Note 14. 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 15, 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. Specialty finance includes commercial loan sales, SBA loans, leasing and SBLOCs and any deposits generated by those business lines. Payments include prepaid cards, merchant payments and affinity accounts. Corporate includes the investment portfolio, corporate overhead and other non-allocated expenses. Investment income is allocated to the payments segment. These operating segments reflect the way the Company views its current operations.



	For the three months ended September 30, 2017
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Interest income	$ 21,631	$ -	$ 10,283	$ -	$ 31,914
Interest allocation	-	10,283	(10,283)	-	-
Interest expense	848	2,709	456	-	4,013
Net interest income	20,783	7,574	(456)	-	27,901
Provision for loan and lease losses	800	-	-	-	800
Non-interest income	13,834	14,638	535	-	29,007
Non-interest expense	14,844	16,384	12,655	-	43,883
Income (loss) from continuing operations before taxes	18,973	5,828	(12,576)	-	12,225
Income tax expense	-	-	5,455	-	5,455
Income (loss) from continuing operations	18,973	5,828	(18,031)	-	6,770
Income from discontinued operations	-	-	-	511	511
Net income (loss)	$ 18,973	$ 5,828	$ (18,031)	$ 511	$ 7,281



	For the three months ended September 30, 2016
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Interest income	$ 17,727	$ -	$ 9,005	$ -	$ 26,732
Interest allocation	-	9,005	(9,005)	-	-
Interest expense	740	1,975	475	-	3,190
Net interest income	16,987	7,030	(475)	-	23,542
Provision for loan and lease losses	750	-	-	-	750
Non-interest income	4,215	15,180	509	-	19,904
Non-interest expense	16,352	24,081	3,738	-	44,171
Income (loss) from continuing operations before taxes	4,100	(1,871)	(3,704)	-	(1,475)
Income tax expense	-	-	55	-	55
Income (loss) from continuing operations	4,100	(1,871)	(3,759)	-	(1,530)
Loss from discontinued operations	-	-	-	(24,021)	(24,021)
Net income (loss)	$ 4,100	$ (1,871)	$ (3,759)	$ (24,021)	$ (25,551)



	For the nine months ended September 30, 2017
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Interest income	$ 59,861	$ -	$ 31,315	$ -	$ 91,176
Interest allocation	-	31,315	(31,315)	-	-
Interest expense	2,627	7,567	989	-	11,183
Net interest income	57,234	23,748	(989)	-	79,993
Provision	2,150	-	-	-	2,150
Non-interest income	24,507	45,625	1,267	-	71,399
Non-interest expense	42,251	54,829	21,949	-	119,029
Income (loss) from continuing operations before taxes	37,340	14,544	(21,671)	-	30,213
Income tax benefit	-	-	(457)	-	(457)
Income (loss) from continuing operations	37,340	14,544	(21,214)	-	30,670
Income from discontinued operations	-	-	-	3,438	3,438
Net income (loss)	$ 37,340	$ 14,544	$ (21,214)	$ 3,438	$ 34,108



	For the nine months ended September 30, 2016
	Specialty finance		Payments	Corporate	Discontinued operations	Total
	(in thousands)
Interest income	$ 48,712		$ 2	$ 25,613	$ -	$ 74,327
Interest allocation	-		25,613	(25,613)	-	-
Interest expense	2,139		5,779	1,421	-	9,339
Net interest income	46,573		19,836	(1,421)	-	64,988
Provision	1,810		-	-	-	1,810
Non-interest income	(6,787)	*	48,245	6,674	-	48,132
Non-interest expense	47,828		96,376	12,241	-	156,445
Loss from continuing operations before taxes	(9,852)		(28,295)	(6,988)	-	(45,135)
Income tax benefit	-		-	(15,324)	-	(15,324)
Income (loss) from continuing operations	(9,852)		(28,295)	8,336	-	(29,811)
Loss from discontinued operations	-		-	-	(37,909)	(37,909)
Net income (loss)	$ (9,852)		$ (28,295)	$ 8,336	$ (37,909)	$ (67,720)
* Reflects writedown of investment in unconsolidated entity



	September 30, 2017
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Total assets	$ 1,818,646	$ 38,155	$ 1,821,823	$ 314,994	$ 3,993,618
Total liabilities	$ 645,265	$ 2,702,958	$ 305,934	$ -	$ 3,654,157



	December 31, 2016
	Specialty finance	Payments	Corporate	Discontinued operations	Total
	(in thousands)
Total assets	$ 2,019,180	$ 27,935	$ 2,450,288	$ 360,711	$ 4,858,114
Total liabilities	$ 596,574	$ 3,401,142	$ 561,435	$ -	$ 4,559,151