Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting

Schedule of segment reporting information

Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the three months ended June 30, 2020 are summarized in the below table.

					SBA Originations,		Residential
	Loan		SBC		Acquisitions,		Mortgage		Corporate-
(In Thousands)	Acquisitions		Originations		and Servicing		Banking		Other		Consolidated
Interest income	$	14,977	$	37,497	$	8,808	$	1,929	$	—	$	63,211
Interest expense		(10,654)		(23,507)		(6,839)		(2,036)		(372)		(43,408)
Net interest income before provision for loan losses	$	4,323	$	13,990	$	1,969	$	(107)	$	(372)	$	19,803
Provision for loan losses		(1,965)		5,821		(2,765)		(500)		—		591
Net interest income after provision for loan losses	$	2,358	$	19,811	$	(796)	$	(607)	$	(372)	$	20,394
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	—	$	80,564	$	—	$	80,564
Net realized gain on financial instruments		(396)		6,232		1,602		—		—		7,438
Net unrealized gain on financial instruments		(1,016)		(716)		31		(12,043)		—		(13,744)
Other income		1,419		1,439		28,674		46		16		31,594
Servicing income		172		399		2,393		6,018		—		8,982
Income on purchased future receivables, net of allowance for doubtful accounts		5,586		—		—		—		—		5,586
Income from unconsolidated joint ventures		507		—		—		—		—		507
Total non-interest income	$	6,272	$	7,354	$	32,700	$	74,585	$	16	$	120,927
Non-interest expense
Employee compensation and benefits		(2,638)		(4,689)		(3,485)		(15,843)		(633)		(27,288)
Allocated employee compensation and benefits from related party		(125)		—		—		—		(1,125)		(1,250)
Variable expenses on residential mortgage banking activities		—		—		—		(36,446)		—		(36,446)
Professional fees		(251)		(104)		(138)		(271)		(1,155)		(1,919)
Management fees – related party		—		—		—		—		(2,666)		(2,666)
Incentive fees – related party		—		—		—		—		(3,506)		(3,506)
Loan servicing expense		(1,500)		(1,711)		(247)		(6,861)		(8)		(10,327)
Merger related expenses		—		—		—		—		(11)		(11)
Other operating expenses		(4,072)		(4,429)		(6,530)		(1,973)		(741)		(17,745)
Total non-interest expense	$	(8,586)	$	(10,933)	$	(10,400)	$	(61,394)	$	(9,845)	$	(101,158)
Net income (loss) before provision for income taxes	$	44	$	16,232	$	21,504	$	12,584	$	(10,201)	$	40,163
Total assets	$	1,125,035	$	2,620,406	$	804,355	$	568,353	$	342,783	$	5,460,932

Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the six months ended June 30, 2020 are summarized in the below table.

					SBA Originations,		Residential
			SBC		Acquisitions,		Mortgage		Corporate-
(In Thousands)	Acquisitions		Originations		and Servicing		Banking		Other		Consolidated
Interest income	$	31,470	$	76,766	$	21,279	$	3,247	$	—	$	132,762
Interest expense		(21,859)		(49,134)		(15,352)		(3,621)		(372)		(90,338)
Net interest income before provision for loan losses	$	9,611	$	27,632	$	5,927	$	(374)	$	(372)	$	42,424
Provision for loan losses		(7,688)		(24,007)		(7,019)		(500)		—		(39,214)
Net interest income after provision for loan losses	$	1,923	$	3,625	$	(1,092)	$	(874)	$	(372)	$	3,210
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	—	$	117,233	$	—	$	117,233
Net realized gain (loss) on financial instruments		(1,135)		9,881		5,864		—		—		14,610
Net unrealized gain (loss) on financial instruments		(10,439)		(7,207)		(1,051)		(28,481)		—		(47,178)
Servicing income		527		931		3,467		12,154		—		17,079
Income on purchased future receivables, net of allowance for doubtful accounts		9,069		—		—		—		—		9,069
Loss from unconsolidated joint ventures		(3,030)		—		—		—		—		(3,030)
Other income		3,755		2,722		28,969		106		115		35,667
Total non-interest income (loss)	$	(1,253)	$	6,327	$	37,249	$	101,012	$	115	$	143,450
Non-interest expense
Employee compensation and benefits	$	(5,471)	$	(7,399)	$	(7,395)	$	(24,584)	$	(1,375)	$	(46,224)
Allocated employee compensation and benefits from related party		(250)		—		—		—		(2,250)		(2,500)
Variable expenses on residential mortgage banking activities		—		—		—		(56,575)		—		(56,575)
Professional fees		(486)		(442)		(427)		(558)		(2,562)		(4,475)
Management fees – related party		—		—		—		—		(5,227)		(5,227)
Incentive fees – related party		—		—		—		—		(3,506)		(3,506)
Loan servicing expense		(2,866)		(3,291)		(582)		(9,119)		(40)		(15,898)
Merger related expenses		—		—		—		—		(58)		(58)
Other operating expenses		(10,317)		(7,886)		(8,089)		(3,758)		(1,437)		(31,487)
Total non-interest expense	$	(19,390)	$	(19,018)	$	(16,493)	$	(94,594)	$	(16,455)	$	(165,950)
Net loss before provision for income taxes	$	(18,720)	$	(9,066)	$	19,664	$	5,544	$	(16,712)	$	(19,290)
Total assets	$	1,125,035	$	2,620,406	$	804,355	$	568,353	$	342,783	$	5,460,932

Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the three months ended June 30, 2019 are summarized in the below table.

					SBA Originations,		Residential
	Loan		SBC		Acquisitions,		Mortgage		Corporate-
(In Thousands)	Acquisitions		Originations		and Servicing		Banking		Other		Consolidated
Interest income	$	18,208	$	30,639	$	7,124	$	1,063	$	—	$	57,034
Interest expense		(10,602)		(21,401)		(2,300)		(1,450)		—		(35,753)
Net interest income before provision for loan losses	$	7,606	$	9,238	$	4,824	$	(387)	$	—	$	21,281
Provision for loan losses		(544)		(350)		(454)		—		—		(1,348)
Net interest income after provision for loan losses	$	7,062	$	8,888	$	4,370	$	(387)	$	—	$	19,933
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	—	$	21,021	$	—	$	21,021
Net realized gain on financial instruments		453		1,627		4,175		—		—		6,255
Net unrealized gain (loss) on financial instruments		(661)		(76)		71		(6,340)		—		(7,006)
Other income		957		1,661		39		85		50		2,792
Servicing income		—		461		1,818		5,532		—		7,811
Income from unconsolidated joint ventures		2,083		—		—		—		—		2,083
Total non-interest income	$	2,832	$	3,673	$	6,103	$	20,298	$	50	$	32,956
Non-interest expense
Employee compensation and benefits	$	(26)	$	(1,774)	$	(4,424)	$	(5,445)	$	(840)		(12,509)
Allocated employee compensation and benefits from related party		(125)		—		—		—		(1,125)		(1,250)
Variable expenses on residential mortgage banking activities		—		—		—		(13,501)		—		(13,501)
Professional fees		(47)		(313)		(169)		(229)		(828)		(1,586)
Management fees – related party		—		—		—		—		(2,495)		(2,495)
Incentive fees – related party		—		—		—		—		—		—
Loan servicing (expense) income		(1,117)		(1,475)		(260)		(1,677)		(42)		(4,571)
Merger related expenses		—		—		—		—		(603)		(603)
Other operating expenses		(882)		(2,712)		(2,076)		(2,054)		(361)		(8,085)
Total non-interest expense	$	(2,197)	$	(6,274)	$	(6,929)	$	(22,906)	$	(6,294)	$	(44,600)
Net income (loss) before provision for income taxes	$	7,697	$	6,287	$	3,544	$	(2,995)	$	(6,244)	$	8,289
Total assets	$	1,158,351	$	2,055,751	$	261,326	$	303,465	$	61,430	$	3,840,323

Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the six months ended June 30, 2019 are summarized in the below table.

					SBA Originations,		Residential
	Loan		SBC		Acquisitions,		Mortgage		Corporate-
(In Thousands)	Acquisitions		Originations		and Servicing		Banking		Other		Consolidated
Interest income	$	28,881	$	58,828	$	16,233	$	1,845	$	—	$	105,787
Interest expense		(18,307)		(42,068)		(8,790)		(2,364)		—		(71,529)
Net interest income before provision for loan losses	$	10,574	$	16,760	$	7,443	$	(519)	$	—	$	34,258
Provision for loan losses		(677)		(309)		(880)		—		—		(1,866)
Net interest income after provision for loan losses	$	9,897	$	16,451	$	6,563	$	(519)	$	—	$	32,392
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	—	$	35,608	$	—	$	35,608
Net realized gain (loss) on financial instruments		404		5,167		7,966		—		—		13,537
Net unrealized gain (loss) on financial instruments		(680)		734		(504)		(13,468)		—		(13,918)
Servicing income		1		897		2,833		10,832		—		14,563
Income on unconsolidated joint ventures		5,012		—		—		—		—		5,012
Other income		1,025		2,447		53		102		65		3,692
Gain on bargain purchase		—		—		—		—		30,728		30,728
Total non-interest income	$	5,762	$	9,245	$	10,348	$	33,074	$	30,793	$	89,222
Non-interest expense
Employee compensation and benefits	$	(27)	$	(4,034)	$	(8,192)	$	(10,040)	$	(1,664)	$	(23,957)
Allocated employee compensation and benefits from related party		(210)		—		—		—		(1,893)		(2,103)
Variable expenses on residential mortgage banking activities		—		—		—		(22,677)		—		(22,677)
Professional fees		(217)		(614)		(356)		(465)		(1,763)		(3,415)
Management fees – related party		—		—		—		—		(4,492)		(4,492)
Loan servicing expense		(1,918)		(2,690)		(117)		(3,417)		(77)		(8,219)
Merger related expenses		—		—		—		—		(6,070)		(6,070)
Other operating expenses		(1,304)		(4,829)		(3,126)		(4,127)		(1,561)		(14,947)
Total non-interest expense	$	(3,676)	$	(12,167)	$	(11,791)	$	(40,726)	$	(17,520)	$	(85,880)
Net income (loss) before provision for income taxes	$	11,983	$	13,529	$	5,120	$	(8,171)	$	13,273	$	35,734
Total assets	$	1,158,351	$	2,055,751	$	261,326	$	303,465	$	61,430	$	3,840,323