Business Segment Information

6 Months Ended

Jun. 30, 2022

Business Segment Information

Business Segment Information

17) 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 June 30, 2022
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	40,427	$	3,129	$	43,556
Intersegment interest allocations		321		(321)		—
Total interest expense		1,677		—		1,677
Net interest income		39,071		2,808		41,879
Provision for (recapture of) credit losses on loans		(328)		147		(181)
Net interest income after provision		39,399		2,661		42,060
Noninterest income		1,974		124		2,098
Noninterest expense		21,559		1,631		23,190
Intersegment expense allocations		128		(128)		—
Income before income taxes		19,942		1,026		20,968
Income tax expense		5,844		303		6,147
Net income	$	14,098	$	723	$	14,821
Total assets	$	5,280,953	$	75,888	$	5,356,841
Loans, net of deferred fees	$	3,019,076	$	63,376	$	3,082,452
Goodwill	$	154,587	$	13,044	$	167,631

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

	Three Months Ended June 30, 2021
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	33,860	$	2,772	$	36,632
Intersegment interest allocations		202		(202)		—
Total interest expense		1,756		—		1,756
Net interest income		32,306		2,570		34,876
Provision (recapture) for credit losses on loans		(486)		(7)		(493)
Net interest income after provision		32,792		2,577		35,369
Noninterest income		2,049		120		2,169
Noninterest expense		24,331		1,444		25,775
Intersegment expense allocations		127		(127)		—
Income before income taxes		10,637		1,126		11,763
Income tax expense		2,617		333		2,950
Net income	$	8,020	$	793	$	8,813
Total assets	$	5,003,894	$	68,981	$	5,072,875
Loans, net of deferred fees	$	2,777,685	$	47,111	$	2,824,796
Goodwill	$	154,587	$	13,044	$	167,631

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

	Six Months Ended June 30, 2022
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	77,540	$	5,922	$	83,462
Intersegment interest allocations		558		(558)		—
Total interest expense		3,362		—		3,362
Net interest income		74,736		5,364		80,100
Provision for (recapture of) credit losses on loans		(867)		119		(748)
Net interest income after provision		75,603		5,245		80,848
Noninterest income		4,372		186		4,558
Noninterest expense		43,326		3,116		46,442
Intersegment expense allocations		242		(242)		—
Income before income taxes		36,891		2,073		38,964
Income tax expense		10,664		613		11,277
Net income	$	26,227	$	1,460	$	27,687
Total assets	$	5,280,953	$	75,888	$	5,356,841
Loans, net of deferred fees	$	3,019,076	$	63,376	$	3,082,452
Goodwill	$	154,587	$	13,044	$	167,631

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

	Six Months Ended June 30, 2021
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	67,971	$	5,422	$	73,393
Intersegment interest allocations		413		(413)		—
Total interest expense		3,559		—		3,559
Net interest income		64,825		5,009		69,834
Provision (recapture) for credit losses on loans		(1,949)		(56)		(2,005)
Net interest income after provision		66,774		5,065		71,839
Noninterest income		4,209		261		4,470
Noninterest expense		46,228		2,791		49,019
Intersegment expense allocations		233		(233)		—
Income before income taxes		24,988		2,302		27,290
Income tax expense		6,593		680		7,273
Net income	$	18,395	$	1,622	$	20,017
Total assets	$	5,003,894	$	68,981	$	5,072,875
Loans, net of deferred fees	$	2,777,685	$	47,111	$	2,824,796
Goodwill	$	154,587	$	13,044	$	167,631

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