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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting
Note 10 – Segment Reporting
As defined in ASC 280, Segment Reporting, an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. We evaluate performance based on an internal performance measurement accounting system, which provides line of business results. This system uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income and expense. A primary objective of this measurement system and related internal financial reporting practices are to produce consistent results that reflect the underlying financial impact of the segments on the Company and to provide a basis of support for strategic decision making. The accounting policies applicable to our segments are those that apply to our preparation of the accompanying Consolidated Financial Statements. Based on these criteria, we have identified two segments: the community bank and CCBX.
Income and expenses that are specific to CCBX are recorded to the CCBX segment. Additionally, certain indirect expenses are allocated to CCBX utilizing various metrics, such as number of employees, utilization of space, and allocations based on loan and deposit balances. Included in noninterest expense for the community bank is administrative overhead of $7.9 million and $5.2 million for the quarters ended September 30, 2022 and September 30, 2021, respectively. Included in noninterest expense for the community bank is administrative overhead of $19.8 million and $13.9 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. Both the community bank and the CCBX segment benefit from this administrative overhead and services, which includes shared operational activities such as data management, compliance monitoring and other administration functions.
Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables for the periods indicated:
September 30, 2022December 31, 2021
BankCCBXTotalBankCCBXTotal
(dollars in thousands; unaudited)
Total assets$2,140,820 $992,921 $3,133,741 $2,282,514 $353,003 $2,635,517 
Loans held for sale— 43,314 43,314 — — — 
Total loans receivable1,592,320 915,569 2,507,889 1,396,060 346,675 1,742,735 
Allowance for loan losses
(20,139)(39,143)(59,282)(20,299)(8,333)(28,632)
Total deposits1,634,796 1,202,270 2,837,066 1,647,529 716,258 2,363,787 
Three months ended September 30, 2022Three months ended September 30, 2021
BankCCBXTotalBankCCBX Total
(dollars in thousands; unaudited)
Net interest income$22,815 $26,374 $49,189 $17,359 $1,448 $18,807 
Provision for loan losses(238)18,666 18,428 192 63 255 
Noninterest income (1)
1,113 33,278 34,391 3,783 2,349 6,132 
Noninterest expense17,765 33,322 51,087 13,811 2,319 16,130 
(1)For the three months ended September 30, 2022, CCBX noninterest income includes credit enhancements of $17.9 million, fraud enhancements of $11.7 million, and BaaS program income of $3.6 million. For the three months ended September 30, 2021, CCBX noninterest income includes credit enhancements of $10,000, fraud enhancements of $296,000 and BaaS program income of $2.0 million.
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
BankCCBXTotalBankCCBX Total
(dollars in thousands; unaudited)
Net interest income$60,171 $58,172 $118,343 $52,038 $2,696 $54,734 
Provision for loan losses214 45,250 45,464 877 96 973 
Noninterest income (1)
4,426 77,443 81,869 9,175 4,723 13,898 
Noninterest expense50,113 69,558 119,671 37,159 5,054 42,213 
(1)For the nine months ended September 30, 2022, CCBX noninterest income includes credit enhancements of $45.2 million, fraud enhancements of $22.8 million and BaaS program income of $9.3 million. For the nine months ended September 30, 2021, CCBX noninterest income includes credit enhancements of $10,000, fraud enhancements of $296,000 and BaaS program income of $4.4 million.