Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 000-20827 | ||
Entity Registrant Name | CASS INFORMATION SYSTEMS, INC. | ||
Entity Incorporation, State or Country Code | MO | ||
Entity Tax Identification Number | 43-1265338 | ||
Entity Address, Address Line One | 12444 Powerscourt Drive | ||
Entity Address, Address Line Two | Suite 550 | ||
Entity Address, City or Town | St. Louis | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63131 | ||
City Area Code | 314 | ||
Local Phone Number | 506-5500 | ||
Title of 12(b) Security | Common Stock, par value $0.50 per share | ||
Trading Symbol | CASS | ||
Name of Exchange on which Security is Registered | NASDAQ | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 702,445,000 | ||
Entity Common Stock, Shares Outstanding | 14,552,402 | ||
Documents Incorporated By Reference Text Block | Certain information required for Part III of this report is incorporated by reference to the Registrant’s Proxy Statement for the 2020 Annual Meeting of Shareholders. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000708781 | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 18,076 | $ 15,042 |
Interest-bearing deposits in other financial institutions | 172,422 | 179,281 |
Federal funds sold and other short-term investments | 13,456 | 36,610 |
Cash and cash equivalents | 203,954 | 230,933 |
Securities available-for-sale, at fair value | 422,665 | 441,534 |
Loans | 772,638 | 721,587 |
Less allowance for loan losses | 10,556 | 10,225 |
Loans, net | 762,082 | 711,362 |
Payments in excess of funding | 206,158 | 160,777 |
Premises and equipment, net | 20,527 | 22,031 |
Investments in bank-owned life insurance | 17,599 | 17,384 |
Goodwill | 14,262 | 12,569 |
Other intangible assets, net | 4,281 | 1,554 |
Other assets | 112,715 | 97,032 |
Total assets | 1,764,243 | 1,695,176 |
Deposits | ||
Noninterest-bearing | 351,091 | 313,258 |
Interest-bearing | 406,045 | 408,668 |
Total deposits | 757,136 | 721,926 |
Accounts and drafts payable | 684,295 | 694,360 |
Short-term borrowings | 18,000 | |
Other liabilities | 60,622 | 49,042 |
Total liabilities | 1,520,053 | 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, 15,505,772 shares issued at December 31, 2019 and 2018. | 7,753 | 7,753 |
Additional paid-in capital | 205,397 | 205,770 |
Retained earnings | 90,341 | 75,171 |
Common shares in treasury, at cost (991,406 and 894,486 shares at December 31, 2019 and 2018, respectively) | (45,381) | (39,974) |
Accumulated other comprehensive loss | (13,920) | (18,872) |
Total shareholders' equity | 244,190 | 229,848 |
Total liabilities and shareholders' equity | $ 1,764,243 | $ 1,695,176 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,505,772 | 15,505,772 |
Treasury stock, shares | 991,406 | 894,486 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fee Revenue and Other Income: | ||||
Information services payment and processing revenue | $ 107,953 | $ 102,181 | $ 93,322 | |
Bank service fees | 1,386 | 1,335 | 1,349 | |
Gains (losses) on sales of securities | 19 | (42) | ||
Other | 711 | 602 | 841 | |
Total fee revenue and other income | 110,069 | 104,076 | 95,512 | |
Interest Income: | ||||
Interest and fees on loans | 36,461 | 32,477 | 28,641 | |
Interest and dividends on securities: | ||||
Taxable | 2,497 | 2,104 | 554 | |
Exempt from federal income taxes | 7,839 | 9,063 | 10,439 | |
Interest on federal funds sold and other short-term investments | 5,812 | 4,282 | 2,343 | |
Total interest income | 52,609 | 47,926 | 41,977 | |
Interest Expense: | ||||
Interest on deposits | 5,191 | 3,736 | 2,187 | |
Interest on short-term borrowings | 2 | |||
Total interest expense | 5,193 | 3,736 | 2,187 | |
Net interest income | 47,416 | 44,190 | 39,790 | |
Provision for loan losses | 250 | |||
Net interest income after provision for loan losses | 47,166 | 44,190 | 39,790 | |
Total net revenue | 157,235 | 148,266 | 135,302 | |
Operating Expense: | ||||
Personnel | 91,083 | 85,881 | 77,339 | |
Occupancy | 3,918 | 3,723 | 3,480 | |
Equipment | 6,140 | 5,610 | 5,071 | |
Amortization of intangible assets | 563 | 442 | 427 | |
Other operating | 18,065 | 16,263 | 14,086 | |
Total operating expense | 119,769 | 111,919 | 100,403 | |
Income before income tax expense | 37,466 | 36,347 | 34,899 | |
Income tax expense | [1] | 7,062 | 6,079 | 9,885 |
Net income | $ 30,404 | $ 30,268 | $ 25,014 | |
Basic Earnings Per Share | $ 2.11 | $ 2.06 | $ 1.70 | |
Diluted Earnings Per Share | $ 2.07 | $ 2.03 | $ 1.68 | |
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Comprehensive income: | |||
Net income | $ 30,404 | $ 30,268 | $ 25,014 |
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on securities available-for-sale | 13,429 | (7,534) | 6,637 |
Tax effect | (3,196) | 1,793 | (2,465) |
Reclassification adjustments for (gains) losses included in net income | (19) | 42 | |
Tax effect | 5 | (10) | |
FASB ASC 715 pension adjustment | (6,903) | 341 | (1,311) |
Tax effect | 1,643 | (81) | 487 |
Foreign currency translation adjustments | (7) | (103) | 161 |
Other comprehensive income (loss) | 4,952 | (5,552) | 3,509 |
Total comprehensive income | $ 35,356 | $ 24,716 | $ 28,523 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | |||
Net income | $ 30,404 | $ 30,268 | $ 25,014 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 10,939 | 11,238 | 11,341 |
Net (gains) losses on sales of securities | (19) | 42 | |
Stock-based compensation expense | 3,144 | 3,006 | 2,339 |
Provision for loan losses | 250 | ||
Deferred income tax expense (benefit) | 1,247 | (3,521) | 3,997 |
(Decrease) increase in current income tax liability | (1,838) | 3,746 | (3,026) |
(Decrease) increase in pension liability | (1,370) | 4,641 | 8,008 |
Decrease (increase) in accounts receivable | 988 | 4,709 | (4,656) |
Other operating activities, net | (4,359) | (5,794) | (4,127) |
Net cash provided by operating activities | 42,126 | 48,335 | 38,890 |
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 | 21,502 | 38,116 | 44,156 |
Purchase of securities available-for-sale | (82,022) | (124,777) | |
Net increase in loans | (50,970) | (35,336) | (21,335) |
Increase in payments in excess of funding | (45,381) | (21,674) | (33,756) |
Purchases of premises and equipment, net | (2,723) | (4,399) | (4,127) |
Asset acquisition of Gateway Giving, LLC | (2,833) | ||
Net cash used in investing activities | (75,757) | (46,795) | (139,839) |
Cash Flows From Financing Activities: | |||
Net increase in noninterest-bearing demand deposits | 37,833 | 31,717 | 66,885 |
Net decrease in interest-bearing demand and savings deposits | (1,133) | (7,838) | (7,472) |
Net (decrease) increase in time deposits | (1,490) | 19,959 | (3,286) |
Net (decrease) increase in accounts and drafts payable | (22,400) | (19,595) | 19,601 |
Net increase in short-term borrowings | 18,000 | ||
Cash dividends paid | (15,234) | (13,177) | (10,675) |
Purchase of common shares for treasury | (7,799) | (8,838) | (2,270) |
Other financing activities, net | (1,125) | (945) | (467) |
Net cash provided by financing activities | 6,652 | 1,283 | 62,316 |
Net (decrease) increase in cash and cash equivalents | (26,979) | 2,823 | (38,633) |
Cash and cash equivalents at beginning of year | 230,933 | 228,110 | 266,743 |
Cash and cash equivalents at end of year | 203,954 | 230,933 | 228,110 |
Supplemental information: | |||
Cash paid for interest | 5,181 | 3,701 | 2,178 |
Cash paid for income taxes | $ 7,604 | $ 6,723 | $ 7,677 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2016 | $ 5,966 | $ 128,455 | $ 118,363 | $ (30,206) | $ (14,543) | $ 208,035 |
Net income | 25,014 | 25,014 | ||||
Cash dividends | (10,675) | (10,675) | ||||
Stock dividend | 558 | 75,108 | (75,674) | (8) | ||
Issuance of common shares pursuant to stock-based compensation plan, net | (821) | 273 | (548) | |||
Exercise of SARs | (451) | 142 | (309) | |||
Stock-based compensation expense | 2,340 | 2,340 | ||||
Purchase of common shares | (2,270) | (2,270) | ||||
Other comprehensive income (loss) | 3,509 | 3,509 | ||||
Other comprehensive income | ||||||
reclassification for ASU 2018-02 | 2,286 | (2,286) | ||||
Balance at Dec. 31, 2017 | 6,524 | 204,631 | 59,314 | (32,061) | (13,320) | 225,088 |
Net income | 30,268 | 30,268 | ||||
Cash dividends | (13,177) | (13,177) | ||||
Stock dividend | 1,229 | (1,234) | (5) | |||
Issuance of common shares pursuant to stock-based compensation plan, net | (991) | 624 | (367) | |||
Exercise of SARs | (876) | 301 | (575) | |||
Stock-based compensation expense | 3,006 | 3,006 | ||||
Purchase of common shares | (8,838) | (8,838) | ||||
Other comprehensive income (loss) | (5,552) | (5,552) | ||||
Balance at Dec. 31, 2018 | 7,753 | 205,770 | 75,171 | (39,974) | (18,872) | 229,848 |
Net income | 30,404 | 30,404 | ||||
Cash dividends | (15,234) | (15,234) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (1,417) | 1,358 | (59) | |||
Exercise of SARs | (2,100) | 1,034 | (1,066) | |||
Stock-based compensation expense | 3,144 | 3,144 | ||||
Purchase of common shares | (7,799) | (7,799) | ||||
Other comprehensive income (loss) | 4,952 | 4,952 | ||||
Balance at Dec. 31, 2019 | $ 7,753 | $ 205,397 | $ 90,341 | $ (45,381) | $ (13,920) | $ 244,190 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share | $ 1.05 | $ 0.89 | $ 0.72 |
Stock issued pursuant to stock-based compensation | 34,810 | 33,039 | 29,378 |
Stock Issued During Period, Shares, Purchase of Assets | 154,593 | 169,143 | 50,215 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies Summary of Operations Basis of Presentation Use of Estimates Cash and Cash Equivalents Investment in Debt Securities Investments – Debt and Equity Securities Allowance for Loan Losses (“ALLL”) Allowance for Credit Losses Estimated credit losses inherent in the remainder of the portfolio are estimated in accordance with FASB ASC 450, Contingencies Management believes the ALLL is adequate to absorb probable losses in the loan portfolio. Additionally, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to increase the ALLL based on their judgments and interpretations about information available to them at the time of their examinations. 37 Table of Contents Premises and Equipment Intangible Assets Periodically, the Company reviews intangible assets for events or changes in circumstances that may indicate that the carrying amount of the assets may not be recoverable. Based on those reviews, adjustments of recorded amounts have not been required. Non-marketable Equity Investments Foreclosed Assets Treasury Stock Comprehensive Income Loans Impairment of Loans Information Services Revenue Income Taxes 38 Table of Contents The Company recognizes and measures income tax benefits using a two-step model: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized; and 2) the benefit must be measured as the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized for a tax position in this model and the tax benefit claimed on a tax return is treated as an unrecognized tax benefit. The Company recognizes income tax related interest and penalties in income tax expense. Earnings Per Share Stock-Based Compensation Accounting for Stock Options and Other Stock-based Compensation Pension Plans Compensation – Retirement Benefits Fair Value Measurements Fair Value Measurements and Disclosures Impact of New and Not Yet Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC Topic 842) |
Capital Requirements and Regula
Capital Requirements and Regulatory Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Capital Requirements and Regulatory Restrictions | Note 2 Capital Requirements and Regulatory Restrictions The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulators to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier I capital and common equity Tier I capital to risk-weighted assets, and of Tier I capital to average assets. Management believes that as of December 31, 2019 and 2018, the Company and the Bank met all capital adequacy requirements to which they are subject. Effective July 2, 2013, the Federal Reserve Board approved final rules known as the “Basel III Capital Rules” that substantially revised the risk-based capital and leverage capital requirements applicable to bank holding companies and depository institutions, including the Company and the Bank. The Basel III Capital Rules implement aspects of the Basel III capital framework agreed upon by the Basel Committee and incorporate changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the Basel III Capital Rules establish stricter capital requirements and calculation standards, as well as more restrictive risk weightings for certain loans and facilities. The Basel III Capital Rules were effective for the Company and the Bank on January 1, 2015, subject to a phase-in period that ended on December 31, 2019. The Bank is also subject to the regulatory framework for prompt corrective action. As of December 31, 2019, the most recent notification from the regulatory agencies categorized the Bank as well-capitalized. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, common equity Tier I risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company has traditionally paid a quarterly cash dividend to its shareholders. Subsidiary dividends can be a significant source of funds for payment of dividends by the Company to its shareholders. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its “well capitalized” status, at December 31, 2019, unappropriated retained earnings of $52,786,000 were available at the Bank for the declaration of dividends to the Company without prior approval from regulatory authorities. In addition to regulatory requirements and considerations, any payment of dividends in the future will depend on the Company’s earnings, financial condition and other factors considered relevant by the Company’s Board of Directors. There were no restricted funds on deposit used to meet regulatory reserve requirements at December 31, 2019 and 2018. The Company’s and the Bank’s actual and required capital amounts and ratios are as follows: Actual Capital Requirements Requirement to be Well-Capitalized (In thousands) Amount Ratio Amount Ratio Amount Ratio At December 31, 2019 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 249,954 19.70 % $ 101,530 8.00 % $ N/A N/A % Cass Commercial Bank 154,011 19.32 63,778 8.00 79,722 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 239,398 18.86 57,110 4.50 N/A N/A Cass Commercial Bank 145,673 18.27 35,875 4.50 51,819 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 239,398 18.86 76,147 6.00 N/A N/A Cass Commercial Bank 145,673 18.27 47,833 6.00 63,778 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 239,398 13.24 72,329 4.00 N/A N/A Cass Commercial Bank 145,673 16.64 35,012 4.00 43,765 5.00 40 Table of Contents At December 31, 2018 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 244,660 21.38 % $ 91,550 8.00 % $ N/A N/A % Cass Commercial Bank 137,894 18.31 60,257 8.00 75,321 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 234,435 20.49 51,497 4.50 N/A N/A Cass Commercial Bank 130,037 17.26 33,895 4.50 48,959 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 234,435 20.49 68,662 6.00 N/A N/A Cass Commercial Bank 130,037 17.26 45,193 6.00 60,257 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 234,435 13.89 67,500 4.00 N/A N/A Cass Commercial Bank 130,037 15.35 33,884 4.00 42,354 5.00 |
Investment in Securities
Investment in Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Securities | Note 3 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 at December 31, 2019 and 2018 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 falls into the Level 2 category. The table below presents the balances of securities available-for-sale measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows: December 31, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 310,720 $ 13,727 $ — $ 324,447 U.S. government agencies 97,380 507 169 97,718 Certificates of deposit 500 — — 500 Total $ 408,600 $ 14,234 $ 169 $ 422,665 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: December 31, 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 $ — $ — $ — $ ─ $ — $ — U.S. government agencies 3,801 12 17,593 157 21,394 169 Certificates of deposit — — — ─ — — Total $ 3,801 $ 12 $ 17,593 $ 157 $ 21,394 $ 169 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 Certificates of deposit — — — — — — Total $ 121,657 $ 686 $ 98,551 $ 2,537 $ 220,208 $ 3,223 41 Table of Contents There were 9 securities, or 3% of the total (7 greater than 12 months), in an unrealized loss position as of December 31, 2019 compared to 136 securities, or 43% (61 greater than 12 months), in an unrealized loss position as of December 31, 2018. All unrealized losses are reviewed to determine whether the losses are other than temporary. Management believes that all unrealized losses are temporary since they are market driven, the Company does not have the intent to sell the security, 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 debt and equity 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. December 31, 2019 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 51,219 $ 51,485 Due after 1 year through 5 years 97,799 100,179 Due after 5 years through 10 years 222,143 233,289 Due after 10 years 37,439 37,712 No stated maturity — — Total $ 408,600 $ 422,665 The premium related to the purchase of state and political subdivisions was $6,408,000 and $6,857,000 in 2019 and 2018, respectively. There were no securities pledged to secure public deposits and for other purposes at December 31, 2019. Proceeds from sales of debt securities classified as available-for-sale were $4,648,000 in 2019, $58,520,000 in 2018, and $0 in 2017. Gross realized gains on the sales in 2019, 2018, and 2017 were $19,000, $180,000, and $0, respectively. Gross realized losses on sales in 2019, 2018, and 2017 were $0, $222,000, and $0, respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans Note 4 The Company originates commercial, industrial and real estate loans to businesses and faith-based ministries throughout the metropolitan St. Louis, Missouri area, Orange County, California, Colorado Springs, Colorado and other selected cities in the United States. The Company does not have any particular concentration of credit in any one economic sector; however, a substantial portion of the commercial and industrial loans is extended to privately-held commercial companies and franchises in these market areas and are generally secured by the assets of the business. The Company also has a substantial portion of real estate loans secured by mortgages that are extended to faith-based ministries in its market area and selected cities in the United States. A summary of loan categories is as follows: December 31, (In thousands) 2019 2018 Commercial and industrial $ 323,857 $ 277,091 Real estate Commercial: Mortgage 101,654 95,605 Construction 25,299 11,858 Faith-based: Mortgage 305,826 316,147 Construction 15,945 20,576 Other 57 310 Total loans $ 772,638 $ 721,587 42 Table of Contents The following table presents the aging of loans by loan categories at December 31, 2019: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans Commercial and industrial $ 323,857 $ — $ — $ — $ — $ 323,857 Real estate Commercial: Mortgage 101,654 — — — — 101,654 Construction 25,299 — — — — 25,299 Faith-based: Mortgage 305,826 — — — — 305,826 Construction 15,945 — — — — 15,945 Other 57 — — — — 57 Total $ 772,638 $ — $ — $ — $ — $ 772,638 The following table presents the aging of loans by loan categories at December 31, 2018: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans Commercial and industrial $ 277,091 $ — $ — $ — $ — $ 277,091 Real estate Commercial: Mortgage 95,605 — — — — 95,605 Construction 11,858 — — — — 11,858 Faith-based: Mortgage 316,147 — — — — 316,147 Construction 20,576 — — — — 20,576 Other 310 — — — — 310 Total $ 721,587 $ — $ — $ — $ — $ 721,587 The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2019: (In thousands) Loans Subject to Normal Monitoring (1) Performing Loans Subject to Special Monitoring (2) Nonperforming Loans Subject to Special Monitoring (2) Total Loans Commercial and industrial $ 321,554 $ 2,303 $ — $ 323,857 Real estate Commercial: Mortgage 100,346 1,308 — 101,654 Construction 25,299 — — 25,299 Faith-based: Mortgage 304,513 1,313 — 305,826 Construction 15,945 — — 15,945 Other 57 — — 57 Total $ 767,714 $ 4,924 $ — $ 772,638 (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 obligation. (2) Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. 43 Table of Contents The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of 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 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 obligation. (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 non-performing. 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. There was no ALLL related to impaired loans at both December 31, 2019 and 2018. There were no non-accrual loans at December 31, 2019 and 2018. There were no loans delinquent 90 days or more and still accruing interest at both December 31, 2019 and 2018. At December 31, 2019 and 2018, there were no loans classified as troubled debt restructuring. The average balances of impaired loans during 2019, 2018 and 2017 were $0, $0, and $166,000, respectively. Income that would have been recognized on non-accrual loans under the original terms of the contract was $0, $0, and $24,000 for 2019, 2018, and 2017, respectively. Income that was recognized on nonaccrual loans was $0, $0, and $17,000, for 2019, 2018, and 2017 respectively. There were no foreclosed assets as of December 31, 2019 or 2018. The Company does not record loans at fair value on a recurring basis. Once a loan is identified as impaired, management measures impairment in accordance with FASB ASC 310. At December 31, 2019 and 2018, there were no impaired loans. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. A summary of the activity in the allowance for loan losses for the period ended December 31, 2019 is as follows: (In thousands) December 31, 2018 Charge- Offs Recoveries Provision December 31, 2019 Commercial and industrial $ 4,179 $ — $ 81 $ 593 $ 4,853 Real estate Commercial: Mortgage 1,417 — — 105 1,522 Construction 89 — — 101 190 Faith-based: Mortgage 3,961 — — (135 ) 3,826 Construction 155 — — (35 ) 120 Other 424 — — (379 ) 45 Total $ 10,225 $ — $ 81 $ 250 $ 10,556 44 Table of Contents A summary of the activity in the allowance for loan losses for the period ended December 31, 2018 is as follows: (In thousands) December 31, 2017 Charge- Offs Recoveries Provision December 31, 2018 Commercial and industrial $ 3,652 $ — $ 20 $ 507 $ 4,179 Real estate Commercial: Mortgage 1,394 — — 23 1,417 Construction 70 — — 19 89 Faith-based: Mortgage 3,962 — — (1 ) 3,961 Construction 196 — — (41 ) 155 Industrial Revenue Bond 52 — — (52 ) — Other 879 — — (455 ) 424 Total $ 10,205 $ — $ 20 $ — $ 10,225 As of December 31, 2019 and 2018, there were loans totaling $167,429 and $278,153, respectively, to affiliates of executive officers or directors. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5 Premises and Equipment A summary of premises and equipment is as follows: December 31, (In thousands) 2019 2018 Land $ 873 $ 873 Buildings 14,763 14,684 Leasehold improvements 1,843 2,537 Furniture, fixtures and equipment 12,104 16,332 Purchased software 3,973 5,043 Internally developed software 18,780 17,428 52,336 56,897 Less accumulated depreciation 31,809 34,866 Total $ 20,527 $ 22,031 Total depreciation charged to expense in 2019, 2018 and 2017 amounted to $4,227,000, $3,954,000, and $3,624,000, respectively. |
Acquired Intangible Assets
Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Note 6 Acquired Intangible Assets The Company accounts for intangible assets in accordance with FASB ASC 350, Goodwill and Other Intangible Assets In September 2019, the Company acquired the assets of Gateway Giving, LLC and recorded intangible assets of $4,983,000. Those intangible assets were valued at $2,610,000 for software, $1,693,000 for goodwill, $490,000 for the customer list, and $190,000 for the trade name. The amounts for these intangible assets were originally recorded on a provisional basis and have been adjusted upon the completion of a valuation. The goodwill is deductible for tax purposes over 15 years, starting in 2019. The intangible assets and results of Gyve are included in the Banking Services operating segment. 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 recorded the earnout component to be $1,983,000. The fair value of the contingent consideration was estimated on the acquisition date as the present value of the expected future contingent payments which were determined using a scenario-based model. Any changes in the estimated fair value of the contingent earn-out consideration, up to the contracted amount, will be reflected in the results of operations in future periods as they are identified. 45 Table of Contents Details of the Company’s intangible assets are as follows: December 31, 2019 December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,778 $ (3,463 ) $ 4,288 $ (3,071 ) Patent 72 (20 ) 72 (16 ) Non-compete agreements 332 (332 ) 332 (326 ) Software 2,844 (358 ) 234 (234 ) Trade Name 190 (3 ) — — Other 500 (259 ) 500 (225 ) Unamortized intangible assets: Goodwill (1) 14,489 (227 ) 12,796 (227 ) Total intangible assets $ 23,205 $ (4,662 ) $ 18,222 $ (4,099 ) (1) Amortization through December 31, 2001 prior to adoption of FASB ASC 350. The customer lists are amortized over 7 and 10 years; the patents over 18 years, the non-compete agreements over 2 and 5 years, software over 3 years and 7 years, the trade name over 20 years and other intangible assets over 15 years. Amortization of intangible assets amounted to $563,000, $442,000, and $427,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated future amortization of intangibles is $859,000 in both 2020 and 2021, $540,000 in both 2022 and 2023, and $498,000 in 2024. |
Interest-Bearing Deposits
Interest-Bearing Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Interest-Bearing Deposits [Abstract] | |
Interest-Bearing Deposits | Note 7 Interest-Bearing Deposits Interest-bearing deposits consist of the following: December 31, (In thousands) 2019 2018 Interest-bearing demand deposits $ 322,027 $ 322,709 Savings deposits 13,051 13,502 Time deposits: Less than $100 4,927 4,862 $100 to less than $250 48,353 51,658 $250 or more 17,687 15,937 Total $ 406,045 $ 408,668 Weighted average interest rate 1.32 % 1.00 % Interest on deposits consists of the following: December 31, (In thousands) 2019 2018 2017 Interest-bearing demand deposits $ 3,686 $ 2,832 $ 1,611 Savings deposits 103 109 79 Time deposits: Less than $100 905 433 234 $100 to less than $250 216 152 114 $250 or more 281 210 149 Total $ 5,191 $ 3,736 $ 2,187 The scheduled maturities of time deposits are summarized as follows: December 31, 2019 2018 (In thousands) Amount Percent of Total Amount Percent of Total Due within: One year $ 47,881 67.5 % $ 51,154 70.6 % Two years 15,813 22.3 18,262 25.2 Three years 5,584 7.8 140 0.2 Four years 1,689 2.4 983 1.4 Five years ─ ─ 1,918 2.6 Total $ 70,967 100.0 % $ 72,457 100.0 % |
Unused Available Lines of Credi
Unused Available Lines of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Unused Available Lines of Credit | Note 8 Unused Available Lines of Credit As of December 31, 2019, the Bank had unsecured lines of credit at correspondent banks to purchase federal funds up to a maximum of $83,000,000 at the following banks: US Bank, $20,000,000; UMB Bank $20,000,000; Wells Fargo Bank, $15,000,000; PNC Bank, $12,000,000; Frost National Bank, $10,000,000; and JPM Chase Bank, $6,000,000. As of December 31, 2019, the Bank had secured lines of credit with the Federal Home Loan Bank of $192,045,000 collateralized by commercial mortgage loans. At December 31, 2019, the Company had lines of credit from UMB Bank of $50,000,000 and First Tennessee Bank of $50,000,000 collateralized by state and political subdivision securities. There was $18,000,000 outstanding under the lines of credit discussed above at December 31, 2019 and no amounts outstanding at December 31, 2018. The amount outstanding at the end of the 2019 was borrowed on December 31, 2019 and repaid on January 2, 2020. |
Common Stock and Earnings per S
Common Stock and Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Common Stock and Earnings per Share | Note 9 Common Stock and Earnings per Share The table below shows activity in the outstanding shares of the Company’s common stock during 2019. 2019 Shares outstanding at January 1 14,611,286 Issuance of common stock: Employee restricted stock grants 18,121 Employee SARs exercised 27,274 Directors’ compensation 12,278 Shares repurchased (154,593 ) Shares outstanding at December 31 14,514,366 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. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period. Anti-dilutive shares are those SARs with prices in excess of the current market value. The calculations of basic and diluted earnings per share are as follows: December 31, (In thousands except share and per share data) 2019 2018 2017 Basic: Net income $ 30,404 $ 30,268 $ 25,014 Weighted average common shares outstanding 14,434,445 14,675,136 14,700,558 Basic earnings per share $ 2.11 $ 2.06 $ 1.70 Diluted: Net income $ 30,404 $ 30,268 $ 25,014 Weighted average common shares outstanding 14,434,445 14,675,136 14,700,558 Effect of dilutive restricted stock, performance based restricted stock (“PBRS”), and SARs 257,480 239,066 215,332 Weighted average common shares outstanding assuming dilution 14,691,925 14,914,202 14,915,890 Diluted earnings per share $ 2.07 $ 2.03 $ 1.68 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 10 Employee Benefit Plans Defined Benefit Plan The Company has a noncontributory defined-benefit pension plan (the “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. A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows: 47 Table of Contents (In thousands) 2019 2018 Projected benefit obligation: Balance, January 1 $ 96,401 $ 98,790 Service cost 3,554 4,017 Interest cost 4,103 3,703 Actuarial loss (gain) 18,334 (7,768 ) Benefits paid (2,565 ) (2,341 ) Balance, December 31 $ 119,827 $ 96,401 Plan assets: Fair value, January 1 $ 74,580 $ 81,427 Actual return 15,719 (4,506 ) Employer contribution 6,900 — Benefits paid (2,565 ) (2,341 ) Fair value, December 31 $ 94,634 $ 74,580 Funded status: Accrued pension liability $ (25,192 ) $ (21,821 ) The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2019 and 2018, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve while in 2017, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve. For 2019, the Pri-2012 Mortality Table and MP-2019 Mortality Improvement Scale were used. For 2018, the RP-2014 Mortality Table and the MP-2018 Mortality Improvement Scale were used. For 2017, the RP-2014 Mortality Table and MP-2017 Mortality Improvement Scale were used. 2019 2018 2017 Weighted average discount rate 3.30 % 4.30 % 3.75 % Rate of increase in compensation levels (a) (a) (a) (a) 6.0% graded down to 3.25% over the first seven years of service. The accumulated benefit obligation was $103,736,000 and $83,724,000 as of December 31, 2019 and 2018, respectively. During 2019, the Company made a contribution of $6,900,000 to the Plan. The Company has not determined if it will make a contribution to the Plan in 2020. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan: Amount 2020 $ 3,098,000 2021 3,367,000 2022 3,766,000 2023 4,196,000 2024 4,488,000 2025-2029 27,343,000 The Plan’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2019 2018 2017 Service cost – benefits earned during the year $ 3,555 $ 4,017 $ 3,733 Interest cost on projected benefit obligations 4,103 3,703 3,621 Expected return on plan assets (4,753 ) (5,202 ) (4,681 ) Net amortization and deferral 1,559 1,522 1,382 Net periodic pension cost $ 4,464 $ 4,040 $ 4,055 The following represent the major assumptions used to determine the net pension cost of the Plan: 2019 2018 2017 Weighted average discount rate 4.30 % 3.75 % 4.25 % Rate of increase in compensation levels (a ) (a ) (a ) Expected long-term rate of return on assets 6.50 % 6.50 % 6.50 % (a) 6.0% graded down to 3.25% over the first seven years of service 48 Table of Contents For 2019, the RP-2014 Mortality Table and the MP-2018 Mortality Improvement Table were used. For 2018, the RP-2014 Mortality Table and the MP-2017 Mortality Improvement Table were used. For 2017, the RP-2014 Mortality Table and the MP-2016 Mortality Improvement Table were used. The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 51% fixed income, 19% U.S. equity and 30% non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below: Asset Class % of Total Portfolio One-Year Nominal Return Annual Standard Deviation Core Fixed Income 51 % 3.78 % 3.90 % Large Cap U.S. Equities 14 % 6.55 % 15.30 % Small Cap U.S. Equities 5 % 7.58 % 19.00 % International (Developed) 25 % 7.86 % 17.22 % International (Emerging) 5 % 10.24 % 25.05 % Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.50%. A summary of the fair value measurements by type of asset is as follows: Fair Value Measurements as of December 31, 2019 2018 (In thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash $ 462 $ 462 $ — $ 423 $ 423 $ — Equity securities U.S. Small/Mid Cap Growth 4,491 — 4,491 3,405 — 3,405 Non-U. S. Core 23,975 — 23,975 18,398 — 18,398 U.S. Large Cap Passive 13,523 — 13,523 10,471 — 10,471 Emerging Markets 4,559 — 4,559 3,217 — 3,217 Fixed Income U.S. Core 27,046 — 27,046 10,609 — 10,609 U.S. Passive 15,255 — 15,255 23,827 — 23,827 Opportunistic 5,323 — 5,323 4,230 — 4,230 Total $ 94,634 $ 462 $ 94,172 $ 74,580 $ 423 $ 74,157 Supplemental Executive Retirement Plan The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the Internal Revenue Service under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan. A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows: December 31, (In thousands) 2019 2018 Benefit obligation: Balance, January 1 $ 10,097 $ 10,094 Service cost 97 92 Interest cost 408 348 Benefits paid (262 ) (260 ) Actuarial loss (gain) 1,372 (177 ) Balance, December 31 $ 11,712 $ 10,097 49 Table of Contents The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2019 and 2018, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2017, the Citigroup Above Median Curve was used. 2019 2018 2017 Weighted average discount rate 3.00 % 4.10 % 3.50 % Rate of increase in compensation levels (a) (a) (a) (a) 6.00% graded down to 3.25% over the first seven years of service. The accumulated benefit obligation was $10,485,000 and $8,830,000 as of December 31, 2019 and 2018, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $262,000 in 2019, $260,000 in 2018, and $247,000 in 2017. Expected future benefits payable by the Company over the next ten years are as follows: Amount 2020 $ 291,000 2021 344,000 2022 752,000 2023 829,000 2024 826,000 2025-2029 4,055,000 The SERP’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2019 2018 2017 Service cost – benefits earned during the year $ 97 $ 92 $ 143 Interest cost on projected benefit obligations 408 348 360 Net amortization and deferral 276 581 324 Net periodic pension cost $ 781 $ 1,021 $ 827 The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows: The Plan SERP (In thousands) 2019 2018 2019 2018 Prior service cost $ — $ — $ — $ — Net actuarial loss 29,387 23,580 2,724 1,629 Total $ 29,387 $ 23,580 $ 2,724 $ 1,629 The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2019 expected to be recognized as components of net periodic benefit cost in 2020 for the Plan are $0 and $1,890,000, respectively. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2019 expected to be recognized as components of net periodic benefit cost in 2020 for the SERP are $0 and $112,000, respectively. The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in personnel expense in the consolidated statements of income in 2019, 2018, and 2017 was $6,841,000, $6,810,000, and $5,799,000, respectively. The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2019, 2018 and 2017 were $1,378,000, $1,109,000, and $925,000, respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Note 11 Stock-based Compensation The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) provides incentive opportunities for key employees and non-employee directors and to align the personal financial interests of such individuals with those of the Company’s shareholders. 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, SARs, restricted stock, restricted stock units and performance awards. 50 Table of Contents Restricted Stock Restricted shares granted prior to April 16, 2013 are amortized to expense over the three-year vesting period. Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over the three-year annual 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 payment 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. Changes in restricted shares outstanding for the year ended December 31, 2019 were as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2018 99,724 $45.48 Granted 36,812 49.30 Vested (13,264 ) 39.76 Balance at December 31, 2019 123,272 $47.24 During 2018 and 2017, 35,000 and 31,277 shares, respectively, were granted with weighted average per share market values at date of grant of $49.79 in 2018 and $49.55 in 2017. The fair value of such shares are based on the market price on the date of grant. Amortization of the restricted stock bonus awards totaled $1,551,000 for 2019, $1,571,000 for 2018 and $1,743,000 for 2017. As of December 31, 2019, the total unrecognized compensation expense related to non-vested restricted stock awards was $1,438,000 and the related weighted average period over which it is expected to be recognized is approximately 1.07 years. The total fair value of shares vested during the years ended December 2019, 2018, and 2017 was $527,000, $1,112,000, and $1,389,000, respectively. Performance-Based Restricted Stock In February 2017, 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, 2017 through December 31, 2019. The PBRS awards cliff vest on the three year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares granted was 30,388 with an average grant date fair value of $49.33 per share. The 2019 expense related to these grants totaled $583,000 and is based on the grant date fair value of the awards and the Company’s achievement of 118% 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 each of February and July 2018, the Company granted three-year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2018 through December 31, 2020. The PBRS awards cliff vest on the three-year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares granted was 35,602 with an average grant date fair value of $49.04 per share. The 2019 expense related to these grants totaled $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 each of February and June 2019, the Company granted three-year PBRS awards which are contingent upon the Company’s achievement of pre-established financial goals over the period from January 1, 2019 through December 31, 2021. The PBRS awards cliff vest on the three-year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The aggregate target number of PBRS shares granted was 36,801 with an average grant date fair value of $49.06 per share. The 2019 expense related to these grants totaled $593,000 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 During 2019, there were no SARs granted and no expense recognized. As of December 31, 2019, there was no unrecognized compensation expense related to SARs. 51 Table of Contents Changes in SARs outstanding for the year ended December 31, 2019 were as follows: SARs Weighted Average Exercise Price Balance at December 31, 2018 237,121 $29.86 Exercised (81,829 ) 24.71 Forfeited — — Balance at December 31, 2019 155,292 32.58 Exercisable at December 31, 2019 155,292 $32.58 The total intrinsic value of SARs exercised during 2019 and 2018 was $2,022,000 and $1,110,000, respectively. The average remaining contractual term for SARs outstanding as of December 31, 2019 was 2.92 years, and the aggregate intrinsic value was $3,908,000. The average remaining contractual term for SARs exercisable as of December 31, 2018 was 3.50 years, and the aggregate intrinsic value was $5,468,000. The total compensation cost for share-based payment arrangements was $3,144,000, $3,006,000, and $2,340,000, in 2019, 2018, and 2017, respectively. |
Other Operating Expense
Other Operating Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | Note 12 Other Operating Expense Details of other operating expense are as follows: For the Years Ended December 31, (In thousands) 2019 2018 2017 Postage and supplies $ 1,875 $ 2,180 $ 2,087 Promotional expense 3,838 3,344 2,557 Professional fees 2,388 2,170 1,650 Outside service fees 5,529 4,909 4,424 Data processing services 1,283 919 897 Telecommunications 748 778 749 Other 2,404 1,963 1,722 Total other operating expense $ 18,065 $ 16,263 $ 14,086 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 Income Taxes The components of income tax expense (benefit) are as follows: For the Years Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 4,423 $ 8,557 $ 4,250 State 1,392 1,043 1,638 Deferred: Federal 1,097 (3,404 ) 4,256 State 150 (117 ) (259 ) Total income tax expense $ 7,062 $ 6,079 $ 9,885 A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each of 2019 and 2018 and 35% for 2017 to income before income tax expense is as follows: For the Years Ended December 31, (In thousands) 2019 2018 2017 Expected income tax expense $ 7,868 $ 7,633 $ 12,214 (Reductions) increases resulting from: Tax-exempt income (1,755 ) (2,009 ) (3,868 ) State taxes, net of federal benefit 1,218 732 896 Share-based compensation adjustment (281 ) (286 ) (376 ) Adjustment of deferred tax asset or liability for TCJA — (74 ) 1,824 Other, net 12 83 (805 ) Total income tax expense $ 7,062 $ 6,079 $ 9,885 Income tax expense in 2019 totaled $7,062,000 compared to $6,079,000 and $9,885,000 in 2018 and 2017, respectively. When measured as a percent of pre-tax income, the Company’s effective tax rate was 19% in 2019, 17% in 2018, and 28% in 2017. The increase in 2019 tax expense was primarily the result of the decrease in the amount of tax-exempt income from municipal bonds, an increase in state tax expense, and a prior year reduction of tax expense recorded from the final analysis and measurement of the TCJA. 52 Table of Contents The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (In thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,452 $ 2,376 ASC 715 pension funding liability 7,642 6,000 Net operating loss carryforward (1) 27 50 Supplemental executive retirement plan accrual 2,087 1,968 Stock compensation 1,987 1,673 Total deferred tax assets $ 14,195 $ 12,067 Deferred tax liabilities: Premises and equipment (2,821 ) (1,937 ) Pension (974 ) (409 ) Intangible assets (1,379 ) (1,212 ) Unrealized gain on investment in securities available-for-sale (3,348 ) (156 ) Other (196 ) (80 ) Total deferred tax liabilities $ (8,718 ) $ (3,794 ) Net deferred tax assets $ 5,477 $ 8,273 (1) As of December 31, 2019, the Company had approximately $128,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company’s use to approximately $122,000 per year during the carry forward period, which expires in 2024 A valuation allowance would be provided on deferred tax assets when it is more likely than not that some portion of the assets will not be realized. The Company has not established a valuation allowance at December 31, 2019 or 2018, due to management’s belief that all criteria for recognition have been met, including the expectation of projected future taxable income sufficient to support the realization of deferred tax assets. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is presented in the following table: (In thousands) 2019 2018 2017 Balance at January 1 $ 1,403 $ 1,632 $ 1,623 Changes in unrecognized tax benefits as a result of tax positions taken during a prior year 56 (135 ) (15 ) Changes in unrecognized tax benefits as a result of tax position taken during the current year 171 192 263 Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (331 ) (286 ) (239 ) Balance at December 31 $ 1,299 $ 1,403 $ 1,632 At December 31, 2019, 2018 and 2017, the balances of the Company’s unrecognized tax benefits which would, if recognized, affect the Company’s effective tax rate were $1,184,000, $1,272,000 and $1,464,000, respectively. These amounts are net of the offsetting benefits from other taxing jurisdictions. As of December 31, 2019, 2018 and 2017, the Company had $151,000, $136,000 and $139,000, respectively, in accrued interest related to unrecognized tax benefits. The Company believes it is reasonably possible that the total amount of unrecognized tax benefits will decrease by approximately $315,000 over the next 12 months. The reduction primarily relates to the anticipated lapse in the statute of limitations. The unrecognized tax benefits relate primarily to apportionment of taxable income among various state tax jurisdictions. The Company is subject to income tax in the U.S. federal jurisdiction, numerous state jurisdictions, and a foreign jurisdiction. The Company’s federal income tax returns for tax years 2016 through 2018 remain subject to examination by the Internal Revenue Service. In addition, the Company is subject to state tax examinations for the tax years 2015 through 2018. The Company is currently under audit from the Internal Revenue Service for the 2017 tax year. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Financial Instruments | Note 14 Disclosures about Fair Value of Financial Instruments The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. 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 December 31, 2019 and 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 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. The approximate remaining terms of commercial and standby letters of credit range from less than one to five years. Since these 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 may obtain and liquidate the collateral to recover amounts paid under its guarantees on these financial instruments. The following table shows conditional commitments to extend credit, standby letters of credit and commercial letters: December 31, (In thousands) 2019 2018 Conditional commitments to extend credit $ 197,799 $ 144,010 Standby letters of credit 13,288 11,368 Commercial letters of credit 2,755 3,486 The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments and the present credit worthiness of such counterparties. The Company believes such commitments have been made at terms which are competitive in the markets in which it operates; however, no premium or discount is offered thereon. Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: December 31, 2019 2018 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 203,954 $ 203,954 $ 230,933 $ 230,933 Investment in securities 422,665 422,665 441,534 441,534 Loans, net 762,082 776,653 711,362 711,090 Accrued interest receivable 6,706 6,706 7,069 7,069 Total $ 1,395,407 $ 1,409,978 $ 1,390,898 $ 1,390,626 Balance sheet liabilities: Deposits $ 757,136 $ 757,790 $ 721,926 $ 722,018 Accounts and drafts payable 684,295 684,295 694,360 694,360 Accrued interest payable 103 103 91 91 Total $ 1,441,534 $ 1,442,188 $ 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 54 Table of Contents Loans Impaired loans are valued using the fair value of the collateral which is based upon an observable market price or current appraised value and therefore, the fair value is a nonrecurring Level 3 valuation. Accrued Interest Receivable Deposits Accounts and Drafts Payable Accrued Interest Limitations |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 15 Contingencies The Company and its subsidiaries are not involved in any pending proceedings other than ordinary routine litigation incidental to their businesses. Management believes none of these proceedings, if determined adversely, would have a material effect on the business or financial condition of the Company or its subsidiaries. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 16 Revenue from Contracts with Customers On January 1, 2018, the Company adopted 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 performance obligation to the customer is satisfied. Services within the scope of FASB ASC 606 include invoice processing and payment fees, bank service fees, and OREO. Invoice processing fees Invoice payment fees Bank service fees OREO 55 Table of Contents For the Years Ended December 31, (In thousands) 2019 2018 2017 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 81,329 $ 78,461 $ 72,961 Invoice payment fees 26,624 23,720 20,361 Information services payment and processing revenue 107,953 102,181 93,322 Bank service fees 1,386 1,335 1,349 Fee revenue (in-scope of FASB ASC 606 109,339 103,516 94,671 Other income (out-of-scope of FASB ASC 606 730 560 841 Total fee revenue and other income 110,069 104,076 95,512 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606 47,166 44,190 39,790 Total net revenue $ 157,235 $ 148,266 $ 135,302 |
Industry Segment Information
Industry Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 17 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, including on-line generosity services, 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 Note 1 of this report. 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. Certain amounts in the table below for 2018 and 2017 have been reclassified to conform to the 2019 presentation. 56 Table of Contents Summarized information about the Company’s operations in each industry segment for the years ended December 31, 2019, 2018 and 2017, is as follows: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total 2019 Fee income from customers $ 108,882 $ 1,660 $ (473 ) $ 110,069 Interest income* 25,616 30,646 (1,568 ) 54,694 Interest expense — 5,193 — 5,193 Intersegment income (expense) — 2,107 (2,107 ) — Depreciation and amortization 4,659 131 — 4,790 Tax-equivalized pre-tax income* 28,542 13,048 (2,040 ) 39,550 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 1,142 3,139 — 4,281 Total Assets 844,483 915,341 4,419 1,764,243 Funding Sources 676,068 592,905 — 1,268,973 2018 Fee income from customers $ 102,839 $ 1,307 $ (70 ) $ 104,076 Interest income* 25,074 27,770 (2,496 ) 50,348 Interest expense — 3,736 — 3,736 Intersegment income (expense) — 1,880 (1,880 ) — Depreciation and amortization 4,254 142 — 4,396 Tax-equivalized pre-tax income* 27,763 13,571 (2,566 ) 38,768 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,554 — — 1,554 Total Assets 826,201 886,291 (17,316 ) 1,695,176 Funding Sources 642,733 572,653 — 1,215,386 2017 Fee income from customers $ 93,484 $ 1,547 $ 481 $ 95,512 Interest income* 23,813 27,376 (3,522 ) 47,667 Interest expense — 2,187 — 2,187 Intersegment income (expense) — 1,362 (1,362 ) — Depreciation and amortization 3,902 149 — 4,051 Tax-equivalized pre-tax income* 28,168 15,460 (3,039 ) 40,589 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,996 — — 1,996 Total Assets 854,214 830,672 (27,677 ) 1,603,209 Funding Sources 604,493 598,986 — 1,203,479 * Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 18 Leases On January 1, 2019, the Company adopted ASU 2016-02. The Company leases certain premises under operating leases. As of December 31, 2019, the Company had lease liabilities of $6,682,000 and right-of-use assets of $5,848,000. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. Included in occupancy expense on the consolidated statements of income for 2019 was operating lease cost of $1,675,000, short-term lease cost of $145,000, and there was no variable lease cost. The Company paid cash of $1,531,000 for operating lease amounts included in the measurement of lease liabilities for the year ended December 31, 2019. No right-of-use assets were obtained in exchange for lease liabilities during the year ended December 31, 2019. For the year ended December 31, 2019, the weighted average remaining lease term for the operating leases was 6.4 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. 57 Table of Contents A maturity analysis of operating lease liabilities and undiscounted cash flows as of December 31, 2019 was as follows: (In thousands) December 31, 2019 Lease payments due Less than 1 year $ 1,748 1-2 years 1,613 2-3 years 1,538 3-4 years 614 4-5 years 392 Over 5 years 1,972 Total undiscounted cash flows 7,877 Discount on cash flows 1,195 Total lease liability $ 6,682 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the year ended December 31, 2019. At December 31, 2019, the Company had one lease that had not yet commenced, but is expected to create approximately $800,000 of additional lease liabilities and right-of-use assets for the Company. This lease is anticipated to commence in 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19 Subsequent Events In accordance with FASB ASC 855 - Subsequent Events |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | Note 20 Condensed Financial Information of Parent Company Following are the condensed balance sheets of the Company (parent company only) and the related condensed statements of income and cash flows. Condensed Balance Sheets December 31, (In thousands) 2019 2018 Assets Cash and due from banks $ 17,032 $ 35,735 Short-term investments 3,223 35,201 Securities available-for-sale, at fair value 422,665 441,534 Loans, net 45,187 20,188 Payments in excess of funding 206,158 160,777 Investments in subsidiaries 145,400 130,231 Premises and equipment, net 19,940 21,358 Other assets 137,226 117,374 Total assets $ 996,831 $ 962,398 Liabilities and Shareholders’ Equity Liabilities: Accounts and drafts payable $ 683,485 $ 693,026 Short-term borrowings 18,000 — Other liabilities 50,987 39,362 Total liabilities 752,472 732,388 Total shareholders’ equity 244,359 230,010 Total liabilities and shareholders’ equity $ 996,831 $ 962,398 58 Table of Contents Condensed Statements of Income For the Years Ended December 31, (In thousands) 2019 2018 2017 Income from subsidiaries – management fees $ 2,599 $ 2,668 $ 2,172 Information services revenue 106,198 100,628 93,133 Net interest income after provision 15,713 14,159 13,217 Gain (loss) on sales of investment securities 19 (42 ) — Other income 518 456 483 Total income 125,047 117,869 109,005 Expenses: Salaries and employee benefits 81,432 77,946 70,409 Other expenses 26,136 23,442 20,333 Total expenses 107,568 101,388 90,742 Income before income tax and equity in undistributed income of subsidiaries 17,479 16,481 18,263 Income tax expense 2,860 1,788 4,394 Income before undistributed income of subsidiaries 14,619 14,693 13,869 Equity in undistributed income of subsidiaries 15,785 15,575 11,145 Net income $ 30,404 $ 30,268 $ 25,014 Condensed Statements of Cash Flows For the Years Ended December 31, (In thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 30,404 $ 30,268 $ 25,014 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiaries (15,785 ) (15,575 ) (11,145 ) Net change in other assets (6,289 ) (1,012 ) (7,257 ) Net change in other liabilities 9,474 3,829 10,118 Stock-based compensation expense 3,144 2,583 1,743 Other, net 6,104 10,242 9,219 Net cash provided by operating activities 27,052 30,335 27,692 Cash flows from investing activities: Net decrease (increase) in securities 26,150 14,615 (80,621 ) Net (increase) decrease in loans (24,999 ) (7,949 ) 34,944 Net increase in payments in excess of funding (45,381 ) (21,674 ) (33,756 ) Purchases of premises and equipment, net (2,637 ) (4,211 ) (4,020 ) Asset acquisition of Gateway Giving, LLC (2,833 ) — — Net cash used in investing activities (49,700 ) (19,219 ) (83,453 ) Cash flows from financing activities: Net (decrease) increase in accounts and drafts payable (21,875 ) (22,316 ) 20,397 Short-term borrowings 18,000 — — Cash dividends paid (15,234 ) (13,177 ) (10,675 ) Purchase of common shares for treasury (7,799 ) (8,838 ) (2,270 ) Other financing activities, net (1,125 ) (635 ) (267 ) Net cash (used in) provided by financing activities (28,033 ) (44,966 ) 7,185 Net decrease in cash and cash equivalents (50,681 ) (33,850 ) (48,576 ) Cash and cash equivalents at beginning of year 70,936 104,786 153,362 Cash and cash equivalents at end of year $ 20,255 $ 70,936 $ 104,786 |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION | Note 21 SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) (In thousands except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter YTD 2019 Fee revenue and other income $ 27,013 $ 27,372 $ 28,262 $ 27,422 $ 110,069 Interest income 12,897 13,327 13,666 12,719 52,609 Interest expense 1,290 1,305 1,392 1,206 5,193 Net interest income 11,607 12,022 12,274 11,513 47,416 Provision for loan losses 250 — — — 250 Operating expense 28,462 29,971 30,563 30,773 119,769 Income tax expense 1,745 1,739 1,787 1,791 7,062 Net income $ 8,163 $ 7,684 $ 8,186 $ 6,371 $ 30,404 Net income per share: Basic earnings per share $ .56 $ .53 $ .57 $ .44 $ 2.11 Diluted earnings per share .55 .52 .56 .43 2.07 2018 Fee revenue and other income $ 25,374 $ 25,640 $ 26,435 $ 26,627 $ 104,076 Interest income 11,288 11,513 12,215 12,910 47,926 Interest expense 679 794 1,029 1,234 3,736 Net interest income 10,609 10,719 11,186 11,676 44,190 Provision for loan losses — — — — — Operating expense 26,182 27,463 28,530 29,744 111,919 Income tax expense 1,709 1,387 1,481 1,502 6,079 Net income $ 8,092 $ 7,509 $ 7,610 $ 7,057 $ 30,268 Net income per share: Basic earnings per share $ .55 $ .51 $ .52 $ .48 $ 2.06 Diluted earnings per share .54 .50 .51 .47 2.03 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Operations | Summary of Operations |
Basis of Presentation | Basis of Presentation |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investment in Debt Securities | Investment in Debt Securities Investments – Debt and Equity Securities |
Allowance for Loan Losses | Allowance for Loan Losses (“ALLL”) Allowance for Credit Losses Estimated credit losses inherent in the remainder of the portfolio are estimated in accordance with FASB ASC 450, Contingencies Management believes the ALLL is adequate to absorb probable losses in the loan portfolio. Additionally, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to increase the ALLL based on their judgments and interpretations about information available to them at the time of their examinations. 37 Table of Contents Premises and Equipment |
Premises and Equipment | Premises and Equipment |
Intangible Assets | Intangible Assets Periodically, the Company reviews intangible assets for events or changes in circumstances that may indicate that the carrying amount of the assets may not be recoverable. Based on those reviews, adjustments of recorded amounts have not been required. |
Non-marketable Equity Investments | Non-marketable Equity Investments |
Foreclosed Assets | Foreclosed Assets |
Treasury Stock | Treasury Stock |
Comprehensive Income | Comprehensive Income |
Loans | Loans |
Impairment of Loans | Impairment of Loans |
Information Services Revenue | Information Services Revenue |
Income Taxes | Income Taxes 38 Table of Contents The Company recognizes and measures income tax benefits using a two-step model: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized; and 2) the benefit must be measured as the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized for a tax position in this model and the tax benefit claimed on a tax return is treated as an unrecognized tax benefit. The Company recognizes income tax related interest and penalties in income tax expense. |
Earnings Per Share | Earnings Per Share |
Share-Based Compensation | Stock-Based Compensation Accounting for Stock Options and Other Stock-based Compensation |
Pension Plans | Pension Plans Compensation – Retirement Benefits |
Fair Value Measurements | Fair Value Measurements Fair Value Measurements and Disclosures |
Impact of New and Not Yet Adopted Accounting Pronouncements | Impact of New and Not Yet Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC Topic 842) |
Capital Requirements and Regu_2
Capital Requirements and Regulatory Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Capital Amounts and Ratios | The Company’s and the Bank’s actual and required capital amounts and ratios are as follows: Actual Capital Requirements Requirement to be Well-Capitalized (In thousands) Amount Ratio Amount Ratio Amount Ratio At December 31, 2019 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 249,954 19.70 % $ 101,530 8.00 % $ N/A N/A % Cass Commercial Bank 154,011 19.32 63,778 8.00 79,722 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 239,398 18.86 57,110 4.50 N/A N/A Cass Commercial Bank 145,673 18.27 35,875 4.50 51,819 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 239,398 18.86 76,147 6.00 N/A N/A Cass Commercial Bank 145,673 18.27 47,833 6.00 63,778 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 239,398 13.24 72,329 4.00 N/A N/A Cass Commercial Bank 145,673 16.64 35,012 4.00 43,765 5.00 40 Table of Contents At December 31, 2018 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 244,660 21.38 % $ 91,550 8.00 % $ N/A N/A % Cass Commercial Bank 137,894 18.31 60,257 8.00 75,321 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 234,435 20.49 51,497 4.50 N/A N/A Cass Commercial Bank 130,037 17.26 33,895 4.50 48,959 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 234,435 20.49 68,662 6.00 N/A N/A Cass Commercial Bank 130,037 17.26 45,193 6.00 60,257 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 234,435 13.89 67,500 4.00 N/A N/A Cass Commercial Bank 130,037 15.35 33,884 4.00 42,354 5.00 |
Investment in Securities (Table
Investment in Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale at December 31, 2019 and 2018 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 falls into the Level 2 category. The table below presents the balances of securities available-for-sale measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows: December 31, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 310,720 $ 13,727 $ — $ 324,447 U.S. government agencies 97,380 507 169 97,718 Certificates of deposit 500 — — 500 Total $ 408,600 $ 14,234 $ 169 $ 422,665 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 Fair Value of Securities with Unrealized Losses | The fair values of securities with unrealized losses are as follows: December 31, 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 $ — $ — $ — $ ─ $ — $ — U.S. government agencies 3,801 12 17,593 157 21,394 169 Certificates of deposit — — — ─ — — Total $ 3,801 $ 12 $ 17,593 $ 157 $ 21,394 $ 169 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 Certificates of deposit — — — — — — Total $ 121,657 $ 686 $ 98,551 $ 2,537 $ 220,208 $ 3,223 |
Schedule of Amortized Cost and Fair Value | The amortized cost and fair value of debt and equity 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. December 31, 2019 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 51,219 $ 51,485 Due after 1 year through 5 years 97,799 100,179 Due after 5 years through 10 years 222,143 233,289 Due after 10 years 37,439 37,712 No stated maturity — — Total $ 408,600 $ 422,665 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: December 31, (In thousands) 2019 2018 Commercial and industrial $ 323,857 $ 277,091 Real estate Commercial: Mortgage 101,654 95,605 Construction 25,299 11,858 Faith-based: Mortgage 305,826 316,147 Construction 15,945 20,576 Other 57 310 Total loans $ 772,638 $ 721,587 |
Schedule of the Aging Loans by Loan Categories | 42 Table of Contents The following table presents the aging of loans by loan categories at December 31, 2019: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans Commercial and industrial $ 323,857 $ — $ — $ — $ — $ 323,857 Real estate Commercial: Mortgage 101,654 — — — — 101,654 Construction 25,299 — — — — 25,299 Faith-based: Mortgage 305,826 — — — — 305,826 Construction 15,945 — — — — 15,945 Other 57 — — — — 57 Total $ 772,638 $ — $ — $ — $ — $ 772,638 The following table presents the aging of loans by loan categories at December 31, 2018: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans Commercial and industrial $ 277,091 $ — $ — $ — $ — $ 277,091 Real estate Commercial: Mortgage 95,605 — — — — 95,605 Construction 11,858 — — — — 11,858 Faith-based: Mortgage 316,147 — — — — 316,147 Construction 20,576 — — — — 20,576 Other 310 — — — — 310 Total $ 721,587 $ — $ — $ — $ — $ 721,587 |
Schedule of Credit Exposure of the Loan Portfolio | The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2019: (In thousands) Loans Subject to Normal Monitoring (1) Performing Loans Subject to Special Monitoring (2) Nonperforming Loans Subject to Special Monitoring (2) Total Loans Commercial and industrial $ 321,554 $ 2,303 $ — $ 323,857 Real estate Commercial: Mortgage 100,346 1,308 — 101,654 Construction 25,299 — — 25,299 Faith-based: Mortgage 304,513 1,313 — 305,826 Construction 15,945 — — 15,945 Other 57 — — 57 Total $ 767,714 $ 4,924 $ — $ 772,638 (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 obligation. (2) Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. 43 Table of Contents The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of 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 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 obligation. (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 for the period ended December 31, 2019 is as follows: (In thousands) December 31, 2018 Charge- Offs Recoveries Provision December 31, 2019 Commercial and industrial $ 4,179 $ — $ 81 $ 593 $ 4,853 Real estate Commercial: Mortgage 1,417 — — 105 1,522 Construction 89 — — 101 190 Faith-based: Mortgage 3,961 — — (135 ) 3,826 Construction 155 — — (35 ) 120 Other 424 — — (379 ) 45 Total $ 10,225 $ — $ 81 $ 250 $ 10,556 44 Table of Contents A summary of the activity in the allowance for loan losses for the period ended December 31, 2018 is as follows: (In thousands) December 31, 2017 Charge- Offs Recoveries Provision December 31, 2018 Commercial and industrial $ 3,652 $ — $ 20 $ 507 $ 4,179 Real estate Commercial: Mortgage 1,394 — — 23 1,417 Construction 70 — — 19 89 Faith-based: Mortgage 3,962 — — (1 ) 3,961 Construction 196 — — (41 ) 155 Industrial Revenue Bond 52 — — (52 ) — Other 879 — — (455 ) 424 Total $ 10,205 $ — $ 20 $ — $ 10,225 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment is as follows: December 31, (In thousands) 2019 2018 Land $ 873 $ 873 Buildings 14,763 14,684 Leasehold improvements 1,843 2,537 Furniture, fixtures and equipment 12,104 16,332 Purchased software 3,973 5,043 Internally developed software 18,780 17,428 52,336 56,897 Less accumulated depreciation 31,809 34,866 Total $ 20,527 $ 22,031 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: December 31, 2019 December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,778 $ (3,463 ) $ 4,288 $ (3,071 ) Patent 72 (20 ) 72 (16 ) Non-compete agreements 332 (332 ) 332 (326 ) Software 2,844 (358 ) 234 (234 ) Trade Name 190 (3 ) — — Other 500 (259 ) 500 (225 ) Unamortized intangible assets: Goodwill (1) 14,489 (227 ) 12,796 (227 ) Total intangible assets $ 23,205 $ (4,662 ) $ 18,222 $ (4,099 ) (1) Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest-Bearing Deposits [Abstract] | |
Schedule of Interest Bearing Deposits | Interest-bearing deposits consist of the following: December 31, (In thousands) 2019 2018 Interest-bearing demand deposits $ 322,027 $ 322,709 Savings deposits 13,051 13,502 Time deposits: Less than $100 4,927 4,862 $100 to less than $250 48,353 51,658 $250 or more 17,687 15,937 Total $ 406,045 $ 408,668 Weighted average interest rate 1.32 % 1.00 % |
Schedule of Interest on Deposits | Interest on deposits consists of the following: December 31, (In thousands) 2019 2018 2017 Interest-bearing demand deposits $ 3,686 $ 2,832 $ 1,611 Savings deposits 103 109 79 Time deposits: Less than $100 905 433 234 $100 to less than $250 216 152 114 $250 or more 281 210 149 Total $ 5,191 $ 3,736 $ 2,187 |
Schedule of Maturities of Time Deposits | The scheduled maturities of time deposits are summarized as follows: December 31, 2019 2018 (In thousands) Amount Percent of Total Amount Percent of Total Due within: One year $ 47,881 67.5 % $ 51,154 70.6 % Two years 15,813 22.3 18,262 25.2 Three years 5,584 7.8 140 0.2 Four years 1,689 2.4 983 1.4 Five years ─ ─ 1,918 2.6 Total $ 70,967 100.0 % $ 72,457 100.0 % |
Common Stock and Earnings per_2
Common Stock and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Common Stock Outstanding | The table below shows activity in the outstanding shares of the Company’s common stock during 2019. 2019 Shares outstanding at January 1 14,611,286 Issuance of common stock: Employee restricted stock grants 18,121 Employee SARs exercised 27,274 Directors’ compensation 12,278 Shares repurchased (154,593 ) Shares outstanding at December 31 14,514,366 |
Schedule of the Calculations of Basic and Diluted Earnings per Share | The calculations of basic and diluted earnings per share are as follows: December 31, (In thousands except share and per share data) 2019 2018 2017 Basic: Net income $ 30,404 $ 30,268 $ 25,014 Weighted average common shares outstanding 14,434,445 14,675,136 14,700,558 Basic earnings per share $ 2.11 $ 2.06 $ 1.70 Diluted: Net income $ 30,404 $ 30,268 $ 25,014 Weighted average common shares outstanding 14,434,445 14,675,136 14,700,558 Effect of dilutive restricted stock, performance based restricted stock (“PBRS”), and SARs 257,480 239,066 215,332 Weighted average common shares outstanding assuming dilution 14,691,925 14,914,202 14,915,890 Diluted earnings per share $ 2.07 $ 2.03 $ 1.68 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Projected Benefit Obligation | A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows: 47 Table of Contents (In thousands) 2019 2018 Projected benefit obligation: Balance, January 1 $ 96,401 $ 98,790 Service cost 3,554 4,017 Interest cost 4,103 3,703 Actuarial loss (gain) 18,334 (7,768 ) Benefits paid (2,565 ) (2,341 ) Balance, December 31 $ 119,827 $ 96,401 Plan assets: Fair value, January 1 $ 74,580 $ 81,427 Actual return 15,719 (4,506 ) Employer contribution 6,900 — Benefits paid (2,565 ) (2,341 ) Fair value, December 31 $ 94,634 $ 74,580 Funded status: Accrued pension liability $ (25,192 ) $ (21,821 ) |
Schedule of Assumptions used to Determine Projected Benefit Obligation | The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2019 and 2018, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve while in 2017, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve. For 2019, the Pri-2012 Mortality Table and MP-2019 Mortality Improvement Scale were used. For 2018, the RP-2014 Mortality Table and the MP-2018 Mortality Improvement Scale were used. For 2017, the RP-2014 Mortality Table and MP-2017 Mortality Improvement Scale were used. 2019 2018 2017 Weighted average discount rate 3.30 % 4.30 % 3.75 % Rate of increase in compensation levels (a) (a) (a) (a) 6.0% graded down to 3.25% over the first seven years of service. |
Schedule of Expected Pension Benefit Payments | The accumulated benefit obligation was $103,736,000 and $83,724,000 as of December 31, 2019 and 2018, respectively. During 2019, the Company made a contribution of $6,900,000 to the Plan. The Company has not determined if it will make a contribution to the Plan in 2020. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan: Amount 2020 $ 3,098,000 2021 3,367,000 2022 3,766,000 2023 4,196,000 2024 4,488,000 2025-2029 27,343,000 |
Schedule of Plan's Pension Costs | The Plan’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2019 2018 2017 Service cost – benefits earned during the year $ 3,555 $ 4,017 $ 3,733 Interest cost on projected benefit obligations 4,103 3,703 3,621 Expected return on plan assets (4,753 ) (5,202 ) (4,681 ) Net amortization and deferral 1,559 1,522 1,382 Net periodic pension cost $ 4,464 $ 4,040 $ 4,055 |
Schedule of Assumptions used to Determine Net Pension Cost | The following represent the major assumptions used to determine the net pension cost of the Plan: 2019 2018 2017 Weighted average discount rate 4.30 % 3.75 % 4.25 % Rate of increase in compensation levels (a ) (a ) (a ) Expected long-term rate of return on assets 6.50 % 6.50 % 6.50 % (a) 6.0% graded down to 3.25% over the first seven years of service |
Schedule of Assumed Long-term Rate of Return on Assets | The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 51% fixed income, 19% U.S. equity and 30% non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below: Asset Class % of Total Portfolio One-Year Nominal Return Annual Standard Deviation Core Fixed Income 51 % 3.78 % 3.90 % Large Cap U.S. Equities 14 % 6.55 % 15.30 % Small Cap U.S. Equities 5 % 7.58 % 19.00 % International (Developed) 25 % 7.86 % 17.22 % International (Emerging) 5 % 10.24 % 25.05 % |
Summary of the Fair Value Measurements by Type of Asset | A summary of the fair value measurements by type of asset is as follows: Fair Value Measurements as of December 31, 2019 2018 (In thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash $ 462 $ 462 $ — $ 423 $ 423 $ — Equity securities U.S. Small/Mid Cap Growth 4,491 — 4,491 3,405 — 3,405 Non-U. S. Core 23,975 — 23,975 18,398 — 18,398 U.S. Large Cap Passive 13,523 — 13,523 10,471 — 10,471 Emerging Markets 4,559 — 4,559 3,217 — 3,217 Fixed Income U.S. Core 27,046 — 27,046 10,609 — 10,609 U.S. Passive 15,255 — 15,255 23,827 — 23,827 Opportunistic 5,323 — 5,323 4,230 — 4,230 Total $ 94,634 $ 462 $ 94,172 $ 74,580 $ 423 $ 74,157 |
Supplemental Executive Retirement Plan [Member] | |
Summary of Projected Benefit Obligation | A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows: December 31, (In thousands) 2019 2018 Benefit obligation: Balance, January 1 $ 10,097 $ 10,094 Service cost 97 92 Interest cost 408 348 Benefits paid (262 ) (260 ) Actuarial loss (gain) 1,372 (177 ) Balance, December 31 $ 11,712 $ 10,097 |
Schedule of Assumptions used to Determine Projected Benefit Obligation | The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2019 and 2018, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2017, the Citigroup Above Median Curve was used. 2019 2018 2017 Weighted average discount rate 3.00 % 4.10 % 3.50 % Rate of increase in compensation levels (a) (a) (a) (a) 6.00% graded down to 3.25% over the first seven years of service. |
Schedule of Expected Pension Benefit Payments | The accumulated benefit obligation was $10,485,000 and $8,830,000 as of December 31, 2019 and 2018, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $262,000 in 2019, $260,000 in 2018, and $247,000 in 2017. Expected future benefits payable by the Company over the next ten years are as follows: Amount 2020 $ 291,000 2021 344,000 2022 752,000 2023 829,000 2024 826,000 2025-2029 4,055,000 |
Schedule of Plan's Pension Costs | The SERP’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2019 2018 2017 Service cost – benefits earned during the year $ 97 $ 92 $ 143 Interest cost on projected benefit obligations 408 348 360 Net amortization and deferral 276 581 324 Net periodic pension cost $ 781 $ 1,021 $ 827 |
Schedule of Pretax Amounts in Accumulated Other Comprehensive Loss | The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows: The Plan SERP (In thousands) 2019 2018 2019 2018 Prior service cost $ — $ — $ — $ — Net actuarial loss 29,387 23,580 2,724 1,629 Total $ 29,387 $ 23,580 $ 2,724 $ 1,629 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | Changes in restricted shares outstanding for the year ended December 31, 2019 were as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2018 99,724 $45.48 Granted 36,812 49.30 Vested (13,264 ) 39.76 Balance at December 31, 2019 123,272 $47.24 |
Schedule of SARs Activity | Changes in SARs outstanding for the year ended December 31, 2019 were as follows: SARs Weighted Average Exercise Price Balance at December 31, 2018 237,121 $29.86 Exercised (81,829 ) 24.71 Forfeited — — Balance at December 31, 2019 155,292 32.58 Exercisable at December 31, 2019 155,292 $32.58 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense | Details of other operating expense are as follows: For the Years Ended December 31, (In thousands) 2019 2018 2017 Postage and supplies $ 1,875 $ 2,180 $ 2,087 Promotional expense 3,838 3,344 2,557 Professional fees 2,388 2,170 1,650 Outside service fees 5,529 4,909 4,424 Data processing services 1,283 919 897 Telecommunications 748 778 749 Other 2,404 1,963 1,722 Total other operating expense $ 18,065 $ 16,263 $ 14,086 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: For the Years Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 4,423 $ 8,557 $ 4,250 State 1,392 1,043 1,638 Deferred: Federal 1,097 (3,404 ) 4,256 State 150 (117 ) (259 ) Total income tax expense $ 7,062 $ 6,079 $ 9,885 |
Schedule of Reconciliation of Expected Income Tax Expense (Benefit) | A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each of 2019 and 2018 and 35% for 2017 to income before income tax expense is as follows: For the Years Ended December 31, (In thousands) 2019 2018 2017 Expected income tax expense $ 7,868 $ 7,633 $ 12,214 (Reductions) increases resulting from: Tax-exempt income (1,755 ) (2,009 ) (3,868 ) State taxes, net of federal benefit 1,218 732 896 Share-based compensation adjustment (281 ) (286 ) (376 ) Adjustment of deferred tax asset or liability for TCJA — (74 ) 1,824 Other, net 12 83 (805 ) Total income tax expense $ 7,062 $ 6,079 $ 9,885 |
Schedule of Deferred Assets and Liabilities | The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (In thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,452 $ 2,376 ASC 715 pension funding liability 7,642 6,000 Net operating loss carryforward (1) 27 50 Supplemental executive retirement plan accrual 2,087 1,968 Stock compensation 1,987 1,673 Total deferred tax assets $ 14,195 $ 12,067 Deferred tax liabilities: Premises and equipment (2,821 ) (1,937 ) Pension (974 ) (409 ) Intangible assets (1,379 ) (1,212 ) Unrealized gain on investment in securities available-for-sale (3,348 ) (156 ) Other (196 ) (80 ) Total deferred tax liabilities $ (8,718 ) $ (3,794 ) Net deferred tax assets $ 5,477 $ 8,273 (1) As of December 31, 2019, the Company had approximately $128,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company’s use to approximately $122,000 per year during the carry forward period, which expires in 2024 |
Schedule of the Reconciliation of Unrecognized Tax Benefits | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is presented in the following table: (In thousands) 2019 2018 2017 Balance at January 1 $ 1,403 $ 1,632 $ 1,623 Changes in unrecognized tax benefits as a result of tax positions taken during a prior year 56 (135 ) (15 ) Changes in unrecognized tax benefits as a result of tax position taken during the current year 171 192 263 Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (331 ) (286 ) (239 ) Balance at December 31 $ 1,299 $ 1,403 $ 1,632 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Commitments to Extend Credit, Standby Letters of Credit and Commercial Letters | The following table shows conditional commitments to extend credit, standby letters of credit and commercial letters: December 31, (In thousands) 2019 2018 Conditional commitments to extend credit $ 197,799 $ 144,010 Standby letters of credit 13,288 11,368 Commercial letters of credit 2,755 3,486 |
Schedule of Company's Financial Instruments | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: December 31, 2019 2018 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 203,954 $ 203,954 $ 230,933 $ 230,933 Investment in securities 422,665 422,665 441,534 441,534 Loans, net 762,082 776,653 711,362 711,090 Accrued interest receivable 6,706 6,706 7,069 7,069 Total $ 1,395,407 $ 1,409,978 $ 1,390,898 $ 1,390,626 Balance sheet liabilities: Deposits $ 757,136 $ 757,790 $ 721,926 $ 722,018 Accounts and drafts payable 684,295 684,295 694,360 694,360 Accrued interest payable 103 103 91 91 Total $ 1,441,534 $ 1,442,188 $ 1,416,377 $ 1,416,469 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers | For the Years Ended December 31, (In thousands) 2019 2018 2017 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 81,329 $ 78,461 $ 72,961 Invoice payment fees 26,624 23,720 20,361 Information services payment and processing revenue 107,953 102,181 93,322 Bank service fees 1,386 1,335 1,349 Fee revenue (in-scope of FASB ASC 606 109,339 103,516 94,671 Other income (out-of-scope of FASB ASC 606 730 560 841 Total fee revenue and other income 110,069 104,076 95,512 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606 47,166 44,190 39,790 Total net revenue $ 157,235 $ 148,266 $ 135,302 |
Industry Segment Information (T
Industry Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Summarized information about the Company’s operations in each industry segment for the years ended December 31, 2019, 2018 and 2017, is as follows: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total 2019 Fee income from customers $ 108,882 $ 1,660 $ (473 ) $ 110,069 Interest income* 25,616 30,646 (1,568 ) 54,694 Interest expense — 5,193 — 5,193 Intersegment income (expense) — 2,107 (2,107 ) — Depreciation and amortization 4,659 131 — 4,790 Tax-equivalized pre-tax income* 28,542 13,048 (2,040 ) 39,550 Goodwill 12,433 1,829 — 14,262 Other intangible assets, net 1,142 3,139 — 4,281 Total Assets 844,483 915,341 4,419 1,764,243 Funding Sources 676,068 592,905 — 1,268,973 2018 Fee income from customers $ 102,839 $ 1,307 $ (70 ) $ 104,076 Interest income* 25,074 27,770 (2,496 ) 50,348 Interest expense — 3,736 — 3,736 Intersegment income (expense) — 1,880 (1,880 ) — Depreciation and amortization 4,254 142 — 4,396 Tax-equivalized pre-tax income* 27,763 13,571 (2,566 ) 38,768 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,554 — — 1,554 Total Assets 826,201 886,291 (17,316 ) 1,695,176 Funding Sources 642,733 572,653 — 1,215,386 2017 Fee income from customers $ 93,484 $ 1,547 $ 481 $ 95,512 Interest income* 23,813 27,376 (3,522 ) 47,667 Interest expense — 2,187 — 2,187 Intersegment income (expense) — 1,362 (1,362 ) — Depreciation and amortization 3,902 149 — 4,051 Tax-equivalized pre-tax income* 28,168 15,460 (3,039 ) 40,589 Goodwill 12,433 136 — 12,569 Other intangible assets, net 1,996 — — 1,996 Total Assets 854,214 830,672 (27,677 ) 1,603,209 Funding Sources 604,493 598,986 — 1,203,479 * Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and undiscounted cash flows as of December 31, 2019 was as follows: (In thousands) December 31, 2019 Lease payments due Less than 1 year $ 1,748 1-2 years 1,613 2-3 years 1,538 3-4 years 614 4-5 years 392 Over 5 years 1,972 Total undiscounted cash flows 7,877 Discount on cash flows 1,195 Total lease liability $ 6,682 |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Following are the condensed balance sheets of the Company (parent company only) and the related condensed statements of income and cash flows. Condensed Balance Sheets December 31, (In thousands) 2019 2018 Assets Cash and due from banks $ 17,032 $ 35,735 Short-term investments 3,223 35,201 Securities available-for-sale, at fair value 422,665 441,534 Loans, net 45,187 20,188 Payments in excess of funding 206,158 160,777 Investments in subsidiaries 145,400 130,231 Premises and equipment, net 19,940 21,358 Other assets 137,226 117,374 Total assets $ 996,831 $ 962,398 Liabilities and Shareholders’ Equity Liabilities: Accounts and drafts payable $ 683,485 $ 693,026 Short-term borrowings 18,000 — Other liabilities 50,987 39,362 Total liabilities 752,472 732,388 Total shareholders’ equity 244,359 230,010 Total liabilities and shareholders’ equity $ 996,831 $ 962,398 |
Schedule of Condensed Statements of Income | Condensed Statements of Income For the Years Ended December 31, (In thousands) 2019 2018 2017 Income from subsidiaries – management fees $ 2,599 $ 2,668 $ 2,172 Information services revenue 106,198 100,628 93,133 Net interest income after provision 15,713 14,159 13,217 Gain (loss) on sales of investment securities 19 (42 ) — Other income 518 456 483 Total income 125,047 117,869 109,005 Expenses: Salaries and employee benefits 81,432 77,946 70,409 Other expenses 26,136 23,442 20,333 Total expenses 107,568 101,388 90,742 Income before income tax and equity in undistributed income of subsidiaries 17,479 16,481 18,263 Income tax expense 2,860 1,788 4,394 Income before undistributed income of subsidiaries 14,619 14,693 13,869 Equity in undistributed income of subsidiaries 15,785 15,575 11,145 Net income $ 30,404 $ 30,268 $ 25,014 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years Ended December 31, (In thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 30,404 $ 30,268 $ 25,014 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiaries (15,785 ) (15,575 ) (11,145 ) Net change in other assets (6,289 ) (1,012 ) (7,257 ) Net change in other liabilities 9,474 3,829 10,118 Stock-based compensation expense 3,144 2,583 1,743 Other, net 6,104 10,242 9,219 Net cash provided by operating activities 27,052 30,335 27,692 Cash flows from investing activities: Net decrease (increase) in securities 26,150 14,615 (80,621 ) Net (increase) decrease in loans (24,999 ) (7,949 ) 34,944 Net increase in payments in excess of funding (45,381 ) (21,674 ) (33,756 ) Purchases of premises and equipment, net (2,637 ) (4,211 ) (4,020 ) Asset acquisition of Gateway Giving, LLC (2,833 ) — — Net cash used in investing activities (49,700 ) (19,219 ) (83,453 ) Cash flows from financing activities: Net (decrease) increase in accounts and drafts payable (21,875 ) (22,316 ) 20,397 Short-term borrowings 18,000 — — Cash dividends paid (15,234 ) (13,177 ) (10,675 ) Purchase of common shares for treasury (7,799 ) (8,838 ) (2,270 ) Other financing activities, net (1,125 ) (635 ) (267 ) Net cash (used in) provided by financing activities (28,033 ) (44,966 ) 7,185 Net decrease in cash and cash equivalents (50,681 ) (33,850 ) (48,576 ) Cash and cash equivalents at beginning of year 70,936 104,786 153,362 Cash and cash equivalents at end of year $ 20,255 $ 70,936 $ 104,786 |
SUPPLEMENTARY FINANCIAL INFOR_2
SUPPLEMENTARY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Income Statement Elements [Abstract] | |
Schedule of Quarterly Financial Information | (In thousands except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter YTD 2019 Fee revenue and other income $ 27,013 $ 27,372 $ 28,262 $ 27,422 $ 110,069 Interest income 12,897 13,327 13,666 12,719 52,609 Interest expense 1,290 1,305 1,392 1,206 5,193 Net interest income 11,607 12,022 12,274 11,513 47,416 Provision for loan losses 250 — — — 250 Operating expense 28,462 29,971 30,563 30,773 119,769 Income tax expense 1,745 1,739 1,787 1,791 7,062 Net income $ 8,163 $ 7,684 $ 8,186 $ 6,371 $ 30,404 Net income per share: Basic earnings per share $ .56 $ .53 $ .57 $ .44 $ 2.11 Diluted earnings per share .55 .52 .56 .43 2.07 2018 Fee revenue and other income $ 25,374 $ 25,640 $ 26,435 $ 26,627 $ 104,076 Interest income 11,288 11,513 12,215 12,910 47,926 Interest expense 679 794 1,029 1,234 3,736 Net interest income 10,609 10,719 11,186 11,676 44,190 Provision for loan losses — — — — — Operating expense 26,182 27,463 28,530 29,744 111,919 Income tax expense 1,709 1,387 1,481 1,502 6,079 Net income $ 8,092 $ 7,509 $ 7,610 $ 7,057 $ 30,268 Net income per share: Basic earnings per share $ .55 $ .51 $ .52 $ .48 $ 2.06 Diluted earnings per share .54 .50 .51 .47 2.03 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Percentage holding required to account investments under non-marketable equity investments | 20.00% | |
Right-of-use assets | $ 5,848 | $ 7,383 |
Lease liabilities | $ 6,682 | $ 7,808 |
Building [Member] | Maximum [Member] | ||
Estimated useful lives | 40 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Estimated useful lives | 10 years | |
Software, Equipment, Furniture and Fixtures [Member] | Maximum [Member] | ||
Estimated useful lives | 7 years | |
Software, Equipment, Furniture and Fixtures [Member] | Minimum [Member] | ||
Estimated useful lives | 3 years |
Capital Requirements and Regu_3
Capital Requirements and Regulatory Restrictions (Narrative) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Unappropriated retained earnings | $ 52,786 |
Capital Requirements and Regu_4
Capital Requirements and Regulatory Restrictions (Schedule of Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cass Information Systems Inc. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 249,954 | $ 244,660 |
Common Equity Tier I Capital (to risk-weighted assets), actual amount | 239,398 | 234,435 |
Tier I capital (to risk-weighted assets), actual amount | 239,398 | 234,435 |
Tier I capital (to average assets), actual amount | $ 239,398 | $ 234,435 |
Total capital (to risk-weighted assets), actual ratio | 19.70% | 21.38% |
Common Equity Tier I Capital (to risk-weighted assets), actual ratio | 18.86% | 20.49% |
Tier I capital (to risk-weighted assets), actual ratio | 18.86% | 20.49% |
Tier I capital (to average assets), actual ratio | 13.24% | 13.89% |
Total capital (to risk-weighted assets), capital requirements amount | $ 101,530 | $ 91,550 |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements amount | 57,110 | 51,497 |
Tier I capital (to risk-weighted assets), capital requirements amount | 76,147 | 68,662 |
Tier I capital (to average assets), capital requirements amount | $ 72,329 | $ 67,500 |
Total capital (to risk-weighted assets), capital requirements ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements ratio | 4.50% | 4.50% |
Tier I capital (to risk-weighted assets), capital requirements ratio | 6.00% | 6.00% |
Tier I capital (to average assets), capital requirements ratio | 4.00% | 4.00% |
Cass Commercial Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 154,011 | $ 137,894 |
Common Equity Tier I Capital (to risk-weighted assets), actual amount | 145,673 | 130,037 |
Tier I capital (to risk-weighted assets), actual amount | 145,673 | 130,037 |
Tier I capital (to average assets), actual amount | $ 145,673 | $ 130,037 |
Total capital (to risk-weighted assets), actual ratio | 19.32% | 18.31% |
Common Equity Tier I Capital (to risk-weighted assets), actual ratio | 18.27% | 17.26% |
Tier I capital (to risk-weighted assets), actual ratio | 18.27% | 17.26% |
Tier I capital (to average assets), actual ratio | 16.64% | 15.35% |
Total capital (to risk-weighted assets), capital requirements amount | $ 63,778 | $ 60,257 |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements amount | 35,875 | 33,895 |
Tier I capital (to risk-weighted assets), capital requirements amount | 47,833 | 45,193 |
Tier I capital (to average assets), capital requirements amount | $ 35,012 | $ 33,884 |
Total capital (to risk-weighted assets), capital requirements ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements ratio | 4.50% | 4.50% |
Tier I capital (to risk-weighted assets), capital requirements ratio | 6.00% | 6.00% |
Tier I capital (to average assets), capital requirements ratio | 4.00% | 4.00% |
Total capital (to risk-weighted assets), requirement to be well capitalized amount | $ 79,722 | $ 75,321 |
Common Equity Tier I Capital (to risk-weighted assets), requirement to be well capitalized amount | 51,819 | 48,959 |
Tier I capital (to risk-weighted assets), requirement to be well capitalized amount | 63,778 | 60,257 |
Tier I capital (to average assets), requirement to be well capitalized amount | $ 43,765 | $ 42,354 |
Total capital (to risk-weighted assets), requirement to be well capitalized ratio | 10.00% | 10.00% |
Common Equity Tier I Capital (to risk-weighted assets), requirement to be well capitalized ratio | 6.50% | 6.50% |
Tier I capital (to risk-weighted assets), requirement to be well capitalized ratio | 8.00% | 8.00% |
Tier I capital (to average assets), requirement to be well capitalized ratio | 5.00% | 5.00% |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of securities that had an unrealized loss | 9 | 136 | |
Number of securities that had an unrealized loss, greater than 12 months | 7 | 61 | |
Percentage of total securities | 3.00% | 43.00% | |
Premium related to purchase of state and political subdivisions | $ 6,408 | $ 6,857 | |
Securities pledged as collateral | 0 | ||
Proceeds from sales of securities available-for-sale | 4,648 | 58,520 | |
Gross realized gains | 19 | 180 | 0 |
Gross realized losses | $ 0 | $ 222 | $ 0 |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Line Items] | ||
Fair Value | $ 422,665 | $ 441,534 |
Gross Unrealized Gains | 14,234 | 3,877 |
Gross Unrealized Losses | 169 | 3,223 |
Amortized Cost | 408,600 | 440,880 |
State and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 324,447 | 334,717 |
Gross Unrealized Gains | 13,727 | 3,791 |
Gross Unrealized Losses | 1,806 | |
Amortized Cost | 310,720 | 332,732 |
U.S. government agencies [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 97,718 | 104,822 |
Gross Unrealized Gains | 507 | 86 |
Gross Unrealized Losses | 169 | 1,417 |
Amortized Cost | 97,380 | 106,153 |
Certificates of Deposit [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 500 | 1,995 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Amortized Cost | $ 500 | $ 1,995 |
Investment in Securities (Sch_2
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Line Items] | ||
Estimated fair value less than 12 months | $ 3,801 | $ 121,657 |
Estimated fair value 12 months or more | 17,593 | 98,551 |
Estimated fair value total | 21,394 | 220,208 |
Unrealized losses, less than 12 months | 12 | 686 |
Unrealized losses, 12 months or more | 157 | 2,537 |
Unrealized losses, total | 169 | 3,223 |
State and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Estimated fair value less than 12 months | 91,248 | |
Estimated fair value 12 months or more | 60,546 | |
Estimated fair value total | 151,794 | |
Unrealized losses, less than 12 months | 556 | |
Unrealized losses, 12 months or more | 1,250 | |
Unrealized losses, total | 1,806 | |
U.S. government agencies [Member] | ||
Marketable Securities [Line Items] | ||
Estimated fair value less than 12 months | 3,801 | 30,409 |
Estimated fair value 12 months or more | 17,593 | 38,005 |
Estimated fair value total | 21,394 | 68,414 |
Unrealized losses, less than 12 months | 12 | 130 |
Unrealized losses, 12 months or more | 157 | 1,287 |
Unrealized losses, total | 169 | 1,417 |
Certificates of Deposit [Member] | ||
Marketable Securities [Line Items] | ||
Estimated fair value less than 12 months | ||
Estimated fair value 12 months or more | ||
Estimated fair value total | ||
Unrealized losses, less than 12 months | ||
Unrealized losses, 12 months or more | ||
Unrealized losses, total |
Investment in Securities (Sch_3
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 51,219 | |
Amortized Cost, Due after 1 year through 5 years | 97,799 | |
Amortized Cost, Due after 5 years through 10 years | 222,143 | |
Amortized Cost, Due after 10 years | 37,439 | |
Amortized Cost, No stated maturity | ||
Amortized Cost, Total | 408,600 | |
Fair Value, Due in 1 year or less | 51,485 | |
Fair Value, Due after 1 year through 5 years | 100,179 | |
Fair Value, Due after 5 years through 10 years | 233,289 | |
Fair Value, Due after 10 years | 37,712 | |
Fair Value, No stated maturity | ||
Available-for-sale Securities, Total | $ 422,665 | $ 441,534 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Impaired loans, ALLL | $ 0 | $ 0 | |
Nonaccrual loans | 0 | 0 | |
Delinquent loans still accruing interest | 0 | 0 | |
Loans classified as troubled debt restructuring | 0 | 0 | |
Average balance of impaired loans | 0 | 0 | $ 166,000 |
Income recognized on nonaccrual loans under original terms of contract | 0 | 0 | 24,000 |
Income recognized on nonaccrual loans | 0 | 0 | $ 17,000 |
Foreclosed loans value | 0 | 0 | |
Fair value of impaired loan | 0 | 0 | |
Loans to affiliates | $ 167,429 | $ 278,153 |
Loans (Summary of Loan Categori
Loans (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 772,638 | $ 721,587 |
Commercial and Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 323,857 | 277,091 |
Real Estate Commercial Mortgage [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 101,654 | 95,605 |
Real Estate Commercial Construction [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 25,299 | 11,858 |
Real Estate Faith based Mortgage [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 305,826 | 316,147 |
Real Estate Faith-based Construction [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 15,945 | 20,576 |
Other Loan [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 57 | $ 310 |
Loans (Schedule of the Aging of
Loans (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 772,638 | 721,587 |
Commercial and Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 323,857 | 277,091 |
Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 101,654 | 95,605 |
Real Estate Commercial Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 25,299 | 11,858 |
Real Estate Faith based Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 305,826 | 316,147 |
Real Estate Faith-based Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 15,945 | 20,576 |
Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 57 | 310 |
Current [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 772,638 | 721,587 |
Current [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 323,857 | 277,091 |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 101,654 | 95,605 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 25,299 | 11,858 |
Current [Member] | Real Estate Faith based Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 305,826 | 316,147 |
Current [Member] | Real Estate Faith-based Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 15,945 | 20,576 |
Current [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 57 | 310 |
30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Faith based Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Faith-based Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Faith based Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Faith-based Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Faith based Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Faith-based Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans |
Loans (Schedule of the Credit E
Loans (Schedule of the Credit Exposure of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | $ 772,638 | $ 721,587 | |
Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 767,714 | 718,439 |
Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | 4,924 | 3,148 |
Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Commercial and Industrial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 323,857 | 277,091 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 321,554 | 275,308 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | 2,303 | 1,783 |
Commercial and Industrial [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Real Estate Commercial Mortgage [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 101,654 | 95,605 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 100,346 | 95,447 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | 1,308 | 158 |
Real Estate Commercial Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Real Estate Commercial Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 25,299 | 11,858 | |
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 25,299 | 11,858 |
Real Estate Commercial Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Real Estate Church Related Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Real Estate Faith based Mortgage [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 305,826 | 316,147 | |
Real Estate Faith based Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 304,513 | 314,940 |
Real Estate Faith based Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | 1,313 | 1,207 |
Real Estate Faith based Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Real Estate Faith-based Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 15,945 | 20,576 | |
Real Estate Faith-based Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 15,945 | 20,576 |
Real Estate Faith-based Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Real Estate Faith-based Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Other [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | 57 | 310 | |
Other [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [1] | 57 | 310 |
Other [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total Loans | [2] | ||
Other [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total 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 obligation. | ||
[2] | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Loans (Summary of Allowance for
Loans (Summary of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | $ 10,225 | $ 10,205 |
Charge-Offs | ||
Recoveries | 81 | 20 |
Provision | 250 | |
Allowance for loan losses, Ending Balance | 10,556 | 10,225 |
Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 4,179 | 3,652 |
Charge-Offs | ||
Recoveries | 81 | 20 |
Provision | 593 | 507 |
Allowance for loan losses, Ending Balance | 4,853 | 4,179 |
Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 1,417 | 1,394 |
Charge-Offs | ||
Recoveries | ||
Provision | 105 | 23 |
Allowance for loan losses, Ending Balance | 1,522 | 1,417 |
Real Estate Commercial Construction [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 89 | 70 |
Charge-Offs | ||
Recoveries | ||
Provision | 101 | 19 |
Allowance for loan losses, Ending Balance | 190 | 89 |
Real Estate Faith based Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 3,961 | 3,962 |
Charge-Offs | ||
Recoveries | ||
Provision | (135) | (1) |
Allowance for loan losses, Ending Balance | 3,826 | 3,961 |
Real Estate Faith-based Construction [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 155 | 196 |
Charge-Offs | ||
Recoveries | ||
Provision | (35) | (41) |
Allowance for loan losses, Ending Balance | 120 | 155 |
Industrial Revenue Bonds [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 52 | |
Charge-Offs | ||
Recoveries | ||
Provision | (52) | |
Allowance for loan losses, Ending Balance | ||
Other [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Beginning Balance | 424 | 879 |
Charge-Offs | ||
Recoveries | ||
Provision | (379) | (455) |
Allowance for loan losses, Ending Balance | $ 45 | $ 424 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4,227,000 | $ 3,954,000 | $ 3,624,000 |
Premises and Equipment (Summary
Premises and Equipment (Summary of Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 52,336 | $ 56,897 |
Less accumulated depreciation | 31,809 | 34,866 |
Total | 20,527 | 22,031 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 873 | 873 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 14,763 | 14,684 |
Leaseholds and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,843 | 2,537 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 12,104 | 16,332 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 3,973 | 5,043 |
Internally Developed Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 18,780 | $ 17,428 |
Acquired Intangible Assets (Nar
Acquired Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 563 | $ 442 | $ 427 | |
2020 | 859 | |||
2021 | 859 | |||
2022 | 540 | |||
2023 | 540 | |||
2024 | 498 | |||
Acquisition cash payment | $ 2,833 | |||
Gateway Giving, LLC [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | $ 4,983 | |||
Acquisition cash payment | 3,000 | |||
Amount of earnout | 4,000 | |||
Estimated earnout amount | 1,983 | |||
Customer Lists [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | 490 | |||
Customer Lists [Member] | Minimum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 7 years | |||
Customer Lists [Member] | Maximum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | |||
Patents [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 18 years | |||
Noncompete Agreements [Member] | Minimum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 2 years | |||
Noncompete Agreements [Member] | Maximum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 5 years | |||
Software [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Recorded intangible assets | 2,610 | |||
Software [Member] | Minimum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 3 years | |||
Software [Member] | Maximum [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 7 years | |||
Trade Names [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 20 years | |||
Recorded intangible assets | $ 190 | |||
Other Intangible Assets [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 15 years | |||
Goodwill [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 15 years | |||
Recorded intangible assets | $ 1,693 |
Acquired Intangible Assets (Sch
Acquired Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets eligible for amortization: | |||
Gross Carrying Amount | $ 23,205 | $ 18,222 | |
Accumulated Amortization | (4,662) | (4,099) | |
Unamortized intangible assets: | |||
Goodwill, Gross Carrying Amount | [1] | 14,489 | 12,796 |
Goodwill, Accumulated Amortization | [1] | (227) | (227) |
Customer Lists [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 4,778 | 4,288 | |
Accumulated Amortization | (3,463) | (3,071) | |
Patents [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 72 | 72 | |
Accumulated Amortization | (20) | (16) | |
Noncompete Agreements [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 332 | 332 | |
Accumulated Amortization | (332) | (326) | |
Software [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 2,844 | 234 | |
Accumulated Amortization | (358) | (234) | |
Trade Names [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 190 | ||
Accumulated Amortization | (3) | ||
Other Intangible Assets [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | $ (259) | $ (225) | |
[1] | Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Interest-Bearing Deposits (Sche
Interest-Bearing Deposits (Schedule of Interest-bearing Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest-Bearing Deposits [Abstract] | ||
Interest-bearing demand deposits | $ 322,027 | $ 322,709 |
Savings deposits | 13,051 | 13,502 |
Time deposits: | ||
Less than $100 | 4,927 | 4,862 |
$100 to less than $250 | 48,353 | 51,658 |
$250 or more | 17,687 | 15,937 |
Total | $ 406,045 | $ 408,668 |
Weighted average interest rate | 1.32% | 1.00% |
Interest-Bearing Deposits (Sc_2
Interest-Bearing Deposits (Schedule of Interest on Deposits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest-Bearing Deposits [Abstract] | |||
Interest-bearing demand deposits | $ 3,686 | $ 2,832 | $ 1,611 |
Savings deposits | 103 | 109 | 79 |
Time deposits: | |||
Less than $100 | 905 | 433 | 234 |
$100 to less than $250 | 216 | 152 | 114 |
$250 or more | 281 | 210 | 149 |
Total | $ 5,191 | $ 3,736 | $ 2,187 |
Interest-Bearing Deposits (Sc_3
Interest-Bearing Deposits (Schedule of Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Due within: | ||
One year | $ 47,881 | $ 51,154 |
Two years | 15,813 | 18,262 |
Three years | 5,584 | 140 |
Four years | 1,689 | 983 |
Five years | 1,918 | |
Total | $ 70,967 | $ 72,457 |
Percent of Total One year | 67.50% | 70.60% |
Percent of Total Two years | 22.30% | 25.20% |
Percent of Total Three years | 7.80% | 0.20% |
Percent of Total Four years | 2.40% | 1.40% |
Percent of Total Five years | 2.60% | |
Total | 100.00% | 100.00% |
Unused Available Lines of Cre_2
Unused Available Lines of Credit (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Amount outstanding under lines of credit | $ 18,000,000 | |
Unsecured Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 83,000,000 | |
Unsecured Debt [Member] | US Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 20,000,000 | |
Unsecured Debt [Member] | UMB Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 20,000,000 | |
Unsecured Debt [Member] | Wells Fargo Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 15,000,000 | |
Unsecured Debt [Member] | PNC Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 12,000,000 | |
Unsecured Debt [Member] | Frost National Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 10,000,000 | |
Unsecured Debt [Member] | JPM Chase Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 6,000,000 | |
Secured Debt [Member] | UMB Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 50,000,000 | |
Secured Debt [Member] | Federal Home Loan Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | 192,045,000 | |
Secured Debt [Member] | First Tennessee Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit amount | $ 50,000,000 |
Common Stock and Earnings per_3
Common Stock and Earnings per Share (Schedule of Common Stock Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Earnings Per Share [Abstract] | |
Shares outstanding at January 1 | 14,611,286 |
Issuance of common stock: | |
Employee restricted stock grants | 18,121 |
Employee SARs exercised | 27,274 |
Directors' compensation | 12,278 |
Shares repurchased | (154,593) |
Shares outstanding at December 31 | 14,514,366 |
Common Stock and Earnings per_4
Common Stock and Earnings per Share (Schedule of Calculations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic | |||||||||||
Net income | $ 6,371 | $ 8,186 | $ 7,684 | $ 8,163 | $ 7,057 | $ 7,610 | $ 7,509 | $ 8,092 | $ 30,404 | $ 30,268 | $ 25,014 |
Weighted average common shares outstanding (in shares) | 14,434,445 | 14,675,136 | 14,700,558 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.44 | $ 0.57 | $ 0.53 | $ 0.56 | $ 0.48 | $ 0.52 | $ 0.51 | $ 0.55 | $ 2.11 | $ 2.06 | $ 1.70 |
Diluted | |||||||||||
Net income | $ 6,371 | $ 8,186 | $ 7,684 | $ 8,163 | $ 7,057 | $ 7,610 | $ 7,509 | $ 8,092 | $ 30,404 | $ 30,268 | $ 25,014 |
Weighted average common shares outstanding (in shares) | 14,434,445 | 14,675,136 | 14,700,558 | ||||||||
Effect of dilutive restricted stock, performance based restricted stock ("PBRS"), and SARs | 257,480 | 239,066 | 215,332 | ||||||||
Weighted average common shares outstanding assuming dilution (in shares) | 14,691,925 | 14,914,202 | 14,915,890 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.56 | $ 0.52 | $ 0.55 | $ 0.47 | $ 0.51 | $ 0.50 | $ 0.54 | $ 2.07 | $ 2.03 | $ 1.68 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | $ 2,565 | $ 2,341 | ||
Defined contribution plan, contribution amount | $ 1,378 | 1,109 | $ 925 | |
Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset | 51.00% | |||
U.S. Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset | 19.00% | |||
Non-U.S. Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset | 30.00% | |||
Defined Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 103,736 | 83,724 | ||
Contributions for plan | 6,900 | |||
Net gains (losses) as a component of net periodic benefit cost | 0 | |||
Defined Benefit Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net gains (losses) as a component of net periodic benefit cost | $ 1,890 | |||
Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 10,485 | 8,830 | ||
Benefits paid | 262 | 260 | 247 | |
Net gains (losses) as a component of net periodic benefit cost | 0 | |||
Supplemental Executive Retirement Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net gains (losses) as a component of net periodic benefit cost | $ 112 | |||
Noncontributory Profit Sharing Program [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions for plan | $ 6,841 | $ 6,810 | $ 5,799 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Projected benefit obligation: | ||
Balance, January 1 | $ 96,401 | $ 98,790 |
Service cost | 3,554 | 4,017 |
Interest cost | 4,103 | 3,703 |
Actuarial loss (gain) | 18,334 | (7,768) |
Benefits paid | (2,565) | (2,341) |
Balance, December 31 | 119,827 | 96,401 |
Plan assets: | ||
Fair value, January 1 | 74,580 | 81,427 |
Actual return | 15,719 | (4,506) |
Employer contribution | 6,900 | |
Benefits paid | (2,565) | (2,341) |
Fair value, December 31 | 94,634 | 74,580 |
Funded status: | ||
Accrued pension liability | $ (25,192) | $ (21,821) |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Assumptions used to Determine the Projected Benefit Obligation) (Details) - Defined Benefit Plan [Member] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average discount rate | 3.30% | 4.30% | 3.75% | |
Rate of increase in compensation levels | [1] | |||
[1] | 6.0% graded down to 3.25% over the first seven years of service. |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Expected Pension Benefit Payments) (Details) | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 3,098,000 |
2021 | 3,367,000 |
2022 | 3,766,000 |
2023 | 4,196,000 |
2024 | 4,488,000 |
2025-2029 | $ 27,343,000 |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Plan's Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 3,554 | $ 4,017 | |
Interest cost on projected benefit obligations | 4,103 | 3,703 | |
Defined Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 3,555 | 4,017 | $ 3,733 |
Interest cost on projected benefit obligations | 4,103 | 3,703 | 3,621 |
Expected return on plan assets | (4,753) | (5,202) | (4,681) |
Net amortization and deferral | 1,559 | 1,522 | 1,382 |
Net periodic pension cost | $ 4,464 | $ 4,040 | $ 4,055 |
Employee Benefit Plans (Sched_5
Employee Benefit Plans (Schedule of Assumptions used to Determine Net Pension Cost) (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Retirement Benefits [Abstract] | ||||
Weighted average discount rate | 4.30% | 3.75% | 4.25% | |
Rate of increase in compensation levels | [1] | |||
Expected long-term rate of return on assets | 6.50% | 6.50% | 6.50% | |
[1] | 6.0% graded down to 3.25% over the first seven years of service. |
Employee Benefit Plans (Sched_6
Employee Benefit Plans (Schedule of Long-term Rate of Return on Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Fixed Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 51.00% |
One-Year Nominal Return | 3.78% |
Annual Standard Deviation | 3.90% |
Large Cap U.S. Equities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 14.00% |
One-Year Nominal Return | 6.55% |
Annual Standard Deviation | 15.30% |
Small Cap U.S. Equities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 5.00% |
One-Year Nominal Return | 7.58% |
Annual Standard Deviation | 19.00% |
International (Developed) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 25.00% |
One-Year Nominal Return | 7.86% |
Annual Standard Deviation | 17.22% |
International (Emerging) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 5.00% |
One-Year Nominal Return | 10.24% |
Annual Standard Deviation | 25.05% |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of the Fair Value Measurements by Type of Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 94,634 | $ 74,580 | $ 81,427 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 462 | 423 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 94,172 | 74,157 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 462 | 423 | |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 462 | 423 | |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Small/Mid Cap Growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,491 | 3,405 | |
U.S. Small/Mid Cap Growth [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Small/Mid Cap Growth [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,491 | 3,405 | |
Non-U.S. Core [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 23,975 | 18,398 | |
Non-U.S. Core [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
Non-U.S. Core [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 23,975 | 18,398 | |
U.S. Large Cap Passive [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 13,523 | 10,471 | |
U.S. Large Cap Passive [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Large Cap Passive [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 13,523 | 10,471 | |
Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,559 | 3,217 | |
Emerging Markets [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
Emerging Markets [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,559 | 3,217 | |
U.S. Core Opportunistic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 27,046 | 10,609 | |
U.S. Core Opportunistic [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Core Opportunistic [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 27,046 | 10,609 | |
U.S. Passive [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 15,255 | 23,827 | |
U.S. Passive [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Passive [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 15,255 | 23,827 | |
Opportunistic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 5,323 | 4,230 | |
Opportunistic [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
Opportunistic [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 5,323 | $ 4,230 |
Employee Benefit Plans (Summa_2
Employee Benefit Plans (Summary of the Activity in the SERP's Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefit obligation: | |||
Balance, January 1 | $ 96,401 | $ 98,790 | |
Service cost | 3,554 | 4,017 | |
Interest cost | 4,103 | 3,703 | |
Benefits paid | (2,565) | (2,341) | |
Actuarial loss (gain) | 18,334 | (7,768) | |
Balance, December 31 | 119,827 | 96,401 | $ 98,790 |
Supplemental Executive Retirement Plan [Member] | |||
Benefit obligation: | |||
Balance, January 1 | 10,097 | 10,094 | |
Service cost | 97 | 92 | 143 |
Interest cost | 408 | 348 | 360 |
Benefits paid | (262) | (260) | (247) |
Actuarial loss (gain) | 1,372 | (177) | |
Balance, December 31 | $ 11,712 | $ 10,097 | $ 10,094 |
Employee Benefit Plans (Sched_7
Employee Benefit Plans (Schedule of Assumptions used to Determine Projected Benefit Obligation of the SERP) (Details) - Supplemental Executive Retirement Plan [Member] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average discount rate | 3.00% | 4.10% | 3.50% | |
Rate of increase in compensation levels | [1] | |||
[1] | 6.0% graded down to 3.25% over the first seven years of service. |
Employee Benefit Plans (Sched_8
Employee Benefit Plans (Schedule of Expected Future Benefits Payable) (Details) | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 3,098,000 |
2021 | 3,367,000 |
2022 | 3,766,000 |
2023 | 4,196,000 |
2024 | 4,488,000 |
2025-2029 | 27,343,000 |
Supplemental Executive Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 291,000 |
2021 | 344,000 |
2022 | 752,000 |
2023 | 829,000 |
2024 | 826,000 |
2025-2029 | $ 4,055,000 |
Employee Benefit Plans (Sched_9
Employee Benefit Plans (Schedule of SERP's Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 3,554 | $ 4,017 | |
Interest cost on projected benefit obligations | 4,103 | 3,703 | |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 97 | 92 | $ 143 |
Interest cost on projected benefit obligations | 408 | 348 | 360 |
Net amortization and deferral | 276 | 581 | 324 |
Net periodic pension cost | $ 781 | $ 1,021 | $ 827 |
Employee Benefit Plans (Sche_10
Employee Benefit Plans (Schedule of the Pretax amounts in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | ||
Net actuarial loss | 29,387 | 23,580 |
Total | 29,387 | 23,580 |
Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | ||
Net actuarial loss | 2,724 | 1,629 |
Total | $ 2,724 | $ 1,629 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance | 1,500,000 | ||
Stock option expense | $ 3,144 | $ 3,006 | $ 2,340 |
Share-Based Compensation | $ 3,144 | $ 3,006 | $ 2,339 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 36,812 | 35,000 | 31,277 |
Shares granted, weighted average grant date market value | $ 49.79 | $ 49.55 | |
Amortization of restricted stock bonus | $ 1,551 | $ 1,571 | $ 1,743 |
Total unrecognized compensation expense | $ 1,438 | ||
Total unrecognized compensation expense, weighted average period | 1 year 25 days | ||
Total fair value of shares vested | $ 527 | $ 1,112 | $ 1,389 |
Fair value of granted shares per share | $ 49.30 | ||
Performance-based restricted shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 36,801 | 35,602 | 30,388 |
Vesting period | 3 years | 3 years | 3 years |
Fair value of granted shares per share | $ 49.06 | $ 49.04 | $ 49.33 |
Expense incurred to grant shares | $ 593 | ||
Percentage of financial goal | 108.00% | ||
Performance-based restricted shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target opportunity for awards to vest | 0.00% | 0.00% | 0.00% |
Performance-based restricted shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target opportunity for awards to vest | 150.00% | 150.00% | 150.00% |
Performance-based restricted shares [Member] | Transaction One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense incurred to grant shares | $ 583 | ||
Percentage of financial goal | 118.00% | ||
Performance-based restricted shares [Member] | Transaction Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense incurred to grant shares | $ 674 | ||
Percentage of financial goal | 117.00% | ||
SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expense | $ 0 | ||
Total intrinsic value of options exercised | $ 2,022 | $ 1,110 | |
Average remaining contractual term | 2 years 11 months 1 day | 3 years 6 months | |
Outstanding, Aggregate Intrinsic Value | $ 3,908 | $ 5,468 | |
Share-Based Compensation | $ 0 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule of Restricted Stock Outstanding) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Balance at December 31, 2018 | 99,724 | ||
Granted | 36,812 | 35,000 | 31,277 |
Vested | (13,264) | ||
Balance at December 31, 2019 | 123,272 | 99,724 | |
Weighted Average Grant Date Fair Value | |||
Balance at December 31, 2018 | $ 45.48 | ||
Granted | 49.30 | ||
Vested | 39.76 | ||
Balance at December 31, 2019 | $ 47.24 | $ 45.48 |
Stock-based Compensation (Sch_2
Stock-based Compensation (Schedule of SARs Oustanding) (Details) - SARs [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
SARs | |
Balance at December 31, 2018 | shares | 237,121 |
Exercised | shares | (81,829) |
Forfeited | shares | |
Balance at December 31, 2019 | shares | 155,292 |
Exercisable at December 31, 2019 | shares | 155,292 |
Weighted Average Exercise Price | |
Balance at December 31, 2018 | $ / shares | $ 29.86 |
Exercised | $ / shares | 24.71 |
Forfeited | $ / shares | |
Balance at December 31, 2019 | $ / shares | 32.58 |
Exercisable at December 31, 2019 | $ / shares | $ 32.58 |
Other Operating Expense (Schedu
Other Operating Expense (Schedule of Other Operating Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Postage and supplies | $ 1,875 | $ 2,180 | $ 2,087 |
Promotional expense | 3,838 | 3,344 | 2,557 |
Professional fees | 2,388 | 2,170 | 1,650 |
Outside service fees | 5,529 | 4,909 | 4,424 |
Data processing services | 1,283 | 919 | 897 |
Telecommunications | 748 | 778 | 749 |
Other | 2,404 | 1,963 | 1,722 |
Total other operating expense | $ 18,065 | $ 16,263 | $ 14,086 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Income Taxes [Line Items] | |||||||||||||||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% | ||||||||||||
Net operating loss carryforward | [1] | $ 27 | $ 50 | $ 27 | $ 50 | ||||||||||
Amounts of tax benefits that would affect effective tax rate if recognized | 1,184 | 1,272 | 1,184 | 1,272 | $ 1,464 | ||||||||||
Income tax accrued interest | 151 | 136 | 151 | 136 | 139 | ||||||||||
Reduction of tax benefits over the next twelve months | 315 | ||||||||||||||
Income tax expense | 1,791 | $ 1,787 | $ 1,739 | $ 1,745 | $ 1,502 | $ 1,481 | $ 1,387 | $ 1,709 | $ 7,062 | [2] | $ 6,079 | [2] | $ 9,885 | [2] | |
Percentage of pre-tax income tax rate | 19.00% | 17.00% | 28.00% | ||||||||||||
Franklin Bancorp [Member] | |||||||||||||||
Income Taxes [Line Items] | |||||||||||||||
Net operating loss carryforward | 128 | $ 128 | |||||||||||||
Limitations on use | $ 122 | $ 122 | |||||||||||||
Net operating loss carryforward expiration date | Dec. 31, 2024 | ||||||||||||||
[1] | As of December 31, 2019, the Company had approximately $128,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company’s use to approximately $122,000 per year during the carry forward period, which expires in 2024 | ||||||||||||||
[2] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Current: | ||||||||||||||
Federal | $ 4,423 | $ 8,557 | $ 4,250 | |||||||||||
State | 1,392 | 1,043 | 1,638 | |||||||||||
Deferred: | ||||||||||||||
Federal | 1,097 | (3,404) | 4,256 | |||||||||||
State | 150 | (117) | (259) | |||||||||||
Total income tax expense | $ 1,791 | $ 1,787 | $ 1,739 | $ 1,745 | $ 1,502 | $ 1,481 | $ 1,387 | $ 1,709 | $ 7,062 | [1] | $ 6,079 | [1] | $ 9,885 | [1] |
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Expected Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Expected income tax expense | $ 7,868 | $ 7,633 | $ 12,214 | |||||||||||
(Reductions) increases resulting from: | ||||||||||||||
Tax-exempt income | (1,755) | (2,009) | (3,868) | |||||||||||
State taxes, net of federal benefit | 1,218 | 732 | 896 | |||||||||||
Share-based compensation adjustment | (281) | (286) | (376) | |||||||||||
Adjustment of deferred tax asset or liability for TCJA | (74) | 1,824 | ||||||||||||
Other, net | 12 | 83 | (805) | |||||||||||
Total income tax expense | $ 1,791 | $ 1,787 | $ 1,739 | $ 1,745 | $ 1,502 | $ 1,481 | $ 1,387 | $ 1,709 | $ 7,062 | [1] | $ 6,079 | [1] | $ 9,885 | [1] |
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax assets: | |||
Allowance for loan losses | $ 2,452 | $ 2,376 | |
ASC 715 pension funding liability | 7,642 | 6,000 | |
Net operating loss carryforward | [1] | 27 | 50 |
Supplemental executive retirement plan accrual | 2,087 | 1,968 | |
Stock compensation | 1,987 | 1,673 | |
Total deferred tax assets | 14,195 | 12,067 | |
Deferred tax liabilities: | |||
Premises and equipment | (2,821) | (1,937) | |
Pension | (974) | (409) | |
Intangible assets | (1,379) | (1,212) | |
Unrealized gain on investment in securities available-for-sale | (3,348) | (156) | |
Other | (196) | (80) | |
Total deferred tax liabilities | (8,718) | (3,794) | |
Net deferred tax assets | $ 5,477 | $ 8,273 | |
[1] | As of December 31, 2019, the Company had approximately $128,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company’s use to approximately $122,000 per year during the carry forward period, which expires in 2024 |
Income Taxes (Schedule of the R
Income Taxes (Schedule of the Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1 | $ 1,403 | $ 1,632 | $ 1,623 |
Changes in unrecognized tax benefits as a result of tax positions taken during a prior year | 56 | (135) | (15) |
Changes in unrecognized tax benefits as a result of tax position taken during the current year | 171 | 192 | 263 |
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (331) | (286) | (239) |
Balance at December 31 | $ 1,299 | $ 1,403 | $ 1,632 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments (Schedule of Commitments to Extend Credit, Standby Letters of Credit and Commercial Letters) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Long-term Line of Credit | $ 18,000 | |
Commitments To Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | 197,799 | 144,010 |
Standby Letters Of Credit [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | 13,288 | 11,368 |
Commercial Letters Of Credit [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | $ 2,755 | $ 3,486 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments (Summary of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 203,954 | $ 230,933 | $ 228,110 | $ 266,743 |
Investment in securities, Carrying Amount | 422,665 | 441,534 | ||
Loans, net, Carrying Amount | 762,082 | 711,362 | ||
Accrued interest receivable, Carrying Amount | 6,706 | 7,069 | ||
Assets, Carrying Amount | 1,395,407 | 1,390,898 | ||
Cash and cash equivalents, Fair Value | 203,954 | 230,933 | ||
Investment in securities, Fair Value | 422,665 | 441,534 | ||
Loans, net, Fair Value | 776,653 | 711,090 | ||
Accrued interest receivable, Fair Value | 6,706 | 7,069 | ||
Assets, Fair Value | 1,409,978 | 1,390,626 | ||
Deposits, Carrying Amount | 757,136 | 721,926 | ||
Accounts and drafts payable, Carrying Amount | 684,295 | 694,360 | ||
Accrued interest payable, Carrying Amount | 103 | 91 | ||
Liabilities, Carrying Amount | 1,441,534 | 1,416,377 | ||
Deposits, Fair Value | 757,790 | 722,018 | ||
Accounts and drafts payable, Fair Value | 684,295 | 694,360 | ||
Accrued interest payable, Fair Value | 103 | 91 | ||
Liabilities, Fair Value | $ 1,442,188 | $ 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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fee revenue and other income: | |||||||||||
In-scope of FASB ASC 606 - Invoice processing fees | $ 81,329 | $ 78,461 | $ 72,961 | ||||||||
In-scope of FASB ASC 606 - Invoice payment fees | 26,624 | 23,720 | 20,361 | ||||||||
Information services payment and processing revenue | 107,953 | 102,181 | 93,322 | ||||||||
Bank service fees | 1,386 | 1,335 | 1,349 | ||||||||
Fee revenue (in-scope of FASB ASC 606) | 109,339 | 103,516 | 94,671 | ||||||||
Other income (out-of-scope of FASB ASC 606) | 730 | 560 | 841 | ||||||||
Total fee revenue and other income | $ 27,422 | $ 28,262 | $ 27,372 | $ 27,013 | $ 26,627 | $ 26,435 | $ 25,640 | $ 25,374 | 110,069 | 104,076 | 95,512 |
Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) | 47,166 | 44,190 | 39,790 | ||||||||
Total net revenue | $ 157,235 | $ 148,266 | $ 135,302 |
Industry Segment Information (N
Industry Segment Information (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% |
Tax-equivalent adjustment | $ 2,084,000 | $ 2,422,000 | $ 5,691,000 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Fee income from customers | $ 110,069 | $ 104,076 | $ 95,512 | |||||||||
Interest income | [1] | 54,694 | 50,348 | 47,667 | ||||||||
Interest expense | $ 1,206 | $ 1,392 | $ 1,305 | $ 1,290 | $ 1,234 | $ 1,029 | $ 794 | $ 679 | 5,193 | 3,736 | 2,187 | |
Intersegment income (expense) | ||||||||||||
Depreciation and amortization | 4,790 | 4,396 | 4,051 | |||||||||
Tax-equivalized pre-tax income | 39,550 | 38,768 | 40,589 | |||||||||
Goodwill | 14,262 | 12,569 | 14,262 | 12,569 | 12,569 | |||||||
Other intangible assets, net | 4,281 | 1,554 | 4,281 | 1,554 | 1,996 | |||||||
Total Assets | 1,764,243 | 1,695,176 | 1,764,243 | 1,695,176 | 1,603,209 | |||||||
Funding Sources | 1,268,973 | 1,215,386 | 1,268,973 | 1,215,386 | 1,203,479 | |||||||
Information Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Fee income from customers | 108,882 | 102,839 | 93,484 | |||||||||
Interest income | [1] | 25,616 | 25,074 | 23,813 | ||||||||
Interest expense | ||||||||||||
Intersegment income (expense) | ||||||||||||
Depreciation and amortization | 4,659 | 4,254 | 3,902 | |||||||||
Tax-equivalized pre-tax income | 28,542 | 27,763 | 28,168 | |||||||||
Goodwill | 12,433 | 12,433 | 12,433 | 12,433 | 12,433 | |||||||
Other intangible assets, net | 1,142 | 1,554 | 1,142 | 1,554 | 1,996 | |||||||
Total Assets | 844,483 | 826,201 | 844,483 | 826,201 | 854,214 | |||||||
Funding Sources | 676,068 | 642,733 | 676,068 | 642,733 | 604,493 | |||||||
Banking Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Fee income from customers | 1,660 | 1,307 | 1,547 | |||||||||
Interest income | [1] | 30,646 | 27,770 | 27,376 | ||||||||
Interest expense | 5,193 | 3,736 | 2,187 | |||||||||
Intersegment income (expense) | 2,107 | 1,880 | 1,362 | |||||||||
Depreciation and amortization | 131 | 142 | 149 | |||||||||
Tax-equivalized pre-tax income | 13,048 | 13,571 | 15,460 | |||||||||
Goodwill | 1,829 | 136 | 1,829 | 136 | 136 | |||||||
Other intangible assets, net | 3,139 | 3,139 | ||||||||||
Total Assets | 915,341 | 886,291 | 915,341 | 886,291 | 830,672 | |||||||
Funding Sources | 592,905 | 572,653 | 592,905 | 572,653 | 598,986 | |||||||
Corporate Eliminations and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Fee income from customers | (473) | (70) | 481 | |||||||||
Interest income | [1] | (1,568) | (2,496) | (3,522) | ||||||||
Interest expense | ||||||||||||
Intersegment income (expense) | (2,107) | (1,880) | (1,362) | |||||||||
Depreciation and amortization | ||||||||||||
Tax-equivalized pre-tax income | (2,040) | (2,566) | (3,039) | |||||||||
Goodwill | ||||||||||||
Other intangible assets, net | ||||||||||||
Total Assets | 4,419 | (17,316) | 4,419 | (17,316) | (27,677) | |||||||
Funding Sources | ||||||||||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Lease liabilities | $ 6,682 | $ 7,808 |
Right-of-use assets | 5,848 | $ 7,383 |
Short-term lease cost | 145 | |
Operating lease cost | $ 1,675 | |
Weighted average remaining lease term | 6 years 4 months 24 days | |
Weighted average discount rate | 5.50% | |
Additional lease liabilities | $ 800 | |
Operating lease payment | $ 1,531 |
Leases (Schedule of operating l
Leases (Schedule of operating lease liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lease payments due | ||
Less than 1 year | $ 1,748 | |
1-2 years | 1,613 | |
2-3 years | 1,538 | |
3-4 years | 614 | |
4-5 years | 392 | |
Over 5 years | 1,972 | |
Total undiscounted cash flows | 7,877 | |
Discount on cash flows | 1,195 | |
Total lease liability | $ 6,682 | $ 7,808 |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company (Schedule of Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and due from banks | $ 18,076 | $ 15,042 | ||
Securities available-for-sale, at fair value | 422,665 | 441,534 | ||
Loans, net | 762,082 | 711,362 | ||
Payments in excess of funding | 206,158 | 160,777 | ||
Premises and equipment, net | 20,527 | 22,031 | ||
Other assets | 112,715 | 97,032 | ||
Total assets | 1,764,243 | 1,695,176 | $ 1,603,209 | |
Liabilities and Shareholders' Equity | ||||
Accounts and drafts payable | 684,295 | 694,360 | ||
Short-term borrowings | 18,000 | |||
Other liabilities | 60,622 | 49,042 | ||
Total liabilities | 1,520,053 | 1,465,328 | ||
Total shareholders' equity | 244,190 | 229,848 | $ 225,088 | $ 208,035 |
Total liabilities and shareholders' equity | 1,764,243 | 1,695,176 | ||
Parent [Member] | ||||
Assets | ||||
Cash and due from banks | 17,032 | 35,735 | ||
Short-term investments | 3,223 | 35,201 | ||
Securities available-for-sale, at fair value | 422,665 | 441,534 | ||
Loans, net | 45,187 | 20,188 | ||
Payments in excess of funding | 206,158 | 160,777 | ||
Investments in subsidiaries | 145,400 | 130,231 | ||
Premises and equipment, net | 19,940 | 21,358 | ||
Other assets | 137,226 | 117,374 | ||
Total assets | 996,831 | 962,398 | ||
Liabilities and Shareholders' Equity | ||||
Accounts and drafts payable | 683,485 | 693,026 | ||
Short-term borrowings | 18,000 | |||
Other liabilities | 50,987 | 39,362 | ||
Total liabilities | 752,472 | 732,388 | ||
Total shareholders' equity | 244,359 | 230,010 | ||
Total liabilities and shareholders' equity | $ 996,831 | $ 962,398 |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company (Schedule of Condensed Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Information services revenue | $ 107,953 | $ 102,181 | $ 93,322 | |||||||||||
Net interest income after provision | 47,166 | 44,190 | 39,790 | |||||||||||
Gain (loss) on sales of investment securities | 19 | (42) | ||||||||||||
Total net revenue | 157,235 | 148,266 | 135,302 | |||||||||||
Expenses: | ||||||||||||||
Salaries and employee benefits | 91,083 | 85,881 | 77,339 | |||||||||||
Other expenses | 2,404 | 1,963 | 1,722 | |||||||||||
Total operating expense | $ 30,773 | $ 30,563 | $ 29,971 | $ 28,462 | $ 29,744 | $ 28,530 | $ 27,463 | $ 26,182 | 119,769 | 111,919 | 100,403 | |||
Income tax expense | 1,791 | 1,787 | 1,739 | 1,745 | 1,502 | 1,481 | 1,387 | 1,709 | 7,062 | [1] | 6,079 | [1] | 9,885 | [1] |
Net income | $ 6,371 | $ 8,186 | $ 7,684 | $ 8,163 | $ 7,057 | $ 7,610 | $ 7,509 | $ 8,092 | 30,404 | 30,268 | 25,014 | |||
Parent Company [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Income from subsidiaries - management fees | 2,599 | 2,668 | 2,172 | |||||||||||
Information services revenue | 106,198 | 100,628 | 93,133 | |||||||||||
Net interest income after provision | 15,713 | 14,159 | 13,217 | |||||||||||
Gain (loss) on sales of investment securities | 19 | (42) | ||||||||||||
Other income | 518 | 456 | 483 | |||||||||||
Total net revenue | 125,047 | 117,869 | 109,005 | |||||||||||
Expenses: | ||||||||||||||
Salaries and employee benefits | 81,432 | 77,946 | 70,409 | |||||||||||
Other expenses | 26,136 | 23,442 | 20,333 | |||||||||||
Total operating expense | 107,568 | 101,388 | 90,742 | |||||||||||
Income before income tax and equity in undistributed income of subsidiaries | 17,479 | 16,481 | 18,263 | |||||||||||
Income tax expense | 2,860 | 1,788 | 4,394 | |||||||||||
Income before undistributed income of subsidiaries | 14,619 | 14,693 | 13,869 | |||||||||||
Equity in undistributed income of subsidiaries | 15,785 | 15,575 | 11,145 | |||||||||||
Net income | $ 30,404 | $ 30,268 | $ 25,014 | |||||||||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |
Condensed Financial Informati_5
Condensed Financial Information of Parent Company (Schedule of Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 6,371 | $ 8,186 | $ 7,684 | $ 8,163 | $ 7,057 | $ 7,610 | $ 7,509 | $ 8,092 | $ 30,404 | $ 30,268 | $ 25,014 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Stock-based compensation expense | 3,144 | 3,006 | 2,339 | ||||||||
Other, net | (4,359) | (5,794) | (4,127) | ||||||||
Net cash provided by operating activities | 42,126 | 48,335 | 38,890 | ||||||||
Cash flows from investing activities: | |||||||||||
Net decrease (increase) in securities | (82,022) | (124,777) | |||||||||
Net (increase) decrease in loans | (50,970) | (35,336) | (21,335) | ||||||||
Net increase in payments in excess of funding | (45,381) | (21,674) | (33,756) | ||||||||
Purchases of premises and equipment, net | (2,723) | (4,399) | (4,127) | ||||||||
Asset acquisition of Gateway Giving, LLC | (2,833) | ||||||||||
Net cash used in investing activities | (75,757) | (46,795) | (139,839) | ||||||||
Cash flows from financing activities: | |||||||||||
Net (decrease) increase in accounts and drafts payable | (22,400) | (19,595) | 19,601 | ||||||||
Short-term borrowings | 18,000 | ||||||||||
Cash dividends paid | (15,234) | (13,177) | (10,675) | ||||||||
Purchase of common shares of treasury | (7,799) | (8,838) | (2,270) | ||||||||
Other financing activities | (1,125) | (945) | (467) | ||||||||
Net cash provided by financing activities | 6,652 | 1,283 | 62,316 | ||||||||
Net increase (decrease) in cash and cash equivalents | (26,979) | 2,823 | (38,633) | ||||||||
Cash and cash equivalents at beginning of year | 230,933 | 228,110 | 230,933 | 228,110 | 266,743 | ||||||
Cash and cash equivalents at end of year | 203,954 | 230,933 | 203,954 | 230,933 | 228,110 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 30,404 | 30,268 | 25,014 | ||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiaries | (15,785) | (15,575) | (11,145) | ||||||||
Net change in other assets | (6,289) | (1,012) | (7,257) | ||||||||
Net change in other liabilities | 9,474 | 3,829 | 10,118 | ||||||||
Stock-based compensation expense | 3,144 | 2,583 | 1,743 | ||||||||
Other, net | 6,104 | 10,242 | 9,219 | ||||||||
Net cash provided by operating activities | 27,052 | 30,335 | 27,692 | ||||||||
Cash flows from investing activities: | |||||||||||
Net decrease (increase) in securities | 26,150 | 14,615 | (80,621) | ||||||||
Net (increase) decrease in loans | (24,999) | (7,949) | 34,944 | ||||||||
Net increase in payments in excess of funding | (45,381) | (21,674) | (33,756) | ||||||||
Purchases of premises and equipment, net | (2,637) | (4,211) | (4,020) | ||||||||
Asset acquisition of Gateway Giving, LLC | (2,833) | ||||||||||
Net cash used in investing activities | (49,700) | (19,219) | (83,453) | ||||||||
Cash flows from financing activities: | |||||||||||
Net (decrease) increase in accounts and drafts payable | (21,875) | (22,316) | 20,397 | ||||||||
Short-term borrowings | 18,000 | ||||||||||
Cash dividends paid | (15,234) | (13,177) | (10,675) | ||||||||
Purchase of common shares of treasury | (7,799) | (8,838) | (2,270) | ||||||||
Other financing activities | (1,125) | (635) | (267) | ||||||||
Net cash provided by financing activities | (28,033) | (44,966) | 7,185 | ||||||||
Net increase (decrease) in cash and cash equivalents | (50,681) | (33,850) | (48,576) | ||||||||
Cash and cash equivalents at beginning of year | $ 70,936 | $ 104,786 | 70,936 | 104,786 | 153,362 | ||||||
Cash and cash equivalents at end of year | $ 20,255 | $ 70,936 | $ 20,255 | $ 70,936 | $ 104,786 |
SUPPLEMENTARY FINANCIAL INFOR_3
SUPPLEMENTARY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Supplemental Income Statement Elements [Abstract] | ||||||||||||||
Fee revenue and other income | $ 27,422 | $ 28,262 | $ 27,372 | $ 27,013 | $ 26,627 | $ 26,435 | $ 25,640 | $ 25,374 | $ 110,069 | $ 104,076 | $ 95,512 | |||
Interest income | 12,719 | 13,666 | 13,327 | 12,897 | 12,910 | 12,215 | 11,513 | 11,288 | 52,609 | 47,926 | 41,977 | |||
Interest expense | 1,206 | 1,392 | 1,305 | 1,290 | 1,234 | 1,029 | 794 | 679 | 5,193 | 3,736 | 2,187 | |||
Net interest income | 11,513 | 12,274 | 12,022 | 11,607 | 11,676 | 11,186 | 10,719 | 10,609 | 47,416 | 44,190 | 39,790 | |||
Provision for loan losses | 250 | 250 | ||||||||||||
Operating expense | 30,773 | 30,563 | 29,971 | 28,462 | 29,744 | 28,530 | 27,463 | 26,182 | 119,769 | 111,919 | 100,403 | |||
Income tax expense | 1,791 | 1,787 | 1,739 | 1,745 | 1,502 | 1,481 | 1,387 | 1,709 | 7,062 | [1] | 6,079 | [1] | 9,885 | [1] |
Net income | $ 6,371 | $ 8,186 | $ 7,684 | $ 8,163 | $ 7,057 | $ 7,610 | $ 7,509 | $ 8,092 | $ 30,404 | $ 30,268 | $ 25,014 | |||
Net income per share: | ||||||||||||||
Basic earnings per share | $ 0.44 | $ 0.57 | $ 0.53 | $ 0.56 | $ 0.48 | $ 0.52 | $ 0.51 | $ 0.55 | $ 2.11 | $ 2.06 | $ 1.70 | |||
Diluted earnings per share | $ 0.43 | $ 0.56 | $ 0.52 | $ 0.55 | $ 0.47 | $ 0.51 | $ 0.50 | $ 0.54 | $ 2.07 | $ 2.03 | $ 1.68 | |||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018 and 35% for 2017. The tax-equivalent adjustment was approximately $2,084,000 for 2019, $2,422,000 for 2018, and $5,691,000 for 2017. |