Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000708781 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
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 $.50 | |
Trading Symbol | CASS | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,422,133 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 15,950 | $ 18,076 |
Interest-bearing deposits in other financial institutions | 208,783 | 172,422 |
Federal funds sold and other short-term investments | 214,718 | 13,456 |
Cash and cash equivalents | 439,451 | 203,954 |
Securities available-for-sale, at fair value | 365,165 | 422,665 |
Loans | 944,557 | 772,638 |
Less: Allowance for loan losses | 11,298 | 10,556 |
Loans, net | 933,259 | 762,082 |
Payments in excess of funding | 161,392 | 206,158 |
Premises and equipment, net | 18,890 | 20,527 |
Investment in bank-owned life insurance | 17,942 | 17,599 |
Goodwill | 14,262 | 14,262 |
Other intangible assets, net | 3,637 | 4,281 |
Other assets | 46,465 | 112,715 |
Total assets | 2,000,463 | 1,764,243 |
Deposits: | ||
Noninterest-bearing | 374,382 | 351,091 |
Interest-bearing | 536,803 | 406,045 |
Total deposits | 911,185 | 757,136 |
Accounts and drafts payable | 771,607 | 684,295 |
Short-term borrowings | 18,000 | |
Other liabilities | 66,180 | 60,622 |
Total liabilities | 1,748,972 | 1,520,053 |
Shareholders' Equity: | ||
Preferred stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued | ||
Common stock, par value $.50 per share; 40,000,000 shares authorized and 15,505,772 shares issued at September 30, 2020 and December 31, 2019 | 7,753 | 7,753 |
Additional paid-in capital | 205,053 | 205,397 |
Retained earnings | 97,402 | 90,341 |
Common shares in treasury, at cost (1,083,639 shares at September 30, 2020 and 991,406 shares at December 31, 2019) | (49,410) | (45,381) |
Accumulated other comprehensive loss | (9,307) | (13,920) |
Total shareholders' equity | 251,491 | 244,190 |
Total liabilities and shareholders' equity | $ 2,000,463 | $ 1,764,243 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.50 | $ 0.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value per share | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 15,505,772 | 15,505,772 |
Treasury stock, shares | 1,083,639 | 991,406 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fee Revenue and Other Income: | ||||
Information services payment and processing revenue | $ 24,376 | $ 27,741 | $ 72,540 | $ 81,050 |
Bank service fees | 441 | 307 | 1,249 | 984 |
Gains on sales of securities | 1,069 | 19 | ||
Other | 115 | 214 | 343 | 594 |
Total fee revenue and other income | 24,932 | 28,262 | 75,201 | 82,647 |
Interest Income: | ||||
Interest and fees on loans | 9,067 | 9,548 | 27,366 | 27,564 |
Interest and dividends on securities: | ||||
Taxable | 373 | 612 | 1,406 | 1,893 |
Exempt from federal income taxes | 1,753 | 1,925 | 5,357 | 5,956 |
Interest on federal funds sold and other short-term investments | 86 | 1,581 | 1,130 | 4,477 |
Total interest income | 11,279 | 13,666 | 35,259 | 39,890 |
Interest Expense: | ||||
Interest on deposits | 465 | 1,392 | 1,909 | 3,987 |
Interest on short-term borrowings | 2 | |||
Total interest expense | 465 | 1,392 | 1,911 | 3,987 |
Net interest income | 10,814 | 12,274 | 33,348 | 35,903 |
Provision for loan losses | 725 | 250 | ||
Net interest income after provision for loan losses | 10,814 | 12,274 | 32,623 | 35,653 |
Total net revenue | 35,746 | 40,536 | 107,824 | 118,300 |
Operating Expense: | ||||
Personnel | 22,521 | 23,514 | 65,839 | 68,594 |
Occupancy | 930 | 973 | 2,809 | 2,930 |
Equipment | 1,648 | 1,554 | 4,900 | 4,575 |
Amortization of intangible assets | 215 | 150 | 644 | 359 |
Other operating expense | 3,366 | 4,372 | 10,774 | 12,538 |
Total operating expense | 28,680 | 30,563 | 84,966 | 88,996 |
Income before income tax expense | 7,066 | 9,973 | 22,858 | 29,304 |
Income tax expense | 1,285 | 1,787 | 4,093 | 5,271 |
Net income | $ 5,781 | $ 8,186 | $ 18,765 | $ 24,033 |
Basic earnings per share | $ 0.40 | $ 0.57 | $ 1.31 | $ 1.66 |
Diluted earnings per share | $ 0.40 | $ 0.56 | $ 1.29 | $ 1.64 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Comprehensive Income: | ||||
Net income | $ 5,781 | $ 8,186 | $ 18,765 | $ 24,033 |
Other comprehensive income: | ||||
Net unrealized gain on securities available-for-sale | 224 | 1,571 | 7,209 | 13,317 |
Tax effect | (53) | (374) | (1,716) | (3,170) |
Reclassification adjustments for gains included in net income | (1,069) | (19) | ||
Tax effect | 254 | 5 | ||
Foreign currency translation adjustments | 63 | (78) | (65) | (74) |
Total comprehensive income | $ 6,015 | $ 9,305 | $ 23,378 | $ 34,092 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities: | ||
Net income | $ 18,765 | $ 24,033 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,391 | 8,103 |
Gains on sales of securities | (1,069) | (19) |
Stock-based compensation expense | 2,277 | 2,286 |
Provision for loan losses | 725 | 250 |
Decrease (increase) in income tax liability | 527 | (1,384) |
Increase in pension liability | 3,315 | 3,888 |
Decrease (increase) in accounts receivable | 1,339 | (399) |
Other operating activities, net | 5,791 | 3,016 |
Net cash provided by operating activities | 40,061 | 39,774 |
Cash Flows From Investing Activities: | ||
Proceeds from sales of securities available-for-sale | 19,629 | 4,648 |
Proceeds from maturities of securities available-for-sale | 43,605 | 18,001 |
Purchase of securities available-for-sale | (2,931) | |
Net increase in loans | (171,902) | (45,763) |
Decrease (increase) in payments in excess of funding | 44,766 | (47,448) |
Purchases of premises and equipment, net | (1,705) | (1,877) |
Acquisition of Gateway Giving, LLC | (3,000) | |
Net cash used in investing activities | (68,538) | (75,439) |
Cash Flows From Financing Activities: | ||
Net increase (decrease) in noninterest-bearing demand deposits | 23,290 | (2,563) |
Net increase (decrease) in interest-bearing demand and savings deposits | 136,639 | (10,485) |
Net (decrease) increase in time deposits | (5,881) | 2,355 |
Net increase in accounts and drafts payable | 146,280 | 57,772 |
Net decrease in short-term borrowings | (18,000) | |
Cash dividends paid | (11,704) | (11,317) |
Purchase of common shares for treasury | (5,508) | (7,799) |
Other financing activities, net | (1,142) | (493) |
Net cash provided by financing activities | 263,974 | 27,470 |
Net increase (decrease) in cash and cash equivalents | 235,497 | (8,195) |
Cash and cash equivalents at beginning of period | 203,954 | 230,933 |
Cash and cash equivalents at end of period | 439,451 | 222,738 |
Supplemental information: | ||
Cash paid for interest | 1,889 | 3,831 |
Cash paid for income taxes | $ 3,567 | $ 6,648 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance at Dec. 31, 2018 | $ 7,753 | $ 205,770 | $ 75,171 | $ (39,974) | $ (18,872) | $ 229,848 |
Net income | 24,033 | 24,033 | ||||
Cash dividends | (11,317) | (11,317) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (1,426) | 1,324 | (102) | |||
Exercise of SARs | (855) | 464 | (391) | |||
Stock-based compensation expense | 2,286 | 2,286 | ||||
Purchase of common shares | (7,799) | (7,799) | ||||
Other comprehensive income | 10,059 | 10,059 | ||||
Balance at Sep. 30, 2019 | 7,753 | 205,775 | 87,887 | (45,985) | (8,813) | 246,617 |
Balance at Jun. 30, 2019 | 7,753 | 205,463 | 83,470 | (46,333) | (9,932) | 240,421 |
Net income | 8,186 | 8,186 | ||||
Cash dividends | (3,769) | (3,769) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (5) | 48 | 43 | |||
Exercise of SARs | (552) | 300 | (252) | |||
Stock-based compensation expense | 869 | 869 | ||||
Other comprehensive income | 1,119 | 1,119 | ||||
Balance at Sep. 30, 2019 | 7,753 | 205,775 | 87,887 | (45,985) | (8,813) | 246,617 |
Balance at Dec. 31, 2019 | 7,753 | 205,397 | 90,341 | (45,381) | (13,920) | 244,190 |
Net income | 18,765 | 18,765 | ||||
Cash dividends | (11,704) | (11,704) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (2,378) | 1,338 | (1,040) | |||
Exercise of SARs | (243) | 141 | (102) | |||
Stock-based compensation expense | 2,277 | 2,277 | ||||
Purchase of common shares | (5,508) | (5,508) | ||||
Other comprehensive income | 4,613 | 4,613 | ||||
Balance at Sep. 30, 2020 | 7,753 | 205,053 | 97,402 | (49,410) | (9,307) | 251,491 |
Balance at Jun. 30, 2020 | 7,753 | 204,258 | 95,514 | (49,457) | (9,541) | 248,527 |
Net income | 5,781 | 5,781 | ||||
Cash dividends | (3,893) | (3,893) | ||||
Issuance of common shares pursuant to stock-based compensation plan, net | (4) | 47 | 43 | |||
Stock-based compensation expense | 799 | 799 | ||||
Other comprehensive income | 234 | 234 | ||||
Balance at Sep. 30, 2020 | $ 7,753 | $ 205,053 | $ 97,402 | $ (49,410) | $ (9,307) | $ 251,491 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends, per share | $ 0.27 | $ 0.26 | $ 0.27 | $ 0.26 |
Stock issued pursuant to stock-based compensation | 1,165 | 795 | 67,790 | 36,062 |
Shares repurchased during period | 128,779 | 154,593 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Certain amounts in prior-period financial statements have been reclassified to conform to the current period’s presentation. For further information, refer to the audited consolidated financial statements and related footnotes included in Cass Information System, Inc.’s (the “Company” or “Cass”) Annual Report on Form 10-K for the year ended December 31, 2019. Risks and Uncertainties On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The declaration of a global pandemic indicates that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. This response to the COVID-19 pandemic has resulted in an unprecedented slow-down in economic activity and a related increase in unemployment. The Company has evaluated subsequent events after the consolidated balance sheet date of September 30, 2020 and the breadth of the impact of the global presence of COVID-19 on the Company’s business is currently unknown. Cass is closely monitoring developments related to COVID-19 checking regularly for updated information and recommendations from the World Health Organization and the U.S. Centers for Disease Control and Prevention, from national, state, and local governments, and evaluating courses of action being taken by peers. The duration and severity of the effect of COVID-19 on economic, market and business conditions remain uncertain. At this time, the Company remains subject to heightened business, operational, market, credit and other risks related to the COVID-19 pandemic, including, but not limited to, those discussed below, which may have an adverse effect on business, financial condition and results of operations. Financial position and results of operations - In response to COVID-19, the Federal Reserve has taken action to lower the Federal Funds rate, which has adversely affected interest income and therefore, the Company’s results of operations and financial condition. The Federal Reserve has continued its commitment to this approach, indicating that the target Federal Funds rate would remain at current levels until the economy is in a more stable employment and price-stability position. To the extent the business disruption continues for an extended period, additional cost management actions will be considered. Future asset impairment charges, increases in allowance for loan losses, or restructuring charges could be more likely and will be dependent on the severity and duration of this crisis and its effect on the Company’s borrowers. For payment processing services, business closures, including constrictions in the manufacturing sector, have led to a decrease in the number of transactions and dollars processed due to the decline in customers’ business activity. In addition, the dampened demand for oil and resulting plummet in oil prices has had, and can continue to have, a negative effect on both the number of freight transactions processed and the dollar amount of invoices processed. Other financial impact could occur though such potential impact is unknown at this time. Capital and liquidity - -8- The Company maintains access to multiple sources of liquidity. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Bank’s customers to draw down deposits, the Company might become more reliant on more expensive sources of funding. Asset valuation - The economic slowdown as a result of COVID-19 could cause a further and sustained decline in the Company’s stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, necessitate a goodwill or intangible asset impairment test and result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. Processes, controls and business continuity - In the past several years, Cass has invested in sophisticated technology initiatives that enable employees to operate remotely with full system(s) access along with unified and transparent voice and electronic communications capabilities, ensuring seamless service delivery. The Company cannot predict when or how it will fully lift the actions put in place as part of the Business Continuity Plan, including work from home requirements and travel restrictions. Cass does not believe the work from home protocol has materially adversely impacted internal controls, financial reporting systems, or operations. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 2 – Intangible Assets The Company accounts for intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Goodwill and Other Intangible Assets Details of the Company’s intangible assets are as follows: September 30, 2020 December 31, 2019 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,778 $ (3,793) $ 4,778 $ (3,463) Patents 72 (23) 72 (20) Non-compete agreements 332 (332) 332 (332) Software 2,844 (638) 2,844 (358) Trade Name 190 (10) 190 (3) Other 500 (283) 500 (259) Unamortized intangible assets: Goodwill 1 14,489 (227) 14,489 (227) Total intangible assets $ 23,205 $ (5,306) $ 23,205 $ (4,662) 1 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 $644,000 and $359,000 for the nine-month periods ended September 30, 2020 and 2019, 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3 – Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. 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. The calculations of basic and diluted earnings per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share and per share data) 2020 2019 2020 2019 Basic: Net income $ 5,781 $ 8,186 $ 18,765 $ 24,033 Weighted-average common shares outstanding 14,348,151 14,417,725 14,373,243 14,435,670 Basic earnings per share $ .40 $ .57 $ 1.31 $ 1.66 Diluted: Net income $ 5,781 $ 8,186 $ 18,765 $ 24,033 Weighted-average common shares outstanding 14,348,151 14,417,725 14,373,243 14,435,670 Effect of dilutive restricted stock and stock appreciation rights 198,336 262,917 200,723 258,123 Weighted-average common shares outstanding assuming dilution 14,546,487 14,680,642 14,573,966 14,693,793 Diluted earnings per share $ .40 $ .56 $ 1.29 $ 1.64 |
Stock Repurchases
Stock Repurchases | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stock Repurchases | Note 4 – Stock Repurchases The Company maintains a treasury stock buyback program pursuant to which the Board of Directors has authorized the repurchase of up to 500,000 shares of the Company’s common stock. The program provides that the Company may repurchase up to an aggregate of 500,000 shares of common stock and has no expiration date. The Company did not repurchase shares during the three-month periods ended September 30, 2020 and 2019 and repurchased 128,779 and 154,593 during the nine-month periods ended September 30, 2020 and 2019, respectively. As of September 30, 2020, 371,221 shares remained available for repurchase under the program. Repurchases may be made in the open market or through negotiated transactions from time to time depending on market conditions. As of March 16, 2020, the Company has temporarily suspended the treasury stock buyback program. On October 20, 2020, the Board of Directors restored the treasury stock buyback program which authorizes the Company to repurchase up to an aggregate of 500,000 shares. |
Industry Segment Information
Industry Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Industry Segment Information | Note 5 – Industry Segment Information The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and faith-based ministries, 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 the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. 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: -10- • Information Services – one or more fixed rates depending upon the specific characteristics of the funding source, and • Banking Services – a variable rate that is based upon the overall performance of the Company’s earning assets. Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other. Summarized information about the Company’s operations in each industry segment is as follows: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total Three Months Ended September 30, 2020 Fee income $ 24,198 $ 651 $ 83 $ 24,932 Interest income* 6,306 7,212 (1,773) 11,745 Interest expense ─ 465 ─ 465 Intersegment income (expense) ─ 593 (593) ─ Tax-equivalized pre-tax income* 5,718 3,506 (1,692) 7,532 Goodwill 12,433 1,829 ─ 14,262 Other intangible assets, net 837 2,800 ─ 3,637 Total assets 905,158 1,105,845 (10,540) 2,000,463 Average funding sources 751,010 780,217 ─ 1,531,227 Three Months Ended September 30, 2019 Fee income $ 28,026 $ 257 $ (21) $ 28,262 Interest income* 6,760 7,930 (513) 14,177 Interest expense — 1,392 — 1,392 Intersegment income (expense) — 533 (533) — Tax-equivalized pre-tax income* 7,619 3,399 (534) 10,484 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total assets 908,946 862,142 9,922 1,781,010 Average funding sources 704,772 588,226 — 1,292,998 Nine Months Ended September 30, 2020: Fee income $ 72,098 $ 1,906 $ 1,197 $ 75,201 Interest income* 18,153 21,097 (2,567) 36,683 Interest expense ─ 1,911 ─ 1,911 Intersegment income (expense) ─ 1,674 (1,674) ─ Tax-equivalized pre-tax income* 16,462 9,190 (1,370) 24,282 Goodwill 12,433 1,829 ─ 14,262 Other intangible assets, net 837 2,800 ─ 3,637 Total assets 905,158 1,105,845 (10,540) 2,000,463 Average funding sources 703,142 712,903 ─ 1,416,045 Nine Months Ended September 30, 2019 Fee income $ 82,049 $ 1,040 $ (442) $ 82,647 Interest income* 19,273 23,082 (883) 41,472 Interest expense — 3,987 — 3,987 Intersegment income (expense) — 1,587 (1,587) — Tax-equivalized pre-tax income* 21,997 10,214 (1,324) 30,887 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total assets 908,946 862,142 9,922 1,781,010 Average funding sources 667,741 583,458 — 1,251,199 * Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2020 and 2019. The tax-equivalent adjustment was approximately $466,000 and $511,000 for the Three Months Ended 2020 and 2019, respectively, and $1,424,000 and $1,583,000 for the Nine Months Ended 2020 and 2019, respectively. |
Loans by Type
Loans by Type | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans by Type | Note 6 – Loans by Type A summary of loan categories is as follows: (In thousands) September 30, 2020 December 31, 2019 Commercial and industrial $ 301,886 $ 323,857 Paycheck protection program (“PPP”) 172,211 — Real estate: Commercial: Mortgage 94,792 101,654 Construction 23,795 25,299 Faith-based: Mortgage 331,419 305,826 Construction 20,452 15,945 Other 2 57 Total loans $ 944,557 $ 772,638 -11- In support of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”), the Bank had processed nearly 350 applications for PPP loans of approximately $170,000,000 to provide much-needed cash to small business and self-employed taxpayers during the COVID-19 crisis. The loans were primarily made to existing bank customers and are 100% guaranteed by the Small Business Administration and no allowance for loan loss was recorded for these loans. The following table presents the aging of loans by loan categories at September 30, 2020 and December 31, 2019: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans September 30, 2020 Commercial and industrial $ 301,886 $ — $ — $ — $ — $ 301,886 PPP 172,211 — — — — 172,211 Real estate: Commercial: Mortgage 94,792 — — — — 94,792 Construction 23,795 — — — — 23,795 Faith-based: Mortgage 331,419 — — — — 331,419 Construction 20,452 — — — — 20,452 Other 2 — — — — 2 Total $ 944,557 $ — $ — $ — $ — $ 944,557 December 31, 2019 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 credit exposure of the loan portfolio by internally assigned credit grade as of September 30, 2020 and 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 September 30, 2020 Commercial and industrial $ 288,060 $ 13,826 $ — $ 301,886 PPP 172,211 — — 172,211 Real estate: Commercial: Mortgage 93,370 1,422 — 94,792 Construction 23,795 — — 23,795 Faith-based: Mortgage 328,285 3,134 — 331,419 Construction 20,452 — — 20,452 Other 2 — — 2 Total $ 926,175 $ 18,382 $ — $ 944,557 December 31, 2019 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 2 -12- A loan is considered impaired when it is probable that a creditor will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. When measuring impairment, the expected future cash flows of an impaired loan are discounted at the loan's effective interest rate. Alternatively, impairment could be measured by reference to an observable market price, if one exists, or the fair value of the collateral for a collateral-dependent loan. Regardless of the historical measurement method used, the Company measures impairment based on the fair value of the collateral when the Company determines foreclosure is probable. Additionally, impairment of a restructured loan is measured by discounting the total expected future cash flows at the loan's effective rate of interest as stated in the original loan agreement. To measure impairment at September 30, 2020, the optional use of the practical expedient to use the fair value of collateral was utilized. The Company uses its nonaccrual methods as discussed in greater detail in the Company’s 2019 Annual Report on Form 10-K. Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, Allowance for Credit Losses The following table presents the recorded investment and unpaid principal balance for impaired loans at September 30, 2020. There were no impaired loans at December 31, 2019 or September 30, 2019. (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses Commercial and industrial: $ 11,782 $ 11,782 $ 500 Real estate: Faith-based: Mortgage 1,038 1,038 — Total impaired loans $ 12,820 $ 12,820 $ 500 A summary of the activity in the allowance for loan losses from December 31, 2019 to September 30, 2020 is as follows: (In thousands) December 31, 2019 Charge- Offs Recoveries Provision September 30, 2020 Commercial and industrial $ 4,874 $ — $ 16 $ 211 $ 5,101 Real estate: Commercial: Mortgage 1,528 — — (34) 1,494 Construction 191 — — (2) 189 Faith-based: Mortgage 3,842 — 1 510 4,353 Construction 121 — — 40 161 Total $ 10,556 $ — $ 17 $ 725 $ 11,298 A summary of the activity in the allowance for loan losses from December 31, 2018 to September 30, 2019 is as follows: (In thousands) December 31, 2018 Charge- Offs Recoveries Provision September 30, 2019 Commercial and industrial $ 4,179 $ — $ 34 $ 672 $ 4,885 Real estate: Commercial: Mortgage 1,417 — — (161) 1,256 Construction 89 — — 91 180 Faith-based: Mortgage 3,961 — — 32 3,993 Construction 155 — — (38) 117 Other 424 — — (346) 78 Total $ 10,225 $ — $ 34 $ 250 $ 10,509 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies In the normal course of business, the Company is party to activities that contain credit, market and operational risks that are not reflected in whole or in part in the Company’s consolidated financial statements. Such activities include traditional off-balance sheet credit-related financial instruments and commitments under operating leases. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. The Company’s maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, commercial letters of credit and standby letters of credit is represented by the contractual amounts of those instruments. At September 30, 2020 and December 31, 2019, no amounts have been accrued for any estimated losses for these instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial and standby letters of credit are conditional commitments issued by the Company or its subsidiaries to guarantee the performance of a customer to a third party. These off-balance sheet financial instruments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At September 30, 2020, the balance of unused loan commitments and standby and commercial letters of credit were $193,272,000, $10,337,000, and $1,015,000, respectively. Since some of the financial instruments may expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. Commitments to extend credit and letters of credit are subject to the same underwriting standards as those financial instruments included on the consolidated balance sheets. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of the credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but is generally accounts receivable, inventory, residential or income-producing commercial property or equipment. In the event of nonperformance, the Company or its subsidiaries may obtain and liquidate the collateral to recover amounts paid under guarantees on these financial instruments. -13- The following table summarizes contractual cash obligations of the Company related to time deposits at September 30, 2020: Amount of Commitment Expiration per Period (In thousands) Total Less than 1 Year 1-3 Years 3-5 Years Over 5 Years Time deposits $ 65,086 $ 45,574 $ 19,438 $ 74 $ — The Company and its subsidiaries are involved in various pending legal actions and proceedings in which claims for damages are asserted. Management, after discussion with legal counsel, believes the ultimate resolution of these legal actions and proceedings will not have a material effect upon the Company’s consolidated financial position or results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 8 – Stock-Based Compensation The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) permits the issuance of up to 1,500,000 shares of the Company’s common stock in the form of stock options, SARs, restricted stock, restricted stock units and performance awards. The Company may issue shares out of treasury stock for these awards. During the nine months ended September 30, 2020, 33,568 restricted shares, 32,910 performance-based restricted shares, and no SARs were granted under the Omnibus Plan. Stock-based compensation expense for the three months ended September 30, 2020 and 2019 was $800,000 and $869,000, respectively, and $2,277,000 and $2,286,000 for the nine months ended September 30, 2020 and 2019, respectively. Restricted Stock Restricted shares granted to Company employees are amortized to expense over the three-year cliff vesting period. Restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period, with the exception of those shares granted in lieu of cash payments for retainer fees which are expensed in the period earned. As of September 30, 2020, the total unrecognized compensation expense related to non-vested restricted shares was $1,674,000, and the related weighted-average period over which it is expected to be recognized is approximately 0.69 Following is a summary of the activity of the restricted stock: Nine Months Ended September 30, 2020 Shares Fair Value Balance at December 31, 2019 123,272 $ 47.24 Granted 33,568 47.83 Vested (20,369) 49.32 Forfeited (4,962) 50.08 Balance at September 30, 2020 131,509 $ 46.96 Performance-Based Restricted Stock The Company has granted three-year performance based restricted stock (“PBRS”) awards which are contingent upon the Company’s achievement of pre-established financial goals over a three-year cliff vest period. The number of shares issued ranges from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. -14- Following is a summary of the activity of the PBRS, based on target value: Nine Months Ended September 30, 2020 Shares Fair Value Balance at December 31, 2019 102,116 $ 49.13 Granted 32,910 54.02 Vested (29,175) 49.33 Forfeited (7,441) 50.08 Balance at September 30, 2020 98,410 $ 50.64 The PBRS that vested during the nine months ended September 30, 2020 achieved financial goals of 117.3%, resulting in the issuance of 34,222 shares of common stock. The outstanding PBRS at September 30, 2020 will vest at scheduled vesting dates and the actual number of shares of common stock issued will range from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the respective three-year performance period. SARs There were no SARs granted and no expense recognized during the three months ended September 30, 2020. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2020: Shares Weighted- Average Exercise Price Average Remaining Contractual Term Years Aggregate Intrinsic Value (In thousands) Balance at December 31, 2019 155,292 $ 32.58 2.92 $ 3,908 Exercised (10,293) 26.72 — — Exercisable at September 30, 2020 144,999 $ 32.99 2.20 $ 1,247 There were no non-vested SARs at September 30, 2020. |
Defined Pension Plans
Defined Pension Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Defined Pension Plans | Note 9 – Defined Pension Plans The Company has a noncontributory defined-benefit pension plan, which covers eligible employees. Effective December 31, 2016, the plan was closed to all new participants. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs: (In thousands) Estimated 2020 Actual 2019 Service cost – benefits earned during the year $ 4,329 $ 3,555 Interest cost on projected benefit obligations 3,908 4,103 Expected return on plan assets (6,049) (4,753) Net amortization 1,946 1,559 Net periodic pension cost $ 4,134 $ 4,464 Pension costs recorded to expense were $1,103,000 and $1,178,000 for the three-month periods ended September 30, 2020 and 2019, respectively, and totaled $3,159,000 and $3,543,000 for the nine-month periods ended September 30, 2020 and 2019, respectively. Pension costs decreased in 2020 primarily due to improved asset performance and a contribution made during 2019, which were partially offset by a decrease in the discount rate. The Company made no contribution to the plan during the nine-month period ended September 30, 2020 and is evaluating the amount of additional contributions, if any, in the remainder of 2020. -15- In addition to the above funded benefit plan, the Company has an unfunded supplemental executive retirement plan which covers key executives of the Company. This is a noncontributory plan in which the Company and its subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as its defined benefit plan. The following table represents the components of the net periodic pension costs for 2019 and an estimate for 2020: (In thousands) Estimated 2020 Actual 2019 Service cost – benefits earned during the year $ 121 $ 97 Interest cost on projected benefit obligation 347 408 Net amortization 112 276 Net periodic pension cost $ 580 $ 781 Pension costs recorded to expense were $145,000 and $195,000 for the three-month periods ended September 30, 2020 and 2019, respectively, and were $435,000 and $586,000 for the nine-month periods ended September 30, 2020 and 2019, respectively. Pension costs decreased primarily due to the unrecognized loss being amortized over the remaining expected life of the participants rather than the remaining expected service period as almost all of the plan’s participants are inactive. This was partially offset by a decrease in the discount rate. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes The effective tax rate was 18.2% and 17.9% for the three-month periods ended September 30, 2020 and 2019, respectively, and 17.9% and 18.0% for the nine-month periods ended September 30, 2020 and 2019, respectively. The 2020 and 2019 effective tax rates for the three and nine-month periods differ from the statutory rate of 21% primarily due to the tax-exempt interest received from municipal bonds. |
Investment in Securities
Investment in Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Securities | Note 11 – Investment in Securities Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: September 30, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 285,667 $ 19,249 $ 22 $ 304,894 U.S. government agencies 59,294 977 — 60,271 Total $ 344,961 $ 20,226 $ 22 $ 365,165 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 -16- The fair values of securities with unrealized losses at September 30, 2020 are as follows: September 30, 2020 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 U.S. government agencies $ 1,793 $ 22 $ — $ — $ 1,793 $ 22 Total $ 1,793 22 — — 1,793 22 The fair values of securities with unrealized losses at December 31, 2019 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 U.S. government agencies $ 3,801 $ 12 $ 17,593 $ 157 $ 21,394 $ 169 Total $ 3,801 $ 12 $ 17,593 $ 157 $ 21,394 $ 169 There were 2 securities, or 1% of the total ( none The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2020 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 49,435 $ 49,876 Due after 1 year through 5 years 93,433 98,084 Due after 5 years through 10 years 172,368 186,537 Due after 10 years 29,725 30,668 Total $ 344,961 $ 365,165 Proceeds from sales of investment securities classified as available-for-sale were $0 for each of the three month periods ended September 30, 2020 and 2019, and were $19,629,000 and $4,648,000 for the nine months ended September 30, 2020 and 2019, respectively. There were no gross realized gains for the three months ended September 30, 2020 or 2019. Gross realized gains were $1,069,000 and $19,000 for the nine months ended September 30, 2020 and 2019, respectively. There were no securities pledged to secure public deposits and for other purposes at September 30, 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 12 – Fair Value of Financial Instruments Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: September 30, 2020 December 31, 2019 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 439,451 $ 439,451 $ 203,954 $ 203,954 Investment securities 365,165 365,165 422,665 422,665 Loans, net 933,259 931,172 762,082 776,653 Accrued interest receivable 6,300 6,300 6,706 6,706 Total $ 1,744,175 $ 1,742,088 $ 1,395,407 $ 1,409,978 Balance sheet liabilities: Deposits $ 911,185 $ 911,185 $ 757,136 $ 757,790 Accounts and drafts payable 771,607 771,607 684,295 684,295 Accrued interest payable 125 125 103 103 Total $ 1,682,917 $ 1,682,917 $ 1,441,534 $ 1,442,188 -17- The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents Investment in Securities Loans Accrued Interest Receivable Deposits Accounts and Drafts Payable Accrued Interest No financial instruments are measured using Level 3 inputs for the three months ended September 30, 2020 and 2019. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 13 – Revenue from Contracts with Customers The services that fall within the scope of FASB ASC 606, Revenue from Contracts with Customers Invoice processing fees Invoice payment fees Bank service fees OREO -18- For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 18,650 $ 20,408 $ 55,697 $ 61,397 Invoice payment fees 5,726 7,333 16,843 19,653 Information services payment and processing revenue 24,376 27,741 72,540 81,050 Bank service fees 441 307 1,249 984 Fee revenue (in-scope of FASB ASC 606) 24,817 28,048 73,789 82,034 Other income (out-of-scope of FASB ASC 606) 115 214 1,412 613 Total fee revenue and other income 24,932 28,262 75,201 82,647 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) 1 10,814 12,274 32,623 35,653 Total net revenue $ 35,746 $ 40,536 $ 107,824 $ 118,300 1 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 14 – Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02 – Leases (ASC Topic 842) A maturity analysis of operating lease liabilities and undiscounted cash flows as of September 30, 2020 is as follows: (In thousands) September 30, 2020 Lease payments due Less than 1 year $ 1,819 1-2 years 1,683 2-3 years 1,062 3-4 years 502 4-5 years 512 Over 5 years 2,150 Total undiscounted cash flows 7,728 Discount on cash flows 1,175 Total lease liability $ 6,553 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the nine months ended September 30, 2020. At September 30, 2020, the Company did not have any leases that had not yet commenced. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events In accordance with FASB ASC 855, Subsequent Events |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: September 30, 2020 December 31, 2019 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Assets eligible for amortization: Customer lists $ 4,778 $ (3,793) $ 4,778 $ (3,463) Patents 72 (23) 72 (20) Non-compete agreements 332 (332) 332 (332) Software 2,844 (638) 2,844 (358) Trade Name 190 (10) 190 (3) Other 500 (283) 500 (259) Unamortized intangible assets: Goodwill 1 14,489 (227) 14,489 (227) Total intangible assets $ 23,205 $ (5,306) $ 23,205 $ (4,662) 1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding and the weighted-average number of potential common shares outstanding. 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. The calculations of basic and diluted earnings per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share and per share data) 2020 2019 2020 2019 Basic: Net income $ 5,781 $ 8,186 $ 18,765 $ 24,033 Weighted-average common shares outstanding 14,348,151 14,417,725 14,373,243 14,435,670 Basic earnings per share $ .40 $ .57 $ 1.31 $ 1.66 Diluted: Net income $ 5,781 $ 8,186 $ 18,765 $ 24,033 Weighted-average common shares outstanding 14,348,151 14,417,725 14,373,243 14,435,670 Effect of dilutive restricted stock and stock appreciation rights 198,336 262,917 200,723 258,123 Weighted-average common shares outstanding assuming dilution 14,546,487 14,680,642 14,573,966 14,693,793 Diluted earnings per share $ .40 $ .56 $ 1.29 $ 1.64 |
Industry Segment Information (T
Industry Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Company's Operations in Each Segment | Summarized information about the Company’s operations in each industry segment is as follows: (In thousands) Information Services Banking Services Corporate, Eliminations and Other Total Three Months Ended September 30, 2020 Fee income $ 24,198 $ 651 $ 83 $ 24,932 Interest income* 6,306 7,212 (1,773) 11,745 Interest expense ─ 465 ─ 465 Intersegment income (expense) ─ 593 (593) ─ Tax-equivalized pre-tax income* 5,718 3,506 (1,692) 7,532 Goodwill 12,433 1,829 ─ 14,262 Other intangible assets, net 837 2,800 ─ 3,637 Total assets 905,158 1,105,845 (10,540) 2,000,463 Average funding sources 751,010 780,217 ─ 1,531,227 Three Months Ended September 30, 2019 Fee income $ 28,026 $ 257 $ (21) $ 28,262 Interest income* 6,760 7,930 (513) 14,177 Interest expense — 1,392 — 1,392 Intersegment income (expense) — 533 (533) — Tax-equivalized pre-tax income* 7,619 3,399 (534) 10,484 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total assets 908,946 862,142 9,922 1,781,010 Average funding sources 704,772 588,226 — 1,292,998 Nine Months Ended September 30, 2020: Fee income $ 72,098 $ 1,906 $ 1,197 $ 75,201 Interest income* 18,153 21,097 (2,567) 36,683 Interest expense ─ 1,911 ─ 1,911 Intersegment income (expense) ─ 1,674 (1,674) ─ Tax-equivalized pre-tax income* 16,462 9,190 (1,370) 24,282 Goodwill 12,433 1,829 ─ 14,262 Other intangible assets, net 837 2,800 ─ 3,637 Total assets 905,158 1,105,845 (10,540) 2,000,463 Average funding sources 703,142 712,903 ─ 1,416,045 Nine Months Ended September 30, 2019 Fee income $ 82,049 $ 1,040 $ (442) $ 82,647 Interest income* 19,273 23,082 (883) 41,472 Interest expense — 3,987 — 3,987 Intersegment income (expense) — 1,587 (1,587) — Tax-equivalized pre-tax income* 21,997 10,214 (1,324) 30,887 Goodwill 15,758 136 — 15,894 Other intangible assets, net 3,170 — — 3,170 Total assets 908,946 862,142 9,922 1,781,010 Average funding sources 667,741 583,458 — 1,251,199 * Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2020 and 2019. The tax-equivalent adjustment was approximately $466,000 and $511,000 for the Three Months Ended 2020 and 2019, respectively, and $1,424,000 and $1,583,000 for the Nine Months Ended 2020 and 2019, respectively. |
Loans by Type (Tables)
Loans by Type (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: (In thousands) September 30, 2020 December 31, 2019 Commercial and industrial $ 301,886 $ 323,857 Paycheck protection program (“PPP”) 172,211 — Real estate: Commercial: Mortgage 94,792 101,654 Construction 23,795 25,299 Faith-based: Mortgage 331,419 305,826 Construction 20,452 15,945 Other 2 57 Total loans $ 944,557 $ 772,638 |
Schedule of the Aging Loans by Loan Categories | The following table presents the aging of loans by loan categories at September 30, 2020 and December 31, 2019: Performing Nonperforming (In thousands) Current 30-59 Days 60-89 Days 90 Days and Over Non- accrual Total Loans September 30, 2020 Commercial and industrial $ 301,886 $ — $ — $ — $ — $ 301,886 PPP 172,211 — — — — 172,211 Real estate: Commercial: Mortgage 94,792 — — — — 94,792 Construction 23,795 — — — — 23,795 Faith-based: Mortgage 331,419 — — — — 331,419 Construction 20,452 — — — — 20,452 Other 2 — — — — 2 Total $ 944,557 $ — $ — $ — $ — $ 944,557 December 31, 2019 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 |
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 September 30, 2020 and 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 September 30, 2020 Commercial and industrial $ 288,060 $ 13,826 $ — $ 301,886 PPP 172,211 — — 172,211 Real estate: Commercial: Mortgage 93,370 1,422 — 94,792 Construction 23,795 — — 23,795 Faith-based: Mortgage 328,285 3,134 — 331,419 Construction 20,452 — — 20,452 Other 2 — — 2 Total $ 926,175 $ 18,382 $ — $ 944,557 December 31, 2019 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 2 |
Schedule of Recorded Investment and Unpaid Principal Balance for Impaired Loans | The following table presents the recorded investment and unpaid principal balance for impaired loans at September 30, 2020. There were no impaired loans at December 31, 2019 or September 30, 2019. (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance for Loan Losses Commercial and industrial: $ 11,782 $ 11,782 $ 500 Real estate: Faith-based: Mortgage 1,038 1,038 — Total impaired loans $ 12,820 $ 12,820 $ 500 |
Summary of the Allowance for Loan Losses | A summary of the activity in the allowance for loan losses from December 31, 2019 to September 30, 2020 is as follows: (In thousands) December 31, 2019 Charge- Offs Recoveries Provision September 30, 2020 Commercial and industrial $ 4,874 $ — $ 16 $ 211 $ 5,101 Real estate: Commercial: Mortgage 1,528 — — (34) 1,494 Construction 191 — — (2) 189 Faith-based: Mortgage 3,842 — 1 510 4,353 Construction 121 — — 40 161 Total $ 10,556 $ — $ 17 $ 725 $ 11,298 A summary of the activity in the allowance for loan losses from December 31, 2018 to September 30, 2019 is as follows: (In thousands) December 31, 2018 Charge- Offs Recoveries Provision September 30, 2019 Commercial and industrial $ 4,179 $ — $ 34 $ 672 $ 4,885 Real estate: Commercial: Mortgage 1,417 — — (161) 1,256 Construction 89 — — 91 180 Faith-based: Mortgage 3,961 — — 32 3,993 Construction 155 — — (38) 117 Other 424 — — (346) 78 Total $ 10,225 $ — $ 34 $ 250 $ 10,509 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Cash Obligation of Operating Lease Commitments | The following table summarizes contractual cash obligations of the Company related to time deposits at September 30, 2020: Amount of Commitment Expiration per Period (In thousands) Total Less than 1 Year 1-3 Years 3-5 Years Over 5 Years Time deposits $ 65,086 $ 45,574 $ 19,438 $ 74 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | Following is a summary of the activity of the restricted stock: Nine Months Ended September 30, 2020 Shares Fair Value Balance at December 31, 2019 123,272 $ 47.24 Granted 33,568 47.83 Vested (20,369) 49.32 Forfeited (4,962) 50.08 Balance at September 30, 2020 131,509 $ 46.96 |
Summary of PBRS Activity | Following is a summary of the activity of the PBRS, based on target value: Nine Months Ended September 30, 2020 Shares Fair Value Balance at December 31, 2019 102,116 $ 49.13 Granted 32,910 54.02 Vested (29,175) 49.33 Forfeited (7,441) 50.08 Balance at September 30, 2020 98,410 $ 50.64 |
Summary of SARs Activity | There were no SARs granted and no expense recognized during the three months ended September 30, 2020. Following is a summary of the activity of the Company’s SARs program for the nine-month period ended September 30, 2020: Shares Weighted- Average Exercise Price Average Remaining Contractual Term Years Aggregate Intrinsic Value (In thousands) Balance at December 31, 2019 155,292 $ 32.58 2.92 $ 3,908 Exercised (10,293) 26.72 — — Exercisable at September 30, 2020 144,999 $ 32.99 2.20 $ 1,247 |
Defined Pension Plans (Tables)
Defined Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs | The Company has a noncontributory defined-benefit pension plan, which covers eligible employees. Effective December 31, 2016, the plan was closed to all new participants. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years. Disclosure information is based on a measurement date of December 31 of the corresponding year. The following table represents the components of the net periodic pension costs: (In thousands) Estimated 2020 Actual 2019 Service cost – benefits earned during the year $ 4,329 $ 3,555 Interest cost on projected benefit obligations 3,908 4,103 Expected return on plan assets (6,049) (4,753) Net amortization 1,946 1,559 Net periodic pension cost $ 4,134 $ 4,464 |
Schedule of Unfunded Supplemental Executive Retirement Plan | In addition to the above funded benefit plan, the Company has an unfunded supplemental executive retirement plan which covers key executives of the Company. This is a noncontributory plan in which the Company and its subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as its defined benefit plan. The following table represents the components of the net periodic pension costs for 2019 and an estimate for 2020: (In thousands) Estimated 2020 Actual 2019 Service cost – benefits earned during the year $ 121 $ 97 Interest cost on projected benefit obligation 347 408 Net amortization 112 276 Net periodic pension cost $ 580 $ 781 |
Investment in Securities (Table
Investment in Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows: September 30, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 285,667 $ 19,249 $ 22 $ 304,894 U.S. government agencies 59,294 977 — 60,271 Total $ 344,961 $ 20,226 $ 22 $ 365,165 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 |
Schedule of the Fair Value of Securities with Unrealized Losses | The fair values of securities with unrealized losses at September 30, 2020 are as follows: September 30, 2020 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 U.S. government agencies $ 1,793 $ 22 $ — $ — $ 1,793 $ 22 Total $ 1,793 22 — — 1,793 22 The fair values of securities with unrealized losses at December 31, 2019 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 U.S. government agencies $ 3,801 $ 12 $ 17,593 $ 157 $ 21,394 $ 169 Total $ 3,801 $ 12 $ 17,593 $ 157 $ 21,394 $ 169 |
Schedule of Amortized Cost and Fair Value of Investment | The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2020 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 49,435 $ 49,876 Due after 1 year through 5 years 93,433 98,084 Due after 5 years through 10 years 172,368 186,537 Due after 10 years 29,725 30,668 Total $ 344,961 $ 365,165 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of the Fair Value of Financial Instruments | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: September 30, 2020 December 31, 2019 (In thousands) Carrying Amount Fair Value Carrying Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 439,451 $ 439,451 $ 203,954 $ 203,954 Investment securities 365,165 365,165 422,665 422,665 Loans, net 933,259 931,172 762,082 776,653 Accrued interest receivable 6,300 6,300 6,706 6,706 Total $ 1,744,175 $ 1,742,088 $ 1,395,407 $ 1,409,978 Balance sheet liabilities: Deposits $ 911,185 $ 911,185 $ 757,136 $ 757,790 Accounts and drafts payable 771,607 771,607 684,295 684,295 Accrued interest payable 125 125 103 103 Total $ 1,682,917 $ 1,682,917 $ 1,441,534 $ 1,442,188 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers | OREO -18- For the Three Months Ended September 30, For the Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Fee revenue and other income In-scope of FASB ASC 606 Invoice processing fees $ 18,650 $ 20,408 $ 55,697 $ 61,397 Invoice payment fees 5,726 7,333 16,843 19,653 Information services payment and processing revenue 24,376 27,741 72,540 81,050 Bank service fees 441 307 1,249 984 Fee revenue (in-scope of FASB ASC 606) 24,817 28,048 73,789 82,034 Other income (out-of-scope of FASB ASC 606) 115 214 1,412 613 Total fee revenue and other income 24,932 28,262 75,201 82,647 Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) 1 10,814 12,274 32,623 35,653 Total net revenue $ 35,746 $ 40,536 $ 107,824 $ 118,300 1 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and undiscounted cash flows as of September 30, 2020 is as follows: (In thousands) September 30, 2020 Lease payments due Less than 1 year $ 1,819 1-2 years 1,683 2-3 years 1,062 3-4 years 502 4-5 years 512 Over 5 years 2,150 Total undiscounted cash flows 7,728 Discount on cash flows 1,175 Total lease liability $ 6,553 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 215 | $ 150 | $ 644 | $ 359 |
2020 | 859 | 859 | ||
2021 | 859 | 859 | ||
2022 | 540 | 540 | ||
2023 | 540 | 540 | ||
2024 | $ 498 | $ 498 | ||
Customer Lists [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 7 years | |||
Customer Lists [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 10 years | |||
Patents [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 18 years | |||
Non-compete Agreements [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 2 years | |||
Non-compete Agreements [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 5 years | |||
Software [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 3 years | |||
Software [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 7 years | |||
Trade Name [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 20 years | |||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets amortization period | 15 years |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Company's Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Unamortized intangible assets: | |||
Goodwill, Gross Carrying Amount | [1] | $ 14,489 | $ 14,489 |
Goodwill, Accumulated Amortization | [1] | (227) | (227) |
Total intangible assets | 23,205 | 23,205 | |
Accumulated Amortization | (5,306) | (4,662) | |
Customer Lists [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 4,778 | 4,778 | |
Accumulated Amortization | (3,793) | (3,463) | |
Patents [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 72 | 72 | |
Accumulated Amortization | (23) | (20) | |
Non-compete Agreements [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 332 | 332 | |
Accumulated Amortization | (332) | (332) | |
Software [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 2,844 | 2,844 | |
Accumulated Amortization | (638) | (358) | |
Trade Name [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 190 | 190 | |
Accumulated Amortization | (10) | (3) | |
Other [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | $ (283) | $ (259) | |
[1] | Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic: | ||||
Net income | $ 5,781 | $ 8,186 | $ 18,765 | $ 24,033 |
Weighted-average common shares outstanding | 14,348,151 | 14,417,725 | 14,373,243 | 14,435,670 |
Basic earnings per share | $ 0.40 | $ 0.57 | $ 1.31 | $ 1.66 |
Diluted: | ||||
Net Income | $ 5,781 | $ 8,186 | $ 18,765 | $ 24,033 |
Weighted-average common shares outstanding | 14,348,151 | 14,417,725 | 14,373,243 | 14,435,670 |
Effect of dilutive restricted stock and stock appreciation rights | 198,336 | 262,917 | 200,723 | 258,123 |
Weighted-average common shares outstanding assuming dilution | 14,546,487 | 14,680,642 | 14,573,966 | 14,693,793 |
Diluted earnings per share | $ 0.40 | $ 0.56 | $ 1.29 | $ 1.64 |
Stock Repurchases (Details)
Stock Repurchases (Details) - shares | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 30, 2020 | |
Number of shares authorized to be repurchased | 500,000 | ||
Shares repurchased | 128,779 | 154,593 | |
Remaining number of shares available for repurchase | 371,221 | ||
Subsequent Event [Member] | |||
Number of shares authorized to be repurchased | 500,000 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Fee revenue and other income: | ||||||
Fee income | $ 24,932 | $ 28,262 | $ 75,201 | $ 82,647 | ||
Interest income | [1] | 11,745 | 14,177 | 36,683 | 41,472 | |
Interest expense | 465 | 1,392 | 1,911 | 3,987 | ||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 7,532 | 10,484 | 24,282 | 30,887 | |
Goodwill | 14,262 | 15,894 | 14,262 | 15,894 | $ 14,262 | |
Other intangible assets, net | 3,637 | 3,170 | 3,637 | 3,170 | ||
Total assets | 2,000,463 | 1,781,010 | 2,000,463 | 1,781,010 | $ 1,764,243 | |
Average funding sources | 1,531,227 | 1,292,998 | $ 1,416,045 | $ 1,251,199 | ||
Tax-equivalent basis tax rate | 21.00% | 21.00% | ||||
Tax-equivalent adjustment | 466 | 511 | $ 1,424 | $ 1,583 | ||
Information Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income | 24,198 | 28,026 | 72,098 | 82,049 | ||
Interest income | [1] | 6,306 | 6,760 | 18,153 | 19,273 | |
Interest expense | ||||||
Intersegment income (expense) | ||||||
Tax-equivalized pre-tax income | [1] | 5,718 | 7,619 | 16,462 | 21,997 | |
Goodwill | 12,433 | 15,758 | 12,433 | 15,758 | ||
Other intangible assets, net | 837 | 3,170 | 837 | 3,170 | ||
Total assets | 905,158 | 908,946 | 905,158 | 908,946 | ||
Average funding sources | 751,010 | 704,772 | 703,142 | 667,741 | ||
Banking Services [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income | 651 | 257 | 1,906 | 1,040 | ||
Interest income | [1] | 7,212 | 7,930 | 21,097 | 23,082 | |
Interest expense | 465 | 1,392 | 1,911 | 3,987 | ||
Intersegment income (expense) | 593 | 533 | 1,674 | 1,587 | ||
Tax-equivalized pre-tax income | [1] | 3,506 | 3,399 | 9,190 | 10,214 | |
Goodwill | 1,829 | 136 | 1,829 | 136 | ||
Other intangible assets, net | 2,800 | 2,800 | ||||
Total assets | 1,105,845 | 862,142 | 1,105,845 | 862,142 | ||
Average funding sources | 780,217 | 588,226 | 712,903 | 583,458 | ||
Corporate, Eliminations and Other [Member] | ||||||
Fee revenue and other income: | ||||||
Fee income | 83 | (21) | 1,197 | (442) | ||
Interest income | [1] | (1,773) | (513) | (2,567) | (883) | |
Interest expense | ||||||
Intersegment income (expense) | (593) | (533) | (1,674) | (1,587) | ||
Tax-equivalized pre-tax income | [1] | (1,692) | (534) | (1,370) | (1,324) | |
Goodwill | ||||||
Other intangible assets, net | ||||||
Total assets | (10,540) | 9,922 | (10,540) | 9,922 | ||
Average funding sources | ||||||
[1] | Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2020 and 2019. The tax-equivalent adjustment was approximately $466,000 and $511,000 for the Three Months Ended 2020 and 2019, respectively, and $1,424,000 and $1,583,000 for the Nine Months Ended 2020 and 2019, respectively. |
Loans by Type (Narrative) (Deta
Loans by Type (Narrative) (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Receivables [Abstract] | ||
Number of PPP loans processed during Covid 19 | 350 | |
Loan processed under PPP loans during Covid 19 | $ 170,000 | |
Percentage of guarantee by small business administration during Covid 19 | 100.00% | |
Impaired loans, ALLL | $ 2,500 | |
Loans classified as troubled debt restructuring | $ 10,320 |
Loans by Type (Summary of Loan
Loans by Type (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Participating Mortgage Loans [Line Items] | ||
Loans | $ 944,557 | $ 772,638 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 301,886 | 323,857 |
Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 172,211 | |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 94,792 | 101,654 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 23,795 | 25,299 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 331,419 | 305,826 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | 20,452 | 15,945 |
Other Loan [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Loans | $ 2 | $ 57 |
Loans by Type (Schedule of the
Loans by Type (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 944,557 | 772,638 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 301,886 | 323,857 |
Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 172,211 | |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 94,792 | 101,654 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 23,795 | 25,299 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 331,419 | 305,826 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 20,452 | 15,945 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Nonaccrual | ||
Loans | 2 | 57 |
Current [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 944,557 | 772,638 |
Current [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 301,886 | 323,857 |
Current [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 172,211 | |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 94,792 | 101,654 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 23,795 | 25,299 |
Current [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 331,419 | 305,826 |
Current [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 20,452 | 15,945 |
Current [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Current | 2 | 57 |
30 to 59 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
30 to 59 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
60 to 89 Days Past Due [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Paycheck protection program ("PPP") [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due | ||
90 Days and Over [Member] | Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Past due |
Loans by Type (Schedule of th_2
Loans by Type (Schedule of the Credit Exposure of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Participating Mortgage Loans [Line Items] | |||
Loans | $ 944,557 | $ 772,638 | |
Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 926,175 | 767,714 |
Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 18,382 | 4,924 |
Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Commercial and Industrial [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 301,886 | 323,857 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 288,060 | 321,554 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 13,826 | 2,303 |
Commercial and Industrial [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Paycheck protection program ("PPP") [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 172,211 | ||
Paycheck protection program ("PPP") [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 172,211 | |
Paycheck protection program ("PPP") [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Paycheck protection program ("PPP") [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 94,792 | 101,654 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 93,370 | 100,346 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 1,422 | 1,308 |
Real Estate Commercial Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Construction [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 23,795 | 25,299 | |
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 23,795 | 25,299 |
Real Estate Commercial Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Commercial Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Faith-based Mortgage [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 331,419 | 305,826 | |
Real Estate Faith-based Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 328,285 | 304,513 |
Real Estate Faith-based Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | 3,134 | 1,313 |
Real Estate Faith-based Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Faith-based Construction [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 20,452 | 15,945 | |
Real Estate Faith-based Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 20,452 | 15,945 |
Real Estate Faith-based Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Real Estate Faith-based Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Other Financing Receivable [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | 2 | 57 | |
Other Financing Receivable [Member] | Loans Subject To Normal Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [1] | 2 | 57 |
Other Financing Receivable [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
Other Financing Receivable [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Participating Mortgage Loans [Line Items] | |||
Loans | [2] | ||
[1] | Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligations. | ||
[2] | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Loans by Type (Schedule of Reco
Loans by Type (Schedule of Recorded Investment and Unpaid Principal Balance for Impaired Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Related Allowance for Loan Losses | $ 2,500 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 11,782 | |
Unpaid Principal Balance | 11,782 | |
Related Allowance for Loan Losses | 500 | |
Real Estate Faith-based Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 1,038 | |
Unpaid Principal Balance | 1,038 | |
Related Allowance for Loan Losses | ||
Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 12,820 | |
Unpaid Principal Balance | 12,820 | |
Related Allowance for Loan Losses | $ 500 |
Loans by Type (Summary of Allow
Loans by Type (Summary of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | $ 10,556 | $ 10,225 |
Charge-Offs | ||
Recoveries | 17 | 34 |
Provision | 725 | 250 |
Ending Balance | 11,298 | 10,509 |
Commercial and Industrial [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 4,874 | 4,179 |
Charge-Offs | ||
Recoveries | 16 | 34 |
Provision | 211 | 672 |
Ending Balance | 5,101 | 4,885 |
Real Estate Commercial Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 1,528 | 1,417 |
Charge-Offs | ||
Recoveries | ||
Provision | (34) | (161) |
Ending Balance | 1,494 | 1,256 |
Real Estate Commercial Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 191 | 89 |
Charge-Offs | ||
Recoveries | ||
Provision | (2) | 91 |
Ending Balance | 189 | 180 |
Real Estate Faith-based Mortgage [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 3,842 | 3,961 |
Charge-Offs | ||
Recoveries | 1 | |
Provision | 510 | 32 |
Ending Balance | 4,353 | 3,993 |
Real Estate Faith-based Construction [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 121 | 155 |
Charge-Offs | ||
Recoveries | ||
Provision | 40 | (38) |
Ending Balance | $ 161 | 117 |
Other Financing Receivable [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Beginning Balance | 424 | |
Charge-Offs | ||
Recoveries | ||
Provision | (346) | |
Ending Balance | $ 78 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unused loan commitments | $ 193,272 |
Standby letters of credit | 10,337 |
Commercial letters of credit | $ 1,015 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Company's Contractual Cash Obligations) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Time Deposits, Less than 1 Year | $ 45,574 |
Time Deposits, 1 to 3 Years | 19,438 |
Time Deposits, 3 to 5 Years | 74 |
Time Deposits, over 5 Years | |
Time Deposits, Total | $ 65,086 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity Incentive Plan, shares authorized | 1,500,000 | 1,500,000 | ||
Stock-based compensation expense | $ 800 | $ 869 | $ 2,277 | $ 2,286 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 1,674 | $ 1,674 | ||
Total unrecognized compensation expense, weighted average period | 8 months 9 days | |||
Vesting period | 3 years | |||
Granted, Shares | 33,568 | |||
Performance-based restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Granted, Shares | 32,910 | |||
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% | |||
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% | |||
Performance-based restricted shares [Member] | June 2020 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 34,222 | |||
Percentage of target opportunity for awards to vest | 117.30% | |||
Expiry period | 3 years | |||
Performance-based restricted shares [Member] | June 2020 [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target opportunity for awards to vest | 0.00% | |||
Performance-based restricted shares [Member] | June 2020 [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target opportunity for awards to vest | 150.00% | |||
SARs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 0 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Beginning balance | shares | 123,272 |
Granted | shares | 33,568 |
Vested | shares | (20,369) |
Forfeited | shares | (4,962) |
Ending balance | shares | 131,509 |
Fair Value | |
Beginning balance | $ / shares | $ 47.24 |
Granted | $ / shares | 47.83 |
Vested | $ / shares | 49.32 |
Forfeited | $ / shares | 50.08 |
Ending balance | $ / shares | $ 46.96 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of PBRS Activity) (Details) - Performance-Based Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Beginning balance | shares | 102,116 |
Granted | shares | 32,910 |
Vested | shares | (29,175) |
Forfeited | shares | (7,441) |
Ending balance | shares | 98,410 |
Fair Value | |
Beginning balance | $ / shares | $ 49.13 |
Granted | $ / shares | 54.02 |
Vested | $ / shares | 49.33 |
Forfeited | $ / shares | 50.08 |
Ending balance | $ / shares | $ 50.64 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of Company's SARs Activity) (Details) - SARs [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance | shares | 155,292 |
Exercised | shares | (10,293) |
Exercisable | shares | 144,999 |
Beginning balance, Weighted-Average Exercise Price | $ / shares | $ 32.58 |
Exercised, Weighted-Average Exercise Price | $ / shares | 26.72 |
Exercisable, Weighted-Average Exercise Price | $ / shares | $ 32.99 |
Beginning balance, Average Remaining Contractual Term Years | 2 years 11 months 1 day |
Exercisable, Average Remaining Contractual Term Years | 2 years 2 months 12 days |
Beginning balance, Aggregate Intrinsic Value | $ | $ 3,908 |
Exercisable, Aggregate Intrinsic Value | $ | $ 1,247 |
Defined Pension Plans (Narrativ
Defined Pension Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension period | 30 years | |||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 1,103 | $ 1,178 | $ 3,159 | $ 3,543 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension costs | $ 145 | $ 195 | $ 435 | $ 586 |
Defined Pension Plans (Schedule
Defined Pension Plans (Schedule of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | $ 4,329 | $ 3,555 |
Interest cost on projected benefit obligations | 3,908 | 4,103 |
Expected return on plan assets | (6,049) | (4,753) |
Net amortization | 1,946 | 1,559 |
Net periodic pension cost | 4,134 | 4,464 |
Unfunded Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | 121 | 97 |
Interest cost on projected benefit obligations | 347 | 408 |
Net amortization | 112 | 276 |
Net periodic pension cost | $ 580 | $ 781 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.20% | 17.90% | 17.90% | 18.00% |
Statutory federal tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Number of securities that had an unrealized loss | 2 | 2 | 9 | ||
Number of securities that had an unrealized loss, greater than 12 months | 7 | ||||
Percentage of total securities | 1.00% | 1.00% | 3.00% | ||
Proceeds from sales of securities available-for-sale | $ 0 | $ 0 | $ 19,629 | $ 4,648 | |
Gross realized gains | $ 1,069 | $ 19 |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Fair Value | $ 365,165 | $ 422,665 |
Gross Unrealized Gains | 20,226 | 14,234 |
Gross Unrealized Losses | 22 | 169 |
Amortized Cost | 344,961 | 408,600 |
State and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 304,894 | 324,447 |
Gross Unrealized Gains | 19,249 | 13,727 |
Gross Unrealized Losses | 22 | |
Amortized Cost | 285,667 | 310,720 |
U.S. government agencies [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 60,271 | 97,718 |
Gross Unrealized Gains | 977 | 507 |
Gross Unrealized Losses | 169 | |
Amortized Cost | $ 59,294 | 97,380 |
Certificates of Deposit [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value | 500 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Amortized Cost | $ 500 |
Investment in Securities (Sch_2
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Estimated fair value, less than 12 months | $ 1,793 | $ 3,801 |
Estimated fair value, 12 months or more | 17,593 | |
Estimated fair value, total | 1,793 | 21,394 |
Unrealized losses, less than 12 months | 22 | 12 |
Unrealized losses, 12 months or more | 157 | |
Unrealized losses, total | 22 | 169 |
U.S. government agencies [Member] | ||
Marketable Securities [Line Items] | ||
Estimated fair value, less than 12 months | 1,793 | 3,801 |
Estimated fair value, 12 months or more | 17,593 | |
Estimated fair value, total | 1,793 | 21,394 |
Unrealized losses, less than 12 months | 22 | 12 |
Unrealized losses, 12 months or more | 157 | |
Unrealized losses, total | $ 22 | $ 169 |
Investment in Securities (Sch_3
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 49,435 | |
Amortized Cost, Due after 1 year through 5 years | 93,433 | |
Amortized Cost, Due after 5 years through 10 years | 172,368 | |
Amortized Cost, Due after 10 years | 29,725 | |
Amortized Cost, Total | 344,961 | |
Fair Value, Due in 1 year or less | 49,876 | |
Fair Value, Due after 1 year through 5 years | 98,084 | |
Fair Value, Due after 5 years through 10 years | 186,537 | |
Fair Value, Due after 10 years | 30,668 | |
Fair Value, Total | $ 365,165 | $ 422,665 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 439,451 | $ 203,954 | $ 222,738 | $ 230,933 |
Investment securities, Carrying Amount | 365,165 | 422,665 | ||
Loans, net, Carrying Amount | 933,259 | 762,082 | ||
Accrued interest receivable, Carrying Amount | 6,300 | 6,706 | ||
Assets, Carrying Amount | 1,744,175 | 1,395,407 | ||
Cash and cash equivalents, Fair Value | 439,451 | 203,954 | ||
Investment securities, Fair Value | 365,165 | 422,665 | ||
Loans, net, Fair Value | 931,172 | 776,653 | ||
Accrued interest receivable, Fair Value | 6,300 | 6,706 | ||
Assets, Fair Value | 1,742,088 | 1,409,978 | ||
Deposits, Carrying Amount | 911,185 | 757,136 | ||
Accounts and drafts payable, Carrying Amount | 771,607 | 684,295 | ||
Accrued interest payable, Carrying Amount | 125 | 103 | ||
Liabilities, Carrying Amount | 1,682,917 | 1,441,534 | ||
Deposits, Fair Value | 911,185 | 757,790 | ||
Accounts and drafts payable, Fair Value | 771,607 | 684,295 | ||
Accrued interest payable, Fair Value | 125 | 103 | ||
Liabilities, Fair Value | $ 1,682,917 | $ 1,442,188 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Fee revenue and other income: | |||||
In-scope of FASB ASC 606 - Invoice processing fees | $ 18,650 | $ 20,408 | $ 55,697 | $ 61,397 | |
In-scope of FASB ASC 606 - Invoice payment fees | 5,726 | 7,333 | 16,843 | 19,653 | |
Information services payment and processing revenue | 24,376 | 27,741 | 72,540 | 81,050 | |
Bank service fees | 441 | 307 | 1,249 | 984 | |
Fee revenue (in-scope of FASB ASC 606) | 24,817 | 28,048 | 73,789 | 82,034 | |
Other income (out-of-scope of FASB ASC 606) | 115 | 214 | 1,412 | 613 | |
Total fee revenue and other income | 24,932 | 28,262 | 75,201 | 82,647 | |
Net interest income after provision for loan losses (out-of-scope of FASB ASC 606) | [1] | 10,814 | 12,274 | 32,623 | 35,653 |
Total net revenue | $ 35,746 | $ 40,536 | $ 107,824 | $ 118,300 | |
[1] | The Company earns interest income from the balances generated during the invoice processing and payment cycle and on deposit accounts, which is an integral component of the Company’s revenue, but is out-of-scope of FASB ASC 606. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | |||
Lease liabilities | $ 6,553 | $ 6,553 | $ 7,019 |
Right-of-use assets | 5,887 | 5,887 | $ 6,241 |
Short-term lease cost | 19 | 76 | |
Operating lease cost | $ 420 | $ 1,257 | |
Weighted average remaining lease term | 6 years 4 months 24 days | 6 years 4 months 24 days | |
Weighted average discount rate | 5.50% | 5.50% |
Leases (Schedule of operating l
Leases (Schedule of operating lease liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Lease payments due | ||
Less than 1 year | $ 1,819 | |
1-2 years | 1,683 | |
2-3 years | 1,062 | |
3-4 years | 502 | |
4-5 years | 512 | |
Over 5 years | 2,150 | |
Total undiscounted cash flows | 7,728 | |
Discount on cash flows | 1,175 | |
Total lease liability | $ 6,553 | $ 7,019 |