NOTE 15 – BUSINESS SEGMENT INFORMATION

The following table presents the Company’s operating segments. The accounting policies of the segments are substantially similar to those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2016 Form 10-K. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate. The provision for loan loss is allocated based on the segment’s allowance for loan loss determination. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis but not allocated for segment purposes. The Factoring segment includes only factoring originated by TBC. General factoring services not originated through TBC are included in the Banking segment. On March 31, 2017, we sold our 100% membership interest in TCA. As a result, the Asset Management segment had no operations subsequent to March 31, 2017.

(Dollars in thousands)						Asset
Three Months Ended June 30, 2017	Banking		Factoring			Management		Corporate			Consolidated
Total interest income	$	32,733	$	10,387		$	—	$	418		$	43,538
Intersegment interest allocations		1,729		(1,729	)		—		—			—
Total interest expense		3,670		—			—		1,311			4,981
Net interest income (expense)		30,792		8,658			—		(893	)		38,557
Provision for loan losses		619		812			—		16			1,447
Net interest income after provision		30,173		7,846			—		(909	)		37,110
Noninterest income		3,577		758			—		867			5,202
Noninterest expense		21,216		5,482			—		623			27,321
Operating income (loss)	$	12,534	$	3,122		$	—	$	(665	)	$	14,991

(Dollars in thousands)						Asset
Three Months Ended June 30, 2016	Banking		Factoring			Management		Corporate			Consolidated
Total interest income	$	20,109	$	7,939		$	33	$	273		$	28,354
Intersegment interest allocations		1,099		(1,099	)		—		—			—
Total interest expense		2,135		—			—		312			2,447
Net interest income (expense)		19,073		6,840			33		(39	)		25,907
Provision for loan losses		1,392		555			—		(8	)		1,939
Net interest income after provision		17,681		6,285			33		(31	)		23,968
Noninterest income		822		496			1,614		736			3,668
Noninterest expense		13,405		4,962			1,213		751			20,331
Operating income (loss)	$	5,098	$	1,819		$	434	$	(46	)	$	7,305

(Dollars in thousands)						Asset
Six Months Ended June 30, 2017	Banking		Factoring			Management		Corporate			Consolidated
Total interest income	$	60,232	$	19,092		$	3	$	543		$	79,870
Intersegment interest allocations		3,018		(3,018	)		—		—			—
Total interest expense		6,882		—			—		2,612			9,494
Net interest income (expense)		56,368		16,074			3		(2,069	)		70,376
Provision for loan losses		7,640		1,393			—		92			9,125
Net interest income after provision		48,728		14,681			3		(2,161	)		61,251
Gain on sale of subsidiary		—		—			—		20,860			20,860
Other noninterest income		7,107		1,428			1,717		1,375			11,627
Noninterest expense		43,187		11,077			1,456		6,438			62,158
Operating income (loss)	$	12,648	$	5,032		$	264	$	13,636		$	31,580

(Dollars in thousands)						Asset
Six Months Ended June 30, 2016	Banking		Factoring			Management		Corporate			Consolidated
Total interest income	$	37,535	$	15,124		$	64	$	524		$	53,247
Intersegment interest allocations		2,100		(2,100	)		—		—			—
Total interest expense		4,237		—			—		614			4,851
Net interest income (expense)		35,398		13,024			64		(90	)		48,396
Provision for loan losses		1,267		85			—		76			1,428
Net interest income after provision		34,131		12,939			64		(166	)		46,968
Noninterest income		2,836		942			3,285		1,586			8,649
Noninterest expense		26,987		9,535			2,559		1,328			40,409
Operating income (loss)	$	9,980	$	4,346		$	790	$	92		$	15,208

(Dollars in thousands)					Asset
June 30, 2017	Banking		Factoring		Management		Corporate		Eliminations			Consolidated
Total assets	$	2,787,117	$	278,533	$	—	$	417,017	$	(645,983	)	$	2,836,684
Gross loans	$	2,206,914	$	268,707	$	—	$	12,986	$	(193,507	)	$	2,295,100

(Dollars in thousands)					Asset
December 31, 2016	Banking		Factoring		Management		Corporate		Eliminations			Consolidated
Total assets	$	2,588,509	$	223,994	$	4,879	$	391,745	$	(568,060	)	$	2,641,067
Gross loans	$	1,961,552	$	212,784	$	—	$	1,866	$	(148,578	)	$	2,027,624