Business Segment Information

6 Months Ended

Jun. 30, 2016

Business Segment Information

Business Segment Information

16) Business Segment Information

        The following presents the Company's operating segments. The Company operates through two business segments: Banking segment and Factoring segment. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company's prime rate and funding costs. The provision for loan loss is allocated based on the segment's allowance for loan loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding.

	Three Months Ended June 30, 2016
	Banking(1)		Factoring			Consolidated
	(Dollars in thousands)
Interest income	$	20,301	$	3,203		$	23,504
Intersegment interest allocations		304		(304	)		—
Total interest expense		760		—			760
Net interest income		19,845		2,899			22,744
Provision for loan losses		325		26			351
Net interest income after provision		19,520		2,873			22,393
Noninterest income		3,497		163			3,660
Noninterest expense		12,602		1,779			14,381
Intersegment expense allocations		214		(214	)		—
Income before income taxes		10,629		1,043			11,672
Income tax expense		3,940		437			4,377
Net income	$	6,689	$	606		$	7,295
Total assets	$	2,311,058	$	67,234		$	2,378,292
Loans, net of deferred fees	$	1,412,317	$	51,797		$	1,464,114
Goodwill	$	32,620	$	13,044		$	45,664

(1)           Includes the holding company's results of operations

	Three Months Ended June 30, 2015
	Banking(1)		Factoring			Consolidated
	(Dollars in thousands)
Interest income	$	15,037	$	3,138		$	18,175
Intersegment interest allocations		274		(274	)		—
Total interest expense		533		—			533
Net interest income		14,778		2,864			17,642
Provision for loan losses		21		1			22
Net interest income after provision		14,757		2,863			17,620
Noninterest income		1,921		243			2,164
Noninterest expense		10,809		1,808			12,617
Intersegment expense allocations		79		(79	)		—
Income before income taxes		5,948		1,219			7,167
Income tax expense		2,178		512			2,690
Net income	$	3,770	$	707		$	4,477
Total assets	$	1,622,804	$	57,402		$	1,680,206
Loans, net of deferred fees	$	1,091,309	$	42,294		$	1,133,603
Goodwill	$	—	$	13,055		$	13,055

(1)           Includes the holding company's results of operations

	Six Months Ended June 30, 2016
	Banking(1)		Factoring			Consolidated
	(Dollars in thousands)
Interest income	$	40,509	$	6,057		$	46,566
Intersegment interest allocations		549		(549	)		—
Total interest expense		1,518		—			1,518
Net interest income		39,540		5,508			45,048
Provision for loan losses		712		40			752
Net interest income after provision		38,828		5,468			44,296
Noninterest income		5,909		365			6,274
Noninterest expense		25,654		3,412			29,066
Intersegment expense allocations		389		(389	)		—
Income before income taxes		19,472		2,032			21,504
Income tax expense		7,250		853			8,103
Net income	$	12,222	$	1,179		$	13,401
Total assets	$	2,311,058	$	67,234		$	2,378,292
Loans, net of deferred fees	$	1,412,317	$	51,797		$	1,464,114
Goodwill	$	32,620	$	13,044		$	45,664

(1)           Includes the holding company's results of operations

	Six Months Ended June 30, 2015
	Banking(1)			Factoring			Consolidated
	(Dollars in thousands)
Interest income	$	29,341		$	6,200		$	35,541
Intersegment interest allocations		542			(542	)		—
Total interest expense		1,041			—			1,041
Net interest income		28,842			5,658			34,500
Provision (credit) for loan losses		(37	)		(1	)		(38	)
Net interest income after provision		28,879			5,659			34,538
Noninterest income		3,712			378			4,090
Noninterest expense		21,314			3,579			24,893
Intersegment expense allocations		154			(154	)		—
Income before income taxes		11,431			2,304			13,735
Income tax expense		4,152			968			5,120
Net income	$	7,279		$	1,336		$	8,615
Total assets	$	1,622,804		$	57,402		$	1,680,206
Loans, net of deferred fees	$	1,091,309		$	42,294		$	1,133,603
Goodwill	$	—		$	13,055		$	13,055

(1)           Includes the holding company's results of operations