SEGMENT REPORTING

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 9 – 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 and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30, 2022
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	164,095	$	40,389	$	12,490	$	3,919	$	13,409	$	234,302
Interest expense	(10,412)		21,106		5,511		1,495		3,621		21,321
Net interest income	174,507		19,283		6,979		2,424		9,788		212,981
Provision for credit losses	10,551		9,043		(1,836)		52		(158)		17,652
Noninterest income	23,269		38,584		1,516		1,946		9		65,324
Noninterest expense
Salaries and employee benefits	48,599		25,813		1,055		1,412		1,818		78,697
Occupancy and equipment	11,357		1,460		1		82		83		12,983
Data processing and communications expenses	10,779		1,082		43		29		82		12,015
Other expenses	22,974		11,641		209		100		959		35,883
Total noninterest expense	93,709		39,996		1,308		1,623		2,942		139,578
Income before income tax expense	93,516		8,828		9,023		2,695		7,013		121,075
Income tax expense	22,706		1,854		1,895		566		1,499		28,520
Net income	$	70,810	$	6,974	$	7,128	$	2,129	$	5,514	$	92,555
Total assets	$	16,980,520	$	4,402,221	$	955,711	$	259,427	$	1,215,778	$	23,813,657
Goodwill	958,573		—		—		—		64,498		1,023,071
Other intangible assets, net	101,225		—		—		—		9,678		110,903

	Three Months Ended September 30, 2021
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	110,708	$	33,390	$	9,093	$	11,986	$	7,869	$	173,046
Interest expense	(2,816)		12,101		381		1,287		432		11,385
Net interest income	113,524		21,289		8,712		10,699		7,437		161,661
Provision for credit losses	(9,578)		1,678		(291)		(1,104)		(380)		(9,675)
Noninterest income	17,896		55,555		1,037		2,070		4		76,562
Noninterest expense
Salaries and employee benefits	40,020		36,373		264		1,320		1,694		79,671
Occupancy and equipment	10,196		1,590		—		116		77		11,979
Data processing and communications expenses	9,159		1,357		59		18		88		10,681
Other expenses	21,723		11,675		200		370		897		34,865
Total noninterest expense	81,098		50,995		523		1,824		2,756		137,196
Income before income tax expense	59,900		24,171		9,517		12,049		5,065		110,702
Income tax expense	17,784		5,076		1,999		2,530		1,633		29,022
Net income	$	42,116	$	19,095	$	7,518	$	9,519	$	3,432	$	81,680
Total assets	$	16,070,583	$	4,247,967	$	740,809	$	529,044	$	944,738	$	22,533,141
Goodwill	863,507		—		—		—		64,498		928,005
Other intangible assets, net	47,768		—		—		—		12,628		60,396

	Nine Months Ended September 30, 2022
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	435,229	$	111,276	$	27,779	$	15,456	$	30,504	$	620,244
Interest expense	(25,145)		51,919		7,653		3,223		5,705		43,355
Net interest income	460,374		59,357		20,126		12,233		24,799		576,889
Provision for credit losses	25,952		15,129		(1,191)		(614)		(469)		38,807
Noninterest income	68,102		158,028		3,958		5,963		25		236,076
Noninterest expense
Salaries and employee benefits	144,527		88,646		1,546		3,999		5,805		244,523
Occupancy and equipment	33,599		4,337		3		262		255		38,456
Data processing and communications expenses	32,872		3,377		138		86		269		36,742
Other expenses	64,142		37,098		639		1,019		2,975		105,873
Total noninterest expense	275,140		133,458		2,326		5,366		9,304		425,594
Income before income tax expense	227,384		68,798		22,949		13,444		15,989		348,564
Income tax expense	58,822		14,448		4,820		2,823		3,332		84,245
Net income	$	168,562	$	54,350	$	18,129	$	10,621	$	12,657	$	264,319

	Nine Months Ended September 30, 2021
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	332,347	$	97,674	$	28,408	$	44,070	$	22,248	$	524,747
Interest expense	(4,663)		34,868		1,070		3,854		1,128		36,257
Net interest income	337,010		62,806		27,338		40,216		21,120		488,490
Provision for credit losses	(37,431)		2,772		(591)		(2,258)		(616)		(38,124)
Noninterest income	50,805		222,250		3,350		7,358		12		283,775
Noninterest expense
Salaries and employee benefits	120,557		131,009		872		3,639		5,084		261,161
Occupancy and equipment	29,366		4,619		2		354		231		34,572
Data processing and communications expenses	29,640		4,338		176		19		269		34,442
Other expenses	60,196		27,502		263		949		2,670		91,580
Total noninterest expense	239,759		167,468		1,313		4,961		8,254		421,755
Income before income tax expense	185,487		114,816		29,966		44,871		13,494		388,634
Income tax expense	50,436		24,111		6,293		9,423		3,402		93,665
Net income	$	135,051	$	90,705	$	23,673	$	35,448	$	10,092	$	294,969