NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2016
(1) ORGANIZATION OF MEDALLION FINANCIAL CORP. AND ITS SUBSIDIARIES
Medallion Financial Corp. (the Company), is a closed-end management investment company organized as a Delaware
corporation. The Company has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). The Company conducts its business through various wholly-owned subsidiaries including
its primary operating companies, Medallion Bank and Medallion Funding LLC (MFC), a Small Business Investment Company (SBIC) which originates and services taxicab medallion and commercial loans.
A wholly-owned portfolio investment, Medallion Bank, a Federal Deposit Insurance Corporation (FDIC) insured industrial bank, originates
medallion loans, commercial loans, and consumer loans, raises deposits, and conducts other banking activities (see Note 3). 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 is not an investment company, and therefore, is not consolidated with the Company, but instead is treated as a portfolio investment. It 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 Banks affiliates who
have extensive prior experience in these asset groups. Subsequent to its formation, Medallion Bank began originating consumer loans to finance the purchases of RVs, boats, and other related items, and to finance small scale home improvements.
The Company formed a wholly-owned portfolio company, Medallion Servicing Corporation (MSC), to provide loan services to
Medallion Bank, also a portfolio company wholly-owned by the Company. The Company has assigned all of its loan servicing rights for Medallion Bank, which consists of servicing taxi medallion and commercial loans originated by Medallion Bank, to MSC,
who bills and collects the related service fee income from Medallion Bank, and is allocated and charged by the Company for MSCs share of these servicing costs.
The Company also conducts business through 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 also conducts business through its asset-based lending
division, Medallion Business Credit (MBC), an originator of loans to small businesses for the purpose of financing inventory and receivables.
MFC established a wholly-owned subsidiary, Taxi Medallion Loan Trust III (Trust III), for the purpose of owning medallion loans originated by MFC or others. Trust III is a separate legal and corporate
entity with its own creditors who, in any liquidation of Trust III, will be entitled to be satisfied out of Trust IIIs assets prior to any value in Trust III becoming available to Trust IIIs equity holders. The assets of Trust III,
aggregating $194,013,000 at March 31, 2016, 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 IIIs 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 Trusts assets prior to any
value in Fin Trust becoming available to Fin Trusts equity holders. The assets of Fin Trust, aggregating $34,879,000 at March 31, 2016, 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 fair value of $36,297,000 on the consolidated
balance sheet at March 31, 2016, compared to $37,882,000 and $44,063,000 at December 31, 2015 and March 31, 2015, and are considered non-qualifying assets under the 1940 Act.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the US 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 managements 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 other receivables, foreclosed properties, loans held for sale, and
investments, among other effects.
Page 7 of 75
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, except for Medallion Bank and
other portfolio investments. All significant intercompany transactions, balances, and profits have been eliminated in consolidation. As a non-investment company, Medallion Bank is not consolidated with the Company, which is an investment company
under the 1940 Act. See Note 3 for the presentation of financial information for Medallion Bank and other controlled subsidiaries.
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, and
includes $1,500,000 related to compensating balance requirements of several regional banking institutions, and $7,833,000 and $7,831,000 pledged to a lender of an affiliate as of March 31, 2016 and December 31, 2015.
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 entitys 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 2, 11, and 12 to the consolidated financial statements.
Investment Valuation
The Companys loans, net of participations and any unearned discount, are considered investment securities under the 1940 Act and are recorded at fair value. As part of the fair value methodology,
loans are valued at cost adjusted for any unrealized appreciation (depreciation). Since no ready market exists for these loans, the fair value is determined in good faith by the Board of Directors. In determining the fair value, the Board of
Directors considers factors such as the financial condition of the borrower, the adequacy of the collateral, individual credit risks, historical loss experience, and the relationships between current and projected market rates and portfolio rates of
interest and maturities. Foreclosed properties, which represent collateral received from defaulted borrowers, are valued similarly.
Equity investments (common stock and stock warrants, including certain controlled subsidiary portfolio investments) and investment securities (US Treasuries and mortgage backed bonds), in total
representing 39% and 35% of the investment portfolio at March 31, 2016 and December 31, 2015, are recorded at fair value, represented as cost, plus or minus unrealized appreciation or depreciation. The fair value of investments that have no ready
market are 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 equity
investments were marketable securities of $573,000 and $570,000 at March 31, 2016 and December 31, 2015, and non-marketable securities of $6,589,000 and $6,289,000 in the comparable periods. The $168,227,000 and $159,913,000 related to portfolio
investments in controlled subsidiaries at March 31, 2016 and December 31, 2015 were all non-marketable in each period. 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.
The Companys investment in Medallion Bank, as a wholly owned portfolio investment, is also subject to quarterly assessments of fair value. The Company conducts a thorough valuation analysis as
described previously, and also receives 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 an annual basis. The Companys analysis
includes factors such as various regulatory restrictions that were established at Medallion Banks 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 moratoriums expiration. Because of these restrictions and other factors, the Companys 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 Banks 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
second quarter of 2015, the Company became aware of external interest in Medallion Bank and its portfolios assets at values in excess of their book value. The Company incorporated these new factors in the Medallion Banks fair value
analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Banks fair value,
and this appreciation of $15,500,000 was thereby recorded in 2015. See Note 3 for additional information about Medallion Bank.
A majority of the Companys investments consist of long-term loans to persons defined by SBA regulations as socially or economically
disadvantaged, or to entities that are at least 50% owned by such persons. Approximately 48% and 51% of the Companys
Page 8 of 75
investment portfolio at March 31, 2016 and December 31, 2015 had arisen in connection with the financing of taxicab medallions, taxicabs, and related assets, of which 68% and 69% were in New York
City at March 31, 2016 and December 31, 2015. These loans are secured by the medallions, taxicabs, and related assets, and are personally guaranteed by the borrowers, or in the case of corporations, are generally guaranteed personally by the owners.
A portion of the Companys portfolio (13% and 14% at March 31, 2016 and December 31, 2015) represents loans to various commercial enterprises in a wide variety of industries, including manufacturing, retail trade, information, recreation, and
various other industries. Approximately 43% of these loans are made primarily in the Midwest and 22% in the metropolitan New York City area, with the balance widely scattered across the United States. Investments in controlled unconsolidated
subsidiaries, equity investments, and investment securities were 27%, 1%, and 11% at March 31, 2016, and were 26%, 1%, and 8% at December 31, 2015.
On a managed basis, which includes the investments of Medallion Bank after eliminating the Companys investment in Medallion Bank, medallion loans were 41% and 43% at March 31, 2016 and December 31,
2015 (74% and 74% in New York City), commercial loans were 8% and 8%, and 42% and 41% were consumer loans in all 50 states collateralized by recreational vehicles, boats, motorcycles, trailers, and home improvements. Investment securities were 7%
and 6% at March 31, 2016 and December 31, 2015, and equity investments (including investments in controlled subsidiaries) were 2% and 2%.
Investment Transactions and Income Recognition
Loan origination fees and
certain direct origination costs are deferred and recognized as an adjustment to the yield of the related loans. At March 31, 2016 and December 31, 2015, net loan origination costs were $293,000 and $326,000. Net accretion to income for the three
months ended March 31, 2016 and 2015 was $5,000 and $17,000.
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 as an adjustment to the yield of the related investment. At March 31, 2016 and December 31, 2015,
there were no premiums or discounts on investment securities, and their related income accretion or amortization was immaterial for 2016 and 2015.
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. At March 31, 2016, December 31, 2015, and March 31, 2015, total nonaccrual loans were $29,856,000, $16,873,000, and $10,123,000, and represented 8%, 4%,
and 3% of the gross medallion and commercial loan portfolio at each period end, and were primarily concentrated in the taxi medallion portfolio at March 31, 2016 and December 31, 2015 and were concentrated in the secured mezzanine portfolio at March
31, 2015. The amount of interest income on nonaccrual loans that would have been recognized if the loans had been paying in accordance with their original terms was $7,863,000, $8,306,000, and $7,505,000 as of March 31, 2016, December 31, 2015, and
March 31, 2015, of which $618,000 and $384,000 would have been recognized in the quarters ended March 31, 2016 and 2015.
Loan Sales and Servicing Fee Receivable
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 has 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 $401,045,000 and $406,460,000 at March 31, 2016 and December 31, 2015, and included $379,404,000 and $382,919,000 of loans serviced for Medallion Bank. The Company has evaluated the servicing
aspect of its business in accordance with FASB ASC 860, most of which relates to servicing assets held by Medallion Bank, and determined that no material servicing asset or liability exists as of March 31, 2016 and December 31, 2015. The Company has
assigned its servicing rights to the Medallion Bank portfolio to MSC, a wholly-owned unconsolidated portfolio investment. The costs of servicing are allocated to MSC by the Company, and the servicing fee income is billed to and collected from
Medallion Bank by MSC.
Unrealized Appreciation (Depreciation) and Realized Gains (Losses) on Investments
Unrealized appreciation (depreciation) on investments is 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 (depreciation) on investments was $47,450,000, $44,483,000, and $35,895,000 as of March 31, 2016, December 31, 2015, and March 31, 2015. The Companys investment in Medallion Bank, a wholly owned portfolio
investment, is also subject to quarterly assessments of fair value. The Company conducts a thorough valuation analysis as described previously, and determines whether any factors give rise to a valuation different than recorded book value, including
various regulatory restrictions that were established at Medallion Banks 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, the Companys 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
Banks 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 second quarter of 2015, the Company became aware of
external interest in Medallion Bank and its portfolio assets at values in excess of their book value. The Company incorporated these new factors in the
Page 9 of 75
Medallion Banks fair value analysis and the Board of Directors determined that Medallion Bank had a fair value in excess of book value. The Company also engaged a valuation specialist to
assist the Board of Directors in their determination of Medallion Banks fair value, and this appreciation of $15,500,000 was thereby recorded in 2015 as a component of unrealized appreciation (depreciation) on investments, in addition to
Medallion Banks actual results of operations for the quarter. See Note 3 for additional information about Medallion Bank.
The following tables set forth the changes in the Companys unrealized appreciation (depreciation) on investments for the 2016 and
2015 quarters shown below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Medallion
Loans
|
|
|
Commercial
Loans
|
|
|
Investment in
Subsidiaries
|
|
|
Equity
Investments
|
|
|
Investment
Securities
|
|
|
Investments
other
than securities
|
|
|
Total
|
|
Balance December 31, 2015
|
|
($
|
3,438
|
)
|
|
($
|
2,239
|
)
|
|
$
|
18,640
|
|
|
$
|
2,582
|
|
|
($
|
18
|
)
|
|
$
|
28,956
|
|
|
$
|
44,483
|
|
Net change in unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation on investments
|
|
|
|
|
|
|
|
|
|
|
6,115
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
(1,585
|
)
|
|
|
4,523
|
|
Depreciation on investments
|
|
|
(2,359
|
)
|
|
|
173
|
|
|
|
305
|
|
|
|
12
|
|
|
|
(47
|
)
|
|
|
|
|
|
|
(1,916
|
)
|
Reversal of unrealized appreciation (depreciation) related to realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
12
|
|
Losses on investments
|
|
|
|
|
|
|
348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
348
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance March 31, 2016
|
|
($
|
5,797
|
)
|
|
($
|
1,718
|
)
|
|
$
|
25,060
|
|
|
$
|
2,587
|
|
|
($
|
53
|
)
|
|
$
|
27,371
|
|
|
$
|
47,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Medallion
Loans
|
|
|
Commercial
Loans
|
|
|
Investment in
Subsidiaries
|
|
|
Equity
Investments
|
|
|
Investment
Securities
|
|
|
Investments
other
than securities
|
|
|
Total
|
|
Balance December 31, 2014
|
|
$
|
|
|
|
($
|
2,949
|
)
|
|
$
|
5,698
|
|
|
$
|
1,608
|
|
|
$
|
|
|
|
$
|
38,645
|
|
|
$
|
43,002
|
|
Net change in unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation on investments
|
|
|
|
|
|
|
|
|
|
|
1,087
|
|
|
|
(244
|
)
|
|
|
|
|
|
|
(3,439
|
)
|
|
|
(2,596
|
)
|
Depreciation on investments
|
|
|
(159
|
)
|
|
|
514
|
|
|
|
(76
|
)
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
298
|
|
Reversal of unrealized appreciation (depreciation) related to realized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on investments
|
|
|
|
|
|
|
|
|
|
|
(4,809
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,809
|
)
|
Losses on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance March 31, 2015
|
|
($
|
159
|
)
|
|
($
|
2,435
|
)
|
|
$
|
1,900
|
|
|
$
|
1,383
|
|
|
$
|
|
|
|
$
|
35,206
|
|
|
$
|
35,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below summarizes components of unrealized and realized gains and losses in the investment
portfolio for the quarters ended March 31, 2016 and 2015.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
|
|
|
|
|
|
Unrealized appreciation
|
|
($
|
7
|
)
|
|
($
|
168
|
)
|
Unrealized depreciation
|
|
|
(2,239
|
)
|
|
|
298
|
|
Net unrealized appreciation (depreciation) on investment in Medallion Bank and other controlled subsidiaries
|
|
|
8,468
|
|
|
|
2,383
|
|
Realized gains
|
|
|
12
|
|
|
|
(4,809
|
)
|
Realized losses
|
|
|
348
|
|
|
|
|
|
Net unrealized gains (losses) on investments other than securities and other assets
|
|
|
(1,585
|
)
|
|
|
(3,439
|
)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,997
|
|
|
($
|
5,735
|
)
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on investments
|
|
|
|
|
|
|
|
|
Realized gains
|
|
$
|
34
|
|
|
$
|
4,809
|
|
Realized losses
|
|
|
(348
|
)
|
|
|
|
|
Other gains
|
|
|
164
|
|
|
|
3,088
|
|
Direct recoveries (charge offs)
|
|
|
(38
|
)
|
|
|
2
|
|
Realized gains on investments other than securities and other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
($
|
188
|
)
|
|
$
|
7,899
|
|
|
|
|
|
|
|
|
|
|
Page 10 of 75
The following table provides additional information on attributes of the nonperforming loan
portfolio as of March 31, 2016, December 31, 2015, and March 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Recorded
Investment
(1)
(2)
|
|
|
Unpaid
Principal
Balance
|
|
|
Average Recorded
Investment
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Medallion
(3)
|
|
$
|
26,398
|
|
|
$
|
26,549
|
|
|
$
|
26,429
|
|
Commercial
(3)
|
|
|
3,456
|
|
|
|
10,082
|
|
|
|
3,550
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Medallion
(3)
|
|
$
|
12,973
|
|
|
$
|
13,051
|
|
|
$
|
13,010
|
|
Commercial
(3)
|
|
|
3,900
|
|
|
|
10,401
|
|
|
|
4,293
|
|
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Medallion
(3)
|
|
$
|
1,206
|
|
|
$
|
1,208
|
|
|
$
|
1,208
|
|
Commercial
(3)
|
|
|
8,917
|
|
|
|
14,978
|
|
|
|
9,006
|
|
(1)
|
As of March 31, 2016, December 31, 2015, and March 31, 2015, $7,471, $5,621, and $2,594 of unrealized depreciation had been recorded as a valuation allowance on these
loans.
|
(2)
|
Interest income of $45 and $10 was recognized on loans for the quarters ended March 31, 2016 and 2015.
|
(3)
|
Included in the unpaid principal balance is unearned paid-in-kind interest on nonaccrual loans of $6,775, $6,579, and $6,061, which is included in the nonaccrual
disclosures in the section titled Investment Transactions and Income Recognition on page 10 as of March 31, 2016, December 31, 2015, and March 31, 2015.
|
The following tables show the aging of medallion and commercial loans as of March 31, 2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
Days Past Due
|
|
|
|
|
|
|
|
|
Recorded
Investment
>
90 Days and
Accruing
|
|
(Dollars in thousands)
|
|
31-60
|
|
|
61-90
|
|
|
91 +
|
|
|
Total
|
|
|
Current
|
|
|
Total
|
|
|
Medallion loans
|
|
$
|
31,867
|
|
|
$
|
13,169
|
|
|
$
|
29,260
|
|
|
$
|
74,296
|
|
|
$
|
234,489
|
|
|
$
|
308,785
|
|
|
$
|
4,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured mezzanine
|
|
|
|
|
|
|
|
|
|
|
1,390
|
|
|
|
1,390
|
|
|
|
71,556
|
|
|
|
72,946
|
|
|
|
|
|
Asset-based receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,925
|
|
|
|
2,925
|
|
|
|
|
|
Other secured commercial
|
|
|
|
|
|
|
|
|
|
|
876
|
|
|
|
876
|
|
|
|
7,762
|
|
|
|
8,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans
|
|
|
|
|
|
|
|
|
|
|
2,266
|
|
|
|
2,266
|
|
|
|
82,243
|
|
|
|
84,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
31,867
|
|
|
$
|
13,169
|
|
|
$
|
31,526
|
|
|
$
|
76,562
|
|
|
$
|
316,732
|
|
|
$
|
393,294
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
Days Past Due
|
|
|
|
|
|
|
|
|
|
|
|
Recorded
Investment
>
90 Days and
Accruing
|
|
(Dollars in thousands)
|
|
31-60
|
|
|
61-90
|
|
|
91 +
|
|
|
Total
|
|
|
Current
|
|
|
Total
|
|
|
Medallion loans
|
|
$
|
17,354
|
|
|
$
|
10,224
|
|
|
$
|
11,880
|
|
|
$
|
39,458
|
|
|
$
|
271,975
|
|
|
$
|
311,433
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured mezzanine
|
|
|
|
|
|
|
|
|
|
|
1,390
|
|
|
|
1,390
|
|
|
|
66,459
|
|
|
|
67,849
|
|
|
|
|
|
Asset-based receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,750
|
|
|
|
3,750
|
|
|
|
|
|
Other secured commercial
|
|
|
202
|
|
|
|
92
|
|
|
|
945
|
|
|
|
1,239
|
|
|
|
11,383
|
|
|
|
12,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans
|
|
|
202
|
|
|
|
92
|
|
|
|
2,335
|
|
|
|
2,629
|
|
|
|
81,592
|
|
|
|
84,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
17,556
|
|
|
$
|
10,316
|
|
|
$
|
14,215
|
|
|
$
|
42,087
|
|
|
$
|
353,567
|
|
|
$
|
395,654
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A third party finance company sold various participations in asset based loans to Medallion Business
Credit and Medallion Bank. In April 2013 the aggregate balance of the participations was approximately $13.8 million, $12.9 million of which were held by Medallion Bank. That amount was divided between seven separate borrowers operating in a variety
of industries. In April 2013, the third party finance company became the subject of an involuntary bankruptcy petition filed by its bank lenders. Among other things, the bank lenders alleged that the third party finance company fraudulently
misrepresented its borrowing availability under its credit facility with the bank lenders and are seeking the third party finance companys liquidation. In May 2013, the bankruptcy court presiding over the third party finance companys
case entered an order converting the involuntary chapter 7 case to a chapter 11 case. The Company and Medallion Bank have placed these loans on nonaccrual, and reversed interest income. In addition, the Company and Medallion Bank have established
valuation allowances against the outstanding balances. On May 31, 2013, the Company and Medallion Bank commenced an adverse proceeding against the third party finance company and the bank lenders seeking declaratory judgment that the Companys
and Medallion Banks loan participations are true participations and not subject to the bankruptcy estate or to the bank lenders security interest in the third party finance companys assets. The third party finance company and bank
lenders are contesting the Companys and Medallion Banks position. In April 2014, the Company and Medallion Bank received a decision from the court granting summary judgment in their favor with respect to the issue of whether the
Companys and Medallion Banks loan participations are true participations. In March 2015, the Company and Medallion Bank received a decision from the court finding that the bank lenders generally held a first lien on the Companys
and Medallion Banks loan participations subject to, among other things, defenses still pending prosecution by the parties and adjudication by the court. The Company and Medallion Bank are appealing the decision. The remaining issues are still
being litigated. Although the Company and Medallion Bank believe the claims raised by the third party finance company and the bank lenders are without
Page 11 of 75
merit and will vigorously defend against them, the Company and Medallion Bank cannot at this time predict the outcome of this litigation or determine their potential exposure. At March 31, 2016,
five of the seven secured borrowers had refinanced their loans in full with third parties, and the related proceeds are held in escrow pending resolution of the bankruptcy proceedings. In September 2015, one loan was sold at a discount to a third
party, and the related proceeds are held in escrow pending resolution of the bankruptcy proceeding. One loan was charged off in September 2014. The balances related to the paid off loans have been reclassified to other assets on the consolidated
balance sheet. The table below summarizes these receivables and their status with the Company and Medallion Bank as of March 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
The Company
|
|
|
Medallion Bank
|
|
|
Total
|
|
Loans outstanding
|
|
$
|
258
|
|
|
$
|
1,953
|
|
|
$
|
2,211
|
|
Loans charged off
(1)
|
|
|
(258
|
)
|
|
|
(1,953
|
)
|
|
|
(2,211
|
)
|
Valuation allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loans outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables
|
|
|
590
|
|
|
|
11,062
|
|
|
|
11,652
|
|
Valuation allowance
|
|
|
(236
|
)
|
|
|
(4,425
|
)
|
|
|
(4,661
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other receivables
|
|
|
354
|
|
|
|
6,637
|
|
|
|
6,991
|
|
Total net outstanding
|
|
|
354
|
|
|
|
6,637
|
|
|
|
6,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income foregone in 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income foregone
|
|
$
|
74
|
|
|
$
|
108
|
|
|
$
|
182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The income foregone on the charged off loan was $99 for the Company and $213 for Medallion Bank.
|
The Company had no troubled debt restructurings during the quarter ended March 31, 2016.
The following table shows troubled debt restructurings which the Company entered into during the quarter ended March 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Number of Loans
|
|
|
Pre-
Modification
Investment
|
|
|
Post-Modification
Investment
|
|
Medallion loans
|
|
|
11
|
|
|
$
|
7,469
|
|
|
$
|
8,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured mezzanine
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-based receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Other secured commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
11
|
|
|
$
|
7,469
|
|
|
$
|
8,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At March 31, 2016 and 2015, 15 and 0 of the loans that had been modified as troubled debt restructurings
during 2015 were in payment default, with a post-modification investment of $11,007 and $0 as of the date of restructuring.
Goodwill
In accordance with ASC Topic 350, Intangibles Goodwill and Other, the Company has determined that it is more likely
than not that the relevant reporting units fair value is greater than its carrying amount as of March 31, 2016 and December 31, 2015. The results of this evaluation demonstrated no impairment in goodwill for any period evaluated, and
management believes, and the Board of Directors concurs, that there is no impairment as of March 31, 2016. The Company conducts annual, and if necessary, more frequent, appraisals of its goodwill, and will recognize any impairment in the period any
impairment is identified as a charge to operating expenses.
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
$29,000 and $37,000 for the quarters ended March 31, 2016 and 2015.
Deferred Costs
Deferred financing costs, included in other assets, represents costs associated with obtaining the Companys borrowing facilities,
and are amortized on a straight line basis over the lives of the related financing agreements. Amortization expense was $83,000 and $67,000 for the quarters ended March 31, 2016 and 2015. 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 balance sheet for all of these purposes were $2,227,000, $2,126,000, and $1,749,000 as of March 31, 2016, December 31, 2015, and March 31, 2015.
Page 12 of 75
Federal Income Taxes
The Company and each of its major subsidiaries other than Medallion Bank and Medallion Funding LLC (the RIC subsidiaries) have qualified
to be treated for federal income tax purposes as regulated investment companies (RICs) under the Internal Revenue Code of 1986, as amended (the Code). As RICs, the Company and each of the RIC subsidiaries are not subject to US federal income tax on
any gains or investment company taxable income (which includes, among other things, dividends and interest income reduced by deductible expenses) that it distributes to its shareholders, if at least 90% of its investment company taxable income for
that taxable year is distributed. It is the Companys and the RIC subsidiaries policy to comply with the provisions of the Code. The Companys RIC qualification is determined on an annual basis, and it qualified and filed its federal
tax returns as a RIC for 2014 and 2013, and anticipates qualifying and filing as a RIC for 2015. As a result, no provisions for income taxes have been recorded for the quarters ended March 31, 2016 and 2015. State and local tax treatment follows the
federal model.
The Company has filed tax returns in many states. Federal, New York State, and New York City tax filings of
the Company for the tax years 2012 through the present are the more significant filings that are open for examination.
Medallion Bank is not a RIC and is taxed as a regular corporation. Fin Trust, Medallion Funding LLC, and Trust III are not subject to
federal income taxation, instead their taxable income is treated as having been earned by the Company.
Net Increase in Net
Assets Resulting from Operations per Share (EPS)
Basic earnings per share are computed by dividing net increase 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 Companys 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.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Net increase in net assets resulting from operations available to common shareholders
|
|
$
|
6,848
|
|
|
$
|
7,068
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding applicable to basic EPS
|
|
|
24,175,554
|
|
|
|
24,446,419
|
|
Effect of dilutive stock options
|
|
|
213
|
|
|
|
20,616
|
|
Effect of restricted stock grants
|
|
|
55,577
|
|
|
|
75,692
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted average common shares outstanding applicable to diluted EPS
|
|
|
24,231,344
|
|
|
|
24,542,727
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.28
|
|
|
$
|
0.29
|
|
Diluted earnings per share
|
|
|
0.28
|
|
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
Potentially dilutive common shares excluded from the above calculations aggregated 424,154 and 180,184
shares as of March 31, 2016 and 2015.
Stock Compensation
The Company follows FASB Accounting Standard Codification Topic 718 (ASC 718), Compensation Stock Compensation, for its
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 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 increase in 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 the three months ended March 31, 2016 and 2015, the Company issued no restricted shares and 155,118 restricted shares of
stock-based compensation awards, and no shares of other stock-based compensation awards, and recognized $204,000 and $390,000, or $0.01 and $0.02 per diluted common share for each period, of non-cash stock-based compensation expense related to the
grants. As of March 31, 2016, the total remaining unrecognized compensation cost related to unvested stock options and restricted stock was $681,000, which is expected to be recognized over the next 9 quarters (see Note 5).
Page 13 of 75
Derivatives
The Company manages its exposure to increases in market rates of interest by periodically purchasing interest rate caps to lock in the cost of funds of its variable-rate debt in the event of a rapid run
up in interest rates. The Company entered into contracts to purchase interest rate caps on $170,000,000 of notional value of principal from various multinational banks, with termination dates ranging to September 2018. The caps provide for payments
to the Company if various LIBOR thresholds are exceeded during the cap terms. Total cap purchases were generally fully expensed when paid, including $0 and $0 for the quarters ended March 31, 2016 and 2015, and all are carried at $0 on the balance
sheet at March 31, 2016.
Reclassifications
Certain reclassifications have been made to prior year balances to conform with the current quarters presentation. These reclassifications have no effect on the previously reported results of
operations.
(3) INVESTMENT IN MEDALLION BANK AND OTHER CONTROLLED SUBSIDIARIES
The following table presents information derived from Medallion Banks statement of comprehensive income and other valuation
adjustments on other controlled subsidiaries for the quarters ended March 31, 2016 and 2015.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Statement of comprehensive income
|
|
|
|
|
|
|
|
|
Investment income
|
|
$
|
24,477
|
|
|
$
|
20,678
|
|
Interest expense
|
|
|
2,746
|
|
|
|
2,027
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
21,731
|
|
|
|
18,651
|
|
Noninterest income
|
|
|
70
|
|
|
|
76
|
|
Operating expenses
|
|
|
5,496
|
|
|
|
5,051
|
|
|
|
|
|
|
|
|
|
|
Net investment income before income taxes
|
|
|
16,305
|
|
|
|
13,676
|
|
Income tax provision
|
|
|
(3,704
|
)
|
|
|
(4,501
|
)
|
|
|
|
|
|
|
|
|
|
Net investment income after income taxes
|
|
|
12,601
|
|
|
|
9,175
|
|
Net realized/unrealized losses of Medallion Bank
|
|
|
(6,440
|
)
|
|
|
(2,410
|
)
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations of Medallion Bank
|
|
|
6,161
|
|
|
|
6,765
|
|
Unrealized depreciation on Medallion Bank
(1)
|
|
|
(3,475
|
)
|
|
|
(5,066
|
)
|
Net realized/unrealized gains (losses) on controlled subsidiaries other than Medallion Bank
|
|
|
5,782
|
|
|
|
(4,125
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations of Medallion Bank and other controlled
subsidiaries
|
|
$
|
8,468
|
|
|
($
|
2,426
|
)
|
|
|
|
|
|
|
|
|
|
(1)
|
Unrealized depreciation on Medallion Bank reflects the adjustment to the investment carrying amount to reflect the dividends declared to the Company and the US
Treasury.
|
The following table presents Medallion Banks balance sheets and the net investment in other
controlled subsidiaries as of March 31, 2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Loans
|
|
$
|
1,015,857
|
|
|
$
|
996,375
|
|
Investment securities, at fair value
|
|
|
38,672
|
|
|
|
35,524
|
|
|
|
|
|
|
|
|
|
|
Net investments
(1)
|
|
|
1,054,529
|
|
|
|
1,031,899
|
|
Cash
|
|
|
24,546
|
|
|
|
23,094
|
|
Other assets, net
|
|
|
22,060
|
|
|
|
24,827
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,101,135
|
|
|
$
|
1,079,820
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
$
|
4,162
|
|
|
$
|
6,106
|
|
Due to affiliates
|
|
|
1,193
|
|
|
|
1,387
|
|
Deposits and other borrowings, including accrued interest payable
|
|
|
930,675
|
|
|
|
909,909
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
936,030
|
|
|
|
917,402
|
|
Medallion Bank equity
(2)
|
|
|
165,105
|
|
|
|
162,418
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
1,101,135
|
|
|
$
|
1,079,820
|
|
|
|
|
|
|
|
|
|
|
Investment in other controlled subsidiaries
|
|
$
|
13,663
|
|
|
$
|
7,747
|
|
Total investment in Medallion Bank and other controlled subsidiaries
(3)
|
|
|
168,227
|
|
|
|
159,913
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Included in Medallion Banks net investments is $5 and $6 for purchased loan premium at March 31, 2016 and December 31, 2015.
|
(2)
|
Includes $26,303 of preferred stock issued to the US Treasury under the Small Business Lending Fund Program (SBLF).
|
(3)
|
Includes $15,500 of unrealized appreciation on Medallion Bank, in excess of Medallion Banks book value as of March 31, 2016 and December 31, 2015.
|
The following paragraphs summarize the accounting and reporting policies of Medallion Bank, and provide
additional information relating to the tables presented above.
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. At March 31, 2016 and
December 31, 2015, the net premium on investment securities totaled $285,000 and $311,000, and $24,000 and $18,000 was amortized into interest income for the quarters ended March 31, 2016 and 2015.
Page 14 of 75
Loan origination fees and certain direct origination costs are deferred and recognized as an
adjustment to the yield of the related loans. At March 31, 2016 and December 31, 2015, net loan origination costs were $11,549,000 and $11,400,000. Net amortization expense for the quarters ended March 31, 2016 and 2015 was $821,000 and
$704,000.
Medallion Banks policies regarding nonaccrual of medallion and commercial loans are similar to those of the
Company. The consumer portfolio has different characteristics compared to commercial loans, typified by a larger number of lower dollar loans that have similar characteristics. 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. At March 31, 2016, $2,858,000 or less than 1% of consumer loans, no commercial loans and $33,164,000 or 10% of medallion loans were on nonaccrual, compared to $3,381,000 or 1% of consumer loans, no
commercial loans, and $21,722,000 or 6% of medallion loans on nonaccrual at December 31, 2015, and $2,761,000 or 1% of consumer loans, $1,351,000 or 3% of commercial loans and $711,000 or less than 1% of medallion loans were on nonaccrual at March
31, 2015. The amount of interest income on nonaccrual loans that would have been recognized if the loans had been paying in accordance with their original terms was $533,000, $233,000, and $96,000 as of March 31, 2016, December 31, 2015, and March
31, 2015. See also the paragraph and table on page 45 following the delinquency table for a discussion of other past due amounts.
Medallion Banks loan and investment portfolios are assessed for collectability on a monthly basis, and a loan loss allowance is established for any realizability concerns on specific investments,
and general reserves have also been established for any unknown factors. Adjustments to the value of this portfolio are based on the Companys own historical loan loss data developed since 2004, adjusted for changes in delinquency trends and
other factors as described previously in Note 2.
Medallion Bank raises deposits to fund loan originations. The deposits were
raised through the use of investment brokerage firms who package deposits qualifying for FDIC insurance into pools that are sold to Medallion Bank. The rates paid on the deposits are highly competitive with market rates paid by other financial
institutions, and include a brokerage fee depending on the maturity of the deposit, which averages less than 0.15%, and which is capitalized and amortized to interest expense over the life of the respective pool. The total amount capitalized at
March 31, 2016 and December 31, 2015 was $1,873,000 and $2,034,000, and $340,000 and $313,000 was amortized to interest expense during the quarters ended March 31, 2016 and 2015. Interest on the deposits is accrued daily and paid monthly, quarterly,
semiannually, or at maturity.
The outstanding balances of fixed rate borrowings were as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due for the Fiscal Year Ending March 31,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Interest
|
|
(Dollars in thousands)
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
Thereafter
|
|
|
2016
|
|
|
2015
|
|
|
Rate
(1)
|
|
Deposits and other borrowings
|
|
$
|
421,078
|
|
|
$
|
273,494
|
|
|
$
|
164,220
|
|
|
$
|
62,305
|
|
|
$
|
8,087
|
|
|
$
|
|
|
|
$
|
929,184
|
|
|
$
|
908,896
|
|
|
|
1.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted average contractual rate as of March 31, 2016.
|
Medallion Bank is subject to various regulatory capital requirements administered by the FDIC and State of Utah Department of Financial Institutions. Failure to meet minimum capital requirements can
initiate certain mandatory and possibly additional disciplinary actions by regulators that, if undertaken, could have a direct material effect on Medallion Banks and the Companys financial statements. Under capital adequacy guidelines
and the regulatory framework for prompt corrective action, Medallion Bank must meet specific capital guidelines that involve quantitative measures of Medallion Banks assets, liabilities, and certain off-balance sheet items as calculated under
regulatory accounting practices. Medallion Banks capital amounts and classification are also subject to qualitative judgments by Medallion 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
Medallion Bank to maintain minimum amounts and ratios as defined in the regulations (set forth in the table below). Additionally, as conditions of granting Medallion Banks application for federal deposit insurance, the FDIC ordered that the
leverage capital ratio (Tier 1 capital to average assets) be not less than 15%, and that an adequate allowance for loan losses be maintained. As a result, to facilitate maintenance of the capital ratio requirement and to provide the necessary
capital for continued growth, the Company periodically makes capital contributions to Medallion Bank, including $8,000,000 in 2015. Separately, Medallion Bank declared dividends to the Company of $3,000,000 and $5,000,000 in each of the 2016 and
2015 first quarters.
On February 27, 2009 and December 22, 2009, Medallion Bank issued, and the US Treasury
purchased under the TARP Capital Purchase Program (the CPP) Medallion Banks 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 US 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 Small Business Lending Fund Program (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 previously paid a dividend rate of 1% on the Series E, which increased to 9% in the 2016 first quarter.
Page 15 of 75
The following table represents Medallion Banks actual capital amounts and related
ratios as of March 31, 2016 and December 31, 2015, compared to required regulatory minimum capital ratios and the ratios required to be considered well capitalized. As of March 31, 2016, Medallion Bank meets all capital adequacy requirements to
which it is subject, and is well-capitalized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
Minimum
|
|
|
Well-capitalized
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
Common equity tier 1 capital
|
|
|
|
|
|
|
|
|
|
$
|
137,886
|
|
|
$
|
135,635
|
|
Tier 1 capital
|
|
|
|
|
|
|
|
|
|
|
164,189
|
|
|
|
161,938
|
|
Total capital
|
|
|
|
|
|
|
|
|
|
|
178,159
|
|
|
|
175,533
|
|
Average assets
|
|
|
|
|
|
|
|
|
|
|
1,084,713
|
|
|
|
1,071,980
|
|
Risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
1,103,503
|
|
|
|
1,077,103
|
|
Leverage ratio
(1)
|
|
|
4
|
%
|
|
|
5
|
%
|
|
|
15.1
|
%
|
|
|
15.1
|
%
|
Common equity tier 1 capital ratio
(3)
|
|
|
5
|
|
|
|
7
|
|
|
|
12.5
|
|
|
|
12.6
|
|
Tier 1 capital ratio
(2)
|
|
|
6
|
|
|
|
8
|
|
|
|
14.9
|
|
|
|
15.0
|
|
Total capital ratio
(2)
|
|
|
8
|
|
|
|
10
|
|
|
|
16.1
|
|
|
|
16.3
|
|
(1)
|
Calculated by dividing Tier 1 capital by average assets.
|
(2)
|
Calculated by dividing Tier 1 or total capital by risk-weighted assets.
|
(3)
|
Calculated by subtracting preferred stock or non-controlling interests from Tier 1 capital and dividing by risk-weighted assets.
|
(4) FUNDS BORROWED
The
outstanding balances of funds borrowed were as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due for the Fiscal Year Ending March 31,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Interest
|
|
(Dollars in thousands)
|
|
2017
|
|
|
2018
|
|
|
2019
|
|
|
2020
|
|
|
2021
|
|
|
Thereafter
|
|
|
2016
|
|
|
2015
|
|
|
Rate
(1)
|
|
Revolving lines of credit
|
|
$
|
130,634
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
130,634
|
|
|
$
|
129,518
|
|
|
|
2.12
|
%
|
Notes payable to banks
|
|
|
114,858
|
|
|
|
94
|
|
|
|
37
|
|
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
115,029
|
|
|
|
122,429
|
|
|
|
2.66
|
%
|
SBA debentures
|
|
|
|
|
|
|
|
|
|
|
3,000
|
|
|
|
|
|
|
|
15,985
|
|
|
|
58,500
|
|
|
|
77,485
|
|
|
|
74,485
|
|
|
|
3.69
|
%
|
Margin loan
|
|
|
62,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,533
|
|
|
|
45,108
|
|
|
|
1.43
|
%
|
Preferred securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,000
|
|
|
|
33,000
|
|
|
|
33,000
|
|
|
|
2.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
308,025
|
|
|
$
|
94
|
|
|
$
|
3,037
|
|
|
$
|
|
|
|
$
|
16,025
|
|
|
$
|
91,500
|
|
|
$
|
418,681
|
|
|
$
|
404,540
|
|
|
|
2.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted average contractual rate as of March 31, 2016.
|
(A) REVOLVING LINES OF CREDIT
In December 2008, Trust III entered
into a revolving line of credit 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 line), which was extended in December 2013 until December 2016, and the
line reduced to $150,000,000, and which was further reduced in stages in December 2015 to $135,000,000, and to $125,000,000 on July 1, 2016; and of which $130,634,000 was outstanding at March 31, 2016. Borrowings under Trust IIIs revolving
line of credit are collateralized by Trust IIIs assets. MFC is the servicer of the loans owned by Trust III. The DZ line includes a borrowing base covenant and rapid amortization in certain circumstances. In addition, if certain financial
tests are not met, MFC can be replaced as the servicer. The interest rate with the 2013 extension is a pooled short-term commercial paper rate which approximates LIBOR (30 day LIBOR was 0.44% at March 31, 2016) plus 1.65%.
(B) SBA DEBENTURES
In 2016, the SBA approved $10,000,000 of commitments for MCI for a four and a half year term and a 1% fee, which was paid. In 2015, the SBA approved $15,500,000 of commitments for MCI for a four year
term and a 1% fee, which was paid. In 2014, the SBA approved $10,000,000 of commitments for MCI for a four year term and a 1% fee, which was paid. In 2013, the SBA approved $23,000,000 and $5,000,000 of commitments for FSVC and MCI, respectively,
for a four year term and a 1% fee, which was paid, and of which FSVC issued $23,000,000 of debentures, $18,150,000 of which was used to repay maturing debentures, and MCI issued $2,500,000 of debentures. As of March 31, 2016, $165,485,000 of
commitments had been fully utilized, there were $10,000,000 commitments available, and $77,485,000 was outstanding.
The notes
are collateralized by substantially all of FSVCs and MCIs assets and are subject to the terms and conditions of agreements with the SBA which, among other things, restrict stock redemptions, disposition of assets, new indebtedness,
dividends or distributions, and changes in management, ownership, investment policy, or operations. The debentures have been issued in various tranches for terms of ten years with interest payable semiannually.
Page 16 of 75
(C) NOTES PAYABLE TO BANKS/OTHER LENDERS
The Company and its subsidiaries have entered into (i) note agreements and (ii) participation agreements with a variety of local and
regional banking institutions over the years, as well as other non-bank lenders. The notes are typically secured by various assets of the underlying borrower. The Company believes the participation agreements represent legal true sales of the loans
to the lender, but for accounting purposes these participations are treated as financings, and are included in funds borrowed as shown on the Companys consolidated balance sheets.
The table below summarizes the key attributes of the Companys various borrowing arrangements with these lenders as of
March 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Borrower
|
|
# of Lenders
/ Notes
|
|
Note
Dates
|
|
Maturity
Dates
|
|
Type
|
|
Note
Amounts
|
|
|
Balance
Outstanding at
March 31,
2016
|
|
|
Monthly Payment
|
|
Average Interest
Rate at March 31,
2016
|
|
|
Interest
Rate
Index
(1)
|
|
The Company
|
|
6/6
|
|
4/11
-
8/14
|
|
4/16
-
7/16
|
|
Revolving line of credit secured by pledged loans
|
|
$
|
96,445
|
(2)
|
|
$
|
87,410
|
|
|
Interest only
|
|
|
2.53%
(includes
unused
fee)
|
|
|
|
Various
|
(2)
|
Medallion Chicago
|
|
3/28
|
|
11/11
-
12/11
|
|
12/16
|
|
Term loans secured by owned Chicago medallions
(3)
|
|
|
25,708
|
|
|
|
23,314
|
|
|
$121 principal & interest
|
|
|
3.12
|
%
|
|
|
N/A
|
|
The Company
|
|
1/1
|
|
1/11
|
|
11/16
|
|
Participated loans treated as financings
|
|
|
3,915
|
|
|
|
3,909
|
|
|
Proportionate to the payments received on the participated loans
|
|
|
2.50
|
%
|
|
|
N/A
|
|
FSVC
|
|
3/5
|
|
2/12
-
4/14
|
|
03/18
-
11/18
|
|
Participated loans treated as financings
|
|
|
256
|
|
|
|
249
|
|
|
Proportionate to the payments received on the participated loans
|
|
|
6.53
|
%
|
|
|
N/A
|
|
MFC
|
|
2/3
|
|
2/13
-
12/15
|
|
2/16
-
12/20
|
|
Participated loans treated as financings
|
|
|
155
|
|
|
|
147
|
|
|
Proportionate to the payments received on the participated loans
|
|
|
9.05
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
126,479
|
|
|
$
|
115,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
At March 31, 2016, 30 day LIBOR was 0.44%, 360 day LIBOR was 1.21%, and the prime rate was 3.50%.
|
(2)
|
$46,445 of these lines can also be used by MFC ($2,570 which is available) of which $18,945 of such usage would be guaranteed by the Company. Interest rates on these
lines range from LIBOR plus 2% to LIBOR + 2.125%, and all contain prime rate options from prime minus 0.25% to prime, and one note has a floor, and two notes have an unused fee.
|
(3)
|
$14,379 guaranteed by the Company.
|
(D) 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 bore
a fixed rate of interest of 7.68% to September 2012, and thereafter a variable rate of interest of 90 day LIBOR (0.63% at March 31, 2016) 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 March 31, 2016, $33,000,000 was outstanding on
the preferred securities.
(E) MARGIN LOAN
In June 2015, the Company entered into a margin loan agreement with Morgan Stanley. The margin loan is secured by the
pledge of short-term, high-quality investment securities held by the Company, and is initially available at 90% of the current fair
market value of the securities. The margin loan bears interest at 30-day LIBOR (0.44% at March 31, 2016) plus 1.00%. As of March 31, 2016,
$62,533,000 was outstanding under the margin loan.
(F) COVENANT COMPLIANCE
In the normal course of business, the Company and its subsidiaries enter into agreements, or are subject to regulatory requirements, that
result in loan restrictions. Certain of the Companys debt agreements contain restrictions that require the Company to maintain certain financial ratios, including debt to equity and minimum net worth. In addition, the Companys
wholly-owned subsidiary Medallion Bank is subject to various regulatory requirements (see Note 3).
(5) 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, provides 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 Companys 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 Companys Board of Directors approved the 2015 Employee Restricted Stock Plan (2015 Restricted Stock Plan) on
February 13, 2015 and approved by the Companys shareholders on June 5, 2015. The 2015 Restricted Stock Plan became effective upon the
Page 17 of 75
Companys 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 Companys employees. A
grant of restricted stock is a grant of shares of the Companys 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 Companys common stock were issuable under the 2015 Restricted Stock 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 Companys Board of Directors approved
the 2009 Employee Restricted Stock Plan (the Employee Restricted Stock Plan) on April 16, 2009. The Employee Restricted Stock Plan became effective upon the Companys receipt of exemptive relief from the SEC and approval of the Employee
Restricted Stock Option Plan by the Companys shareholders on June 11, 2010. No additional shares are available for issuance under the Employee Restricted Stock Plan. The terms of the Employee Restricted Stock Plan provide for grants of
restricted stock awards to the Companys employees. A grant of restricted stock is a grant of shares of the Companys 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 800,000 shares of the Companys common stock were issuable under the Employee Restricted Stock Plan, and as of March 31, 2016, none of the Companys common stock
remained available for future grants. Awards under the 2009 Employee Plan are subject to certain limitations as set forth in the Employee Restricted Stock Plan. The Employee Restricted Stock Plan will terminate when all shares of common stock
authorized for delivery under the Employee 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 Employee Restricted Stock Plan, whichever first
occurs.
The Companys Board of Directors approved the 2015 Non-Employee Director Stock Option Plan (2015 Director Plan)
on March 12, 2015, which was approved by the Companys 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
Companys common stock are issuable under the 2015 Director 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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.
The Companys Employee Restricted Stock Plan, 1996 Stock Option Plan, and 1996 Director Plan have terminated and no additional
shares are available for future issuance. At March 31, 2016, 435,154 options on the Companys common stock were outstanding under the 1996 and 2006 plans, of which 383,821 options were exercisable, and there were 139,023 unvested shares of the
Companys common stock outstanding under the Employee Restricted Stock Plan.
The fair value of each restricted stock
grant is determined on the date of grant by the closing market price of the Companys 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. There were
no options granted during the three months ended March 31, 2016 and 2015. The following assumption categories are used to determine the value of any option grants.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
|
2015
|
|
Risk free interest rate
|
|
|
NA
|
|
|
|
NA
|
|
Expected dividend yield
|
|
|
NA
|
|
|
|
NA
|
|
Expected life of option in years
(1)
|
|
|
NA
|
|
|
|
NA
|
|
Expected volatility
(2)
|
|
|
NA
|
|
|
|
NA
|
|
(1)
|
Expected life is calculated using the simplified method.
|
(2)
|
We determine our expected volatility based on our historical volatility.
|
Page 18 of 75
The following table presents the activity for the stock option programs for the periods
ended March 31, 2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Options
|
|
|
Exercise
Price Per
Share
|
|
|
Weighted
Average
Exercise Price
|
|
Outstanding at December 31, 2014
|
|
|
461,821
|
|
|
$
|
7.49-13.84
|
|
|
$
|
10.38
|
|
Granted
|
|
|
27,000
|
|
|
|
9.38
|
|
|
|
9.38
|
|
Cancelled
|
|
|
(12,118
|
)
|
|
|
9.22-13.06
|
|
|
|
11.07
|
|
Exercised
(1)
|
|
|
(30,449
|
)
|
|
|
9.22
|
|
|
|
9.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2015
|
|
|
446,254
|
|
|
|
7.49-13.84
|
|
|
|
10.38
|
|
Granted
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancelled
|
|
|
(9,000
|
)
|
|
|
13.84
|
|
|
|
13.84
|
|
Exercised
(1)
|
|
|
(2,100
|
)
|
|
|
9.22
|
|
|
$
|
9.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at March 31, 2016
(2)
|
|
|
435,154
|
|
|
$
|
7.49-13.84
|
|
|
$
|
10.31
|
|
Options exercisable at March 31, 2016
(2)
|
|
|
383,821
|
|
|
$
|
7.49-13.84
|
|
|
$
|
10.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The aggregate intrinsic value, which represents the difference between the price of the Companys common stock at the exercise date and the related exercise price
of the underlying options, was $0 and $33,000 for the 2016 and 2015 first quarters.
|
(2)
|
The aggregate intrinsic value, which represents the difference between the price of the Companys common stock at March 31, 2016 and the related exercise price of
the underlying options, was $21,000 for outstanding options and $21,000 for exercisable options as of March 31, 2016. The remaining contractual life was 2.77 years for outstanding options and 1.98 years for exercisable options at March 31, 2016.
|
The following table presents the activity for the restricted stock programs for the periods ended March 31,
2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
|
|
Grant Price
Per Share
|
|
|
Weighted
Average
Grant Price
|
|
Outstanding at December 31, 2014
|
|
|
209,365
|
|
|
$
|
10.08-15.61
|
|
|
$
|
12.47
|
|
Granted
|
|
|
162,576
|
|
|
|
9.08-10.38
|
|
|
|
9.89
|
|
Cancelled
|
|
|
(53,761
|
)
|
|
|
9.92-15.61
|
|
|
|
11.16
|
|
Vested
(1)
|
|
|
(109,140
|
)
|
|
|
10.08-15.61
|
|
|
|
12.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2015
|
|
|
209,040
|
|
|
|
9.08-15.61
|
|
|
|
10.96
|
|
Granted
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancelled
|
|
|
(214
|
)
|
|
|
10.08-15.61
|
|
|
|
11.32
|
|
Vested
(1)
|
|
|
(69,803
|
)
|
|
|
9.92-13.46
|
|
|
|
11.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at March 31, 2016
(2)
|
|
|
139,023
|
|
|
$
|
9.08-15.61
|
|
|
$
|
10.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The aggregate fair value of the restricted stock vested was $688,000 and $624,000 for the 2016 and 2015 first quarters.
|
(2)
|
The aggregate fair value of the restricted stock was $1,283,000 as of March 31, 2016. The remaining vesting period was 1.64 years at March 31, 2016.
|
The following table presents the activity for the unvested options outstanding under the plans for the 2016
first quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Options
|
|
|
Exercise Price
Per Share
|
|
|
Weighted Average Exercise
Price
|
|
Outstanding at December 31, 2015
|
|
|
54,333
|
|
|
$
|
9.38-13.84
|
|
|
$
|
11.14
|
|
Granted
|
|
|
|
|
|
|
|
|
|
|
|
|
Cancelled
|
|
|
(3,000
|
)
|
|
|
13.84
|
|
|
|
13.84
|
|
Vested
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at March 31, 2016
|
|
|
51,333
|
|
|
$
|
9.38-13.84
|
|
|
$
|
10.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The intrinsic value of the options vested was $0 for the 2016 first quarter.
Page 19 of 75
(6) SEGMENT REPORTING
The Company has one business segment, its lending and investing operations. This segment originates and services medallion, secured commercial, and consumer loans, and invests in both marketable and
nonmarketable securities.
(7) NONINTEREST INCOME AND OTHER OPERATING EXPENSES
The major components of noninterest income were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Prepayment fees
|
|
$
|
21
|
|
|
$
|
5
|
|
Late charges
|
|
|
7
|
|
|
|
22
|
|
Servicing fees
|
|
|
3
|
|
|
|
13
|
|
Other
|
|
|
9
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income
|
|
$
|
40
|
|
|
$
|
56
|
|
|
|
|
|
|
|
|
|
|
Prepayment fees increased in 2016 compared to 2015, reflecting a larger than normal fee received from a
mezzanine loan prepayment. Late charges decreased in 2016 primarily due to a larger than normal late charge from a commercial loan in 2015. The decrease in servicing fees reflected the slowdown in the servicing and loan origination activities
performed for Medallion Bank.
The major components of other operating expenses were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Travel, meals, and entertainment
|
|
$
|
226
|
|
|
$
|
229
|
|
Miscellaneous taxes
|
|
|
99
|
|
|
|
78
|
|
Office expense
|
|
|
49
|
|
|
|
60
|
|
Insurance
|
|
|
48
|
|
|
|
50
|
|
Computer expense
|
|
|
44
|
|
|
|
102
|
|
Directors fees
|
|
|
39
|
|
|
|
108
|
|
Bank charges
|
|
|
33
|
|
|
|
38
|
|
Depreciation and amortization
|
|
|
29
|
|
|
|
37
|
|
Other expenses
|
|
|
142
|
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
Total other operating expenses
|
|
$
|
709
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous taxes, which include franchise, excise, road, and other governmental assessments, were
higher in 2016. Computer expense was lower in 2016, reflecting system upgrades of desktop hardware and network redundancy equipment in the data centers in 2015. Directors fees were lower in 2016 due to accrual adjustments. Other operating
expenses were higher in 2016, reflecting the prior years expense reduction efforts and reversals of accrued liabilities.
Page 20 of 75
(8) SELECTED FINANCIAL RATIOS AND OTHER DATA
The following table provides selected financial ratios and other data:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands, except per share data)
|
|
2016
|
|
|
2015
|
|
Net share data
|
|
|
|
|
|
|
|
|
Net asset value at the beginning of the period
|
|
$
|
11.42
|
|
|
$
|
11.16
|
|
Net investment income
|
|
|
0.08
|
|
|
|
0.20
|
|
Income tax (provision) benefit
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on investments
|
|
|
(0.01
|
)
|
|
|
0.32
|
|
Net change in unrealized appreciation (depreciation) on investments
|
|
|
0.21
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations
|
|
|
0.28
|
|
|
|
0.29
|
|
Issuance of common stock
|
|
|
0.01
|
|
|
|
(0.02
|
)
|
Repurchase of common stock
|
|
|
|
|
|
|
(0.01
|
)
|
Net investment income
|
|
|
(0.01
|
)
|
|
|
(0.15
|
)
|
Return of capital
|
|
|
(0.24
|
)
|
|
|
(0.09
|
)
|
Net realized gains on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
|
(0.25
|
)
|
|
|
(0.24
|
)
|
Other
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net asset value
|
|
|
0.04
|
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Net asset value at the end of the period
(1)
|
|
$
|
11.46
|
|
|
$
|
11.16
|
|
|
|
|
|
|
|
|
|
|
Per share market value at beginning of period
|
|
$
|
7.04
|
|
|
$
|
10.01
|
|
Per share market value at end of period
|
|
|
9.23
|
|
|
|
9.26
|
|
Total return
(2)
|
|
|
125
|
%
|
|
|
(21
|
%)
|
|
|
|
|
|
|
|
|
|
Ratios/supplemental data
|
|
|
|
|
|
|
|
|
Total shareholders equity (net assets)
|
|
$
|
279,073
|
|
|
$
|
276,017
|
|
Average net assets
|
|
|
279,356
|
|
|
|
277,447
|
|
Total expense ratio
(3) (4)
|
|
|
10.06
|
%
|
|
|
10.21
|
%
|
Operating expenses to average net assets
(4)
|
|
|
6.42
|
|
|
|
6.97
|
|
Net investment income after income taxes to average net assets
(4)
|
|
|
2.94
|
|
|
|
7.17
|
|
(1)
|
Includes $0 and $0 of undistributed net investment income per share and $0 and $0 of undistributed net realized gains per share as of March 31, 2016 and 2015.
|
(2)
|
Total return is calculated by dividing the change in market value of a share of common stock during the period, assuming the reinvestment of distributions on the
payment date, by the per share market value at the beginning of the period.
|
(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 Companys servicing obligations, and as a result, servicing fee income of $1,408 and $1,421 and operating expenses of $1,597 and
$1,696, which formerly were the Companys, were now MSCs for the quarters ended March 31, 2016 and 2015. Excluding the impact of the MSC amounts, the total expense ratio, operating expense ratio, and net investment income ratio would have
been 12% and 13%, 8.71% and 9.45%, and 2.65% and 6.77% for the first quarters of 2016 and 2015.
|
Page 21 of 75
(9) RECENTLY ISSUED ACCOUNTING STANDARDS
In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09. Compensation
Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 enhances the reporting model for stock compensation and provides users of financial statements with more decision-useful information. ASU
2016-09 simplifies guidance on several aspects of the accounting for shared-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash
flow. The update, as amended, is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. The Company does not believe this update will have a material impact on its financial condition.
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 current GAAP. ASU 2016-02 applies to all entities and is effective for fiscal years beginning after December 15, 2018 for public entities, with early adoption permitted. The
Company is assessing the impact the update will have on its financial condition and results of operations.
In January 2016,
the FASB issued ASU 2016-01, Financial Instruments Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The main objective of this Update is to enhance the reporting model for
financial instruments and provide users of financial statements with more decision-useful information. ASU 2016-01 requires equity investments to be measured at fair value, simplifies the impairment assessment of equity investment without readily
determinable fair value, eliminates the requirements to disclose the fair value of financial instruments measured at amortized cost, and requires public business entities to use the exit price notion when measuring the fair value of financial
instruments. The update, as amended, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company does not believe this update will have a material impact on its financial condition.
(10) RELATED PARTY TRANSACTIONS
Certain directors, officers, and shareholders of the Company are also directors and officers of its wholly-owned subsidiaries, MFC, MCI, FSVC, and Medallion Bank, as well as of certain portfolio
investment companies. Officer salaries are set by the Board of Directors of the Company.
A member of the Board of Directors
of the Company from 1996 through 2014 was also of counsel in the Companys primary law firm. Amounts paid to the law firm were $58,000 and $20,000 for the 2016 and 2015 first quarters.
Jeffrey Rudnick, the son of one of the Companys directors, is an officer of LAX Group, LLC (LAX), one of the Companys
portfolio companies. Mr. Rudnick receives a salary from LAX of $163,000 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 LAXs profits as a year end bonus. In addition, Mr. Rudnick provides consulting services to the Company directly for a monthly retainer of $4,200.
At March 31, 2016, December 31, 2015, and March 31, 2015, the Company and MSC serviced $379,404,000, $382,919,000, and $401,094,000 of
loans for Medallion Bank. 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 has assigned its servicing rights to the Medallion Bank portfolio to MSC, a
wholly-owned unconsolidated portfolio investment. 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, in the 2016 and 2015 first quarters,
$1,408,000 and $1,421,000 of servicing fee income was earned by MSC.
The following table summarizes the net revenues received
from Medallion Bank.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(Dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Reimbursement of operating expenses
|
|
$
|
160
|
|
|
$
|
105
|
|
Loan origination fees
|
|
|
44
|
|
|
|
37
|
|
Servicing fees
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Total other income
|
|
$
|
204
|
|
|
$
|
146
|
|
|
|
|
|
|
|
|
|
|
The Company had a loan to Medallion Fine Art, Inc. in the amount of $4,890,000 and $8,348,000 as of March
31, 2016 and December 31, 2015. The loan bears interest at a rate of 12%, all of which is paid in kind. During 2016 and 2015, the Company advanced $0 and $1,225,000, and was repaid $3,771,000 and $550,000 with respect to this loan.
Additionally, the Company recognized $254,000 and $203,000 of interest income for the three months ended March 31, 2016 and 2015 with respect to this loan.
MCI had a loan to an affiliate of Medallion Motorsports LLC in the amount of $5,158,000 and $5,033,000 as of March 31, 2016 and December 31, 2015. The loan bears interest at a rate of 10%, all of
which is paid in kind. MCI recognized $126,000 and $0 of interest income for the three months ended March 31, 2016 and 2015 with respect to this loan.
Page 22 of 75
(11) 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) Investments
The Companys investments are recorded at the estimated fair value of such investments.
(b) Floating rate borrowings
Due to the short-term nature of these instruments, the carrying amount approximates fair value.
(c) 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 March 31, 2016 and December 31, 2015, the estimated fair value of these off-balance-sheet instruments was not material.
(d) Fixed rate borrowings
- The fair value of the debentures payable to the SBA is estimated based on current market interest
rates for similar debt.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
(Dollars in thousands)
|
|
Carrying Amount
|
|
|
Fair Value
|
|
|
Carrying Amount
|
|
|
Fair Value
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
631,002
|
|
|
$
|
631,002
|
|
|
$
|
606,959
|
|
|
$
|
606,959
|
|
Cash
(1)
|
|
|
30,685
|
|
|
|
30,685
|
|
|
|
30,912
|
|
|
|
30,912
|
|
Accrued interest receivable
(2)
|
|
|
945
|
|
|
|
945
|
|
|
|
1,003
|
|
|
|
1,003
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds borrowed
(2)
|
|
|
418,681
|
|
|
|
418,681
|
|
|
|
404,540
|
|
|
|
404,540
|
|
Accrued interest payable
(2)
|
|
|
971
|
|
|
|
971
|
|
|
|
1,302
|
|
|
|
1,302
|
|
(1)
|
Categorized as level 1 within the fair value hierarchy.
|
(2)
|
Categorized as level 3 within the fair value hierarchy.
|
(12) 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. The Company accounts for substantially all of its financial instruments at fair value or considers fair value in its measurement, in accordance with the accounting guidance for investment companies. See Note 2 sections Fair Value
of Assets and Liabilities and Investment Valuation for a description of our valuation methodology which is unchanged during 2016.
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).
Page 23 of 75
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 managements 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.
Medallion loans and the asset-based portion of the commercial loan portfolio 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, the initial valuation assessment is 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 becomes nonperforming, the collateral value has been 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 values of medallion loans have declined, and greater weight has been placed on the operating cash flows of the borrowers and the values of their personal guarantees in determining whether or not a valuation adjustment is
necessary. Collateral values for asset based loans are confirmed through daily borrowing base analysis of borrower availability, confirmations obtained from a borrowers underlying customers, and field examinations by us or third parties
engaged by us. These portfolios have historically been at very low loan to collateral value ratios, and as a result, are generally not highly sensitive to changes in collateral values as only a very significant downward movement would have an impact
on the Companys valuation analysis, potentially resulting in a significantly lower fair market value measurement.
The
mezzanine and other secured commercial portions of the commercial loan portfolio are a combination of cash flow and collateral based lending. The initial valuation assessment is that as long as the loan is current and performing, its fair value
approximates the par value of the loan. If a loan becomes nonperforming, an evaluation is performed which considers and analyzes a variety of factors which may include the financial condition and operating performance of the borrower, the adequacy
of the collateral, individual credit risks, historical loss experience, the relationships between 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 has its own unique attributes, the factors analyzed, and their relative importance to each valuation analysis, differ between each asset, and may differ from period to period for a particular asset.
The valuation is highly sensitive to changes in the assumptions used. To the extent that any assumption in the analysis changes significantly from one period to another, that change could result in a significantly lower or higher fair market value
measurement. For example, if a borrowers 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 investment in Medallion Bank is subject to a thorough valuation analysis as
described previously, and on an annual basis, the Company also receives 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 determines whether any
factors give rise to a valuation different than recorded book value, including various regulatory restrictions that were established at Medallion Banks 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 moratoriums expiration. Because of these restrictions and other
Page 24 of 75
factors, the Companys 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 Banks 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 2015 the Company became aware
of external interest in Medallion Bank and its portfolios assets at values in excess of their carrying amount. The Company incorporated these new factors in the Medallion Banks fair value analysis and the Board of Directors determined
that Medallion Bank had a fair value in excess of book value. The Company also engaged a valuation specialist to assist the Board of Directors in their determination of Medallion Banks fair value, and this appreciation of $15,500,000 was
thereby recorded in 2015. See Note 3 for additional information about Medallion Bank.
Investments in controlled subsidiaries,
other than Medallion Bank, equity investments, and investments other than securities are valued similarly, while also considering available 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 companys 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 uses the actual results of operations of the controlled subsidiaries as the best estimate of changes in fair value, in most cases, and records 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 results in changes to the value
of the position if there is clear evidence that its value has either decreased or increased in light of the specific facts considered for each investment. The valuation is highly sensitive to changes in the assumptions used. To the extent that
any assumption in the analysis changes significantly from one period to another, that change could result in a significantly lower or higher fair market value measurement. For example, if an investees 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 Companys fair value hierarchy for those assets and liabilities measured at fair value on a
recurring basis as of March 31, 2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
2016 Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medallion loans
|
|
$
|
|
|
|
$
|
|
|
|
$
|
303,352
|
|
|
$
|
303,352
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
82,719
|
|
|
|
82,719
|
|
Investment in Medallion Bank and other controlled subsidiaries
|
|
|
|
|
|
|
|
|
|
|
168,227
|
|
|
|
168,227
|
|
Equity investments
|
|
|
73
|
|
|
|
|
|
|
|
7,090
|
|
|
|
7,163
|
|
Investment securities
|
|
|
69,541
|
|
|
|
|
|
|
|
|
|
|
|
69,541
|
|
Investment other than securities
|
|
|
|
|
|
|
|
|
|
|
36,297
|
|
|
|
36,297
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
354
|
|
|
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medallion loans
|
|
$
|
|
|
|
$
|
|
|
|
$
|
308,408
|
|
|
$
|
308,408
|
|
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
81,895
|
|
|
|
81,895
|
|
Investment in Medallion Bank and other controlled subsidiaries
|
|
|
|
|
|
|
|
|
|
|
159,913
|
|
|
|
159,913
|
|
Equity investments
|
|
|
62
|
|
|
|
|
|
|
|
6,797
|
|
|
|
6,859
|
|
Investment securities
|
|
|
49,884
|
|
|
|
|
|
|
|
|
|
|
|
49,884
|
|
Investments other than securities
|
|
|
|
|
|
|
|
|
|
|
37,882
|
|
|
|
37,882
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
354
|
|
|
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Companys level 3 assets and liabilities for the quarters ended March 31, 2016 and 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Medallion
Loans
|
|
|
Commercial
Loans
|
|
|
Investment
in
Medallion
Bank & Other
Controlled
Subs
|
|
|
Equity
Investments
|
|
|
Investments
Other Than
Securities
|
|
|
Other
Assets
(3)
|
|
December 31, 2015
|
|
$
|
308,408
|
|
|
$
|
81,895
|
|
|
$
|
159,913
|
|
|
$
|
6,797
|
|
|
$
|
37,882
|
|
|
$
|
354
|
|
Gains (losses) included in earnings
|
|
|
(2,419
|
)
|
|
|
196
|
|
|
|
11,468
|
|
|
|
(7
|
)
|
|
|
(1,585
|
)
|
|
|
|
|
Purchases, investments, and issuances
|
|
|
2,030
|
|
|
|
7,059
|
|
|
|
1
|
|
|
|
300
|
|
|
|
|
|
|
|
|
|
Sales, maturities, settlements, and distributions
|
|
|
(4,667
|
)
|
|
|
(6,431
|
)
|
|
|
(3,155
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfers in (out)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
$
|
303,352
|
|
|
$
|
82,719
|
|
|
$
|
168,227
|
|
|
$
|
7,090
|
|
|
$
|
36,297
|
|
|
$
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts related to held assets
(1)
|
|
($
|
2,359
|
)
|
|
($
|
173
|
)
|
|
$
|
11,468
|
|
|
$
|
(7
|
)
|
|
($
|
1,585
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2016.
|
Page 25 of 75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Medallion
Loans
|
|
|
Commercial
Loans
|
|
|
Investment in Medallion
Bank & Other Controlled
Subs
|
|
|
Equity
Investments
|
|
|
Other
Assets
|
|
December 31, 2014
|
|
$
|
311,894
|
|
|
$
|
71,149
|
|
|
$
|
136,848
|
|
|
$
|
7,532
|
|
|
$
|
392
|
|
Gains (losses) included in earnings
|
|
|
(159
|
)
|
|
|
516
|
|
|
|
11,129
|
|
|
|
(11
|
)
|
|
|
|
|
Purchases, investments, and issuances
|
|
|
8,820
|
|
|
|
8,128
|
|
|
|
883
|
|
|
|
250
|
|
|
|
|
|
Sales, maturities, settlements, and distributions
|
|
|
(9,250
|
)
|
|
|
(6,234
|
)
|
|
|
(20,002
|
)
|
|
|
(368
|
)
|
|
|
|
|
Transfers in (out)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2015
|
|
$
|
311,305
|
|
|
$
|
73,559
|
|
|
$
|
128,858
|
|
|
$
|
7,403
|
|
|
$
|
392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts related to held assets
(1)
|
|
($
|
159
|
)
|
|
($
|
86
|
)
|
|
$
|
7,899
|
|
|
($
|
245
|
)
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Total realized and unrealized gains (losses) included in income for the period which relate to assets held as of March 31, 2015.
|
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.
Page 26 of 75
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair
value measurements of assets and liabilities as of March 31, 2016 and December 31, 2015 were as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Fair Value
at
3/31/16
|
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Range
(Weighted
Average)
|
|
Medallion Loans
|
|
$
|
303,352
|
|
|
Precedent market transactions
|
|
Adequacy of collateral (loan to value)
|
|
|
1% - 176% (86%)
|
|
Commercial Loans Asset-Based
|
|
|
2,892
|
|
|
Borrower collateral analysis
|
|
Adequacy of collateral (loan to value)
|
|
|
4% - 79% (52%)
|
|
Commercial Loans Mezzanine and Other
|
|
|
79,827
|
|
|
Borrower financial analysis
|
|
Financial condition and operating performance of the borrower
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Portfolio yields
|
|
|
3% - 19.00% (13.18%)
|
|
Investment in Medallion Bank
|
|
|
154,564
|
|
|
Third party valuation using a weighting of the three methods utilized
|
|
Comparable Transactions Analysis
Control Premium Analysis
Discount rate in Cash Flow Analysis
|
|
|
(11.1% premium to book
value)
(32%)
(20%)
|
|
|
|
|
|
|
|
Investee book value and equity pickup
|
|
Financial condition and operating performance of the investee
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Premium on portfolio assets
|
|
|
(1.53% premium recorded)
|
|
Investment in Other Controlled Subsidiaries
|
|
|
5,884
|
|
|
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
|
|
|
|
|
4,282
|
|
|
Investee financial analysis
|
|
Financial condition and operating performance
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Implied value of individual franchises
|
|
|
$30,000
|
|
|
|
|
|
|
|
|
|
Equity value
|
|
|
$3,000 - $5,000
|
|
|
|
|
2,928
|
|
|
Investee book value adjusted for market appreciation
|
|
Third party offer to purchase investment
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial condition and operating performance of the investee
|
|
|
N/A
|
|
|
|
|
569
|
|
|
Investee book value and equity pickup
|
|
Financial condition and
operating performance of the investee
|
|
|
N/A
|
|
Equity Investments
|
|
|
1,957
|
|
|
Investee book value
|
|
Valuation indicated by investee filings
|
|
|
N/A
|
|
|
|
|
502
|
|
|
Market comparables
|
|
Discount for lack of marketability
|
|
|
10% (10%)
|
|
|
|
|
4,631
|
|
|
Investee financial analysis
|
|
Financial condition and operating performance of the borrower
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Collateral support
|
|
|
N/A
|
|
Investments Other Than Securities
|
|
|
36,297
|
|
|
Precedent market transaction
|
|
Transfer prices of Chicago medallions
|
|
|
N/A
|
|
|
|
|
|
|
|
Cash flow analysis
|
|
Discount rate in cash flow analysis
|
|
|
6%
|
|
Other Assets
|
|
|
354
|
|
|
Borrower collateral analysis
|
|
Adequacy of collateral (loan to value)
|
|
|
0%
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Fair Value
at
12/31/15
|
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Range
(Weighted
Average)
|
|
Medallion Loans
|
|
$
|
308,408
|
|
|
Precedent market transactions
|
|
Adequacy of collateral (loan to value)
|
|
|
1% - 155% (79%)
|
|
Commercial Loans Asset-Based
|
|
|
3,678
|
|
|
Borrower collateral analysis
|
|
Adequacy of collateral (loan to value)
|
|
|
0% - 84% (54%)
|
|
Commercial Loans Mezzanine and Other
|
|
|
78,217
|
|
|
Borrower financial analysis
|
|
Financial condition and operating performance of the borrower
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Portfolio yields
|
|
|
3% - 19.00% (13.13%)
|
|
Investment in Medallion Bank
|
|
|
152,166
|
|
|
Third party valuation using a weighting of the three methods utilized
|
|
Comparable Transactions Analysis
Control Premium Analysis
Discount rate in Cash Flow Analysis
|
|
|
(11.4% premium to book
value)
(32%)
(20%)
|
|
|
|
|
|
|
|
Investee book value and equity pickup
|
|
Financial condition and operating performance of the investee
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Premium on portfolio assets
|
|
|
(1.56% premium recorded)
|
|
Page 27 of 75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Fair Value
at
12/31/15
|
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Range
(Weighted
Average)
|
|
Investment in Other Controlled Subsidiaries
|
|
|
4,234
|
|
|
Investee book value and equity pickup, adjusted for asset appreciation
|
|
Financial condition and operating performance of the investee
|
|
|
N/A
|
|
|
|
|
986
|
|
|
Investee book value and equity pickup
|
|
Third party valuation/offer to purchase assets
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Collateral support
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Financial condition and operating performance of the investee
|
|
|
N/A
|
|
|
|
|
2,527
|
|
|
Investee financial analysis
|
|
Financial condition and operating performance
|
|
|
N/A
|
|
Equity Investments
|
|
|
1,957
|
|
|
Investee book value
|
|
Valuation indicated by investee filings
|
|
|
N/A
|
|
|
|
|
509
|
|
|
Market comparables
|
|
Discount for lack of marketability
|
|
|
10% (10%)
|
|
|
|
|
4,331
|
|
|
Investee financial analysis
|
|
Financial condition and operating performance of the borrower
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Collateral support
|
|
|
N/A
|
|
Investments Other Than Securities
|
|
|
37,882
|
|
|
Precedent market transaction
|
|
Transfer prices of Chicago medallions
|
|
|
$150 - $238 ($194)
|
|
|
|
|
|
|
|
Cash flow analysis
|
|
Discount rate in cash flow analysis
|
|
|
6%
|
|
Other Assets
|
|
|
354
|
|
|
Borrower collateral analysis
|
|
Adequacy of collateral (loan to value)
|
|
|
0%
|
|
(13) INVESTMENTS OTHER THAN SECURITIES
The following table presents the Companys investments other than securities as of March 31, 2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Type
(Dollars in thousands)
|
|
Number of
Investments
|
|
|
Investment
Cost
|
|
|
Value as of
3/31/16
|
|
|
Value as of
12/31/15
|
|
City of Chicago Taxicab Medallions
|
|
|
154
|
(1)
|
|
$
|
8,411
|
|
|
$
|
35,266
|
(2)
|
|
$
|
36,806
|
(2)
|
City of Chicago Taxicab Medallions (handicap accessible)
|
|
|
5
|
(1)
|
|
|
278
|
|
|
|
1,031
|
(3)
|
|
|
1,076
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Other Than Securities
|
|
|
|
|
|
$
|
8,689
|
|
|
$
|
36,297
|
|
|
$
|
37,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $32,840, $0, and
$32,840 as of March 31, 2016 and $34,240, $0, and $34,240 as of December 31, 2015. The aggregate cost for Federal income tax purposes was $2,426 at March 31, 2016 and $2,566 at December 31, 2015.
|
(3)
|
Gross unrealized
appreciation, gross unrealized depreciation, and net unrealized appreciation for Federal income tax purposes was $949, $0, and $949 as of March 31, 2016 and $989, $0, and $989 as of December 31, 2015. The aggregate cost for Federal income tax
purposes was $79 at March 31, 2016 and $84 at December 31, 2015.
|
(14) SUBSEQUENT EVENTS
We have evaluated subsequent events that have occurred through the date of financial statement issuance.
In May 2016, a $17,500,000 revolving line of credit with a maturity date of May 1, 2016 was extended through May 18, 2016.
On April 28, 2016, the Companys board of directors declared a $0.25 per share common stock dividend, payable on May 18, 2016 to
shareholders of record on May 26, 2015.
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 expects to use 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 revolving credit facilities in the ordinary course of business and expanding its operations.
In April 2016, a $10,000,000 revolving line of credit with a maturity date of April 30, 2016 was refinanced into an $8,000,000 demand note. The note bears interest at prime and is due April 30, 2017.
Page 28 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2016
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
Medallion Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
387
|
|
|
|
75
|
%
|
|
|
3.77
|
%
|
|
$
|
1,668
|
|
|
$
|
211,492
|
|
|
$
|
211,466
|
|
|
$
|
210,399
|
|
|
|
Real Cab Corp ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
2,545
|
|
|
$
|
2,545
|
|
|
$
|
2,545
|
|
|
|
Real Cab Corp
|
|
|
Term Loan
|
|
|
|
08/19/14
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.31
|
%
|
|
|
|
|
|
$
|
764
|
|
|
$
|
764
|
|
|
$
|
764
|
|
|
|
Real Cab Corp
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
|
Sean Cab Corp ##
|
|
|
Term Loan
|
|
|
|
12/09/11
|
|
|
|
11/23/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
4.63
|
%
|
|
|
|
|
|
$
|
3,349
|
|
|
$
|
3,349
|
|
|
$
|
3,348
|
|
|
|
Slo Cab Corp ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
1,527
|
|
|
$
|
1,527
|
|
|
$
|
1,527
|
|
|
|
Slo Cab Corp ##
|
|
|
Term Loan
|
|
|
|
08/19/14
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.31
|
%
|
|
|
|
|
|
$
|
458
|
|
|
$
|
458
|
|
|
$
|
458
|
|
|
|
Slo Cab Corp ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
210
|
|
|
$
|
210
|
|
|
$
|
210
|
|
|
|
Whispers Taxi Inc ##
|
|
|
Term Loan
|
|
|
|
05/28/13
|
|
|
|
05/28/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.35
|
%
|
|
|
|
|
|
$
|
2,030
|
|
|
$
|
2,030
|
|
|
$
|
2,029
|
|
|
|
Esg Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
03/12/14
|
|
|
|
03/12/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,747
|
|
|
$
|
1,747
|
|
|
$
|
1,750
|
|
|
|
Kos Taxi LLC ## &
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,748
|
|
|
$
|
1,748
|
|
|
$
|
1,749
|
|
|
|
Ikaria Taxi LLC ## &
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,748
|
|
|
$
|
1,748
|
|
|
$
|
1,749
|
|
|
|
Pontios Taxi LLC ## &
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,748
|
|
|
$
|
1,748
|
|
|
$
|
1,749
|
|
|
|
Sag Taxi LLC ## &
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,748
|
|
|
$
|
1,748
|
|
|
$
|
1,749
|
|
|
|
Hamilton Transit LLC ## &
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,500
|
|
|
$
|
1,500
|
|
|
$
|
1,503
|
|
|
|
Daytona Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,501
|
|
|
$
|
1,501
|
|
|
$
|
1,502
|
|
|
|
Silke Hacking Corp ## &
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,500
|
|
|
$
|
1,500
|
|
|
$
|
1,501
|
|
|
|
Kaderee M & G Corp ## &
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,500
|
|
|
$
|
1,500
|
|
|
$
|
1,501
|
|
|
|
Christian Cab Corp
|
|
|
Term Loan
|
|
|
|
11/27/12
|
|
|
|
11/27/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
$
|
1,489
|
|
|
$
|
1,489
|
|
|
$
|
1,494
|
|
|
|
Yosi Transit Inc ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
1,018
|
|
|
$
|
1,018
|
|
|
$
|
1,018
|
|
|
|
Yosi Transit Inc ##
|
|
|
Term Loan
|
|
|
|
08/19/14
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.31
|
%
|
|
|
|
|
|
$
|
305
|
|
|
$
|
305
|
|
|
$
|
305
|
|
|
|
Yosi Transit Inc ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
140
|
|
|
$
|
140
|
|
|
$
|
140
|
|
|
|
Bunty & Jyoti Inc ##
|
|
|
Term Loan
|
|
|
|
03/13/13
|
|
|
|
03/13/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
$
|
1,460
|
|
|
$
|
1,460
|
|
|
$
|
1,459
|
|
|
|
Junaid Trans Corp ##
|
|
|
Term Loan
|
|
|
|
04/30/13
|
|
|
|
04/30/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
$
|
1,435
|
|
|
$
|
1,435
|
|
|
$
|
1,435
|
|
|
|
Ocean Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
12/20/13
|
|
|
|
12/20/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,413
|
|
|
$
|
1,413
|
|
|
$
|
1,414
|
|
|
|
Jacal Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
12/20/13
|
|
|
|
12/20/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,413
|
|
|
$
|
1,413
|
|
|
$
|
1,413
|
|
|
|
Avi Taxi Corporation ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
|
Anniversary Taxi Corp ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
|
Apple Cab Corp ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
|
Hj Taxi Corp ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
|
Kby Taxi Inc ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
|
$
|
1,394
|
|
Various New York && ##
|
|
2.75% to 8.96%
|
|
|
Term Loan
|
|
|
|
03/23/01
to
03/18/16
|
|
|
|
02/26/16
to
09/10/23
|
|
|
|
357
|
|
|
|
60
|
%
|
|
|
3.84
|
%
|
|
$
|
1,668
|
|
|
$
|
169,876
|
|
|
$
|
169,850
|
|
|
$
|
168,767
|
|
Chicago
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111
|
|
|
|
14
|
%
|
|
|
4.84
|
%
|
|
|
|
|
|
$
|
39,112
|
|
|
$
|
39,099
|
|
|
$
|
38,919
|
|
|
|
Sweetgrass Peach &Chadwick Cap ##
|
|
|
Term Loan
|
|
|
|
08/28/12
|
|
|
|
02/24/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
5.00
|
%
|
|
|
|
|
|
$
|
1,503
|
|
|
$
|
1,503
|
|
|
$
|
1,502
|
|
Various Chicago && ##
|
|
3.25% to 12.00%
|
|
|
Term Loan
|
|
|
|
01/22/10
to
12/29/15
|
|
|
|
03/12/16
to
12/29/20
|
|
|
|
110
|
|
|
|
13
|
%
|
|
|
4.83
|
%
|
|
|
|
|
|
$
|
37,609
|
|
|
$
|
37,596
|
|
|
$
|
37,417
|
|
Newark && ##
|
|
4.50% to 7.00%
|
|
|
Term Loan
|
|
|
|
04/09/10
to
02/18/16
|
|
|
|
03/15/16
to
05/14/25
|
|
|
|
115
|
|
|
|
9
|
%
|
|
|
5.25
|
%
|
|
$
|
108
|
|
|
$
|
24,323
|
|
|
$
|
24,320
|
|
|
$
|
24,341
|
|
Boston && ##
|
|
4.00% to 6.15%
|
|
|
Term Loan
|
|
|
|
06/12/07
to
09/29/15
|
|
|
|
12/07/15
to
11/06/25
|
|
|
|
56
|
|
|
|
9
|
%
|
|
|
4.65
|
%
|
|
|
|
|
|
$
|
26,369
|
|
|
$
|
26,291
|
|
|
$
|
24,636
|
|
Cambridge && ##
|
|
3.75% to 5.50%
|
|
|
Term Loan
|
|
|
|
05/06/11
to
12/15/15
|
|
|
|
03/22/16
to
01/26/20
|
|
|
|
14
|
|
|
|
1
|
%
|
|
|
4.64
|
%
|
|
|
|
|
|
$
|
6,609
|
|
|
$
|
6,587
|
|
|
$
|
4,108
|
|
Various Other && ##
|
|
4.75% to 11.50%
|
|
|
Term Loan
|
|
|
|
04/28/08
to
07/30/15
|
|
|
|
07/01/15
to
09/01/23
|
|
|
|
11
|
|
|
|
0
|
%
|
|
|
7.28
|
%
|
|
|
|
|
|
$
|
1,026
|
|
|
$
|
1,022
|
|
|
$
|
949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total medallion loans ($237,498 pledged as collateral under borrowing
arrangements)
|
|
|
|
|
|
|
|
|
|
|
|
694
|
|
|
|
109
|
%
|
|
|
4.12
|
%
|
|
$
|
1,776
|
|
|
$
|
308,931
|
|
|
$
|
308,785
|
|
|
$
|
303,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
|
|
|
|
|
|
Secured mezzanine
(21% Minnesota, 10% Oklahoma, 8% Pennsylvania, 7% Ohio, 7% North Carolina, 5% Kansas, 5%
North Dakota, 5% Massachusetts, 4% Rhode Island, 4% Colorado, 4% Wisconsin, 4% Illinois, 3% Delaware, 3% New York, 3% Michigan, 3% Texas and 4% all other states)
(2)
|
|
Manufacturing (46% of the total)
|
|
MicroGroup, Inc. (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
06/29/15
|
|
|
|
06/29/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
3,244
|
|
|
$
|
3,244
|
|
|
$
|
3,244
|
|
|
|
(capitalized interest of $44 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AA Plush Holdings, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
08/15/14
|
|
|
|
08/15/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
3,101
|
|
|
$
|
3,101
|
|
|
$
|
3,092
|
|
|
|
(capitalized interest of $101 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGC Operating Company, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
09/30/14
|
|
|
|
09/30/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,960
|
|
|
$
|
2,960
|
|
|
$
|
2,969
|
|
|
|
(capitalized interest of $30 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 29 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2016
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
|
|
Pinnacle Products International, Inc. (interest rate includes PIK interest of 3.00%)
|
|
|
Term Loan
|
|
|
|
10/09/15
|
|
|
|
10/09/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,841
|
|
|
$
|
2,841
|
|
|
$
|
2,841
|
|
|
|
(capitalized interest of $41 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech Cast Holdings, LLC (interest rate includes PIK interest of 3.00%)
|
|
|
Term Loan
|
|
|
|
12/12/14
|
|
|
|
12/12/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,690
|
|
|
$
|
2,690
|
|
|
$
|
2,660
|
|
+
|
|
Production Services Associates LLC (d/b/a American Card Services) (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
02/17/15
|
|
|
|
02/17/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
16.00
|
%
|
|
|
|
|
|
$
|
2,660
|
|
|
$
|
2,660
|
|
|
$
|
2,639
|
|
|
|
(capitalized interest of $60 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BB Opco, LLC d/b/a BreathableBaby, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
08/01/14
|
|
|
|
08/01/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
2,586
|
|
|
$
|
2,586
|
|
|
$
|
2,589
|
|
|
|
(capitalized interest of $86 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WRWP, LLC (interest rate includes PIK interest of 3.00%)
|
|
|
Term Loan
|
|
|
|
12/30/14
|
|
|
|
12/30/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,329
|
|
|
$
|
2,329
|
|
|
$
|
2,338
|
|
|
|
(capitalized interest of $87 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dynamic Systems, Inc. (interest rate includes PIK interest of 3.50%)
|
|
|
Term Loan
|
|
|
|
12/23/10
|
|
|
|
12/23/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.50
|
%
|
|
|
|
|
|
$
|
2,085
|
|
|
$
|
2,085
|
|
|
$
|
2,085
|
|
|
|
(capitalized interest of $260 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Cylinder, Inc. d/b/a All Safe (interest rate includes PIK interest of 7.00%)
|
|
|
Term Loan
|
|
|
|
07/03/13
|
|
|
|
01/03/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
19.00
|
%
|
|
|
|
|
|
$
|
1,605
|
|
|
$
|
1,605
|
|
|
$
|
1,604
|
|
|
|
(capitalized interest of $105 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
GAF Manufacturing, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
03/06/14
|
|
|
|
03/06/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
1,564
|
|
|
$
|
1,564
|
|
|
$
|
1,570
|
|
|
|
(capitalized interest of $64 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
Respiratory Technologies, Inc.
|
|
|
Term Loan
|
|
|
|
04/25/12
|
|
|
|
04/25/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
12.00
|
%
|
|
|
|
|
|
$
|
1,500
|
|
|
$
|
1,500
|
|
|
$
|
1,503
|
|
+
|
|
Various Other && 12.00% to 17.00%
|
|
|
Term Loan
|
|
|
|
03/10/99
to
03/28/12
|
|
|
|
03/31/10
to
03/31/18
|
|
|
|
4
|
|
|
|
1
|
%
|
|
|
14.29
|
%
|
|
|
|
|
|
$
|
3,909
|
|
|
$
|
3,909
|
|
|
$
|
3,907
|
|
Professional, Scientific, and Technical Services (16% of the total)
|
|
Weather Decision Technologies, Inc. {One-time on 1/1/18 to 15%} (interest rate includes PIK interest of 9.00%)
|
|
|
Term Loan
|
|
|
|
12/11/15
|
|
|
|
12/11/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
18.00
|
%
|
|
|
|
|
|
$
|
3,599
|
|
|
$
|
3,599
|
|
|
$
|
3,587
|
|
|
|
(capitalized interest of $99 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
|
%
|
|
$
|
3,500
|
|
|
$
|
3,506
|
|
|
$
|
3,506
|
|
|
$
|
3,505
|
|
|
|
(capitalized interest of $6 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JR Thompson Company LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
05/21/15
|
|
|
|
05/21/22
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
2,285
|
|
|
$
|
2,285
|
|
|
$
|
2,285
|
|
|
|
(capitalized interest of $24 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
DPIS Engineering, LLC
|
|
|
Term Loan
|
|
|
|
12/01/14
|
|
|
|
06/30/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
12.00
|
%
|
|
|
|
|
|
$
|
2,000
|
|
|
$
|
2,000
|
|
|
$
|
1,999
|
|
Information (10% of the total)
|
|
US Internet Corp.
|
|
|
Term Loan
|
|
|
|
06/12/13
|
|
|
|
09/18/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.50
|
%
|
|
|
|
|
|
$
|
3,000
|
|
|
$
|
3,000
|
|
|
$
|
3,012
|
|
|
|
US Internet Corp.
|
|
|
Term Loan
|
|
|
|
03/18/15
|
|
|
|
09/18/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.50
|
%
|
|
|
|
|
|
$
|
1,750
|
|
|
$
|
1,750
|
|
|
$
|
1,741
|
|
|
|
US Internet Corp.
|
|
|
Term Loan
|
|
|
|
02/05/16
|
|
|
|
02/11/23
|
|
|
|
1
|
|
|
|
*
|
|
|
|
14.50
|
%
|
|
$
|
1,900
|
|
|
$
|
150
|
|
|
$
|
150
|
|
|
$
|
139
|
|
|
|
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
|
|
|
$
|
2,490
|
|
Wholesale Trade (8% of the total)
|
|
Fit & Fresh, Inc (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
03/02/15
|
|
|
|
03/02/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
3,066
|
|
|
$
|
3,066
|
|
|
$
|
3,072
|
|
|
|
(capitalized interest of $66 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
Classic Brands, LLC
|
|
|
Term Loan
|
|
|
|
01/08/16
|
|
|
|
04/30/23
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
12.00
|
%
|
|
$
|
2,880
|
|
|
$
|
2,879
|
|
|
$
|
2,879
|
|
|
$
|
2,879
|
|
Arts, Entertainment, and Recreation (7% of the total)
|
|
RPAC Racing, LLC (interest rate includes PIK interest of 10.00%)
|
|
|
Term Loan
|
|
|
|
11/19/10
|
|
|
|
01/15/17
|
|
|
|
1
|
|
|
|
2
|
%
|
|
|
10.00
|
%
|
|
|
|
|
|
$
|
5,158
|
|
|
$
|
5,158
|
|
|
$
|
5,158
|
|
|
|
(capitalized interest of $2,119 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation and Warehousing (5% 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
|
%
|
|
|
|
|
|
$
|
3,541
|
|
|
$
|
3,541
|
|
|
$
|
3,538
|
|
|
|
(capitalized interest of $41 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and Support Services (5% of the total)
|
|
Staff One, Inc.
|
|
|
Term Loan
|
|
|
|
06/30/08
|
|
|
|
03/31/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.00
|
%
|
|
|
|
|
|
$
|
2,907
|
|
|
$
|
2,907
|
|
|
$
|
2,907
|
|
|
|
Staff One, Inc.
|
|
|
Term Loan
|
|
|
|
09/15/11
|
|
|
|
03/31/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.00
|
%
|
|
|
|
|
|
$
|
365
|
|
|
$
|
365
|
|
|
$
|
365
|
|
Construction (2% of the total)
|
|
Highland Crossing-M, LLC
|
|
|
Term Loan
|
|
|
|
01/07/15
|
|
|
|
02/01/25
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
11.50
|
%
|
|
|
|
|
|
$
|
1,450
|
|
|
$
|
1,450
|
|
|
$
|
1,449
|
|
Accommodation and Food Services (1% of the total)
|
|
Various Other && 9.25% to 10.00%
|
|
|
Term Loan
|
|
|
|
06/30/00
to
11/05/10
|
|
|
|
09/30/16
to
11/05/20
|
|
|
|
3
|
|
|
|
*
|
|
|
|
9.80
|
%
|
|
|
|
|
|
$
|
1,531
|
|
|
$
|
1,531
|
|
|
$
|
513
|
|
Retail Trade (0% of the total)
|
|
Various Other && 10.00%
|
|
|
Term Loan
|
|
|
|
06/30/00
|
|
|
|
09/30/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
10.00
|
%
|
|
|
|
|
|
$
|
185
|
|
|
$
|
185
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total secured
mezzanine
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
26
|
%
|
|
|
13.52
|
%
|
|
$
|
8,280
|
|
|
$
|
72,946
|
|
|
$
|
72,946
|
|
|
$
|
71,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 30 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2016
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
Asset-based
(46% New Jersey, 34% New York, 8% Virginia, 7% Florida, 3% Rhode Island and 2% all other
states)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Trade (22% of the total)
|
|
Various Other 4.75% to 7.25% ##
|
|
Revolving line of credit
|
|
|
10/19/98
to
08/31/06
|
|
|
|
08/31/16
to
10/19/16
|
|
|
|
3
|
|
|
|
*
|
|
|
|
5.14
|
%
|
|
|
|
|
|
$
|
680
|
|
|
$
|
680
|
|
|
$
|
664
|
|
|
|
{Daily-Prime + 1.5% to 4%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trade (20% of the total)
|
|
Various Other 4.00% to 6.50% ##
|
|
Revolving line of credit
|
|
|
01/23/99
to
07/21/15
|
|
|
|
06/30/16
to
01/23/17
|
|
|
|
7
|
|
|
|
*
|
|
|
|
5.65
|
%
|
|
|
|
|
|
$
|
544
|
|
|
$
|
544
|
|
|
$
|
577
|
|
|
|
{Daily-Prime + .75% to 3.25%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction (13% of the total)
|
|
Various Other 5.75% ##
|
|
Revolving line of credit
|
|
|
07/20/99
|
|
|
|
07/20/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
5.75
|
%
|
|
|
|
|
|
$
|
379
|
|
|
$
|
379
|
|
|
$
|
373
|
|
|
|
{Daily-Prime + 2.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation and Warehousing (13% of the total)
|
|
Various Other 6.00% ##
|
|
Revolving line of credit
|
|
|
12/31/01
|
|
|
|
12/31/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
6.00
|
%
|
|
|
|
|
|
$
|
374
|
|
|
$
|
374
|
|
|
$
|
368
|
|
|
|
{Daily-Prime + 2.75%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing (9% of the total)
|
|
Various Other 5.75% to 7.25% ##
|
|
Revolving line of credit
|
|
|
07/07/04
to
11/10/15
|
|
|
|
06/22/16
to
01/27/17
|
|
|
|
6
|
|
|
|
*
|
|
|
|
6.23
|
%
|
|
|
|
|
|
$
|
275
|
|
|
$
|
275
|
|
|
$
|
257
|
|
|
|
{Daily-Prime + 2.5% to 4%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and Insurance (8% of the total)
|
|
Various Other 7.00%
|
|
Revolving line of credit
|
|
|
08/26/15
|
|
|
|
08/26/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
7.00
|
%
|
|
|
|
|
|
$
|
250
|
|
|
$
|
250
|
|
|
$
|
245
|
|
|
|
{Daily-Prime + 3.75%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care and Social Assistance (7% of the total)
|
|
Various Other 5.50% to 5.75% ##
|
|
Revolving line of credit
|
|
|
10/02/07
to
11/09/12
|
|
|
|
10/02/16
to
11/09/16
|
|
|
|
2
|
|
|
|
*
|
|
|
|
5.64
|
%
|
|
|
|
|
|
$
|
222
|
|
|
$
|
222
|
|
|
$
|
207
|
|
|
|
{Daily-Prime + 2.25% to 2.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional, Scientific, and Technical Services (5% of the total)
|
|
Various Other 6.75%
|
|
Revolving line of credit
|
|
|
12/22/14
|
|
|
|
12/22/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
6.75
|
%
|
|
|
|
|
|
$
|
128
|
|
|
$
|
128
|
|
|
$
|
131
|
|
|
|
{Daily-Prime + 3.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and Support Services (2% of the total)
|
|
Various Other 5.50%
|
|
Revolving line of credit
|
|
|
06/30/07
|
|
|
|
06/30/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
5.50
|
%
|
|
|
|
|
|
$
|
55
|
|
|
$
|
55
|
|
|
$
|
52
|
|
|
|
{Daily-Prime + 2.25%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate and Rental and Leasing (1% of the total)
|
|
Various Other 7.75%
|
|
Revolving line of credit
|
|
|
12/24/15
|
|
|
|
12/24/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
7.75
|
%
|
|
|
|
|
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
18
|
|
|
|
{Daily-Prime + 4.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total asset-based ($1,748 pledged as collateral under borrowing arrangements)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
1
|
%
|
|
|
5.81
|
%
|
|
|
|
|
|
$
|
2,924
|
|
|
$
|
2,924
|
|
|
$
|
2,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other secured commercial
(73% New York, 22% New Jersey, 4% Illinois and 1% all other
states)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Trade (87% of the total)
|
|
Medallion Fine Art Inc (interest rate includes PIK interest of 12%)
|
|
Term Loan
|
|
|
12/17/12
|
|
|
|
12/17/17
|
|
|
|
1
|
|
|
|
2
|
%
|
|
|
12.00
|
%
|
|
|
|
|
|
$
|
4,890
|
|
|
$
|
4,890
|
|
|
$
|
4,890
|
|
|
|
(capitalized interest of $2,326 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Various Other && 4.75% to 10.50%
|
|
Term Loan
|
|
|
10/28/08
to
12/23/15
|
|
|
|
03/15/17
to
02/13/21
|
|
|
|
9
|
|
|
|
1
|
%
|
|
|
8.52
|
%
|
|
|
|
|
|
$
|
2,622
|
|
|
$
|
2,607
|
|
|
$
|
2,181
|
|
Accommodation and Food Services (7% of the total)
|
|
Various Other && 6.75% to 9.00%
|
|
Term Loan
|
|
|
11/29/05
to
06/06/14
|
|
|
|
03/16/16
to
09/06/19
|
|
|
|
3
|
|
|
|
*
|
|
|
|
8.30
|
%
|
|
|
|
|
|
$
|
757
|
|
|
$
|
685
|
|
|
$
|
581
|
|
Transportation and Warehousing (4% of the total)
|
|
Various Other && 4.00% to 4.25%
|
|
Term Loan
|
|
|
09/19/14
to
03/17/15
|
|
|
|
09/10/18
to
02/05/20
|
|
|
|
2
|
|
|
|
*
|
|
|
|
4.08
|
%
|
|
|
|
|
|
$
|
293
|
|
|
$
|
293
|
|
|
$
|
294
|
|
Real Estate and Rental and Leasing (1% of the total)
|
|
Various Other && 5.00%
|
|
Term Loan
|
|
|
03/31/15
|
|
|
|
03/31/20
|
|
|
|
1
|
|
|
|
*
|
|
|
|
5.00
|
%
|
|
|
|
|
|
$
|
91
|
|
|
$
|
91
|
|
|
$
|
92
|
|
Health Care and Social Assistance (1% of the total)
|
|
Various Other 7.50%
|
|
Term Loan
|
|
|
05/14/13
|
|
|
|
05/14/18
|
|
|
|
1
|
|
|
|
*
|
|
|
|
7.50
|
%
|
|
|
|
|
|
$
|
72
|
|
|
$
|
72
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Commercial Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
3
|
%
|
|
|
10.28
|
%
|
|
|
|
|
|
$
|
8,725
|
|
|
$
|
8,638
|
|
|
$
|
8,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans ($1,748 pledged as collateral under borrowing arrangements)
(2)
|
|
|
|
|
|
|
|
76
|
|
|
|
30
|
%
|
|
|
12.92
|
%
|
|
$
|
8,280
|
|
|
$
|
84,595
|
|
|
$
|
84,508
|
|
|
$
|
82,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 31 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2016
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
Investment in Medallion Bank and other controlled subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Banking
|
|
Medallion Bank **
|
|
100% of common stock
|
|
05/16/02
|
|
None
|
|
|
1
|
|
|
|
55
|
%
|
|
|
11.51
|
%
|
|
|
|
|
|
|
|
|
|
$
|
139,064
|
|
|
$
|
154,564
|
|
NASCAR Race Team
|
|
Medallion MotorSports, LLC
|
|
75% of LLC units
|
|
11/24/10
|
|
None
|
|
|
1
|
|
|
|
2
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
2,833
|
|
|
$
|
4,282
|
|
Art Dealer
|
|
Medallion Fine Art, Inc.
|
|
100% of common stock
|
|
12/03/12
|
|
None
|
|
|
1
|
|
|
|
2
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
523
|
|
|
$
|
5,884
|
|
Loan Servicing
|
|
Medallion Servicing Corp.
|
|
100% of common stock
|
|
11/05/10
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
569
|
|
|
$
|
569
|
|
Professional Sports Team
|
|
LAX Group LLC
|
|
38.19% of membership
interests
|
|
05/23/12
|
|
None
|
|
|
1
|
|
|
|
1
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
178
|
|
|
$
|
2,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Medallion Bank and other controlled subsidiaries, net
|
|
|
|
|
|
|
5
|
|
|
|
60
|
%
|
|
|
11.18
|
%
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
143,167
|
|
|
$
|
168,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Finance
|
|
Convergent Capital, Ltd **
|
|
7% of limited partnership interest
|
|
07/20/07
|
|
None
|
|
|
1
|
|
|
|
1
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
326
|
|
|
$
|
1,957
|
|
Gift card service & marketing
|
|
+ Production Services Associates d/b/a American Card Services
|
|
5.65% of LLC units
|
|
02/17/15
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
250
|
|
|
$
|
1,179
|
|
Weather Forecasting Services
|
|
Weather Decision Technologies, Inc.
|
|
2.2% preferred stock
|
|
12/11/15
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
500
|
|
|
$
|
500
|
|
Employee Leasing Services
|
|
Staff One, Inc.
|
|
46.4% preferred stock
|
|
06/30/08
|
|
None
|
|
|
2
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
472
|
|
|
$
|
472
|
|
Stuffed Toy Manufacturer
|
|
AA Plush Holdings, LLC
|
|
1.6% LLC common units
|
|
08/15/14
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Investment Castings
|
|
Tech Cast Holdings LLC
|
|
4.14% LLC units
|
|
12/12/14
|
|
12/12/19
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Machine Shop
|
|
MicroGroup, Inc.
|
|
5.5% common stock
|
|
06/29/15
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Environmental Consulting Services
|
|
Northern Technologies, LLC
|
|
7.7% of LLC units
|
|
01/29/16
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
$
|
300
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Baby Sleep Products
|
|
BB Opco, LLC d/b/a BreathableBaby, LLC
|
|
3.6% LLC units
|
|
08/01/14
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
250
|
|
|
$
|
250
|
|
Wire Manufacturer
|
|
WRWP LLC
|
|
10.3% preferred LLC
units, 7.23% common LLC
units
|
|
12/30/14
|
|
12/30/19
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
224
|
|
|
$
|
224
|
|
Marketing Services
|
|
Third Century JRT Inc.
|
|
13% common stock
|
|
05/21/15
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
200
|
|
|
$
|
200
|
|
Manufacture Space Heaters, etc.
|
|
Pinnacle Products International, Inc.
|
|
0.5% common stock
|
|
10/09/15
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
135
|
|
|
$
|
135
|
|
IT Services
|
|
Centare Holdings, Inc.
|
|
7.23% of common stock,
3.88% of preferred stock
|
|
08/30/13
|
|
None
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
104
|
|
|
$
|
104
|
|
Various Other #
|
|
+ **
|
|
* Various
|
|
09/10/98
to
7/24/15
|
|
None
to
2/5/23
|
|
|
8
|
|
|
|
*
|
|
|
|
2.90
|
%
|
|
$
|
0
|
|
|
|
|
|
|
$
|
916
|
|
|
$
|
942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments, net
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
|
3
|
%
|
|
|
0.58
|
%
|
|
$
|
300
|
|
|
|
|
|
|
$
|
4,577
|
|
|
$
|
7,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
US Treasury Bill
|
|
|
|
03/31/16
|
|
03/30/17
|
|
|
1
|
|
|
|
7
|
%
|
|
|
0.66
|
%
|
|
$
|
19,884
|
|
|
$
|
20,000
|
|
|
$
|
19,884
|
|
|
$
|
19,869
|
|
|
|
US Treasury Bill
|
|
|
|
03/31/16
|
|
03/30/17
|
|
|
1
|
|
|
|
18
|
%
|
|
|
0.66
|
%
|
|
$
|
49,710
|
|
|
$
|
50,000
|
|
|
$
|
49,710
|
|
|
$
|
49,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities, net
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
25
|
%
|
|
|
0.66
|
%
|
|
$
|
69,594
|
|
|
$
|
70,000
|
|
|
$
|
69,594
|
|
|
$
|
69,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investments ($239,246 pledged as collateral under borrowing arrangements)
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
799
|
|
|
|
226
|
%
|
|
|
6.57
|
%
|
|
$
|
79,950
|
|
|
$
|
463,526
|
|
|
$
|
610,631
|
|
|
$
|
631,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $5,559 of interest income capitalized into the outstanding investment balances, in
accordance with the terms of the investment contract.
|
(3)
|
The ratio of restricted securities fair value to net assets is 226%.
|
(4)
|
Gross unrealized appreciation, gross unrealized depreciation and net appreciation for federal income tax purposes totaled $85,245, $6,117 and $79,128,
respectively. The tax cost of investments was $551,874.
|
(5)
|
For revolving lines of credit the amount shown is the cost at March 31, 2016.
|
Page 32 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
March 31, 2016
**
|
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 29% and up to 28% 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 March 31, 2016.
|
|
The Summary Schedule of Investments does not reflect the Companys complete portfolio holdings. It includes the Companys 50 largest holdings and each investment of any
issuer that exceeds 1% of the Companys 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 SECs website at
http://www.sec.gov. Filed as Exhibit 99.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, filed on May 10, 2016 (File No. 814-00188).
|
Page 33 of 75
Medallion Financial Corp
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES
As of and
for the year ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of issuer and title of issue
(Dollars in thousands)
|
|
Number of shares (all restricted unless
otherwise noted)
|
|
Equity in
net
profit
and (loss)
|
|
|
Amount of
dividends
or interest
(1)
|
|
|
Value as
of
3/31/16
|
|
Medallion Bank common stock
|
|
1,000,000 shares - 100% of common
stock
|
|
$
|
5,687
|
|
|
$
|
3,000
|
|
|
$
|
154,564
|
|
Medallion Fine Art, Inc. common stock
(2)
|
|
1,000 shares - 100% of common stock
|
|
|
1,650
|
|
|
|
0
|
|
|
|
5,884
|
|
LAX Group LLC membership interest
|
|
38.19% of membership interest
|
|
|
2,573
|
|
|
|
0
|
|
|
|
2,928
|
|
Medallion Motorsports, LLC membership interest
(3)
|
|
75% of membership interest
|
|
|
1,754
|
|
|
|
0
|
|
|
|
4,282
|
|
Medallion Servicing Corp. common stock
|
|
1,000 shares - 100% of common stock
|
|
|
(196
|
)
|
|
|
0
|
|
|
|
569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments in Medallion Bank and other controlled subsidiaries
|
|
|
11,468
|
|
|
$
|
3000
|
|
|
|
168,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Services Associates LLC
(4)
|
|
5.65% of membership interest
|
|
|
0
|
|
|
|
0
|
|
|
|
1,179
|
|
Appliance Recycling Centers of America Inc. common stock
|
|
8.86% of common stock
|
|
|
0
|
|
|
|
0
|
|
|
|
502
|
|
Northern Technologies LLC membership interest
(8)
|
|
7.7% of membership interest
|
|
|
0
|
|
|
|
0
|
|
|
|
300
|
|
Micro Group, Inc.
(5)
|
|
5.5% of common stock
|
|
|
0
|
|
|
|
0
|
|
|
|
300
|
|
WRWP, LLC membership interest
(6)
|
|
7.23% of membership interest
|
|
|
0
|
|
|
|
0
|
|
|
|
224
|
|
Third Century JRT, Inc.
(7)
|
|
13% of common stock
|
|
|
0
|
|
|
|
0
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity investments in affiliates
|
|
|
|
|
|
|
0
|
|
|
|
2,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Investments with an amount of $0 are considered non-income producing.
|
(2)
|
Additionally, the Company has a loan due from Medallion Fine Art, Inc. in the amount of $4,890 as of March 31, 2016, and on which $253 of interest income was earned
during the quarter ended March 31, 2016.
|
(3)
|
Additionally, a controlled subsidiary of the Company has a loan due from an affiliate of Medallion Motorsports, LLC in the amount of $5,158, and on which $126 of
interest income was earned during the quarter ended March 31, 2016.
|
(4)
|
Additionally, the Company has a loan due from Production Services Associates LLC in the amount of $2,660 as of March 31, 2016, on which $105 of interest income was
earned during the quarter ended March 31, 2016.
|
(5)
|
Additionally, the Company has a loan due from Micro Group, Inc. in the amount of $3,244 as of March 31, 2016, on which $108 of interest income was earned during the
quarter ended March 31, 2016.
|
(6)
|
Additionally, the Company has a loan due from WRWP, LLC in the amount of $2,329 as of March 31, 2016, on which $88 of interest income was earned during the quarter
ended March 31, 2016.
|
(7)
|
Additionally, the Company has a loan due from Third Century JRT, Inc., in the amount of $2,285 as of March 31, 2016, on which $79 of interest income was earned during
the quarter ended March 31, 2016.
|
(8)
|
Additionally, the Company has loan from Northern Technologies LLC in the amount of $3,506 as if March 31, 2016, on which $78 of interest income was earned during the
quarter ended March 31, 2016.
|
The table below
provides a recap of the changes in the investment in the respective issuers for the quarter ended March 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Issuer
|
|
Medallion
Bank
|
|
|
Medallion
Fine Art,
Inc.
|
|
|
Medallion
Motorsports,
LLC
|
|
|
Appliance
Recycling
Centers
of
America,
Inc.
|
|
|
Medallion
Servicing
Corp.
|
|
|
LAX
Group, LLC
|
|
|
Production
Services
Associates,
LLC
(3)
|
|
|
Micro
Group,
Inc.
(4)
|
|
|
WRWP,
LLC
|
|
|
Third
Century
JRT,
Inc.
(6)
|
|
|
Northern
Technologies,
LLC
(7)
|
|
Title of Issue
|
|
Common
Stock
|
|
|
Common
Stock
(1)
|
|
|
Membership
Interest
(2)
|
|
|
Common
Stock
|
|
|
Common
Stock
|
|
|
Membership
Interest
|
|
|
Membership
Interest
|
|
|
Common
Stock
|
|
|
Membership
Interest
(5)
|
|
|
Common
Stock
|
|
|
Membership
Interest
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value as of 12/31/15
|
|
$
|
152,166
|
|
|
$
|
4,234
|
|
|
$
|
2,527
|
|
|
$
|
509
|
|
|
$
|
631
|
|
|
$
|
355
|
|
|
$
|
1,179
|
|
|
$
|
300
|
|
|
$
|
224
|
|
|
$
|
200
|
|
|
$
|
|
|
Gross additions / investments
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
300
|
|
Gross reductions / distributions
|
|
|
(3,289
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net equity in profit and loss, and unrealized appreciation and (depreciation)
|
|
|
5,687
|
|
|
|
1,650
|
|
|
|
1,754
|
|
|
|
(7
|
)
|
|
|
(196
|
)
|
|
|
2,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value as of 3/31/16
|
|
|
154,564
|
|
|
|
5,884
|
|
|
|
4,282
|
|
|
|
502
|
|
|
|
569
|
|
|
|
2,928
|
|
|
|
1,179
|
|
|
|
300
|
|
|
|
224
|
|
|
|
200
|
|
|
|
300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Additionally, the Company has a loan due from Medallion Fine Art, Inc. in the amount of $4,890 as of March 31, 2016, $0 of which was advanced during 2016, and for which
$3,711 was repaid.
|
(2)
|
In addition to the equity ownership, a controlled subsidiary of the Company has a loan due from an affiliate of Medallion Motorsports, LLC in the amount of $5,158, $126
of which was advanced during 2016.
|
(3)
|
Additionally, the Company has a loan due from Production Services Associates LLC in the amount of $2,660 as of March 31, 2016, $14 of which was advanced during 2016.
|
(4)
|
Additionally, the Company has a loan due from Micro Group, Inc. in the amount of $3,244 as of March 31, 2016, $11 of which was advanced during 2016.
|
(5)
|
Additionally, the Company has a loan due from WRWP LLC in the amount of $2,329 as of March 31, 2016, $18 of which was advanced during 2016.
|
(6)
|
Additionally, the Company has a loan due from J. R. Thompson Company, LLC, an affiliate of Third Century JRT, INC in the amount of $2,285 as of March 31, 2016, $12 of
which was advanced during 2016.
|
(7)
|
Additionally, the Company has a loan due from Northern Technologies LLC in the amount of $3,506 as of March 31, 2016, all of which was advanced during 2016.
|
Page 34 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
December 31, 2015
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
2015
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
Medallion Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
391
|
|
|
|
77
|
%
|
|
|
3.72
|
%
|
|
$
|
25,051
|
|
|
$
|
213,374
|
|
|
$
|
213,356
|
|
|
$
|
213,278
|
|
|
|
Real Cab Corp ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
2,545
|
|
|
$
|
2,545
|
|
|
$
|
2,545
|
|
|
|
Real Cab Corp
|
|
|
Term Loan
|
|
|
|
08/19/14
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.31
|
%
|
|
|
|
|
|
$
|
903
|
|
|
$
|
903
|
|
|
$
|
903
|
|
|
|
Real Cab Corp
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
350
|
|
|
$
|
350
|
|
|
$
|
351
|
|
|
|
Sean Cab Corp ##
|
|
|
Term Loan
|
|
|
|
12/09/11
|
|
|
|
11/23/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
4.63
|
%
|
|
|
|
|
|
$
|
3,376
|
|
|
$
|
3,376
|
|
|
$
|
3,374
|
|
|
|
Slo Cab Corp ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
1,527
|
|
|
$
|
1,527
|
|
|
$
|
1,527
|
|
|
|
Slo Cab Corp ##
|
|
|
Term Loan
|
|
|
|
08/19/14
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.31
|
%
|
|
|
|
|
|
$
|
542
|
|
|
$
|
542
|
|
|
$
|
542
|
|
|
|
Slo Cab Corp ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
210
|
|
|
$
|
210
|
|
|
$
|
211
|
|
|
|
Whispers Taxi Inc ##
|
|
|
Term Loan
|
|
|
|
05/28/13
|
|
|
|
05/28/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.35
|
%
|
|
|
|
|
|
$
|
2,046
|
|
|
$
|
2,046
|
|
|
$
|
2,045
|
|
|
|
Esg Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
03/12/14
|
|
|
|
03/12/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,760
|
|
|
$
|
1,760
|
|
|
$
|
1,763
|
|
|
|
Sag Taxi LLC ##
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,754
|
|
|
$
|
1,754
|
|
|
$
|
1,755
|
|
|
|
Pontios Taxi LLC ##
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,753
|
|
|
$
|
1,753
|
|
|
$
|
1,754
|
|
|
|
Kos Taxi LLC ##
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,752
|
|
|
$
|
1,752
|
|
|
$
|
1,753
|
|
|
|
Ikaria Taxi LLC ##
|
|
|
Term Loan
|
|
|
|
03/28/14
|
|
|
|
03/28/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,752
|
|
|
$
|
1,752
|
|
|
$
|
1,753
|
|
|
|
Yosi Transit Inc ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
1,018
|
|
|
$
|
1,018
|
|
|
$
|
1,018
|
|
|
|
Yosi Transit Inc ##
|
|
|
Term Loan
|
|
|
|
08/19/14
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.31
|
%
|
|
|
|
|
|
$
|
361
|
|
|
$
|
361
|
|
|
$
|
361
|
|
|
|
Yosi Transit Inc ##
|
|
|
Term Loan
|
|
|
|
07/20/07
|
|
|
|
07/20/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
2.81
|
%
|
|
|
|
|
|
$
|
140
|
|
|
$
|
140
|
|
|
$
|
141
|
|
|
|
Hamilton Transit LLC ##
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,502
|
|
|
$
|
1,502
|
|
|
$
|
1,505
|
|
|
|
Silke Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,502
|
|
|
$
|
1,502
|
|
|
$
|
1,503
|
|
|
|
Daytona Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,502
|
|
|
$
|
1,502
|
|
|
$
|
1,503
|
|
|
|
Kaderee M & G Corp ##
|
|
|
Term Loan
|
|
|
|
03/26/14
|
|
|
|
03/26/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.38
|
%
|
|
|
|
|
|
$
|
1,502
|
|
|
$
|
1,502
|
|
|
$
|
1,503
|
|
|
|
Christian Cab Corp
|
|
|
Term Loan
|
|
|
|
11/27/12
|
|
|
|
11/27/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
$
|
1,490
|
|
|
$
|
1,490
|
|
|
$
|
1,490
|
|
|
|
Bunty & Jyoti Inc ##
|
|
|
Term Loan
|
|
|
|
03/13/13
|
|
|
|
03/13/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
$
|
1,467
|
|
|
$
|
1,467
|
|
|
$
|
1,466
|
|
|
|
Junaid Trans Corp ##
|
|
|
Term Loan
|
|
|
|
04/30/13
|
|
|
|
04/30/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.75
|
%
|
|
|
|
|
|
$
|
1,446
|
|
|
$
|
1,446
|
|
|
$
|
1,445
|
|
|
|
Ocean Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
12/20/13
|
|
|
|
12/20/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,424
|
|
|
$
|
1,424
|
|
|
$
|
1,425
|
|
|
|
Jacal Hacking Corp ##
|
|
|
Term Loan
|
|
|
|
12/20/13
|
|
|
|
12/20/16
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.50
|
%
|
|
|
|
|
|
$
|
1,424
|
|
|
$
|
1,424
|
|
|
$
|
1,424
|
|
|
|
Anniversary Taxi Corp ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
|
Avi Taxi Corporation ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
|
Kby Taxi Inc ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
|
Apple Cab Corp ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
|
Hj Taxi Corp ##
|
|
|
Term Loan
|
|
|
|
04/11/14
|
|
|
|
04/11/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.25
|
%
|
|
|
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
|
$
|
1,395
|
|
Various New York && ##
|
|
2.75% to 10.00%
|
|
|
Term Loan
|
|
|
|
03/23/01
to
12/28/15
|
|
|
|
01/03/16
to
09/10/23
|
|
|
|
361
|
|
|
|
62
|
%
|
|
|
3.78
|
%
|
|
$
|
25,051
|
|
|
$
|
171,351
|
|
|
$
|
171,333
|
|
|
$
|
171,243
|
|
Chicago
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
112
|
|
|
|
14
|
%
|
|
|
4.87
|
%
|
|
$
|
4,656
|
|
|
$
|
39,412
|
|
|
$
|
39,406
|
|
|
$
|
39,260
|
|
|
|
Sweetgrass Peach &Chadwick Cap ##
|
|
|
Term Loan
|
|
|
|
08/28/12
|
|
|
|
02/24/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
5.00
|
%
|
|
|
|
|
|
$
|
1,517
|
|
|
$
|
1,517
|
|
|
$
|
1,516
|
|
Various Chicago && ##
|
|
3.25% to 12.00%
|
|
|
Term Loan
|
|
|
|
01/22/10
to
12/22/15
|
|
|
|
10/19/15
to
12/22/20
|
|
|
|
111
|
|
|
|
14
|
%
|
|
|
4.87
|
%
|
|
$
|
4,656
|
|
|
$
|
37,895
|
|
|
$
|
37,889
|
|
|
$
|
37,744
|
|
Newark && ##
|
|
4.50% to 7.00%
|
|
|
Term Loan
|
|
|
|
04/09/10
to
12/10/15
|
|
|
|
02/14/16
to
05/14/25
|
|
|
|
115
|
|
|
|
9
|
%
|
|
|
5.26
|
%
|
|
$
|
1,749
|
|
|
$
|
24,585
|
|
|
$
|
24,585
|
|
|
$
|
24,654
|
|
Boston
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
|
9
|
%
|
|
|
4.63
|
%
|
|
$
|
3,268
|
|
|
$
|
26,471
|
|
|
$
|
26,436
|
|
|
$
|
25,883
|
|
|
|
Chiso Trans Inc &
|
|
|
Term Loan
|
|
|
|
11/26/13
|
|
|
|
11/07/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
4.25
|
%
|
|
|
|
|
|
$
|
819
|
|
|
$
|
819
|
|
|
$
|
820
|
|
|
|
Chiso Trans Inc &
|
|
|
Term Loan
|
|
|
|
04/20/12
|
|
|
|
04/20/18
|
|
|
|
1
|
|
|
|
*
|
|
|
|
5.50
|
%
|
|
|
|
|
|
$
|
581
|
|
|
$
|
581
|
|
|
$
|
581
|
|
Various Boston && ##
|
|
4.00% to 6.15%
|
|
|
Term Loan
|
|
|
|
06/12/07
to
09/29/15
|
|
|
|
12/07/15
to
11/06/25
|
|
|
|
54
|
|
|
|
9
|
%
|
|
|
4.62
|
%
|
|
$
|
3,268
|
|
|
$
|
25,071
|
|
|
$
|
25,036
|
|
|
$
|
24,482
|
|
Cambridge && ##
|
|
3.75% to 5.50%
|
|
|
Term Loan
|
|
|
|
05/06/11
to
12/15/15
|
|
|
|
03/22/16
to
01/26/20
|
|
|
|
14
|
|
|
|
2
|
%
|
|
|
4.64
|
%
|
|
$
|
2,414
|
|
|
$
|
6,624
|
|
|
$
|
6,607
|
|
|
$
|
4,287
|
|
Various Other && ##
|
|
4.75% to 11.50%
|
|
|
Term Loan
|
|
|
|
04/28/08
to
07/30/15
|
|
|
|
07/01/15
to
09/01/23
|
|
|
|
11
|
|
|
|
0
|
%
|
|
|
7.27
|
%
|
|
$
|
320
|
|
|
$
|
1,045
|
|
|
$
|
1,043
|
|
|
$
|
1,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total medallion loans ($238,103 pledged as collateral under borrowing arrangements)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
699
|
|
|
|
111
|
%
|
|
|
4.09
|
%
|
|
$
|
37,458
|
|
|
$
|
311,511
|
|
|
$
|
311,433
|
|
|
$
|
308,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured mezzanine
(23% Minnesota, 10% Oklahoma, 8% Pennsylvania, 8% Ohio, 8% North Carolina, 5% Kansas, 5%
New York, 5% Massachusetts, 5% Rhode Island, 4% Wisconsin, 4% Illinois, 4% Deleware, 4% Michigan, 3% Texas and 4% all other states)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing (51% of the total)
|
|
MicroGroup, Inc. (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
06/29/15
|
|
|
|
06/29/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
$
|
3,200
|
|
|
$
|
3,233
|
|
|
$
|
3,233
|
|
|
$
|
3,233
|
|
|
|
(capitalized interest of $33 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AA Plush Holdings, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
08/15/14
|
|
|
|
08/15/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
3,085
|
|
|
$
|
3,085
|
|
|
$
|
3,075
|
|
|
|
(capitalized interest of $85 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGC Operating Company, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
09/30/14
|
|
|
|
09/30/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,945
|
|
|
$
|
2,945
|
|
|
$
|
2,954
|
|
Page 35 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
2015
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
|
|
|
|
(capitalized interest of $15 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
|
%
|
|
$
|
2,800
|
|
|
$
|
2,820
|
|
|
$
|
2,820
|
|
|
$
|
2,820
|
|
|
|
|
|
(capitalized interest of $20 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech Cast Holdings, LLC (interest rate includes PIK interest of 3.00%)
|
|
|
Term Loan
|
|
|
|
12/12/14
|
|
|
|
12/12/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,690
|
|
|
$
|
2,690
|
|
|
$
|
2,661
|
|
|
|
+
|
|
Production Services Associates LLC (d/b/a American Card Services) (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
02/17/15
|
|
|
|
02/17/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
16.00
|
%
|
|
$
|
2,600
|
|
|
$
|
2,646
|
|
|
$
|
2,646
|
|
|
$
|
2,624
|
|
|
|
|
|
(capitalized interest of $46 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BB Opco, LLC d/b/a BreathableBaby, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
08/01/14
|
|
|
|
08/01/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
2,573
|
|
|
$
|
2,573
|
|
|
$
|
2,577
|
|
|
|
|
|
(capitalized interest of $73 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WRWP, LLC (interest rate includes PIK interest of 3.00%)
|
|
|
Term Loan
|
|
|
|
12/30/14
|
|
|
|
12/30/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.00
|
%
|
|
|
|
|
|
$
|
2,311
|
|
|
$
|
2,311
|
|
|
$
|
2,319
|
|
|
|
|
|
(capitalized interest of $70 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dynamic Systems, Inc. (interest rate includes PIK interest of 3.50%)
|
|
|
Term Loan
|
|
|
|
12/23/10
|
|
|
|
12/23/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
15.50
|
%
|
|
|
|
|
|
$
|
2,066
|
|
|
$
|
2,066
|
|
|
$
|
2,066
|
|
|
|
|
|
(capitalized interest of $241 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Cylinder, Inc. d/b/a All Safe (interest rate includes PIK interest of 7.00%)
|
|
|
Term Loan
|
|
|
|
07/03/13
|
|
|
|
01/03/18
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
19.00
|
%
|
|
|
|
|
|
$
|
1,577
|
|
|
$
|
1,577
|
|
|
$
|
1,575
|
|
|
|
|
|
(capitalized interest of $77 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
GAF Manufacturing, LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
03/06/14
|
|
|
|
03/06/19
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
|
|
|
|
$
|
1,556
|
|
|
$
|
1,556
|
|
|
$
|
1,562
|
|
|
|
|
|
(capitalized interest of $56 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
Respiratory Technologies, Inc.
|
|
|
Term Loan
|
|
|
|
04/25/12
|
|
|
|
04/25/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
12.00
|
%
|
|
|
|
|
|
$
|
1,500
|
|
|
$
|
1,500
|
|
|
$
|
1,503
|
|
|
|
+
|
|
Various Other && 12.00% to 17.00%
|
|
|
Term Loan
|
|
|
|
03/10/99
to
07/17/12
|
|
|
|
03/31/10
to
01/31/19
|
|
|
|
5
|
|
|
|
2
|
%
|
|
|
13.97
|
%
|
|
|
|
|
|
$
|
5,561
|
|
|
$
|
5,561
|
|
|
$
|
5,561
|
|
Professional, Scientific, and Technical Services (12% of the total)
|
|
|
|
Weather Decision Technologies, Inc. {One-time on 1/1/18 to 15%} (interest rate includes PIK interest of 9.00%)
|
|
|
Term Loan
|
|
|
|
12/11/15
|
|
|
|
12/11/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
18.00
|
%
|
|
$
|
3,500
|
|
|
$
|
3,517
|
|
|
$
|
3,517
|
|
|
$
|
3,505
|
|
|
|
|
|
(capitalized interest of $18 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JR Thompson Company LLC (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
05/21/15
|
|
|
|
05/21/22
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
$
|
2,800
|
|
|
$
|
2,273
|
|
|
$
|
2,273
|
|
|
$
|
2,273
|
|
|
|
|
|
(capitalized interest of $12 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+
|
|
DPIS Engineering, LLC
|
|
|
Term Loan
|
|
|
|
12/01/14
|
|
|
|
06/30/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
12.00
|
%
|
|
|
|
|
|
$
|
2,000
|
|
|
$
|
2,000
|
|
|
$
|
1,997
|
|
Information (11% of the total)
|
|
|
|
US Internet Corp.
|
|
|
Term Loan
|
|
|
|
06/12/13
|
|
|
|
09/18/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.50
|
%
|
|
|
|
|
|
$
|
3,000
|
|
|
$
|
3,000
|
|
|
$
|
3,013
|
|
|
|
|
|
US Internet Corp.
|
|
|
Term Loan
|
|
|
|
03/18/15
|
|
|
|
09/18/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.50
|
%
|
|
$
|
1,750
|
|
|
$
|
1,750
|
|
|
$
|
1,750
|
|
|
$
|
1,741
|
|
|
|
|
|
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
|
|
|
$
|
2,490
|
|
Arts, Entertainment, and Recreation (8% of the total)
|
|
|
|
RPAC Racing, LLC (interest rate includes PIK interest of 10.00%)
|
|
|
Term Loan
|
|
|
|
11/19/10
|
|
|
|
01/15/17
|
|
|
|
1
|
|
|
|
2
|
%
|
|
|
10.00
|
%
|
|
|
|
|
|
$
|
5,033
|
|
|
$
|
5,033
|
|
|
$
|
5,033
|
|
|
|
|
|
(capitalized interest of $1,994 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation and Warehousing (5% 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
|
%
|
|
$
|
3,500
|
|
|
$
|
3,514
|
|
|
$
|
3,514
|
|
|
$
|
3,511
|
|
|
|
|
|
(capitalized interest of $14 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and Support Services (5% of the total)
|
|
|
|
Staff One, Inc.
|
|
|
Term Loan
|
|
|
|
06/30/08
|
|
|
|
03/31/17
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
3.00
|
%
|
|
|
|
|
|
$
|
2,931
|
|
|
$
|
2,931
|
|
|
$
|
2,931
|
|
|
|
|
|
Staff One, Inc.
|
|
|
Term Loan
|
|
|
|
09/15/11
|
|
|
|
03/31/17
|
|
|
|
1
|
|
|
|
*
|
|
|
|
3.00
|
%
|
|
|
|
|
|
$
|
369
|
|
|
$
|
369
|
|
|
$
|
369
|
|
Wholesale Trade (5% of the total)
|
|
|
|
Fit & Fresh, Inc (interest rate includes PIK interest of 2.00%)
|
|
|
Term Loan
|
|
|
|
03/02/15
|
|
|
|
03/02/20
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
14.00
|
%
|
|
$
|
3,000
|
|
|
$
|
3,051
|
|
|
$
|
3,051
|
|
|
$
|
3,057
|
|
|
|
|
|
(capitalized interest of $51 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction (2% of the total)
|
|
|
|
Highland Crossing-M, LLC
|
|
|
Term Loan
|
|
|
|
01/07/15
|
|
|
|
02/01/25
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
11.50
|
%
|
|
$
|
2,200
|
|
|
$
|
1,450
|
|
|
$
|
1,450
|
|
|
$
|
1,450
|
|
Accommodation and Food Services (1% of the total)
|
|
|
|
Various Other && 9.25% to 10.00%
|
|
|
Term Loan
|
|
|
|
06/30/00
to
11/05/10
|
|
|
|
09/30/16
to
11/05/20
|
|
|
|
3
|
|
|
|
*
|
|
|
|
9.81
|
%
|
|
|
|
|
|
$
|
1,674
|
|
|
$
|
1,674
|
|
|
$
|
535
|
|
Retail Trade (0% of the total)
|
|
|
|
Various Other && 10.00%
|
|
|
Term Loan
|
|
|
|
06/30/00
|
|
|
|
09/30/16
|
|
|
|
1
|
|
|
|
*
|
|
|
|
10.00
|
%
|
|
|
|
|
|
$
|
224
|
|
|
$
|
224
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total secured
mezzanine
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
|
|
24
|
%
|
|
|
13.59
|
%
|
|
$
|
25,350
|
|
|
$
|
67,849
|
|
|
$
|
67,849
|
|
|
$
|
66,471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 36 of 75
Medallion Financial Corp.
Consolidated Summary Schedule of Investments
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
2015
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
Fair
Value
|
|
Asset-based
(43% New Jersey, 34% New York, 13% Florida, 7% Virginia and 3% all other
states)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Trade (24% of the total)
|
|
Various Other 4.00% to 6.50% ##
|
|
Revolving line of credit
|
|
01/23/99
to
07/21/15
|
|
01/14/16
to
11/30/16
|
|
|
9
|
|
|
|
*
|
|
|
|
5.46
|
%
|
|
$
|
425
|
|
|
$
|
880
|
|
|
$ 880
|
|
$
|
895
|
|
|
|
{Daily-Prime + .75% to 3.25%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Trade (17% of the total)
|
|
Various Other 4.75% to 7.25% ##
|
|
Revolving line of credit
|
|
10/19/98
to
08/31/06
|
|
08/31/16
to
10/19/16
|
|
|
3
|
|
|
|
*
|
|
|
|
5.11
|
%
|
|
|
|
|
|
$
|
649
|
|
|
$ 649
|
|
$
|
630
|
|
|
|
{Daily-Prime + 1.5% to 4%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation and Warehousing (14% of the total)
|
|
Various Other 6.00% ##
|
|
Revolving line of credit
|
|
12/31/01
|
|
12/31/16
|
|
|
1
|
|
|
|
*
|
|
|
|
6.00
|
%
|
|
|
|
|
|
$
|
506
|
|
|
$ 506
|
|
$
|
499
|
|
|
|
{Daily-Prime + 2.75%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional, Scientific, and Technical Services (11% of the total)
|
|
Various Other 6.75%
|
|
Revolving line of credit
|
|
12/22/14
|
|
12/22/16
|
|
|
1
|
|
|
|
*
|
|
|
|
6.75
|
%
|
|
|
|
|
|
$
|
408
|
|
|
$ 408
|
|
$
|
408
|
|
|
|
{Daily-Prime + 3.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction (9% of the total)
|
|
Various Other 5.75% ##
|
|
Revolving line of credit
|
|
07/20/99
|
|
07/20/16
|
|
|
1
|
|
|
|
*
|
|
|
|
5.75
|
%
|
|
|
|
|
|
$
|
354
|
|
|
$ 354
|
|
$
|
349
|
|
|
|
{Daily-Prime + 2.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care and Social Assistance (7% of the total)
|
|
Various Other 5.50% to 5.75% ##
|
|
Revolving line of credit
|
|
10/02/07
to
11/09/12
|
|
10/02/16
to
11/09/16
|
|
|
2
|
|
|
|
*
|
|
|
|
5.72
|
%
|
|
|
|
|
|
$
|
294
|
|
|
$ 294
|
|
$
|
273
|
|
|
|
{Daily-Prime + 2.25% to 2.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and Insurance (7% of the total)
|
|
Various Other 7.00%
|
|
Revolving line of credit
|
|
08/26/15
|
|
08/26/16
|
|
|
1
|
|
|
|
*
|
|
|
|
7.00
|
%
|
|
$
|
95
|
|
|
$
|
250
|
|
|
$ 250
|
|
$
|
242
|
|
|
|
{Daily-Prime + 3.75%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing (6% of the total)
|
|
Various Other 5.75% to 7.25% ##
|
|
Revolving line of credit
|
|
07/07/04
to
11/10/15
|
|
01/27/16
to
11/29/16
|
|
|
6
|
|
|
|
*
|
|
|
|
6.38
|
%
|
|
$
|
53
|
|
|
$
|
236
|
|
|
$ 236
|
|
$
|
215
|
|
|
|
{Daily-Prime + 2.5% to 4%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative and Support Services (5% of the total)
|
|
Various Other 5.50%
|
|
Revolving line of credit
|
|
06/30/07
|
|
06/30/16
|
|
|
1
|
|
|
|
*
|
|
|
|
5.50
|
%
|
|
|
|
|
|
$
|
173
|
|
|
$ 173
|
|
$
|
167
|
|
|
|
{Daily-Prime + 2.25%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate and Rental and Leasing (0% of the total)
|
|
Various Other 7.75%
|
|
Revolving line of credit
|
|
12/24/15
|
|
12/24/16
|
|
|
1
|
|
|
|
*
|
|
|
|
7.75
|
%
|
|
|
|
|
|
$
|
0
|
|
|
$ 0
|
|
$
|
0
|
|
|
|
{Daily-Prime + 4.5%}
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total asset-based ($2,164 pledged as collateral under borrowing arrangements)
|
|
|
26
|
|
|
|
1
|
%
|
|
|
5.82
|
%
|
|
$
|
573
|
|
|
$
|
3,750
|
|
|
$ 3,750
|
|
$
|
3,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other secured commercial
(80% New York, 16% New Jersey, 3% Illinois and 1% all other
states)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Trade (90% of the total)
|
|
Medallion Fine Art Inc (interest rate includes PIK interest of 12%)
|
|
Term Loan
|
|
12/17/12
|
|
12/17/17
|
|
|
1
|
|
|
|
3
|
%
|
|
|
12.00
|
%
|
|
|
|
|
|
$
|
8,348
|
|
|
$ 8,348
|
|
$
|
8,348
|
|
|
|
(capitalized interest of $2,073 per footnote 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Various Other && 4.75% to 10.50%
|
|
Term Loan
|
|
10/28/08
to
12/23/15
|
|
03/15/17
to
02/13/21
|
|
|
10
|
|
|
|
1
|
%
|
|
|
8.58
|
%
|
|
$
|
954
|
|
|
$
|
3,129
|
|
|
$ 3,073
|
|
$
|
2,300
|
|
Accommodation and Food Services (5% of the total)
|
|
Various Other && 6.75% to 9.00%
|
|
Term Loan
|
|
11/29/05
to
06/06/14
|
|
03/16/16
to
09/06/19
|
|
|
3
|
|
|
|
*
|
|
|
|
8.29
|
%
|
|
|
|
|
|
$
|
786
|
|
|
$ 721
|
|
$
|
615
|
|
Transportation and Warehousing (3% of the total)
|
|
Various Other && 4.00% to 4.25%
|
|
Term Loan
|
|
09/19/14
to
03/17/15
|
|
09/10/18
to
02/05/20
|
|
|
2
|
|
|
|
*
|
|
|
|
4.08
|
%
|
|
$
|
120
|
|
|
$
|
301
|
|
|
$ 301
|
|
$
|
303
|
|
Real Estate and Rental and Leasing (1% of the total)
|
|
Various Other && 4.00% to 5.00%
|
|
Term Loan
|
|
07/15/13
to
03/31/15
|
|
07/15/16
to
03/31/20
|
|
|
2
|
|
|
|
*
|
|
|
|
4.93
|
%
|
|
$
|
100
|
|
|
$
|
99
|
|
|
$ 99
|
|
$
|
99
|
|
Health Care and Social Assistance (1% of the total)
|
|
Various Other 7.50%
|
|
Term Loan
|
|
05/14/13
|
|
05/14/18
|
|
|
1
|
|
|
|
*
|
|
|
|
7.50
|
%
|
|
|
|
|
|
$
|
80
|
|
|
$ 80
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Commercial Loans
|
|
|
|
|
|
|
|
|
19
|
|
|
|
4
|
%
|
|
|
10.68
|
%
|
|
$
|
1,174
|
|
|
$
|
12,743
|
|
|
$ 12,622
|
|
$
|
11,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans ($2,164 pledged as collateral under borrowing arrangements)
(2)
|
|
|
78
|
|
|
|
29
|
%
|
|
|
12.80
|
%
|
|
$
|
27,097
|
|
|
$
|
84,342
|
|
|
$ 84,221
|
|
$
|
81,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Medallion Bank and other controlled subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Banking
|
|
Medallion Bank **
|
|
100% of common stock
|
|
05/16/02
|
|
None
|
|
|
1
|
|
|
|
55
|
%
|
|
|
13.17
|
%
|
|
|
|
|
|
|
|
|
|
$136,666
|
|
$
|
152,166
|
|
NASCAR Race Team
|
|
Medallion MotorSports, LLC
|
|
75% of LLC units
|
|
11/24/10
|
|
None
|
|
|
1
|
|
|
|
1
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$ 2,832
|
|
$
|
2,527
|
|
Art Dealer
|
|
Medallion Fine Art, Inc.
|
|
100% of common stock
|
|
12/03/12
|
|
None
|
|
|
1
|
|
|
|
2
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$ 789
|
|
$
|
4,234
|
|
Page 37 of 75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
2015
Acquisitions
(5)
|
|
|
Principal
Outstanding
|
|
|
Cost
(4)
|
|
|
Fair
Value
|
|
Loan Servicing
|
|
|
|
Medallion Servicing Corp.
|
|
100% of common stock
|
|
|
11/05/10
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
631
|
|
|
$
|
631
|
|
Professional Sports Team
|
|
|
|
LAX Group LLC
|
|
44.31% of membership interests
|
|
|
05/23/12
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
355
|
|
|
$
|
355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Medallion Bank and other controlled subsidiaries, net
|
|
|
|
|
|
|
|
5
|
|
|
|
58
|
%
|
|
|
12.74
|
%
|
|
$
|
0
|
|
|
|
|
|
|
$
|
141,273
|
|
|
$
|
159,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Finance
|
|
|
|
Convergent Capital, Ltd **
|
|
7% of limited partnership interest
|
|
|
07/20/07
|
|
|
|
None
|
|
|
|
1
|
|
|
|
1
|
%
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
326
|
|
|
$
|
1,957
|
|
Gift card service & marketing
|
|
+
|
|
Production Services Associates d/b/a American Card Services
|
|
5.65% of LLC units
|
|
|
02/17/15
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
$
|
250
|
|
|
|
|
|
|
$
|
250
|
|
|
$
|
1,179
|
|
Weather forecasting services
|
|
|
|
Weather Decision Technologies, Inc.
|
|
2.2% preferred stock
|
|
|
12/11/15
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
$
|
500
|
|
|
|
|
|
|
$
|
500
|
|
|
$
|
500
|
|
Employee Leasing Services
|
|
|
|
Staff One, Inc.
|
|
46.4% preferred stock
|
|
|
06/30/08
|
|
|
|
None
|
|
|
|
2
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
472
|
|
|
$
|
472
|
|
Stuffed Toy Manufacturer
|
|
|
|
AA Plush Holdings, LLC
|
|
1.6% LLC common units
|
|
|
08/15/14
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Investment Castings
|
|
|
|
Tech Cast Holdings LLC
|
|
4.14% LLC units
|
|
|
12/12/14
|
|
|
|
12/12/19
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Machine Shop
|
|
|
|
MicroGroup, Inc.
|
|
5.5% common stock
|
|
|
06/29/15
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
$
|
300
|
|
|
|
|
|
|
$
|
300
|
|
|
$
|
300
|
|
Baby Sleep Products
|
|
|
|
BB Opco, LLC d/b/a BreathableBaby, LLC
|
|
3.6% LLC units
|
|
|
08/01/14
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
250
|
|
|
$
|
250
|
|
Wire Manufacturer
|
|
|
|
WRWP LLC
|
|
10.3% preferred LLC units, 7.23% common LLC units
|
|
|
12/30/14
|
|
|
|
12/30/19
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
224
|
|
|
$
|
224
|
|
Marketing Services
|
|
|
|
Third Century JRT Inc.
|
|
13% common stock
|
|
|
05/21/15
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
$
|
200
|
|
|
|
|
|
|
$
|
200
|
|
|
$
|
200
|
|
Manufacture space heaters, etc.
|
|
|
|
Pinnacle Products International, Inc.
|
|
0.5% common stock
|
|
|
10/09/15
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
$
|
135
|
|
|
|
|
|
|
$
|
135
|
|
|
$
|
135
|
|
IT Services
|
|
|
|
Centare Holdings, Inc.
|
|
7.23% of common stock, 3.88% of preferred stock
|
|
|
08/30/13
|
|
|
|
None
|
|
|
|
1
|
|
|
|
*
|
|
|
|
0.00
|
%
|
|
|
|
|
|
|
|
|
|
$
|
104
|
|
|
$
|
104
|
|
Various Other #
|
|
+
|
|
**
|
|
* Various
|
|
|
09/10/98
to
7/24/15
|
|
|
|
None to
6/30/22
|
|
|
|
7
|
|
|
|
*
|
|
|
|
3.37
|
%
|
|
$
|
50
|
|
|
|
|
|
|
$
|
916
|
|
|
$
|
938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
2
|
%
|
|
|
0.72
|
%
|
|
$
|
1,435
|
|
|
|
|
|
|
$
|
4,277
|
|
|
$
|
6,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
|
US Treasury Note AAA
|
|
|
|
|
06/30/15
|
|
|
|
07/15/16
|
|
|
|
1
|
|
|
|
4
|
%
|
|
|
0.63
|
%
|
|
$
|
10,059
|
|
|
$
|
10,000
|
|
|
$
|
10,059
|
|
|
$
|
10,029
|
|
|
|
|
|
US Treasury Bill
|
|
|
|
|
07/30/15
|
|
|
|
07/21/16
|
|
|
|
1
|
|
|
|
4
|
%
|
|
|
0.33
|
%
|
|
$
|
9,936
|
|
|
$
|
10,000
|
|
|
$
|
9,936
|
|
|
$
|
9,972
|
|
|
|
|
|
US Treasury Bill
|
|
|
|
|
09/22/15
|
|
|
|
09/15/16
|
|
|
|
1
|
|
|
|
4
|
%
|
|
|
0.39
|
%
|
|
$
|
9,968
|
|
|
$
|
10,000
|
|
|
$
|
9,968
|
|
|
$
|
9,964
|
|
|
|
|
|
US Treasury Bill
|
|
|
|
|
10/30/15
|
|
|
|
10/13/16
|
|
|
|
1
|
|
|
|
7
|
%
|
|
|
0.21
|
%
|
|
$
|
19,939
|
|
|
$
|
20,000
|
|
|
$
|
19,939
|
|
|
$
|
19,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
18
|
%
|
|
|
0.35
|
%
|
|
$
|
49,902
|
|
|
$
|
50,000
|
|
|
$
|
49,902
|
|
|
$
|
49,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investments ($240,267 pledged as collateral under borrowing arrangements)
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
806
|
|
|
|
218
|
%
|
|
|
7.06
|
%
|
|
$
|
115,892
|
|
|
$
|
445,853
|
|
|
$
|
591,106
|
|
|
$
|
606,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $4,878 of interest income capitalized into the outstanding investment balances, in
accordance with the terms of the investment contract.
|
(3)
|
The ratio of restricted securities fair value to net assets is 218%.
|
(4)
|
Gross unrealized appreciation, gross unrealized depreciation and net appreciation for federal income tax purposes totaled $79,139, $5,896 and $73,243, respectively. The
tax cost of investments was $533,716.
|
(5)
|
For revolving lines of credit the amount shown is the cost at December 31, 2015.
|
**
|
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 29% and up to 29% 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, 2015.
|
The Summary Schedule of Investments does not reflect the Companys complete portfolio holdings. It includes the Companys 50 largest holdings
and each investment of any issuer that exceeds 1% of the Companys 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 SECs 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, 2015, filed on March 7, 2016 (File No. 814-00188)
Page 38 of 75
Medallion Financial Corp
CONSOLIDATED SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFIILIATES
As of and for the year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of issuer and title of issue
|
|
Number of shares
(all restricted unless otherwise noted)
|
|
Equity in net profit
and
(loss)
|
|
|
Amount of dividends
or
interest
(1)
|
|
|
Value as
of
12/31/15
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Medallion Bankcommon stock
|
|
1,000,000 shares100% of common stock
|
|
$
|
38,474
|
|
|
$
|
18,000
|
|
|
$
|
152,166
|
|
Medallion Fine Art, Inc.common stock
(2)
|
|
1,000 shares100% of common stock
|
|
|
2,552
|
|
|
|
0
|
|
|
|
4,234
|
|
Medallion Motorsports, LLCmembership interest
(3)
|
|
75% of membership interest
|
|
|
150
|
|
|
|
0
|
|
|
|
2,527
|
|
Medallion Servicing Corp.common stock
|
|
1,000 shares100% of common stock
|
|
|
(394
|
)
|
|
|
0
|
|
|
|
631
|
|
LAX Group LLCmembership interest
|
|
44.31% of membership interest
|
|
|
(627
|
)
|
|
|
0
|
|
|
|
355
|
|
Generation Outdoor, Inc.
|
|
|
|
|
3,206
|
|
|
|
889
|
|
|
|
0
|
|
Medallion Hamptons Holding LLCmembership interest
|
|
100% of membership interest
|
|
|
24
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments in Medallion Bank and other controlled subsidiaries
|
|
|
|
|
43,385
|
|
|
|
18,889
|
|
|
|
159,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appliance Recycling Centers of America Inc.common stock
|
|
8.86% of common stock
|
|
|
0
|
|
|
|
0
|
|
|
|
509
|
|
Micro Group, Inc.
(5)
|
|
5.5% of common stock
|
|
|
0
|
|
|
|
0
|
|
|
|
300
|
|
Production Services Associates LLC
(4)
|
|
5.65% of membership interest
|
|
|
0
|
|
|
|
0
|
|
|
|
1,179
|
|
WRWP, LLC membership interest
(6)
|
|
7.23% of membership interest
|
|
|
0
|
|
|
|
0
|
|
|
|
224
|
|
Third Century JRT, Inc.
(7)
|
|
13% of common stock
|
|
|
0
|
|
|
|
0
|
|
|
|
200
|
|
Summit Medical, Inc.common stock
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity investments in affiliates
|
|
|
|
|
|
|
|
|
0
|
|
|
|
2,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Investments with an amount of 0 are considered non-income producing.
|
(2)
|
Additionally, the Company has a loan due from Medallion Fine Art, Inc. in the amount of $8,348 as of December 31, 2015, and on which $944 of interest income was
earned during 2015.
|
(3)
|
Additionally, a controlled subsidiary of the Company has a loan due from an affiliate of Medallion Motorsports, LLC in the amount of $5,033, and on which $547 of
interest income was earned during 2015.
|
(4)
|
Additionally, the Company has a loan due from Production Services Associates LLC in the amount of $2,646 as of December 31, 2015, on which $367 of interest income
was earned during 2015.
|
(5)
|
Additionally, the Company has a loan due from Micro Group, Inc. in the amount of $3,233 as of December 31, 2015, on which $230 of interest income was earned during
2015.
|
(6)
|
Additionally, the Company has a loan due from WRWP, LLC in the amount of $2,311 as of December 31, 2015, on which $348 of interest income was earned during 2015.
|
(7)
|
Additionally, the Company has a loan due from Third Century JRT, Inc., in the amount of $2,273 as of December 31, 2015, on which $230 of interest income was earned
during 2015.
|
Page 39 of 75
The table below provides a recap of the changes in the investment in the
respective issuers for the year ended December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of
Issuer
|
|
Medallion
Bank
|
|
|
Medallion
Fine Art,
Inc.
|
|
|
Medallion
Motorsports,
LLC
|
|
|
Appliance
Recycling
Centers of
America,
Inc.
|
|
|
Medallion
Servicing
Corp.
|
|
|
LAX Group,
LLC
|
|
|
Production
Services
Associates,
LLC
(3)
|
|
|
Micro
Group,
Inc.
(4)
|
|
|
WRWP, LLC
|
|
|
Third
Century
JRT,
Inc.
(6)
|
|
|
Generation
Outdoor,
Inc.
|
|
|
Medallion
Hamptons
Holding,
LLC
|
|
|
Summit
Medical,
Inc.
|
|
Title of Issue
|
|
Common
Stock
|
|
|
Common
Stock
(1)
|
|
|
Membership
Interest
(2)
|
|
|
Common
Stock
|
|
|
Common
Stock
|
|
|
Membership
Interest
|
|
|
Membership
Interest
|
|
|
Common
Stock
|
|
|
Membership
Interest
(5)
|
|
|
Common
Stock
|
|
|
Common
Stock
|
|
|
Membership
Interest
|
|
|
Common
Stock
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value as of 12/31/14
|
|
$
|
125,027
|
|
|
$
|
1,157
|
|
|
$
|
1,600
|
|
|
$
|
1,231
|
|
|
$
|
852
|
|
|
$
|
349
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
224
|
|
|
$
|
0
|
|
|
$
|
5,063
|
|
|
$
|
4,400
|
|
|
$
|
135
|
|
Gross additions / investments
|
|
|
8,000
|
|
|
|
525
|
|
|
|
777
|
|
|
|
|
|
|
|
600
|
|
|
|
633
|
|
|
|
250
|
|
|
|
300
|
|
|
|
|
|
|
|
200
|
|
|
|
|
|
|
|
80
|
|
|
|
|
|
Gross reductions / distributions
|
|
|
(19,335
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(427
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,269
|
)
|
|
|
(4,504
|
)
|
|
|
(369
|
)
|
Net equity in profit and loss, and unrealized appreciation and (depreciation)
|
|
|
38,474
|
|
|
|
2,552
|
|
|
|
150
|
|
|
|
(722
|
)
|
|
|
(394
|
)
|
|
|
(627
|
)
|
|
|
929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,206
|
|
|
|
24
|
|
|
|
234
|
|
Other adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value as of 12/31/15
|
|
|
152,166
|
|
|
|
4,234
|
|
|
|
2,527
|
|
|
|
509
|
|
|
|
631
|
|
|
|
355
|
|
|
|
1,179
|
|
|
|
300
|
|
|
|
224
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Additionally, the Company has a loan due from Medallion Fine Art, Inc. in the amount of $8,348 as of December 31, 2015, $2,161 of which was advanced during 2015,
and for which $550 was repaid.
|
(2)
|
In addition to the equity ownership, a controlled subsidiary of the Company has a loan due from an affiliate of Medallion Motorsports, LLC in the amount of $5,033, $548
of which was advanced during 2015.
|
(3)
|
Additionally, the Company has a loan due from Production Services Associates LLC in the amount of $2,646 as of December 31, 2015, all of which was advanced during
2015, on which there were $367 of interest income was earned during 2015.
|
(4)
|
Additionally, the Company has a loan due from Micro Group, Inc. in the amount of $3,233 as of December 31, 2015 all of which was advanced during 2015.
|
(5)
|
Additionally, the Company has a loan due from WRWP LLC in the amount of $2,311 as of December 31, 2015, $69 of which was advanced during 2015.
|
(6)
|
Additionally, the Company has a loan due from J. R. Thompson Company, LLC, an affiliate of Third Century JRT, INC in the amount of $2,273 as of December 31, 2015,
all of which was advanced during 2015.
|
Page 40 of 75