Industry Segment Information

6 Months Ended

Jun. 30, 2021

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, 2020. 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.

-10-

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

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

•

Information Services – one or more fixed rates depending upon the specific characteristics of the funding source, and

•

Banking Services – a variable rate that is based upon the overall performance of the Company’s earning assets.

Any difference between total segment interest income and overall total Company interest income is included in Corporate, Eliminations, and Other.

-11-

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 June 30, 2021:
Fee income	$	26,098	$	612	$	277	$	26,987
Interest income*		5,884		6,563		(853)		11,594
Interest expense		—		297		—		297
Intersegment income (expense)		—		688		(688)		—
Tax-equivalized pre-tax income*		6,404		3,432		(743)		9,093
Goodwill		12,433		1,829		—		14,262
Other intangible assets, net		532		2,461		—		2,993
Total assets		1,062,536		1,215,799		(6,002)		2,272,333
Average funding sources		905,983		860,956		—		1,766,939
Three Months Ended June 30, 2020:
Fee income	$	22,460	$	640	$	74	$	23,174
Interest income*		4,955		6,601		560		12,116
Interest expense		—		481		—		481
Intersegment income (expense)		—		556		(556)		—
Tax-equivalized pre-tax income*		3,437		2,981		634		7,052
Goodwill		12,433		1,829		—		14,262
Other intangible assets, net		939		2,913		—		3,852
Total assets		822,684		1,109,676		(103,376)		1,828,984
Average funding sources		680,061		746,619		—		1,426,680
Six Months Ended June 30, 2021:
Fee income	$	51,075	$	1,250	$	837	$	53,162
Interest income*		11,393		12,314		(975)		22,732
Interest expense		─		628		—		628
Intersegment income (expense)		—		1,311		(1,311)		—
Tax-equivalized pre-tax income*		12,417		6,194		461		18,150
Goodwill		12,433		1,829		—		14,262
Other intangible assets, net		532		2,461		—		2,993
Total assets		1,062,536		1,215,799		(6,002)		2,272,333
Average funding sources		872,106		855,099		—		1,727,205
Six Months Ended June 30, 2020:
Fee income	$	47,900	$	1,255	$	1,114	$	50,269
Interest income*		9,662		13,885		1,391		24,938
Interest expense		—		1,446		—		1,446
Intersegment income (expense)		—		1,081		(1,081)		—
Tax-equivalized pre-tax income*		8,560		5,684		2,506		16,750
Goodwill		12,433		1,829		—		14,262
Other intangible assets, net		939		2,913		—		3,852
Total assets		822,684		1,109,676		(103,376)		1,828,984
Average funding sources		678,945		678,877		—		1,357,822

* Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2021 and 2020. The tax-equivalent adjustment was approximately $487,000 and $474,000 f for the Second Quarter of 2021 and 2020, respectively, and $949,000 and $958,000 for the First Half of 2021 and 2020, respectively.