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Segment Financial Information | 12 Months Ended
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Dec. 31, 2025
Segment Financials Information [Abstract] |
Segment Financial Information | Note 18—Segment Financial Information Overview The Company’s operations are substantially all located in the United States, and can be classified under three segments: Fintech, Credit Solutions (three sub-segments) and Corporate. Fintech Solutions partners with fintech companies and other technology focused payment-based providers to deliver payment, deposit, and sponsored lending products that attract deposits and generate fee income. Fintech includes: (i) Program sponsorship, or prepaid debit and credit cards that we issue which are generated by companies that market directly to end users. Through this product, we source the majority of our deposits and generate non-interest income; (ii) Payment services, or ACH processing and other real-time end-to-end payment processing services for which we earn fee income; and (iii) Sponsored lending, or Fintech loans, which consists of secured credit card and unsecured short-term extensions of credit that are originated by the Bank, with the marketing and servicing assistance of our partners. As of December 31, 2025, 91% of our total deposits were sourced from Fintech Solutions, primarily from Program sponsorship. Credit Solutions is our lending operations, and includes: (i) Real estate bridge lending (REBL) which comprised primarily of apartment building rehabilitation loans; (ii) institutional banking comprised of security-backed lines of credit (SBLOCs), cash value insurance policy-backed lines of credit (IBLOCs) and advisor financing; and (iii) commercial loans comprised primarily of Small Business Administration (SBA) loans and direct lease financing. Credit Solutions also includes deposits generated by those business lines. Corporate includes interest income from investment securities, corporate overhead, and expenses that have not been allocated. The chief operating decision maker for each of our segments is the Chief Executive Officer. Key factors in the decision-making process for the Fintech segment includes deposit growth, and the cost thereof, and non-interest income growth, which are presented in the Consolidated Statements of Operations. For Credit Solutions, loan growth and related yields are factors in decision making. Comparative loan balance information measuring loan growth is presented in “Note 5. Loans”. Segment Reporting Methodology The results of our business segments are intended to present each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies to assign certain revenues and expenses indirectly attributable to each business segment, as outlined below. The tables of segment financial information include presentation of amounts that are recognized or incurred specific to the operations of our segments, including Interest income, Provision for credit losses, Non-interest income and Non-interest expense - direct. Interest expense for the Fintech segment consists of interest expense actually incurred to generate its deposits, which is the Company’s actual cost of funds. Interest expense for the Corporate segment consists of expense related to our senior term debt, trust preferred debt, and demand deposits. Segment financial information includes allocations between segments and certain non-GAAP subtotals as follows: Interest allocation is a non-GAAP item which presents a market-based allocation of interest between segments. The fintech segment generates the majority of our deposits, and both Fintech speciality lending and the Credit Solutions segments use the amount to fund loans, and the Corporate segment uses funds for the investment securities portfolio. As such, Credit Solutions and Corporate pay Fintech interest for their use of deposits and fintech recognizes an offsetting amount of interest income. The rate utilized for the allocation between segments corresponds to an estimated average of the three year FHLB rate. Income before non-interest expense allocations is a non-GAAP subtotal, which presents an income subtotal before consideration of allocated Corporate expenses which might be fixed, semi-fixed or otherwise resist changes without regard to a particular line of business. Non-interest expense allocations are non-GAAP items which present the allocation of support service costs to the segments based on estimated usage. Those support department allocations are reflected in the “Risk, financial crimes and compliance” and “Information technology and operations” line items. Other allocated expenses includes costs of overhead functions, including human resources, finance, marketing, legal, facilities and general adminstrative costs. Segment Results The following tables provide segment information for the periods indicated (dollars in thousands):
| For the year ended December 31, 2025
|  |  |  |  | Credit Solutions |  |  |  |  |  |  |
|  | Fintech |  | REBL |  | Institutional Banking |  | Commercial |  |  | Corporate |  | Total
Interest income |  | $ | 3,395 |  | $ | 191,486 |  | $ | 117,586 |  | $ | 132,161 |  |  | $ | 106,741 |  | $ | 551,369
Interest allocation |  |  | 254,317 |  |  | (91,381) |  |  | (65,706) |  |  | (67,418) |  |  |  | (29,812) |  |  | —
Interest expense |  |  | 154,200 |  |  | — |  |  | 4,480 |  |  | 40 |  |  |  | 17,138 |  |  | 175,858
Net interest income |  |  | 103,512 |  |  | 100,105 |  |  | 47,400 |  |  | 64,703 |  |  |  | 59,791 |  |  | 375,511
Provision for credit losses(1) |  |  | 169,294 |  |  | (469) |  |  | (6) |  |  | 8,965 |  |  |  | (91) |  |  | 177,693
Non-interest income(1) |  |  | 310,555 |  |  | 6,649 |  |  | 348 |  |  | 8,306 |  |  |  | 2,475 |  |  | 328,333
Direct non-interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 17,703 |  |  | 4,378 |  |  | 10,312 |  |  | 19,955 |  |  |  | 90,206 |  |  | 142,554
Data processing expense |  |  | 1,392 |  |  | 171 |  |  | 2,070 |  |  | 8 |  |  |  | 1,323 |  |  | 4,964
Software |  |  | 647 |  |  | 108 |  |  | 2,846 |  |  | 1,758 |  |  |  | 15,182 |  |  | 20,541
Other |  |  | 10,952 |  |  | 5,041 |  |  | 1,330 |  |  | 7,809 |  |  |  | 29,923 |  |  | 55,055
Income before non-interest expense allocations |  |  | 214,079 |  |  | 97,525 |  |  | 31,196 |  |  | 34,514 |  |  |  | (74,277) |  |  | 303,037
Non-interest expense allocations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk, financial crimes, and compliance |  |  | 29,124 |  |  | 2,357 |  |  | 3,233 |  |  | 5,308 |  |  |  | (40,022) |  |  | —
Information technology and operations |  |  | 14,702 |  |  | 821 |  |  | 6,150 |  |  | 8,387 |  |  |  | (30,060) |  |  | —
Other allocated expenses |  |  | 16,439 |  |  | 3,331 |  |  | 6,903 |  |  | 7,870 |  |  |  | (34,543) |  |  | —
Total non-interest expense allocations |  |  | 60,265 |  |  | 6,509 |  |  | 16,286 |  |  | 21,565 |  |  |  | (104,625) |  |  | —
Income before taxes |  |  | 153,814 |  |  | 91,016 |  |  | 14,910 |  |  | 12,949 |  |  |  | 30,348 |  |  | 303,037
Income tax expense |  |  | 37,979 |  |  | 22,473 |  |  | 3,681 |  |  | 3,197 |  |  |  | 7,494 |  |  | 74,824
Net income |  | $ | 115,835 |  | $ | 68,543 |  | $ | 11,229 |  | $ | 9,752 |  |  | $ | 22,854 |  | $ | 228,213
(1)Non-interest income of the Fintech segment includes $169.3 million of Fintech loan credit enhancement income related to the estimated recovery from a Fintech partner for losses on fintech loans where the measurement of the expected loan loss and credit enhancement are based on the same estimate. The remainder of Non-interest income for Fintech is $141.2 million Total fintech fees and $0.1 million of other.
| For the year ended December 31, 2024
|  |  |  |  | Credit Solutions |  |  |  |  |  |  |
|  | Fintech |  | REBL |  | Institutional Banking |  | Commercial |  |  | Corporate |  | Total
Interest income |  | $ | 214 |  | $ | 207,062 |  | $ | 121,522 |  | $ | 124,490 |  |  | $ | 98,304 |  | $ | 551,592
Interest allocation |  |  | 261,484 |  |  | (98,064) |  |  | (69,942) |  |  | (69,960) |  |  |  | (23,518) |  |  | —
Interest expense |  |  | 156,271 |  |  | — |  |  | 3,962 |  |  | 35 |  |  |  | 15,083 |  |  | 175,351
Net interest income |  |  | 105,427 |  |  | 108,998 |  |  | 47,618 |  |  | 54,495 |  |  |  | 59,703 |  |  | 376,241
Provision for credit losses(1) |  |  | 30,651 |  |  | 2,159 |  |  | 763 |  |  | 6,416 |  |  |  | (1,615) |  |  | 38,374
Non-interest income(1) |  |  | 147,574 |  |  | 3,264 |  |  | 211 |  |  | 5,541 |  |  |  | 924 |  |  | 157,514
Direct non-interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 15,577 |  |  | 3,996 |  |  | 9,659 |  |  | 18,323 |  |  |  | 84,042 |  |  | 131,597
Data processing expense |  |  | 1,552 |  |  | 169 |  |  | 2,329 |  |  | 7 |  |  |  | 1,609 |  |  | 5,666
Software |  |  | 486 |  |  | 104 |  |  | 2,962 |  |  | 1,777 |  |  |  | 12,584 |  |  | 17,913
Other |  |  | 9,203 |  |  | 4,719 |  |  | 2,093 |  |  | 7,698 |  |  |  | 24,336 |  |  | 48,049
Income before non-interest expense allocations |  |  | 195,532 |  |  | 101,115 |  |  | 30,023 |  |  | 25,815 |  |  |  | (60,329) |  |  | 292,156
Non-interest expense allocations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk, financial crimes, and compliance |  |  | 26,922 |  |  | 2,177 |  |  | 3,017 |  |  | 4,921 |  |  |  | (37,037) |  |  | —
Information technology and operations |  |  | 13,732 |  |  | 723 |  |  | 5,993 |  |  | 7,444 |  |  |  | (27,892) |  |  | —
Other allocated expenses |  |  | 15,814 |  |  | 3,021 |  |  | 6,574 |  |  | 7,070 |  |  |  | (32,479) |  |  | —
Total non-interest expense allocations |  |  | 56,468 |  |  | 5,921 |  |  | 15,584 |  |  | 19,435 |  |  |  | (97,408) |  |  | —
Income before taxes |  |  | 139,064 |  |  | 95,194 |  |  | 14,439 |  |  | 6,380 |  |  |  | 37,079 |  |  | 292,156
Income tax expense |  |  | 35,516 |  |  | 24,312 |  |  | 3,688 |  |  | 1,629 |  |  |  | 9,471 |  |  | 74,616
Net income (loss) |  | $ | 103,548 |  | $ | 70,882 |  | $ | 10,751 |  | $ | 4,751 |  |  | $ | 27,608 |  | $ | 217,540
(1)Non-interest income of the Fintech segment includes $30.7 million of Fintech loan credit enhancement income related to the estimated recovery from a Fintech partner for losses on fintech loans where the measurement of the expected loan loss and credit enhancement are based on the same estimate. The remainder of Non-interest income for Fintech is $116.8 million total fintech fees and $0.1 million of other.
| For the year ended December 31, 2023
|  |  |  |  | Credit Solutions |  |  |  |  |  |  |
|  | Fintech |  | REBL |  | Institutional Banking |  | Commercial |  |  | Corporate |  | Total
Interest income |  | $ | 110 |  | $ | 194,419 |  | $ | 136,069 |  | $ | 102,596 |  |  | $ | 76,313 |  | $ | 509,507
Interest allocation |  |  | 264,820 |  |  | (97,941) |  |  | (84,807) |  |  | (68,487) |  |  |  | (13,585) |  |  | —
Interest expense |  |  | 139,500 |  |  | 507 |  |  | 4,355 |  |  | — |  |  |  | 11,093 |  |  | 155,455
Net interest income |  |  | 125,430 |  |  | 95,971 |  |  | 46,907 |  |  | 34,109 |  |  |  | 51,635 |  |  | 354,052
Provision for credit losses |  |  | — |  |  | 1,529 |  |  | (25) |  |  | 7,222 |  |  |  | 9,604 |  |  | 18,330
Non-interest income |  |  | 99,376 |  |  | 6,037 |  |  | 760 |  |  | 6,881 |  |  |  | (960) |  |  | 112,094
Direct non-interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 13,666 |  |  | 3,607 |  |  | 9,680 |  |  | 16,480 |  |  |  | 77,622 |  |  | 121,055
Data processing expense |  |  | 1,309 |  |  | 153 |  |  | 2,358 |  |  | 5 |  |  |  | 1,622 |  |  | 5,447
Software |  |  | 552 |  |  | 99 |  |  | 2,951 |  |  | 1,341 |  |  |  | 12,406 |  |  | 17,349
Other |  |  | 9,554 |  |  | 3,693 |  |  | 1,923 |  |  | 8,310 |  |  |  | 23,711 |  |  | 47,191
Income before non-interest expense allocations |  |  | 199,725 |  |  | 92,927 |  |  | 30,780 |  |  | 7,632 |  |  |  | (74,290) |  |  | 256,774
Non-interest expense allocations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk, financial crimes, and compliance |  |  | 25,803 |  |  | 1,221 |  |  | 1,741 |  |  | 2,473 |  |  |  | (31,238) |  |  | —
Information technology and operations |  |  | 13,189 |  |  | 805 |  |  | 6,928 |  |  | 6,488 |  |  |  | (27,410) |  |  | —
Other allocated expenses |  |  | 11,598 |  |  | 2,284 |  |  | 5,895 |  |  | 5,928 |  |  |  | (25,705) |  |  | —
Total non-interest expense allocations |  |  | 50,590 |  |  | 4,310 |  |  | 14,564 |  |  | 14,889 |  |  |  | (84,353) |  |  | —
Income (loss) before taxes |  |  | 149,135 |  |  | 88,617 |  |  | 16,216 |  |  | (7,257) |  |  |  | 10,063 |  |  | 256,774
Income tax expense (benefit) |  |  | 37,449 |  |  | 22,252 |  |  | 4,072 |  |  | (1,822) |  |  |  | 2,527 |  |  | 64,478
Net income (loss) |  | $ | 111,686 |  | $ | 66,365 |  | $ | 12,144 |  | $ | (5,435) |  |  | $ | 7,536 |  | $ | 192,296
| December 31, 2025
|  |  |  |  | Credit Solutions |  |  |  |  |  |  |
|  | Fintech |  | REBL |  | Institutional Banking |  | Commercial |  |  | Corporate |  | Total
Total assets |  | $ | 1,177,306 |  | $ | 2,362,489 |  | $ | 1,981,479 |  | $ | 1,762,882 |  |  | $ | 2,068,269 |  | $ | 9,352,425
Total liabilities |  | $ | 7,377,441 |  | $ | 1,817 |  | $ | 269,743 |  | $ | 5,591 |  |  | $ | 1,008,037 |  | $ | 8,662,629
| December 31, 2024
|  |  |  |  | Credit Solutions |  |  |  |  |  |  |
|  | Fintech |  | REBL |  | Institutional Banking |  | Commercial |  |  | Corporate |  | Total
Total assets |  | $ | 518,371 |  | $ | 2,300,817 |  | $ | 1,855,016 |  | $ | 1,676,241 |  |  | $ | 2,377,098 |  | $ | 8,727,543
Total liabilities |  | $ | 6,885,456 |  | $ | 2,116 |  | $ | 434,283 |  | $ | 8,309 |  |  | $ | 607,596 |  | $ | 7,937,760

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