Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | CASS INFORMATION SYSTEMS INC | |
Entity Central Index Key | 0000708781 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 14,526,274 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 15,090 | $ 15,042 |
Interest-bearing deposits in other financial institutions | 113,937 | 179,281 |
Federal funds sold and other short-term investments | 55,327 | 36,610 |
Cash and cash equivalents | 184,354 | 230,933 |
Securities available-for-sale, at fair value | 441,189 | 441,534 |
Loans | 751,309 | 721,587 |
Less: Allowance for loan losses | 10,486 | 10,225 |
Loans, net | 740,823 | 711,362 |
Premises and equipment, net | 21,644 | 22,031 |
Investment in bank-owned life insurance | 17,495 | 17,384 |
Payments in excess of funding | 162,953 | 160,777 |
Goodwill | 12,569 | 12,569 |
Other intangible assets, net | 1,446 | 1,554 |
Other assets | 102,408 | 97,032 |
Total assets | 1,684,881 | 1,695,176 |
Deposits: | ||
Noninterest-bearing | 271,178 | 313,258 |
Interest-bearing | 384,254 | 408,668 |
Total deposits | 655,432 | 721,926 |
Accounts and drafts payable | 739,357 | 694,360 |
Other liabilities | 55,612 | 49,042 |
Total liabilities | 1,450,401 | 1,465,328 |
Shareholders' Equity: | ||
Preferred stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued | ||
Common stock, par value $.50 per share; 40,000,000 shares authorized and 15,505,772 shares issued at March 31, 2019 and December 31, 2018 | 7,753 | 7,753 |
Additional paid-in capital | 205,310 | 205,770 |
Retained earnings | 79,558 | 75,171 |
Common shares in treasury, at cost (979,498 shares at March 31, 2019 and 894,486 shares at December 31, 2018) | (44,685) | (39,974) |
Accumulated other comprehensive loss | (13,456) | (18,872) |
Total shareholders' equity | 234,480 | 229,848 |
Total liabilities and shareholders' equity | $ 1,684,881 | $ 1,695,176 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.50 | $ 0.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value per share | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,505,772 | 15,505,772 |
Treasury stock, shares | 979,498 | 894,486 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fee Revenue and Other Income: | ||
Information services payment and processing revenue | $ 26,457 | $ 24,827 |
Bank service fees | 376 | 335 |
Gains on sales of securities | 11 | 13 |
Other | 169 | 199 |
Total fee revenue and other income | 27,013 | 25,374 |
Interest Income: | ||
Interest and fees on loans | 8,629 | 7,542 |
Interest and dividends on securities: | ||
Taxable | 642 | 321 |
Exempt from federal income taxes | 2,037 | 2,565 |
Interest on federal funds sold and other short-term investments | 1,589 | 860 |
Total interest income | 12,897 | 11,288 |
Interest Expense: | ||
Interest on deposits | 1,290 | 679 |
Net interest income | 11,607 | 10,609 |
Provision for loan losses | 250 | |
Net interest income after provision for loan losses | 11,357 | 10,609 |
Total net revenue | 38,370 | 35,983 |
Operating Expense: | ||
Salaries and employee benefits | 22,277 | 20,382 |
Occupancy | 959 | 854 |
Equipment | 1,469 | 1,308 |
Amortization of intangible assets | 107 | 110 |
Other operating expense | 3,650 | 3,528 |
Total operating expense | 28,462 | 26,182 |
Income before income tax expense | 9,908 | 9,801 |
Income tax expense | 1,745 | 1,709 |
Net income | $ 8,163 | $ 8,092 |
Basic earnings per share | $ 0.56 | $ 0.55 |
Diluted earnings per share | $ 0.55 | $ 0.54 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Comprehensive Income: | ||
Net income | $ 8,163 | $ 8,092 |
Other comprehensive income: | ||
Net unrealized gain (loss) on securities available-for-sale | 7,137 | (9,774) |
Tax effect | (1,699) | 2,326 |
Reclassification adjustments for gains included in net income | (11) | (13) |
Tax effect | 3 | 3 |
Foreign currency translation adjustments | (14) | 39 |
Total comprehensive income | $ 13,579 | $ 673 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 8,163 | $ 8,092 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,699 | 3,018 |
Net gains on sales of securities | (11) | (13) |
Stock-based compensation expense | 857 | 638 |
Provision for loan losses | 250 | |
Increase in income tax liability | 1,717 | 1,352 |
Increase in pension liability | 1,295 | 1,231 |
(Increase) decrease in accounts receivable | (485) | 6,410 |
Other operating activities, net | 1,950 | (2,569) |
Net cash provided by operating activities | 16,435 | 18,159 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of securities available-for-sale | 1,101 | 9,543 |
Proceeds from maturities of securities available-for-sale | 4,824 | 11,030 |
Purchase of securities available-for-sale | (16,752) | |
Net increase in loans | (29,711) | (15,764) |
Increase in payments in excess of funding | (2,176) | (18,454) |
Purchases of premises and equipment, net | (646) | (1,387) |
Net cash used in investing activities | (26,608) | (31,784) |
Cash Flows From Financing Activities: | ||
Net decrease in noninterest-bearing demand deposits | (42,080) | (23,626) |
Net decrease in interest-bearing demand and savings deposits | (26,095) | (15,149) |
Net increase (decrease) in time deposits | 1,681 | (69) |
Net increase in accounts and drafts payable | 39,892 | 27,825 |
Cash dividends paid | (3,776) | (2,948) |
Purchase of common shares for treasury | (5,701) | (529) |
Other financing activities, net | (327) | (407) |
Net cash used in financing activities | (36,406) | (14,903) |
Net decrease in cash and cash equivalents | (46,579) | (28,528) |
Cash and cash equivalents at beginning of period | 230,933 | 228,110 |
Cash and cash equivalents at end of period | 184,354 | 199,582 |
Supplemental information: | ||
Cash paid for interest | 1,224 | 667 |
Cash paid for income taxes | $ 8 | $ 263 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2017 | $ 6,524 | $ 204,631 | $ 59,314 | $ (32,061) | $ (13,320) | $ 225,088 |
Net income | 8,092 | 8,092 | ||||
Cash dividends | (2,948) | (2,948) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (721) | 257 | (464) | |||
Exercise of SARs | (69) | 32 | (37) | |||
Stock-based compensation expense | 638 | 638 | ||||
Purchase of common shares | (529) | (529) | ||||
Other comprehensive loss | (7,418) | (7,418) | ||||
Balance at Mar. 31, 2018 | 6,524 | 204,479 | 64,458 | (32,301) | (20,738) | 222,422 |
Balance at Dec. 31, 2018 | 7,753 | 205,770 | 75,171 | (39,974) | (18,872) | 229,848 |
Net income | 8,163 | 8,163 | ||||
Cash dividends | (3,776) | (3,776) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (1,014) | 826 | (188) | |||
Exercise of SARs | (303) | 164 | (139) | |||
Stock-based compensation expense | 857 | 857 | ||||
Purchase of common shares | (5,701) | (5,701) | ||||
Other comprehensive loss | 5,416 | 5,416 | ||||
Balance at Mar. 31, 2019 | $ 7,753 | $ 205,310 | $ 79,558 | $ (44,685) | $ (13,456) | $ 234,480 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends, per share | $ 0.26 | $ 0.20 |
Stock issued pursuant to stock-based compensation | 25,124 | 23,456 |
Shares repurchased during period | 107,815 | 11,456 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. All share and per share data in the unaudited consolidated financial statements and accompanying notes have been restated to give effect to the 20% stock dividend paid on December 14, 2018. Certain amounts in prior-period financial statements have been reclassified to conform to the current period’s presentation. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10 -K for the year ended December 31, 2018 . |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 2 – Intangible Assets The Company accounts for intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, “Goodwill and Other Intangible Assets , ” (“FASB ASC 350”), which requires that intangibles with indefinite useful lives be tested annually for impairment and those with finite useful lives be amortized over their useful lives. Details of the Company’s intangible assets are as follows: March 31, 2019 December 31, 2018 Gross Carrying Accumulated Gross Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Assets eligible for amortization: Customer lists $ 4,288 $ (3,163) $ 4,288 $ (3,071) Patents 72 (17) 72 (16) Non-compete agreements 332 (332) 332 (326) Software 234 (234) 234 (234) Other 500 (234) 500 (225) Unamortized intangible assets: Goodwill 1 12,796 (227) 12,796 (227) Total intangible assets $ 18,222 $ (4,207) $ 18,222 $ (4,099) 1 Amortization through December 31, 2001 prior to adoption of FASB ASC 350. The customer lists are amortized over seven and ten years; the patents over 18 years; the non-compete agreements over two and five years; software over three years; and other intangible assets over 15 years. Amortization of intangible assets amounted to $107,000 and $110,000 for the three-month periods ended March 31, 2019 and 2018, respectively. Estimated annual amortization of intangibles is as follows: $412,000 in 2019, $406,000 in each of 2020 and 2021, and $88,000 in each of 2022 and 2023. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3 – Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. There were no antidilutive shares in the three months ended March 31, 2019 and 2018. The calculations of basic and diluted earnings per share are as follows: Three Months Ended March 31, (In thousands except share and per share data) 2019 2018 Basic Net income $ 8,163 $ 8,092 Weighted-average common shares outstanding 14,455,527 14,679,619 Basic earnings per share $ .56 $ .55 Diluted Net income $ 8,163 $ 8,092 Weighted-average common shares outstanding 14,455,527 14,679,619 Effect of dilutive restricted stock and stock appreciation rights 253,168 226,901 Weighted-average common shares outstanding assuming dilution 14,708,695 14,906,520 Diluted earnings per share $ .55 $ .54 |
Stock Repurchases
Stock Repurchases | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchases | Note 4 – Stock Repurchases The Company maintains a treasury stock buyback program pursuant to which the Board of Directors has authorized the repurchase of up to 500, 000 shares of the Company’s common stock. As restored by the Board of Directors on January 29, 2019, the program provides that the Company may repurchase up to an aggregate of 500,000 shares of common stock and has no expiration date. The Company repurchased 107,815 shares during the three-month period ended March 31, 2019 and 11,456 shares during the three-month period ended March 31, 2018. As of March 31, 2019, 497,000 shares remained available for repurchase under the program. Repurchases may be made in the open market or through negotiated transactions from time to time depending on market conditions. |
Industry Segment Information
Industry Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 5 – Industry Segment Information The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and faith-based ministries as well as supporting the banking needs of the Information Services segment. The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10 -K for the year ended December 31, 2018. Management evaluates segment performance based on tax-equivalized* pre-tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value. Substantially all revenue originates from, and all long-lived assets are located within the United States, and no revenue from any customer of any segment exceeds 10% of th e Company’s consolidated revenue. Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Segment interest income is a function of the relative share of average funding sources generated by each segment multiplied by the following rates: ● Information Services – fixed or variable rates depending upon the specific characteristics of the funding source, and ● Banking Services – a variable rate that is based upon the overall performance of Banking Services’ earning assets. Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other. Summarized information about the Company ’s operations in each industry segment is as follows: Corporate, Information Banking Eliminations (In thousands) Services Services and Other Total Three Months Ended March 31, 2019 Fee income from customers $ 26,796 $ 391 $ (174) $ 27,013 Interest income* 6,177 7,486 (225) 13,438 Interest expense — 1,290 — 1,290 Intersegment income (expense) — 519 (519) — Tax-equivalized pre-tax income* 7,588 3,260 (398) 10,450 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,446 — — 1,446 Total Assets 874,971 832,326 (22,416) 1,684,881 Funding Sources 647,590 591,199 — 1,238,789 Three Months Ended March 31, 2018 Fee income from customers $ 24,872 $ 376 $ 126 $ 25,374 Interest income* 6,157 6,895 (1,077) 11,975 Interest expense — 679 — 679 Intersegment income (expense) — 462 (462) — Tax-equivalized pre-tax income* 7,375 4,064 (951) 10,488 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,885 — — 1,885 Total Assets 878,199 858,283 (85,680) 1,650,802 Funding Sources 644,909 595,837 — 1,240,746 * Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018. The tax-equivalent adjustment was approximately $541,000 and $687,000 for the three months ended March 31, 2019 and 2018, respectively. |
Loans by Type
Loans by Type | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows: March 31, December 31, (In thousands) 2019 2018 Commercial and industrial $ 313,404 $ 277,091 Real estate Commercial: Mortgage 93,268 95,605 Construction 15,293 11,858 Faith-based: Mortgage 312,164 316,147 Construction 17,070 20,576 Other 110 310 Total loans $ 751,309 $ 721,587 The following table presents the aging of loans by loan categories at March 31, 2019 and December 31, 2018: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans March 31, 2019 Commercial and industrial $ 313,404 $ — $ — $ — $ — $ 313,404 Real estate Commercial: Mortgage 93,110 — 158 — — 93,268 Construction 15,293 — — — — 15,293 Faith-based: Mortgage 312,164 — — — — 312,164 Construction 17,070 — — — — 17,070 Other 110 — — — — 110 Total $ 751,151 $ — $ 158 $ — $ — $ 751,309 December 31, 2018 Commercial and industrial $ 277,091 $ — $ — $ — $ — $ 277,091 Real estate Commercial: Mortgage 95,605 — — — — 95,605 Construction 11,858 — — — — 11,858 Faith-based: Mortgage 316,147 — — — — 316,147 Construction 20,576 — — — — 20,576 Other 310 — — — — 310 Total $ 721,587 $ — $ — $ — $ — $ 721,587 The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2019 and December 31, 2018: Loans Performing Nonperforming Subject to Loans Subject to Loans Subject Normal Special to Special (In thousands) Monitoring 1 Monitoring 2 Monitoring 2 Total Loans March 31, 2019 Commercial and industrial $ 311,776 $ 1,628 $ — $ 313,404 Real estate Commercial: Mortgage 93,110 158 — 93,268 Construction 15,293 — — 15,293 Church, church-related: Mortgage 310,986 1,178 — 312,164 Construction 17,070 — — 17,070 Other 110 — — 110 Total $ 748,345 $ 2,964 $ — $ 751,309 December 31, 2018 Commercial and industrial $ 275,308 $ 1,783 $ — $ 277,091 Real estate Commercial: Mortgage 95,447 158 — 95,605 Construction 11,858 — — 11,858 Church, church-related: Mortgage 314,940 1,207 — 316,147 Construction 20,576 — — 20,576 Other 310 — — 310 Total $ 718,439 $ 3,148 $ — $ 721,587 1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations. 2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. There were no non-accrual loans, loans delinquent 90 days or more and still accruing interest, or loans classified as troubled debt restructuring at March 31, 2019 or December 31, 2018. There were no foreclosed loans recorded as other real estate owned (included in other assets) as of March 31, 2019 or December 31, 2018. A summary of the activity in the allowance for loan losses from December 31, 2018 to March 31, 2019 is as follows: December 31, Charge- March 31, (In thousands) 2018 Offs Recoveries Provision 2019 Commercial and industrial $ 4,179 $ — $ 11 $ 529 $ 4,719 Real estate Commercial: Mortgage 1,417 — — (33) 1,384 Construction 89 — — 26 115 Church, church-related: Mortgage 3,961 — — (51) 3,910 Construction 155 — — (27) 128 Other 424 — — (194) 230 Total $ 10,225 $ — $ 11 $ 250 $ 10,486 A summary of the activity in the allowance for loan losses from December 31, 2017 to March 31, 2018 is as follows: December 31, Charge- March 31, (In thousands) 2017 Offs Recoveries Provision 2018 Commercial and industrial $ 3,652 $ — $ 5 $ 320 $ 3,977 Real estate Commercial: Mortgage 1,394 — — (53) 1,341 Construction 70 — — 48 118 Church, church-related: Mortgage 3,962 — — (106) 3,856 Construction 196 — — 22 218 Industrial Revenue Bond 52 — — (12) 40 Other 879 — — (219) 660 Total $ 10,205 $ — $ 5 $ — $ 10,210 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies In the normal course of business, the Company is party to activities that contain credit, market and operational risks that are not reflected in whole or in part in the Company’s consolidated financial statements. Such activities include traditional off-balance sheet credit-related financial instruments and commitments under operating leases. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. The Company’s maximum potential exposure to credit loss in the event of no nperformance by the other party to the financial instrument for commitments to extend credit, commercial letters of credit and standby letters of credit is represented by the contractual amounts of those instruments. At March 31, 2019 and December 31, 2018, no amounts have been accrued for any estimated losses for these instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial and standby letters of credit are conditional commitments issued by the Company or its subsidiaries to guarantee the performance of a customer to a third party. These off-balance sheet financial instruments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At March 31, 2019, the balance of unused loan commitments, standby and commercial letters of credit were $145,100,000, $11,029,000, and $3,791,000, respectively. Since some of the financial instruments may expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. Commitments to extend credit and letters of credit are subject to the same underwriting standards as those financial instruments included on the consolidated balan ce sheets. The Company evaluates each customer’s credit worthiness on a case -by-case basis. The amount of collateral obtained, if deemed necessary upon extension of the credit, is based on management’s credit evaluation of the borrower. Collateral held var ies, but is generally accounts receivable, inventory, residential or income-producing commercial property or equipment. In the event of nonperformance, the Company or its subsidiaries may obtain and liquidate the collateral to recover amounts paid under guarantees on these financial instruments. The following table summarizes contractual cash obligations of the Company related to time deposits at March 31, 2019: Amount of Commitment Expiration per Period Less than 1-3 3-5 Over 5 (In thousands) Total 1 Year Years Years Years Time deposits $ 74,138 $ 52,181 $ 19,504 $ 2,453 $ — Total $ 74,138 $ 52,181 $ 19,504 $ 2,453 $ — The Company and its subsidiaries are involved in various pending legal actions and proceedings in which claims for damages are asserted. Management, after discussion with legal counsel, believes the ultimate resolution of these legal actions and proceedings will not have a material effect upon the Company’s consolidated financial position or results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 8 – Stock-Based Compensation The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) permits the issuance of up to 1,500 ,000 shares of the Company’s common stock in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance awards. The Company may issue shares out of treasury stock for these awards. During the three months ended March 31, 2019, 25,124 restricted shares, 36,403 performance-based restricted shares, and 0 SARs were granted under the Omnibus Plan. Restricted Stock Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over a three-year vesting period whereas restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period, with the exception of those shares granted in lieu of cash payments for retainer fees which are expensed in the period earned. Beginning on February 2, 2017, restricted shares granted to Company employees are amortized to expense over the three-year cliff vesting period. As of March 31, 2019, the total unrecognized compensation expense related to non-vested restricted shares was $2,150,000, and the related weighted-average period over which it is expected to be recognized is approximately 1.15 years. Following is a summary of the activity of the restricted stock: Three Months Ended March 31, 2019 Shares Fair Value Balance at December 31, 2018 99,724 $ 45.48 Granted 25,124 49.04 Vested (11,196) 37.73 Balance at March 31, 2019 113,652 $ 47.03 Performance-Based Restricted Stock In February of 2017, the Company granted three- year performance based restricted stock (“PBRS”) awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2017 through December 31, 2019. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares outstanding at March 31, 2019 was 30,057 with a grant date fair value of $49.33 per share. The 2019 expense related to these grants is currently estimated to be $655,000 and is based on the grant date fair value of the awa rds and the Company’s achievement of 132% of the target financial goals. The estimated expense for 2019 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals. In February and July of 2018, the Company granted three-year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2018 through December 31, 2020. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares outstanding at March 31, 2019 was 35,258 with an average grant date fair value of $49.04 per share. The 2019 expense related to these grants is currently estimated to be $829,000 and is based on the grant date fair value of the awards and the Company’s achievement of 144% of the target financial goals. The estimated expense for 2019 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals. In February of 2019, the Company granted three- year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2019 through December 31, 2021. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares outstanding at March 31, 2019 was 36,403 with an average grant date fair value of $49.10 per share. The 2019 expense related to these grants is currently estimated to be $595,000 and is based on the grant date fair value of the awards and the Company’s achievement of 100% of the target financial goals. The estimated expense for 2019 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals. SARs There were no SARs granted and no expense recognized during the three months ended March 31, 2019. Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2019: Weighted- Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term Years (In thousands) Balance at December 31, 2018 237,121 $ 29.86 3.50 $ 5,468 Exercised (11,335) 21.95 — — Exercisable at March 31, 2019 225,786 $ 30.26 3.33 $ 3,848 There were no non-vested SARs at March 31, 2019. |
Defined Pension Plans
Defined Pension Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Pension Plans | Note 9 – Defined Pension Plans The Company has a noncontributory defined-benefit pension plan, which covers most of its employees. Effective December 31, 2016, the Plan was closed to all new participants. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs: Estimated Actual (In thousands) 2019 2018 Service cost – benefits earned during the year $ 3,708 $ 4,017 Interest cost on projected benefit obligations 4,083 3,703 Expected return on plan assets (4,754) (5,202) Net amortization 1,634 1,522 Net periodic pension cost $ 4,671 $ 4,040 Pension costs recorded to expense were $1,179,000 and $1,049,000 for the three-month periods ended March 31, 2019 and 2018, respectively. Pension costs increased in 2019 primarily due to a decrease in the discount rate. The Company made no contribution to the plan during the three-month period ended March 31, 2019 and is evaluating the amount of additional contributions, if any, in the remainder of 2019. In addition to the above funded benefit plan, the Company has an unfunded supplemental executive retirement plan which covers key executives of the Company. This is a noncontributory plan in which the Company and its subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as its defined benefit plan. The following table represents the components of the net periodic pension costs for 2018 and an estimate for 2019: Estimated Actual (In thousands) 2019 2018 Service cost – benefits earned during the year $ 97 $ 92 Interest cost on projected benefit obligation 408 348 Net amortization 276 581 Net periodic pension cost $ 781 $ 1,021 Pension costs recorded to expense were $195,000 and $255,000 for the three-month periods ended March 31, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes As of March 31, 2019 , the Company’s unrecognized t ax benefits were approximately $1,451,000, of which $1,326,000 would, if recognized, affect the Company’s effective tax rate . As of December 31, 2018, the Company's unrecognized tax benefits were approximately $1,403,000, of which $1,272,000 would, if recognized, affect the Company's effective tax rate. During the next 12 months, the Company may realize a reduction of its unrecognized tax benefits of approximately $317,000 due to the lapse of federal and state statutes of limitations. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The Company had $154,000 and $136,000 of gross interest accrued as of March 31, 2019 and December 31, 2018, respectively. There were no penalties for unrecognized tax benefits accrued at March 31, 2019 and December 31, 2018. The Company is subject to income tax in the U.S. federal jurisdiction and numerous state jurisdictions. U.S. federal income tax returns for tax years 2015 through 2017 remain subject to examination by the Internal Revenue Service. In addition, the Company is subject to state tax examinations for the tax years 2014 through 2017. |
Investment in Securities
Investment in Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Securities | Note 11 – Investment in Securities Investment securities available-for- sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: March 31, 2019 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 327,139 $ 8,585 $ 181 $ 335,543 U.S. government agencies 104,273 198 820 103,651 Certificates of deposit 1,995 — — 1,995 Total $ 433,407 $ 8,783 $ 1,001 $ 441,189 December 31, 2018 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 332,732 $ 3,791 $ 1,806 $ 334,717 U.S. government agencies 106,153 86 1,417 104,822 Certificates of deposit 1,995 — — 1,995 Total $ 440,880 $ 3,877 $ 3,223 $ 441,534 The fair values of securities with unrealized losses are as follows: March 31, 2019 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair Value Losses State and political subdivisions $ — $ — $ 22,617 $ 181 $ 22,617 $ 181 U.S. government agencies 4,945 5 44,251 815 49,196 820 Certificates of deposit — — — — — — Total $ 4,945 $ 5 $ 66,868 $ 996 $ 71,813 $ 1,001 December 31, 2018 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair Value Losses State and political subdivisions $ 91,248 $ 556 $ 60,546 $ 1,250 $ 151,794 $ 1,806 U.S. government agencies 30,409 130 38,005 1,287 68,414 1,417 Certificates of deposit — — — — — — Total $ 121,657 $ 686 $ 98,551 $ 2,537 $ 220,208 $ 3,223 There were 40 securities, or 13% of the total (39 greater than 12 months), in an unrealized loss position as of March 31, 2019. There were 169 securities, or 46% of the total (24 greater than 12 months), in an unrealized loss position as of March 31, 2018. All unrealized losses were reviewed to determine whether the losses were other than temporary. Management believes that all unrealized losses are temporary since they were market driven, and it is more likely than not that the Company will not be required to sell prior to recovery of the amortized basis. The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. March 31, 2019 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 17,585 $ 17,607 Due after 1 year through 5 years 123,001 124,343 Due after 5 years through 10 years 241,321 248,393 Due after 10 years 51,500 50,846 Total $ 433,407 $ 441,189 Proceeds from sales of investment securities classified as available for sale were $1,101,000 and $9,543,000 for the three months ended March 31, 2019 and 2018, respectively. Gross realized gains were $11,000 and $13,000 for the three months ended March 31, 2019 and 2018, respectively. There were no securities pledged to secure public deposits and for other purposes at March 31, 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 12 – Fair Value of Financial Instruments Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: March 31, 2019 December 31, 2018 Carrying Carrying (In thousands) Amount Fair Value Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 184,354 $ 184,354 $ 230,933 $ 230,933 Investment securities 441,189 441,189 441,534 441,534 Loans, net 740,823 739,240 711,362 711,090 Accrued interest receivable 6,489 6,489 7,069 7,069 Total $ 1,372,855 $ 1,371,272 $ 1,390,898 $ 1,390,626 Balance sheet liabilities: Deposits $ 655,432 $ 655,563 $ 721,926 $ 722,018 Accounts and drafts payable 739,357 739,357 694,360 694,360 Accrued interest payable 157 157 91 91 Total $ 1,394,946 $ 1,395,077 $ 1,416,377 $ 1,416,469 The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents - The carrying amount approximates fair value. Investment in Securities - The fair value is measured on a recurring basis using Level 2 valuations. Refer to Note 11 , “Investment in Secur ities, ” for fair value and unrealized gains and losses by investment type. Loans - The fair value is estimated using present values of future cash flows discounted at risk-adjusted interest rates for each loan category designated by management and is therefore a Level 3 valuation. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses result in a fair valuation. Accrued Interest Receivable - The carrying amount approximates fair value. Deposits - The fair value of demand deposits, savings deposits and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities and therefore, is a Level 2 valuation. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market or the benefit derived from the customer relationship inherent in existing deposits. Accounts and Drafts Payable - The carrying amount approximates fair value. Accrued Interest - The carrying amount approximates fair value. There were no transfers between Levels 1 and 2 of the fair value hierarchy for the three months ended March 31, 2019 and 2018. No financial instruments are measured using Level 3 inputs for the three months ended March 31, 2019 and 2018. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 13 – Revenue from Contracts with Customers On January 1, 2018, the Company adopted FASB ASC 606, Revenue from Contracts with Customers (“FASB ASC 606”) and selected the modified retrospective transition method. The adoption of this new standard did not impact the Company’s results of oper ations or balance sheet and there was no cumulative effect of initially applying this new revenue standard to the opening balance of retained earnings. Since interest income on loans and securities are both excluded from this topic, a significant portion of the Company’s revenues are not subject to the new guidance. The services that fall within the scope of FASB ASC 606 are presented within fee revenue and other income in the Consolidated Statements of Income and are recognized as revenue as the obligation to the customer is satisfied. Services within the scope of FASB ASC 606 include invoice processing and payment fees, bank service fees, and other real estate owned (“OREO”). Invoice processing fees – The Company earns fees on a per-item or monthly basis for the invoice processing services rendered on behalf of customers. Per-item fees are recognized at the point in time when the performance obligation is satisfied. Monthly fees are earned over the course of a month, representing the period over which the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components. Invoice payment fees – The Company earns fees on a transaction level basis for invoice payment services when making customer payments. Fees are recognized at the point in time when the payment transactions are made, which is when the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components. Bank service fees – Revenue from service fees consists of service charges and fees on deposit accounts under depository agreements with customers to provide access to deposited funds. Service charges on deposit accounts are transaction based fees that are recognized at the point in time when the performance obligation is satisfied. Service charges are recognized on a monthly basis representing the period over which the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components. OREO – The Company currently does not have any OREO and has not in recent years. Net gains or losses would be recorded when other real estate is sold to a third party and substantially all of the consideration for the transfer of property is received. For the Three Months Ended March 31, (In thousands) 2019 2018 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 20,542 $ 19,149 Invoice payment fees 5,915 5,678 Information services payment and processing revenue 26,457 24,827 Bank service fees 376 335 Fee revenue (in-scope of FASB ASC 606) 26,833 25,162 Other income (out-of-scope of FASB ASC 606) 180 212 Total fee revenue and other income 27,013 25,374 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) 1 11,357 10,609 Total net revenue $ 38,370 $ 35,983 1 The Company earns interest income from the balances generated during the invoice processing and payment cycle and on deposit accounts, which is an integral component of the Company’s compensation; but, is out-of-scope of FASB ASC 606. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 14 – Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02 – Leases (ASC Topic 842). The Company leases certain premises under operating leases. As of March 31, 2019, the Company had lease liabilities of $7,590,000 and right-of-use assets of $6,895,000. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Presented within occupancy expense on the Consolidated Statements of Income for the three months ended March 31, 2019, operating lease cost was $420,000, short-term lease cost was $36,000, and there was no variable lease cost. For the three months ended March 31, 2019, the weighted average remaining lease term for the operating leases was 7.0 years and the weighted average discount rate used in the measurement of operating lease liabilities was 5.5%. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. A maturity analysis of operating lease liabilities and undiscounted cash flows for the three months ended March 31, 2019 was as follows: March 31, (In thousands) 2019 Lease payments due Less than 1 year $ 1,619 1-2 years 1,740 2-3 years 1,555 3-4 years 1,400 4-5 years 468 Over 5 years 2,265 Total undiscounted cash flows 9,047 Discount on cash flows 1,457 Total lease liability $ 7,590 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the three months ended March 31, 2019. At March 31, 2019, the Company had one lease that had not yet commenced, but is expected to create approximately $800,000 of additional lease liabilities and right-of-use assets for the Company. This lease is anticipated to commence in 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events In accordance with FASB ASC 855, “Subsequent Events,” the Company has evaluated subsequent events after the consolidated balance sheet date of March 31, 2019, and there were no events identified that would require additional disclosures to prevent the Company’s unaudited consolidated financial statements from being misleading. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: March 31, 2019 December 31, 2018 Gross Carrying Accumulated Gross Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Assets eligible for amortization: Customer lists $ 4,288 $ (3,163) $ 4,288 $ (3,071) Patents 72 (17) 72 (16) Non-compete agreements 332 (332) 332 (326) Software 234 (234) 234 (234) Other 500 (234) 500 (225) Unamortized intangible assets: Goodwill 1 12,796 (227) 12,796 (227) Total intangible assets $ 18,222 $ (4,207) $ 18,222 $ (4,099) 1 Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | There were no antidilutive shares in the three months ended March 31, 2019 and 2018. The calculations of basic and diluted earnings per share are as follows: Three Months Ended March 31, (In thousands except share and per share data) 2019 2018 Basic Net income $ 8,163 $ 8,092 Weighted-average common shares outstanding 14,455,527 14,679,619 Basic earnings per share $ .56 $ .55 Diluted Net income $ 8,163 $ 8,092 Weighted-average common shares outstanding 14,455,527 14,679,619 Effect of dilutive restricted stock and stock appreciation rights 253,168 226,901 Weighted-average common shares outstanding assuming dilution 14,708,695 14,906,520 Diluted earnings per share $ .55 $ .54 |
Industry Segment Information (T
Industry Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Company's Operations in Each Segment | Summarized information about the Company ’s operations in each industry segment is as follows: Corporate, Information Banking Eliminations (In thousands) Services Services and Other Total Three Months Ended March 31, 2019 Fee income from customers $ 26,796 $ 391 $ (174) $ 27,013 Interest income* 6,177 7,486 (225) 13,438 Interest expense — 1,290 — 1,290 Intersegment income (expense) — 519 (519) — Tax-equivalized pre-tax income* 7,588 3,260 (398) 10,450 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,446 — — 1,446 Total Assets 874,971 832,326 (22,416) 1,684,881 Funding Sources 647,590 591,199 — 1,238,789 Three Months Ended March 31, 2018 Fee income from customers $ 24,872 $ 376 $ 126 $ 25,374 Interest income* 6,157 6,895 (1,077) 11,975 Interest expense — 679 — 679 Intersegment income (expense) — 462 (462) — Tax-equivalized pre-tax income* 7,375 4,064 (951) 10,488 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,885 — — 1,885 Total Assets 878,199 858,283 (85,680) 1,650,802 Funding Sources 644,909 595,837 — 1,240,746 * Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018. The tax-equivalent adjustment was approximately $541,000 and $687,000 for the three months ended March 31, 2019 and 2018, respectively. |
Loans by Type (Tables)
Loans by Type (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: March 31, December 31, (In thousands) 2019 2018 Commercial and industrial $ 313,404 $ 277,091 Real estate Commercial: Mortgage 93,268 95,605 Construction 15,293 11,858 Faith-based: Mortgage 312,164 316,147 Construction 17,070 20,576 Other 110 310 Total loans $ 751,309 $ 721,587 |
Schedule of the Aging Loans by Loan Categories | The following table presents the aging of loans by loan categories at March 31, 2019 and December 31, 2018: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans March 31, 2019 Commercial and industrial $ 313,404 $ — $ — $ — $ — $ 313,404 Real estate Commercial: Mortgage 93,110 — 158 — — 93,268 Construction 15,293 — — — — 15,293 Faith-based: Mortgage 312,164 — — — — 312,164 Construction 17,070 — — — — 17,070 Other 110 — — — — 110 Total $ 751,151 $ — $ 158 $ — $ — $ 751,309 December 31, 2018 Commercial and industrial $ 277,091 $ — $ — $ — $ — $ 277,091 Real estate Commercial: Mortgage 95,605 — — — — 95,605 Construction 11,858 — — — — 11,858 Faith-based: Mortgage 316,147 — — — — 316,147 Construction 20,576 — — — — 20,576 Other 310 — — — — 310 Total $ 721,587 $ — $ — $ — $ — $ 721,587 |
Schedule of Credit Exposure of the Loan Portfolio | The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2019 and December 31, 2018: Loans Performing Nonperforming Subject to Loans Subject to Loans Subject Normal Special to Special (In thousands) Monitoring 1 Monitoring 2 Monitoring 2 Total Loans March 31, 2019 Commercial and industrial $ 311,776 $ 1,628 $ — $ 313,404 Real estate Commercial: Mortgage 93,110 158 — 93,268 Construction 15,293 — — 15,293 Church, church-related: Mortgage 310,986 1,178 — 312,164 Construction 17,070 — — 17,070 Other 110 — — 110 Total $ 748,345 $ 2,964 $ — $ 751,309 December 31, 2018 Commercial and industrial $ 275,308 $ 1,783 $ — $ 277,091 Real estate Commercial: Mortgage 95,447 158 — 95,605 Construction 11,858 — — 11,858 Church, church-related: Mortgage 314,940 1,207 — 316,147 Construction 20,576 — — 20,576 Other 310 — — 310 Total $ 718,439 $ 3,148 $ — $ 721,587 1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations. 2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Schedule of Recorded Investment and Unpaid Principal Balance for Impaired Loans | A summary of the activity in the allowance for loan losses from December 31, 2018 to March 31, 2019 is as follows: December 31, Charge- March 31, (In thousands) 2018 Offs Recoveries Provision 2019 Commercial and industrial $ 4,179 $ — $ 11 $ 529 $ 4,719 Real estate Commercial: Mortgage 1,417 — — (33) 1,384 Construction 89 — — 26 115 Church, church-related: Mortgage 3,961 — — (51) 3,910 Construction 155 — — (27) 128 Other 424 — — (194) 230 Total $ 10,225 $ — $ 11 $ 250 $ 10,486 A summary of the activity in the allowance for loan losses from December 31, 2017 to March 31, 2018 is as follows: December 31, Charge- March 31, (In thousands) 2017 Offs Recoveries Provision 2018 Commercial and industrial $ 3,652 $ — $ 5 $ 320 $ 3,977 Real estate Commercial: Mortgage 1,394 — — (53) 1,341 Construction 70 — — 48 118 Church, church-related: Mortgage 3,962 — — (106) 3,856 Construction 196 — — 22 218 Industrial Revenue Bond 52 — — (12) 40 Other 879 — — (219) 660 Total $ 10,205 $ — $ 5 $ — $ 10,210 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Cash Obligation of Operating Lease Commitments | The following table summarizes contractual cash obligations of the Company related to time deposits at March 31, 2019: Amount of Commitment Expiration per Period Less than 1-3 3-5 Over 5 (In thousands) Total 1 Year Years Years Years Time deposits $ 74,138 $ 52,181 $ 19,504 $ 2,453 $ — Total $ 74,138 $ 52,181 $ 19,504 $ 2,453 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | Following is a summary of the activity of the restricted stock: Three Months Ended March 31, 2019 Shares Fair Value Balance at December 31, 2018 99,724 $ 45.48 Granted 25,124 49.04 Vested (11,196) 37.73 Balance at March 31, 2019 113,652 $ 47.03 |
Summary of SARs Activity | Following is a summary of the activity of the Company’s SARs program for the three-month period ended March 31, 2019: Weighted- Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term Years (In thousands) Balance at December 31, 2018 237,121 $ 29.86 3.50 $ 5,468 Exercised (11,335) 21.95 — — Exercisable at March 31, 2019 225,786 $ 30.26 3.33 $ 3,848 |
Defined Pension Plans (Tables)
Defined Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The following table represents the components of the net periodic pension costs: Estimated Actual (In thousands) 2019 2018 Service cost – benefits earned during the year $ 3,708 $ 4,017 Interest cost on projected benefit obligations 4,083 3,703 Expected return on plan assets (4,754) (5,202) Net amortization 1,634 1,522 Net periodic pension cost $ 4,671 $ 4,040 |
Schedule of Unfunded Supplemental Executive Retirement Plan | The following table represents the components of the net periodic pension costs for 2018 and an estimate for 2019: Estimated Actual (In thousands) 2019 2018 Service cost – benefits earned during the year $ 97 $ 92 Interest cost on projected benefit obligation 408 348 Net amortization 276 581 Net periodic pension cost $ 781 $ 1,021 |
Investment in Securities (Table
Investment in Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: March 31, 2019 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 327,139 $ 8,585 $ 181 $ 335,543 U.S. government agencies 104,273 198 820 103,651 Certificates of deposit 1,995 — — 1,995 Total $ 433,407 $ 8,783 $ 1,001 $ 441,189 December 31, 2018 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 332,732 $ 3,791 $ 1,806 $ 334,717 U.S. government agencies 106,153 86 1,417 104,822 Certificates of deposit 1,995 — — 1,995 Total $ 440,880 $ 3,877 $ 3,223 $ 441,534 |
Schedule of the Fair Value of Securities with Unrealized Losses | The fair values of securities with unrealized losses are as follows: March 31, 2019 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair Value Losses State and political subdivisions $ — $ — $ 22,617 $ 181 $ 22,617 $ 181 U.S. government agencies 4,945 5 44,251 815 49,196 820 Certificates of deposit — — — — — — Total $ 4,945 $ 5 $ 66,868 $ 996 $ 71,813 $ 1,001 December 31, 2018 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair Value Losses State and political subdivisions $ 91,248 $ 556 $ 60,546 $ 1,250 $ 151,794 $ 1,806 U.S. government agencies 30,409 130 38,005 1,287 68,414 1,417 Certificates of deposit — — — — — — Total $ 121,657 $ 686 $ 98,551 $ 2,537 $ 220,208 $ 3,223 |
Schedule of Amortized Cost and Fair Value of Investment | The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. March 31, 2019 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 17,585 $ 17,607 Due after 1 year through 5 years 123,001 124,343 Due after 5 years through 10 years 241,321 248,393 Due after 10 years 51,500 50,846 Total $ 433,407 $ 441,189 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of the Fair Value of Financial Instruments | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: March 31, 2019 December 31, 2018 Carrying Carrying (In thousands) Amount Fair Value Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 184,354 $ 184,354 $ 230,933 $ 230,933 Investment securities 441,189 441,189 441,534 441,534 Loans, net 740,823 739,240 711,362 711,090 Accrued interest receivable 6,489 6,489 7,069 7,069 Total $ 1,372,855 $ 1,371,272 $ 1,390,898 $ 1,390,626 Balance sheet liabilities: Deposits $ 655,432 $ 655,563 $ 721,926 $ 722,018 Accounts and drafts payable 739,357 739,357 694,360 694,360 Accrued interest payable 157 157 91 91 Total $ 1,394,946 $ 1,395,077 $ 1,416,377 $ 1,416,469 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers | For the Three Months Ended March 31, (In thousands) 2019 2018 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 20,542 $ 19,149 Invoice payment fees 5,915 5,678 Information services payment and processing revenue 26,457 24,827 Bank service fees 376 335 Fee revenue (in-scope of FASB ASC 606) 26,833 25,162 Other income (out-of-scope of FASB ASC 606) 180 212 Total fee revenue and other income 27,013 25,374 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) 1 11,357 10,609 Total net revenue $ 38,370 $ 35,983 1 The Company earns interest income from the balances generated during the invoice processing and payment cycle and on deposit accounts, which is an integral component of the Company’s compensation; but, is out-of-scope of FASB ASC 606. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and undiscounted cash flows for the three months ended March 31, 2019 was as follows: March 31, (In thousands) 2019 Lease payments due Less than 1 year $ 1,619 1-2 years 1,740 2-3 years 1,555 3-4 years 1,400 4-5 years 468 Over 5 years 2,265 Total undiscounted cash flows 9,047 Discount on cash flows 1,457 Total lease liability $ 7,590 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 107 | $ 110 |
2019 | 412 | |
2020 | 406 | |
2021 | 406 | |
2022 | 88 | |
2023 | $ 88 | |
Customer Lists [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 7 years | |
Customer Lists [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 10 years | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 18 years | |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 3 years | |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 15 years | |
Non-compete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 2 years | |
Non-compete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization period | 5 years |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Company's Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Unamortized intangible assets: | |||
Goodwill, Gross Carrying Amount | [1] | $ 12,796 | $ 12,796 |
Goodwill, Accumulated Amortization | [1] | (227) | (227) |
Total intangible assets | 18,222 | 18,222 | |
Accumulated Amortization | (4,207) | (4,099) | |
Customer Lists [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 4,288 | 4,288 | |
Accumulated Amortization | (3,163) | (3,071) | |
Patents [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 72 | 72 | |
Accumulated Amortization | (17) | (16) | |
Non-compete Agreements [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 332 | 332 | |
Accumulated Amortization | (332) | (326) | |
Software [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 234 | 234 | |
Accumulated Amortization | (234) | (234) | |
Other [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | $ (234) | $ (225) | |
[1] | Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic: | ||
Net income | $ 8,163 | $ 8,092 |
Weighted-average common shares outstanding | 14,455,527 | 14,679,619 |
Basic earnings per share | $ 0.56 | $ 0.55 |
Diluted: | ||
Net Income | $ 8,163 | $ 8,092 |
Weighted-average common shares outstanding | 14,455,527 | 14,679,619 |
Effect of dilutive restricted stock and stock appreciation rights | 253,168 | 226,901 |
Weighted-average common shares outstanding assuming dilution | 14,708,695 | 14,906,520 |
Diluted earnings per share | $ 0.55 | $ 0.54 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Number of shares authorized to be repurchased | 500,000 | |
Shares repurchased | 107,815 | 11,456 |
Remaining number of shares available for repurchase | 497,000 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Fee revenue and other income: | ||||
Fee income from customers | $ 27,013 | $ 25,374 | ||
Interest income | [1] | 13,438 | 11,975 | |
Interest expense | 1,290 | 679 | ||
Intersegment income (expense) | ||||
Tax-equivalized pre-tax income | [1] | 10,450 | 10,488 | |
Goodwill | 12,569 | 12,569 | $ 12,569 | |
Other intangible assets, net | 1,446 | 1,885 | ||
Total assets | 1,684,881 | 1,650,802 | $ 1,695,176 | |
Funding Sources | 1,238,789 | 1,240,746 | ||
Information Services [Member] | ||||
Fee revenue and other income: | ||||
Fee income from customers | 26,796 | 24,872 | ||
Interest income | [1] | 6,177 | 6,157 | |
Interest expense | ||||
Intersegment income (expense) | ||||
Tax-equivalized pre-tax income | [1] | 7,588 | 7,375 | |
Goodwill | 12,433 | 12,433 | ||
Other intangible assets, net | 1,446 | 1,885 | ||
Total assets | 874,971 | 878,199 | ||
Funding Sources | 647,590 | 644,909 | ||
Banking Services [Member] | ||||
Fee revenue and other income: | ||||
Fee income from customers | 391 | 376 | ||
Interest income | [1] | 7,486 | 6,895 | |
Interest expense | 1,290 | 679 | ||
Intersegment income (expense) | 519 | 462 | ||
Tax-equivalized pre-tax income | [1] | 3,260 | 4,064 | |
Goodwill | 136 | 136 | ||
Other intangible assets, net | ||||
Total assets | 832,326 | 858,283 | ||
Funding Sources | 591,199 | 595,837 | ||
Corporate Eliminations and Other [Member] | ||||
Fee revenue and other income: | ||||
Fee income from customers | (174) | 126 | ||
Interest income | [1] | (225) | (1,077) | |
Interest expense | ||||
Intersegment income (expense) | (519) | (462) | ||
Tax-equivalized pre-tax income | [1] | (398) | (951) | |
Goodwill | ||||
Other intangible assets, net | ||||
Total assets | (22,416) | (85,680) | ||
Funding Sources | ||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018. The tax-equivalent adjustment was approximately $541,000 and $687,000 for the three months ended March 31, 2019 and 2018, respectively. |
Loans by Type (Summary of Loan
Loans by Type (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Participating Mortgage Loans [Line Items] | ||
Loans | $ 751,309 | $ 721,587 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 313,404 | 277,091 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 93,268 | 95,605 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 15,293 | 11,858 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 312,164 | 316,147 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 17,070 | 20,576 |
Other Loan [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | $ 110 | $ 310 |
Loans by Type (Schedule of the
Loans by Type (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 751,309 | 721,587 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 313,404 | 277,091 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 93,268 | 95,605 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 15,293 | 11,858 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 312,164 | 316,147 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 17,070 | 20,576 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 110 | 310 |
Current [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 751,151 | 721,587 |
Current [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 313,404 | 277,091 |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 93,110 | 95,605 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 15,293 | 11,858 |
Current [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 312,164 | 316,147 |
Current [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 17,070 | 20,576 |
Current [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 110 | 310 |
30 to 59 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | 158 | |
60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | 158 | |
60 to 89 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due |
Loans by Type (Schedule of th_2
Loans by Type (Schedule of the Credit Exposure of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Participating Mortgage Loans [Line Items] | |||
Loans | $ 751,309 | $ 721,587 | |
Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 748,345 | 718,439 |
Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 2,964 | 3,148 |
Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Commercial and Industrial [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 313,404 | 277,091 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 311,776 | 275,308 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 1,628 | 1,783 |
Commercial and Industrial [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 93,268 | 95,605 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 93,110 | 95,447 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 158 | 158 |
Real Estate Commercial Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Construction [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 15,293 | 11,858 | |
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 15,293 | 11,858 |
Real Estate Commercial Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Church, church-related Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 312,164 | 316,147 | |
Real Estate Church, church-related Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 310,986 | 314,940 |
Real Estate Church, church-related Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 1,178 | 1,207 |
Real Estate Church, church-related Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Church, church-related Construction [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 17,070 | 20,576 | |
Real Estate Church, church-related Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 17,070 | 20,576 |
Real Estate Church, church-related Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Church, church-related Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Other Financing Receivable [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 110 | 310 | |
Other Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 110 | 310 |
Other Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Other Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
[1] | Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations. | ||
[2] | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Loans by Type (Summary of Allow
Loans by Type (Summary of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | $ 10,225 | $ 10,205 |
Charge-Offs | ||
Recoveries | 11 | 5 |
Provision | 250 | |
Ending Balance | 10,486 | 10,210 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 4,179 | 3,652 |
Charge-Offs | ||
Recoveries | 11 | 5 |
Provision | 529 | 320 |
Ending Balance | 4,719 | 3,977 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 1,417 | 1,394 |
Charge-Offs | ||
Recoveries | ||
Provision | (33) | (53) |
Ending Balance | 1,384 | 1,341 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 89 | 70 |
Charge-Offs | ||
Recoveries | ||
Provision | 26 | 48 |
Ending Balance | 115 | 118 |
Real Estate Church, church-related Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 3,961 | 3,962 |
Charge-Offs | ||
Recoveries | ||
Provision | (51) | (106) |
Ending Balance | 3,910 | 3,856 |
Real Estate Church, church-related Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 155 | 196 |
Charge-Offs | ||
Recoveries | ||
Provision | (27) | 22 |
Ending Balance | 128 | 218 |
Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 52 | |
Charge-Offs | ||
Recoveries | ||
Provision | (12) | |
Ending Balance | 40 | |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 424 | 879 |
Charge-Offs | ||
Recoveries | ||
Provision | (194) | (219) |
Ending Balance | $ 230 | $ 660 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unused loan commitments | $ 145,100 |
Standby letters of credit | 11,029 |
Commercial letters of credit | $ 3,791 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Company's Contractual Cash Obligations) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Time Deposits, Less than 1 Year | $ 52,181 |
Time Deposits, 1 to 3 Years | 19,504 |
Time Deposits, 3 to 5 Years | 2,453 |
Time Deposits, over 5 Years | |
Time Deposits, Total | 74,138 |
Commitments, Less than 1 Year | 52,181 |
Commitments, 1 to 3 Years | 19,504 |
Commitments, 3 to 5 Years | 2,453 |
Commitments, Over 5 Years | |
Commitments, Total | $ 74,138 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Incentive Plan, shares authorized | 1,500,000 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 2,150 | ||
Total unrecognized compensation expense, weighted average period | 1 year 1 month 24 days | ||
Vesting period | 3 years | ||
Granted, Shares | 25,124 | ||
Outstanding, Shares | 113,652 | 99,724 | |
Fair value of granted shares per share | $ 49.04 | ||
Performance-based restricted shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Granted, Shares | 36,403 | ||
Performance-based restricted shares [Member] | February 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Shares | 30,057 | ||
Fair value of granted shares per share | $ 49.33 | ||
Expense incurred to grant shares | $ 655 | ||
Performance-based restricted shares [Member] | February and July 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Shares | 35,258 | ||
Fair value of granted shares per share | $ 49.04 | ||
Expense incurred to grant shares | $ 829 | ||
Performance-based restricted shares [Member] | February 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Shares | 36,403 | ||
Fair value of granted shares per share | $ 49.10 | ||
Expense incurred to grant shares | $ 595 | ||
Performance-based restricted shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target opportunity for awards to vest | 0.00% | 0.00% | |
Performance-based restricted shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target opportunity for awards to vest | 150.00% | 150.00% | |
SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Shares | 0 | ||
Outstanding, Shares | 237,121 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Beginning balance | shares | 99,724 |
Granted | shares | 25,124 |
Vested | shares | (11,196) |
Ending balance | shares | 113,652 |
Fair Value | |
Beginning balance | $ / shares | $ 45.48 |
Granted | $ / shares | 49.04 |
Vested | $ / shares | 37.73 |
Ending balance | $ / shares | $ 47.03 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Company's SARs Activity) (Details) - SARs [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | 237,121 | |
Exercised | (11,335) | |
Ending balance | 237,121 | |
Exercisable | 225,786 | |
Beginning balance, Weighted Average Exercise Price | $ 29.86 | |
Exercised, Weighted Average Exercise Price | 21.95 | |
Ending balance, Weighted Average Exercise Price | $ 29.86 | |
Exercisable, Weighted Average Exercise Price | $ 30.26 | |
Beginning balance, Average Remaining Contractual Term Years | 3 years 6 months | |
Exercisable, Average Remaining Contractual Term Years | 3 years 3 months 29 days | |
Beginning balance, Aggregate Intrinsic Value | $ 5,468 | |
Ending balance, Aggregate Intrinsic Value | $ 5,468 | |
Exercisable, Aggregate Intrinsic Value | $ 3,848 |
Defined Pension Plans (Narrativ
Defined Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension period | 30 years | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension costs | $ 1,179 | $ 1,049 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension costs | $ 195 | $ 255 |
Defined Pension Plans (Schedule
Defined Pension Plans (Schedule of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | $ 3,708 | $ 4,017 |
Interest cost on projected benefit obligations | 4,083 | 3,703 |
Expected return on plan assets | (4,754) | (5,202) |
Net amortization | 1,634 | 1,522 |
Net periodic pension cost | 4,671 | 4,040 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | 97 | 92 |
Interest cost on projected benefit obligations | 408 | 348 |
Net amortization | 276 | 581 |
Net periodic pension cost | $ 781 | $ 1,021 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 1,451 | $ 1,403 |
Amounts of tax benefits that would affect effective tax rate if recognized | 1,326 | 1,272 |
Income tax accrued interest | 154 | 136 |
Income tax penalties accrued | ||
Statute of limitations | $ 317 |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of securities that had an unrealized loss | 40 | 169 | |
Number of securities that had an unrealized loss, greater than 12 months | 39 | 24 | |
Percentage of total securities | 13.00% | 46.00% | |
Proceeds from sales of securities available-for-sale | $ 1,101 | $ 9,543 | |
Gross realized gains | 11 | $ 13 | |
Securities pledged as collateral |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Fair Value | $ 441,189 | $ 441,534 |
Gross Unrealized Gains | 8,783 | 3,877 |
Gross Unrealized Losses | 1,001 | 3,223 |
Amortized Cost | 433,407 | 440,880 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Fair Value | 335,543 | 334,717 |
Gross Unrealized Gains | 8,585 | 3,791 |
Gross Unrealized Losses | 181 | 1,806 |
Amortized Cost | 327,139 | 332,732 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Fair Value | 103,651 | 104,822 |
Gross Unrealized Gains | 198 | 86 |
Gross Unrealized Losses | 820 | 1,417 |
Amortized Cost | 104,273 | 106,153 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Fair Value | 1,995 | 1,995 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Amortized Cost | $ 1,995 | $ 1,995 |
Investment in Securities (Sch_2
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Estimated fair value, less than 12 months | $ 4,945 | $ 121,657 |
Estimated fair value, 12 months or more | 66,868 | 98,551 |
Estimated fair value, total | 71,813 | 220,208 |
Unrealized losses, less than 12 months | 5 | 686 |
Unrealized losses, 12 months or more | 996 | 2,537 |
Unrealized losses, total | 1,001 | 3,223 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | 91,248 | |
Estimated fair value, 12 months or more | 22,617 | 60,546 |
Estimated fair value, total | 22,617 | 151,794 |
Unrealized losses, less than 12 months | 556 | |
Unrealized losses, 12 months or more | 181 | 1,250 |
Unrealized losses, total | 181 | 1,806 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | 4,945 | 30,409 |
Estimated fair value, 12 months or more | 44,251 | 38,005 |
Estimated fair value, total | 49,196 | 68,414 |
Unrealized losses, less than 12 months | 5 | 130 |
Unrealized losses, 12 months or more | 815 | 1,287 |
Unrealized losses, total | 820 | 1,417 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | ||
Estimated fair value, 12 months or more | ||
Estimated fair value, total | ||
Unrealized losses, less than 12 months | ||
Unrealized losses, 12 months or more | ||
Unrealized losses, total |
Investment in Securities (Sch_3
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 17,585 | |
Amortized Cost, Due after 1 year through 5 years | 123,001 | |
Amortized Cost, Due after 5 years through 10 years | 241,321 | |
Amortized Cost, Due after 10 years | 51,500 | |
Amortized Cost, Total | 433,407 | |
Fair Value, Due in 1 year or less | 17,607 | |
Fair Value, Due after 1 year through 5 years | 124,343 | |
Fair Value, Due after 5 years through 10 years | 248,393 | |
Fair Value, Due after 10 years | 50,846 | |
Fair Value, Total | $ 441,189 | $ 441,534 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 184,354 | $ 230,933 | $ 199,582 | $ 228,110 |
Investment securities, Carrying Amount | 441,189 | 441,534 | ||
Loans, net, Carrying Amount | 740,823 | 711,362 | ||
Accrued interest receivable, Carrying Amount | 6,489 | 7,069 | ||
Assets, Carrying Amount | 1,372,855 | 1,390,898 | ||
Cash and cash equivalents, Fair Value | 184,354 | 230,933 | ||
Investment securities, Fair Value | 441,189 | 441,534 | ||
Loans, net, Fair Value | 739,240 | 711,090 | ||
Accrued interest receivable, Fair Value | 6,489 | 7,069 | ||
Assets, Fair Value | 1,371,272 | 1,390,626 | ||
Deposits, Carrying Amount | 655,432 | 721,926 | ||
Accounts and drafts payable, Carrying Amount | 739,357 | 694,360 | ||
Accrued interest payable, Carrying Amount | 157 | 91 | ||
Liabilities, Carrying Amount | 1,394,946 | 1,416,377 | ||
Deposits, Fair Value | 655,563 | 722,018 | ||
Accounts and drafts payable, Fair Value | 739,357 | 694,360 | ||
Accrued interest payable, Fair Value | 157 | 91 | ||
Liabilities, Fair Value | $ 1,395,077 | $ 1,416,469 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Fee revenue and other income: | |||
In-scope of FASB ASC 606 - Invoice processing fees | $ 20,542 | $ 19,149 | |
In-scope of FASB ASC 606 - Invoice payment fees | 5,915 | 5,678 | |
Information services payment and processing revenue | 26,457 | 24,827 | |
Bank service fees | 376 | 335 | |
Fee revenue (in-scope of FASB ASC 606) | 26,833 | 25,162 | |
Other income (out-of-scope of FASB ASC 606) | 180 | 212 | |
Total fee revenue and other income | 27,013 | 25,374 | |
Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) | [1] | 11,357 | 10,609 |
Total net revenue | $ 38,370 | $ 35,983 | |
[1] | The Company earns interest income from the balances generated during the invoice processing and payment cycle and on deposit accounts, which is an integral component of the Company's compensation; but, is out-of-scope of FASB ASC 606. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease liabilities | $ 7,590 |
Right-of-use assets | 6,895 |
Short-term lease cost | 36 |
Operating lease cost | $ 420 |
Weighted average remaining lease term | 7 years |
Weighted average discount rate | 5.50% |
Additional lease liabilities | $ 800 |
Additional right-of-use assets | $ 800 |
Leases (Schedule of operating l
Leases (Schedule of operating lease liabilities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Lease payments due | |
Less than 1 year | $ 1,619 |
1-2 years | 1,740 |
2-3 years | 1,555 |
3-4 years | 1,400 |
4-5 years | 468 |
Over 5 years | 2,265 |
Total undiscounted cash flows | 9,047 |
Discount on cash flows | 1,457 |
Total lease liability | $ 7,590 |