XML 32 R20.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting
Note 12 – 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 services 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, including Victor, primarily consist of software services, offering account functionality and transactions to customers through web-based platforms. On September 30 2025, we executed an asset purchase agreement to sell substantially all assets and operations of Victor and recognized a $34.1 million pre-tax gain during the three and nine months ended September 30, 2025 that is included in the Other category in the tables below. The Other category will no longer include substantially all of the income and expense activity derived from Victor beginning October 1, 2025.

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 and President, 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 operating income that also is reported on the income statement as consolidated income before income taxes. Operating income is used by the CODMs to monitor budget versus actual results, as well as benchmarking to our peers. Operating income on a segment basis is reported below.
The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown:

Three Months Ended September 30, 2025CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$44,153 $103 $2 $— $(38)$44,220 
Interest expense16,850 — 797 38 (38)17,647 
   Net interest income (expense)27,303 103 (795)(38)— 26,573 
Provision for credit losses3,427 — 1,000 — — 4,427 
Net interest income (expense) after provision for credit losses23,876 103 (1,795)(38)— 22,146 
Noninterest income(3,091)2,395 3,511 35,646 (3,849)34,612 
Noninterest Expenses:
Salaries and employee benefits12,293 — 7,899 1,207 — 21,399 
Occupancy expense1,260 — 146 — (146)1,260 
Equipment depreciation and maintenance395 — 93 315 — 803 
Data processing and communications1,260 — 110 88 — 1,458 
Professional fees1,905 — 1,163 171 (285)2,954 
Other expenses1
7,989 — 783 103 (3,418)5,457 
   Total noninterest expenses25,102 — 10,194 1,884 (3,849)33,331 
Operating income (loss)$(4,317)$2,498 $(8,478)$33,724 $— $23,427 
Capital expenditures for the three months ended September 30, 2025$858 $— $78 $19 $— $955 
Total assets as of September 30, 20253,202,350 93,365 370,610 81,933 (515,305)3,232,953 
Total assets as of December 31, 20243,076,644 32,697 405,010 23,090 (408,737)3,128,704 
Goodwill as of September 30, 2025— — — 1,200 — 1,200 
Goodwill as of December 31, 2024— — — 2,838 — 2,838 
Investment in equity method investees as of September 30, 2025— 83,922 — — — 83,922 
Investment in equity method investees as of December 31, 2024— 78,255 — — — 78,255 
1Other expenses consist of software costs, insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other operating expenses.
Three Months Ended September 30, 2024CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$46,539 $103 $2 $— $(17)$46,627 
Interest expense19,234 — 808 17 (17)20,042 
   Net interest income (expense)27,305 103 (806)(17)— 26,585 
Provision for credit losses459 — 500 — 959 
Net interest income (expense) after provision for credit losses26,846 103 (1,306)(17)— 25,626 
Noninterest income4,574 768 2,956 2,332 (3,973)6,657 
Noninterest Expenses:
Salaries and employee benefits10,075 — 4,528 2,119 — 16,722 
Occupancy expense1,040 — 37 — (36)1,041 
Equipment depreciation and maintenance480 — 124 526 — 1,130 
Data processing and communications1,103 — 122 131 — 1,356 
Professional fees3,978 — 1,301 336 (966)4,649 
Other expenses1
6,563 4 656 335 (2,971)4,587 
   Total noninterest expenses23,239 4 6,768 3,447 (3,973)29,485 
Operating income (loss)$8,181 $867 $(5,118)$(1,132)$— $2,798 
Capital expenditures for the three months ended September 30, 2024$91 $— $81 $137 $— $309 
1Other expenses consist of software costs, insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other operating expenses.
Nine Months Ended September 30, 2025CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$129,620 $309 $6 $— $(102)$129,833 
Interest expense48,413 — 2,391 102 (102)50,804 
   Net interest income (expense)81,207 309 (2,385)(102)— 79,029 
Provision for credit losses5,594 — 1,000 — — 6,594 
Net interest income (expense) after provision for credit losses75,613 309 (3,385)(102)— 72,435 
Noninterest income6,895 5,358 9,253 38,316 (10,257)49,565 
Noninterest Expenses:
Salaries and employee benefits31,079 — 18,310 4,223 — 53,612 
Occupancy expense3,855 — 254 — (254)3,855 
Equipment depreciation and maintenance1,217 — 246 1,219 — 2,682 
Data processing and communications3,501 — 372 272 — 4,145 
Professional fees6,294 — 3,712 945 (935)10,016 
Other expenses22,657 — 2,278 424 (9,068)16,291 
   Total noninterest expenses68,603 — 25,172 7,083 (10,257)90,601 
Operating income (loss)$13,905 $5,667 $(19,304)$31,131 $— $31,399 
Capital expenditures for the nine months ended September 30, 2025$1,250 $— $108 $49 $— $1,407 
1Other expenses consist of software costs, insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other operating expenses.
Nine Months Ended September 30, 2024CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$142,519 $309 $7 $— $(51)$142,784 
Interest expense55,796 — 2,689 56 (51)58,490 
   Net interest income (expense)86,723 309 (2,682)(56)— 84,294 
Provision for credit losses2,710 — 500 — — 3,210 
Net interest income (expense) after provision for credit losses84,013 309 (3,182)(56)— 81,084 
Noninterest income16,993 124 7,990 8,724 (12,198)21,633 
Noninterest Expenses:
Salaries and employee benefits29,257 — 13,679 6,224 — 49,160 
Occupancy expense2,852 — 110 — (108)2,854 
Equipment depreciation and maintenance1,717 — 326 1,521 — 3,564 
Data processing and communications3,343 — 396 389 — 4,128 
Professional fees13,368 — 3,552 1,290 (2,632)15,578 
Other expenses18,962 4 1,777 2,037 (9,458)13,322 
   Total noninterest expenses69,499 4 19,840 11,461 (12,198)88,606 
Operating income (loss)$31,507 $429 $(15,032)$(2,793)$— $14,111 
Capital expenditures for the nine months ended September 30, 2024$902 $— $189 $395 $— $1,486 
1Other expenses consist of software costs, insurance, tax and assessment expenses, travel, entertainment, dues and subscription expenses and other operating expenses.