SEGMENT REPORTING

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

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 nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30, 2020
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	123,593	$	31,040	$	6,844	$	10,958	$	7,499	$	179,934
Interest expense	4,031		10,647		298		1,992		428		17,396
Net interest income	119,562		20,393		6,546		8,966		7,071		162,538
Provision for credit losses	487		15,051		495		4,297		(2,648)		17,682
Noninterest income	15,265		137,583		1,064		5,106		—		159,018
Noninterest expense
Salaries and employee benefits	39,718		53,500		266		1,572		1,642		96,698
Equipment and occupancy expenses	11,955		1,676		1		97		76		13,805
Data processing and telecommunications expenses	9,716		2,349		73		4		84		12,226
Other expenses	21,517		7,889		28		595		934		30,963
Total noninterest expense	82,906		65,414		368		2,268		2,736		153,692
Income before income tax expense	51,434		77,511		6,747		7,507		6,983		150,182
Income tax expense	13,453		16,112		1,431		1,577		1,464		34,037
Net income	$	37,981	$	61,399	$	5,316	$	5,930	$	5,519	$	116,145
Total assets	$	13,098,562	$	3,632,999	$	1,002,027	$	1,338,794	$	801,469	$	19,873,851
Goodwill	863,507		—		—		—		64,498		928,005
Other intangible assets, net	60,568		—		—		—		15,596		76,164

	Three Months Ended September 30, 2019
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	141,630	$	27,141	$	5,786	$	4,366	$	9,438	$	188,361
Interest expense	17,368		14,132		2,617		1,793		3,682		39,592
Net interest income	124,262		13,009		3,169		2,573		5,756		148,769
Provision for credit losses	3,549		1,490		—		(15)		965		5,989
Noninterest income	21,173		52,493		560		2,766		1		76,993
Noninterest expense
Salaries and employee benefits	39,794		34,144		286		1,985		1,424		77,633
Equipment and occupancy expenses	10,750		1,686		2		66		135		12,639
Data processing and telecommunications expenses	9,551		660		41		22		98		10,372
Other expenses	87,059		3,484		27		503		980		92,053
Total noninterest expense	147,154		39,974		356		2,576		2,637		192,697
Income (loss) before income tax expense	(5,268)		24,038		3,373		2,778		2,155		27,076
Income tax expense (benefit)	(1,269)		5,048		708		584		621		5,692
Net income (loss)	$	(3,999)	$	18,990	$	2,665	$	2,194	$	1,534	$	21,384
Total assets	$	13,031,554	$	3,156,895	$	564,297	$	262,719	$	748,812	$	17,764,277
Goodwill	846,990		—		—		—		64,498		911,488
Other intangible assets, net	78,728		—		—		—		18,600		97,328

	Nine Months Ended September 30, 2020
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	384,547	$	99,165	$	16,979	$	23,443	$	23,586	$	547,720
Interest expense	26,280		36,714		2,105		5,262		3,062		73,423
Net interest income	358,267		62,451		14,874		18,181		20,524		474,297
Provision for credit losses	123,289		17,471		889		5,716		(475)		146,890
Noninterest income	47,506		276,147		2,751		7,953		—		334,357
Noninterest expense
Salaries and employee benefits	121,762		134,600		685		5,660		5,105		267,812
Equipment and occupancy expenses	33,981		5,133		3		291		232		39,640
Data processing and telecommunications expenses	29,432		4,741		169		32		320		34,694
Other expenses	80,159		20,713		150		1,469		2,876		105,367
Total noninterest expense	265,334		165,187		1,007		7,452		8,533		447,513
Income before income tax expense	17,150		155,940		15,729		12,966		12,466		214,251
Income tax expense	5,146		32,751		3,317		2,723		2,611		46,548
Net income	$	12,004	$	123,189	$	12,412	$	10,243	$	9,855	$	167,703

	Nine Months Ended September 30, 2019
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	338,396	$	53,286	$	16,140	$	8,827	$	25,669	$	442,318
Interest expense	44,340		26,957		7,294		3,986		9,926		92,503
Net interest income	294,056		26,329		8,846		4,841		15,743		349,815
Provision for credit losses	7,913		2,235		—		394		3,523		14,065
Noninterest income	50,373		84,853		1,389		6,379		6		143,000
Noninterest expense
Salaries and employee benefits	91,954		54,237		609		3,447		4,049		154,296
Equipment and occupancy expenses	25,065		3,122		4		190		296		28,677
Data processing and telecommunications expenses	24,778		1,384		109		27		853		27,151
Other expenses	126,743		7,983		170		1,249		3,104		139,249
Total noninterest expense	268,540		66,726		892		4,913		8,302		349,373
Income before income tax expense	67,976		42,221		9,343		5,913		3,924		129,377
Income tax expense	16,197		8,831		1,962		1,242		952		29,184
Net income	$	51,779	$	33,390	$	7,381	$	4,671	$	2,972	$	100,193