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, Florida, and California, at 16%, 10%, and 10% of loans outstanding and with no other states over 10% as of December 31, 2019. 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, of which RVs, boats, and trailers make up 61%, 19%, and 12% of the segment portfolio as of December 31, 2019. The home improvement lending segment works with contractors and financial service providers to finance residential home improvements concentrated in swimming pools, roofs, windows, and solar panels, at 23%, 21%, 14%, and 12% of total home improvement loans outstanding, and with no other product lines over 10% as of December 31, 2019. The commercial lending segment focuses on enterprise wide industries, including manufacturing, retail trade, information, recreation and various other industries, in which 61% of these loans are made in the Midwest. The medallion lending segment arose in connection with the financing of the medallions, taxis, and related assets, of which 88% were in New York City as of December 31, 2019.

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.

As part of the segment reporting, capital ratios for all operating segments have been normalized at 20%, which approximates the percentage of consolidated total equity divided by total assets, with the net adjustment applied to corporate and other investments for the twelve months ended December 31, 2019. In addition, beginning in 2019, the commercial segment exclusively represents the mezzanine lending business, and the legacy commercial loan business (immaterial to total) has been re-allocated to corporate and other investments for all periods presented.

The following tables present segment data as of and for the year ended December 31, 2019, and as of and for the nine months ended December 31, 2018.

Year Ended December 31, 2019	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corporate and Other Investments			Consolidated
Total interest income	$	99,463		$	19,943		$	7,183			$	3,665		$	—		$	2,308		$	132,562
Total interest expense		13,304			4,757			2,833				7,962			159			6,030			35,045
Net interest income (loss)		86,159			15,186			4,350				(4,297	)		(159	)		(3,722	)		97,517
Provision for loan losses		28,638			1,598			364				16,331			—			455			47,386
Net interest income (loss) after loss provision		57,521			13,588			3,986				(20,628	)		(159	)		(4,177	)		50,131
Sponsorship and race winnings		—			—			—				—			18,742			—			18,742
Race team related expenses		—			—			—				—			(8,996	)		—			(8,996	)
Other income (expense), net		(23,490	)		(7,520	)		(1,149	)			(10,493	)		(6,942	)		(7,946	)		(57,540	)
Net income (loss) before taxes		34,031			6,068			2,837				(31,121	)		2,645			(12,123	)		2,337
Income tax (provision) benefit		(8,813	)		(1,572	)		(684	)			7,596			(329	)		3,461			(341	)
Net income (loss) after taxes	$	25,218		$	4,496		$	2,153			$	(23,525	)	$	2,316		$	(8,662	)	$	1,996
Balance Sheet Data
Total loans net	$	695,257		$	244,716		$	66,405			$	105,022		$	—		$	3,362		$	1,114,762
Total assets		707,377			252,704			84,924				217,483			31,538			247,641			1,541,667
Total funds borrowed		563,805			201,605			68,666				176,825			7,794			150,898			1,169,593
Selected Financial Ratios
Return on average assets		3.84	%		2.20	%		2.44	%			(9.73	%)		7.28	%		(3.71	%)		(0.12	)%
Return on average equity		17.19			10.22			12.21				(48.49	)		(96.37	)		(14.26	)		(0.59	)
Interest yield		15.39			9.50			11.39				2.88		N/A			N/A				11.75
Net interest margin		13.33			7.24			6.90				(3.38	)	N/A			N/A				8.64
Reserve coverage		2.53			1.05			0.00		⁽¹⁾		19.48		N/A			N/A				3.97
Delinquency status⁽²⁾		0.84			0.07			0.15		⁽¹⁾		2.04		N/A			N/A				0.76
Charge-off ratio		2.69			0.37			1.30		⁽³⁾		14.68		N/A			N/A				3.60

(1)	Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

(2)	Loans 90 days or more past due.

(3)	Ratio is based on total commercial lending balances, and relates to the total loan business.

Nine Months Ended December 31, 2018	Consumer Lending
(Dollars in thousands)	Recreation			Home Improvement			Commercial Lending				Medallion Lending			RPAC			Corporate and Other Investments			Consolidated
Total interest income	$	68,870		$	12,799		$	7,076			$	6,317		$	—		$	1,741		$	96,803
Total interest expense		6,986			2,290			1,502				10,125			121			3,792			24,816
Net interest income (loss)		61,884			10,509			5,574				(3,808	)		(121	)		(2,051	)		71,987
Provision for loan losses		15,118			2,453			—				41,437			—			—			59,008
Net interest income (loss) after loss provision		46,766			8,056			5,574				(45,245	)		(121	)		(2,051	)		12,979
Sponsorship and race winnings		—			—			—				—			14,368			—			14,368
Race team related expenses		—			—			—				—			(7,121	)		—			(7,121	)
Other income (expense), net		(14,242	)		(3,093	)		(1,824	)			9,742			(11,476	)		(6,489	)		(27,382	)
Net income (loss) before taxes		32,524			4,963			3,750				(35,503	)		(4,350	)		(8,540	)		(7,156	)
Income tax (provision) benefit		(8,579	)		(1,319	)		(862	)			7,938			1,108			1,005			(709	)
Net income (loss) after taxes	$	23,945		$	3,644		$	2,888			$	(27,565	)	$	(3,242	)	$	(7,535	)	$	(7,865	)
Balance Sheet Data
Total loans net	$	580,182		$	181,359		$	59,973			$	155,863		$	—		$	4,110		$	981,487
Total assets		590,746			188,892			93,807				273,501			29,925			204,975			1,381,846
Total funds borrowed		434,527			143,815			53,719				294,465			7,649			127,853			1,062,028
Selected Financial Ratios
Return on average assets		5.48	%		2.56	%		4.27	%			(10.13	)%		(11.69	)%		(4.07	)%		(0.90	)%
Return on average equity		22.60			11.30			9.43			NM			NM				(12.37	)		(4.62	)
Interest yield		15.78			9.06			14.25				3.58		N/A			N/A				10.98
Net interest margin		14.18			7.44			11.23				(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 status⁽²⁾		0.73			0.07			0.44		⁽¹⁾		9.43		N/A			N/A				2.14
Charge-off ratio		1.89			0.46			0.00				7.21		N/A			N/A				2.73

(1)	Ratio is based on total commercial lending balances, and relates solely to the legacy commercial loan business.

(2)	Loans 90 days or more past due.