Segment Financials

9 Months Ended

Sep. 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. In the third quarter of 2022, the Company began allocating interest expense between segments and adjusted prior period presentation for consistency. 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, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(Dollars in thousands)
Interest income	$	75,041	$	34	$	8,846	$	—	$	83,921
Interest allocation		(17,747)		17,154		593		—		—
Interest expense		940		13,981		4,341		—		19,262
Net interest income		56,354		3,207		5,098		—		64,659
Provision for credit losses		822		—		—		—		822
Non-interest income		1,952		21,440		34		—		23,426
Non-interest expense		18,292		17,348		9,190		—		44,830
Income (loss) before taxes		39,192		7,299		(4,058)		—		42,433
Income tax expense		—		—		11,829		—		11,829
Net income (loss)	$	39,192	$	7,299	$	(15,887)	$	—	$	30,604

	For the three months ended September 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(Dollars in thousands)
Interest income	$	46,313	$	—	$	7,187	$	—	$	53,500
Interest allocation		(4,314)		5,155		(841)		—		—
Interest expense		239		916		1,452		—		2,607
Net interest income		41,760		4,239		4,894		—		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		30,103		8,119		(1,738)		—		36,484
Income tax expense		—		—		8,289		—		8,289
Income (loss) from continuing operations		30,103		8,119		(10,027)		—		28,195
Income from discontinued operations		—		—		—		66		66
Net income (loss)	$	30,103	$	8,119	$	(10,027)	$	66	$	28,261

	For the nine months ended September 30, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(Dollars in thousands)
Interest income	$	179,700	$	89	$	21,596	$	—	$	201,385
Interest allocation		(28,300)		28,565		(265)		—		—
Interest expense		1,429		19,989		7,886		—		29,304
Net interest income		149,971		8,665		13,445		—		172,081
Provision for credit losses		4,331		—		—		—		4,331
Non-interest income		11,496		64,524		3,923		—		79,943
Non-interest expense		53,071		51,529		21,427		—		126,027
Income (loss) before taxes		104,065		21,660		(4,059)		—		121,666
Income tax expense		—		—		31,694		—		31,694
Net income (loss)	$	104,065	$	21,660	$	(35,753)	$	—	$	89,972

	For the nine months ended September 30, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(Dollars in thousands)
Interest income	$	143,549	$	—	$	23,854	$	—	$	167,403
Interest allocation		(12,713)		15,438		(2,725)		—		—
Interest expense		723		3,298		4,663		—		8,684
Net interest income		130,113		12,140		16,466		—		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		91,649		22,074		(5,115)		—		108,608
Income tax expense		—		—		25,195		—		25,195
Income (loss) from continuing operations		91,649		22,074		(30,310)		—		83,413
Income from discontinued operations		—		—		—		248		248
Net income (loss)	$	91,649	$	22,074	$	(30,310)	$	248	$	83,661

	September 30, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(Dollars in thousands)
Total assets	$	6,061,700	$	59,561	$	1,655,813	$	—	$	7,777,074
Total liabilities	$	368,932	$	5,724,483	$	1,019,921	$	—	$	7,113,336

	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