Reportable Segments

3 Months Ended

Mar. 31, 2020

NOTE 4: Reportable segments

The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning purposes by management. The table below is a reconciliation of the reportable segment revenues, expenses, and profit to the Company’s consolidated total for the three-month periods ending March 31, 2020 and 2019.

	Three-month period ending March 31, 2020
		Correspondent	Corporate
	Commercial	banking and	overhead
	and retail	capital markets	and	Elimination
	banking	division	administration	entries	Total
Interest income	$173,702	$3,057	$ —	$ —	$176,759
Interest expense	(20,434)	(1,664)	(1,308)	—	(23,406)
Net interest income (expense)	153,268	1,393	(1,308)	—	153,353
Provision for credit losses	(45,156)	242	—	—	(44,914)
Non-interest income	27,981	27,809	—	—	55,790
Non-interest expense	(108,373)	(12,503)	(1,896)	—	(122,772)
Net income (loss) before taxes	27,720	16,941	(3,204)	—	41,457
Income tax (provision) benefit	(3,487)	(4,241)	1,703	—	(6,025)
Net income (loss)	24,233	12,700	(1,501)	—	35,432
Total assets	$17,954,442	$641,599	$3,005,931	$(3,005,680)	$18,596,292

	Three-month period ending March 31, 2019
			Correspondent	Corporate
		Commercial	banking and	overhead
		and retail	capital markets	and	Elimination
		banking	division	administration	entries	Total
Interest income		$127,832	$4,450	$ —	$ —	$132,282
Interest expense		(14,851)	(2,549)	(707)	—	(18,107)
Net interest income (expense)		112,981	1,901	(707)	—	114,175
Provision for credit losses		(1,015)	(38)	—	—	(1,053)
Non-interest income		20,300	9,000	—	—	29,300
Non-interest expense		(77,581)	(5,713)	(1,179)	—	(84,473)
Net income (loss) before taxes		54,685	5,150	(1,886)	—	57,949
Income tax (provision) benefit		(12,690)	(1,305)	689	—	(13,306)
Net income (loss)		$41,995	$3,845	$(1,197)	$ —	$44,643
Total assets		$11,939,930	$647,046	$2,073,703	$(2,073,042)	$12,587,637

Commercial and retail banking: The Company’s primary business is commercial and retail banking. Currently, the Company operates primarily through the Bank providing traditional retail, commercial, mortgage, wealth management and SBA services throughout its Florida, Georgia and Alabama branch network and customer relationships in neighboring states. This segment also includes the results of CBI, our transaction-based finance company that provides factoring, invoicing, collection and accounts receivable management services to transportation companies and automotive parts and service providers throughout the United States and Canada.

Correspondent banking and capital markets division: Operating as a division of our subsidiary bank, its primary revenue generating activities are related to the capital markets division which includes commissions earned on fixed income security sales, fees from hedging services, loan brokerage fees and consulting fees for services related to these activities. Income generated related to the correspondent banking services includes spread income earned on correspondent bank deposits (i.e. federal funds purchased) and fees generated from safe-keeping activities, bond accounting services, asset/liability consulting services, international wires, clearing and corporate checking account services and other correspondent banking related services. The fees derived from the correspondent banking services are less volatile than those generated through the capital markets group. The customer base includes small to medium size financial institutions primarily located in Southeastern United States.

Corporate overhead and administration: Corporate overhead and administration is comprised primarily of compensation and benefits for certain members of management, interest on parent company debt, office occupancy and depreciation of parent company facilities, merger related costs and other expenses.