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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting
Note 22 – Segment Reporting

We have identified three reportable segments: CoRe Banking, Mortgage Banking and Financial Holding Company. All other operating segments are summarized in an Other category. We determined these segments based on differences in products and services.

Our CoRe Banking segment, which includes our Fintech division, represents banking products and services offered to customers by the Bank, primarily loans and deposits accounts. Revenue from banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts.

Revenue from our Mortgage Banking segment is primarily comprised of our share of net income or loss from mortgage banking activities of our equity method investments in ICM and Warp Speed.

Revenue from Financial Holding Company activities is mainly comprised of intercompany service income and dividends.

The Other category consists of professional service and our Edge Venture companies. Revenue from the professional services are primarily made up of professional consulting income derived from banks and Fintech companies. Revenue from our Edge Ventures companies primarily consist of software services, offering account functionality and transactions to customers through web-based platforms.

Our chief operating decision makers ("CODMs") regularly review the performance of operating segments to assess performance and allocate resources between segments as necessary. The CODMs consist of the Chief Executive Officer, President and Chief Financial Officer and Chief Administrative Officer. The measure used by the CODMs to assess performance and decide how to allocate resources is based on net income that also is reported on the income statement as consolidated net income. Net income is used by the CODMs to monitor budget versus actual results, as well as benchmarking to our peers. Net income on a segment basis is reported below.
Information about the reportable segments and reconciliation to the consolidated financial statements for the years ended December 31, 2024, 2023 and 2022 are as follows:
2024
(Dollars in thousands)CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
Interest income$185,486 $413 $9 $— $(66)$185,842 
Interest expense73,146 — 3,493 71 (66)76,644 
Net interest income (expense)112,340 413 (3,484)(71)— 109,198 
Provision for credit losses2,541 — 1,000 — — 3,541 
Net interest income (expense) after provision for credit losses109,799 413 (4,484)(71)— 105,657 
Noninterest income35,279 1,444 11,546 11,213 (16,569)42,913 
Noninterest Expenses:
Salaries and employee benefits40,471 — 19,306 8,178 — 67,955 
Occupancy expense3,883 — 148 — (144)3,887 
Equipment depreciation and maintenance2,113 — 434 2,034 — 4,581 
Data processing and communications4,369 — 579 523 — 5,471 
Professional fees17,379 — 5,580 1,799 (3,410)21,348 
Other expenses1
26,779 17 2,405 2,798 (13,015)18,984 
Total noninterest expenses94,994 17 28,452 15,332 (16,569)122,226 
Income (loss) before income taxes50,084 1,840 (21,390)(4,190)— 26,344 
Income taxes13,616 311 (4,752)(3,076)— 6,099 
Net income (loss)36,468 1,529 (16,638)(1,114)— 20,245 
Net income attributable to noncontrolling interest— — — (154)— (154)
Net income (loss) available to common shareholders$36,468 $1,529 $(16,638)$(1,268)$— $20,091 
Capital expenditures for the year ended December 31, 2024$937 $— $189 $495 $— $1,620 
Total assets as of December 31, 2024$3,076,644 $32,697 $405,010 $23,090 $(408,737)$3,128,704 
Goodwill as of December 31, 2024$— $— $— $2,838 $— $2,838 
Investment in equity method investees as of December 31, 2024$— $78,255 $— $— $— $78,255 
1Other expenses consist of insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other overhead expenses.
2023
(Dollars in thousands)CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
Interest income$189,498 $416 $41 $— $(137)$189,818 
Interest expense62,507 — 3,985 180 (137)66,535 
Net interest income (expense)126,991 416 (3,944)(180)— 123,283 
Release of allowance for credit losses(1,921)— — — — (1,921)
Net interest income (expense) after release of allowance for credit losses128,912 416 (3,944)(180)— 125,204 
Noninterest income17,286 (2,486)10,453 9,138 (14,676)19,715 
Noninterest expenses:
Salaries and employee benefits37,265 7 17,041 9,058 — 63,371 
Occupancy expense3,701 — 144 — (144)3,701 
Equipment depreciation and maintenance2,889 — 390 2,279 — 5,558 
Data processing and communications3,840 — 501 537 — 4,878 
Professional fees15,649 — 4,682 1,682 (3,669)18,344 
Other expenses1
27,142 65 2,516 2,913 (10,863)21,773 
Total noninterest expenses90,486 72 25,274 16,469 (14,676)117,625 
Income (loss) before income taxes55,712 (2,142)(18,765)(7,511)— 27,294 
Income taxes12,342 (557)(4,923)(1,792)— 5,070 
Net income (loss) from continuing operations43,370 (1,585)(13,842)(5,719)— 22,224 
Income from discontinued operations before income taxes— — — 11,831 — 11,831 
Income tax expense - discontinued operations— — — 3,049 — 3,049 
Net income from discontinued operations— — — 8,782 — 8,782 
Net income (loss)43,370 (1,585)(13,842)3,063 — 31,006 
Net loss attributable to noncontrolling interest— — — 226 — 226 
Net income (loss) available to common shareholders$43,370 $(1,585)$(13,842)$3,289 $— $31,232 
Capital expenditures for the year ended December 31, 2023$914 $— $58 $943 $— $1,915 
Total assets as of December 31, 2023$3,255,369 $83,909 $345,314 $17,728 $(388,438)$3,313,882 
Goodwill as of December 31, 2023$— $— $— $2,838 $— $2,838 
Investment in equity method investees as of December 31, 2023$— $75,754 $— $— $— $75,754 
1Other expenses consist of insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other overhead expenses.
 2022
(Dollars in thousands)CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
Interest income$125,426 $429 $146 $— $(44)$125,957 
Interest expense10,920 — 3,234 44 (44)14,154 
Net interest income (expense)114,506 429 (3,088)(44)— 111,803 
Provision for loan losses14,194 — — — — 14,194 
Net interest income (expense) after provision for loan losses100,312 429 (3,088)(44)— 97,609 
Noninterest income22,673 37 10,576 6,120 (11,841)27,565 
Noninterest Expenses:
Salaries and employee benefits36,960 8 16,582 8,984 — 62,534 
Occupancy expense4,003 — 152 48 (152)4,051 
Equipment depreciation and maintenance3,332 — 458 1,706 — 5,496 
Data processing and communications3,678 — 65 455 — 4,198 
Professional fees14,137 — 4,792 4,062 (7,330)15,661 
Other expenses1
19,723 142 2,582 118 (4,359)18,206 
Total noninterest expenses81,833 150 24,631 15,373 (11,841)110,146 
Income (loss) before income taxes41,152 316 (17,143)(9,297)— 15,028 
Income taxes8,882 77 (3,472)(2,193)— 3,294 
Net income (loss) from continuing operations32,270 239 (13,671)(7,104)— 11,734 
Income from discontinued operations before income taxes— — — 3,487 — 3,487 
Income tax expense - discontinued operations— — — 834 — 834 
Net income from discontinued operations— — — 2,653 — 2,653 
Net income (loss)32,270 239 (13,671)(4,451)— 14,387 
Net loss attributable to noncontrolling interest— — — 660 — 660 
Net income (loss) attributable to parent$32,270 $239 $(13,671)$(3,791)$— $15,047 
Preferred stock dividends— — — — — — 
Net income (loss) available to common shareholders$32,270 $239 $(13,671)$(3,791)$— $15,047 
Capital expenditures for the year ended December 31, 2022$400 $— $413 $2,228 $— $3,041 
1Other expenses consist of insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other overhead expenses.