Business Segment Information

6 Months Ended

Jun. 30, 2024

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 credit 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, 2024
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	56,163	$	2,914	$	59,077
Intersegment interest allocations		453		(453)		—
Total interest expense		19,622		—		19,622
Net interest income		36,994		2,461		39,455
Provision for (recapture of) credit losses on loans		85		386		471
Net interest income after provision		36,909		2,075		38,984
Noninterest income		2,089		187		2,276
Noninterest expense		26,541		1,647		28,188
Intersegment expense allocations		132		(132)		—
Income before income taxes		12,589		483		13,072
Income tax expense		3,695		143		3,838
Net income	$	8,894	$	340	$	9,234
Total assets	$	5,179,963	$	83,061	$	5,263,024
Loans, net of deferred fees	$	3,323,107	$	56,686	$	3,379,793
Goodwill	$	154,587	$	13,044	$	167,631

	Three Months Ended June 30, 2023
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	54,494	$	3,847	$	58,341
Intersegment interest allocations		524		(524)		—
Total interest expense		12,048		—		12,048
Net interest income		42,970		3,323		46,293
Provision for (recapture of) credit losses on loans		409		(149)		260
Net interest income after provision		42,561		3,472		46,033
Noninterest income		2,017		57		2,074
Noninterest expense		23,329		1,662		24,991
Intersegment expense allocations		152		(152)		—
Income before income taxes		21,401		1,715		23,116
Income tax expense		6,206		507		6,713
Net income	$	15,195	$	1,208	$	16,403
Total assets	$	5,227,310	$	84,527	$	5,311,837
Loans, net of deferred fees	$	3,227,905	$	60,879	$	3,288,784
Goodwill	$	154,587	$	13,044	$	167,631

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

	Six Months Ended June 30, 2024
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	110,876	$	5,752	$	116,628
Intersegment interest allocations		876		(876)		—
Total interest expense		37,080		—		37,080
Net interest income		74,672		4,876		79,548
Provision for (recapture of) credit losses on loans		370		285		655
Net interest income after provision		74,302		4,591		78,893
Noninterest income		4,048		275		4,323
Noninterest expense		52,630		3,094		55,724
Intersegment expense allocations		260		(260)		—
Income before income taxes		25,980		1,512		27,492
Income tax expense		7,645		447		8,092
Net income	$	18,335	$	1,065	$	19,400
Total assets	$	5,179,963	$	83,061	$	5,263,024
Loans, net of deferred fees	$	3,323,107	$	56,686	$	3,379,793
Goodwill	$	154,587	$	13,044	$	167,631

	Six Months Ended June 30, 2023
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	106,767	$	7,848	$	114,615
Intersegment interest allocations		1,229		(1,229)		—
Total interest expense		19,064		—		19,064
Net interest income		88,932		6,619		95,551
Provision (recapture) for credit losses on loans		553		(261)		292
Net interest income after provision		88,379		6,880		95,259
Noninterest income		4,699		141		4,840
Noninterest expense		47,057		3,335		50,392
Intersegment expense allocations		326		(326)		—
Income before income taxes		46,347		3,360		49,707
Income tax expense		13,394		993		14,387
Net income	$	32,953	$	2,367	$	35,320
Total assets	$	5,227,310	$	84,527	$	5,311,837
Loans, net of deferred fees	$	3,227,905	$	60,879	$	3,288,784
Goodwill	$	154,587	$	13,044	$	167,631

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