Industry Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Industry Segment Information

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. In addition, this segment provides church management software and on-line generosity services primarily for faith-based ministries. The Banking Services segment provides banking services primarily to privately held businesses, franchise restaurants and faith-based ministries, as well as supporting the banking needs of the Information Services segment.

The Company’s accounting policies for segments are the same as those described in Note 1 of this report. Management evaluates segment performance based on tax-equivalized (as defined in the footnote to the chart on the following table) pre-

tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value.

Substantially all revenue originates from, and all long-lived assets are located within the United States, and no revenue from any customer of any segment exceeds 10% of the Company’s consolidated revenue.

Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Banking Services interest income is determined by actual interest income on loans minus actual interest expense paid on deposits plus/minus an allocation for interest income or expense dependent on the remaining available liquidity of the segment. Information Services interest income is determined by multiplying available liquidity by actual yields on short-term investments and investment securities.

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 for the years ended December 31, 2022, 2021 and 2020 is as follows:

(In thousands)	Information Services		Banking Services		Corporate, Eliminations and Other		Total
2022
Fee income	$	120,234	$	3,606	$	1,142	$	124,982
Interest income*	28,528		40,913		(5,426)		64,015
Interest expense	166		4,143		(827)		3,482
Intersegment income (expense)	(3,350)		3,350		—		—
Tax-equivalized pre-tax income*	26,478		21,566		(3,455)		44,589
Goodwill	17,173		136		—		17,309
Other intangible assets, net	4,126		—		—		4,126
Total assets	1,595,939		1,182,439		(205,355)		2,573,023
Average funding sources	1,379,355		953,346		—		2,332,701
2021
Fee income	$	106,678	$	1,405	$	1,608	$	109,691
Interest income*	24,332		24,732		(1,694)		47,370
Interest expense	—		1,171		—		1,171
Intersegment income (expense)	(3,222)		3,222		—		—
Tax-equivalized pre-tax income*	25,446		11,004		(756)		35,694
Goodwill	14,126		136		—		14,262
Other intangible assets, net	2,564		—		—		2,564
Total assets	1,450,594		1,090,626		13,681		2,554,901
Average funding sources	1,150,493		876,018		—		2,026,511
2020
Fee income	$	97,640	$	1,515	$	1,286	$	100,441
Interest income*	20,343		29,494		(261)		49,576
Interest expense	—		2,362		—		2,362
Intersegment income (expense)	(2,315)		2,315		—		—
Tax-equivalized pre-tax income*	16,230		14,973		1,027		32,230
Goodwill	14,126		136		—		14,262
Other intangible assets, net	3,423		—		—		3,423
Total assets	1,188,745		997,483		17,007		2,203,235
Average funding sources	902,486		737,962		—		1,640,448

*Presented on a tax-equivalent basis assuming a tax rate of 21%. The tax-equivalent adjustment was approximately $1.7 million for 2022, $1.9 million for 2021, and $1.9 million for 2020.