v3.25.4
Business Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
The Company's reportable segments are determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the Company's products and services offered, primarily distinguished between Banking and Factoring. They are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products and services, and clients are similar. The chief operating decision maker analyzes the financial performance of the Company's segments, allocates resources and assesses compensation of certain employees by evaluating revenue streams, significant expenses and budget to actual results. The performance of the Banking segment is assessed by monitoring the margin between interest income and interest expense related to loans, investments, deposits and other borrowings. Pretax profit and loss is used to assess the performance of the Factoring segment. Interest expense, provisions for credit losses and Salaries and employee benefits provide significant expenses in the Banking segment, while Salaries and employee benefits provide the significant expenses in the Factoring segment.
The Banking segment provides a diversified mix of business loans encompassing the following loan products: commercial and industrial loans; commercial real estate loans; construction loans; and SBA loans. From time to time the Banking segment has purchased single family residential mortgage loans. The Banking segment also offers home equity lines of credit, to accommodate the needs of business owners and individual clients, as well as consumer loans (both secured and unsecured). The Banking segment focuses deposit generation on relationship accounts, encompassing non-interest bearing demand, interest bearing demand, and money market accounts. In order to facilitate the generation of non-interest bearing demand deposits, the Banking segment requires, depending on the circumstances and the type of relationship, its borrowers to maintain deposit balances with it as a typical condition of granting loans. The Banking segment also offers certificates of deposit and savings accounts.
The Factoring segment consists of the factored receivables portfolio originated by Bay View Funding. Factored receivables are receivables that have been acquired from the originating company and typically have not been subject to previous collection efforts. These receivables are acquired from a variety of companies, including but not limited to service providers, transportation companies, manufacturers, distributors, wholesalers, apparel companies, advertisers, and temporary staffing companies. The average life of the factored receivables was 34 days for the year ended December 31, 2025.
Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in “Note 1 – Summary of Significant Accounting Policies.”
Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Banking segment’s prime rate and funding costs. The provision for credit losses on loans is allocated based on the segment’s allowance for credit losses on loans determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes.
The following tables present the Company’s operating segments for the periods indicated:
Year Ended December 31, 2025
Banking (1)
FactoringConsolidated
(Dollars in thousands)
Interest income$242,746 $14,253 $256,999 
Intersegment interest allocations2,647 (2,647)— 
Total interest expense71,624 — 71,624 
Net interest income173,769 11,606 185,375 
Provision for credit losses on loans1,382 434 1,816 
Net interest income after provision172,387 11,172 183,559 
Noninterest income10,578 1511 12,089 
Salaries and employee benefits60,814 5,723 66,537 
Other segment items (2)
59,425 1,897 61,322 
Intersegment expense allocations632 (632)— 
Income before income taxes 63,358 4,431 67,789 
Income tax expense18,649 1,310 19,959 
Net income$44,709 $3,121 $47,830 
Total assets$5,628,227 $136,470 $5,764,697 
Loans, net of deferred fees $3,534,557 $118,503 $3,653,060 
Goodwill$154,587 $13,044 $167,631 
_______________________________________________________
(1)Includes the holding company’s results of operations.
(2)Other segment items for the Banking segment includes expenses for occupancy and equipment, professional fees, insurance, information technology, client services, marketing and other miscellaneous expenses. Other segment items for the Factoring segment includes expenses for occupancy and equipment, professional fees, information technology, marketing, credit reports, broker fees, and other miscellaneous expenses.
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Year Ended December 31, 2024
Banking (1)
FactoringConsolidated
(Dollars in thousands)
Interest income$229,364 $10,980 $240,344 
Intersegment interest allocations1,827 (1,827)— 
Total interest expense79,051 — 79,051 
Net interest income152,140 9,153 161,293 
Provision for credit losses on loans1,679 460 2,139 
Net interest income after provision150,461 8,693 159,154 
Noninterest income10,381 722 11,103 
Salaries and employee benefits58,922 5,030 63,952 
Other segment items (2)
48,055 1,576 49,631 
Intersegment expense allocations520 (520)— 
Income before income taxes 54,385 2,289 56,674 
Income tax expense15,469 677 16,146 
Net income$38,916 $1,612 $40,528 
Total assets$5,558,556 $86,450 $5,645,006 
Loans, net of deferred fees $3,423,040 $68,897 $3,491,937 
Goodwill$154,587 $13,044 $167,631 
_______________________________________________________
(1)Includes the holding company’s results of operations.
(2)Other segment items for the Banking segment includes expenses for occupancy and equipment, professional fees, insurance, information technology, client services, marketing and other miscellaneous expenses. Other segment items for the Factoring segment includes expenses for occupancy and equipment, professional fees, information technology, marketing, credit reports, broker fees, and other miscellaneous expenses.
_______________________________________________________
Year Ended December 31, 2023
Banking (1)
FactoringConsolidated
(Dollars in thousands)
Interest income$218,722 $13,427 $232,149 
Intersegment interest allocations2,038 (2,038)— 
Total interest expense51,074 — 51,074 
Net interest income169,686 11,389 181,075 
Provision for (recapture of) credit losses on loans1,005 (256)749 
Net interest income after provision168,681 11,645 180,326 
Noninterest income10,731 416 11,147 
Salaries and employee benefits52,236 4,626 56,862 
Other segment items (2)
42,215 1,977 44,192 
Intersegment expense allocations547 (547)— 
Income before income taxes 85,508 4,911 90,419 
Income tax expense24,524 1,452 25,976 
Net income$60,984 $3,459 $64,443 
Total assets$5,111,367 $82,728 $5,194,095 
Loans, net of deferred fees$3,292,920 $57,458 $3,350,378 
Goodwill$154,587 $13,044 $167,631 
_______________________________________________________
(1)Includes the holding company’s results of operations.
(2)Other segment items for the Banking segment includes expenses for occupancy and equipment, professional fees, insurance, information technology, client services, marketing and other miscellaneous expenses. Other segment items for the Factoring segment includes expenses for occupancy and equipment, professional fees, information technology, marketing, credit reports, broker fees, and other miscellaneous expenses.