Company Quick10K Filing
Quick10K
Medallion Financial
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$7.60 25 $187
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-05 Earnings, Exhibits
8-K 2019-06-14 Shareholder Vote
8-K 2019-05-06 Earnings, Exhibits
8-K 2019-03-22 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2019-03-14 Enter Agreement, Exhibits
8-K 2019-02-15 Enter Agreement, Exhibits
8-K 2019-01-31 Enter Agreement, Exhibits
8-K 2019-01-11 Enter Agreement, Exhibits
8-K 2019-01-07 Earnings, Regulation FD, Exhibits
8-K 2018-12-15 Enter Agreement, Exhibits
8-K 2018-11-12 Earnings, Exhibits
8-K 2018-10-29 Other Events, Exhibits
8-K 2018-09-06 Enter Agreement, Exhibits
8-K 2018-08-13 Earnings, Exhibits
8-K 2018-08-03 Enter Agreement, Exhibits
8-K 2018-07-02 Enter Agreement, Exhibits
8-K 2018-06-15 Officers, Shareholder Vote
8-K 2018-05-30 Enter Agreement, Exhibits
8-K 2018-05-14 Earnings, Exhibits
8-K 2018-04-25 Amend Bylaw, Code of Ethics, Exhibits
8-K 2018-04-02 Other Events, Exhibits
8-K 2018-03-08 Other Events, Exhibits
8-K 2018-03-07 Shareholder Vote
8-K 2018-03-01 Earnings, Exhibits
8-K 2018-01-31 Enter Agreement, Exhibits
VAR Varian Medical Systems 12,250
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MTSI Macom Technology Solutions Holdings 1,010
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SUNS Solar Senior Capital 275
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MFIN 2019-06-30
Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part Ii-Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 mfin-ex311_153.htm
EX-31.2 mfin-ex312_156.htm
EX-32.1 mfin-ex321_154.htm
EX-32.2 mfin-ex322_155.htm

Medallion Financial Earnings 2019-06-30

MFIN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 mfin-10q_20190630.htm 10-Q mfin-10q_20190630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended June 30, 2019

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, 38th 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

 

Trading Symbols

 

Name of each exchange

on which registered

Common Stock, par value $0.01 per share

9.000% Senior Notes due 2021

 

MFIN

MFINL

 

NASDAQ Global Select Market

NASDAQ Global Select Market

 

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 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 check mark 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 Exchange Act).    YES      NO  

 

The number of outstanding shares of registrant’s Common Stock, par value $0.01, as of August 6, 2019 was 24,609,815.

 

 


 

MEDALLION FINANCIAL CORP.

FORM 10-Q

TABLE OF CONTENTS

 

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

Page 2 of 76


 

 

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BASIS OF PREPARATION

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, or ASC, Topic 946 – Financial Services – Investment Company, we made this change to our financial reporting prospectively, and have not restated or revised 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, or GAAP, applicable to bank holding companies, or Bank Holding Company Accounting, which applies commencing April 2, 2018, and to that applicable to investment companies under the 1940 Act, or Investment Company Accounting, which applies to prior periods.

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, which includes our portfolio, as well as assets serviced for third party investors, were $1,620,000,000 as of June 30, 2019, and were $1,522,000,000 as of December 31, 2018, 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 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 activities, 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., 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 consolidated balance sheet as of June 30, 2019, and the related consolidated statements of operations, consolidated statements of other comprehensive loss, consolidated statements of stockholders’ equity and cash flows for the quarter and six months then ended included in Item 1 have been prepared by us, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the US have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements include all adjustments, which are of a normal and recurring nature, necessary to present fairly our consolidated financial position and results of operations. The results of operations for the quarter and six months ended June 30, 2019 may not be indicative of future performance. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.

 

Page 3 of 76


 

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

 

(Dollars in thousands, except share and per share data)

 

UNAUDITED

June 30, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Cash (1)

 

$

35,138

 

 

$

23,842

 

Federal funds sold

 

 

37,010

 

 

 

33,871

 

Equity investments

 

 

9,797

 

 

 

9,197

 

Investment securities

 

 

44,820

 

 

 

45,324

 

Loans

 

 

1,088,475

 

 

 

1,017,882

 

Allowance for losses

 

 

(40,670

)

 

 

(36,395

)

Net loans receivable

 

 

1,047,805

 

 

 

981,487

 

Accrued interest receivable

 

 

7,742

 

 

 

7,413

 

Property, equipment, and right-of-use lease asset, net

 

 

12,821

 

 

 

1,222

 

Loan collateral in process of foreclosure (2)

 

 

52,368

 

 

 

49,495

 

Goodwill

 

 

150,803

 

 

 

150,803

 

Intangible assets, net

 

 

53,259

 

 

 

53,982

 

Other assets

 

 

30,390

 

 

 

25,210

 

Total assets

 

$

1,481,953

 

 

$

1,381,846

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses (3)

 

$

20,223

 

 

$

18,789

 

Accrued interest payable

 

 

4,205

 

 

 

3,852

 

Deposits

 

 

927,658

 

 

 

848,040

 

Short-term borrowings

 

 

46,688

 

 

 

55,178

 

Deferred tax liabilities and other tax payables

 

 

5,412

 

 

 

6,973

 

Operating lease liabilities

 

 

11,273

 

 

 

 

Long-term debt

 

 

180,990

 

 

 

158,810

 

Total liabilities

 

 

1,196,449

 

 

 

1,091,642

 

Commitments and contingencies (4)

 

 

 

 

 

 

 

 

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- 27,550,801

   shares at June 30, 2019 and 27,385,600 shares at December 31, 2018 issued)

 

 

275

 

 

 

274

 

Additional paid in capital

 

 

274,796

 

 

 

274,292

 

Treasury stock (2,951,243 shares at June 30, 2019 and December 31, 2018)

 

 

(24,919

)

 

 

(24,919

)

Accumulated other comprehensive income (loss)

 

 

1,145

 

 

 

(82

)

Retained earnings

 

 

6,771

 

 

 

13,043

 

Total stockholders’ equity

 

 

258,068

 

 

 

262,608

 

Non-controlling interest in consolidated subsidiaries

 

 

27,436

 

 

 

27,596

 

Total equity

 

 

285,504

 

 

 

290,204

 

Total liabilities and equity

 

$

1,481,953

 

 

$

1,381,846

 

Number of shares outstanding

 

 

24,599,558

 

 

 

24,434,357

 

Book value per share

 

$

10.49

 

 

$

10.75

 

 

(1)

Includes restricted cash of $2,475 as of June 30, 2019.

(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 $4,290 as of June 30, 2019 and $3,134 as of December 31, 2018.

(3)

Includes the short-term portion of lease liabilities of $1,872 as of June 30, 2019. Refer to Note 8 for more details.

(4)

Refer to Note 14 for details.

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

 

Page 4 of 76


 

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

Bank Holding

Company Accounting

 

 

Bank Holding

Company

Accounting

 

 

Combined (1)

 

(Dollars in thousands, except per share data)

 

For the Three

Months Ended

June 30, 2019

 

 

For the Six

Months Ended

June 30, 2019

 

 

For the Three

Months Ended

June 30, 2018

 

 

For the Six

Months Ended

June 30, 2018

 

Interest and fees on loans

 

$

31,313

 

 

$

60,752

 

 

$

32,026

 

 

$

32,026

 

Interest and dividends on investment securities

 

 

669

 

 

 

1,235

 

 

 

588

 

 

 

602

 

Medallion lease income

 

 

33

 

 

 

71

 

 

 

30

 

 

 

70

 

Interest income on investments

 

 

 

 

 

 

 

 

 

3,287

 

Dividend income from controlled subsidiaries

 

 

 

 

 

 

 

 

 

28

 

Interest income from affiliated investments

 

 

 

 

 

 

 

 

 

654

 

Interest income from controlled subsidiaries

 

 

 

 

 

 

 

 

 

10

 

Total interest income(2)/total investment income(2)

 

 

32,015

 

 

 

62,058

 

 

 

32,644

 

 

 

36,677

 

Interest on deposits

 

 

5,485

 

 

 

10,406

 

 

 

4,200

 

 

 

4,200

 

Interest on short-term borrowings

 

 

904

 

 

 

1,886

 

 

 

1,859

 

 

 

1,859

 

Interest on long-term debt

 

 

2,432

 

 

 

4,251

 

 

 

1,866

 

 

 

1,866

 

Interest expense

 

 

 

 

 

 

 

 

 

3,551

 

Total interest expense(3)

 

 

8,821

 

 

 

16,543

 

 

 

7,925

 

 

 

11,476

 

Net interest income/net investment income

 

 

23,194

 

 

 

45,515

 

 

 

24,719

 

 

 

25,201

 

Provision for loan losses

 

 

15,171

 

 

 

28,514

 

 

 

30,576

 

 

 

30,576

 

Net interest income (loss) after provision for loan losses

 

 

8,023

 

 

 

17,001

 

 

 

(5,857

)

 

 

(5,375

)

Other income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sponsorship and race winnings

 

 

4,889

 

 

 

8,068

 

 

 

5,228

 

 

 

5,228

 

Change in collateral value on in process of foreclosure

 

 

(1,972

)

 

 

(4,091

)

 

 

(96

)

 

 

(96

)

Gain on the extinguishment of debt

 

 

 

 

4,145

 

 

 

 

 

 

 

Impairment of equity investments

 

 

 

 

 

 

(474

)

 

 

(474

)

Other income (loss)

 

 

(1,234

)

 

 

424

 

 

 

220

 

 

 

280

 

Total other income, net

 

 

1,683

 

 

 

8,546

 

 

 

4,878

 

 

 

4,938

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,321

 

 

 

11,662

 

 

 

5,639

 

 

 

7,988

 

Race team related expenses

 

 

2,550

 

 

 

4,548

 

 

 

2,540

 

 

 

2,540

 

Collection costs

 

 

2,253

 

 

 

2,891

 

 

 

837

 

 

 

957

 

Professional fees

 

 

2,048

 

 

 

3,684

 

 

 

2,246

 

 

 

2,969

 

Loan servicing fees

 

 

1,293

 

 

 

2,487

 

 

 

1,128

 

 

 

1,128

 

Rent expense

 

 

577

 

 

 

1,177

 

 

 

591

 

 

 

834

 

Regulatory fees

 

 

448

 

 

 

895

 

 

 

582

 

 

 

582

 

Amortization of intangible assets

 

 

362

 

 

 

723

 

 

 

361

 

 

 

361

 

Travel, meals, and entertainment

 

 

205

 

 

 

470

 

 

 

603

 

 

 

809

 

Other expenses(4)

 

 

2,127

 

 

 

4,349

 

 

 

2,399

 

 

 

2,866

 

Total other expenses

 

 

18,184

 

 

 

32,886

 

 

 

16,926

 

 

 

21,034

 

Loss before income taxes/net investment loss before taxes(5)

 

 

(8,478

)

 

 

(7,339

)

 

 

(17,905

)

 

 

(21,471

)

Income tax benefit

 

 

1,835

 

 

 

2,091

 

 

 

4,021

 

 

 

4,357

 

Net loss after taxes/net investment loss after taxes

 

 

(6,643

)

 

 

(5,248

)

 

 

(13,884

)

 

 

(17,114

)

Net realized losses on investments(6)

 

 

 

 

 

 

 

 

 

 

 

(34,745

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

8,426

 

Total net realized losses on investments

 

 

 

 

 

 

 

 

 

 

 

(26,319

)

Net change in unrealized appreciation on Medallion Bank and other

   controlled subsidiaries

 

 

 

 

 

 

 

 

 

 

 

29,115

 

Net change in unrealized depreciation on investments other than securities

 

 

 

 

 

 

 

 

 

 

 

(1,915

)

Net change in unrealized depreciation on investments

 

 

 

 

 

 

 

 

 

 

 

(4,403

)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

(8,122

)

Net unrealized appreciation on investments

 

 

 

 

 

 

 

 

 

 

 

14,675

 

Net realized/unrealized losses on investments

 

 

 

 

 

 

 

 

 

 

 

(11,644

)

Net loss after taxes/net decrease on net assets resulting from operations

 

 

(6,643

)

 

 

(5,248

)

 

 

(13,884

)

 

 

(28,758

)

Less: income attributable to the noncontrolling interest

 

 

857

 

 

 

1,024

 

 

 

763

 

 

 

763

 

Total net loss attributable to Medallion Financial

   Corp./net decrease on net assets resulting from operations

 

$

(7,500

)

 

$

(6,272

)

 

$

(14,647

)

 

$

(29,521

)

Basic and diluted net loss per share

 

$

(0.31

)

 

$

(0.26

)

 

$

(0.60

)

 

$

(1.22

)

Distributions declared per share

 

$

 

 

$

 

 

$

 

 

$

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

24,359,280

 

 

 

24,323,967

 

 

 

24,230,815

 

 

 

24,193,057

 

 

(1)

Results include the three months ended June 30, 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 $188 and $425 of paid in kind interest for the three and six months ended June 30, 2019 and $487 and $978 for the comparable 2018 periods.

Page 5 of 76


 

(3)

Average borrowings outstanding were $1,127,509 and $1,108,512, and the related average borrowing costs were 3.14% and 3.01% for the three and six months ended June 30, 2019, and were $1,197,450 and $1,201,386 and 2.65% and 1.93% for the comparable 2018 periods.

(4)

See Note 12 for the components of other operating expenses as of March 31, 2018.

(5)

Includes $256 of net revenues received from Medallion Bank for the three months ended March 31, 2018, primarily for expense reimbursements. See Notes 6 and 15 for additional information.

(6)

There were no net losses on investment securities of affiliated issuers for the three months ended March 31, 2018.

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

 

Page 6 of 76


 

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME/(LOSS)

(UNAUDITED)

 

 

 

Bank Holding

Company

Accounting

 

 

Bank Holding

Company

Accounting

 

 

Combined (1)

 

(Dollars in thousands)

 

For the Three

Months Ended

June 30, 2019

 

 

For the Six

Months Ended

June 30, 2019

 

 

For the Three

Months Ended

June 30, 2018

 

 

For the Six

Months Ended

June 30, 2018

 

Net loss after taxes/net decrease on net assets resulting

   from operations

 

$

(6,643

)

 

$

(5,248

)

 

$

(13,884

)

 

$

(28,758

)

Other comprehensive income (loss), net of tax

 

 

558

 

 

 

1,227

 

 

 

(255

)

 

 

(255

)

Total comprehensive loss

 

 

(6,085

)

 

 

(4,021

)

 

 

(14,139

)

 

 

(29,013

)

Less: comprehensive income attributable to the noncontrolling

   interest

 

 

857

 

 

 

1,024

 

 

 

763

 

 

 

763

 

Total comprehensive loss attributable to Medallion

   Financial Corp.

 

$

(6,942

)

 

$

(5,045

)

 

$

(14,902

)

 

$

(29,776

)

 

(1)

Results include the three months ended June 30, 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.

 

Page 7 of 76


 

 

MEDALLION FINANCIAL CORP.

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

(UNAUDITED)

 

 

 

Bank Holding Company Accounting

 

(Dollars in thousands)

 

Common

Stock

Shares

 

 

Common

Stock

 

 

Preferred

Stock

 

 

Capital in

Excess of

Par

 

 

Treasury

Stock

Shares

 

 

Treasury

Stock

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Income

 

 

Total

Stockholders’

Equity

 

 

Non-

controlling

Interest

 

 

Total

Equity

 

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

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,228

 

 

 

 

 

 

1,228

 

 

 

167

 

 

 

1,395

 

Distributions to non-

   controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(592

)

 

 

(592

)

Stock-based compensation

 

 

 

 

 

1

 

 

 

 

 

 

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

165

 

 

 

 

 

 

165

 

Issuance of restricted stock, net

 

 

163,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forfeiture of restricted stock, net

 

 

(1,699

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains

   on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

669

 

 

 

669

 

 

 

 

 

 

669

 

Balance at March 31, 2019

 

 

27,546,999

 

 

$

275

 

 

 

 

 

$

274,456

 

 

 

(2,951,243

)

 

$

(24,919

)

 

$

14,271

 

 

$

587

 

 

$

264,670

 

 

$

27,171

 

 

$

291,841

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,500

)

 

 

 

 

 

(7,500

)

 

 

857

 

 

 

(6,643

)

Distributions to non-controlling

   interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(592

)

 

 

(592

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

340

 

 

 

 

 

 

340

 

Issuance of restricted stock, net

 

 

4,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forfeiture of restricted stock, net

 

 

(949

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains

   on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

558

 

 

 

558

 

 

 

 

 

 

558

 

Balance at June 30, 2019

 

 

27,550,801

 

 

$

275

 

 

 

 

 

$

274,796

 

 

 

(2,951,243

)

 

$

(24,919

)

 

$

6,771

 

 

$

1,145

 

 

$

258,068

 

 

$

27,436

 

 

$

285,504

 

 

 

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

Page 8 of 76


 

 

 

 

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

 

 

Noncontrolling

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 decrease in net assets resulting

   from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,299

)

 

 

 

 

 

23,425