Segment Financials

9 Months Ended

Sep. 30, 2021

Segment Financials [Abstract]

Segment Financials

Note 15. 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 16, 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 the origination of non-SBA CRE loans, 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 September 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	46,313	$	—	$	7,187	$	—	$	53,500
Interest allocation		—		7,187		(7,187)		—		—
Interest expense		239		916		1,452		—		2,607
Net interest income (loss)		46,074		6,271		(1,452)		—		50,893
Provision for credit losses		1,613		—		—		—		1,613
Non-interest income		6,408		20,166		14		—		26,588
Non-interest expense		16,452		16,286		6,646		—		39,384
Income (loss) from continuing operations before taxes		34,417		10,151		(8,084)		—		36,484
Income tax expense		—		—		8,289		—		8,289
Income (loss) from continuing operations		34,417		10,151		(16,373)		—		28,195
Income from discontinued operations		—		—		—		66		66
Net income (loss)	$	34,417	$	10,151	$	(16,373)	$	66	$	28,261

	For the three months ended September 30, 2020
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	44,408	$	—	$	8,070	$	—	$	52,478
Interest allocation		—		8,070		(8,070)		—		—
Interest expense		232		1,234		1,016		—		2,482
Net interest income (loss)		44,176		6,836		(1,016)		—		49,996
Provision for credit losses		1,297		—		—		—		1,297
Non-interest income		2,395		21,933		24		—		24,352
Non-interest expense		17,236		16,939		7,851		—		42,026
Income (loss) from continuing operations before taxes		28,038		11,830		(8,843)		—		31,025
Income tax expense		—		—		7,894		—		7,894
Income (loss) from continuing operations		28,038		11,830		(16,737)		—		23,131
Income from discontinued operations		—		—		—		123		123
Net income (loss)	$	28,038	$	11,830	$	(16,737)	$	123	$	23,254

	For the nine months ended September 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	143,549	$	—	$	23,854	$	—	$	167,403
Interest allocation		—		23,854		(23,854)		—		—
Interest expense		723		3,298		4,663		—		8,684
Net interest income (loss)		142,826		20,556		(4,663)		—		158,719
Provision for credit losses		1,484		—		—		—		1,484
Non-interest income		13,864		62,600		59		—		76,523
Non-interest expense		50,844		52,666		21,640		—		125,150
Income (loss) from continuing operations before taxes		104,362		30,490		(26,244)		—		108,608
Income tax expense		—		—		25,195		—		25,195
Income (loss) from continuing operations		104,362		30,490		(51,439)		—		83,413
Income from discontinued operations		—		—		—		248		248
Net income (loss)	$	104,362	$	30,490	$	(51,439)	$	248	$	83,661

	For the nine months ended September 30, 2020
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	125,254	$	—	$	30,589	$	—	$	155,843
Interest allocation		—		30,589		(30,589)		—		—
Interest expense		791		7,381		4,518		—		12,690
Net interest income (loss)		124,463		23,208		(4,518)		—		143,153
Provision for credit losses		5,798		—		—		—		5,798
Non-interest income		(1,622)		62,770		169		—		61,317
Non-interest expense		51,742		51,345		19,977		—		123,064
Income (loss) from continuing operations before taxes		65,301		34,633		(24,326)		—		75,608
Income tax expense		—		—		19,033		—		19,033
Income (loss) from continuing operations		65,301		34,633		(43,359)		—		56,575
Loss from discontinued operations		—		—		—		(662)		(662)
Net income (loss)	$	65,301	$	34,633	$	(43,359)	$	(662)	$	55,913

	September 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Total assets	$	4,706,208	$	39,702	$	1,434,649	$	87,904	$	6,268,463
Total liabilities	$	342,746	$	4,691,158	$	596,582	$	—	$	5,630,486

	December 31, 2020
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Total assets	$	4,491,768	$	32,976	$	1,638,447	$	113,650	$	6,276,841
Total liabilities	$	304,908	$	4,877,674	$	513,095	$	—	$	5,695,677