SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 21 – Segment Reporting

The Company has identified three reportable segments: CoRe banking; mortgage banking; and financial holding company. Revenue from CoRe banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. The Fintech division, Chartwell and Paladin Fraud reside in the CoRe banking segment. Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage loan origination process. Prior to July 1, 2020, the mortgage banking services were conducted by PMG. In July 2020, the Company announced the completion of PMG’s combination with Intercoastal to form ICM. The Company has recognized its ownership as an equity method investment, initially recorded at fair value. Income related to this equity method investment is included in the Mortgage Banking segment. Revenue from financial holding company activities is mainly comprised of intercompany service income and dividends.

Information about the reportable segments and reconciliation to the consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 are as follows:

	2020
(Dollars in thousands)	CoRe Banking		Mortgage Banking		Financial Holding Company		Intercompany Eliminations		Consolidated
Interest income	$	75,812	$	6,269	$	3	$	(1,631)	$	80,453
Interest expense	10,400		3,139		261		(2,173)		11,627
Net interest income (loss)	65,412		3,130		(258)		542		68,826
Provision for (recovery of) loan losses	16,649		(70)		—		—		16,579
Net interest income after provision for loan losses	48,763		3,200		(258)		542		52,247
Noninterest Income:
Mortgage fee income	247		33,722		—		(542)		33,427
Other income	30,082		29,768		6,685		(8,125)		58,410
Total noninterest income	30,329		63,490		6,685		(8,667)		91,837
Noninterest Expenses:
Salaries and employee benefits	28,801		21,550		11,278		—		61,629
Other expenses	33,298		5,074		5,265		(8,125)		35,512
Total noninterest expenses	62,099		26,624		16,543		(8,125)		97,141
Income (loss) before income taxes	16,993		40,066		(10,116)		—		46,943
Income tax expense (benefit)	1,752		9,862		(2,082)		—		9,532
Net income (loss)	$	15,241	$	30,204	$	(8,034)	$	—	$	37,411
Preferred stock dividends	—		—		461		—		461
Net income (loss) available to common shareholders	$	15,241	$	30,204	$	(8,495)	$	—	$	36,950
Capital Expenditures for the year ended December 31, 2020	$	6,439	$	99	$	77	$	—	$	6,615
Total Assets as of December 31, 2020	2,343,556		58,140		284,943		(355,163)		2,331,476
Goodwill as of December 31, 2020	2,350		—		—		—		2,350

	2019
(Dollars in thousands)	CoRe Banking		Mortgage Banking		Financial Holding Company		Intercompany Eliminations		Consolidated
Interest income	$	75,874	$	8,342	$	13	$	(1,868)	$	82,361
Interest expense	18,698		6,014		769		(2,520)		22,961
Net interest income	57,176		2,328		(756)		652		59,400
Provision for loan losses	1,622		167		—		—		1,789
Net interest income after provision for loan losses	55,554		2,161		(756)		652		57,611
Noninterest Income:
Mortgage fee income	657		41,040		—		(652)		41,045
Other income	23,033		1,289		6,268		(7,031)		23,559
Total noninterest income	23,690		42,329		6,268		(7,683)		64,604
Noninterest Expenses:
Salaries and employee benefits	19,067		28,432		8,676		—		56,175
Other expenses	25,070		8,136		4,851		(7,031)		31,026
Total noninterest expenses	44,137		36,568		13,527		(7,031)		87,201
Income (loss) from continuing operations, before income taxes	35,107		7,922		(8,015)		—		35,014
Income tax expense (benefit) - continuing operations	8,175		2,155		(1,880)		—		8,450
Net income (loss) from continuing operations	26,932		5,767		(6,135)		—		26,564
Income from discontinued operations, before income taxes	—		—		575		—		575
Income tax expense - discontinued operations	—		—		148		—		148
Net income from discontinued operations	—		—		427		—		427
Net income (loss)	26,932		5,767		(5,708)		—		26,991
Preferred stock dividends	—		—		479		—		479
Net income (loss) available to common shareholders	$	26,932	$	5,767	$	(6,187)	$	—	$	26,512
Capital Expenditures for the year ended December 31, 2019	$	1,438	$	112	$	492	$	—	$	2,042
Total Assets as of December 31, 2019	1,953,975		248,382		216,411		(474,564)		1,944,114
Goodwill as of December 31, 2019	2,748		16,882		—		—		19,630

	2018
(Dollars in thousands)	CoRe Banking		Mortgage Banking		Financial Holding Company		Intercompany Eliminations		Consolidated
Interest income	$	63,762	$	6,667	$	5	$	(674)	$	69,760
Interest expense	13,667		4,085		1,756		(1,802)		17,706
Net interest income	50,095		2,582		(1,751)		1,128		52,054
Provision for loan losses	2,386		54		—		—		2,440
Net interest income after provision for loan losses	47,709		2,528		(1,751)		1,128		49,614
Noninterest Income:
Mortgage fee income	585		32,880		—		(1,128)		32,337
Other income	6,479		(243)		6,411		(6,344)		6,303
Total noninterest income	7,064		32,637		6,411		(7,472)		38,640
Noninterest Expenses:
Salaries and employee benefits	14,924		23,927		7,373		—		46,224
Other expenses	20,081		8,608		4,309		(6,344)		26,654
Total noninterest expenses	35,005		32,535		11,682		(6,344)		72,878
Income (loss) before income taxes	19,768		2,630		(7,022)		—		15,376
Income tax expense (benefit)	4,265		677		(1,569)		—		3,373
Net income (loss)	$	15,503	$	1,953	$	(5,453)	$	—	$	12,003
Preferred stock dividends	—		—		489		—		489
Net income (loss) available to common shareholders	$	15,503	$	1,953	$	(5,942)	$	—	$	11,514
Capital Expenditures for the year ended December 31, 2018	$	2,284	$	272	$	137	$	—	$	2,693