Business Segment Information

12 Months Ended

Dec. 31, 2020

Business Segment Information

Business Segment Information

21) 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.

	Year Ended December 31, 2020
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	139,744	$	10,727	$	150,471
Intersegment interest allocations		923		(923)		—
Total interest expense		8,581		—		8,581
Net interest income		132,086		9,804		141,890
Provision for credit losses on loans		12,928		305		13,233
Net interest income after provision		119,158		9,499		128,657
Noninterest income		9,277		645		9,922
Noninterest expense (2)		83,149		6,362		89,511
Intersegment expense allocations		404		(404)		—
Income before income taxes		45,690		3,378		49,068
Income tax expense		12,770		999		13,769
Net income	$	32,920	$	2,379	$	35,299
Total assets	$	4,567,239	$	66,875	$	4,634,114
Loans, net of deferred fees	$	2,572,060	$	47,201	$	2,619,261
Goodwill	$	154,587	$	13,044	$	167,631

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

(2) The banking segment’s noninterest expense includes merger-related costs of $2,601,000.

	Year Ended December 31, 2019
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	130,971	$	11,688	$	142,659
Intersegment interest allocations		1,182		(1,182)		—
Total interest expense		10,847		—		10,847
Net interest income		121,306		10,506		131,812
Provision for loan losses		517		329		846
Net interest income after provision		120,789		10,177		130,966
Noninterest income		9,643		601		10,244
Noninterest expense (2)		78,159		6,739		84,898
Intersegment expense allocations		547		(547)		—
Income before income taxes		52,820		3,492		56,312
Income tax expense		14,819		1,032		15,851
Net income	$	38,001	$	2,460	$	40,461
Total assets	$	4,045,801	$	63,662	$	4,109,463
Loans, net of deferred fees	$	2,487,864	$	45,980	$	2,533,844
Goodwill	$	154,376	$	13,044	$	167,420

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

(2) The banking segment’s noninterest expense includes merger-related costs of $11,080,000.

	Year Ended December 31, 2018
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	115,147	$	14,698	$	129,845
Intersegment interest allocations		1,856		(1,856)		—
Total interest expense		7,822		—		7,822
Net interest income		109,181		12,842		122,023
Provision for loan losses		7,224		197		7,421
Net interest income after provision		101,957		12,645		114,602
Noninterest income		8,662		912		9,574
Noninterest expense (2)		69,164		6,357		75,521
Intersegment expense allocations		753		(753)		—
Income before income taxes		42,208		6,447		48,655
Income tax expense		11,418		1,906		13,324
Net income	$	30,790	$	4,541	$	35,331
Total assets	$	3,028,721	$	67,841	$	3,096,562
Loans, net of deferred fees	$	1,832,815	$	53,590	$	1,886,405
Goodwill	$	70,709	$	13,044	$	83,753

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

(2) The banking segment’s noninterest expense includes merger-related costs of $9,167,000.