Segment Financials

6 Months Ended

Jun. 30, 2022

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, 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 June 30, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	54,715	$	55	$	6,840	$	—	$	61,610
Interest allocation		—		6,840		(6,840)		—		—
Interest expense		227		4,884		1,930		—		7,041
Net interest income (loss)		54,488		2,011		(1,930)		—		54,569
Reversal of credit losses		(1,450)		—		—		—		(1,450)
Non-interest income		5,283		22,412		258		—		27,953
Non-interest expense		17,283		17,021		8,541		—		42,845
Income (loss) before taxes		43,938		7,402		(10,213)		—		41,127
Income tax expense		—		—		10,725		—		10,725
Net income (loss)	$	43,938	$	7,402	$	(20,938)	$	—	$	30,402

	For the three months ended June 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	49,406	$	—	$	7,574	$	—	$	56,980
Interest allocation		—		7,574		(7,574)		—		—
Interest expense		248		1,158		1,505		—		2,911
Net interest income (loss)		49,158		6,416		(1,505)		—		54,069
Reversal of credit losses		(951)		—		—		—		(951)
Non-interest income		4,438		21,391		32		—		25,861
Non-interest expense		17,042		18,328		8,513		—		43,883
Income (loss) from continuing operations before taxes		37,505		9,479		(9,986)		—		36,998
Income tax expense		—		—		7,840		—		7,840
Income (loss) from continuing operations		37,505		9,479		(17,826)		—		29,158
Income from discontinued operations		—		—		—		277		277
Net income (loss)	$	37,505	$	9,479	$	(17,826)	$	277	$	29,435

	For the six months ended June 30, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	104,654	$	55	$	12,755	$	—	$	117,464
Interest allocation		—		12,755		(12,755)		—		—
Interest expense		488		6,008		3,546		—		10,042
Net interest income (loss)		104,166		6,802		(3,546)		—		107,422
Provision for credit losses		3,509		—		—		—		3,509
Non-interest income		9,543		43,085		3,889		—		56,517
Non-interest expense		34,779		34,181		12,237		—		81,197
Income (loss) before taxes		75,421		15,706		(11,894)		—		79,233
Income tax expense		—		—		19,865		—		19,865
Net income (loss)	$	75,421	$	15,706	$	(31,759)	$	—	$	59,368

	For the six months ended June 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	97,236	$	—	$	16,667	$	—	$	113,903
Interest allocation		—		16,667		(16,667)		—		—
Interest expense		484		2,382		3,211		—		6,077
Net interest income (loss)		96,752		14,285		(3,211)		—		107,826
Reversal of credit losses		(129)		—		—		—		(129)
Non-interest income		7,456		42,434		45		—		49,935
Non-interest expense		34,392		36,380		14,994		—		85,766
Income (loss) from continuing operations before taxes		69,945		20,339		(18,160)		—		72,124
Income tax expense		—		—		16,906		—		16,906
Income (loss) from continuing operations		69,945		20,339		(35,066)		—		55,218
Income from discontinued operations		—		—		—		182		182
Net income (loss)	$	69,945	$	20,339	$	(35,066)	$	182	$	55,400

	June 30, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Total assets	$	5,717,071	$	48,352	$	1,354,312	$	—	$	7,119,735
Total liabilities	$	265,777	$	5,280,555	$	916,867	$	—	$	6,463,199

	December 31, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Total assets	$	5,099,388	$	41,593	$	1,698,990	$	3,268	$	6,843,239
Total liabilities	$	329,372	$	5,312,115	$	549,298	$	—	$	6,190,785