Industry Segment Information

3 Months Ended

Mar. 31, 2023

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 the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. 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 is as follows:

(In thousands)	Information Services		Banking Services		Corporate, Eliminations and Other		Total
Three Months Ended March 31, 2023:
Fee income	$	31,077	$	711	$	319	$	32,107
Interest income*	9,447		13,177		(2,482)		20,142
Interest expense	98		5,433		(2,287)		3,244
Intersegment income (expense)	(914)		914		—		—
Tax-equivalized pre-tax income*	4,991		3,859		123		8,973
Goodwill	17,173		136		—		17,309
Other intangible assets, net	3,931		—		—		3,931
Total assets	1,526,001		1,167,979		(266,591)		2,427,389
Average funding sources	1,357,035		882,892		—		2,239,927
Three Months Ended March 31, 2022:
Fee income	$	29,184	$	953	$	293	$	30,430
Interest income*	4,350		8,853		(1,077)		12,126
Interest expense	6		225		(8)		223
Intersegment income (expense)	(764)		764		—		—
Tax-equivalized pre-tax income*	5,890		5,161		(776)		10,275
Goodwill	14,126		136		—		14,262
Other intangible assets, net	2,429		—		—		2,429
Total assets	1,338,342		1,088,025		(4,324)		2,422,043
Average funding sources	1,288,407		966,820		—		2,255,227

* Presented on a tax-equivalent basis assuming a tax rate of 21% for both 2023 and 2022. The tax-equivalent adjustment was approximately $321,000 and $446,000 for the first quarter of 2023 and 2022, respectively