(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 three months ended March 31, 2018 under Investment Company Accounting.


(Dollars in thousands)	Three Months Ended March 31, 2018
Statement of comprehensive income
Investment income	$	26,880
Interest expense		3,615

Net interest income		23,265


(Dollars in thousands)	Three Months Ended March 31, 2018
Noninterest income		19
Operating expenses		7,158

Net investment income before income taxes		16,126
Income tax benefit		3,321

Net investment income after income taxes		19,447
Net realized/unrealized losses of Medallion Bank		(28,539	)

Net decrease in net assets resulting from operations of Medallion Bank		(9,092	)
Unrealized appreciation on Medallion Bank⁽¹⁾		39,092
Net realized/unrealized losses on controlled subsidiaries other than Medallion Bank		(885	)

Net increase in net assets resulting from operations of Medallion Bank and other controlled subsidiaries	$	29,115

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