Business Segment Information

6 Months Ended

Jun. 30, 2023

Business Segment Information

Business Segment Information

17) 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 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 June 30, 2023
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	54,494	$	3,847	$	58,341
Intersegment interest allocations		524		(524)		—
Total interest expense		12,048		—		12,048
Net interest income		42,970		3,323		46,293
Provision for (recapture of) credit losses on loans		409		(149)		260
Net interest income after provision		42,561		3,472		46,033
Noninterest income		2,017		57		2,074
Noninterest expense		23,329		1,662		24,991
Intersegment expense allocations		152		(152)		—
Income before income taxes		21,401		1,715		23,116
Income tax expense		6,206		507		6,713
Net income	$	15,195	$	1,208	$	16,403
Total assets	$	5,227,310	$	84,527	$	5,311,837
Loans, net of deferred fees	$	3,227,905	$	60,879	$	3,288,784
Goodwill	$	154,587	$	13,044	$	167,631

	Three Months Ended June 30, 2022
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	40,427	$	3,129	$	43,556
Intersegment interest allocations		321		(321)		—
Total interest expense		1,677		—		1,677
Net interest income		39,071		2,808		41,879
Provision (recapture) for credit losses on loans		(328)		147		(181)
Net interest income after provision		39,399		2,661		42,060
Noninterest income		1,974		124		2,098
Noninterest expense		21,559		1,631		23,190
Intersegment expense allocations		128		(128)		—
Income before income taxes		19,942		1,026		20,968
Income tax expense		5,844		303		6,147
Net income	$	14,098	$	723	$	14,821
Total assets	$	5,280,953	$	75,888	$	5,356,841
Loans, net of deferred fees	$	3,019,076	$	63,376	$	3,082,452
Goodwill	$	154,587	$	13,044	$	167,631

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

	Six Months Ended June 30, 2023
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	106,767	$	7,848	$	114,615
Intersegment interest allocations		1,229		(1,229)		—
Total interest expense		19,064		—		19,064
Net interest income		88,932		6,619		95,551
Provision for (recapture of) credit losses on loans		553		(261)		292
Net interest income after provision		88,379		6,880		95,259
Noninterest income		4,699		141		4,840
Noninterest expense		47,057		3,335		50,392
Intersegment expense allocations		326		(326)		—
Income before income taxes		46,347		3,360		49,707
Income tax expense		13,394		993		14,387
Net income	$	32,953	$	2,367	$	35,320
Total assets	$	5,227,310	$	84,527	$	5,311,837
Loans, net of deferred fees	$	3,227,905	$	60,879	$	3,288,784
Goodwill	$	154,587	$	13,044	$	167,631

	Six Months Ended June 30, 2022
	Banking (1)		Factoring		Consolidated
	(Dollars in thousands)
Interest income	$	77,540	$	5,922	$	83,462
Intersegment interest allocations		558		(558)		—
Total interest expense		3,362		—		3,362
Net interest income		74,736		5,364		80,100
Provision (recapture) for credit losses on loans		(867)		119		(748)
Net interest income after provision		75,603		5,245		80,848
Noninterest income		4,372		186		4,558
Noninterest expense		43,326		3,116		46,442
Intersegment expense allocations		242		(242)		—
Income before income taxes		36,891		2,073		38,964
Income tax expense		10,664		613		11,277
Net income	$	26,227	$	1,460	$	27,687
Total assets	$	5,280,953	$	75,888	$	5,356,841
Loans, net of deferred fees	$	3,019,076	$	63,376	$	3,082,452
Goodwill	$	154,587	$	13,044	$	167,631

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