Segment Financials

3 Months Ended

Mar. 31, 2022

Segment Financials [Abstract]

Segment Financials

Note 15. Segment Financials

The Company performed a strategic evaluation of its businesses in the third quarter of 2014. As a result of the evaluation, the Company decided to discontinue its commercial lending operations, as described in Note 16, Discontinued Operations. The shift from a traditional bank balance sheet led the Company to evaluate its continuing operations. Based on the continuing operations of the Company, it was determined that there would be four segments of the business: specialty finance, payments, corporate and discontinued operations. The chief decision maker for these segments is the Chief Executive Officer. Specialty finance includes the origination of non-SBA CRE loans, SBA loans, direct lease financing and security-backed lines of credit, cash value insurance policy-backed lines of credit and deposits generated by those business lines. Payments include prepaid card accounts, card payments, ACH processing and deposits generated by those business lines. Corporate includes the Company’s investment portfolio, corporate overhead and non-allocated expenses. Investment income is reallocated to the payments segment. These operating segments reflect the way the Company views its current operations.

The following tables provide segment information for the periods indicated:

	For the three months ended March 31, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	49,939	$	—	$	5,915	$	—	$	55,854
Interest allocation		—		5,915		(5,915)		—		—
Interest expense		261		1,124		1,616		—		3,001
Net interest income (loss)		49,678		4,791		(1,616)		—		52,853
Provision for credit losses		1,507		—		—		—		1,507
Non-interest income		4,260		20,673		179		—		25,112
Non-interest expense		17,496		17,160		3,696		—		38,352
Income (loss) before taxes		34,935		8,304		(5,133)		—		38,106
Income tax expense		—		—		9,140		—		9,140
Net income (loss)	$	34,935	$	8,304	$	(14,273)	$	—	$	28,966

	For the three months ended March 31, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Interest income	$	47,830	$	—	$	9,093	$	—	$	56,923
Interest allocation		—		9,093		(9,093)		—		—
Interest expense		237		1,223		1,706		—		3,166
Net interest income (loss)		47,593		7,870		(1,706)		—		53,757
Provision for credit losses		822		—		—		—		822
Non-interest income		3,019		21,043		12		—		24,074
Non-interest expense		17,350		18,053		6,480		—		41,883
Income (loss) from continuing operations before taxes		32,440		10,860		(8,174)		—		35,126
Income tax expense		—		—		9,066		—		9,066
Income (loss) from continuing operations		32,440		10,860		(17,240)		—		26,060
Loss from discontinued operations		—		—		—		(95)		(95)
Net income (loss)	$	32,440	$	10,860	$	(17,240)	$	(95)	$	25,965

	March 31, 2022
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Total assets	$	5,316,997	$	49,164	$	1,716,499	$	—	$	7,082,660
Total liabilities	$	353,831	$	5,567,105	$	509,429	$	—	$	6,430,365

	December 31, 2021
	Specialty finance		Payments		Corporate		Discontinued operations		Total
		(in thousands)
Total assets	$	5,099,388	$	41,593	$	1,698,990	$	3,268	$	6,843,239
Total liabilities	$	329,372	$	5,312,115	$	549,298	$	—	$	6,190,785