SEGMENT REPORTING

3 Months Ended

Mar. 31, 2020

NOTE 12 – SEGMENT REPORTING

The Company has the following five reportable segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division and Premium Finance Division. The Banking Division derives its revenues from the delivery of full-service financial services, including commercial loans, consumer loans and deposit accounts. The Retail Mortgage Division derives its revenues from the origination, sales and servicing of one-to-four family residential mortgage loans. The Warehouse Lending Division derives its revenues from the origination and servicing of warehouse lines to other businesses that are secured by underlying one-to-four family residential mortgage loans. The SBA Division derives its revenues from the origination, sales and servicing of SBA loans. The Premium Finance Division derives its revenues from the origination and servicing of commercial insurance premium finance loans.

The Banking, Retail Mortgage, Warehouse Lending, SBA and Premium Finance Divisions are managed as separate business units because of the different products and services they provide. The Company evaluates performance and allocates resources based on profit or loss from operations. There are no material intersegment sales or transfers.

The following tables present selected financial information with respect to the Company’s reportable business segments for the three months ended March 31, 2020 and 2019:


	Three Months Ended March 31, 2020
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium Finance Division		Total
Interest income	$	132,301	$	33,411	$	4,850	$	3,728	$	8,478	$	182,768
Interest expense	13,926		15,655		1,548		1,547		2,147		34,823
Net interest income	118,375		17,756		3,302		2,181		6,331		147,945
Provision for credit losses	35,997		1,997		(9)		(903)		3,965		41,047
Noninterest income	17,773		34,369		960		1,277		—		54,379
Noninterest expense
Salaries and employee benefits	41,621		31,097		210		1,476		1,542		75,946
Equipment and occupancy expenses	10,347		1,504		1		97		79		12,028
Data processing and telecommunications expenses	10,797		986		41		13		117		11,954
Other expenses	30,645		5,875		34		515		1,056		38,125
Total noninterest expense	93,410		39,462		286		2,101		2,794		138,053
Income before income tax expense	6,741		10,666		3,985		2,260		(428)		23,224
Income tax expense	275		2,408		837		475		(93)		3,902
Net income	$	6,466	$	8,258	$	3,148	$	1,785	$	(335)	$	19,322

Total assets	$	13,201,373	$	3,466,766	$	548,837	$	252,668	$	754,904	$	18,224,548
Goodwill	867,449		—		—		—		64,498		931,947
Other intangible assets, net	68,857		—		—		—		17,098		85,955


	Three Months Ended March 31, 2019
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium Finance Division		Total
Interest income	$	97,874	$	12,512	$	4,804	$	2,174	$	7,565	$	124,929
Interest expense	12,835		6,759		2,114		1,088		2,738		25,534
Net interest income	85,039		5,753		2,690		1,086		4,827		99,395
Provision for credit losses	2,058		136		—		231		983		3,408
Noninterest income	14,370		14,290		379		1,730		2		30,771
Noninterest expense
Salaries and employee benefits	27,932		8,207		161		727		1,305		38,332
Equipment and occupancy expenses	7,281		766		1		59		97		8,204
Data processing and telecommunications expenses	7,592		330		30		2		437		8,391
Other expenses	16,956		2,114		68		387		973		20,498
Total noninterest expense	59,761		11,417		260		1,175		2,812		75,425
Income before income tax expense	37,590		8,490		2,809		1,410		1,034		51,333
Income tax expense	8,775		1,613		590		296		154		11,428
Net income	$	28,815	$	6,877	$	2,219	$	1,114	$	880	$	39,905

Total assets	$	9,457,529	$	1,184,097	$	296,357	$	142,769	$	575,523	$	11,656,275
Goodwill	436,810		—		—		—		64,498		501,308
Other intangible assets, net	35,455		—		—		—		20,102		55,557

Net income