Note 5 – Industry Segment Information

The services provided by the Company are classified into two reportable segments: Information Services and Banking Services. Each of these segments provides distinct services that are marketed through different channels. They are managed separately due to their unique service and processing requirements.

The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and faith-based ministries as well as supporting the banking needs of the Information Services segment.

The Company’s accounting policies for segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Management evaluates segment performance based on tax-equivalized* pre-tax income after allocations for corporate expenses. Transactions between segments are accounted for at what management believes to be fair value.

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

Funding sources represent average balances and deposits generated by Information Services and Banking Services and there is no allocation methodology used. Segment interest income is a function of the relative share of average funding sources generated by each segment multiplied by the following rates:

●	Information Services – fixed or variable rates depending upon the specific characteristics of the funding source, and
●	Banking Services – a variable rate that is based upon the overall performance of Banking Services’ 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:

					Corporate,
	Information		Banking		Eliminations
*(In thousands)*	Services		Services		and Other		Total
Three Months Ended March 31, 2019
Fee income from customers	$	26,796	$	391	$	(174)	$	27,013
Interest income*		6,177		7,486		(225)		13,438
Interest expense		—		1,290		—		1,290
Intersegment income (expense)		—		519		(519)		—
Tax-equivalized pre-tax income*		7,588		3,260		(398)		10,450
Goodwill		12,433		136		—		12,569
Other intangible assets, net		1,446		—		—		1,446
Total Assets		874,971		832,326		(22,416)		1,684,881
Funding Sources		647,590		591,199		—		1,238,789
Three Months Ended March 31, 2018
Fee income from customers	$	24,872	$	376	$	126	$	25,374
Interest income*		6,157		6,895		(1,077)		11,975
Interest expense		—		679		—		679
Intersegment income (expense)		—		462		(462)		—
Tax-equivalized pre-tax income*		7,375		4,064		(951)		10,488
Goodwill		12,433		136		—		12,569
Other intangible assets, net		1,885		—		—		1,885
Total Assets		878,199		858,283		(85,680)		1,650,802
Funding Sources		644,909		595,837		—		1,240,746

*	Presented on a tax-equivalent basis assuming a tax rate of 21% for 2019 and 2018. The tax-equivalent adjustment was approximately $541,000 and $687,000 for the three months ended March 31, 2019 and 2018, respectively.