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DISCONTINUED OPERATIONS | 6 Months Ended
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Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS During the first quarter of 2019, the Company reached the decision to pursue the sale of the national mortgage banking operations of First Choice Loan Services, Inc. (“FCLS”) – a subsidiary of the Bank. The decision was based on a number of strategic priorities and other factors, including the competitiveness of the mortgage industry. FCLS continues to operate and serve its customers as the Company initiates the process of identifying a buyer. The potential transaction is expected to close within 12 months. As a result of these actions, the Company classified the operations of FCLS as discontinued under ASC 205-20. The Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash Flows present discontinued operations retrospectively for current and prior periods. The following is a summary of the assets and liabilities of the discontinued operations of FCLS at June 30, 2019 and December 31, 2018:
(in thousands) |  | June 30, 2019 |  | December 31, 2018
Assets |  |  |  |
Loans held for sale, at fair value |  | $ | 182,882 |  |  | $ | 94,050 |
Premises and equipment, net |  | 1,710 |  |  | 1,867 |
Other assets |  | 28,153 |  |  | 18,342 |
Total assets |  | $ | 212,745 |  |  | $ | 114,259 |
Liabilities |  |  |  |
Other liabilities |  | $ | 26,256 |  |  | $ | 9,597 |
Total liabilities |  | $ | 26,256 |  |  | $ | 9,597 |
FCLS funds its lending operations and maintains working capital through an intercompany line-of-credit with the Bank. Although the sale of FCLS will contemplate settlement of these borrowings, debt was not allocated to discontinued operations due to the intercompany nature of the borrowings. When the transaction closes, the Company will reallocate these funds to various purposes, including but not limited to, pay-down of short-term debt with the Federal Home Loan Bank. The following presents operating results of the discontinued operations of FCLS for the three and six months ended June 30, 2019 and June 30, 2018:
|  | Three Months Ended June 30, | Six Months Ended June 30,
(in thousands) |  | 2019 |  | 2018 | 2019 |  | 2018
Interest income |  | $ | 1,818 |  |  | $ | 1,395 |  | $ | 2,862 |  |  | $ | 2,489 |
Interest expense |  | 1,062 |  |  | 566 |  | 1,646 |  |  | 947 |
Net interest income |  | 756 |  |  | 829 |  | 1,216 |  |  | 1,542 |
Non-interest income |  | 13,246 |  |  | 10,407 |  | 22,059 |  |  | 21,035 |
Total net revenue |  | 14,002 |  |  | 11,236 |  | 23,275 |  |  | 22,577 |
Non-interest expense |  | 11,920 |  |  | 10,810 |  | 22,047 |  |  | 22,313 |
Income from discontinued operations before income taxes |  | 2,082 |  |  | 426 |  | 1,228 |  |  | 264 |
Income tax expense |  | 588 |  |  | 106 |  | 371 |  |  | 67 |
Net income from discontinued operations |  | $ | 1,494 |  |  | $ | 320 |  | $ | 857 |  |  | $ | 197 |
FCLS also originates mortgages designated as held-for-investment. This component of FCLS’s operations was not considered discontinued, since the Company expects to continue to originate mortgages designated as held-for-investment in its footprint on a small scale through processes considered as continuing operations.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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