SEGMENT REPORTING

9 Months Ended

Sep. 30, 2023

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, 2023 and 2022:

	Three Months Ended September 30, 2023
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	228,448	$	54,532	$	19,357	$	4,766	$	23,450	$	330,553
Interest expense	60,853		31,727		13,349		2,804		14,069		122,802
Net interest income	167,595		22,805		6,008		1,962		9,381		207,751
Provision for credit losses	20,833		2,399		(589)		1,677		139		24,459
Noninterest income	26,245		35,691		662		579		4		63,181
Noninterest expense
Salaries and employee benefits	56,226		21,231		924		1,209		2,308		81,898
Occupancy and equipment	11,437		1,182		1		36		89		12,745
Data processing and communications expenses	11,786		1,052		30		32		73		12,973
Other expenses	20,274		12,153		219		157		1,027		33,830
Total noninterest expense	99,723		35,618		1,174		1,434		3,497		141,446
Income before income tax expense	73,284		20,479		6,085		(570)		5,749		105,027
Income tax expense	18,283		4,301		1,278		(120)		1,170		24,912
Net income	$	55,001	$	16,178	$	4,807	$	(450)	$	4,579	$	80,115
Total assets	$	18,369,102	$	4,980,246	$	859,517	$	264,953	$	1,224,012	$	25,697,830
Goodwill	951,148		—		—		—		64,498		1,015,646
Other intangible assets, net	85,648		—		—		—		6,727		92,375

	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

	Nine Months Ended September 30, 2023
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	661,947	$	155,988	$	54,931	$	14,056	$	61,299	$	948,221
Interest expense	147,583		91,739		37,057		7,806		35,093		319,278
Net interest income	514,364		64,249		17,874		6,250		26,206		628,943
Provision for credit losses	108,804		8,530		(372)		1,997		745		119,704
Noninterest income	74,795		106,557		2,546		2,660		22		186,580
Noninterest expense
Salaries and employee benefits	167,864		63,321		2,498		3,834		6,627		244,144
Occupancy and equipment	34,218		3,689		2		113		231		38,253
Data processing and communications expenses	35,481		3,518		120		115		224		39,458
Other expenses	66,940		35,759		644		912		3,160		107,415
Total noninterest expense	304,503		106,287		3,264		4,974		10,242		429,270
Income before income tax expense	175,852		55,989		17,528		1,939		15,241		266,549
Income tax expense	44,443		11,758		3,681		407		3,089		63,378
Net income	$	131,409	$	44,231	$	13,847	$	1,532	$	12,152	$	203,171

	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