Investments in Medallion Bank and Other Controlled Subsidiaries (Tables)

12 Months Ended

Dec. 31, 2018

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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.