Note 14. Segment Financials

The Company performed a strategic evaluation of its businesses in the third quarter of 2014. As a result of the evaluation, the Company decided to discontinue its commercial lending operations, as described in Note 15, Discontinued Operations. The shift from a traditional bank balance sheet led the Company to evaluate its continuing operations. Based on the continuing operations of the Company, it was determined that there would be four segments of the business: specialty finance, payments, corporate and discontinued operations. The chief decision maker for these segments is the Chief Executive Officer. Specialty finance includes commercial loan sales and securitization, SBA loans, direct lease financing and security-backed lines of credit, cash value insurance policy-backed lines of credit and deposits generated by those business lines. Payments include prepaid card accounts, card payments, ACH processing and deposits generated by those business lines. Corporate includes the Company’s investment portfolio, corporate overhead and non-allocated expenses. Investment income is reallocated to the payments segment. These operating segments reflect the way the Company views its current operations.

The following tables provide segment information for the periods indicated:



	For the three months ended March 31, 2020
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Interest income	$ 39,293	$ -	$ 12,173	$ -	$ 51,466
Interest allocation	-	12,173	(12,173)	-	-
Interest expense	340	5,065	3,150	-	8,555
Net interest income (loss)	38,953	7,108	(3,150)	-	42,911
Provision for credit losses	3,579	-	-	-	3,579
Non-interest income	(3,839)	20,421	17	-	16,599
Non-interest expense	16,916	17,145	4,357	-	38,418
Income (loss) from continuing operations before taxes	14,619	10,384	(7,490)	-	17,513
Income tax expense	-	-	4,352	-	4,352
Income (loss) from continuing operations	14,619	10,384	(11,842)	-	13,161
Loss from discontinued operations	-	-	-	(570)	(570)
Net income (loss)	$ 14,619	$ 10,384	$ (11,842)	$ (570)	$ 12,591



	For the three months ended March 31, 2019
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Interest income	$ 30,473	$ -	$ 13,105	$ -	$ 43,578
Interest allocation	-	13,105	(13,105)	-	-
Interest expense	368	8,384	816	-	9,568
Net interest income (loss)	30,105	4,721	(816)	-	34,010
Provision for credit losses	1,700	-	-	-	1,700
Non-interest income	11,777	18,548	40	-	30,365
Non-interest expense	15,357	16,459	7,413	-	39,229
Income (loss) from continuing operations before taxes	24,825	6,810	(8,189)	-	23,446
Income tax expense	-	-	6,035	-	6,035
Income (loss) from continuing operations	24,825	6,810	(14,224)	-	17,411
Income from discontinued operations	-	-	-	519	519
Net income (loss)	$ 24,825	$ 6,810	$ (14,224)	$ 519	$ 17,930



	March 31, 2020
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Total assets	$ 3,735,854	$ 48,361	$ 1,539,775	$ 134,118	$ 5,458,108
Total liabilities	$ 260,220	$ 3,977,947	$ 721,837	$ -	$ 4,960,004



	December 31, 2019
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Total assets	$ 3,008,304	$ 57,746	$ 2,450,256	$ 140,657	$ 5,656,963
Total liabilities	$ 247,485	$ 4,030,921	$ 894,060	$ -	$ 5,172,466