SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 9 – 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, 2023 and 2022:

	Three Months Ended June 30, 2023
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	225,284	$	52,867	$	18,960	$	4,915	$	19,926	$	321,952
Interest expense	53,843		31,450		12,794		2,584		11,741		112,412
Net interest income	171,441		21,417		6,166		2,331		8,185		209,540
Provision for credit losses	40,831		3,278		411		424		572		45,516
Noninterest income	24,652		39,808		1,404		1,476		9		67,349
Noninterest expense
Salaries and employee benefits	55,196		21,930		772		1,316		2,122		81,336
Occupancy and equipment	11,175		1,224		—		40		83		12,522
Data processing and communications expenses	11,898		1,397		44		46		66		13,451
Other expenses	27,643		11,859		223		333		1,036		41,094
Total noninterest expense	105,912		36,410		1,039		1,735		3,307		148,403
Income before income tax expense	49,350		21,537		6,120		1,648		4,315		82,970
Income tax expense	13,312		4,523		1,285		346		869		20,335
Net income	$	36,038	$	17,014	$	4,835	$	1,302	$	3,446	$	62,635
Total assets	$	18,274,738	$	4,921,354	$	1,152,690	$	257,350	$	1,194,486	$	25,800,618
Goodwill	951,148		—		—		—		64,498		1,015,646
Other intangible assets, net	89,335		—		—		—		7,465		96,800

	Three Months Ended June 30, 2022
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	141,844	$	38,055	$	8,476	$	4,757	$	9,436	$	202,568
Interest expense	(10,278)		17,276		1,776		959		1,471		11,204
Net interest income	152,122		20,779		6,700		3,798		7,965		191,364
Provision for credit losses	10,175		4,499		867		(523)		(94)		14,924
Noninterest income	23,469		57,795		1,041		1,526		10		83,841
Noninterest expense
Salaries and employee benefits	46,733		31,219		208		1,316		2,069		81,545
Occupancy and equipment	11,168		1,406		1		81		90		12,746
Data processing and communications expenses	10,863		1,123		48		29		92		12,155
Other expenses	21,123		12,812		212		539		1,064		35,750
Total noninterest expense	89,887		46,560		469		1,965		3,315		142,196
Income before income tax expense	75,529		27,515		6,405		3,882		4,754		118,085
Income tax expense	19,120		5,779		1,346		815		959		28,019
Net income	$	56,409	$	21,736	$	5,059	$	3,067	$	3,795	$	90,066
Total assets	$	17,009,855	$	4,418,211	$	923,829	$	264,227	$	1,071,348	$	23,687,470
Goodwill	958,558		—		—		—		64,498		1,023,056
Other intangible assets, net	105,198		—		—		—		10,415		115,613

	Six Months Ended June 30, 2023
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	433,499	$	101,456	$	35,574	$	9,290	$	37,849	$	617,668
Interest expense	86,730		60,012		23,708		5,002		21,024		196,476
Net interest income	346,769		41,444		11,866		4,288		16,825		421,192
Provision for credit losses	87,971		6,131		217		320		606		95,245
Noninterest income	48,550		70,866		1,884		2,081		18		123,399
Noninterest expense
Salaries and employee benefits	111,638		42,090		1,574		2,625		4,319		162,246
Occupancy and equipment	22,781		2,507		1		77		142		25,508
Data processing and communications expenses	23,695		2,466		90		83		151		26,485
Other expenses	46,666		23,606		425		755		2,133		73,585
Total noninterest expense	204,780		70,669		2,090		3,540		6,745		287,824
Income before income tax expense	102,568		35,510		11,443		2,509		9,492		161,522
Income tax expense	26,160		7,457		2,403		527		1,919		38,466
Net income	$	76,408	$	28,053	$	9,040	$	1,982	$	7,573	$	123,056

	Six Months Ended June 30, 2022
(dollars in thousands)	Banking Division		Retail Mortgage Division		Warehouse Lending Division		SBA Division		Premium  Finance  Division		Total
Interest income	$	271,134	$	70,887	$	15,289	$	11,537	$	17,095	$	385,942
Interest expense	(14,733)		30,813		2,142		1,728		2,084		22,034
Net interest income	285,867		40,074		13,147		9,809		15,011		363,908
Provision for credit losses	15,401		6,086		645		(666)		(311)		21,155
Noninterest income	44,833		119,444		2,442		4,017		16		170,752
Noninterest expense
Salaries and employee benefits	95,928		62,833		491		2,587		3,987		165,826
Occupancy and equipment	22,242		2,877		2		180		172		25,473
Data processing and communications expenses	22,093		2,295		95		57		187		24,727
Other expenses	41,168		25,457		430		919		2,016		69,990
Total noninterest expense	181,431		93,462		1,018		3,743		6,362		286,016
Income before income tax expense	133,868		59,970		13,926		10,749		8,976		227,489
Income tax expense	36,116		12,594		2,925		2,257		1,833		55,725
Net income	$	97,752	$	47,376	$	11,001	$	8,492	$	7,143	$	171,764