SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

NOTE 12 – SEGMENT REPORTING

The Company has the following five reportable segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division and Premium Finance Division. The Banking Division derives its revenues from the delivery of full-service financial services, including commercial loans, consumer loans and deposit accounts. The Retail Mortgage Division derives its revenues from the origination, sales and servicing of one-to-four family residential mortgage loans. The Warehouse Lending Division derives its revenues from the origination and servicing of warehouse lines to other businesses that are secured by underlying one-to-four family residential mortgage loans. The SBA Division derives its revenues from the origination, sales and servicing of SBA loans. The Premium Finance Division derives its revenues from the origination and servicing of commercial insurance premium finance loans.

The Banking, Retail Mortgage, Warehouse Lending, SBA and Premium Finance Divisions are managed as separate business units because of the different products and services they provide. The Company evaluates performance and allocates resources based on profit or loss from operations. There are no material intersegment sales or transfers.

The following tables present selected financial information with respect to the Company’s reportable business segments for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30, 2020
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium Finance Division		Total
Interest income	$	128,653	$	34,714	$	5,285	$	8,757	$	7,609	$	185,018
Interest expense	8,323		10,412		259		1,723		487		21,204
Net interest income	120,330		24,302		5,026		7,034		7,122		163,814
Provision for credit losses	86,805		423		403		2,322		(1,792)		88,161
Noninterest income	14,468		104,195		727		1,570		—		120,960
Noninterest expense
Salaries and employee benefits	40,423		50,003		209		2,612		1,921		95,168
Equipment and occupancy expenses	11,679		1,953		1		97		77		13,807
Data processing and telecommunications expenses	8,919		1,406		55		15		119		10,514
Other expenses	27,997		6,949		88		359		886		36,279
Total noninterest expense	89,018		60,311		353		3,083		3,003		155,768
Income before income tax expense	(41,025)		67,763		4,997		3,199		5,911		40,845
Income tax expense	(8,582)		14,231		1,049		671		1,240		8,609
Net income	$	(32,443)	$	53,532	$	3,948	$	2,528	$	4,671	$	32,236

Total assets	$	13,121,679	$	3,905,683	$	753,668	$	1,310,077	$	781,522	$	19,872,629
Goodwill	863,507		—		—		—		64,498		928,005
Other intangible assets, net	64,007		—		—		—		16,347		80,354


	Three Months Ended June 30, 2019
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium Finance Division		Total
Interest income	$	98,892	$	13,633	$	5,550	$	2,287	$	8,666	$	129,028
Interest expense	14,137		6,066		2,563		1,105		3,506		27,377
Net interest income	84,755		7,567		2,987		1,182		5,160		101,651
Provision for credit losses	2,306		609		—		178		1,575		4,668
Noninterest income	14,830		18,070		450		1,883		3		35,236
Noninterest expense
Salaries and employee benefits	24,228		11,886		162		735		1,320		38,331
Equipment and occupancy expenses	7,034		670		1		65		64		7,834
Data processing and telecommunications expenses	7,635		394		38		3		318		8,388
Other expenses	22,728		2,385		75		359		1,151		26,698
Total noninterest expense	61,625		15,335		276		1,162		2,853		81,251
Income before income tax expense	35,654		9,693		3,161		1,725		735		50,968
Income tax expense	8,691		2,170		664		362		177		12,064
Net income	$	26,963	$	7,523	$	2,497	$	1,363	$	558	$	38,904

Total assets	$	9,208,685	$	1,306,063	$	462,780	$	211,433	$	700,375	$	11,889,336
Goodwill	436,642		—		—		—		64,498		501,140
Other intangible assets, net	33,086		—		—		—		19,351		52,437


	Six Months Ended June 30, 2020
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium Finance Division		Total
Interest income	$	260,954	$	68,125	$	10,135	$	12,485	$	16,087	$	367,786
Interest expense	22,249		26,067		1,807		3,270		2,634		56,027
Net interest income	238,705		42,058		8,328		9,215		13,453		311,759
Provision for credit losses	122,802		2,420		394		1,419		2,173		129,208
Noninterest income	32,241		138,564		1,687		2,847		—		175,339
Noninterest expense
Salaries and employee benefits	82,044		81,100		419		4,088		3,463		171,114
Equipment and occupancy expenses	22,026		3,457		2		194		156		25,835
Data processing and telecommunications expenses	19,716		2,392		96		28		236		22,468
Other expenses	58,642		12,824		122		874		1,942		74,404
Total noninterest expense	182,428		99,773		639		5,184		5,797		293,821
Income before income tax expense	(34,284)		78,429		8,982		5,459		5,483		64,069
Income tax expense	(8,307)		16,639		1,886		1,146		1,147		12,511
Net income	$	(25,977)	$	61,790	$	7,096	$	4,313	$	4,336	$	51,558


	Six Months Ended June 30, 2019
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium Finance Division		Total
Interest income	$	196,766	$	26,145	$	10,354	$	4,461	$	16,231	$	253,957
Interest expense	26,972		12,825		4,677		2,193		6,244		52,911
Net interest income	169,794		13,320		5,677		2,268		9,987		201,046
Provision for credit losses	4,364		745		—		409		2,558		8,076
Noninterest income	29,200		32,360		829		3,613		5		66,007
Noninterest expense
Salaries and employee benefits	52,160		20,093		323		1,462		2,625		76,663
Equipment and occupancy expenses	14,315		1,436		2		124		161		16,038
Data processing and telecommunications expenses	15,227		724		68		5		755		16,779
Other expenses	39,684		4,499		143		746		2,124		47,196
Total noninterest expense	121,386		26,752		536		2,337		5,665		156,676
Income before income tax expense	73,244		18,183		5,970		3,135		1,769		102,301
Income tax expense	17,466		3,783		1,254		658		331		23,492
Net income	$	55,778	$	14,400	$	4,716	$	2,477	$	1,438	$	78,809