Business Segment Information

3 Months Ended

Mar. 31, 2020

18) 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 credit losses on loans 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 March 31, 2020
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	38,065	$	2,877	$	40,942
Intersegment interest allocations		284		(284)		—
Total interest expense		2,362		—		2,362
Net interest income		35,987		2,593		38,580
Provision for credit losses on loans		12,874		396		13,270
Net interest income after provision		23,113		2,197		25,310
Noninterest income		3,023		170		3,193
Noninterest expense		24,183		1,591		25,774
Intersegment expense allocations		129		(129)		—
Income before income taxes		2,082		647		2,729
Income tax expense		677		191		868
Net income	$	1,405	$	456	$	1,861

Total assets	$	4,009,344	$	68,818	$	4,078,162
Loans, net of deferred fees	$	2,499,837	$	54,074	$	2,553,911
Goodwill	$	154,327	$	13,044	$	167,371

(1)

Includes the holding company’s results of operations


	Three Months Ended March 31, 2019
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	30,496		2,953	$	33,449
Intersegment interest allocations		314		(314)		—
Total interest expense		2,407		—		2,407
Net interest income		28,403		2,639		31,042
Provision for loan losses		(892)		(169)		(1,061)
Net interest income after provision		29,295		2,808		32,103
Noninterest income		2,232		236		2,468
Noninterest expense		16,201		1,717		17,918
Intersegment expense allocations		121		(121)		—
Income before income taxes		15,447		1,206		16,653
Income tax expense		4,151		356		4,507
Net income	$	11,296	$	850	$	12,146

Total assets	$	3,053,116	$	62,761	$	3,115,877
Loans, net of deferred fees	$	1,800,064	$	48,254	$	1,848,318
Goodwill	$	70,709	$	13,044	$	83,753

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