v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting 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 (“CODM”) 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 classifications within accounting and reporting systems, 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 is 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 three segments: the community bank, CCBX and treasury & administration. The Executive Leadership Team, which includes the CEO, Executive Chair, CFO and other key executive members, which the Company has designated as the CODMs, evaluates the financial performance of the Company’s segments by evaluating interest income and expense, noninterest income and significant expenses. The community bank segment includes all community banking activities. A primary focus of the community bank is on providing a wide range of banking products and services to consumers and small to medium sized businesses in the broader Puget Sound region in the state of Washington and through the Internet and our mobile banking application. We currently operate 14 full-service banking locations, 12 of which are located in Snohomish County, and two of which are located in neighboring counties (one in King County and one in Island County). We also have a loan production office which is located in King county. The CCBX segment provides BaaS that allows digital financial service providers, companies and brands to offer their customers banking services. The CCBX segment has 31 partners as of September 30, 2026. The treasury & administration segment includes investments, debt and other reporting items that are not specific to the community bank or CCBX segments.
The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, 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. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. The Company continues to evaluate its methodology on allocating items to the Company’s various segments to support strategic business decisions by the Company’s executive leadership. Income and expenses that are specific to a segment are directly posted to each segment. Additionally, certain indirect expenses are allocated to each segment utilizing various metrics, such as number of employees, utilization of space, and allocations based on loan and deposit balances. We have implemented a transfer pricing process that credits or charges the community bank and CCBX segments with intrabank interest income or expense for the difference in average loans and average deposits, with the treasury & administration segment as the offset for those entries.
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, 2026December 31, 2025
Community BankCCBXTreasury & AdministrationConsolidatedCommunity BankCCBXTreasury & AdministrationConsolidated
Assets(dollars in thousands; unaudited)
Cash and due from banks$5,032 $809 $797,710 $803,551 $4,243 $750 $731,977 $736,970 
Intrabank assets— 709,024 (709,024)— — 633,600 (633,600)— 
Securities— — 44,720 44,720 — — 48,247 48,247 
Loans held for sale— 140,337 — 140,337 — 71,216 — 71,216 
Total loans receivable1,978,630 2,206,899 — 4,185,529 1,941,979 1,807,552 — 3,749,531 
Allowance for credit losses
(16,094)(192,010)— (208,104)(18,231)(151,299)— (169,530)
All other assets27,978 219,850 62,566 310,394 29,809 235,137 40,057 305,003 
Total assets$1,995,546 $3,084,909 $195,972 $5,276,427 $1,957,800 $2,596,956 $186,681 $4,741,437 
Liabilities
Total deposits$1,637,324 $3,041,507 $— $4,678,831 $1,586,359 $2,557,840 $— $4,144,199 
Total borrowings— — 48,150 48,150 — — 48,036 48,036 
Intrabank liabilities353,994 — (353,994)— 366,216 — (366,216)— 
All other liabilities4,228 43,402 23,549 71,179 5,225 39,116 13,902 58,243 
Total liabilities$1,995,546 $3,084,909 $(282,295)$4,798,160 $1,957,800 $2,596,956 $(304,278)$4,250,478 
Three months ended September 30, 2026Three months ended September 30, 2025
Community BankCCBXTreasury & AdministrationConsolidatedCommunity BankCCBX Treasury & AdministrationConsolidated
(dollars in thousands; unaudited)
INTEREST INCOME AND EXPENSE
Interest income$33,459 $79,623 $8,101 $121,183 $30,724 $69,643 $8,660 $109,027 
Interest (expense) income intrabank transfer(3,420)5,578 (2,158)— (3,028)6,768 (3,740)— 
Interest expense6,320 24,611 1,966 32,897 7,136 23,330 660 31,126 
Net interest income23,719 60,590 3,977 88,286 20,560 53,081 4,260 77,901 
Provision/(Recapture) for credit losses 137 45,882 — 46,019 (107)56,705 — 56,598 
Net interest income/(expense) after provision for credit losses 23,582 14,708 3,977 42,267 20,667 (3,624)4,260 21,303 
NONINTEREST INCOME
Deposit service charges and fees974 5 — 979 871 32 — 903 
Other income126 2 (90)38 134 5 331 470 
BaaS program income— 14,127 — 14,127 — 7,865 — 7,865 
BaaS indemnification income— 45,896 — 45,896 — 57,539 — 57,539 
Noninterest income1,100 60,030 (90)61,040 1,005 65,441 331 66,777 
NONINTEREST EXPENSE
Salaries and employee benefits6,987 11,058 3,958 22,003 7,023 9,334 3,789 20,146 
Occupancy798 84 50 932 801 84 67 952 
Data processing and software licenses1,783 5,599 1,059 8,441 1,204 4,047 863 6,114 
Legal and professional expenses422 5,886 1,484 7,792 399 1,754 1,804 3,957 
Credit enhancement receivable
   valuation adjustment		— — — — — — — — 
Other expense1,089 3,954 788 5,831 1,500 1,573 963 4,036 
BaaS loan expense— 35,715 — 35,715 — 32,840 — 32,840 
BaaS fraud expense— 4,129 — 4,129 — 2,127 — 2,127 
Total noninterest expense11,079 66,425 7,339 84,843 10,927 51,759 7,486 70,172 
Net income/(loss) before income taxes13,603 8,313 (3,452)18,464 10,745 10,058 (2,895)17,908 
Income taxes2,264 3,238 (826)4,676 2,085 2,834 (603)4,316 
Net income/(loss)$11,339 $5,075 $(2,626)$13,788 $8,660 $7,224 $(2,292)$13,592 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Community BankCCBXTreasury & AdministrationConsolidatedCommunity BankCCBX Treasury & AdministrationConsolidated
(dollars in thousands; unaudited)
INTEREST INCOME AND EXPENSE
Interest income$97,710 $229,356 $24,352 $351,418 $91,619 $205,762 $24,350 $321,731 
Interest income (expense) intrabank transfer(10,976)19,696 (8,720)— (10,729)20,678 (9,949)— 
Interest expense17,548 69,096 3,764 90,408 20,523 68,528 1,980 91,031 
Net interest income69,186 179,956 11,868 261,010 60,367 157,912 12,421 230,700 
Provision/(Recapture) for credit losses (2,716)192,290 — 189,574 184 144,406 — 144,590 
Net interest income/(expense) after provision for credit losses 71,902 (12,334)11,868 71,436 60,183 13,506 12,421 86,110 
NONINTEREST INCOME
Service charges and fees2,837 8 — 2,845 2,644 32 — 2,676 
Other income395 19 802 1,216 464 5 756 1,225 
BaaS program income— 37,027 — 37,027 — 21,794 — 21,794 
BaaS indemnification income— 174,736 — 174,736 — 147,252 — 147,252 
Noninterest income3,232 211,790 802 215,824 3,108 169,083 756 172,947 
NONINTEREST EXPENSE
Salaries and employee benefits21,813 34,635 12,334 68,782 21,189 26,075 15,765 63,029 
Occupancy2,367 176 138 2,681 2,449 243 209 2,901 
Data processing and software licenses5,939 20,957 3,536 30,432 4,587 9,629 2,321 16,537 
Legal and professional expenses1,243 15,933 3,815 20,991 1,143 6,800 7,864 15,807 
Credit enhancement receivable
   valuation adjustment		— 46,009 — 46,009 — — — — 
Other expense3,057 10,378 2,512 15,947 4,540 4,724 2,701 11,965 
BaaS loan expense— 113,064 — 113,064 — 97,830 — 97,830 
BaaS fraud expense— 11,500 — 11,500 — 6,924 — 6,924 
Total noninterest expense34,419 252,652 22,335 309,406 33,908 152,225 28,860 214,993 
Net income (loss) before income taxes40,715 (53,196)(9,665)(22,146)29,383 30,364 (15,683)44,064 
Income taxes7,913 (11,131)(2,630)(5,848)5,809 7,583 (3,678)9,714 
Net income (loss)$32,802 $(42,065)$(7,035)$(16,298)23,574 22,781 (12,005)34,350