Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 000-20827 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | CASS INFORMATION SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | MO | |
Entity Address, City or Town | St. Louis | |
Entity Address, State or Province | MO | |
Entity Tax Identification Number | 43-1265338 | |
Entity Address, Address Line One | 12444 Powerscourt Drive, Suite 550 | |
Entity Address, Postal Zip Code | 63131 | |
Local Phone Number | 506-5500 | |
Entity Information, Former Legal or Registered Name | N/A | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,497,763 | |
City Area Code | 314 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common stock, par value $.50 | |
Trading Symbol | CASS | |
Name of Exchange on which Security is Registered | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 24,472 | $ 15,042 |
Interest-bearing deposits in other financial institutions | 114,869 | 179,281 |
Federal funds sold and other short-term investments | 83,397 | 36,610 |
Cash and cash equivalents | 222,738 | 230,933 |
Securities available-for-sale, at fair value | 427,591 | 441,534 |
Loans | 767,384 | 721,587 |
Less: Allowance for loan losses | 10,509 | 10,225 |
Loans, net | 756,875 | 711,362 |
Payments in excess of funding | 208,225 | 160,777 |
Premises and equipment, net | 20,775 | 22,031 |
Investment in bank-owned life insurance | 17,484 | 17,384 |
Goodwill | 15,894 | 12,569 |
Other intangible assets, net | 3,170 | 1,554 |
Other assets | 108,258 | 97,032 |
Total assets | 1,781,010 | 1,695,176 |
Deposits: | ||
Noninterest-bearing | 310,695 | 313,258 |
Interest-bearing | 400,538 | 408,668 |
Total deposits | 711,233 | 721,926 |
Accounts and drafts payable | 762,075 | 694,360 |
Other liabilities | 61,085 | 49,042 |
Total liabilities | 1,534,393 | 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 September 30, 2019 and December 31, 2018 | 7,753 | 7,753 |
Additional paid-in capital | 205,775 | 205,770 |
Retained earnings | 87,887 | 75,171 |
Common shares in treasury, at cost (1,008,009 shares at September 30, 2019 and 894,486 shares at December 31, 2018) | (45,985) | (39,974) |
Accumulated other comprehensive loss | (8,813) | (18,872) |
Total shareholders' equity | 246,617 | 229,848 |
Total liabilities and shareholders' equity | $ 1,781,010 | $ 1,695,176 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 50 | $ 50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value per share | $ 50 | $ 50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,505,772 | 15,505,772 |
Treasury stock, shares | 1,008,009 | 894,486 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fee Revenue and Other Income: | ||||
Information services payment and processing revenue | $ 27,741 | $ 26,020 | $ 81,050 | $ 76,068 |
Bank service fees | 307 | 300 | 984 | 994 |
Gains (losses) on sales of securities | 19 | (42) | ||
Other | 214 | 115 | 594 | 429 |
Total fee revenue and other income | 28,262 | 26,435 | 82,647 | 77,449 |
Interest Income: | ||||
Interest and fees on loans | 9,548 | 8,367 | 27,564 | 23,832 |
Interest and dividends on securities: | ||||
Taxable | 612 | 618 | 1,893 | 1,428 |
Exempt from federal income taxes | 1,925 | 2,111 | 5,956 | 7,008 |
Interest on federal funds sold and other short-term investments | 1,581 | 1,119 | 4,477 | 2,748 |
Total interest income | 13,666 | 12,215 | 39,890 | 35,016 |
Interest Expense: | ||||
Interest on deposits | 1,392 | 1,029 | 3,987 | 2,502 |
Net interest income | 12,274 | 11,186 | 35,903 | 32,514 |
Provision for loan losses | 250 | |||
Net interest income after provision for loan losses | 12,274 | 11,186 | 35,653 | 32,514 |
Total net revenue | 40,536 | 37,621 | 118,300 | 109,963 |
Operating Expense: | ||||
Personnel | 23,514 | 21,747 | 68,594 | 63,718 |
Occupancy | 973 | 975 | 2,930 | 2,754 |
Equipment | 1,554 | 1,434 | 4,575 | 4,150 |
Amortization of intangible assets | 150 | 110 | 359 | 331 |
Other operating expense | 4,372 | 4,264 | 12,538 | 11,222 |
Total operating expense | 30,563 | 28,530 | 88,996 | 82,175 |
Income before income tax expense | 9,973 | 9,091 | 29,304 | 27,788 |
Income tax expense | 1,787 | 1,481 | 5,271 | 4,577 |
Net income | $ 8,186 | $ 7,610 | $ 24,033 | $ 23,211 |
Basic earnings per share | $ 57 | $ 52 | $ 1.66 | $ 1.58 |
Diluted earnings per share | $ 56 | $ 51 | $ 1.64 | $ 1.55 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Comprehensive Income: | ||||
Net income | $ 8,186 | $ 7,610 | $ 24,033 | $ 23,211 |
Other comprehensive income: | ||||
Net unrealized gain (loss) on securities available-for-sale | 1,571 | (2,835) | 13,317 | (13,029) |
Tax effect | (374) | 675 | (3,170) | 3,101 |
Reclassification adjustments for (gains) losses included in net income | (19) | 42 | ||
Tax effect | 5 | (10) | ||
Foreign currency translation adjustments | (78) | (21) | (74) | (91) |
Total comprehensive income | $ 9,305 | $ 5,429 | $ 34,092 | $ 13,224 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 24,033 | $ 23,211 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,103 | 8,524 |
Net (gains) losses on sales of securities | (19) | 42 |
Stock-based compensation expense | 2,286 | 2,238 |
Provision for loan losses | 250 | |
(Decrease) increase in income tax liability | (1,384) | 773 |
Increase in pension liability | 3,888 | 3,688 |
(Increase) decrease in accounts receivable | (399) | 4,027 |
Other operating activities, net | 3,016 | (3,707) |
Net cash provided by operating activities | 39,774 | 38,796 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of securities available-for-sale | 4,648 | 58,520 |
Proceeds from maturities of securities available-for-sale | 18,001 | 26,041 |
Purchase of securities available-for-sale | (78,772) | |
Net increase in loans | (45,763) | (39,993) |
Increase in payments in excess of funding | (47,448) | (21,977) |
Purchases of premises and equipment, net | (1,877) | (3,956) |
Acquisition of Gateway Giving, LLC | (3,000) | |
Net cash used in investing activities | (75,439) | (60,137) |
Cash Flows From Financing Activities: | ||
Net decrease in noninterest-bearing demand deposits | (2,563) | (11,146) |
Net decrease in interest-bearing demand and savings deposits | (10,485) | (35,988) |
Net increase in time deposits | 2,355 | 3,771 |
Net increase in accounts and drafts payable | 57,772 | 27,849 |
Cash dividends paid | (11,317) | (9,342) |
Purchase of common shares for treasury | (7,799) | (1,409) |
Other financing activities, net | (493) | (457) |
Net cash provided by (used in) by financing activities | 27,470 | (26,722) |
Net decrease in cash and cash equivalents | (8,195) | (48,063) |
Cash and cash equivalents at beginning of period | 230,933 | 228,110 |
Cash and cash equivalents at end of period | 222,738 | 180,047 |
Supplemental information: | ||
Cash paid for interest | 3,831 | 2,459 |
Cash paid for income taxes | $ 6,648 | $ 3,776 |
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 (Loss) Income [Member] | Total |
Balance at Dec. 31, 2017 | $ 6,524 | $ 204,631 | $ 59,314 | $ (32,061) | $ (13,320) | $ 225,088 |
Net income | 23,211 | 23,211 | ||||
Cash dividends | (9,342) | (9,342) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (1,021) | 614 | (407) | |||
Exercise of SARs | (877) | 301 | (576) | |||
Stock-based compensation expense | 2,238 | 2,238 | ||||
Purchase of common shares | (883) | (883) | ||||
Other comprehensive income (loss) | (9,987) | (9,987) | ||||
Balance at Sep. 30, 2018 | 6,524 | 204,971 | 73,183 | (32,029) | (23,307) | 229,342 |
Balance at Jun. 30, 2018 | 6,524 | 204,687 | 68,771 | (32,243) | (21,126) | 226,613 |
Net income | 7,610 | 7,610 | ||||
Cash dividends | (3,198) | (3,198) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (23) | 63 | 40 | |||
Exercise of SARs | (454) | 151 | (303) | |||
Stock-based compensation expense | 761 | 761 | ||||
Other comprehensive income (loss) | (2,181) | (2,181) | ||||
Balance at Sep. 30, 2018 | 6,524 | 204,971 | 73,183 | (32,029) | (23,307) | 229,342 |
Balance at Dec. 31, 2018 | 7,753 | 205,770 | 75,171 | (39,974) | (18,872) | 229,848 |
Net income | 24,033 | 24,033 | ||||
Cash dividends | (11,317) | (11,317) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (1,426) | 1,324 | (102) | |||
Exercise of SARs | (855) | 464 | (391) | |||
Stock-based compensation expense | 2,286 | 2,286 | ||||
Purchase of common shares | (7,799) | (7,799) | ||||
Other comprehensive income (loss) | 10,059 | 10,059 | ||||
Balance at Sep. 30, 2019 | 7,753 | 205,775 | 87,887 | (45,985) | (8,813) | 246,617 |
Balance at Jun. 30, 2019 | 7,753 | 205,463 | 83,470 | (46,333) | (9,932) | 240,421 |
Net income | 8,186 | 8,186 | ||||
Cash dividends | (3,769) | (3,769) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (5) | 48 | 43 | |||
Exercise of SARs | (552) | 300 | (252) | |||
Stock-based compensation expense | 869 | 869 | ||||
Other comprehensive income (loss) | 1,119 | 1,119 | ||||
Balance at Sep. 30, 2019 | $ 7,753 | $ 205,775 | $ 87,887 | $ (45,985) | $ (8,813) | $ 246,617 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends, per share | $ 26 | $ 20 | $ 26 | $ 20 |
Stock issued pursuant to stock-based compensation | 795 | 1,787 | 36,062 | 34,215 |
Shares repurchased during period | 154,593 | 18,656 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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 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 | 9 Months Ended |
Sep. 30, 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. In September 2019, the Company acquired the assets of Gateway Giving, LLC and recorded intangible assets of $5,300,000. The purchase price of the acquisition consisted of a cash payment of $3,000,000 and a potential earnout of $4,000,000. The Company estimated the earnout component to be $2,300,000. Those intangible assets were estimated as $3,325,000 for goodwill, $1,500,000 for software, $325,000 for the customer list, and $150,000 for non-compete agreements. The amounts recorded for the software, the customer list, the non-compete agreements, and goodwill were done so on a provisional basis and will be adjusted upon the completion of a valuation. Details of the Company’s intangible assets are as follows: September 30, 2019 December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,613 $ (3,352) $ 4,288 $ (3,071) Patents 72 (19) 72 (16) Non-compete agreements 482 (334) 332 (326) Software 1,734 (276) 234 (234) Other 500 (250) 500 (225) Unamortized intangible assets: Goodwill 1 16,121 (227) 12,796 (227) Total intangible assets $ 23,522 $ (4,458) $ 18,222 $ (4,099) 1 Amortization through December 31, 2001 prior to adoption of FASB ASC 350. The customer lists are amortized over seven two |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 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 anti-dilutive shares in the three and nine months ended September 30, 2019 and 2018. The calculations of basic and diluted earnings per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share and per share data) 2019 2018 2019 2018 Basic: Net income $ 8,186 $ 7,610 $ 24,033 $ 23,211 Weighted-average common shares outstanding 14,417,725 14,695,170 14,435,670 14,687,614 Basic earnings per share $ .57 $ .52 $ 1.66 $ 1.58 Diluted: Net income $ 8,186 $ 7,610 $ 24,033 $ 23,211 Weighted-average common shares outstanding 14,417,725 14,695,170 14,435,670 14,687,614 Effect of dilutive restricted stock and stock appreciation rights 262,917 248,010 258,123 240,489 Weighted-average common shares outstanding assuming dilution 14,680,642 14,943,180 14,693,793 14,928,103 Diluted earnings per share $ .56 $ .51 $ 1.64 $ 1.55 |
Stock Repurchases
Stock Repurchases | 9 Months Ended |
Sep. 30, 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 October 22, 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 did not repurchase shares during the three-month periods ended September 30, 2019 and 2018 and repurchased 154,593 and 18,656 during the nine-month periods ended September 30, 2019 and 2018, respectively. As of September 30, 2019, 450,222 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 | 9 Months Ended |
Sep. 30, 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 (as defined in the footnote to the chart on the following table) 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 the 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 – one or more fixed rates depending upon the specific characteristics of the funding source, and • Banking Services – a variable rate that is based upon the overall performance of the Company’s 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: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total Three Months Ended September 30, 2019 Fee income from customers $ 28,026 $ 257 $ (21) $ 28,262 Interest income* 6,760 7,930 (513) 14,177 Interest expense — 1,392 — 1,392 Intersegment income (expense) — 533 (533) — Tax-equivalized pre-tax income* 7,619 3,399 (534) 10,484 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total Assets 908,946 862,142 9,922 1,781,010 Average Funding Sources 704,772 588,226 — 1,292,998 Three Months Ended September 30, 2018 Fee income from customers $ 26,263 $ 253 $ (81) $ 26,435 Interest income* 6,446 6,661 (329) 12,778 Interest expense — 1,029 — 1,029 Intersegment income (expense) — 467 (467) — Tax-equivalized pre-tax income* 7,269 2,796 (411) 9,654 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Average Funding Sources 650,267 550,594 — 1,200,861 Nine Months Ended September 30, 2019 Fee income from customers $ 82,049 $ 1,040 $ (442) $ 82,647 Interest income* 19,273 23,082 (883) 41,472 Interest expense — 3,987 — 3,987 Intersegment income (expense) — 1,587 (1,587) — Tax-equivalized pre-tax income* 21,997 10,214 (1,324) 30,887 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total Assets 908,946 862,142 9,922 1,781,010 Average Funding Sources 667,741 583,458 — 1,251,199 Nine Months Ended September 30, 2018 Fee income from customers $ 76,397 $ 947 $ 105 $ 77,449 Interest income* 18,621 20,351 (2,081) 36,891 Interest expense — 2,502 — 2,502 Intersegment income (expense) — 1,415 (1,415) — Tax-equivalized pre-tax income* 21,394 10,245 (1,976) 29,663 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Average Funding Sources 637,508 566,390 — 1,203,898 * Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2019 and 2018. The tax-equivalent adjustment was approximately $511,000 and $564,000 for the Three Months Ended 2019 and 2018, respectively, and $1,583,000 and $1,875,000 for the Nine Months Ended 2019 and 2018, respectively. |
Loans by Type
Loans by Type | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows: (In thousands) September 30, 2019 December 31, 2018 Commercial and industrial $ 325,077 $ 277,091 Real estate: Commercial: Mortgage 83,925 95,605 Construction 24,026 11,858 Faith-based: Mortgage 318,809 316,147 Construction 15,545 20,576 Other 2 310 Total loans $ 767,384 $ 721,587 The following table presents the aging of loans by loan categories at September 30, 2019 and December 31, 2018: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans September 30, 2019 Commercial and industrial $ 325,077 $ — $ — $ — $ — $ 325,077 Real estate: Commercial: Mortgage 83,925 — — — — 83,925 Construction 24,026 — — — — 24,026 Faith-based: Mortgage 318,809 — — — — 318,809 Construction 15,545 — — — — 15,545 Other 2 — — — — 2 Total $ 767,384 $ — $ — $ — $ — $ 767,384 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 as of September 30, 2019 and December 31, 2018: (In thousands) Loans Subject to Normal Monitoring 1 Performing Loans Subject to Special Monitoring 2 Nonperforming Loans Subject to Special Monitoring 2 Total Loans September 30, 2019 Commercial and industrial $ 322,491 $ 2,586 $ — $ 325,077 Real estate: Commercial: Mortgage 83,925 — — 83,925 Construction 24,026 — — 24,026 Faith-based: Mortgage 317,479 1,330 — 318,809 Construction 15,545 — — 15,545 Other 2 — — 2 Total $ 763,468 $ 3,916 $ — $ 767,384 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 Faith-based: 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.” There were no impaired loans, loans delinquent 90 days or more and still accruing, or loans classified as troubled debt restructuring at September 30, 2019 and December 31, 2018. There were no foreclosed loans recorded as other real estate owned as of September 30, 2019 and December 31, 2018. A summary of the activity in the allowance for loan losses from December 31, 2018 to September 30, 2019 is as follows: (In thousands) December 31, 2018 Charge- Offs Recoveries Provision September 30, 2019 Commercial and industrial $ 4,179 $ — $ 34 $ 672 $ 4,885 Real estate: Commercial: Mortgage 1,417 — — (161) 1,256 Construction 89 — — 91 180 Faith-based: Mortgage 3,961 — — 32 3,993 Construction 155 — — (38) 117 Other 424 — — (346) 78 Total $ 10,225 $ — $ 34 $ 250 $ 10,509 A summary of the activity in the allowance for loan losses from December 31, 2017 to September 30, 2018 is as follows: (In thousands) December 31, 2017 Charge- Offs Recoveries Provision September 30, 2018 Commercial and industrial $ 3,652 $ — $ 15 $ 535 $ 4,202 Real estate: Commercial: Mortgage 1,394 — — (9) 1,385 Construction 70 — — 100 170 Faith-based: Mortgage 3,962 — — (105) 3,857 Construction 196 — — 34 230 Industrial Revenue Bonds 52 — — (38) 14 Other 879 — — (517) 362 Total $ 10,205 $ — $ 15 $ — $ 10,220 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 nonperformance 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 September 30, 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 September 30, 2019, the balance of unused loan commitments, standby and commercial letters of credit were $171,503,000, $10,180,000, and $2,662,000, 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 balance 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 varies, 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 September 30, 2019: Amount of Commitment Expiration per Period (In thousands) Total Less than 1 Year 1-3 Years 3-5 Years Over 5 Years Time deposits 74,812 54,261 18,870 1,681 — Total $ 74,812 54,261 18,870 1,681 — 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 | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2019, 36,062 restricted shares, 36,801 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 September 30, 2019, the total unrecognized compensation expense related to non-vested restricted shares was $1,827,000, and the related weighted-average period over which it is expected to be recognized is approximately 0.83 years. Following is a summary of the activity of the restricted stock: Nine Months Ended September 30, 2019 Shares Fair Value Balance at December 31, 2018 99,724 $ 45.48 Granted 36,062 49.12 Vested (13,264) 39.76 Balance at September 30, 2019 122,522 $ 47.17 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 these PBRS shares outstanding at September 30, 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 $595,000 and is based on the grant date fair value of the awards and the Company’s achievement of 120% 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 these PBRS shares outstanding at September 30, 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 $674,000 and is based on the grant date fair value of the awards and the Company’s achievement of 117% 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 June 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 these PBRS shares outstanding at September 30, 2019 was 36,801 with an average grant date fair value of $49.06 per share. The 2019 expense related to these grants is currently estimated to be $644,000 and is based on the grant date fair value of the awards and the Company’s achievement of 108% 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 nine months ended September 30, 2019. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2019: Shares Weighted- Average Exercise Price Average Remaining Contractual Term Years Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2018 237,121 $ 29.86 3.50 $ 5,468 Exercised (34,518) 24.22 — — Exercisable at September 30, 2019 202,603 $ 30.82 2.93 $ 4,694 There were no non-vested SARs at September 30, 2019. |
Defined Pension Plans
Defined Pension Plans | 9 Months Ended |
Sep. 30, 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: (In thousands) Estimated 2019 Actual 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 and deferral 1,634 1,522 Net periodic pension cost $ 4,671 $ 4,040 Pension costs recorded to expense were $1,178,000 and $1,049,000 for the three-month periods ended September 30, 2019 and 2018, respectively, and totaled $3,543,000 and $3,147,000 for the nine-month periods ended September 30, 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 nine-month period ended September 30, 2019 and is evaluating the amount of additional contributions, if any, in the remainder of 2019.Net periodic pension cost is presented within personnel expense in the Consolidated Statements of Income. 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: (In thousands) Estimated 2019 Actual 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 September 30, 2019 and 2018, respectively, and were $586,000 and $766,000 for the nine-month periods ended September 30, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes As of September 30, 2019, the Company’s unrecognized tax benefits were approximately $1,438,000, of which $1,310,000 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 $207,000 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 $192,000 and $136,000 of gross interest accrued as of September 30, 2019 and December 31, 2018, respectively. There were no penalties for unrecognized tax benefits accrued at September 30, 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 2016 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 | 9 Months Ended |
Sep. 30, 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: September 30, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 312,826 $ 13,680 $ — $ 326,506 U.S. government agencies 99,813 516 244 100,085 Certificates of deposit 1,000 — — 1,000 Total $ 413,639 $ 14,196 $ 244 $ 427,591 December 31, 2018 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized 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: September 30, 2019 Less than 12 months 12 months or more Total (In thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and political subdivisions $ 1,117 $ 1 $ — $ — $ 1,117 $ 1 U.S. government agencies 5,967 18 25,809 225 31,776 243 Total $ 7,084 $ 19 $ 25,809 $ 225 $ 32,893 $ 244 December 31, 2018 Less than 12 months 12 months or more Total (In thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized 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 Total $ 121,657 $ 686 $ 98,551 $ 2,537 $ 220,208 $ 3,223 There were 15 securities, or 5% of the total (10 greater than 12 months), in an unrealized loss position as of September 30, 2019. There were 136 securities, or 43% of the total (61 greater than 12 months), in an unrealized loss position as of December 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. September 30, 2019 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 35,337 $ 35,489 Due after 1 year through 5 years 106,384 108,511 Due after 5 years through 10 years 230,729 242,078 Due after 10 years 41,189 41,513 Total $ 413,639 $ 427,591 Proceeds from sales of investment securities classified as available-for-sale were $0 for each of the three month periods ended September 30, 2019 and 2018, and were $4,648,000 and $58,520,000 for the nine months ended September 30, 2019 and 2018, respectively. There were no gross realized gains for the three months ended September 30, 2019 or 2018. Gross realized gains were $19,000 for the nine months ended September 30, 2019 compared to gross realized losses of $42,000 for the nine months ended September 30, 2018. There were no securities pledged to secure public deposits and for other purposes at September 30, 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 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: September 30, 2019 December 31, 2018 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 222,738 $ 222,738 $ 230,933 $ 230,933 Investment securities 427,591 427,591 441,534 441,534 Loans, net 756,875 769,487 711,362 711,090 Accrued interest receivable 6,535 6,535 7,069 7,069 Total $ 1,413,739 $ 1,426,351 $ 1,390,898 $ 1,390,626 Balance sheet liabilities: Deposits $ 711,233 $ 711,717 $721,926 $ 722,018 Accounts and drafts payable 762,075 762,075 694,360 694,360 Accrued interest payable 247 247 91 91 Total $ 1,473,555 $ 1,474,039 $ 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 Investment in Securities Loans Accrued Interest Receivable Deposits Accounts and Drafts Payable Accrued Interest There were no transfers between Levels 1 and 2 of the fair value hierarchy for the nine months ended September 30, 2019 and 2018. No financial instruments are measured using Level 3 inputs for the nine months ended September 30, 2019 and 2018. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 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 operations 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 Invoice payment fees Bank service fees OREO For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands) 2019 2018 2019 2018 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 20,408 $ 19,876 $ 61,397 $ 58,492 Invoice payment fees 7,333 6,144 19,653 17,576 Information services payment and processing revenue 27,741 26,020 81,050 76,068 Bank service fees 984 994 Fee revenue (in-scope of FASB ASC 606) 28,048 26,320 82,034 77,062 Other income (out-of-scope of FASB ASC 606) 613 387 Total fee revenue and other income 28,262 26,435 82,647 77,449 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) 1 12,274 11,186 35,653 32,514 Total net revenue $ 40,536 $ 37,621 $ 118,300 $ 109,963 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 for services provided, but is out-of-scope of FASB ASC 606. |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 September 30, 2019, the Company had lease liabilities of $7,019,000 and right-of-use assets of $6,241,000. 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 September 30, 2019, operating lease cost was $419,000, short-term lease cost was $33,000, and there was no variable lease cost. For the nine months ended September 30, 2019, operating lease cost was $1,259,000, short-term lease cost was $107,000, and there was no variable lease cost. For the period ended September 30, 2019, the weighted average remaining lease term for the operating leases was 6.8 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. There has been no significant change in the Company’s expected future minimum lease payments since December 31, 2018. See the Company’s 2018 Annual Report on Form 10-K for information regarding these commitments. A maturity analysis of operating lease liabilities and undiscounted cash flows as of September 30, 2019 was as follows: (In thousands) September 30, 2019 Lease payments due Less than 1 year $ 1,759 1-2 years 1,665 2-3 years 1,525 3-4 years 902 4-5 years 390 Over 5 years 2,070 Total undiscounted cash flows 8,311 Discount on cash flows 1,292 Total lease liability $ 7,019 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the nine months ended September 30, 2019. At September 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: September 30, 2019 December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,613 $ (3,352) $ 4,288 $ (3,071) Patents 72 (19) 72 (16) Non-compete agreements 482 (334) 332 (326) Software 1,734 (276) 234 (234) Other 500 (250) 500 (225) Unamortized intangible assets: Goodwill 1 16,121 (227) 12,796 (227) Total intangible assets $ 23,522 $ (4,458) $ 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) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share and per share data) 2019 2018 2019 2018 Basic: Net income $ 8,186 $ 7,610 $ 24,033 $ 23,211 Weighted-average common shares outstanding 14,417,725 14,695,170 14,435,670 14,687,614 Basic earnings per share $ .57 $ .52 $ 1.66 $ 1.58 Diluted: Net income $ 8,186 $ 7,610 $ 24,033 $ 23,211 Weighted-average common shares outstanding 14,417,725 14,695,170 14,435,670 14,687,614 Effect of dilutive restricted stock and stock appreciation rights 262,917 248,010 258,123 240,489 Weighted-average common shares outstanding assuming dilution 14,680,642 14,943,180 14,693,793 14,928,103 Diluted earnings per share $ .56 $ .51 $ 1.64 $ 1.55 |
Industry Segment Information (T
Industry Segment Information (Tables) | 9 Months Ended |
Sep. 30, 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: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total Three Months Ended September 30, 2019 Fee income from customers $ 28,026 $ 257 $ (21) $ 28,262 Interest income* 6,760 7,930 (513) 14,177 Interest expense — 1,392 — 1,392 Intersegment income (expense) — 533 (533) — Tax-equivalized pre-tax income* 7,619 3,399 (534) 10,484 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total Assets 908,946 862,142 9,922 1,781,010 Average Funding Sources 704,772 588,226 — 1,292,998 Three Months Ended September 30, 2018 Fee income from customers $ 26,263 $ 253 $ (81) $ 26,435 Interest income* 6,446 6,661 (329) 12,778 Interest expense — 1,029 — 1,029 Intersegment income (expense) — 467 (467) — Tax-equivalized pre-tax income* 7,269 2,796 (411) 9,654 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Average Funding Sources 650,267 550,594 — 1,200,861 Nine Months Ended September 30, 2019 Fee income from customers $ 82,049 $ 1,040 $ (442) $ 82,647 Interest income* 19,273 23,082 (883) 41,472 Interest expense — 3,987 — 3,987 Intersegment income (expense) — 1,587 (1,587) — Tax-equivalized pre-tax income* 21,997 10,214 (1,324) 30,887 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total Assets 908,946 862,142 9,922 1,781,010 Average Funding Sources 667,741 583,458 — 1,251,199 Nine Months Ended September 30, 2018 Fee income from customers $ 76,397 $ 947 $ 105 $ 77,449 Interest income* 18,621 20,351 (2,081) 36,891 Interest expense — 2,502 — 2,502 Intersegment income (expense) — 1,415 (1,415) — Tax-equivalized pre-tax income* 21,394 10,245 (1,976) 29,663 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,664 — — 1,664 Total Assets 903,055 847,673 (72,481) 1,678,247 Average Funding Sources 637,508 566,390 — 1,203,898 * Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2019 and 2018. The tax-equivalent adjustment was approximately $511,000 and $564,000 for the Three Months Ended 2019 and 2018, respectively, and $1,583,000 and $1,875,000 for the Nine Months Ended 2019 and 2018, respectively. |
Loans by Type (Tables)
Loans by Type (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: (In thousands) September 30, 2019 December 31, 2018 Commercial and industrial $ 325,077 $ 277,091 Real estate: Commercial: Mortgage 83,925 95,605 Construction 24,026 11,858 Faith-based: Mortgage 318,809 316,147 Construction 15,545 20,576 Other 2 310 Total loans $ 767,384 $ 721,587 |
Schedule of the Aging Loans by Loan Categories | The following table presents the aging of loans by loan categories at September 30, 2019 and December 31, 2018: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans September 30, 2019 Commercial and industrial $ 325,077 $ — $ — $ — $ — $ 325,077 Real estate: Commercial: Mortgage 83,925 — — — — 83,925 Construction 24,026 — — — — 24,026 Faith-based: Mortgage 318,809 — — — — 318,809 Construction 15,545 — — — — 15,545 Other 2 — — — — 2 Total $ 767,384 $ — $ — $ — $ — $ 767,384 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 as of September 30, 2019 and December 31, 2018: (In thousands) Loans Subject to Normal Monitoring 1 Performing Loans Subject to Special Monitoring 2 Nonperforming Loans Subject to Special Monitoring 2 Total Loans September 30, 2019 Commercial and industrial $ 322,491 $ 2,586 $ — $ 325,077 Real estate: Commercial: Mortgage 83,925 — — 83,925 Construction 24,026 — — 24,026 Faith-based: Mortgage 317,479 1,330 — 318,809 Construction 15,545 — — 15,545 Other 2 — — 2 Total $ 763,468 $ 3,916 $ — $ 767,384 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 Faith-based: 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. |
Summary of the Allowance for Loan Losses | A summary of the activity in the allowance for loan losses from December 31, 2018 to September 30, 2019 is as follows: (In thousands) December 31, 2018 Charge- Offs Recoveries Provision September 30, 2019 Commercial and industrial $ 4,179 $ — $ 34 $ 672 $ 4,885 Real estate: Commercial: Mortgage 1,417 — — (161) 1,256 Construction 89 — — 91 180 Faith-based: Mortgage 3,961 — — 32 3,993 Construction 155 — — (38) 117 Other 424 — — (346) 78 Total $ 10,225 $ — $ 34 $ 250 $ 10,509 A summary of the activity in the allowance for loan losses from December 31, 2017 to September 30, 2018 is as follows: (In thousands) December 31, 2017 Charge- Offs Recoveries Provision September 30, 2018 Commercial and industrial $ 3,652 $ — $ 15 $ 535 $ 4,202 Real estate: Commercial: Mortgage 1,394 — — (9) 1,385 Construction 70 — — 100 170 Faith-based: Mortgage 3,962 — — (105) 3,857 Construction 196 — — 34 230 Industrial Revenue Bonds 52 — — (38) 14 Other 879 — — (517) 362 Total $ 10,205 $ — $ 15 $ — $ 10,220 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019: Amount of Commitment Expiration per Period (In thousands) Total Less than 1 Year 1-3 Years 3-5 Years Over 5 Years Time deposits 74,812 54,261 18,870 1,681 — Total $ 74,812 54,261 18,870 1,681 — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | Following is a summary of the activity of the restricted stock: Nine Months Ended September 30, 2019 Shares Fair Value Balance at December 31, 2018 99,724 $ 45.48 Granted 36,062 49.12 Vested (13,264) 39.76 Balance at September 30, 2019 122,522 $ 47.17 |
Summary of SARs Activity | There were no SARs granted and no expense recognized during the nine months ended September 30, 2019. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2019: Shares Weighted- Average Exercise Price Average Remaining Contractual Term Years Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2018 237,121 $ 29.86 3.50 $ 5,468 Exercised (34,518) 24.22 — — Exercisable at September 30, 2019 202,603 $ 30.82 2.93 $ 4,694 |
Defined Pension Plans (Tables)
Defined Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | (In thousands) Estimated 2019 Actual 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 and deferral 1,634 1,522 Net periodic pension cost $ 4,671 $ 4,040 |
Schedule of Unfunded Supplemental Executive Retirement Plan | (In thousands) Estimated 2019 Actual 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) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | September 30, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 312,826 $ 13,680 $ — $ 326,506 U.S. government agencies 99,813 516 244 100,085 Certificates of deposit 1,000 — — 1,000 Total $ 413,639 $ 14,196 $ 244 $ 427,591 December 31, 2018 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized 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: September 30, 2019 Less than 12 months 12 months or more Total (In thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses State and political subdivisions $ 1,117 $ 1 $ — $ — $ 1,117 $ 1 U.S. government agencies 5,967 18 25,809 225 31,776 243 Total $ 7,084 $ 19 $ 25,809 $ 225 $ 32,893 $ 244 December 31, 2018 Less than 12 months 12 months or more Total (In thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized 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 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. September 30, 2019 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 35,337 $ 35,489 Due after 1 year through 5 years 106,384 108,511 Due after 5 years through 10 years 230,729 242,078 Due after 10 years 41,189 41,513 Total $ 413,639 $ 427,591 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, 2019 December 31, 2018 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 222,738 $ 222,738 $ 230,933 $ 230,933 Investment securities 427,591 427,591 441,534 441,534 Loans, net 756,875 769,487 711,362 711,090 Accrued interest receivable 6,535 6,535 7,069 7,069 Total $ 1,413,739 $ 1,426,351 $ 1,390,898 $ 1,390,626 Balance sheet liabilities: Deposits $ 711,233 $ 711,717 $721,926 $ 722,018 Accounts and drafts payable 762,075 762,075 694,360 694,360 Accrued interest payable 247 247 91 91 Total $ 1,473,555 $ 1,474,039 $ 1,416,377 $ 1,416,469 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers | For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands) 2019 2018 2019 2018 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 20,408 $ 19,876 $ 61,397 $ 58,492 Invoice payment fees 7,333 6,144 19,653 17,576 Information services payment and processing revenue 27,741 26,020 81,050 76,068 Bank service fees 984 994 Fee revenue (in-scope of FASB ASC 606) 28,048 26,320 82,034 77,062 Other income (out-of-scope of FASB ASC 606) 613 387 Total fee revenue and other income 28,262 26,435 82,647 77,449 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) 1 12,274 11,186 35,653 32,514 Total net revenue $ 40,536 $ 37,621 $ 118,300 $ 109,963 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and undiscounted cash flows as of September 30, 2019 was as follows: (In thousands) September 30, 2019 Lease payments due Less than 1 year $ 1,759 1-2 years 1,665 2-3 years 1,525 3-4 years 902 4-5 years 390 Over 5 years 2,070 Total undiscounted cash flows 8,311 Discount on cash flows 1,292 Total lease liability $ 7,019 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 150 | $ 110 | $ 359 | $ 331 |
2019 | 604 | 604 | ||
2020 | 983 | 983 | ||
2021 | 983 | 983 | ||
2022 | 498 | 498 | ||
2023 | 164 | 164 | ||
Acquisition cash payment | 3,000 | |||
Gateway Giving, LLC [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | 5,300 | 5,300 | ||
Acquisition cash payment | 3,000 | |||
Amount of earnout | 4,000 | |||
Estimated earnout amount | 2,300 | |||
Customer Lists [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | 325 | $ 325 | ||
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 | |||
Recorded intangible assets | 1,500 | $ 1,500 | ||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 15 years | |||
Goodwill [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | 3,325 | $ 3,325 | ||
Non-compete Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | $ 150 | $ 150 | ||
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 | Sep. 30, 2019 | Dec. 31, 2018 | |
Unamortized intangible assets: | |||
Goodwill, Gross Carrying Amount | [1] | $ 16,121 | $ 12,796 |
Goodwill, Accumulated Amortization | [1] | (227) | (227) |
Total intangible assets | 23,522 | 18,222 | |
Accumulated Amortization | (4,458) | (4,099) | |
Customer Lists [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 4,613 | 4,288 | |
Accumulated Amortization | (3,352) | (3,071) | |
Patents [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 72 | 72 | |
Accumulated Amortization | (19) | (16) | |
Non-compete Agreements [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 482 | 332 | |
Accumulated Amortization | (334) | (326) | |
Software [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 1,734 | 234 | |
Accumulated Amortization | (276) | (234) | |
Other [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | $ (250) | $ (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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic: | ||||
Net income | $ 8,186 | $ 7,610 | $ 24,033 | $ 23,211 |
Weighted-average common shares outstanding | 14,417,725 | 14,695,170 | 14,435,670 | 14,687,614 |
Basic earnings per share | $ 57 | $ 52 | $ 1.66 | $ 1.58 |
Diluted: | ||||
Net Income | $ 8,186 | $ 7,610 | $ 24,033 | $ 23,211 |
Weighted-average common shares outstanding | 14,417,725 | 14,695,170 | 14,435,670 | 14,687,614 |
Effect of dilutive restricted stock and stock appreciation rights | 262,917 | 248,010 | 258,123 | 240,489 |
Weighted-average common shares outstanding assuming dilution | 14,680,642 | 14,943,180 | 14,693,793 | 14,928,103 |
Diluted earnings per share | $ 56 | $ 51 | $ 1.64 | $ 1.55 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||
Number of shares authorized to be repurchased | 500,000 | |
Shares repurchased | 154,593 | 18,656 |
Remaining number of shares available for repurchase | 450,222 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Fee revenue and other income: | ||||||
Fee income from customers | $ 28,262 | $ 26,435 | $ 82,647 | $ 77,449 | ||
Interest income | [1] | 14,177 | 12,778 | 41,472 | 36,891 | |
Interest expense | 1,392 | 1,029 | 3,987 | 2,502 | ||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 10,484 | 9,654 | 30,887 | 29,663 | |
Goodwill | 15,894 | 12,569 | 15,894 | 12,569 | $ 12,569 | |
Other intangible assets, net | 3,170 | 1,664 | 3,170 | 1,664 | ||
Total assets | 1,781,010 | 1,678,247 | 1,781,010 | 1,678,247 | $ 1,695,176 | |
Average funding sources | 1,292,998 | 1,200,861 | $ 1,251,199 | $ 1,203,898 | ||
Tax-equivalent basis tax rate | 21.00% | 21.00% | ||||
Tax-equivalent adjustment | 511 | 564 | $ 1,583 | $ 1,875 | ||
Information Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income from customers | 28,026 | 26,263 | 82,049 | 76,397 | ||
Interest income | [1] | 6,760 | 6,446 | 19,273 | 18,621 | |
Interest expense | ||||||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 7,619 | 7,269 | 21,997 | 21,394 | |
Goodwill | 15,758 | 12,433 | 15,758 | 12,433 | ||
Other intangible assets, net | 3,170 | 1,664 | 3,170 | 1,664 | ||
Total assets | 908,946 | 903,055 | 908,946 | 903,055 | ||
Average funding sources | 704,772 | 650,267 | 667,741 | 637,508 | ||
Banking Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income from customers | 257 | 253 | 1,040 | 947 | ||
Interest income | [1] | 7,930 | 6,661 | 23,082 | 20,351 | |
Interest expense | 1,392 | 1,029 | 3,987 | 2,502 | ||
Intersegment income (expense) | 533 | 467 | 1,587 | 1,415 | ||
Tax-equivalized pre-tax income | [1] | 3,399 | 2,796 | 10,214 | 10,245 | |
Goodwill | 136 | 136 | 136 | 136 | ||
Other intangible assets, net | ||||||
Total assets | 862,142 | 847,673 | 862,142 | 847,673 | ||
Average funding sources | 588,226 | 550,594 | 583,458 | 566,390 | ||
Corporate Eliminations and Other [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income from customers | (21) | (81) | (442) | 105 | ||
Interest income | [1] | (513) | (329) | (883) | (2,081) | |
Interest expense | ||||||
Intersegment income (expense) | (533) | (467) | (1,587) | (1,415) | ||
Tax-equivalized pre-tax income | [1] | (534) | (411) | (1,324) | (1,976) | |
Goodwill | ||||||
Other intangible assets, net | ||||||
Total assets | 9,922 | (72,481) | $ 9,922 | (72,481) | ||
Average funding sources | ||||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of % for both 2019 and 2018. The tax-equivalent adjustment was approximately $ for the Three Months Ended 2019 and 2018, respectively, and $ for the Nine Months Ended 2019 and 2018, respectively. |
Loans by Type (Summary of Loan
Loans by Type (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Participating Mortgage Loans [Line Items] | ||
Loans | $ 767,384 | $ 721,587 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 325,077 | 277,091 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 83,925 | 95,605 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 24,026 | 11,858 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 318,809 | 316,147 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 15,545 | 20,576 |
Other Loan [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | $ 2 | $ 310 |
Loans by Type (Schedule of the
Loans by Type (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 767,384 | 721,587 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 325,077 | 277,091 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 83,925 | 95,605 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 11,858 | |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 318,809 | 316,147 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 15,545 | 20,576 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 2 | 310 |
Current [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 767,384 | 721,587 |
Current [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 325,077 | 277,091 |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 83,925 | 95,605 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 24,026 | 11,858 |
Current [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 318,809 | 316,147 |
Current [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 15,545 | 20,576 |
Current [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 2 | 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 | ||
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 | ||
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 | Sep. 30, 2019 | Dec. 31, 2018 | |
Participating Mortgage Loans [Line Items] | |||
Loans | $ 767,384 | $ 721,587 | |
Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 763,468 | 718,439 |
Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 3,916 | 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 | 325,077 | 277,091 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 322,491 | 275,308 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 2,586 | 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 | 83,925 | 95,605 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 83,925 | 95,447 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 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 | 11,858 | ||
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 24,026 | 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 Faith-based Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 318,809 | 316,147 | |
Real Estate Church, church-related Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 317,479 | 314,940 |
Real Estate Church, church-related Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 1,330 | 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 | 15,545 | 20,576 | |
Real Estate Church, church-related Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 15,545 | 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 | 2 | 310 | |
Other Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 2 | 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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | $ 10,225 | $ 10,205 |
Charge-Offs | ||
Recoveries | 34 | 15 |
Provision | 250 | |
Ending Balance | 10,509 | 10,220 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 4,179 | 3,652 |
Charge-Offs | ||
Recoveries | 34 | 15 |
Provision | 672 | 535 |
Ending Balance | 4,885 | 4,202 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 1,417 | 1,394 |
Charge-Offs | ||
Recoveries | ||
Provision | (161) | (9) |
Ending Balance | 1,256 | 1,385 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 89 | 70 |
Charge-Offs | ||
Recoveries | ||
Provision | 91 | 100 |
Ending Balance | 180 | 170 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 3,961 | 3,962 |
Charge-Offs | ||
Recoveries | ||
Provision | 32 | (105) |
Ending Balance | 3,993 | 3,857 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 155 | 196 |
Charge-Offs | ||
Recoveries | ||
Provision | (38) | 34 |
Ending Balance | 117 | 230 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 424 | 879 |
Charge-Offs | ||
Recoveries | ||
Provision | (346) | (517) |
Ending Balance | $ 78 | 362 |
Industrial Revenue Bonds [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 52 | |
Charge-Offs | ||
Recoveries | ||
Provision | (38) | |
Ending Balance | $ 14 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unused loan commitments | $ 171,503 |
Standby letters of credit | 10,180 |
Commercial letters of credit | $ 2,662 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Company's Contractual Cash Obligations) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Time Deposits, Less than 1 Year | $ 54,261 |
Time Deposits, 1 to 3 Years | 18,870 |
Time Deposits, 3 to 5 Years | 1,681 |
Time Deposits, over 5 Years | |
Time Deposits, Total | 74,812 |
Commitments, Less than 1 Year | 54,261 |
Commitments, 1 to 3 Years | 18,870 |
Commitments, 3 to 5 Years | 1,681 |
Commitments, Over 5 Years | |
Commitments, Total | $ 74,812 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | 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 | $ 1,827 | |
Total unrecognized compensation expense, weighted average period | 9 months 29 days | |
Vesting period | 3 years | |
Granted, Shares | 36,062 | |
Outstanding, Shares | 122,522 | 99,724 |
Fair value of granted shares per share | $ 49.12 | |
Performance-based restricted shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Granted, Shares | 36,801 | |
Performance-based restricted shares [Member] | February 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Shares | 30,057 | |
Percentage of target opportunity for awards to vest | 120.00% | |
Fair value of granted shares per share | $ 49.33 | |
Expense incurred to grant shares | $ 595 | |
Expiry period | 3 years | |
Maturity date | Dec. 31, 2019 | |
Performance-based restricted shares [Member] | February 2017 [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target opportunity for awards to vest | 0.00% | |
Performance-based restricted shares [Member] | February 2017 [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target opportunity for awards to vest | 150.00% | |
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 | |
Percentage of target opportunity for awards to vest | 117.00% | |
Fair value of granted shares per share | $ 49.04 | |
Expense incurred to grant shares | $ 674 | |
Expiry period | 3 years | |
Maturity date | Dec. 31, 2020 | |
Performance-based restricted shares [Member] | February and July 2018 [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target opportunity for awards to vest | 0.00% | |
Performance-based restricted shares [Member] | February and July 2018 [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target opportunity for awards to vest | 150.00% | |
Performance-based restricted shares [Member] | February and June 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Shares | 36,801 | |
Percentage of target opportunity for awards to vest | 108.00% | |
Fair value of granted shares per share | $ 49.06 | |
Expense incurred to grant shares | $ 644 | |
Expiry period | 3 years | |
Maturity date | Dec. 31, 2021 | |
Performance-based restricted shares [Member] | February 2019 [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target opportunity for awards to vest | 0.00% | |
Performance-based restricted shares [Member] | February 2019 [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target opportunity for awards to vest | 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] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Shares | |
Beginning balance | shares | 99,724 |
Granted | shares | 36,062 |
Vested | shares | (13,264) |
Ending balance | shares | 122,522 |
Fair Value | |
Beginning balance | $ / shares | $ 45.48 |
Granted | $ / shares | 49.12 |
Vested | $ / shares | 39.76 |
Ending balance | $ / shares | $ 47.17 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Company's SARs Activity) (Details) - SARs [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | 237,121 | |
Exercised | (34,518) | |
Ending balance | 237,121 | |
Exercisable | 202,603 | |
Beginning balance, Weighted Average Exercise Price | $ 29.86 | |
Exercised, Weighted Average Exercise Price | 24.22 | |
Ending balance, Weighted Average Exercise Price | $ 29.86 | |
Exercisable, Weighted Average Exercise Price | $ 30.82 | |
Beginning balance, Average Remaining Contractual Term Years | 3 years 6 months | |
Exercisable, Average Remaining Contractual Term Years | 2 years 11 months 4 days | |
Beginning balance, Aggregate Intrinsic Value | $ 5,468 | |
Ending balance, Aggregate Intrinsic Value | $ 5,468 | |
Exercisable, Aggregate Intrinsic Value | $ 4,694 |
Defined Pension Plans (Narrativ
Defined Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension period | 30 years | |||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 1,178 | $ 1,049 | $ 3,543 | $ 3,147 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 195 | $ 255 | $ 586 | $ 766 |
Defined Pension Plans (Schedule
Defined Pension Plans (Schedule of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 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 obligation | 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 obligation | 408 | 348 |
Net amortization | 276 | 581 |
Net periodic pension cost | $ 781 | $ 1,021 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 1,438 | $ 1,403 |
Amounts of tax benefits that would affect effective tax rate if recognized | 1,310 | 1,272 |
Income tax accrued interest | 192 | 136 |
Income tax penalties accrued | ||
Statute of limitations | $ 207 |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Number of securities that had an unrealized loss | 15 | 15 | 136 | ||
Number of securities that had an unrealized loss, greater than 12 months | 10 | 10 | 61 | ||
Percentage of total securities | 5.00% | 5.00% | 43.00% | ||
Proceeds from sales of securities available-for-sale | $ 0 | $ 0 | $ 4,648 | $ 58,520 | |
Gross realized gains | $ 19 | $ 42 |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Fair Value | $ 427,591 | $ 441,534 |
Gross Unrealized Gains | 14,196 | 3,877 |
Gross Unrealized Losses | 244 | 3,223 |
Amortized Cost | 413,639 | 440,880 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Fair Value | 326,506 | 334,717 |
Gross Unrealized Gains | 13,680 | 3,791 |
Gross Unrealized Losses | 1,806 | |
Amortized Cost | 312,826 | 332,732 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Fair Value | 100,085 | 104,822 |
Gross Unrealized Gains | 516 | 86 |
Gross Unrealized Losses | 244 | 1,417 |
Amortized Cost | 99,813 | 106,153 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Fair Value | 1,000 | 1,995 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Amortized Cost | $ 1,000 | $ 1,995 |
Investment in Securities (Sch_2
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Estimated fair value, less than 12 months | $ 7,084 | $ 121,657 |
Estimated fair value, 12 months or more | 25,809 | 98,551 |
Estimated fair value, total | 32,893 | 220,208 |
Unrealized losses, less than 12 months | 19 | 686 |
Unrealized losses, 12 months or more | 225 | 2,537 |
Unrealized losses, total | 244 | 3,223 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | 1,117 | 91,248 |
Estimated fair value, 12 months or more | 60,546 | |
Estimated fair value, total | 1,117 | 151,794 |
Unrealized losses, less than 12 months | 1 | 556 |
Unrealized losses, 12 months or more | 1,250 | |
Unrealized losses, total | 1 | 1,806 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Estimated fair value, less than 12 months | 5,967 | 30,409 |
Estimated fair value, 12 months or more | 25,809 | 38,005 |
Estimated fair value, total | 31,776 | 68,414 |
Unrealized losses, less than 12 months | 18 | 130 |
Unrealized losses, 12 months or more | 225 | 1,287 |
Unrealized losses, total | $ 243 | $ 1,417 |
Investment in Securities (Sch_3
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 35,337 | |
Amortized Cost, Due after 1 year through 5 years | 106,384 | |
Amortized Cost, Due after 5 years through 10 years | 230,729 | |
Amortized Cost, Due after 10 years | 41,189 | |
Amortized Cost, Total | 413,639 | |
Fair Value, Due in 1 year or less | 35,489 | |
Fair Value, Due after 1 year through 5 years | 108,511 | |
Fair Value, Due after 5 years through 10 years | 242,078 | |
Fair Value, Due after 10 years | 41,513 | |
Fair Value, Total | $ 427,591 | $ 441,534 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 222,738 | $ 230,933 | $ 180,047 | $ 228,110 |
Investment securities, Carrying Amount | 427,591 | 441,534 | ||
Loans, net, Carrying Amount | 756,875 | 711,362 | ||
Accrued interest receivable, Carrying Amount | 6,535 | 7,069 | ||
Assets, Carrying Amount | 1,413,739 | 1,390,898 | ||
Cash and cash equivalents, Fair Value | 222,738 | 230,933 | ||
Investment securities, Fair Value | 427,591 | 441,534 | ||
Loans, net, Fair Value | 769,487 | 711,090 | ||
Accrued interest receivable, Fair Value | 6,535 | 7,069 | ||
Assets, Fair Value | 1,426,351 | 1,390,626 | ||
Deposits, Carrying Amount | 711,233 | 721,926 | ||
Accounts and drafts payable, Carrying Amount | 762,075 | 694,360 | ||
Accrued interest payable, Carrying Amount | 247 | 91 | ||
Liabilities, Carrying Amount | 1,473,555 | 1,416,377 | ||
Deposits, Fair Value | 711,717 | 722,018 | ||
Accounts and drafts payable, Fair Value | 762,075 | 694,360 | ||
Accrued interest payable, Fair Value | 247 | 91 | ||
Liabilities, Fair Value | $ 1,474,039 | $ 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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Fee revenue and other income: | |||||
In-scope of FASB ASC 606 - Invoice processing fees | $ 20,408 | $ 19,876 | $ 61,397 | $ 58,492 | |
In-scope of FASB ASC 606 - Invoice payment fees | 7,333 | 6,144 | 19,653 | 17,576 | |
Information services payment and processing revenue | 27,741 | 26,020 | 81,050 | 76,068 | |
Bank service fees | 307 | 300 | 984 | 994 | |
Fee revenue (in-scope of FASB ASC 606) | 28,048 | 26,320 | 82,034 | 77,062 | |
Other income (out-of-scope of FASB ASC 606) | 214 | 115 | 613 | 387 | |
Total fee revenue and other income | 28,262 | 26,435 | 82,647 | 77,449 | |
Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) | [1] | 12,274 | 11,186 | 35,653 | 32,514 |
Total net revenue | $ 40,536 | $ 37,621 | $ 118,300 | $ 109,963 | |
[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 for services provided, but is out-of-scope of FASB ASC 606. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Lease liabilities | $ 7,019 | $ 7,019 |
Right-of-use assets | 6,241 | 6,241 |
Short-term lease cost | 33 | 107 |
Operating lease cost | $ 419 | $ 1,259 |
Weighted average remaining lease term | 6 years 9 months 18 days | 6 years 9 months 18 days |
Weighted average discount rate | 5.50% | 5.50% |
Additional lease liabilities | $ 800 | $ 800 |
Leases (Schedule of operating l
Leases (Schedule of operating lease liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lease payments due | |
Less than 1 year | $ 1,759 |
1-2 years | 1,665 |
2-3 years | 1,525 |
3-4 years | 902 |
4-5 years | 390 |
Over 5 years | 2,070 |
Total undiscounted cash flows | 8,311 |
Discount on cash flows | 1,292 |
Total lease liability | $ 7,019 |