Business Segment Information

12 Months Ended

Dec. 31, 2022

Business Segment Information

Business Segment Information

20) 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 credit losses on loans is allocated based on the segment’s allowance for credit losses on loans 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, 2022
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	176,010	$	12,818	$	188,828
Intersegment interest allocations		1,441		(1,441)		—
Total interest expense		8,948		—		8,948
Net interest income		168,503		11,377		179,880
Provision for (recapture of) credit losses on loans		526		240		766
Net interest income after provision		167,977		11,137		179,114
Noninterest income		9,722		389		10,111
Noninterest expense		88,531		6,328		94,859
Intersegment expense allocations		524		(524)		—
Income before income taxes		89,692		4,674		94,366
Income tax expense		26,429		1,382		27,811
Net income	$	63,263	$	3,292	$	66,555
Total assets	$	5,062,943	$	94,637	$	5,157,580
Loans, net of deferred fees	$	3,219,287	$	79,263	$	3,298,550
Goodwill	$	154,587	$	13,044	$	167,631

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

	Year Ended December 31, 2021
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	141,772	$	11,484	$	153,256
Intersegment interest allocations		868		(868)		—
Total interest expense		7,131		—		7,131
Net interest income		135,509		10,616		146,125
Provision (recapture) for credit losses on loans		(2,926)		(208)		(3,134)
Net interest income after provision		138,435		10,824		149,259
Noninterest income		8,651		1,037		9,688
Noninterest expense		87,466		5,611		93,077
Intersegment expense allocations		410		(410)		—
Income before income taxes		60,030		5,840		65,870
Income tax expense		16,444		1,726		18,170
Net income	$	43,586	$	4,114	$	47,700
Total assets	$	5,424,350	$	75,059	$	5,499,409
Loans, net of deferred fees	$	3,034,097	$	53,229	$	3,087,326
Goodwill	$	154,587	$	13,044	$	167,631

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

	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		9,362		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.