Business Segment Information

3 Months Ended

Mar. 31, 2017

Business Segment Information

Business Segment Information

14) Business Segment Information

The following presents the Company’s operating segments. The Company operates through two business segments: Banking segment and Factoring segment. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate and funding costs. The provision for loan loss is allocated based on the segment’s allowance for loan loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding.

	Three Months Ended March 31, 2017
	Banking(1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	21,969	$	2,728	$	24,697
Intersegment interest allocations		260		(260)		—
Total interest expense		871		—		871
Net interest income		21,358		2,468		23,826
Provision for loan losses		311		10		321
Net interest income after provision		21,047		2,458	—	23,505
Noninterest income		2,115		180		2,295
Noninterest expense		13,579		1,749		15,328
Intersegment expense allocations		133		(133)		—
Income before income taxes		9,716		756		10,472
Income tax expense		3,616		318		3,934
Net income	$	6,100	$	438	$	6,538
Total assets	$	2,584,288	$	57,503	$	2,641,791
Loans, net of deferred fees	$	1,470,450	$	42,837	$	1,513,287
Goodwill	$	32,620	$	13,044	$	45,664

(1) Includes the holding company’s results of operations

	Three Months Ended March 31, 2016
	Banking(1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	20,208	$	2,854	$	23,062
Intersegment interest allocations		245		(245)		—
Total interest expense		758		—		758
Net interest income		19,695		2,609		22,304
Provision for loan losses		387		14		401
Net interest income after provision		19,308		2,595		21,903
Noninterest income		2,412		202		2,614
Noninterest expense		13,052		1,633		14,685
Intersegment expense allocations		175		(175)		—
Income before income taxes		8,843		989		9,832
Income tax expense		3,310		416		3,726
Net income	$	5,533	$	573	$	6,106
Total assets	$	2,271,411	$	55,922	$	2,327,333
Loans, net of deferred fees	$	1,353,315	$	41,949	$	1,395,264
Goodwill	$	32,620	$	13,044	$	45,664

(1) Includes the holding company’s results of operations