base Rental Rate	Annual Base Rent	Monthly Installment
1/1/07-11/30/07	$19.72 per RSF/yr.	$84,026.92	$7,002.24

Suite 515:

Term	Base Rental Rate	Annual Base Rent	Monthly Installment
1/15/07-1/31/07	$19.63 per RSF/yr.	$30,544.32	$1,272.68
2/1/07-12/31/07	$19.63 per RSF/yr.	$30,544.32	$2,545.36
1/1/08-12/31/08	$20.22 per RSF/yr.	$31,462.32	$2,621.86
1/1/09-12/31/09	$20.83 per RSF/yr.	$32,411.52	$2,700.96

5. Base Year. “Base Year” for Suite 510 is calendar year 2002 and the “Base Year for Suite 515 is 2005.

6. Tenant Improvements Allowance. There is no tenant improvement allowance being provided by Landlord as a result of this Amendment. Landlord understands that Tenant desires to make improvements to combine the two suites. Tenant must comply with the terms of the Lease in obtaining Landlord’s reasonable consent prior to commencement of any work.

7. Parking. Tenant shall have the right to use up to twenty-four (24) non-reserved parking spaces in the Building’s parking (an increase of six (6) spaces). No separate fee shall be charged for this right.

8. Option to Renew. Provided Tenant is not then in default of any terms and conditions of the Lease, Medallion shall have one (1) option to extend the Term of Suite 515 for an additional five (5) years for such Rent as the parties shall at that time negotiate. To exercise this option, Tenant must give Landlord at least sixty (60) days written notice of its desire to exercise this option. The parties shall during the next succeeding thirty (30) days negotiate the amount of the Rent to be paid for the extended Term. In the event the parties are unable to negotiate such Rent for the extended period, then the Term for Suite 515 shall not be extended and the Lease shall terminate as herein otherwise provided.

9. No Brokers. No party has agreed to pay any fee or commission to any agent, broker, finder or other person for or on account of services rendered as a broker or finder in connection with this Amendment or the transactions contemplated hereby that would give rise to any valid claim by another party hereto for any brokerage commission or finder’s fee or like payment.

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10. Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

LANDLORD:
B-Line Holdings, L.C.
By:
Its:	Manager

TENANT:
Medallion Bank, a Utah Industrial Bank
By:
Its:	President

3

EX-10.21

Exhibit 10.21

THIRD AMENDMENT OF

LEASE AGREEMENT

This Amendment of Lease Agreement (this “Amendment”) is made as of the 31^st day of October, 2007, by and between B-LINE Holdings, L.C., a Utah limited liability company (the “Landlord”), and Medallion Bank, a Utah Industrial Bank (“the Tenant”).

WHEREAS, by an Agreement of Lease dated July 3, 2002, B-LINE Holdings, L.C., a Utah limited liability company as landlord (the “Landlord”) has leased the space containing approximately 2,786 rentable square feet (“RSF”) (2,459 useable square feet (“USF”), known as Suite 510 in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant (the “Lease”);

WHEREAS, by an Amendment of Lease Agreement dated October 29, 2004, Tenant has leased an additional 1,475 rentable square feet (1,302 useable square feet) in the Building;

WHEREAS, by an Assignment of Lease Agreement dated July 6, 2006, Tenant executed an Assignment of Lease with Zerop Medical, LLC wherein Tenant has leased 2,752 rentable square feet (2,429 useable square feet) known as Suite 520 in the Building;

WHEREAS, by a Second Amendment of Lease Agreement dated January 9, 2007, Tenant substituted Ste. 520 with Ste. 515 which is comprised of 1,556 rentable square feet (1,373 useable square feet);

WHEREAS, all of the above agreements by and between the Tenant and Landlord are herein referred to as the “Lease.”

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend the Lease as follows to be effective as of Effective Date, as defined below:

1. Premises. Suite 518 which is comprised of 231 rentable square feet (204 useable square feet) will be added to Tenant’s Premises effective December 1, 2007. The total square footage of Stes. 510, 515 and 518 will be 6,048 rentable square feet (5,338 useable square feet).

2. Tenant’s Percentage. The Tenant’s Percentage shall be 9.17% (6,048 / 65,983 total rentable square feet).

3. Term. The Effective Date of this amendment shall be December 1, 2007. The Term for Stes. 510 and 518 shall be for five (5) years from December 1, 2007 through November 30, 2012 and the Term for Ste. 515 shall be extended from January 1, 2010 through November 30, 2012.

4. Base Rent. “Base Rent” is modified as of the Effective Date to be:

Suite 510 & 518:

Term	Base Rental Rate	Annual Base Rent	Monthly Installment
12/1/07-12/31/07	Free Rent	$         0.00	$       0.00
1/1/08-11/30/08	$19.50	$87,594.00	$7,299.50
12/1/08-11/30/09	$20.09	$90,244.32	$7,520.36
12/1/09-11/30/10	$20.69	$92,939.48	$7,744.96
12/1/10-11/30/11	$21.31	$95,727.66	$7,977.31
12/1/11-11/30/12	$21.95	$98,599.49	$8,216.62

Suite 515:

Term	Base Rental Rate	Annual Base Rent	Monthly Installment
12/1/07-12/31/07	$19.63	$30,544.32	$2,545.36
1/1/08-12/31/08	$20.22	$31,462.32	$2,621.86
1/1/09-12/31/09	$20.83	$32,411.52	$2,700.96
1/1/10-11/30/10	$20.69	$32,193.60	$2,682.80
12/1/10-11/30/11	$21.31	$33,158.40	$2,763.20
12/1/11-11/30/12	$21.95	$34,154.16	$2,846.18

5. Base Year. “Base Year” for Stes. 510 and 518 is calendar year 2007 and the “Base Year” for Suite 515 is 2005 until January 1, 2010 at which time it will be calendar year 2007.

6. Tenant Improvements Allowance. Landlord shall make the modifications to Ste. 518 as shown on the attached plans in order to combine Ste. 518 with Stes. 510 and Ste. 515.

7. Parking. The number of parking spaces shall remain as twenty-four (24) non-reserved parking spaces in the Building’s parking. No separate fee shall be charged for this right.

8. Option to Renew. Provided Medallion is not then in default of any terms and conditions of this Amendment and the Lease, Medallion shall have one (1) option to extend the Term of Ste. 515 for an additional five (5) years for such Rent as the parties shall at that time negotiate. Medallion shall give Landlord at least sixty (60) days written notice of its desire to exercise this option. The parties shall during the next succeeding 30 days negotiate the amount of the rent to be paid for the extended Term. In the event the parties are unable to negotiate such Rent for the extended period, then the Term shall not be extended and the Lease shall terminate as herein otherwise provided.

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9. Option to Expand. Tenant shall continue to have a right of first offer on any space that is adjacent to the Premises on the 5^th floor of the Building per paragraph 19.1 of the Agreement of Lease dated July 3, 2002. All terms are set forth therein.

10. Representation. Landlord has been represented by Jon Cowley of Commerce CRG and Tenant has represented itself in the negotiation of this Amendment.

11. Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

LANDLORD:
B-Line Holdings, L.C.
By:
Its:	Manager

TENANT:
Medallion Bank, a Utah Industrial Bank
By:
Its:	President

3

EX-10.22

Exhibit 10.22

THIRD AMENDMENT OF

LEASE AGREEMENT

This Third Amendment of Lease Agreement (this “Amendment”) is made as of the 15th day of November, 2011, by and between B-LINE Holdings, L.C., a Utah limited liability company (the “Landlord”), and Medallion Bank, a Utah Industrial Bank (the “Tenant”).

WHEREAS, by an Agreement of Lease dated July 3, 2002, Landlord has leased the space known as Suite 510 in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant;

WHEREAS, by an Amendment of Lease Agreement dated October 29, 2004, Tenant has leased an additional office in the Building;

WHEREAS, pursuant to the Second Amendment of the Lease Agreement dated January 9, 2007, the parties amended its prior lease agreement so that it also has leased Suite 515 in the Building;

WHEREAS, all of the above agreements by and between the Tenant and Landlord are herein referred to as the “Lease;” and

WHEREAS, the parties desire to again amend and extend the Lease pursuant to the following provisions,

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend and extend the Lease as follows. Except as set forth in Section 5 below, it is the parties’ intent that the Lease remains without amendment through November 30, 2012 and then be amended and extended as hereinafter provided.

1.    Premises. The Premises remain the same, Suites 510 and 515, consisting of approximately 6,048 rental square feet (“RSF”) (collectively the “Premises”).

2.    Term. The extended Term of the Lease, for the amendments herein contained, shall commence on December 1, 2012 and continue for sixty (60) months to November 30, 2017.

3.    Early Termination Option. Provided, however, Tenant shall have the option to terminate the Lease early as of November 30, 2015 or November 30, 2016 provided that: (1) Tenant is not in default, beyond any applicable notice or cure periods, under the Lease at the time of exercise and as of said early termination date; (2) Tenant gives Landlord at least one hundred and twenty (120) days prior written notice of such early termination; and (3) at the time of giving such early termination notice, Tenant pays a fee (the “Early Termination Fee”). The Early Termination Fee shall be equal to the sum of and the unamortized Tenant Improvement Allowance and leasing commissions provided for herein, each calculated on a straight-line basis over the sixty (60) month term of this Lease extension.

4.    Base Rent. The Tenant’s “Base Rent” for the Premises shall be:

Term	Base Rental Rate	Annual Base Rent		Monthly Installment
10/1/11 to 11/30/11	$21.31 per RSF/yr.*		N/A	$	10,740.51
12/1/11 to 11/30/12	$21.95 per RSF/yr*	$	132,753.60	$	11,062.80
12/1/12 to 11/30/13	$18.50 per RSF/yr	$	111,888.00	$	9,324.00
12/1/13 to 11/30/14	$19.06 per RSF/yr	$	115,274.88	$	9,606.24
12/1/14 to 11/30/15	$19.63 per RSF/yr	$	118,722.24	$	9,893.52
12/1/15 to 11/30/16	$20.22 per RSF/yr	$	122,290.56	$	10,190.88
12/1/16 to 11/30/17	$20.83 per RSF/yr	$	125,979.84	$	10,498.32

* No change from current Lease

5.    Free Rent. Tenant shall not be required to pay the Base Rent for the months of October, November and December, 2012.

6.    Base Year. “Base Year” for the Premises shall be 2013 beginning December 1, 2012. For purposes of determining the allocation of Additional Rent, as such term is defined in the Lease, the annual increase due to operating expenses that are under the control of the Landlord shall be limited to four percent (4%) of the controllable operating expenses for the immediate prior calendar year. In addition, operating expenses related to the Building shall be allocated to Tenant based upon no less than a ninety-five percent (95%) occupancy of the Building.

7.    Security Deposit. No security deposit has or will be paid.

8.    Tenant Improvement Allowance. Tenant shall have a Tenant Improvement Allowance equal to $10.00 per RSF ($60,480.00). Tenant shall give Landlord notice of all proposed tenant improvements and such improvements shall be constructed in accordance with the Lease. Landlord shall be paid a construction management fee of five percent (5%) on any such construction. At Tenant’s election, any Tenant Improvement Allowance which remains after the completion of such tenant improvements may be applied towards the payment of furniture, fixtures and equipment costs or Base Rent or Additional Rent by Tenant giving Landlord thirty (30) days written notice of such election.

9.    Expansion Option. Subject to the existing expansion rights previously granted by Landlord to another tenant of the Building, Travelers/St. Paul, throughout the Initial Term of the Lease and any extensions thereof, Tenant shall have an on-going right of first refusal to lease any space located on the fifth floor of the Building that becomes available. Upon receipt of a bona fide proposal that Landlord is prepared to accept, Landlord shall provide a copy of said offer to Tenant. Tenant shall then have ten (10) business days to either accept the same square footage as outlined in the proposal or waive its right in that instance. Should Tenant elect to lease the space, the same terms and conditions as contained in Tenant’s existing Lease shall apply for the expansion space, including, but not limited to Base Rent, lease expiration, a prorated Tenant Improvement Allowance based upon RSF, and a prorated amount of free rent based upon the length of the Expansion term compared to the Term. Base Rent shall commence upon completion of Tenant Improvements, subject to any amortized free rent. Should Tenant

2

decline to lease the space, such action shall have no effect on Tenant’s future rights under this provision and Landlord shall be free to lease the space to any other tenant(s). This provision is subject to Tenant not then being in default of the Lease, after giving effect to any applicable grace and cure periods.

10.    Option to Renew. Provided Tenant is not then in default of any terms and conditions of the Lease, Tenant shall have two (2) consecutive renewal options to extend the Term as to part (at least 75% of the Premises) or all of the Premises and any expansion space added to the Premises for an additional five (5) years each. If less than all of the Premises are to be leased, then that portion of the Premises which is not being leased by Tenant must be in such configuration that it can reasonably be leased by the Landlord. The Base Rent for the first year of each of the extended Terms shall be the lesser of: (1) the Base Rent as of the last day preceding the renewal Term or (2) ninety percent (90%) of the Fair Market Rate (“Market Rate”). The Base Rent for each subsequent year of each renewal Term shall increase by three percent (3%) on each December 1.

Fair Market Rate (“Market Rate”) shall be defined as the then fair market full service gross rental value of the Premises as of the date of commencement of the renewal term, determined in accordance with the provisions set forth below. The Market Rate of the Premises shall mean the full service gross rental that would be agreed to by a landlord and a new tenant, each of whom is willing, but neither of whom is compelled, to enter into the lease transaction. The Market Rate shall be determined on the basis of the assumption that the operating expense base year shall be updated to the first full calendar year under the renewal. The Market Rate shall not take into account any existing tenant improvements or any special uses or rights afforded to the Tenant under the Lease in connection with the Premises, but shall take into account the following factors:

i. Rental for comparable premises in comparable existing buildings (taking into consideration, but not limited to, use, location and/or floor level within the Building and other comparable buildings located within a one and one half (1.5) mile radius of the Building, definition of net rentable area, quality, age and location of the applicable buildings);

ii. The rentable area of the Premises being leased;

iii. The length of the pertinent renewal term;

iv. The extent to which the tenant improvement allowance, rent credit, moving allowance, space planning allowance, or similar inducements given to Tenant are less than that which would have been given to a comparable new tenant in a comparable building;

v. The quality of credit worthiness of Tenant; and

vi. The extent to which commissions are due or payable by Landlord as a result of Tenant’s exercising its option to renew this Lease.

If Landlord and Tenant are unable to agree upon the Market Rate within thirty (30) days after the date of Tenant’s notice of intent to renew, either party may elect, by written notice delivered to the other party, to determine the Market Rate by appraisal as follows. The determination of Market Rate shall be determined by three appraisers selected according to the provisions of the American Arbitration Association, each of whom shall be independent and shall not be or have

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been employed or engaged in any manner (employee, consultant or otherwise) by Landlord or Tenant (or their respective affiliates) at any time during the arbitration or during the immediately prior three (3) year period. The appraisers shall have the MAI designation and a minimum of ten (10) years’ experience in the Salt Lake City office market. Tenant’s renewal rate shall be determined by the appraisers no later than thirty (30) days after the date of initiation of the arbitration proceeding. Tenant shall have the right and option, within thirty (30) days after receipt of the written determination of Market Rate by the appraisal panel, to rescind its exercise of its renewal option by providing written notice to Landlord. The cost of arbitration shall be shared equally by Landlord and Tenant.

11.    Parking. Tenant shall have a right to use up to four and one half vehicles for each 1,000 RSF (27 vehicles). None of the spaces will be reserved.

12.    Access. Tenant shall have access to the Premises at all reasonable times. The Building hours are 7:00 a.m. to 6:00 p.m., Monday through Friday, excluding holidays.

13.    Signage. Tenant shall continue to have the same general signage as in place as of the date hereof.

14.    Brokers. Landlord shall pay its broker three percent (3%) of the Base Rent for five (5) years. Landlord’s broker has agreed to pay Tenant’s broker one-half of such commission. Both Tenant and Landlord acknowledge that Commerce Real Estate Solutions represents both the Tenant and Landlord in this transaction and that both parties agree to such dual representation. It is understood that Paul Skene (Agent) represents the Tenant and that Jon Cowley (Agent) represents the Landlord in the proposed Lease and that neither Agent shall disclose any confidential information to the other and that both Agents shall act as fiduciaries to the specific party they represent.

15.    Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

(Signatures to follow)

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LANDLORD:
B-Line Holdings, L.C., a Utah limited liability company
By:
Its:	Manager

TENANT:
Medallion Bank, a Utah Industrial Bank
By:
Its:	President/CEO

5

EX-10.23

Exhibit 10.23

FOURTH AMENDMENT OF

LEASE AGREEMENT

This Fourth Amendment of Lease Agreement (this “Amendment”) is made as of the 21^st day of November, 2011, by and between B-LINE Holdings, L.C., a Utah limited liability company (the “Landlord”), and Medallion Bank, a Utah Industrial Bank (the “Tenant”).

WHEREAS, by an Agreement of Lease dated July 3, 2002, Landlord has leased the space known as Suite 510 in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant;

WHEREAS, by an Amendment of Lease Agreement dated October 29, 2004, Tenant has leased an additional office in the Building;

WHEREAS, pursuant to the Second Amendment of the Lease Agreement dated January 9, 2007, the parties amended its prior lease agreement so that it also has leased Suite 515 in the Building;

WHEREAS, pursuant to the Third Amendment of the Lease Agreement dated October 31, 2007, the parties amended its prior lease agreement so that it also has leased Suite 518 in the Building;

WHEREAS, this Amendment and all of the above agreements by and between the Tenant and Landlord are herein referred to as the “Lease;” and

WHEREAS, the parties desire to again amend and extend the Lease pursuant to the following provisions:

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend and extend the Lease as follows. It is the parties’ intent that the Lease remains without amendment through November 30, 2012 and then be amended and extended as hereinafter provided.

1. Premises. The Premises remains the same; Suites 510, 515 and 518, consisting of approximately 6,048 rental square feet (“RSF”) (collectively the “Premises”).

2. Term. The extended Term of the Lease, for the amendments herein contained, shall commence on December 1, 2012 and continue for sixty (60) months to November 30, 2017.

3. Early Termination Option. Provided, however, Tenant shall have the option to terminate the Lease early as of November 30, 2015 or November 30, 2016 provided that: (1) Tenant is not in default, beyond any applicable notice or cure periods, under the Lease at the time of exercise and as of said early termination date; (2) Tenant gives Landlord at least one hundred and twenty (120) days prior written notice of such early termination; and (3) at the time of giving such early termination notice, Tenant pays a fee (the “Early Termination Fee”).

The Early Termination Fee shall be equal to the sum of and the unamortized Tenant Improvement Allowance, leasing commissions and free rent provided for herein, each calculated on a straight-line basis over the sixty (60) month term of this Lease extension.

4. Base Rent. The Tenant’s “Base Rent” for the Premises shall be:

Term	Base Rental Rate	Annual Base Rent		Monthly Installment
10/1/11 to 11/30/11	$21.31 per RSF/yr.*		N/A		$10,740.51
12/1/11 to 11/30/12	$21.95 per RSF/yr*		$132,753.60		$11,062.80
12/1/12 to 11/30/13	$18.50 per RSF/yr		$111,888.00		$  9,324.00
12/1/13 to 11/30/14	$19.06 per RSF/yr		$115,274.88		$  9,606.24
12/1/14 to 11/30/15	$19.63 per RSF/yr		$118,722.24		$  9,893.52
12/1/15 to 11/30/16	$20.22 per RSF/yr		$122,290.56		$10,190.88
12/1/16 to 11/30/17	$20.83 per RSF/yr		$125,979.84		$10,498.32

* No change from current Lease

5. Free Rent. Tenant shall not be required to pay the Base Rent for the months of October, November and December, 2012.

6. Base Year. “Base Year” for the Premises shall be 2013 beginning December 1, 2012. For purposes of determining the allocation of Additional Rent, as such term is defined in the Lease, the annual increase due to operating expenses that are under the control of the Landlord shall be limited to four percent (4%) of the controllable operating expenses for the immediate prior calendar year. In addition, operating expenses related to the Building shall be allocated to Tenant based upon no less than a ninety-five percent (95%) occupancy of the Building.

7. Security Deposit. No security deposit has or will be paid.

8. Tenant Improvement Allowance. Tenant shall have a Tenant Improvement Allowance equal to $10.00 per RSF ($60,480.00). Tenant shall give Landlord notice of all proposed tenant improvements and such improvements shall be constructed in accordance with the Lease. Landlord shall be paid a construction management fee of five percent (5%) on any such construction. At Tenant’s election, any Tenant Improvement Allowance which remains after the completion of such tenant improvements may be applied towards the payment of furniture, fixtures and equipment costs or Base Rent or Additional Rent by Tenant giving Landlord thirty (30) days written notice of such election.

9. Expansion Option. Subject to the existing expansion rights previously granted by Landlord to another tenant of the Building, Travelers/St. Paul, Tenant shall have a right of first refusal to lease any space in the Building located on the fifth floor of the Building that becomes available during the Term of the Lease. This right of first refusal must be exercised within ten (10) business days of Landlord’s written notice that such space has become available. If Tenant timely elects to lease such space it shall give Landlord written notice of this fact within said time period. The rental terms of the new space will be the same terms as for the Premises, including prorated adjustment for improvements and concessions. If Tenant does not notify

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Landlord within such ten (10) business day period, Landlord shall be free to lease the space to any other persons. For this purpose, space shall not be space which “becomes available” if it will be leased to the same tenant then occupying such space.

10. Option to Renew. Provided Tenant is not then in default of any terms and conditions of the Lease, Tenant shall have two (2) options to extend the Term as to part (at least 75% of the Premises) or all of the Premises for an additional five (5) years each. The Base Rent for the first year of each of the extended Terms shall be the lesser of: (1) the Base Rent as of the last day preceding the renewal Term or (2) ninety percent (90%) of the then Prevailing Market Rental Rate (“PMRR”). The Base Rent for each subsequent year of each renewal Term shall increase by three percent (3%) on December 1. If less than all of the Premises are to be leased, then that portion of the Premises which is not being leased by Tenant must be in such configuration that it can reasonably be leased by the Landlord. “PMRR” means the annual amount of rent that a tenant would pay and a willing landlord would accept in an arm’s length bona fide offer for a lease based upon other lease transactions made in the Building and other comparable office buildings in the Central East Quadrant area of Salt Lake City, Utah, within the previous six (6) months, taking into consideration all relevant terms and conditions of any comparable leasing transaction, including without limitation: (i) location, quality and age of the building; (ii) use and size of the space in question; (iii) location and or floor level in the building; (iv) that there will be no new leasehold improvement allowances provided; (v) there will be no abatement of rental or other charges; (vi) parking; (vii) lease takeovers/assumptions; (viii) relocation allowances; (ix) there will be no refurbishment and repainting allowances; (x) distinction between “gross” and “net” leases, (xi) extent of services provided or to be provided; (xii) base year or dollar amount for escalation purposes (both operating costs and ad valorem taxes); (xiii) credit standing and financial stature of the tenant; (xiv) length of term and (xv) Landlord will not be required to pay additional brokerage fees. Each option needs to be exercised by Tenant giving Landlord written notice of exercise at least six (6) month prior to the Termination Date.

11. Parking. Tenant shall have a right to use up to four and one half vehicles for each 1,000 RSF (27 vehicles). None of the spaces will be reserved.

12. Access. Tenant shall have access to the Premises at all reasonable times. The Building hours are 7:00 a.m. to 6:00 p.m., Monday through Friday, excluding holidays.

13. Signage. Tenant shall continue to have the same general signage as in place as of the date hereof.

14. Brokers. Landlord shall pay its broker three percent (3%) of the Base Rent for five (5) years. Landlord’s broker has agreed to pay Tenant’s broker one-half of such commission. Both Tenant and Landlord acknowledge that Commerce Real Estate Solutions represents both the Tenant and Landlord in this transaction and that both parties agree to such dual representation. It is understood that Paul Skene (Agent) represents the Tenant and that Jon Cowley (Agent) represents the Landlord in the proposed Lease and that neither Agent shall disclose any confidential information to the other and that both Agents shall act as fiduciaries to the specific party they represent.

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15. Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

LANDLORD:
B-Line Holdings, L.C., a Utah limited liability company
By:
Its:	Manager

TENANT:
Medallion Bank, a Utah Industrial Bank
By:
Its:	President

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EX-10.24

Exhibit 10.24

FIFTH AMENDMENT OF

LEASE AGREEMENT

This Fifth Amendment of Lease Agreement (this “Amendment”) is made as of the 26^th day of November, 2012, by and between B-LINE Holdings, L.C., a Utah limited liability company (the “Landlord”), and Medallion Bank, a Utah Industrial Bank (the “Tenant”).

WHEREAS, by an Agreement of Lease dated July 3, 2002 and as amended with four amendments (collectively the “Lease”), Landlord has leased the space known as Suite 510, 515, and 518 (consisting of approximately 6,048 rental square feet (“RSF”)) in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant;

WHEREAS, pursuant to the Lease, the Tenant has a first right to lease additional space on the fifth floor of the Building that becomes available during the term of this Lease;

WHEREAS, Suite 505 in the Building (containing approximately 1,335 RSF (1,178 usable square feet) has come available and Tenant has elected to lease said Suite 505; and

WHEREAS, the parties desire to again amend and extend the Lease pursuant to the following provisions:

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend the Lease as follows. It is the parties’ intent that the Lease remains without amendment through November 30, 2012 and then be amended and extended as hereinafter provided.

1. Premises. The Premises shall be Suites 505,510,515 and 518, consisting of approximately 7,383 rentable square feet (“RSF”) (collectively the “Premises”).

2. Base Rent. The Tenant’s “Base Rent” for the Premises shall be:

Term	Base Rental Rate	Annual Base Rent	Monthly Installment
12/1/12 to 11/30/13	$18.50 per RSF/yr	$136,585.50	$11,382.13
12/1/13 to 11/30/14	$19.06 per RSF/yr	$140,719.98	$11,726.67
12/1/14 to 11/30/15	$19.63 per RSF/yr	$144,928.29	$12,077.36
12/1/15 to 11/30/16	$20.22 per RSF/yr	$149,284.26	$12,440.36
12/1/16 to 11/30/17	$20.83 per RSF/yr	$153,787.89	$12,815.66

3. Free Rent. Tenant shall not be required to pay the Base Rent for the month of December, 2012. In addition, the rent for January and February of 2013 will be reduced by $2,058.13 each (resulting in a $9,324.00 per month Base Rent), thus there is free rent for a full three months for the rent attributable to Suite 505.

4. Tenant Improvement Allowance. Tenant shall have an additional Tenant Improvement Allowance equal to $10.00 per RSF as a result of leasing Suite 505 ($13,350.00). Tenant shall give Landlord notice of all proposed tenant improvements and such improvements

shall be constructed in accordance with the Lease. Landlord shall be paid a construction management fee of five percent (5%) on any such construction. At Tenant’s election, any Tenant Improvement Allowance which remains after the completion of such tenant improvements may be applied towards the payment of furniture, fixtures and equipment costs or Base Rent or Additional Rent by Tenant giving Landlord thirty (30) days written notice of such election.

5. Parking. Tenant shall have a right to use up to four and one half vehicles for each 1,000 RSF (33 vehicles). None of the spaces will be reserved.

6. Brokers. Landlord shall pay its broker as per their agreement and no other brokerage commissions will be paid by Landlord.

7. Ratification. As amended herein, the parties hereby ratify the Lease and acknowledge that the Lease is in full force and effect.

LANDLORD:
B-Line Holdings, L.C., a Utah limited liability company
By:
Its:	Manager

TENANT:
Medallion Bank, a Utah Industrial Bank
By:
Its:	President

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EX-10.25

Exhibit 10.25

SIXTH AMENDMENT TO AGREEMENT OF LEASE

Investment Property Group, LLC/Medallion Bank

THIS AMENDMENT (this “Amendment”) is entered into as of the 26 day of January, 2017, between INVESTMENT PROPERTY GROUP, LLC, a Utah limited liability company, as successor-in-interest to B-LINE Holdings, L.C. (“Landlord”), and MEDALLION BANK, a Utah Industrial Bank (“Tenant”), (Landlord and Tenant are referred to in this Amendment collectively as the “Parties” and individually as a “Party.”)

WHEREAS, by an Agreement of Lease dated July 3, 2002, and as amended with five amendments (collectively the “Lease”), Landlord has leased the space known as Suite 505, 510, 515, and 518 (consisting of approximately 7,383 rental square feet (“RSF”) in the building located at 1100 East 6600 South, Salt Lake City, Utah (the “Building”) to Tenant; and

WHEREAS, Suite 525 in the Building containing approximately 99 RSF (93 usable square feet) is available and Tenant has elected to lease said Suite 525 further described and attached hereto in Exhibit A; and

WHEREAS, the parties desire to again amend the Lease pursuant to the following provisions.

NOW, THEREFORE, for and in consideration of the mutual entry into this Amendment, the parties hereto do hereby amend the Lease as follows. It is the parties’ intent that the Lease be amended through the current Lease Termination date of November 30, 2017.

1. Premises. The Premises shall be Suites 505, 510, 515, 518, and now 525, consisting of approximately 7,482 rentable square feet (“RSF”) (collectively the “Premises”).

2. Tenant’s Percentage. The Tenant’s Percentage shall be 11.135% (7,482 / 67,194 total rentable square feet)

3. Base Rent. The Tenant’s “Base Rent” for the Premises shall be (based upon the additional 99 RSF at $23.00 PSF):

	Term	Base Rental Rate		Monthly Installment
Suite 525	03/1/2017 to 11/30/2017		$23.00 per RSF/yr.	$     189.75
Existing Space	03/1/2017 to 11/30/2017		$20.83 per RSF/yr.	$12,815.66
	Totals:			$13,005.41

4. Tenant Improvements. Tenant agrees that Suite 525 will be delivered to Tenant in an “as-is” condition. If Tenant desires to make any modifications to the space, any changes shall be subject to the approval of Landlord.

5. Authorization. Each Party represents and warrants that:

(a) the individual executing this Amendment on behalf of such Party has full power and authority under such Party’s governing documents to execute and deliver this Amendment in the name of, and on behalf of, such Party and to cause such Party to perform its obligations under this Amendment;

(b) such Party is duly organized and in good standing under the laws of the state of its formation; and

(c) such Party has the power and authority under all applicable laws and its governing documents to execute and deliver this Amendment and to perform its obligations under this Amendment.

6. Brokerage Commissions. Except as agreed in writing by Landlord, Landlord represents and warrants that no claim exists for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on any agreement made by Landlord. Landlord shall indemnify, defend and hold harmless Tenant from and against any claim for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on an actual or alleged agreement made by Landlord. Tenant represents and warrants that no claim exists for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on any agreement made by Tenant. Tenant shall indemnify, defend and hold harmless Landlord from and against any claim for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on an actual or alleged agreement made by Tenant.

7. Entire Agreement. The Lease, as amended by this Amendment, exclusively encompasses the entire agreement of the Parties, and supersedes all previous negotiations, understandings and agreements between the Parties, whether oral or written, including, without limitation, any oral discussions, letters of intent and email correspondence. The Parties acknowledge and represent, by their signatures below, that the Parties have not relied on any representation, understanding, information, discussion, assertion, guarantee, warranty, collateral contract or other assurance, except those expressly set forth in the Lease and this Amendment, made by or on behalf of any other Party or any other person whatsoever, prior to the execution of this Amendment. The Parties waive all rights and remedies, at law or in equity, arising or which may arise as the result of a Party’s reliance on such representation, understanding, information, discussion, assertion, guarantee, warranty, collateral contract or other assurance.

8. General Provisions. In the event of any conflict between the provisions of the Lease and the provisions of this Amendment, the provisions of this Amendment shall control. Except as set forth in this Amendment, the Lease is ratified and affirmed in its entirety. This Amendment shall inure to the benefit of, and be binding on, the Parties and their respective successors and assigns. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws (excluding the choice of laws rules) of the state of Utah. This Amendment may be executed in any number of duplicate originals or counterparts, each of which when so executed shall constitute in the aggregate but one and the same document. Each exhibit referred to in, and attached to, this Amendment is an integral part of this Amendment and is incorporated in this Amendment by this reference.

[Remainder of page intentionally left blank; signatures on following page]

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THE PARTIES have executed this Amendment on the respective dates set forth below, to be effective as of the date first set forth above.

LANDLORD:
INVESTMENT PROPERTY GROUP, LLC, a Utah limited liability company
By
Print or Type Name of Signatory:
	[Illegible]
Its	Manager
Date	01-26-2017

TENANT:
MEDALLION BANK, a Utah Industrial Bank
By
Print or Type Name of Signatory:
	Justin Haley
Its	SUP
Date	1/26/2017

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EXHIBIT A

Suite 525

(See attached)

Exhibit A

EX-10.26

Exhibit 10.26

SEVENTH AMENDMENT TO AGREEMENT OF LEASE

Investment Property Group, LLC/Medallion Bank

THIS AMENDMENT (this “Amendment”) is entered into as of the 10th day of May, 2017, between INVESTMENT PROPERTY GROUP, LLC, a Utah limited liability company (“Landlord”), as successor-in-interest to B-line Holdings, L.C., a Utah Limited Liability company, and MEDALLION BANK, a Utah industrial bank (“Tenant”). (Landlord and Tenant are referred to in this Amendment collectively as the “Parties” and individually as a “Party.”)

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1.    Definition—Lease. As used in this Amendment, “Lease” means the Agreement of Lease, dated July 3, 2002, as previously amended by (i) the Amendment of Lease Agreement, dated October 29, 2004, (ii) the Second Amendment of Lease Agreement, dated January 9, 2007, (iii) the Third Amendment of Lease Agreement, dated October 31, 2007, (iv) a second Third Amendment of Lease Agreement, dated November 15, 2011, (v) the Fourth Amendment of Lease Agreement, dated November 21, 2011, (vi) the Fifth Amendment of Lease Agreement, dated November 26, 2012, and (vii) the Sixth Amendment to Agreement of Lease, dated January 26, 2017, all entered into between Landlord or its predecessor-in-interest, B-Line Holdings, L.C., a Utah limited liability company, as landlord, and Tenant, as tenant, and, where applicable, as amended by this Amendment. Any term used in this Amendment that is capitalized but not defined shall have the same meaning as set forth in the Lease (defined below in this Paragraph 1). as amended by this Amendment:

2.    Purpose. The Parties desire to expand the Premises currently covered by the Lease as follows, and make certain other amendments to the Lease, in accordance with the terms and conditions set forth in this Amendment:

(a)    As of July 1, 2017 (or as soon thereafter as such additional space is made available by the current tenant to Landlord), approximately 1,624 usable square feet and approximately 1,873 rentable square feet located on the fifth floor of the Building shall be added to the Premises, and as soon as reasonably practicable thereafter, Tenant shall relinquish to Landlord approximately 99 rentable square feet (the so-called “mother’s room”) of the Premises, with the result that Suite 510 on the fifth floor of the Building will have approximately 8,125 usable square feet and approximately 9,372 rentable square feet.

(b)    In addition, as of August 1, 2018, Suite 305 on the third floor of the Building, consisting of approximately 1,148 usable square feet and approximately 1,321 rentable square feet, shall be added to the Premises.

3.    Defined Terms. Effective as of, and for the period on and after, July 1, 2017, the following definitions in Section 1 of the Lease are revised to read as follows; provided, however, that if the additional 1,873 rentable square feet is added to the Premises after July 1, 2017, then the periods set forth below shall begin on such other date that such addition occurs (as memorialized in a certificate entered into between the Parties); in addition, Tenant shall continue to pay Base Rent on the so-called “mother’s room” of the Premises until relinquished by Tenant to Landlord at the rate of $20.11 per rentable square foot (or $165.91 per month, prorated on a per diem basis for any partial calendar month):

Base Rent means the following amounts per calendar month for the periods indicated:

Periods	Base Rent			Annual Cost Per Rentable Square Foot
July 1, 2017 through November 30, 2017, inclusive	$	16,313.07 per month				1
December 1, 2017 through July 31, 2018, inclusive	$	18,744.00 per month		$	24.00
August 1, 2018 through November 30, 2018, inclusive	$	21,386.00 per month	2	$	24.00
December 1, 2018 through November 30, 2019, inclusive	$	22,027.58 per month		$	24.72
December 1, 2019 through November 30, 2020, inclusive	$	22,686.98 per month		$	25.46
December 1, 2020 through November 30, 2021, inclusive	$	23,373.12 per month		$	26.23
December 1, 2021 through November 30, 2022, inclusive	$	24,068.16 per month		$	27.01

Notice Address for Landlord for purposes of Section 17 of this Lease means the following:

Investment Property Group, LLC

c/o Mountain High Real Estate Advisors, Inc.

1100 East 6600 South, Suite 100

Murray, Utah 84107

Attention: Rob Galanis

with a required copy to:

the holder of any mortgage or deed of trust covering the Property whose name and address have been furnished to Tenant

¹  Base Rent for the period from July 1, 2017 through July 31, 2018, inclusive, is calculated based on 9,372 rentable square feet. However, for the period from July 1, 2017 through November 30, 2017, inclusive, the annual cost per rentable square foot is $20.11 for 7,499 rentable square feet and $24.00 for 1,873 rentable square feet, and calculated as follows: ($20.11 per rentable square foot on an annual basis x 7,499 rentable square feet ÷ 12 months = $12,567.07) + ($24.00 per rentable square foot on an annual basis x 1,873 rentable square feet ÷ 12 months = $3,746.00) = $16,313.07

²  This and subsequent Base Rent amounts are calculated based on 10,693 rentable square feet.

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Parking for purposes of Section 4.3 of this Lease means the right to use a number of non-reserved automobile parking spaces in the Building’s parking lot equal to 4.5 parking stalls per 1,000 rentable square feet of the Premises, which would, for example, be forty-two (42) parking stalls with 9,372 rentable square feet of the Premises, and forty-eight (48) parking stalls with 10,693 rentable square feet of the Premises.

Premises means (i) as of July 1, 2017 (or as soon thereafter as the additional 1,873 rentable square feet located on the fifth floor of the Building is delivered by Landlord to Tenant), the space containing approximately 9,372 rentable square feet and approximately 8,125 usable square feet, to be known as Suite 510 and located on the fifth floor of the Building, together with, (ii) as of August 1, 2018, the space containing approximately 10,693 rentable square feet and approximately 9,273 usable square feet, known as Suite 305 and located on the third floor of the Building.

Tenant’s Percentage means the percentage determined by dividing the rentable square feet of the Premises at the time concerned by the rentable square feet of the Building, multiplying the quotient by 100 and rounding to the third (3^rd) decimal place.

Term means a period expiring on the Termination Date, as such period may be extended or sooner terminated in accordance with this Lease.

Termination Date means November 30, 2022, as such date may be extended or sooner terminated in accordance with this Lease.

4.    Options to Extend. All existing options to renew the Lease or extend the Term set forth in the Lease are deleted, and are replaced with the option to extend the Term set forth in the balance of this Paragraph 4.

(a)    Tenant shall have the option to extend the Term for one (1) additional period of five (5) years, provided that Tenant gives Landlord written notice of the exercise of such option on or before the date that is twelve (12) months prior to the expiration of the then-existing period constituting the Term, and that at the time such notice is given and on the commencement of the extension term concerned, (i) this Lease is in full force and effect, (ii) Tenant is not in default under the Lease beyond the expiration of any applicable notice and cure period given to Tenant in the Lease, (iii) Tenant has not assigned this Lease or subleased all or any portion of the Premises under any then-existing sublease, and (iv) such extension is not being exercised in connection with or for the purpose of facilitating any such assignment or sublease. Such extension term shall commence at 12:01 a.m. on the first day following the expiration of the immediately preceding period constituting the Term.

(b)    During such extension term, all provisions of the Lease shall apply, except for any provision relating to the improvement of the Premises by Landlord or at Landlord’s expense, and except that the amount of Base Rent for such extension term shall be negotiated and determined by mutual agreement between the Parties, and shall be the then-market rent for the Premises. The term “then-market rent” as used in the immediately preceding sentence shall mean the annual amount, projected during such extension term, that a willing, comparable, non-equity tenant (excluding assignment and sublease transactions) would pay, and a willing, comparable landlord of a comparable building located in the same market as the Building would accept, at arm’s length (without compulsion to agree) for lease extensions or renewals (including what Landlord is accepting for current lease extension or renewal transactions for the Building), for general office space of similar rentable square footage,

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location and quality, but excluding consideration of tenant improvement allowances and lease concessions, if any, then being given by the landlords of such similar projects unless such tenant improvement allowances and lease concessions are then being given by such persons in connection with lease extensions or renewals.

5.    Expansion Option. All existing options to expand the Premises set forth in the Lease, whether a right of first refusal, right of first offer or other right to expand, are deleted, and are replaced with the option to expand the Premises set forth in the balance of this Paragraph 5.

(a)    During the Term, provided that (i) this Lease is in full force and effect, (ii) Tenant is not in default under the Lease beyond the expiration of any applicable notice and cure period given to Tenant in the Lease, (iii) Tenant has not assigned this Lease or subleased all or any portion of the Premises under any then-existing sublease, and (iv) the right of first offer described in this Paragraph 5 is not being exercised in connection with or for the purpose of facilitating any such assignment or sublease, Landlord shall give Tenant notice of any space (the “ROFO Space”) located on the third or the fifth floors of the Building that is available for lease to third parties. (For purposes of this Paragraph, any space covered by a renewal, extension or expansion option existing in any tenant’s lease as of the date of this Amendment, any renewal or extension option given by Landlord to any then-existing tenant for its then-existing space, or any right of first offer or right of first refusal existing as of the date of this Lease, shall not be “available for lease” until after each such option or right has expired.)

(b)    If Tenant gives Landlord notice of Tenant’s interest in leasing the ROFO Space within ten (10) business days after notification by Landlord of the availability of the ROFO Space, the Parties shall negotiate reasonably to enter into an amendment to this Lease covering the ROFO Space, which may include, without limitation, an extension of the Term and an increase in Base Rent payable under this Lease during such extension. If Tenant fails to give Landlord such notice within such ten (10)-business day period, or if the Parties, after using their best efforts, are unable to agree on the amount of the monthly rental and other terms and conditions for the ROFO Space within thirty (30) days after receipt by Landlord of Tenant’s notice of interest in leasing the ROFO Space (as evidenced by the execution and delivery of an amendment to this Lease), such right of first offer shall terminate and be of no further force or effect with respect to such ROFO Space, but shall continue to apply to other subsequently available ROFO Space.

6.    Improvement of Additional Space. As soon as reasonably practicable following the addition of the space described in Paragraph 2(a) of this Amendment, Landlord shall improve the Premises as so expanded (approximately 8,125 usable square feet) in accordance with the attached Exhibit A. Similarly, following the addition of the space described in Paragraph 2(b) of this Amendment, Landlord shall improve such additional space (only) (approximately 1,148 usable square feet) in accordance with the attached Exhibit A, as applicable. The construction reasonably required to complete such improvements shall not lessen or otherwise affect Tenant’s existing rent obligations under the Lease.

7.    Description of Premises. Effective as of the initial expansion, the Premises shall be described as set forth on the attached Exhibit B.1. Effective as of the subsequent expansion, the Premises shall be described as set forth on the attached Exhibit B.2.

8.    Enforceability. Each Party represents and warrants that:

(a)    such Party was duly formed and is validly existing and in good standing under the laws of the state of its formation;

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(b)    such Party has the requisite power and authority under all applicable laws and its governing documents to execute, deliver and perform its obligations under this Amendment;

(c)    the individual executing this Amendment on behalf of such Party has full power and authority under such Party’s governing documents to execute and deliver this Amendment in the name of, and on behalf of, such Party and to cause such Party to perform its obligations under this Amendment;

(d)    this Amendment has been duly authorized, executed and delivered by such Party; and

(e)    this Amendment is the legal, valid and binding obligation of such Party, and is enforceable against such Party in accordance with its terms.

9.    Brokerage Commissions. Except as may be set forth in one or more separate agreements between (i) Landlord and Landlord’s broker, or (ii) Landlord or Landlord’s broker and Tenant’s broker:

(a)    Landlord represents and warrants to Tenant that no claim exists for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on any agreement made by Landlord; and

(b)    Tenant represents and warrants to Landlord that no claim exists for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on any agreement made by Tenant.

Landlord shall indemnify, defend and hold harmless Tenant from and against any claim for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on an actual or alleged agreement made by Landlord. Tenant shall indemnify, defend and hold harmless Landlord from and against any claim for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on an actual or alleged agreement made by Tenant.

10.    Entire Agreement. The Lease, as amended by this Amendment, exclusively encompasses the entire agreement of the Parties, and supersedes all previous negotiations, understandings and agreements between the Parties, whether oral or written, including, without limitation, any oral discussions, letters of intent and email correspondence. The Parties acknowledge and represent, by their signatures below, that the Parties have not relied on any representation, understanding, information, discussion, assertion, guarantee, warranty, collateral contract or other assurance, except those expressly set forth in the Lease and this Amendment, made by or on behalf of any other Party or any other person whatsoever, prior to the execution of this Amendment. The Parties waive all rights and remedies, at law or in equity, arising or which may arise as the result of a Party’s reliance on such representation, understanding, information, discussion, assertion, guarantee, warranty, collateral contract or other assurance.

11.    General Provisions. In the event of any conflict between the provisions of the Lease and the provisions of this Amendment, the provisions of this Amendment shall control. Except as set forth in this Amendment, the Lease (which, by definition, includes all previous amendments) is ratified and affirmed in its entirety. This Amendment shall inure to the benefit of, and be binding on, the Parties and their respective successors and assigns. This Amendment shall be governed by, and construed and

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interpreted in accordance with, the laws (excluding the choice of laws rules) of the state of Utah. This Amendment may be executed in any number of duplicate originals or counterparts, each of which when so executed shall constitute in the aggregate but one and the same document. Each exhibit referred to in, and attached to, this Amendment is an integral part of this Amendment and is incorporated in this Amendment by this reference.

[Remainder of page intentionally left blank; signatures on following page]

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THE PARTIES have executed this Amendment on the respective dates set forth below, to be effective as of the date first set forth above.

LANDLORD:
INVESTMENT PROPERTY GROUP, LLC, a Utah limited liability company
By
Print or Type Name of Signatory:
Robert Galanis
Its	MANAGER
Date	05-10-2017

TENANT:
MEDALLION BANK, a Utah industrial bank
By
Print or Type Name of Signatory:
Justin Haley
Its	Senior Vice President
Date	May 10, 2017

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EXHIBIT A

to

SEVENTH AMENDMENT TO AGREEMENT OF LEASE

TENANT IMPROVEMENTS

THIS EXHIBIT is attached to, and is a part of, the foregoing Seventh Amendment to Lease Agreement (the “Amendment”). All words capitalized in this Exhibit shall have the same meaning given in the Amendment. If any conflict exists between the provisions of this Exhibit and the provisions of the Amendment, the provisions of this Exhibit shall control.

1.    Tenant Improvements.

(a)    The final space plan (the “Space Plan”) for the Premises, mutually approved by the Parties, is or will be attached as Appendix 1.

(b)    Landlord shall cause the Tenant Improvements (the “Tenant Improvements”) described on the Space Plan to be completed in accordance with the plans and specifications (including the tenant finishes) (the “Tenant Improvement Plans”) approved by the Parties. The Tenant Improvements shall be made, and the Tenant Improvement Plans shall be prepared, at Tenant’s sole cost and expense, subject to the TI Allowance.

(c)    Landlord shall cause the Tenant Improvement Plans to be prepared. Landlord shall furnish the initial draft of the Tenant Improvement Plans to Tenant for Tenant’s review and approval. Tenant shall within one week after receipt either provide comments to such Tenant Improvement Plans or approve the same. Tenant shall be deemed to have approved such Tenant Improvement Plans if Tenant does not timely provide comments on such Tenant Improvement Plans. If Tenant provides Landlord with comments to the initial draft of the Tenant Improvement Plans, Landlord shall provide revised Tenant Improvement Plans to Tenant incorporating Tenant’s comments within one week after receipt of Tenant’s comments. Tenant shall within one week after receipt then either provide comments to such revised Tenant Improvement Plans or approve such Tenant Improvement Plans. Tenant shall be deemed to have approved such revised Tenant Improvement Plans if Tenant does not timely provide comments on such Tenant Improvement Plans. The process described above shall be repeated, if necessary, until the Tenant Improvement Plans have finally been approved by Tenant.

(d)    All bids and all costs will be provided to Tenant for approval per an “open book” process. The cost of the Tenant Improvements shall be calculated at Landlord’s actual cost, with no additional markup or profit to Landlord. Landlord shall provide Tenant with reasonable input into the bidding process (including bid review) so long as Tenant’s actions do not delay such process or the completion of the Tenant Improvements; provided, however, that Landlord reserves the sole right and discretion, acting reasonably, to make all final decisions regarding selection of contractors, subcontractors and material suppliers, unless (except for all design/build subcontractors, that is, fire/life safety, mechanical, electrical and plumbing subcontractors, which shall not be subject to the following limitation) Tenant, acting reasonably, objects within five (5) business days after the acceptance of any bid of any subcontractor or material supplier to such bid as being an above-market bid (which objection shall be accompanied by a statement of the correct amount of a market bid and reasonable supporting evidence

Exhibit A-1

for such statement, such as, for example, a market bid from another reputable subcontractor or material supplier), in which case Landlord shall either cause such subcontractor or material supplier to reduce its bid to a market bid, or designate to Tenant another subcontractor or material supplier that provides a market bid. Landlord shall negotiate with its architects, contractors and suppliers to ensure that the design and construction of the Tenant Improvements are completed using high quality materials and workmanship, with such materials and workmanship being completed at fair market/industry standard costs.

(e)    Within five (5) business days following the award of all bids for the Tenant Improvements, Landlord shall prepare or caused to be prepared on an open-book basis a construction budget for the Tenant Improvements, which shall reflect the costs set forth in all of such bids and shall be submitted to Tenant for Tenant’s approval. Tenant shall have five (5) business days following receipt of such budget to approve or request clarifications to the same and/or to perform value engineering and make changes to the Tenant Improvement Plans. Tenant shall be deemed to have approved such budget if Tenant does not timely provide comments on such budget. If Tenant provides Landlord with comments to the initial draft of such budget, Landlord shall provide a revised construction budget to Tenant incorporating Tenant’s comments within three (3) business days after receipt of Tenant’s comments. Tenant shall within three (3) business days after receipt then either provide comments to such revised budget or approve such budget. Tenant shall be deemed to have approved such revised budget if Tenant does not timely provide comments on such budget. The process described above shall be repeated, if necessary, until such budget finally has been approved by Tenant. On Tenant’s approval of the budget, Landlord shall submit to Tenant for Tenant’s signature a “Notice To Proceed With Construction” agreement which shall itemize all costs associated with the Tenant Improvements, and include Tenant’s agreement to pay for any such improvement costs in excess of the TI Allowance. Tenant shall execute the Notice to Proceed with Construction within three (3) business days after Tenant’s receipt of the same and prior to construction.

(f)    Landlord shall provide project management services in connection with the construction of the Tenant Improvements and the Change Orders (defined below). Such project management services shall be performed at Tenant’s sole cost and expense, subject to the TI Allowance, for a fee of five percent (5%) of all costs related to the preparation of the Tenant Improvement Plans and the construction of the Tenant Improvements and the Change Orders. Except for the fee described in the immediately preceding sentence, and for the general conditions, overhead and profit of the general contractor, no other administrative or supervisory fee shall be payable by Tenant in connection with the Tenant Improvements or Change Orders. Tenant may, at Tenant’s discretion and sole cost and expense, engage a representative to oversee construction activities on Tenant’s behalf. Said representative shall coordinate its efforts with Landlord’s project manager and/or contractor, shall have full access to all information and documentation with respect to the Tenant Improvements and may be engaged throughout the design and construction process of the Tenant Improvements.

(g)    Beginning with the Premises in their current “as is” condition as of the date of the Amendment, all improvements to the Premises shall be made at Tenant’s sole cost and expense, subject only to the TI Allowance.

2.    Change Orders. If, prior to the Commencement Date and after the Tenant Improvement Plans and the construction budget have finally been approved by Tenant, Tenant requires improvements or changes (individually or collectively, the “Change Orders”) to the Premises in addition to, revision of, or substitution for, the Tenant Improvements, Tenant shall deliver to Landlord for its approval plans and specifications for such Change Orders. Within five (5) business days after such delivery by Tenant,

Exhibit A-2

Landlord shall either approve or disapprove such Change Orders, and if Landlord disapproves such Change Orders, Landlord shall advise Tenant of the revisions required. Tenant shall revise and redeliver the plans and specifications to Landlord within five (5) business days after Landlord’s advice of its disapproval of a proposed Change Order or Tenant shall be deemed to have abandoned its request for such Change Orders. Tenant shall pay the reasonable, out-of-pocket costs for all preparations and revisions of plans and specifications for, and the construction of, all Change Orders, subject to the TI Allowance.

3.    TI Allowance.

(a)    Landlord shall contribute the total amount of $100,000.00 (the “TI Allowance”) toward the costs incurred for the Tenant Improvements and Change Orders, including, without limitation, painting, carpeting, tile, wall covering, light fixtures, plans, permits, insurance and architectural fees (but expressly excluding Tenant’s personal property). The TI Allowance will be allocated $87,620.00 to the initial expansion and the existing space, and $12,380.00 to the subsequent expansion.

(b)    Landlord has no obligation to pay for the cost of any Tenant Improvements or Change Orders in excess of the TI Allowance, and if the cost of the Tenant Improvements and Change Orders exceeds the TI Allowance as allocated, Tenant shall pay such overage to Landlord within ten (10) business days after the receipt of an invoice therefor, accompanied by such detail as may reasonably be requested by Tenant, which invoice may be delivered prior to the commencement of construction.

4.    Parties’ Representatives. Tenant shall designate an individual to act as Tenant’s representative with respect to all approvals, directions and authorizations pursuant to this Exhibit. Landlord shall designate an individual to act as Landlord’s representative with respect to all approvals, directions and authorizations pursuant to this Exhibit.

Exhibit A-3

Appendix 1

Floor Plans

(See attached)

Exhibit A-4

Exhibit A-5

EXHIBIT B.1

to

SEVENTH AMENDMENT TO AGREEMENT OF LEASE

PREMISES (AS OF INITIAL EXPANSION)

(See attached)

Exhibit B.1-1

EXHIBIT B.2

to

SEVENTH AMENDMENT TO AGREEMENT OF LEASE

PREMISES (AS OF SUBSEQUENT EXPANSION)

(See attached)

Exhibit B.2-1

EX-10.27

Exhibit 10.27

EIGHTH AMENDMENT TO AGREEMENT OF LEASE

Investment Property Group, LLC/Medallion Bank

THIS AMENDMENT (this “Amendment”) is entered into as of the 28^th day of March, 2018, between INVESTMENT PROPERTY GROUP, LLC, a Utah limited liability company (“Landlord”) as successor-in-interest to B-line Holdings, L.C., and MEDALLION BANK, a Utah industrial bank (“Tenant”). (Landlord and Tenant are referred to in this Amendment collectively as the “Parties” and individually as a “Party.”)

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1.    Definition—Lease. As used in this Amendment, “Lease” means the Agreement of Lease, dated July 3, 2002, as previously amended by (i) the Amendment of Lease Agreement, dated October 29, 2004, (ii) the Second Amendment of Lease Agreement, dated January 9, 2007, (iii) the Third Amendment of Lease Agreement, dated October 31, 2007, (iv) a second Third Amendment of Lease Agreement, dated November 15, 2011, (v) the Fourth Amendment of Lease Agreement, dated November 21, 2011, (vi) the Fifth Amendment of Lease Agreement, dated November 26, 2012, (vii) the Sixth Amendment to Agreement of Lease, dated January 26, 2017, and (viii) the Seventh Amendment to Agreement of Lease (the “Seventh Amendment”), dated May 10, 2017, all entered into between Landlord or its predecessor-in-interest, B-Line Holdings, L.C., a Utah limited liability company, as landlord, and Tenant, as tenant, and, where applicable, as amended by this Amendment. Any term used in this Amendment that is capitalized but not defined shall have the same meaning as set forth in the Lease.

2.    Purpose.

(a)    On or about August 1, 2018, the following space (the “Additional Space”) shall be added to the Premises: Suite 310 on the third floor of the Building, consisting of approximately 918 rentable square feet; and Suite 320 on the third floor of the Building, consisting of approximately 2,385 rentable square feet, comprising in the aggregate a total of 3,303 rentable square feet. (The date on which the Additional Space is added to the Premises is referred to in this Amendment as the “Expansion Date.”) As of the Expansion Date, the Premises shall consist of a total of approximately 10,996 usable square feet and approximately 12,675 rentable square feet.

(b)    Suite 305 on the third floor of the Building, consisting of approximately 1,148 usable square feet and approximately 1,321 rentable square feet, was to be added to the Premises in accordance with the Seventh Amendment. However, that space now will not be added to the Premises and is no longer covered by the Lease, with the effect that the portion of the TI Allowance for Suite 305 in the amount of $12,380.00, as described in Paragraph 3(a) of Exhibit A attached to the Seventh Amendment, will not be provided by Landlord to Tenant.

3.    Defined Terms. Effective as of, and for the period on and after, the Expansion Date, the following definitions in Section 1 of the Lease are revised to read as follows; provided, however, that if the Additional Space is added to the Premises on a date other than August 1, 2018, then the periods set forth below for the Base Rent schedule shall begin on such other date that such addition occurs (as memorialized in a certificate entered into between the Parties):

Base Rent means the following amounts per calendar month for the periods indicated, based on 12,675 rentable square feet:

Periods	Base Rent		Annual Cost Per Rentable Square Foot
August 1, 2018 through November 30, 2018, inclusive	$	25,350.00 per month	$	24.00
December 1, 2018 through November 30, 2019, inclusive	$	26,110.50 per month	$	24.72
December 1, 2019 through November 30, 2020, inclusive	$	26,892.13 per month	$	25.46
December 1, 2020 through November 30, 2021, inclusive	$	27,705.44 per month	$	26.23
December 1, 2021 through November 30, 2022, inclusive	$	28,529.31 per month	$	27.01
December 1, 2022 through November 30, 2023, inclusive	$	29,384.88 per month	$	27.82

Parking for purposes of Section 4.3 of this Lease means the right to use a number of non-reserved automobile parking stalls in the Building’s parking lot equal to 4.5 parking stalls per 1,000 rentable square feet of the Premises (or fifty-seven (57) parking stalls with 12,675 rentable square feet of the Premises).

Premises means (i) Suite 310 on the third floor, consisting of approximately 918 rentable square feet, (ii) Suite 320 on the third floor, consisting of approximately 2,385 rentable square feet, and (iii) Suite 510 on the fifth floor, consisting of approximately 9,372 rentable square feet (and approximately 8,125 usable square feet), comprising in the aggregate a total of approximately 12,675 rentable square feet (and 10,996 usable square feet).

Termination Date means November 30, 2023, as such date may be extended or sooner terminated in accordance with this Lease.

4.    Additional Space Delivered “As is”. The Additional Space shall be delivered by Landlord and accepted by Tenant in its “as-is” condition, and Landlord shall not be obligated to make any improvements thereto.

5.    Description of Premises. Effective as of the Expansion Date, the Premises shall be described as set forth on the attached Exhibit A.

6.    Enforceability. Each Party represents and warrants that:

(a)    such Party was duly formed and is validly existing and in good standing under the laws of the state of its formation;

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(b)    such Party has the requisite power and authority under all applicable laws and its governing documents to execute, deliver and perform its obligations under this Amendment;

(c)    the individual executing this Amendment on behalf of such Party has full power and authority under such Party’s governing documents to execute and deliver this Amendment in the name of, and on behalf of, such Party and to cause such Party to perform its obligations under this Amendment;

(d)    this Amendment has been duly authorized, executed and delivered by such Party; and

(e)    this Amendment is the legal, valid and binding obligation of such Party, and is enforceable against such Party in accordance with its terms.

7.    Brokerage Commissions. Except as may be set forth in one or more separate agreements between (i) Landlord and Landlord’s broker, or (ii) Landlord or Landlord’s broker and Tenant’s broker:

(a)    Landlord represents and warrants to Tenant that no claim exists for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on any agreement made by Landlord; and

(b)    Tenant represents and warrants to Landlord that no claim exists for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on any agreement made by Tenant.

Landlord shall indemnify, defend and hold harmless Tenant from and against any claim for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on an actual or alleged agreement made by Landlord. Tenant shall indemnify, defend and hold harmless Landlord from and against any claim for a brokerage commission, finder’s fee or similar fee in connection with this Amendment based on an actual or alleged agreement made by Tenant.

8.    Entire Agreement. The Lease, as amended by this Amendment, exclusively encompasses the entire agreement of the Parties, and supersedes all previous negotiations, understandings and agreements between the Parties, whether oral or written, including, without limitation, any oral discussions, letters of intent and email correspondence. The Parties acknowledge and represent, by their signatures below, that the Parties have not relied on any representation, understanding, information, discussion, assertion, guarantee, warranty, collateral contract or other assurance, except those expressly set forth in the Lease and this Amendment, made by or on behalf of any other Party or any other person whatsoever, prior to the execution of this Amendment. The Parties waive all rights and remedies, at law or in equity, arising or which may arise as the result of a Party’s reliance on such representation, understanding, information, discussion, assertion, guarantee, warranty, collateral contract or other assurance.

9.    General Provisions. In the event of any conflict between the provisions of the Lease and the provisions of this Amendment, the provisions of this Amendment shall control. Except as set forth in this Amendment, the Lease (which, by definition, includes all previous amendments) is ratified and affirmed in its entirety. This Amendment shall inure to the benefit of, and be binding on, the Parties and their respective successors and assigns. This Amendment shall be governed by, and construed and interpreted in accordance with, the laws (excluding the choice of laws rules) of the state of Utah. This

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Amendment may be executed in any number of duplicate originals or counterparts, each of which when so executed shall constitute in the aggregate but one and the same document. Each exhibit referred to in, and attached to, this Amendment is an integral part of this Amendment and is incorporated in this Amendment by this reference.

-4-

THE PARTIES have executed this Amendment on the respective dates set forth below, to be effective as of the date first set forth above.

LANDLORD:
INVESTMENT PROPERTY GROUP, LLC, a Utah limited liability company
By
Print or Type Name of Signatory:
Robert Galanis
Its	MANAGER
Date	03.29.2018

TENANT:
MEDALLION BANK, a Utah industrial bank
By
Print or Type Name of Signatory:
Justin Haley
Its	Senior Vice President
Date	March 28, 2018

-5-

EXHIBIT A

to

EIGHTH AMENDMENT TO AGREEMENT OF LEASE

PREMISES

(See attached)

Exhibit A-1

EX-10.28

Exhibit 10.28

July 23, 2018

Medallion Bank

1100 East 6600 South, Suite 510

Salt Lake City, UT 84121

Attention: Justin Haley

Re: 8^th Amendment Lease Commencement

Dear Justin,

Please be advised that the initial rent commencement date indicated in the 8th Amendment, which was August 1, 2018, will now be September 1, 2018 due to uncontrollable delays with the termination of the existing tenants 3rd floor expansion space, suite 310 & 320 (3,303 square feet). The rent schedule listed in the amendment will be revised with the correct start date and continue as indicated below.

Periods	Base Rent		Annual Cost Per Rentable Square Foot
September 1, 2018 through November 30, 2018, inclusive	$	25,350.00 per month	$	24.00
December 1, 2018 through November 30, 2019, inclusive	$	26,110.50 per month	$	24.72
December 1, 2019 through November 30, 2020, inclusive	$	26,892.13 per month	$	25.46
December 1, 2020 through November 30, 2021, inclusive	$	27,705.44 per month	$	26.23
December 1, 2021 through November 30, 2022, inclusive	$	28,529.31 per month	$	27.01
December 1, 2022 through November 30, 2023, inclusive	$	29,384.88 per month	$	27.82

Please keep a copy of this letter for you records and if you have any questions please do not hesitate to let us know.

Very truly yours,

Mountain High Real Estate Advisors, Inc.

Ian L. Galanis,

Vice President

EX-21.1

EXHIBIT 21.1

LIST OF SUBSIDIARIES OF MEDALLION FINANCIAL CORP.

Name	Jurisdiction of Incorporation or Formation
Medallion Funding LLC	New York
Medallion Capital, Inc.	Minnesota
Freshstart Venture Capital Corp.	New York
Medallion Bank	Utah

EX-23.1

Exhibit 23.1

Consent Of Independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (File Nos. 333-226130, 333-211788, 333-186533, and 333-136316) of our reports dated March 13, 2019 on (i) the consolidated financial statements of Medallion Financial Corp. and subsidiaries as of December 31, 2018 and 2017 and for each of the three years in the three-year period ended December 31, 2018 and on the selected financial ratios and other data for each of the four years in the four-year period ended December 31, 2017, and the consolidated schedules of investments in and advances to affiliates as of and for the year ended December 31, 2017; and (ii) the effectiveness of internal control over financial reporting as of December 31, 2018; all of which appear in the Annual Report on Form 10-K of Medallion Financial Corp. for the year ended December 31, 2018.

/s/ Mazars USA LLP

New York, New York

March 13, 2019

EX-31.1

Exhibit 31.1

CERTIFICATIONS

Certification of Alvin Murstein

I, Alvin Murstein, certify that:

1. I have reviewed this annual report on Form 10-K 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 annual 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 annual 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 annual 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 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: March 13, 2019

By: /s/ Alvin Murstein                                        

Alvin Murstein

Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Larry D. Hall

I, Larry D. Hall, certify that:

1. I have reviewed this annual report on Form 10-K 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 annual 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 annual 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 annual 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 quarter 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: March 13, 2019

By: /s/ Larry D. Hall                                    

Larry D. Hall

Senior 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 Annual Report on Form 10-K of Medallion Financial Corp. (the “Company”) for the year ended December 31, 2018 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: March 13, 2019

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 Annual Report on Form 10-K of Medallion Financial Corp. (the “Company”) for the year ended December 31, 2018 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/ Larry D. Hall                                

Senior Vice President and

Chief Financial Officer

Date: March 13, 2019

EX-99.1

Exhibit 99.1

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Medallion Loans
New York								350		53	%		4.23	%	$	1,350	$	10,898	$	168,710	$	167,226	$	151,309
	Sean Cab Corp ##	Term Loan		12/09/11		11/23/18		1		1	%		4.63	%	$	0			$	3,159	$	3,159	$	3,159
	Real Cab Corp ##	Term Loan		07/20/07		12/20/17		1		1	%		2.81	%	$	0			$	2,545	$	2,545	$	2,545
	Real Cab Corp ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%	$	0			$	350	$	350	$	350
	Slo Cab Corp ##	Term Loan		07/20/07		12/20/17		1		1	%		2.81	%	$	0			$	1,527	$	1,527	$	1,527
	Slo Cab Corp ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%	$	0			$	210	$	210	$	210
	Junaid Trans Corp ## & {Annually-Prime plus 1.00%}	Term Loan		04/30/13		04/29/19		1		*			5.00	%	$	0			$	1,379	$	1,379	$	1,379
	Avi Taxi Corporation ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%	$	0			$	1,329	$	1,329	$	1,329
	Hj Taxi Corp ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%	$	0			$	1,329	$	1,329	$	1,329
	Anniversary Taxi Corp ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%	$	0			$	1,329	$	1,329	$	1,329
	Kby Taxi Inc ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%	$	0			$	1,329	$	1,329	$	1,329
	Apple Cab Corp ##	Term Loan		04/11/14		12/10/17		1		*			3.25	%	$	0			$	1,329	$	1,329	$	1,329
	Penegali Taxi LLC ##	Term Loan		12/11/14		12/10/17		1		*			3.75	%	$	0			$	1,294	$	1,294	$	1,294
	Uddin Taxi Corp ## &	Term Loan		11/05/15		11/05/18		1		*			4.75	%	$	0			$	1,284	$	1,284	$	1,284
	Waylon Transit LLC ##	Term Loan		09/27/17		09/27/22		1		*			0.00	%	$	0	$	1,275	$	1,275	$	1,275	$	1,277
	Sonu-Seema Corp ## (interest rate includes deferred interest of 2.50%)	Term Loan		12/07/12		12/20/18		1		*			5.00	%	$	34			$	1,275	$	1,275	$	1,275
	Bunty & Jyoti Inc ## (interest rate includes deferred interest of 2.50%)	Term Loan		03/13/13		12/13/18		1		*			5.00	%	$	35			$	1,259	$	1,259	$	1,259
	Perem Hacking Corp ## & {Annually-Prime plus .25%}	Term Loan		05/01/16		05/01/21		1		*			4.25	%	$	0			$	1,223	$	1,223	$	1,225
	S600 Service Co Inc ## & {Annually-Prime plus .25%}	Term Loan		05/01/16		05/01/21		1		*			4.25	%	$	0			$	1,223	$	1,223	$	1,225
	Ela Papou LLC ##	Term Loan		06/27/14		12/15/17		1		*			4.00	%	$	0			$	1,213	$	1,213	$	1,213
	Earie Hacking LLC ##	Term Loan		12/28/15		12/28/20		1		*			3.60	%	$	0			$	1,173	$	1,173	$	1,174
	Amme Taxi Inc ##	Term Loan		10/21/13		10/21/18		1		*			3.70	%	$	0			$	1,162	$	1,162	$	1,162
	Yosi Transit Inc ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%	$	0			$	1,018	$	1,018	$	1,018
	Yosi Transit Inc ##	Term Loan		07/20/07		12/20/17		1		*			2.81	%	$	0			$	140	$	140	$	140
	Ride Yellow LLC ## (interest rate includes deferred interest of 1.75%)	Term Loan		02/01/13		01/01/19		1		*			5.00	%	$	24			$	1,155	$	1,155	$	1,155
	Cfn Cab Corp ##	Term Loan		02/26/14		10/25/22		1		*			3.75	%	$	0			$	1,151	$	1,151	$	1,151
	Miklos Hacking Corp ##	Term Loan		02/26/14		10/25/22		1		*			3.75	%	$	0			$	1,151	$	1,151	$	1,151
	Flow Taxi Corp ## & {Annually-Prime plus .25%}	Term Loan		06/27/16		07/01/21		1		*			4.50	%	$	0			$	1,109	$	1,109	$	1,111
	Ukraine Service Co ## & {Annually-Prime plus .25%}	Term Loan		06/27/16		07/01/21		1		*			4.50	%	$	0			$	1,109	$	1,109	$	1,111
	Lil Amandachaka Hacking Corp ## & {Annually-Prime plus .25%}	Term Loan		06/27/16		07/01/21		1		*			4.50	%	$	0			$	1,109	$	1,109	$	1,111
	Mickeybus Taxi LLC ##	Term Loan		10/25/17		10/25/22		1		*			0.00	%	$	0	$	1,050	$	1,050	$	1,050	$	1,052
	Tosal Hacking Corp ## & (interest rate includes deferred interest of 1.50%)	Term Loan		04/01/13		11/01/17		1		*			4.00	%	$	17			$	1,048	$	1,048	$	1,048
	Red Army Cab Corp ## & {Annually-Prime plus .25%}	Term Loan		06/27/16		07/01/21		1		*			4.50	%	$	0			$	1,038	$	1,038	$	1,040
	Avilie Service Inc ## {Annually-Prime plus .25%}	Term Loan		02/11/13		03/01/19		1		*			4.00	%	$	0			$	1,032	$	1,032	$	1,032
	New Direction Cab Corp ##	Term Loan		11/18/11		02/18/18		1		*			4.00	%	$	0			$	1,020	$	1,020	$	1,020

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Big Ari Taxi Corp ## (interest rate includes deferred interest of 1.50%) {Annually-Prime}	Term Loan		08/14/13		08/14/19		1		*		5.75	%	$	21			$	997	$	997	$	997
	Bellsky Taxi LLC ## (interest rate includes deferred interest of 1.50%) {Annually-Prime}	Term Loan		08/14/13		08/14/19		1		*		5.75	%	$	21			$	991	$	991	$	991
	Jump Service Co Inc ## {Annually-Prime plus .25%}	Term Loan		02/11/13		03/01/19		1		*		4.00	%	$	0			$	959	$	959	$	959
	Nelsk Taxi Inc ## (interest rate includes deferred interest of 2.25%)	Term Loan		08/20/13		08/15/18		1		*		5.25	%	$	29			$	911	$	911	$	911
	Humidity Hacking Corp ##	Term Loan		03/07/13		10/25/22		1		*		2.00	%	$	0			$	906	$	906	$	906
	Nedrag Trans Corp ##	Term Loan		05/30/13		05/30/18		1		*		3.50	%	$	0			$	854	$	854	$	854
	Typhoon Hacking Corp ##	Term Loan		05/30/13		05/30/18		1		*		3.50	%	$	0			$	854	$	854	$	854
	Hedy Hacking Corp. ##	Term Loan		05/30/13		05/30/18		1		*		3.50	%	$	0			$	854	$	854	$	854
	Lety Cab Corp ##	Term Loan		10/25/17		10/25/22		1		*		2.00	%	$	0	$	841	$	837	$	837	$	839
	Holdem Cab Corp ## {Annually-Prime plus 1.00%}	Term Loan		04/10/13		04/10/19		1		*		5.00	%	$	0			$	797	$	797	$	797
	Go Boy Cab Corp ## {Annually-Prime plus 1.00%}	Term Loan		04/10/13		04/10/19		1		*		5.00	%	$	0			$	797	$	797	$	797
	Copper One Cab Corp ##	Term Loan		02/17/12		12/15/17		1		*		4.00	%	$	0			$	751	$	751	$	751
	Asterik Cab Co Inc ##	Term Loan		02/17/12		12/15/17		1		*		4.00	%	$	0			$	745	$	745	$	745
	Agape-Mou Cab Corp ##	Term Loan		02/17/12		12/15/17		1		*		4.00	%	$	0			$	745	$	745	$	745
	Gurpreet Singh & Manpreet Sing ## (interest rate includes deferred interest of 2.75%)	Term Loan		06/25/13		06/25/18		1		*		5.25	%	$	32			$	741	$	741	$	741
	Zus Trading Inc ## & (interest rate includes deferred interest of 2.50%)	Term Loan		08/09/13		07/27/18		1		*		5.00	%	$	27			$	732	$	732	$	732
	Zahav Taxi LLC ## (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	15			$	729	$	729	$	729
	Hot Wheels Taxi LLC ## (interest rate includes deferred interest of 1.75%)	Term Loan		03/01/13		01/01/19		1		*		5.00	%	$	15			$	715	$	715	$	715
	Willie Transit LLC ##	Term Loan		10/25/17		10/25/22		1		*		0.00	%	$	0	$	700	$	700	$	700	$	702
	Alltaxitwo Cab Corp ## {Annually-Prime}	Term Loan		12/21/16		12/21/26		1		*		4.25	%	$	0			$	694	$	694	$	696
	Orys Trans Corp ## {Annually-Prime}	Term Loan		12/21/16		12/21/26		1		*		4.25	%	$	0			$	694	$	694	$	696
	Mandeep Multani & Ravinder Sin ## & (interest rate includes deferred interest of 3.00%)	Term Loan		03/19/14		12/23/17		1		*		5.00	%	$	22			$	692	$	692	$	692
	Rakesh Aggarwal & Jasvir Singh ##	Term Loan		05/07/14		11/07/19		1		*		4.50	%	$	0			$	685	$	685	$	685
	Carlos Govea ## (interest rate includes deferred interest of 1.50%)	Term Loan		06/05/14		06/05/19		1		*		5.50	%	$	6			$	675	$	675	$	675
	Joseph R Jean ## &	Term Loan		04/15/13		04/25/18		1		*		4.25	%	$	0			$	674	$	674	$	674
	Ilker Altaygil ## & (interest rate includes deferred interest of 2.75%)	Term Loan		07/18/13		06/17/18		1		*		5.25	%	$	30			$	671	$	671	$	671
	Ming Trans Corp ##	Term Loan		11/19/12		12/10/17		1		*		4.50	%	$	0			$	662	$	662	$	662
	New Express Cab Corp ##	Term Loan		03/31/15		03/30/19		1		*		4.50	%	$	0			$	660	$	660	$	660
	Iddy Biddy Cab Corp ##	Term Loan		10/09/15		10/25/22		1		*		2.00	%	$	0			$	646	$	646	$	647
	Aminder Pal Singh ##	Term Loan		11/21/13		01/21/18		1		*		4.50	%	$	0			$	647	$	647	$	647
	Jbob Hacking Corp ##	Term Loan		10/09/15		10/09/18		1		*		4.25	%	$	0			$	644	$	644	$	645
	Malcolm Hacking Corp ##	Term Loan		08/05/15		08/05/18		1		*		4.25	%	$	0			$	643	$	643	$	643
	Oyaz Hacking Corp ##	Term Loan		08/05/15		08/05/18		1		*		4.25	%	$	0			$	643	$	643	$	643
	Avtar Singh ##	Term Loan		08/29/14		02/29/20		1		*		5.50	%	$	0			$	636	$	636	$	636
	Christian Cab Corp &	Term Loan		11/27/12		11/27/18		1		*		3.75	%	$	0			$	653	$	632	$	635
	Concourse Cab Corp ## & (interest rate includes deferred interest of 2.50%)	Term Loan		11/14/13		11/14/17		1		*		5.00	%	$	35			$	682	$	630	$	631

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)	Principal Outstanding		Cost (4)		Fair Value
	Hamilton Transit LLC ## &	Term Loan		03/26/14		08/27/18		1		*		3.00	%	$	0		$	1,335	$	1,272	$	631
	Global Agami Cab LLC ## (interest rate includes deferred interest of 1.00%) {Annually-Prime minus 1.75%}	Term Loan		02/27/13		05/01/19		1		*		4.25	%	$	6		$	912	$	912	$	630
	Universal Agami Transit Inc ## (interest rate includes deferred interest of 1.00%) {Annually-Prime minus 1.75%}	Term Loan		02/27/13		05/01/19		1		*		4.25	%	$	6		$	912	$	912	$	630
	Planet Agami Cab LLC ## (interest rate includes deferred interest of 1.00%) {Annually-Prime minus 1.75%}	Term Loan		02/27/13		05/01/19		1		*		4.25	%	$	6		$	912	$	912	$	630
	G Michael Cab Corp ## & (interest rate includes deferred interest of 2.40%)	Term Loan		09/14/15		09/14/17		1		*		4.90	%	$	29		$	897	$	897	$	630
	Ash Trans Corp ## & (interest rate includes deferred interest of 2.40%)	Term Loan		09/14/15		09/14/17		1		*		4.90	%	$	27		$	792	$	792	$	630
	Brigitte Cab Corp ## & (interest rate includes deferred interest of 2.40%)	Term Loan		09/14/15		09/14/17		1		*		4.90	%	$	27		$	831	$	831	$	630
	Samantha’S Cab Corp ## & (interest rate includes deferred interest of 2.40%)	Term Loan		09/14/15		09/14/17		1		*		4.90	%	$	25		$	757	$	757	$	630
	Ganz Express Cab Cor ## & (interest rate includes deferred interest of 2.40%)	Term Loan		09/14/15		09/14/17		1		*		4.90	%	$	25		$	777	$	777	$	630
	Btr Taxi Inc ## (interest rate includes deferred interest of 3.25%)	Term Loan		06/16/14		12/16/18		1		*		5.75	%	$	15		$	821	$	821	$	630
	Benson Hacking Corp ## &	Term Loan		05/28/13		05/28/16		1		*		3.35	%	$	0		$	648	$	630	$	630
	Devin Taxi Corp ## &	Term Loan		05/28/13		05/28/16		1		*		3.35	%	$	0		$	648	$	630	$	630
	Rs Hacking Corp ## &	Term Loan		05/28/13		08/28/16		1		*		3.35	%	$	0		$	630	$	630	$	630
	D & G Taxi Inc ## &	Term Loan		05/28/13		08/28/16		1		*		3.35	%	$	0		$	655	$	630	$	630
	Ocean Hacking Corp ## &	Term Loan		12/20/13		12/20/16		1		*		3.50	%	$	0		$	630	$	630	$	630
	Jacal Hacking Corp ## &	Term Loan		12/20/13		12/20/16		1		*		3.50	%	$	0		$	630	$	630	$	630
	Gaultier Hacking Corp ## &	Term Loan		08/27/12		09/14/17		1		*		4.50	%	$	0		$	956	$	956	$	630
	Silke Hacking Corp ## &	Term Loan		03/26/14		08/27/18		1		*		3.00	%	$	0		$	1,337	$	1,274	$	630
	Kaderee M & G Corp ## &	Term Loan		03/26/14		08/27/18		1		*		3.00	%	$	0		$	1,330	$	1,269	$	630
	Daytona Hacking Corp ## &	Term Loan		03/26/14		08/27/18		1		*		3.00	%	$	0		$	1,330	$	1,269	$	630
	Parvinder Singh ## {Annually-Prime plus 1.00%}	Term Loan		08/13/13		08/13/21		1		*		5.25	%	$	0		$	621	$	621	$	621
	Bruce Schneider ## {Annually-Prime plus 1.00%}	Term Loan		05/10/13		05/10/19		1		*		5.00	%	$	0		$	618	$	618	$	618
	Tripta Nfn & Jagdeep Kumar Cab &	Term Loan		11/12/14		11/12/17		1		*		4.00	%	$	0		$	616	$	618	$	618
	Shanu Miah ## (interest rate includes deferred interest of 2.75%)	Term Loan		06/20/13		06/20/18		1		*		5.25	%	$	20		$	617	$	617	$	617
	Kerolus Waheib Makhail	Term Loan		12/27/12		12/08/18		1		*		4.13	%	$	0		$	613	$	615	$	615
	Munir Ahmed Sahi ##	Term Loan		08/13/15		08/13/18		1		*		4.00	%	$	0		$	607	$	607	$	607
	Jordan O Ohene ## &	Term Loan		05/24/13		05/02/18		1		*		4.75	%	$	0		$	602	$	602	$	602
	Jaswinder Singh/Note A ## (interest rate includes deferred interest of 2.00%)	Term Loan		04/27/16		04/27/18		1		*		4.50	%	$	20		$	582	$	582	$	582
	Charanjeet Kaur & Manjit Singh ## (interest rate includes deferred interest of 2.50%)	Term Loan		10/28/13		10/28/18		1		*		5.00	%	$	18		$	580	$	580	$	580
	Lesly Jeanjoseph ## & (interest rate includes deferred interest of 2.00%)	Term Loan		05/08/13		05/16/18		1		*		5.00	%	$	19		$	579	$	579	$	579
	Aujla Cab Corp ## (interest rate includes deferred interest of 2.50%)	Term Loan		04/23/14		03/20/18		1		*		5.00	%	$	11		$	570	$	570	$	570
	Jasvir S Dhaliwal ##	Term Loan		07/01/13		04/26/18		1		*		4.25	%	$	0		$	564	$	564	$	564
	Marian Cab Corp ##	Term Loan		06/19/12		06/19/19		1		*		4.50	%	$	0		$	564	$	564	$	564
	Mohammed Hossen & Abrar Hanif ##	Term Loan		03/11/13		03/11/18		1		*		4.50	%	$	0		$	563	$	563	$	563
	Albro Hacking, Corp. ##	Term Loan		07/10/14		03/07/18		1		*		3.63	%	$	0		$	557	$	557	$	557
	Bliss Cab Corp ##	Term Loan		10/21/10		10/05/18		1		*		4.25	%	$	0		$	555	$	555	$	555
	Sushil Maggoo ##	Term Loan		12/09/15		12/09/18		1		*		3.90	%	$	0		$	548	$	548	$	549

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)	Principal Outstanding		Cost (4)		Fair Value
	Oradeanul Taxi Corp ##	Term Loan		01/30/13		02/01/18		1		*		5.00	%	$	0		$	547	$	547	$	547
	Sphinx Rc LLC &	Term Loan		08/25/16		08/25/19		1		*		3.50	%	$	0		$	545	$	545	$	546
	Mci Taxi Inc ## &	Term Loan		10/29/15		10/29/18		1		*		4.75	%	$	0		$	544	$	544	$	545
	K.R. Express Cab Corp ## &	Term Loan		10/29/15		10/29/18		1		*		4.75	%	$	0		$	544	$	544	$	545
	Sukhdev Singh & Harpreet Singh ##	Term Loan		07/13/16		07/13/19		1		*		3.75	%	$	0		$	539	$	539	$	540
	Sag Taxi LLC ## &	Term Loan		03/28/14		08/27/18		1		*		3.00	%	$	0		$	1,559	$	1,472	$	537
	Ikaria Taxi LLC ## &	Term Loan		03/28/14		08/27/18		1		*		3.00	%	$	0		$	1,563	$	1,481	$	537
	Pontios Taxi LLC ## &	Term Loan		03/28/14		08/27/18		1		*		3.00	%	$	0		$	1,564	$	1,484	$	537
	Esg Hacking Corp ## &	Term Loan		03/12/14		03/12/17		1		*		3.50	%	$	0		$	542	$	536	$	536
	Mukhtiar Singh ##	Term Loan		08/29/14		02/29/20		1		*		5.50	%	$	0		$	535	$	535	$	535
	Humberto Ontaneda ## (interest rate includes deferred interest of 2.50%)	Term Loan		10/17/13		09/23/18		1		*		5.00	%	$	17		$	534	$	534	$	534
	Yves Bazile ##	Term Loan		09/16/15		03/15/18		1		*		4.75	%	$	0		$	531	$	531	$	531
	Jean J Monteau ##	Term Loan		12/06/12		06/07/18		1		*		4.50	%	$	0		$	522	$	522	$	522
	Dani Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	9		$	521	$	521	$	521
	Newton Sodhi ## {Annually-Prime plus 1.00%}	Term Loan		05/06/13		05/06/19		1		*		5.00	%	$	0		$	520	$	520	$	520
	Magloire David ## (interest rate includes deferred interest of 2.50%)	Term Loan		07/24/15		08/12/18		1		*		5.00	%	$	19		$	520	$	520	$	520
	Emad S Tadros ##	Term Loan		05/18/16		05/18/18		1		*		3.25	%	$	0		$	518	$	518	$	518
	Rafi Mohammad ##	Term Loan		02/27/13		02/03/18		1		*		4.50	%	$	0		$	518	$	518	$	518
	Nycyellow LLC ## &	Term Loan		12/21/16		12/21/19		1		*		3.50	%	$	0		$	504	$	504	$	506
	Sandeep Transport LLC ##	Term Loan		06/23/16		06/23/19		1		*		3.75	%	$	0		$	505	$	505	$	506
	Amarjit Sangera ##	Term Loan		11/18/15		05/18/18		1		*		4.50	%	$	0		$	504	$	504	$	504
	Fernande Paul Cab Corp ## (interest rate includes deferred interest of 1.50%) {Annually-Prime}	Term Loan		01/24/13		05/24/19		1		*		5.50	%	$	13		$	503	$	503	$	503
	Travis R Bazile & Jean Exinvil ##	Term Loan		10/21/15		10/21/18		1		*		4.90	%	$	0		$	500	$	500	$	501
	Luis E Perez ##	Term Loan		03/19/14		03/19/19		1		*		4.50	%	$	0		$	500	$	500	$	500
	Albert A Agyemang ## & (interest rate includes deferred interest of 2.25%)	Term Loan		07/09/13		07/09/18		1		*		5.25	%	$	16		$	484	$	484	$	484
	Nana K Adom ##	Term Loan		10/05/15		04/05/18		1		*		4.50	%	$	0		$	481	$	481	$	481
	Jaswinder K Sharma ## &	Term Loan		10/08/15		10/08/17		1		*		4.50	%	$	0		$	477	$	477	$	477
	Momar Diagne ## (interest rate includes deferred interest of 1.00%)	Term Loan		05/12/14		05/12/19		1		*		5.50	%	$	3		$	463	$	463	$	463
	Adil Lone ##	Term Loan		09/10/15		09/10/19		1		*		5.50	%	$	0		$	455	$	455	$	455
	Harold Torres ##	Term Loan		02/25/16		02/25/18		1		*		4.00	%	$	0		$	451	$	451	$	451
	Jasvinder Chhoker + Dam Singh	Term Loan		11/10/11		05/30/18		1		*		4.50	%	$	0		$	448	$	450	$	450
	I&I Cab Corp ##	Term Loan		03/19/13		02/09/19		1		*		3.75	%	$	0		$	449	$	449	$	449
	M Irshad Chaudhry & Mhd Ramzan ## (interest rate includes deferred interest of 1.25%)	Term Loan		03/21/11		03/21/18		1		*		5.00	%	$	10		$	441	$	441	$	441
	Joseph Jean ##	Term Loan		03/14/12		02/10/18		1		*		4.50	%	$	0		$	438	$	438	$	438
	Shubal C Ghose ##	Term Loan		03/20/15		03/20/19		1		*		4.50	%	$	0		$	435	$	435	$	435
	W.B.L.S Taxi Inc ## (interest rate includes deferred interest of 1.75%)	Term Loan		08/09/12		01/01/19		1		*		5.00	%	$	9		$	431	$	431	$	431
	Mohammad Azhar ##	Term Loan		02/24/14		02/24/18		1		*		4.50	%	$	0		$	423	$	423	$	423
	Verity Taxi Inc ##	Term Loan		02/08/13		02/08/18		1		*		3.60	%	$	0		$	400	$	400	$	400
	Mokbul Choudhury ##	Term Loan		08/25/14		08/25/19		1		*		5.50	%	$	0		$	399	$	399	$	399
	Dady Hamel ##	Term Loan		12/26/13		12/26/18		1		*		4.50	%	$	0		$	393	$	393	$	393
	Gustavo E Cabrejos ##	Term Loan		10/07/15		04/07/18		1		*		4.50	%	$	0		$	391	$	391	$	391

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Santokh Bangay ##	Term Loan		12/10/12		05/23/18		1		*		4.50	%	$	0			$	388	$	388	$	388
	Carlot Dalce ## &	Term Loan		07/09/13		07/09/18		1		*		4.75	%	$	0			$	378	$	378	$	378
	Jacob Kuruvilla ##	Term Loan		11/11/09		12/05/17		1		*		3.75	%	$	0			$	378	$	378	$	378
	L&A Tarafdar Taxi Inc & {Annually-Prime plus 1.00%}	Term Loan		05/24/16		05/24/19		1		*		5.00	%	$	0			$	368	$	370	$	371
	Melimajua Cab Corp ## &	Term Loan		10/14/14		10/14/19		1		*		3.90	%	$	0			$	367	$	367	$	367
	Daca Taxi Inc ##	Term Loan		06/07/17		06/07/19		1		*		5.50	%	$	0	$	370	$	364	$	364	$	366
	Pierre Jeune ## &	Term Loan		12/14/12		06/09/18		1		*		4.50	%	$	0			$	365	$	365	$	365
	Pierre Cadet ##	Term Loan		03/19/13		03/19/18		1		*		4.50	%	$	0			$	359	$	359	$	359
	Bucur Express Cab Corp ##	Term Loan		06/07/17		06/07/19		1		*		5.50	%	$	0	$	356	$	350	$	350	$	352
	Yberto Santana ##	Term Loan		02/27/14		02/22/19		1		*		4.50	%	$	0			$	350	$	350	$	350
	Shah M Rahman ##	Term Loan		11/25/13		05/25/20		1		*		5.50	%	$	0			$	346	$	346	$	346
	Anthony Okyere Duah ##	Term Loan		07/14/17		01/14/20		1		*		5.50	%	$	0	$	346	$	342	$	342	$	344
	Eduard Neyman	Term Loan		05/24/13		05/24/20		1		*		4.00	%	$	0			$	340	$	342	$	343
	Chuhar Singh ##	Term Loan		06/06/13		06/15/18		1		*		4.25	%	$	0			$	339	$	339	$	339
	Double Cab Corp ##	Term Loan		09/15/17		09/15/19		1		*		5.50	%	$	0	$	331	$	329	$	329	$	331
	Ghotra & Ghotra LLC & (interest rate includes deferred interest of 2.50%)	Term Loan		12/19/13		12/19/17		1		*		5.00	%	$	21			$	773	$	740	$	318
	Gbcab LLC ## &	Term Loan		08/19/15		08/19/18		1		*		3.75	%	$	0			$	349	$	315	$	318
	Erwich Chery &	Term Loan		09/29/14		08/01/19		1		*		4.25	%	$	0			$	540	$	514	$	318
	Dominique Ismael ## & (interest rate includes deferred interest of 2.00%)	Term Loan		03/10/14		03/10/18		1		*		5.00	%	$	9			$	529	$	497	$	317
	Rose And Jean Service LLC ## &	Term Loan		06/15/16		06/15/19		1		*		4.00	%	$	0			$	328	$	315	$	317
	Amr Aly Shafshak/Note A &	Term Loan		10/24/17		04/24/19		1		*		5.50	%	$	0	$	400	$	400	$	400	$	317
	Joseph Paul Desir ## & (interest rate includes deferred interest of 2.50%)	Term Loan		07/28/14		08/30/19		1		*		5.00	%	$	22			$	340	$	315	$	316
	Gerardo Barrera ## & (interest rate includes deferred interest of 2.50%)	Term Loan		08/08/14		03/15/19		1		*		5.00	%	$	13			$	343	$	315	$	316
	Binh Pham ## & (interest rate includes deferred interest of 2.75%)	Term Loan		04/23/14		05/26/18		1		*		5.50	%	$	2			$	721	$	701	$	316
	Samiullah Zaman ## &	Term Loan		04/07/14		04/07/17		1		*		4.00	%	$	0			$	320	$	315	$	316
	Anwar Khalifa ## &	Term Loan		08/07/14		08/07/17		1		*		4.50	%	$	0			$	315	$	315	$	316
	Roudy Moliere &Jean B Letang ## &	Term Loan		01/15/16		01/15/18		1		*		5.00	%	$	0			$	321	$	315	$	316
	Balwinder Singh ## &	Term Loan		10/02/15		10/02/18		1		*		4.50	%	$	0			$	315	$	315	$	316
	Frands Fequiere ## &	Term Loan		01/20/16		01/20/18		1		*		5.25	%	$	0			$	328	$	315	$	316
	Turgut Duman ## &	Term Loan		12/02/15		12/02/18		1		*		4.13	%	$	0			$	330	$	315	$	316
	Marc C Bastien ## & (interest rate includes deferred interest of 1.50%)	Term Loan		04/11/13		05/24/18		1		*		5.50	%	$	15			$	321	$	315	$	315
	Preslert Louis ## & (interest rate includes deferred interest of 1.50%)	Term Loan		05/30/13		05/30/18		1		*		5.00	%	$	15			$	322	$	315	$	315
	Danny Truong ## (interest rate includes deferred interest of 2.00%)	Term Loan		07/30/14		01/30/20		1		*		5.50	%	$	6			$	724	$	724	$	315
	Ghulam Abbas ## & (interest rate includes deferred interest of 2.50%)	Term Loan		04/17/13		05/23/18		1		*		5.00	%	$	32			$	319	$	315	$	315
	Gur & Dev Taxi LLC & (interest rate includes deferred interest of 2.50%)	Term Loan		02/18/14		09/25/18		1		*		5.00	%	$	25			$	315	$	315	$	315
	Donald Singh ## & (interest rate includes deferred interest of 2.50%)	Term Loan		10/11/13		10/11/18		1		*		5.00	%	$	22			$	315	$	315	$	315
	Spyridon Tzorzis ## & (interest rate includes deferred interest of 2.50%)	Term Loan		07/10/13		07/12/17		1		*		5.00	%	$	22			$	315	$	315	$	315
	Alexander Vizueta ## & (interest rate includes deferred interest of 2.50%)	Term Loan		04/01/14		09/01/17		1		*		5.00	%	$	21			$	316	$	315	$	315
	Carmay Latendresse ## & (interest rate includes deferred interest of 2.50%)	Term Loan		05/19/14		11/09/17		1		*		5.00	%	$	20			$	692	$	662	$	315
	Atef A Khalil & (interest rate includes deferred interest of 2.50%)	Term Loan		07/09/14		12/25/18		1		*		5.00	%	$	18			$	336	$	315	$	315
	Joseph L Flovel ## & (interest rate includes deferred interest of 2.50%)	Term Loan		10/31/13		10/30/17		1		*		5.00	%	$	18			$	317	$	315	$	315
	Sukhdev Singh & Harpal S Bhola ## (interest rate includes deferred interest of 2.50%)	Term Loan		12/04/13		12/04/18		1		*		5.00	%	$	17			$	624	$	624	$	315
	Joseph Gerard Pierre ## (interest rate includes deferred interest of 2.50%)	Term Loan		07/07/14		01/18/18		1		*		5.00	%	$	17			$	694	$	694	$	315
	Shahdad Bhatti Cab Corp ## & (interest rate includes deferred interest of 2.50%)	Term Loan		08/18/14		01/01/18		1		*		5.00	%	$	16			$	319	$	315	$	315
	Gilberto Barrera ## & (interest rate includes deferred interest of 2.50%)	Term Loan		04/02/14		04/02/18		1		*		5.00	%	$	14			$	333	$	315	$	315
	Tarek Elsaid ## (interest rate includes deferred interest of 2.50%)	Term Loan		05/12/14		04/10/18		1		*		5.00	%	$	10			$	541	$	541	$	315
	Lelio Bresier & Jeanne Bresier ## & (interest rate includes deferred interest of 2.50%)	Term Loan		03/06/13		05/15/18		1		*		5.00	%	$	7			$	413	$	400	$	315

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Haroon Sharif ## & (interest rate includes deferred interest of 2.50%)	Term Loan		05/21/13		05/18/18		1		*		5.00	%	$	0			$	315	$	315	$	315
	Arman And Mehtab Padda Taxi Co ## & (interest rate includes deferred interest of 2.75%)	Term Loan		06/19/13		07/19/18		1		*		5.50	%	$	10			$	780	$	742	$	315
	Gilbert Chong ## (interest rate includes deferred interest of 2.75%)	Term Loan		10/28/15		10/25/19		1		*		5.50	%	$	3			$	523	$	523	$	315
	Samy Baddar ## & (interest rate includes deferred interest of 3.00%)	Term Loan		07/18/13		03/07/18		1		*		5.50	%	$	28			$	702	$	662	$	315
	Rafael A Pena ## & (interest rate includes deferred interest of 3.00%)	Term Loan		09/18/13		08/29/18		1		*		5.00	%	$	21			$	518	$	518	$	315
	Manuel F Pena ## & (interest rate includes deferred interest of 3.00%)	Term Loan		11/26/13		10/26/17		1		*		5.00	%	$	20			$	315	$	315	$	315
	Serge Bonny ## (interest rate includes deferred interest of 3.00%)	Term Loan		03/11/13		12/05/18		1		*		5.50	%	$	1			$	341	$	341	$	315
	Maria L Denocua ## (interest rate includes deferred interest of 3.00%)	Term Loan		09/17/15		12/29/19		1		*		7.40	%	$	0			$	515	$	515	$	315
	Brunet Lucas ## & (interest rate includes deferred interest of 3.25%)	Term Loan		06/06/13		06/06/18		1		*		5.00	%	$	33			$	619	$	615	$	315
	Tamimu Aliu ## &	Term Loan		05/28/13		05/28/16		1		*		4.25	%	$	0			$	315	$	315	$	315
	Guivarch Thimothe &	Term Loan		09/19/12		09/07/17		1		*		4.75	%	$	0			$	315	$	315	$	315
	Dhuri And Barnala Cab Corp ## &	Term Loan		06/03/13		06/03/16		1		*		3.80	%	$	0			$	320	$	315	$	315
	Alika Awan Trans Corp ## &	Term Loan		09/04/13		09/04/16		1		*		3.85	%	$	0			$	315	$	315	$	315
	Mian Cab Corp ## &	Term Loan		01/21/14		01/21/17		1		*		4.00	%	$	0			$	315	$	315	$	315
	Eli Parada ## &	Term Loan		11/27/13		11/27/16		1		*		3.65	%	$	0			$	315	$	315	$	315
	Strivers Way Inc ## &	Term Loan		12/17/13		12/17/16		1		*		3.85	%	$	0			$	349	$	315	$	315
	Ahmed Elsayed ## &	Term Loan		11/22/13		11/22/16		1		*		3.50	%	$	0			$	315	$	315	$	315
	Joseph W Charles &	Term Loan		05/27/14		05/27/17		1		*		3.70	%	$	0			$	315	$	315	$	315
	Guy Merisier ## &	Term Loan		07/25/14		07/25/17		1		*		4.13	%	$	0			$	334	$	315	$	315
	Yvon Louissaint ## &	Term Loan		02/20/14		02/20/17		1		*		3.88	%	$	0			$	322	$	315	$	315
	Kawarjeet Singh & Maan Singh ## &	Term Loan		05/15/13		12/08/17		1		*		4.00	%	$	0			$	315	$	315	$	315
	Rahul Amin ## &	Term Loan		06/11/14		06/26/17		1		*		3.63	%	$	0			$	315	$	315	$	315
	Eustache Romain ## &	Term Loan		02/26/13		04/06/18		1		*		4.50	%	$	0			$	330	$	315	$	315
	Louis A Alphonse ## &	Term Loan		02/21/13		02/18/19		1		*		4.50	%	$	0			$	327	$	315	$	315
	David Mashkabov ## &	Term Loan		10/26/11		10/24/17		1		*		4.00	%	$	0			$	315	$	315	$	315
	Alexander A Malamud ## &	Term Loan		02/28/13		02/26/18		1		*		4.00	%	$	0			$	321	$	315	$	315
	Sweeney And Sweeney ## &	Term Loan		09/29/15		03/28/18		1		*		4.50	%	$	0			$	315	$	315	$	315
	Man Singh ## &	Term Loan		02/25/13		02/09/18		1		*		4.50	%	$	0			$	555	$	555	$	315
	Amjad Abbas ## &	Term Loan		12/19/13		12/19/17		1		*		4.50	%	$	0			$	488	$	488	$	315
	Frantz Louhis & Joseph Paul ## &	Term Loan		06/08/12		06/08/19		1		*		4.75	%	$	0			$	484	$	470	$	315
	Jose F Pimentel ## &	Term Loan		05/14/14		11/14/18		1		*		4.00	%	$	0			$	686	$	686	$	315
	Garcha Randhawa Taxi Corp ## &	Term Loan		05/31/13		07/19/18		1		*		5.00	%	$	0			$	767	$	735	$	315
	Leo P. Roland ## &	Term Loan		12/03/13		02/03/20		1		*		3.50	%	$	0			$	664	$	646	$	315
	Malkit Singh ##	Term Loan		07/16/15		01/16/18		1		*		4.50	%	$	0			$	314	$	314	$	314
	Avner Ben-Levy ## &	Term Loan		05/29/12		05/28/17		1		*		4.25	%	$	0			$	346	$	315	$	314
	Essa & Soliman Transit Inc ##	Term Loan		04/19/13		03/08/18		1		*		4.75	%	$	0			$	307	$	307	$	307
	Rehmet Khan ##	Term Loan		03/11/15		03/08/19		1		*		4.50	%	$	0			$	304	$	304	$	304
	Georges Desrosiers ## (interest rate includes deferred interest of 2.50%)	Term Loan		12/22/17		12/22/19		1		*		5.50	%	$	0	$	301	$	301	$	301	$	303
	Surjit Singh ##	Term Loan		10/25/13		10/25/18		1		*		3.80	%	$	0			$	301	$	301	$	301
	Bj Cab Corp/Note 1 Of 2 {Annually-Prime plus 1.00%}	Term Loan		06/12/13		09/12/19		1		*		5.25	%	$	0			$	291	$	293	$	293
	Bj Cab Corp/Note 2 Of 2 {Annually-Prime plus 1.00%}	Term Loan		06/12/13		09/12/19		1		*		5.25	%	$	0			$	291	$	293	$	293
	Joubert Toussaint ##	Term Loan		03/09/15		03/09/18		1		*		4.50	%	$	0			$	285	$	285	$	285
	Jasvir Singh	Term Loan		11/27/12		11/27/22		1		*		4.25	%	$	0			$	277	$	279	$	281
	King D Taxi Inc ## {Annually-Prime}	Term Loan		01/17/12		10/01/21		1		*		4.25	%	$	0			$	277	$	277	$	277
	Crossbow Taxi Inc ## {Annually-Prime}	Term Loan		01/17/12		10/01/21		1		*		4.25	%	$	0			$	277	$	277	$	277
	Petia Cab Corporation ## {Annually-Prime}	Term Loan		01/17/12		10/01/21		1		*		4.25	%	$	0			$	277	$	277	$	277
	King Verin Taxi Inc ## {Annually-Prime}	Term Loan		01/17/12		10/01/21		1		*		4.25	%	$	0			$	277	$	277	$	277
	Cleopatra Cab Corp ## {Annually-Prime}	Term Loan		01/17/12		10/01/21		1		*		4.25	%	$	0			$	277	$	277	$	277
	Musa Corp ##	Term Loan		01/26/15		01/26/20		1		*		4.25	%	$	0			$	276	$	276	$	277
	Macbak Trans Corp ##	Term Loan		01/26/15		01/26/20		1		*		4.25	%	$	0			$	276	$	276	$	277
	Micdavid Hacking Corp ##	Term Loan		01/26/15		01/26/20		1		*		4.25	%	$	0			$	276	$	276	$	277
	Aem Transportation Corp ##	Term Loan		01/26/15		01/26/20		1		*		4.25	%	$	0			$	276	$	276	$	277
	Espiye Taxi Corp (interest rate includes deferred interest of 2.75%)	Term Loan		05/23/14		05/27/18		1		*		5.50	%	$	12			$	718	$	720	$	270

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Eugenio & Ayodele Trans Corp & (interest rate includes deferred interest of 2.50%)	Term Loan		09/26/13		03/28/19		1		*		5.00	%	$	13			$	662	$	637	$	268
	Amr & Rina Taxi Inc &	Term Loan		07/15/13		06/26/16		1		*		4.25	%	$	0			$	268	$	268	$	268
	Anmol Usa LLC ## &	Term Loan		10/01/14		09/26/17		1		*		3.75	%	$	0			$	268	$	268	$	268
	Gilzian Enterprise LLC ## &	Term Loan		05/22/14		05/22/17		1		*		3.88	%	$	0			$	268	$	268	$	268
	Jean B Guerrier ## &	Term Loan		08/08/12		08/10/17		1		*		4.50	%	$	0			$	268	$	268	$	268
	Senoz Cab Corp &	Term Loan		05/23/14		05/23/17		1		*		3.00	%	$	0			$	301	$	268	$	268
	Kornos Taxi Inc ## &	Term Loan		09/04/12		09/04/17		1		*		4.50	%	$	0			$	265	$	265	$	265
	Elsayed A Hassan ##	Term Loan		12/12/17		12/12/19		1		*		5.50	%	$	0	$	258	$	258	$	258	$	260
	Sincere Cab Corp ##	Term Loan		06/21/11		06/21/20		1		*		4.75	%	$	0			$	263	$	263	$	260
	Platform Taxi Service/Mbank	Term Loan		05/04/12		12/15/17		1		*		5.92	%	$	0			$	252	$	252	$	252
	Zorro Taxi Inc ##	Term Loan		12/20/13		12/20/17		1		*		4.50	%	$	0			$	245	$	245	$	245
	Kesef Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	4			$	244	$	244	$	244
	Mohammmed H Iqbal ##	Term Loan		09/14/12		03/11/18		1		*		4.50	%	$	0			$	229	$	229	$	229
	Ede Service Corp ##	Term Loan		07/20/07		12/20/17		1		*		2.81	%	$	0			$	210	$	210	$	210
	Daniel Victor ##	Term Loan		05/09/16		05/09/19		1		*		4.75	%	$	0			$	204	$	204	$	205
	Corsi Cab Corp ##	Term Loan		06/21/11		06/21/20		1		*		4.75	%	$	0			$	197	$	197	$	196
	Anba Taxi Inc ##	Term Loan		06/21/11		06/21/20		1		*		4.75	%	$	0			$	197	$	197	$	195
	Lissade Aurelus ## & {Annually-Prime plus 1.00%}	Term Loan		05/01/13		05/03/19		1		*		5.00	%	$	0			$	184	$	184	$	184
	Jackie L Chaiken ## &	Term Loan		09/20/16		03/26/18		1		*		4.25	%	$	0			$	175	$	175	$	176
	Birk Cab Corp/Note 1 ## & (interest rate includes deferred interest of 1.25%)	Term Loan		03/11/15		05/09/18		1		*		5.00	%	$	5			$	182	$	170	$	171
	Valeri Aminov—Note 1	Term Loan		02/25/15		02/25/18		1		*		4.25	%	$	0			$	168	$	170	$	170
	Wai Tat Louie	Term Loan		05/07/15		05/25/20		1		*		5.00	%	$	0			$	159	$	161	$	161
	Mohammad Ashraf Ali ##	Term Loan		01/17/12		01/09/18		1		*		4.00	%	$	0			$	154	$	154	$	154
	Ede Service Corp/Mfun	Term Loan		07/24/07		12/20/17		1		*		2.81	%	$	0			$	151	$	153	$	153
	Birk Cab Corp/Note 2 ## & (interest rate includes deferred interest of 1.25%)	Term Loan		03/11/15		05/09/18		1		*		5.00	%	$	3			$	157	$	145	$	146
	Jo & Dimi LLC ##	Term Loan		09/17/15		09/17/18		1		*		3.10	%	$	0			$	140	$	140	$	141
	Ny Diploma Taxi Co ##	Term Loan		07/20/07		12/20/17		1		*		2.81	%	$	0			$	140	$	140	$	140
	Wan Sang Lau & Mary Quan Lau ##	Term Loan		03/18/16		03/18/18		1		*		4.50	%	$	0			$	137	$	137	$	137
	Sofi Hacking Corp ##	Term Loan		05/11/15		05/11/18		1		*		4.00	%	$	0			$	125	$	125	$	125
	Mk Multani/B Note	Term Loan		04/13/15		11/13/18		1		*		4.00	%	$	0			$	125	$	125	$	125
	Joseph Bologna ## {Annually-Prime plus 1.00%}	Term Loan		10/06/10		09/29/19		1		*		5.25	%	$	0			$	117	$	117	$	117
	Sunu Miah And M Jahangi/Mbnk & (interest rate includes deferred interest of 2.25%)	Term Loan		05/12/14		08/15/18		1		*		5.25	%	$	3			$	108	$	108	$	108
	Roman Fermin ##	Term Loan		08/09/13		07/29/18		1		*		4.75	%	$	0			$	105	$	105	$	105
	Ny Diploma Taxi Corp/Mfun	Term Loan		07/24/07		12/20/17		1		*		2.81	%	$	0			$	101	$	103	$	103
	Valeri Aminov—Note 1	Term Loan		02/25/15		02/25/18		1		*		4.25	%	$	0			$	95	$	97	$	97
	Jaswinder Singh/Note B (interest rate includes deferred interest of 2.00%)	Term Loan		04/27/16		04/27/18		1		*		4.50	%	$	3			$	84	$	84	$	84
	1212 Taxi LLC (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	12	$	750	$	75	$	75	$	76
	Y Joey Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	7	$	400	$	74	$	74	$	75
	Nicolae Blidariu	Term Loan		02/29/08		02/28/23		1		*		6.50	%	$	0			$	73	$	75	$	75
	Bu Taxi LLC/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	1	$	75	$	73	$	73	$	73
	Ede Service Corp	Term Loan		07/20/07		12/20/17		1		*		2.81	%	$	0			$	70	$	70	$	70
	Jean Pierre Trans Inc	Term Loan		02/26/14		02/26/18		1		*		3.75	%	$	0			$	62	$	62	$	62
	Tyme Cab Corp (interest rate includes deferred interest of 2.75%)	Term Loan		06/26/14		06/25/20		1		*		5.00	%	$	6			$	60	$	60	$	60
	Y Mommy Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	1	$	60	$	59	$	59	$	59
	Ruckman Hacking Corp {Annually-Prime plus .25%}	Term Loan		08/30/13		03/01/19		1		*		4.00	%	$	0			$	56	$	56	$	56
	Sonnet Service Co Inc {Annually-Prime plus .25%}	Term Loan		08/30/13		03/01/19		1		*		4.00	%	$	0			$	56	$	56	$	56
	Chahal & Nahal LLC (interest rate includes deferred interest of 4.165%)	Term Loan		04/21/14		04/21/18		1		*		8.33	%	$	2			$	56	$	56	$	56
	Goodspeed Transit Inc {Annually-Prime plus .50%}	Term Loan		08/14/13		08/14/19		1		*		4.75	%	$	0			$	54	$	54	$	54
	Abdul H Abid ##	Term Loan		04/24/14		04/24/19		1		*		4.00	%	$	0			$	53	$	53	$	54
	Mode Service Corp	Term Loan		06/02/11		06/01/21		1		*		6.00	%	$	0			$	54	$	54	$	54
	Y Daddy Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	1			$	53	$	53	$	53
	Eddy Joseph	Term Loan		02/02/15		02/02/22		1		*		5.00	%	$	0			$	51	$	51	$	52
	Cora Hacking Corp	Term Loan		03/07/13		03/07/18		1		*		3.50	%	$	0			$	51	$	51	$	51
	M.Y. Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	16	$	960	$	49	$	49	$	50
	Granny Hacking Corp	Term Loan		03/07/13		03/07/18		1		*		3.50	%	$	0			$	50	$	50	$	50

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Network Agami Cab Corp (interest rate includes deferred interest of 1.00%) {Annually-Prime minus 1.75%}	Term Loan		02/27/13		05/01/19		1		*		4.25	%	$	6			$	47	$	47	$	47
	Ptah Cab Corp (interest rate includes deferred interest of 1.00%) {Annually-Prime minus 1.75%}	Term Loan		03/12/14		05/01/19		1		*		4.25	%	$	6			$	47	$	47	$	47
	Salih Boncukcu/Mbnk	Term Loan		06/18/14		12/18/19		1		*		13.50	%	$	0			$	47	$	47	$	47
	Ny Diploma Taxi Co	Term Loan		07/20/07		12/20/17		1		*		2.81	%	$	0			$	46	$	46	$	46
	Orbit Agami Cab LLC & {Annually-Prime minus .25%}	Term Loan		11/05/10		10/01/19		1		*		4.00	%	$	0			$	44	$	44	$	44
	William G Ward ##	Term Loan		04/29/13		04/26/21		1		*		4.50	%	$	0			$	43	$	43	$	43
	Justin Hacking Corp {Annually-Prime plus .50%}	Term Loan		08/14/13		08/14/19		1		*		4.75	%	$	0			$	42	$	42	$	42
	Soho Cab Corp &	Term Loan		02/11/14		08/27/18		1		*		3.00	%	$	0			$	124	$	53	$	31
	Yme Transit Inc {Annually-Prime plus .50%}	Term Loan		08/14/13		08/14/19		1		*		4.75	%	$	0			$	29	$	29	$	29
	M.M.Y Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	12			$	29	$	29	$	29
	Y Mati Taxi Inc/Mbnk (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	29	$	29	$	29
	N&A Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	29	$	29	$	29
	Y Meir Taxi Inc/Mbnk (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	29	$	29	$	29
	S&M Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	29	$	29	$	29
	Y Michal Taxi Inc/Mbnk (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	29	$	29	$	29
	Fido Cab Corp {Annually-Prime plus .50%}	Term Loan		08/14/13		08/14/19		1		*		4.75	%	$	0			$	25	$	25	$	25
	Boris Ushman ##	Term Loan		05/21/03		02/17/18		1		*		5.75	%	$	0			$	25	$	25	$	25
	Saba Moshe Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	7	$	422	$	21	$	22	$	24
	Bursa Cab Corp/Note 2	Term Loan		03/23/01		09/10/23		1		*		6.00	%	$	0			$	22	$	24	$	24
	Neomi & Z Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	7	$	422	$	21	$	21	$	23
	M&J Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	7	$	422	$	21	$	21	$	23
	Maya Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	7	$	422	$	21	$	21	$	23
	Mtr Taxi Inc (interest rate includes deferred interest of 1.75%)	Term Loan		01/19/17		01/01/19		1		*		5.00	%	$	7	$	422	$	21	$	21	$	23
	Bursa Cab Corp/Note 1	Term Loan		03/23/01		09/10/23		1		*		6.00	%	$	0			$	20	$	22	$	22
	Opera Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	20	$	20	$	20
	Ronen Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	20	$	20	$	20
	Mry Taxi Inc/Mbank (interest rate includes deferred interest of 1.75%)	Term Loan		07/16/12		01/01/19		1		*		5.00	%	$	0			$	20	$	20	$	20
	Munir Ahmed Sahi ##	Term Loan		08/13/15		08/13/18		1		*		4.00	%	$	0			$	20	$	20	$	20
	Sukhdev Singh & H Singh/B Note	Term Loan		07/13/16		07/13/20		1		*		5.00	%	$	0			$	17	$	17	$	19
	Vosiem Hacking Corp {Annually-Prime plus .50%}	Term Loan		08/14/13		08/14/19		1		*		4.75	%	$	0			$	16	$	16	$	16
	Surlak Taxi LLC/Mbnk (interest rate includes deferred interest of 9.187%)	Term Loan		04/25/14		04/17/18		1		*		18.38	%	$	1			$	14	$	14	$	14
	Bj Cab Corp	Term Loan		02/27/15		02/26/19		1		*		5.00	%	$	0			$	10	$	12	$	13
	Jose F Pimentel ##	Term Loan		05/14/14		05/14/19		1		*		4.25	%	$	0			$	11	$	11	$	12
	Dominique Ismael &	Term Loan		09/17/15		09/17/18		1		*		5.00	%	$	0			$	9	$	9	$	10
	Jean M Venord/Mbank	Term Loan		04/10/17		04/10/22		1		*		9.25	%	$	0	$	8	$	7	$	7	$	7
	Anastasios Tsiklidis	Term Loan		04/15/11		01/15/18		1		*		3.60	%	$	0			$	2	$	4	$	4
	Amr Aly Shafshak/Note B &	Term Loan		10/24/17		10/24/22		1		*		0.00	%	$	0	$	307	$	307	$	307	$	2
	Paros Taxi LLC &	Term Loan		03/28/14		08/27/18		1		*		3.00	%	$	0			$	309	$	228	$	1
	Ilker Altaygil &	Term Loan		11/23/15		11/20/17		1		*		5.00	%	$	0			$	1	$	1	$	1
	D&P Baidwan LLC/Mbnk (interest rate includes deferred interest of 5.358%)	Term Loan		05/20/14		05/20/18		1		*		10.72	%	$	3			$	84	$	84	$	0
	Pj Moe LLC/Mbnk & (interest rate includes deferred interest of 5.55%)	Term Loan		07/08/14		07/08/18		1		*		11.10	%	$	2			$	74	$	74	$	0
	Pakt Medallions LLC/Mbnk & (interest rate includes deferred interest of 6.75%)	Term Loan		08/26/14		06/02/18		1		*		13.50	%	$	2			$	43	$	41	$	0
	Davinder Singh/Mbnk (interest rate includes deferred interest of 7.118%)	Term Loan		04/23/14		04/20/18		1		*		13.04	%	$	3			$	60	$	60	$	0
	Hshmul Taxi LLC/Mbnk &	Term Loan		03/17/14		05/31/19		1		*		6.50	%	$	0			$	36	$	34	$	0
	Diin Taxi LLC/Mbnk &	Term Loan		12/27/16		06/27/18		1		*		0.00	%	$	0			$	127	$	119	$	0
	Ramdas 4 Taxi LLC/Mbnk &	Term Loan		05/27/14		02/17/18		1		*		6.50	%	$	0			$	80	$	71	$	0
	Kero Taxi Corp/Mbnk	Term Loan		05/30/14		11/30/18		1		*		10.25	%	$	0			$	74	$	74	$	0

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Chicago								107		5	%		4.74	%	$	227	$	0	$	20,172	$	19,436	$	15,602
	Sweetgrass Peach &Chadwick Cap ## (interest rate includes deferred interest of 1.00%)	Term Loan		08/28/12		02/24/18		1		*			6.00	%	$	20			$	1,374	$	1,374	$	1,374
	Regal Cab Company Et Al ## &	Term Loan		08/29/13		08/27/18		1		*			5.00	%	$	0			$	658	$	658	$	658
	Chicago Medallion Two LLC ## & (interest rate includes deferred interest of .75%)	Term Loan		12/02/11		12/02/16		1		*			3.75	%	$	14			$	485	$	470	$	470
	Chicago Medallion Three LLC ## & (interest rate includes deferred interest of .75%)	Term Loan		12/02/11		12/02/16		1		*			3.75	%	$	14			$	485	$	470	$	470
	Chicago Medallion Four LLC ## & (interest rate includes deferred interest of .75%)	Term Loan		12/02/11		12/02/16		1		*			3.75	%	$	14			$	485	$	470	$	470
	Chicago Medallion One LLC ## & (interest rate includes deferred interest of .75%)	Term Loan		12/02/11		12/02/16		1		*			3.75	%	$	14			$	485	$	470	$	470
	Moo Moo Cab Co ## {Annually-Prime plus 2.00%}	Term Loan		08/14/13		08/04/19		1		*			6.25	%	$	0			$	418	$	418	$	418
	Blue Valentine Cab Corp {Annually-Prime plus 2.00%}	Term Loan		04/10/13		04/11/19		1		*			6.00	%	$	0			$	408	$	408	$	408
	Tumblin Dice Taxi Inc {Annually-Prime plus 2.00%}	Term Loan		04/10/13		04/11/19		1		*			6.00	%	$	0			$	407	$	407	$	407
	Musanour Cab Inc ##	Term Loan		09/27/13		09/27/18		1		*			5.25	%	$	0			$	407	$	407	$	407
	Chicago Medallion Nine LLC ## &	Term Loan		05/02/12		05/02/17		1		*			5.75	%	$	0			$	392	$	376	$	376
	Blue Eyes Cab Corp ## & {Annually-Prime}	Term Loan		12/22/15		12/22/20		1		*			4.25	%	$	0			$	284	$	282	$	283
	Lucky Seven Chicago One Inc ## & {Annually-Prime}	Term Loan		12/22/15		12/22/20		1		*			4.25	%	$	0			$	284	$	282	$	283
	Ray Cab Company &	Term Loan		07/22/15		07/22/18		1		*			5.50	%	$	0			$	287	$	282	$	283
	Rahwa & Bros Cab Co, Et Al ## &	Term Loan		04/11/14		04/11/19		1		*			5.00	%	$	0			$	329	$	282	$	283
	Met Cab Co ## &	Term Loan		08/29/13		08/29/16		1		*			5.00	%	$	0			$	282	$	282	$	282
	Michael Two Cab Corp ## &	Term Loan		07/12/12		06/25/17		1		*			4.50	%	$	0			$	282	$	282	$	282
	American Buffalo Cab Corp {Annually-Prime plus 2.00%}	Term Loan		04/10/13		04/11/19		1		*			6.00	%	$	0			$	273	$	274	$	274
	Little Wing Cab Corp {Annually-Prime plus 2.00%}	Term Loan		04/10/13		04/11/19		1		*			6.00	%	$	0			$	274	$	274	$	274
	Valasia Cab Co ##	Term Loan		01/18/12		01/18/18		1		*			5.00	%	$	0			$	238	$	238	$	238
	Cozy Cab Co ## &	Term Loan		08/29/13		08/29/16		1		*			5.00	%	$	0			$	240	$	235	$	236
	Natalia Taxi Corp ## &	Term Loan		05/01/13		05/01/17		1		*			4.50	%	$	0			$	235	$	235	$	236
	Natasha Transportation Inc ## &	Term Loan		05/01/13		05/01/17		1		*			4.50	%	$	0			$	235	$	235	$	236
	N And M Valdof Hacking Corp ## &	Term Loan		05/01/13		05/01/17		1		*			4.50	%	$	0			$	235	$	235	$	236
	Harriet C Inc ## & (interest rate includes deferred interest of 2.75%)	Term Loan		10/19/12		10/17/18		1		*			5.25	%	$	29			$	859	$	859	$	235
	Dell Cab Corp ## &	Term Loan		08/29/13		08/29/16		1		*			5.00	%	$	0			$	235	$	235	$	235
	Mike Taxi Corp ## &	Term Loan		05/01/13		05/01/17		1		*			4.50	%	$	0			$	235	$	235	$	235
	Lmb Taxi V Inc ## &	Term Loan		07/12/12		06/25/17		1		*			4.50	%	$	0			$	235	$	235	$	235
	Lmb Taxi Iv Inc ## &	Term Loan		07/12/12		06/25/17		1		*			4.50	%	$	0			$	235	$	235	$	235
	Glti Cab Corp &	Term Loan		03/10/15		03/10/18		1		*			5.00	%	$	0			$	210	$	210	$	210
	Aniba Management & Services In ##	Term Loan		09/27/13		09/27/18		1		*			5.25	%	$	0			$	202	$	202	$	203
	Santorini Four Cab Corp ## & (interest rate includes deferred interest of 1.50%)	Term Loan		05/09/13		08/27/18		1		*			3.50	%	$	9			$	704	$	674	$	189
	Showcase Sports Management Cor ##	Term Loan		01/22/10		03/11/18		1		*			5.50	%	$	0			$	189	$	189	$	189
	Santorini Five Cab Corp ## & (interest rate includes deferred interest of 1.50%)	Term Loan		05/09/13		08/27/18		1		*			3.50	%	$	9			$	704	$	674	$	188
	Santorini Six Cab Corp ## & (interest rate includes deferred interest of 1.50%)	Term Loan		05/09/13		08/27/18		1		*			3.50	%	$	9			$	704	$	674	$	188
	Tribeca Two Cab Corp ## & (interest rate includes deferred interest of 1.50%)	Term Loan		05/09/13		08/27/18		1		*			3.50	%	$	9			$	704	$	674	$	188
	Chicago Medallion Seven LLC ## &	Term Loan		05/02/12		05/02/17		1		*			5.75	%	$	0			$	196	$	188	$	188
	Dome Cab Corp ## &	Term Loan		08/29/13		08/29/16		1		*			5.00	%	$	0			$	141	$	141	$	142
	Mikhalia Cabs Nine Inc ## &	Term Loan		07/12/12		06/25/17		1		*			4.50	%	$	0			$	141	$	141	$	141
	Kayla Hacking Corp ## &	Term Loan		07/12/12		06/25/17		1		*			4.50	%	$	0			$	141	$	141	$	141
	Carol Of Illinois Enterprises &	Term Loan		09/19/14		09/19/17		1		*			5.00	%	$	0			$	644	$	644	$	141
	Addis Flower Taxi Cab Service	Term Loan		02/27/14		02/27/19		1		*			5.50	%	$	0			$	100	$	100	$	101
	Bedford Cab Two Corp {Annually-Prime plus .75%}	Term Loan		07/30/10		03/11/19		1		*			4.50	%	$	0			$	100	$	100	$	100
	Paik Cab Co	Term Loan		05/30/14		05/30/19		1		*			5.00	%	$	0			$	98	$	98	$	99
	Jiffy Cab Co ## &	Term Loan		08/29/13		08/29/16		1		*			5.00	%	$	0			$	100	$	94	$	95
	Myrtos Cab Corp &	Term Loan		03/25/15		03/25/19		1		*			4.25	%	$	0			$	109	$	94	$	95
	Taxi For Less Inc &	Term Loan		09/19/14		03/31/17		1		*			2.00	%	$	0			$	110	$	94	$	95
	Coffee Taxi LLC ## & (interest rate includes deferred interest of 1.50%)	Term Loan		10/10/13		08/27/18		1		*			3.50	%	$	6			$	441	$	418	$	94
	Asmara Cab Company ##	Term Loan		12/01/11		12/29/19		1		*			5.25	%	$	0			$	93	$	93	$	93
	Imc Cab Corp {Annually-Prime plus .75%}	Term Loan		08/27/10		03/11/19		1		*			4.50	%	$	0			$	85	$	85	$	85

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)	Principal Outstanding		Cost (4)		Fair Value
	Grapevine Taxi LLC ## & (interest rate includes deferred interest of 1.50%)	Term Loan		10/10/13		08/27/18		1		*		3.50	%	$	2		$	161	$	153	$	49
	C Dortch Inc ## & (interest rate includes deferred interest of 1.50%)	Term Loan		12/04/13		08/27/18		1		*		3.50	%	$	2		$	182	$	174	$	49
	Karbala Express Inc ## &	Term Loan		02/26/13		05/26/16		1		*		5.00	%	$	0		$	47	$	47	$	48
	Shere Corp ## &	Term Loan		07/26/13		07/26/18		1		*		5.25	%	$	0		$	50	$	47	$	48
	Tahoora Transportation Inc. ## &	Term Loan		07/26/13		07/26/18		1		*		5.25	%	$	0		$	50	$	47	$	48
	Alkarim Chicago Inc ## &	Term Loan		11/27/13		11/27/18		1		*		5.50	%	$	0		$	55	$	47	$	48
	Tekezze Inc &	Term Loan		12/11/13		12/11/18		1		*		5.00	%	$	0		$	54	$	47	$	48
	Three Kids Corp &	Term Loan		04/15/13		04/15/18		1		*		5.50	%	$	0		$	62	$	47	$	48
	Nakfa Corp ## &	Term Loan		06/17/13		06/17/18		1		*		4.88	%	$	0		$	49	$	47	$	48
	Adom Enterprise, Inc ## &	Term Loan		09/27/13		09/27/18		1		*		5.25	%	$	0		$	51	$	47	$	48
	Nike Yomi Inc ## &	Term Loan		08/06/13		08/06/18		1		*		5.25	%	$	0		$	60	$	47	$	48
	Tad Taxi Co ## &	Term Loan		11/13/13		11/13/18		1		*		5.00	%	$	0		$	54	$	47	$	48
	Life Cab Corp ## &	Term Loan		09/18/13		09/18/18		1		*		5.25	%	$	0		$	50	$	47	$	48
	Sabina Cab Inc &	Term Loan		04/19/13		04/19/18		1		*		5.50	%	$	0		$	49	$	47	$	48
	Alem B Cab Inc ## &	Term Loan		01/22/13		01/22/18		1		*		5.50	%	$	0		$	47	$	47	$	48
	Alex Z Cab Corp &	Term Loan		04/22/13		04/22/18		1		*		5.50	%	$	0		$	56	$	47	$	48
	Zeyrefda Inc ## &	Term Loan		05/17/13		05/17/18		1		*		5.50	%	$	0		$	51	$	47	$	48
	Interwoodex Inc ## &	Term Loan		11/07/13		11/07/18		1		*		5.00	%	$	0		$	53	$	47	$	48
	Nour Enterprise Inc ## &	Term Loan		09/16/13		09/16/18		1		*		5.75	%	$	0		$	47	$	47	$	48
	Naneffe Inc ## &	Term Loan		03/15/13		03/15/18		1		*		5.50	%	$	0		$	55	$	47	$	48
	Moses J Frank &	Term Loan		04/26/13		04/26/18		1		*		7.00	%	$	0		$	56	$	47	$	48
	Yenemekoya Inc ## &	Term Loan		06/28/13		06/28/18		1		*		5.25	%	$	0		$	51	$	47	$	48
	Helen Habte Corp ## &	Term Loan		10/01/13		02/03/17		1		*		4.00	%	$	0		$	55	$	47	$	48
	Antar Trans Inc &	Term Loan		01/17/14		01/17/19		1		*		5.00	%	$	0		$	47	$	47	$	48
	Bashiru Habib &	Term Loan		07/09/14		07/09/18		1		*		6.25	%	$	0		$	48	$	47	$	48
	Wubshet Inc ## &	Term Loan		09/25/13		09/25/18		1		*		5.25	%	$	0		$	50	$	47	$	48
	Tyrone Henderson &	Term Loan		03/12/14		07/27/18		1		*		6.50	%	$	0		$	48	$	47	$	48
	Measho Cab Corp &	Term Loan		08/08/16		08/08/19		1		*		5.00	%	$	0		$	74	$	74	$	48
	Annabelle Cab Corporation ## &	Term Loan		02/14/14		03/12/16		1		*		0.00	%	$	0		$	47	$	47	$	47
	Pireas Taxi Corp ## &	Term Loan		06/07/13		06/07/16		1		*		4.50	%	$	0		$	50	$	47	$	47
	Semhar Corp ## &	Term Loan		01/31/12		01/31/17		1		*		5.50	%	$	0		$	47	$	47	$	47
	Jpg Cab Corp &	Term Loan		04/23/12		04/23/17		1		*		6.50	%	$	0		$	47	$	47	$	47
	Significant Trans Inc ## &	Term Loan		04/06/12		04/06/17		1		*		6.50	%	$	0		$	47	$	47	$	47
	Asmara Inc ## &	Term Loan		04/11/13		04/11/18		1		*		5.50	%	$	0		$	47	$	47	$	47
	Kalib 2010 Inc ## &	Term Loan		07/16/13		07/16/17		1		*		5.50	%	$	0		$	47	$	47	$	47
	Delina Cab Inc &	Term Loan		01/22/13		01/22/18		1		*		5.50	%	$	0		$	47	$	47	$	47
	Les & Thera LLC &	Term Loan		05/08/13		05/08/17		1		*		5.25	%	$	0		$	47	$	47	$	47
	Yemi Taxi Corp ## &	Term Loan		08/01/13		08/01/18		1		*		5.25	%	$	0		$	47	$	47	$	47
	Rahel Express Inc ## &	Term Loan		12/27/13		12/27/18		1		*		5.25	%	$	0		$	47	$	47	$	47
	Adi Express Inc ## &	Term Loan		09/21/12		09/21/17		1		*		5.75	%	$	0		$	47	$	47	$	47
	Tigray Cab Inc &	Term Loan		03/28/13		03/28/18		1		*		5.50	%	$	0		$	47	$	47	$	47
	Ali Taxi Corp ##	Term Loan		08/13/13		08/13/18		1		*		5.25	%	$	0		$	21	$	21	$	21
	Sny Cab Inc ##	Term Loan		12/14/11		12/28/19		1		*		4.50	%	$	0		$	19	$	19	$	19
	Ade Taxi Corp	Term Loan		12/08/14		12/08/19		1		*		5.50	%	$	0		$	15	$	15	$	16
	Top Cab Corp	Term Loan		05/14/15		05/14/19		1		*		4.25	%	$	0		$	15	$	15	$	16
	Hudson Cab Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		05/22/14		08/27/18		1		*		3.50	%	$	13		$	90	$	48	$	14
	Oia Cab Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		08/01/14		08/27/18		1		*		3.50	%	$	13		$	93	$	43	$	12
	Tribeca Three Cab Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		05/22/14		08/27/18		1		*		3.50	%	$	10		$	73	$	38	$	10
	Santorini Two Cab Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		08/01/14		08/27/18		1		*		3.50	%	$	11		$	74	$	34	$	9
	Stny Taxi Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		08/01/14		08/27/18		1		*		3.50	%	$	11		$	74	$	32	$	9
	Greenwich Cab Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		05/22/14		08/27/18		1		*		3.50	%	$	8		$	56	$	28	$	8
	Any Cab Two Corp & (interest rate includes deferred interest of 1.50%)	Term Loan		05/22/14		08/27/18		1		*		3.50	%	$	5		$	36	$	19	$	5

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	St Petersburg Taxi LLC & (interest rate includes deferred interest of 1.50%)	Term Loan		05/22/14		08/27/18		1		*			3.50	%	$	5			$	36	$	19	$	5
	Francis King Boat Inc	Term Loan		04/17/13		04/17/18		1		*			5.50	%	$	0			$	3	$	3	$	3
	Taxi For Less Inc &	Term Loan		05/09/16		05/09/18		1		*			0.00	%	$	0			$	10	$	10	$	2
	Patriot Trans Inc &	Term Loan		05/09/16		05/09/18		1		*			0.00	%	$	0			$	20	$	20	$	2
	Top Cab Corp &	Term Loan		02/24/15		02/24/19		1		*			4.25	%	$	0			$	14	$	12	$	0
Newark								110		8	%		5.34	%	$	2	$	1,047	$	21,999	$	21,935	$	21,684
	Viergella Inc ##	Term Loan		02/20/14		02/20/18		1		*			4.75	%	$	0			$	1,278	$	1,278	$	1,278
	Rachel LLC	Term Loan		04/25/13		04/25/18		1		*			5.25	%	$	0			$	668	$	667	$	667
	Cherubin Vincent &	Term Loan		01/23/14		01/23/18		1		*			5.25	%	$	0			$	605	$	605	$	605
	K And N Taxi LLC	Term Loan		09/26/13		09/26/19		1		*			5.25	%	$	0			$	589	$	588	$	588
	A.M.E. Transit Limited Liabili ## &	Term Loan		01/10/13		01/10/18		1		*			5.25	%	$	0			$	392	$	392	$	392
	Briana Taxi LLC &	Term Loan		01/23/14		01/23/18		1		*			5.00	%	$	0			$	332	$	332	$	332
	Saintvillien & Larochelle LLC	Term Loan		11/14/13		11/14/18		1		*			4.90	%	$	0			$	304	$	303	$	304
	Mr. Milcent & Sons, LLC ##	Term Loan		04/24/14		04/24/20		1		*			5.00	%	$	0			$	289	$	289	$	288
	Two Daughters Taxi LLC ##	Term Loan		06/12/14		06/12/18		1		*			5.25	%	$	0			$	286	$	286	$	286
	1 Hope LLC	Term Loan		09/26/13		09/26/19		1		*			5.75	%	$	0			$	274	$	274	$	273
	Owned By Mr Vincent LLC	Term Loan		01/10/13		01/10/19		1		*			5.25	%	$	0			$	273	$	273	$	272
	Romise Taxi LLC	Term Loan		04/25/13		04/25/18		1		*			5.25	%	$	0			$	270	$	270	$	270
	Lagrande Taxi Corp ##	Term Loan		02/14/13		02/14/19		1		*			5.50	%	$	0			$	270	$	270	$	269
	B Gene And Fil LLC	Term Loan		01/10/13		01/10/20		1		*			5.25	%	$	0			$	269	$	269	$	268
	Clair 282 LLC ##	Term Loan		09/12/13		09/12/19		1		*			5.50	%	$	0			$	269	$	269	$	268
	Angel Taxi LLC &	Term Loan		08/14/14		08/14/18		1		*			5.25	%	$	0			$	264	$	264	$	264
	Carvin Taxi Inc ##	Term Loan		12/12/13		12/12/18		1		*			5.00	%	$	0			$	262	$	262	$	262
	Dern #2 Taxi Inc ##	Term Loan		12/12/13		12/12/18		1		*			5.00	%	$	0			$	262	$	262	$	262
	Cmgv #2 Taxi Inc ##	Term Loan		12/12/13		12/12/18		1		*			5.00	%	$	0			$	262	$	262	$	262
	Center Taxi LLC ##	Term Loan		08/15/13		08/15/19		1		*			5.50	%	$	0			$	259	$	259	$	258
	Jovin Taxi Inc ##	Term Loan		01/10/13		01/10/20		1		*			5.00	%	$	0			$	253	$	253	$	252
	Hg & Zg Corporation &	Term Loan		10/25/12		10/25/17		1		*			5.25	%	$	0			$	249	$	249	$	249
	Magdala Corp ## &	Term Loan		08/16/13		08/16/19		1		*			5.50	%	$	0			$	247	$	247	$	246
	Maitre Joa LLC	Term Loan		09/12/13		09/12/19		1		*			5.50	%	$	0			$	241	$	241	$	240
	Simone Francois ##	Term Loan		04/25/13		04/25/20		1		*			5.75	%	$	0			$	239	$	239	$	238
	Hg & Zg Corporation &	Term Loan		10/25/12		10/25/17		1		*			5.25	%	$	0			$	232	$	232	$	232
	Mike 22, Limited Liability Com	Term Loan		06/11/15		06/11/18		1		*			5.50	%	$	0			$	231	$	231	$	231
	Holy Family Trans Inc	Term Loan		04/16/15		04/16/19		1		*			5.00	%	$	0			$	229	$	229	$	229
	Peter Doe &	Term Loan		08/14/14		08/14/18		1		*			5.25	%	$	0			$	227	$	227	$	228
	D,D Trans Inc	Term Loan		09/18/14		09/18/18		1		*			4.75	%	$	0			$	224	$	224	$	224
	Nahla Taxi Inc ##	Term Loan		04/24/14		04/24/18		1		*			5.50	%	$	0			$	222	$	222	$	222
	St Abraam Corp	Term Loan		04/25/13		04/22/18		1		*			5.00	%	$	0			$	219	$	219	$	219
	Rowfida Incorporated ##	Term Loan		12/12/13		12/12/17		1		*			4.75	%	$	0			$	218	$	218	$	218
	Three Sons 2 Taxi Inc ##	Term Loan		05/09/13		11/09/19		1		*			6.00	%	$	0			$	219	$	219	$	218
	Luckner Etienne ##	Term Loan		10/25/12		10/25/19		1		*			5.50	%	$	0			$	210	$	210	$	210
	Dupe Taxi LLC	Term Loan		12/10/15		12/10/19		1		*			5.50	%	$	0			$	205	$	205	$	206
	Sonson Taxi Inc ##	Term Loan		10/25/12		10/25/19		1		*			5.50	%	$	0			$	204	$	204	$	204
	Kesh & Kelo LLC ##	Term Loan		04/25/13		04/25/19		1		*			5.50	%	$	0			$	204	$	204	$	203
	T-Bozo Trans LLC (interest rate includes deferred interest of 1.50%)	Term Loan		04/25/13		04/25/19		1		*			6.25	%	$	2			$	203	$	202	$	202
	Anasta.S. Taxi LLC	Term Loan		04/25/13		04/25/20		1		*			5.75	%	$	0			$	203	$	203	$	202
	E H 88 Taxi Corp ##	Term Loan		06/12/14		06/12/19		1		*			5.50	%	$	0			$	201	$	201	$	200
	Semsema Trans Corporation	Term Loan		09/18/14		09/18/18		1		*			5.00	%	$	0			$	199	$	199	$	199
	Zoune Taxi #2 Inc ##	Term Loan		01/10/13		01/10/20		1		*			5.50	%	$	0			$	198	$	198	$	197
	Timax 426 Inc &	Term Loan		11/14/13		11/14/17		1		*			5.25	%	$	0			$	196	$	196	$	196
	Les & Thera Transportation LLC &	Term Loan		07/12/13		07/12/18		1		*			5.50	%	$	0			$	222	$	217	$	196
	Airport Travel LLC &	Term Loan		01/23/14		01/23/19		1		*			5.00	%	$	0			$	309	$	299	$	196
	Jacob And Jasmina Inc &	Term Loan		10/24/14		10/24/18		1		*			4.90	%	$	0			$	201	$	196	$	196
	Laboule LLC &	Term Loan		09/18/14		09/18/18		1		*			5.25	%	$	0			$	223	$	204	$	196
	Philippe Taxi LLC &	Term Loan		10/23/14		10/23/18		1		*			5.25	%	$	0			$	234	$	228	$	196
	Ekny Fils-Aime ## &	Term Loan		10/17/11		10/17/17		1		*			6.50	%	$	0			$	195	$	195	$	195
	P.C. Taxi Corp &	Term Loan		06/13/13		12/13/18		1		*			6.00	%	$	0			$	283	$	279	$	195
	La Belle Joulie LLC	Term Loan		04/14/16		04/14/20		1		*			6.00	%	$	0			$	192	$	192	$	193
	Pachou LLC	Term Loan		09/21/17		09/21/19		1		*			4.50	%	$	0	$	192	$	190	$	190	$	192
	Joseph And Jamar Inc	Term Loan		10/24/14		10/24/18		1		*			4.90	%	$	0			$	191	$	191	$	191
	Dmd Taxi LLC	Term Loan		09/26/13		09/26/19		1		*			5.50	%	$	0			$	191	$	191	$	190
	Mpaul 596 LLC &	Term Loan		04/25/13		04/25/19		1		*			5.50	%	$	0			$	200	$	189	$	189
	Joseph And Alea LLC ##	Term Loan		02/23/15		02/23/19		1		*			5.25	%	$	0			$	189	$	189	$	189
	Boss Carmel Taxi Inc ## &	Term Loan		11/14/13		11/14/17		1		*			5.50	%	$	0			$	186	$	186	$	186
	O.P. Taxi LLC	Term Loan		10/23/14		10/23/18		1		*			5.25	%	$	0			$	186	$	186	$	186

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets		Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Joe And Princess LLC ##	Term Loan		10/12/17		04/12/20		1		*		5.50	%	$	0	$	183	$	183	$	183	$	183
	Chell 11 Corp	Term Loan		07/10/14		07/10/18		1		*		5.25	%	$	0			$	183	$	183	$	183
	Jacob Joseph	Term Loan		04/25/13		04/25/19		1		*		5.50	%	$	0			$	182	$	182	$	181
	Erick Fleuridor	Term Loan		07/19/12		06/11/19		1		*		5.75	%	$	0			$	181	$	181	$	180
	Saintilia Charles	Term Loan		09/18/14		09/18/18		1		*		5.25	%	$	0			$	177	$	177	$	177
	Clermise LLC	Term Loan		09/18/14		09/18/18		1		*		5.25	%	$	0			$	176	$	176	$	176
	Chavensky Cab Inc	Term Loan		12/12/13		12/12/17		1		*		5.00	%	$	0			$	175	$	175	$	175
	Stany Inc	Term Loan		06/23/15		06/11/18		1		*		7.00	%	$	0			$	175	$	175	$	175
	M.K. Taxi Inc	Term Loan		01/23/14		01/23/18		1		*		4.50	%	$	0			$	170	$	170	$	170
	Daniele Taxi LLC ## &	Term Loan		05/15/14		05/15/18		1		*		5.75	%	$	0			$	166	$	166	$	166
	S Gladys Taxi LLC ##	Term Loan		06/12/14		06/12/18		1		*		6.00	%	$	0			$	163	$	163	$	163
	Herve Dameus ##	Term Loan		12/11/14		12/11/18		1		*		5.00	%	$	0			$	162	$	162	$	162
	Nadia Philemon LLC	Term Loan		04/13/17		04/13/20		1		*		6.25	%	$	0	$	163	$	158	$	158	$	160
	Mfc Taxi Corp ##	Term Loan		09/20/11		09/19/19		1		*		6.50	%	$	0			$	160	$	160	$	159
	Erick Fleuridor	Term Loan		10/25/12		10/25/19		1		*		5.50	%	$	0			$	149	$	149	$	149
	Micheline Luxeus ##	Term Loan		12/13/12		12/13/17		1		*		5.50	%	$	0			$	146	$	146	$	146
	Serge Previlon LLC	Term Loan		08/15/13		08/15/18		1		*		5.25	%	$	0			$	146	$	146	$	146
	Cassandra & Joseph Sejour Inc	Term Loan		04/09/10		03/13/18		1		*		4.50	%	$	0			$	145	$	145	$	145
	Just 8 Taxi #2 Inc ##	Term Loan		10/16/15		10/15/18		1		*		7.00	%	$	0			$	136	$	136	$	136
	Evana Destin	Term Loan		10/06/17		09/21/20		1		*		5.50	%	$	0	$	135	$	134	$	134	$	135
	534 Taxi LLC &	Term Loan		08/14/14		08/14/18		1		*		5.25	%	$	0			$	134	$	134	$	134
	Monise Lubintus	Term Loan		12/12/13		12/12/17		1		*		4.50	%	$	0			$	133	$	133	$	133
	A.N.T.K. LLC	Term Loan		04/25/13		04/25/18		1		*		5.50	%	$	0			$	133	$	133	$	133
	Saintvillien & Larochelle LLC	Term Loan		11/14/13		11/14/18		1		*		4.63	%	$	0			$	120	$	120	$	121
	Charata Taxi Inc	Term Loan		12/12/13		12/12/17		1		*		4.50	%	$	0			$	116	$	116	$	116
	Antoines Dortin ##	Term Loan		08/14/14		08/14/18		1		*		5.25	%	$	0			$	116	$	116	$	116
	424 Taxi LLC	Term Loan		08/17/17		08/17/20		1		*		6.00	%	$	0	$	115	$	111	$	111	$	113
	Forward Taxi Corp	Term Loan		05/18/17		05/18/20		1		*		6.00	%	$	0	$	114	$	109	$	109	$	110
	Ahmad Taxi Inc	Term Loan		06/09/11		06/09/19		1		*		6.75	%	$	0			$	111	$	111	$	110
	Pierre Family 084 LLC	Term Loan		07/12/13		07/12/19		1		*		5.50	%	$	0			$	109	$	109	$	108
	Olga Morales	Term Loan		02/18/16		02/18/19		1		*		5.50	%	$	0			$	94	$	94	$	95
	Yves Frantz Philemon	Term Loan		12/11/14		12/11/18		1		*		4.75	%	$	0			$	95	$	95	$	95
	Don Taxi Inc/Mbnk	Term Loan		01/23/14		01/23/18		1		*		6.50	%	$	0			$	92	$	92	$	92
	Mr Clean Sdam Taxi LLC	Term Loan		06/11/15		06/11/18		1		*		6.50	%	$	0			$	84	$	84	$	84
	Charles K Agesilas	Term Loan		08/14/14		08/14/21		1		*		6.50	%	$	0			$	80	$	80	$	81
	Alhayat Taxi Inc	Term Loan		02/14/13		02/07/20		1		*		6.00	%	$	0			$	75	$	75	$	74
	V And C Taxi LLC	Term Loan		05/18/17		05/18/19		1		*		5.25	%	$	0	$	75	$	72	$	72	$	73
	R & Z Trans Service Inc	Term Loan		01/10/13		01/10/23		1		*		5.00	%	$	0			$	72	$	72	$	73
	Cosmos 2 Taxi Corporation ##	Term Loan		11/14/13		11/14/18		1		*		5.00	%	$	0			$	73	$	73	$	73
	Mario P Jean-Louis ## &	Term Loan		12/11/14		12/11/18		1		*		5.00	%	$	0			$	70	$	70	$	70
	Hercule Jean-Baptiste	Term Loan		06/13/13		06/13/22		1		*		5.50	%	$	0			$	71	$	71	$	70
	Pola Trans Inc ##	Term Loan		08/17/17		08/17/20		1		*		5.75	%	$	0	$	70	$	68	$	68	$	69
	Gethsemane Inc	Term Loan		02/20/14		02/20/19		1		*		4.50	%	$	0			$	66	$	66	$	67
	Praise The Lord Taxi Inc	Term Loan		05/14/15		05/14/25		1		*		6.00	%	$	0			$	65	$	65	$	66
	Louibert Julien	Term Loan		06/18/14		06/16/21		1		*		5.50	%	$	0			$	60	$	60	$	61
	Gerald Jean-Louis ## &	Term Loan		04/25/13		04/25/19		1		*		5.50	%	$	0			$	62	$	62	$	61
	0127 Incorporated ##	Term Loan		07/19/12		07/19/20		1		*		6.50	%	$	0			$	57	$	57	$	57
	Ez Come Ez Go Inc	Term Loan		04/16/15		04/16/20		1		*		5.25	%	$	0			$	56	$	56	$	56
	Reyes Okoroagu ##	Term Loan		11/14/13		11/14/20		1		*		4.75	%	$	0			$	40	$	40	$	40
	Fraline Taxi Inc ##	Term Loan		09/18/14		09/18/19		1		*		5.50	%	$	0			$	36	$	36	$	36
	Farar LLC ##	Term Loan		03/13/14		03/13/19		1		*		5.25	%	$	0			$	10	$	10	$	11

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Boston								59		6	%		4.51	%	$	0	$	633	$	18,907	$	18,564	$	18,504
	Chidi Trans Inc &	Term Loan		11/17/14		03/25/16		1		*			5.50	%	$	0			$	1,099	$	1,098	$	1,099
	Johnson Holdings Inc &	Term Loan		04/23/14		03/25/16		1		*			4.50	%	$	0			$	803	$	782	$	783
	Gabriel Trans Holdings Inc &	Term Loan		04/23/14		03/25/16		1		*			4.50	%	$	0			$	701	$	700	$	701
	Giorgio’S Cab Inc ##	Term Loan		09/04/15		08/30/19		1		*			4.25	%	$	0			$	671	$	671	$	671
	Britney Cab Inc, Et Al &	Term Loan		05/18/15		06/09/18		1		*			2.75	%	$	0			$	610	$	549	$	550
	Arinze Trans Inc &	Term Loan		02/05/10		02/07/16		1		*			4.25	%	$	0			$	549	$	549	$	549
	Mish Inc ## &	Term Loan		12/28/12		12/28/16		1		*			4.00	%	$	0			$	556	$	549	$	549
	Southside Enterprises Inc ## &	Term Loan		12/28/12		12/28/16		1		*			4.00	%	$	0			$	554	$	549	$	549
	Arinze Trans Inc ## &	Term Loan		04/22/14		04/22/17		1		*			4.50	%	$	0			$	549	$	549	$	549
	Sasun Cab Inc &	Term Loan		02/20/13		02/01/19		1		*			4.25	%	$	0			$	549	$	549	$	549
	Chiso Trans Inc &	Term Loan		11/26/13		11/07/16		1		*			4.25	%	$	0			$	508	$	508	$	509
	Memory Cab Company Inc ## &	Term Loan		01/14/11		01/14/17		1		*			4.13	%	$	0			$	467	$	467	$	467
	Ngozi Trans Inc. &	Term Loan		12/31/12		12/07/15		1		*			4.50	%	$	0			$	467	$	466	$	466
	Syed Cab Inc	Term Loan		02/27/15		04/27/18		1		*			4.00	%	$	0			$	420	$	420	$	420
	Bailey Cab Inc &	Term Loan		11/09/12		11/17/18		1		*			5.25	%	$	0			$	405	$	405	$	405
	Gladstone Taxi Corp Note A ##	Term Loan		10/04/17		10/05/19		1		*			4.00	%	$	0	$	292	$	292	$	292	$	294
	Louis-Jacques Family Taxi Inc	Term Loan		06/02/17		06/02/19		1		*			3.75	%	$	0	$	292	$	289	$	289	$	291
	Promesse Cab Inc &	Term Loan		09/28/16		09/28/19		1		*			4.25	%	$	0			$	274	$	275	$	277
	Ngozi Trans Inc. &	Term Loan		05/06/15		04/20/17		1		*			5.50	%	$	0			$	275	$	274	$	276
	Baton Moise Cab Inc &	Term Loan		04/14/14		04/14/17		1		*			4.90	%	$	0			$	312	$	274	$	276
	Farb Inc ## &	Term Loan		07/26/16		07/26/18		1		*			4.50	%	$	0			$	274	$	274	$	276
	Ser-Vil Cab Inc &	Term Loan		03/28/14		03/22/17		1		*			4.63	%	$	0			$	323	$	275	$	276
	Beaudrin & Alexandra Taxi Inc &	Term Loan		09/20/16		09/20/19		1		*			3.90	%	$	0			$	274	$	275	$	276
	S.P.B. Taxi Inc &	Term Loan		09/18/13		09/18/16		1		*			5.75	%	$	0			$	284	$	274	$	275
	Amazing Grace Cab Inc &	Term Loan		02/06/14		02/06/17		1		*			4.25	%	$	0			$	298	$	274	$	275
	Tomorrow’S Tree Inc &	Term Loan		10/08/13		10/08/18		1		*			4.25	%	$	0			$	280	$	274	$	275
	Saint Inc &	Term Loan		08/12/13		09/22/18		1		*			4.00	%	$	0			$	313	$	274	$	275
	Benito & Roseline Cab Inc ## &	Term Loan		09/09/15		09/15/18		1		*			4.00	%	$	0			$	362	$	362	$	275
	Ruth Cab Inc &	Term Loan		11/26/13		11/26/18		1		*			4.75	%	$	0			$	278	$	275	$	275
	Jv Taxi Inc &	Term Loan		10/24/14		01/24/18		1		*			5.25	%	$	0			$	280	$	275	$	275
	Urzal Taxi Inc &	Term Loan		07/29/13		07/29/18		1		*			5.25	%	$	0			$	280	$	275	$	275
	Oke Auguste Cab Inc &	Term Loan		01/31/14		01/31/18		1		*			4.00	%	$	0			$	293	$	275	$	275
	Myra Inc &	Term Loan		08/12/13		08/12/16		1		*			5.75	%	$	0			$	284	$	274	$	274
	Djbell Love Inc ## &	Term Loan		09/27/12		09/27/17		1		*			5.00	%	$	0			$	277	$	274	$	274
	God-Will Inc &	Term Loan		02/11/14		02/11/17		1		*			4.25	%	$	0			$	283	$	274	$	274
	Jason Cab Inc &	Term Loan		03/15/13		03/15/18		1		*			4.88	%	$	0			$	280	$	274	$	274
	Good Time Cab Inc ## &	Term Loan		03/20/14		03/20/17		1		*			4.13	%	$	0			$	276	$	274	$	274
	Joyful Ride Inc ## &	Term Loan		12/28/12		12/28/16		1		*			4.00	%	$	0			$	276	$	274	$	274
	God Is Able Inc ## &	Term Loan		02/11/14		02/11/17		1		*			4.00	%	$	0			$	282	$	274	$	274
	P&P Dumerant Corp &	Term Loan		10/25/13		10/25/18		1		*			5.00	%	$	0			$	280	$	274	$	274
	Eldali Transportation Inc &	Term Loan		11/09/12		11/26/18		1		*			4.75	%	$	0			$	275	$	274	$	274
	H And H Taxi Inc ## &	Term Loan		10/11/13		09/11/19		1		*			4.75	%	$	0			$	276	$	274	$	274
	Shemarjamalie Cab Inc &	Term Loan		02/17/12		02/17/18		1		*			6.15	%	$	0			$	281	$	281	$	274
	Jre Taxi Inc ## &	Term Loan		07/25/14		07/25/17		1		*			4.70	%	$	0			$	267	$	268	$	269
	Louine Cab Inc &	Term Loan		09/29/15		09/29/17		1		*			5.25	%	$	0			$	265	$	262	$	262
	Boband Cab Inc ##	Term Loan		11/06/12		03/10/19		1		*			4.25	%	$	0			$	253	$	253	$	253
	Phatricksey Cab Inc ## &	Term Loan		07/14/11		07/14/17		1		*			5.25	%	$	0			$	237	$	237	$	237
	Ngozi Trans Inc. &	Term Loan		12/31/12		12/31/16		1		*			4.50	%	$	0			$	234	$	233	$	233
	Sarhad Coach Inc	Term Loan		07/23/13		05/25/19		1		*			4.50	%	$	0			$	226	$	226	$	226
	Stanley & Rachelle Cab Inc &	Term Loan		05/23/11		05/23/17		1		*			4.25	%	$	0			$	152	$	152	$	152
	Dabola Cab Inc ##	Term Loan		11/10/11		07/10/19		1		*			4.50	%	$	0			$	145	$	145	$	145
	Kena Cab Inc	Term Loan		11/06/12		11/06/25		1		*			4.75	%	$	0			$	56	$	56	$	56
	Gladstone Taxi Corp Note B ##	Term Loan		10/04/17		11/05/22		1		*			4.50	%	$	0	$	25	$	25	$	26	$	28
	Louis-Jacques Family Taxi/Nt B	Term Loan		06/02/17		06/02/22		1		*			4.50	%	$	0	$	24	$	22	$	22	$	24
	Promesse Cab Inc &	Term Loan		09/28/16		09/28/21		1		*			4.50	%	$	0			$	21	$	21	$	23
	Beaudrin & Alexandra Taxi Inc	Term Loan		09/20/16		09/20/21		1		*			4.00	%	$	0			$	16	$	16	$	18
	Benito & Roseline Cab Inc ##	Term Loan		09/09/15		09/09/18		1		*			4.00	%	$	0			$	16	$	16	$	17
	Jv Taxi Inc	Term Loan		04/14/15		04/14/19		1		*			6.00	%	$	0			$	10	$	10	$	11

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)	Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	Sunshine Cab Inc ##	Term Loan		06/12/07		06/12/18		1		*			5.00	%	$	0			$	3	$	3	$	3
Cambridge								13		0	%		4.55	%	$	0	$	0	$	824	$	773	$	693
	Gcf Taxi Inc &	Term Loan		10/08/13		10/08/18		1		*			4.00	%	$	0			$	98	$	98	$	99
	Raad Taxi Inc ## &	Term Loan		05/30/14		05/30/17		1		*			4.50	%	$	0			$	57	$	49	$	51
	Sam Taxi Inc &	Term Loan		03/12/14		03/12/17		1		*			4.50	%	$	0			$	50	$	49	$	50
	Patrick Cab Inc And Saad Inc &	Term Loan		03/29/13		03/29/16		1		*			4.88	%	$	0			$	69	$	49	$	50
	Marcia And Everton Cab Inc &	Term Loan		12/15/15		12/15/16		1		*			3.75	%	$	0			$	53	$	49	$	50
	Eureka Cab Inc &	Term Loan		07/01/14		07/01/17		1		*			4.25	%	$	0			$	49	$	49	$	50
	Desdunes Cab Inc &	Term Loan		09/21/12		10/21/17		1		*			5.00	%	$	0			$	49	$	49	$	49
	Lynn Maha Taxi Inc &	Term Loan		05/13/13		05/13/17		1		*			5.00	%	$	0			$	57	$	49	$	49
	Mgf Taxi Inc &	Term Loan		05/06/11		05/06/17		1		*			4.00	%	$	0			$	49	$	49	$	49
	Walger Inc &	Term Loan		01/26/12		01/26/20		1		*			5.50	%	$	0			$	59	$	49	$	49
	Hope-Lynn Cabworks Inc ## &	Term Loan		03/22/13		03/22/17		1		*			4.00	%	$	0			$	49	$	49	$	49
	Drumman Trans Inc &	Term Loan		12/07/12		12/07/17		1		*			4.50	%	$	0			$	49	$	49	$	49
	Taxi Technology Inc ## &	Term Loan		12/11/13		12/29/17		1		*			5.00	%	$	0			$	136	$	136	$	49
Other								9		0	%		7.95	%	$	0	$	0	$	500	$	482	$	487
	Alexandrite Taxi LLC &	Term Loan		07/30/15		07/30/20		1		*			9.00	%	$	0			$	157	$	157	$	158
	Chametz Taxi LLC &	Term Loan		07/30/15		07/30/20		1		*			9.00	%	$	0			$	104	$	104	$	105
	Tjp Inc ## &	Term Loan		01/03/14		01/03/17		1		*			4.75	%	$	0			$	61	$	61	$	61
	Hantin Trans/Aventura Taxi &	Term Loan		06/16/10		06/16/17		1		*			8.25	%	$	0			$	47	$	47	$	47
	Wiljean Marcelin &	Term Loan		08/21/13		09/01/23		1		*			6.75	%	$	0			$	44	$	38	$	40
	Jean C Mathurin/Norcal &	Term Loan		01/15/13		02/01/18		1		*			8.50	%	$	0			$	49	$	38	$	38
	Zelalem S. Alemu &	Term Loan		04/28/08		04/28/18		1		*			5.00	%	$	0			$	27	$	26	$	26
	Elysse Corporation	Term Loan		09/10/10		11/01/19		1		*			9.00	%	$	0			$	9	$	9	$	9
	Elzira & Luc Cab Inc.	Term Loan		08/17/10		02/17/18		1		*			8.25	%	$	0			$	2	$	2	$	3
Total medallion loans ($183,529 pledged as collateral under borrowing arrangements)								648		73	%		4.41	%	$	1,579	$	12,578	$	231,112	$	228,416	$	208,279
Commercial Loans
Secured mezzanine Secured mezzanine (22% North Carolina, 16% Minnesota, 7% Ohio, 6% Texas, 6% Delaware
6% California, 5% Oklahoma, 5% Oregon, 4% Kansas, 4% North Dakota, 4% Pennsylvania, and 15% all other states) (2)
Manufacturing (37% of the total)	Innovative Metal, Inc. dba Southwest Data Products (interest rate includes PIK interest of 2.00%)	Term Loan		04/06/17		04/06/24		1		2	%		14.00	%	$	0	$	5,000	$	5,000	$	5,000	$	4,980
	Stride Tool Holdings, LLC (interest rate includes PIK interest of 3.00%)	Term Loan		04/05/16		04/05/21		1		1	%		15.00	%	$	217			$	4,217	$	4,217	$	4,179
	AA Plush Holdings, LLC (interest rate includes PIK interest of 6.00%)	Term Loan		08/15/14		08/15/19		1		1	%		14.00	%	$	397			$	3,397	$	3,397	$	3,393
	Pinnacle Products International, Inc. (interest rate includes PIK interest of 3.00%)	Term Loan		10/09/15		10/09/20		1		1	%		15.00	%	$	449			$	3,249	$	3,249	$	3,249
	Liberty Paper Products Acquisition, LLC (interest rate includes PIK interest of 2.00%)	Term Loan		06/09/16		06/09/21		1		1	%		14.00	%	$	101			$	3,096	$	3,096	$	3,096
	EMI Porta Opco, LLC (interest rate includes PIK interest of 1.00%)	Term Loan		12/11/17		03/11/23		1		1	%		13.00	%	$	2	$	3,000	$	3,002	$	3,002	$	3,002
	BB Opco, LLC d/b/a BreathableBaby, LLC (interest rate includes PIK interest of 3.00%)	Term Loan		08/01/14		08/01/19		1		1	%		15.00	%	$	218			$	2,718	$	2,718	$	2,718
	EGC Operating Company, LLC (interest rate includes PIK interest of 1.00%)	Term Loan		09/30/14		09/30/19		1		1	%		13.00	%	$	49			$	1,959	$	1,959	$	1,959
	American Cylinder, Inc. d/b/a All Safe (interest rate includes PIK interest of 7.00%)	Term Loan		07/03/13		09/30/18		1		1	%		19.00	%	$	282			$	1,782	$	1,782	$	1,782
	Tri-Tech Forensics, Inc. (interest rate includes PIK interest of 2.00%)	Term Loan		06/15/17		06/15/22		1		1	%		14.00	%	$	0	$	1,500	$	1,500	$	1,500	$	1,500
	Orchard Holdings, Inc. &	Term Loan		03/10/99		03/31/10		1		*			13.00	%					$	1,390	$	1,390	$	1,390
	Filter Holdings, Inc. (interest rate includes PIK interest of 2.00%)	Term Loan		05/05/17		05/05/22		1		*			14.00	%	$	0	$	1,250	$	1,250	$	1,250	$	1,250
	Quaker Bakery Brands, Inc.	Term Loan		03/28/17		03/28/22		1		*			10.00	%	$	0	$	200	$	200	$	200	$	200
Arts, Entertainment, and Recreation (19% of the total)	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		11/27/17		03/31/20		1		3	%		2.00	%	$	15	$	7,827	$	7,827	$	7,827	$	7,827
	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		06/22/16		03/31/20		1		1	%		2.00	%	$	278			$	2,034	$	2,034	$	2,034
	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		09/14/16		03/31/20		1		*			2.00	%	$	120			$	1,000	$	1,000	$	1,000
	RPAC Racing LLC & (interest rate includes PIK interest of 2.00%)	Term Loan		11/19/10		03/30/20		1		2	%		2.00	%	$	2,572			$	5,611	$	5,611	$	5,611
Professional, Scientific, and Technical Services (18% of the total)	Weather Decision Technologies, Inc. (interest rate includes PIK interest of 9.00%)	Term Loan		12/11/15		12/11/20		1		1	%		18.00	%	$	721			$	4,221	$	4,221	$	4,214
	Weather Decision Technologies, Inc. (interest rate includes PIK interest of 7.00%)	Term Loan		11/08/17		06/30/18		1		*			14.00	%	$	2	$	325	$	327	$	327	$	327
	ADSCO Opco, LLC (interest rate includes PIK interest of 2.00%)	Term Loan		10/25/16		10/25/21		1		1	%		13.00	%	$	87			$	3,687	$	3,687	$	3,677
	Northern Technologies, LLC (interest rate includes PIK interest of 1.00%)	Term Loan		01/29/16		01/29/23		1		1	%		13.00	%	$	70			$	3,670	$	3,670	$	3,670

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
	+	DPIS Engineering, LLC	Term Loan		12/01/14		06/30/20		1		1	%		12.00	%	$	0			$	2,000	$	2,000	$	1,998
	+	Portu-Sunberg Marketing LLC	Term Loan		10/21/16		02/21/22		1		*			12.00	%	$	0			$	1,250	$	1,250	$	1,245
		J.R. Thompson Company LLC (interest rate includes PIK interest of 2.00%)	Term Loan		05/21/15		05/21/22		1		*			14.00	%	$	11			$	1,156	$	1,156	$	1,156
Information (9% of the total)		US Internet Corp.	Term Loan		03/14/17		03/14/22		1		1	%		14.50	%	$	0	$	5,650	$	4,075	$	4,075	$	4,062
		US Internet Corp. (interest rate includes PIK interest of 17.00%)	Term Loan		03/14/17		03/14/22		1		*			19.00	%	$	147	$	1,000	$	1,147	$	1,147	$	1,147
		Centare Holdings, Inc. (interest rate includes PIK interest of 2.00%)	Term Loan		08/30/13		08/30/18		1		1	%		14.00	%	$	0			$	2,500	$	2,500	$	2,497
Wholesale Trade (6% of the total)	+	Classic Brands, LLC	Term Loan		01/08/16		04/30/23		1		1	%		12.00	%	$	0			$	2,880	$	2,880	$	2,880
		Harrell’s Car Wash Systems, Inc. (interest rate includes PIK interest of 3.00%)	Term Loan		07/03/17		09/03/22		1		1	%		15.00	%	$	32	$	2,000	$	2,532	$	2,532	$	2,529
Mining, Quarrying, and Oil and Gas Extraction (5% of the total)		Green Diamond Performance Materials, Inc. (interest rate includes PIK interest of 4.50%)	Term Loan		09/08/17		09/08/24		1		1	%		16.50	%	$	57	$	4,000	$	4,057	$	4,057	$	4,057
Transportation and Warehousing (4% of the total)		LLL Transport, Inc. (interest rate includes PIK interest of 3.00%)	Term Loan		10/23/15		04/23/21		1		1	%		15.00	%	$	410			$	3,914	$	3,914	$	3,912
Construction (2% of the total)		Highland Crossing-M, LLC (interest rate includes PIK interest of 11.50%)	Term Loan		01/07/15		02/01/25		1		1	%		11.50	%					$	1,445	$	1,445	$	1,444
Accommodation and Food Services (0% of the total)		Javier & David Restaurant Corp.	Term Loan		11/05/10		11/05/20		1		*			9.25	%	$	0			$	241	$	241	$	241
Total secured mezzanine (2)									33		31	%		12.09	%	$	6,237	$	31,752	$	88,334	$	88,334	$	88,226
Other secured commercial (51% New York, 42% New Jersey and 7% all other states)
Retail Trade (81% of the total)		Medallion Fine Art Inc (interest rate includes PIK interest of 12%)	Term Loan		12/17/12		03/17/18		1		*			12.00	%	$	0			$	999	$	999	$	999
		La Conga Food Market Inc	Term Loan		12/23/15		12/09/18		1		*			7.00	%	$	0			$	519	$	519	$	518
		Anthony Supermarket LLC	Term Loan		04/02/13		07/02/18		1		*			9.00	%	$	0			$	72	$	72	$	71
		Moderne Barn Wines&Spirits Inc	Term Loan		05/09/13		05/09/18		1		*			4.75	%	$	0			$	13	$	13	$	13
		Drr Enterprises LLC &	Term Loan		10/28/08		10/17/18		1		*			10.50	%	$	0			$	80	$	61	$	—
		Don Marto Minimarket Corp &	Term Loan		03/03/15		03/03/20		1		*			9.00	%	$	0			$	151	$	130	$	—
Accommodation and Food Services (12% of the total)		Bistro Caterers Corporation	Term Loan		07/25/13		07/25/18		1		*			9.00	%	$	0			$	126	$	126	$	125
		El Tropico Family Rest II LLC &	Term Loan		11/29/05		04/18/17		1		*			6.75	%	$	0			$	271	$	180	$	105
		El Mangu Sabroso Restaurant In &	Term Loan		06/06/14		09/06/19		1		*			9.00	%	$	0			$	247	$	238	$	—
Transportation and Warehousing (4% of the total)		Tehran Properties Inc &	Term Loan		03/17/15		09/10/18		1		*			4.25	%	$	0			$	75	$	74	$	75
Real Estate and Rental and Leasing (3% of the total)		Jude Odimegwu Et Al &	Term Loan		03/31/15		03/31/20		1		*			5.00	%	$	0			$	69	$	65	$	56
Total Other Commercial Loans (2)									11		1	%		9.39	%	$	0	$	0	$	2,622	$	2,477	$	1,962
Total commercial loans (2)									44		31	%		12.02	%	$	6,237	$	31,752	$	90,956	$	90,811	$	90,188
Investment in Medallion Bank and other controlled subsidiaries
Commercial Banking		Medallion Bank **	100% of common stock		05/16/02		None		1		101	%		0.00	%	$	0					$	138,282	$	290,548
NASCAR Race Team		Medallion MotorSports, LLC	75% of LLC units		11/24/10		None		1		2	%		42.40	%	$	0					$	2,820	$	4,623
Art Dealer		Medallion Fine Art, Inc.	100% of common stock		12/03/12		None		1		1	%		0.00	%	$	0					$	1,777	$	3,878
Loan Servicing		Medallion Servicing Corp.	100% of common stock		11/05/10		None		1		*			0.00	%	$	0					$	97	$	97
Professional Sports Team		LAX Group LLC	44.97% of membership interests		05/23/12		None		1		1	%		0.00	%	$	0					$	251	$	3,001
Media		Medallion Taxi Media, Inc.	100% of common stock		01/01/17		None		1		*			0.00	%	$	0					$	—	$	0
Investment in Medallion Bank and other controlled subsidiaries, net									6		105	%		0.83	%	$	0	$	0	$	0	$	143,227	$	302,147
Equity investments
Commercial Finance		Convergent Capital, Ltd **	7% of limited partnership interest		07/20/07		None		1		*			0.00	%	$	0					$	733	$	456
NASCAR Race Team		Rpac Racing LLC	1,000 shares of Series D		08/25/15		None		1		1	%		0.00	%	$	0					$	—	$	2,193
Loan Servicing		Upgrade, Inc.	666,668 shares of Series A-1 preferred stock		09/30/16		None		1		1	%		0.00	%	$	0					$	250	$	1,455
Stuffed Toy Manufacturer		AA Plush Holdings, LLC d/b/a Animal Adventures	1.6% Common Units		08/15/14		None		1		*			0.00	%	$	0					$	300	$	300
Advertising Services		ADSCO Opco, LLC	7.9% Class A Series A-2 Units		10/25/16		None		1		*			0.00	%	$	0					$	400	$	400
Baby Sleep Products		BB Opco, LLC d/b/a BreathableBaby, LLC	3.6% Units		08/01/14		None		1		*			0.00	%	$	0					$	250	$	250
IT Services		Centare Holdings, Inc.	7.23% of common stock, 3.88% of preferred stock		08/30/13		None		1		*			0.00	%	$	0					$	103	$	103
Wholesale Hobbyists’ Supplies		Classic Brands, LLC	Warrant for 300,000 Class A units		01/08/16		01/08/26		1		*			0.00	%	$	0					$	—	$	0
Engineering Design Services		DPIS Engineering LLC	Warrant for 180,000 Class C units		12/01/14		5th anniversary of note paid in full		1		*			0.00	%	$	0					$	—	$	0

Medallion Financial Corp.

Consolidated Schedule of Investments

December 31, 2017

(Dollars in thousands)		Obligor Name	Security Type (all restricted unless otherwise noted)	Acquisition Date		Maturity Date		No. of Invest.		% of Net Assets			Interest Rate (1)			Capitalized / Deferred Interest		Original Cost of 2017 Acquisitions (5)		Principal Outstanding		Cost (4)		Fair Value
Elevator Parts Manufacturer		EMI Porta HoldCo, LLC	3.56% of Series A-2 Preferred Units		12/11/17		None		1		*			0.00	%	$	0	$	500			$	500	$	500
Industrial Filters Manufacturer		Filter Holdings, Inc.	7.14% of Common Stock, 7.14% of Preferred Stock		05/05/17		None		2		*			0.00	%	$	0	$	207			$	207	$	207
Specialty Sand Products		Green Diamond Performance Materials, Inc.	4.26% of Series A Preferred Stock		09/08/17		None		1		*			0.00	%	$	0	$	200			$	200	$	200
Car Wash Equipment Manufacturer		Harrell’s Car Wash Systems, Inc.	0.89% of Common Stock		07/03/17		None		1		*			0.00	%	$	0	$	104			$	104	$	104
Sheet Metal Manufacturer		SWDP Acquisition Co., LLC	9.9875% of LLC Units		04/06/17		None		1		*			0.00	%	$	0	$	400			$	400	$	400
Paper Tapes Manufacturer		Liberty Paper Products Acquisition, LLC	100% of Series A Preferred Units—12% TOTAL		06/09/16		None		1		*			0.00	%	$	0					$	350	$	350
Environmental Consulting Services		Northern Technologies, LLC	8.27% of LLC units		01/29/2016, 12/5/16 & 6/12/17		None		3		*			0.00	%	$	0	$	58			$	408	$	408
Food Manufacturer		PACA Foods, LLC	Warrant for 10% of the Company’s Convertible Preferred Shares		12/31/10		02/17/20		1		*			0.00	%	$	0					$	—	$	0
Space Heater Manufacturer		Pinnacle Products International, Inc.	0.5% common stock		10/09/15		None		1		*			0.00	%	$	0					$	135	$	135
Marketing Services		Portu-Sunberg Marketing LLC	0.86% LLC units		10/19/16		None		1		*			0.00	%	$	0					$	50	$	50
		Third Century JRT Inc.	13% common stock		05/21/15		None		1		*			0.00	%	$	0					$	200	$	200
		Portu-Sunberg Marketing LLC	Warrant for 2.85% of the outstanding stock		12/31/12		07/24/20		1		*			0.00	%	$	0					$	—	$	0
Machinery Manufacturer	+	Reel Power International, Inc.	2.65% of common stock		08/04/08		None		1		*			0.00	%	$	0					$	318	$	318
Shelving Manufacturer		Storflex Holdings, Inc.	Warrant for 1.7% of the outstanding stock		07/17/12		02/05/23		1		*			0.00	%	$	0					$	—	$	0
Hand Tool Manufacturer		Stride Tool Holdings, LLC	7.14% of LLC units		04/05/16		None		1		*			0.00	%	$	0					$	500	$	500
Investment Castings		Tech Cast Holdings, LLC	4.14% LLC units		12/12/14		12/12/19		1		*			0.00	%	$	0					$	300	$	300
Forensic Supplies		Tri-Tech Forensics, Inc.	4.91% of Common Stock; 4.61% of Preferred Stock		06/15/17		None		3		*			0.00	%	$	0	$	192			$	192	$	192
Weather Forecasting Services		Weather Decision Technologies, Inc.	2.2% preferred stock		12/11/15		None		1		*			0.00	%	$	0					$	500	$	500
Equity investments, net									32		3	%		0.00	%	$	0	$	1,661	$	0	$	6,400	$	9,521
Investment securities
Investment securities, net									0		0	%		0.00	%	$	0	$	0	$	0	$	—	$	0
Net Investments ($183,529 pledged as collateral under borrowing arrangements) (3)									730		212	%		4.73	%	$	7,816	$	45,991	$	322,068	$	468,854	$	610,135

(1) Represents the actual or weighted average interest or dividend rate of the respective security or portfolio as of the date indicated. Investments without an interest rate or with a rate of 0.00% are considered non-income producing.

(2) Included in secured mezzanine commercial loans and other commercial loans was $6,237 of interest income capitalized into the outstanding investment balances, and $1,579 of deferred interest income, in accordance with the terms of the investment contract.

(3) The ratio of restricted securities fair value to net assets is 212%.

(4) Gross unrealized appreciation, gross unrealized depreciation and net appreciation for federal income tax purposes totaled $220,597, $21,306 and $199,291, respectively. The tax cost of investments was $410,844.

(5) For revolving lines of credit the amount shown is the cost at December 31, 2017.

* Less than 1.0%

** Not an eligible portfolio company as such term is defined in Section 2(a)(46) of the 1940 Act. The percentage value of all non-eligible portfolio companies to totaled assets of Medallion Financial on an unconsolidated basis was up to 59% and up to 48% on a consolidated basis. Under the 1940 Act, we may not acquire any non-qualifying assets, unless at the time such acquisition is made, qualifying assets, which include securities of eligible portfolio companies, represent at least 70% of our total assets. The status of these assets under the 1940 Act are subject to change. We monitor the status of these assets on an ongoing basis.

& Loan is on nonaccrual status, or past due on contractual payments, and is therefore considered non-income producing.

# Publicly traded but sales subject to applicable Rule 144 limitations.

## Pledged as collateral under borrowing arrangements.

+ Includes various warrants, all of which have a cost and fair value of zero at December 31, 2017.

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 11, 2019	Jun. 29, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	MFIN
Entity Registrant Name	MEDALLION FINANCIAL CORP
Entity Central Index Key	0001000209
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		24,433,178
Entity Public Float			$ 111,869,794

XML

Consolidated Balance Sheet - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Assets
Cash			$ 110,233
Investment securities			908,297
Loans			864,819
Loans, at fair value		$ 140,180	338,867
Allowance for losses		(36,395)
Net loans receivable		981,487
Intangible assets, net		53,982
Other assets			58,827
Total assets		1,381,846	1,077,357
Liabilities
Total liabilities			913,127
Stockholders' equity
Total stockholders' equity	[1]		164,230
Total equity		290,204	287,159
Total liabilities and equity			$ 1,077,357
Book value per share/net asset value per share	[2]		$ 11.80
Medallion Bank and Other Controlled Subsidiaries [Member]
Assets
Investment in affiliates	[3]		$ 302,147
Bank Holding Company Accounting [Member]
Assets
Cash	[4]	23,842
Federal funds sold		33,871
Equity investments		9,197
Investment securities		45,324
Loans		1,017,882
Allowance for losses		(36,395)	0	[5]
Net loans receivable		981,487
Accrued interest receivable	[4]	7,413
Property and equipment, net		1,222
Loan collateral in process of foreclosure	[4],[6]	49,495
Goodwill		150,803
Intangible assets, net		53,982
Other assets		25,210
Total assets		1,381,846
Liabilities
Accounts payable and accrued expenses	[4]	18,789
Accrued interest payable	[4]	3,852
Deposits		848,040
Short-term borrowings		55,178
Deferred tax liabilities and other tax payables		6,973
Long-term debt		158,810
Total liabilities		1,091,642
Commitments and contingencies
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 - 27,385,600 shares at December 31, 2018 and 27,294,327 shares at December 31, 2017 issued)		274
Additional paid in capital		274,292
Treasury stock (2,951,243 shares at December 31, 2018 and December 31, 2017)		(24,919)
Accumulated other comprehensive loss		(82)
Retained earnings		13,043
Total stockholders' equity		262,608
Non-controlling interest in consolidated subsidiaries		27,596
Total equity		290,204
Total liabilities and equity		$ 1,381,846
Number of shares outstanding		24,434,357
Book value per share/net asset value per share		$ 10.75
Investment Company Accounting [Member]
Assets
Cash	[4]		12,690
Equity investments, at fair value			5,213
Net investments	[4]		610,135
Accrued interest receivable	[4]		547
Property and equipment, net			235
Investments other than securities			7,450
Other assets			4,465
Total assets			635,522
Liabilities
Accounts payable and accrued expenses	[4]		4,373
Accrued interest payable	[4]		3,831
Deferred tax liabilities and other tax payables			12,536
Funds borrowed	[4]		327,623
Total liabilities			348,363
Commitments and contingencies
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 - 27,385,600 shares at December 31, 2018 and 27,294,327 shares at December 31, 2017 issued)			273
Additional paid in capital			273,716
Treasury stock (2,951,243 shares at December 31, 2018 and December 31, 2017)			(24,919)
Accumulated undistributed net investment loss			(65,592)
Net unrealized appreciation on investments, net of tax			103,681
Total stockholders' equity			287,159
Total equity			287,159
Total liabilities and equity			$ 635,522
Number of shares outstanding			24,343,084
Book value per share/net asset value per share			$ 11.80
Investment Company Accounting [Member] | Affiliated Entity [Member]
Assets
Investment in affiliates			$ 4,308
Investment Company Accounting [Member] | Medallion Bank and Other Controlled Subsidiaries [Member]
Assets
Investment in affiliates			302,147
Investment Company Accounting [Member] | Parent Loan [Member]
Assets
Loans, at fair value			208,279
Investment Company Accounting [Member] | Commercial Loans [Member]
Assets
Loans, at fair value			53,737
Investment Company Accounting [Member] | Commercial Loans to Affiliated Entities [Member]
Assets
Loans, at fair value			999
Investment Company Accounting [Member] | Commercial Loans To Controlled Subsidiaries [Member]
Assets
Loans, at fair value			$ 35,452

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

[2] Includes $0.00 of undistributed net investment income per share as of three months ended March 31, 2018 and December 31, 2017, 2016, 2015 and 2014, and $0.00 of undistributed net realized gains per share for all periods presented.

[3] Includes $152,267 of unrealized appreciation on Medallion Bank in excess of Medallion Bank's book value as of December 31, 2017.

[4] See Note 23 for details of balances related to a consolidated variable interest entity.

[5] Beginning balance for the nine months ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table.

[6] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,134.

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Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Loan collateral in process of foreclosure, financed sales collateral to third parties	$ 3,134
Bank Holding Company Accounting [Member]
Preferred stock, shares authorized	1,000,000
Preferred stock, par value	$ 0.01
Preferred stock, shares outstanding	0
Common stock, shares authorized	50,000,000
Common stock, par value	$ 0.01
Common stock, shares issued	27,385,600
Treasury stock,shares	2,951,243
Investment Company Accounting [Member]
Preferred stock, shares authorized		1,000,000
Preferred stock, par value		$ 0.01
Preferred stock, shares outstanding		0
Common stock, shares authorized		50,000,000
Common stock, par value		$ 0.01
Common stock, shares issued		27,294,327
Treasury stock,shares		2,951,243

XML

Consolidated Statement of Income - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016
Interest and fees on loans		$ 95,080	[1]	$ 1,729
Interest income	[1]	3,287
Medallion lease income	[1]	133
Interest and dividends on investment securities	[1]	1,644
Total interest income/total investment income	[1],[2]	100,836
Interest on deposits	[1]	14,230
Interest on short-term borrowings	[1]	4,441
Interest on long-term debt	[1]	6,145
Interest expense	[1]	3,551
Total interest expense	[1],[3]	28,367
Net interest income (loss)	[1]	72,469
Provision for loan losses	[1]	59,008
Net interest income after provision for loan losses	[1]	13,461
Other income (loss)
Gain on deconsolidation of Trust III	[1],[4]	25,325
Sponsorship and race winnings	[1]	14,368
Gain on sale of loans	[1]	4,946
Writedown of loan collateral in process of foreclosure	[1]	(2,188)
Impairment of equity investments	[1]	(939)
Other income	[1]	494
Total other income	[1]	42,006
Other expenses
Salaries and employee benefits	[1]	21,706
Professional fees	[1]	9,332
Race team related expenses	[1]	7,121
Intangible asset impairment	[1],[4]	5,615
Collection costs	[1]	5,207
Loan servicing fees	[1]	3,470
Rent expense	[1]	2,040
Travel, meals, and entertainment	[1]	1,448
Regulatory fees	[1]	1,703
Amortization of intangible assets	[1]	1,083
Other expenses	[1],[5]	7,464
Total other expenses	[1],[6]	66,189
Loss before income taxes and undistributed earnings of subsidiaries	[1],[6]	(10,722)
Income tax benefit (provision)	[1]	(373)
Net loss after taxes/net investment income (loss) after taxes	[1]	(11,095)
Net realized gains (losses) on investments	[1],[4],[7]	(34,745)
Income tax benefit (provision)	[1]	8,426
Total net realized gains (losses) on investments	[1]	(26,319)
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries	[1]	29,115
Net change in unrealized depreciation on investments other than securities	[1],[4]	(1,915)
Net change in unrealized appreciation (depreciation) on investments	[1]	(4,403)
Income tax (provision) benefit	[1]	(8,122)
Net unrealized appreciation on investments	[1]	14,675
Net realized/unrealized gains (losses) on investments	[1]	(11,644)
Net loss after taxes/net increase (decrease) on net assets resulting from operations	[1],[4]	(22,739)
Less: income attributable to the non-controlling interest	[1]	2,307
Loss before undistributed earnings of subsidiaries	[1]	$ (25,046)
Basic net income (loss) per share		$ (1.03)	[1]	$ 0.01	$ 0.97
Diluted net income (loss) per share		$ (1.03)	[1]	$ 0.01	$ 0.97
Weighted average common shares outstanding
Basic		24,214,978	[1]	23,919,994	24,123,888
Diluted		24,214,978	[1]	24,053,307	24,173,020
Controlled Subsidiary Investment [Member]
Dividend income	[1]	$ 28
Interest income	[1]	10
Affiliate Investment [Member]
Interest income	[1]	$ 654
Investment Company Accounting [Member]
Interest income				$ 14,564	$ 17,654
Medallion lease income				198	538
Dividends and interest income on short-term investments				878	81
Total interest income/total investment income	[2]			19,624	25,088
Interest expense				13,770	12,638
Total interest expense	[3]			13,770	12,638
Net interest income (loss)				5,854	12,450
Net interest income after provision for loan losses				5,854	12,450
Other income (loss)
Other income				107	408
Total other income				107	408
Other expenses
Salaries and employee benefits				7,508	11,770
Professional fees				2,619	2,347
Intangible asset impairment					5,099
Collection costs				316	94
Rent expense				1,069	966
Travel, meals, and entertainment				750	964
Other expenses	[5]			1,548	1,546
Total other expenses	[6]			13,810	22,786
Loss before income taxes and undistributed earnings of subsidiaries	[6]			(7,849)	(9,928)
Income tax benefit (provision)				728	10,047
Net loss after taxes/net investment income (loss) after taxes				(7,121)	119
Net realized gains (losses) on investments	[7]			(43,744)	457
Income tax benefit (provision)				15,955	(384)
Total net realized gains (losses) on investments				(27,789)	73
Net change in unrealized appreciation on Medallion Bank and other controlled subsidiaries				9,483	130,121
Net change in unrealized depreciation on investments other than securities				(2,060)	(28,372)
Net change in unrealized appreciation (depreciation) on investments				8,222	(22,863)
Income tax (provision) benefit				19,543	(55,563)
Net unrealized appreciation on investments				35,188	23,323
Net realized/unrealized gains (losses) on investments				7,399	23,396
Net loss after taxes/net increase (decrease) on net assets resulting from operations				278	23,515
Loss before undistributed earnings of subsidiaries				$ 278	$ 23,515
Basic net income (loss) per share				$ 0.01	$ 0.97
Diluted net income (loss) per share				$ 0.01	0.97
Distributions declared per share					$ 0.35
Weighted average common shares outstanding
Basic				23,919,994	24,123,888
Diluted				24,053,307	24,173,020
Investment Company Accounting [Member] | Controlled Subsidiary Investment [Member]
Dividend income				$ 1,278	$ 3,000
Interest income				165	596
Investment Company Accounting [Member] | Affiliate Investment [Member]
Dividend income					201
Interest income				$ 2,541	$ 3,018

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Included in interest and investment income is $1,869, $2,268 and $2,580 of paid in kind interest for the years ended December 31, 2018, 2017, and 2016.

[3] Average borrowings outstanding were $1,198,124, $334,022, and $380,305, and the related average borrowing costs were 2.37%, 4.12% and 3.32% for the years ended December 31, 2018, 2017, and 2016.

[4] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[5] See Note 15 for the components of other expenses.

[6] Includes $256, $870, and $1,235 of net revenues received from Medallion Bank for the years ended December 31, 2018, 2017, and 2016, primarily for expense reimbursements. See Notes 6 and 13 for additional information.

[7] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018, 2017, and 2016.

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Consolidated Statement of Income (Parenthetical) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest paid in kind		$ 1,869	$ 2,268	$ 2,580
Average borrowings outstanding		$ 1,198,124	$ 334,022	$ 380,305
Average borrowing costs rate		2.37%	4.12%	3.32%
Net Gain/losses on investment securities of affiliated	[1],[2],[3]	$ (34,745)
Affiliated Entity [Member]
Net Gain/losses on investment securities of affiliated		0	$ 0	$ 0
Medallion Bank [Member]
Revenue		$ 256	$ 870	$ 1,235

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[3] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018, 2017, and 2016.

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Consolidated Statements of Other Comprehensive Income (Loss) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net loss after taxes/net increase on net assets resulting from operations	[1],[2]	$ (22,739)
Other comprehensive loss, net of tax	[2]	(82)
Total comprehensive income (loss)	[2]	(22,821)
Less: comprehensive income attributable to the non-controlling interest	[2]	2,307
Total comprehensive income (loss) attributable to Medallion Financial Corp.	[2]	$ (25,128)
Investment Company Accounting [Member]
Net loss after taxes/net increase on net assets resulting from operations			$ 278	$ 23,515
Total comprehensive income (loss)			278	23,515
Total comprehensive income (loss) attributable to Medallion Financial Corp.			$ 278	$ 23,515

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

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Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock [Member]	Preferred Stock [Member]	Capital in Excess of Par [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Investment Company Accounting [Member]	Investment Company Accounting [Member] Accumulated Undistributed Net Investment Loss [Member]	Investment Company Accounting [Member] Accumulated Undistributed Net Realized Gains on Investments [Member]	Investment Company Accounting [Member] Net Unrealized Appreciation on Investment Net of Tax [Member]	Bank Holding Company Accounting [Member]	Bank Holding Company Accounting [Member] Retained Earnings [Member]	Bank Holding Company Accounting [Member] Accumulated Other Comprehensive Income [Member]	Bank Holding Company Accounting [Member] Parent [Member]
Balance at Dec. 31, 2015		$ 278,088
Net loss								$ 23,515
Forfeiture of restricted stock, net, shares								37,202
Ending balance at Dec. 31, 2016		286,096
Ending balance, shares at Dec. 31, 2016								24,024,821
Net loss								$ 278
Forfeiture of restricted stock, net, shares								318,263
Ending balance at Dec. 31, 2017		287,159	$ 273		$ 273,716	$ (24,919)		$ 287,159	$ (65,592)		$ 103,681				$ 287,159
Ending balance, shares at Dec. 31, 2017			27,294,327			(2,951,243)		24,343,084
Net increase(decrease) in net assets resulting from operations		(14,874)							(38,299)		23,425				(14,874)
Net loss		(14,874)
Stock based compensation		152	$ 1		151										152
Forfeiture of restricted stock, net		0	$ 0	$ 0	0	$ 0	$ 0		0	$ 0	0		$ 0	$ 0	0
Forfeiture of restricted stock, net, shares			95,726
Ending balance at Mar. 31, 2018		272,437	$ 274		273,867	$ (24,919)			(103,891)		127,106				272,437
Ending balance, shares at Mar. 31, 2018			27,390,053			(2,951,243)
Balance at Dec. 31, 2017		287,159	$ 273		273,716	$ (24,919)		$ 287,159	(65,592)		103,681				287,159
Balance, shares at Dec. 31, 2017			27,294,327			(2,951,243)		24,343,084
Net loss	[1],[2]	(22,739)
Ending balance at Dec. 31, 2018		290,204	$ 274		274,292	$ (24,919)	27,596					$ 290,204	13,043	(82)	262,608
Ending balance, shares at Dec. 31, 2018			27,385,600			(2,951,243)						24,434,357
Balance at Mar. 31, 2018		272,437	$ 274		273,867	$ (24,919)			(103,891)		127,106				272,437
Balance, shares at Mar. 31, 2018			27,390,053			(2,951,243)
Net loss		(7,865)					2,307						(10,172)		(10,172)
Distributions to non-controlling interest		(1,776)					(1,776)
Stock based compensation		425			425										425
Forfeiture of restricted stock, net		0	$ 0	$ 0	0	$ 0	0		0	$ 0	0		0	0	0
Forfeiture of restricted stock, net, shares			(4,453,000)
Net change in unrealized losses on investments, net of tax		(82)												(82)	(82)
Ending balance at Dec. 31, 2018		290,204	$ 274		274,292	$ (24,919)	27,596					$ 290,204	13,043	$ (82)	262,608
Ending balance, shares at Dec. 31, 2018			27,385,600			(2,951,243)						24,434,357
Adoption of Bank Holding Company Accounting									$ 103,891		$ (127,106)		23,215
Balance after adoption of Bank Holding Company Accounting		$ 299,502	$ 274		$ 273,867	$ (24,919)	$ 27,065						$ 23,215		$ 272,437

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

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Consolidated Statements of Changes In Net Assets - USD ($)		12 Months Ended
		Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
Net investment income (loss) after income taxes	[1]	$ (11,095,000)
Net realized gains (losses) on investments, net of tax	[1]	(26,319,000)
Net unrealized depreciation on investments, net of tax	[1]	14,675,000
Net increase in net assets resulting from operations		(25,046,000)		$ 278,000		$ 23,515,000
Stock-based compensation expense	[2]	576,000
Capital share activity
Exercise of stock options	[3]					2,100
Investment Company Accounting [Member]
Net investment income (loss) after income taxes				(7,121,000)		$ 119,000
Net realized gains (losses) on investments, net of tax				(27,789,000)		73,000
Net unrealized depreciation on investments, net of tax				35,188,000		23,323,000
Net increase in net assets resulting from operations				278		23,515
Investment income, net						(14,570,000)
Return of capital				0		0
Realized gains from investment transactions, net				0		0
Distributions to shareholders	[4]					(14,570,000)
Stock-based compensation expense				785,000		568,000
Exercise of stock options						19,000
Treasury stock acquired						(1,524,000)
Capital share transactions				785,000		(937,000)
Total increase in net assets				1,063,000		8,008,000
Net assets at the beginning of the period		$ 287,159,000	[5]	286,096,000	[5]	278,088,000
Net assets at the end of the period	[5]			$ 287,159,000		$ 286,096,000
Capital share activity
Capital share activity Common stock issued, beginning of period		27,294,327		26,976,064		26,936,762
Exercise of stock options						2,100
Issuance of restricted stock, net				318,263		37,202
Common stock issued, end of period				27,294,327		26,976,064
Treasury stock, beginning of period		(2,951,243)		(2,951,243)		(2,590,069)
Treasury stock acquired						(361,174)
Treasury stock, end of period				(2,951,243)		(2,951,243)
Common stock outstanding				24,343,084		24,024,821

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[3] The aggregate intrinsic value, 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 $0, $0, and $0 for 2018, 2017, and 2016.

[4] Distributions declared were $0.00 and $0.35, per share for the years ended December 31, 2017 and 2016.

[5] Includes $0 and $0 of undistributed net investment income and $0 and $0 of undistributed net realized gains on investments, and $0 and $0 of capital loss carryforwards at December 31, 2017 and 2016.

XML

Consolidated Statements of Changes In Net Assets (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Distributions declared Per share		$ 0.60
Undistributed net investment income		$ 0.60
Investment Company Accounting [Member]
Distributions declared Per share	$ 0.00	$ 0.35
Undistributed net investment income	$ 0	$ 0
Undistributed net realized gains on investments	0	0
Capital Loss carryforwards	$ 0	$ 0

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss/net increase in net assets resulting from operations	[1],[2]	$ (22,739)
Adjustments to reconcile net loss/net increase in net assets resulting from operations to net cash provided by operating activities:
Provision for loan losses	[2]	59,008
Loans originated	[2]	(8,193)
Proceeds from principal receipts, sales, and maturities of loans	[2],[3]	13,279
Paid-in-kind interest	[2]	(1,869)
Depreciation and amortization	[2]	5,564
Decrease/increase (decrease) in deferred and other tax asset/liabilities, net	[2]	13,637
Amortization (accretion) of origination fees, net		3,132	[2]	$ 68		$ 49
Proceeds from the sale of loan collateral in process of foreclosure	[2]	11,593
Net change in loan collateral in process of foreclosure	[2]	9,926
Capital returned by (investment in) Medallion Bank and other controlled subsidiaries, net	[2]	93
Net realized gains on sale of investments	[2]	(5,921)
Net change in unrealized (appreciation) depreciation on investments	[2]	6,457
Net change in unrealized depreciation on investment other than securities	[1],[2]	1,915
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries	[2]	(29,115)
Net realized (gains) losses on investments	[1],[2],[4]	34,745
Gain on deconsolidation of Trust III	[1],[2]	(25,325)
Intangible asset impairment	[1],[2]	5,615
Stock-based compensation expense	[2]	576
Decrease in accrued interest receivable	[2]	797
Increase in other liabilities	[2]	4,196
Decrease in other assets	[2]	1,309
Increase (decrease) in accounts payable and accrued expenses	[2]	(675)
Increase in accrued interest payable	[2]	139
Net cash provided by operating activities	[2]	78,144
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated	[2]	(333,740)
Proceeds from principal receipts, sales, and maturities of loans	[2]	302,409
Purchases of investments	[2]	(10,376)
Proceeds from principal receipts, sales, and maturities of investments	[2]	6,417
Net cash used for investing activities	[2]	(35,290)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed	[2]	364,139
Repayments of time deposits and funds borrowed	[2]	(389,951)
Purchase of federal funds	[2]	8,000
Repayments of federal funds	[2]	(8,000)
Distributions to non-controlling interests	[2]	(1,776)
Payments of declared distributions	[2]	(66)
Net cash used for financing activities	[2]	(27,654)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	[2]	15,200
Cash and cash equivalents, beginning of period	[2],[5]	42,513
Cash and cash equivalents, end of period	[2]	57,713	[6]	42,513	[5]
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest	[2]	25,102
Cash paid during the period for income taxes	[2]	85
Deposit				110,233
Medallion Bank [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss/net increase in net assets resulting from operations				56,408		68,045
Adjustments to reconcile net loss/net increase in net assets resulting from operations to net cash provided by operating activities:
Amortization (accretion) of origination fees, net		(3,993)		(3,581)		(3,440)
SUPPLEMENTAL INFORMATION
Deposit		100
Investment Company Accounting [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss/net increase in net assets resulting from operations				278		23,515
Adjustments to reconcile net loss/net increase in net assets resulting from operations to net cash provided by operating activities:
Loans originated				(29,131)		(324,753)
Proceeds from principal receipts, sales, and maturities of loans	[3]			46,755		393,104
Paid-in-kind interest				(2,268)		(2,580)
Depreciation and amortization				1,019		485
Decrease/increase (decrease) in deferred and other tax asset/liabilities, net				(33,364)		45,900
Amortization (accretion) of origination fees, net				68		(49)
Capital returned by (investment in) Medallion Bank and other controlled subsidiaries, net				696		(3,326)
Net change in unrealized (appreciation) depreciation on investments				(8,222)		22,863
Net change in unrealized depreciation on investment other than securities				2,060		28,372
Increase in unrealized appreciation on Medallion Bank and other controlled subsidiaries				(9,483)		(130,121)
Net realized (gains) losses on investments	[4]			43,744		(457)
Intangible asset impairment						5,099
Stock-based compensation expense				785		568
Decrease in accrued interest receivable				222		234
Decrease in other assets				122		804
Increase (decrease) in accounts payable and accrued expenses				(907)		353
Increase in accrued interest payable				949		1,580
Net cash provided by operating activities				13,323		61,591
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from time deposits and funds borrowed						294,650
Repayments of time deposits and funds borrowed				(21,450)		(350,116)
Proceeds from exercise of stock options						19
Purchase of treasury stock						(1,524)
Payments of declared distributions				(145)		(14,570)
Net cash used for financing activities				(21,595)		(71,541)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	[2]			(8,272)		(9,950)
Cash and cash equivalents, beginning of period		12,690	[6]	20,962	[5],[6]	30,912	[5]
Cash and cash equivalents, end of period	[6]			12,690		20,962	[5]
SUPPLEMENTAL INFORMATION
Cash paid during the period for interest				11,897		$ 10,682
Cash paid during the period for income taxes				62
Deposit	[7]			$ 12,690
Previously Unconsolidated Subsidiaries [Member]
SUPPLEMENTAL INFORMATION
Cash, cash equivalents and federal funds sold		$ 29,923

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[3] Originated investments of $280,563 and maturities or proceeds from sales of $330,466 related to the investment securities portfolio for the year ended December 31, 2016.

[4] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018, 2017, and 2016.

[5] Included in the beginning balance for the year ended December 31, 2018 was $29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank.

[6] Includes federal funds sold at December 31, 2018.

[7] See Note 23 for details of balances related to a consolidated variable interest entity.

XML

Organization of Medallion Financial Corp. and its Subsidiaries

12 Months Ended

Dec. 31, 2018

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. (the Company) is a 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 (the Bank), a Federal Deposit Insurance Corporation (FDIC) insured industrial bank, that originates consumer loans, raises deposits, and conducts other banking activities. Medallion 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. Medallion Bank was initially formed for the primary purpose of originating commercial loans in three categories: 1) loans to finance the purchase of taxicab medallions, 2) asset-based commercial loans, and 3) SBA 7(a) loans. The loans are marketed and serviced by Medallion Bank’s affiliates that have extensive prior experience in these asset groups. Subsequent to its formation, Medallion Bank began originating consumer loans to finance the purchases of recreational vehicles (RVs), boats, and other related items, and to finance small scale home improvements. The Company also conducts business through Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC) which originates and services taxicab medallion and commercial loans.

The Company also conducts business through its subsidiaries Medallion Capital, Inc. (MCI), an SBIC which conducts a mezzanine financing business, and Freshstart Venture Capital Corp. (FSVC), an SBIC which originates and services taxicab medallion and commercial loans. MFC, MCI, and FSVC, as SBICs, are regulated by the Small Business Administration (SBA). MCI and FSVC are financed in part by the SBA.

The Company has a controlling ownership stake in Medallion Motorsports, LLC, the primary owner of RPAC Racing, LLC (RPAC), a professional car racing team that competes in the Monster Energy NASCAR Cup Series, which is also consolidated with the Company.

The Company formed a wholly-owned subsidiary, Medallion Servicing Corporation (MSC), to provide loan services to Medallion Bank. The Company has assigned all of its loan servicing rights for Medallion Bank, which consists of servicing taxi medallion loans originated by Medallion Bank, to MSC, which bills and collects the related service fee income from Medallion Bank, and is allocated and charged by the Company for MSC’s share of these servicing costs.

Taxi Medallion Loan Trust III (Trust III) was established for the purpose of owning medallion loans originated by MFC or others. Trust III is a variable interest entity (VIE), and MFC was the primary beneficiary and as a result the Company consolidated Trust III in its financial results until consummation of a restructuring in the 2018 fourth quarter. For a discussion of the restructuring, see Note 23. Trust III is a separate legal and corporate entity with its own creditors which, in any liquidation of Trust III, will be entitled to be satisfied out of Trust III’s assets prior to any value in Trust III becoming available to Trust III’s equity holders. The assets of Trust III 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 Trust III. Trust III’s loans are serviced by MFC.

The Company established a wholly-owned subsidiary, Medallion Financing Trust I (Fin Trust) for the purpose of issuing unsecured 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 $36,141,000 at December 31, 2018, 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.

MFC, through several wholly-owned subsidiaries (together, Medallion Chicago), purchased $8,689,000 of City of Chicago taxicab medallions out of foreclosure, which are leased to fleet operators while being held for sale. The 159 medallions are carried at a net realizable value of $4,305,000 on the Company’s consolidated balance sheet at December 31, 2018 compared to fair value of $7,450,000 at December 31, 2017.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act). Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of Medallion Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (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 loans 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act, effective April 2, 2018, Medallion Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018. See Note 6 for the presentation of financial information for Medallion Bank and other controlled subsidiaries for such prior periods.

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.

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.

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (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 18 and 19 to the consolidated financial statements.

Equity Investments

Equity investments of $9,197,000 at December 31, 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry. Included in the equity investments were non-marketable securities of $9,521,000 at December 31, 2017.

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments–Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and 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 $154,000, and $80,000 was amortized to interest income for the nine months ended December 31, 2018. Medallion Bank, a previously unconsolidated subsidiary under Investment Company Accounting for the period, had net premium on investment securities of $265,000 as of December 31, 2017, and $81,000 and $82,000 was amortized to interest income for the years ended December 31, 2017 and 2016. Refer to Note 3 for more details. 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 financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of shareholders’ 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 shareholder’s equity, which were recorded net of the income tax effect, will be reversed.

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in Medallion Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that Medallion Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in Medallion Bank and its portfolio assets at values in excess of their book value. Expression of interest in Medallion Bank from both investment bankers and interested parties has continued. The Company incorporated these new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the 2018 first quarter. Refer to Note 6 for additional details.

At December 31, 2017, there were non-marketable securities of $302,147,000 related to portfolio investments in controlled subsidiaries that were not consolidated with the Company. Because of the inherent uncertainty of valuations, the Board of Directors’ estimates of the values of the investments may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

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 is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2018 and December 31, 2017, net loan origination costs were $14,416,000 and $90,000 ($11,183,000 when combined with Medallion Bank). The 2018 amount reflects the amount of origination costs that were netted into the loan balances at April 2, 2018. Net amortization (accretion) to income for the years ended December 31, 2018, 2017 and 2016 was $3,128,000 ($3,993,000 when combined with Medallion Bank), $68,000 ($3,581,000 when combined with Medallion Bank), and ($49,000) ($3,440,000 when combined with Medallion Bank).

Interest income is recorded on the accrual basis. Taxicab 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 portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable 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 impaired. These 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 collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreational consumer 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 to write 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 a recovery. Total loans more than 90 days past due were $20,154,000 at December 31, 2018, or 2.03% of the total loan portfolio, compared to $60,450,000, or 18.9% at December 31, 2017.

Loan collateral in process of foreclosure primarily includes taxicab 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. The taxicab medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company had $40,500,000 and $183,529,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2018 and December 31, 2017.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $140,180,000 at December 31, 2018 and $338,867,000 at December 31, 2017, which included $311,988,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and Medallion Bank, and determined that no material servicing asset or liability existed as of December 31, 2018 and 2017. The Company assigned its servicing rights of the Medallion Bank portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from Medallion Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $5,708,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Unrealized appreciation on investments was $139,700,000 as of December 31, 2017. Refer to Note 5 for additional details.

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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of December 31, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $53,982,000, and recognized $1,083,000 of amortization expense on the intangible assets for the year then ended (at a rate of $361,000 per quarter for three quarters). The Company engaged an expert to assess the goodwill and intangibles for impairment, who concluded there was no impairment on Medallion Bank and impairment on the RPAC intangible asset was $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the initial fair value detail inclusive of the goodwill and intangible assets related to the Bank as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
Medallion Bank
Assets
Net loans (1)			$	890,000
Other assets				130,393
Liabilities
Funds borrowed and other liabilities				(853,650	)
Total fair value excluding goodwill and intangibles				166,743
Goodwill				150,803
Intangibles				28,900
Total fair value (2)	$	346,446	$	346,446

(1) Includes $12,387 of premiums associated with the loan portfolio.

(2) Includes $26,303 of preferred stock held by the U.S. Treasury. See Note 21 for details.

The table below shows the initial fair value detail inclusive of the intangible assets related to RPAC as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
RPAC
Assets
Cash			$	1,647
Net fixed assets				774
Race cars and parts, net				203
Race cars held for sale				916
Other assets				1,902
Liabilities
Deferred revenue				(6,531	)
Notes payable (1)				(27,220	)
Other liabilities				(2,275	)
Total fair value excluding goodwill and intangibles				(30,584	)
Intangibles (2)				31,779
Total fair value (3)	$	1,195	$	1,195

(1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018.

(2) As of December 31, 2018 an assessment of the intangible asset resulted in impairment of $5,615 based upon the analysis of current market conditions using discounted cash flows.

(3) Fair value as of March 31, 2018 represents the Company’s investment in RPAC series D units.

The table below shows the details of the intangible assets as of December 31, 2018.

(in thousands)	December 31, 2018
Brand- related intellectual property	$	21,176
Home improvement contractor relationships		6,641
Race organization		26,165
Total intangible assets	$	53,982

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 $422,000, $94,000 ($232,000 had Medallion Bank been consolidated), and $110,000 ($225,000 had Medallion Bank been consolidated) for the years ended December 31, 2018, 2017, and 2016.

Deferred Costs

Deferred financing costs, included in other assets, represents costs associated with obtaining the Company’s borrowing facilities, and is amortized on a straight line basis over the lives of the related financing agreements. Amortization expense was $1,864,000, $925,000 ($2,255,000 had Medallion Bank been consolidated), and $722,000 ($2,091,000 had Medallion Bank been consolidated) for the years ended December 31, 2018, 2017, and 2016, recorded as interest expense. 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 amounts on the Company’s balance sheet for all of these purposes were $4,461,000 and $3,070,000 ($5,011,000 had Medallion Bank been consolidated) at December 31, 2018 and 2017.

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. 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.

Sponsorship and Race Winnings

The Company accounts for the sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized based upon the contract terms and only over the course of the whole season, will revenue be recognized evenly throughout the ten months. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver.

Earnings (Loss) Per Share (EPS)

Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common shareholders 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 giving consideration to 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.

	Years Ended December 31,
(Dollars in thousands)	2018			2017		2016
Net (loss)/net increase in net assets resulting from operations available to common shareholders	$	(25,046	)	$	278	$	23,515
Weighted average common shares outstanding applicable to basic EPS		24,214,978			23,919,994		24,123,888
Effect of dilutive stock options		—			439		230
Effect of restricted stock grants		—			132,874		48,902
Adjusted weighted average common shares outstanding applicable to diluted EPS		24,214,978			24,053,307		24,173,020
Basic earnings (loss) per share	$	(1.03	)	$	0.01	$	0.97
Diluted earnings (loss) per share		(1.03	)		0.01		0.97

Potentially dilutive common shares excluded from the above calculations aggregated 100,000, 366,245, and 346,232 shares as of December 31, 2018, 2017, and 2016.

Stock Compensation

The Company follows FASB ASC Topic 718 (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 is reflected in net increase in net income/net assets 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/net increase net assets 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 2018, 2017, and 2016, the Company issued 101,010, 327,251, and 48,527 restricted shares of stock-based compensation awards, and issued 39,000, 29,666, and 12,000 shares of other stock-based compensation awards, and recognized $576,000, $785,000, and $568,000, or $0.02, $0.03, and $0.02 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2018, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $244,000, which is expected to be recognized over the next 10 quarters (see Note 9).

Regulatory Capital

Medallion 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 Medallion 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, Medallion Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with 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%, which would preclude their ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2018, the Bank’s Tier 1 leverage ratio was 15.85%. 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			December 31, 2018			December 31, 2017
Common equity Tier 1 capital		—			—		$	141,608		$	137,494
Tier 1 capital		—			—			167,911			163,797
Total capital		—			—			180,917			176,876
Average assets		—			—			1,059,461			1,127,087
Risk-weighted assets		—			—			993,374			995,145
Leverage ratio (1)		4.0	%		5.0	%		15.8	%		14.5	%
Common equity Tier 1 capital ratio (2)		4.5			6.5			14.3			13.8
Tier 1 capital ratio (3)		6.0			8.0			16.9			16.5
Total capital ratio (3)		8.0			10.0			18.2			17.8

(1) Calculated by dividing Tier 1 capital by average assets.

(2) Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.

(3) Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, commencing January 1, 2019, the Bank is required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%.

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as it relates to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. The aftermath of the global economic crisis and the delayed recognition of credit losses associated with loans (and other financial instruments) was identified as a weakness in the application of existing accounting standards. Specifically, because the existing “incurred” loss model delays recognition until it is probable a credit loss was incurred, the FASB explored alternatives that would use more forward-looking information. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities and is effective for fiscal years beginning after December 15, 2020 for all other entities, with early adoption permitted. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a significant impact on how the Company will account for estimated credit losses on its loans.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating under GAAP. ASU 2016-02 applies to all entities and is effective for fiscal years beginning after December 15, 2018 for public entities. The Company has assessed the impact the update will have on its financial condition and determined that effective January 1, 2019, a right-of-use asset and lease liability each of $13,997,000 would be recorded, and accrued/amortized over the remaining lease life terms. See Note 12 for additional information.

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

12 Months Ended

Dec. 31, 2018

Investments Schedule [Abstract]

Investment Securities

(3) INVESTMENT SECURITIES (Bank Holding Company Accounting)

Fixed maturity securities available for sale at December 31, 2018 consisted of the following:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	32,184	$	15	$	(742	)	$	31,457
State and municipalities		14,239		35		(407	)		13,867
Total	$	46,423	$	50	$	(1,149	)	$	45,324

The amortized cost and estimated market value of investment securities as of December 31, 2018 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.

(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	26	$	26
Due after one year through five years		9,040		8,834
Due after five years through ten years		11,487		11,218
Due after ten years		25,870		25,246
Total	$	46,423	$	45,324

Information pertaining to securities with gross unrealized losses at December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

	Less than Twelve Months					Twelve Months and Over
(Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	(54	)	$	4,616	$	(688	)	$	24,871
State and municipalities		(78	)		5,429		(329	)		6,259
Total	$	(132	)	$	10,045	$	(1,017	)	$	31,130

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

As of December 31, 2017, under Investment Company Accounting, investment securities made up 0% of the net investments.

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Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

Loans and Allowance for Loan Losses

(4) LOANS AND ALLOWANCE FOR LOAN LOSSES (Bank Holding Company Accounting)

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2018.

(Dollars in thousands)	Amount			As a Percent of Gross Loans
Recreation	$	587,038			58	%
Home improvement		183,155			18
Commercial		64,083			6
Medallion		183,606			18
Total gross loans		1,017,882			100	%
Allowance for loan losses		(36,395	)
Total net loans	$	981,487

The following table sets forth the activity in the allowance for loan losses for the nine months ended December 31, 2018.

(Dollars in thousands)	Nine Months Ended December 31, 2018
Allowance for loan losses – beginning balance (1)	$	—
Charge-offs
Recreation		(12,697	)
Home improvement		(1,562	)
Commercial		—
Medallion		(14,277	)
Total charge-offs		(28,536	)
Recoveries
Recreation		4,437
Home improvement		905
Commercial		4
Medallion		577
Total recoveries		5,923
Net charge-offs		(22,613	)(2)
Provision for loan losses (3)		59,008
Allowance for loan losses – ending balance	$	36,395

(1) Beginning balance for the nine months ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances, resulting in a starting point of zero for this table.

(2) As of December 31, 2018, cumulative charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $215,789, representing collection opportunities for the Company.

(3) Includes $5,708 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 16% of the total allowance, and 3.54% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018.

The following table sets forth the composition of the allowance for loan losses by type as of December 31, 2018.

(Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home Improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

	Bank Holding Company Accounting		Investment Company Accounting
(Dollars in thousands)	December 31, 2018		December 31, 2017 (1)		December 31, 2016 (2)
Total nonaccrual loans	$	34,877	$	98,494	$	77,161
Interest foregone for the year		1,153		823		1,317
Amount of foregone interest applied to principal for the year		535		52		638
Interest foregone life-to-date		1,952		12,485		10,658
Amount of foregone interest applied to principal life-to-date		1,214		3,495		7,834
Percentage of nonaccrual loans to gross loan portfolio		3%		31%		20%

(1) Does not include Medallion Bank nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

(2) Does not include Medallion Bank nonaccrual loans of $52,020, interest income foregone for the year of $683 and foregone interest paid and applied to principal for the year of $402, interest income foregone life-to-date of $1,034 and foregone interest paid and applied to principal life-to-date of $520.

The following presents our performance status of loans as of December 31, 2018 under Bank Holding Company Accounting.

(Dollars in  thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	581,250	$	5,788	$	587,038		0.99	%
Home improvement		183,018		137		183,155		0.07
Commercial		60,249		3,834		64,083		5.98
Medallion		158,488		25,118		183,606		13.68
Total	$	983,005	$	34,877	$	1,017,882		3.43	%

For those loans aged 31-90 days, 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 table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2018 under Bank Holding Company Accounting, all of which had an allowance recorded against the principal balance.

	December 31, 2018						Nine Months Ended December 31, 2018
(Dollars in  thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment Recorded		Interest Income (Expense) Recognized
With an allowance recorded
Recreation	$	5,788	$	5,788	$	204	$	6,165	$	357
Home improvement		137		137		3		137		—
Commercial		3,834		3,929		—		6,036		(12)
Medallion		25,118		26,237		22,035		46,176		482
Total with allowance	$	34,877	$	36,091	$	22,242	$	58,514	$	827
Total nonperforming loans	$	34,877	$	36,091	$	22,242	$	58,514	$	827

The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2017 under Investment Company Accounting.

(Dollars in  thousands)	Recorded Investment (1) (2)		Unpaid Principal Balance		Average Recorded Investment
December 31, 2017
Medallion (3)	$	79,871	$	82,612	$	128,671
Commercial (3)		18,623		20,491		18,792

(1) As of December 31, 2017, $20,851 of unrealized depreciation was recorded as a valuation allowance on these loans.

(2) Interest income of $1,729 was recognized on loans for the year ended December 31, 2017.

(3) Included in the unpaid principal balance is unearned paid-in-kind interest on nonaccrual loans of $4,609 as of December 31, 2017, which is included in the nonaccrual disclosures on page F-25.

The following tables show the aging of all loans as of December 31, 2018 and December 31, 2017.

Bank Holding Company Accounting	Days Past Due												Recorded Investment > 90 Days and Accruing
December 31, 2018 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)
Recreation	$	18,483	$	5,655	$	4,020	$	28,158	$	539,051	$	567,209	$	—
Home improvement		715		283		135		1,133		184,528		185,661		—
Commercial		—		454		279		733		63,350		64,083		—
Medallion		8,689		3,652		15,720		28,061		148,774		176,835		—
Total	$	27,887	$	10,044	$	20,154	$	58,085	$	935,703	$	993,788	$	—

(1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

Investment Company Accounting	Days Past Due												Recorded Investment > 90 Days and Accruing
December 31, 2017 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total
Medallion loans	$	16,049	$	12,387	$	59,701	$	88,137	$	140,279	$	228,416	$	265
Commercial loans
Secured mezzanine		—		—		—		—		88,334		88,334		—
Other secured commercial		—		—		749		749		1,728		2,477		—
Total commercial loans		—		—		749		749		90,062		90,811		—
Total	$	16,049	$	12,387	$	60,450	$	88,886	$	230,341	$	319,227	$	265

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2018.

(Dollars in  thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans		11	$	5,581	$	5,581

During the year ended December 31, 2018, one loan modified as troubled debt restructurings were in default and had an investment value of $218,000 as of December 31, 2018, net of $71,000 of an allowance for loan loss under Bank Holding Company Accounting.

The following table shows troubled debt restructurings which the Company entered into during the year ended December 31, 2017.

(Dollars in thousands)	Number of Loans		Pre-Modification Investment		Post- Modification Investment
Medallion loans		63	$	39,898	$	39,824
Commercial loans		2		6,547		6,547
Total		65	$	46,445	$	46,371

During the year ended December 31, 2017, sixteen loans modified as troubled debt restructurings were in default and had an investment value of $4,248,000 as of December 31, 2017, net of $1,956,000 of unrealized depreciation.

The following table shows the activity of the loans in process of foreclosure, which relates only to the recreation and medallions loans, for the nine months ended December 31, 2018.

(Dollars in thousands)	Recreation			Medallions			Total
Loans in process of foreclosure – beginning balance (1)	$	1,369		$	51,479		$	52,848
Transfer from loans		9,289			25,369			34,658
Loan in process of foreclosure sales		(451	)		(2,533	)		(2,984	)
Principal payments		—			(4,275	)		(4,275	)
Collateral adjustment		(4,350	)		(4,122	)		(8,472	)
Liquidation		(4,354	)		(62	)		(4,416	)
Deconsolidation of Trust III		—			(17,864	)		(17,864	)
Total	$	1,503		$	47,992		$	49,495

(1) Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

12 Months Ended

Dec. 31, 2018

Schedule of Investments [Abstract]

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments

(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 years ended December 31, 2017 and 2016.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investment Securities			Investments Other Than Securities			Total
Balance December 31, 2015	$	(3,438	)	$	(2,239	)	$	18,640	$	2,582		$	(18	)	$	28,956		$	44,483
Net change in unrealized
Appreciation on investments		—			—			133,805		2,979			7			(28,372	)		108,419
Depreciation on investments		(28,028	)		318			305		—			5			—			(27,400	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(1,627	)		—			—			(1,627	)
Losses on investments		2,943			543			—		—			12			—			3,498
Other		—			—			—		—			(6	)		—			(6	)
Balance December 31, 2016		(28,523	)		(1,378	)		152,750		3,934			—			584			127,367
Net change in unrealized
Appreciation on investments		—			—			6,170		2,060			—			(821	)		7,409
Depreciation on investments		(37,335	)		(410	)		—		(277	)		—			(1,253	)		(39,275	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(3,082	)		—			—			(3,082	)
Losses on investments		45,520			1,275			—		486			—			—			47,281
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

The table below summarizes pre-tax components of unrealized and realized gains and losses in the investment portfolio for the periods indicated under Investment Company Accounting.

	Three Months Ended March 31, 2018			Years Ended December 31,
(Dollars in thousands)				2017			2016
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	$	(998	)	$	2,060		$	2,986
Unrealized depreciation		(38,152	)		(38,022	)		(27,705	)
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		29,115			9,483			130,121
Realized gains		—			(3,082	)		(1,627	)
Realized losses		34,747			47,281			3,498
Net unrealized losses on investments other than securities and other assets		(1,915	)		(2,075	)		(28,387	)
Total	$	22,797		$	15,645		$	78,886
Net realized gains (losses) on investments
Realized gains	$	—		$	3,082		$	—
Realized losses		(34,747	)		(47,281	)		(3,486	)
Other gains		—			4,684			4,140
Direct charge-offs		2			(4,229	)		(197	)
Total	$	(34,745	)	$	(43,744	)	$	457

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Investments in Medallion Bank and Other Controlled Subsidiaries

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

Investments in Medallion Bank and Other Controlled Subsidiaries

(6) INVESTMENTS IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES

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 years ended December 31, 2017 and 2016.

(Dollars in thousands)	2017			2016
Statement of comprehensive income
Investment income	$	111,281		$	103,454
Interest expense		13,869			11,762
Net interest income		97,412			91,692
Noninterest income		121			308
Operating expenses (1)		26,032			24,281
Net investment income before income taxes		71,501			67,719
Income tax provision (benefit)		15,093			(326	)
Net investment income after income taxes		56,408			68,045
Net realized/unrealized losses of Medallion Bank (1)		(51,696	)		(66,328	)
Net increase in net assets resulting from operations of Medallion Bank		4,712			1,717
Unrealized appreciation on Medallion Bank (2)		5,482			123,667
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank		(711	)		4,737
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	9,483		$	130,121

(1) Excluded from operating expenses and included in net realized/unrealized losses of Medallion Bank were $1,476 and $0 of unrealized losses on other assets for 2017 and 2016.

(2) Unrealized appreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the U.S. Treasury, and the fair value adjustments to the carrying amount of Medallion Bank.

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

(Dollars in thousands)	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 (1)		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 (2)	$	302,147

(1) Includes $26,303 of preferred stock issued to the U.S. 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.

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Funds Borrowed

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Funds Borrowed

(7) FUNDS BORROWED

The outstanding balances of funds borrowed were as follows:

	Payments Due for the Fiscal Year Ending December 31,												Bank Holding Company Accounting December 31, 2018		Investment Company Accounting December 31, 2017		Interest Rate (1)
(Dollars in  thousands)	2019		2020		2021		2022		2023		Thereafter
Deposits	$	325,890	$	191,054	$	158,846	$	136,508	$	35,742	$	—	$	848,040	$	—		2.14	%
DZ loan		—		—		—		—		—		—		—		99,984		—
SBA debentures and borrowings		3,226		25,873		8,500		—		5,000		37,500		80,099		79,564		3.40	%
Notes payable to banks		51,452		458		7,145		280		280		—		59,615		81,450		4.55	%
Retail notes (2)		—		—		33,625		—		—		—		33,625		33,625		9.00	%
Preferred securities (2)		—		—		—		—		—		33,000		33,000		33,000		4.86	%
Other borrowings		500		7,149		—		—		—		—		7,649		—		2.00	%
Total	$	381,068	$	224,534	$	208,116	$	136,788	$	41,022	$	70,500	$	1,062,028	$	327,623		2.67	%

(1) Weighted average contractual rate as of December 31, 2018.

(2) Relates to loans held at the Company, Parent Company only.

(A) DEPOSITS

Deposits are raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into 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. All time deposits are in denominations of less than $250,000 and have been originated through certificates of deposit broker relationships. The table presents time deposits of $100,000 or more by their maturity:

(Dollars in  thousands)	December 31, 2018
Three months or less	$	72,280
Over three months through six months		110,012
Over six months through one year		143,598
Over one year		522,150
Total deposits	$	848,040

(B) DZ LOAN

In December 2008, Trust III entered into the DZ loan agreement with DZ Bank, to provide up to $200,000,000 of financing through a commercial paper conduit to acquire medallion loans from MFC (DZ loan), which was extended in December 2013 until December 2016 through an amended and restated credit agreement, which has been further extended several times and currently terminates in September 2019. The line was reduced to $150,000,000, and was further reduced in stages to $125,000,000 on July 1, 2016, remained as an amortizing facility and was restructured during the fourth quarter of 2018.

Borrowings under Trust III’s DZ loan are collateralized by Trust III’s assets. MFC is the servicer of the loans owned by Trust III. In addition, if certain financial tests are not met, MFC can be replaced as the servicer. See Note 23 for more information about Trust III and the DZ loan.

(C) SBA DEBENTURES AND BORROWINGS

Over the years, the SBA has approved commitments for MCI and FSVC, typically for a four and half year term and a 1% fee, which was paid. During 2017, the SBA restructured FSVC’s debentures with SBA totaling $33,485,000 in principal into a new loan by the SBA to FSVC in the principal amount of $34,024,756 (the SBA Loan). In connection with the SBA Loan, FSVC executed a Note (the SBA Note), with an effective date of March 1, 2017, in favor of SBA, in the principal amount of $34,024,756. The SBA Loan bears interest at a rate of 3.25% per annum, required a minimum of $5,000,000 of principal and interest to be paid on or before February 1, 2018 (which was paid) and a minimum of $10,000,000 of principal and interest to be paid on or before March 15, 2019, and all remaining unpaid principal and interest on or before February 1, 2020, the final maturity date. The SBA Loan agreement contains covenants and events of defaults, including, without limitation, payment defaults, breaches of representations and warranties and covenants defaults. As of December 31, 2018, $172,485,000 of commitments had been fully utilized, there were $3,000,000 of commitments available, and $80,099,000 was outstanding, including $29,099,000 under the SBA Note.

(D) NOTES PAYABLE TO BANKS

The Company and its subsidiaries have entered into note agreements with a variety of local and regional banking institutions over the years. The notes are typically secured by various assets of the underlying borrower.

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2018.

(Dollars in thousands)
Borrower	# of Lenders/ Notes		Note Dates		Maturity Dates		Type	Note Amounts			Balance Outstanding at December 31, 2018		Monthly Payment			Average Interest Rate at December 31, 2018			Interest Rate Index(1)
The Company		6/6		4/11 - 8/14		3/19 - 7/19	Term loans and demand notes secured by pledged loans (2)	$	38,870	(2)	$	38,870		Interest only	(3)		5.09	%		Various	(3)
Medallion  Chicago		3/28		11/11 - 12/11		6/19 - 9/21	Term loans secured by owned Chicago medallions (4)		25,708			19,345		$171 of principal & interest			3.50	%		N/A
Medallion  Funding		1/1		11/18		12/23			1,400			1,400		$70 principal & interest paid quarterly			4.00	%		N/A
								$	65,978		$	59,615

(1) At December 31, 2018, 30 day LIBOR was 2.50%, 360 day LIBOR was 3.01%, and the prime rate was 5.50%.

(2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.

(3) Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $75.

(4) Guaranteed by the Company.

In November 2018, MFC entered into a note to the benefit of DZ Bank for $1,400,000 at a 4.00% interest rate due December 2023, as part of the restructuring of the DZ loan. See Note 23 for more information.

(E) RETAIL NOTES

In April 2016, the Company issued a total of $33,625,000 aggregate principal amount of 9.00% unsecured notes due 2021, with interest payable quarterly in arrears. The Company used the net proceeds from the offering of approximately $31,786,000 to make loans and other investments in portfolio companies and for general corporate purposes, including repaying borrowings under its DZ loan in the ordinary course of business.

(F) PREFERRED SECURITIES

In June 2007, the Company issued and sold $36,083,000 aggregate principal amount of unsecured junior subordinated notes to Fin Trust which, in turn, sold $35,000,000 of preferred securities to Merrill Lynch International and issued 1,083 shares of common stock to the Company. The notes bear a variable rate of interest of 90 day LIBOR (2.81% at December 31, 2018) plus 2.13%. The notes mature in September 2037 and are prepayable at par. Interest is payable quarterly in arrears. The terms of the preferred securities and the notes are substantially identical. In December 2007, $2,000,000 of the preferred securities were repurchased from a third party investor. At December 31, 2018, $33,000,000 was outstanding on the preferred securities.

(G) OTHER BORROWINGS

In November and December 2017, RPAC amended the terms of various promissory notes with affiliate Richard Petty (refer to Note 13 for more details). At December 31, 2017, the total outstanding on these notes was $7,007,894 at a 2.00% annual interest rate compounded monthly and due March 31, 2020. As of December 31, 2018, $7,149,000 was outstanding on these notes. Additionally, RPAC has a short term promissory note to Travis Burt, an unrelated party, for $500,000 due on December 31, 2019.

(H) COVENANT COMPLIANCE

Certain of our debt agreements contain restrictions that require the Company and its subsidiaries to maintain certain financial ratios, including debt to equity and minimum net worth, which in the event of noncompliance could preclude their ability to pay dividends to the Company.

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

(8) 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, the Company is able, and intends, to file a consolidated federal income tax return with corporate subsidiaries in which it holds 80 percent or more of the outstanding equity interest measured by both vote and fair value.

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

(Dollars in thousands)	2018			2017
Goodwill and other intangibles/unrealized gain on investment in Medallion Bank	($	45,272	)	($	35,297	)
Provision for loan losses/unrealized losses on loans and nonaccrual interest		25,790			10,071
Net operating loss carryforwards (1)		11,132			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 assets		1,844			782
Unrealized gains on other investments		(2,024	)		(542	)
Total deferred tax liability		(8,530	)		(29,383	)
Valuation allowance		(255	)		(39	)
Deferred tax liability, net		(8,785	)		(29,422	)
Taxes receivable		1,812			16,886
Net deferred and other tax liabilities	($	6,973	)	($	12,536	)

(1) As of December 31, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $1,969 as of the balance sheet date.

The components of our tax benefit (provision) for the years ended December 31, 2018, 2017, and 2016 were as follows.

(Dollars in thousands)	2018			2017			2016
Current
Federal	($	2,797	)	$	15,613		$	2,690
State		(1,078	)		756			689
Deferred
Federal		5,270			(4,169	)		(39,028	)
Federal income tax rate change		—			17,279			—
State		(1,464	)		6,747			(10,251	)
Net benefit (provision) for income taxes	($	69	)	$	36,226		($	45,900	)

The following table presents a reconciliation of statutory federal income tax benefit (provision) to consolidated actual income tax (benefit) expense reported for the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands)	2018			2017			2016
Statutory Federal Income tax at 21% (35% in 2017 and 2016)	$	4,935		$	12,582		($	24,295	)
State and local income taxes, net of federal income tax benefit		440			645			(3,829	)
Federal income tax rate change		—			17,279			—
Change in effective state income tax rate		(2,564	)		3,232			—
Utilization of carry forwards		(910	)		2,284			—
Appreciation of Medallion Bank		(1,974	)		1,050			—
Conversion to a taxable corporation		—			—			(16,630	)
Book impairment of goodwill		—			—			(2,065	)
Other		4			(846	)		919
Total income tax benefit (provision)	($	69	)	$	36,226		($	45,900	)

On December 22, 2017, the U.S. Government signed into law the “Tax Cuts and Jobs Act” which, starting in 2018, reduced the Company’s corporate statutory income tax rate from 35% to 21%, but eliminated or increased certain permanent differences.

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 valuation allowance deemed necessary as of December 31, 2018.

The Company has filed tax returns in many states. Federal, New York State, New York City, and Utah tax filings of the Company for the tax years 2015 through the present are the more significant filings that are open for examination. Currently the Company and the Bank are undergoing various state exams covering the years 2009 to 2011 and 2013 to 2017.

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Stock Options and Restricted Stock

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options and Restricted Stock

(9) STOCK OPTIONS AND RESTRICTED STOCK

The Company has a stock option plan (2006 Stock Option Plan) available to grant both incentive and nonqualified stock options to employees. The 2006 Stock Option Plan, which was approved by the Board of Directors on February 15, 2006 and shareholders on June 16, 2006, provided for the issuance of a maximum of 800,000 shares of common stock of the Company. No additional shares are available for issuance under the 2006 Stock Option Plan. The 2006 Stock Option Plan is administered by the Compensation Committee of the Board of Directors. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. The term and vesting periods of the options are determined by the Compensation Committee, provided that the maximum term of an option may not exceed a period of ten years.

The Company’s Board of Directors approved the 2018 Equity Incentive Plan (2018 Plan), which was approved by the Company’s shareholders 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, including options, restricted stock, stock appreciation rights, etc. A total of 1,500,253 shares of the Company’s common stock are issuable under the 2018 Plan, and 1,458,407 remained issuable as of December 31, 2018. 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 first occurs.

The Company’s Board of Directors approved the 2015 Employee Restricted Stock Plan (2015 Restricted Stock Plan) on February 13, 2015, which was approved by the Company’s shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the Company’s receipt of exemptive relief from the SEC on March 1, 2016. The terms of 2015 Restricted Stock Plan provide for grants of restricted stock awards to the Company’s employees. A grant of restricted stock is a grant of shares of the Company’s common stock which, at the time of issuance, is subject to certain forfeiture provisions, and thus is restricted as to transferability until such forfeiture restrictions have lapsed. A total of 700,000 shares of the Company’s common stock were issuable under the 2015 Restricted Stock Plan, and 241,919 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. Awards under the 2015 Restricted Stock Plan are subject to certain limitations as set forth in the 2015 Restricted Stock Plan. The 2015 Restricted Stock Plan will terminate when all shares of common stock authorized for delivery under the 2015 Restricted Stock Plan have been delivered and the forfeiture restrictions on all awards have lapsed, or by action of the Board of Directors pursuant to the 2015 Restricted Stock Plan, whichever first occurs.

The Company’s Board of Directors approved the 2015 Non-Employee Director Stock Option Plan (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 will grant 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 are elected to serve less than a full term. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. Options granted under the 2015 Director Plan are exercisable annually, as defined in the 2015 Director Plan. The term of the options may not exceed ten years.

The Company’s Board of Directors approved the First Amended and Restated 2006 Director Plan (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 will 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 are elected to serve less than a full term. The option price per share may not be less than the current market value of the Company’s common stock on the date the option is granted. Options granted under the Amended Director Plan are exercisable annually, as defined in the Amended Director Plan. The term of the options may not exceed ten years.

Additional shares are only available for future issuance under the 2018 Plan. At December 31, 2018, 144,666 options on the Company’s common stock were outstanding under the Company’s plans, of which 81,889 options were exercisable, and there were 190,915 unvested shares of the Company’s common stock outstanding under the Company’s restricted stock plans.

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. The weighted average fair value of options granted was $1.06, $0.28, and $0.53 per share for the years ended December 31, 2018, 2017, and 2016. The following assumption categories are used to determine the value of any option grants.

	Year ended December 31,
	2018			2017			2016
Risk free interest rate		2.82	%		1.84	%		1.22	%
Expected dividend yield		4.86			7.39			10.13
Expected life of option in years (1)		6.00			6.00			6.00
Expected volatility (2)		30.00	%		30.00	%		30.00	%

(1) Expected life is calculated using the simplified method.

(2) We determine our expected volatility based on our historical volatility.

The following table presents the activity for the stock option programs for the years ended December 31, 2018, 2017, and 2016.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2015		446,254		$	7.49-13.84	$	10.38
Granted		12,000			7.10		7.10
Cancelled		(110,636	)		9.22-13.84		12.25
Exercised (1)		(2,100	)		9.22		9.22
Outstanding at December 31, 2016		345,518			7.10-13.84		9.67
Granted		29,666			2.14-2.61		2.35
Cancelled		(54,558	)		10.76-11.21		10.94
Exercised (1)		—			—		—
Outstanding at December 31, 2017		320,626			2.14-13.84		8.78
Granted		39,000			5.27-5.58		5.46
Cancelled		(214,960	)		9.22-9.24		9.22
Exercised (1)		—			—		—
Outstanding at December 31, 2018 (2)		144,666		$	2.06-13.84	$	7.23
Options exercisable at
December 31, 2016		312,518		$	7.49-13.84	$	9.75
December 31, 2017		273,960			7.10-13.84		9.50
December 31, 2018 (2)		81,889			2.14-13.84		9.25

(1) The aggregate intrinsic value, 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 $0, $0, and $0 for 2018, 2017, and 2016.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2018 and the related exercise price of the underlying options, was $69,000 for outstanding options and $23,000 for exercisable options as of December 31, 2018. The remaining contractual life was 6.97 years for outstanding options and 5.35 years for exercisable options at December 31, 2018.

The following table presents the activity for the restricted stock programs for the years ended December 31, 2018, 2017, and 2016.

	Number of Shares			Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2015		209,040		$	9.08-15.61	$	10.96
Granted		48,527			3.95-7.98		4.47
Cancelled		(11,325	)		9.92-15.61		11.17
Vested (1)		(78,539	)		9.08-15.61		11.38
Outstanding at December 31, 2016		167,703			3.95-13.46		8.88
Granted		327,251			2.06-3.93		2.48
Cancelled		(8,988	)		2.14-10.08		3.07
Vested (1)		(77,384	)		9.08-13.46		11.09
Outstanding at December 31, 2017		408,582			2.06-10.38		3.45
Granted		101,010			3.93-5.27		4.41
Cancelled		(9,737	)		3.93-9.08		4.66
Vested (1)		(308,940	)		2.06-10.38		3.35
Outstanding at December 31, 2018 (2)		190,915		$	2.14-5.27	$	4.06

(1) The aggregate fair value of the restricted stock vested was $1,270,000, $169,000, and $722,000 for 2018, 2017, and 2016.

(2) The aggregate fair value of the restricted stock was $895,000 as of December 31, 2018. The remaining vesting period was 1.21 years at December 31, 2018.

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2018.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		46,666		$	2.14-9.38	$	4.52
Granted		39,000			5.27-5.58		5.46
Cancelled		—			—		—
Vested		(22,889	)		2.14-9.38		5.95
Outstanding at December 31, 2018		62,777		$	2.14-7.10	$	4.59

The intrinsic value of the options vested was $32,000, $0, and $0 in 2018, 2017, and 2016.

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Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

(10) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table presents the Company’s quarterly results of operations for the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands, except per share data)	March 31			June 30			September 30			December 31
2018 Quarter Ended (1)
Net interest income/net investment income	$	482		$	24,719		$	24,265		$	23,003
Income (loss) before income taxes/net investment loss before taxes		(3,566	)		(17,905	)		(3,963	)		14,712
Net income (loss) after taxes/net decrease on net assets resulting from operations		(14,874	)		(13,884	)		(3,846	)		9,865
Net income (loss) attributable to Medallion Financial Corp./net decrease in net assets resulting from operations		(14,874	)		(14,647	)		(4,697	)		9,172
Basic	($	0.62	)	($	0.60	)	($	0.19	)	$	0.38
Diluted		(0.62	)		(0.60	)		(0.19	)		0.38
2017 Quarter Ended
Investment income	$	4,250		$	3,787		$	5,567		$	6,020
Net investment loss after income taxes		(435	)		(1,293	)		(2,490	)		(2,903	)
Net increase (decrease) in net assets resulting from operations		1,111			(4,797	)		619			3,345
Net increase (decrease) in net assets resulting from operations per common share
Basic	$	0.05		($	0.20	)	$	0.03		$	0.14
Diluted		0.05			(0.20	)		0.03			0.14
2016 Quarter Ended
Investment income	$	8,986		$	5,836		$	5,269		$	4,997
Net investment income (loss) after income taxes		2,039			(1,402	)		(2,606	)		2,088
Net increase in net assets resulting from operations		6,848			4,568			5,043			7,056
Net increase in net assets resulting from operations per common share
Basic	$	0.28		$	0.19		$	0.21		$	0.29
Diluted		0.28			0.19			0.21			0.29

(1) The three months ended March 31, 2018 have been accounted for under Investment Company Accounting and subsequent 2018 quarters have been accounted for under Bank Holding Company Accounting.

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Segment Reporting

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting

(11) SEGMENT REPORTING (Bank Holding Company Accounting)

Under Bank Holding Company Accounting, the Company has six business segments, which include four lending and two non-operating segments, which are reflective of how Company management makes decisions about its business and operations.

Prior to April 2, 2018, the Company had one business segment, its lending and investing operations. This segment originated and serviced medallion, secured commercial and consumer loans, and invested in both marketable and nonmarketable securities.

The four lending segments reflect the main types of lending performed at the Company, which are recreation, home improvement, commercial, and medallion. The recreation and home improvement lending segments are conducted by the Bank in all fifty states, with the highest concentrations in Texas, California, and Florida, at 18%, 11%, and 10% of loans outstanding and with no other states over 10% as of December 31, 2018. 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, and other consumer recreational equipment. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, solar panels, roofs, and windows, at 31%, 16%, 15%, and 11% of total loans outstanding, respectively, and with no other product lines over 10% as of December 31, 2018. The commercial lending segment focuses on enterprise wide industries, including manufacturing, retail trade, information, recreation and various other industries, in which 42% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the taxicab medallions, taxicabs, and related assets, of which 87% were in New York City as of December 31, 2018.

In addition, our non-operating segments include RPAC which is a race car team and our corporate and other segment which includes items not allocated to our operating segments such as investment securities, equity investments, intercompany eliminations, and other corporate elements.

The following table presents segment data at December 31, 2018 and for the nine months then ended.

Nine Months Ended December 31, 2018	Consumer Lending						Commercial Lending			Medallion Lending			RPAC			Corp. and Other			Consolidated
(Dollars in thousands)	Recreation			Home Improvement
Total interest income	$	68,870		$	12,799		$	7,459		$	6,317		$	—		$	1,358		$	96,803
Total interest expense		6,986			2,290			2,037			10,125			121			3,257			24,816
Net interest income (loss)		61,884			10,509			5,422			(3,808	)		(121	)		(1,899	)		71,987
Provision for loan losses		15,118			2,453			—			41,437			—			—			59,008
Net interest income after loss provision		46,766			8,056			5,422			(45,245	)		(121	)		(1,899	)		12,979
Sponsorship and race winnings		—			—			—			—			14,368			—			14,368
Race team related expenses		—			—			—			—			(7,121	)		—			(7,121	)
Other income (expense)		(14,242	)		(3,093	)		(1,917	)		9,742			(11,476	)		(6,396	)		(27,382	)
Net income before taxes		32,524			4,963			3,505			(35,503	)		(4,350	)		(8,295	)		(7,156	)
Income tax benefit (provision)		(8,579	)		(1,319	)		(808	)		7,938			1,108			951			(709	)
Net income (loss) after tax	$	23,945		$	3,644		$	2,697		($	27,565	)	($	3,242	)	($	7,344	)	($	7,865	)
Balance Sheet Data
Total loans net	$	580,182		$	181,359		$	64,083		$	155,863		$	—		$	—		$	981,487
Total assets		590,746			188,892			90,264			273,501			29,925			208,522			1,381,846
Total funds borrowed		434,527			143,815			51,266			294,465			7,649			130,306			1,062,028
Selected Financial Ratios
Return on assets		5.48	%		2.56	%		3.59	%		(10.13	%)		(11.69	%)		(4.13	%)		(0.90	%)
Return on equity		22.60			11.30			7.52			NM			NM			(13.18	)		(4.62	)
Interest yield		15.78			9.06			12.61			3.58			N/A			N/A			10.98
Net interest margin		14.18			7.44			9.17			(2.16	)		N/A			N/A			8.19
Reserve coverage		1.17			0.98			0.00			15.11			N/A			N/A			3.58
Delinquency ratio		0.69			0.07			0.44			8.89			N/A			N/A			2.03
Charge-off ratio		1.89			0.46			0.00			7.21			N/A			N/A			2.73

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(12) COMMITMENTS AND CONTINGENCIES

(A) EMPLOYMENT AGREEMENTS

The Company has employment agreements with certain key officers for either a two- or five-year term. Annually, the contracts with a five-year term will renew for new five-year terms unless prior to the end of the first year, either the Company or the executive provides notice to the other party of its intention not to extend the employment period beyond the current five-year term. Annually, the contracts with a two-year term will renew for new 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-year term. 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.

Employment agreements expire at various dates through 2023. At December 31, 2018, minimum payments under employment agreements were as follows:

(Dollars in thousands)
2019	$	2,062
2020		889
2021		665
2022		665
2023		277
Thereafter		—
Total	$	4,558

(B) OTHER COMMITTMENTS

The Company had no commitments outstanding at December 31, 2018. Generally, commitments are on the same terms as loans to or investments in existing borrowers or investees, and generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Commitments for leased premises expire at various dates through April 30, 2027. At December 31, 2018, minimum rental commitments for non-cancelable leases were as follows:

(Dollars in thousands)
2019	$	2,357
2020		2,380
2021		2,278
2022		2,216
2023		2,136
Thereafter		6,048
Total	$	17,415

Occupancy expense was $2,287,000, $1,069,000, and $966,000 for the years ended December 31, 2018, 2017, and 2016.

(C) LITIGATION

The Company and its subsidiaries become defendants to various legal proceedings arising from the normal course of business. In the opinion of management, based on the advice of legal counsel, other than as set forth in the following paragraph 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.

On December 20, 2017, a stockholder derivative action was filed in the Supreme Court of the State of New York, County of New York (Shields v. Murstein, et al.). The complaint named the Company as a nominal defendant and purports to assert claims derivatively on behalf of the Company against certain of the Company’s current directors, one of the Company’s former directors, and a former independent contractor for one of the Company’s subsidiaries. The complaint alleged that the director defendants breached their fiduciary duties with respect to certain alleged misconduct by the former independent contractor involving postings about the Company under an alleged pseudonym. On January 25, 2018, the Company and the director defendants filed a motion to dismiss the action. On June 27, 2018, a hearing was held on the motion. On November 26, 2018, the Court entered a decision granting the motion. On December 17, 2018, the Court entered an order dismissing the plaintiff’s complaint with prejudice. The time for the plaintiff to appeal the Court’s order has elapsed.

(D) REGULATORY

In the ordinary course of business, the Company and its subsidiaries are subject to inquiries from certain regulators. During 2014, FSVC was examined by the SBA. The foregoing regulatory examination was resolved in January 2017 as a result of Freshstart’s transfer to liquidation status and the restructure of the Freshstart loan described in Note 7.

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Related Party Transactions

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

(13) RELATED PARTY TRANSACTIONS

Certain directors, officers, and shareholders of the Company are also directors and officers of its main consolidated subsidiaries, MFC, MCI, FSVC, and Medallion 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, is an officer of LAX Group, LLC (LAX), one of the Company’s equity investments. Mr. Rudnick receives a salary from LAX of $171,000 per year, and certain equity from LAX consisting of 10% ownership in LAX Class B stock, vesting at 3.34% per year; 5% of any new equity raised from outside investors at a valuation of $1,500,000 or higher; and 10% of LAX’s profits as a year-end bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200.

The Company’s consolidated subsidiary RPAC, has an agreement with minority shareholder Richard Petty, in which they make an annual payment of $700,000 per year for services provided to the entity. In addition, RPAC has a note payable to a trust controlled by Mr. Petty of $7,149,000 that earns interest at an annual rate of 2% as of December 31, 2018.

The Company and MSC serviced $311,988,000 and $325,751,000 of loans for Medallion Bank at December 31, 2017 and 2016. Under Investment Company Accounting, included in net investment income were amounts as described in the table below that were received from Medallion Bank for services rendered in originating and servicing loans, and also for reimbursement of certain expenses incurred on their behalf.

The Company assigned its servicing rights to the Medallion Bank portfolio to MSC, a wholly-owned entity that had been unconsolidated under Investment Company Accounting. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed and collected from Medallion Bank by MSC. As a result, $5,272,000 and $5,421,000 of servicing fee income was earned by MSC in the years ended December 31, 2017 and 2016.

The following table summarizes the net revenues received from Medallion Bank not eliminated under Investment Company Accounting.

	Three Months Ended March 31,		Year Ended December 31,
(Dollars in thousands)	2018		2017		2016
Reimbursement of operating expenses	$	250	$	865	$	1,006
Loan origination and servicing fees		6		5		229
Total other income	$	256	$	870	$	1,235

The Company had a loan to Medallion Fine Art, Inc., a wholly-owned entity that had been unconsolidated under Investment Company Accounting, in the amount of $999,000 as of December 31, 2017, which was repaid in full during the 2018 first quarter. The loan bore interest at a rate of 12%, all of which was paid in kind. During 2017, the Company advanced $0, and was repaid $2,365,000 with respect to this loan. Additionally, the Company recognized $10,000 of interest income not eliminated for the year ended December 31, 2018, and $165,000 and $596,000 of interest income in 2017 and 2016.

The Company and MCI have loans to RPAC, an affiliate of Medallion Motorsports LLC, which totaled $16,472,000 as of December 31, 2017 and under Investment Company Accounting had not been eliminated, and which were placed on nonaccrual during 2017. These loans have been eliminated in consolidation for the nine months ended December 31, 2018. The loans bear interest at 2%, inclusive of cash and paid in kind interest. The Company and MCI recognized $0 of interest income for the three months ended March 31, 2018 and during the years ended December 31, 2017 and 2016, recognized $56,000 and $626,000 of interest income with respect to these loans.

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Stockholders'/Shareholders' Equity

12 Months Ended

Dec. 31, 2018

Federal Home Loan Banks [Abstract]

Stockholders'/Shareholders' Equity

(14) STOCKHOLDERS’/SHAREHOLDERS’ EQUITY

In November 2003, the Company announced a stock repurchase program which authorized the repurchase of up to $10,000,000 of common stock during the following six months, with an option for the Board of Directors to extend the time frame for completing the purchases, which expired in May 2018. In November 2004, the repurchase program was increased by an additional $10,000,000, which was further increased to a total of $20,000,000 in July 2014, and which was further increased to a total of $26,000,000 in July 2015. As of December 31, 2018, a total of 2,931,125 shares had been repurchased for $24,587,000. There were no purchases in 2018 and 2017, and purchases were 361,174 shares for $1,524,000 in 2016.

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Other Operating Expenses

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Other Operating Expenses

(15) OTHER OPERATING EXPENSES (Investment Company Accounting)

The major components of other expenses were as follows.

	Three Months Ended,		Year ended December 31,
(Dollars in thousands)	March 31, 2018		2017		2016
Directors’ fees	$	89	$	319	$	387
Miscellaneous taxes		120		258		328
Computer expense		74		244		257
Other expenses		304		727		574
Total other operating expenses	$	587	$	1,548	$	1,546

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Selected Financial Ratios and Other Data

12 Months Ended

Dec. 31, 2018

Investment Company [Abstract]

Selected Financial Ratios and Other Data

(16) SELECTED FINANCIAL RATIOS AND OTHER DATA (Investment Company Accounting)

The following table provides selected financial ratios and other data for the periods indicated.

	Three Months Ended March 31,			Year ended December 31,
(Dollars in thousands, except per share data)	2018			2017			2016			2015			2014
Net share data
Net asset value at the beginning of the year	$	11.80		$	11.91		$	11.42		$	11.16		$	10.95
Net investment income (loss)		(0.15	)		(0.33	)		(0.41	)		0.69			0.60
Income tax provision (benefit)		0.03			1.51			(1.90	)		0.00			0.00
Net realized gains (losses) on investments		(1.44	)		(1.82	)		0.02			0.31			(0.22	)
Net change in unrealized appreciation on investments		0.94			0.65			3.26			0.20			0.76
Net increase (decrease) in net assets resulting from operations		(0.62	)		0.01			0.97			1.20			1.14
Issuance of common stock		(0.03	)		(0.12	)		—			—			(0.01	)
Repurchase of common stock		—			—			0.12			0.06			0.03
Distribution of net investment income		—			—			(0.60	)		(0.81	)		(0.60	)
Return of capital		—			—			—			(0.18	)		(0.35	)
Distribution of net realized gains on investments		—			—			—			—			—
Total distributions		—			—			(0.60	)		(0.99	)		(0.95	)
Other		—			—			—			(0.01	)		—
Total increase (decrease) in net asset value		(0.65	)		(0.11	)		0.49			0.26			0.21
Net asset value at the end of the period/year (1)	$	11.15		$	11.80		$	11.91		$	11.42		$	11.16
Per share market value at beginning of year	$	3.53		$	3.02		$	7.04		$	10.01		$	14.35
Per share market value at end of period/year		4.65			3.53			3.02			7.04			10.01
Total return (2)		(129	%)		17	%		(54	%)		(22	%)		(25	%)
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	272,437		$	287,159		$	286,096		$	278,088		$	274,670
Average net assets		284,021			285,704			276,978			276,745			276,254
Total expense ratio (3) (4) (5)		10.02	%		(3.03	%)		29.36	%		9.45	%		9.57	%
Operating expenses to average net assets (4) (5)		5.87			4.83			8.23			6.04			6.48
Net investment income (loss) after income taxes to average net assets (4) (5)		(4.61	)		(2.49	)		0.04			6.08			5.48

(1) Includes $0.00 of undistributed net investment income per share as of three months ended March 31, 2018 and December 31, 2017, 2016, 2015 and 2014, and $0.00 of undistributed net realized gains per share for all periods presented.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, $5,658, and $5,946, and operating expenses of $1,150, $4,211, $5,249, $6,044, and $6,005 which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, 2015, and 2014. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, 11.63%, 8.23%, and 5.94% in 2015, and 11.74%, 8.65%, and 5.46% in 2014.

(5) These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2018

Postemployment Benefits [Abstract]

Employee Benefit Plans

(17) EMPLOYEE BENEFIT PLANS

The Company has a 401(k) Investment Plan (the 401(k) Plan) which covers all full-time and part-time employees of the Company who have attained the age of 21 and have a minimum of one year of service, including the employees of Medallion Bank. Under the 401(k) Plan, an employee may elect to defer not less than 1% and no more than 15% of the total annual compensation that would otherwise be paid to the employee, provided, however, that employee’s contributions may not exceed certain maximum amounts determined under the Internal Revenue Code. Employee contributions are invested in various mutual funds according to the directions of the employee. The Company matches employee contributions to the 401(k) Plan in an amount per employee up to one-third of such employee’s contribution but in no event greater than 2% of the portion of such employee’s annual salary eligible for 401(k) Plan benefits. The Company’s 401(k) plan expense, including amounts for the employees of Medallion Bank and other consolidated subsidiaries in the prior year periods, was approximately $182,000, $185,000, and $187,000 for the years ended December 31, 2018, 2017, and 2016.

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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2018

Investments, All Other Investments [Abstract]

Fair Value of Financial Instruments

(18) 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 – Book value equals fair value.

(b) Equity securities – The Company’s equity securities are recorded at cost less impairment, which approximated fair value.

(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 approximated 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 December 31, 2018 and December 31, 2017, 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.

	Bank Holding Company Accounting December 31, 2018				Investment Company Accounting December 31, 2017
(Dollars in  thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and federal funds sold (1)	$	57,713	$	57,713	$	12,690	$	12,690
Equity investments		9,197		9,197		—		—
Investment securities		45,324		45,324		—		—
Loans receivable		981,487		981,487		—		—
Investments		—		—		610,135		610,135
Accrued interest receivable (2)		7,413		7,413		547		547
Financial liabilities
Funds borrowed (3)		1,062,028		1,062,297		327,623		330,084
Accrued interest payable (2)		3,852		3,852		3,831		3,831

(1) Categorized as level 1 within the fair value hierarchy.

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

(3) As of December 31, 2018 and 2017, publicly traded unsecured notes traded at a premium to par of $269 and $2,461.

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Fair Value of Assets and liabilities

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Assets and liabilities

(19) 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). Our 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 (level 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 (level 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 US 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. The following paragraphs describe the sensitivity of the various level 3 valuations to the factors that are relevant in their valuation analysis under both Bank Holding Company Accounting (applicable as of June 30, 2018 and for the quarter then ended) and Investment Company Accounting (applicable to prior periods).

Bank Holding Company Accounting

Commencing with the quarter ended June 30, 2018, equity investments are recorded at cost and are evaluated for impairment periodically.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2018.

Bank Holding Company Accounting (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,197	$	9,197
Available for sale investment securities (1)		—		45,324		—		45,324
Total	$	—	$	45,324	$	9,197	$	54,521

(1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

Investment Company Accounting

Medallion loans are primarily collateral-based lending, whereby the collateral value exceeds the amount of the loan, providing sufficient excess collateral to protect against losses to the Company. As a result, under Investment Company Accounting, the initial valuation assessment was that as long as the loan is current and performing, its fair value approximates the par value of the loan. To the extent a loan became nonperforming, the collateral value would be adequate to result in a complete recovery. In a case where the collateral value was inadequate, an unrealized loss would be recorded to reflect any shortfall. Collateral values for medallion loans are typically obtained from transfer prices reported by the regulatory agency in a particular local market (e.g. New York City Taxi and Limousine Commission). Recently, as transfer price activity and the collateral value of medallion loans has declined, greater weight was placed on the operating cash flows of the borrowers and the values of their personal guarantees in determining whether or not a valuation adjustment would be necessary. Those portfolios had historically been at very low loan to collateral value ratios, and as a result, historically were not highly sensitive to changes in collateral values. Over the last few years, as medallion collateral values declined, the impact on the Company’s valuation analysis had become more significant, which could have resulted in a significantly lower fair value measurement.

The mezzanine and other secured commercial portions of the commercial loan portfolio were a combination of cash flow and collateral based lending. The initial valuation assessment was that as long as the loan is current and performing, its fair value approximates the par value of the loan. If a loan became nonperforming, an evaluation would be performed which considered and analyzed a variety of factors which may have included the financial condition and operating performance of the borrower, the adequacy of the collateral, individual credit risks, historical loss experience, the relationships between the then current and projected market rates and portfolio rates of interest and maturities, as well as general market trends for businesses in the same industry. Since each individual nonperforming loan had its own unique attributes, the factors analyzed, and their relative importance to each valuation analysis, differed between each asset, and may have differed from period to period for a particular asset. The valuation was highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changed significantly from one period to another, that change could have resulted in a significantly lower or higher fair market value measurement. For example, if a borrower’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have had a material impact on the valuation in the appropriate period.

The investment in Medallion Bank was subject to a thorough valuation analysis as described previously, and on at least an annual basis, the Company received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value. The Company determined whether any factors gave rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013, and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that Medallion Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in Medallion Bank and its portfolio assets at values in excess of their book value. The Company incorporated those factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. Expression of interest in Medallion Bank from both investment bankers and interested parties has continued through 2016 and 2017. The Company incorporated those new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believed heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Bank’s fair value, and the appreciation of $15,500,000 was thereby recorded in 2015, additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in 2018.

Investments in controlled subsidiaries, other than Medallion Bank, equity investments, and investments other than securities were valued similarly, but also considered available then-current market data, including relevant and applicable market trading and transaction comparables, the nature and realizable value of any collateral, applicable interest rates and market yields, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, and borrower financial analysis, among other factors. As a result of this valuation process, the Company used the actual results of operations of the controlled subsidiaries as the best estimate of changes in fair value, in most cases, and recorded the results as a component of unrealized appreciation (depreciation) on investments. For the balance of controlled subsidiary investments, equity investments, and investments other than securities positions, the result of the analysis resulted in changes to the value of the position if there was clear evidence that its value had either decreased or increased in light of the specific facts considered for each investment. The valuation was highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changed significantly from one period to another, that change could have resulted in a significantly lower or higher fair market value measurement. For example, if an investee’s valuation was determined primarily on the cash flow generated from their business, then if that cash flow deteriorated significantly from a prior period valuation, that could have a material impact on the valuation in the current period.

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 December 31, 2017.

Investment Company Accounting (Dollars in  thousands)	Level 1		Level 2		Level 3		Total
Assets
Medallion loans	$	—	$	—	$	208,279	$	208,279
Commercial loans		—		—		90,188		90,188
Investments in Medallion Bank and other controlled subsidiaries		—		—		302,147		302,147
Equity investments		—		—		9,521		9,521
Investments other than securities		—		—		7,450		7,450
Other assets		—		—		339		339

Included in level 3 investments in Medallion Bank and other controlled subsidiaries is primarily the investment in Medallion Bank, as well as other consolidated subsidiaries such as MSC, and other investments detailed in the consolidated summary schedule of investments following these footnotes. Included in level 3 equity investments are unregistered shares of common stock in a publicly-held company, as well as certain private equity positions in non-marketable securities.

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the nine months ended December 31, 2018 under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 and year ended December 31, 2017 under Investment Company Accounting.

(Dollars in  thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(1,274	)
Purchases, investments, and issuances		1,232
Sales, maturities, settlements, and distributions		(1,596	)
Transfers in (1)		1,377
December 31, 2018	$	9,197
Amounts related to held assets (2)	($	1,851	)

(1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.

(Dollars in  thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Gains (losses) included in earnings		(38,190	)		(8	)		29,143			(993	)		(1,915	)		—
Purchases, investments, and issuances		7			7,252			462			935			—			—
Sales, maturities, settlements, and distributions		(8,941	)		(3,812	)		(583	)		(5	)		—			—
March 31, 2018	$	161,155		$	93,620		$	331,169		$	9,458		$	5,535		$	339
Amounts related to held assets (1)	($	38,190	)	($	10	)	$	29,143		($	993	)	($	1,915	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2016	$	266,816		$	83,634		$	293,360		$	8,407		$	9,510		$	354
Gains (losses) included in earnings		(41,555	)		(491	)		10,761			4,727			(2,060	)		(15	)
Purchases, investments, and issuances		1,953			25,517			441			1,660			—			—
Sales, maturities, settlements, and distributions		(18,935	)		(18,472	)		(2,415	)		(5,273	)		—			—
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Amounts related to held assets (1)	$	37,335		($	410	)	$	10,756		$	1,941		($	2,060	)	($	15	)

(1) Total unrealized gains (losses) included in income for the year which relate to assets held as of December 31, 2017.

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2018 under Bank Holding Company Accounting.

2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,877	$	34,877
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	84,372	$	84,372

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 recurring level 3 fair value measurements of assets and liabilities as of December 31, 2018 were as follows under Bank Holding Company Accounting.

(Dollars in  thousands)	Fair Value at 12/31/18		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments		$5,683	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
		1,850	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee		N/A
			Precedent arm’s length offer	Business enterprise value		$6,014 – $7,214
				Business enterprise value/revenue multiples		0.96x – 4.54x
		1,455	Precedent market transaction	Offering price		$8.73 / share
		209	Investee book value	Valuation indicated by investee filings		N/A

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2017 were as follows under Investment Company Accounting.

(Dollars in  thousands)	Fair Value at 12/31/17		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Medallion Loans		$208,279	Precedent market transactions	Adequacy of collateral (loan to value)		1% - 420% (131%)
Commercial Loans – Mezzanine and Other		90,188	Borrower financial analysis	Financial condition and operating performance of		N/A
				the borrower Portfolio yields		2% -19.00% (12.02%)
Investment in Medallion Bank		290,548	Precedent M&A transactions	Price/book value multiples		2.1x to 2.5x
				Price/earnings multiples		8.7x to 10.6x
			Discounted cash flow	Discount rate		17.50%
				Terminal value		$470,964 to $623,007
Investment in Other Controlled Subsidiaries		4,623	Investee financial analysis	Financial condition and operating performance		N/A
				Enterprise value		$37,500 - $41,500
				Equity value		$2,000 - $5,000
		3,878	Investee book value adjusted for asset appreciation	Financial condition and operating performance of the investee		N/A
				Third party valuation/ offer to purchase asset		N/A
		3,001	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee		N/A
				Third party offer to purchase investment		N/A
		97	Investee book value and equity pickup	Financial condition and operating performance of the investee		N/A
Equity Investments		5,417	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
		2,193	Investee financial analysis	Equity value		$2,000 - $5,000
				Preferred equity yield		12%
		1,455	Precedent market transaction	Offering price		$8.73/share
		456	Investee book value	Valuation indicated by investee filings		N/A
Investments Other Than Securities		7,450	Precedent market transaction	Transfer prices of Chicago medallions		N/A
			Cash flow analysis	Discount rate in cash flow analysis		6%
Other Assets		339	Borrower collateral analysis	Adequacy of collateral (loan to value)		0%

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Investments Other Than Securities

12 Months Ended

Dec. 31, 2018

Schedule of Investments [Abstract]

Investments Other Than Securities

(20) INVESTMENTS OTHER THAN SECURITIES

The following table presents the Company’s investments other than securities as of December 31, 2017 under Investment Company Accounting.

Investment Type (Dollars in thousands)	Number of Investments			Investment Cost		Value as of 12/31/17
City of Chicago taxicab medallions		154	(1)	$	8,411	$	7,238	(2)
City of Chicago taxicab medallions (handicap accessible)		5	(1)		278		212	(3)
Total investments other than securities				$	8,689	$	7,450

(1) Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying asset under the 1940 Act.

(2) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for federal income tax purposes was $1,392 at December 31, 2017.

(3) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for federal income tax purposes was $40 at December 31, 2017.

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Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP)

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP)

(21) SMALL BUSINESS LENDING FUND PROGRAM (SBLF) AND TROUBLED ASSETS RELIEF PROGRAM (TARP)

On February 27, 2009 and December 22, 2009, Medallion Bank issued, and the U.S. Treasury purchased under the TARP Capital Purchase Program (the CPP), Medallion Bank’s fixed rate non-cumulative Perpetual Preferred Stock, Series A, B, C, and D for an aggregate purchase price of $21,498,000 in cash. On July 21, 2011, Medallion Bank issued, and the U.S. Treasury purchased, 26,303 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E) for an aggregate purchase price of $26,303,000 under the SBLF. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified smaller banks at favorable rates. In connection with the issuance of the Series E, the Bank exited the CPP by redeeming the Series A, B, C, and D; and received approximately $4,000,000, net of dividends due on the repaid securities. The Bank pays a dividend rate of 9% on the Series E.

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Parent Company Only Condensed Financial Statements

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Condensed Financial Statements

(22) PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS

The following shows the condensed financial information of Medallion Financial Corp. (parent company only) under Bank Holding Company Accounting.

Condensed balance sheet

(Dollars in thousands)	December 31, 2018
Assets
Cash	$	1,110
Net loans receivable		37,737
Loans collateral in process of foreclosure		12,001
Goodwill and intangible assets		178,621
Investments in bank subsidiaries		142,469
Investments in non-bank subsidiaries		91,059
Other assets		5,776
Total assets	$	468,773
Liabilities
Other liabilities	$	9,073
Intercompany payables		63,352
Short-term borrowings		38,870
Deferred tax liabilities and other tax payables		28,245
Long-term borrowings		66,625
Total liabilities		206,165
Total stockholders’ equity		262,608
Total liabilities and equity	$	468,773

Condensed statements of operations

(Dollars in thousands)	Nine Months Ended December 31, 2018
Interest income	$	(1,958	)
Interest expense		5,480
Net interest loss		(7,438	)
Provision for loan losses		19,190
Net interest loss after provision for loan losses		(26,628	)
Other income (expenses), net		(16,913	)
Loss before income taxes and undistributed earnings of subsidiaries		(43,541	)
Income tax benefit		5,328
Loss before undistributed earnings of subsidiaries		(38,213	)
Undistributed earnings of subsidiaries		28,041
Net loss attributable to parent company	$	(10,172	)

Condensed statement of other comprehensive loss

(Dollars in thousands)	Nine Months Ended December 31, 2018
Net loss	$	(10,172	)
Other comprehensive loss		(82	)
Total comprehensive loss attributable to MFIN	$	(10,254	)

Condensed statement of cash flow

(Dollars in thousands)	Nine Months Ended December 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES Net loss	$	(10,172	)
Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries		(28,041	)
Provision for loan losses		19,190
Depreciation and amortization		5,451
Change in deferred and other tax assets/liabilities, net		4,512
Proceeds loan collateral in process of foreclosure		487
Net change in loan collateral in process of foreclosure		678
Stock-based compensation expense		425
Decrease in other assets		4,073
Decrease in intercompany payables		(3,368	)
Increase in other liabilities		4,237
Net cash used by operating activities		(2,528	)
CASH FLOWS FROM INVESTING ACTIVITIES Loans originated		(309	)
Proceeds from principal receipts, sales, and maturities of loans		10,900
Dividends from subsidiaries		5,200
Net cash provided by investing activities		15,791
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed		—
Repayments of funds borrowed		(17,208	)
Net cash used for financing activities		(17,208	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(3,945	)
Cash and cash equivalents, beginning of period		5,055
Cash and cash equivalents, end of period	$	1,110

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Variable Interest Entities (VIE)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities (VIE)

(23) VARIABLE INTEREST ENTITIES (VIE)

During the 2018 third quarter, the Company determined that Trust III was a VIE. Trust III had been consolidated as a subsidiary of MFC historically, although it should have been consolidated under the variable interest model, since MFC was its primary beneficiary until October 31, 2018. Trust III is a VIE since the key decision-making authority rests in the servicing agreement (where MFC is the servicer for Trust III) rather than in the voting rights of the equity interests and as a result the decision-making rights are considered a variable interest. This conclusion is supported by a qualitative assessment that Trust III does not have sufficient equity at risk. Since the inception of Trust III, MFC had also been party to a limited guaranty which was considered a variable interest because, pursuant to the guaranty, MFC absorbed variability as a result of the on-going performance of the loans in Trust III. As of October 31, 2018, the Company determined that MFC was no longer the primary beneficiary of Trust III and accordingly deconsolidated the VIE, leading to a net gain of $25,325,000 recorded as well as a new promissory note payable by MFC of $1,400,000 issued in settlement of the limited guaranty (see Note 7 for more details). In addition, the Company remains the servicer of the assets of Trust III for a fee.

The following table shows the assets and liabilities of Trust III as December 31, 2017 when it had been a consolidated VIE.

	Investment Company Accounting
(Dollars in thousands)	December 31, 2017
Assets
Cash	$	393
Net investments		96,688
Accrued interest receivable		170
Total assets	$	97,251
Liabilities
Accrued interest payable	$	1,849
DZ loan		99,984
Total liabilities	$	101,833

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Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

(24) SUBSEQUENT EVENTS

On February 28, 2019, a credit facility with a maturity date of March 1, 2019 was extended until September 1, 2020.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Change to Bank Holding Company Accounting

Change to Bank Holding Company Accounting

Effective April 2, 2018, the Company withdrew its previous election to be regulated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act). Prior to such time, the Company was a closed-end, non-diversified management investment company that had elected to be treated as a BDC under the 1940 Act. Accordingly, commencing with the three months ended June 30, 2018, the Company (which now consolidates the results of Medallion Bank and its other subsidiaries) reports in accordance with Bank Holding Company Accounting; periods prior to such change in status are reported in accordance with Investment Company Accounting. Significant accounting policies that differ between such periods are described in more detail below.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (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 loans 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 commencing with the three months ended June 30, 2018. All significant intercompany transactions, balances, and profits (losses) have been eliminated in consolidation. As a result of the Company’s election to withdraw from being regulated as a BDC under the 1940 Act, effective April 2, 2018, Medallion Bank and various other Company subsidiaries were not consolidated with the Company prior to the three months ended June 30, 2018. See Note 6 for the presentation of financial information for Medallion Bank and other controlled subsidiaries for such prior periods.

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.

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.

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

The Company follows FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures (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 18 and 19 to the consolidated financial statements.

Equity Investments

Equity Investments

Equity investments of $9,197,000 at December 31, 2018, comprised mainly of nonmarketable stock and stock warrants, are recorded at cost and are evaluated for impairment periodically. Prior to April 2, 2018, equity investments were recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that had no ready market were determined in good faith by the Board of Directors, based upon the financial condition and operating performance of the underlying investee companies as well as general market trends for businesses in the same industry. Included in the equity investments were non-marketable securities of $9,521,000 at December 31, 2017.

Investment Securities (Bank Holding Company Accounting)

Investment Securities (Bank Holding Company Accounting)

The Company follows FASB ASC Topic 320, Investments–Debt and Equity Securities (ASC 320), which requires that all applicable investments in equity securities with readily determinable fair values, and 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 $154,000, and $80,000 was amortized to interest income for the nine months ended December 31, 2018. Medallion Bank, a previously unconsolidated subsidiary under Investment Company Accounting for the period, had net premium on investment securities of $265,000 as of December 31, 2017, and $81,000 and $82,000 was amortized to interest income for the years ended December 31, 2017 and 2016. Refer to Note 3 for more details. 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 financial statements, and reported in accumulated other comprehensive income (loss) as a separate component of shareholders’ 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 shareholder’s equity, which were recorded net of the income tax effect, will be reversed.

Other Investment Valuation (Investment Company Accounting)

Other Investment Valuation (Investment Company Accounting)

Prior to April 2, 2018, under the 1940 Act, the Company’s investment in Medallion Bank, as a wholly owned portfolio investment, was subject to quarterly assessments of fair value. The Company conducted a thorough valuation analysis, and also received an opinion regarding the valuation from an independent third party to assist the Board of Directors in its determination of the fair value of Medallion Bank on at least an annual basis. The Company’s analysis included factors such as various regulatory restrictions that were established at Medallion Bank’s inception, by the FDIC and State of Utah, and also by additional regulatory restrictions, such as the prior moratorium imposed by the Dodd-Frank Act on the acquisition of control of an industrial bank by a “commercial firm” (a company whose gross revenues are primarily derived from non-financial activities) which expired in July 2013 and the lack of any new charter issuances since the moratorium’s expiration. Because of these restrictions and other factors, the Company’s Board of Directors had previously determined that Medallion Bank had little value beyond its recorded book value. As a result of this valuation process, the Company had previously used Medallion Bank’s actual results of operations as the best estimate of changes in fair value, and recorded the results as a component of unrealized appreciation (depreciation) on investments. In the 2015 second quarter, the Company first became aware of external interest in Medallion Bank and its portfolio assets at values in excess of their book value. Expression of interest in Medallion Bank from both investment bankers and interested parties has continued. The Company incorporated these new factors in the Medallion Bank’s fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. In addition, in the 2016 third quarter there was a court ruling involving a marketplace lender that the Company believes heightened the interest of marketplace lenders to acquire or merge with Utah industrial banks. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Bank’s fair value, and this appreciation of $15,500,000 was thereby recorded in 2015, and additional appreciation of $128,918,000 was recorded in 2016, $7,849,000 was recorded in 2017, and $39,826,000 was recorded in the 2018 first quarter. Refer to Note 6 for additional details.

At December 31, 2017, there were non-marketable securities of $302,147,000 related to portfolio investments in controlled subsidiaries that were not consolidated with the Company. Because of the inherent uncertainty of valuations, the Board of Directors’ estimates of the values of the investments may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences could be material.

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 is amortized to interest income over the life of the loan. Effective April 2, 2018, the existing loan balances were adjusted to fair value in connection with the change in reporting, and balances, net of reserves and fees, became the opening balances.

Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At December 31, 2018 and December 31, 2017, net loan origination costs were $14,416,000 and $90,000 ($11,183,000 when combined with Medallion Bank). The 2018 amount reflects the amount of origination costs that were netted into the loan balances at April 2, 2018. Net amortization (accretion) to income for the years ended December 31, 2018, 2017 and 2016 was $3,128,000 ($3,993,000 when combined with Medallion Bank), $68,000 ($3,581,000 when combined with Medallion Bank), and ($49,000) ($3,440,000 when combined with Medallion Bank).

Interest income is recorded on the accrual basis. Taxicab 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 portfolio has different characteristics, typified by a larger number of lower dollar loans that have similar characteristics. A loan is considered to be impaired, or nonperforming, when based on current information and events, it is likely the Company will be unable 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 impaired. These 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 collection and recovery efforts against both the borrower and the underlying collateral are initiated. For the recreational consumer 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 to write 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 a recovery. Total loans more than 90 days past due were $20,154,000 at December 31, 2018, or 2.03% of the total loan portfolio, compared to $60,450,000, or 18.9% at December 31, 2017.

Loan collateral in process of foreclosure primarily includes taxicab 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. The taxicab medallion loan component reflects that the collection activities on the loans have transitioned from working with the borrower to the liquidation of the collateral securing the loans.

The Company had $40,500,000 and $183,529,000 of net loans pledged as collateral under borrowing arrangements at December 31, 2018 and December 31, 2017.

The Company accounts for its sales of loans in accordance with FASB Accounting Standards Codification Topic 860, Transfers and Servicing (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 $140,180,000 at December 31, 2018 and $338,867,000 at December 31, 2017, which included $311,988,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing aspect of its business in accordance with FASB ASC 860, which relates to servicing assets held by MFC (related to the remaining assets in Trust III) and Medallion Bank, and determined that no material servicing asset or liability existed as of December 31, 2018 and 2017. The Company assigned its servicing rights of the Medallion Bank portfolio to MSC. The costs of servicing were allocated to MSC by the Company, and the servicing fee income was billed to and collected from Medallion Bank by MSC.

Allowance for Loan Losses (Bank Holding Company Accounting)

Allowance for Loan Losses (Bank Holding Company Accounting)

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, prevailing economic conditions, and excess concentration risks. In analyzing the adequacy of the allowance for loan losses, the Company uses historical delinquency and actual loss rates with a one year lookback period for consumer loans. For commercial loans deemed nonperforming, the historical loss experience and other projections are looked at, and for medallion loans, nonperforming loans are valued at the median sales price over the most recent quarter, and performing medallion loans are reserved utilizing historical loss ratios over a three year lookback period. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. As a result, reserves of $5,708,000 were recorded by the Company as a general reserve on medallion loans as an additional buffer against future losses, not including the Bank general reserve of $17,351,000 which was netted against loan balances at consolidation on April 2, 2018. Credit losses are deducted from the allowance and subsequent recoveries are added back to the allowance.

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Investment Company Accounting)

Prior to April 2, 2018, under Investment Company Accounting, the Company’s loans, net of participations and any unearned discount, were considered investment securities under the 1940 Act and recorded at fair value. As part of the fair value methodology, loans were valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market existed for these loans, the fair value was determined in good faith by the Board of Directors. In determining the fair value, the Board of Directors considered factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, cash flows of the borrower, market conditions for loans (e.g. values used by other lenders and any active bid/ask market), historical loss experience, and the relationships between current and projected market rates and portfolio rates of interest and maturities. Investments other than securities, which represent collateral received from defaulted borrowers, were valued similarly.

Under Investment Company Accounting, the Company recognized unrealized appreciation (depreciation) on investments as the amount by which the fair value estimated by the Company is greater (less) than the cost basis of the investment portfolio. Realized gains or losses on investments are generated through sales of investments, foreclosure on specific collateral, and writeoffs of loans or assets acquired in satisfaction of loans, net of recoveries. Unrealized appreciation on investments was $139,700,000 as of December 31, 2017. Refer to Note 5 for additional details.

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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of December 31, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $53,982,000, and recognized $1,083,000 of amortization expense on the intangible assets for the year then ended (at a rate of $361,000 per quarter for three quarters). The Company engaged an expert to assess the goodwill and intangibles for impairment, who concluded there was no impairment on Medallion Bank and impairment on the RPAC intangible asset was $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the initial fair value detail inclusive of the goodwill and intangible assets related to the Bank as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
Medallion Bank
Assets
Net loans (1)			$	890,000
Other assets				130,393
Liabilities
Funds borrowed and other liabilities				(853,650	)
Total fair value excluding goodwill and intangibles				166,743
Goodwill				150,803
Intangibles				28,900
Total fair value (2)	$	346,446	$	346,446

(1) Includes $12,387 of premiums associated with the loan portfolio.

(2) Includes $26,303 of preferred stock held by the U.S. Treasury. See Note 21 for details.

The table below shows the initial fair value detail inclusive of the intangible assets related to RPAC as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
RPAC
Assets
Cash			$	1,647
Net fixed assets				774
Race cars and parts, net				203
Race cars held for sale				916
Other assets				1,902
Liabilities
Deferred revenue				(6,531	)
Notes payable (1)				(27,220	)
Other liabilities				(2,275	)
Total fair value excluding goodwill and intangibles				(30,584	)
Intangibles (2)				31,779
Total fair value (3)	$	1,195	$	1,195

(1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018.

(2) As of December 31, 2018 an assessment of the intangible asset resulted in impairment of $5,615 based upon the analysis of current market conditions using discounted cash flows.

(3) Fair value as of March 31, 2018 represents the Company’s investment in RPAC series D units.

The table below shows the details of the intangible assets as of December 31, 2018.

(in thousands)	December 31, 2018
Brand- related intellectual property	$	21,176
Home improvement contractor relationships		6,641
Race organization		26,165
Total intangible assets	$	53,982

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 $422,000, $94,000 ($232,000 had Medallion Bank been consolidated), and $110,000 ($225,000 had Medallion Bank been consolidated) for the years ended December 31, 2018, 2017, and 2016.

Deferred Costs

Deferred Costs

Deferred financing costs, included in other assets, represents costs associated with obtaining the Company’s borrowing facilities, and is amortized on a straight line basis over the lives of the related financing agreements. Amortization expense was $1,864,000, $925,000 ($2,255,000 had Medallion Bank been consolidated), and $722,000 ($2,091,000 had Medallion Bank been consolidated) for the years ended December 31, 2018, 2017, and 2016, recorded as interest expense. 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 amounts on the Company’s balance sheet for all of these purposes were $4,461,000 and $3,070,000 ($5,011,000 had Medallion Bank been consolidated) at December 31, 2018 and 2017.

Income Taxes

Income Taxes

Income taxes are accounted for using the asset and liability approach in accordance with FASB ASC Topic 740, Income Taxes (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 our 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. Under ASC 740, forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years. 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.

Sponsorship and Race Winnings

Sponsorship and Race Winnings

The Company accounts for the sponsorship and race winnings revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. Sponsorship revenue is recognized based upon the contract terms and only over the course of the whole season, will revenue be recognized evenly throughout the ten months. Race winnings revenue is recognized after each race during the season based upon terms provided by NASCAR and the placement of the driver.

Earnings (Loss) Per Share (EPS)

Earnings (Loss) Per Share (EPS)

Basic earnings (loss) per share are computed by dividing net income (loss)/net increase (decrease) in net assets resulting from operations available to common shareholders 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 giving consideration to 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.

	Years Ended December 31,
(Dollars in thousands)	2018			2017		2016
Net (loss)/net increase in net assets resulting from operations available to common shareholders	$	(25,046	)	$	278	$	23,515
Weighted average common shares outstanding applicable to basic EPS		24,214,978			23,919,994		24,123,888
Effect of dilutive stock options		—			439		230
Effect of restricted stock grants		—			132,874		48,902
Adjusted weighted average common shares outstanding applicable to diluted EPS		24,214,978			24,053,307		24,173,020
Basic earnings (loss) per share	$	(1.03	)	$	0.01	$	0.97
Diluted earnings (loss) per share		(1.03	)		0.01		0.97

Potentially dilutive common shares excluded from the above calculations aggregated 100,000, 366,245, and 346,232 shares as of December 31, 2018, 2017, and 2016.

Stock Compensation

Stock Compensation

The Company follows FASB ASC Topic 718 (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 is reflected in net increase in net income/net assets 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/net increase net assets 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 2018, 2017, and 2016, the Company issued 101,010, 327,251, and 48,527 restricted shares of stock-based compensation awards, and issued 39,000, 29,666, and 12,000 shares of other stock-based compensation awards, and recognized $576,000, $785,000, and $568,000, or $0.02, $0.03, and $0.02 per diluted common share for each respective year, of non-cash stock-based compensation expense related to the grants. As of December 31, 2018, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $244,000, which is expected to be recognized over the next 10 quarters (see Note 9).

Regulatory Capital

Regulatory Capital

Medallion 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 Medallion 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, Medallion Bank is subject to certain restrictions on any extensions of credit to, or other covered transactions, such as certain purchases of assets, with 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%, which would preclude their ability to pay dividends to the Company, and that an adequate allowance for loan losses be maintained. As of December 31, 2018, the Bank’s Tier 1 leverage ratio was 15.85%. 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			December 31, 2018			December 31, 2017
Common equity Tier 1 capital		—			—		$	141,608		$	137,494
Tier 1 capital		—			—			167,911			163,797
Total capital		—			—			180,917			176,876
Average assets		—			—			1,059,461			1,127,087
Risk-weighted assets		—			—			993,374			995,145
Leverage ratio (1)		4.0	%		5.0	%		15.8	%		14.5	%
Common equity Tier 1 capital ratio (2)		4.5			6.5			14.3			13.8
Tier 1 capital ratio (3)		6.0			8.0			16.9			16.5
Total capital ratio (3)		8.0			10.0			18.2			17.8

(1) Calculated by dividing Tier 1 capital by average assets.

(2) Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.

(3) Calculated by dividing Tier 1 or total capital by risk-weighted assets.

In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer on top of the minimum risk-based capital ratios. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and increased by 0.625% each subsequent January 1 until January 1, 2019. Including the buffer, commencing January 1, 2019, the Bank is required to maintain the following minimum capital ratios: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0%, a Tier 1 risk-based capital ratio of greater than 8.5% and a total risk-based capital ratio of greater than 10.5%.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value. The objective of this update is to modify the disclosure requirements as it relates to the fair value of assets and liabilities. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In January 2017, the FASB issued ASU 2017-04 Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The objective of this update is to simplify the subsequent measurement of goodwill, by eliminating step 2 from the goodwill impairment test. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not believe this update will have a material impact on its financial condition.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The main objective of this new standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial assets and other commitments to extend credit held by a reporting entity at each reporting date. The aftermath of the global economic crisis and the delayed recognition of credit losses associated with loans (and other financial instruments) was identified as a weakness in the application of existing accounting standards. Specifically, because the existing “incurred” loss model delays recognition until it is probable a credit loss was incurred, the FASB explored alternatives that would use more forward-looking information. Under the FASB’s new standard, the concepts used by entities to account for credit losses on financial instruments will fundamentally change. The existing “probable” and “incurred” loss recognition threshold is removed. Loss estimates are based upon lifetime “expected” credit losses. The use of past and current events must now be supplemented with “reasonable and supportable” expectations about the future to determine the amount of credit loss. The collective changes to the recognition and measurement accounting standards for financial instruments and their anticipated impact on the allowance for credit losses modeling have been universally referred to as the CECL (current expected credit loss) model. ASU 2016-13 applies to all entities and is effective for fiscal years beginning after December 15, 2019 for public entities and is effective for fiscal years beginning after December 15, 2020 for all other entities, with early adoption permitted. The Company is assessing the impact the update will have on its financial statements, and expects the update to have a significant impact on how the Company will account for estimated credit losses on its loans.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating under GAAP. ASU 2016-02 applies to all entities and is effective for fiscal years beginning after December 15, 2018 for public entities. The Company has assessed the impact the update will have on its financial condition and determined that effective January 1, 2019, a right-of-use asset and lease liability each of $13,997,000 would be recorded, and accrued/amortized over the remaining lease life terms. See Note 12 for additional information.

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)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Purchase Price Accounting

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 impairment testing on an annual basis. Intangible assets are amortized over their useful life of approximately 20 years. See below for detailed information on the fair value allocation as of April 2, 2018. As of December 31, 2018, the Company had goodwill of $150,803,000, which all related to the Bank, and intangible assets of $53,982,000, and recognized $1,083,000 of amortization expense on the intangible assets for the year then ended (at a rate of $361,000 per quarter for three quarters). The Company engaged an expert to assess the goodwill and intangibles for impairment, who concluded there was no impairment on Medallion Bank and impairment on the RPAC intangible asset was $5,615,000, which was recorded in the 2018 fourth quarter.

The table below shows the initial fair value detail inclusive of the goodwill and intangible assets related to the Bank as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
Medallion Bank
Assets
Net loans (1)			$	890,000
Other assets				130,393
Liabilities
Funds borrowed and other liabilities				(853,650	)
Total fair value excluding goodwill and intangibles				166,743
Goodwill				150,803
Intangibles				28,900
Total fair value (2)	$	346,446	$	346,446

(1) Includes $12,387 of premiums associated with the loan portfolio.

(2) Includes $26,303 of preferred stock held by the U.S. Treasury. See Note 21 for details.

The table below shows the initial fair value detail inclusive of the intangible assets related to RPAC as of April 2, 2018.

(in thousands)	Fair Value as of March 31, 2018		Allocation as of April 2, 2018
RPAC
Assets
Cash			$	1,647
Net fixed assets				774
Race cars and parts, net				203
Race cars held for sale				916
Other assets				1,902
Liabilities
Deferred revenue				(6,531	)
Notes payable (1)				(27,220	)
Other liabilities				(2,275	)
Total fair value excluding goodwill and intangibles				(30,584	)
Intangibles (2)				31,779
Total fair value (3)	$	1,195	$	1,195

(1) Includes $20,177 due to the Company and its affiliates as of March 31, 2018.

(2) As of December 31, 2018 an assessment of the intangible asset resulted in impairment of $5,615 based upon the analysis of current market conditions using discounted cash flows.

(3) Fair value as of March 31, 2018 represents the Company’s investment in RPAC series D units.

The table below shows the details of the intangible assets as of December 31, 2018.

(in thousands)	December 31, 2018
Brand- related intellectual property	$	21,176
Home improvement contractor relationships		6,641
Race organization		26,165
Total intangible assets	$	53,982

Summary of the Calculation of Basic and Diluted EPS

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

	Years Ended December 31,
(Dollars in thousands)	2018			2017		2016
Net (loss)/net increase in net assets resulting from operations available to common shareholders	$	(25,046	)	$	278	$	23,515
Weighted average common shares outstanding applicable to basic EPS		24,214,978			23,919,994		24,123,888
Effect of dilutive stock options		—			439		230
Effect of restricted stock grants		—			132,874		48,902
Adjusted weighted average common shares outstanding applicable to diluted EPS		24,214,978			24,053,307		24,173,020
Basic earnings (loss) per share	$	(1.03	)	$	0.01	$	0.97
Diluted earnings (loss) per share		(1.03	)		0.01		0.97

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			December 31, 2018			December 31, 2017
Common equity Tier 1 capital		—			—		$	141,608		$	137,494
Tier 1 capital		—			—			167,911			163,797
Total capital		—			—			180,917			176,876
Average assets		—			—			1,059,461			1,127,087
Risk-weighted assets		—			—			993,374			995,145
Leverage ratio (1)		4.0	%		5.0	%		15.8	%		14.5	%
Common equity Tier 1 capital ratio (2)		4.5			6.5			14.3			13.8
Tier 1 capital ratio (3)		6.0			8.0			16.9			16.5
Total capital ratio (3)		8.0			10.0			18.2			17.8

(1) Calculated by dividing Tier 1 capital by average assets.

(2) Calculated by subtracting preferred stock or non-controlling interests 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)

12 Months Ended

Dec. 31, 2018

Investments Schedule [Abstract]

Summary of Fixed Maturity Securities Available for Sale

Fixed maturity securities available for sale at December 31, 2018 consisted of the following:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	32,184	$	15	$	(742	)	$	31,457
State and municipalities		14,239		35		(407	)		13,867
Total	$	46,423	$	50	$	(1,149	)	$	45,324

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

The amortized cost and estimated market value of investment securities as of December 31, 2018 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.

(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	26	$	26
Due after one year through five years		9,040		8,834
Due after five years through ten years		11,487		11,218
Due after ten years		25,870		25,246
Total	$	46,423	$	45,324

Summary of Securities with Gross Unrealized Losses

Information pertaining to securities with gross unrealized losses at December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

	Less than Twelve Months					Twelve Months and Over
(Dollars in thousands)	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	(54	)	$	4,616	$	(688	)	$	24,871
State and municipalities		(78	)		5,429		(329	)		6,259
Total	$	(132	)	$	10,045	$	(1,017	)	$	31,130

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Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

Summary of Inclusive Capitalized Loans

The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2018.

(Dollars in thousands)	Amount			As a Percent of Gross Loans
Recreation	$	587,038			58	%
Home improvement		183,155			18
Commercial		64,083			6
Medallion		183,606			18
Total gross loans		1,017,882			100	%
Allowance for loan losses		(36,395	)
Total net loans	$	981,487

Summary of Activity in Allowance for Loan Losses

The following table sets forth the activity in the allowance for loan losses for the nine months ended December 31, 2018.

(Dollars in thousands)	Nine Months Ended December 31, 2018
Allowance for loan losses – beginning balance (1)	$	—
Charge-offs
Recreation		(12,697	)
Home improvement		(1,562	)
Commercial		—
Medallion		(14,277	)
Total charge-offs		(28,536	)
Recoveries
Recreation		4,437
Home improvement		905
Commercial		4
Medallion		577
Total recoveries		5,923
Net charge-offs		(22,613	)(2)
Provision for loan losses (3)		59,008
Allowance for loan losses – ending balance	$	36,395

(1) Beginning balance for the nine months ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances, resulting in a starting point of zero for this table.

(2) As of December 31, 2018, cumulative charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $215,789, representing collection opportunities for the Company.

(3) Includes $5,708 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 16% of the total allowance, and 3.54% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018.

Summary of Composition of Allowance for Loan Losses by Type of Loan

The following table sets forth the composition of the allowance for loan losses by type as of December 31, 2018.

(Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category
Recreation	$	6,856		19	%		1.17	%
Home Improvement		1,796		5			0.98
Commercial		—		—			0.00
Medallion		27,743		76			15.11
Total	$	36,395		100	%		3.58	%

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 medallion portfolio. The decline reflects the charge-offs of certain loans and their movement to loan collateral in process of foreclosure. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

	Bank Holding Company Accounting		Investment Company Accounting
(Dollars in thousands)	December 31, 2018		December 31, 2017 (1)		December 31, 2016 (2)
Total nonaccrual loans	$	34,877	$	98,494	$	77,161
Interest foregone for the year		1,153		823		1,317
Amount of foregone interest applied to principal for the year		535		52		638
Interest foregone life-to-date		1,952		12,485		10,658
Amount of foregone interest applied to principal life-to-date		1,214		3,495		7,834
Percentage of nonaccrual loans to gross loan portfolio		3%		31%		20%

(1) Does not include Medallion Bank nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

(2) Does not include Medallion Bank nonaccrual loans of $52,020, interest income foregone for the year of $683 and foregone interest paid and applied to principal for the year of $402, interest income foregone life-to-date of $1,034 and foregone interest paid and applied to principal life-to-date of $520.

Summary of Performance Status of Loan

The following presents our performance status of loans as of December 31, 2018 under Bank Holding Company Accounting.

(Dollars in  thousands)	Performing		Nonperforming		Total		Percentage of Nonperforming to Total
Recreation	$	581,250	$	5,788	$	587,038		0.99	%
Home improvement		183,018		137		183,155		0.07
Commercial		60,249		3,834		64,083		5.98
Medallion		158,488		25,118		183,606		13.68
Total	$	983,005	$	34,877	$	1,017,882		3.43	%

Summary of Attributes of Nonperforming Loan Portfolio

The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2018 under Bank Holding Company Accounting, all of which had an allowance recorded against the principal balance.

	December 31, 2018						Nine Months Ended December 31, 2018
(Dollars in  thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Investment Recorded		Interest Income (Expense) Recognized
With an allowance recorded
Recreation	$	5,788	$	5,788	$	204	$	6,165	$	357
Home improvement		137		137		3		137		—
Commercial		3,834		3,929		—		6,036		(12)
Medallion		25,118		26,237		22,035		46,176		482
Total with allowance	$	34,877	$	36,091	$	22,242	$	58,514	$	827
Total nonperforming loans	$	34,877	$	36,091	$	22,242	$	58,514	$	827

The following table provides additional information on attributes of the nonperforming loan portfolio as of December 31, 2017 under Investment Company Accounting.

(Dollars in  thousands)	Recorded Investment (1) (2)		Unpaid Principal Balance		Average Recorded Investment
December 31, 2017
Medallion (3)	$	79,871	$	82,612	$	128,671
Commercial (3)		18,623		20,491		18,792

(1) As of December 31, 2017, $20,851 of unrealized depreciation was recorded as a valuation allowance on these loans.

(2) Interest income of $1,729 was recognized on loans for the year ended December 31, 2017.

(3) Included in the unpaid principal balance is unearned paid-in-kind interest on nonaccrual loans of $4,609 as of December 31, 2017, which is included in the nonaccrual disclosures on page F-25.

Summary of Aging of Loans

The following tables show the aging of all loans as of December 31, 2018 and December 31, 2017.

Bank Holding Company Accounting	Days Past Due												Recorded Investment > 90 Days and Accruing
December 31, 2018 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total (1)
Recreation	$	18,483	$	5,655	$	4,020	$	28,158	$	539,051	$	567,209	$	—
Home improvement		715		283		135		1,133		184,528		185,661		—
Commercial		—		454		279		733		63,350		64,083		—
Medallion		8,689		3,652		15,720		28,061		148,774		176,835		—
Total	$	27,887	$	10,044	$	20,154	$	58,085	$	935,703	$	993,788	$	—

(1) Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

Investment Company Accounting	Days Past Due												Recorded Investment > 90 Days and Accruing
December 31, 2017 (Dollars in thousands)	31-60		61-90		91 +		Total		Current		Total
Medallion loans	$	16,049	$	12,387	$	59,701	$	88,137	$	140,279	$	228,416	$	265
Commercial loans
Secured mezzanine		—		—		—		—		88,334		88,334		—
Other secured commercial		—		—		749		749		1,728		2,477		—
Total commercial loans		—		—		749		749		90,062		90,811		—
Total	$	16,049	$	12,387	$	60,450	$	88,886	$	230,341	$	319,227	$	265

Summary of Troubled Debt Restructurings

The following table shows the troubled debt restructurings which the Company entered into during the year ended December 31, 2018.

(Dollars in  thousands)	Number of Loans		Pre- Modification Investment		Post- Modification Investment
Medallion loans		11	$	5,581	$	5,581

The following table shows troubled debt restructurings which the Company entered into during the year ended December 31, 2017.

(Dollars in thousands)	Number of Loans		Pre-Modification Investment		Post- Modification Investment
Medallion loans		63	$	39,898	$	39,824
Commercial loans		2		6,547		6,547
Total		65	$	46,445	$	46,371

Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallions Loans

The following table shows the activity of the loans in process of foreclosure, which relates only to the recreation and medallions loans, for the nine months ended December 31, 2018.

(Dollars in thousands)	Recreation			Medallions			Total
Loans in process of foreclosure – beginning balance (1)	$	1,369		$	51,479		$	52,848
Transfer from loans		9,289			25,369			34,658
Loan in process of foreclosure sales		(451	)		(2,533	)		(2,984	)
Principal payments		—			(4,275	)		(4,275	)
Collateral adjustment		(4,350	)		(4,122	)		(8,472	)
Liquidation		(4,354	)		(62	)		(4,416	)
Deconsolidation of Trust III		—			(17,864	)		(17,864	)
Total	$	1,503		$	47,992		$	49,495

(1) Beginning balance for the nine months ended December 31, 2018 reflects the transition to Bank Holding Company Accounting by reclassifying the medallions loans of the Company of $31,099,000 from investments to loans in process of foreclosure as of April 2, 2018.

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Investments [Abstract]

Schedule of Unrealized Appreciation (Depreciation) on Investments

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Subsidiaries		Equity Investments			Investment Securities			Investments Other Than Securities			Total
Balance December 31, 2015	$	(3,438	)	$	(2,239	)	$	18,640	$	2,582		$	(18	)	$	28,956		$	44,483
Net change in unrealized
Appreciation on investments		—			—			133,805		2,979			7			(28,372	)		108,419
Depreciation on investments		(28,028	)		318			305		—			5			—			(27,400	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(1,627	)		—			—			(1,627	)
Losses on investments		2,943			543			—		—			12			—			3,498
Other		—			—			—		—			(6	)		—			(6	)
Balance December 31, 2016		(28,523	)		(1,378	)		152,750		3,934			—			584			127,367
Net change in unrealized
Appreciation on investments		—			—			6,170		2,060			—			(821	)		7,409
Depreciation on investments		(37,335	)		(410	)		—		(277	)		—			(1,253	)		(39,275	)
Reversal of unrealized appreciation (depreciation) related to realized
Gains on investments		—			—			—		(3,082	)		—			—			(3,082	)
Losses on investments		45,520			1,275			—		486			—			—			47,281
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

Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio

	Three Months Ended March 31, 2018			Years Ended December 31,
(Dollars in thousands)				2017			2016
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation	$	(998	)	$	2,060		$	2,986
Unrealized depreciation		(38,152	)		(38,022	)		(27,705	)
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		29,115			9,483			130,121
Realized gains		—			(3,082	)		(1,627	)
Realized losses		34,747			47,281			3,498
Net unrealized losses on investments other than securities and other assets		(1,915	)		(2,075	)		(28,387	)
Total	$	22,797		$	15,645		$	78,886
Net realized gains (losses) on investments
Realized gains	$	—		$	3,082		$	—
Realized losses		(34,747	)		(47,281	)		(3,486	)
Other gains		—			4,684			4,140
Direct charge-offs		2			(4,229	)		(197	)
Total	$	(34,745	)	$	(43,744	)	$	457

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Investments in Medallion Bank and Other Controlled Subsidiaries (Tables)

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries

The following table presents information derived from Medallion Bank’s statement of comprehensive income and other valuation adjustments on other controlled subsidiaries for the years ended December 31, 2017 and 2016.

(Dollars in thousands)	2017			2016
Statement of comprehensive income
Investment income	$	111,281		$	103,454
Interest expense		13,869			11,762
Net interest income		97,412			91,692
Noninterest income		121			308
Operating expenses (1)		26,032			24,281
Net investment income before income taxes		71,501			67,719
Income tax provision (benefit)		15,093			(326	)
Net investment income after income taxes		56,408			68,045
Net realized/unrealized losses of Medallion Bank (1)		(51,696	)		(66,328	)
Net increase in net assets resulting from operations of Medallion Bank		4,712			1,717
Unrealized appreciation on Medallion Bank (2)		5,482			123,667
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank		(711	)		4,737
Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	9,483		$	130,121

(1) Excluded from operating expenses and included in net realized/unrealized losses of Medallion Bank were $1,476 and $0 of unrealized losses on other assets for 2017 and 2016.

(2) Unrealized appreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the U.S. Treasury, and the fair value adjustments to the carrying amount of Medallion Bank.

Schedule of Balance Sheet and Net Investments in Other Controlled Subsidiaries

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

(Dollars in thousands)	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 (1)		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 (2)	$	302,147

(1) Includes $26,303 of preferred stock issued to the U.S. 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.

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Funds Borrowed (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Outstanding Balances of Funds Borrowed

The outstanding balances of funds borrowed were as follows:

	Payments Due for the Fiscal Year Ending December 31,												Bank Holding Company Accounting December 31, 2018		Investment Company Accounting December 31, 2017		Interest Rate (1)
(Dollars in  thousands)	2019		2020		2021		2022		2023		Thereafter
Deposits	$	325,890	$	191,054	$	158,846	$	136,508	$	35,742	$	—	$	848,040	$	—		2.14	%
DZ loan		—		—		—		—		—		—		—		99,984		—
SBA debentures and borrowings		3,226		25,873		8,500		—		5,000		37,500		80,099		79,564		3.40	%
Notes payable to banks		51,452		458		7,145		280		280		—		59,615		81,450		4.55	%
Retail notes (2)		—		—		33,625		—		—		—		33,625		33,625		9.00	%
Preferred securities (2)		—		—		—		—		—		33,000		33,000		33,000		4.86	%
Other borrowings		500		7,149		—		—		—		—		7,649		—		2.00	%
Total	$	381,068	$	224,534	$	208,116	$	136,788	$	41,022	$	70,500	$	1,062,028	$	327,623		2.67	%

(1) Weighted average contractual rate as of December 31, 2018.

(2) Relates to loans held at the Company, Parent Company only.

Summary of Time Deposits on Basis of Their Maturity

The table presents time deposits of $100,000 or more by their maturity:

(Dollars in  thousands)	December 31, 2018
Three months or less	$	72,280
Over three months through six months		110,012
Over six months through one year		143,598
Over one year		522,150
Total deposits	$	848,040

Summary of Key Attributes of Various Borrowing Arrangements with Lenders

The table below summarizes the key attributes of the Company’s various borrowing arrangements with these lenders as of December 31, 2018.

(Dollars in thousands)
Borrower	# of Lenders/ Notes		Note Dates		Maturity Dates		Type	Note Amounts			Balance Outstanding at December 31, 2018		Monthly Payment			Average Interest Rate at December 31, 2018			Interest Rate Index(1)
The Company		6/6		4/11 - 8/14		3/19 - 7/19	Term loans and demand notes secured by pledged loans (2)	$	38,870	(2)	$	38,870		Interest only	(3)		5.09	%		Various	(3)
Medallion  Chicago		3/28		11/11 - 12/11		6/19 - 9/21	Term loans secured by owned Chicago medallions (4)		25,708			19,345		$171 of principal & interest			3.50	%		N/A
Medallion  Funding		1/1		11/18		12/23			1,400			1,400		$70 principal & interest paid quarterly			4.00	%		N/A
								$	65,978		$	59,615

(1) At December 31, 2018, 30 day LIBOR was 2.50%, 360 day LIBOR was 3.01%, and the prime rate was 5.50%.

(2) One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.

(3) Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $75.

(4) Guaranteed by the Company.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

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 December 31, 2018 and 2017.

(Dollars in thousands)	2018			2017
Goodwill and other intangibles/unrealized gain on investment in Medallion Bank	($	45,272	)	($	35,297	)
Provision for loan losses/unrealized losses on loans and nonaccrual interest		25,790			10,071
Net operating loss carryforwards (1)		11,132			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 assets		1,844			782
Unrealized gains on other investments		(2,024	)		(542	)
Total deferred tax liability		(8,530	)		(29,383	)
Valuation allowance		(255	)		(39	)
Deferred tax liability, net		(8,785	)		(29,422	)
Taxes receivable		1,812			16,886
Net deferred and other tax liabilities	($	6,973	)	($	12,536	)

(1) As of December 31, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $1,969 as of the balance sheet date.

Schedule of Components of Tax Provision (Benefit)

The components of our tax benefit (provision) for the years ended December 31, 2018, 2017, and 2016 were as follows.

(Dollars in thousands)	2018			2017			2016
Current
Federal	($	2,797	)	$	15,613		$	2,690
State		(1,078	)		756			689
Deferred
Federal		5,270			(4,169	)		(39,028	)
Federal income tax rate change		—			17,279			—
State		(1,464	)		6,747			(10,251	)
Net benefit (provision) for income taxes	($	69	)	$	36,226		($	45,900	)

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 (provision) to consolidated actual income tax (benefit) expense reported for the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands)	2018			2017			2016
Statutory Federal Income tax at 21% (35% in 2017 and 2016)	$	4,935		$	12,582		($	24,295	)
State and local income taxes, net of federal income tax benefit		440			645			(3,829	)
Federal income tax rate change		—			17,279			—
Change in effective state income tax rate		(2,564	)		3,232			—
Utilization of carry forwards		(910	)		2,284			—
Appreciation of Medallion Bank		(1,974	)		1,050			—
Conversion to a taxable corporation		—			—			(16,630	)
Book impairment of goodwill		—			—			(2,065	)
Other		4			(846	)		919
Total income tax benefit (provision)	($	69	)	$	36,226		($	45,900	)

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Stock Options and Restricted Stock (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Assumption Categories Used to Determine Value of Option Grants

The following assumption categories are used to determine the value of any option grants.

	Year ended December 31,
	2018			2017			2016
Risk free interest rate		2.82	%		1.84	%		1.22	%
Expected dividend yield		4.86			7.39			10.13
Expected life of option in years (1)		6.00			6.00			6.00
Expected volatility (2)		30.00	%		30.00	%		30.00	%

(1) Expected life is calculated using the simplified method.

(2) We determine our expected volatility based on our historical volatility.

Summary of Activity for Stock Option Programs

The following table presents the activity for the stock option programs for the years ended December 31, 2018, 2017, and 2016.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2015		446,254		$	7.49-13.84	$	10.38
Granted		12,000			7.10		7.10
Cancelled		(110,636	)		9.22-13.84		12.25
Exercised (1)		(2,100	)		9.22		9.22
Outstanding at December 31, 2016		345,518			7.10-13.84		9.67
Granted		29,666			2.14-2.61		2.35
Cancelled		(54,558	)		10.76-11.21		10.94
Exercised (1)		—			—		—
Outstanding at December 31, 2017		320,626			2.14-13.84		8.78
Granted		39,000			5.27-5.58		5.46
Cancelled		(214,960	)		9.22-9.24		9.22
Exercised (1)		—			—		—
Outstanding at December 31, 2018 (2)		144,666		$	2.06-13.84	$	7.23
Options exercisable at
December 31, 2016		312,518		$	7.49-13.84	$	9.75
December 31, 2017		273,960			7.10-13.84		9.50
December 31, 2018 (2)		81,889			2.14-13.84		9.25

(1) The aggregate intrinsic value, 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 $0, $0, and $0 for 2018, 2017, and 2016.

(2) The aggregate intrinsic value, which represents the difference between the price of the Company’s common stock at December 31, 2018 and the related exercise price of the underlying options, was $69,000 for outstanding options and $23,000 for exercisable options as of December 31, 2018. The remaining contractual life was 6.97 years for outstanding options and 5.35 years for exercisable options at December 31, 2018.

Summary of Activity for Restricted Stock Programs

The following table presents the activity for the restricted stock programs for the years ended December 31, 2018, 2017, and 2016.

	Number of Shares			Grant Price Per Share		Weighted Average Grant Price
Outstanding at December 31, 2015		209,040		$	9.08-15.61	$	10.96
Granted		48,527			3.95-7.98		4.47
Cancelled		(11,325	)		9.92-15.61		11.17
Vested (1)		(78,539	)		9.08-15.61		11.38
Outstanding at December 31, 2016		167,703			3.95-13.46		8.88
Granted		327,251			2.06-3.93		2.48
Cancelled		(8,988	)		2.14-10.08		3.07
Vested (1)		(77,384	)		9.08-13.46		11.09
Outstanding at December 31, 2017		408,582			2.06-10.38		3.45
Granted		101,010			3.93-5.27		4.41
Cancelled		(9,737	)		3.93-9.08		4.66
Vested (1)		(308,940	)		2.06-10.38		3.35
Outstanding at December 31, 2018 (2)		190,915		$	2.14-5.27	$	4.06

(1) The aggregate fair value of the restricted stock vested was $1,270,000, $169,000, and $722,000 for 2018, 2017, and 2016.

(2) The aggregate fair value of the restricted stock was $895,000 as of December 31, 2018. The remaining vesting period was 1.21 years at December 31, 2018.

Summary of Activity for Unvested Options Outstanding

The following table presents the activity for the unvested options outstanding under the plans for the year ended December 31, 2018.

	Number of Options			Exercise Price Per Share		Weighted Average Exercise Price
Outstanding at December 31, 2017		46,666		$	2.14-9.38	$	4.52
Granted		39,000			5.27-5.58		5.46
Cancelled		—			—		—
Vested		(22,889	)		2.14-9.38		5.95
Outstanding at December 31, 2018		62,777		$	2.14-7.10	$	4.59

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Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations

The following table presents the Company’s quarterly results of operations for the years ended December 31, 2018, 2017, and 2016.

(Dollars in thousands, except per share data)	March 31			June 30			September 30			December 31
2018 Quarter Ended (1)
Net interest income/net investment income	$	482		$	24,719		$	24,265		$	23,003
Income (loss) before income taxes/net investment loss before taxes		(3,566	)		(17,905	)		(3,963	)		14,712
Net income (loss) after taxes/net decrease on net assets resulting from operations		(14,874	)		(13,884	)		(3,846	)		9,865
Net income (loss) attributable to Medallion Financial Corp./net decrease in net assets resulting from operations		(14,874	)		(14,647	)		(4,697	)		9,172
Basic	($	0.62	)	($	0.60	)	($	0.19	)	$	0.38
Diluted		(0.62	)		(0.60	)		(0.19	)		0.38
2017 Quarter Ended
Investment income	$	4,250		$	3,787		$	5,567		$	6,020
Net investment loss after income taxes		(435	)		(1,293	)		(2,490	)		(2,903	)
Net increase (decrease) in net assets resulting from operations		1,111			(4,797	)		619			3,345
Net increase (decrease) in net assets resulting from operations per common share
Basic	$	0.05		($	0.20	)	$	0.03		$	0.14
Diluted		0.05			(0.20	)		0.03			0.14
2016 Quarter Ended
Investment income	$	8,986		$	5,836		$	5,269		$	4,997
Net investment income (loss) after income taxes		2,039			(1,402	)		(2,606	)		2,088
Net increase in net assets resulting from operations		6,848			4,568			5,043			7,056
Net increase in net assets resulting from operations per common share
Basic	$	0.28		$	0.19		$	0.21		$	0.29
Diluted		0.28			0.19			0.21			0.29

(1) The three months ended March 31, 2018 have been accounted for under Investment Company Accounting and subsequent 2018 quarters have been accounted for under Bank Holding Company Accounting.

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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Data

The following table presents segment data at December 31, 2018 and for the nine months then ended.

Nine Months Ended December 31, 2018	Consumer Lending						Commercial Lending			Medallion Lending			RPAC			Corp. and Other			Consolidated
(Dollars in thousands)	Recreation			Home Improvement
Total interest income	$	68,870		$	12,799		$	7,459		$	6,317		$	—		$	1,358		$	96,803
Total interest expense		6,986			2,290			2,037			10,125			121			3,257			24,816
Net interest income (loss)		61,884			10,509			5,422			(3,808	)		(121	)		(1,899	)		71,987
Provision for loan losses		15,118			2,453			—			41,437			—			—			59,008
Net interest income after loss provision		46,766			8,056			5,422			(45,245	)		(121	)		(1,899	)		12,979
Sponsorship and race winnings		—			—			—			—			14,368			—			14,368
Race team related expenses		—			—			—			—			(7,121	)		—			(7,121	)
Other income (expense)		(14,242	)		(3,093	)		(1,917	)		9,742			(11,476	)		(6,396	)		(27,382	)
Net income before taxes		32,524			4,963			3,505			(35,503	)		(4,350	)		(8,295	)		(7,156	)
Income tax benefit (provision)		(8,579	)		(1,319	)		(808	)		7,938			1,108			951			(709	)
Net income (loss) after tax	$	23,945		$	3,644		$	2,697		($	27,565	)	($	3,242	)	($	7,344	)	($	7,865	)
Balance Sheet Data
Total loans net	$	580,182		$	181,359		$	64,083		$	155,863		$	—		$	—		$	981,487
Total assets		590,746			188,892			90,264			273,501			29,925			208,522			1,381,846
Total funds borrowed		434,527			143,815			51,266			294,465			7,649			130,306			1,062,028
Selected Financial Ratios
Return on assets		5.48	%		2.56	%		3.59	%		(10.13	%)		(11.69	%)		(4.13	%)		(0.90	%)
Return on equity		22.60			11.30			7.52			NM			NM			(13.18	)		(4.62	)
Interest yield		15.78			9.06			12.61			3.58			N/A			N/A			10.98
Net interest margin		14.18			7.44			9.17			(2.16	)		N/A			N/A			8.19
Reserve coverage		1.17			0.98			0.00			15.11			N/A			N/A			3.58
Delinquency ratio		0.69			0.07			0.44			8.89			N/A			N/A			2.03
Charge-off ratio		1.89			0.46			0.00			7.21			N/A			N/A			2.73

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments Under Employment Agreements

Employment agreements expire at various dates through 2023. At December 31, 2018, minimum payments under employment agreements were as follows:

(Dollars in thousands)
2019	$	2,062
2020		889
2021		665
2022		665
2023		277
Thereafter		—
Total	$	4,558

Schedule of Minimum Rental Commitments For Non-Cancelable Leases

Commitments for leased premises expire at various dates through April 30, 2027. At December 31, 2018, minimum rental commitments for non-cancelable leases were as follows:

(Dollars in thousands)
2019	$	2,357
2020		2,380
2021		2,278
2022		2,216
2023		2,136
Thereafter		6,048
Total	$	17,415

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Summary of net revenue received

The following table summarizes the net revenues received from Medallion Bank not eliminated under Investment Company Accounting.

	Three Months Ended March 31,		Year Ended December 31,
(Dollars in thousands)	2018		2017		2016
Reimbursement of operating expenses	$	250	$	865	$	1,006
Loan origination and servicing fees		6		5		229
Total other income	$	256	$	870	$	1,235

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Other Operating Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Summary of Major Components of Other Expenses

The major components of other expenses were as follows.

	Three Months Ended,		Year ended December 31,
(Dollars in thousands)	March 31, 2018		2017		2016
Directors’ fees	$	89	$	319	$	387
Miscellaneous taxes		120		258		328
Computer expense		74		244		257
Other expenses		304		727		574
Total other operating expenses	$	587	$	1,548	$	1,546

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Selected Financial Ratios and Other Data (Tables)

12 Months Ended

Dec. 31, 2018

Investment Company [Abstract]

Summary of Selected Financial Ratios and Other Data

The following table provides selected financial ratios and other data for the periods indicated.

	Three Months Ended March 31,			Year ended December 31,
(Dollars in thousands, except per share data)	2018			2017			2016			2015			2014
Net share data
Net asset value at the beginning of the year	$	11.80		$	11.91		$	11.42		$	11.16		$	10.95
Net investment income (loss)		(0.15	)		(0.33	)		(0.41	)		0.69			0.60
Income tax provision (benefit)		0.03			1.51			(1.90	)		0.00			0.00
Net realized gains (losses) on investments		(1.44	)		(1.82	)		0.02			0.31			(0.22	)
Net change in unrealized appreciation on investments		0.94			0.65			3.26			0.20			0.76
Net increase (decrease) in net assets resulting from operations		(0.62	)		0.01			0.97			1.20			1.14
Issuance of common stock		(0.03	)		(0.12	)		—			—			(0.01	)
Repurchase of common stock		—			—			0.12			0.06			0.03
Distribution of net investment income		—			—			(0.60	)		(0.81	)		(0.60	)
Return of capital		—			—			—			(0.18	)		(0.35	)
Distribution of net realized gains on investments		—			—			—			—			—
Total distributions		—			—			(0.60	)		(0.99	)		(0.95	)
Other		—			—			—			(0.01	)		—
Total increase (decrease) in net asset value		(0.65	)		(0.11	)		0.49			0.26			0.21
Net asset value at the end of the period/year (1)	$	11.15		$	11.80		$	11.91		$	11.42		$	11.16
Per share market value at beginning of year	$	3.53		$	3.02		$	7.04		$	10.01		$	14.35
Per share market value at end of period/year		4.65			3.53			3.02			7.04			10.01
Total return (2)		(129	%)		17	%		(54	%)		(22	%)		(25	%)
Ratios/supplemental data
Total shareholders’ equity (net assets)	$	272,437		$	287,159		$	286,096		$	278,088		$	274,670
Average net assets		284,021			285,704			276,978			276,745			276,254
Total expense ratio (3) (4) (5)		10.02	%		(3.03	%)		29.36	%		9.45	%		9.57	%
Operating expenses to average net assets (4) (5)		5.87			4.83			8.23			6.04			6.48
Net investment income (loss) after income taxes to average net assets (4) (5)		(4.61	)		(2.49	)		0.04			6.08			5.48

(1) Includes $0.00 of undistributed net investment income per share as of three months ended March 31, 2018 and December 31, 2017, 2016, 2015 and 2014, and $0.00 of undistributed net realized gains per share for all periods presented.

(2) Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.

(3) Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

(4) MSC has assumed certain of the Company’s servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, $5,658, and $5,946, and operating expenses of $1,150, $4,211, $5,249, $6,044, and $6,005 which formerly were the Company’s, were now MSC’s for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, 2015, and 2014. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, 11.63%, 8.23%, and 5.94% in 2015, and 11.74%, 8.65%, and 5.46% in 2014.

(5) These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff, the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Investments, All Other Investments [Abstract]

Summary of Carrying Values and Fair Values of Financial Instruments

(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.

	Bank Holding Company Accounting December 31, 2018				Investment Company Accounting December 31, 2017
(Dollars in  thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and federal funds sold (1)	$	57,713	$	57,713	$	12,690	$	12,690
Equity investments		9,197		9,197		—		—
Investment securities		45,324		45,324		—		—
Loans receivable		981,487		981,487		—		—
Investments		—		—		610,135		610,135
Accrued interest receivable (2)		7,413		7,413		547		547
Financial liabilities
Funds borrowed (3)		1,062,028		1,062,297		327,623		330,084
Accrued interest payable (2)		3,852		3,852		3,831		3,831

(1) Categorized as level 1 within the fair value hierarchy.

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

(3) As of December 31, 2018 and 2017, publicly traded unsecured notes traded at a premium to par of $269 and $2,461.

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Fair Value of Assets and liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2018.

Bank Holding Company Accounting (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,197	$	9,197
Available for sale investment securities (1)		—		45,324		—		45,324
Total	$	—	$	45,324	$	9,197	$	54,521

(1) Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 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 recurring basis as of December 31, 2017.

Investment Company Accounting (Dollars in  thousands)	Level 1		Level 2		Level 3		Total
Assets
Medallion loans	$	—	$	—	$	208,279	$	208,279
Commercial loans		—		—		90,188		90,188
Investments in Medallion Bank and other controlled subsidiaries		—		—		302,147		302,147
Equity investments		—		—		9,521		9,521
Investments other than securities		—		—		7,450		7,450
Other assets		—		—		339		339

Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities

The following tables provide a summary of changes in fair value of the Company’s level 3 assets and liabilities for the nine months ended December 31, 2018 under Bank Holding Company Accounting, and for the quarter ended March 31, 2018 and year ended December 31, 2017 under Investment Company Accounting.

(Dollars in  thousands)	Equity Investments
March 31, 2018	$	9,458
Losses included in earnings		(1,274	)
Purchases, investments, and issuances		1,232
Sales, maturities, settlements, and distributions		(1,596	)
Transfers in (1)		1,377
December 31, 2018	$	9,197
Amounts related to held assets (2)	($	1,851	)

(1) Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

(2) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.

(Dollars in  thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Gains (losses) included in earnings		(38,190	)		(8	)		29,143			(993	)		(1,915	)		—
Purchases, investments, and issuances		7			7,252			462			935			—			—
Sales, maturities, settlements, and distributions		(8,941	)		(3,812	)		(583	)		(5	)		—			—
March 31, 2018	$	161,155		$	93,620		$	331,169		$	9,458		$	5,535		$	339
Amounts related to held assets (1)	($	38,190	)	($	10	)	$	29,143		($	993	)	($	1,915	)	$	—

(1) Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018.

(Dollars in thousands)	Medallion Loans			Commercial Loans			Investments in Medallion Bank & Other Controlled Subsidiaries			Equity Investments			Investments Other Than Securities			Other Assets
December 31, 2016	$	266,816		$	83,634		$	293,360		$	8,407		$	9,510		$	354
Gains (losses) included in earnings		(41,555	)		(491	)		10,761			4,727			(2,060	)		(15	)
Purchases, investments, and issuances		1,953			25,517			441			1,660			—			—
Sales, maturities, settlements, and distributions		(18,935	)		(18,472	)		(2,415	)		(5,273	)		—			—
December 31, 2017	$	208,279		$	90,188		$	302,147		$	9,521		$	7,450		$	339
Amounts related to held assets (1)	$	37,335		($	410	)	$	10,756		$	1,941		($	2,060	)	($	15	)

(1) Total unrealized gains (losses) included in income for the year which relate to assets held as of December 31, 2017.

Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2018 under Bank Holding Company Accounting.

2018 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Impaired loans	$	—	$	—	$	34,877	$	34,877
Loan collateral in process of foreclosure		—		—		49,495		49,495
Total	$	—	$	—	$	84,372	$	84,372

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

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2018 were as follows under Bank Holding Company Accounting.

(Dollars in  thousands)	Fair Value at 12/31/18		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments		$5,683	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
		1,850	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee		N/A
			Precedent arm’s length offer	Business enterprise value		$6,014 – $7,214
				Business enterprise value/revenue multiples		0.96x – 4.54x
		1,455	Precedent market transaction	Offering price		$8.73 / share
		209	Investee book value	Valuation indicated by investee filings		N/A

The valuation techniques and significant unobservable inputs used in recurring level 3 fair value measurements of assets and liabilities as of December 31, 2017 were as follows under Investment Company Accounting.

(Dollars in  thousands)	Fair Value at 12/31/17		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Medallion Loans		$208,279	Precedent market transactions	Adequacy of collateral (loan to value)		1% - 420% (131%)
Commercial Loans – Mezzanine and Other		90,188	Borrower financial analysis	Financial condition and operating performance of		N/A
				the borrower Portfolio yields		2% -19.00% (12.02%)
Investment in Medallion Bank		290,548	Precedent M&A transactions	Price/book value multiples		2.1x to 2.5x
				Price/earnings multiples		8.7x to 10.6x
			Discounted cash flow	Discount rate		17.50%
				Terminal value		$470,964 to $623,007
Investment in Other Controlled Subsidiaries		4,623	Investee financial analysis	Financial condition and operating performance		N/A
				Enterprise value		$37,500 - $41,500
				Equity value		$2,000 - $5,000
		3,878	Investee book value adjusted for asset appreciation	Financial condition and operating performance of the investee		N/A
				Third party valuation/ offer to purchase asset		N/A
		3,001	Investee book value adjusted for market appreciation	Financial condition and operating performance of the investee		N/A
				Third party offer to purchase investment		N/A
		97	Investee book value and equity pickup	Financial condition and operating performance of the investee		N/A
Equity Investments		5,417	Investee financial analysis	Financial condition and operating performance of the borrower		N/A
				Collateral support		N/A
		2,193	Investee financial analysis	Equity value		$2,000 - $5,000
				Preferred equity yield		12%
		1,455	Precedent market transaction	Offering price		$8.73/share
		456	Investee book value	Valuation indicated by investee filings		N/A
Investments Other Than Securities		7,450	Precedent market transaction	Transfer prices of Chicago medallions		N/A
			Cash flow analysis	Discount rate in cash flow analysis		6%
Other Assets		339	Borrower collateral analysis	Adequacy of collateral (loan to value)		0%

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Investments Other Than Securities (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Investments [Abstract]

Summary of Investment Other Than Securities

The following table presents the Company’s investments other than securities as of December 31, 2017 under Investment Company Accounting.

Investment Type (Dollars in thousands)	Number of Investments			Investment Cost		Value as of 12/31/17
City of Chicago taxicab medallions		154	(1)	$	8,411	$	7,238	(2)
City of Chicago taxicab medallions (handicap accessible)		5	(1)		278		212	(3)
Total investments other than securities				$	8,689	$	7,450

(1) Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying asset under the 1940 Act.

(2) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for federal income tax purposes was $1,392 at December 31, 2017.

(3) Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for federal income tax purposes was $40 at December 31, 2017.

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Parent Company Only Condensed Financial Statements (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

The following shows the condensed financial information of Medallion Financial Corp. (parent company only) under Bank Holding Company Accounting.

Condensed balance sheet

(Dollars in thousands)	December 31, 2018
Assets
Cash	$	1,110
Net loans receivable		37,737
Loans collateral in process of foreclosure		12,001
Goodwill and intangible assets		178,621
Investments in bank subsidiaries		142,469
Investments in non-bank subsidiaries		91,059
Other assets		5,776
Total assets	$	468,773
Liabilities
Other liabilities	$	9,073
Intercompany payables		63,352
Short-term borrowings		38,870
Deferred tax liabilities and other tax payables		28,245
Long-term borrowings		66,625
Total liabilities		206,165
Total stockholders’ equity		262,608
Total liabilities and equity	$	468,773

Condensed Statements of Operations

Condensed statements of operations

(Dollars in thousands)	Nine Months Ended December 31, 2018
Interest income	$	(1,958	)
Interest expense		5,480
Net interest loss		(7,438	)
Provision for loan losses		19,190
Net interest loss after provision for loan losses		(26,628	)
Other income (expenses), net		(16,913	)
Loss before income taxes and undistributed earnings of subsidiaries		(43,541	)
Income tax benefit		5,328
Loss before undistributed earnings of subsidiaries		(38,213	)
Undistributed earnings of subsidiaries		28,041
Net loss attributable to parent company	$	(10,172	)

Condensed Statement of Other Comprehensive Loss

Condensed statement of other comprehensive loss

(Dollars in thousands)	Nine Months Ended December 31, 2018
Net loss	$	(10,172	)
Other comprehensive loss		(82	)
Total comprehensive loss attributable to MFIN	$	(10,254	)

Condensed Statements of Cash Flows

Condensed statement of cash flow

(Dollars in thousands)	Nine Months Ended December 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES Net loss	$	(10,172	)
Adjustments to reconcile net loss to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries		(28,041	)
Provision for loan losses		19,190
Depreciation and amortization		5,451
Change in deferred and other tax assets/liabilities, net		4,512
Proceeds loan collateral in process of foreclosure		487
Net change in loan collateral in process of foreclosure		678
Stock-based compensation expense		425
Decrease in other assets		4,073
Decrease in intercompany payables		(3,368	)
Increase in other liabilities		4,237
Net cash used by operating activities		(2,528	)
CASH FLOWS FROM INVESTING ACTIVITIES Loans originated		(309	)
Proceeds from principal receipts, sales, and maturities of loans		10,900
Dividends from subsidiaries		5,200
Net cash provided by investing activities		15,791
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from funds borrowed		—
Repayments of funds borrowed		(17,208	)
Net cash used for financing activities		(17,208	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(3,945	)
Cash and cash equivalents, beginning of period		5,055
Cash and cash equivalents, end of period	$	1,110

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Variable Interest Entities (VIE) (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

The following table shows the assets and liabilities of Trust III as December 31, 2017 when it had been a consolidated VIE.

	Investment Company Accounting
(Dollars in thousands)	December 31, 2017
Assets
Cash	$	393
Net investments		96,688
Accrued interest receivable		170
Total assets	$	97,251
Liabilities
Accrued interest payable	$	1,849
DZ loan		99,984
Total liabilities	$	101,833

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Organization of Medallion Financial Corp. and its Subsidiaries - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($) Medallion	Dec. 31, 2017 USD ($)
Subsidiary or Equity Method Investee [Line Items]
Purchase price for City of Chicago taxicab medallions out of foreclosure	$ 8,689,000
Number of medallions purchased out of foreclosure | Medallion	159
Net realizable value of medallions	$ 4,305,000
Net Fair value of medallions		$ 7,450,000
Medallion Financing Trust I [Member]
Subsidiary or Equity Method Investee [Line Items]
Aggregate assets of trust	$ 36,141,000

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)				3 Months Ended	9 Months Ended	12 Months Ended
		Apr. 02, 2018	Jan. 01, 2016	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016	Dec. 30, 2016	Jan. 01, 2019	Mar. 31, 2018	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Non-marketable securities				$ 9,197,000	$ 9,197,000	$ 9,197,000
Investment in non-marketable securities								$ 9,521,000
Net premium on investment securities					154,000			265,000
Investment securities Amortized to interest income					80,000			81,000	$ 82,000
Net loan origination costs						14,416,000		90,000
Net accretion to income						(3,132,000)	[1]	(68,000)	(49,000)
Total loans more than 90 days past due				58,085,000	58,085,000	58,085,000		88,886,000
Loans pledged as collateral				40,500,000	40,500,000	40,500,000		183,529,000
Principal portion of loans serviced, fair value				140,180,000	140,180,000	$ 140,180,000		338,867,000
Bank reserves against future losses		$ 17,351,000
Net unrealized appreciation on investments, net of tax								139,700,000	127,367,000			$ 172,177,000	$ 44,483,000
Intangible assets useful life						20 years
Intangible assets, net				53,982,000	53,982,000	$ 53,982,000
Amortization of intangible assets	[2]					1,083,000
Amortization expense						1,864,000		925,000	$ 722,000
Deferred costs				$ 4,461,000	$ 4,461,000	$ 4,461,000		$ 3,070,000
Potential dilutive common shares excluded from EPS computation						100,000		366,245	346,232
Stock based compensation award						39,000		29,666	12,000
Stock based compensation award, Amount						$ 576,000		$ 785,000	$ 568,000
Stock based compensation award per diluted common share				$ 0.02	$ 0.02	$ 0.02		$ 0.03	$ 0.02
Unrecognized compensation cost related to unvested stock options and restricted stock				$ 244,000	$ 244,000	$ 244,000
Unrecognized compensation cost related to unvested stock options and restricted stock, recognition period						2 years 6 months
Tier 1 leverage capital ratio				15.85%	15.85%	15.85%
Capital conversation buffer			0.625%
Period increase of capital conversation buffer			0.625%
Common Equity Tier 1 risk-based capital ratio				14.30%	14.30%	14.30%		13.80%
Tier 1 risk-based capital ratio				16.90%	16.90%	16.90%		16.50%
Total risk-based capital ratio				18.20%	18.20%	18.20%		17.80%
Restricted Shares [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation award						101,010		327,251	48,527
Medallion Financing Trust I [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Appreciation in Investment in Medallion Bank								$ 152,267,000
Principal portion of loans serviced, fair value, Medallion bank								311,988,000
91+ [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total loans more than 90 days past due				$ 20,154,000	$ 20,154,000	$ 20,154,000		60,450,000
91+ [Member] | Loans [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total loans more than 90 days past due				$ 20,154,000	$ 20,154,000	$ 20,154,000		$ 60,450,000
Total loans more than 90 days past due ,percentage				2.03%	2.03%	2.03%		18.90%
Medallion Bank [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Appreciation in Investment in Medallion Bank								$ 7,849,000	$ 128,918,000			$ 39,826,000	$ 15,500,000
Net loan origination costs						$ 11,183,000		11,183,000
Net accretion to income						3,993,000		3,581,000	3,440,000
Reserves against future losses						5,708,000
Goodwill		150,803,000
Intangible assets, net		$ 28,900,000
Amortization of intangible assets						0
Amortization expense						2,255,000		2,255,000	2,091,000
Deferred costs				$ 5,011,000	$ 5,011,000	5,011,000		5,011,000
RPAC [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortization of intangible assets						$ 5,615,000
Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful life of fixed assets						3 years
Tier 1 leverage capital to total assets ratio				15.00%	15.00%	15.00%
Common Equity Tier 1 risk-based capital ratio				7.00%	7.00%	7.00%
Tier 1 risk-based capital ratio				8.50%	8.50%	8.50%
Total risk-based capital ratio				10.50%	10.50%	10.50%
Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful life of fixed assets						10 years
Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | Accrued/amortized over the remaining lease life terms [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset											$ 13,997,000
Lease liability											$ 13,997,000
Medallion Bank and Other Controlled Subsidiaries [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investment in non-marketable securities								302,147,000
Investment Company Accounting [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net accretion to income								(68,000)	$ 49,000
Net unrealized appreciation on investments, net of tax								139,700,000
Bank Holding Company Accounting [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Goodwill				$ 150,803,000	$ 150,803,000	$ 150,803,000
Intangible assets, net				53,982,000	$ 53,982,000	53,982,000
Amortization of intangible assets				$ 361,000		1,083,000
Leasehold Improvements [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization						422,000,000		94,000,000		$ 110,000,000
Leasehold Improvements [Member] | Medallion Bank [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization						$ 232,000		$ 232,000		$ 225,000

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Summary of Significant Accounting Policies - Summary of Purchase Price Accounting (Detail) - USD ($) $ in Thousands		Dec. 31, 2018	Apr. 02, 2018	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash					$ 110,233
Net loans		$ 981,487
Other assets					58,827
Liabilities
Other liabilities					$ (3,836)
Intangibles assets		53,982
Intellectual Property [Member]
Liabilities
Intangibles assets		21,176
Contractor Relationships [Member]
Liabilities
Intangibles assets		6,641
Race Organization [Member]
Liabilities
Intangibles assets		26,165
Medallion Bank [Member]
Assets
Cash		$ 100
Net loans	[1]		$ 890,000
Other assets			130,393
Liabilities
Funds borrowed and other liabilities			(853,650)
Total fair value excluding goodwill and intangibles			166,743
Goodwill			150,803
Intangibles assets			28,900
Total fair value	[2]		346,446	$ 346,446
RPAC [Member] | Operating Segments [Member]
Assets
Cash			1,647
Race cars held for sale			916
Other assets			1,902
Liabilities
Deferred revenue			(6,531)
Notes payable	[3]		(27,220)
Other liabilities			(2,275)
Total fair value excluding goodwill and intangibles			(30,584)
Intangibles assets	[4]		31,779
Total fair value	[5]		1,195	$ 1,195
RPAC [Member] | Operating Segments [Member] | Fixed Assets Net [Member]
Assets
Net fixed assets			774
RPAC [Member] | Operating Segments [Member] | Race Cars and Parts Net [Member]
Assets
Net fixed assets			$ 203

[1] Includes $12,387 of premiums associated with the loan portfolio.

[2] Includes $26,303 of preferred stock held by the U.S. Treasury. See Note 21 for details.

[3] Includes $20,177 due to the Company and its affiliates as of March 31, 2018.

[4] As of December 31, 2018 an assessment of the intangible asset resulted in impairment of $5,615 based upon the analysis of current market conditions using discounted cash flows.

[5] Fair value as of March 31, 2018 represents the Company's investment in RPAC series D units.

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Summary of Significant Accounting Policies - Summary of Purchase Price Accounting (Parenthetical) (Detail) - USD ($) $ in Thousands			12 Months Ended
		Apr. 02, 2018	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Investments In Loans [Line Items]
Premiums in loan portfolio			$ 58,085		$ 88,886
Amortization of intangible assets	[1]		1,083
Affiliated Entity [Member]
Investments In Loans [Line Items]
Notes payable				$ 20,177
U.S. Treasury Securities [Member] | Capital Purchase Program [Member]
Investments In Loans [Line Items]
Preferred stock		$ 26,303
RPAC [Member]
Investments In Loans [Line Items]
Amortization of intangible assets			5,615
61-90 [Member]
Investments In Loans [Line Items]
Premiums in loan portfolio		$ 12,387	$ 10,044		$ 12,387

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Summary of Significant Accounting Policies - Summary of the Calculation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Net (loss)/net increase in net assets resulting from operations available to common shareholders													$ (25,046)		$ 278	$ 23,515
Weighted average common shares outstanding applicable to basic EPS													24,214,978	[1]	23,919,994	24,123,888
Effect of dilutive stock options															439	230
Effect of restricted stock grants															132,874	48,902
Adjusted weighted average common shares outstanding applicable to diluted EPS													24,214,978	[1]	24,053,307	24,173,020
Basic earnings (loss) per share	$ 0.38	$ (0.19)	$ (0.60)	$ (0.62)	$ 0.14	$ 0.03	$ (0.20)	$ 0.05	$ 0.29	$ 0.21	$ 0.19	$ 0.28	$ (1.03)	[1]	$ 0.01	$ 0.97
Diluted earnings (loss) per share	$ 0.38	$ (0.19)	$ (0.60)	$ (0.62)	$ 0.14	$ 0.03	$ (0.20)	$ 0.05	$ 0.29	$ 0.21	$ 0.19	$ 0.28	$ (1.03)	[1]	$ 0.01	$ 0.97

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Summary of Significant Accounting Policies - Summary of Bank's Actual Capital Amounts and Ratios, and the Regulatory Minimum Ratios (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Regulatory, Minimum, Common equity tier 1 capital	$ 0
Regulatory, Minimum, Tier 1 capital	0
Regulatory, Minimum, Total capital	0
Regulatory, Minimum, Average assets	0
Regulatory, Minimum, Risk-weighted assets	$ 0
Regulatory, Minimum, Leverage ratio	4.00%
Regulatory, Minimum, Common equity tier 1 capital ratio	4.50%
Regulatory, Minimum, Tier 1 capital ratio	6.00%
Regulatory, Minimum, Total capital ratio	8.00%
Regulatory, Well-capitalized, Common equity tier 1 capital	$ 0
Regulatory, Well-capitalized, Tier 1 capital	0
Regulatory, Well-capitalized, Total capital	0
Regulatory, Well-capitalized, Average assets	0
Regulatory, Well-capitalized, Risk-weighted assets	$ 0
Regulatory, Well-capitalized, Leverage ratio	5.00%
Regulatory, Well-capitalized, Common equity tier 1 capital ratio	6.50%
Regulatory, Well-capitalized, Tier 1 capital ratio	8.00%
Regulatory, Well-capitalized, Total capital ratio	10.00%
Common equity Tier 1 capital	$ 141,608	$ 137,494
Tier 1 capital	167,911	163,797
Total capital	180,917	176,876
Average assets	1,059,461	1,127,087
Risk-weighted assets	$ 993,374	$ 995,145
Leverage ratio	15.80%	14.50%
Common equity Tier 1 capital ratio	14.30%	13.80%
Tier 1 capital ratio	16.90%	16.50%
Total capital ratio	18.20%	17.80%

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Investment Securities - Summary of Fixed Maturity Securities Available for Sale (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 46,423
Gross Unrealized Gains	50
Gross Unrealized Losses	(1,149)
Fair Value	45,324
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	32,184
Gross Unrealized Gains	15
Gross Unrealized Losses	(742)
Fair Value	31,457
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,239
Gross Unrealized Gains	35
Gross Unrealized Losses	(407)
Fair Value	$ 13,867

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Investment Securities - Summary of Amortized Cost and Estimated Market Value of Investment Securities by Contractual Maturity (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Available-for-sale Securities, Debt Maturities [Abstract]
Amortized Cost, due in one year or less	$ 26
Amortized Cost, due after one year through five years	9,040
Amortized Cost, due after five years through ten years	11,487
Amortized Cost, due after ten years	25,870
Amortized Cost	46,423
Market Value, due in one year or less	26
Market Value, due after one year through five years	8,834
Market Value, due after five years through ten years	11,218
Market Value, due after ten years	25,246
Market Value, total	$ 45,324

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Investment Securities - Summary of Securities with Gross Unrealized Losses (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	$ (132)
Fair Value, Less than Twelve Months	10,045
Gross Unrealized Losses, Twelve Months and Over	(1,017)
Fair Value, Twelve Months and Over	31,130
Mortgage-backed Securities, Principally Obligations of US Federal Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	(54)
Fair Value, Less than Twelve Months	4,616
Gross Unrealized Losses, Twelve Months and Over	(688)
Fair Value, Twelve Months and Over	24,871
State and Municipalities [Member]
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses, Less than Twelve Months	(78)
Fair Value, Less than Twelve Months	5,429
Gross Unrealized Losses, Twelve Months and Over	(329)
Fair Value, Twelve Months and Over	$ 6,259

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Investment Securities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017
Minimum [Member]
Investments [Line Items]
Investment in securities	0.00%

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Loans and Allowance for Loan Losses - Summary of Inclusive Capitalized Loans (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018		Dec. 31, 2017
Student Loan Portfolio By Program [Line Items]
Total gross loans		$ 993,788	[1]	$ 319,227
Allowance for loan losses		(36,395)
Net loans receivable		981,487
Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans		1,017,882
Allowance for loan losses		(36,395)		0	[2]
Net loans receivable		$ 981,487
Percentage of total gross loans		100.00%
Recreation [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	[1]	$ 567,209
Allowance for loan losses		(6,856)
Recreation [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans		$ 587,038
Percentage of total gross loans		58.00%
Home Improvement [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans	[1]	$ 185,661
Allowance for loan losses		(1,796)
Home Improvement [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans		$ 183,155
Percentage of total gross loans		18.00%
Commercial [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans		$ 64,083
Percentage of total gross loans		6.00%
Medallion [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans		$ 176,835	[1]	$ 228,416
Allowance for loan losses		(27,743)
Medallion [Member] | Bank Holding Company Accounting [Member]
Student Loan Portfolio By Program [Line Items]
Total gross loans		$ 183,606
Percentage of total gross loans		18.00%

[1] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

[2] Beginning balance for the nine months ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table.

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Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Dec. 31, 2018	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for loan losses		$ 59,008	$ 59,008	[1]
Allowance for loan losses - ending balance		36,395	36,395
Recreation [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - ending balance		6,856	6,856
Home Improvement [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - ending balance		1,796	1,796
Medallion [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - ending balance		27,743	27,743
Bank Holding Company Accounting [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses - beginning balance	[2]		0
Total charge- offs			(28,536)
Total recoveries			5,923
Net charge offs	[3]		(22,613)
Provision for loan losses	[4]		59,008
Allowance for loan losses - ending balance		$ 36,395	36,395
Bank Holding Company Accounting [Member] | Recreation [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total charge- offs			(12,697)
Total recoveries			4,437
Bank Holding Company Accounting [Member] | Home Improvement [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total charge- offs			(1,562)
Total recoveries			905
Bank Holding Company Accounting [Member] | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total recoveries			4
Bank Holding Company Accounting [Member] | Medallion [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total charge- offs			(14,277)
Total recoveries			$ 577

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Beginning balance for the nine months ended reflects the transition to Bank Holding Company Accounting by netting previously established unrealized depreciation against the gross loan balances resulting in a starting point of zero for this table.

[3] As of December 31, 2018, cumulative charge-offs of loans and loans in process of foreclosure in the medallion portfolio were $215,789, representing collection opportunities for the Company.

[4] Includes $5,708 of a general reserve, for the Company, for current and performing medallion loans under 90 days past due, as an additional buffer against future losses, representing 16% of the total allowance, and 3.54% of the loans in question. This figure excludes the general reserve for the Bank, which was netted against loan balances at consolidation on April 2, 2018.

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Loans and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Parenthetical) (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Financing Receivable, Allowance for Credit Losses [Line Items]
Percentage of Allowance	100.00%
Medallion Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Cumulative charges of loans and loans process of foreclosure	$ 215,789
Reserves against future losses	$ 5,708
Percentage of Allowance	16.00%
Percentage of total gross loans	3.54%
Financing Receivables, 90 Days Past Due [Member] | Medallion Bank [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Reserves against future losses	$ 5,708

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Loans and Allowance for Loan Losses - Summary Composition of the Allowance for Loan Losses by Type (Detail)	Dec. 31, 2018 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 36,395,000
Percentage of Allowance	100.00%
Allowance as a Percent of Loan Category	$ 0.0358
Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 6,856,000
Percentage of Allowance	19.00%
Allowance as a Percent of Loan Category	$ 0.0117
Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 1,796,000
Percentage of Allowance	5.00%
Allowance as a Percent of Loan Category	$ 0.0098
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Allowance as a Percent of Loan Category	0.0000
Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amount	$ 27,743,000
Percentage of Allowance	76.00%
Allowance as a Percent of Loan Category	$ 0.1511

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Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	[1]	Dec. 31, 2016	[2]
Receivables [Abstract]
Total nonaccrual loans	$ 34,877	$ 98,494		$ 77,161
Interest foregone for the year	1,153	823		1,317
Amount of foregone interest applied to principal for the year	535	52		638
Interest foregone life-to-date	1,952	12,485		10,658
Amount of foregone interest applied to principal life-to-date	$ 1,214	$ 3,495		$ 7,834
Percentage of nonaccrual loans to gross loan portfolio	3.00%	31.00%		20.00%

[1] Does not include Medallion Bank nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

[2] Does not include Medallion Bank nonaccrual loans of $52,020, interest income foregone for the year of $683 and foregone interest paid and applied to principal for the year of $402, interest income foregone life-to-date of $1,034 and foregone interest paid and applied to principal life-to-date of $520.

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Loans and Allowance for Loan Losses - Summary of Non Accrual Loan (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	[1]	Dec. 31, 2016	[2]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest collected on nonaccrual loans recorded	$ 827
Interest foregone life to date	1,952	$ 12,485		$ 10,658
Amount of foregone interest applied to principal life to date	1,214	$ 3,495		$ 7,834
Non Accrual Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non accrual loans	52,020
Interest collected on nonaccrual loans recorded	683
Interest paid	402
Interest foregone life to date	1,034
Amount of foregone interest applied to principal life to date	520
Non Accrual Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non accrual loans	32,668
Interest collected on nonaccrual loans recorded	795
Interest paid	917
Interest foregone life to date	1,487
Amount of foregone interest applied to principal life to date	$ 1,221

[1] Does not include Medallion Bank nonaccrual loans of $32,668, interest income foregone for the year of $795 and foregone interest paid and applied to principal for the year of $917, interest income foregone life-to-date of $1,487 and foregone interest paid and applied to principal life-to-date of $1,221.

[2] Does not include Medallion Bank nonaccrual loans of $52,020, interest income foregone for the year of $683 and foregone interest paid and applied to principal for the year of $402, interest income foregone life-to-date of $1,034 and foregone interest paid and applied to principal life-to-date of $520.

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Loans and Allowance for Loan Losses - Summary of Performance Status of Loan (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 1,017,882
Percentage of Non-performing to Total	3.43%
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 587,038
Percentage of Non-performing to Total	0.99%
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 183,155
Percentage of Non-performing to Total	0.07%
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 64,083
Percentage of Non-performing to Total	5.98%
Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 183,606
Percentage of Non-performing to Total	13.68%
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 983,005
Performing [Member] | Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	581,250
Performing [Member] | Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	183,018
Performing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	60,249
Performing [Member] | Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	158,488
Non - Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	34,877
Non - Performing [Member] | Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	5,788
Non - Performing [Member] | Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	137
Non - Performing [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	3,834
Non - Performing [Member] | Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Status of loans	$ 25,118

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Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance		$ 34,877
Recorded investment		34,877
Unpaid principal balance,total non performing loans		36,091
Average investment recorded, Total nonperforming loans		58,514
Unpaid principal balance, With related allowance		36,091
Related allowance, With related allowance		22,242
Related allowance, Total nonperforming loans		22,242
Average investment recorded, With related allowance		58,514
Interest income (expense) recognized, With related allowance		827
Interest income (expense) recognized, Total nonperforming loans		827
Recreation [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance		5,788
Unpaid principal balance, With related allowance		5,788
Related allowance, With related allowance		204
Average investment recorded, With related allowance		6,165
Interest income (expense) recognized, With related allowance		357
Home Improvement [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance		137
Unpaid principal balance, With related allowance		137
Related allowance, With related allowance		3
Average investment recorded, With related allowance		137
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance		3,834
Recorded investment	[1],[2],[3]		$ 18,623
Unpaid principal balance,total non performing loans	[2]		20,491
Average investment recorded, Total nonperforming loans	[2]		18,792
Unpaid principal balance, With related allowance		3,929
Average investment recorded, With related allowance		6,036
Interest income (expense) recognized, With related allowance		12
Medallion [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment, With related allowance		25,118
Recorded investment	[1],[2],[3]		79,871
Unpaid principal balance,total non performing loans	[2]		82,612
Average investment recorded, Total nonperforming loans	[2]		$ 128,671
Unpaid principal balance, With related allowance		26,237
Related allowance, With related allowance		22,035
Average investment recorded, With related allowance		46,176
Interest income (expense) recognized, With related allowance		$ 482

[1] As of December 31, 2017 $20,851 of unrealized depreciation was recorded as a valuation allowance on these loans.

[2] Included in the unpaid principal balance is unearned paid-in-kind interest on nonaccrual loans of $4,609 as of December 31, 2017, which is included in the nonaccrual disclosures on page F-25.

[3] Interest income of $1,729 was recognized on loans for the year ended December 31, 2017.

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Loans and Allowance for Loan Losses - Summary of Nonperforming Loan Portfolio (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	[1]	Dec. 31, 2017
Receivables [Abstract]
Valuation allowances			$ 20,851
Interest and Fee Income	$ 95,080		1,729
Unearned paid-in-kind interest on nonaccrual loans			$ 4,609

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

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Loans and Allowance for Loan Losses - Summary of Aging of Loans (Detail) - USD ($) $ in Thousands		Dec. 31, 2018		Apr. 02, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		$ 58,085			$ 88,886
Current		935,703			230,341
Total		993,788	[1]		319,227
Accruing					265
Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		28,158
Current		539,051
Total	[1]	567,209
Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		1,133
Current		184,528
Total	[1]	185,661
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		733			749
Current		63,350			90,062
Total		64,083	[1]		90,811
Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		28,061			88,137
Current		148,774			140,279
Total		176,835	[1]		228,416
Accruing					265
Secured Mezzanine Term Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current					88,334
Total					88,334
Other Secured Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60					749
Current					1,728
Total					2,477
31-60 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		27,887			16,049
31-60 [Member] | Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		18,483
31-60 [Member] | Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		715
31-60 [Member] | Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		8,689			16,049
61-90 [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		10,044		$ 12,387	12,387
61-90 [Member] | Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		5,655
61-90 [Member] | Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		283
61-90 [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		454
61-90 [Member] | Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		3,652			12,387
91+ [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		20,154			60,450
91+ [Member] | Recreation [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		4,020
91+ [Member] | Home Improvement [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		135
91+ [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		279			749
91+ [Member] | Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60		$ 15,720			59,701
91+ [Member] | Other Secured Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60					$ 749

[1] Excludes loan premiums of $9,047 resulting from purchase price accounting and $15,047 of capitalized loan origination costs.

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Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) TDRs	Dec. 31, 2017 USD ($) TDRs
Debt Securities, Available-for-sale [Line Items]
Number of Loans | TDRs		65
Pre- Modification Investment		$ 46,445
Post- Modification Investment		$ 46,371
Medallion [Member]
Debt Securities, Available-for-sale [Line Items]
Number of Loans | TDRs	11	63
Pre- Modification Investment	$ 5,581	$ 39,898
Post- Modification Investment	$ 5,581	$ 39,824
Commercial Loans [Member]
Debt Securities, Available-for-sale [Line Items]
Number of Loans | TDRs		2
Pre- Modification Investment		$ 6,547
Post- Modification Investment		$ 6,547

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Loans and Allowance for Loan Losses - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($) TDRs	Dec. 31, 2017 USD ($) TDRs
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDRs		65
TDR investment value		$ 4,248,000
Allowance for loan loss	$ 36,395,000
TDR unrealized depreciation		$ 1,956,000
Troubled Debt Restructuring Defaulted [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified as TDRs defaulted | TDRs	1
TDR investment value	$ 218,000
Allowance for loan loss	$ 71,000

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Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallions Loans (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure - beginning balance	$ 52,848
Transfer from loans	34,658
Loan in process of foreclosure sales	(2,984)
Principal payments	(4,275)
Collateral adjustment	(8,472)
Liquidation	(4,416)
Deconsolidation of Trust III	(17,864)
Total	49,495
Recreation [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure - beginning balance	1,369
Transfer from loans	9,289
Loan in process of foreclosure sales	(451)
Collateral adjustment	(4,350)
Liquidation	(4,354)
Total	1,503
Medallion [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure - beginning balance	51,479
Transfer from loans	25,369
Loan in process of foreclosure sales	(2,533)
Principal payments	(4,275)
Collateral adjustment	(4,122)
Liquidation	(62)
Deconsolidation of Trust III	(17,864)
Total	$ 47,992

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Loans and Allowance for Loan Losses - Summary of Activities of the Loans in Process of Foreclosure Related to Recreation and Medallions Loans (Parenthetical) (Detail) - Bank Holding Company Accounting [Member] - USD ($)		Dec. 31, 2018	Apr. 02, 2018
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure investment	[1],[2]	$ 49,495,000
Medallion [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans in process of foreclosure investment			$ 31,099,000

[1] Includes financed sales of this collateral to third parties that are reported separately from the loan portfolio, and that are conducted by the Bank of $3,134.

[2] See Note 23 for details of balances related to a consolidated variable interest entity.

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Unrealized Appreciation (Depreciation) on Investments (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Securities, Available-for-sale [Line Items]
Beginning balance	$ 139,700	$ 127,367	$ 44,483
Appreciation on investments	37,797	7,409	108,419
Depreciation on investments	(40,067)	(39,275)	(27,400)
Gains on investments		(3,082)	(1,627)
Losses on investments	34,747	47,281	3,498
Other			(6)
Ending balance	172,177	139,700	127,367
Medallion [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	(20,338)	(28,523)	(3,438)
Depreciation on investments	(38,170)	(37,335)	(28,028)
Losses on investments	34,747	45,520	2,943
Ending balance	(23,761)	(20,338)	(28,523)
Commercial Loans [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	(513)	(1,378)	(2,239)
Depreciation on investments	18	(410)	318
Losses on investments		1,275	543
Ending balance	(495)	(513)	(1,378)
Investment In Subsidiary One [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	158,920	152,750	18,640
Appreciation on investments	38,795	6,170	133,805
Depreciation on investments			305
Ending balance	197,715	158,920	152,750
Equity Investments [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	3,121	3,934	2,582
Appreciation on investments	(998)	2,060	2,979
Depreciation on investments		(277)
Gains on investments		(3,082)	(1,627)
Losses on investments		486
Ending balance	2,123	3,121	3,934
Investment Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance			(18)
Appreciation on investments			7
Depreciation on investments			5
Losses on investments			12
Other			(6)
Other than Securities Investment [Member]
Debt Securities, Available-for-sale [Line Items]
Beginning balance	(1,490)	584	28,956
Appreciation on investments		(821)	(28,372)
Depreciation on investments	(1,915)	(1,253)
Ending balance	$ (3,405)	$ (1,490)	$ 584

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Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments - Schedule of Pre-Tax Components of Unrealized and Realized Gains and Losses in Investment Portfolio (Detail) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation		$ 37,797		$ 7,409		$ 108,419
Unrealized depreciation		40,067		39,275		27,400
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries	[1]		$ 29,115
Net realized gains (losses) on investments
Total	[1],[2],[3]		$ (34,745)
Investment Company Accounting [Member]
Net change in unrealized appreciation (depreciation) on investments
Unrealized appreciation		(998)		2,060		2,986
Unrealized depreciation		(38,152)		(38,022)		(27,705)
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries				9,483		130,121
Realized gains				(3,082)		(1,627)
Realized losses		34,747		47,281		3,498
Net unrealized losses on investments other than securities and other assets		(1,915)		(2,075)		(28,387)
Total		22,797		15,645		78,886
Net realized gains (losses) on investments
Realized gains				3,082
Realized losses		(34,747)		(47,281)		(3,498)
Other gains				4,684		4,140
Direct charge-offs		2		(4,229)		(197)
Total		(34,745)		(43,744)	[3]	457	[3]
Investment Company Accounting [Member] | Medallion Financing Trust I [Member]
Net change in unrealized appreciation (depreciation) on investments
Net unrealized appreciation on investments in Medallion Bank and other controlled subsidiaries		$ 29,115		$ 9,483		$ 130,121

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[3] There were no net losses on investment securities of affiliated issuers for the years ended December 31, 2018, 2017, and 2016.

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Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries (Detail) - USD ($) $ in Thousands		3 Months Ended												9 Months Ended	12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Securities, Available-for-sale [Line Items]
Investment income		$ 23,003	$ 24,265	$ 24,719	$ 482	$ 6,020	$ 5,567	$ 3,787	$ 4,250	$ 4,997	$ 5,269	$ 5,836	$ 8,986		$ 100,836	[1],[2]
Interest expense														$ 24,816	28,367	[1],[3]
Net interest income														71,987	72,469	[1]
Noninterest income	[1]														42,006
Operating expenses					1,150												$ 4,211	$ 5,249	$ 6,044	$ 6,005
Net investment income before income taxes		14,712	(3,963)	(17,905)	(3,566)									(7,156)	(10,722)	[1],[4]
Income tax provision (benefit)														(709)	69		(36,226)	45,900
Net investment income after income taxes		$ 9,865	$ (3,846)	$ (13,884)	$ (14,874)	$ (2,903)	$ (2,490)	$ (1,293)	$ (435)	$ 2,088	$ (2,606)	$ (1,402)	$ 2,039	$ (7,865)	(22,739)	[1],[5]
Net realized/unrealized losses of Medallion Bank	[1]														14,675
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank	[1]														(11,644)
Net increase in net assets resulting from operations															$ (25,046)		278	23,515
Medallion Bank [Member]
Debt Securities, Available-for-sale [Line Items]
Investment income																	111,281	103,454
Interest expense																	13,869	11,762
Net interest income																	97,412	91,692
Noninterest income																	121	308
Operating expenses	[6]																26,032	24,281
Net investment income before income taxes																	71,501	67,719
Income tax provision (benefit)																	15,093	(326)
Net investment income after income taxes																	56,408	68,045
Net realized/unrealized losses of Medallion Bank	[6]																(51,696)	(66,328)
Unrealized appreciation on Medallion Bank	[7]																5,482	123,667
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank																	(711)	4,737
Net increase in net assets resulting from operations																	9,483	130,121
Medallion Bank [Member] | Medallion Financing Trust I [Member]
Debt Securities, Available-for-sale [Line Items]
Net increase in net assets resulting from operations																	$ 4,712	$ 1,717

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Included in interest and investment income is $1,869, $2,268 and $2,580 of paid in kind interest for the years ended December 31, 2018, 2017, and 2016.

[3] Average borrowings outstanding were $1,198,124, $334,022, and $380,305, and the related average borrowing costs were 2.37%, 4.12% and 3.32% for the years ended December 31, 2018, 2017, and 2016.

[4] Includes $256, $870, and $1,235 of net revenues received from Medallion Bank for the years ended December 31, 2018, 2017, and 2016, primarily for expense reimbursements. See Notes 6 and 13 for additional information.

[5] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[6] Excluded from operating expenses and included in net realized/unrealized losses of Medallion Bank were $1,476 and $0 of unrealized losses on other assets for 2017 and 2016.

[7] Unrealized appreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the U.S. Treasury, and the fair value adjustments to the carrying amount of Medallion Bank.

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Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Comprehensive Income and Other Valuation Adjustments on Other Controlled Subsidiaries (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Debt Securities, Available-for-sale [Abstract]
Unrealized gain(loss) on other assets	$ 1,476	$ 0

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Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Balance Sheet and Net Investment (Detail) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Loans			$ 864,819
Investment securities, at fair value			43,478
Net investments			908,297
Cash			110,233
Other assets, net			58,827
Total assets		$ 1,381,846	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	[1]		164,230
Total liabilities and equity			1,077,357
Investment in other controlled subsidiaries			11,449
Medallion Bank and Other Controlled Subsidiaries [Member]
Debt Securities, Available-for-sale [Line Items]
Total investment in Medallion Bank and other controlled subsidiaries	[2]		$ 302,147

[1] Includes $26,303 of preferred stock issued to the U.S. 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.

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Investment in Medallion Bank and Other Controlled Subsidiaries - Schedule of Balance Sheet and Net Investment (Parenthetical) (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Medallion Financing Trust I [Member]
Debt Securities, Available-for-sale [Line Items]
Unrealized appreciation	$ 152,267
Small Business Lending Fund Program [Member]
Debt Securities, Available-for-sale [Line Items]
Preferred stock issued	$ 26,303

XML

Funds Borrowed - Schedule of Outstanding Balances of Funds Borrowed (Detail) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
2019		$ 381,068
2020		224,534
2021		208,116
2022		136,788
2023		41,022
Thereafter		70,500
Long term debt		$ 1,062,028
Interest Rate	[1]	2.67%
Deposits [Member]
Debt Instrument [Line Items]
2019		$ 325,890
2020		191,054
2021		158,846
2022		136,508
2023		$ 35,742
Interest Rate	[1]	2.14%
Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
2019		$ 3,226
2020		25,873
2021		8,500
2023		5,000
Thereafter		$ 37,500
Interest Rate	[1]	3.40%
Retail Notes [Member]
Debt Instrument [Line Items]
2021	[2]	$ 33,625
Interest Rate	[1],[2]	9.00%
Preferred Securities [Member]
Debt Instrument [Line Items]
Thereafter	[2]	$ 33,000
Interest Rate	[1],[2]	4.86%
Other Borrowings [Member]
Debt Instrument [Line Items]
2019		$ 500
2020		$ 7,149
Interest Rate	[1]	2.00%
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
2019		$ 51,452
2020		458
2021		7,145
2022		280
2023		$ 280
Interest Rate	[1]	4.55%
Bank Holding Company Accounting [Member]
Debt Instrument [Line Items]
Long term debt		$ 1,062,028
Bank Holding Company Accounting [Member] | Deposits [Member]
Debt Instrument [Line Items]
Long term debt		848,040
Bank Holding Company Accounting [Member] | Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Long term debt		80,099
Bank Holding Company Accounting [Member] | Retail Notes [Member]
Debt Instrument [Line Items]
Long term debt	[2]	33,625
Bank Holding Company Accounting [Member] | Preferred Securities [Member]
Debt Instrument [Line Items]
Long term debt	[2]	33,000
Bank Holding Company Accounting [Member] | Other Borrowings [Member]
Debt Instrument [Line Items]
Long term debt		7,649
Bank Holding Company Accounting [Member] | Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Long term debt		$ 59,615
Investment Company Accounting [Member]
Debt Instrument [Line Items]
Funds borrowed	[3]		$ 327,623
Investment Company Accounting [Member] | DZ Loan [Member]
Debt Instrument [Line Items]
Funds borrowed			99,984
Investment Company Accounting [Member] | Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Funds borrowed			79,564
Investment Company Accounting [Member] | Retail Notes [Member]
Debt Instrument [Line Items]
Funds borrowed	[2]		33,625
Investment Company Accounting [Member] | Preferred Securities [Member]
Debt Instrument [Line Items]
Funds borrowed	[2]		33,000
Investment Company Accounting [Member] | Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Funds borrowed			$ 81,450

[1] Weighted average contractual rate as of December 31, 2018.

[2] Relates to loans held at the Company, Parent Company only.

[3] See Note 23 for details of balances related to a consolidated variable interest entity.

XML

Funds Borrowed - Additional Information (Detail) - USD ($)		1 Months Ended			12 Months Ended
	Dec. 31, 2007	Nov. 30, 2018	Apr. 30, 2016	Jun. 30, 2007	Dec. 31, 2018	Dec. 31, 2017	Jul. 01, 2018	Dec. 31, 2008
Preferred Securities [Member]
Debt Instrument [Line Items]
Sale of preferred securities				$ 35,000,000
Issue of common stock				1,083
Maturity date					Sep. 30, 2037
Preferred securities outstanding					$ 33,000,000
Preferred Securities [Member] | 90 day LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate					2.81%
Preferred Securities [Member] | LIBOR Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate					2.13%
Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Loan commitment term					4 years 6 months
Commitment fee percentage					1.00%
Principal amount of loan						$ 34,024,756
Debt instrument interest rate Percentage					3.25%
Debt instrument commitments amount fully utilized					$ 172,485,000
Debt instrument commitments available					3,000,000
Debt instrument outstanding amount					80,099,000
Debt instrument remaining amount					29,099,000
FSVC's [Member]
Debt Instrument [Line Items]
Principal amount of loan						$ 33,485,000
Unsecured Debt [Member] | Preferred Securities [Member]
Debt Instrument [Line Items]
Aggregate principal amount of unsecured junior subordinated notes				$ 36,083,000
Third Party Investors [Member] | Preferred Securities [Member]
Debt Instrument [Line Items]
Preferred securities repurchased from a third party investor	$ 2,000,000
Retail Notes [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage			9.00%
Aggregate principal amount			$ 33,625,000
Net proceeds from offering			$ 31,786,000
Maturity date			2021
Commercial Paper [Member] | DZ Loan [Member] | Taxi Medallion Loan Trust III [Member]
Debt Instrument [Line Items]
Line of credit facility maximum borrowing capacity								$ 200,000,000
Line of credit facility current borrowing capacity					150,000,000		$ 125,000,000
Dz Bank [Member]
Debt Instrument [Line Items]
Debt instrument interest rate Percentage		4.00%
Debt instrument face amount		$ 1,400,000
Debt instrument expiration date		2023-12
Richard Petty [Member]
Debt Instrument [Line Items]
Maturity date						Mar. 31, 2020
Loan amount						$ 7,007,894
Annual interest rate						2.00%
Outstanding loan amount					$ 7,149,000
Travis Burt [Member]
Debt Instrument [Line Items]
Maturity date					Dec. 31, 2019
Short term promissory note					$ 500,000
Minimum [Member] | Paid on or Before February 1, 2018 [Member] | Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument minimum annual payment					5,000,000
Minimum [Member] | Paid on or Before February 1, 2019 [Member] | Small Business Administration Debentures and Borrowings [Member]
Debt Instrument [Line Items]
Debt instrument minimum annual payment					$ 10,000,000
Brokerage [Member] | Maximum [Member]
Debt Instrument [Line Items]
Average brokerage fee percentage in relation to the maturity of deposits					0.15%

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Funds Borrowed - Summary of Time Deposits of $100,000 or More (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Banking and Thrift [Abstract]
Three months or less	$ 72,280
Over three months through six months	110,012
Over six months through one year	143,598
Over one year	522,150
Total deposits	$ 848,040

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Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Notes Payable [Line Items]
Average Interest Rate	2.67%	[1]
Notes Payable to Banks [Member]
Notes Payable [Line Items]
Note Amounts	$ 65,978
Balance outstanding	$ 59,615
Average Interest Rate	4.55%	[1]
Notes Payable to Banks [Member] | Parent Company [Member]
Notes Payable [Line Items]
Note Dates	Apr. 30, 2011
Note Dates	Aug. 31, 2014
Maturity Dates	Mar. 31, 2019
Maturity Dates	Jul. 31, 2019
Type	Term loans and demand notes secured by pledged loans	[2]
Note Amounts	$ 38,870	[2]
Balance outstanding	$ 38,870
Monthly Payment	Interest only	[3]
Average Interest Rate	5.09%
Notes Payable to Banks [Member] | Medallion Chicago [Member]
Notes Payable [Line Items]
Note Dates	Nov. 30, 2011
Note Dates	Dec. 31, 2011
Maturity Dates	Jun. 30, 2019
Maturity Dates	Sep. 30, 2021
Type	Term loans secured by owned Chicago medallions	[4]
Note Amounts	$ 25,708
Balance outstanding	$ 19,345
Monthly Payment	171 of principal & interest
Average Interest Rate	3.50%
Notes Payable to Banks [Member] | Medallion Funding [Member]
Notes Payable [Line Items]
Note Dates	Nov. 30, 2018
Maturity Dates	Dec. 31, 2023
Note Amounts	$ 1,400
Balance outstanding	$ 1,400
Monthly Payment	70 principal & interest paid quarterly
Average Interest Rate	4.00%

[1] Weighted average contractual rate as of December 31, 2018.

[2] One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rate of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.

[3] Various agreements call for remittance of all principal received on pledged loans subject to minimum monthly payments ranging up to or from $12 to $75.

[4] Guaranteed by the Company.

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Funds Borrowed - Summary of Key Attributes of Various Borrowing Arrangements with Lenders (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($)
Minimum [Member]
Notes Payable [Line Items]
Minimum monthly payments of pledged loan	$ 12,000
Maximum [Member]
Notes Payable [Line Items]
Minimum monthly payments of pledged loan	$ 75,000
Parent Company [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Description of variable rate basis	30 day LIBOR was 2.50%, 360 day LIBOR was 3.01%
Parent Company [Member] | Notes Payable to Banks [Member] | Prime Rate [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	5.50%
Parent Company [Member] | Notes Payable to Banks [Member] | 30 Day LIBOR [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	2.50%
Parent Company [Member] | Notes Payable to Banks [Member] | 360 Day LIBOR [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	3.01%
Medallion Chicago [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument interest rate, stated percentage	3.75%
Description of variable rate basis	One note has an interest rate of Prime, one note has an interest rate of Prime plus 0.50%, one note has a fixed interest rate of 3.75%, one note has an interest rates of LIBOR plus 3.75%, and the other interest rates on these borrowings are LIBOR plus 2%.
Medallion Chicago [Member] | Notes Payable to Banks [Member] | Prime Rate Plus [Member]
Notes Payable [Line Items]
Basis spread on variable rate	0.50%
Medallion Chicago [Member] | Notes Payable to Banks [Member] | Fixed Interest Rate [Member]
Notes Payable [Line Items]
Basis spread on variable rate	3.75%
Medallion Chicago [Member] | Notes Payable to Banks [Member] | LIBOR Rate [Member]
Notes Payable [Line Items]
Basis spread on variable rate	2.00%

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Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Goodwill and other intangibles/unrealized gain on investment in Medallion Bank		$ (45,272)	$ (35,297)
Provision for loan losses/unrealized losses on loans and nonaccrual interest		25,790	10,071
Net operating loss carryforwards	[1]	11,132	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 assets		1,844	782
Unrealized gains on other investments		(2,024)	(542)
Total deferred tax liability		(8,530)	(29,383)
Valuation allowance		(255)	(39)
Deferred tax liability, net		(8,785)	(29,422)
Taxes receivable		1,812	16,886
Net deferred and other tax liabilities		$ (6,973)	$ (12,536)

[1] As of December 31, 2018, various subsidiaries of the Company had $11,148 of net operating loss carryforwards that expire at various dates between December 31, 2026 and December 31, 2035, which had a net asset value of $1,969 as of the balance sheet date.

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Income Taxes - Summary of Components of Deferred and Other Tax Assets and Liabilities (Parenthetical) (Detail) - Medallion Chicago [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Income Tax Rate Reconciliation [Line Items]
Net operating loss carryforwards	$ 11,148
Net operating loss carryforwards expiration period	Expire at various dates between December 31, 2026 and December 31, 2035.
Net operating loss carryforwards assets	$ 1,969

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Income Taxes - Summary of Components of Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current
Federal		$ (2,797)	$ 15,613	$ 2,690
State		(1,078)	756	689
Deferred
Federal		5,270	(4,169)	(39,028)
Federal income tax rate change			17,279
State		(1,464)	6,747	(10,251)
Net benefit (provision) for income taxes	$ 709	$ (69)	$ 36,226	$ (45,900)

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Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory Federal Income tax benefit at 21% (35% in 2017 and 2016)		$ 4,935	$ 12,582	$ (24,295)
State and local income taxes, net of federal income tax benefit		440	645	(3,829)
Federal income tax rate change			17,279
Change in effective state income tax rate		(2,564)	3,232
Utilization of carry forwards		(910)	2,284
Appreciation of Medallion Bank		(1,974)	1,050
Conversion to a taxable corporation				(16,630)
Book impairment of goodwill				(2,065)
Other		4	(846)	919
Net benefit (provision) for income taxes	$ 709	$ (69)	$ 36,226	$ (45,900)

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Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax (Benefit) Expense to Consolidated Actual Income Tax Benefit (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory Federal Income tax benefit percentage	21.00%	35.00%	35.00%

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Income Taxes - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
U.S. federal statutory rate	21.00%	35.00%	35.00%

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Stock Options and Restricted Stock - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016	Jun. 15, 2018	Mar. 01, 2016	Feb. 29, 2016	Dec. 31, 2015	Jun. 16, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option outstanding	144,666	[1]	320,626	345,518				446,254
Stock option exercisable	81,889	[1]	273,960	312,518
Unvested shares of common stock outstanding	62,777		46,666
Weighted average fair value of options granted	$ 5.46
Intrinsic value of options vested	$ 32,000		$ 0	$ 0
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of options granted	$ 1.06		$ 0.28	$ 0.53
2006 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of maximum number of shares approved									800,000
Number of additional shares available for issuance	0
Amended Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares available for issuance	0
Number of shares available for grant	200,000
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
2018 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	1,500,253				241,919
Shares were rolled into the 2018 Plan	1,458,407
2015 Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant						700,000
Unvested shares of common stock outstanding	190,915
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

[1] The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at December 31, 2018 and the related exercise price of the underlying options, was $69,000 for outstanding options and $23,000 for exercisable options as of December 31, 2018. The remaining contractual life was 6.97 years for outstanding options and 5.35 years for exercisable options at December 31, 2018.

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Stock Options and Restricted Stock - Summary of Assumption Categories Used to Determine Value of Option Grants (Detail)		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Stock Options/Shares Outstanding, Weighted-Average Exercise Price, and Additional Disclosures [Abstract]
Risk free interest rate		2.82%	1.84%	1.22%
Expected dividend yield		4.86%	7.39%	10.13%
Expected life of option in years	[1]	6 years	6 years	6 years
Expected volatility	[2]	30.00%	30.00%	30.00%

[1] Expected life is calculated using the simplified method.

[2] We determine our expected volatility based on our historical volatility.

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Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Detail) - $ / shares		12 Months Ended
		Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options beginning balance		320,626		345,518	446,254
Granted		39,000		29,666	12,000
Cancelled		(214,960)		(54,558)	(110,636)
Exercised	[1]				2,100
Number of options ending balance		144,666	[2]	320,626	345,518
Options exercisable		81,889	[2]	273,960	312,518
Exercise price per share, lower range limit beginning balance		$ 2.14		$ 7.10	$ 7.49
Exercise price per share, upper range limit beginning balance		13.84		13.84	13.84
Exercise price per share, granted					7.10
Exercise price per share, exercised	[1]				9.22
Exercise price per share, lower range limit ending balance		2.06	[2]	2.14	7.10
Exercise price per share, upper range limit ending balance		13.84	[2]	13.84	13.84
Exercise price per share, option exercisable lower range limit		2.14	[2]	7.10	7.49
Exercise price per share, option exercisable upper range limit		13.84	[2]	13.84	13.84
Weighted average exercise price, beginning balance		8.78		9.67	10.38
Weighted average exercise price, granted		5.46		2.35	7.10
Weighted average exercise price, cancelled		9.22		10.94	12.25
Weighted average exercise price, exercised	[1]				9.22
Weighted average exercise price, ending balance		7.23	[2]	8.78	9.67
Weighted average exercise price, options exercisable		9.25	[2]	9.50	9.75
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, granted		5.27		2.14
Exercise price per share, cancelled		9.22		10.76	9.22
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share, granted		5.58		2.61
Exercise price per share, cancelled		$ 9.24		$ 11.21	$ 13.84

[1] The aggregate intrinsic value, 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 $0, $0, and $0 for 2018, 2017, and 2016.

[2] The aggregate intrinsic value, which represents the difference between the price of the Company's common stock at December 31, 2018 and the related exercise price of the underlying options, was $69,000 for outstanding options and $23,000 for exercisable options as of December 31, 2018. The remaining contractual life was 6.97 years for outstanding options and 5.35 years for exercisable options at December 31, 2018.

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Stock Options and Restricted Stock - Summary of Activity for Stock Option Programs (Parenthetical) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Aggregate intrinsic value for option exercised	$ 0	$ 0	$ 0
Aggregate intrinsic value of option outstanding	69,000
Aggregate intrinsic value of option exercisable	$ 23,000
Remaining contractual life of option outstanding	6 years 11 months 19 days
Remaining contractual life of option exercisable	5 years 4 months 6 days

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Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Detail) - $ / shares		12 Months Ended
		Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, granted		39,000		29,666	12,000
Grant price per share, vested, lower limit		$ 2.14
Grant price per share, vested, upper limit		$ 9.38
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, beginning balance		408,582		167,703	209,040
Number of shares, granted		101,010		327,251	48,527
Number of shares, cancelled		(9,737)		(8,988)	(11,325)
Number of shares, vested	[1]	(308,940)		(77,384)	(78,539)
Number of shares, ending balance		190,915	[2]	408,582	167,703
Grant price per share, lower range limit beginning balance		$ 2.06		$ 3.95	$ 9.08
Grant price per share, upper range limit beginning balance		10.38		13.46	15.61
Grant price per share, granted, lower limit		3.93		2.06	3.95
Grant price per share, granted, upper limit		5.27		3.93	7.98
Grant price per share, cancelled, lower limit		3.93		2.14	9.92
Grant price per share, cancelled, upper limit		9.08		10.08	15.61
Grant price per share, vested, lower limit	[1]	2.06		9.08	9.08
Grant price per share, vested, upper limit	[1]	10.38		13.46	15.61
Grant price per share, lower range limit ending balance		2.14	[2]	2.06	3.95
Grant price per share, upper range limit ending balance		5.27	[2]	10.38	13.46
Weighted average grant price beginning balance		3.45		8.88	10.96
Weighted average grant price, granted		4.41		2.48	4.47
Weighted average grant price, cancelled		4.66		3.07	11.17
Weighted average grant price, vested	[1]	3.35		11.09	11.38
Weighted average grant price, ending balance		$ 4.06	[2]	$ 3.45	$ 8.88

[1] The aggregate fair value of the restricted stock vested was $1,270,000, $169,000, and $722,000 for 2018, 2017, and 2016.

[2] The aggregate fair value of the restricted stock was $895,000 as of December 31, 2018. The remaining vesting period was 1.21 years at December 31, 2018.

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Stock Options and Restricted Stock - Summary of Activity for Restricted Stock Programs (Parenthetical) (Detail) - Restricted Shares [Member] - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate fair value of restricted stock vested	$ 1,270,000	$ 169,000	$ 722,000
Aggregate fair value of restricted stock outstanding	$ 895,000
Remaining vesting period of restricted stock	1 year 2 months 15 days

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Stock Options and Restricted Stock - Summary of Activity for Unvested Options Outstanding (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Number of options beginning balance	46,666
Number of options, granted	39,000	29,666	12,000
Number of options, cancelled	0
Number of options, vested	(22,889)
Number of options ending balance	62,777	46,666
Exercise price per share beginning balance, Lower limit	$ 2.14
Exercise price per share beginning balance, Upper limit	9.38
Exercise price per share, Granted, Lower limit	5.27
Exercise price per share, Granted, Upper limit	5.58
Exercise price per share, Cancelled	0
Exercise price per share, Vested, lower limit	2.14
Exercise price per share, Vested, upper limit	9.38
Exercise price per share ending balance, Lower limit	2.14	$ 2.14
Exercise price per share ending balance, Upper limit	7.10	9.38
Weighted average exercise price	4.52
Weighted average exercise price, granted	5.46
Weighted average exercise price, cancelled	0
Weighted average exercise price, vested	5.95
Weighted average exercise price	$ 4.59	$ 4.52

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Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2018	[1]	Dec. 31, 2017	Dec. 31, 2016
Selected Quarterly Financial Information [Abstract]
Net interest income/net investment income	$ 23,003	$ 24,265	$ 24,719	$ 482	$ 6,020	$ 5,567	$ 3,787	$ 4,250	$ 4,997	$ 5,269	$ 5,836	$ 8,986		$ 100,836	[2]
Income (loss) before income taxes/net investment loss before taxes	14,712	(3,963)	(17,905)	(3,566)									$ (7,156)	(10,722)	[3]
Net income (loss) after taxes/net decrease on net assets resulting from operations	9,865	(3,846)	(13,884)	(14,874)	(2,903)	(2,490)	(1,293)	(435)	2,088	(2,606)	(1,402)	2,039	$ (7,865)	(22,739)	[4]
Net income (loss) attributable to Medallion Financial Corp./net decrease in net assets resulting from operations	$ 9,172	$ (4,697)	$ (14,647)	$ (14,874)	$ 3,345	$ 619	$ (4,797)	$ 1,111	$ 7,056	$ 5,043	$ 4,568	$ 6,848		$ (25,046)
Net increase (decrease) in net assets resulting from operations per common share
Basic	$ 0.38	$ (0.19)	$ (0.60)	$ (0.62)	$ 0.14	$ 0.03	$ (0.20)	$ 0.05	$ 0.29	$ 0.21	$ 0.19	$ 0.28		$ (1.03)		$ 0.01	$ 0.97
Diluted	$ 0.38	$ (0.19)	$ (0.60)	$ (0.62)	$ 0.14	$ 0.03	$ (0.20)	$ 0.05	$ 0.29	$ 0.21	$ 0.19	$ 0.28		$ (1.03)		$ 0.01	$ 0.97

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Included in interest and investment income is $1,869, $2,268 and $2,580 of paid in kind interest for the years ended December 31, 2018, 2017, and 2016.

[3] Includes $256, $870, and $1,235 of net revenues received from Medallion Bank for the years ended December 31, 2018, 2017, and 2016, primarily for expense reimbursements. See Notes 6 and 13 for additional information.

[4] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

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Segment Reporting - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018 Segment
Segment Reporting Disclosure [Line Items]
Number of business segments	6
Number of operating segments	4
Number of non-operating segments	2
Loan outstanding percent	10.00%
Swimming Pools [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	31.00%
Solar Panels [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	16.00%
Roofs [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	15.00%
Windows [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	11.00%
Texas [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	18.00%
California [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	11.00%
Florida [Member]
Segment Reporting Disclosure [Line Items]
Loan outstanding percent	10.00%
Geographic Concentration Risk [Member] | Midwest [Member]
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	42.00%
Geographic Concentration Risk [Member] | New York
Segment Reporting Disclosure [Line Items]
Aggregate percentage of loans lending	87.00%

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Segment Reporting - Schedule of Segment Data (Detail) - USD ($) $ in Thousands	3 Months Ended												9 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2018		Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Disclosure [Line Items]
Total interest income													$ 96,803	$ 3,287	[1]
Total interest expense													24,816	28,367	[1],[2]
Net interest income (loss)													71,987	72,469	[1]
Provision for loan losses													59,008	59,008	[1]
Net interest income after loss provision													12,979	13,461	[1]
Sponsorship and race winnings													14,368	14,368	[1]
Race team related expenses													(7,121)	7,121	[1]
Other income (expense)													(27,382)
Loss before income taxes and undistributed earnings of subsidiaries	$ 14,712	$ (3,963)	$ (17,905)	$ (3,566)									(7,156)	(10,722)	[1],[3]
Income tax benefit (provision)													709	(69)		$ 36,226	$ (45,900)
Net loss after taxes/net increase (decrease) on net assets resulting from operations	9,865	$ (3,846)	$ (13,884)	$ (14,874)	$ (2,903)	$ (2,490)	$ (1,293)	$ (435)	$ 2,088	$ (2,606)	$ (1,402)	$ 2,039	(7,865)	(22,739)	[1],[4]
Balance Sheet Data
Total loans net	981,487												981,487	981,487
Total assets	1,381,846				$ 1,077,357								1,381,846	1,381,846		$ 1,077,357
Total funds borrowed	1,062,028												$ 1,062,028	1,062,028
Selected Financial Ratios
Return on assets													(0.90%)
Return on equity													(4.62%)
Interest yield													10.98%
Net interest margin													8.19%
Reserve coverage													3.58%
Delinquency ratio													2.03%
Charge off ratio													2.73%
RPAC [Member]
Segment Reporting Disclosure [Line Items]
Total interest expense													$ 121
Net interest income (loss)													(121)
Net interest income after loss provision													(121)
Sponsorship and race winnings													14,368
Race team related expenses													(7,121)
Other income (expense)													(11,476)
Loss before income taxes and undistributed earnings of subsidiaries													(4,350)
Income tax benefit (provision)													1,108
Net loss after taxes/net increase (decrease) on net assets resulting from operations													(3,242)
Balance Sheet Data
Total assets	29,925												29,925	29,925
Total funds borrowed	7,649												$ 7,649	7,649
Selected Financial Ratios
Return on assets													(11.69%)
Operating Segments [Member] | Consumer Lending [Member] | Recreation [Member]
Segment Reporting Disclosure [Line Items]
Total interest income													$ 68,870
Total interest expense													6,986
Net interest income (loss)													61,884
Provision for loan losses													15,118
Net interest income after loss provision													46,766
Other income (expense)													(14,242)
Loss before income taxes and undistributed earnings of subsidiaries													32,524
Income tax benefit (provision)													(8,579)
Net loss after taxes/net increase (decrease) on net assets resulting from operations													23,945
Balance Sheet Data
Total loans net	580,182												580,182	580,182
Total assets	590,746												590,746	590,746
Total funds borrowed	434,527												$ 434,527	434,527
Selected Financial Ratios
Return on assets													5.48%
Return on equity													22.60%
Interest yield													15.78%
Net interest margin													14.18%
Reserve coverage													1.17%
Delinquency ratio													0.69%
Charge off ratio													1.89%
Operating Segments [Member] | Consumer Lending [Member] | Home Improvement [Member]
Segment Reporting Disclosure [Line Items]
Total interest income													$ 12,799
Total interest expense													2,290
Net interest income (loss)													10,509
Provision for loan losses													2,453
Net interest income after loss provision													8,056
Other income (expense)													(3,093)
Loss before income taxes and undistributed earnings of subsidiaries													4,963
Income tax benefit (provision)													(1,319)
Net loss after taxes/net increase (decrease) on net assets resulting from operations													3,644
Balance Sheet Data
Total loans net	181,359												181,359	181,359
Total assets	188,892												188,892	188,892
Total funds borrowed	143,815												$ 143,815	143,815
Selected Financial Ratios
Return on assets													2.56%
Return on equity													11.30%
Interest yield													9.06%
Net interest margin													7.44%
Reserve coverage													0.98%
Delinquency ratio													0.07%
Charge off ratio													0.46%
Operating Segments [Member] | Commercial Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income													$ 7,459
Total interest expense													2,037
Net interest income (loss)													5,422
Net interest income after loss provision													5,422
Other income (expense)													(1,917)
Loss before income taxes and undistributed earnings of subsidiaries													3,505
Income tax benefit (provision)													(808)
Net loss after taxes/net increase (decrease) on net assets resulting from operations													2,697
Balance Sheet Data
Total loans net	64,083												64,083	64,083
Total assets	90,264												90,264	90,264
Total funds borrowed	51,266												$ 51,266	51,266
Selected Financial Ratios
Return on assets													3.59%
Return on equity													7.52%
Interest yield													12.61%
Net interest margin													9.17%
Reserve coverage													0.00%
Delinquency ratio													0.44%
Charge off ratio													0.00%
Operating Segments [Member] | Medallion Lending [Member]
Segment Reporting Disclosure [Line Items]
Total interest income													$ 6,317
Total interest expense													10,125
Net interest income (loss)													(3,808)
Provision for loan losses													41,437
Net interest income after loss provision													(45,245)
Other income (expense)													9,742
Loss before income taxes and undistributed earnings of subsidiaries													(35,503)
Income tax benefit (provision)													7,938
Net loss after taxes/net increase (decrease) on net assets resulting from operations													(27,565)
Balance Sheet Data
Total loans net	155,863												155,863	155,863
Total assets	273,501												273,501	273,501
Total funds borrowed	294,465												$ 294,465	294,465
Selected Financial Ratios
Return on assets													(10.13%)
Interest yield													3.58%
Net interest margin													(2.16%)
Reserve coverage													15.11%
Delinquency ratio													8.89%
Charge off ratio													7.21%
Intersegment Eliminations [Member]
Segment Reporting Disclosure [Line Items]
Total interest income													$ 1,358
Total interest expense													3,257
Net interest income (loss)													(1,899)
Net interest income after loss provision													(1,899)
Other income (expense)													(6,396)
Loss before income taxes and undistributed earnings of subsidiaries													(8,295)
Income tax benefit (provision)													951
Net loss after taxes/net increase (decrease) on net assets resulting from operations													(7,344)
Balance Sheet Data
Total assets	208,522												208,522	208,522
Total funds borrowed	$ 130,306												$ 130,306	$ 130,306
Selected Financial Ratios
Return on assets													(4.13%)
Return on equity													(13.18%)

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Average borrowings outstanding were $1,198,124, $334,022, and $380,305, and the related average borrowing costs were 2.37%, 4.12% and 3.32% for the years ended December 31, 2018, 2017, and 2016.

[3] Includes $256, $870, and $1,235 of net revenues received from Medallion Bank for the years ended December 31, 2018, 2017, and 2016, primarily for expense reimbursements. See Notes 6 and 13 for additional information.

[4] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitment And Contingencies [Abstract]
Employment agreements expiration description	Employment agreements expire at various dates through 2023
Commitments outstanding	$ 0
Lease expiration date	Apr. 30, 2027
Occupancy expense	$ 2,287,000	$ 1,069,000	$ 966,000

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Commitment and Contingencies - Schedule of Future Minimum Payments Under Employment Agreements (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Commitment And Contingencies [Abstract]
2019	$ 2,062
2020	889
2021	665
2022	665
2023	277
Thereafter	0
Total	$ 4,558

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Commitment and Contingencies - Schedule of Minimum Rental Commitments For Non-Cancelable Leases (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 2,357
2020	2,380
2021	2,278
2022	2,216
2023	2,136
Thereafter	6,048
Total	$ 17,415

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Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Medallion Bank [Member]
Related Party Transaction [Line Items]
Loan receivable to bank			$ 311,988,000	$ 325,751,000
Medallion Servicing Corporation [Member]
Related Party Transaction [Line Items]
Interest income			5,272,000	5,421,000
Medallion Fine Art Inc [Member]
Related Party Transaction [Line Items]
Interest income		$ 10,000	165,000	596,000
Outstanding loan amount to Medallion Fine Art			999,000
Loan amount advanced			0
Loan amount repaid			$ 2,365,000
Medallion Fine Art Inc [Member] | Paid In Kind [Member]
Related Party Transaction [Line Items]
Interest rate on loan			12.00%
RPAC [Member]
Related Party Transaction [Line Items]
Interest income	$ 0		$ 56,000	$ 626,000
Outstanding loan amount to Medallion Fine Art			$ 16,472,000
Interest rate on loan			2.00%
Officer [Member] | LAX Group, LLC [Member]
Related Party Transaction [Line Items]
Salary from related party		171,000
Consulting services revenue from related party		$ 4,200
Officer [Member] | Common Class B [Member] | LAX Group, LLC [Member]
Related Party Transaction [Line Items]
Equity ownership percentage by a related party		10.00%
Common stock vesting percentage		3.34%
Percentage of equity raised from outside investors		5.00%
Percentage of bonus received from related party		10.00%
Petty Trust [Member] | RPAC [Member]
Related Party Transaction [Line Items]
Annual payment for services provided to the entity		$ 700,000
Note payable to the Petty Trust		$ 7,149,000
Interest percentage of Notes payable		2.00%
Minimum [Member] | Officer [Member] | Common Class B [Member] | LAX Group, LLC [Member]
Related Party Transaction [Line Items]
Valuation of equity raised from outside investors		$ 1,500,000

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Related Party Transaction - Summary of Net Revenue Received (Detail) - Medallion Bank [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Other Related Party Transactions [Line Items]
Reimbursement of operating expenses	$ 250	$ 865	$ 1,006
Loan origination and servicing fees	6	5	229
Total other income	$ 256	$ 870	$ 1,235

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Stockholder's/Shareholder's Equity - Additional Information (Detail) - Stock Repurchase Program [Member] - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2003	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jul. 31, 2015	Jul. 31, 2014	Nov. 30, 2004
Stockholders Equity [Line Items]
Repurchases of common stock	$ 10,000,000				$ 26,000,000	$ 20,000,000	$ 10,000,000
Stock repurchase program expiration date	May 31, 2018
Stock repurchased during period		2,931,125
Payment for repurchase of common stock		$ 24,587,000
Stock purchased during period		0	0	361,174
Stock purchased during period, value				$ 1,524,000

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Other Operating Expenses - Summary of Major Components of Other Operating Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Operating Expenses [Abstract]
Directors' fees	$ 89	$ 319	$ 387
Miscellaneous taxes	120	258	328
Computer expense	74	244	257
Other expenses	304	727	574
Total other operating expenses	$ 587	$ 1,548	$ 1,546

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Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Detail) - USD ($)		3 Months Ended		12 Months Ended
		Mar. 31, 2018		Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Net share data
Net asset value at the beginning of the year		$ 11,800		$ 11,800	$ 11,910		$ 11,420		$ 11,160		$ 10,950
Net investment income (loss)		(0.15)			(0.33)		(0.41)		0.69		0.60
Income tax provision (benefit)		0.03			1.51		(1.90)		0.00		0.00
Net realized gains (losses) on investments		(1.44)			(1.82)		0.02		0.31		(0.22)
Net change in unrealized appreciation on investments		0.94			0.65		3.26		0.20		0.76
Net increase (decrease) in net assets resulting from operations		(0.62)			0.01		0.97		1.20		1.14
Issuance of common stock		(0.03)			(0.12)						(0.01)
Repurchase of common stock							$ 0.12		$ 0.06		$ 0.03
Distribution of net investment income							$ (0.60)		$ (0.81)		$ (0.60)
Return of capital									$ (0.18)		$ (0.35)
Distribution of net realized gains on investments		0			0		$ 0		0		0
Total distributions							(0.60)		(0.99)		(0.95)
Other									(0.01)
Total increase (decrease) in net asset value		(0.65)			(0.11)		0.49		0.26		0.21
Net asset value at the end of the period/year	[1]	11.15			11.80		11.91		11.42		11.16
Per share market value at beginning of year		3.53		$ 3.53	3.02		7.04		10.01		14.35
Per share market value at end of period/year		$ 4.65			$ 3.53		$ 3.02		$ 7.04		$ 10.01
Total return	[2]	(129.00%)			17.00%		(54.00%)		(22.00%)		(25.00%)
Ratios/supplemental data
Total shareholders' equity (net assets)		$ 272,437,000		$ 290,204,000	$ 287,159,000		$ 286,096,000		$ 278,088,000		$ 274,670,000
Average net assets		$ 284,021,000			$ 285,704,000		$ 276,978,000		$ 276,745,000		$ 276,254,000
Total expense ratio		10.02%	[3],[4],[5]	27.52%	(3.03%)	[3],[4],[5]	29.36%	[3],[4],[5]	9.45%	[3],[4],[5]	9.57%	[3],[4],[5]
Operating expenses to average net assets		5.87%	[3],[4]	6.39%	4.83%	[3],[4]	8.23%	[3],[4]	6.04%	[3],[4]	6.48%	[3],[4]
Net investment income (loss) after income taxes to average net assets	[3],[4]	(4.61%)			(2.49%)		0.04%		6.08%		5.48%

[1] Includes $0.00 of undistributed net investment income per share as of three months ended March 31, 2018 and December 31, 2017, 2016, 2015 and 2014, and $0.00 of undistributed net realized gains per share for all periods presented.

[2] Total return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of distributions on the payment date, by the per share market value at the beginning of the year.

[3] MSC has assumed certain of the Company's servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, $5,658, and $5,946, and operating expenses of $1,150, $4,211, $5,249, $6,044, and $6,005 which formerly were the Company's, were now MSC's for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, 2015, and 2014. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, 11.63%, 8.23%, and 5.94% in 2015, and 11.74%, 8.65%, and 5.46% in 2014.

[4] These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

[5] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

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Selected Financial Ratios and Other Data - Summary of Selected Financial Ratios and Other Data (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018		Dec. 31, 2018	Dec. 31, 2017		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Investment Holdings [Line Items]
Undistributed net investment income per share	$ 0
Undistributed net realized gains per share				$ 0		$ 0		$ 0		$ 0
Servicing fee	$ 1,290			$ 5,272		$ 5,421		$ 5,658		$ 5,946
Operating expenses	$ 1,150			$ 4,211		$ 5,249		$ 6,044		$ 6,005
Goodwill impairment writeoff			$ 5,099
Total expense ratio	10.02%	[1],[2],[3]	27.52%	(3.03%)	[1],[2],[3]	29.36%	[1],[2],[3]	9.45%	[1],[2],[3]	9.57%	[1],[2],[3]
Operating expense ratio	5.87%	[1],[2]	6.39%	4.83%	[1],[2]	8.23%	[1],[2]	6.04%	[1],[2]	6.48%	[1],[2]
Net investment income ratio			1.88%
Excluding Impact of Medallion Servicing Corp. Amounts [Member]
Investment Holdings [Line Items]
Total expense ratio	11.75%			(1.37%)		29.42%		11.63%		11.74%
Operating expense ratio	6.88%			6.31%		8.28%		8.23%		8.65%
Net investment income ratio	7.51%			(2.49%)		1.95%		5.94%		5.46%

[1] MSC has assumed certain of the Company's servicing obligations, and as a result, servicing fee income of $1,290, $5,272, $5,421, $5,658, and $5,946, and operating expenses of $1,150, $4,211, $5,249, $6,044, and $6,005 which formerly were the Company's, were now MSC's for the three months ended March 31, 2018 and the years ended December 31, 2017, 2016, 2015, and 2014. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income (loss) ratio would have been 11.75%, 6.88%, and 7.51% in the March 31, 2018 quarter, (1.37%), 6.31%, and (2.49%) in 2017, 29.42%, 8.28%, and 1.95% in 2016, 11.63%, 8.23%, and 5.94% in 2015, and 11.74%, 8.65%, and 5.46% in 2014.

[2] These ratios include the goodwill impairment writeoff of $5,099 in 2016. Excluding the writeoff the total expense, operating expense, and net investment income ratios were 27.52%, 6.39%, and 1.88% in 2016.

[3] Total expense ratio represents total expenses (interest expense, operating expenses, and income taxes) divided by average net assets.

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Employee Benefit Plans - Additional Information (Detail) - 401 K Plan [Member] - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plan Disclosure [Line Items]
Minimum percentage of compensation allowed to be deferred	1.00%
Maximum percentage of compensation allowed to be deferred	15.00%
Employee contributions to 401(k) Plan matched by company in an amount per employee	33.33%
Employer matching contribution, percent of employees' annual pay	2.00%
Defined benefit plan amount expense	$ 182,000	$ 185,000	$ 187,000

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Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Financial assets
Investment securities			$ 908,297
Loans receivable			864,819
Investments			43,478
Carrying Amount [Member] | Bank Holding Company Accounting [Member]
Financial assets
Cash and federal funds sold	[1]	$ 57,713
Equity investments		9,197
Investment securities		45,324
Loans receivable		981,487
Accrued interest receivable	[2]	7,413
Financial liabilities
Funds borrowed	[3]	1,062,028
Accrued interest payable		3,852
Carrying Amount [Member] | Investment Company Accounting [Member]
Financial assets
Cash and federal funds sold	[1]		12,690
Investments			610,135
Accrued interest receivable	[2]		547
Financial liabilities
Funds borrowed	[3]		327,623
Accrued interest payable			3,831
Fair Value Recurring [Member]
Financial assets
Investments	[4]	45,324
Fair Value Recurring [Member] | Bank Holding Company Accounting [Member]
Financial assets
Cash and federal funds sold	[1]	57,713
Equity investments		9,197
Investment securities		45,324
Loans receivable		981,487
Accrued interest receivable	[2]	7,413
Financial liabilities
Funds borrowed	[3]	1,062,297
Accrued interest payable		$ 3,852
Fair Value Recurring [Member] | Investment Company Accounting [Member]
Financial assets
Cash and federal funds sold	[1]		12,690
Investments			610,135
Accrued interest receivable	[2]		547
Financial liabilities
Funds borrowed	[3]		330,084
Accrued interest payable			$ 3,831

[1] Categorized as level 1 within the fair value hierarchy.

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

[3] As of December 31, 2018 and 2017, publicly traded unsecured notes traded at a premium to par of $269 and $2,461.

[4] Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 related to these assets.

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Fair Value of Financial Instruments - Summary of Carrying Values and Fair Values of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Publicly traded retail notes traded at a premium to par	$ 269	$ 2,461

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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		Dec. 31, 2018	Dec. 31, 2017
Assets
Available for sale investment securities			$ 43,478
Medallion Financing Trust I [Member]
Assets
Medallion loans			311,988
Medallion Bank and Other Controlled Subsidiaries [Member]
Assets
Investments in Medallion Bank and other controlled subsidiaries	[1]		302,147
Fair Value Recurring [Member]
Assets
Equity investments		$ 9,197	9,521
Available for sale investment securities	[2]	45,324
Total		54,521
Commercial loans			90,188
Equity investments		9,197	9,521
Investments other than securities			7,450
Other assets			339
Fair Value Recurring [Member] | Medallion Financing Trust I [Member]
Assets
Medallion loans			208,279
Fair Value Recurring [Member] | Medallion Bank and Other Controlled Subsidiaries [Member]
Assets
Investments in Medallion Bank and other controlled subsidiaries			302,147
Fair Value Recurring [Member] | Level 2 [Member]
Assets
Available for sale investment securities	[2]	45,324
Total		45,324
Fair Value Recurring [Member] | Level 3 [Member]
Assets
Equity investments		9,197	9,521
Total		9,197
Commercial loans			90,188
Equity investments		$ 9,197	9,521
Investments other than securities			7,450
Other assets			339
Fair Value Recurring [Member] | Level 3 [Member] | Medallion Financing Trust I [Member]
Assets
Medallion loans			208,279
Fair Value Recurring [Member] | Level 3 [Member] | Medallion Bank and Other Controlled Subsidiaries [Member]
Assets
Investments in Medallion Bank and other controlled subsidiaries			$ 302,147

[1] Includes $152,267 of unrealized appreciation on Medallion Bank in excess of Medallion Bank's book value as of December 31, 2017.

[2] Total unrealized losses of $82, net of tax, was included in accumulated other comprehensive income (loss) for the nine months ended December 31, 2018 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) $ in Thousands	9 Months Ended
	Dec. 31, 2018 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Net change in unrealized losses on investments, net of tax	$ (82)

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Fair Value of Assets and Liabilities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Moratorium's expiration period	2013-07
Medallion Financing Trust I [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Appreciation in Investment in Medallion Bank	$ 39,826,000	$ 7,849,000	$ 128,918,000	$ 15,500,000

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Fair Value of Assets and Liabilities - Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities (Detail) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
		Mar. 31, 2018		Dec. 31, 2018		Dec. 31, 2017
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		$ 7,450,000
Ending balance						$ 7,450,000
Fair Value, Measurements, Nonrecurring [Member] | Taxi Medallion Loan Trust III [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		208,279,000		$ 161,155,000		266,816,000
Gains (losses) included in earnings		(38,190,000)				(41,555,000)
Purchases, investments, and issuances		7,000				1,953,000
Sales, maturities, settlements, and distributions		(8,941,000)				(18,935,000)
Ending balance		161,155,000				208,279,000
Amounts related to held assets		(38,190,000)	[1]			37,335,000	[2]
Fair Value, Measurements, Nonrecurring [Member] | Commercial Loan And Lease [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		90,188,000		93,620,000		83,634,000
Gains (losses) included in earnings		(8,000)				(491,000)
Purchases, investments, and issuances		7,252,000				25,517,000
Sales, maturities, settlements, and distributions		(3,812,000)				(18,472,000)
Ending balance		93,620,000				90,188,000
Amounts related to held assets		(10,000)	[1]			(410,000)	[2]
Fair Value, Measurements, Nonrecurring [Member] | Investment [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		302,147,000		331,169,000		293,360,000
Gains (losses) included in earnings		29,143,000				10,761,000
Purchases, investments, and issuances		462,000				441,000
Sales, maturities, settlements, and distributions		(583,000)				(2,415,000)
Ending balance		331,169,000				302,147,000
Amounts related to held assets		29,143,000	[1]			10,756,000	[2]
Fair Value, Measurements, Nonrecurring [Member] | Equity Investment [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		9,521,000		9,458,000		8,407,000
Gains (losses) included in earnings		(993,000)		(1,274,000)		4,727,000
Purchases, investments, and issuances		935,000		1,232,000		1,660,000
Sales, maturities, settlements, and distributions		(5,000)		(1,596,000)		(5,273,000)
Transfers in	[3]			1,377,000
Ending balance		9,458,000		9,197,000		9,521,000
Amounts related to held assets		(993,000)	[1]	(1,851,000)	[4]	1,941,000	[2]
Fair Value, Measurements, Nonrecurring [Member] | Other than Securities Investment [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		7,450,000		5,535,000		9,510,000
Gains (losses) included in earnings		(1,915,000)				(2,060,000)
Ending balance		5,535,000				7,450,000
Amounts related to held assets		(1,915,000)	[1]			(2,060,000)	[2]
Fair Value, Measurements, Nonrecurring [Member] | Other Asset [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Beginning balance		339,000		$ 339,000		354,000
Gains (losses) included in earnings						(15,000)
Ending balance		$ 339,000				339,000
Amounts related to held assets	[2]					$ (15,000)

[1] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2018

[2] Total unrealized gains (losses) included in income for the year which relate to assets held as of December 31, 2017.

[3] Represents the removal of RPAC investments eliminated in consolidation as well as the transfer of LAX from controlled subsidiaries during the 2018 second quarter.

[4] Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of December 31, 2018.

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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	Dec. 31, 2018	Dec. 31, 2017
Assets
Impaired loans	$ 140,180	$ 338,867
Fair Value, Measurements, Nonrecurring [Member]
Assets
Impaired loans	34,877
Loan collateral in process of foreclosure	49,495
Total	84,372
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Assets
Impaired loans	34,877
Loan collateral in process of foreclosure	49,495
Total	$ 84,372

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Fair Value of Assets and Liabilities - Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($) $ / shares
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment		$ 43,478,000
Medallion Loans [Member] | Level 3 [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans		208,279,000
Commercial Loans [Member] | Level 3 [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans		$ 90,188,000
Investment in Medallion Bank [Member] | Cash Flow Analysis [Member] | Measurement Input, Conversion Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment, measurement input		0.1750
Investment in Medallion Bank [Member] | Level 3 [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Book Value Multiples [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment		$ 290,548,000
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance of the Investee [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment		4,623,000
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Book Value Adjusted for Asset Appreciation [Member] | Third Party Valuation or Offer to Purchase Asset [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment		3,878,000
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Third Party Offer to Purchase Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment		3,001,000
Investment in Other Controlled Subsidiaries [Member] | Level 3 [Member] | Investee Book Value and Equity Pickup [Member] | Financial Condition and Operating Performance of the Investee [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment		$ 97,000
Equity Investments [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value | $ / shares	$ 8.73	$ 8.73
Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input, Credit Spread [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investment, input		0.12
Equity Investments [Member] | Level 3 [Member] | Precedent Market Transactions [Member] | Equity Method Offering Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	$ 1,455,000	$ 1,455,000
Equity Investments [Member] | Level 3 [Member] | Investee Financial Analysis [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments		5,417,000
Equity Investments [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	5,683,000
Equity Investments [Member] | Level 3 [Member] | Investee Financial Analysis [Member] | Measurement Input, Share Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments		2,193,000
Equity Investments [Member] | Level 3 [Member] | Investee Book Value Adjusted for Market Appreciation [Member] | Financial Condition and Operating Performance of the Investee [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	1,850,000
Equity Investments [Member] | Level 3 [Member] | Investee Book Value [Member] | Measurement Input, Transfer prices of Chicago medallions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments		$ 456,000
Equity Investments [Member] | Level 3 [Member] | Investee Book Value [Member] | Equity Method Valuation Indicated By Investee Filings [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity investments	209,000
Other than Securities Investment [Member] | Cash Flow Analysis [Member] | Discount Rate in Cash Flow Analysis [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investments other than securities		0.06
Other than Securities Investment [Member] | Level 3 [Member] | Cash Flow Analysis [Member] | Discount Rate in Cash Flow Analysis [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investments other than securities		$ 7,450,000
Other Debt Obligations [Member] | Borrower Collateral Analysis [Member] | Measurement Input, Adequacy of Collateral [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Other assets, input		0.00
Other Debt Obligations [Member] | Level 3 [Member] | Borrower Collateral Analysis [Member] | Measurement Input, Adequacy of Collateral [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Other assets		$ 339,000
Minimum [Member] | Medallion Loans [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans, measurement input		0.01
Minimum [Member] | Commercial Loans [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans, measurement input		0.0200
Minimum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Book Value Multiples [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment, measurement input		2.1
Minimum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Earnings Multiple [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment, measurement input		8.7
Minimum [Member] | Investment in Medallion Bank [Member] | Cash Flow Analysis [Member] | Terminal Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		$ 470,964,000
Minimum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Enterprise Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		37,500,000
Minimum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Equity Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		2,000,000
Minimum [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input, Share Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		$ 2,000,000
Minimum [Member] | Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value	$ 6,014,000
Equity investment, input	0.96
Maximum [Member] | Medallion Loans [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans, measurement input		4.20
Maximum [Member] | Commercial Loans [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans, measurement input		0.1900
Maximum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Book Value Multiples [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment, measurement input		2.5
Maximum [Member] | Investment in Medallion Bank [Member] | Valuation Technique Precedent Merger and Acquisition Transactions [Member] | Price Earnings Multiple [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment, measurement input		10.6
Maximum [Member] | Investment in Medallion Bank [Member] | Cash Flow Analysis [Member] | Terminal Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		$ 623,007,000
Maximum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Enterprise Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		41,500,000
Maximum [Member] | Investment in Other Controlled Subsidiaries [Member] | Investee Financial Analysis [Member] | Financial Condition and Operating Performance Equity Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		5,000,000
Maximum [Member] | Equity Investments [Member] | Investee Financial Analysis [Member] | Measurement Input, Share Price [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value		$ 5,000,000
Maximum [Member] | Equity Investments [Member] | Precedent Arms Length Offer [Member] | Financial Condition and Operating Performance Enterprise Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Equity Value	$ 7,214,000
Equity investment, input	4.54
Weighted Average [Member] | Medallion Loans [Member] | Precedent Market Transactions [Member] | Measurement Input Adequacy of Collateral Loan to Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans, measurement input		1.31
Weighted Average [Member] | Commercial Loans [Member] | Borrower Financial Analysis [Member] | Measurement Input Financial Condition and Operational Performance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans, measurement input		0.1202

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Investments Other Than Securities - Summary of Investments Other than Securities (Detail) $ in Thousands	Dec. 31, 2017 USD ($) Investment
Investment Holdings [Line Items]
Investment Cost	$ 8,689
Value as of 12/31/17	$ 7,450
City of Chicago Taxicab Medallions [Member]
Investment Holdings [Line Items]
Number of Investments | Investment	154	[1]
Investment Cost	$ 8,411
Value as of 12/31/17	$ 7,238	[2]
City of Chicago Taxicab Medallions Handicap Accessible [Member]
Investment Holdings [Line Items]
Number of Investments | Investment	5	[1]
Investment Cost	$ 278
Value as of 12/31/17	$ 212	[3]

[1] Investment is not readily marketable, is considered income producing, is not subject to option, and is a non-qualifying asset under the 1940 Act.

[2] Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $5,846, $0, and $5,846 as of December 31, 2017. The aggregate cost for federal income tax purposes was $1,392 at December 31, 2017.

[3] Gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation for federal income tax purposes was $172, $0, and $172 as of December 31, 2017. The aggregate cost for federal income tax purposes was $40 at December 31, 2017.

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Investments Other Than Securities - Summary of Investments Other than Securities (Parenthetical) (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
City of Chicago Taxicab Medallions [Member]
Investment Holdings [Line Items]
Gross unrealized appreciation	$ 5,846
Gross unrealized depreciation	0
Net unrealized appreciation	5,846
Aggregate Cost for federal income tax	1,392
City of Chicago Taxicab Medallions Handicap Accessible [Member]
Investment Holdings [Line Items]
Gross unrealized appreciation	172
Gross unrealized depreciation	0
Net unrealized appreciation	172
Aggregate Cost for federal income tax	$ 40

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Small Business Lending Fund Program (SBLF) and Troubled Assets Relief Program (TARP) - Additional Information (Detail) - Capital Purchase Program [Member] - USD ($)				12 Months Ended
	Apr. 02, 2018	Jul. 21, 2011	Feb. 27, 2009	Dec. 31, 2018
U.S. Treasury Securities [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Aggregate purchase price	$ 26,303,000
US Treasury shares purchased		26,303
Series ABC and D Non-cumulative Perpetual Preferred Stock [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Aggregate purchase price			$ 21,498,000
Redemption of preferred stock				$ 4,000,000
Series E Senior Non-Cumulative Perpetual Preferred Stock [Member]
Changes In Equity And Comprehensive Income Line Items [Line Items]
Aggregate purchase price		$ 26,303,000
Percentage of dividend payment rate				9.00%

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Parent Company Only Condensed Financial Information - Condensed Balance Sheet (Detail) - USD ($) $ in Thousands		Dec. 31, 2018	Dec. 31, 2017
Assets
Cash			$ 110,233
Net loans receivable		$ 981,487
Other assets			58,827
Total assets		1,381,846	1,077,357
Liabilities
Other liabilities			3,836
Total liabilities			913,127
Total stockholders' equity	[1]		164,230
Total liabilities and equity			$ 1,077,357
Parent Company [Member]
Assets
Cash		1,110
Net loans receivable		37,737
Loans collateral in process of foreclosure		12,001
Goodwill and intangible assets		178,621
Investments in bank subsidiaries		142,469
Investments in non-bank subsidiaries		91,059
Other assets		5,776
Total assets		468,773
Liabilities
Other liabilities		9,073
Intercompany payables		63,352
Short-term borrowings		38,870
Deferred tax liabilities and other tax payables		28,245
Long-term borrowings		66,625
Total liabilities		206,165
Total stockholders' equity		262,608
Total liabilities and equity		$ 468,773

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

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Parent Company Only Condensed Financial Information - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands		3 Months Ended												9 Months Ended	12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2018
Condensed Income Statements, Captions [Line Items]
Interest income														$ 96,803	$ 3,287	[1]
Interest expense	[1]														3,551
Net interest income (loss)														71,987	72,469	[1]
Provision for loan losses														(59,008)	(59,008)	[1]
Net interest loss after provision for loan losses														12,979	13,461	[1]
Loss before income taxes and undistributed earnings of subsidiaries		$ 14,712	$ (3,963)	$ (17,905)	$ (3,566)									(7,156)	(10,722)	[1],[2]
Income tax benefit	[1]														8,426
Loss before undistributed earnings of subsidiaries		$ 9,172	$ (4,697)	$ (14,647)	$ (14,874)	$ 3,345	$ 619	$ (4,797)	$ 1,111	$ 7,056	$ 5,043	$ 4,568	$ 6,848		$ (25,046)	[1]
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Interest income														(1,958)
Interest expense														5,480
Net interest income (loss)														(7,438)
Provision for loan losses														19,190
Net interest loss after provision for loan losses														(26,628)
Other income (expenses), net														(16,913)
Loss before income taxes and undistributed earnings of subsidiaries														(43,541)
Income tax benefit														5,328
Loss before undistributed earnings of subsidiaries														(38,213)
Undistributed earnings of subsidiaries														28,041
Net loss attributable to parent company														$ (10,172)

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Includes $256, $870, and $1,235 of net revenues received from Medallion Bank for the years ended December 31, 2018, 2017, and 2016, primarily for expense reimbursements. See Notes 6 and 13 for additional information.

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Parent Company Only Condensed Financial Information - Condensed Statement of Other Comprehensive Loss (Detail) - USD ($) $ in Thousands		3 Months Ended												9 Months Ended	12 Months Ended
		Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2018
Condensed Statement of Income Captions [Line Items]
Net loss		$ 9,865	$ (3,846)	$ (13,884)	$ (14,874)	$ (2,903)	$ (2,490)	$ (1,293)	$ (435)	$ 2,088	$ (2,606)	$ (1,402)	$ 2,039	$ (7,865)	$ (22,739)	[1],[2]
Other comprehensive loss	[2]														(82)
Total comprehensive income (loss) attributable to Medallion Financial Corp.	[2]														$ (25,128)
Parent Company [Member]
Condensed Statement of Income Captions [Line Items]
Net loss														(10,172)
Other comprehensive loss														(82)
Total comprehensive income (loss) attributable to Medallion Financial Corp.														$ (10,254)

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

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Parent Company Only Condensed Financial Information - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands		3 Months Ended														9 Months Ended		12 Months Ended
		Dec. 31, 2018		Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017		Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018		Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$ 9,865		$ (3,846)	$ (13,884)	$ (14,874)	$ (2,903)		$ (2,490)	$ (1,293)	$ (435)	$ 2,088	$ (2,606)	$ (1,402)	$ 2,039	$ (7,865)		$ (22,739)	[1],[2]
Adjustments to reconcile net loss to net cash provided by operating activities:
Provision for loan losses	[2]																	59,008
Depreciation and amortization	[2]																	5,564
Change in deferred and other tax assets/liabilities, net	[2]																	13,637
Proceeds loan collateral in process of foreclosure	[2]																	11,593
Net change in loan collateral in process of foreclosure	[2]																	9,926
Stock-based compensation expense	[2]																	576
Decrease in other assets	[2]																	1,309
Increase in other liabilities	[2]																	4,196
Net cash used by operating activities	[2]																	78,144
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated	[2]																	(333,740)
Proceeds from principal receipts, sales, and maturities of loans	[2]																	302,409
Net cash used for investing activities	[2]																	(35,290)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from funds borrowed	[2]																	364,139
Repayments of funds borrowed	[2]																	(389,951)
Net cash used for financing activities	[2]																	(27,654)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	[2]																	15,200
Cash and cash equivalents, beginning of period	[2],[3]					42,513												42,513
Cash and cash equivalents, end of period	[2]	57,713	[4]				$ 42,513	[3]								57,713	[4]	57,713	[4]
Parent Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss																(10,172)
Adjustments to reconcile net loss to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries																(28,041)
Provision for loan losses																19,190
Depreciation and amortization																5,451
Change in deferred and other tax assets/liabilities, net																4,512
Proceeds loan collateral in process of foreclosure																487
Net change in loan collateral in process of foreclosure																678
Stock-based compensation expense																425
Decrease in other assets																4,073
Decrease in intercompany payables		(3,368)														(3,368)		(3,368)
Increase in other liabilities																4,237
Net cash used by operating activities																(2,528)
CASH FLOWS FROM INVESTING ACTIVITIES
Loans originated																(309)
Proceeds from principal receipts, sales, and maturities of loans																10,900
Dividends from subsidiaries																5,200
Net cash used for investing activities																15,791
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from funds borrowed																0
Repayments of funds borrowed																(17,208)
Net cash used for financing activities																(17,208)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS																(3,945)
Cash and cash equivalents, beginning of period					$ 5,055											5,055
Cash and cash equivalents, end of period		$ 1,110				$ 5,055										$ 1,110		$ 1,110

[1] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and the three months ended March 31, 2018 under Investment Company Accounting.

[2] Balance includes the nine months ended December 31, 2018 under Bank Holding Company Accounting and three months ended March 31, 2018 under Investment Company Accounting.

[3] Included in the beginning balance for the year ended December 31, 2018 was $29,923 of cash, cash equivalents, and federal funds sold as a result of the consolidation of previously unconsolidated subsidiaries and excludes $100 of cash held by the Company on deposit with Medallion Bank.

[4] Includes federal funds sold at December 31, 2018.

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Variable Interest Entities - Additional Information (Detail)	Oct. 31, 2018 USD ($)
Variable Interest Entity [Line Items]
Variable interest entity net gain	$ 25,325,000
Medallion Financing Trust I [Member]
Variable Interest Entity [Line Items]
Promissory note payable	$ 1,400,000

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Variable Interest Entities - Schedule of Variable Interest Entities (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash		$ 110,233
Total assets	$ 1,381,846	1,077,357
Liabilities
Total liabilities		913,127
Investment Company Accounting [Member]
Assets
Cash		393
Net investments		96,688
Accrued interest receivable		170
Total assets		97,251
Liabilities
Accrued interest payable		1,849
Total liabilities		101,833
DZ Loan [Member] | Investment Company Accounting [Member]
Liabilities
Loans		$ 99,984