Industry Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Industry Segment Information

Note 16
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, processing and capital 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.

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 net income after allocations for corporate expenses and income taxes. 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. Assets represent actual assets owned by Information Services and Banking Services and there is no allocation methodology used. Loans are sold by Banking Services to Information Services to create liquidity to keep the Bank’s loan to deposit ratio within policy limits. Segment interest from customers is the actual interest earned on the loans owned by Information Services and Banking Services, respectively.

Summarized information about the Company’s operations in each industry segment for the years ended December 31, 2017, 2016 and 2015, is as follows:

						Corporate,
	Information		Banking			Eliminations
(In thousands)	Services		Services			and Other			Total
2017
Fee revenue and other income:
Income from customers	$	93,804	$	1,708		$	—		$	95,512
Intersegment income (expense)		13,317		1,545			(14,862	)		—
Net interest income (expense) after provision for loan losses:
Income from customers		13,400		26,390			—			39,790
Intersegment income (expense)		—		—			—			—
Depreciation and amortization		3,784		150			118			4,052
Income taxes		4,326		5,559			—			9,885
Net income		13,597		11,417			—			25,014
Goodwill		12,433		136			—			12,569
Other intangible assets, net		1,996		—			—			1,996
Total assets	$	800,214	$	830,672		$	(27,677	)	$	1,603,209
2016
Fee revenue and other income:
Income from customers	$	84,612	$	1,524		$	—		$	86,136
Intersegment income (expense)		12,164		1,575			(13,739	)		—
Net interest income (expense) after provision for loan losses:
Income from customers		13,820		25,581			—			39,401
Intersegment income (expense)		2		(2	)		—			—
Depreciation and amortization		3,368		165			120			3,653
Income taxes		1,478		6,238			—			7,716
Net income		14,049		10,299			—			24,348
Goodwill		11,454		136			—			11,590
Other intangible assets, net		1,997		—			—			1,997
Total assets	$	763,999	$	756,164		$	(15,324	)	$	1,504,839
2015
Fee revenue and other income:
Income from customers	$	82,144	$	1,224		$	—		$	83,368
Intersegment income (expense)		10,078		1,648			(11,726	)		—
Net interest income (expense) after provision for loan losses:
Income from customers		14,598		22,851			—			37,449
Intersegment income (expense)		12		(12	)		—			—
Depreciation and amortization		3,164		151			101			3,416
Income taxes		2,818		5,160			—			7,978
Net income		14,635		8,421			—			23,056
Goodwill		11,454		136			—			11,590
Other intangible assets, net		2,405		—			—			2,405
Total assets	$	702,491	$	761,739		$	(8,724	)	$	1,455,506