DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 19, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CASS INFORMATION SYSTEMS INC | ||
Entity Central Index Key | 708,781 | ||
Trading Symbol | cass | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 12,286,628 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 708,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 17,422 | $ 11,814 |
Interest-bearing deposits in other financial institutions | 152,056 | 136,852 |
Federal funds sold and other short-term investments | 58,632 | 118,077 |
Cash and cash equivalents | 228,110 | 266,743 |
Securities available-for-sale, at fair value | 470,523 | 390,552 |
Loans | 686,231 | 664,866 |
Less allowance for loan losses | 10,205 | 10,175 |
Loans, net | 676,026 | 654,691 |
Premises and equipment, net | 21,586 | 21,086 |
Investments in bank-owned life insurance | 16,927 | 16,445 |
Payments in excess of funding | 139,103 | 105,347 |
Goodwill | 12,569 | 11,590 |
Other intangible assets, net | 1,996 | 1,997 |
Other assets | 36,369 | 36,388 |
Total assets | 1,603,209 | 1,504,839 |
Deposits | ||
Noninterest-bearing | 281,541 | 214,656 |
Interest-bearing | 396,547 | 407,305 |
Total deposits | 678,088 | 621,961 |
Accounts and drafts payable | 661,888 | 642,287 |
Other liabilities | 38,145 | 32,556 |
Total liabilities | 1,378,121 | 1,296,804 |
Shareholders' Equity: | ||
Preferred stock, par value $.50 per share; 2,000,000 shares authorized and no shares issued | ||
Common stock, par value $.50 per share; 40,000,000 shares authorized, 13,047,858 and 11,931,147 shares issued at December 31, 2017 and 2016, respectively | 6,524 | 5,966 |
Additional paid-in capital | 204,631 | 128,455 |
Retained earnings | 59,314 | 118,363 |
Common shares in treasury, at cost (760,962 and 742,681 shares at December 31, 2017 and 2016, respectively) | (32,061) | (30,206) |
Accumulated other comprehensive loss | (13,320) | (14,543) |
Total shareholders' equity | 225,088 | 208,035 |
Total liabilities and shareholders' equity | $ 1,603,209 | $ 1,504,839 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 13,047,858 | 11,931,147 |
Treasury stock, shares | 760,962 | 742,681 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fee Revenue and Other Income: | ||||
Information services payment and processing revenue | $ 93,322 | $ 83,713 | $ 78,622 | |
Bank service fees | 1,349 | 1,276 | 1,223 | |
Gains on sales of securities | 387 | 2,910 | ||
Other | 841 | 760 | 613 | |
Total fee revenue and other income | 95,512 | 86,136 | 83,368 | |
Interest Income: | ||||
Interest and fees on loans | 28,641 | 29,063 | 28,669 | |
Interest and dividends on securities: | ||||
Taxable | 554 | 143 | 38 | |
Exempt from federal income taxes | 10,439 | 9,658 | 9,460 | |
Interest on federal funds sold and other short-term investments | 2,343 | 1,066 | 543 | |
Total interest income | 41,977 | 39,930 | 38,710 | |
Interest Expense: | ||||
Interest on deposits | 2,187 | 2,029 | 2,111 | |
Total interest expense | 2,187 | 2,029 | 2,111 | |
Net interest income | 39,790 | 37,901 | 36,599 | |
Provision for loan losses | (1,500) | (850) | ||
Net interest income after provision for loan losses | 39,790 | 39,401 | 37,449 | |
Total net revenue | 135,302 | 125,537 | 120,817 | |
Operating Expense: | ||||
Personnel | 77,339 | 72,581 | 70,314 | |
Occupancy | 3,480 | 3,390 | 3,400 | |
Equipment | 5,071 | 4,451 | 4,291 | |
Amortization of intangible assets | 427 | 408 | 408 | |
Other operating | 14,086 | 12,643 | 11,370 | |
Total operating expense | 100,403 | 93,473 | 89,783 | |
Income before income tax expense | 34,899 | 32,064 | 31,034 | |
Income tax expense | 9,885 | [1] | 7,716 | 7,978 |
Net income | $ 25,014 | $ 24,348 | $ 23,056 | |
Basic Earnings Per Share | $ 2.04 | $ 1.99 | $ 1.85 | |
Diluted Earnings Per Share | $ 2.01 | $ 1.96 | $ 1.82 | |
[1] | Includes one-time, non-cash TCJA charge of $1,824,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive income: | |||
Net income | $ 25,014 | $ 24,348 | $ 23,056 |
Other comprehensive income: | |||
Net unrealized gain (loss) on securities available-for-sale | 6,637 | (10,644) | 1,527 |
Tax effect | (2,465) | 3,954 | (567) |
Reclassification adjustments for gains included in net income | (387) | (2,910) | |
Tax effect | 144 | 1,081 | |
FASB ASC 715 adjustment | (1,311) | (1,435) | 6,256 |
Tax effect | 487 | 531 | (2,324) |
Foreign currency translation adjustments | 161 | (42) | (96) |
Total comprehensive income | $ 28,523 | $ 16,469 | $ 26,023 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | |||
Net income | $ 25,014 | $ 24,348 | $ 23,056 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,341 | 9,429 | 8,859 |
Net gains on sales of securities | (387) | (2,910) | |
Stock-based compensation expense | 2,339 | 1,959 | 2,059 |
Provisions for loan losses | (1,500) | (850) | |
Deferred income tax expense (benefit) | 3,997 | 319 | (137) |
(Decrease) increase in current income tax liability | (3,026) | 357 | 47 |
Increase in pension liability | 8,008 | 4,137 | 4,550 |
Increase in accounts receivable | (4,656) | (4,070) | (839) |
Other operating activities, net | (4,127) | 597 | (342) |
Net cash provided by operating activities | 38,890 | 35,189 | 33,493 |
Cash Flows From Investing Activities: | |||
Proceeds from sales of securities available-for-sale | 21,491 | 99,347 | |
Proceeds from maturities of securities available-for-sale | 44,156 | 43,524 | 38,460 |
Purchase of securities available-for-sale | (124,777) | (96,290) | (161,279) |
Net (increase) decrease in loans | (21,335) | (5,771) | 10,882 |
(Increase) decrease in payments in excess of funding | (33,756) | 179 | 14,701 |
Purchases of premises and equipment, net | (4,127) | (4,684) | (5,747) |
Net cash used in investing activities | (139,839) | (41,551) | (3,636) |
Cash Flows From Financing Activities: | |||
Net increase in noninterest-bearing demand deposits | 66,885 | 32,833 | 22,824 |
Net (decrease) increase in interest-bearing demand and savings deposits | (7,472) | (51,440) | 23,536 |
Net decrease in time deposits | (3,286) | (5,916) | (18,075) |
Net increase (decrease) in accounts and drafts payable | 19,601 | 65,028 | (78,169) |
Cash dividends paid | (10,675) | (9,979) | (9,697) |
Purchase of common shares for treasury | (2,270) | (9,215) | (10,951) |
Other financing activities, net | (467) | (1,378) | (488) |
Net cash provided by (used in) financing activities | 62,316 | 19,933 | (71,020) |
Net (decrease) increase in cash and cash equivalents | (38,633) | 13,571 | (41,163) |
Cash and cash equivalents at beginning of year | 266,743 | 253,172 | 294,335 |
Cash and cash equivalents at end of year | 228,110 | 266,743 | 253,172 |
Supplemental information: | |||
Cash paid for interest | 2,178 | 2,017 | 2,133 |
Cash paid for income taxes | $ 7,677 | $ 7,061 | $ 8,190 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at Dec. 31, 2014 | $ 5,966 | $ 126,169 | $ 90,635 | $ (12,707) | $ (9,631) | $ 200,432 | |
Net income | 23,056 | 23,056 | |||||
Cash dividends | (9,697) | (9,697) | |||||
Issuance of common shares pursuant to stock-based compensation plan, net | [1] | (1,250) | 797 | (453) | |||
Exercise of SARs | (687) | 293 | (394) | ||||
Stock-based compensation expense | 2,058 | 2,058 | |||||
Purchase of common shares | [1] | (10,591) | (10,591) | ||||
Other comprehensive loss | 2,967 | 2,967 | |||||
Balance at Dec. 31, 2015 | 5,966 | 126,290 | 103,994 | (22,208) | (6,664) | 207,378 | |
Net income | 24,348 | 24,348 | |||||
Cash dividends | (9,979) | (9,979) | |||||
Issuance of common shares pursuant to stock-based compensation plan, net | [1] | (1,231) | 566 | (665) | |||
Exercise of SARs | (1,364) | 651 | (713) | ||||
Stock-based compensation expense | 1,959 | 1,959 | |||||
Purchase of common shares | [1] | (9,215) | (9,215) | ||||
Excess tax benefits associated with stock based compensation | 2,801 | 2,801 | |||||
Other comprehensive loss | (7,879) | (7,879) | |||||
Balance at Dec. 31, 2016 | 5,966 | 128,455 | 118,363 | (30,206) | (14,543) | 208,035 | |
Net income | 25,014 | 25,014 | |||||
Cash dividends | (10,675) | (10,675) | |||||
Stock dividend | 558 | 75,108 | (75,674) | (8) | |||
Issuance of common shares pursuant to stock-based compensation plan, net | [1] | (821) | 273 | (548) | |||
Exercise of SARs | (451) | 142 | (309) | ||||
Stock-based compensation expense | 2,340 | 2,340 | |||||
Purchase of common shares | [1] | (2,270) | (2,270) | ||||
Other comprehensive loss | 3,509 | 3,509 | |||||
Other comprehensive income | |||||||
reclassification for ASU 2018-02 | 2,286 | (2,286) | |||||
Balance at Dec. 31, 2017 | $ 6,524 | $ 204,631 | $ 59,314 | $ (32,061) | $ (13,320) | $ 225,088 | |
[1] | (1) Share and per share figures adjusted for the 10% stock dividend that occurred on December 15, 2017 |
CONSOLIDATED STATEMENTS OF SHA8
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share | $ .87 | $ .81 | $ 0.77 |
Stock Issued During Period, Shares, Purchase of Assets | 41,846 | 205,835 | 238,053 |
Stock issued pursuant to stock-based compensation | 24,482 | 39,816 | 47,065 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies Summary of Operations Cass Information Systems, Inc . (the “Company”) provides payment and information services, which include processing and payment of transportation, energy, telecommunications and environmental invoices. These services include the acquisition and management of data, information delivery and financial exchange. The consolidated balance sheet captions, “Accounts and drafts payable” and “Payments in excess of funding,” represent the Company’s resulting financial position related to the payment services that are performed for customers. The Company also provides a full range of banking services to individual, corporate and institutional customers through Cass Commercial Bank (the “Bank”), its wholly owned bank subsidiary. Basis of Presentation The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany transactions. Certain amounts in the 2016 and 2015 consolidated financial statements have been reclassified to conform to the 2017 presentation. Such reclassifications have no effect on previously reported net income or shareholders’ equity. The Company issued a 10% stock dividend on December 15, 2017. The share and per share information have been restated unless indicated otherwise for all periods presented in the accompanying consolidated financial statements. Use of Estimates In preparing the consolidated financial statements, Company management is required to make estimates and assumptions which significantly affect the reported amounts in the consolidated financial statements. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers cash and due from banks, interest-bearing deposits in other financial institutions, federal funds sold and other short-term investments as segregated in the accompanying consolidated balance sheets to be cash equivalents. Investment in Debt Securities The Company classifies its debt marketable securities as available-for-sale. Securities classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and reported in accumulated other comprehensive income, a component of shareholders’ equity. A decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. To determine whether impairment is other than temporary, the Company considers guidance provided in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320 - Investments – Debt and Equity Securities . When determining whether a debt security is other-than-temporarily impaired, the Company assesses whether it has the intent to sell the security and whether it is more likely than not that the Company will be required to sell prior to recovery of the amortized cost basis. Evidence considered in this assessment includes the reasons for impairment, the severity and duration of the impairment, changes in value subsequent to year-end and forecasted performance of the investee. Premiums and discounts are amortized or accreted to interest income over the estimated lives of the securities using the level-yield method. Interest income is recognized when earned. Gains and losses are calculated using the specific identification method. Allowance for Loan Losses (“ALLL”) The ALLL is increased by provisions charged to expense and is available to absorb charge-offs, net of recoveries. Management utilizes a systematic, documented approach in determining the appropriate level of the ALLL. Management’s approach provides for estimated credit losses on individually evaluated loans in accordance with FASB ASC 310 - Allowance for Credit Losses (“ASC 310”). These estimates are based upon a number of factors, such as payment history, financial condition of the borrower, expected future cash flows and discounted collateral exposure. Estimated credit losses inherent in the remainder of the portfolio are estimated in accordance with FASB ASC 450 - Contingencies . These loans are segmented into groups based on similar risk characteristics. Historical loss rates for each risk group, which are updated quarterly, are generally quantified using all recorded loan charge-offs and recoveries over a prescribed look-back period. These historical loss rates for each risk group are used as the starting point to determine the level of the allowance. The Company’s methodology incorporates an estimated loss emergence period for each risk group. The loss emergence period is the period of time from when a borrower experiences a loss event and when the actual loss is recognized in the financial statements, generally at the time of initial charge-off of the loan balance. The Company’s methodology also includes qualitative risk factors that allow management to adjust its estimates of losses based on the most recent information available and to address other limitations in the quantitative component that is based on historical loss rates. Such risk factors are generally reviewed and updated quarterly, as appropriate, and are adjusted to reflect changes in national and local economic conditions and developments, the volume and severity of delinquent and internally classified loans, loan concentrations, assessment of trends in collateral values, assessment of changes in borrowers’ financial stability, and changes in lending policies and procedures, including underwriting standards and collections, charge-off and recovery practices. Management believes the ALLL is adequate to absorb probable losses in the loan portfolio. Additionally, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to increase the ALLL based on their judgments and interpretations about information available to them at the time of their examinations. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the estimated useful lives of the assets, or the respective lease terms for leasehold improvements, using straight-line and accelerated methods. Estimated useful lives do not exceed 40 years for buildings, the lesser of 10 years or the life of the lease for leasehold improvements and range from 3 to 7 years for software, equipment, furniture and fixtures. Maintenance and repairs are charged to expense as incurred. Intangible Assets Cost in excess of fair value of net assets acquired has resulted from business acquisitions. Goodwill and intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually. Intangible assets with definite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Periodically, the Company reviews intangible assets for events or changes in circumstances that may indicate that the carrying amount of the assets may not be recoverable. Based on those reviews, adjustments of recorded amounts have not been required. Non-marketable Equity Investments The Company accounts for non-marketable equity investments, in which it holds less than a 20% ownership, under the cost method. Under the cost method of accounting, investments are carried at cost and are adjusted only for other than temporary declines in fair value, distributions of earnings and additional investments. The Company periodically evaluates whether any declines in fair value of its investments are other than temporary. In performing this evaluation, the Company considers various factors including any decline in market price, where available, the investee's financial condition, results of operations, operating trends and other financial ratios. Non-marketable equity investments are included in other assets on the consolidated balance sheets. Foreclosed Assets Real estate acquired as a result of foreclosure is initially recorded at fair value less estimated selling costs. Fair value is generally determined through the receipt of appraisals. Any write down to fair value at the time the property is acquired is recorded as a charge-off to the allowance for loan losses. Any decline in the fair value of the property subsequent to acquisition is recorded as a charge to non-interest expense. Treasury Stock Purchases of the Company’s common stock are recorded at cost. Upon reissuance, treasury stock is reduced based upon the average cost basis of shares held. Comprehensive Income Comprehensive income consists of net income, changes in net unrealized gains (losses) on available-for-sale securities and pension liability adjustments and is presented in the accompanying consolidated statements of shareholders' equity and consolidated statements of comprehensive income. Loans Interest on loans is recognized based upon the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when there is reasonable doubt as to the collectability of principal or interest. Subsequent payments received on such loans are applied to principal if there is any doubt as to the collectability of such principal; otherwise, these receipts are recorded as interest income. The accrual of interest on a loan is resumed when the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Loan origination and commitment fees on originated loans, net of certain direct loan origination costs, are deferred and amortized to interest income using the level-yield method over the estimated lives of the related loans. Impairment of Loans A loan is considered impaired when it is probable that a creditor will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. When measuring impairment, the expected future cash flows of an impaired loan are discounted at the loan's effective interest rate. Alternatively, impairment could be measured by reference to an observable market price, if one exists, or the fair value of the collateral for a collateral-dependent loan. Regardless of the historical measurement method used, the Company measures impairment based on the fair value of the collateral when the Company determines foreclosure is probable. Additionally, impairment of a restructured loan is measured by discounting the total expected future cash flows at the loan's effective rate of interest as stated in the original loan agreement. The Company uses its nonaccrual methods as discussed above for recognizing interest on impaired loans. Information Services Revenue A majority of the Company’s revenues are attributable to fees for providing services. These services include transportation invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The Company also processes, pays and generates management information from electric, gas, telecommunications, environmental, and other invoices. The specific payment and information processing services provided to each customer are developed individually to meet each customer’s specific requirements. The Company enters into service agreements with customers typically for fixed fees per transaction that are invoiced monthly. Revenues are recognized in the period services are rendered and earned under the service agreements, as long as collection is reasonably assured. Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced if necessary, by a deferred tax asset valuation allowance. In the event that management determines it is more likely than not that it will not be able to realize all or part of net deferred tax assets in the future, the Company adjusts the recorded value of deferred tax assets, which would result in a direct charge to income tax expense in the period that such determination is made. Likewise, the Company will reverse the valuation allowance when realization of the deferred tax asset is expected. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Stock-Based Compensation The Company follows FASB ASC 718 - Accounting for Stock Options and Other Stock-based Compensation (“ASC 718”), which requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the fair value of the award. FASB ASC 718 also requires that excess tax benefits related to stock option exercises and restricted stock awards be reflected as financing cash inflows instead of operating cash inflows. Pension Plans The amounts recognized in the consolidated financial statements related to pension are determined from actuarial valuations. Inherent in these valuations are assumptions including expected return on plan assets, discount rates at which the liabilities could be settled at December 31, 2017, rate of increase in future compensation levels and mortality rates. These assumptions are updated annually and are disclosed in Note 10. The Company follows FASB ASC 715 - Compensation – Retirement Benefits (“ASC 715”), which requires companies to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its consolidated balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the date of its fiscal year-end. Fair Value Measurements The Company follows the provisions of FASB ASC 820 - Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value in GAAP, and outlines disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy for valuation techniques is used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. Financial instrument valuations are considered Level 1 when they are based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instrument valuations use quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Financial instrument valuations are considered Level 3 when they are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable, and when determination of the fair value requires significant management judgment or estimation. The Company records securities available for sale at their fair values on a recurring basis using Level 2 valuations. Additionally, the Company records impaired loans and other real estate owned at their fair value on a nonrecurring basis. The nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or impairment write-downs of individual assets. Impact of New and Not Yet Adopted Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 – Revenue from Contracts with Customers . The ASU supersedes revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance in the FASB Accounting Standards Codification (“ASC”). The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies specific steps that entities should apply in order to achieve this principle. Under the ASU, the amendments are effective for interim and annual periods beginning January 1, 2018 and must be applied retrospectively. The Company’s revenue is comprised of net interest income on financial assets and liabilities, which is explicitly excluded from the scope, and non-interest income. The Company will use the modified retrospective transition approach and there will not be a significant impact on the Company’s consolidated financial statements or results of operations. In January 2016, the FASB issued ASU No. 2016-01 – Financial Instruments – Overall (ASC Subtopic 825-10) . The ASU requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The standard is effective for fiscal periods beginning January 1, 2018 and will not have a significant impact on the Companys consolidated financial statements or results of operations. In February 2016, the FASB issued ASU No. 2016-02 – Leases (ASC Topic 842) . The ASU improves financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Consistent with current generally accepted accounting principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. A third-party vendor solution has been selected to assist in the application of ASU 2016-02. The impact of the adoption of this ASU is currently being evaluated but is not expected to have a material impact on the Company’s consolidated financial statements or results of operations. In June 2016, the FASB issued ASU No. 2016-13 - Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU requires measurement and recognition of expected credit losses for financial assets held. Under this standard, it will be required to hold an allowance equal to the expected life-of-loan losses on the loan portfolio. The standard is effective for fiscal periods beginning after December 15, 2019. The impact of the adoption of this ASU is currently being evaluated. In February 2018, the FASB issued ASU No. 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU provides for the reclassification of the effect of remeasuring deferred tax balances related to items within AOCI to retained earnings resulting from the TCJA. The Company early adopted, and as a result, reclassified $2,286,000 from AOCI to retained earnings. |
Capital Requirements and Regula
Capital Requirements and Regulatory Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Capital Requirements and Regulatory Restrictions | Note 2 Capital Requirements and Regulatory Restrictions The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulators to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier I capital and common equity Tier I capital to risk-weighted assets, and of Tier I capital to average assets. Management believes that as of December 31, 2017 and 2016, the Company and the Bank met all capital adequacy requirements to which they are subject. Effective July 2, 2013, the Federal Reserve Board approved final rules known as the “Basel III Capital Rules” that substantially revised the risk-based capital and leverage capital requirements applicable to bank holding companies and depository institutions, including the Company and the Bank. The Basel III Capital Rules implement aspects of the Basel III capital framework agreed upon by the Basel Committee and incorporate changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the Basel III Capital Rules establish stricter capital requirements and calculation standards, as well as more restrictive risk weightings for certain loans and facilities. The Basel III Capital Rules were effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period). The Bank is also subject to the regulatory framework for prompt corrective action. As of December 31, 2017, the most recent notification from the regulatory agencies categorized the Bank as well-capitalized. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, common equity Tier I risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. Subsidiary dividends can be a significant source of funds for payment of dividends by the Company to its shareholders. At December 31, 2017, unappropriated retained earnings of $30,137,000 were available at the Bank for the declaration of dividends to the Company without prior approval from regulatory authorities. However, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. There were no restricted funds on deposit used to meet regulatory reserve requirements at December 31, 2017 and 2016. The Company’s and the Bank’s actual and required capital amounts and ratios are as follows: Capital Requirement to be Actual Requirements Well-Capitalized (In thousands) Amount Ratio Amount Ratio Amount Ratio At December 31, 2017 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 234,389 22.53 % $ 83,233 8.00 % $ N/A N/A % Cass Commercial Bank 122,440 17.01 57,568 8.00 71,960 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 224,184 21.55 46,819 4.50 N/A N/A Cass Commercial Bank 114,603 15.93 32,382 4.50 46,774 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 224,184 21.55 62,425 6.00 N/A N/A Cass Commercial Bank 114,603 15.93 43,176 6.00 57,568 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 224,184 13.87 64,649 4.00 N/A N/A Cass Commercial Bank 114,603 14.99 30,581 4.00 38,227 5.00 At December 31, 2016 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 219,747 22.75 % $ 77,272 8.00 % $ N/A N/A % Cass Commercial Bank 110,576 16.72 52,898 8.00 66,123 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 209,572 21.70 43,466 4.50 N/A N/A Cass Commercial Bank 102,769 15.54 29,755 4.50 42,980 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 209,572 21.70 57,954 6.00 N/A N/A Cass Commercial Bank 102,769 15.54 39,674 6.00 52,898 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 209,572 13.83 60,620 4.00 N/A N/A Cass Commercial Bank 102,769 13.98 29,409 4.00 36,761 5.00 |
Investment in Securities
Investment in Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Securities | Note 3 Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale at December 31, 2017 and 2016 are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore falls into the Level 2 category. The table below presents the balances of securities available-for-sale measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows: December 31, 2017 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 408,165 $ 9,528 $ 661 $ 417,032 U.S. government agencies 46,222 — 722 45,500 Certificates of deposit 7,991 — — 7,991 Total $ 462,378 $ 9,528 $ 1,383 $ 470,523 December 31, 2016 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 368,223 $ 5,239 $ 3,328 $ 370,134 U.S. government agencies 13,075 — 403 12,672 Certificates of deposit 7,746 — — 7,746 Total $ 389,044 $ 5,239 $ 3,731 $ 390,552 The fair values of securities with unrealized losses are as follows: December 31, 2017 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair value Losses State and political subdivisions $ 34,755 $ 123 $ 31,251 $ 538 $ 66,006 $ 661 U.S. government agencies 34,183 376 11,317 346 45,500 722 Certificates of deposit — — — — — — Total $ 68,938 $ 499 $ 42,568 $ 884 $ 111,506 $ 1,383 December 31, 2016 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair value Losses State and political subdivisions $ 140,384 $ 3,328 $ — $ — $ 140,384 $ 3,328 U.S. government agencies 12,672 403 — — 12,672 403 Certificates of deposit — — — — — — Total $ 153,056 $ 3,731 $ — $ — $ 153,056 $ 3,731 There were 64 securities, or 17% of the total (24 greater than 12 months), in an unrealized loss position as of December 31, 2017 compared to 108 securities (none greater than 12 months) in an unrealized loss position as of December 31, 2016. All unrealized losses are reviewed to determine whether the losses are other than temporary. Management believes that all unrealized losses are temporary since they are market driven, the Company does not have the intent to sell the security, and it is more likely than not that the Company will not be required to sell prior to recovery of the amortized basis. The amortized cost and fair value of debt and equity securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. December 31, 2017 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 22,492 $ 22,638 Due after 1 year through 5 years 57,922 58,425 Due after 5 years through 10 years 256,396 263,961 Due after 10 years 125,568 125,499 No stated maturity — — Total $ 462,378 $ 470,523 The premium related to the purchase of state and political subdivisions was $7,147,000 and $5,749,000 in 2017 and 2016, respectively. The amortized cost of debt securities pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes at December 31, 2017 and 2016 was $3,750,000. Proceeds from sales of debt securities classified as available-for-sale were $0 in 2017, $21,491,000 in 2016, and $99,347,000 in 2015. Gross realized gains on the sales in 2017, 2016 and 2015 were $0, $387,000, and $2,910,000, respectively. There were no gross realized losses on sales in 2017, 2016 or 2015. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | Note 4 The Company originates commercial, industrial and real estate loans to businesses and faith-based ministries throughout the metropolitan St. Louis, Missouri area, Orange County, California and other selected cities in the United States. The Company does not have any particular concentration of credit in any one economic sector; however, a substantial portion of the commercial and industrial loans is extended to privately-held commercial companies and franchises in these market areas, and are generally secured by the assets of the business. The Company also has a substantial portion of real estate loans secured by mortgages that are extended to faith-based ministries in its market area and selected cities in the United States. A summary of loan categories is as follows: December 31, (In thousands) 2017 2016 Commercial and industrial $ 236,394 $ 214,767 Real estate Commercial: Mortgage 94,675 104,779 Construction 9,359 6,325 Church, church-related: Mortgage 316,073 321,168 Construction 25,948 11,152 Industrial Revenue Bonds 3,374 6,639 Other 408 36 Total loans $ 686,231 $ 664,866 The following table presents the aging of loans by loan categories at December 31, 2017: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans Commercial and industrial $ 236,394 $ $ $ $ $ 236,394 Real estate Commercial: Mortgage 94,675 94,675 Construction 9,359 9,359 Church, church-related: Mortgage 316,073 316,073 Construction 25,948 25,948 Industrial Revenue Bonds 3,374 3,374 Other 408 408 Total $ 686,231 $ $ $ $ $ 686,231 The following table presents the aging of loans by loan categories at December 31, 2016: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans Commercial and industrial $ 214,767 $ $ $ $ $ 214,767 Real estate Commercial: Mortgage 104,534 245 104,779 Construction 6,325 6,325 Church, church-related: Mortgage 321,168 321,168 Construction 11,152 11,152 Industrial Revenue Bonds 6,639 6,639 Other 24 12 36 Total $ 664,609 $ 12 $ $ $ 245 $ 664,866 The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2017: Loans Performing Nonperforming Subject to Loans Subject to Loans Subject Normal Special to Special (In thousands) Monitoring (1) Monitoring (2) Monitoring (2) Total Loans Commercial and industrial $ 234,271 $ 2,123 $ — $ 236,394 Real estate Commercial: Mortgage 93,788 887 — 94,675 Construction 9,359 — — 9,359 Church, church-related: Mortgage 316,042 31 — 316,073 Construction 25,948 — — 25,948 Industrial Revenue Bonds 3,374 — — 3,374 Other 408 — — 408 Total $ 683,190 $ 3,041 $ — $ 686,231 (1) Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation. (2) Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2016: Loans Performing Nonperforming Subject to Loans Subject to Loans Subject to Normal Special Special (In thousands) Monitoring (1) Monitoring (2) Monitoring (2) Total Loans Commercial and industrial $ 213,024 $ 1,743 $ — $ 214,767 Real estate Commercial: Mortgage 103,778 756 245 104,779 Construction 6,325 — — 6,325 Church, church-related: Mortgage 318,030 3,138 — 321,168 Construction 11,152 — — 11,152 Industrial Revenue Bonds 6,639 — — 6,639 Other 36 — — 36 Total $ 658,984 $ 5,637 $ 245 $ 664,866 (1) Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation. (2) Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and non-performing. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. There was no ALLL related to impaired loans at both December 31, 2017 and 2016. Nonaccrual loans were $0 and $245,000 at December 31, 2017 and 2016, respectively. There were no loans delinquent 90 days or more and still accruing interest at both December 31, 2017 and 2016. At December 31, 2017 and 2016, there were no loans classified as troubled debt restructuring. The average balances of impaired loans during 2017, 2016 and 2015 were $166,000, $333,000, and $3,188,000, respectively. Income that would have been recognized on non-accrual loans under the original terms of the contract was $24,000, $66,000 and $390,000 for 2017, 2016 and 2015, respectively. Income that was recognized on nonaccrual loans was $17,000, $47,000 and $34,000 for 2017, 2016 and 2015 respectively. There were no foreclosed assets as of December 31, 2017 or December 31, 2016. There was no recorded investment or unpaid principal balance for impaired loans at December 31, 2017. The following table presents the recorded investment and unpaid principal balance for impaired loans at December 31, 2016: Related Unpaid Allowance Recorded Principal for Loan (In thousands) Investment Balance Losses Commercial and industrial: Nonaccrual $ — $ — $ — Real estate Commercial – Mortgage: Nonaccrual 245 245 — Church – Mortgage: Nonaccrual — — — Total impaired loans $ 245 $ 245 $ — The Company does not record loans at fair value on a recurring basis. Once a loan is identified as impaired, management measures impairment in accordance with FASB ASC 310. At December 31, 2017, there were no impaired loans. At December 31, 2016, all impaired loans were evaluated based on the fair value of the collateral. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 3. A summary of the activity in the allowance for loan losses is as follows: December 31, Charge- December 31, (In thousands) 2016 Offs Recoveries Provision 2017 Commercial and industrial $ 3,261 $ — $ 30 $ 361 $ 3,652 Real estate Commercial: Mortgage 1,662 — — (268 ) 1,394 Construction 47 — — 23 70 Church, church-related: Mortgage 4,027 — — (65 ) 3,962 Construction 85 — — 111 196 Industrial Revenue Bond 101 — — (49 ) 52 Other 992 — — (113 ) 879 Total $ 10,175 $ — $ 30 $ — $ 10,205 As of December 31, 2017, there were no loans to affiliates of executive officers or directors. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5 Premises and Equipment A summary of premises and equipment is as follows: December 31, (In thousands) 2017 2016 Land $ 873 $ 873 Buildings 13,386 13,087 Leasehold improvements 2,120 2,098 Furniture, fixtures and equipment 14,801 13,248 Purchased software 4,819 4,704 Internally developed software 16,485 14,377 52,484 48,387 Less accumulated depreciation 30,898 27,301 Total $ 21,586 $ 21,086 Total depreciation charged to expense in 2017, 2016 and 2015 amounted to $3,627,000, $3,245,000 and $3,008,000, respectively. The Company and its subsidiaries lease various premises and equipment under operating lease agreements which expire at various dates through 2023. Rental expense for 2017, 2016 and 2015 was $1,499,000, $1,397,000 and $1,387,000, respectively. The following is a schedule, by year, of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2017: (In thousands) Amount 2018 $ 1,518 2019 1,270 2020 1,245 2021 1,118 2022 1,086 2023 226 Total $ 6,463 |
Acquired Intangible Assets
Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Note 6 Acquired Intangible Assets The Company accounts for intangible assets in accordance with FASB ASC 350 - Goodwill and Other Intangible Assets (“ASC 350”), which requires that intangibles with indefinite useful lives be tested annually for impairment and those with finite useful lives be amortized over their useful lives. In March 2017, the Company completed an acquisition and recorded intangible assets of $1,405,000. Those intangibles were valued as $979,000 for goodwill, $355,000 for the customer list and $71,000 for non-compete agreements. Details of the Company’s intangible assets are as follows: December 31, 2017 December 31, 2016 Gross Carrying Accumulated Gross Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Assets eligible for amortization: Customer lists $ 4,288 $ (2,702 ) $ 3,933 $ (2,342 ) Patent 72 (12 ) 72 (8 ) Non-compete agreements 332 (291 ) 261 (261 ) Software 234 (234 ) 234 (234 ) Other 500 (191 ) 500 (158 ) Unamortized intangible assets: Goodwill (1) 12,796 (227 ) 11,817 (227 ) Total intangible assets $ 18,222 $ (3,657 ) $ 16,817 $ (3,230 ) (1) Amortization through December 31, 2001 prior to adoption of FASB ASC 350. The customer lists are amortized over seven and ten years; the patents over 18 years, the non-compete agreements over two and five years, software over three years and other intangible assets over 15 years. Amortization of intangible assets amounted to $427,000, $408,000 and $408,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Estimated future amortization of intangibles is $442,000 in 2018, $412,000 2019, $406,000 in both 2020 and 2021 and $88,000 in 2022. |
Interest-Bearing Deposits
Interest-Bearing Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Interest-Bearing Deposits [Abstract] | |
Interest-Bearing Deposits | Note 7 Interest-bearing deposits consist of the following: December 31, (In thousands) 2017 2016 Interest-bearing demand deposits $ 332,881 $ 322,091 Savings deposits 11,168 29,430 Time deposits: Less than $100 2,658 3,523 $100 to less than $250 33,385 37,179 $250 or more 16,455 15,082 Total $ 396,547 $ 407,305 Weighted average interest rate .56 % .48 % Interest on deposits consists of the following: December 31, (In thousands) 2017 2016 2015 Interest-bearing demand deposits $ 1,611 $ 1,387 $ 1,392 Savings deposits 79 100 65 Time deposits: Less than $100 234 274 346 $100 to less than $250 114 191 119 $250 or more 149 77 189 Total $ 2,187 $ 2,029 $ 2,111 The scheduled maturities of time deposits are summarized as follows: December 31, 2017 2016 Percent Percent (In thousands) Amount of Total Amount of Total Due within: One year $ 48,370 92.1 % $ 48,740 87.4 % Two years 281 0.5 4,752 8.5 Three years 2,383 4.5 155 0.3 Four years 25 0.1 2,072 3.7 Five years 1,439 2.8 65 0.1 Total $ 52,498 100.0 % $ 55,784 100.0 % |
Unused Available Lines of Credi
Unused Available Lines of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Unused Available Lines of Credit | Note 8 Unused Available Lines of Credit As of December 31, 2017, the Bank had unsecured lines of credit at correspondent banks to purchase federal funds up to a maximum of $68,000,000 at the following banks: US Bank, $20,000,000; Wells Fargo Bank, $15,000,000; PNC Bank, $12,000,000; Frost National Bank, $10,000,000; JPM Chase Bank, $6,000,000; and UMB Bank $5,000,000. As of December 31, 2017, the Bank had secured lines of credit with the Federal Home Loan Bank (“FHLB”) of $204,789,000 collateralized by commercial mortgage loans. At December 31, 2017, the Company had a line of credit from UMB Bank of $50,000,000 and First Tennessee Bank of $50,000,000 collateralized by state and political subdivision securities. There were no amounts outstanding under any of the lines of credit discussed above at December 31, 2017 or 2016. |
Common Stock and Earnings per S
Common Stock and Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Common Stock and Earnings per Share | Note 9 Common Stock and Earnings per Share The table below shows activity in the outstanding shares of the Company’s common stock during 2017. 2017 Shares outstanding at January 1 11,188,466 10% stock dividend issued December 15, 2017 1,116,711 Issuance of common stock: Employee restricted stock grants 3,825 Employee SARs exercised 7,547 Directors’ compensation 8,389 Shares repurchased (38,042 ) Shares outstanding at December 31 12,286,896 Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. Under the treasury stock method, stock appreciation rights (“SARs”) are dilutive when the average market price of the Company’s common stock, combined with the effect of any unamortized compensation expense, exceeds the SAR price during a period. Anti-dilutive shares are those SARs with prices in excess of the current market value. The calculations of basic and diluted earnings per share are as follows: December 31, (In thousands except share and per share data) 2017 2016 2015 Basic: Net income $ 25,014 $ 24,348 $ 23,056 Weighted average common shares outstanding 12,250,465 12,265,434 12,494,466 Basic earnings per share $ 2.04 $ 1.99 $ 1.85 Diluted: Net income $ 25,014 $ 24,348 $ 23,056 Weighted average common shares outstanding 12,250,465 12,265,434 12,494,466 Effect of dilutive restricted stock, PBRS and SARs 179,445 172,386 175,784 Weighted average common shares outstanding assuming dilution 12,429,910 12,437,820 12,670,250 Diluted earnings per share $ 2.01 $ 1.96 $ 1.82 All share and per share data have been restated to give effect to the 10% stock dividend issued on December 15, 2017. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 10 Defined Benefit Plan The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers most of its employees. Effective December 31, 2016, the Plan was closed to all new participants. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the Plan over a period of approximately 30 years. A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows: (In thousands) 2017 2016 Projected benefit obligation: Balance, January 1 $ 85,551 $ 78,369 Service cost 3,733 3,559 Interest cost 3,621 3,505 Actuarial (gain) loss 7,916 2,003 Benefits paid (2,031 ) (1,885 ) Balance, December 31 $ 98,790 $ 85,551 Plan assets: Fair value, January 1 $ 73,168 $ 71,174 Actual return 10,290 3,879 Employer contribution Benefits paid (2,031 ) (1,885 ) Fair value, December 31 $ 81,427 $ 73,168 Funded status: Accrued pension liability $ (17,363 ) $ (12,383 ) The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2017, 2016 and 2015, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve. For 2017, the RP-2014 Mortality Table and the MP-2017 Mortality Improvement Table were used. For 2016, the RP-2014 Mortality Table and MP-2016 Mortality Improvement Table were used. For 2015, the RP-2014 Mortality Table and MP-2015 Mortality Improvement Table were used. 2017 2016 2015 Weighted average discount rate 3.75 % 4.25 % 4.50 % Rate of increase in compensation levels (a) (a) (a) (a) 6.0% graded down to 3.25% over the first seven years of service The accumulated benefit obligation was $85,236,000 and $74,425,000 as of December 31, 2017 and 2016, respectively. The Company does not expect to make a contribution to the Plan in 2018. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan: Amount 2018 $ 2,679,000 2019 2,823,000 2020 3,045,000 2021 3,300,000 2022 3,693,000 2023-2027 23,682,000 The Plan’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2017 2016 2015 Service cost – benefits earned during the year $ 3,733 $ 3,559 $ 3,796 Interest cost on projected benefit obligations 3,621 3,505 3,178 Expected return on plan assets (4,681 ) (4,734 ) (4,864 ) Net amortization and deferral 1,382 1,259 1,542 Net periodic pension cost $ 4,055 $ 3,589 $ 3,652 The following represent the major assumptions used to determine the net pension cost of the Plan: 2017 2016 2015 Weighted average discount rate 4.25 % 4.50 % 4.00 % Rate of increase in compensation levels (a) (a) (a) Expected long-term rate of return on assets 6.50 % 6.75 % 6.75 % (a) 6.0% graded down to 3.25% over the first seven years of service For 2017, the RP-2014 Mortality Table and the MP-2016 Mortality Improvement Table were used. For 2016, the RP-2014 Mortality Table and the MP-2015 Mortality Improvement Table were used. For 2015, the RP-2014 Mortality Tables and the MP-2014 Mortality Improvement scale were used. The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 45% fixed income, 25% U.S. equity and 30% non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below: One-Year Nominal Annual Standard Asset Class % of Total Portfolio Return Deviation Core Fixed Income 51 % 4.55 % 4.55 % Large Cap U.S. Equities 14 % 7.00 % 15.85 % Small Cap U.S. Equities 5 % 8.10 % 19.70 % International (Developed) 25 % 7.99 % 17.93 % International (Emerging) 5 % 10.56 % 27.35 % Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.50%. A summary of the fair value measurements by type of asset is as follows: Fair Value Measurements as of December 31, 2017 2016 Quoted Prices Quoted Prices in Active in Active Markets for Significant Markets for Significant Identical Observable Identical Observable Assets Inputs Assets Inputs (In thousands) Total (Level 1) (Level 2) Total (Level 1) (Level 2) Cash $ 374 $ 374 $ $ 340 $ 340 $ Equity securities U.S. Large Cap Growth 13,306 13,306 U.S. Small/Mid Cap Growth 4,111 4,111 5,655 5,655 Non-U. S. Core 21,065 21,065 10,588 10,588 U.S. Large Cap Passive 11,717 11,717 7,364 7,364 Emerging Markets 4,052 4,052 652 652 Fixed Income U.S. Core 11,284 11,284 24,438 24,438 U.S. Passive 24,345 24,345 9,571 9,571 Opportunistic 4,479 4,479 1,254 1,254 Total $ 81,427 $ 374 $ 81,053 $ 73,168 $ 340 $ 72,828 Supplemental Executive Retirement Plan The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the Internal Revenue Service under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan. A summary of the activity in the SERP’s projected benefit obligation, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows: December 31, (In thousands) 2017 2016 Benefit obligation: Balance, January 1 $ 9,132 $ 8,748 Service cost 143 133 Interest cost 360 367 Benefits paid (247 ) (247 ) Actuarial (gain) loss 706 131 Balance, December 31 $ 10,094 $ 9,132 The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2017, 2016 and 2015, the SERP’s expected benefit cash flows were discounted using the Citigroup Above Median Curve. 2017 2016 2015 Weighted average discount rate 3.50 % 4.00 % 4.25 % Rate of increase in compensation levels (a) (a) (a) (a) 6.00% graded down to 3.25% over the first seven years of service. The accumulated benefit obligation was $8,734,000 and $7,904,000 as of December 31, 2017 and 2016, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $247,000 in both 2017 and 2016 and $243,000 in 2015. Expected future benefits payable by the Company over the next ten years are as follows: Amount 2018 $ 314,000 2019 313,000 2020 311,000 2021 367,000 2022 711,000 2023-2027 3,813,000 The SERP’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2017 2016 2015 Service cost – benefits earned during the year $ 143 $ 133 $ 140 Interest cost on projected benefit obligations 360 367 348 Net amortization and deferral 324 295 654 Net periodic pension cost $ 827 $ 795 $ 1,142 The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows: The Plan SERP (In thousands) 2017 2016 2017 2016 Prior service cost $ $ $ $ Net actuarial loss 23,160 22,237 2,388 2,005 Total $ 23,160 $ 22,237 $ 2,388 $ 2,005 The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2017 expected to be recognized as components of net periodic benefit cost in 2018 for the Plan are $0 and $1,409,000, respectively. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2017 expected to be recognized as components of net periodic benefit cost in 2018 for the SERP are $0 and $582,000, respectively. The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in the consolidated statements of income in 2017, 2016 and 2015 was $5,799,000, $5,367,000, and $5,211,000, respectively. The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2017, 2016 and 2015 were $925,000, $658,000, and $623,000, respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Note 11 The Amended and Restated Omnibus Stock and Performance Compensation Plan (the “Omnibus Plan”) provides incentive opportunities for key employees and non-employee directors and to align the personal financial interests of such individuals with those of the Company’s shareholders. The Omnibus Plan permits the issuance of up to 1,500,000 shares of the Company’s common stock in the form of stock options, SARs, restricted stock, restricted stock units and performance awards. All share and per share data have been restated to give effect to the 10% stock dividend issued on December 15, 2017. Restricted Stock Restricted shares granted prior to April 16, 2013 are amortized to expense over the three-year vesting period. Beginning on April 16, 2013, restricted shares granted to Company employees are amortized to expense over the three-year annual vesting period whereas restricted shares granted to members of the Board of Directors are amortized to expense over a one-year service period, with the exception of those shares granted in lieu of cash payment for retainer fees which are expensed in the period earned. Beginning on February 2, 2017, restricted shares granted to Company employees are amortized to expense over the three-year cliff vesting period. Changes in restricted shares outstanding for the year ended December 31, 2017 were as follows: Weighted Average Grant Date Shares Fair Value Balance at December 31, 2016 81,269 $ 46.39 Granted 26,064 $ 59.46 Vested (29,167 ) $ 47.58 Forfeited Balance at December 31, 2017 78,166 $ 50.30 During 2016 and 2015, 39,816 and 47,065 shares, respectively, were granted with weighted average per share market values at date of grant of $45.75 in 2016 and $46.40 in 2015. The fair value of such shares, are based on the market price on the date of grant. Amortization of the restricted stock bonus awards totaled $1,743,000 for 2017, $1,712,000 for 2016 and $1,514,000 for 2015. As of December 31, 2017, the total unrecognized compensation expense related to non-vested restricted stock awards was $1,345,000 and the related weighted average period over which it is expected to be recognized is approximately 0.63 years. The total fair value of shares vested during the years ended December 2017, 2016, and 2015 was $1,550,000, $1,500,000, and $1,089,000, respectively. Performance-Based Restricted Stock In February 2017, the Company granted three-year performance-based restricted stock (“PBRS”) awards which are contingent upon the achievement of pre-established financial goals over the period from January 1, 2017 through December 31, 2019. The PBRS awards cliff vest on the three-year anniversary of their grant date at levels ranging from 0% to 150% of the target opportunity based on the actual achievement of financial goals for the three-year performance period. The target number of PBRS shares granted was 25,342 with a grant date fair value of $59.20 per share. The 2017 expense related to this grant totaled $579,000 and is based on the grant date fair value and the anticipated achievement of approximately 124% of the target financial goals. The estimated expense for 2018 and each future period through the vesting date is subject to prospective adjustment based upon changes in the expected achievement of the financial goals. SARs There were no SARs granted during the year ended December 31, 2017. During 2017, the Company recognized SARs expense of $18,000. As of December 31, 2017, there was no unrecognized compensation expense related to SARs. Changes in SARs outstanding for the year ended December 31, 2017 were as follows: SARs Weighted Average Exercise Price Balance at December 31, 2016 261,206 $ 34.75 Exercised (26,970 ) 33.09 Forfeited Balance at December 31, 2017 234,236 34.97 Exercisable at December 31, 2017 234,236 $ 34.97 The total intrinsic value of SARs exercised during 2017 and 2016 was $892,000 and $2,162,000, respectively. The average remaining contractual term for SARs outstanding as of December 31, 2017 was 5.03 years, and the aggregate intrinsic value was $7,291,000. The average remaining contractual term for SARs exercisable as of December 31, 2016 was 5.22 years, and the aggregate intrinsic value was $8,395,000. The total compensation cost for share-based payment arrangements was $2,340,000, $1,959,000, and $2,059,000 in 2017, 2016, and 2015, respectively. |
Other Operating Expense
Other Operating Expense | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | Note 12 Other Operating Expense Details of other operating expense are as follows: For the Years Ended December 31, (In thousands) 2017 2016 2015 Postage and supplies $ 2,087 $ 1,925 $ 1,954 Promotional expense 2,557 2,187 2,268 Professional fees 1,650 1,930 1,690 Outside service fees 4,424 3,316 2,848 Data processing services 897 372 357 Telecommunications 749 1,000 1,068 Other 1,722 1,913 1,185 Total other operating expense $ 14,086 $ 12,643 $ 11,370 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 The components of income tax expense (benefit) are as follows: For the Years Ended December 31, (In thousands) 2017 2016 2015 Current: Federal $ 4,250 $ 6,456 $ 6,825 State 1,638 941 1,290 Deferred: Federal 4,256 301 (84 ) State (259 ) 18 (53 ) Total income tax expense $ 9,885 $ 7,716 $ 7,978 A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 35% for each of 2017, 2016 and 2015 to income before income tax expense is as follows: For the Years Ended December 31, (In thousands) 2017 2016 2015 Expected income tax expense $ 12,214 $ 11,223 $ 10,862 (Reductions) increases resulting from: Tax-exempt income (3,868 ) (3,754 ) (3,704 ) State taxes, net of federal benefit 896 623 804 Share-based compensation adjustment (376 ) Adjustment of deferred tax asset or liability for TCJA 1,824 Other, net (805 ) (376 ) 16 Total income tax expense $ 9,885 $ 7,716 $ 7,978 On December 22, 2017, the TCJA was enacted. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%; (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year; (iii) limits the deduction for net interest expense incurred by U.S. corporations; (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets; (v) eliminates or reduces certain deductions related to meals and entertainment expenses; (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee; and (vii) limits the deductibility of deposit insurance premiums. The TCJA also significantly changes U.S. tax law related to foreign operations, though, such changes do not currently impact the Company on a significant level. Also on December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance on accounting for tax effects of the TCJA. SAB 118 provides a measurement period of up to one year from the enactment date to complete the accounting. Based on the information available and current interpretation of the rules, the Company has made provisional estimates of the impact of the reduction in the corporate tax rate and remeasurement of certain deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future. The final analysis and measurement will be completed during 2018 when the Company files the 2017 U.S. federal income tax return. Income tax expense in 2017 totaled $9,885,000 compared to $7,716,000 and $7,978,000 in 2016 and 2015, respectively. When measured as a percent of pre-tax income, the Company’s effective tax rate was 28% in 2017, 24% in 2016, and 26% in 2015. The increase in 2017 tax expense was primarily the result of a one-time, non-cash charge of $1,824,000 triggered by the passage of the TCJA on December 22, 2017. The charge consists of the following: ● The deferred tax inventory was revalued at the new rate of 21% and resulted in a net credit of $462,000. ● AOCI related to pension and unrealized gains/losses on securities available for sale was revalued at the new rate of 21% and resulted in a net charge of $2,286,000. The Company’s effective tax rate for 2017 including and excluding the one-time TCJA charge was 28% and 25%, respectively. As a result of the lower TCJA rates, the effective rate for 2018 is anticipated to decrease by approximately 25% vs. the 2017 rate excluding the TCJA charge. The Company’s effective tax rate has traditionally been lower than the statutory rate because of investments and loans that are tax exempt. The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (In thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 2,413 $ 3,718 ASC 715 pension funding liability 6,080 8,969 Net operating loss carryforward (1) 76 169 Supplemental executive retirement plan accrual 1,833 2,604 Stock compensation 1,307 1,695 Other 118 177 Total deferred tax assets $ 11,827 $ 17,332 Deferred tax liabilities: Premises and equipment (2,248 ) (2,731 ) Pension (1,379 ) (3,601 ) Intangible/assets (1,091 ) (1,402 ) Unrealized gain on investment in securities available-for-sale (1,938 ) (560 ) Deferred income (2,121 ) Total deferred tax liabilities $ (8,777 ) $ (8,294 ) Net deferred tax assets $ 3,050 $ 9,038 (1) As of December 31, 2017, the Company had approximately $361,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company’s use to approximately $122,000 per year during the carry forward period, which expires in 2020. A valuation allowance would be provided on deferred tax assets when it is more likely than not that some portion of the assets will not be realized. The Company has not established a valuation allowance at December 31, 2017 or 2016, due to management’s belief that all criteria for recognition have been met, including the expectation of projected future taxable income sufficient to support the realization of deferred tax assets. The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is presented in the following table: (In thousands) 2017 2016 2015 Balance at January 1 $ 1,623 $ 1,194 $ 1,117 Changes in unrecognized tax benefits as a result of tax positions taken during a prior year (15 ) 407 10 Changes in unrecognized tax benefits as a result of tax position taken during the current year 263 311 277 Decreases in unrecognized tax benefits relating to settlements with taxing authorities Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (239 ) (289 ) (210 ) Balance at December 31 $ 1,632 $ 1,623 $ 1,194 At December 31, 2017, 2016 and 2015, the balance of the Company’s unrecognized tax benefits which would, if recognized, affect the Company’s effective tax rate was $1,464,000, $1,225,000 and $861,000, respectively. These amounts are net of the offsetting benefits from other taxing jurisdictions. As of December 31, 2017, 2016 and 2015, the Company had $139,000, $108,000 and $54,000, respectively, in accrued interest related to unrecognized tax benefits. During 2017 and 2016, the Company recorded a net increase in accrued interest of $31,000 and $54,000, respectively. The Company believes it is reasonably possible that the total amount of tax benefits will decrease by approximately $299,000 over the next 12 months. The reduction primarily relates to the anticipated lapse in the statute of limitations. The unrecognized tax benefits relate primarily to apportionment of taxable income among various state tax jurisdictions. The Company is subject to income tax in the U.S. federal jurisdiction, numerous state jurisdictions, and a foreign jurisdiction. The Company’s federal income tax returns for tax years 2014 through 2016 remain subject to examination by the Internal Revenue Service. In addition, the Company is subject to state tax examinations for the tax years 2013 through 2016. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 14 The Company and its subsidiaries are not involved in any pending proceedings other than ordinary routine litigation incidental to their businesses. Management believes none of these proceedings, if determined adversely, would have a material effect on the business or financial condition of the Company or its subsidiaries. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Financial Instruments | Note 15 Disclosures about Fair Value of Financial Instruments The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, commercial letters of credit and standby letters of credit. The Company’s maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, commercial letters of credit and standby letters of credit is represented by the contractual amounts of those instruments. At December 31, 2017 and 2016, no amounts have been accrued for any estimated losses for these instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These off-balance sheet financial instruments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The approximate remaining terms of commercial and standby letters of credit range from less than one to five years. Since these financial instruments may expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. Commitments to extend credit and letters of credit are subject to the same underwriting standards as those financial instruments included on the consolidated balance sheets. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of the credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but is generally accounts receivable, inventory, residential or income-producing commercial property or equipment. In the event of nonperformance, the Company may obtain and liquidate the collateral to recover amounts paid under its guarantees on these financial instruments. The following table shows conditional commitments to extend credit, standby letters of credit and commercial letters: December 31, (In thousands) 2017 2016 Conditional commitments to extend credit $ 87,013 $ 45,497 Standby letters of credit 14,347 14,381 Commercial letters of credit 3,246 1,962 The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments and the present credit worthiness of such counterparties. The Company believes such commitments have been made at terms which are competitive in the markets in which it operates; however, no premium or discount is offered thereon. Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: December 31, 2017 2016 Carrying Carrying (In thousands) Amount Fair Value Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 228,110 $ 228,110 $ 266,743 $ 266,743 Investment in securities 470,523 470,523 390,552 390,552 Loans, net 676,026 675,020 654,691 652,028 Accrued interest receivable 7,413 7,413 6,543 6,543 Total $ 1,382,072 $ 1,381,066 $ 1,318,529 $ 1,315,866 Balance sheet liabilities: Deposits $ 678,088 $ 678,346 $ 621,961 $ 622,173 Accounts and drafts payable 661,888 661,888 642,287 642,287 Accrued interest payable 55 55 46 46 Total $ 1,340,031 $ 1,340,289 $ 1,264,294 $ 1,264,506 The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents The carrying amount approximates fair value. Investment in Securities The fair value is measured on a recurring basis using Level 2 valuations. Refer to Note 3, “Investment in Securities,” for fair value and unrealized gains and losses by investment type. Loans The fair value is estimated using present values of future cash flows discounted at risk-adjusted interest rates for each loan category designated by management and is therefore a Level 3 valuation. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses results in a fair valuation. Impaired loans are valued using the fair value of the collateral which is based upon an observable market price or current appraised value and therefore, the fair value is a nonrecurring Level 3 valuation. Accrued Interest Receivable The carrying amount approximates fair value. Deposits The fair value of demand deposits, savings deposits and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities and therefore, is a Level 2 valuation. The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market or the benefit derived from the customer relationship inherent in existing deposits. Accounts and Drafts Payable The carrying amount approximates fair value. Accrued Interest The carrying amount approximates fair value. Limitations Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets or liabilities that are not considered financial assets or liabilities include premises and equipment and the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market (core deposit intangible). In addition, tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. |
Industry Segment Information
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 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 In accordance with FASB ASC 855 - Subsequent Events , the Company has evaluated subsequent events after the consolidated balance sheet date of December 31, 2017, and there were no events identified that would require additional disclosures to prevent the Company’s consolidated financial statements from being misleading. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | Note 18 Condensed Financial Information of Parent Company Following are the condensed balance sheets of the Company (parent company only) and the related condensed statements of income and cash flows. Condensed Balance Sheets December 31, (In thousands) 2017 2016 Assets Cash and due from banks $ 56,462 $ 45,464 Short-term investments 48,324 107,898 Securities available-for-sale, at fair value 470,523 390,552 Loans, net 12,239 47,184 Investments in subsidiaries 113,681 101,824 Premises and equipment, net 20,927 20,375 Other assets 199,865 161,317 Total assets $ 922,021 $ 874,614 Liabilities and Shareholders’ Equity Liabilities: Accounts and drafts payable $ 661,342 $ 640,945 Other liabilities 35,533 25,415 Total liabilities 696,875 666,360 Total shareholders’ equity 225,146 208,254 Total liabilities and shareholders’ equity $ 922,021 $ 874,614 Condensed Statements of Income For the Years Ended December 31, (In thousands) 2017 2016 2015 Income from subsidiaries: Interest $ $ 2 $ 12 Management fees 2,172 2,105 2,201 Income from subsidiaries 2,172 2,107 2,213 Information services revenue 93,133 83,543 78,488 Net interest income after provision 13,217 13,389 13,948 Gain on sales of investment securities 387 2,910 Other income 483 504 613 Total income 109,005 99,930 98,172 Expenses: Salaries and employee benefits 70,409 65,968 63,475 Other expenses 20,333 18,133 16,580 Total expenses 90,742 84,101 80,055 Income before income tax and equity in undistributed income of subsidiaries 18,263 15,829 18,117 Income tax expense 4,394 1,540 2,950 Income before undistributed income of subsidiaries 13,869 14,289 15,167 Equity in undistributed income of subsidiaries 11,145 10,059 7,889 Net income $ 25,014 $ 24,348 $ 23,056 Condensed Statements of Cash Flows For the Years Ended December 31, (In thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 25,014 $ 24,348 $ 23,056 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiaries (11,145 ) (10,059 ) (7,889 ) Net change in other assets (41,013 ) (7,085 ) 16,100 Net change in other liabilities 10,118 6,683 (2,779 ) Amortization of stock-based awards 1,743 1,677 1,504 Other, net 9,219 7,558 10,389 Net cash (used in) provided by operating activities (6,064 ) 23,122 40,381 Cash flows from investing activities: Net increase in securities (80,621 ) (33,025 ) (23,472 ) Net decrease in loans 34,944 40,431 28,343 Purchases of premises and equipment, net (4,020 ) (4,557 ) (5,708 ) Net cash (used in) provided by investing activities (49,697 ) 2,849 (837 ) Cash flows from financing activities: Net increase (decrease) in accounts and drafts payable 20,397 64,026 (78,439 ) Cash dividends paid (10,675 ) (9,979 ) (9,697 ) Purchase of common shares for treasury (2,270 ) (9,215 ) (10,951 ) Other financing activities (267 ) 1,705 66 Net cash provided by (used in) financing activities 7,185 46,537 (99,021 ) Net increase (decrease) in cash and cash equivalents (48,576 ) 72,508 (59,477 ) Cash and cash equivalents at beginning of year 153,362 80,854 140,331 Cash and cash equivalents at end of year $ 104,786 $ 153,362 $ 80,854 |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Income Statement Elements [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION | Note 19 SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) First Second Third Fourth (In thousands except per share data) Quarter Quarter Quarter Quarter YTD 2017 Fee revenue and other income $ 22,771 $ 23,800 $ 24,207 $ 24,734 $ 95,512 Interest income 9,999 10,332 10,665 10,981 41,977 Interest expense 480 470 571 666 2,187 Net interest income 9,519 9,862 10,094 10,315 39,790 Provision for loan losses Operating expense 24,318 24,901 25,042 26,142 100,403 Income tax expense 1,665 2,248 2,396 3,576 * 9,885 * Net income $ 6,307 $ 6,513 $ 6,863 $ 5,331 $ 25,014 Net income per share: Basic earnings per share $ .51 $ .53 $ .56 $ .44 $ 2.04 Diluted earnings per share .51 .52 .55 .43 2.01 2016 Fee revenue and other income $ 20,505 $ 21,457 $ 22,149 $ 22,025 $ 86,136 Interest income 9,777 10,010 9,985 10,158 39,930 Interest expense 513 504 505 507 2,029 Net interest income 9,264 9,506 9,480 9,651 37,901 Provision for loan losses (1,000 ) (500 ) (1,500 ) Operating expense 22,916 23,059 23,552 23,946 93,473 Income tax expense 2,020 2,035 1,855 1,806 7,716 Net income $ 5,833 $ 5,869 $ 6,222 $ 6,424 $ 24,348 Net income per share: Basic earnings per share $ .47 $ .48 $ .51 $ .53 $ 1.99 Diluted earnings per share .47 .47 .50 .52 1.96 (1) |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Operations | Summary of Operations Cass Information Systems, Inc . (the “Company”) provides payment and information services, which include processing and payment of transportation, energy, telecommunications and environmental invoices. These services include the acquisition and management of data, information delivery and financial exchange. The consolidated balance sheet captions, “Accounts and drafts payable” and “Payments in excess of funding,” represent the Company’s resulting financial position related to the payment services that are performed for customers. The Company also provides a full range of banking services to individual, corporate and institutional customers through Cass Commercial Bank (the “Bank”), its wholly owned bank subsidiary. |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany transactions. Certain amounts in the 2016 and 2015 consolidated financial statements have been reclassified to conform to the 2017 presentation. Such reclassifications have no effect on previously reported net income or shareholders’ equity. The Company issued a 10% stock dividend on December 15, 2017. The share and per share information have been restated unless indicated otherwise for all periods presented in the accompanying consolidated financial statements. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements, Company management is required to make estimates and assumptions which significantly affect the reported amounts in the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers cash and due from banks, interest-bearing deposits in other financial institutions, federal funds sold and other short-term investments as segregated in the accompanying consolidated balance sheets to be cash equivalents. |
Investment in Debt Securities | Investment in Debt Securities The Company classifies its debt marketable securities as available-for-sale. Securities classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and reported in accumulated other comprehensive income, a component of shareholders’ equity. A decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. To determine whether impairment is other than temporary, the Company considers guidance provided in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320 - Investments – Debt and Equity Securities . When determining whether a debt security is other-than-temporarily impaired, the Company assesses whether it has the intent to sell the security and whether it is more likely than not that the Company will be required to sell prior to recovery of the amortized cost basis. Evidence considered in this assessment includes the reasons for impairment, the severity and duration of the impairment, changes in value subsequent to year-end and forecasted performance of the investee. Premiums and discounts are amortized or accreted to interest income over the estimated lives of the securities using the level-yield method. Interest income is recognized when earned. Gains and losses are calculated using the specific identification method. |
Allowance for Loan Losses | Allowance for Loan Losses (“ALLL”) The ALLL is increased by provisions charged to expense and is available to absorb charge-offs, net of recoveries. Management utilizes a systematic, documented approach in determining the appropriate level of the ALLL. Management’s approach provides for estimated credit losses on individually evaluated loans in accordance with FASB ASC 310 - Allowance for Credit Losses (“ASC 310”). These estimates are based upon a number of factors, such as payment history, financial condition of the borrower, expected future cash flows and discounted collateral exposure. Estimated credit losses inherent in the remainder of the portfolio are estimated in accordance with FASB ASC 450 - Contingencies . These loans are segmented into groups based on similar risk characteristics. Historical loss rates for each risk group, which are updated quarterly, are generally quantified using all recorded loan charge-offs and recoveries over a prescribed look-back period. These historical loss rates for each risk group are used as the starting point to determine the level of the allowance. The Company’s methodology incorporates an estimated loss emergence period for each risk group. The loss emergence period is the period of time from when a borrower experiences a loss event and when the actual loss is recognized in the financial statements, generally at the time of initial charge-off of the loan balance. The Company’s methodology also includes qualitative risk factors that allow management to adjust its estimates of losses based on the most recent information available and to address other limitations in the quantitative component that is based on historical loss rates. Such risk factors are generally reviewed and updated quarterly, as appropriate, and are adjusted to reflect changes in national and local economic conditions and developments, the volume and severity of delinquent and internally classified loans, loan concentrations, assessment of trends in collateral values, assessment of changes in borrowers’ financial stability, and changes in lending policies and procedures, including underwriting standards and collections, charge-off and recovery practices. Management believes the ALLL is adequate to absorb probable losses in the loan portfolio. Additionally, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to increase the ALLL based on their judgments and interpretations about information available to them at the time of their examinations. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the estimated useful lives of the assets, or the respective lease terms for leasehold improvements, using straight-line and accelerated methods. Estimated useful lives do not exceed 40 years for buildings, the lesser of 10 years or the life of the lease for leasehold improvements and range from 3 to 7 years for software, equipment, furniture and fixtures. Maintenance and repairs are charged to expense as incurred. |
Intangible Assets | Intangible Assets Cost in excess of fair value of net assets acquired has resulted from business acquisitions. Goodwill and intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually. Intangible assets with definite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Periodically, the Company reviews intangible assets for events or changes in circumstances that may indicate that the carrying amount of the assets may not be recoverable. Based on those reviews, adjustments of recorded amounts have not been required. |
Non-marketable Equity Investments | Non-marketable Equity Investments The Company accounts for non-marketable equity investments, in which it holds less than a 20% ownership, under the cost method. Under the cost method of accounting, investments are carried at cost and are adjusted only for other than temporary declines in fair value, distributions of earnings and additional investments. The Company periodically evaluates whether any declines in fair value of its investments are other than temporary. In performing this evaluation, the Company considers various factors including any decline in market price, where available, the investee's financial condition, results of operations, operating trends and other financial ratios. Non-marketable equity investments are included in other assets on the consolidated balance sheets. |
Foreclosed Assets | Foreclosed Assets Real estate acquired as a result of foreclosure is initially recorded at fair value less estimated selling costs. Fair value is generally determined through the receipt of appraisals. Any write down to fair value at the time the property is acquired is recorded as a charge-off to the allowance for loan losses. Any decline in the fair value of the property subsequent to acquisition is recorded as a charge to non-interest expense. |
Treasury Stock | Treasury Stock Purchases of the Company’s common stock are recorded at cost. Upon reissuance, treasury stock is reduced based upon the average cost basis of shares held. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income, changes in net unrealized gains (losses) on available-for-sale securities and pension liability adjustments and is presented in the accompanying consolidated statements of shareholders' equity and consolidated statements of comprehensive income. |
Loans | Loans Interest on loans is recognized based upon the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when there is reasonable doubt as to the collectability of principal or interest. Subsequent payments received on such loans are applied to principal if there is any doubt as to the collectability of such principal; otherwise, these receipts are recorded as interest income. The accrual of interest on a loan is resumed when the loan is current as to payment of both principal and interest and/or the borrower demonstrates the ability to pay and remain current. Loan origination and commitment fees on originated loans, net of certain direct loan origination costs, are deferred and amortized to interest income using the level-yield method over the estimated lives of the related loans. |
Impairment of Loans | Impairment of Loans A loan is considered impaired when it is probable that a creditor will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the loan agreement. When measuring impairment, the expected future cash flows of an impaired loan are discounted at the loan's effective interest rate. Alternatively, impairment could be measured by reference to an observable market price, if one exists, or the fair value of the collateral for a collateral-dependent loan. Regardless of the historical measurement method used, the Company measures impairment based on the fair value of the collateral when the Company determines foreclosure is probable. Additionally, impairment of a restructured loan is measured by discounting the total expected future cash flows at the loan's effective rate of interest as stated in the original loan agreement. The Company uses its nonaccrual methods as discussed above for recognizing interest on impaired loans. |
Information Services Revenue | Information Services Revenue A majority of the Company’s revenues are attributable to fees for providing services. These services include transportation invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The Company also processes, pays and generates management information from electric, gas, telecommunications, environmental, and other invoices. The specific payment and information processing services provided to each customer are developed individually to meet each customer’s specific requirements. The Company enters into service agreements with customers typically for fixed fees per transaction that are invoiced monthly. Revenues are recognized in the period services are rendered and earned under the service agreements, as long as collection is reasonably assured. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced if necessary, by a deferred tax asset valuation allowance. In the event that management determines it is more likely than not that it will not be able to realize all or part of net deferred tax assets in the future, the Company adjusts the recorded value of deferred tax assets, which would result in a direct charge to income tax expense in the period that such determination is made. Likewise, the Company will reverse the valuation allowance when realization of the deferred tax asset is expected. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the weighted average number of potential common shares outstanding. |
Share-Based Compensation | Stock-Based Compensation The Company follows FASB ASC 718 - Accounting for Stock Options and Other Stock-based Compensation (“ASC 718”), which requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the fair value of the award. FASB ASC 718 also requires that excess tax benefits related to stock option exercises and restricted stock awards be reflected as financing cash inflows instead of operating cash inflows. |
Pension Plans | Pension Plans The amounts recognized in the consolidated financial statements related to pension are determined from actuarial valuations. Inherent in these valuations are assumptions including expected return on plan assets, discount rates at which the liabilities could be settled at December 31, 2017, rate of increase in future compensation levels and mortality rates. These assumptions are updated annually and are disclosed in Note 10. The Company follows FASB ASC 715 - Compensation – Retirement Benefits (“ASC 715”), which requires companies to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its consolidated balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the date of its fiscal year-end. |
Fair Value Measurements | Fair Value Measurements The Company follows the provisions of FASB ASC 820 - Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value in GAAP, and outlines disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy for valuation techniques is used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. Financial instrument valuations are considered Level 1 when they are based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instrument valuations use quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Financial instrument valuations are considered Level 3 when they are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable, and when determination of the fair value requires significant management judgment or estimation. The Company records securities available for sale at their fair values on a recurring basis using Level 2 valuations. Additionally, the Company records impaired loans and other real estate owned at their fair value on a nonrecurring basis. The nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or impairment write-downs of individual assets. |
Impact of New and Not Yet Adopted Accounting Pronouncements | Impact of New and Not Yet Adopted Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 – Revenue from Contracts with Customers . The ASU supersedes revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance in the FASB Accounting Standards Codification (“ASC”). The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies specific steps that entities should apply in order to achieve this principle. Under the ASU, the amendments are effective for interim and annual periods beginning January 1, 2018 and must be applied retrospectively. The Company’s revenue is comprised of net interest income on financial assets and liabilities, which is explicitly excluded from the scope, and non-interest income. The Company will use the modified retrospective transition approach and there will not be a significant impact on the Company’s consolidated financial statements or results of operations. In January 2016, the FASB issued ASU No. 2016-01 – Financial Instruments – Overall (ASC Subtopic 825-10) . The ASU requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The standard is effective for fiscal periods beginning January 1, 2018 and will not have a significant impact on the Companys consolidated financial statements or results of operations. In February 2016, the FASB issued ASU No. 2016-02 – Leases (ASC Topic 842) . The ASU improves financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Consistent with current generally accepted accounting principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. A third-party vendor solution has been selected to assist in the application of ASU 2016-02. The impact of the adoption of this ASU is currently being evaluated but is not expected to have a material impact on the Company’s consolidated financial statements or results of operations. In June 2016, the FASB issued ASU No. 2016-13 - Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU requires measurement and recognition of expected credit losses for financial assets held. Under this standard, it will be required to hold an allowance equal to the expected life-of-loan losses on the loan portfolio. The standard is effective for fiscal periods beginning after December 15, 2019. The impact of the adoption of this ASU is currently being evaluated. In February 2018, the FASB issued ASU No. 2018-02 – Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU provides for the reclassification of the effect of remeasuring deferred tax balances related to items within AOCI to retained earnings resulting from the TCJA. The Company early adopted, and as a result, reclassified $2,286,000 from AOCI to retained earnings. |
Capital Requirements and Regu29
Capital Requirements and Regulatory Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Capital Amounts and Ratios | The Company’s and the Bank’s actual and required capital amounts and ratios are as follows: Capital Requirement to be Actual Requirements Well-Capitalized (In thousands) Amount Ratio Amount Ratio Amount Ratio At December 31, 2017 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 234,389 22.53 % $ 83,233 8.00 % $ N/A N/A % Cass Commercial Bank 122,440 17.01 57,568 8.00 71,960 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 224,184 21.55 46,819 4.50 N/A N/A Cass Commercial Bank 114,603 15.93 32,382 4.50 46,774 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 224,184 21.55 62,425 6.00 N/A N/A Cass Commercial Bank 114,603 15.93 43,176 6.00 57,568 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 224,184 13.87 64,649 4.00 N/A N/A Cass Commercial Bank 114,603 14.99 30,581 4.00 38,227 5.00 At December 31, 2016 Total capital (to risk-weighted assets) Cass Information Systems, Inc. $ 219,747 22.75 % $ 77,272 8.00 % $ N/A N/A % Cass Commercial Bank 110,576 16.72 52,898 8.00 66,123 10.00 Common Equity Tier I Capital (to risk-weighted assets) Cass Information Systems, Inc. 209,572 21.70 43,466 4.50 N/A N/A Cass Commercial Bank 102,769 15.54 29,755 4.50 42,980 6.50 Tier I capital (to risk-weighted assets) Cass Information Systems, Inc. 209,572 21.70 57,954 6.00 N/A N/A Cass Commercial Bank 102,769 15.54 39,674 6.00 52,898 8.00 Tier I capital (to average assets) Cass Information Systems, Inc. 209,572 13.83 60,620 4.00 N/A N/A Cass Commercial Bank 102,769 13.98 29,409 4.00 36,761 5.00 |
Investment in Securities (Table
Investment in Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows: December 31, 2017 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 408,165 $ 9,528 $ 661 $ 417,032 U.S. government agencies 46,222 — 722 45,500 Certificates of deposit 7,991 — — 7,991 Total $ 462,378 $ 9,528 $ 1,383 $ 470,523 December 31, 2016 Gross Gross Amortized Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value State and political subdivisions $ 368,223 $ 5,239 $ 3,328 $ 370,134 U.S. government agencies 13,075 — 403 12,672 Certificates of deposit 7,746 — — 7,746 Total $ 389,044 $ 5,239 $ 3,731 $ 390,552 |
Schedule of Fair Value of Securities with Unrealized Losses | The fair values of securities with unrealized losses are as follows: December 31, 2017 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair value Losses State and political subdivisions $ 34,755 $ 123 $ 31,251 $ 538 $ 66,006 $ 661 U.S. government agencies 34,183 376 11,317 346 45,500 722 Certificates of deposit — — — — — — Total $ 68,938 $ 499 $ 42,568 $ 884 $ 111,506 $ 1,383 December 31, 2016 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Fair Value Losses Fair Value Losses Fair value Losses State and political subdivisions $ 140,384 $ 3,328 $ — $ — $ 140,384 $ 3,328 U.S. government agencies 12,672 403 — — 12,672 403 Certificates of deposit — — — — — — Total $ 153,056 $ 3,731 $ — $ — $ 153,056 $ 3,731 |
Schedule of Amortized Cost and Fair Value | The amortized cost and fair value of debt and equity securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. December 31, 2017 (In thousands) Amortized Cost Fair Value Due in 1 year or less $ 22,492 $ 22,638 Due after 1 year through 5 years 57,922 58,425 Due after 5 years through 10 years 256,396 263,961 Due after 10 years 125,568 125,499 No stated maturity — — Total $ 462,378 $ 470,523 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loan Categories | A summary of loan categories is as follows: December 31, (In thousands) 2017 2016 Commercial and industrial $ 236,394 $ 214,767 Real estate Commercial: Mortgage 94,675 104,779 Construction 9,359 6,325 Church, church-related: Mortgage 316,073 321,168 Construction 25,948 11,152 Industrial Revenue Bonds 3,374 6,639 Other 408 36 Total loans $ 686,231 $ 664,866 |
Schedule of the Aging Loans by Loan Categories | The following table presents the aging of loans by loan categories at December 31, 2017: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans Commercial and industrial $ 236,394 $ $ $ $ $ 236,394 Real estate Commercial: Mortgage 94,675 94,675 Construction 9,359 9,359 Church, church-related: Mortgage 316,073 316,073 Construction 25,948 25,948 Industrial Revenue Bonds 3,374 3,374 Other 408 408 Total $ 686,231 $ $ $ $ $ 686,231 The following table presents the aging of loans by loan categories at December 31, 2016: Performing Nonperforming 90 Days 30-59 60-89 and Non- Total (In thousands) Current Days Days Over accrual Loans Commercial and industrial $ 214,767 $ $ $ $ $ 214,767 Real estate Commercial: Mortgage 104,534 245 104,779 Construction 6,325 6,325 Church, church-related: Mortgage 321,168 321,168 Construction 11,152 11,152 Industrial Revenue Bonds 6,639 6,639 Other 24 12 36 Total $ 664,609 $ 12 $ $ $ 245 $ 664,866 |
Schedule of Credit Exposure of the Loan Portfolio | The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2017: Loans Performing Nonperforming Subject to Loans Subject to Loans Subject Normal Special to Special (In thousands) Monitoring (1) Monitoring (2) Monitoring (2) Total Loans Commercial and industrial $ 234,271 $ 2,123 $ — $ 236,394 Real estate Commercial: Mortgage 93,788 887 — 94,675 Construction 9,359 — — 9,359 Church, church-related: Mortgage 316,042 31 — 316,073 Construction 25,948 — — 25,948 Industrial Revenue Bonds 3,374 — — 3,374 Other 408 — — 408 Total $ 683,190 $ 3,041 $ — $ 686,231 (1) Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation. (2) Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of December 31, 2016: Loans Performing Nonperforming Subject to Loans Subject to Loans Subject to Normal Special Special (In thousands) Monitoring (1) Monitoring (2) Monitoring (2) Total Loans Commercial and industrial $ 213,024 $ 1,743 $ — $ 214,767 Real estate Commercial: Mortgage 103,778 756 245 104,779 Construction 6,325 — — 6,325 Church, church-related: Mortgage 318,030 3,138 — 321,168 Construction 11,152 — — 11,152 Industrial Revenue Bonds 6,639 — — 6,639 Other 36 — — 36 Total $ 658,984 $ 5,637 $ 245 $ 664,866 (1) Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation. (2) Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Schedule of Recorded Investment and Unpaid Principal Balance for Impaired Loans | The following table presents the recorded investment and unpaid principal balance for impaired loans at December 31, 2016: Related Unpaid Allowance Recorded Principal for Loan (In thousands) Investment Balance Losses Commercial and industrial: Nonaccrual $ — $ — $ — Real estate Commercial – Mortgage: Nonaccrual 245 245 — Church – Mortgage: Nonaccrual — — — Total impaired loans $ 245 $ 245 $ — |
Summary of the Allowance for Loan Losses | A summary of the activity in the allowance for loan losses is as follows: December 31, Charge- December 31, (In thousands) 2016 Offs Recoveries Provision 2017 Commercial and industrial $ 3,261 $ — $ 30 $ 361 $ 3,652 Real estate Commercial: Mortgage 1,662 — — (268 ) 1,394 Construction 47 — — 23 70 Church, church-related: Mortgage 4,027 — — (65 ) 3,962 Construction 85 — — 111 196 Industrial Revenue Bond 101 — — (49 ) 52 Other 992 — — (113 ) 879 Total $ 10,175 $ — $ 30 $ — $ 10,205 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment is as follows: December 31, (In thousands) 2017 2016 Land $ 873 $ 873 Buildings 13,386 13,087 Leasehold improvements 2,120 2,098 Furniture, fixtures and equipment 14,801 13,248 Purchased software 4,819 4,704 Internally developed software 16,485 14,377 52,484 48,387 Less accumulated depreciation 30,898 27,301 Total $ 21,586 $ 21,086 |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company and its subsidiaries lease various premises and equipment under operating lease agreements which expire at various dates through 2023. Rental expense for 2017, 2016 and 2015 was $1,499,000, $1,397,000 and $1,387,000, respectively. The following is a schedule, by year, of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2017: (In thousands) Amount 2018 $ 1,518 2019 1,270 2020 1,245 2021 1,118 2022 1,086 2023 226 Total $ 6,463 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Intangible Assets | Details of the Company’s intangible assets are as follows: December 31, 2017 December 31, 2016 Gross Carrying Accumulated Gross Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Assets eligible for amortization: Customer lists $ 4,288 $ (2,702 ) $ 3,933 $ (2,342 ) Patent 72 (12 ) 72 (8 ) Non-compete agreements 332 (291 ) 261 (261 ) Software 234 (234 ) 234 (234 ) Other 500 (191 ) 500 (158 ) Unamortized intangible assets: Goodwill (1) 12,796 (227 ) 11,817 (227 ) Total intangible assets $ 18,222 $ (3,657 ) $ 16,817 $ (3,230 ) (1) Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest-Bearing Deposits [Abstract] | |
Schedule of Interest Bearing Deposits | Interest-bearing deposits consist of the following: December 31, (In thousands) 2017 2016 Interest-bearing demand deposits $ 332,881 $ 322,091 Savings deposits 11,168 29,430 Time deposits: Less than $100 2,658 3,523 $100 to less than $250 33,385 37,179 $250 or more 16,455 15,082 Total $ 396,547 $ 407,305 Weighted average interest rate .56 % .48 % |
Schedule of Interest on Deposits | Interest on deposits consists of the following: December 31, (In thousands) 2017 2016 2015 Interest-bearing demand deposits $ 1,611 $ 1,387 $ 1,392 Savings deposits 79 100 65 Time deposits: Less than $100 234 274 346 $100 to less than $250 114 191 119 $250 or more 149 77 189 Total $ 2,187 $ 2,029 $ 2,111 |
Schedule of Maturities of Time Deposits | The scheduled maturities of time deposits are summarized as follows: December 31, 2017 2016 Percent Percent (In thousands) Amount of Total Amount of Total Due within: One year $ 48,370 92.1 % $ 48,740 87.4 % Two years 281 0.5 4,752 8.5 Three years 2,383 4.5 155 0.3 Four years 25 0.1 2,072 3.7 Five years 1,439 2.8 65 0.1 Total $ 52,498 100.0 % $ 55,784 100.0 % |
Common Stock and Earnings per35
Common Stock and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Common Stock Outstanding | The table below shows activity in the outstanding shares of the Company’s common stock during 2017. 2017 Shares outstanding at January 1 11,188,466 10% stock dividend issued December 15, 2017 1,116,711 Issuance of common stock: Employee restricted stock grants 3,825 Employee SARs exercised 7,547 Directors’ compensation 8,389 Shares repurchased (38,042 ) Shares outstanding at December 31 12,286,896 |
Schedule of the Calculations of Basic and Diluted Earnings per Share | The calculations of basic and diluted earnings per share are as follows: December 31, (In thousands except share and per share data) 2017 2016 2015 Basic: Net income $ 25,014 $ 24,348 $ 23,056 Weighted average common shares outstanding 12,250,465 12,265,434 12,494,466 Basic earnings per share $ 2.04 $ 1.99 $ 1.85 Diluted: Net income $ 25,014 $ 24,348 $ 23,056 Weighted average common shares outstanding 12,250,465 12,265,434 12,494,466 Effect of dilutive restricted stock, PBRS and SARs 179,445 172,386 175,784 Weighted average common shares outstanding assuming dilution 12,429,910 12,437,820 12,670,250 Diluted earnings per share $ 2.01 $ 1.96 $ 1.82 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Projected Benefit Obligation | A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows: (In thousands) 2017 2016 Projected benefit obligation: Balance, January 1 $ 85,551 $ 78,369 Service cost 3,733 3,559 Interest cost 3,621 3,505 Actuarial (gain) loss 7,916 2,003 Benefits paid (2,031 ) (1,885 ) Balance, December 31 $ 98,790 $ 85,551 Plan assets: Fair value, January 1 $ 73,168 $ 71,174 Actual return 10,290 3,879 Employer contribution Benefits paid (2,031 ) (1,885 ) Fair value, December 31 $ 81,427 $ 73,168 Funded status: Accrued pension liability $ (17,363 ) $ (12,383 ) |
Schedule of Assumptions used to Determine Projected Benefit Obligation | The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2017, 2016 and 2015, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve. For 2017, the RP-2014 Mortality Table and the MP-2017 Mortality Improvement Table were used. For 2016, the RP-2014 Mortality Table and MP-2016 Mortality Improvement Table were used. For 2015, the RP-2014 Mortality Table and MP-2015 Mortality Improvement Table were used. 2017 2016 2015 Weighted average discount rate 3.75 % 4.25 % 4.50 % Rate of increase in compensation levels (a) (a) (a) (a) 6.0% graded down to 3.25% over the first seven years of service |
Schedule of Expected Pension Benefit Payments | The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan: Amount 2018 $ 2,679,000 2019 2,823,000 2020 3,045,000 2021 3,300,000 2022 3,693,000 2023-2027 23,682,000 |
Schedule of Plan's Pension Costs | The Plan’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2017 2016 2015 Service cost – benefits earned during the year $ 3,733 $ 3,559 $ 3,796 Interest cost on projected benefit obligations 3,621 3,505 3,178 Expected return on plan assets (4,681 ) (4,734 ) (4,864 ) Net amortization and deferral 1,382 1,259 1,542 Net periodic pension cost $ 4,055 $ 3,589 $ 3,652 |
Schedule of Assumptions used to Determine Net Pension Cost | The following represent the major assumptions used to determine the net pension cost of the Plan: 2017 2016 2015 Weighted average discount rate 4.25 % 4.50 % 4.00 % Rate of increase in compensation levels (a) (a) (a) Expected long-term rate of return on assets 6.50 % 6.75 % 6.75 % (a) 6.0% graded down to 3.25% over the first seven years of service |
Schedule of Assumed Long-term Rate of Return on Assets | The expected one-year nominal returns and annual standard deviations are shown by asset class below: One-Year Nominal Annual Standard Asset Class % of Total Portfolio Return Deviation Core Fixed Income 51 % 4.55 % 4.55 % Large Cap U.S. Equities 14 % 7.00 % 15.85 % Small Cap U.S. Equities 5 % 8.10 % 19.70 % International (Developed) 25 % 7.99 % 17.93 % International (Emerging) 5 % 10.56 % 27.35 % |
Summary of the Fair Value Measurements by Type of Asset | A summary of the fair value measurements by type of asset is as follows: Fair Value Measurements as of December 31, 2017 2016 Quoted Prices Quoted Prices in Active in Active Markets for Significant Markets for Significant Identical Observable Identical Observable Assets Inputs Assets Inputs (In thousands) Total (Level 1) (Level 2) Total (Level 1) (Level 2) Cash $ 374 $ 374 $ $ 340 $ 340 $ Equity securities U.S. Large Cap Growth 13,306 13,306 U.S. Small/Mid Cap Growth 4,111 4,111 5,655 5,655 Non-U. S. Core 21,065 21,065 10,588 10,588 U.S. Large Cap Passive 11,717 11,717 7,364 7,364 Emerging Markets 4,052 4,052 652 652 Fixed Income U.S. Core 11,284 11,284 24,438 24,438 U.S. Passive 24,345 24,345 9,571 9,571 Opportunistic 4,479 4,479 1,254 1,254 Total $ 81,427 $ 374 $ 81,053 $ 73,168 $ 340 $ 72,828 |
Supplemental Executive Retirement Plan [Member] | |
Summary of Projected Benefit Obligation | A summary of the activity in the SERP’s projected benefit obligation, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows: December 31, (In thousands) 2017 2016 Benefit obligation: Balance, January 1 $ 9,132 $ 8,748 Service cost 143 133 Interest cost 360 367 Benefits paid (247 ) (247 ) Actuarial (gain) loss 706 131 Balance, December 31 $ 10,094 $ 9,132 |
Schedule of Assumptions used to Determine Projected Benefit Obligation | The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2017, 2016 and 2015, the SERP’s expected benefit cash flows were discounted using the Citigroup Above Median Curve. 2017 2016 2015 Weighted average discount rate 3.50 % 4.00 % 4.25 % Rate of increase in compensation levels (a) (a) (a) (a) 6.00% graded down to 3.25% over the first seven years of service. |
Schedule of Expected Pension Benefit Payments | Expected future benefits payable by the Company over the next ten years are as follows: Amount 2018 $ 314,000 2019 313,000 2020 311,000 2021 367,000 2022 711,000 2023-2027 3,813,000 |
Schedule of Plan's Pension Costs | The SERP’s pension cost included the following components: For the Year Ended December 31, (In thousands) 2017 2016 2015 Service cost – benefits earned during the year $ 143 $ 133 $ 140 Interest cost on projected benefit obligations 360 367 348 Net amortization and deferral 324 295 654 Net periodic pension cost $ 827 $ 795 $ 1,142 |
Schedule of Pretax Amounts in Accumulated Other Comprehensive Loss | The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows: The Plan SERP (In thousands) 2017 2016 2017 2016 Prior service cost $ $ $ $ Net actuarial loss 23,160 22,237 2,388 2,005 Total $ 23,160 $ 22,237 $ 2,388 $ 2,005 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | Changes in restricted shares outstanding for the year ended December 31, 2017 were as follows: Weighted Average Grant Date Shares Fair Value Balance at December 31, 2016 81,269 $ 46.39 Granted 26,064 $ 59.46 Vested (29,167 ) $ 47.58 Forfeited Balance at December 31, 2017 78,166 $ 50.30 |
Schedule of SARs Activity | Changes in SARs outstanding for the year ended December 31, 2017 were as follows: SARs Weighted Average Exercise Price Balance at December 31, 2016 261,206 $ 34.75 Exercised (26,970 ) 33.09 Forfeited Balance at December 31, 2017 234,236 34.97 Exercisable at December 31, 2017 234,236 $ 34.97 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense | Details of other operating expense are as follows: For the Years Ended December 31, (In thousands) 2017 2016 2015 Postage and supplies $ 2,087 $ 1,925 $ 1,954 Promotional expense 2,557 2,187 2,268 Professional fees 1,650 1,930 1,690 Outside service fees 4,424 3,316 2,848 Data processing services 897 372 357 Telecommunications 749 1,000 1,068 Other 1,722 1,913 1,185 Total other operating expense $ 14,086 $ 12,643 $ 11,370 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: For the Years Ended December 31, (In thousands) 2017 2016 2015 Current: Federal $ 4,250 $ 6,456 $ 6,825 State 1,638 941 1,290 Deferred: Federal 4,256 301 (84 ) State (259 ) 18 (53 ) Total income tax expense $ 9,885 $ 7,716 $ 7,978 |
Schedule of Reconciliation of Expected Income Tax Expense (Benefit) | A reconciliation of expected income tax expense (benefit), computed by applying the effective federal statutory rate of 35% for each of 2017, 2016 and 2015 to income before income tax expense is as follows: For the Years Ended December 31, (In thousands) 2017 2016 2015 Expected income tax expense $ 12,214 $ 11,223 $ 10,862 (Reductions) increases resulting from: Tax-exempt income (3,868 ) (3,754 ) (3,704 ) State taxes, net of federal benefit 896 623 804 Share-based compensation adjustment (376 ) Adjustment of deferred tax asset or liability for TCJA 1,824 Other, net (805 ) (376 ) 16 Total income tax expense $ 9,885 $ 7,716 $ 7,978 |
Schedule of Deferred Assets and Liabilities | The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: December 31, (In thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 2,413 $ 3,718 ASC 715 pension funding liability 6,080 8,969 Net operating loss carryforward (1) 76 169 Supplemental executive retirement plan accrual 1,833 2,604 Stock compensation 1,307 1,695 Other 118 177 Total deferred tax assets $ 11,827 $ 17,332 Deferred tax liabilities: Premises and equipment (2,248 ) (2,731 ) Pension (1,379 ) (3,601 ) Intangible/assets (1,091 ) (1,402 ) Unrealized gain on investment in securities available-for-sale (1,938 ) (560 ) Deferred income (2,121 ) Total deferred tax liabilities $ (8,777 ) $ (8,294 ) Net deferred tax assets $ 3,050 $ 9,038 (1) As of December 31, 2017, the Company had approximately $361,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company’s use to approximately $122,000 per year during the carry forward period, which expires in 2020. |
Schedule of the Reconciliation of Unrecognized Tax Benefits | The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is presented in the following table: (In thousands) 2017 2016 2015 Balance at January 1 $ 1,623 $ 1,194 $ 1,117 Changes in unrecognized tax benefits as a result of tax positions taken during a prior year (15 ) 407 10 Changes in unrecognized tax benefits as a result of tax position taken during the current year 263 311 277 Decreases in unrecognized tax benefits relating to settlements with taxing authorities Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (239 ) (289 ) (210 ) Balance at December 31 $ 1,632 $ 1,623 $ 1,194 |
Disclosures about Fair Value 40
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Commitments to Extend Credit, Standby Letters of Credit and Commercial Letters | The following table shows conditional commitments to extend credit, standby letters of credit and commercial letters: December 31, (In thousands) 2017 2016 Conditional commitments to extend credit $ 87,013 $ 45,497 Standby letters of credit 14,347 14,381 Commercial letters of credit 3,246 1,962 |
Schedule of Company's Financial Instruments | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments: December 31, 2017 2016 Carrying Carrying (In thousands) Amount Fair Value Amount Fair Value Balance sheet assets: Cash and cash equivalents $ 228,110 $ 228,110 $ 266,743 $ 266,743 Investment in securities 470,523 470,523 390,552 390,552 Loans, net 676,026 675,020 654,691 652,028 Accrued interest receivable 7,413 7,413 6,543 6,543 Total $ 1,382,072 $ 1,381,066 $ 1,318,529 $ 1,315,866 Balance sheet liabilities: Deposits $ 678,088 $ 678,346 $ 621,961 $ 622,173 Accounts and drafts payable 661,888 661,888 642,287 642,287 Accrued interest payable 55 55 46 46 Total $ 1,340,031 $ 1,340,289 $ 1,264,294 $ 1,264,506 |
Industry Segment Information (T
Industry Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | 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 |
Condensed Financial Informati42
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Following are the condensed balance sheets of the Company (parent company only) and the related condensed statements of income and cash flows. Condensed Balance Sheets December 31, (In thousands) 2017 2016 Assets Cash and due from banks $ 56,462 $ 45,464 Short-term investments 48,324 107,898 Securities available-for-sale, at fair value 470,523 390,552 Loans, net 12,239 47,184 Investments in subsidiaries 113,681 101,824 Premises and equipment, net 20,927 20,375 Other assets 199,865 161,317 Total assets $ 922,021 $ 874,614 Liabilities and Shareholders’ Equity Liabilities: Accounts and drafts payable $ 661,342 $ 640,945 Other liabilities 35,533 25,415 Total liabilities 696,875 666,360 Total shareholders’ equity 225,146 208,254 Total liabilities and shareholders’ equity $ 922,021 $ 874,614 |
Schedule of Condensed Statements of Income | Condensed Statements of Income For the Years Ended December 31, (In thousands) 2017 2016 2015 Income from subsidiaries: Interest $ $ 2 $ 12 Management fees 2,172 2,105 2,201 Income from subsidiaries 2,172 2,107 2,213 Information services revenue 93,133 83,543 78,488 Net interest income after provision 13,217 13,389 13,948 Gain on sales of investment securities 387 2,910 Other income 483 504 613 Total income 109,005 99,930 98,172 Expenses: Salaries and employee benefits 70,409 65,968 63,475 Other expenses 20,333 18,133 16,580 Total expenses 90,742 84,101 80,055 Income before income tax and equity in undistributed income of subsidiaries 18,263 15,829 18,117 Income tax expense 4,394 1,540 2,950 Income before undistributed income of subsidiaries 13,869 14,289 15,167 Equity in undistributed income of subsidiaries 11,145 10,059 7,889 Net income $ 25,014 $ 24,348 $ 23,056 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years Ended December 31, (In thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 25,014 $ 24,348 $ 23,056 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed income of subsidiaries (11,145 ) (10,059 ) (7,889 ) Net change in other assets (41,013 ) (7,085 ) 16,100 Net change in other liabilities 10,118 6,683 (2,779 ) Amortization of stock-based awards 1,743 1,677 1,504 Other, net 9,219 7,558 10,389 Net cash (used in) provided by operating activities (6,064 ) 23,122 40,381 Cash flows from investing activities: Net increase in securities (80,621 ) (33,025 ) (23,472 ) Net decrease in loans 34,944 40,431 28,343 Purchases of premises and equipment, net (4,020 ) (4,557 ) (5,708 ) Net cash (used in) provided by investing activities (49,697 ) 2,849 (837 ) Cash flows from financing activities: Net increase (decrease) in accounts and drafts payable 20,397 64,026 (78,439 ) Cash dividends paid (10,675 ) (9,979 ) (9,697 ) Purchase of common shares for treasury (2,270 ) (9,215 ) (10,951 ) Other financing activities (267 ) 1,705 66 Net cash provided by (used in) financing activities 7,185 46,537 (99,021 ) Net increase (decrease) in cash and cash equivalents (48,576 ) 72,508 (59,477 ) Cash and cash equivalents at beginning of year 153,362 80,854 140,331 Cash and cash equivalents at end of year $ 104,786 $ 153,362 $ 80,854 |
SUPPLEMENTARY FINANCIAL INFOR43
SUPPLEMENTARY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Income Statement Elements [Abstract] | |
Schedule of Quarterly Financial Information | First Second Third Fourth (In thousands except per share data) Quarter Quarter Quarter Quarter YTD 2017 Fee revenue and other income $ 22,771 $ 23,800 $ 24,207 $ 24,734 $ 95,512 Interest income 9,999 10,332 10,665 10,981 41,977 Interest expense 480 470 571 666 2,187 Net interest income 9,519 9,862 10,094 10,315 39,790 Provision for loan losses Operating expense 24,318 24,901 25,042 26,142 100,403 Income tax expense 1,665 2,248 2,396 3,576 * 9,885 * Net income $ 6,307 $ 6,513 $ 6,863 $ 5,331 $ 25,014 Net income per share: Basic earnings per share $ .51 $ .53 $ .56 $ .44 $ 2.04 Diluted earnings per share .51 .52 .55 .43 2.01 2016 Fee revenue and other income $ 20,505 $ 21,457 $ 22,149 $ 22,025 $ 86,136 Interest income 9,777 10,010 9,985 10,158 39,930 Interest expense 513 504 505 507 2,029 Net interest income 9,264 9,506 9,480 9,651 37,901 Provision for loan losses (1,000 ) (500 ) (1,500 ) Operating expense 22,916 23,059 23,552 23,946 93,473 Income tax expense 2,020 2,035 1,855 1,806 7,716 Net income $ 5,833 $ 5,869 $ 6,222 $ 6,424 $ 24,348 Net income per share: Basic earnings per share $ .47 $ .48 $ .51 $ .53 $ 1.99 Diluted earnings per share .47 .47 .50 .52 1.96 (1) |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Dec. 15, 2017 | Dec. 31, 2017 | Feb. 28, 2018 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||||
Percentage holding required to account investments under non-marketable equity investments | 20.00% | |||
Percentage of dividend | 10.00% | |||
Retained earnings | $ 59,314 | $ 118,363 | ||
Subsequent Event [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Retained earnings | $ 2,286 | |||
Building [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 40 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 10 years | |||
Software, Equipment, Furniture and Fixtures [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 7 years | |||
Software, Equipment, Furniture and Fixtures [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives | 3 years |
Capital Requirements and Regu45
Capital Requirements and Regulatory Restrictions (Narrative) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Regulatory Capital Requirements [Abstract] | |
Unappropriated retained earnings | $ 30,137 |
Capital Requirements and Regu46
Capital Requirements and Regulatory Restrictions (Schedule of Capital Amounts and Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cass Information Systems Inc. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 234,389 | $ 219,747 |
Common Equity Tier I Capital (to risk-weighted assets), actual amount | 224,184 | 209,572 |
Tier I capital (to risk-weighted assets), actual amount | 224,184 | 209,572 |
Tier I capital (to average assets), actual amount | $ 224,184 | $ 209,572 |
Total capital (to risk-weighted assets), actual ratio | 22.53% | 22.75% |
Common Equity Tier I Capital (to risk-weighted assets), actual ratio | 21.55% | 21.70% |
Tier I capital (to risk-weighted assets), actual ratio | 21.55% | 21.70% |
Tier I capital (to average assets), actual ratio | 13.87% | 13.83% |
Total capital (to risk-weighted assets), capital requirements amount | $ 83,233 | $ 77,272 |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements amount | 46,819 | 43,466 |
Tier I capital (to risk-weighted assets), capital requirements amount | 62,425 | 57,954 |
Tier I capital (to average assets), capital requirements amount | $ 64,649 | $ 60,620 |
Total capital (to risk-weighted assets), capital requirements ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements ratio | 4.50% | 4.50% |
Tier I capital (to risk-weighted assets), capital requirements ratio | 6.00% | 6.00% |
Tier I capital (to average assets), capital requirements ratio | 4.00% | 4.00% |
Cass Commercial Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 122,440 | $ 110,576 |
Common Equity Tier I Capital (to risk-weighted assets), actual amount | 114,603 | 102,769 |
Tier I capital (to risk-weighted assets), actual amount | 114,603 | 102,769 |
Tier I capital (to average assets), actual amount | $ 114,603 | $ 102,769 |
Total capital (to risk-weighted assets), actual ratio | 17.01% | 16.72% |
Common Equity Tier I Capital (to risk-weighted assets), actual ratio | 15.93% | 15.54% |
Tier I capital (to risk-weighted assets), actual ratio | 15.93% | 15.54% |
Tier I capital (to average assets), actual ratio | 14.99% | 13.98% |
Total capital (to risk-weighted assets), capital requirements amount | $ 57,568 | $ 52,898 |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements amount | 32,382 | 29,755 |
Tier I capital (to risk-weighted assets), capital requirements amount | 43,176 | 39,674 |
Tier I capital (to average assets), capital requirements amount | $ 30,581 | $ 29,409 |
Total capital (to risk-weighted assets), capital requirements ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to risk-weighted assets), capital requirements ratio | 4.50% | 4.50% |
Tier I capital (to risk-weighted assets), capital requirements ratio | 6.00% | 6.00% |
Tier I capital (to average assets), capital requirements ratio | 4.00% | 4.00% |
Total capital (to risk-weighted assets), requirement to be well capitalized amount | $ 71,960 | $ 66,123 |
Common Equity Tier I Capital (to risk-weighted assets), requirement to be well capitalized amount | 46,774 | 42,980 |
Tier I capital (to risk-weighted assets), requirement to be well capitalized amount | 57,568 | 52,898 |
Tier I capital (to average assets), requirement to be well capitalized amount | $ 38,227 | $ 36,761 |
Total capital (to risk-weighted assets), requirement to be well capitalized ratio | 10.00% | 10.00% |
Common Equity Tier I Capital (to risk-weighted assets), requirement to be well capitalized ratio | 6.50% | 6.50% |
Tier I capital (to risk-weighted assets), requirement to be well capitalized ratio | 8.00% | 8.00% |
Tier I capital (to average assets), requirement to be well capitalized ratio | 5.00% | 5.00% |
Investment in Securities (Narra
Investment in Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of securities that had an unrealized loss | 64 | 108 | |
Number of securities that had an unrealized loss, greater than 12 months | 24 | ||
Percentage of total securities | 17.00% | ||
Premium related to purchase of state and political subdivisions | $ 7,147 | $ 5,749 | |
Securities pledged as collateral | 3,750 | 3,750 | |
Proceeds from sales of securities available-for-sale | 21,491 | $ 99,347 | |
Gross realized gains | 0 | 387 | 2,910 |
Gross realized losses | $ 0 | $ 0 | $ 0 |
Investment in Securities (Sched
Investment in Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Fair Value | $ 470,523 | $ 390,552 |
Gross Unrealized Gains | 9,528 | 5,239 |
Gross Unrealized Losses | 1,383 | 3,731 |
Amortized Cost | 462,378 | 389,044 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Fair Value | 417,032 | 370,134 |
Gross Unrealized Gains | 9,528 | 5,239 |
Gross Unrealized Losses | 661 | 3,328 |
Amortized Cost | 408,165 | 368,223 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Fair Value | 45,500 | 12,672 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 722 | 403 |
Amortized Cost | 46,222 | 13,075 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Fair Value | 7,991 | 7,746 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Amortized Cost | $ 7,991 | $ 7,746 |
Investment in Securities (Sch49
Investment in Securities (Schedule of the Fair Values of Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Estimated fair value less than 12 months | $ 68,938 | $ 153,056 |
Estimated fair value 12 months or more | 42,568 | |
Estimated fair value total | 111,506 | 153,056 |
Unrealized losses, less than 12 months | 499 | 3,731 |
Unrealized losses, 12 months or more | 884 | |
Unrealized losses, total | 1,383 | 3,731 |
State and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Estimated fair value less than 12 months | 34,755 | 140,384 |
Estimated fair value 12 months or more | 31,251 | |
Estimated fair value total | 66,006 | 140,384 |
Unrealized losses, less than 12 months | 123 | 3,328 |
Unrealized losses, 12 months or more | 538 | |
Unrealized losses, total | 661 | 3,328 |
U.S. government agencies [Member] | ||
Investment [Line Items] | ||
Estimated fair value less than 12 months | 34,183 | 12,672 |
Estimated fair value 12 months or more | 11,317 | |
Estimated fair value total | 45,500 | 12,672 |
Unrealized losses, less than 12 months | 376 | 403 |
Unrealized losses, 12 months or more | 346 | |
Unrealized losses, total | 722 | 403 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Estimated fair value less than 12 months | ||
Estimated fair value 12 months or more | ||
Estimated fair value total | ||
Unrealized losses, less than 12 months | ||
Unrealized losses, 12 months or more | ||
Unrealized losses, total |
Investment in Securities (Sch50
Investment in Securities (Schedule of Amortized Cost and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 22,492 | |
Amortized Cost, Due after 1 year through 5 years | 57,922 | |
Amortized Cost, Due after 5 years through 10 years | 256,396 | |
Amortized Cost, Due after 10 years | 125,568 | |
Amortized Cost, No stated maturity | ||
Amortized Cost, Total | 462,378 | |
Fair Value, Due in 1 year or less | 22,638 | |
Fair Value, Due after 1 year through 5 years | 58,425 | |
Fair Value, Due after 5 years through 10 years | 263,961 | |
Fair Value, Due after 10 years | 125,499 | |
Fair Value, No stated maturity | ||
Available-for-sale Securities, Total | $ 470,523 | $ 390,552 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Impaired loans, ALLL | $ 0 | $ 0 | |
Nonaccrual loans | 0 | 245 | |
Delinquent loans still accruing interest | 0 | 0 | |
Loans classified as troubled debt restructuring | 0 | 0 | |
Average balance of impaired loans | 166 | 333 | $ 3,188 |
Income recognized on nonaccrual loans under original terms of contract | 24 | 66 | 390 |
Income recognized on nonaccrual loans | $ 17 | $ 47 | $ 34 |
Loans (Summary of Loan Categori
Loans (Summary of Loan Categories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 686,231 | $ 664,866 |
Commercial and Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 236,394 | 214,767 |
Real Estate Commercial Mortgage [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 94,675 | 104,779 |
Real Estate Commercial Construction [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 9,359 | 6,325 |
Real Estate Church Related Mortgage [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 316,073 | 321,168 |
Real Estate Church Related Construction [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 25,948 | 11,152 |
Industrial Revenue Bonds [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | 3,374 | 6,639 |
Other Loan [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Loans | $ 408 | $ 36 |
Loans (Schedule of the Aging of
Loans (Schedule of the Aging of Loans by Loan Categories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | $ 245 | |
Total Loans | $ 686,231 | 664,866 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 236,394 | 214,767 |
Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 245 | |
Total Loans | 94,675 | 104,779 |
Real Estate Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 9,359 | 6,325 |
Real Estate Church Related Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 316,073 | 321,168 |
Real Estate Church Related Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 25,948 | 11,152 |
Industrial Revenue Bonds [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 3,374 | 6,639 |
Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | ||
Total Loans | 408 | 36 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 686,231 | 664,609 |
Current [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 236,394 | 214,767 |
Current [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 94,675 | 104,534 |
Current [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 9,359 | 6,325 |
Current [Member] | Real Estate Church Related Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 316,073 | 321,168 |
Current [Member] | Real Estate Church Related Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 25,948 | 11,152 |
Current [Member] | Industrial Revenue Bonds [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,374 | 6,639 |
Current [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 408 | 24 |
30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 12 | |
30-59 Days [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Church Related Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Real Estate Church Related Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Industrial Revenue Bonds [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
30-59 Days [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 12 | |
60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Church Related Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Real Estate Church Related Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Industrial Revenue Bonds [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
60-89 Days [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Church Related Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Real Estate Church Related Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Industrial Revenue Bonds [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | ||
90 Days and over [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans |
Loans (Schedule of the Credit E
Loans (Schedule of the Credit Exposure of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 686,231 | $ 664,866 | |
Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 683,190 | 658,984 |
Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | 3,041 | 5,637 |
Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | 245 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 236,394 | 214,767 | |
Commercial and Industrial [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 234,271 | 213,024 |
Commercial and Industrial [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | 2,123 | 1,743 |
Commercial and Industrial [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Real Estate Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 94,675 | 104,779 | |
Real Estate Commercial Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 93,788 | 103,778 |
Real Estate Commercial Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | 887 | 756 |
Real Estate Commercial Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | 245 | |
Real Estate Commercial Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 9,359 | 6,325 | |
Real Estate Commercial Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 9,359 | 6,325 |
Real Estate Commercial Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Real Estate Commercial Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Real Estate Church Related Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 25,948 | 11,152 | |
Real Estate Church Related Construction [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 25,948 | 11,152 |
Real Estate Church Related Construction [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Real Estate Church Related Construction [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Real Estate Church Related Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 316,073 | 321,168 | |
Real Estate Church Related Mortgage [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 316,042 | 318,030 |
Real Estate Church Related Mortgage [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | 31 | 3,138 |
Real Estate Church Related Mortgage [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Industrial Revenue Bonds [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,374 | 6,639 | |
Industrial Revenue Bonds [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 3,374 | 6,639 |
Industrial Revenue Bonds [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Industrial Revenue Bonds [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 408 | 36 | |
Other [Member] | Loans Subject To Normal Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [1] | 408 | 36 |
Other [Member] | Performing Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
Other [Member] | Nonperforming Loans Subject To Special Monitoring [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | [2] | ||
[1] | Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation. | ||
[2] | Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention. |
Loans (Schedule of Recorded Inv
Loans (Schedule of Recorded Investment and Unpaid Principal for Impaired Loans) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | $ 245 |
Recorded Investment [Member] | |
Financing Receivable, Modifications [Line Items] | |
Fair value of impaired loan | 245 |
Upaid Principal Balance [Member] | |
Financing Receivable, Modifications [Line Items] | |
Fair value of impaired loan | 245 |
Related Allowance for Loan Losses [Member] | |
Financing Receivable, Modifications [Line Items] | |
Fair value of impaired loan | |
Commercial and Industrial [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Commercial and Industrial [Member] | Recorded Investment [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Commercial and Industrial [Member] | Upaid Principal Balance [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Commercial and Industrial [Member] | Related Allowance for Loan Losses [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Real Estate Commercial Mortgage [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | 245 |
Real Estate Commercial Mortgage [Member] | Recorded Investment [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | 245 |
Real Estate Commercial Mortgage [Member] | Upaid Principal Balance [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | 245 |
Real Estate Commercial Mortgage [Member] | Related Allowance for Loan Losses [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Real Estate Church Related Mortgage [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Real Estate Church Related Mortgage [Member] | Recorded Investment [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Real Estate Church Related Mortgage [Member] | Upaid Principal Balance [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual | |
Real Estate Church Related Mortgage [Member] | Related Allowance for Loan Losses [Member] | |
Financing Receivable, Modifications [Line Items] | |
Non Accrual |
Loans (Summary of Allowance for
Loans (Summary of Allowance for Loan Losses) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | $ 10,175 |
Charge-Offs | |
Recoveries | 30 |
Provision | |
Allowance for loan losses, Ending Balance | 10,205 |
Commercial and Industrial [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 3,261 |
Charge-Offs | |
Recoveries | 30 |
Provision | 361 |
Allowance for loan losses, Ending Balance | 3,652 |
Real Estate Commercial Mortgage [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 1,662 |
Charge-Offs | |
Recoveries | |
Provision | (268) |
Allowance for loan losses, Ending Balance | 1,394 |
Real Estate Commercial Construction [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 47 |
Charge-Offs | |
Recoveries | |
Provision | 23 |
Allowance for loan losses, Ending Balance | 70 |
Real Estate Church Related Mortgage [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 4,027 |
Charge-Offs | |
Recoveries | |
Provision | (65) |
Allowance for loan losses, Ending Balance | 3,962 |
Real Estate Church Related Construction [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 85 |
Charge-Offs | |
Recoveries | |
Provision | 111 |
Allowance for loan losses, Ending Balance | 196 |
Industrial Revenue Bonds [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 101 |
Charge-Offs | |
Recoveries | |
Provision | (49) |
Allowance for loan losses, Ending Balance | 52 |
Other [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Allowance for loan losses, Beginning Balance | 992 |
Charge-Offs | |
Recoveries | |
Provision | (113) |
Allowance for loan losses, Ending Balance | $ 879 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 3,627 | $ 3,245 | $ 3,008 |
Rent expense | $ 1,499 | $ 1,397 | $ 1,387 |
Premises and Equipment (Summary
Premises and Equipment (Summary of Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 52,484 | $ 48,387 |
Less accumulated depreciation | 30,898 | 27,301 |
Total | 21,586 | 21,086 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 873 | 873 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,386 | 13,087 |
Leaseholds and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,120 | 2,098 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 14,801 | 13,248 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,819 | 4,704 |
Internally Developed Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 16,485 | $ 14,377 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of Future Minimum Rental Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 1,518 |
2,019 | 1,270 |
2,020 | 1,245 |
2,021 | 1,118 |
2,022 | 1,086 |
2,023 | 226 |
Total | $ 6,463 |
Acquired Intangible Assets (Nar
Acquired Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 427 | $ 408 | $ 408 |
2,018 | 442 | ||
2,019 | 412 | ||
2,020 | 406 | ||
2,021 | 406 | ||
2,022 | 88 | ||
Recorded intangible assets | 1,405 | ||
Customer Lists [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Recorded intangible assets | $ 355 | ||
Customer Lists [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 7 years | ||
Customer Lists [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Patents [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 18 years | ||
Noncompete Agreements [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Recorded intangible assets | $ 71 | ||
Noncompete Agreements [Member] | Minimum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 2 years | ||
Noncompete Agreements [Member] | Maximum [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 5 years | ||
Software [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 3 years | ||
Other Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 15 years | ||
Goodwill [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Recorded intangible assets | $ 979 |
Acquired Intangible Assets (Sch
Acquired Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets eligible for amortization: | |||
Gross Carrying Amount | $ 18,222 | $ 16,817 | |
Accumulated Amortization | (3,657) | (3,230) | |
Unamortized intangible assets: | |||
Goodwill, Gross Carrying Amount | [1] | 12,796 | 11,817 |
Goodwill, Accumulated Amortization | [1] | (227) | (227) |
Customer Lists [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 4,288 | 3,933 | |
Accumulated Amortization | (2,702) | (2,342) | |
Patents [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 72 | 72 | |
Accumulated Amortization | (12) | (8) | |
Noncompete Agreements [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 332 | 261 | |
Accumulated Amortization | (291) | (261) | |
Software [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 234 | 234 | |
Accumulated Amortization | (234) | (234) | |
Other Intangible Assets [Member] | |||
Assets eligible for amortization: | |||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | $ (191) | $ (158) | |
[1] | Amortization through December 31, 2001 prior to adoption of FASB ASC 350. |
Interest-Bearing Deposits (Sche
Interest-Bearing Deposits (Schedule of Interest-bearing Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Interest-Bearing Deposits [Abstract] | ||
Interest-bearing demand deposits | $ 332,881 | $ 322,091 |
Savings deposits | 11,168 | 29,430 |
Time deposits: | ||
Less than $100 | 2,658 | 3,523 |
$100 to less than $250 | 33,385 | 37,179 |
$250 or more | 16,455 | 15,082 |
Total | $ 396,547 | $ 407,305 |
Weighted average interest rate | 0.56% | 0.48% |
Interest-Bearing Deposits (Sc63
Interest-Bearing Deposits (Schedule of Interest on Deposits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest-Bearing Deposits [Abstract] | |||
Interest-bearing demand deposits | $ 1,611 | $ 1,387 | $ 1,392 |
Savings deposits | 79 | 100 | 65 |
Time deposits: | |||
Less than $100 | 234 | 274 | 346 |
$100 to less than $250 | 114 | 191 | 119 |
$250 or more | 149 | 77 | 189 |
Total | $ 2,187 | $ 2,029 | $ 2,111 |
Interest-Bearing Deposits (Sc64
Interest-Bearing Deposits (Schedule of Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Due within: | ||
One year | $ 48,370 | $ 48,740 |
Two years | 281 | 4,752 |
Three years | 2,383 | 155 |
Four years | 25 | 2,072 |
Five years | 1,439 | 65 |
Total | $ 52,498 | $ 55,784 |
Percent of Total One year | 92.10% | 87.40% |
Percent of Total Two years | 0.50% | 8.50% |
Percent of Total Three years | 4.50% | 0.30% |
Percent of Total Four years | 0.10% | 3.70% |
Percent of Total Five years | 2.80% | 0.10% |
Total | 100.00% | 100.00% |
Unused Available Lines of Cre65
Unused Available Lines of Credit (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Unsecured Debt [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | $ 68,000 |
Unsecured Debt [Member] | US Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 20,000 |
Unsecured Debt [Member] | Wells Fargo Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 15,000 |
Unsecured Debt [Member] | PNC Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 12,000 |
Unsecured Debt [Member] | Frost National Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 10,000 |
Unsecured Debt [Member] | JPM Chase Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 6,000 |
Unsecured Debt [Member] | UMB Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 5,000 |
Secured Debt [Member] | UMB Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 50,000 |
Secured Debt [Member] | Federal Home Loan Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | 204,789 |
Secured Debt [Member] | First Tennessee Bank [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit amount | $ 50,000 |
Common Stock and Earnings per66
Common Stock and Earnings per Share (Schedule of Common Stock Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
Earnings Per Share [Abstract] | |
Shares outstanding at January 1 | 11,188,466 |
10% stock dividend issued December 15, 2017 | 1,116,711 |
Issuance of common stock: | |
Employee restricted stock grants | 3,825 |
Employee SARs exercised | 7,547 |
Directors' compensation | 8,389 |
Shares repurchased | (38,042) |
Shares outstanding at December 31 | 12,286,896 |
Common Stock and Earnings per67
Common Stock and Earnings per Share (Schedule of Calculations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic | |||||||||||
Net income | $ 5,331 | $ 6,863 | $ 6,513 | $ 6,307 | $ 6,424 | $ 6,222 | $ 5,869 | $ 5,833 | $ 25,014 | $ 24,348 | $ 23,056 |
Weighted average common shares outstanding (in shares) | 12,250,465 | 12,265,434 | 12,494,466 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.44 | $ 0.56 | $ 0.53 | $ 0.51 | $ .53 | $ .51 | $ .48 | $ .47 | $ 2.04 | $ 1.99 | $ 1.85 |
Diluted | |||||||||||
Net income | $ 5,331 | $ 6,863 | $ 6,513 | $ 6,307 | $ 6,424 | $ 6,222 | $ 5,869 | $ 5,833 | $ 25,014 | $ 24,348 | $ 23,056 |
Weighted average common shares outstanding (in shares) | 12,250,465 | 12,265,434 | 12,494,466 | ||||||||
Effect of dilutive restricted stock, PBRS and SARs (in shares) | 179,445 | 172,386 | 175,784 | ||||||||
Weighted average common shares outstanding assuming dilution (in shares) | 12,429,910 | 12,437,820 | 12,670,250 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.55 | $ 0.52 | $ 0.51 | $ .52 | $ .50 | $ .47 | $ .47 | $ 2.01 | $ 1.96 | $ 1.82 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits paid | $ 2,031 | $ 1,885 | |
Defined contribution plan, contribution amount | 925 | 658 | $ 623 |
Defined Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 85,236 | 74,425 | |
Recognized prior service (cost) benefit | 0 | ||
Net gains (losses) as a component of net periodic benefit cost | 1,409 | ||
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 8,734 | 7,904 | |
Contributions for plan | 5,799 | 5,367 | 5,211 |
Benefits paid | 247 | $ 247 | $ 243 |
Recognized prior service (cost) benefit | 0 | ||
Net gains (losses) as a component of net periodic benefit cost | $ 582 | ||
Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset | 51.00% | ||
U.S. Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset | 25.00% | ||
Non-U.S. Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset | 30.00% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Projected benefit obligation: | ||
Balance, January 1 | $ 85,551 | $ 78,369 |
Service cost | 3,733 | 3,559 |
Interest cost | 3,621 | 3,505 |
Actuarial (gain) loss | 7,916 | 2,003 |
Benefits paid | (2,031) | (1,885) |
Balance, December 31 | 98,790 | 85,551 |
Plan assets: | ||
Fair value, January 1 | 73,168 | 71,174 |
Actual return | 10,290 | 3,879 |
Employer contribution | ||
Benefits paid | (2,031) | (1,885) |
Fair value, December 31 | 81,427 | 73,168 |
Funded status: | ||
Accrued pension liability | $ (17,363) | $ (12,383) |
Employee Benefit Plans (Sched70
Employee Benefit Plans (Schedule of Assumptions used to Determine the Projected Benefit Obligation) (Details) - Defined Benefit Plan [Member] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average discount rate | 3.75% | 4.25% | 4.50% | |
Rate of increase in compensation levels | [1] | |||
[1] | 6.0% graded down to 3.25% over the first seven years of service |
Employee Benefit Plans (Sched71
Employee Benefit Plans (Schedule of Expected Pension Benefit Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Retirement Benefits [Abstract] | |
2,018 | $ 2,679 |
2,019 | 2,823 |
2,020 | 3,045 |
2,021 | 3,300 |
2,022 | 3,693 |
2023-2027 | $ 23,682 |
Employee Benefit Plans (Sched72
Employee Benefit Plans (Schedule of Plan's Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 3,733 | $ 3,559 | |
Interest cost on projected benefit obligations | 3,621 | 3,505 | |
Defined Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 3,733 | 3,559 | $ 3,796 |
Interest cost on projected benefit obligations | 3,621 | 3,505 | 3,178 |
Expected return on plan assets | (4,681) | (4,734) | (4,864) |
Net amortization and deferral | 1,382 | 1,259 | 1,542 |
Net periodic pension cost | $ 4,055 | $ 3,589 | $ 3,652 |
Employee Benefit Plans (Sched73
Employee Benefit Plans (Schedule of Assumptions used to Determine Net Pension Cost) (Details) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Retirement Benefits [Abstract] | ||||
Weighted average discount rate | 4.25% | 4.50% | 4.00% | |
Rate of increase in compensation levels | [1] | |||
Expected long-term rate of return on assets | 6.50% | 6.75% | 6.75% | |
[1] | 6.0% graded down to 3.25% over the first seven years of service |
Employee Benefit Plans (Sched74
Employee Benefit Plans (Schedule of Long-term Rate of Return on Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Fixed Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 51.00% |
One-Year Nominal Return | 4.55% |
Annual Standard Deviation | 4.55% |
Large Cap U.S. Equities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 14.00% |
One-Year Nominal Return | 7.00% |
Annual Standard Deviation | 15.85% |
Small Cap U.S. Equities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 5.00% |
One-Year Nominal Return | 8.10% |
Annual Standard Deviation | 19.70% |
International (Developed) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 25.00% |
One-Year Nominal Return | 7.99% |
Annual Standard Deviation | 17.93% |
International (Emerging) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent of Total Portfolio | 5.00% |
One-Year Nominal Return | 10.56% |
Annual Standard Deviation | 27.35% |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of the Fair Value Measurements by Type of Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 81,427 | $ 73,168 | $ 71,174 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 374 | 340 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 81,053 | 72,828 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 374 | 340 | |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 374 | 340 | |
Cash [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Large Cap Growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 13,306 | ||
U.S. Large Cap Growth [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Large Cap Growth [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 13,306 | ||
U.S. Small/Mid Cap Growth [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,111 | 5,655 | |
U.S. Small/Mid Cap Growth [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Small/Mid Cap Growth [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,111 | 5,655 | |
Non-U.S. Core [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 21,065 | 10,558 | |
Non-U.S. Core [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
Non-U.S. Core [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 21,065 | 10,558 | |
U.S. Large Cap Passive [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,717 | 7,364 | |
U.S. Large Cap Passive [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Large Cap Passive [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,717 | 7,364 | |
Emerging Markets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,052 | 652 | |
Emerging Markets [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
Emerging Markets [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,052 | 652 | |
U.S. Core Opportunistic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,284 | 24,438 | |
U.S. Core Opportunistic [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Core Opportunistic [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11,284 | 24,438 | |
U.S. Passive [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 24,345 | 9,571 | |
U.S. Passive [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
U.S. Passive [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 24,345 | 9,571 | |
Opportunistic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,479 | 1,254 | |
Opportunistic [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | |||
Opportunistic [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 4,479 | $ 1,254 |
Employee Benefit Plans (Summa76
Employee Benefit Plans (Summary of the Activity in the SERP's Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Benefit obligation: | |||
Balance, January 1 | $ 85,551 | $ 78,369 | |
Service cost | 3,733 | 3,559 | |
Interest cost | 3,621 | 3,505 | |
Benefits paid | (2,031) | (1,885) | |
Actuarial (gain) loss | 7,916 | 2,003 | |
Balance, December 31 | 98,790 | 85,551 | $ 78,369 |
Supplemental Executive Retirement Plan [Member] | |||
Benefit obligation: | |||
Balance, January 1 | 9,132 | 8,748 | |
Service cost | 143 | 133 | 140 |
Interest cost | 360 | 367 | 348 |
Benefits paid | (247) | (247) | (243) |
Actuarial (gain) loss | 706 | 131 | |
Balance, December 31 | $ 10,094 | $ 9,132 | $ 8,748 |
Employee Benefit Plans (Sched77
Employee Benefit Plans (Schedule of Assumptions used to Determine Projected Benefit Obligation of the SERP) (Details) - Supplemental Executive Retirement Plan [Member] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average discount rate | 3.50% | 4.00% | 4.25% | |
Rate of increase in compensation levels | [1] | |||
[1] | 6.0% graded down to 3.25% over the first seven years of service |
Employee Benefit Plans (Sched78
Employee Benefit Plans (Schedule of Expected Future Benefits Payable) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 2,679 |
2,019 | 2,823 |
2,020 | 3,045 |
2,021 | 3,300 |
2,022 | 3,693 |
2023-2027 | 23,682 |
Supplemental Executive Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 314 |
2,019 | 313 |
2,020 | 311 |
2,021 | 367 |
2,022 | 711 |
2023-2027 | $ 3,813 |
Employee Benefit Plans (Sched79
Employee Benefit Plans (Schedule of SERP's Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 3,733 | $ 3,559 | |
Interest cost on projected benefit obligations | 3,621 | 3,505 | |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 143 | 133 | $ 140 |
Interest cost on projected benefit obligations | 360 | 367 | 348 |
Net amortization and deferral | 324 | 295 | 654 |
Net periodic pension cost | $ 827 | $ 795 | $ 1,142 |
Employee Benefit Plans (Sched80
Employee Benefit Plans (Schedule of the Pretax amounts in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | ||
Net actuarial loss | 23,160 | 22,237 |
Total | 23,160 | 22,237 |
Supplemental Executive Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | ||
Net actuarial loss | 2,388 | 2,005 |
Total | $ 2,388 | $ 2,005 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance | 1,500,000 | |||
Percentage of dividend | 10.00% | |||
Share-Based Compensation | $ 2,339 | $ 1,959 | $ 2,059 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 26,064 | 39,816 | 47,065 | |
Shares granted, weighted average grant date market value | $ 45.75 | $ 46.40 | ||
Vesting period | 3 years | 3 years | ||
Amortization of restricted stock bonus | $ 1,743 | $ 1,712 | $ 1,514 | |
Total unrecognized compensation expense | $ 1,345 | |||
Total unrecognized compensation expense, weighted average period | 7 months 17 days | |||
Total fair value of shares vested | $ 1,550 | 1,500 | $ 1,089 | |
Fair value of granted shares per share | $ 59.46 | |||
Performance-based restricted shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 25,342 | |||
Vesting period | 3 years | |||
Fair value of granted shares per share | $ 59.20 | |||
Expense incurred to grant shares | $ 579 | |||
Percentage of financial goal | 124.00% | |||
Performance-based restricted shares [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target opportunity for awards to vest | 0.00% | |||
Performance-based restricted shares [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of target opportunity for awards to vest | 150.00% | |||
SARs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation expense | $ 0 | |||
Total intrinsic value of options exercised | $ 892 | $ 2,162 | ||
Average remaining contractual term | 5 years 11 days | 5 years 2 months 19 days | ||
Outstanding, Aggregate Intrinsic Value | $ 7,291 | $ 8,395 | ||
Share-Based Compensation | $ 18 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule of Restricted Stock Outstanding) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Balance at December 31, 2016 | 81,269 | ||
Granted | 26,064 | 39,816 | 47,065 |
Vested | (29,167) | ||
Forfeited | |||
Balance at December 31, 2017 | 78,166 | 81,269 | |
Weighted Average Grant Date Fair Value | |||
Balance at December 31, 2016 | $ 46.39 | ||
Granted | 59.46 | ||
Vested | 47.58 | ||
Forfeited | |||
Balance at December 31, 2017 | $ 50.30 | $ 46.39 |
Stock-based Compensation (Sch83
Stock-based Compensation (Schedule of SARs Oustanding) (Details) - SARs [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
SARs | |
Balance at December 31, 2016 | shares | 261,206 |
Exercised | shares | (26,970) |
Forfeited | shares | |
Balance at December 31, 2017 | shares | 234,236 |
Exercisable at December 31, 2017 | shares | 234,236 |
Weighted Average Exercise Price | |
Balance at December 31, 2016 | $ / shares | $ 34.75 |
Exercised | $ / shares | 33.09 |
Forfeited | $ / shares | |
Balance at December 31, 2017 | $ / shares | 34.97 |
Exercisable at December 31, 2017 | $ / shares | $ 34.97 |
Other Operating Expense (Schedu
Other Operating Expense (Schedule of Other Operating Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Postage and supplies | $ 2,087 | $ 1,925 | $ 1,954 |
Promotional expense | 2,557 | 2,187 | 2,268 |
Professional fees | 1,650 | 1,930 | 1,690 |
Outside service fees | 4,424 | 3,316 | 2,848 |
Data processing services | 897 | 372 | 357 |
Telecommunications | 749 | 1,000 | 1,068 |
Other | 1,722 | 1,913 | 1,185 |
Total other operating expense | $ 14,086 | $ 12,643 | $ 11,370 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2018 | Dec. 22, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Income Taxes [Line Items] | ||||||||||||||||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% | |||||||||||||
Change in corporate federal statutory income tax rate | 21.00% | |||||||||||||||
Net operating loss carryforward | [1] | $ 76 | $ 169 | $ 76 | $ 169 | |||||||||||
Amounts of tax benefits that would affect effective tax rate if recognized | 1,464 | 1,225 | 1,464 | 1,225 | $ 861 | |||||||||||
Income tax accrued interest | 139 | 108 | 139 | 108 | 54 | |||||||||||
Increase (reduction) in accrued interest | 31 | 54 | ||||||||||||||
Reduction of tax benefits over the next twelve months | 299 | |||||||||||||||
Income tax expense | 3,576 | [2] | $ 2,396 | $ 2,248 | $ 1,665 | $ 1,806 | $ 1,855 | $ 2,035 | $ 2,020 | $ 9,885 | [2] | $ 7,716 | $ 7,978 | |||
Percentage of pre-tax income tax rate | 28.00% | 24.00% | 26.00% | |||||||||||||
Non-cash charge | $ 1,824 | |||||||||||||||
Deferred tax inventory net credit amount | 462 | 462 | ||||||||||||||
Change in AOCI related to pension and unrealized gains/losses on securities available for sale | $ 2,286 | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Change in corporate federal statutory income tax rate | 25.00% | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Percentage of one time charge | 28.00% | |||||||||||||||
Maximum [Member] | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Percentage of one time charge | 25.00% | |||||||||||||||
Franklin Bancorp [Member] | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Net operating loss carryforward | 361 | $ 361 | ||||||||||||||
Limitations on use | $ 122 | $ 122 | ||||||||||||||
Net operating loss carryforward expiration date | Dec. 31, 2020 | |||||||||||||||
[1] | As of December 31, 2017, the Company had approximately $361,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company's use to approximately $122,000 per year during the carry forward period, which expires in 2020. | |||||||||||||||
[2] | Includes one-time, non-cash TCJA charge of $1,824,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current: | |||||||||||||
Federal | $ 4,250 | $ 6,456 | $ 6,825 | ||||||||||
State | 1,638 | 941 | 1,290 | ||||||||||
Deferred: | |||||||||||||
Federal | 4,256 | 301 | (84) | ||||||||||
State | (259) | 18 | (53) | ||||||||||
Total income tax expense | $ 3,576 | $ 2,396 | $ 2,248 | $ 1,665 | $ 1,806 | $ 1,855 | $ 2,035 | $ 2,020 | $ 9,885 | [1] | $ 7,716 | $ 7,978 | |
[1] | Includes one-time, non-cash TCJA charge of $1,824,000 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Expected Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Disclosure [Abstract] | |||||||||||||
Expected income tax expense | $ 12,214 | $ 11,223 | $ 10,862 | ||||||||||
(Reductions) increases resulting from: | |||||||||||||
Tax-exempt income | (3,868) | (3,754) | (3,704) | ||||||||||
State taxes, net of federal benefit | 896 | 623 | 804 | ||||||||||
Share-based compensation adjustment | (376) | ||||||||||||
Adjustment of deferred tax asset or liability for TCJA | 1,824 | ||||||||||||
Other, net | (805) | (376) | 16 | ||||||||||
Total income tax expense | $ 3,576 | $ 2,396 | $ 2,248 | $ 1,665 | $ 1,806 | $ 1,855 | $ 2,035 | $ 2,020 | $ 9,885 | [1] | $ 7,716 | $ 7,978 | |
[1] | Includes one-time, non-cash TCJA charge of $1,824,000 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred tax assets: | |||
Allowance for loan losses | $ 2,413 | $ 3,718 | |
ASC 715 pension funding liability | 6,080 | 8,969 | |
Net operating loss carryforward | [1] | 76 | 169 |
Supplemental executive retirement plan accrual | 1,833 | 2,604 | |
Stock compensation | 1,307 | 1,695 | |
Other | 118 | 177 | |
Total deferred tax assets | 11,827 | 17,332 | |
Deferred tax liabilities: | |||
Premises and equipment | (2,248) | (2,731) | |
Pension | (1,379) | (3,601) | |
Intangible/assets | (1,091) | (1,402) | |
Unrealized gain on investment in securities available-for-sale | (1,938) | (560) | |
Deferred income | (2,121) | ||
Total deferred tax liabilities | (8,777) | (8,294) | |
Net deferred tax assets | $ 3,050 | $ 9,038 | |
[1] | As of December 31, 2017, the Company had approximately $361,000 of net operating loss carry forwards as a result of the acquisition of Franklin Bancorp. The utilization of the net operating loss carry forward is subject to Section 382 of the Internal Revenue Code and limits the Company's use to approximately $122,000 per year during the carry forward period, which expires in 2020. |
Income Taxes (Schedule of the R
Income Taxes (Schedule of the Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1 | $ 1,623 | $ 1,194 | $ 1,117 |
Changes in unrecognized tax benefits as a result of tax positions taken during a prior year | (15) | 407 | 10 |
Changes in unrecognized tax benefits as a result of tax position taken during the current year | 263 | 311 | 277 |
Decreases in unrecognized tax benefits relating to settlements with taxing authorities | |||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (239) | (289) | (210) |
Balance at December 31 | $ 1,632 | $ 1,623 | $ 1,194 |
Disclosures about Fair Value 90
Disclosures about Fair Value of Financial Instruments (Schedule of Commitments to Extend Credit, Standby Letters of Credit and Commercial Letters) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments To Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | $ 87,013 | $ 45,497 |
Standby Letters Of Credit [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | 14,347 | 14,381 |
Commercial Letters Of Credit [Member] | ||
Other Commitments [Line Items] | ||
Long-term Line of Credit | $ 3,246 | $ 1,962 |
Disclosures about Fair Value 91
Disclosures about Fair Value of Financial Instruments (Summary of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents, Carrying Amount | $ 228,110 | $ 266,743 | $ 253,172 | $ 294,335 |
Investment in securities, Carrying Amount | 470,523 | 390,552 | ||
Loans, net, Carrying Amount | 676,026 | 654,691 | ||
Accrued interest receivable, Carrying Amount | 7,413 | 6,543 | ||
Assets, Carrying Amount | 1,382,072 | 1,318,529 | ||
Cash and cash equivalents, Fair Value | 228,110 | 266,743 | ||
Investment in securities, Fair Value | 470,523 | 390,552 | ||
Loans, net, Fair Value | 675,020 | 652,028 | ||
Accrued interest receivable, Fair Value | 7,413 | 6,543 | ||
Assets, Fair Value | 1,381,066 | 1,315,866 | ||
Deposits, Carrying Amount | 678,088 | 621,961 | ||
Accounts and drafts payable, Carrying Amount | 661,888 | 642,287 | ||
Accrued interest payable, Carrying Amount | 55 | 46 | ||
Liabilities, Carrying Amount | 1,340,031 | 1,264,294 | ||
Deposits, Fair Value | 678,346 | 622,173 | ||
Accounts and drafts payable, Fair Value | 661,888 | 642,287 | ||
Accrued interest payable, Fair Value | 55 | 46 | ||
Liabilities, Fair Value | $ 1,340,289 | $ 1,264,506 |
Industry Segment Information (D
Industry Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Fee revenue and other income: | |||||||||||||
Income from customers | $ 95,512 | $ 86,136 | $ 83,368 | ||||||||||
Intersegment income (expense) | |||||||||||||
Net interest income (expense) after provision for loan losses: | |||||||||||||
Income from customers | 39,790 | 39,401 | 37,449 | ||||||||||
Intersegment income (expense) | |||||||||||||
Depreciation and amortization | 4,052 | 3,653 | 3,416 | ||||||||||
Income taxes | $ 3,576 | [1] | $ 2,396 | $ 2,248 | $ 1,665 | $ 1,806 | $ 1,855 | $ 2,035 | $ 2,020 | 9,885 | [1] | 7,716 | 7,978 |
Net income | 5,331 | $ 6,863 | $ 6,513 | $ 6,307 | 6,424 | $ 6,222 | $ 5,869 | $ 5,833 | 25,014 | 24,348 | 23,056 | ||
Goodwill | 12,569 | 11,590 | 12,569 | 11,590 | 11,590 | ||||||||
Other intangible assets, net | 1,996 | 1,997 | 1,996 | 1,997 | 2,405 | ||||||||
Total assets | 1,603,209 | 1,504,839 | 1,603,209 | 1,504,839 | 1,455,506 | ||||||||
Information Services [Member] | |||||||||||||
Fee revenue and other income: | |||||||||||||
Income from customers | 93,804 | 84,612 | 82,144 | ||||||||||
Intersegment income (expense) | 13,317 | 12,164 | 10,078 | ||||||||||
Net interest income (expense) after provision for loan losses: | |||||||||||||
Income from customers | 13,400 | 13,820 | 14,598 | ||||||||||
Intersegment income (expense) | 2 | 12 | |||||||||||
Depreciation and amortization | 3,784 | 3,368 | 3,164 | ||||||||||
Income taxes | 4,326 | 1,478 | 2,818 | ||||||||||
Net income | 13,597 | 14,049 | 14,635 | ||||||||||
Goodwill | 12,433 | 11,454 | 12,433 | 11,454 | 11,454 | ||||||||
Other intangible assets, net | 1,996 | 1,997 | 1,996 | 1,997 | 2,405 | ||||||||
Total assets | 800,214 | 763,999 | 800,214 | 763,999 | 702,491 | ||||||||
Banking Services [Member] | |||||||||||||
Fee revenue and other income: | |||||||||||||
Income from customers | 1,708 | 1,524 | 1,224 | ||||||||||
Intersegment income (expense) | 1,545 | 1,575 | 1,648 | ||||||||||
Net interest income (expense) after provision for loan losses: | |||||||||||||
Income from customers | 26,390 | 25,581 | 22,851 | ||||||||||
Intersegment income (expense) | (2) | (12) | |||||||||||
Depreciation and amortization | 150 | 165 | 151 | ||||||||||
Income taxes | 5,559 | 6,238 | 5,160 | ||||||||||
Net income | 11,417 | 10,299 | 8,421 | ||||||||||
Goodwill | 136 | 136 | 136 | 136 | 136 | ||||||||
Other intangible assets, net | |||||||||||||
Total assets | 830,672 | 756,164 | 830,672 | 756,164 | 761,739 | ||||||||
Corporate Eliminations and Other [Member] | |||||||||||||
Fee revenue and other income: | |||||||||||||
Income from customers | |||||||||||||
Intersegment income (expense) | (14,862) | (13,739) | (11,726) | ||||||||||
Net interest income (expense) after provision for loan losses: | |||||||||||||
Income from customers | |||||||||||||
Intersegment income (expense) | |||||||||||||
Depreciation and amortization | 118 | 120 | 101 | ||||||||||
Income taxes | |||||||||||||
Net income | |||||||||||||
Goodwill | |||||||||||||
Other intangible assets, net | |||||||||||||
Total assets | $ (27,677) | $ (15,324) | $ (27,677) | $ (15,324) | $ (8,724) | ||||||||
[1] | Includes one-time, non-cash TCJA charge of $1,824,000 |
Condensed Financial Informati93
Condensed Financial Information of Parent Company (Schedule of Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and due from banks | $ 17,422 | $ 11,814 | ||
Securities available-for-sale, at fair value | 470,523 | 390,552 | ||
Loans, net | 676,026 | 654,691 | ||
Premises and equipment, net | 21,586 | 21,086 | ||
Other assets | 36,369 | 36,388 | ||
Total assets | 1,603,209 | 1,504,839 | $ 1,455,506 | |
Liabilities and Shareholders' Equity | ||||
Accounts and drafts payable | 661,888 | 642,287 | ||
Other liabilities | 38,145 | 32,556 | ||
Total liabilities | 1,378,121 | 1,296,804 | ||
Total shareholders' equity | 225,088 | 208,035 | $ 207,378 | $ 200,432 |
Total liabilities and shareholders' equity | 1,603,209 | 1,504,839 | ||
Parent [Member] | ||||
Assets | ||||
Cash and due from banks | 56,462 | 45,464 | ||
Short-term investments | 48,324 | 107,898 | ||
Securities available-for-sale, at fair value | 470,523 | 390,552 | ||
Loans, net | 12,239 | 47,184 | ||
Investments in subsidiaries | 113,681 | 101,824 | ||
Premises and equipment, net | 20,927 | 20,375 | ||
Other assets | 199,865 | 161,317 | ||
Total assets | 922,021 | 874,614 | ||
Liabilities and Shareholders' Equity | ||||
Accounts and drafts payable | 661,342 | 640,945 | ||
Other liabilities | 35,533 | 25,415 | ||
Total liabilities | 696,875 | 666,360 | ||
Total shareholders' equity | 225,146 | 208,254 | ||
Total liabilities and shareholders' equity | $ 922,021 | $ 874,614 |
Condensed Financial Informati94
Condensed Financial Information of Parent Company (Schedule of Condensed Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Income from subsidiaries: | |||||||||||||
Net interest income after provision | $ 39,790 | $ 39,401 | $ 37,449 | ||||||||||
Gain on sales of investment securities | 387 | 2,910 | |||||||||||
Total net revenue | 135,302 | 125,537 | 120,817 | ||||||||||
Expenses: | |||||||||||||
Salaries and employee benefits | 77,339 | 72,581 | 70,314 | ||||||||||
Other expenses | 1,722 | 1,913 | 1,185 | ||||||||||
Total operating expense | $ 26,142 | $ 25,042 | $ 24,901 | $ 24,318 | $ 23,946 | $ 23,552 | $ 23,059 | $ 22,916 | 100,403 | 93,473 | 89,783 | ||
Income tax expense | 3,576 | [1] | 2,396 | 2,248 | 1,665 | 1,806 | 1,855 | 2,035 | 2,020 | 9,885 | [1] | 7,716 | 7,978 |
Net income | $ 5,331 | $ 6,863 | $ 6,513 | $ 6,307 | $ 6,424 | $ 6,222 | $ 5,869 | $ 5,833 | 25,014 | 24,348 | 23,056 | ||
Parent Company [Member] | |||||||||||||
Income from subsidiaries: | |||||||||||||
Interest | 2 | 12 | |||||||||||
Management fees | 2,172 | 2,105 | 2,201 | ||||||||||
Income from subsidiaries | 2,172 | 2,107 | 2,213 | ||||||||||
Information services revenue | 93,133 | 83,543 | 78,488 | ||||||||||
Net interest income after provision | 13,217 | 13,389 | 13,948 | ||||||||||
Gain on sales of investment securities | 387 | 2,910 | |||||||||||
Other income | 483 | 504 | 613 | ||||||||||
Total net revenue | 109,005 | 99,930 | 98,172 | ||||||||||
Expenses: | |||||||||||||
Salaries and employee benefits | 70,409 | 65,968 | 63,475 | ||||||||||
Other expenses | 20,333 | 18,133 | 16,580 | ||||||||||
Total operating expense | 90,742 | 84,101 | 80,055 | ||||||||||
Income before income tax and equity in undistributed income of subsidiaries | 18,263 | 15,829 | 18,117 | ||||||||||
Income tax expense | 4,394 | 1,540 | 2,950 | ||||||||||
Income before undistributed income of subsidiaries | 13,869 | 14,289 | 15,167 | ||||||||||
Equity in undistributed income of subsidiaries | 11,145 | 10,059 | 7,889 | ||||||||||
Net income | $ 25,014 | $ 24,348 | $ 23,056 | ||||||||||
[1] | Includes one-time, non-cash TCJA charge of $1,824,000 |
Condensed Financial Informati95
Condensed Financial Information of Parent Company (Schedule of Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 5,331 | $ 6,863 | $ 6,513 | $ 6,307 | $ 6,424 | $ 6,222 | $ 5,869 | $ 5,833 | $ 25,014 | $ 24,348 | $ 23,056 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Net cash (used in) provided by operating activities | 38,890 | 35,189 | 33,493 | ||||||||
Cash flows from investing activities: | |||||||||||
Net increase in securities | (124,777) | (96,290) | (161,279) | ||||||||
Net decrease in loans | (21,335) | (5,771) | 10,882 | ||||||||
Purchases of premises and equipment, net | (4,127) | (4,684) | (5,747) | ||||||||
Net cash (used in) provided by investing activities | (139,839) | (41,551) | (3,636) | ||||||||
Cash flows from financing activities: | |||||||||||
Net increase (decrease) in accounts and drafts payable | 19,601 | 65,028 | (78,169) | ||||||||
Cash dividends paid | (10,675) | (9,979) | (9,697) | ||||||||
Purchase of common shares of treasury | (2,270) | (9,215) | (10,951) | ||||||||
Other financing activities | (467) | (1,378) | (488) | ||||||||
Net cash provided by (used in) financing activities | 62,316 | 19,933 | (71,020) | ||||||||
Net increase (decrease) in cash and cash equivalents | (38,633) | 13,571 | (41,163) | ||||||||
Cash and cash equivalents at beginning of year | 266,743 | 253,172 | 266,743 | 253,172 | 294,335 | ||||||
Cash and cash equivalents at end of year | 228,110 | 266,743 | 228,110 | 266,743 | 253,172 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 25,014 | 24,348 | 23,056 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Equity in undistributed income of subsidiaries | (11,145) | (10,059) | (7,889) | ||||||||
Net change in other assets | (41,013) | (7,085) | 16,100 | ||||||||
Net change in other liabilities | 10,118 | 6,683 | (2,779) | ||||||||
Amortization of stock-based awards | 1,743 | 1,677 | 1,504 | ||||||||
Other, net | 9,219 | 7,558 | 10,389 | ||||||||
Net cash (used in) provided by operating activities | (6,064) | 23,122 | 40,381 | ||||||||
Cash flows from investing activities: | |||||||||||
Net increase in securities | (80,621) | (33,025) | (23,472) | ||||||||
Net decrease in loans | 34,944 | 40,431 | 28,343 | ||||||||
Purchases of premises and equipment, net | (4,020) | (4,557) | (5,708) | ||||||||
Net cash (used in) provided by investing activities | (49,697) | 2,849 | (837) | ||||||||
Cash flows from financing activities: | |||||||||||
Net increase (decrease) in accounts and drafts payable | 20,397 | 64,026 | (78,439) | ||||||||
Cash dividends paid | (10,675) | (9,979) | (9,697) | ||||||||
Purchase of common shares of treasury | (2,270) | (9,215) | (10,951) | ||||||||
Other financing activities | (267) | 1,705 | 66 | ||||||||
Net cash provided by (used in) financing activities | 7,185 | 46,537 | (99,021) | ||||||||
Net increase (decrease) in cash and cash equivalents | (48,576) | 72,508 | (59,477) | ||||||||
Cash and cash equivalents at beginning of year | $ 153,362 | $ 80,854 | 153,362 | 80,854 | 140,331 | ||||||
Cash and cash equivalents at end of year | $ 104,786 | $ 153,362 | $ 104,786 | $ 153,362 | $ 80,854 |
SUPPLEMENTARY FINANCIAL INFOR96
SUPPLEMENTARY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Supplemental Income Statement Elements [Abstract] | |||||||||||||
Fee revenue and other income | $ 24,734 | $ 24,207 | $ 23,800 | $ 22,771 | $ 22,025 | $ 22,149 | $ 21,457 | $ 20,505 | $ 95,512 | $ 86,136 | $ 83,368 | ||
Interest income | 10,981 | 10,665 | 10,332 | 9,999 | 10,158 | 9,985 | 10,010 | 9,777 | 41,977 | 39,930 | 38,710 | ||
Interest expense | 666 | 571 | 470 | 480 | 507 | 505 | 504 | 513 | 2,187 | 2,029 | 2,111 | ||
Net interest income | 10,315 | 10,094 | 9,862 | 9,519 | 9,651 | 9,480 | 9,506 | 9,264 | 39,790 | 37,901 | 36,599 | ||
Provision for loan losses | (500) | (1,000) | (1,500) | (850) | |||||||||
Operating expense | 26,142 | 25,042 | 24,901 | 24,318 | 23,946 | 23,552 | 23,059 | 22,916 | 100,403 | 93,473 | 89,783 | ||
Income tax expense | 3,576 | [1] | 2,396 | 2,248 | 1,665 | 1,806 | 1,855 | 2,035 | 2,020 | 9,885 | [1] | 7,716 | 7,978 |
Net income | $ 5,331 | $ 6,863 | $ 6,513 | $ 6,307 | $ 6,424 | $ 6,222 | $ 5,869 | $ 5,833 | $ 25,014 | $ 24,348 | $ 23,056 | ||
Net income per share: | |||||||||||||
Basic earnings per share | $ 0.44 | $ 0.56 | $ 0.53 | $ 0.51 | $ .53 | $ .51 | $ .48 | $ .47 | $ 2.04 | $ 1.99 | $ 1.85 | ||
Diluted earnings per share | $ 0.43 | $ 0.55 | $ 0.52 | $ 0.51 | $ .52 | $ .50 | $ .47 | $ .47 | $ 2.01 | $ 1.96 | $ 1.82 | ||
[1] | Includes one-time, non-cash TCJA charge of $1,824,000 |